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Friday 17 September 2021
Former Information Technology Executive Pleads Guilty to Insider Trading and Aiding in the Preparation of a False Tax ReturnRead the Press Release
A former information technology (IT) executive pleaded guilty today in the Western District of Pennsylvania to conspiracy to commit securities fraud and aiding in the preparation of a false tax return.
According to court documents and his admissions in court, Dayakar Mallu, 51, of Orlando, Florida, admitted that between 2017 and 2019 he conspired with others to trade in the securities of Mylan N.V., a NASDAQ-listed public company, in advance of corporate announcements concerning drug approvals, financial earnings, and a merger. Mallu, who was at the time Vice President of Global Operations Information Technology of Mylan, and an unnamed co-conspirator, who was a Mylan executive, conspired to provide Mallu with material, non-public information in advance of the company’s public announcements. Mallu then placed trades in the company’s securities and shared trading profits with his co-conspirator through cash transactions in India. Mallu’s trading resulted in more than $8 million in unrealized profits and losses avoided; he ultimately realized net profits and losses avoided of more than $4.2 million from his insider trading.
According to court documents and his admissions in court, Mallu also admitted that he sent false information to his tax preparer relating to Opel Systems LLC, a company that he owned and controlled. Specifically, Mallu falsely told the preparer that Opel had paid $1.3 million to a contractor when, in fact, Mallu had caused Opel to transfer those funds to his personal securities brokerage account. Mallu’s false statement resulted in the preparation of a false 2015 corporate return for Opel.
Mallu is scheduled to be sentenced on Jan. 24, 2022, and faces a maximum penalty of 25 years in prison for the conspiracy offense and three years in prison for the tax offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office (FBI-WFO); and Acting Special Agent in Charge Brian Thomas of the IRS-Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.
The FBI-WFO and IRS-CI are investigating the case.
Trial Attorney Matthew Reilly and Principal Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Trial Attorney Kenneth Vert of the Tax Division are prosecuting the case. The case was previously handled by Trial Attorney Amanda Vaughn and Assistant Chief L. Rush Atkinson, previously of the Fraud Section.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit https://www.justice.gov/criminal-vns/case/Dayakar-Mallu. If you believe you are a victim who has invested in Mylan, please visit https://www.justice.gov/criminal-vns/case/Dayakar-Mallu.
Former Bail Bondsman from Bolivar County Sentenced to 121 Months in Prison for Illegal Gun TraffickingRead the Press Release
Oxford, Miss. – A former bail bondsman from Boyle, Mississippi was sentenced to more than ten years in federal prison on Wednesday in the United States District Court in Greenville for knowingly selling firearms to a convicted felon.
Joe Crawford, 68, was convicted in June by a jury in Oxford, Mississippi for knowingly selling multiple firearms to a convicted felon on two separate occasions. At least one of the firearms sold by Crawford was stolen. On Wednesday, September 15, 2021, Chief District Court Judge Debra M. Brown sentenced Crawford to 121 months in prison for selling the firearms to a convicted felon.
According to court documents and testimony presented at trial, law enforcement began investigating an increase in firearms related violence in the Cleveland, Mississippi area in 2018. FBI and ATF began working with local investigators to identify the individuals responsible for shootings in the area and to identify individuals supplying the shooters with the guns. During the investigation, agents identified Joe Crawford as an individual who supplied firearms to felons. Upon identifying Crawford as a potential source of illegal firearms, law enforcement utilized a confidential informant (CI) to conduct controlled purchases of firearms from Crawford.
During the ensuing investigation, the CI purchased a total of ten firearms from Crawford on two occasions in transactions that were recorded on video and audio. On each of the two occasions that the CI purchased guns from Crawford, the CI repeatedly told Crawford that he was a convicted felon. Among the firearms sold by Crawford were multiple semi-automatic rifles that included 20 and 30 round magazines, a “bump stock” which is a device that can be attached to a firearm to cause it to fire in rapid succession, and several pistols.
After the controlled buys, agents executed a federal search warrant at Crawford’s home. During the search, 379 firearms were found and examined, and approximately fifty firearms were seized. Two of the firearms were stolen, and another two firearms had obliterated serial numbers.
At the time of the illegal gun sales, Crawford owned and operated a bail bonding company in Bolivar County, Mississippi. Evidence presented at trial established that Crawford often met his future firearm customers through the bail bondsman business.
“The illegal sale of firearms often puts guns directly in the hands of criminals and others who are prohibited by law from legally possessing firearms,” noted Acting U.S. Attorney Clay Joyner. “We will continue to work with our local, state and federal law enforcement partners to aggressively prosecute those individuals who choose to fuel violent crime by trafficking firearms.”
“As we continue to combat violent crime with our law enforcement partners, it is imperative that we identify and disrupt the actors who illegally supply firearms for use in the commission of violent offenses against the public,” said Jermicha Fomby, Special Agent in Charge of FBI Jackson.
The FBI Jackson Field Office’s Oxford Resident Agency investigated the case with assistance from the Cleveland Police Department and ATF. The investigation resulted in the prosecution and conviction of 18 defendants.
Assistant U.S. Attorneys Sam Stringfellow and Philip Levy prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), 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.
Federal charges filed against suspects in Gateway Arch grounds robberyRead the Press Release
ST. LOUIS – On September 16, 2021, federal charges were filed against Christopher Franklin and Kaniya Sloan. 19-year-old Christopher Franklin and 18-year-old Kaniya Sloan are accused of aiding and abetting a robbery on federal territorial jurisdiction and accessory after the fact of a robbery on federal territorial jurisdiction.
According to the charging documents, on September 13, 2021 at 7:34 p.m., Saint Louis Metropolitan Police Department (SLMPD) officers were dispatched for a report of an armed robbery. Officers interviewed a male and female victim, and learned that at approximately 7:30 p.m., the victims were on the grounds of the Gateway Arch. While on the Arch grounds, they were approached by a suspect who pointed a black handgun at them and demanded their property. The female victim complied with the demands of the suspect and handed over her purse. The male victim also complied with the demands of the suspect and handed over his iPhone and wallet.
SLMPD officers worked with the Federal Park Service to obtain and review surveillance footage from the area to identify the robber. Detectives followed up on several leads which resulted in the arrests of Sloan and Franklin along with a juvenile suspect on September 15, 2021, in the City of St. Louis.
Charges set forth are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Federal Park Service.
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Federal Court Permanently Enjoins Tax Return Preparers in LouisianaRead the Press Release
A federal court in the U.S. District Court for the Eastern District of Louisiana has permanently enjoined two New Orleans-area tax return preparers from preparing returns for others and from owning, operating, or franchising any tax return preparation business in the future.
The court entered judgment against Mario Alexander by default; defendant Leroi Jackson consented to entry of the injunction against him. The terms of the orders require that Alexander and Jackson, both individually and doing business as The Taxman Financial Services, send notices of the injunction to each person for whom they prepared federal tax returns and post the injunctions in places where they conduct business, including social media accounts and websites. The orders also provide that the United States may conduct post-judgment discovery to monitor compliance.
The civil complaint filed against Alexander and Jackson alleged that they prepared tax returns claiming fabricated business income and expenses, as well as claiming various false tax deductions and credits, including charitable contributions and education credits. It also alleged that defendants fabricated business income and/or expenses in order to increase claims for earned income tax credits. According to the complaint, Alexander and Jackson significantly underreported their customers’ tax liabilities, obtained fraudulent tax refunds, and charged exorbitant fees for their services, often without their customers’ knowledge.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Court Permanently Enjoins Tax Return Preparers in LouisianaRead the Press Release
A federal court in the U.S. District Court for the Eastern District of Louisiana has permanently enjoined two New Orleans-area tax return preparers from preparing returns for others and from owning, operating, or franchising any tax return preparation business in the future.
The court entered judgment against Mario Alexander by default; defendant Leroi Jackson consented to entry of the injunction against him. The terms of the orders require that Alexander and Jackson, both individually and doing business as The Taxman Financial Services, send notices of the injunction to each person for whom they prepared federal tax returns and post the injunctions in places where they conduct business, including social media accounts and websites. The orders also provide that the United States may conduct post-judgment discovery to monitor compliance.
The civil complaint filed against Alexander and Jackson alleged that they prepared tax returns claiming fabricated business income and expenses, as well as claiming various false tax deductions and credits, including charitable contributions and education credits. It also alleged that defendants fabricated business income and/or expenses in order to increase claims for earned income tax credits. According to the complaint, Alexander and Jackson significantly underreported their customers’ tax liabilities, obtained fraudulent tax refunds, and charged exorbitant fees for their services, often without their customers’ knowledge.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Court Enters Permanent Injunction Against Florida Compounding Pharmacy and its Owner to Prevent Distribution of Adulterated DrugsRead the Press Release
Tampa, FL – A federal judge today ordered a Weeki Wachee, Florida compounding pharmacy and its owner to stop distributing adulterated and unapproved new drugs in violation of the Food, Drug and Cosmetic Act (FDCA).
In a complaint filed in U.S. District Court for the Middle District of Florida on Sept. 9, the government alleged that Premier Pharmacy Labs Inc. and its owner, Vern A. Allen, failed to adequately address insanitary conditions and violations of current good manufacturing practice requirements at their drug compounding facility. For example, the complaint alleged that the defendants failed to conduct adequate investigations into discrepancies that may have had an impact on the quality and safety of their sterile drug products; failed to conduct sterility testing, endotoxin testing and visual checks for particles before releasing products; and failed to ensure that aseptic processing areas provided adequate conditions to prevent contamination of sterile products. The defendants agreed to a consent decree of permanent injunction that was filed with the complaint. The Department of Justice filed the case at the request of the U.S. Food and Drug Administration (FDA).
“Compounding pharmacies must follow applicable laws and regulations so that patients and doctors can rely on the safety of the drugs they produce,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will continue to work with FDA to enforce the FDCA’s critical public health provisions.”
“The quality and safety of compounded medications is vitally important to the residents of our district,” said Acting U.S. Attorney Karin Hoppmann of the Middle District of Florida. “This injunction will ensure that pharmacies comply with the requirements of law in manufacturing products regulated by the FDA.”
“Premier Pharmacy and its owner placed patients at significant risk. Outsourcing facilities must follow good manufacturing practice to ensure patients are not exposed to poor quality, potentially harmful drugs,” said Director Donald D. Ashley, J.D. of the Office of Compliance in the FDA’s Center for Drug Evaluation and Research. “We will continue to take appropriate enforcement actions to ensure that companies follow important safety requirements to avoid putting patients’ health at risk.”
Premier stopped manufacturing drugs following an FDA inspection in June 2019. Under the permanent injunction, Premier cannot resume operations unless and until it completes corrective actions to ensure that its drugs are manufactured in compliance with the FDCA. According to the complaint, Premier has stated that it does not intend to resume operations.
Premier previously received a warning letter after a 2014 FDA inspection found that the facility operated under insanitary conditions and violated current good manufacturing practice requirements. After a 2016 follow-up inspection and a related January 2018 regulatory meeting with FDA, the company recalled affected sterile injectable drugs in April 2018 due to a potential lack of sterility assurance. Premier recalled all unexpired drugs intended to be sterile in June 2019 following another FDA inspection.
The case was handled by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Randy Harwell from the U.S. Attorney’s Office for the Middle District of Florida and Associate Chief Counsel for Enforcement James Allred of the FDA’s Office of the Chief Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.
Federal Court Enters Permanent Injunction Against Florida Compounding Pharmacy and its Owner to Prevent Distribution of Adulterated DrugsRead the Press Release
A federal judge today ordered a Weeki Wachee, Florida compounding pharmacy and its owner to stop distributing adulterated and unapproved new drugs in violation of the Food, Drug and Cosmetic Act (FDCA).
In a complaint filed in U.S. District Court for the Middle District of Florida on Sept. 9, the government alleged that Premier Pharmacy Labs Inc. and its owner, Vern A. Allen, failed to adequately address insanitary conditions and violations of current good manufacturing practice requirements at their drug compounding facility. For example, the complaint alleged that the defendants failed to conduct adequate investigations into discrepancies that may have had an impact on the quality and safety of their sterile drug products; failed to conduct sterility testing, endotoxin testing and visual checks for particles before releasing products; and failed to ensure that aseptic processing areas provided adequate conditions to prevent contamination of sterile products. The defendants agreed to a consent decree of permanent injunction that was filed with the complaint. The Department of Justice filed the case at the request of the U.S. Food and Drug Administration (FDA).
“Compounding pharmacies must follow applicable laws and regulations so that patients and doctors can rely on the safety of the drugs they produce,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will continue to work with FDA to enforce the FDCA’s critical public health provisions.”
“The quality and safety of compounded medications is vitally important to the residents of our district,” said Acting U.S. Attorney Karin Hoppmann of the Middle District of Florida. “This injunction will ensure that pharmacies comply with the requirements of law in manufacturing products regulated by the FDA.”
“Premier Pharmacy and its owner placed patients at significant risk. Outsourcing facilities must follow good manufacturing practice to ensure patients are not exposed to poor quality, potentially harmful drugs,” said Director Donald D. Ashley, J.D. of the Office of Compliance in the FDA’s Center for Drug Evaluation and Research. “We will continue to take appropriate enforcement actions to ensure that companies follow important safety requirements to avoid putting patients’ health at risk.”
Premier stopped manufacturing drugs following an FDA inspection in June 2019. Under the permanent injunction, Premier cannot resume operations unless and until it completes corrective actions to ensure that its drugs are manufactured in compliance with the FDCA. According to the complaint, Premier has stated that it does not intend to resume operations.
Premier previously received a warning letter after a 2014 FDA inspection found that the facility operated under insanitary conditions and violated current good manufacturing practice requirements. After a 2016 follow-up inspection and a related January 2018 regulatory meeting with FDA, the company recalled affected sterile injectable drugs in April 2018 due to a potential lack of sterility assurance. Premier recalled all unexpired drugs intended to be sterile in June 2019 following another FDA inspection.
The case was handled by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Randy Harwell from the U.S. Attorney’s Office for the Middle District of Florida and Associate Chief Counsel for Enforcement James Allred of the FDA’s Office of the Chief Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Florida, visit its website at https://www.justice.gov/usao-mdfl.
