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4 October 2021
Federal Indictment Charges Two Men and A Woman for Mail Theft and Bank Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A federal indictment was unsealed in court today, charging two men and a woman for their involvement in a mail theft and bank fraud scheme, in which more than $2 million in stolen business checks were deposited into straw bank accounts, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to allegations in the indictment, beginning in November 2020, Terrell Devon Freeman, 34, Joshua MacDavid Monteith, 31, and Yanalise Simone Hodge, 22, all of Charlotte, engaged in a bank fraud scheme involving stolen mail. As alleged in the indictment, the defendants and their co-conspirators stole business checks and other mail from U.S. Postal Service collection boxes and business mailboxes in Charlotte and elsewhere, and cashed the stolen checks using fraudulent identifications and straw bank accounts before the victim banks detected the fraud. The indictment alleges that the defendants and their co-conspirators executed the fraud scheme in North Carolina, South Carolina, Georgia and Virginia and defrauded at least seven financial institutions. The indictment further alleges that the total face value of the business checks stolen in the scheme was over $2 million.
The federal indictment was unsealed today, following Freeman’s arrest and scheduled court appearance in U.S. District Court in Atlanta, Georgia. Monteith and Hodge appeared before U.S. Magistrate Judge David S. Cayer last week, following their arrest by law enforcement in Charlotte.
The defendants are each charged with one count of bank fraud conspiracy and multiple individual counts of bank fraud, which carry a maximum penalty of 30 years in prison and a $1 million fine. Freeman and Hodge are also charged with aggravated identity theft, which carries a potential two-year prison sentence, consecutive to any other term imposed.
The charges contained in the indictment are allegations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement Acting U.S. Attorney Stetzer thanked USPIS and CMPD for their investigation of the case.
Assistant U.S. Attorney William T. Bozin, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Fayetteville Cocaine Trafficker Sentenced to 15 YearsRead the Press Release
NEW BERN, N.C. – A Fayetteville man was sentenced today to 180 months in prison for a cocaine distribution conspiracy dating back to 2010.
According to court documents and other information presented in court, Dominique Hope, 33, was a kilogram level cocaine dealer in the Fayetteville area for almost a decade. During that time, investigators also received information indicating that Hope was involved in several shootings and robberies of other drug distributors and was not charged in these instances because the victims elected not to cooperate with law enforcement. On June 28, 2019, investigators seized cocaine, drug packaging material, and four firearms from Hope’s residence.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Fayetteville Police Department, Cumberland County Sheriff’s Office, Federal Bureau of Investigation, and Drug Enforcement Administration investigated the case and Assistant U.S. Attorney Caroline Webb 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. 5:20-CR-140-FL.
Department of Justice Awards over $21 Million in Grants to Enhance Victim Services and Support Public Safety Efforts in NevadaRead the Press Release
LAS VEGAS, Nev. – Acting U.S. Attorney Christopher Chiou for the District of Nevada announced today that the Department of Justice has recently awarded $21,997,467 in grant funding to improve services for crime victims and to support state, local, and tribal public safety across Nevada.
“By providing additional resources for victim service providers in Nevada, these grants will help secure victims’ legal rights and get survivors on the road to recovery,” said Acting U.S. Attorney Chiou. “The grants also reflect the Department of Justice’s steadfast commitment to protecting public safety and reducing crime in our communities and homes.”
Since mid-September 2021, Nevada entities have been awarded the following grants from the Office of Justice Programs (OJP) and its components:
- Bureau of Justice Assistance:
- The Nevada Department of Public Safety was awarded: (a) $2,174,534, as part of the Edward Byrne Memorial Justice Assistance Grant Program; (b) $21,783, as part of the Prison Rape Elimination Act Reallocation Funds; and (c) $358,297, as part of the Residential Substance Abuse Treatment for State Prisoners Program Formula Grant.
- The State of Nevada was awarded $36,901, as part of the John R. Justice Program Formula Grant Solicitation.
- Office for Victims of Crime:
- Noah’s Animal House Foundation in Reno was awarded $500,000, as part of the Emergency and Transitional Pet Shelter and Housing Assistance Grant Program.
- The Inter-Tribal Council of Nevada was awarded $3,082,025, as part of the Tribal Victim Services Set-Aside Formula Grant Program.
- The Division of Child & Family Services was awarded: (a) $10,054,895, as part of the Victims of Crime Act (VOCA) Victim Assistance Formula Grant; and (b) $1,119,000, as part of the VOCA Victim Compensation Formula Grant.
Further, Nevada entities have been awarded the following grants from the Office on Violence Against Women (OVW):
- The National Council of Juvenile and Family Court Judges was awarded $2,600,000, as part of the Training and Technical Assistance Initiative Program.
- The Washoe Tribe of Nevada & California was awarded $600,000, as part of the Grants to Indian Tribal Governments Program.
- The Pyramid Lake Paiute Tribe was awarded $900,000, as part of the Grants to Indian Tribal Governments Program.
- The Nevada Coalition to End Domestic and Sexual Violence was awarded $270,782, as part of the State and Territory Domestic Violence and Sexual Assault Coalitions Grant Program.
- The Nevada Attorney General’s Office was awarded $279,250, as part of the Enhanced Training and Services to End Abuse in Later Life Grant Program.
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OJP provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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Creve Coeur pharmacy and owner agree to pay $1,507,808.50 to resolve lawsuit alleging dispensing of controlled substances with no legitimate medical purposeRead the Press Release
ST. LOUIS – The United States has reached a civil settlement with Olive Street Pharmacy, LLC (Olive Street) and pharmacy technician Irina Shlafshteyn (Shlafshteyn) resolving a civil complaint bringing claims under the False Claims Act (FCA) and Controlled Substances Act (CSA) for damages, statutory penalties, and injunctive relief related to the unlawful dispensing of controlled substances, including controlled substances that were submitted to Medicaid or Medicare for reimbursement. As part of the settlement, Olive Street and Shlafshteyn agreed to pay $1,507,808.50, an amount that was based in part on their ability to pay.
According to the civil complaint filed by the United States, Olive Street, a retail pharmacy located in Creve Coeur, Missouri, and Shlafshteyn, its 25 percent owner and managing employee, repeatedly dispensed prescriptions for controlled substances while disregarding warning signs of diversion, or “red flags,” indicating the prescriptions were not legitimate. The United States alleged that the types of red flags that Olive Street and Shlafshteyn ignored included clear instances of tampering with written prescriptions; dangerous combinations of drugs commonly sought after for recreational purposes; and amounts of opioids that exceeded CDC guidance by as much as 17.5 times the recommended maximum daily dosage.
In the complaint, the United States further accused Olive Street of routinely dispensing prescriptions for Subsys, an oral fentanyl spray, which is subject to heightened FDA restrictions and indicated only for opioid-tolerant patients experiencing breakthrough pain due to cancer. The United States contended that Olive Street and Shlafshteyn knowingly dispensed high dosages of Subsys to patients who did not qualify for the drug, and that the vast majority of the Subsys Olive Street dispensed was prescribed by Philip Dean, M.D. Dean, a Warrenton, Missouri neurologist, pleaded guilty to illegally distributing prescription opioids in 2018, including to women with whom he had lived and with whom he had had personal relationships.
The United States alleged that even though Shlafshteyn knew Dean was having intimate relationships with at least one of the women for whom he was prescribing controlled substances, Shlafshteyn and others at her direction continued to dispense Dean’s controlled substance prescriptions to that patient and to other patients of Dean. Further, according to the civil complaint, as the managing employee of Olive Street, Shlafshteyn had the control and authority to effect compliance with the FCA and CSA.
According to the settlement agreement, effective September 30, 2021, Shlafshteyn surrendered her Missouri pharmacy technician license and Olive Street terminated its enrollment in the Transmucosal Immediate Release Fentanyl Risk Evaluation and Mitigation Strategy (TIRF REMS) Program, the FDA-mandated program that had allowed Olive Street to dispense immediate-release fentanyl drugs like Subsys. The parties further agreed to enter into a consent decree of permanent injunction prohibiting Shlafshteyn from participating in the dispensing of controlled substances or being employed by any establishment that does so, prohibiting Olive Street from seeking enrollment in the TIRF REMS Program, and detailing many additional specific parameters limiting the circumstances under which Olive Street is permitted to continue dispensing controlled substances.
“Medical professionals have the legal obligation to ensure the dispensing of prescriptions are for legitimate medical purposes,” said Inez Davis, the Drug Enforcement Administration’s Diversion Program Manager for the states of Missouri and Kansas, and southern Illinois. “In this case, the pharmacy abandoned its corresponding responsibility and ignored the clear signs that powerful medications, like oral fentanyl spray, were being prescribed far beyond the recommended guidance. This settlement sends a message that DEA will not accept actions that put people’s lives at risk.”
Under the settlement agreement, Shlafshteyn is excluded from participating in the federal healthcare programs for a period of 10 years, and Olive Street is bound by the terms of a corporate integrity agreement governing its ability to continue participating in the federal programs.
“Health care providers who unlawfully dispense controlled drugs risk the health of their patients and pose a threat to society,” said Curt L. Muller, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General. “We will continue to work with our law enforcement partners to protect the integrity of federal health programs and hold accountable individuals who endanger beneficiaries.”
“The Missouri Attorney General’s Medicaid Fraud Control Unit aids in conducting complex investigations and prosecutions to ensure that those who game the Medicaid system for personal gain are held accountable,” added Missouri Attorney General Eric Schmitt. “We’re proud of our work in this case, and our work across the state to hold bad actors accountable and save taxpayer money.”
