District of Vermont
Press releases recorded for this federal judicial district.
Louise Larivee Pleads Not Guilty to Non-Profit EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Louise Larivee, 60, of Swanton, pleaded not guilty today in United States District Court in Burlington to federal fraud charges. U.S. Magistrate Judge John M. Conroy released Larivee on conditions pending trial, which has not been scheduled.
On June 13, 2019, a federal grand jury in Burlington returned a two-count indictment charging Larivee with conspiracy and federal program embezzlement. According to the indictment, between 2013 and 2017, Larivee was employed by the Abenaki Self Help Association, Inc. as the director of a federal grant program administered by the U.S. Department of Labor. ASHAI functioned as a service arm of the Abenaki Nation, promoting economic and social development through programatic efforts in education, employment and economic development. Each year, ASHAI received tens of thousands of dollars in grant money from the Department of Labor. During that same period, Candy Thomas worked at ASHAI as an office worker and bookkeeper. Thomas had check signing authority on ASHAI’s bank accounts.The indictment charges that between 2013 and 2017, Larivee and Thomas conspired to embezzle, and did embezzle, more than $100,000 from ASHAI. Thomas aided the commission of this theft by issuing checks and giving cash to Larivee, at Larivee’s request, in amounts that significantly exceeded Larivee’s authorized compensation. Larivee also allegedly received travel reimbursement checks based upon fraudulently inflated mileage claims. Thomas helped cover up this fraud by sending tax forms to the Internal Revenue Service that concealed the true amount of ASHAI funds that were being paid over to Larivee.
Thomas has already pleaded guilty to related charges and is awaiting sentencing.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that Larivee is presumed innocent unless and until she is proven guilty.
If convicted, Larivee 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 Department of Labor’s Office of Inspector General.
Larivee is represented by David Kirby, Esq. Candy Thomas is represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Scott Brochu Charged with Transportation and Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Scott Brochu, 47, of Essex, was charged yesterday by Indictment with unlawfully transporting child pornography, in violation of 18 U.S.C. § 2252(a)(1), and possessing child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Brochu was arrested this morning near his residence in Essex, Vermont, and will appear this afternoon in federal court in Burlington. Brochu’s arrest was a result of an operation conducted by Vermont’s Internet Crimes Against Children Task Force (VT-ICAC) and Homeland Security Investigations (HSI) during the week of May 13, 2019.
If convicted, the defendant faces a minimum of five years and a maximum of twenty years of imprisonment on the transportation allegation, and a maximum of ten years of imprisonment on the possession allegation. 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 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 investigative efforts and collaboration of the Vermont’s Internet Crimes Against Children Task Force (VT-ICAC) and Homeland Security Investigations (HSI).
VT-ICAC was formed in 2008. The Vermont Attorney General’s Office assumed responsibility for managing VT-ICAC in October of 2015. Since October of 2015, VT-ICAC has performed 915 investigations, received 834 CyberTips from the National Center for Missing and Exploited Children, and arrested 125 individuals for crimes against children. VT-ICAC also works extensively to educate Vermont communities about internet safety. In the past three years, VT-ICAC conducted 2,032 educational forums around the state.
The operation during the week of May 13 was a collaborative effort involving the Vermont Attorney General’s Office, the Vermont State Police, Homeland Security Investigations, the Vermont U.S. Attorney’s Office, Burlington Police Department, South Burlington Police Department, Chittenden Unit for Special Investigations, Orange County Sheriff’s Department, and the University of Vermont Police Services.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. Defendant Brochu is represented by Craig Nolan, Esq., of the law firm Sheehey Furlong, and Behm.
Five Individuals Sentenced for Roles in Southern Vermont Drug ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that five individuals have been sentenced by Chief United States District Judge Geoffrey W. Crawford for their roles in a prolonged conspiracy to distribute heroin and cocaine base in Vermont. On June 19, 2019, Joaquin Diaz-Alicea, a.k.a. “J.J.,” of Springfield, Massachusetts, was sentenced to ten years in federal prison, to be followed by five years of federal supervised release. Previously, Andrew Cruz, a.k.a. “Tone,” of Springfield, Massachusetts, was sentenced to ten years in federal prison to be followed by four years of federal supervised release; Jonthony Maldonado, a.k.a. “Little Tone,” of Springfield, Massachusetts was sentenced to 30 months in federal prison, to be followed by a three-year term of supervised release; Steven Miller, of Vernon, Vermont, was sentenced to one year in federal prison, to be followed by a three-year term of supervised release; and Laura Frankiewicz, of Brattleboro, Vermont, received a time-served sentence, to be followed by a three-year term of supervised release. A sixth defendant, Anthony Serrano, was also charged in the indictment prior to his death, which resulted from a reported gang-related shooting in Springfield, Massachusetts.
As described at the defendants’ sentencing hearings and in court records, between late 2014 and February of 2016, the defendants conspired to distribute large quantities of heroin and cocaine base in and around Brattleboro, Vermont. On November 18, 2014, Cruz and Serrano were stopped in a motor vehicle equipped with a “hide” containing 180 grams of cocaine base, 103 grams of powder cocaine, 30 Oxycodone pills, and a loaded Beretta 9mm handgun. Thereafter, between mid-2015 and early 2016, the Vermont Drug Task Force utilized confidential informants to conduct nine separate controlled purchases of heroin and cocaine base from the members of the conspiracy.
Serrano and Cruz were the leaders of the drug trafficking organization. Cruz’s criminal history included convictions for assault and battery, assault and battery on a police officer, and a 2018 federal conviction in the District of Massachusetts for distribution of cocaine base and possession with intent to distribute cocaine base. In that federal case, the FBI’s Western Massachusetts Gang Task Force was engaged in an investigation into the distribution of heroin, cocaine, cocaine base, and firearms from suspected members of the Latin Kings gang in Holyoke and Springfield. On two occasions Cruz sold an informant a total of 31 grams of cocaine base. Cruz received a three year sentence in federal court in Massachusetts, which will run concurrent to his 10 year sentence.
Diaz-Alicea was immediately subordinate to Cruz in the drug trafficking organization. Witnesses stated that both Cruz and Diaz-Alicea possessed firearms while selling drugs in Vermont. Diaz-Alicea’s criminal history includes four separate firearms-related convictions, as well as convictions for assault and battery, assault with a dangerous weapon (shotgun), malicious damage to a motor vehicle, threats, and assault and battery on a correctional guard. These offenses included an incident in which Diaz-Alicea fired a shotgun at a motor vehicle, and a separate incident in which he approached a vehicle and fired a handgun through the driver’s-side window causing a bullet to strike the driver of the vehicle. Diaz-Alicea has two pending cases in Massachusetts alleging domestic assault and battery and aggravated assault and battery, and a separate case alleging assault and battery, assault and battery with a dangerous weapon, and discharging a firearm. In the latter of these cases, Diaz-Alicea is alleged to have shot an individual twice with a handgun over an alleged drug debt. Diaz-Alicea is presumed innocent of these pending Massachusetts charges.
Maldonado was the drug trafficking organization’s “apprentice.” In addition to selling heroin and cocaine base on behalf of the drug trafficking organization, Miller and Frankiewicz, provided Cruz, Diaz-Alicea, and Maldonado with housing in Vermont in exchange for heroin and cocaine base.
United States Attorney Christina E. Nolan commended the collaborative investigation led by the Vermont State Police Drug Task Force, with support from Drug Enforcement Administration and the Bellows Falls Police Department, stating: “The talent and diligence of the Vermont State Police drug unit, working closely with their federal and local law enforcement partners, led to the dismantling of a very significant drug pipeline from Springfield, Massachusetts to the Brattleboro area. Windham County suffered more overdose deaths than any other Vermont county last year. The U.S. Attorney’s Office will continue to deploy federal enforcement resources to southeast Vermont to remove dangerous, for-profit drug traffickers from its communities and to reduce the supply of deadly drugs flowing up Interstate 91. Drug trafficking organizations like this one will continue to be top targets for federal prosecution and we will pursue serious sentences.”
The case was prosecuted by U.S. Attorney Nolan and Assistant U.S. Attorney Nate Burris. Cruz was represented by Attorney John Mabie. Diaz-Alicea was represented by Attorney Paul Volk. Maldonado was represented by Attorney Peter Langrock. Miller was represented by Attorney Michael Shklar. Frankiewicz was represented by Attorney Thomas Sherrer.
Debra Bluto Sentenced for Social Security FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Debra Bluto, 64, of St. Albans Bay, was sentenced today in United States District Court in Burlington following her guilty plea to a charge that she defrauded the Social Security Administration. Chief U.S. District Judge Geoffrey Crawford sentenced Bluto to two years of probation and ordered her to pay restitution totaling $48,000.
On October 24, a federal grand jury in Rutland returned a four-count indictment charging Bluto with stealing government funds and making false statements to the Social Security Administration. According to the indictment, Bluto’s grandson began receiving Supplemental Security Income benefits from the government in 2001. SSI is a special needs-based benefit program designed to provide financial assistance to aged, blind and disabled persons who have little or no income. The benefits for Bluto’s grandson were paid directly to Debra Bluto as her grandson’s representative payee.
For most of the period between May 2008 and January 2017, Bluto’s grandson was incarcerated following his convictions for serious crimes. By law, Bluto’s grandson was not entitled to receive SSI benefits during any period of incarceration. Nonetheless, Bluto continued to receive her grandson’s SSI benefits for the entire time he was in jail. According to the indictment, in annual reports she had to file with the Social Security Administration, Debra Bluto concealed the fact that her grandson was in prison and falsely claimed that she used all the SSI funds to pay for his care. In fact, the indictment charges, Debra Bluto converted those illegitimate payments – which totaled slightly more than $50,000 -- to her own benefit.
This case was investigated by the Office of the Inspector General of the Social Security Administration.
Bluto is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Connecticut Man Sentenced for Drug Offense in St. AlbansRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Andre Hudson, 40, of Hartford, Connecticut, was sentenced yesterday in United States District Court in Rutland, Vermont, to a total of 54 months in prison. Hudson previously pleaded guilty to possession of heroin and cocaine base with intent to distribute, and admitted to violating terms of his supervised release from a prior federal offense. Chief U.S. District Judge Geoffrey W. Crawford sentenced Hudson to 30 months for the heroin and cocaine base possession, and 24 months for the supervised release violations, to be served consecutively. Hudson will serve a three year term of supervised release upon his release from prison.
According to court records and proceedings, on November 2, 2017, Hudson was found in a residence on North Elm Street in St. Albans, Vermont, where co-defendant Jeffry Robtoy lived. In the bedroom where Hudson was found, law enforcement located over 7 grams of a mixture containing fentanyl, over 14 grams of cocaine base, and $7,732 in U.S. currency. Evidence from Hudson’s cell phone shows that he was corresponding with Robtoy about drug sales in the preceding weeks. Hudson had previously served a nine year federal prison sentence for drug trafficking in Connecticut, and was on supervised release at the time of this offense.
In May 2019, co-defendant Robtoy was sentenced to a term of 42 months in prison and three years of supervised release.
Assistant U.S. Attorneys Nicole Cate and Jonathan Ophardt handled the prosecution. Hudson was represented by Mark Kaplan, Esq. U.S. Attorney Christina E. Nolan commended the efforts of the Drug Enforcement Administration and the St. Albans Police Department in the investigation and prosecution of Hudson and Robtoy. She stated: “This case is an example of how the U.S. Attorney’s Office works closely with our federal, state, and local law enforcement partners to prosecute drug trafficking throughout Vermont, including by focusing on repeat offenders who travel from out of state to distribute deadly drugs here.”
Montpelier Man Detained on Charges of Producing Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Paul Richards, 33, of Montpelier, Vermont was detained today following a hearing before the United States Magistrate Judge John M. Conroy on charges that he sexually exploited a minor victim for the purpose of producing child pornography. Richards was charged by complaint on June 12, 2019. If convicted, he faces a 15-year mandatory minimum sentence and up to 30 years in prison.
According to the affidavit filed with the complaint in the matter, a tip from a SnapChat user alerted law enforcement that an individual was sharing images of the sexual abuse of a 9-year-old girl. Law enforcement followed a digital trail to the home of the victim in Montpelier, Vermont, and then identified Richards as the abuser. According to the complaint affidavit, a search of Richards’s home resulted in the identification of items and settings visible in the images of abuse.
The United States now has 30 days from the time of the initial arrest to bring formal charges against Richards. The charges in the complaint are merely allegations and Richards is deemed innocent until proven guilty of those charges.
U.S. Attorney Christina E. Nolan thanked the Federal Bureau of Investigation, the center for Internet Crimes Against Children, Montpelier Police, South Burlington Police and the Vermont State Police for their rapid investigation and close collaboration in this case. U.S. Attorney Nolan stated: “There is no higher priority for Vermont law enforcement than protection of children, the most innocent and vulnerable members of society. They represent Vermont’s future and its promise. We will continue to come together at all levels of law enforcement to bring strong consequences to those who prey on the innocent. Crimes against children are intolerable and will be treated accordingly.”
“Cases like this require quick and collaborative law enforcement action,” said James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). “The FBI is always prepared to work with our local, state, and federal law enforcement partners to protect the children of our communities in any way we can.”
“This case is a great example of investigative cooperation by the Federal Bureau of Investigation, the U.S. Attorney’s Office and the Montpelier Police Department,” stated Tony Facos, Montpelier Police Chief.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources better to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The United States is represented in this matter by Assistant U.S. Attorneys Eugenia Cowles and William Darrow. Richards is represented by Assistant Federal Public Defender Steven Barth.U.S. Attorney’s Office Announces the Launch of a Drug Prevention Initiative Involving a Documentary Film and Public Service AnnouncementRead the Press Release
The U.S. Attorney’s Office has developed and launched a drug prevention initiative. Speaking today at Turning Point, located at 179 North Winooski Avenue, Burlington, Vermont, U.S. Attorney Christina E. Nolan described the initiative and played the accompanying Public Service Announcement (PSA) and documentary film, Face of Recovery. Both the PSA and documentary focus on the story of Justin Goulet, who has a history of addiction to drugs and was previously convicted of federal drug and gun crimes. Mr. Goulet made a remarkable recovery and has enjoyed an extended period of sobriety.