Eastern District of Louisiana U.S. Attorney Duane A. Evans Reminds the Public to be Aware of Fraud when Disaster Strikes and Report it to the National Center for Disaster FraudRead the Press Release
NEW ORLEANS - The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, creating opportunities for criminal exploitation during this stressed time. The NCDF, a national coordinating agency within the Department of Justice, is designed to facilitate the detection, prevention, investigation, and prosecution of arising out of natural and man-made disasters. The NCDF operates a call center at Louisiana State University in Baton Rouge to process disaster fraud complaints, provide relevant information and advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, thus enabling efficient complaint referrals to the appropriate agency.
Locally, Hurricane Ida caused severe damage to communities from Southeast Louisiana, through the Tennessee River Valley, and ultimately reached those along the Eastern Seaboard. With the inevitable occurrence of natural and man-made disasters and the devastation to lives and property they bring, criminals are poised to strike helpless victims at their most vulnerable and desperate.
Examples of criminality reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials
- Identity theft
- Fraudulent submission of claims to insurance companies and the federal government
- Fraudulent activity related to solicitations for donations and charitable giving
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts
- Price gouging
- Contractor Fraud
- Debris removal fraud; and
- Theft, looting, and other violent crime.
Members of the public must be wary and verify the legitimacy of anyone claiming to work on behalf of disaster victims. Exercise caution before providing personal identifying or financial information to anyone, in the wake of a disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods.
If you suspect fraud, waste, abuse, or mismanagement involving disaster relief operations, or believe you have been the victim of fraud from any source soliciting relief funds on behalf of disaster victims, please contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. Complaints may also be filed online at http://www.justice.gov/DisasterComplaintForm. Learn more about the NCDF at www.justice.gov/disaster-fraud. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Dudley Man Pleads Guilty to Theft and Misuse of COVID-19 Pandemic AssistanceRead the Press Release
BOSTON – A Dudley man pleaded guilty today in connection with his involvement in a scheme to fraudulently obtain and misuse COVID-19-related unemployment assistance.
Norman Higgs, 34, pleaded guilty to one count of wire fraud conspiracy. U.S. District Court Judge Patti B. Saris scheduled sentencing for Dec. 17, 2021. Higgs was charged in May 2021.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors or gig economy workers).
From April to June 2020, Higgs conspired with others to submit fraudulent PUA claims using stolen identifying information of other individuals. The PUA payments were directed into bank accounts controlled by Higgs and others who used the funds for their personal benefit, including to pay off credit card debt and to fund digital currency and online retail brokerage accounts. In total, Higgs and others obtained over $450,000 in proceeds from over 85 fraudulent PUA claims using stolen identities.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Nikitas Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud made the announcement. The Massachusetts Department of Unemployment Assistance provided assistance in the investigation. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Dubuque Man Who Sold Opioids that Caused Three Deaths Sentenced to 35 Years in Federal PrisonRead the Press Release
A man who sold three deadly doses of opioids in April and May of 2019 was sentenced today to 35 years in federal prison.
Travis Gordon Jones, age 40, from Dubuque, Iowa, received the prison term after a July 29, 2020 guilty plea to one count of conspiring to distribute controlled substances resulting in death.
At the plea hearing, Jones admitted that he conspired with others to distribute the opioids in Dubuque in April and May 2019. Jones also admitted that he personally sold mixtures of heroin, fentanyl, and a synthetic opioid called valeryl fentanyl that were used by three individuals who then died of overdoses. Court records reflect that the first victim died on April 24, 2019. A heroin customer of Jones’s met with Jones at a bar in Dubuque, after which Jones sold the customer approximately 1.25 grams of a substance that contained heroin, fentanyl, and valeryl fentanyl. The customer then provided the drugs to the first victim, who took them home, used some of them, and was found dead a few hours later.
The second victim died on May 20, 2019. Court records reflect that Julius Irvin was a regular customer of Jones’s, and that he regularly purchased heroin from Jones for himself and others. On May 19, 2019, Jones sold Irvin some heroin laced with fentanyl and valeryl fentanyl, which Irvin was going to provide to one of his customers. The customer took some of the substance to a local women’s shelter in Dubuque, where she had been staying. She used the substance, overdosed, and was found dead by shelter staff the next morning.
The third victim died on May 27, 2019. Evidence at prior hearings showed that Jackie Birch drove her boyfriend, Mateusz Syryjczyk, and the third victim to Jones’s home in Dubuque during the early morning of May 27, 2019. Birch and the third victim went into the home, where they purchased what was purported to be heroin from Jones. The three then drove to a hotel in Dubuque, where they all used the purported heroin. The third victim began to overdose in the room. Birch and Syryjczyk did not immediately call 911, but, over the course of multiple hours, Birch would occasionally perform CPR on the third victim to restore some breathing function, though the victim never regained consciousness. Eventually, Birch and Syryjczyk decided they needed to call 911, and Syryjczyk took the remaining drug paraphernalia from the room to prevent law enforcement from finding it. The third victim never recovered.
Birch was previously sentenced to 48 months’ imprisonment after her guilty plea to aiding and abetting the distribution of a controlled substance. Syryjczyk was sentenced to 21 months’ imprisonment after his guilty plea to misprision of a felony. Irvin was sentenced to 183 months’ imprisonment after his guilty plea to distribution of a controlled substance resulting in death.
Jones was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Jones was sentenced to 420 months’ imprisonment. He was ordered to make $21,044.60 in restitution to the victims. He must also serve a six‑year term of supervised release after the prison term. There is no parole in the federal system.
Jones is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Dubuque Drug Task Force and Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1041-CJW-MAR.
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Driver for three arrested in illegal Canada border crossing sentencedRead the Press Release
MISSOULA -- A Washington, D.C., man who admitted to picking up three individuals who had crossed illegally into Montana from Canada and to leading law enforcement on a 76-mile car chase that ended near Whitefish was sentenced today, Acting U.S. Attorney Leif M. Johnson said.
Rastesfaye Alpha Neil, 40, pleaded guilty on April 21 to transportation of illegal aliens.
U.S. District Judge Donald W. Molloy presided.
Neil faced a possible sentence of five years in prison, a $250,00 fine and three years of supervised release. The government requested a sentence at the high end of the guideline range of 18 months to 24 months. The court sentenced Neil to time served of 238 days in custody and to three years of supervised release.
The government alleged in court records that Neil knowingly transported Christopher White, a Jamaica citizen; Naseem Ali Mohammed, a Somalia national and Canadian legal permanent resident; and Afrah Ahmed Abdi, a United States legal permanent resident and Somalia national; to help them remain illegally in the United States. All three were wanted by various Canadian law enforcement agencies.
The government alleged that on Jan. 23, the Spokane Sector Border Patrol responded to the West Kootenai area near Eureka for a report that three persons with backpacks and wearing dark clothing were entering the United States illegally. Agents attempted a traffic stop of a southbound Nissan Sentra. While the Nissan initially yielded, it ultimately sped away as agents approached on foot. The Nissan led law enforcement agencies on a 76-mile chase in which speeds reached 120 mph to 130 mph. The pursuit ended about one mile north of Whitefish when law enforcement successfully spiked the Nissan’s tires. Law enforcement identified Neil as the driver and White, Mohammed and Abdi as passengers who had illegally entered the United States. One of the illegal border crossers had been in contact with Neil, rental car companies and travel agencies. Neil had flown to Kalispell on Jan. 22.
White was sentenced to two years in prison for conviction of illegal reentry of a deported or removed alien. Abdi was extradited to Canada, while Mohammed is a fugitive.
The Border Patrol, Flathead County Sheriff’s Office, Lincoln County Sheriff’s Office, Eureka Police Department, Whitefish Police Department and Montana Highway Patrol investigated the case.
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Doctor Licensed in the District of Columbia and Virginia Charged with Unlawful Distribution of Controlled SubstancesRead the Press Release
WASHINGTON – A criminal complaint was unsealed this week in the District of Columbia charging a doctor with unlawful distribution of a controlled substance outside the scope of his professional practice. As detailed in court documents, the case relates to defendant Dr. Robert M. Cao prescribing various narcotic pain medications in the months and days leading up to a man’s May 31, 2021 overdose death.
The announcement was made by Acting U.S. Attorney Channing D. Phillips and Special Agent in Charge of the FBI Washington Field Office Criminal Division Wayne A. Jacobs.
Cao, 38, of Falls Church, Va., was arrested on Sept. 14 and made his initial appearance the following day before Magistrate Judge Zia M. Faruqui in the U.S. District Court for the District of Columbia. His next hearing is scheduled for Oct. 28, 2021. The charge carries a statutory maximum of 20 years in prison and potential financial penalties.
Cao’s arrest is part of a nationwide initiative targeting health care fraud. The Department of Justice announced today that criminal charges have been filed against 138 defendants, including 42 doctors, nurses, and other licensed medical professionals, in 31 federal districts across the United States for their alleged participation in various healthcare fraud schemes that resulted in approximately $1.4 billion in alleged losses.
Nationwide, the charges target approximately $1.1 billion in fraud committed using telemedicine (the use of telecommunications technology to provide health care services remotely), $29 million in COVID-19 health care fraud, $133 million connected to substance abuse treatment facilities, or “sober homes,” and $160 million connected to other health care fraud and illegal opioid distribution schemes across the country.
“This nationwide enforcement action demonstrates that the Criminal Division is at the forefront of the fight against health care fraud and opioid abuse by prosecuting those who have exploited health care benefit programs and their patients for personal gain,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The charges announced today send a clear deterrent message and should leave no doubt about the department’s ongoing commitment to ensuring the safety of patients and the integrity of health care benefit programs, even amid a continued pandemic.”
“Health care fraud and opioid abuse have imposed enormous economic consequences and caused thousands of tragic deaths nationwide,” said Acting U.S. Attorney Phillips. “As today’s announcement shows, we are committed to using the full extent of the law to protect the public from those who illegally sell and prescribe opioids and other dangerous drugs as well as those who carry out schemes to defraud the public health system of taxpayer dollars.”
“Physicians are entrusted to care for our citizens and prescribe necessary medications in legitimate doctor-patient relationships,” said Special Agent in Charge Jacobs of the FBI Washington Field Office's Criminal Division. “The FBI and our partners will continue to investigate and stop those medical professionals who provide illegal prescriptions and distribute controlled substance medications that fuel the opioid epidemic in our country. Not only are these actions criminal, but as we have seen all too often – they have deadly consequences.”
According to court documents, Cao is a physician who is licensed to practice medicine in the District of Columbia and Virginia. Between in or around at least Jan. 9, 2021, and continuing through in or around May 30, 2021, the documents allege, Cao knowingly and intentionally wrote a man identified in court documents as “V.C.” at least five prescriptions for oxycodone and hydrocodone, Schedule II controlled substances with a high potential for abuse.
On May 31, 2021, first responders were dispatched to a Fairfax, Va. residence in response to a 911 call for assistance regarding “V.C.,” after his girlfriend found him cold and non-responsive. He was pronounced deceased under suspicious circumstances.
A subsequent autopsy report documented the cause of death as acute combined oxycodone and ethanol poisoning. On the nightstand next to where “V.C.” was found were prescription bottles, including one containing Percocet (a brand name of the narcotic analgesic oxycodone/acetaminophen) pills filled on May 23, 2021. Cao was the prescribing doctor listed on the bottle.
Court filings also detail text message exchanges between Cao and “V.C.”, including discussions about Cao prescribing narcotic pain medications to “V.C.”; “V.C.” agreeing to give Cao a kickback on some of those pills; and meetings between the two, including a meeting in a parking lot on the night before the man’s death.
The charges in criminal complaints are merely allegations and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara of the U.S. Attorney’s Office for the District of Columbia. The investigation into this matter was conducted by the FBI’s Washington Field Office in partnership with the Fairfax County, Va. Police Department.
Nationally, the cases announced today involving the illegal prescription and/or distribution of opioids involve a total of 19 defendants, including several charges against medical professionals and others who prescribed over 12 million doses of opioids and other prescription narcotics, while submitting over $14 million in false billings.
Prior to the charges announced as part of today’s nationwide enforcement action and since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,600 defendants who have collectively billed the Medicare program for approximately $23 billion. In addition to the criminal actions announced today, CMS, working in conjunction with HHS-OIG, announced 28 administrative actions to decrease the presence of fraudulent providers.
The national announcement can be found at this link:
https://www.justice.gov/opa/pr/national-health-care-fraud-enforcement-action-results-charges-involving-over-14-billion
To view Assistant Attorney General Polite’s remarks:
https://www.justice.gov/opa/video/assistant-attorney-general-kenneth-polite-jr-delivers-remarks-health-care-enforcement.
District Man Pleads Guilty to Sexually Abusing Two Women in Separate Incidents in Northwest WashingtonRead the Press Release
WASHINGTON – Michael Hilliard, 62, formerly of Washington, D.C, pleaded guilty today to sexually abusing two women, both of whom were strangers to him, announced Acting U.S. Attorney Channing D. Phillips.
Hilliard pleaded guilty to two counts of misdemeanor sex abuse. He faces a statutory maximum of 360 days of incarceration – 180 days for each conviction. Additionally, as part of the plea agreement, he agreed to register as a sex offender for the next 10 years. Hilliard will be sentenced on Nov. 17, 2021, by the Honorable Jonathan H. Pittman in the Superior Court of the District of Columbia.
According to the government’s evidence, in the first offense, on May 21, 2021, at about 11:25 a.m., Hilliard approached the victim as she walked toward the PNC Bank at the corner of 14th and P Streets NW. He made verbal sexual advances toward the victim, who ignored him as he proceeded to follow her. The victim later left the bank and entered her vehicle. As she waited at the traffic light on the corner of 14th and P Streets, Hilliard approached the driver’s side of her vehicle, reached into the open window, and grabbed her breast.
In the second offense, on July 10, 2021, at about 2:05 p.m., Hilliard approached another victim during her shift at a convenience store located near Thomas Circle NW and told her that he was hungry. As the victim went to prepare a sandwich for him, he reached behind her and grabbed her buttocks. When the victim turned around, Hilliard reached between her legs and grabbed her vaginal area.
Following these guilty pleas, Hilliard now has 24 misdemeanor sexual abuse convictions since 1999. Hilliard was arrested in these cases on July 12, 2021 and has since been detained.
In announcing the pleas, Acting U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Veronica Vaughan and Lezlie Richardson of the Victim/Witness Assistance Unit. Finally, he commended the work of Assistant U.S. Attorney Sandra R. Braschi, who prosecuted both cases.
Des Moines Kum & Go Shooter Sentenced to Ten Years in Federal PrisonRead the Press Release
DES MOINES –On September 10, 2021, United States District Court Judge Rebecca Goodgame Ebinger sentenced Ceeron Tearrence Williams, age 29, formerly of Des Moines, to 120 months in prison for felon in possession of ammunition, announced Acting United States Attorney Richard D. Westphal. Williams was ordered to serve three years of supervised release to follow his prison term. Ten years in prison is the maximum term allowed by law for this conviction.