The Office of Inspector General of the Department of Health and Human Services, Drug Enforcement Administration, Federal Bureau of Investigation and the Missouri Attorney General’s Medicaid Fraud Control Unit investigated the case. Assistant United States Attorney Amy Sestric handled the case.
Convicted Rapist and Armed Robber Who Assumed Another’s Identity for More Than 40 Years Pleads Guilty to Federal ChargesRead the Press Release
Tampa, Florida – Douglas Edward Bennett (77, Clearwater) has pleaded guilty to passport fraud, aggravated identity theft, and possession of a firearm by a convicted felon. He faces a maximum penalty of 22 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in 1975 a Connecticut jury convicted Bennett of several violent felony and sex offenses, including robbery, kidnapping, sexual contact, rape, and two counts of deviate sexual intercourse, pursuant to which he was sentenced to 9 to 18 years in state prison. After his conviction, Bennett was permitted to remain out of custody pending appeal. But after his conviction was affirmed, Bennett never surrendered to begin serving his sentence, and instead assumed the identity of Gordon Ewen, under which he lived for more than 40 years. According to Massachusetts death records, the real Gordon Ewen died in 1945.
Around July 2016, Bennett submitted a passport application that used Gordon Ewen’s name, date of birth, and Social Security number and failed to disclose Bennett’s true identity.
On November 4, 2020, Bennett was arrested on the federal charges and on a warrant from the State of Connecticut. A fingerprint comparison confirmed that he was the same person convicted in Connecticut in 1975. That same day, federal agents executed a search warrant at Bennett’s house and discovered handwritten notes detailing the first time Bennett used Ewen’s identity and details on how he originally obtained Ewen’s identification documents. Additionally, inside Bennett’s home, investigators discovered and seized five firearms and nearly five thousand rounds of ammunition. As a convicted felon, Bennett is prohibited from possessing firearms or ammunition.
While in jail, family members visited Bennett. During a video visitation, Bennett stated to a family member, “I would have explained to him [the Federal Judge] the entirety of things, said ‘yes I started out as Douglas Bennett, but Douglas Bennett ceased to exist in 1977…and from that time forward, I’ve spent forty-three years being Gordon Ewen.’”
This case was investigated by the U.S. Department of State’s Diplomatic Security Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pinellas County Sheriff’s Office, and the Social Security Administration – Office of Inspector General, with substantial support from the Department of State’s National Passport Center, the U.S. Marshals Service, and the Connecticut U.S. Marshals Task Force. It is being prosecuted by Assistant United States Attorney Erin Claire Favorit.
Columbus man charged in narcotics conspiracy also accused of forcing addicts into prostitution through violenceRead the Press Release
COLUMBUS, Ohio – Six additional defendants and new charges involving sex trafficking have been added to a case pending against a Columbus man who allegedly provided individuals cocaine and fentanyl in exchange for criminal acts.
Court documents allege Ricco Lamonte Maye, 39, of Columbus, was the head of a loose organization of individuals engaged in various types of criminal activity, including drug trafficking, sex trafficking, and mail and wire fraud. Maye allegedly used threats, violence and manipulation of drug dependencies to ensure individuals continued to carry out his criminal schemes.
A federal grand jury has now charged 10 total defendants with crimes related to distributing bulk quantities of fentanyl, crack, cocaine and methamphetamine; a mail and wire fraud conspiracy involving fraudulent Pandemic Unemployment Assistance; a conspiracy to threaten potential witnesses; and an alleged conspiracy in which women were sex trafficked to earn drug money.
Maye was originally charged by indictment in November 2020 and has remained in federal custody since. A second superseding indictment was unsealed today.
According to the second superseding indictment, beginning in at least 2018, Maye’s drug trafficking organization primarily distributed narcotics to addicts in street-level quantities. It is alleged he regularly purchased narcotics from supply sources both inside and outside of Ohio and used addicts to transport the drugs back to Columbus for resale.
Court documents say Maye would accept stolen goods, gift cards, Social Security numbers and other items in addition to cash as payment for the drugs.
The indictments detail that Maye and other defendants filed for and received more than $30,000 in fraudulent Pandemic Unemployment Assistance. Maye allegedly kept all or a portion of the others’ benefits.
It is alleged that Maye initially gave drugs to women for free and later required them to earn drug money through prostitution. The second superseding indictment details that Maye provided the means for the women to engage in prostitution – frequently obtaining hotel rooms, having the women driven to the hotels, providing cell phones, and directing Internet prostitution ads. Maye allegedly collected the prostitution proceeds, enforced specific rules on the women and punished the women through physical violence.
Finally, it is alleged that, after his initial arrest on federal charges in November 2020, Maye attempted to obstruct the ongoing investigation into his sex trafficking and fraud activities.
Specifically, according to court documents, Maye consistently made phone calls to various co-conspirators and potential witnesses in an attempt to determine whether individuals had spoken to or otherwise cooperated with law enforcement. In these communications, he allegedly directed co-conspirators to cause physical harm to potential witnesses against him or directly threatened such potential witnesses with physical harm. Maye allegedly directed some co-defendants to use his Facebook account to reach and threaten others.
For example, in November 2020, Maye allegedly directed someone to mix rat poison into fentanyl and give it to a co-defendant he believed could be cooperating with law enforcement.
Defendants charged in this case include:
Name
Also Known As
Age
City
Ricco L. Maye
Roscoe
39
Columbus
Airrika N. Anthony
33
Columbus
Nicole L. Groves
Nikki
32
Columbus
Kevin E. Pearson
58
Columbus
Jasmine R. Weather
Jazmine, Jazmyne, Jaz
23
Columbus
Jacob M. Capan
Jake
28
Pickerington
Danielle C. Ferguson
Dani
31
Columbus
Vincent N. Morrow
V
39
Columbus
Ashleigh A. Davis
Snowflake
28
Chillicothe
Victor Blake
Slim
60
Columbus
The drug conspiracy charged in this case is punishable by a minimum of 10 years and up to life in prison. The sex trafficking by force conspiracy charged in this case is punishable by at least 15 years and up to life in prison. Conspiracy to commit wire and mail fraud is punishable by up to 20 years in prison. Conspiring to tamper with a witness carries a potential penalty of up to 30 years in prison. Obstructing law enforcement is punishable by up to 25 years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost; the U.S. Department of Labor Office of Inspector General and Columbus Police Chief Elaine Bryant announced the charges. Assistant United States Attorneys Kevin W. Kelley and Heather A. Hill 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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Charleston Man Sentenced to 10 Years in Federal Prison for Methamphetamine DistributionRead the Press Release
CHARLESTON, W.Va. – Dante Williams, 24, of Charleston, was sentenced to 120 months in federal prison for distribution of 50 grams or more of methamphetamine.
According to court documents, Williams sold two ounces of methamphetamine to a confidential informant on January 14, 2021. Williams arranged to first meet the informant in the parking lot of the Family Dollar store on Charleston’s West Side, but then directed the informant to follow him to Swinburn Street where the transaction took place. Williams also admitted that he fronted the informant an additional two ounces of methamphetamine for which Williams would be paid later.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT), the U.S. Marshals Service and the West Virginia State Police.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Monica Coleman handled the prosecution.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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. 2:21-cr-00032 (Williams, et al.).
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Camden Man Admits Possession with Intent to Distribute FentanylRead the Press Release
CAMDEN, N.J. – A Camden man today admitted to possessing with intent to distribute fentanyl, Acting U.S. Attorney Rachael A. Honig announced.
Desmund M. Walker, 36, pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with possession with intent to distribute fentanyl.
According to documents filed in this case and statements made in court:
On May 16, 2020, patrol officers from the Camden County Police Department encountered Walker in the vicinity of South 8th and Thurman streets in Camden. Walker fled from the officers through Robert B. Johnson Park, was apprehended, and found to be in possession of 17.67 grams of fentanyl wrapped in 93 white wax folds.
The maximum penalty for possession with intent to distribute fentanyl is 20 years in prison and a $1 million fine. Sentencing is scheduled for Feb. 10, 2022.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s plea. She also thanked the Camden County Police Department, under the direction of Chief Gabriel Rodriguez, for its assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
Camden County Man Admits Role in Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man today admitted defrauding a victim of almost $2 million in connection with a fraudulent investment scheme, Acting U.S. Attorney Rachael A. Honig announced.
Frank N. Tobolsky, 59, of Cherry Hill, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to one count of wire fraud.
According to documents filed in this case and statements made in court:
Beginning in 2013, Tobolsky raised money from a victim, purportedly as an investment that would loan money to season ticket holders who owned seat licenses for the Philadelphia Eagles. The seat licenses would be used as collateral to secure the loans. The victim sent Tobolsky approximately $2.4 million to invest in the purported business venture. The money was not used for loans to season ticket holders. Instead, Tobolsky used a substantial portion on personal expenses.
The charge of wire fraud to which Tobolsky pleaded guilty carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross loss to any victim or gain to Tobolsky, whichever is greatest. Sentencing is scheduled for Feb. 10, 2022.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Damon Wood, with the investigation leading to today’s guilty plea. She also thanked the U.S. Attorney’s Office for the District of Delaware for assisting in the investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender and Special Assistant U.S. Attorney John Crockett of the U.S. Attorney’s Office in Camden.
Bridgeport Man Admits Participating in Gang-Related ShootingsRead the Press Release
DIOMIE BLACKWELL, also known as “Yamo,” 24, of Bridgeport, pleaded guilty today to a racketeering offense stemming from his participation in gang-related shootings, including a shooting in front of a state courthouse in Bridgeport in January 2020.