The U.S. Attorney’s Office worked with Film Production Director, Jeremy Leibovitch, and Graham Raubvogel, both of Prom Creative, to create the PSA and documentary. This drug prevention initiative is an outreach project that carries a message of hope in the midst of the drug crisis. The documentary and PSA are also meant to highlight the existence and importance of solidarity and collaboration amongst Vermont’s enforcement, prevention, treatment, and recovery communities. The U.S. Attorney’s Office plans to present Face of Recovery to audiences across the Vermont, including to young people and at community and recovery centers. The presentations will be interactive, with attendance by Mr. Goulet and U.S. Attorney Nolan, as well as time for conversation and questions and answers. The first public viewing and interactive presentation will occur on July 19 at Turning Point, 179 North Winooski Avenue, Burlington, Vermont.
This prevention initiative has been a collective effort. The U.S. Attorney’s Office thanks Mr. Goulet, Mr. Leibovitch, Mr. Raubvogel, and Turning Point for their essential contributions to the Project.
If you are interested in scheduling a presentation and showing, please contact Aimee Stearns, Victim Witness Coordinator, or Kraig LaPorte, Public Information Officer, at the U.S. Attorney’s Office at (802) 951-6725.
The Face of Recovery documentary film and PSA can be accessed by the following links:
PSA Face of Recovery - https://www.youtube.com/watch?v=l5Q3ojD1fic
Face of Recovery (Full Length) - https://www.youtube.com/watch?v=N-uPf-_sRGEVeronica Lewis Charged with Unlawfully Possessing Stolen FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Veronica Lewis was charged yesterday by Criminal Complaint in U.S. District Court with unlawfully possessing a firearm after having been adjudicated as mentally defective, in violation of 18 U.S.C. § 922(g)(4), and possessing a stolen firearm, in violation of 18 U.S.C. § 922(j). Lewis was arrested this morning, and will appear today in federal court in Burlington.
According to court records, Lewis had been adjudicated as mentally defective on October 16, 2013, in the Queens County Criminal Court, due to a judicial finding of mental incapacity. This prior judicial finding precluded Lewis from thereafter lawfully possessing firearms and ammunition under federal law. On June 29, 2015, Lewis allegedly used a Smith & Wesson Model K-22 .22 caliber revolver to shoot firearms instructor Darryl Montague in Westford, Vermont. After the shooting, Lewis fled, taking Montague’s firearm and ammunition with her. Later that day, Lewis was arrested and Montague’s firearm was seized from Lewis’s backpack. She was also observed attempting to hide .22 caliber ammunition in a toilet paper roll in her holding cell.
If convicted, the defendant faces a maximum of ten 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 she is proven guilty.
United States Attorney Christina E. Nolan commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Vermont State Police (VSP).
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. Defendant Lewis is represented by the Office of the Federal Public Defender.
Milton Man Sentenced to 90 Months of Imprisonment for Heroin and Cocaine Base DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Jerry Romero, 64, of Milton was sentenced by Judge William K. Sessions III to 90 months of imprisonment to be followed by four years of supervised release. Romero had previously pled guilty to possession with intent to distribute both heroin and 28 grams or more of cocaine base and agreed to the 90-month sentence.
According to Court records, in September 2018, Romero was living at 77 Beartrap Road in Milton, Vermont. On September 4, 2018, the Milton Police Department and the Drug Enforcement Administration (“DEA”) executed a search warrant at Romero’s home. Upon entry, a law enforcement agent asked Romero where the drugs were and Romero responded that they were in the bathroom trashcan. Law enforcement then recovered approximately 61 grams of cocaine base and 480 bags of heroin from the trashcan. Law enforcement also recovered a .380 Glock pistol and ammunition from a gun safe. Romero had the combination to this safe in his wallet.
At the time he committed this drug trafficking offense, Romero was on federal supervised release related to a prior federal drug trafficking conviction in 2017. Accordingly, the 90-month sentence was broken down into two parts: 66 months for the new drug offense and 24 months, to be served consecutively, for violating his terms of federal supervised release. From 2002 to 2017, Romero incurred four other federal felony convictions, three involving drug trafficking and one involving unlawful possession of a firearm.
“Working with federal law enforcement partners, the Milton Police Department was able to establish a case involving Jerry Romero and address the concerns of Milton residents.”, stated Milton Police Chief Steve Laroche. He praised the efforts of the citizens of Milton for providing valuable information, based on “See Something Say Something”, which lead to the arrest of Jerry Romero. “This investigation resulted in the largest amount of crack cocaine and heroin seized in the department’s history”, according to Chief Laroche.
This matter was investigated by the Drug Enforcement Administration, the Milton Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Assistant U.S. Attorneys Jon Ophardt and Joe Perella. Romero is represented by Steven Barth of the Federal Public Defenders Office.
Four Sentenced in Connection with Arson at 400 Main Street in Winooski, Vermont and Conspiracy to Distribute Heroin and CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Bryant McCray, 33, and Lateek Cargo, 32, both formerly of Brooklyn, New York, have been sentenced on charges of arson and conspiracy to distribute heroin and cocaine. The charges stem from an April 2016 arson at 400 Main Street in Winooski, Vermont and a years-long drug-trafficking conspiracy involving large quantities of heroin and cocaine. Justin Johnson, 33, of Baltimore, Maryland, and Kylee Raduechel, 31, of Essex, Vermont, also have been sentenced on charges of conspiracy to distribute heroin and cocaine.
On January 22, 2019 and March 7, 2019, United States District Court Judge Christina Reiss sentenced Bryant McCray to 129 months of imprisonment and four years of supervised release and Lateek Cargo to 118 months of imprisonment and four years of supervised release. Both McCray and Cargo were jointly and severally ordered to pay restitution to the victims of the offense in the amount of $138,063.17. Judge Reiss previously had sentenced Justin Johnson to 60 months of imprisonment and four years of supervised release. Finally, on June 3, 2019, Judge Reiss sentenced Kylee Raduechel to 48 months of imprisonment followed by three years of supervised release.
As described at the defendants’ sentencings and in court records, since about late 2014, McCray, Cargo, and Johnson began coming to Chittenden County, Vermont and staying at a variety of local residences to distribute heroin and cocaine. On April 23, 2016, McCray and Cargo went to a Colchester, Vermont gas station where McCray filled a red, plastic can with gasoline. From there, McCray and Cargo went to an apartment complex on Main Street in Winooski, Vermont. Prior to April 23, 2016, Justin Johnson, a drug runner for McCray and Cargo, had been robbed of drugs and money while staying at one of the apartments in the complex. McCray and Cargo traveled to the apartment to exact revenge for the robbery of drugs and money from Johnson. While at the Winooski apartment, McCray and Cargo poured gasoline over the victim’s bedroom and lit it on fire. The fire resulted in extensive damage to the apartment building and displaced tenants, who were able to escape the rapidly spreading flames.
After the arson, Kylee Raduechel began hosting McCray and others at her residence in Essex, Vermont. McCray also possessed a firearm during the offense. In September 2016, the Drug Enforcement Administration and other members of law enforcement executed a search warrant at Raduechel’s residence that resulted in the seizure of about 30 grams of heroin and nearly 100 grams of cocaine base. Undeterred, members of the conspiracy continued to distribute controlled substances in Vermont until their arrests in 2017. All four defendants pleaded guilty before trial.
This case provides an example of the United States Attorney’s Office Violent Crime Initiative, aimed at pursuing federal prosecutions involving the intersection of drug trafficking and violence. United States Attorney Christina Nolan commended the efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Customs and Border Protection Air and Marine Operations, the Vermont State Police and the Vermont Drug Task Force, as well as the Burlington Police Department, the Essex Police Department, and the Winooski Police Department.
United States Attorney Nolan added: “This extraordinary law enforcement collaborative effort exemplifies our resolve to combat violence and drug trafficking. The defendants’ conduct was motivated by greed and they put innocent Vermont lives at risk. We will continue to deliver serious consequences for offenses of this magnitude.”
“These sentencings demonstrate ATF’s commitment to protect our communities from violent criminals that threaten our quality of life,” said ATF Special Agent in Charge Kelly D. Brady, Boston Field Division. “ATF will continue to collaborate with our law enforcement partners to eradicate violent crime and dismantle criminal organizations that threaten our neighborhoods.”
“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 these sentences 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.”
Bryant McCray is represented by Michelle Anderson Barth, Esq. Lateek Cargo is represented by Mark A. Kaplan, Esq. Justin Johnson is represented by Devin McLaughlin, Esq. Kylee Raduechel is represented by Federal Public Defender Michael L. Desautels, Esq. The United States is represented by AUSAs Paul J. Van de Graaf and John J. Boscia.
U.S. Attorney’s Office Hosts Human Trafficking Awareness EventRead the Press Release
The U.S. Attorney’s Office will be hosting an event on June 7, 2019, from 2:00 - 4:00 p.m., in front of Ben & Jerry’s on Church Street to spread awareness about human trafficking in our community. June 7 marks the two-year anniversary of the “You Are Loved” mural painting on Cherry Street sponsored by the U.S. Attorney’s Office. The mural was created in response to the rising numbers of sex and drug trafficking victims we are seeing in federal cases. Christina Nolan, U.S. Attorney for the District of Vermont, will be speaking about the importance of individual community members educating themselves about the signs of human trafficking. The U.S. Attorney’s Office recently convicted Brian Folks of drug crimes and trafficking multiple young women in Vermont.
The event will offer free t-shirts as well as free ice cream for the first 70 people who attend. The event is made possible by the generous support of Ben & Jerry’s, The Classic Dezert Company, and Select Designs.
Please come and join the festivities.
Mexican National Imprisoned for Returning to the United States Following DeportationRead the Press Release
The United States Attorney for the District of Vermont announced that Miguel Lopez-Castillo, 35, a Mexican national, was sentenced today in United States District Court in Burlington to a year and one day of imprisonment following his guilty plea to a charge that he was found in the United States after having been previously deported.
According to the indictment, Lopez-Castillo has twice been deported from the United States: first in 2008 and again in 2012. In late May 2018, agents with the Department of Homeland Security learned that Lopez-Castillo had at some point returned to the United States illegally, without having obtained authorization from the Attorney General to do so. At the time of his indictment this past August, Lopez-Castillo was in the custody of the Vermont Department of Corrections following his arrest in Burlington. That state case ended with Lopez-Castillo’s guilty plea and time-served sentence. Agents then took the defendant into federal custody. He pled guilty to the immigration charge this past February.
Lopez-Castillo is represented by Assistant Federal Public Defender Barclay Johnson. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Eight Men Face Child Pornography Related ChargesRead the Press Release
U.S. Attorney Christina E. Nolan and Vermont Attorney General T. J. Donovan announced today that eight men were arrested in mid-May for possession/promotion of child pornography. The arrests were made as a result of Operation Bada Bing. Operation Bada Bing, which was conducted by Vermont’s Internet Crimes Against Children Task Force (VT-ICAC) and Homeland Security Investigations (HSI), involved executing search warrants on several residences during the week of May 13, 2019, based on CyberTips that were received from the National Center for Missing and Exploited Children. These CyberTips are typically generated by Internet Service Providers or social media platforms whenever they detect suspected child sexual exploitation material on their networks. These CyberTips are in turn sent to local ICAC task forces throughout the country.
Operation Bada Bing culminated in the arrests of the following individuals:
Frank Farley, 37, of Rutland.
Russell Biathrow, 61, of Killington.
Mark Hulett, 48, of Ferrisburgh.
Uriah Shows, 29, of Middlebury.
Bernard Tinker, 58, of Colchester.
Richard Weston, 25, of Huntington.
Louis Hamlin II, 74, of Huntington.
Sean Fiore, 35, of Burlington.
These individuals now face either federal or state charges for possession or promotion of child pornography. The Attorney General emphasizes that these individuals are legally presumed innocent of the charges until their guilt is proven beyond a reasonable doubt through the court process.
“Society should be judged by how it protects its most innocent and vulnerable members,” stated U.S. Attorney Christina E. Nolan for the District of Vermont. “Children are our future, and we will fight tirelessly for their safety. The announcement of a series of charges in a joint federal and state sweep reflects our commitment, as a Vermont law enforcement team, to bring serious charges and consequences to those who would harm and exploit children. I thank Attorney General Donovan for his leadership and strong partnership when it comes to protection of our youth. And I commend the Vermont ICAC and HSI for their exemplary cooperation and teamwork when it comes to combatting heinous child exploitation crimes and taking offenders against children out of Vermont communities.”
“ICAC plays a critical role in protecting children here in Vermont and elsewhere,” said Attorney General Donovan. “We need to continue to raise awareness and support ICAC’s mission so that all children – regardless of where they live – are not subject to violent exploitation.”
VT-ICAC was formed in 2008. The Vermont Attorney General’s Office assumed responsibility for managing VT-ICAC in October of 2015. Since October of 2015, VT-ICAC has performed 915 investigations, received 834 CyberTips from the National Center for Missing and Exploited Children, and arrested 125 individuals for crimes against children. VT-ICAC also works extensively to educate Vermont communities about internet safety. In the past three years, VT-ICAC conducted 2,032 educational forums around the state.
To assist in locating evidence as small as a micro sd card (a device as small as a fingernail), VT-ICAC obtained an electronic detection K9, named Mojo. Mojo, a yellow Labrador, is one of just a few of these dogs currently in use across the country. Mojo’s deployment has been successful; since January of last year he has been used at search warrants across the state and has led to the recovery of concealed evidence.
Operation Bada Bing was a collaborative effort involving the Vermont Attorney General’s Office, the Vermont State Police, Homeland Security Investigations, the Vermont U.S. Attorney’s Office, Burlington Police Department, South Burlington Police Department, Chittenden Unit for Special Investigations, Orange County Sheriff’s Department, and the University of Vermont Police Services.
Four Men Indicted on Fraud Charges Related to the Jay Peak EB-5 AnC Vermont Project in Northeast VermontRead the Press Release
Four individuals were charged with conspiring in a multi-year wire fraud scheme to defraud immigrant investors seeking green cards through the EB-5 program, among other charges, announced United States Attorney for the District of Vermont Christina E. Nolan.