According to court documents and evidence presented at the three-day federal trial held in May, shortly after 4 a.m. on January 21, 2018, Williams fired nine gunshots from a pistol while he and a group of individuals were standing near the storefront of a Des Moines Kum & Go store. Williams struck his intended victim with seven of his gunshots, including in the abdomen and hips. Williams fled the shooting scene with his pistol. The victim survived.
Williams was indicted in federal court in February 2021 for possessing ammunition on the date of the shooting, having been previously convicted of a felony. The federal indictment followed a prosecution by the Polk County Attorney’s Office where Williams was charged with Attempted Murder, Intimidation with a Dangerous Weapon with Intent, and related state charges. In September 2020, a Polk County jury acquitted Williams of Attempted Murder but convicted him of several less severe charges.
Williams has an undischarged term to serve on the state convictions. The federal sentence was ordered to run consecutive—that is one after the other—to Williams’ undischarged state term of prison. There is no parole in the federal criminal justice system.
“We applaud the work of our local partners at the Polk Count Attorney’s Office in pursuing justice for the victim in this case. Our office will continue to invest federal resources when necessary to ensure violent criminals face sufficient punishment for their crimes and to protect the community. Persons who commit brazen gun violence in our community should know that the U.S. Attorney’s Office will pursue them,” said Acting United States Attorney Westphal.
The investigation was conducted by the Des Moines Police Department, assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI Safe Streets Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of Project Safe Neighborhood, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Convicted Murderer Jeffrey MacDonald’s Appeal Dismissed and Consecutive Life Sentences Remain IntactRead the Press Release
RALEIGH, N.C. – The United States Court of Appeals for the Fourth Circuit issued an order on Thursday, September 16 dismissing an appeal filed by convicted murderer Jeffrey MacDonald. As a result, MacDonald will continue to serve out the three consecutive life sentences he received for murdering his wife and two young daughters at Fort Bragg, North Carolina in 1970.
MacDonald has filed numerous unsuccessful challenges to his murder convictions, which have been repeatedly rejected by federal courts at every level. MacDonald’s latest appeal stemmed from a motion he filed in November 2020 requesting that the Court grant him “compassionate release” and reduce his life sentences. The United States vigorously opposed the motion in briefing and at a hearing held on March 11, 2021, arguing that MacDonald was not eligible for compassionate release and should not be let out of prison early.
On April 9, 2021, United States District Court Judge Terrence W. Boyle denied MacDonald’s motion. MacDonald initially appealed that decision. The Fourth Circuit Court of Appeals has now dismissed the appeal upon MacDonald’s request and with the United States’ consent. As a result, Judge Boyle’s order will stand, and MacDonald will remain in prison.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after the Court of Appeals issued its order dismissing the appeal. “Jeffrey MacDonald did the unthinkable more than fifty years ago when he murdered his pregnant wife and two daughters in brutal fashion,” said Acting U.S. Attorney Acker. “MacDonald’s latest effort to get out of prison has failed just like his previous efforts failed. But today, as always, our minds turn to Colette, Kimberly, and little Kristen, and to the family and friends whose lives were devastated by their untimely deaths. Our office has sought justice on their behalf for decades. That work continues today. And that work will continue every day until MacDonald’s efforts to escape justice cease for good.”
The United States is represented in this matter by Assistant U.S. Attorneys John E. Harris and Bryan M. Stephany.
Columbus man charged with threatening local reproductive health services facilityRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged a Columbus man with threatening a reproductive health services facility.
Carlos Manuel Rodriguez Brime, 25, was arrested yesterday. He is scheduled for arraignment on Sept. 23. Brime allegedly made two separate telephone threats on April 11 to a local reproductive health care clinic in which he made a death threat and a bomb threat.
Specifically, Brime is charged with violating the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to threaten the use of force to intimidate anyone receiving or providing reproductive health services. Brime is also charged with making threatening statements through interstate communications and with making a bomb threat.
If convicted of the offenses, Brime faces up to 10 years in prison, three years of supervised release and a fine of up to $250,000.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Kristen Clarke, Assistant Attorney General for the Civil Rights Division of the Department of Justice; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Columbus Police Chief Elaine Bryant announced the charges. Assistant United States Attorney Emily Czerniejewski and Civil Rights Division Trial Attorney Sanjay Patel are representing the United States in this case.
An indictment is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Columbia Man Sentenced to 18 months in Federal Prison for Gun ChargeRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced that Willie Franklin Evans, 59, of Columbia, was sentenced to 18 months in federal prison, after earlier pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented in court showed that on the evening of August 17, 2020, an officer with the Columbia Police Department recovered a loaded stolen firearm in Evans’ waistband after encountering him in a stopped vehicle on Assembly Street. Evans, who had been released from a three-year term of federal supervision nine days earlier, admitted that he had obtained the firearm a few months or so before.
Evans is a felon and prohibited from possessing firearms and ammunition under federal law based upon prior state and federal convictions. After escaping from juvenile custody in 1979, Evans was convicted in state court of armed robbery, assault and battery with intent to kill for shooting a Richland County Sheriff’s Department deputy five times, carrying a concealed weapon, and grand larceny of a vehicle. He was sentenced to a total of 25 years. After being released in 1993, Evans was convicted in federal court in 1996 of two separate counts of using and carrying a firearm during and in relation to a crime of violence stemming from the armed robbery of two businesses in 1995. He was sentenced to 300 months imprisonment followed by 3 years of supervised release. Evans was released to federal supervision in 2017 and completed it in early August 2020, nine days before the instant offense.
Senior United States District Judge Joseph F. Anderson, Jr. sentenced Evans to the guidelines sentence of 18 months imprisonment on the firearm charge with 3 years of supervision to follow. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Columbia Police Department and prosecuted by Assistant United States Attorney Stacey D. Haynes.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), 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.
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Colonie Man Charged with Human Trafficking OffensesRead the Press Release
ALBANY, NEW YORK – A grand jury yesterday returned a superseding indictment charging Christopher Thomas, age 38, of Colonie, New York, with crimes related to the sex trafficking of children and adults.
The announcement was made by Acting United States Attorney Antoinette T. Bacon, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Kevin Bruen.
The indictment charges Thomas with conspiracy to commit sex trafficking of children, sex trafficking of a child, transportation of minors with intent to engage in criminal sexual activity, conspiracy to transport an individual to engage in prostitution, and coercion and enticement.
Thomas is alleged to have recruited girls and women to engage in commercial sex at his direction and then provide him with the proceeds. Thomas is alleged to have used a website to advertise the girls and women for commercial sex in the Capital Region, Massachusetts, and elsewhere.
The charges in the superseding indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Thomas has been in custody since his arrest on May 12, 2020.
If convicted of all offenses, Thomas faces at least 10 years and up to life in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI Child Exploitation and Human Trafficking Task Force, and the New York State Police Troop G Bureau of Criminal Investigation and Internet Crimes Against Children Task Force, with assistance from the Colonie Police Department, Vermont State Police, Burlington, Vermont Police Department, Albany Police Department, Albany County Sheriff’s Office, Town of Bethlehem Police Department, Capital Region Crime Analysis Center, and the New York State Intelligence Center. The case is being prosecuted by Assistant U.S. Attorneys Shira Hoffman and Katherine Kopita.
California Man Pleads Guilty to 113-Count Federal Hate Crime Indictment for 2019 Poway Synagogue Shooting and Mosque ArsonRead the Press Release
John T. Earnest, 22, pleaded guilty in federal court to a 113-count indictment for the religiously- and racially-motivated murder of one person and the attempted murders of 53 other persons.
According to court documents, after several weeks of planning, on the morning of April 27, 2019, Earnest drove to the Chabad of Poway synagogue, where members of the congregation were gathered for religious worship. Earnest entered the building armed with a Smith and Wesson M&P 15 assault rifle that was fully loaded with a 10-round magazine. He wore a chest rig which contained five additional magazines, each loaded with 10 rounds of ammunition. Earnest opened fire, killing one person and injuring three other members of the congregation, including a then eight-year-old child. After Earnest emptied his initial magazine, several congregants rushed at Earnest. Earnest fled in his car and, shortly after, called 911 and confessed that he had “just shot up a synagogue.” Earnest was apprehended by local law enforcement who found the rifle and additional ammunition in his car.
“The defendant entered a synagogue with the intent to kill all those inside because of his hatred for Jewish people, and days earlier used fire in an attempt to destroy another sacred house of worship because of his hatred for Muslims,” said Deputy Attorney General Lisa Monaco. “There is no place in American society for this type of hate-fueled violence. The Department of Justice will enforce hate crimes and anti-discrimination laws to the fullest extent of the law and will hold perpetrators accountable for these crimes, which inflict harm not only on individual victims, but on entire communities.”
“This nation stands with Lori Gilbert Kaye’s family and the survivors of these unspeakable acts of terror,” said Acting U.S. Attorney Randy S. Grossman for the Southern District of California. “We emphatically reject the defendant’s hate, racism and prejudice, and we hope the conclusion of this case brings some measure of comfort to all those affected by his heinous crimes.”
“We continue to keep Lori Gilbert Kaye, the loved ones she left behind, and all those affected by the senseless acts of terror committed in 2019 in our thoughts,” said FBI Director Christopher A. Wray. “Violence motivated by racism and hate is reprehensible and must be vigorously pursued. The FBI is committed to ensuring that those responsible for hate crimes and all forms of violent extremism are brought to justice.”
“The tragic shooting at Poway Synagogue was shocking for our community,” said Special Agent in Charge Monique Villegas of the ATF Los Angeles Field Division. “Our condolences go out to the victims and their families who were affected by this horrific act. ATF remains committed to bringing individuals responsible for such acts to justice to ensure everyone can worship safely.”
Earnest also admitted that on March 24, 2019, he attempted to set fire to the Dar-ul-Arqam mosque in Escondido, California, because of his hatred of Muslims and the religious character of the building. Seven missionaries were asleep in the mosque, but no one was injured.
The case is being prosecuted by Assistant U.S. Attorneys Shane Harrigan and Peter Ko, along with Deputy Chief Rose Gibson of the Civil Rights Division. The FBI, ATF and San Diego Sheriff’s Office conducted the investigation.
According to the terms of the plea agreement, the United States and Earnest will jointly recommend a sentence of life in prison followed by 30 years of imprisonment. Sentencing has been scheduled for Dec. 28.
Caldwell Man Sentenced to over 24 Years in Prison for Producing Child PornographyRead the Press Release
BOISE – Conrad James Hull, 30, was sentenced to 292 months in federal prison for sexual exploitation of a child, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Senior U.S. District Judge B. Lynn Winmill also ordered Hull to serve 25 years of supervised release following his prison sentence. As a result of his conviction, Hull will be required to register as a sex offender. Hull pleaded guilty to the charges on June 28, 2021.
According to court records, in October 2020, the Idaho Internet Crimes Against Children (ICAC) Task Force received a Cybertip from Kik Messenger. According to the Cybertip, child pornography had been uploaded to a Kik account that was later identified as belonging to Hull.
A state magistrate judge issued a search warrant for Hull’s residence in Caldwell. Law enforcement executed the search warrant and seized a cellphone belonging to Hull. A forensic examination of the cellphone revealed several files of child pornography, including files depicting a 5-year-old child and a 7-year-old child that Hull admitted producing. Hull told law enforcement that he used his cellphone to take explicit images of the two children so that he would have more files to trade on Kik. Hull admitted to distributing the images of the two children to obtain additional files of child pornography.
Acting U.S. Attorney Gonzalez commended the cooperative efforts of the ICAC Task Force, Caldwell Police Department, and the Canyon County Prosecutor’s Office, which led to charges.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better 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.
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Bridgeport Teen Pleads Guilty to Racketeering Charge, Admits 2 Gang-Related ShootingsRead the Press Release
JACQUON BENEJAN, also known as “Blick,” 19, of Bridgeport, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to a racketeering offense stemming from his participation in two gang-related shootings.
Today’s announcement was made by Leonard C Boyle, Acting United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Acting Police Chief Rebeca Garcia; James Ferguson, Special Agent in Charge, ATF Boston Field Division; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Benejan has been a member of the “Greene Homes Boyz” (“GHB/Hotz”), a gang based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, whose members and associates distributed heroin, crack cocaine, marijuana and Percocet pills; committed numerous acts of violence against rival gang members and other individuals, and celebrated their criminal conduct on social media websites such as Facebook and YouTube. GHB/Hotz members and associates also committed acts of intimidation and made threats to deter potential witnesses to their crimes and to protect gang members and associates from detection and prosecution by law enforcement authorities. Since approximately 2017, GHB/Hotz members have been aligned with members of the “Original North End” (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport, against rival groups in Bridgeport, including the East End, East Side and PT Barnum gangs, as well as 150, which is a geographic gang based on the West Side of Bridgeport.
In pleading guilty, Benejan admitted that on February 7, 2018, he and an associate shot and attempted to kill “MJ,” a member or associate of the 150 gang; and on October 4, 2018, he and an associate shot and attempted to kill “MS,” a member or associate of the East End gang, inside the Greene Homes housing complex.
Benejan also appears in YouTube videos and in social media posts, where firearms are present, promoting the gang,
Law enforcement also made controlled purchases of narcotics from Benejan. On March 13, 2020, a court-authorized search of Benejan’s residence revealed two firearms and crack cocaine.
Benejan pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity, an offense that carries a maximum term of imprisonment of 20 years. Judge Arterton scheduled sentencing for December 10, 2021, at which time Benejan faces a maximum term of imprisonment of 20 years.
Benejan has been detained since February 19, 2021.
This ongoing investigation is being conducted by ATF, the FBI’s Safe Streets and Violent Crimes Task Forces, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Naugatuck Police Department. The case is being prosecuted by Assistant U.S. Attorneys, Jocelyn C. Kaoutzanis, Rahul Kale, Peter D. Markle, Karen L. Peck and Stephanie T. Levick.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
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.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Boise Man Sentenced to 25 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
BOISE – Adrian Ray Dealy, 43, was sentenced to 300 months in federal prison for sexual exploitation of a child, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Senior U.S. District Judge B. Lynn Winmill also ordered Dealy to serve ten years of supervised release following his prison sentence. Dealy pleaded guilty to the charges on May 11, 2021.