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. Blackwell 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. From approximately 2017 until August 2020, GHB/Hotz members were 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, Blackwell 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 January 27, 2020, he and others attempted to kill members and associates of the East End gang in a brazen afternoon shooting in front of a Bridgeport courthouse. At 12:11 p.m. on that date, Bridgeport Police responded to the area of 172 Golden Hill Street in Bridgeport after a Shot Spotter activation detected approximately 20 shots being fired in front of the state courthouse located there. Upon arrival, investigators discovered that four victims had been shot while sitting inside a black Chevrolet Impala. One victim was shot in the side of his chest and was left paralyzed and a second victim sustained multiple gunshot wounds to his back, shoulder and wrist. The victims’ vehicle had approximately 23 entry bullet holes in the driver’s side and windshield area.
Blackwell also appears in YouTube videos and in social media posts, where firearms are present, promoting the gang.
Blackwell 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. He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on December 28, 2021, at which time he faces a maximum term of imprisonment of 20 years.
Blackwell has been detained since August 6, 2020.
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. If a group member elects to engage in gun violence, the focused attention of federal, state and local law enforcement will be directed at that entire group.
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.
Beverlywood Man Pleads Guilty to Securities Fraud, Admitting Massive Ponzi that Falsely Claimed to License Foreign Film RightsRead the Press Release
LOS ANGELES – A Los Angeles man pleaded guilty this afternoon to a federal securities fraud charge and admitted operating a Ponzi scheme that raised at least $650 million with bogus claims that investor money would be used to acquire licensing rights to films that HBO and Netflix purportedly had agreed to distribute abroad.
Zachary Joseph Horwitz, 34, who resides in the Beverlywood neighborhood of Los Angeles, admitted his fraudulent scheme has caused more than $230 million in losses.
Horwitz pleaded guilty before United States District Judge Mark C. Scarsi, who scheduled a sentencing hearing for January 3, 2022. When he is sentenced, Horwitz will face a statutory maximum sentence of 20 years in federal prison.
Over the course of about five years, Horwitz used his company – 1inMM Capital LLC, which purported to be a film distribution company – to solicit investors with false claims their money would be used to purchase regional distribution rights to films and then would generate profits by licensing the rights to online platforms such as Netflix and HBO.
The scheme began in 2014, when groups of private investors began entering into hundreds of six- and 12-month promissory notes with 1inMM Capital based on Horwitz’s statements. The funds supplied under each note were supposed to provide money for 1inMM Capital to acquire the rights to a specific film. The promissory notes guaranteed a specified payment on a specified maturity date, as well as the specified amount to be paid at maturity, which included investment returns ranging from 25 percent to 45 percent.
“However, as [he] then knew, his representations concerning 1inMM Capital’s business activities and the promissory notes themselves were false and deceptive because 1inMM Capital generally did not and would not acquire or possess the film distribution rights for the films specified as collateral in the promissory notes, and 1inMM Capital did not and would not enter into any distribution agreements with the online streaming platforms for these specified films…and the purported copies of the distribution agreements were fake,” Horwitz admitted in his plea agreement.
Instead of using the funds to acquire films and arrange distribution deals, Horwitz operated 1inMM Capital as a Ponzi scheme, using victims’ money to repay earlier investors and to fund his own lifestyle, including the purchase of his $6 million Beverlywood residence.
Investors started to complain after 1inMM Capital began defaulting on notes in 2019, court documents states. In response, Horwitz “falsely reassured investors that any missed payments on promissory notes were caused by the actions of the online streaming platforms, and that payment on the notes would resume,” he admitted in the plea agreement. To support these false claims, Horwitz sent the investors emails and text messages he falsely claimed had been sent to him by representatives of the online streaming platforms.
Horwitz defrauded five major groups of private investors, but these entities derived funds from more than 250 sub-investors. By late 2019, 1inMM Capital began defaulting on all of its outstanding promissory notes, according to the plea agreement, in which Horwitz admits that he owes investors more than $230 million and that his scheme has caused substantial financial hardship to at least five investors.
The FBI is investigating this matter. The U.S. Securities and Exchange Commission provided substantial assistance.
Assistant United States Attorneys Alexander B. Schwab and David H. Chao of the Major Frauds Section are prosecuting this case.
Berkeley County man sentenced for role in drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Medo Hallack, of Inwood, West Virginia, was sentenced today to 70 months of incarceration for his role in a drug conspiracy that spanned several states, Acting U.S. Attorney Randolph J. Bernard announced.
Hallack, 32, pleaded guilty in May 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Hydrochloride.” Hallack admitted to working with another to sell cocaine hydrochloride, also known as “coke,” in August and September 2019 in Berkeley County. Hallack received a sentencing enhancement for firearms possession and violence. During the execution of search warrant for drug activity, he allegedly fired at officers and was engaged in a 45-minute standoff with law enforcement.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF 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.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Related case here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine
Barge Company Will Preserve 649 Acres of Habitat and Pay over $2 Million for Injuries to Natural Resources Resulting from its Oil Spill in the Mississippi River near New OrleansRead the Press Release
Jeffersonville, Indiana-based American Commercial Barge Line LLC (American Commercial) has agreed to acquire and preserve 649 acres of woodland wildlife habitat near New Orleans, Louisiana, and pay over $2 million in damages, in addition to $1.32 million previously paid for damage assessment and restoration planning costs, under the Oil Pollution Act (OPA) and the Louisiana Oil Spill Prevention and Response Act (OSPRA), to resolve federal and State claims for injuries to natural resources resulting from an oil spill from one of its barges.
The United States and Louisiana concurrently filed a civil complaint with a proposed consent decree. The complaint seeks damages and costs under OPA and OSPRA for injuries to natural resources resulting from American Commercial’s July 2008 discharge of approximately 6,734 barrels (282,828 gallons) of No. 6 fuel oil into the Mississippi River upriver of New Orleans. The complaint alleges that the spill resulted from a collision that occurred when the American Commercial tug Mel Oliver, which was pushing a barge upriver, veered directly in front of the MV Tintomara, an ocean-going tanker ship sailing downriver. The oil spill spread more than 100 miles downriver and covered over 5,000 acres of shoreline habitat. The oil spill caused significant impact and injuries to aquatic habitats within the Mississippi River and along its shoreline, as well as to birds and other wildlife. The oil spill forced the closure of the river from River Mile Marker 98 (just upriver from New Orleans) to the Southwest Pass Sea Buoy, from July 23, 2008 until July 29, 2008. American Commercial, the Coast Guard, and the State were involved in extensive response and cleanup efforts, and American Commercial has cooperated with the federal and State trustees in the assessment of injuries to natural resources.
“This settlement secures full compensation for the damaged resources, including the permanent preservation of 649 acres of critical wildlife habitat along the Mississippi River just a few miles from downtown New Orleans,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “The restoration projects funded by this settlement will restore wildlife and wetlands, and enhance recreational opportunities for Louisiana’s residents and visitors.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Ultimately, this case demonstrates the DOJ’s firm commitment, along with our federal and state partners, to utilize the full panoply of legal remedies available to protect and remediate vital water sources and the diverse ecosystems found in southeastern Louisiana.”
“Local communities and economies in Louisiana depend on the Mississippi River and the vibrant ecosystems it supports,” said Director Nicole LeBoeuf of NOAA's National Ocean Service. “We are pleased to join with industry and our co-trustees to restore vital habitats, wildlife, and outdoor recreational areas injured by the oil spill, and look forward to working with the public to implement restoration projects.”
“The wildlife resources and outdoor recreation opportunities of the lower Mississippi are critical to Louisiana’s rich natural heritage,” said Regional Director Leopoldo Miranda-Castro of the U.S. Fish and Wildlife Service’s South Atlantic-Gulf & Mississippi-Basin Regional Office. This settlement will allow for the restoration of lost resources and services and will facilitate locally-driven conservation and management that ensures equitable access to the connected local communities.”
Under the proposed consent decree, American Commercial will acquire (at an estimated purchase price of $3.25 million) and preserve 649 acres of woodland habitat, consisting of hardwood forested wetland, swamp, relic wetlands, and open waters (i.e., canals), near the Mississippi River in upper Plaquemines Parish, Louisiana (Woodlands Parcel). The Woodlands Conservancy, a local nonprofit that currently manages the property for recreational and educational use, will hold title to the property and a conservation servitude will forever limit the use of the Woodlands Parcel to passive recreation, thereby protecting and preserving the ecological benefits of the property.
American Commercial will also pay $2.07 million to compensate for natural resource damages from the spill. The federal and State trustees will jointly use the cash payment to perform projects to restore or ameliorate the impacts to aquatic life, birds, river batture, wetlands, marshes, and recreational uses along the Mississippi River. The projects, which are described in the final Damage Assessment and Restoration Plan and Environmental Assessment, Mississippi River Oil Spill, Gretna – New Orleans, Louisiana, July 23, 2008, include habitat restoration activities at the Woodlands Parcel and marsh creation in the Pass-a-Loutre State Wildlife Management Area. American Commercial has paid $1.32 million to reimburse the federal and State trustees for their past damage assessment and restoration planning costs, as required under OPA and OSPRA.
Today’s action was filed by the Department of Justice and the Louisiana Oil Spill Coordinator’s Office, Department of Public Safety & Corrections (LOSCO) on behalf of the federal and State trustees for natural resources. The designated federal trustees for the natural resources impacted by American Commercial’s oil spill are the U.S. Department of Commerce through the National Oceanic and Atmospheric Administration and the U.S. Department of the Interior through the United States Fish and Wildlife Service. The designated state trustees are LOSCO, Louisiana Department of Natural Resources, Louisiana Department of Environmental Quality, Louisiana Department of Wildlife and Fisheries, and the Louisiana Coastal Protection and Restoration Authority. The federal and State trustees worked together to perform the injury assessment and to develop and adopt the restoration plan.