Ariel Quiros, 63, William Kelly, 70, both of Florida; Jong Weon Choi, aka Alex Choi, 58, of South Korea; and William Stenger, 70, of Newport, Vermont, were indicted by the federal grand jury on criminal charges in connection with their management of the Jay Peak Biomedical Research Park EB-5 investment project, also called the AnC Vermont project. In addition to the wire fraud conspiracy count, the defendants face other charges, including six separate counts of wire fraud and various counts of concealing material facts or presenting false statements in a matter within the jurisdiction of a federal agency, namely United States Citizenship and Immigration Services (USCIS), which oversaw the EB-5 process. Quiros is also charged with two counts of money laundering. The indictment alleges that the defendants misrepresented facts to the SEC, which investigated the Jay Peak EB-5 offerings while the defendants were seeking new AnC investors. A civil action by the SEC ended the defendants’ control of the EB-5 projects.
U.S. Attorney Christina E. Nolan stated: “As alleged in this indictment, this scheme defrauded hopeful immigrant investors in what may be the largest financial crime in our state history. I commend our prosecutors and our partners in the FBI, IRS, and FDA-OIG for their dogged investigation of this complex fraud that shook our small state. This indictment demonstrates that the U.S. Attorney’s Office is determined to address the most challenging cases, and that we have the talent, will, and resources in our office and law enforcement agencies to meet those challenges.”
The charges against the defendants are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The defendants face a maximum penalty on the most serious charges of 20 years in prison, three years of supervised release, a $250,000 fine or twice the gross gain or loss, and restitution to the victims. The indictment also alleges forfeiture against the defendants.
“This case is about greed and deceit. The fraud alleged in this indictment and the related fraud alleged by the SEC and the State of Vermont have affected many Vermonters,” stated James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation. “The defendants’ broken business promises have left not only a physical scar on the city of Newport, but also an intangible scar on the promise of economic development for the Northeast Kingdom and on the dreams of many hopeful immigrants. By seeking to hold accountable those who break the law and cause such harm, we hope to help to heal these scars. The dedicated work and cooperation among the FBI, IRS, FDA and U.S. Attorney’s Office have resulted in the arrests today. The FBI will continue working with our law enforcement partners to stop those who abuse government programs for their own gain.”
“As alleged in the indictment, the defendants obtained tens of millions from investors in connection with an EB-5 offering that was based on misleading statements and involved a misuse of the money raised,” said Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation, Boston Field Office. “IRS-CI’s tracing of the investors’ funds helped investigators uncover the breadth of the alleged fraud and we are proud of our role in this collaborative law enforcement effort.”
The indictment alleges a scheme conceived in 2011 and carried through until the defendants lost control of the project in April 2016. The AnC project was the seventh EB-5 project managed by Quiros and Stenger, but the first involving a business outside a ski resort. The defendants designed the project to raise $110 million from immigrant investors in order to build and operate a biotechnology company, AnC Vermont, on a property in Newport. From 2012 to 2016, the defendants obtained over $80 million from over 160 immigrant investors in the AnC project. Under the EB-5 program created by Congress, immigrant investors could obtain lawful permanent residency (green cards) by investing $500,000 each in a United States business that would create ten jobs per investment. Pursuant to federal law, the AnC project was regulated and monitored by USCIS and the Vermont Regional Center, a part of state government.
According to the indictment, the defendants’ scheme involved both secret embezzlement of immigrant investor funds and deceit about the AnC project’s jobs and revenue. The defendants designed the project so that Quiros and Choi, who were secret partners, could siphon millions of dollars in investor funds into their pockets. As the defendants raised investor money, Quiros used the money for his own purposes instead of using it to build the project. The defendants then concealed this misuse of funds.
The indictment also charges that the defendants created a fraudulent AnC business plan based on a “party line” conceived to misrepresent the number of jobs that would be created by the project and the business revenue that would be generated from the project. Marketing the project to immigrant investors depended on job creation and future revenue, since the defendants emphasized their ability to satisfy the job creation standards under EB-5 law and repay immigrant investors. The indictment charges that the defendants devised job and revenue projections based on the number of jobs needed to obtain project approval from USCIS without regard to a viable plan to actually create those jobs or achieve those revenues. AnC Vermont would supposedly rent clean rooms, market stem cell therapies, and manufacture artificial organs. The defendants made fraudulent statements in regard to all three facets of the future business, in particular with regard to how soon the project would generate jobs and revenue. Rather than disclose that they were creating a start-up business that would need large capital reserves to operate in the early stages, the defendants falsely represented that they had a plan where AnC Vermont would successfully market its products as soon as construction was complete.
In addition to the wire fraud and wire fraud conspiracy charges, the indictment charges Quiros with two money laundering counts relating to two transactions where he used AnC investor funds for personal expenses, specifically a $6 million payment to the IRS and the purchase of a vehicle.
Further, the indictment contains five concealment or false statement counts. First, it alleges that the defendants concealed from the Vermont Regional Center how Quiros used approximately $21 million in investor funds to pay off a loan unrelated to the AnC Vermont project. Next, the indictment alleges that Quiros, Kelly, and Choi concealed that Choi was being investigated in Korea for financial crimes, and falsely represented that AnC Korea, a company they claimed would supply the technologies that AnC Vermont would market, was not in financial distress.
Finally, the indictment charges Stenger with presenting false documents and statements to the Vermont Regional Center. One of these counts focuses on a misrepresentation by Stenger that he had followed the Regional Center’s direction to stop marketing the AnC project in mid-2014. The other charges as false a written presentation Stenger made to the Regional Center in January 2015 as he was seeking permission to continue recruiting investors for the AnC project.
Quiros, Kelly, and Stenger surrendered to the custody of the United States Marshals Service this morning and are scheduled to appear for arraignment on the charges in federal court later today. Choi remains at large.
The United States Attorney expresses her gratitude for the outstanding investigation leading up to these charges by the Federal Bureau of Investigation, the Criminal Investigation Divisions of the Internal Revenue Service, the Food and Drug Administration and for the assistance of the Justice Department’s Office of International Affairs. The prosecutors handling the case are Assistant U.S. Attorneys Nicole Cate and Paul Van de Graaf. Ariel Quiros is represented by Seth Levine, Esq. William Kelly is represented by Robert Goldstein, Esq. William Stenger is represented by Brooks McArthur, Esq.
U.S. Attorney’s Office Recognizes Exceptional Law Enforcement Work at its Annual Law Enforcement Awards CeremonyRead the Press Release
On May 15, 2019, 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 second annual Law Enforcement Awards Ceremony. This ceremony was held at the federal building in Burlington, Vermont. Individual investigators and officers were nominated by USAO staff in a variety of categories for their outstanding work supporting the mission of this office. Award recipients came from federal, state and local agencies from across Vermont. The specific categories and individuals recognized today are as follows:
Investigative Achievement Award (recognizes those who have substantially contributed to the mission of the U.S. Attorney’s Office.)
Corporal George Rodriguez – Vermont State Police
(United States v. Pappano, Smith & Jones)Special Agent Jennifer Vander Veer – FBI
(for a collection of outstanding work investigating cyber crimes)Special Agent Brandon Hope – DEA
(United States v. Holmes)Task Force Officer Robert Estes – DEA/Essex PD
(United States v. Holmes)Task Force Officer John McGarghan – DEA/ US Border Patrol
(United States v. Holmes)Intelligence Research Specialist Marilyn Epp – DEA
(United State v. Holmes)
Exceptional Contribution to a Federal Prosecution (recognizes those who significantly impacted law enforcement’s ability to: 1) arrest, apprehend and prosecute a subject of a federal investigation; 2) rescue and respond to victims; 3) develop cooperating witnesses; and/or 4) identify critical intelligence.)Detective Jonathan Whiteman – Vermont Drug Task Force/Brattleboro PD
(United States v. Jones)
Investigative Excellence Award (recognizes those whose actions led directly to the arrest of a dangerous subject or to the exposure of a significant criminal/civil conspiracy.)Trooper William Phelps – Vermont State Police
(United States v. Churchill)Special Agent Jeremy Stalla – U.S. Department of State, Diplomatic Security Service
(United States v. Gu)Special Agent Lorne Segerstrom – U.S. Department of State, Diplomatic Security Service
(United States v. Gu)
Investigative Specialist Scott Rogers – U.S. Department of State, Diplomatic Security Service
(United States v. Gu)Passport Specialist Manuel Pacheco – State Department
(United States v. Gu)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 U.S. Attorney’s Office.)
Detective Trooper Giancarlo DiGenova – Vermont Drug Task Force/Vermont State Police
(United States v. Harris)Detective Sergeant Karl Gardner – Vermont Drug Task Force/Vermont State Police
(United States v. Harris)Special Agent Colin Simons – FBI
(United States v. Harris)Special Agent Tom Doud – DEA
(United States v. Harris)Detective Corporal Frank Scalise – Milton PD
(United States v. Harris)Detective Corporal Dan Gilligan – Burlington PD
(United States v. Monroe)Detective Corporal Jeff Beerworth – Burlington PD
(United States v. Monroe)Special Agent Scott Murray – ATF
(United States v. Monroe)Special Agent Matthew Ekstrom – ATF
(United States v. Monroe)Detective Sergeant Todd Baxter – Major Crime Unit/Vermont State Police
(United States v. Hoisington)Detective Sergeant Scott Dunlap – Major Crime Unit/Vermont State Police
(United States v. Hoisington)Detective Sergeant Todd Ambroz – Fire Investigation Unit/Vermont State Police
(United States v. Hoisington)Detective Sergeant Wade Cochran – Vermont Drug Task Force /Montpelier PD
(United States v. Hoisington)Special Agent Matthew Ekstrom – ATF
(United States v. Hoisington)
Each recipient received an award letter from U.S. Attorney Christina Nolan, as well as an engraved award commemorating their outstanding efforts. Award recipients were joined by colleagues, family and friends at 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 this second 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. 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 Recognizes National Police Week - May 12-18, 2019Read the Press Release
U.S. ATTORNEY RECOGNIZES NATIONAL POLICE WEEK
May 12-18, 2019
U.S. Attorney Christina E. Nolan and members of her office will honor the service and sacrifice of federal, state and local law enforcement on the occasion of National Police Week, which occurs this year from Sunday, May 12 to Saturday, May 18, 2019.During Police Week, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in protecting our communities. In October 1962, Congress enacted a joint resolution, which the President signed, declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
U.S. Attorney Nolan stated: “As the United States Attorney for the District of Vermont, I want to acknowledge the work performed by federal, state and local law enforcement, who often face uncertain and dangerous situations without question and without expectation of thanks. We want them to know they have our unwavering support and appreciation. We are so very fortunate to live in the Green Mountain State. Vermont is an extraordinarily attractive place to reside, and that is due, in no small part, to the tireless efforts of officers at all levels of law enforcement to keep us safe. Quietly and consistently, they put themselves in harm’s way to protect their communities. They make decisions every day to stand on the front lines of our campaigns to combat violence, unlawful firearms activity, drug trafficking, and other dangerous crime. This is a tremendous daily sacrifice – on the part of officers, to be sure – but also on the part of their families and loved ones, who support them and hope for their safe return home each day. We must never take for granted their sacrifices and their heroic work.”
This week, the U.S. Attorney’s Office will hold its annual Law Enforcement Awards Ceremony to recognize and celebrate the exceptional work of Vermont investigators and officers. With these awards, we honor the outstanding work of law enforcement officers at all levels in the pursuit of justice and in support of the mission of the U.S. Attorney’s Office.
According to statistics reported to the FBI, 106 law enforcement officers were killed in line-of-duty incidents in 2018. Comprehensive data tables about these incidents and brief narratives describing the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2018 https://ucr.fbi.gov/leoka/2018/ released this week by the FBI. Although there were a number of injuries in the line of duty, thankfully Vermont did not lose an officer last year.
The names of all 106 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 31stAnnual Candlelight Vigil on the evening of May 13, 2019. No tickets are required and everyone is welcome. For additional information please call 202-737-3400.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2019.
The U.S. Attorney will attend a ceremony to honor Vermont’s fallen officers on Friday, May 17th at 2:00pm at the Vermont Police Academy. Since 1814, Vermont has lost 36 officers in the line of duty. The bravery and selflessness of these officers cost them their lives. They made this ultimate sacrifice so that Vermonters would be safer. This ceremony is open to the public.
For more information about other National Police Week events, please visit www.policeweek.org.Vermont Man Who Exploited Opioid Addictions of Young Women Convicted of Multiple Counts of Sex and Drug Trafficking and Related OffensesRead the Press Release
After a three-week trial, a federal jury in Burlington, Vermont, found Brian Folks, 44, guilty of 13 federal felonies arising from his operation of a violent sex and drug trafficking enterprise that sold heroin and forced young, drug-addicted women to prostitute throughout the greater Burlington area. The verdict was announced by Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney Cristina E. Nolan for the District of Vermont, and DEA Special Agent in Charge-Boston Brian D. Boyle.
The jury deliberated for six hours yesterday before convicting Folks of all sex and drug trafficking counts. The convictions included 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; five counts of distributing heroin; one count of possession of cocaine base with intent to distribute; and one count of conspiracy to distribute heroin and cocaine base. The jury acquitted the defendant of one count of felon in possession of a firearm.
“Brian Folks used violent means to force young women suffering from opioid addictions to perform commercial sex acts, causing them immeasurable harm, and he contributed to the destruction of multiple lives by selling opioids to our communities,” said Assistant Attorney General Eric Dreiband. “Human traffickers are exploiting the opioid epidemic with increasing frequency. Their depraved conduct, like this defendant’s, will not be tolerated, and the Department of Justice will continue its vigorous efforts to hold them accountable, bring justice to their victims, and prevent them from harming others.”
“This conviction represents a total vindication for victims of human trafficking, who bravely told their stories of abuse and degradation at the hands of Folks,” said U.S. Attorney Christina E. Nolan for the District of Vermont. “Folks is a merciless predator, who targeted vulnerable young addicted women. We are grateful that a Vermont jury has served up justice. We hope that this conviction will help the countless other victims of human trafficking find their voices and come forward to seek help and services. We will never stop looking for them, connecting them with recovery services, and seeking convictions and stiff penalties for those who would commit this most heinous of crimes. I commend the collaboration of federal and local law enforcement officers who tirelessly pursued Folks, showing compassion and support for the victims and a recognition that combatting human trafficking is a crucial component of our anti-drug campaign.”