According to court records, Dealy has a previous federal conviction for possession of sexually explicit images of minors. When Dealy was released from federal prison in 2013, he began serving a term of supervised release under the supervision of the U.S. Probation Office. As part of his supervision terms, Dealy’s cellphone was equipped with software that monitored his cellphone activity.
In February 2020, Dealy’s probation officer learned he was using his cellphone to communicate with minors using a livestream video application. The probation officer referred the investigation to a special agent with Homeland Security Investigations (HSI). In reviewing information that had been created by the monitoring software on Dealy’s cellphone, the HSI special agent located evidence that Dealy had communicated, or attempted to communicate, with seven minor children and asked them to send him explicit images of themselves or undress for the camera.
Judge Winmill also ordered Dealy to forfeit the cellphone that was used to commit the offense. As a result of the conviction, Dealy will be required to register as a sex offender.
Acting U.S. Attorney Gonzalez commended the cooperative efforts of Homeland Security Investigations and the U.S. Probation Office, which led to charges.
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 U.S. Attorneys’ Offices and CEOS, 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 to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Auburn Man Sentenced for Tax FraudRead the Press Release
BOSTON – An Auburn man was sentenced today in federal court in Worcester for filing a false personal tax return.
Stephen Hubley, 64, was sentenced by U.S. District Court Judge Timothy S. Hillman to one year and one day in prison. Hubley was also ordered to pay restitution of $630,318. On May 27, 2021, Hubley pleaded guilty to one count of filing a false and fraudulent tax return.
Hubley admitted that he failed to report several hundreds of thousands of dollars in income on his 2019 personal tax return. Specifically, between 2016 and 2019, Hubley failed to report approximately $2.3 million in income from his personal tax returns, resulting in underpayment of taxes by $630,318. Hubley did so by conducting transactions that evaded the filing of currency transaction reports with the government. Currency transaction reports are required of financial institutions for cash transactions of greater than $10,000.
Acting United States Attorney Nathaniel R. Mendell and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Criminal Division prosecuted the case.
Arkansas Man Sentenced to 9 Years in Federal Prison for Drugs and Firearm SalesRead the Press Release
FAYETTEVILLE – A Marvell man was sentenced today to 108 months in prison followed by three years of supervised release on one count of Distribution of a Controlled Substance Cocaine and one count of Use and Carry of a Firearm During and in Relation to a Drug Trafficking Offense. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, On February 26, 2020, detectives with the Fourth Judicial District Drug Task Force (DTF) conducted a controlled purchase of cocaine, as well as a firearm, from Katestrant Barefield, 33, in Washington County Arkansas.
Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Fourth Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Alexandria Man Sentenced to Federal Prison for Illegal Possession of Marijuana and a FirearmRead the Press Release
ALEXANDRIA, La. - Acting United States Attorney Alexander C. Van Hook announced that Terrance Ray Goff, 29, of Alexandria, Louisiana, was sentenced today by United States District Judge Dee D. Drell to 66 months in prison, followed by 3 years of supervised release, for possession with intent to distribute marijuana and possession of a firearm in furtherance of drug trafficking.
According to information introduced in court, on August 22, 2019, a Louisiana State Police Trooper conducted a traffic stop of a vehicle driven by Goff. Troopers were given consent to search the vehicle and found a backpack on the front passenger seat which contained a loaded pistol, 116 grams of marijuana and a digital scale. Goff had previously been convicted for felon in possession of a firearm in Rapides Parish and was on parole for that offense at the time he was arrested on these charges.
Goff has a lengthy criminal history including two felony convictions for simple burglary in 2011, as well as felony convictions in 2015 and 2016 for felon in possession of a firearm and introduction of electronic device into a correctional center.
The ATF and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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12 Tribes Selected for Participation in Program Enhancing Tribal Access to National Crime Information DatabasesRead the Press Release
Grand Traverse Band Selected to Join Program to Improve the Exchange of Critical Data for Public Safety
GRAND RAPIDS, MICHIGAN – The Department of Justice has selected an additional 12 federally recognized tribes to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides tribal governments with means to access, enter, and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division and the states.
“Timely access to federal criminal information can help protect domestic violence victims, place foster children in safe conditions, solve crimes, and apprehend fugitives on tribal land, among other important uses,” said Deputy Attorney General Lisa O. Monaco. “Increasing tribal access to criminal databases is a priority of the Justice Department and this Administration, and essential to many tribal government efforts to strengthen public safety in their communities.”
“Effective information sharing is a critical component to keeping tribal communities safe,” stated U.S. Attorney Andrew Byerly Birge. “We are delighted that our law enforcement partners at the Grand Traverse Band will now have access to this important tool.”
The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI Criminal Justice Information Services (CJIS) systems. With these additional tribes, there are now 108 federally recognized Tribes participating in TAP.
TAP has been an important resource for the department’s Missing and Murdered Indigenous Persons Initiative and the Presidential Task Force on Missing and Murdered American Indians and Alaska Natives known as Operation Lady Justice. The Department of Justice began TAP in 2015 in response to concerns raised by tribal leaders about the need to have direct access to federal systems.
Using TAP, tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
The following tribes have been newly selected for participation in TAP:
1. Confederated Tribes of the Warm Springs Reservation
2. Cow Creek Band of Umpqua
3. Fort Belknap Indian Community
4. Grand Traverse Band of Ottawa and Chippewa
5. Havasupai Tribe
6. Lower Brule Sioux Tribe
7. Menominee Tribe
8. Mille Lacs Band of Ojibwe
9. Muckleshoot Tribe
10. Passamaquoddy Tribe
11. Shingle Springs Band of Miwok
12. United Keetoowah Band of Cherokee
TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW).
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.
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Thursday 16 September 2021
Wood County Man Sentenced to 15 Years in Prison for Possession of Methamphetamine and Multiple FirearmsRead the Press Release
CHARLESTON, W.Va. – A Wood County man found last year to be in possession of methamphetamine and multiple firearms, including a machine gun, was sentenced today to 15 years in prison for drug and gun crimes.
According to court documents and statements made in court, a search warrant was executed at the Vienna residence of Evan Rockwell McEwuen, 25, on August 5, 2020. McEwuen was located in the residence at the time of the search and law enforcement officers found 149 grams of methamphetamine, over $14,000 in United States currency, plastic baggies, digital scales and four firearms in the room where McEwuen was located. One firearm was loaded and was equipped with a device designed to convert the firearm into a machine gun. A subsequent inspection confirmed that the firearm was successfully converted into a machine gun and was capable of fully automatic fire. Officers also found approximately 143 grams of additional methamphetamine along with a sawed-off shotgun, plastic baggies and digital scales in a truck and construction trailer parked outside of McEwuen’s residence. In total, officers located over 2000 rounds of ammunition during the execution of the search warrant. McEwuen admitted to possessing all the evidence seized by law enforcement and that he intended to distribute the methamphetamine to others. McEwuen was not legally permitted to possess firearms due to a 2016 felony conviction in the Circuit Court of Wood County for possession of a controlled substance with intent to deliver. McEwuen pleaded guilty to possession with intent to distribute methamphetamine and possession of firearms by a felon in May 2021.
Acting United States Attorney Lisa G. Johnston commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Vienna Police Department, the Parkersburg Police Department, the Parkersburg Violent Crimes and Narcotics Task Force and the United States Marshals Service (USMS).
Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorneys Jeremy B. Wolfe and Joshua C. Hanks handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00166.
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Washington County man charged with crimes related to bringing minor across state lines to engage in sex actsRead the Press Release
COLUMBUS, Ohio – A Lower Salem, Ohio, man was arrested today on federal charges that he produced child pornography and brought a West Virginian minor to his cabin in Washington County to engage in illicit sex acts.
James A. Sabolick, 56, appeared in federal court in Columbus this afternoon.
According to court documents, Marietta police officers conducted a traffic stop of a vehicle that Sabolick was driving on July 24, 2021. It is alleged that Sabolick was attempting to conceal a person in his vehicle during that traffic stop when he initially indicated to law enforcement that he was alone. Officers then discovered a minor in the back seat of Sabolick’s vehicle.
An affidavit filed in support of the criminal complaint details that Sabolick allegedly drove the minor from West Virginia to a cabin near his residence in Washington County, Ohio, for the purpose of engaging in illicit sexual conduct.
Further investigation conducted by the Southeastern Ohio Human Trafficking Task Force at the Washington County Sheriff’s Office alleges Sabolick engaged in various sex acts with the minor. Those included acts involving abuse such as needle pokes, lighter burns, restraints, strangulation, and urination. Items recovered from Sabolick’s hunting cabin and vehicle included panty hose, lubricant, and a box of t-pins.
It is also alleged that during the course of these sex acts and acts of abuse, the defendant photographed the minor victim. Agents allegedly discovered images of child pornography depicting the minor victim on Sabolick’s cell phone. In addition, numerous images of child exploitation material were also recovered when conducting federal search warrants and forensic analysis on his electronic device.
Sabolick is charged in the federal criminal complaint with traveling interstate to engage in illicit sexual conduct (punishable by up to 30 years in prison), producing child pornography (which carries a sentencing range of 15 to 30 years in prison) and possessing child pornography (a federal crime punishable up to 10 years in prison).
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, U.S. Homeland Security Investigations (HSI); Washington County Sheriff Larry Mincks and Marietta Police Chief Aaron Nedeff announced the charges. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
The case was investigated by both the Southeastern Ohio Human Trafficking Task Force and the Central Ohio Human Trafficking Task Force, which are operated under Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Two Missoula methamphetamine traffickers sentenced to prisonRead the Press Release
MISSOULA — Two Missoula women convicted in a large methamphetamine trafficking ring involving pounds of the drug each were sentenced today to prison terms, Acting U.S. Attorney Leif M. Johnson said.
Laura Jeanne Haacke, 46, was sentenced to 54 months in prison to be followed by five years of supervised release. Haacke pleaded guilty in May to possession with intent to distribute meth.
Jennifer Renee Hawkes, 40, was sentenced to 63 months in prison to be followed by five years of supervised release. Hawkes pleaded guilty in May to possession with intent to distribute meth.
U.S. District Judge Donald W. Molloy presided. Hawkes’s detention was continued and Haacke’s release was continued.
According to court documents, the government alleged that Haacke, Hawkes, and co-defendants, Jason Dean Hager, of Lolo, and Terry David Starrett, of Missoula, conspired to distribute meth in Missoula from January 2018 through January 2021. Starrett and Hager each pleaded guilty to possession with intent to distribute meth and are pending sentencing.
Officers learned through confidential informants that Haacke stored meth for her co-defendant Starrett in a trap floor at her residence. When interviewed by law enforcement, Haacke admitted that she used meth and that in February 2019, she stored numerous pounds of meth at her residence.
The government further alleged that in July 2019, Hawkes supplied a person with about two ounces of meth. After the transaction, law enforcement executed a search warrant at Hawkes’s residence and recovered an additional three pounds of meth.
Assistant U.S. Attorney Tara J. Elliott is prosecuting the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, Missoula Police Department, and Missoula County Sheriff’s Office.
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Two Former Bureau of Prisons Officials Sentenced for Bribery Scheme at Federal Prison in PetersburgRead the Press Release
RICHMOND, Va. – Former Bureau of Prisons (BOP) correctional officers at Federal Correctional Institution (FCI) Petersburg, Stephen Taylor and Shanice Bullock, were sentenced today for their respective roles in a bribery scheme that allowed for the introduction of contraband into the prison by FCI Petersburg inmate Dontay Cox.
“Taylor and Bullock blatantly abused their positions of authority as federal correctional officers to enrich themselves at the expense of the public, the safety of the prison they were responsible for protecting, and the dedicated Bureau of Prison employees with whom they served,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Instead of ensuring that the inmates of the prison served their sentences in a safe and lawful manner, these defendants violated their oaths as sworn officers and joined a criminal enterprise that was driven by their greed. As this prosecution demonstrates, we will not tolerate any criminal acts that are designed to corrupt or undermine the fair and impartial administration of justice.”
According to court documents, Taylor, 49, of Wake Forest, North Carolina, Bullock, 28, of South Hill, and Cox, 38, of Baltimore, Maryland, along with other co-conspirators, participated in a bribery scheme at FCI Petersburg between 2015 and 2019 to facilitate the introduction and distribution of contraband across the prison facility.
“This investigation demonstrates the resolve of the FBI, the United States Attorney’s Office, and the Department of Justice's Office of the Inspector General to ensure fair justice. In this instance, sworn officers of the law and inmates alike, at the Federal Correctional Institution in Petersburg, manipulated and circumvented the justice system for significant personal gain, and have been justly sentenced for their criminal actions,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office. “FBI Richmond is committed to working with our partners to preserve the integrity of the system and ensure faith is not lost for those respecting it.”
“Correctional Officers Taylor and Bullock jeopardized the safety and security of their colleagues by accepting bribes from inmate Cox to bring contraband into the prison. The Office of the Inspector General is committed to rooting out these bribery schemes and bringing the perpetrators to justice,” said Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office.
Cox, who pleaded guilty to bribery of public officials on March 22, 2021, was an inmate at FCI Petersburg from on or about January 23, 2014 until on or about July 18, 2019, when he was transferred to another institution. During this time, Cox ran a gambling operation contrary to BOP regulations and, with the assistance of other inmates, obtained and sold contraband, including Suboxone, marijuana, heroin, cigarettes, and cellular telephones. Taylor, then a case manager, and Bullock, then a correctional officer at FCI Petersburg, accepted monetary bribes from friends and family of Cox who were not incarcerated. In return, Taylor and Bullock permitted the introduction as well as distribution of the contraband items in the prison.
From October 2017 to April 2019, Taylor and Bullock received at least $46,841 in bribe payments consisting of both wire transfers and cash payments from individuals associated with Cox.
Taylor was sentenced to 4 years in prison for solicitation and acceptance of bribes. Bullock was sentenced to 10 months in prison for solicitation and acceptance of bribes.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Russell W. Cunningham Special Agent in Charge of the Department of Justice Office of the Inspector General Washington Field Office made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Kenneth Simon Jr. and Michael C. Moore prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-125.