In an earlier related OPA enforcement action filed in 2011, the Department of Justice secured a settlement with American Commercial for $20,000,000 to reimburse the United States for OPA removal costs and damages.
The proposed consent decree is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
The United States and Louisiana concurrently filed a civil complaint with a proposed consent decree. The complaint seeks damages and costs under OPA and OSPRA for injuries to natural resources resulting from American Commercial’s July 2008 discharge of approximately 6,734 barrels (282,828 gallons) of No. 6 fuel oil into the Mississippi River upriver of New Orleans. The complaint alleges that the spill resulted from a collision that occurred when the American Commercial tug Mel Oliver, which was pushing a barge upriver, veered directly in front of the MV Tintomara, an ocean-going tanker ship sailing downriver. The oil spill spread more than 100 miles downriver and covered over 5,000 acres of shoreline habitat. The oil spill caused significant impact and injuries to aquatic habitats within the Mississippi River and along its shoreline, as well as to birds and other wildlife. The oil spill forced the closure of the river from River Mile Marker 98 (just upriver from New Orleans) to the Southwest Pass Sea Buoy, from July 23, 2008 until July 29, 2008. American Commercial, the Coast Guard, and the State were involved in extensive response and cleanup efforts, and American Commercial has cooperated with the federal and State trustees in the assessment of injuries to natural resources.
“This settlement secures full compensation for the damaged resources, including the permanent preservation of 649 acres of critical wildlife habitat along the Mississippi River just a few miles from downtown New Orleans,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “The restoration projects funded by this settlement will restore wildlife and wetlands, and enhance recreational opportunities for Louisiana’s residents and visitors.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Ultimately, this case demonstrates the DOJ’s firm commitment, along with our federal and state partners, to utilize the full panoply of legal remedies available to protect and remediate vital water sources and the diverse ecosystems found in southeastern Louisiana.”
“Local communities and economies in Louisiana depend on the Mississippi River and the vibrant ecosystems it supports,” said Director Nicole LeBoeuf of NOAA's National Ocean Service. “We are pleased to join with industry and our co-trustees to restore vital habitats, wildlife, and outdoor recreational areas injured by the oil spill, and look forward to working with the public to implement restoration projects.”
“The wildlife resources and outdoor recreation opportunities of the lower Mississippi are critical to Louisiana’s rich natural heritage,” said Regional Director Leopoldo Miranda-Castro of the U.S. Fish and Wildlife Service’s South Atlantic-Gulf & Mississippi-Basin Regional Office. This settlement will allow for the restoration of lost resources and services and will facilitate locally-driven conservation and management that ensures equitable access to the connected local communities.”
Under the proposed consent decree, American Commercial will acquire (at an estimated purchase price of $3.25 million) and preserve 649 acres of woodland habitat, consisting of hardwood forested wetland, swamp, relic wetlands, and open waters (i.e., canals), near the Mississippi River in upper Plaquemines Parish, Louisiana (Woodlands Parcel). The Woodlands Conservancy, a local nonprofit that currently manages the property for recreational and educational use, will hold title to the property and a conservation servitude will forever limit the use of the Woodlands Parcel to passive recreation, thereby protecting and preserving the ecological benefits of the property.
American Commercial will also pay $2.07 million to compensate for natural resource damages from the spill. The federal and State trustees will jointly use the cash payment to perform projects to restore or ameliorate the impacts to aquatic life, birds, river batture, wetlands, marshes, and recreational uses along the Mississippi River. The projects, which are described in the final Damage Assessment and Restoration Plan and Environmental Assessment, Mississippi River Oil Spill, Gretna – New Orleans, Louisiana, July 23, 2008, include habitat restoration activities at the Woodlands Parcel and marsh creation in the Pass-a-Loutre State Wildlife Management Area. American Commercial has paid $1.32 million to reimburse the federal and State trustees for their past damage assessment and restoration planning costs, as required under OPA and OSPRA.
Today’s action was filed by the Department of Justice and the Louisiana Oil Spill Coordinator’s Office, Department of Public Safety & Corrections (LOSCO) on behalf of the federal and State trustees for natural resources. The designated federal trustees for the natural resources impacted by American Commercial’s oil spill are the U.S. Department of Commerce through the National Oceanic and Atmospheric Administration and the U.S. Department of the Interior through the United States Fish and Wildlife Service. The designated state trustees are LOSCO, Louisiana Department of Natural Resources, Louisiana Department of Environmental Quality, Louisiana Department of Wildlife and Fisheries, and the Louisiana Coastal Protection and Restoration Authority. The federal and State trustees worked together to perform the injury assessment and to develop and adopt the restoration plan.
In an earlier related OPA enforcement action filed in 2011, the Department of Justice secured a settlement with American Commercial for $20,000,000 to reimburse the United States for OPA removal costs and damages.
The proposed consent decree is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
Barge Company Will Preserve 649 Acres of Habitat and Pay over $2 Million for Injuries to Natural Resources Resulting from its Oil Spill in the Mississippi River near New OrleansRead the Press Release
WASHINGTON – Jeffersonville, Indiana-based American Commercial Barge Line LLC (American Commercial) has agreed to acquire and preserve 649 acres of woodland wildlife habitat near New Orleans, Louisiana, and pay over $2 million in damages, in addition to $1.32 million previously paid for damage assessment and restoration planning costs, under the Oil Pollution Act (OPA) and the Louisiana Oil Spill Prevention and Response Act (OSPRA), to resolve federal and State claims for injuries to natural resources resulting from an oil spill from one of its barges.
The United States and Louisiana concurrently filed a civil complaint with a proposed consent decree. The complaint seeks damages and costs under OPA and OSPRA for injuries to natural resources resulting from American Commercial’s July 2008 discharge of approximately 6,734 barrels (282,828 gallons) of No. 6 fuel oil into the Mississippi River upriver of New Orleans. The complaint alleges that the spill resulted from a collision that occurred when the American Commercial tug Mel Oliver, which was pushing a barge upriver, veered directly in front of the MV Tintomara, an ocean-going tanker ship sailing downriver. The oil spill spread more than 100 miles downriver and covered over 5,000 acres of shoreline habitat. The oil spill caused significant impact and injuries to aquatic habitats within the Mississippi River and along its shoreline, as well as to birds and other wildlife. The oil spill forced the closure of the river from River Mile Marker 98 (just upriver from New Orleans) to the Southwest Pass Sea Buoy, from July 23, 2008 until July 29, 2008. American Commercial, the Coast Guard, and the State were involved in extensive response and cleanup efforts, and American Commercial has cooperated with the federal and State trustees in the assessment of injuries to natural resources.
“This settlement secures full compensation for the damaged resources, including the permanent preservation of 649 acres of critical wildlife habitat along the Mississippi River just a few miles from downtown New Orleans,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “The restoration projects funded by this settlement will restore wildlife and wetlands, and enhance recreational opportunities for Louisiana’s residents and visitors.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Ultimately, this case demonstrates the DOJ’s firm commitment, along with our federal and state partners, to utilize the full panoply of legal remedies available to protect and remediate vital water sources and the diverse ecosystems found in southeastern Louisiana.”
“Local communities and economies in Louisiana depend on the Mississippi River and the vibrant ecosystems it supports,” said Director Nicole LeBoeuf of NOAA's National Ocean Service. “We are pleased to join with industry and our co-trustees to restore vital habitats, wildlife, and outdoor recreational areas injured by the oil spill, and look forward to working with the public to implement restoration projects.”
“The wildlife resources and outdoor recreation opportunities of the lower Mississippi are critical to Louisiana’s rich natural heritage,” said Regional Director Leopoldo Miranda-Castro of the U.S. Fish and Wildlife Service’s South Atlantic-Gulf & Mississippi-Basin Regional Office. This settlement will allow for the restoration of lost resources and services and will facilitate locally-driven conservation and management that ensures equitable access to the connected local communities.”
Under the proposed consent decree, American Commercial will acquire (at an estimated purchase price of $3.25 million) and preserve 649 acres of woodland habitat, consisting of hardwood forested wetland, swamp, relic wetlands, and open waters (i.e., canals), near the Mississippi River in upper Plaquemines Parish, Louisiana (Woodlands Parcel). The Woodlands Conservancy, a local nonprofit that currently manages the property for recreational and educational use, will hold title to the property and a conservation servitude will forever limit the use of the Woodlands Parcel to passive recreation, thereby protecting and preserving the ecological benefits of the property.
American Commercial will also pay $2.07 million to compensate for natural resource damages from the spill. The federal and State trustees will jointly use the cash payment to perform projects to restore or ameliorate the impacts to aquatic life, birds, river batture, wetlands, marshes, and recreational uses along the Mississippi River. The projects, which are described in the final Damage Assessment and Restoration Plan and Environmental Assessment, Mississippi River Oil Spill, Gretna – New Orleans, Louisiana, July 23, 2008, include habitat restoration activities at the Woodlands Parcel and marsh creation in the Pass-a-Loutre State Wildlife Management Area. American Commercial has paid $1.32 million to reimburse the federal and State trustees for their past damage assessment and restoration planning costs, as required under OPA and OSPRA.
Today’s action was filed by the Department of Justice and the Louisiana Oil Spill Coordinator’s Office, Department of Public Safety & Corrections (LOSCO) on behalf of the federal and State trustees for natural resources. The designated federal trustees for the natural resources impacted by American Commercial’s oil spill are the U.S. Department of Commerce through the National Oceanic and Atmospheric Administration and the U.S. Department of the Interior through the United States Fish and Wildlife Service. The designated state trustees are LOSCO, Louisiana Department of Natural Resources, Louisiana Department of Environmental Quality, Louisiana Department of Wildlife and Fisheries, and the Louisiana Coastal Protection and Restoration Authority. The federal and State trustees worked together to perform the injury assessment and to develop and adopt the restoration plan.