“DEA will aggressively pursue individuals like Mr. Folks who distribute heroin in order to profit and destroy people’s lives,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s verdict not only holds Mr. Folks accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
Evidence presented at trial, including the testimony of victims, established that, between June 2012 and March 2016, Brian Folks targeted young, vulnerable women in the Burlington area. Most had experienced past trauma related to physical and sexual abuse as children growing up in broken homes. By the time they encountered Folks, most were addicted to drugs and homeless. Folks identified their weaknesses, recruited them, and then forced them to perform commercial sex acts for his profit. If they refused or otherwise “violated” one of his many strict rules, he inflicted serious consequences. He beat them, often in front of other victims, creating a climate of fear, and he sexually assaulted them. He withheld heroin from them, causing them to suffer painful physical and mental withdrawal symptoms. 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. Evidence showed that Folks maintained a digital library containing thousands of photographs and videos of the victims. Among the defendant’s victims was a 17-year-old, who suffered from heroin-addiction and who is now deceased. The defendant recruited her to prostitute, photographed her, and advertised her online for prostitution. He then created and published a video on Facebook in which he denounced her as a “promiscuous addict.”
The evidence further established that Folks conspired with two co-defendants to sell heroin and cocaine base throughout the greater Burlington area. Folks’ drug trafficking enterprise was an integral part of his sex trafficking enterprise, and vice versa. He used his access to drugs to identify and target susceptible victims. At first, he promised to split any prostitution proceeds with them, but then he took the remainder in exchange for drugs. As a result, Folks took all of the proceeds and kept the victims under control and dependent on him. He also used the victims to carry out parts of his drug operation. For example, he had them bag the drugs, including heroin and cocaine base, for individual sales and then sell the drugs to buyers through hand-to-hand exchanges. As part of his drug trafficking emperies, he resorted to physical and sexual violence to control the victims and ensure maximum drug profits.
The defendant faces a minimum sentence of 15 years’ imprisonment and a maximum sentence of life imprisonment, as well as mandatory restitution to the sex trafficking victims. His sentencing hearing has not yet been scheduled.
Co-defendants Darren McFarlan and Mandy previously pleaded guilty to conspiring with the defendant to distribute heroin and cocaine base. They both face a maximum sentence of 40 years’ imprisonment.
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 William Darrow for the District of Vermont and Trial Attorney Emily Savner and Special Litigation Counsel Matthew Grady for the Civil Rights Division’s Criminal Section and its Human Trafficking Prosecution Unit.
Brian Folks Convicted of Sex and Drug Trafficking in Forcing and Coercing Heroin Addicted Women to ProstituteRead the Press Release
After a three week trial in United States District Court in Burlington, Vermont, on May 9,
2019, the jury found Brian Folks, 44, guilty of 13 felonies arising from his 2012 – 2016 operation of a sex and drug trafficking ring in Burlington. Folks used force, fraud, and coercion to control and manipulate dozens of young, drug addicted women into prostitution. During the time he prostituted the women, he also supplied them with heroin.Twenty witnesses testified for the government, including eight women, most of whom were addicted to drugs and worked in his sex and/or drug trafficking business. Two additional victims died of drug overdoses prior to trial. Another approximately one dozen involved women were referenced during the trial. Only first names were used at trial and in court filings in an effort to protect victim privacy.
Most women testified that at the outset Folks offered to split prostitution earnings 50/50 with them. However, they soon wound up giving their 50% to Folks to buy drugs from him. Folks thus pocketed 100% of prostitution earnings.
The jury deliberated about six hours yesterday before convicting Folks of all drug and human trafficking charges. The 13 convictions included five counts of sex trafficking by force, fraud, or coercion; one count of sex trafficking of a minor; four counts of distributing heroin; one count of possessing heroin and cocaine base with intent to distribute; one count of conspiracy to distribute heroin and cocaine base, and one count of operating an unlawful prostitution business enterprise.
U.S. Attorney Christina E. Nolan for the District of Vermont stated, “This conviction represents a total vindication for victims of human trafficking, who bravely told their stories of abuse and degradation at the hands of Folks. Folks is a merciless predator, who targeted vulnerable young addicted women. We are grateful that a Vermont jury has served up justice. We hope that this conviction will help the countless other victims of human trafficking find their voices and come forward to seek help and services. We will never stop looking for them, connecting them with recovery services, and seeking convictions and stiff penalties for those who would commit this most heinous of crimes. I commend the collaboration of federal and local law enforcement officers who tirelessly pursued Folks, showing compassion and support for the victims and a recognition that combatting human trafficking is a crucial component of our anti-drug campaign.”
Trial evidence indicated that Folks targeted young, vulnerable women in the Burlington area. Most had experienced very challenging backgrounds, including physical and sexual abuse as children in broken homes. By the time Folks found them they were often addicted and homeless. Folks identified their weaknesses, recruited them, and exploited them for profit. Two women described how he promised them love and security and they fell in love with him. Both wound up being marketed as prostitutes. Various women also described how Folks, when they were experiencing withdrawal symptoms and needed drugs, offered them heroin in exchange for various degrading sexual acts, which he videotaped. Among the defendant’s victims were three young women whom he approached when they were age 17, each suffering from drug addiction. All three wound up photographed by Folks in their underwear and advertised in the “escort” section of Backpage.com. One such victim, since deceased, was the subject of the sex trafficking of a minor conviction.
Folks maintained strict rules to ensure compliance and profit from his sex and drugs businesses. He subjected his employees – all of whom were women – to violence and humiliation if they violated his rules, including beating, raping and physical violence. In early 2016 Folks punished the subject of the minor trafficking conviction by creating and publishing on his Facebook page a strongly derogatory video denouncing her as a promiscuous addict. Folks kept a digital library containing thousands of photographs and videos of his victims. He has a Manslaughter 1 conviction in his native New York City.
“DEA will aggressively pursue individuals like Mr. Folks who distribute heroin in order to profit and destroy people’s lives,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s verdict not only holds Mr. Folks accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
Folks was represented at trial by Burlington attorneys Mark Kaplan and Natasha Sen. They sought to persuade the jury that government witnesses lied about Folks. Folks took the stand and testified on his own behalf, urging that he merely helped women who wished to prostitute and did not coerce or manipulate anyone.
The defendant’s sentencing has not yet been scheduled. He faces a minimum sentence of 15 years and a maximum sentence of life imprisonment, as well as restitution to sex trafficking victims.
Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division stated, “Brian Folks used violent means to force young women suffering from opioid addictions to perform commercial sex acts, causing them immeasurable harm, and he contributed to the destruction of multiple lives by selling opioids to our communities.” “Human traffickers are exploiting the opioid epidemic with increasing frequency. Their depraved conduct, like this defendant’s, will not be tolerated, and the Department of Justice will continue its vigorous efforts to hold them accountable, bring justice to their victims, and prevent them from harming others.”
This case was investigated by the Drug Enforcement Agency, with assistance from the Essex, Burlington and Winooski Police Departments and the Federal Bureau of Investigation. The United States was represented at trial by Assistant U.S. Attorney William Darrow, and Trial Attorney Emily Savner and Special Litigation Counsel Matthew Grady from the Civil Rights Division of the U.S. Department of Justice.
Department of Justice Files Statement of Interest in Vermont First Amendment Free Exercise CaseRead the Press Release
The Department of Justice today filed a Statement of Interest in the U.S. District Court for the District of Vermont supporting parents and parochial high school students who claim that the State discriminated against them in violation of the Free Exercise Clause of the U.S. Constitution by barring them from a state program paying tuition for high school students to take up to two college courses.
The case, A.M. v. French, involves children attending religious schools who challenge their exclusion from Vermont’s “Dual Enrollment Program.” This program provides Vermont high school students the opportunity to take up to two college courses while still in high school, with tuition paid by the State. It is open to public school students, home school students, and students attending nonreligious private schools who do not have a public high school in their school district. The program, however, excludes those students without public high school in their district who choose to attend private religious schools.
“The Constitution’s First Amendment makes clear that students may not be excluded from education programs like the Dual Enrollment Program because of their religious status or their religious choices,” said Assistant Attorney General Eric Dreiband. “The Department of Justice is committed to ensuring that all persons may participate in benefit programs without discrimination based on their faith.”
“Religious liberty is a fundamental and foundational right in this country,” said Christina Nolan, U.S. Attorney for Vermont. “We support the rights of students to both exercise their religion and participate fully in Vermont’s educational programs. We hope this case advances the twin paramount goals of maximizing educational opportunities for young Vermonters and vigilantly guarding religious freedom.”
The United States’ Statement of Interest emphasizes that excluding parochial school students from the Dual Enrollment Program would provide them with the same secular educational benefit—tuition at various local colleges—offered to other students. Excluding students from this secular benefit because they have chosen religious rather than nonreligious private schools is impermissible. The United States notes that two years ago, in Trinity Lutheran Church of Columbia v. Comer, the Supreme Court held that “denying a generally available benefit solely on account of religious identity imposes a penalty on the free exercise of religion,” and may only be justified by the most compelling governmental interests, which Vermont has not shown.
Today’s filing addresses issues set forth in the Department of Justice’s Guidance on Federal Law Protections for Religious Liberty issued on Oct. 6, 2017 at the direction of President Trump’s May 4, 2017, Executive Order Promoting Free Speech and Religious Liberty. The Department of Justice Guidance states that “government may not target persons or individuals because of their religion” and observes that “constitutional protections for religious liberty are not conditioned upon the willingness of a religious person or organization to remain separate from civil society . . . . Individuals do not give up their religious-liberty protections by providing or receiving social services, education, or healthcare.”
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
St. Albans Man Sentenced for Drug DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jeffry Robtoy, 49, of St. Albans, was sentenced yesterday in United States District Court in Rutland, Vermont, to serve 42 months in prison after his guilty plea to distribution of heroin and cocaine base. Chief U.S. District Judge Geoffrey W. Crawford also ordered Robtoy to serve a three year term of supervised release upon his release from prison.
According to court records and proceedings, Robtoy sold heroin and cocaine base at his North Elm Street residence on April 24, 2017. Then on November 2, 2017, law enforcement entered the North Elm Street residence in order to evict Robtoy and execute an outstanding arrest warrant for him. Inside the residence, they found co-defendant Andre Hudson, from Connecticut, in one of the bedrooms. They subsequently searched the residence and found large knives and drug paraphernalia in Robtoy’s bedroom. In the bedroom where Hudson was located, they found over 7 grams of a mixture containing fentanyl and over 14 grams of cocaine base.
Hudson has pleaded guilty to possession with intent to distribute heroin and cocaine base. He has not yet been sentenced.
Assistant U.S. Attorneys Nicole Cate and Jonathan Ophardt handled the prosecution. Robtoy was represented by Michelle Anderson Barth, Esq. U.S. Attorney Christina E. Nolan commended the efforts of the Drug Enforcement Administration and the St. Albans Police Department in the investigation and prosecution of Robtoy.
Mexican National Charged with Alien SmugglingRead the Press Release
The United States Attorney’s Office and the Swanton Sector of the United States Border Patrol announce that Francisco Alejo-Medrano, 27, a citizen of Mexico who has no legal status in the United States, appeared yesterday in United States District Court in Burlington on a charge that he unlawfully transported aliens within the United States. U.S. District Judge Christina Reiss ordered that Alejo-Medrano be detained pending further proceedings.
According to the criminal complaint, on the evening of May 1, agents at the Newport Border Patrol station learned that a group of persons was entering the United States from Canada on foot, near an area known as Goodall Farm in Derby Line. Agents dispatched to the area observed six individuals huddled together in a wooded area near a road near the border. Shortly thereafter, agents saw an SUV drive up to the group. The vehicle stopped and the six individuals got in. A short time later, agents stopped the vehicle. Alejo-Medrano was the driver. The other six passengers were all determined to be undocumented Mexican citizens All seven occupants were arrested. The six passengers are being charged with unlawfully entering the United States.
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, Alejo-Medrano 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.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Alejo-Medrano is represented by Lisa Shelkrot. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Colchester Man Charged with Federal Migratory Bird Violations and Unlawful Possession of a Firearm and AmmunitionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jeremiah Ruhl, 43, of Colchester, Vermont was charged with the unlawful killing of a crow and woodcock without a license and unlawful possession of a turkey vulture. All three of these birds are “migratory birds” and protected by the Migratory Bird Treaty Act. Ruhl was also charged with unlawfully possessing a Stevens .410 shotgun and rifle ammunition after having been convicted of a felony. The indictment, returned by a federal grand jury sitting in Burlington, contains a total of six counts.
Ruhl pled not guilty to all counts on April 26, 2019. The government moved for detention and a detention hearing was held on April 29, 2019. United States Magistrate Judge John M. Conroy ordered that Ruhl be detained pending trial and remanded him to the custody of the U.S. Marshals Service.
If convicted of the firearms violation, Ruhl could face a maximum penalty of ten years imprisonment and a maximum fine of $250,000. If convicted of the Migratory Bird Treaty Act violations, Ruhl could face six months imprisonment and a $5,000 fine for each of the three counts. The indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. If convicted the defendant’s actual sentence will be advised by the Federal Sentencing Guidelines.
United States Attorney Christina Nolan stated: “This case represents a firm commitment by my office to work with state game wardens and federal wildlife agents to vigorously investigate and prosecute federal wildlife crimes that undermine state and federal efforts to protect the precious natural resources of our beautiful State.”
Colonel Jason Batchelder of the Vermont Fish and Wildlife Department stated: “Thanks to our dedicated State Game Warden investigators, and federal agents and prosecutors working in concert, crimes against the natural resources of Vermont and migratory bird species we share with neighboring states, will see an appropriate response.” This case was investigated by the State Game Wardens in the Law Enforcement Division of the Vermont Fish and Wildlife Department, the Colchester Police Department, and the U.S. Fish and Wildlife Service. This case is being prosecuted by Assistant U.S. Attorney Joe Perella. Ruhl is represented by the Federal Public Defenders Office.
U.S. Attorney Christina E. Nolan Announces DEA and Partners Hold National Prescription Drug Take Back Day on SaturdayRead the Press Release
Burlington, VT – This weekend, the U.S. Drug Enforcement Administration will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday, April 27, between 10 a.m. and 2 p.m., the public can dispose of their expired, unused and unwanted prescription medications at over 600 collection sites throughout New England, operated by local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department. To find a collection site near you go to: https://takebackday.dea.gov/.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that flushing these drugs down the toilet or throwing them in the trash posed potential safety and health hazards.
“DEA has touched a nerve in America with its recent Take Back events, as evidenced by the millions of pounds of pills collected during our previous 16 events,” said DEA Special Agent in Charge Brian D. Boyle. “These events are only made possible through the dedicated work and commitment of our local, state and federal partners, and DEA thanks each and every one of them for their continuous efforts on behalf of the American people.”