Two Defendants Arrested for Operating Narcotics Delivery Service Responsible for Three Overdose DeathsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), and Ray Donovan, Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), announced that JOSE LUIS TEJADA AYBAR (“TEJADA”) and ALLEN ALEXIS ABISADA GUZMAN (“ABISADA”) were charged in criminal complaints unsealed today in Manhattan federal court with narcotics conspiracy resulting in the deaths of Marsha Clarke of the Bronx, New York, and Martin Banks and Edward Lynch of Yonkers, New York. TEJADA was arrested this morning and will be presented later today before United States Magistrate Judge Ona T. Wang in Manhattan. ABISADA was arrested today and will be presented tomorrow before United States Magistrate Judge Jonathan Goodman in Miami.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, the defendants operated an on-demand delivery service for the distribution of highly addictive and dangerous drugs. The cocaine distributed by the defendants’ service was laced with the deadly synthetic opioid fentanyl, and as alleged, caused the deaths of three victims. Thanks to the tireless efforts of law enforcement, the defendants’ delivery service is no longer in business.”
Police Commissioner Dermot Shea said: “Every overdose in New York City is traced back to its source by the NYPD and its enforcement partners, to prevent the senseless kinds of deaths the victims in this case suffered. I commend our investigators and the prosecutors in the United States Attorney’s Office for the Southern District in New York for tirelessly fighting this scourge with every tool at our disposal.”
DEA Special Agent in Charge Ray Donovan said: “Today’s arrests illuminate the dangers associated with fentanyl-tainted street drugs. Tejada’s alleged drug delivery service put lethal doses of drugs into three New Yorker’s hand, causing their overdose. Too many lives have been lost to fentanyl-related overdoses and I applaud the NYPD, the U.S. Attorney’s Office, the DEA Homestead Resident Office, and members of the New York Strike Force for their diligent efforts in this investigation.”
As alleged in the Complaints[1]:
From at least January 2018 to at least in or about February 2020, TEJADA and ABISADA operated a narcotics delivery service (the “Cab Louie Delivery Service”) in the New York City area. On or about September 19, 2019, ABISADA, working for the Cab Louie Delivery Service, delivered cocaine to Clarke, Banks, and Lynch. Within two days, the cocaine delivered by the Cab Louie Delivery Service, which was tainted with fentanyl, caused the overdose deaths of Clarke, Banks, and Lynch, as well as the hospitalization of Clarke’s husband.
Soon thereafter, TEJADA saved on his phone a news article reporting the overdose deaths of Banks and Lynch. TEJADA nevertheless continued to operate the Cab Louie Delivery Service. From in or about October 2019 to in or about February 2020, TEJADA and ABISADA, operating through the Cab Louie Delivery Service, repeatedly sold cocaine to an NYPD undercover officer.
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JOSE LUIS TEJADA AYBAR, 39, of Yonkers, New York, and ALLEN ALEXIS ABISADA GUZMAN, 40, of the Bronx, New York, are each charged with narcotics conspiracy resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison.
The minimum and maximum potential sentences described above are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the assigned judge.
Ms. Strauss praised the outstanding investigative work of the NYPD Detective Borough Bronx Violent Crimes Squad and the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force. The OCDETF New York Strike Force is a crime-fighting unit comprising federal, state, and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA, New York City Police Department, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department, and New York State Department of Corrections and Community Supervision. Ms. Strauss also thanked the Yonkers Police Department and the Westchester County District Attorney’s Office for their assistance in the case, and thanked the DEA’s Miami Field Division for its assistance in the apprehension of ABISADA.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Alexander Li is in charge of the prosecution.
The charges in the Complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaints, and the descriptions of the Complaints set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the defendants charged in the Complaints.
Twelve Tribes Selected for Participation in Program Enhancing Tribal Access to National Crime Information DatabasesRead the Press Release
The Department of Justice has selected an additional 12 federally recognized Tribes to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides tribal governments with means to access, enter and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division and the states.
“Timely access to federal criminal information can help protect domestic violence victims, place foster children in safe conditions, solve crimes and apprehend fugitives on tribal land, among other important uses,” said Deputy Attorney General Lisa O. Monaco. “Increasing tribal access to criminal databases is a priority of the Justice Department and this Administration, and essential to many tribal government efforts to strengthen public safety in their communities.”
The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots and submit information to FBI Criminal Justice Information Services (CJIS) systems. With these additional tribes, there are now 108 federally recognized Tribes participating in TAP.
TAP has been an important resource for the department’s Missing and Murdered Indigenous Persons Initiative and the Presidential Task Force on Missing and Murdered American Indians and Alaska Natives known as Operation Lady Justice. The Department of Justice began TAP in 2015 in response to concerns raised by tribal leaders about the need to have direct access to federal systems.
Using TAP, Tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
The following tribes have been newly selected for participation in TAP:
- Confederated Tribes of the Warm Springs Reservation
- Cow Creek Band of Umpqua
- Fort Belknap Indian Community
- Grand Traverse Band of Ottawa and Chippewa
- Havasupai Tribe
- Lower Brule Sioux Tribe
- Menominee Tribe
- Mille Lacs Band of Ojibwe
- Muckleshoot Tribe
- Passamaquoddy Tribe
- Shingle Springs Band of Miwok
- United Keetoowah Band of Cherokee
TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW).
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.
Treatment Facility Owner Sentenced to Federal Prison for Health Care FraudRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Marcus Lloyd Anderson (36, St. Petersburg) to one year and a day in federal prison for health care fraud. As part of his sentence, the court also entered a money judgment in of $323,248, which were the proceeds of the offense.
Anderson had pleaded guilty on April 30, 2020.
According to court documents, Anderson submitted bogus claims to the Florida Medicaid program and related managed care organizations for services that were never provided to patients. Anderson falsely claimed that patients had received counseling at his treatment facility when, as he knew, they were not there. In fact, some patients were hospitalized or placed in assisted living facilities elsewhere when Anderson lied, claiming they were in his care. Anderson also stole and misused the billing credentials of multiple doctors by billing for services he claimed they had rendered to patients at his facility, when those doctors had left his employment many months before. By lying about the services rendered and misusing billing credentials, Anderson stole more than $300,000 from these programs.
“Stealing from Medicaid, a taxpayer-funded safety net program, is a reprehensible crime that diverts funds intended to serve some of the most vulnerable individuals in our country,” said Special Agent in Charge Omar Pérez Aybar of U.S. Department of Health and Human Services Office of Inspector General. “Such greed-fueled scams will not be tolerated. Thanks to our hardworking investigators and our law enforcement partners, fraudsters are being held accountable for engaging in these illicit activities.”
“We are thankful that this matter has been resolved and Mr. Anderson is being held accountable for his actions,” said Anthony Holloway, Chief of St. Petersburg Police. “We appreciate our partnership with the U.S. Attorney’s Office and their continued commitment to seek justice for those who are victimized by schemes to defraud.”
Attorney General Ashley Moody said, “This fraudster misused billing credentials of physicians and charged the government for services not rendered to steal from taxpayers. Thankfully, our Medicaid Fraud Control Unit investigators, working with federal authorities, uncovered the scheme and now, this fraudster will serve time in a federal prison.”
The case was investigated by Health and Human Services, Office of Inspector General, the Florida Office of Attorney General’s Medicaid Fraud Control Unit, and the St. Petersburg Police Department. It was prosecuted by Assistant U.S. Attorney Kristen A. Fiore.
Three Men Convicted After a 10-Day Trial of Federal Charges Related to a Series of Home BurglariesRead the Press Release
Baltimore, Maryland – A federal jury today convicted three men for conspiracy, and for transportation of stolen property, taken during a series of burglaries committed in Maryland and Georgia. The jury returned the guilty verdicts for the following defendants late yesterday after three hours of deliberation:
Demar A. Brown, age 37, of Paterson, New Jersey and Winston-Salem, North Carolina;
Jashon C. Fields, age 37, of Atlanta, Georgia; and
Kamar O. Beckles, age 35, of Teaneck, New Jersey.The convictions were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the evidence presented at the 10-day trial, from November 29, 2017 through January 26, 2018, the defendants committed a series of break-ins at residences in Baltimore County, Maryland and Milton, Georgia, in order to steal property, including: cash; foreign currency; safes; jewelry; designer purses, bags, and clothing; personal electronics; collectibles; personal identity documents; and items of sentimental value, such as historical medals, rare coins, and other memorabilia. The defendants intended to sell the stolen property out-of-state for cash.
Witnesses testified that the defendants wore masks and gloves during the break-ins and communicated with each other using two-way radios and mobile phones. One of the conspirators often remained in the getaway car while the other conspirators committed the burglaries. Brown, Fields, and Beckles rented hotel rooms in Maryland where they would store the proceeds of the burglaries they committed (until the property and proceeds were transported out of state). Brown and Beckles transported the stolen property outside Maryland, including to two residences to which Brown had access in Winston-Salem, North Carolina.
As detailed during the trial, on January 26, 2018, the defendants were arrested not far from two residences that had recently been burglarized. Brown was arrested after officers responding to the burglary noticed a dark green Ford Explorer with North Carolina tags traveling slowly down the street. The vehicle was identical to a suspect vehicle seen in surveillance footage from some of the earlier burglaries. An officer pulled in behind the vehicle and, after a short vehicle chase, Brown was eventually arrested after trying to flee from the SUV.
Beckles and Fields were arrested in a nearby wooded area, about a half mile from one of the burglarized homes. At the time of his arrest, Beckles was wearing a distinct jacket with a reflective emblem on the back – identical in appearance to the insignia visible in surveillance footage from some of the earlier burglaries. Additional responding officers were able to view through the vehicle’s windows a safe matching the description of a safe stolen during the robbery, along with what appeared to be bags of other property stolen that evening and over $2500 in loose change – later determined to have been stolen from a home in Milton, Georgia.
A search of each defendant turned up hotel key cards, and one of the defendants was carrying over $1,000 cash in his sock. Brown also had a breakfast ticket from the hotel matching the key card, where law enforcement learned Beckles had rented two rooms in his name.
A search warrant for the rented rooms was obtained and executed, and a second search of one of the rooms occurred a couple of days later. During the searches of the rooms, law enforcement recovered jewelry stolen from a residence on January 25, 2018, property from homes burglarized in Milton, Georgia on January 24th, as well as property from homes burglarized in Baltimore County on December 28, 2017, December 29, 2017, January 9, 2018, and January 10, 2018. They also recovered a mask, a pair of gloves, a diamond tester, a scale, and a gold testing kit. In the second room, they located, among other things, Fields’ license, mail in the name of Beckles, and various phones.
On January 27, 2018, after obtaining a search warrant, law enforcement searched the Ford Explorer driven by Brown the previous day. They discovered, among other things, various tools and clothing for use in connection with burglaries, including a pry bar, a drill and hole saw, a mallet, three chisels, a reciprocating saw, multiple pairs of gloves, black knit hats, a balaclava style mask, two-way radios, and flashlights.
Law enforcement officers searching the vehicle also discovered many of the pieces of property stolen during two burglaries the previous day, as well as notes concerning a pawn shop and a jewelry shop in North Carolina.
On January 30, 2018, law enforcement obtained search and seizure warrants for Brown’s residences in Winston-Salem, North Carolina. There they located property from three earlier burglaries in Baltimore County—including numerous pieces of fine jewelry. Additionally, evidence on the nine phones seized from the defendants, the SUV, and the defendants’ hotel rooms showed, among other things, Brown and Beckles photographing many pieces of the jewelry and other items taken during some of the burglaries.
In total, 21 homes were burglarized in connection with the conspiracy, and the victims reported that $850,000 worth of property was stolen. Only some of that stolen property has been recovered and returned to its owners; for a few victims, the vast majority of their property has yet to be recovered.
The defendants each face a maximum sentence of five years in federal prison for the conspiracy; and a maximum of 10 years in federal prison for each count of interstate transportation of stolen property or attempted interstate transportation of stolen property. U.S. District Judge George J. Hazel will schedule sentencings at a later date.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Paul A. Riley and Christopher M. Rigali, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Three Lake Charles Men Sentenced for Crimes Involving FirearmsRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that three defendants have been sentenced today in federal court. United States District Judge James D. Cain, Jr. sentenced the following three defendants for being convicted felons in possession of a firearm:
- Brandon Antonio Carter, 36, of Lake Charles, was sentenced to 180 months in prison, followed by 3 years of supervised release. On March 21, 2019, a Calcasieu Parish Sheriff’s Office deputy conducted a traffic stop of a vehicle being driven by Carter. The deputy detected an odor of marijuana coming from the vehicle and Carter admitted to having marijuana in his possession. During a search of the vehicle, deputies located a loaded handgun and magazine on the driver’s floorboard containing 27 rounds of ammunition. Carter has previous felony convictions for second degree robbery (2007), distribution of cocaine (2007), and distribution of a controlled substance, schedule II, (2013), and knew that he was prohibited from possessing any firearm or ammunition.
- Jeremiah Devon Richard, 23, of Lake Charles, Louisiana, was sentenced to 48 months in prison, followed by 3 years of supervised release. On October 2, 2019, officers with the Lake Charles Police Department executed a search warrant at a residence on Polk Street in Lake Charles. Inside the residence, officers found a semi-automatic rifle inside the closet of a bedroom that Richard was staying in. Officers also located a 12-gauge shotgun in the living room of the residence and learned that it belonged to Richard. Richard has previous felony convictions for simple burglary in both 2011 and 2012 and was prohibited from possessing any firearms or ammunition.
- Jerrell K. Malone, 47, of Lake Charles, was sentenced to 30 months in prison, followed by 3 years of supervised release. Officers with the Lake Charles Police Department responded to a trespassing complaint on Moeling Street in Lake Charles on April 5, 2020. When they arrived at the residence, officers made contact with Malone, who admitted to having waved a firearm around when he had been asked to leave the residence. Malone admitted to having the firearm and that he had put it inside the residence. Officers retrieved and seized the loaded semi-automatic pistol that Malone had in his possession. Malone has previous felony convictions for possession of cocaine (1996), possession with intent to distribute cocaine (2008), and aggravated cruelty to animals (2019) and knew that he was prohibited from possessing any firearm or ammunition.
The ATF, Lake Charles Police Department and Calcasieu Parish Sheriff’s Office conducted these investigations. Assistant U.S. Attorneys Craig R. Bordelon, Danny Siefker, and Daniel J. Vermaelen prosecuted the cases.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Three Employees of a Long Island Information Technology Company Plead Guilty to Criminal Copyright InfringementRead the Press Release
Michael Calabria, Joseph Keegan and Casey Silver pleaded guilty yesterday in federal court in Central Islip to criminal copyright infringement. Calabria and Keegan were principals of Constructure Technologies, LLC (“Constructure”), located in Melville, New York, and Silver was a Constructure employee. The charge relates to the defendants’ installing unlicensed versions of software by using “cracking” programs or “key generators,” which allowed Constructure employees to activate copies of the software without paying for a license and obtaining a key. In addition to the guilty pleas, Constructure itself is charged with a felony violation of the Digital Millennium Copyright Act (“DMCA”) and agreed to pay a $60,000 fine. The fine is part of a deferred prosecution agreement that Constructure has entered into with the United States Attorney’s Office for the Eastern District of New York. The relevant portion of the DMCA prohibits the criminal circumvention of copyright protection systems, including encryption systems.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty pleas and deferred prosecution agreement.