In an earlier related OPA enforcement action filed in 2011, the Department of Justice secured a settlement with American Commercial for $20,000,000 to reimburse the United States for OPA removal costs and damages.
The proposed consent decree is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
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Attorney General Merrick B. Garland Issues Statement on Recent Deaths and Injuries of Law Enforcement PersonnelRead the Press Release
U.S. Attorney General Merrick B. Garland today issued the following statement:
“This past week has been a reminder for all of us at the Department of Justice of the risks our deputies, agents and local law enforcement partners confront each day.
“I’m deeply saddened by the shooting this morning in Tucson, Arizona, that killed a DEA special agent and injured another DEA agent and a task force officer from the Tucson Police Department.
“We also learned of the tragic passing of Deputy U.S. Marshal and Senior Inspector Jared Keyworth, who, on Friday, succumbed to injuries sustained in a vehicle accident while assisting with a law enforcement operation late last month.
“We are grateful for the courage and selfless sacrifice of these heroes, and I join the entire Justice Department in conveying our support and deepest sympathies to their families.”
Alderson Man Pleads Guilty to Child Pornography OffenseRead the Press Release
BECKLEY, W.Va. – An Alderson man pleaded guilty to production and attempted production of child pornography. Jack Michael Smith, 34, was charged by indictments in the Southern District of West Virginia and the District of Oregon. The United States Attorney’s Office for the District of Oregon transferred their charges to the Southern District of West Virginia.
According to the plea agreement and statements made in court, Smith uploaded child pornography from a computer in West Virginia to Kik Messenger to share with others in March 2019. In October 2019, additional child pornography was shared from Smith’s account. A conversation with another Kik user indicated ongoing sexual abuse of a minor female. Smith admitted that he traveled from West Virginia to Oregon on a regular basis to engage in sexual activity with the minor female and took photographs of the minor female engaged in sexual activity with him.
Smith faces at least 15 years and up 30 years in prison when he is sentenced on January 28, 2022.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Homeland Security Investigations (HSI). Local law enforcement in Oregon assisted in the investigation.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Julie M. White is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 5:20-cr-00193.
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2 October 2021
Leading ISIS Media Figure and Foreign Fighter Charged with Conspiring to Provide Material Support to a Terrorist Organization, Resulting in DeathRead the Press Release
ALEXANDRIA, Va. – As alleged in a criminal complaint unsealed today in the U.S. District Court for the Eastern District of Virginia, Mohammed Khalifa, a Saudi-born Canadian citizen who was a leading figure in the Islamic State of Iraq and al-Sham’s (ISIS) English Media Section and served as an ISIS fighter, was charged with conspiring to provide material support to ISIS, a foreign terrorist organization, resulting in death. Khalifa was captured overseas by the Syrian Democratic Forces (SDF) in January 2019. He was recently transferred into the custody of the FBI, at which point he was first brought to the Eastern District of Virginia.
“As alleged, Mohammed Khalifa not only fought for ISIS on the battlefield in Syria, but he was also the voice behind the violence,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Through his alleged leading role in translating, narrating, and advancing ISIS’s online propaganda, Khalifa promoted the terrorist group, furthered its worldwide recruitment efforts, and expanded the reach of videos that glorified the horrific murders and indiscriminate cruelty of ISIS. EDVA and our partners have a long history of prosecuting national security cases, and we are honored to serve once again in this effort to seek justice on behalf of the United States and the victims of ISIS’s brutality.”
As alleged in the criminal complaint, Mohammed Khalifa, a/k/a “Abu Ridwan Al-Kanadi,” a/k/a “Abu Muthanna Al-Muhajir,” 38, of Canada, served in prominent roles within ISIS starting in 2013 and continuing until his capture by the SDF in January 2019 following a firefight between ISIS fighters and the SDF. In addition to allegedly serving as an ISIS fighter, Khalifa allegedly served as a lead translator in ISIS’s propaganda production and the English-speaking narrator on multiple violent ISIS recruitment videos.
“This arrest is the first step in holding the defendant accountable for his alleged terrorist activity, which included serving as an ISIS fighter and an important member of the ISIS media bureau,” said Acting Assistant Attorney General for National Security Mark J. Lesko. “As alleged in the complaint, the defendant and others engaged in a wide-ranging conspiracy to provide material support to ISIS, with the conspirators serving the terrorist organization in a variety of capacities. As alleged, that conspiracy resulted in the death of numerous others at the hands of ISIS members and fighters. The National Security Division and our partners are committed to holding accountable those who provide material support to foreign terrorist organizations. I want to thank all of the agents, analysts, and prosecutors who are responsible for this case.”
“Let there be no doubt, the FBI will hold terrorists and those who provide material support to terrorist organizations accountable for their actions,” stated Assistant Director Timothy Langan, FBI Counterterrorism Division. “The unsealing of the charges today demonstrates the FBI’s tireless dedication and commitment to pursue those who join foreign terrorist organizations like ISIS. The defendant is alleged to have, among other things, played an integral role in the recruitment and radicalization of Westerners through the production, narration, and dissemination of English-language ISIS propaganda, including the Flames of War videos that depicted the brutal execution of ISIS-held prisoners and hostages. He will now face justice inside of a U.S. courtroom for his actions. We will continue to present a united front, with our U.S. government and international partners, in the fight against ISIS, those who support ISIS, and other terrorist groups.”
“As alleged in the complaint, as one of the leading figures in ISIS’s English media section, Mohammed Khalifa contributed to the radicalization of individuals through his English narration of ISIS recruitment propaganda,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “While many Americans are aware of the brutal and violent crimes committed by many ISIS actors, ISIS’s efforts to radicalize individuals to travel to Syria and commit violence on its behalf were equally horrendous. The charges announced today, which are the result of years of diligent work by the FBI’s Washington Field Office and our partners, are a reminder to those who continue to support ISIS around the world that the U.S. Government has not forgotten your crimes. We will find you and hold you accountable.”
The complaint also alleges that Khalifa traveled to Syria in the spring of 2013 with the intent of becoming a foreign fighter and ultimately joining ISIS. He joined ISIS in or around November 2013 and swore allegiance to then-ISIS leader Abu Bakr al-Baghdadi. In early 2014, he was recruited to join ISIS’s Media Bureau due in part to his linguistic capabilities as a fluent English and Arabic speaker. Khalifa played an important role in the production and dissemination of ISIS propaganda across multiple media platforms targeting Western audiences. A primary focus of much of Khalifa’s propaganda production was aimed at enticing ISIS supporters to travel to ISIS-controlled areas to join ISIS or to conduct attacks in the West, including in the United States, on ISIS’s behalf. Khalifa actively participated in armed hostilities on behalf of ISIS. Just prior to his capture by the SDF on or about January 13, 2019, Khalifa engaged in armed conflict on behalf of ISIS, including throwing grenades against opposing combatants.
The complaint further alleges that Khalifa was a prominent figure within the ISIS Media Bureau, the “Diwan of Central Media,” and assisted in the translation and narration of approximately 15 total videos created and distributed by ISIS. The productions narrated by Khalifa include two of the most influential and exceedingly violent ISIS propaganda videos: “Flames of War: Fighting Has Just Begun,” distributed on September 19, 2014, and “Flames of War II: Until the Final Hour,” distributed on November 29, 2017. These videos, containing English narration by Khalifa, were part of an ISIS media campaign promoting violence committed against U.S. citizens and other countries’ citizens in order to incite further violence against the United States, allied nations, and their citizens. The videos depict glamorized portrayals of ISIS and its fighters as well as scenes of violence, including depictions of unarmed prisoners being executed, depictions of ISIS attacks in the United States, and footage of ISIS attacks and fighting in what is described as Syria and Egypt.
Khalifa also allegedly narrated a series of recruitment videos entitled “Inside the Khilafah” that depicted various aspects of daily life within the Islamic State and featured ISIS members encouraging potential recruits to join ISIS and conduct terrorist attacks against non-Muslims. The narration in one of these videos encourages recruits unable to leave their home countries to join ISIS in conducting attacks in countries outside the Islamic State, displaying footage of ISIS attacks in Europe, including attacks in Paris, France; Brussels, Belgium; and Nice, France. The video also includes a voice recording of Omar Mateen, the Pulse Nightclub mass shooter, declaring his allegiance to ISIS during the June 12, 2016 terrorist attack in Orlando, Florida.
Productions by the ISIS Media Bureau during the time period in which Khalifa was allegedly a prominent member include videos or images depicting: the beheadings of American hostages James Wright Foley, Steven Joel Sotloff, and Peter Edward Kassig; an announcement concerning the death of American hostage Kayla Jean Mueller; the beheadings of British citizens David Haines and Alan Henning; the decapitated body of Japanese citizen Haruna Yukawa; and the beheading of Japanese citizen Kenji Goto.
Khalifa is charged with conspiring to provide material support or resources to a foreign terrorist organization, resulting in death. If convicted, he faces a maximum penalty of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Dennis M. Fitzpatrick; Acting United States Attorney Raj Parekh; and Assistant U.S. Attorneys John T. Gibbs, and Aidan Taft Grano-Mickelson, all from the U.S. Attorney’s Office for the Eastern District of Virginia; and Trial Attorney Alicia H. Cook of the Justice Department are prosecuting 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. 1:21-mj-34.