Last October, during its 16th Take Back Day, the DEA New England Division participated in the drug take back day and, over the course of four hours, 80,277.58 pounds or 40 tons of expired, unused and unwanted prescription drugs were collected at 613 collection sites throughout New England.
The following was the breakdown of collected weights for the six New England states:
CT 4,792.30 lbs.
MA 26,255.58 lbs.
ME 27,156.70 lbs.
NH 11,880 lbs.
RI 4,364 lbs.
VT 5,829 lbs.
TOTAL 80,277.58 lbs.
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.”Duxbury Man Sentenced Under Federal Crack House Statute to Time Served and Three Years of SupervisionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that U.S. District Court Judge William K. Sessions III sentenced Mark Russell (a.k.a. “Snake”), 61, of Duxbury, Vermont, to time-served for violating the federal “Crack House Statute.” This statute prohibits making a place, such as a residence, available for manufacturing, storing, distributing, or using any controlled substance (the statute is not limited to crack cocaine). Judge Sessions also sentenced Russell to a three-year period of intensive supervision by the United States Probation Office, which begins immediately.
Russell previously pled guilty to this offense and admitted to allowing his residence, located on Route 100 in Duxbury, to be used by others for selling, storing, and using controlled substances. Specifically, Russell admitted to allowing an out-of-state dealer to stay at his residence and sell crack cocaine there. In exchange, Russell received user-quantities of crack cocaine from the dealer.
Russell was arrested on April 26, 2018. He was released on June 18, 2018 and allowed to participate in a residential drug rehabilitation program. In sentencing Russell to time-served and accepting the parties’ recommendation, Judge Sessions noted that Russell has “responded very well to treatment.”
This statute imposes a maximum sentence of twenty years imprisonment, up to a $500,000 fine, and up to three years of supervised release to begin after any term of imprisonment is served.
U.S. Attorney Christina Nolan stated that this case is part of a renewed commitment by the U.S. Attorney’s Office to deter Vermont residents from assisting larger-scale out-of-state drug dealers by providing them with a local shelter or base camp for their drug trafficking operations in Vermont. Often, the individuals who house the out-of-state dealers are themselves addicts who, as here, receive payment in the form of drugs.
This case was investigated by the Vermont State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Joe Perella. Russell is represented by Michael Desautels, Esq., of the Federal Public Defenders Office.
16 Individuals Charged or Arrested for Drug Trafficking Crimes as Part of Joint Law Enforcement EffortRead the Press Release
On April 16, 2019, the United States Attorney for the District of Vermont announced a multi-agency, multi-jurisdictional law enforcement effort that focused on drug trafficking in the area of Brattleboro, Vermont. During the three-day operation conducted last week by federal, state, local, and county officers, and federal and state prosecutors, law enforcement arrested or charged 16 individuals, searched 3 residences and 1 hotel room, and seized approximately 1,000 bags of heroin and 70 grams of cocaine base. Twelve individuals have been charged in federal court with participating in drug trafficking crimes. Two have been charged in state court with drug possession crimes.
Those charged in federal court include:
- Curtis Bunkley, 29, of Brattleboro, charged with distribution of cocaine base, distribution of fentanyl, and possession with intent to distribute heroin.
- Sarah Cassell, 32, of Brattleboro, charged with distribution of heroin and cocaine base.
- Arthur Fisk, 28, of Brattleboro, charged with conspiracy to distribute and possession with intent to distribute cocaine base.
- Daniel DeThomas, 37, of Hartford, Connecticut, charged with distribution of cocaine base.
- Luis Duprey, 24, of Holyoke, Massachusetts, charged with using a communication facility to facilitate the commission of a drug felony arising from his attempt to distribute 500 bags of heroin.
- Rachael Gauthier, 49, of Brattleboro, charged with distribution of heroin and fentanyl.
- Rory Jackson, 35, of Queens, New York, charged with possession with intent to distribute heroin and cocaine base.
- Holly Magnuson, 25, of Brattleboro, charged with conspiracy to distribute and possession with intent to distribute cocaine base.
- Robert Newton, 49, of Brattleboro, charged with distribution of heroin.
- Jocelyn Pond, 29, of Brattleboro, charged with distribution of fentanyl.
- Justine Pond, 29, of Brattleboro, charged with distribution of fentanyl.
- Jaylen Pryor, 18, of Brattleboro, charged with conspiracy to distribute and possession with intent to distribute cocaine base.
Those charged in state court include:
- Corey Archer, 38, of Brattleboro, Vermont, charged with cocaine possession.
- Lee Griffin, 36, of Brattleboro, Vermont, charged with cocaine possession.
Defendants Cassell and Newton are currently fugitives. All other defendants were arrested during the operation.
The charges against the defendants are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This operation stemmed from careful planning and collaboration by Vermont law enforcement at all levels. The enforcement surge involved the participation of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Department of Homeland Security - Homeland Security Investigations; the Drug Enforcement Administration; the Federal Bureau of Investigation; the United States Marshals Service; the Brattleboro Police Department; the Vermont Drug Task Force; the Vermont State Police; CBP Air/Marine Unit; and New Hampshire Drug Task Force. Crucial support was provided by the Office of the Windham County State’s Attorney; the Vermont Attorney General’s Office; and the Office of the United States Attorney for the District of Massachusetts.
United States Attorney Christina E. Nolan stated: “Vermont lost 110 lives to drug overdose death last year, and the County with the most of those deaths was Windham County. This is an unacceptable tragedy. There is suffering from the drug crisis in every corner of Vermont, not least of all Brattleboro, in light of its geographic proximity to dealers based in the Springfield, Massachusetts area. This coordinated operation exemplifies the teamwork of Vermont law enforcement and our collective determination to deter and bring consequences to local and out-of-state dealers who ravage our communities. We will continue to surge federal, state, local, and county enforcement resources across the state to bring justice to those who profit from death and immense suffering. I commend this outstanding collaborative effort involving so many agencies and prosecutors’ offices.”
“Fentanyl and heroin abuse are at epidemic levels in Vermont and across the North East,” said DEA Special Agent in Charge Brian D. Boyle. “DEA is committed to aggressively pursuing Drug Trafficking Organizations or individuals who are coming from out of state to distribute these poisons, in order to profit and destroy people’s lives. This investigation demonstrates the strength of collaborative local, county, state and federal law enforcement efforts in Vermont and our strong partnership with the U.S. Attorney’s Office.”
“Operations like this demonstrate the critically important results that can be achieved through close coordination among state, local and federal law enforcement in Vermont,” said Peter C. Fitzhugh, Special Agent In Charge, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, Boston. "Homeland Security Investigations is committed to maintaining our strong working relationship with our state, local and federal law enforcement colleagues in addressing the threats to public safety in the state of Vermont.”
“The operation was a large scale event with significant results directly connected to the strong partnerships that exist among our local, state and federal law enforcement agencies. As made evident by this event, the criminal element has no boundaries. This operation is a testament to our commitment to pursue and disrupt illegal activity in innovative and effective ways throughout Vermont,” stated U.S. Marshal Bradley J. LaRose.
“Effective coordination between federal, state, and local agencies is essential for us to identify and disrupt drug trafficking organizations,” said James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation. “Together, our agencies prevented 70 grams of crack cocaine and nearly 1,000 bags of heroin from being sold on our streets. The FBI, along with our law enforcement partners, is committed to investigating and bringing justice to the individuals arrested in this operation. Anyone who harms our communities with their drug dealing should know we're coming for you.”
“The success of this initiative is a testament to the hard work and dedication of all the law enforcement professionals in the region working in a truly collaborative fashion," said Kelly D. Brady, Special Agent-in-Charge of ATF’s Boston Field Division. "We could not ask for a better group of professionals to work with toward the shared goal of reducing violent crime in the City of Brattleboro and throughout Vermont."
“Resources from federal and state agencies combined with local law enforcement’s knowledge of the activities and needs of their community make a formidable team when conducting drug interdiction operations,” stated Brattleboro Police Chief Michael Fitzgerald. “Integrating multiple agencies in the execution of an operation requires extensive planning, coordination and cooperation. For us to be successful, we need to work together and take advantage of each other’s unique set of skills. This cooperation proved invaluable to the overall success of the most recent operation in Brattleboro. I would like to thank all the agencies which participated in the recent drug interdiction operation in Brattleboro. I would especially like to thank U.S. Attorney Christina Nolan and the members of her team who worked tirelessly over the past several months in coordinating this effort.”
Vermont Public Safety Commissioner Thomas D. Anderson stated: “Vermont has done a tremendous job in making opioid treatment available to anyone who wishes to get treatment. Unfortunately, as these arrests demonstrate, there continues to be a demand for illegal opioids throughout Vermont. One of the most important tactics in fighting Vermont’s opioid epidemic is reducing the supply of this deadly poison by taking dealers off our streets and holding them accountable. This month in Brattleboro, which has one of the highest rates of overdose deaths in the state, the Vermont Drug Task Force worked in close collaboration with local and federal law-enforcement partners to make numerous arrests that targeted the trafficking and sale of these illegal drugs. Our message must be clear: Stop selling, get into treatment, or get arrested. Our efforts to reduce the supply of drugs and the risk of overdose, and to bring offenders to justice, will continue.”
The Vermont Assistant U.S. Attorneys assisting in the operation and subsequent prosecutions are AUSAs John Boscia; Nate Burris; First Assistant U.S. Attorney Kevin Doyle; and Deputy Criminal Chief Jonathan Ophardt. Defendant Bunkley is represented by Chris Davis, Esq. Defendant Duprey is represented by the Office of the Federal Public Defender. Defendant Arthur Fisk is represented by Maryanne E. Kampmann, Esq. Defendant Gauthier is represented by David Watts, Esq. Defendant Jackson is represented by Richard Bothfeld, Esq. Defendant Magnuson is represented by Mary Kehoe, Esq. Defendant Justine Pond is represented by Thomas Sherrer, Esq. Defendant Jocelyn Pond is represented by Katina Ready, Esq. Defendant Jaylen Pryor is represented by the Office of the Federal Public Defender.
U.S. Attorney Kicks Off Elder Fraud Prevention and Response Network ConveningRead the Press Release
U.S. Attorney Christina Nolan served as the keynote speaker for the Consumer Financial Protection Bureau’s Elder Fraud Prevention and Response Network Convening in Burlington, Vermont. Speaking last week to an audience comprised of Federal, State, Local and Private Sector stakeholders, U.S. Attorney Nolan emphasized the commitment of her office to protecting the elderly from any kind of abuse, financial or physical.
U.S. Attorney Nolan stated, “Society should be judged by how it protects its most innocent and vulnerable members. Elder abuse is a despicable crime that is already far too common. Protecting the elderly is a deeply rooted American ideal. As a country, we give the elderly special social and medical protections, as we should. The elderly should likewise receive special focus from our investigative and prosecutorial bodies. The Department of Justice will not stand for elder abuse or elder financial exploitation. At a nationwide level, we are doing more than ever to warn communities about ongoing scams, and to investigate and prosecute those who seek to exploit our seniors. And we are doing more in Vermont.”
The Convening was part of a nationwide effort by the Consumer Financial Protection Bureau’s Office of Older Americans to create or bolster local Elder Fraud Prevention and Response Networks. Convening participants engaged in a group exercise to brainstorm the successes and challenges of addressing Elder Financial Exploitation in Vermont. The Convening also included presentations from Assistant U.S. Attorney Andrew Gilman, Elder Justice Coordinator for the District of Vermont U.S. Attorney’s Office, Vermont Assistant Attorneys General Jamie Renner and John Waszak of the Vermont Attorney General’s Office Elder Protection Initiative, and Captain Frank Koss, President of the Vermont Chiefs of Police Association.
U.S. Attorney Nolan expressed her thanks to all who attended and helped organize the convening, including the Consumer Financial Protection Bureau’s Office of Older Americans, the Financial Abuse Specialist Team of Vermont, the Vermont Bankers Association, and the Association of Vermont Credit Unions.
If you have information concerning elder abuse, please contact law enforcement. The U.S. Attorney’s Office may be reached at 802-951-6725.
Indictment for Federal Firearms Offense Relating to Officer-Involved Shooting in Pownal, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Bernard Rougeau, 48, of Pownal, Vermont was arraigned today in federal court in Burlington. A federal grand jury indicted Rougeau for possessing a firearm having been previously convicted of a felony crime.
According to court records, the charge in the Indictment relates to Rougeau’s armed encounter with members of the Vermont State Police and local law enforcement on October 18, 2018 in Pownal. Police responded to a 911 call reporting that Rougeau was intoxicated and had cut himself. Rougeau confronted law enforcement officers while carrying a loaded 12 gauge double-barreled shotgun, and did not comply with officers’ commands to drop the weapon, instead raising it toward a Vermont State Trooper. Members of law enforcement shot Rougeau and deployed a taser before Rougeau was disarmed. Police then rendered medical aid before Rougeau was flown to Albany Medical Center, where he received treatment for his injuries. Rougeau was ultimately transferred to state custody, where he remains while awaiting trial in Bennington County on charges of Attempted Murder in the Second Degree, Aggravated Assault on a Law Enforcement Officer, Reckless Endangerment, and Interference with Emergency Services. At the time of his confrontation with law enforcement, Rougeau was prohibited from possessing firearms under federal law due to his felony record.
If convicted, Rougeau 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.
United States Attorney Christina Nolan commended the investigative efforts of the Vermont State Police, as well as the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). She stated: “This case highlights the inherent danger of firearms in the hands of convicted felons and domestic abusers. The U.S. Attorney’s Office will continue to prioritize enforcement of federal gun laws against those who should never possess them. We will be especially aggressive and intolerant when it comes to those who endanger our brave men and women in uniform. This case exemplifies their courage and their daily sacrifices in keeping us all safer.”
“Convicted felons who carry firearms pose a serious risk to public safety,” said ATF Special Agent in Charge Kelly D. Brady. “ATF will continue to aggressively pursue these investigations and work with our law enforcement partners to remove these violent criminals from our communities.”
The United States is represented in this matter by Assistant U.S. Attorney Spencer Willig. The defendant is represented by the Federal Public Defender.