“With the guilty pleas and deferred prosecution agreement, Constructure and the individual defendants admit to committing a high-tech theft by installing unlicensed software they didn’t pay for, and cheating software companies of license fees they were owed,” stated Acting U.S. Attorney Kasulis. “Protecting intellectual property rights is an important priority of this Office, and we will continue to investigate and prosecute those who ignore those rights for their own profit.” Ms. Kasulis also thanked the Suffolk County Police Department and VMWare for their valuable assistance with the case.
“We install software on our computers to protect us from hackers and criminals. Software companies are constantly updating and fixing programs with patches to stay one step ahead of the bad actors who work non-stop to exploit vulnerabilities. The three employees who are pleading guilty in this investigation only saw the profit they could make if they gamed the system. Users paying for security software should be able to rely on the legitimacy of it,” stated FBI Assistant Director-in-Charge Driscoll.
The Scheme to Circumvent Copyright Protection Systems
According to court filings, Constructure provided information technology services, helping install, manage and service various networks and other technology products for small and medium sized businesses. Calabria was Constructure’s President, Keegan was the Chief Technology Officer, and Silver was a Project Manager.
Between 2011 and 2018, Constructure sold, installed and provided services for computer programs that were copyrighted and then sold by software companies (“Victim Software Companies”), including VMWare, a global cloud computing software company. Some of those computer programs were designed so that they could not be activated until a user paid the company for a “license” to use that software. In purchasing a license, the user received a “key”—a string of letters, numbers and symbols—that, when entered into the copy of software obtained by the user, activated the software. Constructure’s clients generally paid Constructure to purchase licenses for such computer programs and to activate those programs with a legitimate license key.
Starting in or about 2011, Calabria, Keegan, and Silver helped to operate Constructure’s business in part by installing unlicensed versions of software from Victim Software Companies by using cracking programs or key generators, which allowed Constructure to activate copies of the software without paying for a license and obtaining a key. Constructure employees, often at the express direction of Calabria or Keegan, used cracking programs or key generators to install software from multiple Victim Software Companies.
Constructure employees, including Keegan, obtained license keys and cracking programs from the Internet. They also tested those programs on a computer server located in the basement of Constructure’s office in Melville and on a file-sharing site controlled by Constructure, so that the programs could be used remotely by Constructure employees.
By installing working, but unlicensed, versions of software, Constructure was able to bill a customer for the software, under the pretense that Constructure purchased a copy on behalf of the customer, while not actually paying for it. Constructure employees did not inform Constructure’s clients or the Victim Software Companies that Constructure employees used “cracks” to install those programs.
From approximately 2011 to approximately 2018, Constructure employees installed cracked software programs for multiple clients, including clients located in Hicksville, New York; Mineola, New York; Manhattan, New York; and Bridgewater, New Jersey.
When sentenced, each defendant faces up to one year in prison and a fine.
The Deferred Prosecution Agreement and Criminal Information as to Constructure
Under the terms of the deferred prosecution agreement, Constructure will pay a criminal penalty of $60,000 and maintain a compliance and ethics program designed to prevent and detect violations of the DMCA and other applicable laws. If the company breaches the agreement, it will be subject to prosecution for the charge in the criminal information that was filed today, charging Constructure with a criminal violation of the DMCA.
The government’s case is being handled by the Office’s the National Security and Cybercrime Section and the Cybercrime Task Force. Assistant United States Attorney David K. Kessler is in charge of the prosecution.
The Eastern District of New York’s Cybercrime Task Force was formed in May 2021 to combat cybercrime, which is proliferating in the United States, including in this district, as well as internationally. The Task Force’s goals are to initiate cybercrime investigations and prosecutions, disseminate information about emerging cybercrime issues and trends, and heighten awareness about a wide variety of cybercrime schemes. The Task Force works with our traditional law enforcement partners, including the FBI, the United States Secret Service, Homeland Security Investigations and the Cybersecurity and Infrastructure Security Agency, as well as the Drug Enforcement Administration. The Task Force also coordinates with regulatory partners, including the U.S. Securities & Exchange Commission and the Federal Trade Commission, as well as state and local counterparts, such as the New York State Department of Financial Services, New York City Cyber Command and the New York City Police Department.
The Defendants:
CONSTRUCTURE TECHNOLOGIES, LLC
MICHAEL CALABRIA
Age: 49
Manorville, New YorkJOSEPH KEEGAN
Age: 46
Merrick, New YorkCASEY SILVER
Age: 36
Stamford, ConnecticutE.D.N.Y. Docket No. 21-CR-368 (JS)
The Nuestra Familia’s General Council and Other Members and Associates Charged with RacketeeringRead the Press Release
SAN JOSE - A federal grand jury returned an indictment charging 17 defendants with racketeering conspiracy, including acts involving murder, robbery, drug trafficking, and money laundering, and charging five others with drug trafficking-related crimes. The indictment handed down onAugust 25, 2021, and unsealed today, catalogues a litany of crimes allegedly directed by the Nuestra Familia’s command structure incarcerated in California prisons. The charging announcement was made by Acting United States Attorney Stephanie Hinds, Federal Bureau of Investigation Special Agent in Charge Crag D. Fair, and Drug Enforcement Administration Special Agent in Charge Wade R. Shannon at a press conference this morning. Also appearing at the press conference were Chief of the Office of Correctional Safety for the California Department of Corrections and Rehabilitation Derrick Marion, Santa Clara Sheriff Laurie Smith, and San Jose Deputy Chief of Police Elle Washburn.
“The indictment charges all seven of the members who make up the Nuestra Familia’s ruling body: the General Council,” said Acting U.S. Attorney Hinds. “While the physical movement of this leadership was restricted by prison walls, the indictment alleges their power and influence were not so constrained. By disrupting gang leadership, we reduce violence on our streets. By removing violent actors and crime drivers from the streets, we make our neighborhoods safer.”
"The arrests made yesterday, most significantly the arrests of the Nuestra Familia leadership, will severely cripple the ability of this criminal enterprise to continue to facilitate crimes in communities throughout the state and help break a decades-old cycle of violence," said FBI San Francisco Special Agent in Charge Fair.
“Today’s operation strikes a substantial blow to Nuestra Familia leadership. This investigation revealed the wide-ranging influence of the gang that extends far beyond prison walls. It is clear they have hard and fast rules, and those who run afoul are met with intimidation and violence that spills into our communities,” said DEA Special Agent in Charge Wade R. Shannon. “We will continue to look at these organizations structurally to disrupt and dismantle them.”
According to the indictment, the 17 racketeering defendants were members and associates of the Nuestra Familia (“NF”) prison gang, a violent and lucrative organization formed in the 1960s. The NF is alleged in the indictment to be a criminal enterprise that was created to organize, protect, discipline, profit from, and maintain the allegiance of gang members on the streets of and within custodial facilities in California. As outlined in the indictment, membership in the NF involved a process of sponsorship, approval, and indoctrination. The perpetration of violence and other crimes was ordinarily a prerequisite to entrance, continued membership, and advancement in the organization. Once membership was achieved, this membership was for life. The indictment alleges an NF oath provides: “If I lead, follow. If I stumble, push me. If I fall, avenge me. If I betray you, kill me.”
The indictment also describes the NF’s organizational structure and, in particular, the gang’s governing body: a seven-member “General Council,” made up of three Generals and a four-member Inner Council, which makes significant decisions and oversees the activities of the NF and its subservient gangs. The indictment outlines each position according to the NF Constitution. According to the NF Constitution, the Street Regiment General oversees the NF’s “overall street operations.” The General of the Prisons is responsible for the NF’s “overall pinta [prison] functions,” and the General Advocates Office is the NF’s “justice department.” Tiered just below these three NF Generals was the Inner Council, which consisted of four senior NF members who served as “advisors” to the Generals and provided a system of checks and balances. All seven members of the NF’s General Council led the NF organization while incarcerated in the California prison system. Each is charged in this indictment.
Further, the indictment describes the appointment by these leaders of NF members to positions of power over hierarchical and paramilitary structures called “regiments,” imposed on its gang members operating on the streets in California. While the NF was composed of a relative few, it exercised control and wielded influence over thousands of subordinate gang members in counties and prisons throughout Northern California using such regiments. These regiments primarily guaranteed the NF’s vast influence and control over its own and its street gang members, ensured avenues to direct violence and other illicit activity, and secured means for the NF to make money through the commission of criminal activity. The NF oversaw such regiments in Santa Clara County, Monterey County, Santa Cruz County, San Benito County, San Francisco County, San Mateo County, Contra Costa County, Alameda County, Solano County, San Joaquin County, Fresno County, Kings County, Tulare County, Madera County, Merced County, Kern County, Sacramento County, Yolo County, Humboldt County, Shasta County, Lassen County, Tehama County, Butte County, Yuba County, Sutter County, Lake County, Placer County, and Sonoma County, as well as in Salinas Valley State Prison, Pelican Bay State Prison, Pleasant Valley State Prison, California State Prison - Solano, California State Prison - Sacramento, and High Desert State Prison.
According to the indictment, NF members and associates were involved in plots to kill 14 victims between April 2013 and July 2019 as part of the charged racketeering conspiracy. The defendants charged in the alleged racketeering conspiracy include the following:
Defendant
Age
Charges
Maximum Statutory Penalty
DAVID CERVANTES aka “DC”
73
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
ANTONIO GUILLEN aka “Chuco”
55
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
JAMES PEREZ aka “Conejo”
67
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
SAMUEL LUNA aka “Sammy”
46
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
GUILLERMO SOLORIO aka “Capone”
42
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
TRINIDAD MARTINEZ aka “Trino”
41
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
GEORGE FRANCO aka “Puppet”
56
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
STEVEN TRUJILLO aka “Esteban”
56
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
SALVADOR CASTRO aka “Gangster”
51
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
BRYAN ROBLEDO aka “Turtle”
48
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
ALEX YRIGOLLEN aka “Sleepy”
52
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
JUAN SOTO aka “Drifter”
38
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
EDGARDO RODRIGUEZ aka “Big Evil”
41
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
ROBERT MALDONADO aka “KJ”
46
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
ERIC ZARATE aka “Baby G”
43
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
ROCKY BRACAMONTE aka “Fox”
37
18 U.S.C. § 1962(d) – Racketeering Conspiracy
Life
JOSHUA CORTEZ aka “Buddah”
28
18 U.S.C. § 1962(d) – Racketeering Conspiracy
20 years
Also charged in the indictment are defendants who allegedly participated in two conspiracies to possess and distribute methamphetamine, one in May of 2019 and the other in September 2020 to March 2021. The charges pending against these defendants are as follows:
Defendant
Age
Charges
Maximum Statutory Penalty
WILLIAM RODRIGUEZ aka “Negro”
34
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
At least 5 years, up to 40 years
MARVIN RODRIGUEZ
34
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
At least 5 years, up to 40 years
CRISTIAN MORA aka “C-Fresh”
28
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
At least 5 years, up to 40 years
MARTIN JOSEPH RUPPEL JR.
42
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
At least 5 years, up to 40 years
ANAELISA CUEVAS
35
21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
At least 5 years, up to 40 years
The court also may order additional terms of supervised release, fines, and restitution. Nevertheless, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The defendants are scheduled to make initial federal court appearances before U.S. Magistrate Court Judge Nathanael Cousins and U.S. Magistrate Court Judge Sallie Kim today.
This case is being prosecuted by the Organized Crime Strike Force of the United States Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI (San Francisco, Sacramento, and Phoenix Divisions), the DEA, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Marshal Service, with the assistance of the Santa Clara County Sheriff’s Office, the California Department of Corrections and Rehabilitation, the Santa Clara County District Attorney’s Office, and the San Jose Police Department, and with support from the Alameda County Sheriff's Office, Antioch Police Department, Campbell Police Department, Fremont Police Department, King’s County Sheriff’s Office, Monterey County Sheriff’s Office, Mountain View Police Department, Sacramento Police Department, Salinas Police Department, Menlo Park Police Department, Santa Clara County Parole Department, Santa Clara County Probation Department, Santa Clara Police Department, Santa Cruz County District Attorney's Office, Santa Cruz County Sheriff's Office, Modesto Police Department, San Francisco Police Department, the Stanislaus County Sheriff's Department, and Sunnyvale Department of Public Safety.
This investigation and prosecution are part of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Texas Wedding Planner Sentenced in COVID-19 Fraud SchemeRead the Press Release
A Texas man was sentenced today in the Eastern District of Texas to 31 months in prison and three years of supervised release for perpetrating a scheme to fraudulently obtain more than $3.3 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Fahad Shah, 45, of Murphy, who pleaded guilty to wire fraud, sought approximately $3.3 million in PPP funds by claiming that his family’s business, WBF Weddings by Farah Inc. (WBF), employed more than 100 individuals and paid millions of dollars in compensation to those employees. In actuality, WBF had no employees aside from Shah and his wife. Based on Shah’s false representations and forged documents, an SBA-approved lender provided over $1.5 million in PPP loan funds to Shah. Shah then used the funds for personal gain contrary to program’s terms, paying off his home mortgage and purchasing two Teslas and a Mercedes, among other items.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Nicholas Ganjei for the Eastern District of Texas; Inspector General Hannibal “Mike” Ware of the U.S. Small Business Administration – Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG); Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG); Special Agent in Charge Christopher J. Altemus Jr. of the IRS-Criminal Investigation (IRS-CI) Dallas Field Office; and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FHFA-OIG, FDIC-OIG, IRS-CI, and TIGTA investigated the case.