Affidavit is available here.A criminal complaint contains allegations that a defendant has committed one or more crimes. The defendant is presumed innocent until and unless proven guilty.
ISIS Media Figure and Foreign Fighter Charged with Conspiring to Provide Material Support to a Terrorist Organization, Resulting in DeathRead the Press Release
As alleged in a criminal complaint unsealed today in the U.S. District Court for the Eastern District of Virginia, Mohammed Khalifa, a Saudi-born Canadian citizen, who was a leading figure in the Islamic State of Iraq and al-Sham’s (ISIS) English Media Section and served as an ISIS fighter, was charged with conspiring to provide material support to ISIS, a designated foreign terrorist organization, resulting in death. Khalifa was captured overseas by the Syrian Democratic Forces (SDF) in January 2019. He was recently transferred into the custody of the FBI, at which point he was first brought to the Eastern District of Virginia.
As alleged in the criminal complaint, Mohammed Khalifa, aka Abu Ridwan Al-Kanadi and Abu Muthanna Al-Muhajir, 38, of Canada, served in prominent roles within ISIS starting in 2013 and continuing until his capture by the SDF in January 2019 following a firefight between ISIS fighters and the SDF. In addition to allegedly serving as an ISIS fighter, Khalifa allegedly served as a lead translator in ISIS’s propaganda production and the English-speaking narrator on multiple violent ISIS recruitment videos.
“This arrest is the first step in holding the defendant accountable for his alleged terrorist activity, which included serving as an ISIS fighter and an important member of the ISIS media bureau,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “As alleged in the complaint, the defendant and others engaged in a wide-ranging conspiracy to provide material support to ISIS, with the conspirators serving the terrorist organization in a variety of capacities. As alleged, that conspiracy resulted in the death of numerous others at the hands of ISIS members and fighters. The National Security Division and our partners are committed to holding accountable those who provide material support to foreign terrorist organizations. I want to thank all of the agents, analysts, and prosecutors who are responsible for this case.”
“As alleged, Mohammed Khalifa not only fought for ISIS on the battlefield in Syria, but he was also the voice behind the violence,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “Through his alleged leading role in translating, narrating, and advancing ISIS’s online propaganda, Khalifa promoted the terrorist group, furthered its worldwide recruitment efforts, and expanded the reach of videos that glorified the horrific murders and indiscriminate cruelty of ISIS. EDVA and our partners have a long history of prosecuting national security cases, and we are honored to serve once again in this effort to seek justice on behalf of the United States and the victims of ISIS’s brutality.”
“Let there be no doubt, the FBI will hold terrorists and those who provide material support to terrorist organizations accountable for their actions,” said Assistant Director Timothy Langan of the FBI’s Counterterrorism Division. “The unsealing of the charges today demonstrates the FBI’s tireless dedication and commitment to pursue those who join foreign terrorist organizations like ISIS. The defendant is alleged to have, among other things, played an integral role in the recruitment and radicalization of Westerners through the production, narration, and dissemination of English-language ISIS propaganda, including the Flames of War videos that depicted the brutal execution of ISIS-held prisoners and hostages. He will now face justice inside of a U.S. courtroom for his actions. We will continue to present a united front, with our U.S. government and international partners, in the fight against ISIS, those who support ISIS, and other terrorist groups.”
“As alleged in the complaint, as one of the leading figures in ISIS’ English media section, Mohammed Khalifa contributed to the radicalization of individuals through his English narration of ISIS recruitment propaganda,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “While many Americans are aware of the brutal and violent crimes committed by many ISIS actors, ISIS’ efforts to radicalize individuals to travel to Syria and commit violence on its behalf were equally horrendous. The charges announced today, which are the result of years of diligent work by the FBI’s Washington Field Office and our partners, are a reminder to those who continue to support ISIS around the world that the U.S. Government has not forgotten your crimes. We will find you and hold you accountable.”
The complaint also alleges that Khalifa traveled to Syria in the spring of 2013 with the intent of becoming a foreign fighter and ultimately joining ISIS. He joined ISIS in or around November 2013 and swore allegiance to then-ISIS leader Abu Bakr al-Baghdadi. In early 2014, he was recruited to join ISIS’s Media Bureau due in part to his linguistic capabilities as a fluent English and Arabic speaker. Khalifa played an important role in the production and dissemination of ISIS propaganda across multiple media platforms targeting Western audiences. A primary focus of much of Khalifa’s propaganda production was aimed at enticing ISIS supporters to travel to ISIS-controlled areas to join ISIS or to conduct attacks in the West, including in the United States, on ISIS’s behalf. Khalifa actively participated in armed hostilities on behalf of ISIS. Just prior to his capture by the SDF on or about Jan. 13, 2019, Khalifa engaged in armed conflict on behalf of ISIS, including throwing grenades against opposing combatants.
The complaint further alleges that Khalifa was a prominent figure within the ISIS Media Bureau, the “Diwan of Central Media,” and assisted in the translation and narration of approximately 15 total videos created and distributed by ISIS. The productions narrated by Khalifa include two of the most influential and exceedingly violent ISIS propaganda videos: “Flames of War: Fighting Has Just Begun,” distributed on Sept. 19, 2014, and “Flames of War II: Until the Final Hour,” distributed on Nov. 29, 2017. These videos, containing English narration by Khalifa, were part of an ISIS media campaign promoting violence committed against U.S. citizens and other countries’ citizens in order to incite further violence against the United States, allied nations and their citizens. The videos depict glamorized portrayals of ISIS and its fighters as well as scenes of violence, including depictions of unarmed prisoners being executed, depictions of ISIS attacks in the United States, and footage of ISIS attacks and fighting in what is described as Syria and Egypt.
Khalifa also allegedly narrated a series of recruitment videos entitled “Inside the Khilafah” that depicted various aspects of daily life within the Islamic State and featured ISIS members encouraging potential recruits to join ISIS and conduct terrorist attacks against non-Muslims. The narration in one of these videos encourages recruits unable to leave their home countries to join ISIS in conducting attacks in countries outside the Islamic State, displaying footage of ISIS attacks in Europe, including attacks in Paris, France; Brussels, Belgium; and Nice, France. The video also includes a voice recording of Omar Mateen, the Pulse Nightclub mass shooter, declaring his allegiance to ISIS during the June 12, 2016, terrorist attack in Orlando, Florida.
Productions by the ISIS Media Bureau during the time period in which Khalifa was allegedly a prominent member include videos or images depicting: the beheadings of American hostages James Wright Foley, Steven Joel Sotloff and Peter Edward Kassig; an announcement concerning the death of American hostage Kayla Jean Mueller; the beheadings of British citizens David Haines and Alan Henning; the decapitated body of Japanese citizen Haruna Yukawa; and the beheading of Japanese citizen Kenji Goto.
Khalifa is charged with conspiring to provide material support or resources to a foreign terrorist organization, resulting in death. If convicted, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Raj Parekh and Assistant U.S. Attorneys Dennis M. Fitzpatrick, John T. Gibbs and Aidan Taft Grano-Mickelson, all from the U.S. Attorney’s Office for the Eastern District of Virginia, and Trial Attorney Alicia H. Cook of the National Security Division‘s Counterterrorism Section are prosecuting the case.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
1 October 2021
“The Prescription Center” to Pay $57,073 in Civil Penalties for Recordkeeping Violations of the Controlled Substances ActRead the Press Release
HARRISBURG —The United States Attorney’s Office for the Middle District of Pennsylvania announced that “The Prescription Center,” located in Scranton, Pennsylvania, has agreed to pay the United States $57,073 in civil penalties for allegedly failing to comply with recordkeeping requirements of the Controlled Substances Act.
The Controlled Substances Act, 21 U.S.C. sections 801 et seq. (CSA), was passed to combat illegal distribution and abuse of controlled substances, including prescription medications. The CSA’s recordkeeping and prescribing requirements are designed to prevent the diversion of controlled substances for illegal purposes. The CSA is enforced by the Drug Enforcement Administration’s Diversion Control Division, whose mission is to prevent, detect, and investigate the diversion of controlled pharmaceuticals and listed chemicals from legitimate sources while ensuring adequate and uninterrupted supply for legitimate medical, commercial, and scientific needs. Under the CSA, entities registered with the DEA who purchase, distribute, dispense, transfer, or sell controlled substances must comply with inventory and documentation requirements, and are subject to compliance audits.
Regulations promulgated under the CSA require that each DEA registrant, including pharmacies, maintain complete and accurate records of each substance manufactured, received, sold, delivered, dispensed, or otherwise disposed of by the registrant. These requirements play a vital role in ensuring the appropriate handling, accounting, and distribution of controlled substances. Violations of the record-keeping requirements subject DEA registrants to civil monetary penalties.
According to Acting United States Attorney Bruce D. Brandler, between March 2020 and March 2021, “The Prescription Center” failed to keep complete, timely, and accurate inventories and records regarding the receipt and dispensing of Schedule II, III, and IV controlled substances, including but not limited to hydrocodone, buprenorphine-naloxone, and alprazolam. As a result of the Center’s alleged actions and inactions, thousands of doses of controlled substances went unaccounted for.
The present civil investigation was prompted by a scheduled DEA audit in March 2021. “The Prescription Center” cooperated with the investigators and has since enhanced its recordkeeping and internal compliance program in response to concerns raised by the DEA in the course of this investigation. Although there are no allegations that any of the alleged unaccounted for controlled substances were diverted, this settlement addresses the independent obligation of “The Prescription Center” to ensure it has systems in place adequate to prevent improper dispensing, as required by 21 U.S.C. §§ 827, 842, and associated regulations.