Sudbury Man Sentenced to 15 Months in Prison for Flying Without a Valid Pilot’s LicenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Angelo Efthimiatos, 49, of Sudbury, Vermont, was sentenced yesterday to serve 15 months in prison followed by a year of supervised release following his conviction at trial in December 2018 of flying without a valid pilot’s license. The sentence will be served concurrently with an 18 month sentence from the Southern District of Iowa for violating terms of his prior federal supervised release. Efthimiatos, who has been in custody since April 2018, will receive credit for time served.
According to the indictment in the case and information presented at trial, just after midnight on April 10, 2018, Efthimiatos landed a small plane at the Rutland Regional Airport in North Clarendon, Vermont. The flight originated in Nantucket, Massachusetts. Efthimiatos was intercepted by federal agents at the airport and was arrested. He has been detained since that time. At the time of his arrest, Efthimiatos did not have a valid pilot’s license or “airman’s certificate” from the Federal Aviation Administration (FAA). His airman’s certificate had been revoked by the FAA as of July 1, 2014.
The United States Attorney’s Office recognized the hard work of Special Agents from the Drug Enforcement Agency and the Department of Transportation’s Office of Inspector General to support the investigation and trial. The FAA also provided extensive support during the case.
At trial, the government was represented by Assistant U.S. Attorneys Nicole Cate and Eugenia Cowles. Mr. Efthimiatos was represented by Craig S. Nolan, Esq. of Sheehy, Furlong, and Behm, P.C.
Federal Grand Jury Returns Indictment Charging Para-Educator with Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on April 10, 2019, a federal grand jury sitting in Rutland, Vermont, returned an indictment charging Bradley Smith, 66, of Jericho, Vermont, with one count of possession of child pornography. Smith will be arraigned on the indictment by U.S. Magistrate Judge John M. Conroy on April 16, 2019.
According to court records and proceedings, the Vermont Internet Crimes Against Children Task Force (the ICAC) received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) which reported that a file depicting child pornography had been uploaded to an Internet search engine. Law enforcement investigated the CyberTip and determined that the image of child pornography had been uploaded from Smith’s residence in Jericho, Vermont. On April 1, 2019, law enforcement executed a search warrant at Smith’s residence. At this time, Smith disclosed, among other things, that he possessed child pornography on his computer, that he had been interested in child pornography for “decades,” and that he found images of child pornography to be sexually arousing. A forensic preview search of Smith’s computer revealed that he possessed more than 100 images of suspected child pornography.
Prior to execution of the search warrant and his arrest, Smith was employed as a para-educator in a first-grade classroom at the Union Memorial School in Colchester, Vermont.
If convicted of the charge, Smith faces a sentence of up to 10 years imprisonment, a term of supervised release of at least five (5) years and up to a lifetime term, and a fine of up to $250,000. If convicted, Smith’s sentence will be determined by reference to the advisory United States Sentencing Guidelines. U.S. Attorney Nolan emphasized that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force and Homeland Security Investigations.
Assistant U.S. Attorney Barbara A. Masterson is handling the prosecution of Smith. Assistant Federal Public Defender Steven L. Barth represents Smith.
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.
U.S. Attorney Announces Summer Camps’ Obligations to Reasonably Accommodate Children with DisabilitiesRead the Press Release
Summer camps are legally required to make reasonable accommodations to accept children with disabilities, U.S. Attorney Christina E. Nolan announced today.
With summer approaching, Vermont camps are preparing to welcome children. To help ensure that children with disabilities receive the opportunity to attend summer camp, the U.S. Attorney’s Office recently sent the attached flyer to hundreds of summer camps located within the State of Vermont reminding them of their obligations under the Americans with Disabilities Act (“ADA”).
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modification to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for children with disabilities to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
“The law requires camps to provide equal opportunities to children with disabilities whose needs can be reasonably accommodated,” U.S. Attorney Nolan remarked. “But of equal importance is that it is the right thing to do. Camps present a tremendous opportunity for positive experiences in childhood, offering environments where children grow in confidence, knowledge, ability and interpersonal skill. No child should be unreasonably denied those opportunities because they have a disability.”
Additional information about the ADA is available at www.ada.gov or via phone at the ADA Information Line: 800-514-0301 (voice); 800-514-0383 (TTY). If you believe your civil rights have been violated, you may file a complaint with the U.S. Attorney’s Office for the District of Vermont by visiting https://www.justice.gov/usao-vt and clicking “File a Civil Rights Complaint.”
Federal Grand Jury Returns Indictment Against Bronx Resident for Possession with Intent to Distribute Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on April 10, 2019, a federal grand jury returned an indictment charging Jesse Hernandez of the Bronx, New York with possession with intent to distribute crack cocaine. The indictment alleges that on March 20, 2019, Hernandez possessed with intent to distribute 28 grams or more of crack cocaine.
According to court records, the one-count indictment is based on a drug seizure from a car in which Hernandez was a passenger. On March 20, 2019, Hernandez was the passenger in a rental car travelling 99 miles per hour northbound on Interstate 89 near Berlin, Vermont. After the vehicle was stopped for excessive speed, Vermont State Police obtained a state search warrant for the vehicle. As a result of the search, over 200 grams of crack cocaine were found in a sealed package held in a pillow within a plastic bag.
If Hernandez is convicted, he faces a maximum sentence of forty years with a mandatory minimum sentence of five years imprisonment as well as a fine of up to $5,000,000. If convicted, Hernandez’s sentence will be advised by the federal sentencing guidelines. The United States Attorney emphasizes that the charges contained in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proved guilty.
United States Attorney Christina E. Nolan commended the efforts of the Vermont State Police and Vermont Drug Task Force in this matter.
The United States is represented by Assistant U.S. Attorney Nikolas Kerest. Hernandez is represented by Assistant Federal Public Defender David McColgin.
Three Vermonters Indicted for Conspiring to Barter Firearm for DrugsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that a federal grand jury’s indictment was unsealed yesterday that charged Jennifer Griffin, Kenneth Stone, and Gregory Miller with conspiring to use an Armscor of the Philippines, model M1911-A1F .45 caliber semi-automatic pistol during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(o). Griffin and Miller were arrested yesterday. Stone is currently in the custody of the Vermont Department of Corrections for other matters. Griffin and Miller appeared before United States Magistrate Judge John M. Conroy, and were ordered temporarily detained pending a detention hearing later this week.
According to court records, the investigation stemmed from the July 6, 2018 shooting of New York Police Department Detective Miguel Soto, who suffered a gunshot wound in the line of duty from an Armscor of the Philippines, model M1911-A1FS .45 caliber semi-automatic pistol. Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) quickly learned that the firearm had been purchased in Rutland, Vermont less than a year before the shooting. The ATF investigation in Rutland revealed that the firearm had been stolen from a friend of defendant Griffin’s (Henry Duval). Through various interviews, ATF agents developed probable cause to search the contents of defendant Griffin’s Facebook account, in which they located messages between Griffin and co-defendant Kenneth Stone discussing trading a firearm for narcotics, and a photograph of Duval’s stolen Armscor of the Philippines, model M1911-A1FS .45 caliber semi-automatic pistol which Griffin had sent to Stone. A search of defendant Stone’s Facebook account revealed messages with defendant Miller, in which the two discussed trading the firearm for narcotics.
If convicted, all three defendants face a maximum of twenty 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 complaint is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
United States Attorney Christina E. Nolan commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). She stated: “this case highlights the worst that can happen when firearms are injected into the narcotics trade and placed in criminal hands. Combatting such crime will remain a central focus of the U.S. Attorney’s Office, and we will continue to partner closely with ATF to combat violent crime in all its forms. Thanks to the ATF for its diligence and outstanding work in tracing the origins of the firearm that wounded a law enforcement officer in the line of duty. Vermonters involved in illegally acquiring guns for drug dealers and other dangerous criminals must understand that they will be held accountable. Far too often these guns are later recovered in crime scenes.”
Special Agent In Charge John B. Devito of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, New York Field Division, stated: “Preventing the illegal use and trafficking of firearms is a central focus of ATF's strategy to combat violent crime and protect our communities. The three individuals charged today are alleged to have conspired to trade an illegal firearm for narcotics. Illegal firearms often find themselves in the hands of bad actors producing bad results as they did in this case with the shooting of a New York City Police Department Detective. Thanks to the diligent work of the investigators and detectives of the ATF/NYPD Joint Firearms Task Force these individuals were brought to justice preventing another potential violent crime and or death. I would like to thank the United States Attorney's Office for their guidance and work prosecuting this case.”
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. Defendant Griffin is represented by the Office of the Federal Public Defender. Defendant Miller is represented by Richard Goldsborough, Esq. Defendant Stone has not yet appeared on this matter.
Manchester, Vermont Man Charged with 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, 29, who resided in both Manchester, Vermont and Hartford Connecticut, was arrested on federal drug trafficking charges contained in a two-count Indictment. The charges allege that Smith possessed, with intent to distribute, heroin, fentanyl, cocaine, and crack cocaine.
According to court records, the two-count indictment is based on two drug seizures from cars in which Smith was either driving or a passenger. The first count involves a seizure of drugs by the Manchester Police Department on January 25, 2019. According to court records, Smith was a passenger in a car in which the Manchester Police Department later found, pursuant to a state search warrant, approximately 100 grams of cocaine powder, 45 grams of cocaine base, eight grams of heroin and about 44 milligrams of fentanyl. The second count relates to a seizure on November 27, 2018, in Sunderland, Vermont. The Vermont State Police stopped a car in which Smith was driving and later found, pursuant to a state search warrant, approximately 40 grams of cocaine powder, ten grams of crack, and ten bundles of heroin.Smith was arraigned on April 4, 2019 in U.S. District Court in Burlington and pled not guilty to the charges. Upon the government’s motion for detention, Magistrate Judge John M. Conroy ordered that Smith be detained in the custody of the U.S. Marshals Service pending trial.
The Indictment is an accusation only and the defendant is presumed innocent unless proven guilty. If Smith is convicted, he faces a maximum sentence of 40 years with a mandatory minimum sentence of five years imprisonment as well as a fine of up to $5,000,000. If Smith is convicted, his actual sentence will be advised by the Federal Sentencing Guidelines.
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 the Office of the Federal Public Defender in Burlington.
Justice Department and Vermont U.S. Attorney’s Office Observe National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
This week, April 7-13, 2019, the United States Attorney’s Office joins the rest of the Department of Justice in observing National Crime Victims’ Rights Week, April 7-13, 2019. The U.S. Attorney’s Office will participate in an annual event that celebrates and supports crime victims.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”
United States Attorney Christina E. Nolan stated: “The pursuit of justice for victims and their families is a central component of our mission. Those who have suffered senselessly at the hands of criminals – whether from violence, drug trafficking, financial crime, child exploitation, or other crime – will always have tireless advocates at the U.S. Attorney’s Office. Working with our brave law enforcement officers, we will strive to ensure victims’ rights are protected and that they receive appropriate compensation and recovery services. We will also continue to collaborate with community partners to assist crime survivors and make Vermont safer through prevention initiatives.”Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. In Vermont, this year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
This year’s event in Vermont took place at the Capitol Plaza in Montpelier, Vermont on April 8. The day included a workshop in the morning presented by master storyteller Sue Schmidt. An awards ceremony followed in the afternoon to honor victim advocates and allied professionals from across Vermont who serve victims of crime.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office, District of Vermont- Victim Witness Program at (802) 951-6725.
Vermont Army National Guard Supply Sergeant Indicted for Stealing Pallets of Military Gear from Rutland ArmoryRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Ammon Yule, 42, of Chittenden, Vermont was arrested today. A federal grand jury indicted Yule for three counts of theft of government property and three counts of mail fraud in connection with Yule’s work as a Vermont Army National Guard supply sergeant in Rutland.
Yule pled not guilty to the charges at his arraignment today before U.S. Magistrate Judge John M. Conroy. Judge Conroy ordered Yule released on conditions pending trial.
According to court records, Yule devised a scheme through which he ordered large quantities of uniform items from Army warehouses in Kentucky to be shipped to his attention at a National Guard facility in Rutland. Yule then sold much of the gear he received on eBay, on which he maintained an account advertising new, official U.S. government-issue uniform items for sale. Between March 2017 and March 2018 alone, Yule stole dozens of boots, parkas and duffel bags from the U.S. government through this scheme.
If convicted, Yule faces a maximum of ten years of imprisonment and a $250,000 fine on each count of theft of government property, and a maximum of 20 years of imprisonment and a fine of up to $250,000 on each count of mail fraud. 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 are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty.
United States Attorney Christina Nolan commended the investigative efforts of the U.S. Army Criminal Investigation Command. She stated: “My office will continue to vigilantly guard the public fisc. In particular, we will bring consequences to those who would steal precious resources from our armed services.”
The United States is represented in this matter by Assistant U.S. Attorney Spencer Willig. The defendant is represented by the Federal Public Defender.
Para-Educator Charged with Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Bradley Smith, 66, of Jericho, Vermont, was charged by criminal complaint in United States District Court in Burlington, Vermont, with one count of possession of child pornography. Smith was arrested and made his initial appearance to answer the complaint in federal court on April 1, 2019. At the hearing, U.S. Magistrate Judge John M. Conroy ordered Smith released on conditions. Smith is next scheduled to appear in Federal court on April 16, 2019.
According to court records and proceedings, the Vermont Internet Crimes Against Children Task Force (the ICAC) received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) which reported that a file depicting child pornography had been uploaded to an Internet search engine. Law enforcement investigated the CyberTip and determined that the image of child pornography had been uploaded from Smith’s residence in Jericho, Vermont. On April 1, 2019, law enforcement executed a search warrant at Smith’s residence. At this time, Smith disclosed, among other things, that he possessed child pornography on his computer, that he had been interested in child pornography for “decades,” and that he found images of child pornography to be sexually arousing. A forensic preview search of Smith’s computer revealed that he possessed more than 100 images of suspected child pornography.
Prior to execution of the search warrant and his arrest, Smith was employed as a para-educator in a first-grade classroom at the Union Memorial School in Colchester, Vermont.
Special Agent Caitlin Moynihan of Homeland Security Investigations is the lead Federal investigator. She can be reached at (802) 660-5016.
U.S. Attorney Nolan emphasized that the defendant is presumed innocent until and unless proven guilty. If convicted, Smith’s sentence will be determined by the advisory United States Sentencing Guidelines.
U.S. Attorney Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force and Homeland Security Investigations.
Assistant U.S. Attorney Barbara A. Masterson is handling the prosecution of Smith. Assistant Federal Public Defender Steven L. Barth represents Smith.