Trial Attorney Della Sentilles and Louis Manzo of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Frank Coan and Bob Wells of the Eastern District of Texas prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Teresa Adamos Pereda Sentenced to Eight Years ImprisonmentRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Teresa Adamos Pereda, age 57, from Barrigada, Guam, was sentenced in the United States District Court of Guam in connection with two separate fraudulent schemes. Pereda pleaded guilty on January 31, 2020 to multiple counts of Bank Fraud, in violation of 18 U.S.C. §1344, in Criminal Case No. 19-00047; and on April 14, 2021 to multiple counts of Wire Fraud, in violation of 18 U.S.C. §1343, and one count of Unlawful Use of Seals of U.S. Departments or Agencies, in violation of 18 U.S.C. §506(a)(2), in Criminal Case No. 21-00004. United States District Judge John C. Coughenour sentenced Pereda to a 60-month term of imprisonment, to run concurrent to a 96-month term of imprisonment and five years of supervised release. Judge Coughenour also ordered Pereda to pay $1,150,430 restitution to her former employer, an additional $2,527,838 restitution to other multiple victims, forfeiture money judgments of $1,150,430 and $2,527,838, and $3,500 special assessment fees, and to forfeit personal property.
Pereda was employed as an office manager at the dental clinic of Robert R. Gatewood D.D.S. M.S., A Professional Corporation. From January 2011 until her termination in September 2019, she stole $1,150,430 from her employer by writing 284 fraudulent checks from her employer’s First Hawaiian Bank checking account for her personal use. To conceal the embezzlement scheme from her employer and First Hawaiian Bank, Pereda falsified check stubs to make it appear the checks were issued for business purposes, and falsely recorded the transactions in the company’s internal accounting system.
In a separate case, from January 2016 to November 2019, Pereda participated in an advance fee inheritance scheme and defrauded at least 36 victims, including family, friends, co-workers and members of the St. Paul Christian Church and St. Paul Christian School alumni. She obtained $2,527,838 by falsely representing that she expected to receive a multi-million dollar inheritance from an elderly couple from Hawaii, but had to pay taxes, attorney’s fees, and other expenses up front before she could receive the funds. Pereda convinced the victims to give her money to pay for such inheritance-related and other expenses and assured them she would repay them a larger sum of money from her inheritance. Pereda knew these claims were false at the time she made them. She also knew that no inheritance was forthcoming from an elderly couple in Hawaii. In addition, Pereda provided some victims with bogus documents and seals from various United States government agencies, including the Central Intelligence Agency. Pereda sent over $2.5 million of investor funds via wire transfer to other co-schemers in the United States and foreign countries.
“The significant sentence in this case reflects the extraordinary losses suffered by numerous victims,” stated Shawn N. Anderson, United States Attorney for Guam and the Northern Mariana Islands. “In addition to a lengthy term of imprisonment, our prosecution of Pereda has deprived her of all proceeds from her criminal activity. It is noteworthy that the FBI pursued this matter across multiple jurisdictions over the course of the ongoing pandemic. We are thankful for their exceptional dedication to keeping our communities safe.”
"Pereda preyed upon the trust she gained with her employer, community, church, friends and family and defrauded them of their hard-earned money and retirement savings," said Steven Merrill, Special Agent in Charge of the FBI's Honolulu Field Office. "She caused the loss of millions of dollars by repeatedly lying that the pay-off would come if her victims just gave more money. The FBI is committed to investigating investment scams and I urge the people of Guam to be wary of any offers that sound 'too good to be true'."
This case was investigated by the Federal Bureau of Investigation and prosecuted by Marivic David, Assistant United States Attorney in the District of Guam.
Suspended Attorney Pleads Guilty to Visa FraudRead the Press Release
NEW BERN, N.C. – A Wilmington woman pled guilty yesterday to Fraud in Connection with Visas, Permits, and other Documents.
According to court documents and other information presented in court, Roydera Hackworth, 63, was an attorney licensed to practice in North Carolina and was suspended by the North Carolina State Bar (NCSB) on June 25, 2012, from practicing law and on April 30, 2014, by the Board of Immigration Appeals from practicing in immigration matters before the Executive Office for Immigration Review (i.e. the Board of Immigration Appeals and the immigration courts) and the Department of Homeland Security (DHS), United States Citizenship and Immigration Services (USCIS).
Hackworth primarily handled administrative cases for clients before USCIS.
In September 2019, DHS Disciplinary Counsel advised NCSB, and later the United States Attorney’s Office for the Eastern District of North Carolina, that based on information DHS Disciplinary Counsel discovered in USCIS records, it appeared that Hackworth violated her suspension and continued to practice, prepare, and submit Form G-28s (Notice of Entry of Appearance as Attorney or Accredited Representative), petitions, and applications with USCIS on behalf of client petitioners and applicants for immigration benefits after she was suspended on April 30, 2014.
Based on an investigation conducted by Homeland Security Investigations (HSI), and USCIS Fraud Detection and National Security (FDNS), approximately twenty Alien Files were reviewed. Further, interviews of persons that Hackworth “represented” were conducted which revealed that Hackworth impersonated another licensed attorney, submitted various immigration related documents which she signed under penalty of perjury representing that she was the other attorney and that she was not suspended and was authorized to practice law.
The review by HSI and FDNS revealed that between 6 and 24 clients were represented by Hackworth with no knowledge that Hackworth was submitting their immigration petitions and application under the name of the other attorney.
The DHS Disciplinary Counsel said: “Hackworth’s disregard of the Board of Immigration Appeals suspension order caused harm to her clients and to the immigration system. Her unscrupulous behavior required further action to protect the public and the immigration system. We are thankful the U.S. Attorney’s Office took the information we discovered and prosecuted Hackworth.”
Complaints regarding immigration attorneys appearing before DHS can be sent to [email protected] or for attorneys appearing before the immigration courts or the Board of Immigration Appeals to [email protected].
“Hackworth not only violated the oath of her profession and the laws of the US immigration system, but she also violated her client’s trust when she fraudulently represented them,” said Special Agent in Charge Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “Preventing the exploitation of people and protecting the integrity of the US immigration system are hallmarks of HSI’s mission.”
Hackworth pleaded guilty to violation of 18 U.S.C. § 1546(a) and faces a maximum penalty of 120 months in prison when sentenced. It is anticipated sentencing will be during the Court’s term in January, 2022 in front of U.S. District Judge Louise W. Flanagan.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after the plea was entered by U.S. Magistrate Judge Robert B. Jones, Jr. The Department of Homeland Security Investigations, United States Citizenship and Immigration Services, Fraud Detection and National Security investigated the case and Assistant U.S. Attorney Sebastian Kielmanovich prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-93-FL.
Richmond Man Pleads Guilty to Producing Child PornographyRead the Press Release
OAKLAND – Ranbir Singh pleaded guilty yesterday in federal court in Oakland to the production of child pornography, announced Acting United States Attorney Stephanie M. Hinds and Homeland Security Investigations Special Agent in Charge Tatum King.
In his plea agreement, Singh, 47, of Richmond, admitted that on March 13, 2013, he engaged in sexual acts in an Alameda County hotel room with a female whom he knew to be 16 years old at the time. The plea agreement describes that Singh set up a video camera in the hotel room before the crime occurred. Singh admitted he persuaded the minor female. At one point the minor female protested, but Singh continued. During the recordings, Singh admitted that he positioned the camera to record the acts.
Singh also admitted in his plea agreement that earlier, in January 2013, he video recorded the same minor female sitting in a car’s backseat in a compromising and exposed position.
Singh further admitted that in May 2013 he traveled with a different minor female to a casino hotel in Placer County. Singh admits that he knew this female was a minor. The plea agreement describes that in a hotel room at the casino Singh engaged in sex acts with the minor female, after he showed her a video he recorded depicting his acts with the minor female in the Alameda County hotel room on March 13, 2013.
The initial federal charges were brought against Singh in a complaint filed March 1, 2021. The complaint reflects that the investigation began when the two minor female victims came forward, though initially they did not know Singh’s true name, and later developed when the sexually explicit videos were discovered.
Singh was indicted on March 23, 2021, on the charge of production of child pornography in violation of 18 U.S.C. 2251(a). The maximum penalty for a violation of production of child pornography in violation of 18 U.S.C. 2251(a) is imprisonment for 30 years, with a minimum mandatory term of imprisonment of 15 years, and a fine of $250,000. However, any sentence will be imposed by a court only after the court’s consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Singh’s sentencing hearing is scheduled for December 8, 2021, in Oakland federal court before the Honorable Haywood S. Gilliam, Jr., United States District Judge. Singh remains in custody awaiting sentencing.
Jonathan U. Lee is the Assistant U.S. Attorney who is prosecuting the case, with the assistance of Leeya Kekona, Kay Konopaske, and Kathleen Turner. The prosecution is the result of an investigation by Homeland Security Investigations and the Richmond Police Department.
Return Preparer Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
A Florida return preparer pleaded guilty yesterday in the Southern District of Florida to conspiracy to defraud the United States.
According to court documents, Michlin Delivrance owned and operated Tax USA, a return preparation business with a primary office in Delray Beach. From at least 2015 through 2019, Delivrance conspired with Scott Forbes and others at Tax USA to claim inflated tax refunds for clients by reporting false income, expenses and itemized deductions on their returns. Delivrance benefited from the scheme by charging clients substantial fees to prepare the returns. In total, through his conduct, Delivrance caused a tax loss to the IRS of between $250,000 and $550,000.
Delivrance is scheduled to be sentenced on Oct. 21. He faces a maximum penalty of five years in prison, as well as a period of supervised release, restitution and monetary penalties. Forbes previously pleaded guilty to his involvement in the conspiracy on June 1, and his sentencing is scheduled for Aug. 24. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Tax Division and Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Patrick Elwell of the Tax Division and Assistant U.S. Attorney Robin Waugh of the Southern District of Florida are prosecuting the case.
Public Contractor Sentenced to Two Years in Federal Prison for Bribing San Francisco Public OfficialRead the Press Release
SAN FRANCISCO – Alan Varela was sentenced today in federal court to 24 months in prison and ordered to pay a $127,000 fine for a seven year conspiracy to commit honest services wire fraud by bribing a San Francisco public official, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The sentence was handed down by the Honorable William H. Orrick, United States District Judge.
A federal complaint filed September 17, 2020, charged Varela, 60, of Orinda, and William Gilmartin, 61, of San Mateo, with bribery of a public official. In 1991, Varela founded ProVen Management, a Bay Area civil engineering and construction firm that engaged in large scale infrastructure projects. Varela and Gilmartin acted as the firm’s president and vice-president, respectively, during the conspiracy time period. According to the complaint, Varela and Gilmartin provided a stream of benefits to Mohammed Nuru, then the Director of San Francisco’s Department of Public Works (DPW), in exchange for favorable treatment of their business interests, including non-public inside information.
Upon entering his guilty plea to conspiring to commit honest services wire fraud on May 27, 2021, Varela described in his plea agreement his role in the bribery conspiracy of then-DPW Director Nuru. The bribery’s goal was to use Nuru’s prominence as a powerful San Francisco public official to ensure the success of Varela and his co-conspirators’ business ventures. Nuru’s position as DPW Director provided him with great influence over San Francisco public contracts, permits, and construction projects, as well as over other City departments and private companies seeking DPW contracts. In his plea agreement, Varela admitted that for seven years, from 2013 until the day of Nuru’s arrest on federal charges January 27, 2020, he conspired with his co-defendant Gilmartin, with Balmore Hernandez – a construction company CEO who pled guilty earlier and is cooperating with the FBI – and with others to pay bribes to Nuru consisting of cash, free meals and entertainment, equipment for Nuru’s ranch, and the prospect of a cut of future profits from expected City contracts.
Varela’s plea agreement detailed a scheme in which he and his co-conspirators focused on winning a lucrative DPW contract and its related Port of San Francisco lease to operate an asphalt recycling plant and a concrete plant on the Port’s land. The plea agreement describes that Nuru agreed, in exchange for cash and other valuables, to use his official position to get Varela and his co-conspirators’ proposal selected. Gilmartin arranged to compensate Nuru by asking an unnamed company to award a $100,000 contract to Hernandez and, in turn, Hernandez used the contract’s proceeds for Nuru. For his part, Nuru sent early drafts of San Francisco’s Request for Proposals for the project and other inside information to the conspirators to improve their likelihood of being selected. Nuru also regularly discussed the plans and inside information with Gilmartin and Hernandez over expensive restaurant dinners, always paid for by Gilmartin and ultimately totaling approximately $20,000.
The conspirators’ proposal was selected in September 2015. According to the plea agreement, Nuru continued to meet with the group to supply additional inside information during the expensive meals paid for by Gilmartin. At one of their meetings, Nuru requested a tractor for his ranch. Varela coordinated with Gilmartin and Hernandez to deliver the tractor to Nuru.
Nuru was arrested on federal bribery-related charges on January 27, 2020, before the negotiations to finalize the asphalt recycling plant agreements with DPW and the Port of San Francisco reached completion.
In a filed memorandum addressing Varela’s sentencing, the government argued that Varela’s conduct with Nuru was business as usual for Varela. The government asserted that Varela, whose business success had gained him a life of luxury including 50 acres in Napa, for years facilitated a casual culture of corruption, a culture that ultimately undermines the public’s faith in their government and the rule of law. Elaborating on the tractor bribe, the sentencing memorandum points out that the value of the new John Deere tractor, including its attachments, approximated $40,000. Varela lined up the purchase of the tractor and rushed to get it delivered to Nuru at Nuru’s ranch on February 18, 2019. The delivery led to Nuru to happily text “Work begins at the ranch” along with a photo of the tractor being unloaded at his ranch. The government, after outlining this and other acts of bribery, submitted a sentence recommendation of 30 months imprisonment.
This case is part of a larger federal investigation targeting public corruption in the City and County of San Francisco. To date, eleven individuals have been charged, including two high-ranking San Francisco public officials, Mohammed Nuru and Harlan Kelly. Multiple city contractors and facilitators have been charged. According to the charges earlier filed against Mohammed Nuru and others, Nuru allegedly took hundreds of thousands of dollars in bribes in cash, meals, and work on his vacation home from contractors who obtained San Francisco public contracts. Allegations in the complaint filed against Harlan Kelly assert he received thousands of dollars in airfare, meals, jewelry, and travel expenses, along with repair work on his house.
In addition to the prison term and fine, United States District Judge Orrick also sentenced the defendant to a three-year period of supervised release. Varela will begin serving his sentence on January 2022.
The case is being prosecuted by the Corporate and Securities Fraud section of the U.S. Attorney’s Office. The case is being investigated by the FBI.
Previously Deported Alien Charged with Illegal Re-Entry, Illegal Gun Possession, and Drug OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced a federal grand jury in Harrisburg charged Anthony Rodriguez-Ortiz, age 33, yesterday with illegal re-entry into the United States by a previously deported alien, felon in possession of a firearm, illegal alien in possession of a firearm, possessing with intent to distribute controlled substances, and distribution of controlled substances.