“While no known actual diversion took place in this instance, pharmacies have a crucial responsibility to protect controlled substances from being diverted and potentially abused. Our nation remains in the midst of an opioid crisis, and the importance of keeping complete and accurate records of incoming and outgoing controlled substances at the pharmacy level cannot be overstated,” said Acting U.S. Attorney Brandler. “I commend the owners of “The Prescription Center” for taking this responsibility seriously and being proactive in this investigation to strengthen their systems and processes to protect their legitimate dispensing from diversion.”
This Settlement Agreement is neither an admission of liability by the pharmacy nor a concession by the United States that its claims are not well founded.
This case was investigated by Drug Enforcement Administration’s Diversion Control Division. The investigation was handled by Assistant United States Attorney, Harlan W. Glasser and the Affirmative Civil Enforcement (ACE) Unit within the U.S. Attorney’s Office.
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Yankton Woman Charged with Theft of Government Funds and Concealment of Information from SSI ProgramRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Yankton, South Dakota, woman has been indicted by a federal grand jury for Theft of Government Funds and Concealment of Information from Supplemental Security Income (SSI) Program. The SSI program is administered by the U.S. Social Security Administration
Tina Marie Jensen, age 47, was indicted on September 9, 2021. She appeared before U.S. Magistrate Judge Veronica L. Duffy on September 22, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about between September 9, 2016, and July 31, 2019, Jensen willfully and knowingly embezzled, stole, and purloined money from federal departments or agencies: Title XVI program benefits payments made to her child (for whom she was representative payee), Supplemental Nutrition Assistance Program benefits payments, and Medicaid coverage.
The Indictment also alleges that on or about October 2017, Jensen had knowledge of the occurrence of an event affecting her initial and continued right to receive payment of Title XVI SSI benefits. Specifically, Jensen knowingly failed to disclose a change in her household resources, in order to continue receiving and spending her child’s SSI benefits.
The charges are merely accusations and Jensen is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Social Security Administration Cooperative Disability Investigation Unit. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Jensen was released on bond pending trial, which has been set for November 30, 2021.
West Texas Gas Companies Agree to Pay $3 Million Civil Penalty in Federal Settlement Requiring $5 Million in Safety Improvements and Clean Air Act Compliance at Eight Natural Gas Processing PlantsRead the Press Release
Five subsidiaries of West Texas Gas Inc. will spend up to $5 million on compliance measures in a settlement that resolves allegations in the United States’ complaint, lodged today, that they violated federal Clean Air Act chemical accident prevention requirements at several of their natural gas processing plants. The companies will pay more than $3 million in civil penalties to resolve claims stemming from fatal chemical accidents and accident prevention program violations.
In a related criminal case, another West Texas Gas subsidiary that operated a gas plant in Big Lake, Texas, – Big Lake Gas Plant L.P. – pleaded guilty to one count of negligent endangerment and one count of violating the Clean Air Act.
The settlement requires the subsidiaries to take steps to prevent chemical accidents and improve safety at eight natural gas processing plants that the companies own and operate. Seven plants are located in Texas and one is in New Mexico. The plants use a variety of chemical processes containing toxic substances and flammable hydrocarbons, such as butane, methane and propane.
“West Texas Gas’ Clean Air Act violations cost lives,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Today’s settlement sends a strong message to industry that the Justice Department will vigorously enforce Clean Air Act requirements that protect workers, neighboring communities and the environment by preventing dangerous chemical releases like these.”
“This company’s blatant disregard of clean air regulations had devastating real-world consequences,” said Acting U.S. Attorney Prerak Shah for the Northern District of Texas. “Our hearts go out to the family of the employee killed in the chemical incident at the plant in Big Lake. We are proud to hold the company criminally responsible, and hopeful that the safety measures stipulated in the civil settlement will protect against similar incidents.”
“The tragic deaths due to the failure by West Texas Gas to safely manage hazardous chemicals, as required by law, demonstrates the severe dangers that these violations pose to workers, nearby communities and the environment,” said Acting Assistant Administrator Larry Starfield of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “Today’s settlement requires West Texas Gas to take concrete steps to prevent future accidents and will improve air quality in the vicinity of these facilities.”
The civil complaint alleges that WTG Gas Processing L.P., WTG South Permian Midstream LLC and Davis Gas Processing Inc. violated section 112(r) of the Clean Air Act and the related chemical accident prevention regulations. The EPA identified the Clean Air Act violations addressed in today’s settlement during a series of inspections of the companies’ natural gas processing plants. The EPA inspections were initiated after a catastrophic fire in November 2015 killed an employee at WTG Gas Processing, L.P.’s East Vealmoor Gas Plant in Coahoma, Texas. Thousands of pounds of flammable and toxic substances were also released into the air. Other serious fires, resulting in millions of dollars of damage, occurred at some of the companies’ other plants, and an August 2018 leak of toxic hydrogen sulfide resulted in the death of another company employee in Big Lake, Texas.
Under the settlement, the companies must hire an outside, independent engineering firm to recommend actions that the companies will complete to improve process safety at six of the eight plants. The six plants must also implement an environmental management system to improve their compliance with all federal, state and local air pollution related requirements, not just those dealing with preventing chemical accidents. The companies have elected to permanently shut down the remaining two plants.
Section 112(r) of the Clean Air Act and the risk management program regulations contain a comprehensive set of requirements to prevent accidental releases of hazardous air pollutants, an important objective of the Clean Air Act. These regulations require owners and operators of facilities, such as natural gas processing plants, chemical plants and petroleum refineries to perform adequate and timely equipment inspections and repairs, train employees involved in the operation and maintenance of equipment, evaluate the hazards of the chemical processing equipment and ensure that operating procedures contain clear and comprehensive instructions to safely operate process equipment.
In the related criminal case against Big Lake Gas Plant L.P. arising out of the August 2018 leak, the plant admitted that it negligently released hydrogen sulfide into the ambient air. Hydrogen sulfide is a toxic gas that can compromise the human nervous system and respiratory tract and can cause life-threatening health effects if not handled properly. One employee died as a result of exposure sustained while working at the plant, and another employee was injured. The company further admitted that it knowingly failed to properly update its risk management plan following the incident, an update required by law.
Under the terms of its plea agreement, the plant agreed to pay a $3 million fine, and acknowledged it may be ordered to pay restitution to victims, as well as the costs of supervision.
Assistant U.S. Attorney Sean Taylor prosecuted the criminal case.
Today’s settlement is part of the Justice Department and the EPA’s ongoing efforts to protect public health and the environment by preventing industrial accidents involving hazardous chemicals.
The settlement was lodged today in the U.S. District Court for the Northern District of Texas. The settlement is subject to a 30-day public comment period and final court approval.
Watertown Man Charged with Possession of a Sawed-Off ShotgunRead the Press Release
SYRACUSE, NEW YORK – Rafael Rondon, age 23, of Watertown, New York was arraigned today in federal court in Syracuse on an indictment charging him with possession of an unregistered sawed-off shotgun at his residence, announced Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Rafael Rondon and his mother, Maryann Mooney-Rondon, 55, of Watertown, New York, both also appeared in court on a criminal complaint filed in the United States District Court for the District of Columbia containing the following charges stemming from the January 6, 2021 incident at the United States Capitol Building in Washington, D.C.
Theft of Government Property, 18 U.S.C. §§ 641 and 2 (Misdemeanor)
Obstruction of an Official Proceeding, 18 U.S.C. § 1512(c)(2) (Felony)
Entering/Remaining a Restricted Building, 18 U.S.C. § 1752(a)(1) (Misdemeanor)
Disorderly Conduct in a Restricted Building, 18 U.S.C. § 1752(a)(2) (Misdemeanor)
Entering/Remaining the Gallery of Congress, 40 U.S.C. § 5104(e)(2)(B) (Misdemeanor)
Entering/Remaining in Certain Rooms of Capitol Building, 40 U.S.C. § 5104 (e)(2)(C) (Misdemeanor)
Disorderly Conduct in Capitol Building, 40 U.S.C § 5104(e)(2)(D) (Misdemeanor)
Both Rafael Rondon and Maryann Mooney-Rondon appeared today in Syracuse, New York, before United States Magistrate Judge Therese Wiley-Dancks, and were released pending further court proceedings.
The charge against Rafael Rondon alleging his possession of an unregistered sawed-off shotgun carries a maximum sentence of 10 years in prison, a fine of up to $250,000.00, and a term of supervised release of up to 3 years.
A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. The charges in the indictment and criminal complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
These cases are being investigated by the Federal Bureau of Investigation (FBI), the United States Capitol Police, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with assistance from the New York State Police. The indictment charging Rafael Rondon in United States District Court for the Northern District of New York is being prosecuted by Assistant U.S. Attorneys Stephen Green and Richard Southwick. The case involving the January 6, 2021, Capitol breach is being prosecuted by the United States Attorney’s Office for the District of Columbia.
United States Attorney's Office for Eastern District of Oklahoma Obtains Forty-Six Indictments from Federal Grand JuriesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced federal grand juries sitting in Muskogee recently completed two separate August and two separate September sessions and returned forty-six felony indictments, including four superseding indictments.
From the four grand jury sessions in August and September, twenty-eight indictments were publicly filed and eighteen remain sealed pending arrest of the charged defendants. Twenty-three of the unsealed charges involve crimes arising out of Indian Country. Six of the unsealed indictments are for murder or involuntary manslaughter, four are for sex crimes, and the balance contain allegations of assault with intent to commit murder, assault resulting in serious bodily injury, domestic violence, firearms violations, burglary, and robbery (including attempted robbery). The five unsealed non-Indian Country indictments involve possession with intent to distribute methamphetamine, firearms violations, and traveling with the intent to engage in illicit sexual conduct.