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.
Shrewsbury Man Sentenced to 65 Months Imprisonment for Federal Gun Offenses Involving Unlawful Possession of Machine GunRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on March 26, 2019, Frank Weir, 57, of Shrewsbury, was sentenced by U.S. District Judge Christina Reiss to 65 months imprisonment. Weir had previously pled guilty to a two-count indictment and agreed to the 65-month sentence. The first count charged Weir with possessing a machine gun without a permit in February 2016. According to court records, the machine gun was a Thompson U.S. Navy 1928 submachine gun, .45 caliber (manufactured by Colt). The second count alleged that this same firearm had an obliterated serial number, in violation of federal law. Judge Reiss also sentenced Weir to three years of supervised release, which begins when he is released from prison.
The plea agreement was part of a global settlement with the federal government and the Rutland County State’s Attorney’s Office, where Weir is facing a separate and unrelated state charge of second-degree murder for the shooting death of Donna Marzilli on February 15, 2016. On March 27, 2019, Weir agreed to pled guilty to the state murder charge and receive a 20-year sentence, all suspended but eight years, to be served concurrently with the federal sentence. At the state hearing, the state court judge deferred acceptance of the state plea agreement until a pre-sentence investigation could be completed.
The machine gun at issue in this federal case was not related to the State’s murder charge. Under the National Firearms Act, a person may not possess a machine gun unless it is registered to that person in the National Firearms Registration and Transfer Record. A violation carries a maximum penalty of ten years. Under the Federal Gun Control Act, it is unlawful to possess a firearm with an obliterated serial number. This offense carries a maximum sentence of five years.
The advisory Sentencing Guidelines called for a sentence of only 30-37 months for Weir’s firearm offenses, which are unrelated to the murder of Donna Marzilli. The government argued, however, and Judge Reiss agreed, that a significantly higher sentence was justified based on a pattern of domestic abuse by Weir that culminated in Marzilli’s death. At sentencing, the government cited studies which show that when the abuser of a woman owns a firearm, the woman is five to six times more likely to be murdered.
United States Attorney Christina E. Nolan stated: “This is another example of how rigorous, collaborative enforcement of our federal firearms laws brings consequences to domestic abusers and takes them out of our communities. We will continue to work with our state and local partners to use existing federal laws to remove guns from the hands of dangerous individuals, particularly those who perpetrate the horror of domestic violence. We thank our counterparts in the Rutland County State’s Attorney’s Office for the close cooperation to achieve this result.”
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Vermont State Police. The United States is represented by Assistant U.S. Attorney Joe Perella and Frank Weir is represented by Peter Langrock, Esq. of Middlebury.
New Hampshire Man Arrested for Possessing Firearm During Attempted Robbery of THC Products in Springfield, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Ira Flowers, 36, of Claremont, New Hampshire was arrested yesterday after having been indicted by a Vermont grand jury for possessing a 9mm semi-automatic pistol after having been convicted of multiple felonies. Flowers appeared before United States Magistrate Judge Andrea K. Johnston, in Concord, New Hampshire, and consented to his detention pending transfer to the District of Vermont.
According to court records, the charge in the Indictment stems from defendant Flowers’s possession of a firearm on January 6, 2019, at the Holiday Inn in Springfield, Vermont. Defendant Flowers and three others met in one of the hotel rooms to exchange thousands of dollars for tetrahydrocannabinol (THC)-infused products. During the meeting, Flowers brandished a 9mm pistol, and attempted to rob the seller of the THC products. A struggle ensued, and Flowers was stabbed in the neck, shot once in the leg (with the pistol he unlawfully possessed), and left in the hotel hallway bleeding profusely from his wounds. A search of the hotel room by the Vermont State Police resulted in the seizure of the 9mm pistol possessed by the defendant, as well as a single 9mm casing.
If convicted, Flowers 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 complaint is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
United States Attorney Christina Nolan commended the investigative efforts of the Vermont State Police, as well as the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). She stated: “Federal prosecutors in Vermont will show no tolerance for gun crime and violence in connection with the illicit drug trade, and prosecution of these crimes will remain the top priority of the U.S. Attorney’s Office. These principles apply with equal force to those who commit violent crime – such as robberies, burglaries, and gun offenses – in connection with the marijuana and THC trade.”
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. The defendant was represented in the District of New Hampshire by the Federal Public Defender.
Anthony Smith Sentenced to 63 Months in Prison after a Jury Finds him Guilty of being a Convicted Felon in Possession of a Firearm and AmmunitionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Anthony Smith, age 39, of Brooklyn, New York, was convicted after a four-day jury trial of being a felon in possession of a firearm and ammunition. Judge Reiss sentenced Smith to two concurrent 45-month sentences following guilty verdicts on each of the two counts of the indictment and an additional 18 months for having violated the terms of his federal supervised release.
The evidence presented at trial revealed that in April 2016, Smith was asked to travel to Vermont to collect on a debt owed by a Vermont-based addict. Smith, who was on supervised release at the time in connection with a prior drug conspiracy conviction, traveled overnight with a mother and her young child to Vermont. When they arrived in the early hours of April 19, 2016, Smith directed the mother to drive him to the home of the debtor where he later confronted the man about repaying the debt. A neighbor noticed the suspicious vehicle in the driveway and reported it to the police. The debtor left his home seeking to collect money with which to pay Smith, during which time Smith waited at the On-The-Run convenience store in St. Albans. The Vermont State Police were on the lookout for the suspicious vehicle and promptly located it. Smith was questioned at the scene and a search of the vehicle led to the discovery of a Colt .22 caliber handgun together with twenty-four rounds of matching .22 caliber ammunition. The jury concluded that Smith possessed the gun and ammunition.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives as well as the Vermont State Police. The Vermont State Police were instrumental in the defendant’s arrest having located the vehicle Smith occupied, as well as the weapons.
U.S. Attorney Christina Nolan stated: “We are committed to protecting Vermont communities from gun violence. This case arose from not only strong police work, but through the efforts of a vigilant civilian neighbor who noticed the suspicious vehicle and alerted the police. Firearms in the hands of convicted felons are an inherent danger to public safety, and we urge our citizens to continue to be on the lookout for suspicious gun activity and to err on the side of reporting to law enforcement. We will continue to work collaboratively with our federal, state, and local law enforcement partners to prevent gun crime and bring to justice those who fail to comply with our gun laws.”
Assistant U.S. Attorneys Owen C.J. Foster and Wendy Fuller tried the case on behalf of the United States. Mark Kaplan represents Anthony Smith.
Four Charged in Connection with Drug Activity at 33 Oak Street, Apt. #4, Brattleboro, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on February 28, 2019, Francis Macie, Linda Wainwright, Desiree Wells-Cooper, and Juan A. Sanchez, Jr., all of Brattleboro, were arrested and charged with violations of the federal Controlled Substances Act in connection with drug activity at 33 Oak Street, Apt. #4, in Brattleboro, Vermont.
According to Court records, from in or about December 2018 through in or about February 2019, Francis Macie rented, used, and maintained 33 Oak Street, Apt. #4, in Brattleboro, Vermont for the purpose of distributing and using controlled substances, including heroin, fentanyl, and cocaine. On December 28, 2018, law enforcement officers searched the residence at 33 Oak Street, Apt. #4 and seized over 200 grams of cocaine base, approximately 70 Oxycodone/Morphine pills, and firearms and ammunition, among other things. On February 15 and 25, 2019, the Vermont State Police Vermont Drug Task Force, assisted by a confidential informant, purchased fentanyl from Desiree Wells-Cooper. Both purchases took place at 33 Oak Street, Apt. #4. On February 20 and 22, 2019, the Vermont State Police Vermont Drug Task Force, assisted by a confidential informant, purchased heroin from Denise Wainwright. Both purchases took place at 33 Oak Street, Apt. #4. On February 28, 2019, law enforcement officers executed another search warrant at 33 Oak Street, Apt. #4, leading to the arrests of Macie, Wells-Cooper, and Wainwright. Also inside the residence was Juan A. Sanchez, Jr., who was arrested and charged with possession with intent to distribute cocaine and cocaine base. Macie is charged with renting, using, and maintaining 33 Oak Street, Apt. #4 for the purpose of using and distributing controlled substances. Wells-Cooper and Wainwright are charged with distributing controlled substances.
The case is being investigated by the Vermont State Police Vermont Drug Task Force, the Brattleboro Police Department, and the Federal Bureau of Investigation.
The defendants made their initial appearances on February 28 and March 1, 2019 before U.S. Magistrate Judge John M. Conroy. Macie, Wells-Cooper, and Sanchez, Jr. were ordered detained. Wainwright is scheduled for a detention hearing on March 6, 2019.
If convicted, Macie, Wainwright, Wells-Cooper, and Sanchez, Jr. each face up to twenty years of imprisonment on each charge. The actual sentences, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges contained in the complaints are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty.
The United States is represented in this matter by Assistant U.S. Attorneys Jonathan A. Ophardt and John J. Boscia. Francis Macie is represented by John-Claude Charbonneau. Linda Wainwright is represented by Ernest Allen. Desiree Wells-Cooper is represented by Mark Oettinger. Juan A. Sanchez, Jr. is represented by Karen Shingler.
Williamstown Man Held on Firearms ChargeRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Douglas Bedell, age 56, of Williamstown, Vermont, has been indicted and detained on a federal firearms charge. At his arraignment in U.S. District Court in Burlington on February 22, 2019, Bedell pleaded not guilty and was ordered detained in the custody of the U.S. Marshal’s Service pending disposition of the charge. Bedell was also ordered to undergo a competency evaluation.
On December 12, 2018, Bedell was arrested by the Vermont State Police in Orange County and charged with Aggravated Domestic Assault after an altercation with a female. Half-a-dozen firearms were found in his residence, along with over 1600 rounds of ammunition. At the time, Bedell had two Vermont felony convictions, and was on State court release based on a 2017 Aggravated Assault with a Weapon charge in Washington County. As a result, federal law barred his possession of firearms. Bedell was detained in State custody after his December, 2018 arrest. A Criminal Complaint filed by the Bureau of Alcohol, Tobacco and Firearms initiated the federal prosecution.
The Criminal Complaint and Indictment are accusations only and Bedell is presumed innocent until and unless proven guilty. The maximum possible sentence on the federal charge is 10 years imprisonment. However, any sentence would be informed by the U.S. Sentencing Guidelines.
U.S. Attorney Christina E. Nolan thanked the Vermont State Police and ATF for their investigative work and collaboration. She stated: “this case exemplifies how federal guns laws may be brought to bear to address and prevent domestic violence in all Vermont communities.” The United States is represented by Assistant U.S. Attorney William Darrow. Bedell is represented by Assistant Federal Defender Elizabeth Quinn.
North Carolina Woman Sentenced to Four Months for Alien SmugglingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Carmen Melari Ferrufino Perdomo, 29, of Charlotte, North Carolina, was sentenced on February 22, 2019, to a four-month period of incarceration upon her conviction for transporting aliens who had entered the United States illegally from Canada. The prison term will be followed by a one-year period of supervised release. Ferrufino was also ordered to pay $5,100 as a special assessment in light of the nature of her crime. United States District Judge Christina Reiss ordered Ferrufino to surrender to the Bureau of Prisons on April 5, 2019.
Court records show that on March 17, 2018, Ferrufino flew from her home in North Carolina to Burlington, Vermont, where she rented a car. She then drove in the early morning of March 18, 2018, to a pre-arranged location on the United States/Canada border to pick up six persons, all aliens who had just entered the United States illegally by walking through the woods. The United States Border Patrol stopped Ferrufino a short while after she had picked up her passengers. Records show that Ferrufino intended to drive all six aliens to New York City, and to receive payment in return.
Counsel for Ferrufino argued for a sentence of six months of house arrest. Judge Reiss disagreed, noting the premeditated nature of Ferrufino's conduct, as well as the societal risks associated with Ferrufino bringing persons she did not know, who had just entered the country unlawfully, further into the United States.
The case was investigated by the United States Border Patrol.
Ferrufino was represented by Assistant Federal Defender David McColgin. Assistant United States Attorney Michael Drescher was the prosecutor.
New Jersey Man receives Three Years in Jail for Gun TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Marvin A. Jones, 24, a resident of New Jersey who recently lived in Vermont, was sentenced to 36 months imprisonment on February 20, 2019, in United States District Court in Rutland.
Jones pleaded guilty in November, 2018, to purchasing a semi-automatic pistol in Vermont and selling it in New Jersey without a license to do so. As part of a plea deal, Jones also resolved several pending, unrelated Vermont charges. Court filings indicated that Jones acquired other firearms in Vermont during the same time period.
The Bureau of Alcohol, Tobacco and Firearms initiated the investigation when the pistol sold by Jones was recovered in the State of New Jersey and found to have been originally purchased in the State of Vermont. The firearm was recovered from a New Jersey man in a stolen car, and was matched by ballistics tests to an earlier shooting in that area of New Jersey. ATF investigators conducted numerous interviews and found the pistol had been purchased by Jones as a used gun via Armslist.com from the original owner. Jones transported it from Vermont to New Jersey where he sold the firearm to an associate. He had pending Vermont felony charges at the time.
Jones was represented by Assistant Federal Public Defender David McColgin. The United States was represented by Assistant U.S. Attorney William Darrow.
East Dorset Man Charged with Second Federal Child Pornography CrimeRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Walter Read, 76, of East Dorset, Vermont, was indicted on February 14, 2019 by a Burlington grand jury with one count of possession of child pornography and one count of access with intent to view child pornography. On February 19, 2019, Read was arrested and arraigned in U.S. District Court in Burlington before The Honorable John M. Conroy. At arraignment, Read pleaded not guilty to both charges. Read is next scheduled to appear in federal court on February 22 for a hearing on the government’s motion for his pretrial detention.
According to Court records, Read sustained a previous conviction in federal court for possession of child pornography. For that conviction, The Honorable William K. Sessions III sentenced him in 2012 to 37 months in prison to be followed by five years of supervised release. Read is accused of committing the instant child pornography offense – involving alleged downloading of images of child exploitation – while serving his term of federal supervised release.
U.S. Attorney Christina E. Nolan is handling the prosecution of Read. The lead federal investigator is a Homeland Security Investigations Special Agent. Assistant Federal Public Defender Steven Barth represents Read.