According to Acting United States Attorney Bruce D. Brandler, Rodriguez-Ortiz was previously deported from the United States to the Dominican Republic in December 2013. He is alleged to have illegally reentered the United States again sometime after December 2013 and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers. When encountered, he, as an illegal alien and convicted felon, was in possession of a firearm, and fentanyl. He also had sold fentanyl on two previous occasions.
This matter was investigated by Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Joanne M. Sanderson.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Rodriguez-Ortiz faces a maximum penalty of 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Postal Service Employee Admits Stealing Cell Phones from MailRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted stealing dozens of cell phones from mail that passed through a postal distribution center where he was employed, Acting U.S. Attorney Rachael A. Honig announced.
Kyle Terry, 36, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of theft of mail by a postal employee.
According to documents filed in this case and statements made in court:
Terry was employed by the U.S. Postal Service as a mail handle assistant at a national postal distribution center in Jersey City. From Nov. 1, 2017, to Jan. 28, 2018, Terry stole 39 cell phones having a total approximate value of $35,000 from mail that passed through that distribution center.
The theft of mail by a postal employee charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 17, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
Pittsburgh Fentanyl Dealer Off to Prison for Six YearsRead the Press Release
PITTSBURGH, PA – A former Pittsburgh resident has been sentenced in federal court to six years’ imprisonment on his conviction for violating the federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Nora B. Fischer imposed the sentence on Daniel Curtis Simon, 35, formerly of Pittsburgh, PA, who pleaded guilty in June 2021 to distributing a quantity of fentanyl.
According to information presented to the Court, on December 1, 2017, Mr. Simon distributed over 20 grams of fentanyl along with boxes of “stamp bags,” which are commonly used to package fentanyl for redistribution, to an informant working with agents from the Pennsylvania State Police and the Drug Enforcement Administration. The Court was further advised that the quantity of fentanyl Mr. Simon distributed was sufficient to fill over 1,000 individual dosage units of fentanyl.
Following his release from incarceration, Mr. Simon will be under the supervision of the United States Probation Office for six years. Mr. Simon remains in the custody of the United States Marshals pending transfer to a federal Bureau of Prisons facility.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation leading to the successful prosecution of Simon.
Philadelphia Man Sentenced to over 8 Years in Prison for Shooting a Firearm into a Residential Neighborhood in Southwest PhiladelphiaRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Salim Davis, a/k/a “Leem,” 36, of Philadelphia, PA was sentenced eight years and four months in prison and five years of supervised release by United States District Court Judge Gene E.K. Pratter for illegally possessing a firearm and shooting it into a residential neighborhood.
Nearly two years ago in September 2019, the defendant was convicted at trial of being a felon in possession of a firearm, possession of a firearm in connection with a drug trafficking offense, possession with intent to distribute a controlled substance, and aiding and abetting the making of a false statement to a federal firearms licensee. The jury heard evidence that a Philadelphia Police Inspector was off-duty driving his unmarked police car in the area of 2500 Island Avenue when he heard gunshots. Minutes later, he observed Davis, who was wearing a black jacket, and another man, walking in an alleyway near the officer’s car, both carrying firearms. The Inspector followed the suspects and commanded that they stop and put their hands up. Davis failed to comply, walked away, and discarded his black jacket. Police eventually caught up with Davis, placed him in custody, and conducted a pat down. They found over $1,000 cash and a bottle containing 70+ Xanax pills. After picking up the discarded black jacket, officers recovered a Smith & Wesson, .40 caliber, semi-automatic handgun loaded with 10 live rounds. They also recovered four bullet cartridge cases from the scene which were found to be from the defendant’s weapon.
“If you commit a federal firearms offense, our Office, together with our law enforcement partners, will hold you accountable,” said Acting U.S. Attorney Williams. “We are nearly six months into our ‘All Hands On Deck’ initiative; six months of working with our law enforcement partners nearly around the clock to put criminals like Davis behind bars where they can no longer contribute to the violence on the streets of our city.”
“ATF, along with our law enforcement partners, will continue to do everything in our power to take guns out of the hands of violent felons and disrupt violent gun crime in our community,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Today’s sentence is a small victory in the perpetual battle against gun violence and should send a clear message to those criminals who endanger our citizens.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It was tried by Assistant United States Attorney Katherine Driscoll, and was handled post-trial by Assistant United States Attorney Michael Miller.
Pennsylvania Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
WASHINGTON - A Pennsylvania man pleaded guilty today to one count of attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Mustafa Mousab Alowemer, 23, of Pittsburgh pleaded guilty to one count of attempting to provide material support to ISIS in relation to his plan to attack a church in Pittsburgh.
“The defendant, motivated by ISIS’s call to violence and hate, plotted a terrorist attack targeting a church in Pittsburgh,” said Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division. “With today’s guilty plea, he will be held accountable for his crimes. The Department of Justice is committed to identifying, disrupting and holding accountable individuals who seek to engage in such attacks. I commend the agents, analysts and prosecutors who identified the threat posed by this defendant and took action to protect the public from his plans.”
“Inspired by ISIS, Mustafa Alowemer devised and intended to carry out a deadly attack on a house of worship and its congregation,” said Acting U.S. Attorney Stephen R. Kaufman for the Western District of Pennsylvania. “If not for the tireless, multi-faceted investigation by the FBI and our partner agencies, the true depth of his determination to commit violence in the name of ISIS may not have been exposed until his deadly plans were achieved.”
“The guilty plea today by Mustafa Alowemer leaves no question about his intention to commit an act of terrorism against a place of worship,” said Special Agent in Charge Mike Nordwall of the FBI’s Pittsburgh Field Office. “Mr. Alowemer will now face the consequences of his elaborate plan to inflict harm on innocent people. I’m proud of FBI Pittsburgh and all of the personnel who worked countless hours to protect the community, and I want to thank all of the agencies that participate in the FBI’s Joint Terrorism Task Force. Together, we combine our resources to identify and disrupt threats to protect our communities and the nation.”
According to court documents, Alowemer plotted to bomb a church located on the north side of Pittsburgh using an explosive device. His stated motivation to conduct such an attack was to support the cause of ISIS and to inspire other ISIS supporters in the United States to join together and commit similar acts in the name of ISIS. Alowemer also targeted the church to “take revenge for our [ISIS] brothers in Nigeria.” Alowemer was aware that numerous people in the proximity of the church could be killed by the explosion.
In furtherance of the plot to bomb the church, in May 2019, Alowemer distributed multiple instructional documents related to the construction and use of explosives and improvised explosive devices (IEDs) to an individual Alowemer believed to be a fellow ISIS supporter, but who was in fact an FBI employee. Alowemer distributed these documents with the intent that the information be used in the assembly of a destructive device and in furtherance of conducting an attack in support of ISIS. In or around June 2019, Alowemer purchased several items, including nails and acetone (nail polish remover) with the belief that they were necessary to assemble a destructive device and with the intention they be used to construct the explosives that would be detonated in the vicinity of the church.
Between April 16 and June 11, Alowemer met four times in person with an FBI Undercover Employee (UCE) and/or an FBI Confidential Human Source (CHS). At the June 11 meeting with the UCE and CHS, Alowemer provided additional details about the bomb plot and provided the materials, including boxes of nails, he had purchased for construction of the device. Alowemer provided printed copies of detailed Google satellite maps, which included hand-written markings identifying the church and routes of arrival and escape. Alowemer also wrote and provided a 10-point handwritten plan outlining details related to his plot to personally deliver explosives in a backpack. Alowemer expressed a desire to meet one more time to conduct planning and coordination prior to carrying out the attempted bombing in July 2019. That meeting was later scheduled for June 19 in the Pittsburgh area, at which time Alowemer was arrested.
Alowemer is scheduled to be sentenced on Jan. 26, 2022. He faces a maximum of 20 years in prison, a fine of $250,000.00, or both, and a lifetime term of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Pending sentencing, the court ordered that Alowemer remain detained in the custody of the U.S. Marshals.
Assistant U.S. Attorney Soo C. Song of the Western District of Pennsylvania and Trial Attorney Brenda Sue Thornton of the National Security Division’s Counterterrorism Section are prosecuting this case on behalf of the government.
The FBI’s Joint Terrorism Task Force members who were directly involved in this investigation include: FBI, U.S. Immigration and Customs Enforcement (ICE), U.S. Citizen and Immigration Services (USCIS), Homeland Security Investigations (HSI), IRS – Criminal Investigation, U.S. Secret Service, U.S. Postal Inspection Service, Pennsylvania State Police, Allegheny County Police Department, Pittsburgh Bureau of Police, Allegheny County Port Authority Police, Allegheny County Probation, University of Pittsburgh Police Department and UPMC Police Security.
Pennsylvania Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
A Pennsylvania man pleaded guilty today to one count of attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Mustafa Mousab Alowemer, 23, of Pittsburgh pleaded guilty to one count of attempting to provide material support to ISIS in relation to his plan to attack a church in Pittsburgh.
“The defendant, motivated by ISIS’s call to violence and hate, plotted a terrorist attack targeting a church in Pittsburgh,” said Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division. “With today’s guilty plea, he will be held accountable for his crimes. The Department of Justice is committed to identifying, disrupting and holding accountable individuals who seek to engage in such attacks. I commend the agents, analysts and prosecutors who identified the threat posed by this defendant and took action to protect the public from his plans.”
“Inspired by ISIS, Mustafa Alowemer devised and intended to carry out a deadly attack on a house of worship and its congregation,” said Acting U.S. Attorney Stephen R. Kaufman for the Western District of Pennsylvania. “If not for the tireless, multi-faceted investigation by the FBI and our partner agencies, the true depth of his determination to commit violence in the name of ISIS may not have been exposed until his deadly plans were achieved.”
“The guilty plea today by Mustafa Alowemer leaves no question about his intention to commit an act of terrorism against a place of worship,” said Special Agent in Charge Mike Nordwall of the FBI’s Pittsburgh Field Office. “Mr. Alowemer will now face the consequences of his elaborate plan to inflict harm on innocent people. I’m proud of FBI Pittsburgh and all of the personnel who worked countless hours to protect the community, and I want to thank all of the agencies that participate in the FBI’s Joint Terrorism Task Force. Together, we combine our resources to identify and disrupt threats to protect our communities and the nation.”
According to court documents, Alowemer plotted to bomb a church located on the north side of Pittsburgh using an explosive device. His stated motivation to conduct such an attack was to support the cause of ISIS and to inspire other ISIS supporters in the United States to join together and commit similar acts in the name of ISIS. Alowemer also targeted the church to “take revenge for our [ISIS] brothers in Nigeria.” Alowemer was aware that numerous people in the proximity of the church could be killed by the explosion.
In furtherance of the plot to bomb the church, in May 2019, Alowemer distributed multiple instructional documents related to the construction and use of explosives and improvised explosive devices (IEDs) to an individual Alowemer believed to be a fellow ISIS supporter, but who was in fact an FBI employee. Alowemer distributed these documents with the intent that the information be used in the assembly of a destructive device and in furtherance of conducting an attack in support of ISIS. In or around June 2019, Alowemer purchased several items, including nails and acetone (nail polish remover) with the belief that they were necessary to assemble a destructive device and with the intention they be used to construct the explosives that would be detonated in the vicinity of the church.
Between April 16 and June 11, Alowemer met four times in person with an FBI Undercover Employee (UCE) and/or an FBI Confidential Human Source (CHS). At the June 11 meeting with the UCE and CHS, Alowemer provided additional details about the bomb plot and provided the materials, including boxes of nails, he had purchased for construction of the device. Alowemer provided printed copies of detailed Google satellite maps, which included hand-written markings identifying the church and routes of arrival and escape. Alowemer also wrote and provided a 10-point handwritten plan outlining details related to his plot to personally deliver explosives in a backpack. Alowemer expressed a desire to meet one more time to conduct planning and coordination prior to carrying out the attempted bombing in July 2019. That meeting was later scheduled for June 19 in the Pittsburgh area, at which time Alowemer was arrested.
Alowemer is scheduled to be sentenced on Jan. 26, 2022. He faces a maximum of 20 years in prison, a fine of $250,000.00, or both, and a lifetime term of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Pending sentencing, the court ordered that Alowemer remain detained in the custody of the U.S. Marshals.
Assistant U.S. Attorney Soo C. Song of the Western District of Pennsylvania and Trial Attorney Brenda Sue Thornton of the National Security Division’s Counterterrorism Section are prosecuting this case on behalf of the government.
The FBI’s Joint Terrorism Task Force members who were directly involved in this investigation include: FBI, U.S. Immigration and Customs Enforcement (ICE), U.S. Citizen and Immigration Services (USCIS), Homeland Security Investigations (HSI), IRS – Criminal Investigation, U.S. Secret Service, U.S. Postal Inspection Service, Pennsylvania State Police, Allegheny County Police Department, Pittsburgh Bureau of Police, Allegheny County Port Authority Police, Allegheny County Probation, University of Pittsburgh Police Department and UPMC Police Security.
Pennsylvania Man Admits Conspiring to Distribute 430 Kilograms of KhatRead the Press Release
NEWARK, N.J. – A Pennsylvania man today admitted to conspiring to distribute 430 kilograms of khat imported through Newark International Airport, Acting U.S. Attorney Rachael A. Honig announced.
Azeez Adebari, 46, of Harrisburg, Pennsylvania, pleaded guilty before U.S. District Judge Brian Martinotti in Newark federal court to an information charging him with one count of conspiring to distribute and to possess with intent to distribute a quantity of a mixture containing cathinone and cathine.
According to documents filed in this case and statements made in court:
On April 21, 2021, U.S. Customs and Border Protection (CBP) officers identified a freight container suspected of containing khat that had arrived by air at Newark International Airport. Khat is a flowering shrub that is abused for its stimulant-like effects and has no accepted medical use in the United States. Khat contains two active ingredients that are controlled substances: cathinone, a Schedule I controlled substance, and cathine, a Schedule II controlled substance.
CBP officers determined that the shipment contained approximately 430 kilograms gross weight of khat. The shipping manifest and other customs documentation identified the contents of the shipment as clothing, and ground melon and pepper, among other things. On May 3, 2021, Adebari, who was listed as the consignee on the shipment, arrived at Newark Airport to pick up the khat shipment and was arrested.
The charge to which Adebari pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Jan. 27, 2022.
Acting U.S. Attorney Honig credited special agents of the Department of Homeland, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and officers of CBP, under the direction of Marty Raybon, Acting Director of Field Operations, New York Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the Organized Crime & Gangs Unit in Newark.