U.S. Attorney Nolan emphasized that the defendant is presumed innocent until and unless proven guilty. If convicted, Read faces a ten-year mandatory minimum sentence for each count. The advisory United States Sentencing Guidelines will also inform the Court at sentencing.
U.S. Attorney Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force, Homeland Security Investigations, and the Manchester, Vermont Police Department.
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.
Vermont U.S. Attorney’s Office Collects $3,743,362.58 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
U.S. Attorney Christina E. Nolan announced today that the District of Vermont collected $3,743,362.58 in criminal and civil actions in Fiscal Year 2018. Of this amount, $704,388.04 was collected in criminal actions and $3,038,974.54 was collected in civil actions.
Additionally, the U.S. Attorney’s Office in Vermont worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $19,390.41 in cases pursued jointly by these offices, all of which were results in criminal actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. 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 2018.”
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.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
Boston Residents Indicted on Drug and Firearm Conspiracy Charges in BurlingtonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that two defendants have been indicted in Burlington on multiple charges, including Conspiracy to Distribute Cocaine Base, Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime, and Interstate Transportation of Firearms with Removed Serial Numbers. The indictment follows a criminal complaint that had been previously filed, alleging that the two Boston residents agreed with one another and others to distribute crack cocaine and obtain firearms in the Swanton area between September 2017 and March 2018. John Guerrero, 26, and Darwin Medina, 34, both of Boston, Massachusetts, were indicted in a four-count indictment by a federal grand jury in Burlington. An arraignment on the indictment will be scheduled soon.
According to court records, John “Sunshine” Guerrero and Darwin “Weezy” Medina had moved into a residence in Swanton, Vermont area and used it as a place from which to distribute large quantities of crack cocaine—in excess of 280 grams. They regularly brought cocaine powder to Vermont from South Boston, prepared crack cocaine from it in Swanton, and distributed it daily to multiple customers in exchange for cash or firearms. The pair acquired multiple firearms by having drug customers “straw purchase” the guns, wherein the licensed firearms dealers were unaware that the actual purchasers were not the individuals appearing in the stores. The serial numbers of many of the firearms were removed or obliterated by the defendants, who then transported or directed the transportation of many of the firearms from Vermont to Boston. At least five of those firearms have since been recovered by law enforcement in the Boston area during investigations. Guerrero and Medina were arrested on January 15, 2019, by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in Boston after a federal criminal complaint was filed earlier this year. The defendants appeared in federal court in Burlington on February 5 for detention hearings, and they were remanded to the custody of the United States Marshal pending further case proceedings.
In an earlier phase of the investigation, the grand jury indicted five of the drug customers who had straw purchased approximately thirty firearms for Guerrero and Medina. As noted in the criminal complaint associated with that case, those customers provided or helped to provide false information to gun stores in Franklin County to acquire the firearms and transfer them to Guerrero and Medina in exchange for crack cocaine. The defendants completed firearm transaction forms when purchasing the firearms in which they falsely stated that they were the actual buyers of the firearms and were not unlawful users of any controlled substances. https://www.justice.gov/usao-vt/pr/five-arrested-and-charged-straw-purchasers-30-firearms
The United States Attorney emphasizes that the charges contained in both indictments are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If they are convicted as charged, defendants John Guerrero and Darwin Medina face a minimum term of imprisonment of fifteen years and a maximum possible term of life imprisonment, but any sentence ultimately imposed will be advised by the United States Sentencing Guidelines.
U.S. Attorney Christina E. Nolan stated: “It is of paramount importance that we stop the flow of dangerous drugs into Vermont and the trafficking of illegally acquired Vermont guns to drug source cities, like Boston. This case is an outstanding example of the ATF working seamlessly with local police departments in Massachusetts and Vermont to do just that. We will continue to pursue serious charges and sentences for those who mix guns and violence with the drug trade.”
The United States Attorney’s Office acknowledges the work of ATF agents in Vermont and Massachusetts, the Saint Albans Police Department, and the South Boston Police Drug Control Unit in conducting this investigation. U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and ATF, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: https://www.justice.gov/psn.
Assistant United States Attorney Matthew Lasher will be leading the prosecution. Defendant John Guerrero is represented by attorney David Kidney, and defendant Darwin Medina is represented by attorney Michelle Anderson Barth.
Jennifer Dwyer Indicted for Embezzling over $2 Million from EmployerRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jennifer Dwyer, 48, of St. Johnsbury, Vermont, has been indicted on a charge that she embezzled more than $2 million over a ten-year period from her Lyndonville employer, Northeast Agriculture Sales, Inc. (“NEAG”). Dwyer was arraigned on the charge by U.S. Magistrate Judge John M. Conroy on January 24, 2019, where Dwyer pled not guilty and was ordered released pending trial. If convicted, Dwyer faces a maximum possible penalty of 20 years in prison.
According to the Indictment, NEAG, a family business, was established in 1987 and has locations in Lyndonville and Maine. Dwyer was NEAG’s bookkeeper from approximately 1998 to 2017. As bookkeeper, her responsibilities included customer billing, handling company accounts, and managing NEAG’s payroll system. The Indictment charges that between 2007 and 2017, Dwyer embezzled approximately $2,221,079.47 from her employer through unauthorized electronic transfers of funds from NEAG’s payroll account to her personal checking account. The government further alleges that Dwyer used the misappropriated funds to engage in on-line gambling and pay personal debts. The Indictment also contains a Forfeiture Notice notifying Dwyer that it intends to seek forfeiture of any property constituting, or derived from, the proceeds of the alleged fraudulent scheme.
Dwyer was arrested in Lyndonville by FBI Agents on January 17, 2019.
The United States Attorney’s Office noted that the Indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. Any sentence in this case will be advised by the federal Sentencing Guidelines.
The Federal Bureau of Investigation is conducting the investigation in this matter.
This prosecution is being handled by First Assistant U.S. Attorney Kevin J. Doyle. Jennifer Dwyer is represented by John B. St. Francis, Esq. of Burlington.
Electronic Health Records Developer to Pay Second Largest Recovery in the History of the District of Vermont -- $57.25 Million -- To Settle False Claims Act AllegationsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Greenway Health, LLC (Greenway), a Tampa, Florida-based developer of electronic health records (EHR) software, will pay $57.25 million to resolve False Claims Act allegations that Greenway caused its users to submit false claims to the government by misrepresenting the capabilities of its EHR product “Prime Suite” and providing unlawful remuneration to users to induce them to recommend Prime Suite.
“In the last two years my office has resolved two matters against leading EHR developers where we alleged significant fraudulent conduct. These are the two largest recoveries in the history of this District and represent the return of over two-hundred and twelve million dollars of fraudulently obtained taxpayer monies. These cases are important, not only to prevent theft of taxpayer dollars, but to ensure that the promise of health technology is realized in the form of improved patient safety and efficient healthcare information flow,” said Christina E. Nolan, United States Attorney for the District of Vermont. “This resolution demonstrates my office’s initiative and resolve to vigorously uncover and to doggedly pursue these complex cases. We will be unflagging in our efforts to preserve the accuracy and reliability of Americans’ health records and guard the public fisc against corporate greed. EHR companies should consider themselves on notice.”
“Electronic health records are the central hub from which many health care decisions flow,” said Assistant Attorney General Joseph H. Hunt of the Justice Department’s Civil Division, “and both patients and providers rely on these technologies to safely and accurately record and transmit vital health information.” “This resolution demonstrates our continued commitment to uncovering misconduct in the EHR space, and our determination to promote public health while holding accountable those who seek to abuse the government’s trust.”
The American Recovery and Reinvestment Act of 2009 established the Medicare and Medicaid EHR Incentive Program to encourage healthcare providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) made incentive payments available to eligible healthcare providers that adopt certified EHR technology and met certain requirements relating to their use of the technology. To obtain certification for their product, companies that develop and market EHR technology are required to demonstrate that their product(s) satisfies all applicable HHS-adopted certification criteria. Developers must first pass testing performed by an independent, accredited testing laboratory authorized by HHS, and then obtain and maintain certification by an independent, accredited certification body authorized by HHS.
In its complaint, the government contends that Greenway falsely obtained certification for its product Prime Suite when it concealed from its certifying entity that Prime Suite did not fully comply with the requirements for certification. Among other things, Greenway’s product did not fully incorporate the standardized clinical terminology necessary to ensure the reciprocal flow of information concerning patients and the accuracy of electronic prescriptions. Greenway accomplished its deception by preparing its test-run software to deceive the company hired to certify Prime Suite into believing that it could use the requisite clinical vocabulary.
Additionally, in order to be eligible to receive incentive payments, healthcare providers were required to meet certain targets for EHR-related activities. For example, at certain times providers were required to provide patients with clinical summaries following office visits. In its complaint, the government further alleges that Greenway was aware that an early version of Prime Suite did not correctly calculate the percentage of office visits for which its users distributed clinical summaries and thereby caused certain Prime Suite users to attest falsely that they were eligible for EHR incentive payments. Greenway refrained from rectifying this error in order to ensure that its users would continue to receive incentive payments. As a result, numerous users of this earlier version of Prime Suite falsely attested that they were eligible for EHR incentive payments when, in fact, they had not met all necessary use requirements.
Finally, the government alleged that Greenway violated the Anti-Kickback Statute by paying money and incentives to its client providers to recommend Prime Suite to prospective new customers.
“The False Claims Act settlement in this case will hopefully be a deterrent to those who selfishly circumvent our federal healthcare programs for their own benefit,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate companies stealing from federal taxpayers and the people who trust in the fairness of our federally funded healthcare programs.”
As part of the settlement, Greenway entered into a five-year Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (HHS-OIG) covering the company’s EHR software. This innovative five-year CIA requires, among other things, that Greenway retain an Independent Review Organization to assess Greenway’s software quality control and compliance systems and to review Greenway’s arrangements with health care providers to ensure compliance with the Anti-Kickback Statute. Greenway must provide prompt notice to its customers of any patient safety related issues and maintain on its customer portal a comprehensive list of such issues and any steps users should take to mitigate potential patient safety risks. The CIA also requires Greenway to allow Prime Suite customers to obtain the latest versions of Prime Suite at no additional charge, the opportunity to migrate their data from Prime Suite to another Greenway-developed software product also at no additional charge, and to give Prime Suite customers the option to have Greenway transfer their data to another EHR software vendor without penalties, service charges, or any other fees other than contractual amounts still owed in connection with goods or services already provided.
“Electronic Health Records can be key to an integrated health system providing improved care” said Derrick Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Putting patients at risk will result in intensive investigation and compliance obligations such as those in OIG’s comprehensive five-year Corporate Integrity Agreement.”
This matter was jointly handled by Assistant United States Attorneys Owen C.J. Foster and Nikolas P. Kerest, of the U.S. Attorney’s Office for the District of Vermont, Kelley Hauser and Edward Crooke of the Commercial Litigation Branch of the Civil Division, the Northern District of Georgia, the HHS Office of Inspector General, and multiple HHS agencies and components. Special Agents Gregory Peacock and Patrick Finno from the Federal Bureau of Investigation’s field office in Atlanta, Georgia provided significant investigative support to the investigation. Health Care Fraud Investigators George Thabault and Richard Lewis provided important investigative resources.
The case is captioned United States v. Greenway Health, LCC, 2:19-cv-20 (D. Vt.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Rockingham Man Sentenced to 54 Months Imprisonment for Conspiracy to Distribute Heroin and Fentanyl and Unlawful Possession of FirearmsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Randy Holmes, 28, of Rockingham, Vermont, was sentenced on January 18, 2019, to 54 months imprisonment by United States District Court Chief Judge Geoffrey Crawford, in U.S. District Court in Burlington, Vermont. Judge Crawford also sentenced Holmes to a three-year period of supervised release by the U.S. Probation Office, which begins when Holmes is released from prison. Finally, the Court ordered the forfeiture of $34,000 of drug proceeds seized from Holmes.
Holmes previously pled guilty to conspiracy to distribute heroin and fentanyl and possession of firearms by a felon. Holmes agreed to the 54-month sentence. Holmes was facing a maximum sentence of twenty years imprisonment for the drug conspiracy and ten years imprisonment for the firearms offense.
According to court records, Holmes admitted that from March 2017 to March 2018, he conspired with others to sell heroin and fentanyl in the Springfield, Vermont area. On March 22, 2018, the Vermont State Police Drug Task Force and the Springfield Police Department executed a search warrant at Holmes’ residence on Randall Hill Road in Rockingham, Vermont. Law enforcement seized approximately 400 bags containing heroin and fentanyl, ten firearms, over 100 marijuana plants, and $34,000 in cash drug proceeds. The average weight for a “bag” of heroin is approximately 24 milligrams.
The Vermont Drug Task Force investigation revealed that Holmes was selling bags of a heroin/fentanyl mixture that were stamped “Hardball” and “Renegade.” In early 2018, heroin/fentanyl bags stamped “Renegade” were prevalent in Windsor and Windham Counties and were linked to several overdoses, both fatal and non-fatal.
This matter was investigated by the Vermont State Police Drug Task Force, Troopers from the Westminster Barracks, the Springfield Police Department, and the Federal Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Joe Perella. Holmes is represented by David McColgin, Esq. of the Federal Defenders Office in Burlington.
Everett Simpson Charged with Federal KidnappingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that federal charges were filed today against Everett Simpson, 41, formerly of St. Albans, Vermont for his involvement with the kidnapping of a New Hampshire woman over the weekend.
According to the unsealed complaint filed in the Federal District Court for the District of Vermont, Simpson is alleged to have kidnapped a woman and her young child from New Hampshire and transferred her to Vermont. The victims were subsequently released. The complaint charged a violation of the federal kidnapping statute, 18 U.S.C. §1201(a)(1), which carries a penalty of up to life in prison.
Simpson was arrested in Pennsylvania on Sunday. An arrest warrant was issued in connection with the federal charges. After his federal arrest, the government will seek to have Simpson transferred to Vermont in custody. The contents of the complaint are allegations only. Simpson is presumed innocent until proven guilty. Simpson also faces charges in Delaware County, Pennsylvania and Windsor County, Vermont.
The United States Attorney’s Office for the District of Vermont thanks the Federal Bureau of Investigation in Vermont and New Hampshire, the Vermont State Police, the Hartford Police Department, the Manchester Police Department, and the Upper Darby, Pennsylvania Police Department for their efforts in investigating and apprehending Mr. Simpson. The case will be handled by AUSA Matthew Lasher.