The following indictments were returned by the federal grand juries and filed in the United States District Court for the Eastern District of Oklahoma. The information listed in brackets is the county and reservation where the crime(s) allegedly occurred.
Murder Cases:
United States v. Jeriah Scott Budder (superseding indictment) – Count 1: Murder in Indian Country – 18 U.S.C. §§ 1111(a), 1151 & 1153; Count 2: Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence – 18 U.S.C. §§ 924(c)(1)(A)(i), (ii) & (iii); Count 3: Causing the Death of a Person in the Course of a Violation of Title 18, United States Code, Section 924(c) – 18 U.S.C. § 924(j); Forfeiture Allegation - 18 U.S.C. § 924(d) and 28 U.S.C. § 2461(c) [Cherokee County – Cherokee Nation Reservation]
United States v. Jeremy Matthew Girty – Count 1: Murder in Indian Country, Second Degree – 18 U.S.C. §§ 1111(a), 1151 & 1153 [Carter County – Chickasaw Nation Reservation]
United States v. Jimmy Louis Northcutt, Jr. (second superseding indictment) – Count 1: Murder in Indian Country – 18 U.S.C. §§ 1111(a), 1151 & 1153; Count 2: Murder in Perpetration of Burglary in Indian Country – 18 U.S.C. §§ 1111(a), 1151 & 1153; Count 3: Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence – 18 U.S.C. §§ 924(c)(1)(A)(i),(ii) & (iii); Count 4: Causing the Death of a Person in the Course of a Violation of Title 18 U.S.C. § 924(c) – 18 U.S.C. § 924(j)(1); Count 5: Burglary in the Second Degree in Indian Country – 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. § 1435(A); Count 6: Felon in Possession of a Firearm – 18 U.S.C. §§ 922(g)(1) & 924(a)(2); Count 7: Possession of Stolen Firearm – 18 U.S.C. §§ 922(j) & 924(a)(2); Forfeiture Allegation – 18 U.S.C. § 924(d) and 28 U.S.C. § 2461(c) [Pontotoc County – Chickasaw Nation Reservation]
United States v. James Eric Parker (superseding indictment) – Count 1: Murder in Indian Country – 18 U.S.C. §§ 1111(a), 1151 & 1153; Count 2: Murder in Perpetration of Kidnapping in Indian Country – 18 U.S.C. §§ 1111(a), 1151 & 1153; Count 3: Murder in Perpetration of Kidnapping in Indian Country – 18 U.S.C. §§ 1111(a), 1151 & 1153; Count 4: Kidnapping Resulting in Death in Indian Country – 18 U.S.C. §§ 1201(a)(2), 1151 & 1153; Count 5: Causing the Death of a Person in the Course of a Violation of Title 18 U.S.C. § 924(c) – 18 U.S.C. § 924(j)(1); Forfeiture Allegation – 18 U.S.C. § 924(d) and 28 U.S.C. § 2461(c) [Carter County – Chickasaw Nation Reservation]
United States v. Troy Allen Stevenson – Count 1: Murder in Indian Country – 18 U.S.C. §§ 1111(a), 1151 & 1153; Count 2: Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence – 18 U.S.C. §§ 924(c)(1)(A)(i),(ii) & (iii); Count 3: Causing the Death of a Person in the Course of a Violation of Title 18, United States Code, Section 924(c) – 18 U.S.C. § 924(j)(1); Forfeiture Allegation – 18 U.S.C. § 924(d) and 28 U.S.C. § 2461(c) [Sequoyah County – Cherokee Nation Reservation]
Sexual Assault:
United States v. Dustin Kane Adams – Count 1: Aggravated Sexual Abuse of Child Under 12 in Indian Country – 18 U.S.C. §§ 2241(c), 2246(2)(c), 1151 & 1152; Count 2: Abusive Sexual Contact in Indian Country – 18 U.S.C. §§ 2244(a)(5), 2246(3), 1151 & 1152 [Johnston County – Chickasaw Nation Reservation]
United States v. Clay Lee Scrivener – Count 1: Lewd and Indecent Touching of a Child Under 16 in Indian Country – 18 U.S.C. §§ 1151, 1152, 13 & 21 O.S.A. § 1123(A)(2) [Carter County – Chickasaw Nation Reservation]
United States v. Montelito Sanchez Simpkins (superseding indictment) – Count 1: Sexual Abuse of a Minor in Indian Country – 18 U.S.C. §§ 2243(a), 2246(2)(D), 1151 & 1152; Count 2: Abusive Sexual Contact in Indian Country – 18 U.S.C. §§ 2244(a)(3), 2246(3), 1151 & 1152 [Pontotoc County – Chickasaw Nation Reservation]
United States v. Jeffrey Brent Thomas – Count 1: Aggravated Sexual Abuse in Indian Country – 18 U.S.C. §§ 2241(c), 2246(2)(D), 1151 & 1153; Count 2: Aggravated Sexual Abuse in Indian Country – 18 U.S.C. §§ 2241(c), 2246(2)(D), 1151 & 1153; Count 3: Aggravated Sexual Abuse in Indian Country – 18 U.S.C. §§ 2241(c), 2246(2)(D), 1151 & 1153; Count 4: Aggravated Sexual Abuse in Indian Country – 18 U.S.C. §§ 2241(c), 2246(2)(D), 1151 & 1153; Count 5: Aggravated Sexual Abuse in Indian Country – 18 U.S.C. §§ 2241(c), 2246(2)(D), 1151 & 1153; Count 6: Aggravated Sexual Abuse in Indian Country – 18 U.S.C. §§ 2241(c), 2246(2)(D), 1151 & 1153 [Pittsburg County – Choctaw Nation Reservation]
Other Violent Crimes:
United States v. Michael Paul Blagg – Count 1: First Degree Burglary in Indian Country – 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. § 1431; Count 2: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country – 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Forfeiture Allegation – 18 U.S.C. § 924(d) & 28 U.S.C. § 2461(c) [Bryan County – Chickasaw Nation Reservation]
United States v. Cameron Dale Bowden – Count 1: Burglary in the Second Degree in Indian Country – 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. § 1435(A); Count 2: Burglary in the Third Degree in Indian Country – 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. § 1435(B) [Haskell County – Choctaw Nation Reservation]
United States v. Justin Blake Castillo – Count 1: Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country - 18 U.S.C. §§ 113(a)(3), 1151 & 1152 [Sequoyah County – Cherokee Nation Reservation]
United States v. Terrell Eugene Delozier – Count 1: Domestic Violence in Indian Country – 18 U.S.C. §§ 2261(a)(1), 2261(b)(3), 1151 & 1152; Count 2: Assault With a Dangerous Weapon With Intent to Do Bodily Harm in Indian Country – 18 U.S.C. §§ 113(a)(3), 1151 & 1152; Count 3: Burglary in the First Degree in Indian Country – 18 U.S.C. §§ 1151, 1152 & 21 O.S.A. § 1431; Count 4: Use, Carry and Brandish of a Firearm During and in Relation to a Crime of Violence – 18 U.S.C. §§ 924(c)(1)(A)(i) & (ii); Count 5: Child Neglect in Indian Country – 18 U.S.C. §§ 1151, 1152 & 21 O.S.A. § 843.5(C) [Pontotoc County – Chickasaw Nation Reservation]
United States v. Kody Fields, FVS-CHVTV Amos Lawhead, and Jimmy Dale Brown – Count 1: Robbery in Indian Country – 18 U.S.C. §§ 2111, 2, 1151 & 1153; Count 2: Use, Carry, and Brandish of a Firearm During and in Relation to a Crime of Violence – 18 U.S.C. §§ 924(c)(1)(A) & 2 [Cherokee County – Cherokee Nation Reservation]
United States v. Raymond David Goldman – Count 1: Assault With a Dangerous Weapon With Intent to Do Bodily Harm in Indian Country – 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 2: Use, Carry, Brandish and Discharge of a Firearm During and In Relation to a Crime of Violence – 18 U.S.C. §§ 924(c)(1)(A)(i),(ii) & (iii); Count 3: Felon in Possession of Ammunition – 18 U.S.C. §§ 922(g)(1) & 924(a)(2); Forfeiture Allegation – 18 U.S.C. § 924(d) and 28 U.S.C. § 2461(c) ) [Cherokee County – Cherokee Nation Reservation]
United States v. Ronald Edward Good – Count 1: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country – 18 U.S.C. §§ 113(a)(3), 1151 & 1152 [Carter County – Chickasaw Nation Reservation]
United States v. Andy Matthew Hyden a/k/a Andrew Mathew Hyden – Count 1: Robbery in Indian Country – 18 U.S.C. §§ 2111, 1151 & 1153; Count 2: Assault Resulting in Serious Bodily Injury in Indian Country – 18 U.S.C. §§ 113(a)(6), 1151 & 1153; Count 3: Felon in Possession of Firearm and Ammunition – 18 U.S.C. §§ 922(g)(1) & 924(a)(2) [Pittsburg County – Choctaw Nation Reservation]
United States v. Gregory Alan Mouse, a/k/a Gregory Alan Fields, a/k/a Gregory Alan Fields-Mouse – Count 1: Assault Resulting in Serious Bodily Injury in Indian Country – 18 U.S.C. §§ 113(a)(6), 1151 & 1153 [Cherokee County – Cherokee Nation Reservation]
United States v. Gregory Alan Mouse, a/k/a Gregory Alan Fields, a/k/a Gregory Alan Fields-Mouse – Count 1: Robbery in Indian Country – 18 U.S.C. §§ 2111, 1151 & 1153 [Cherokee County – Cherokee Nation Reservation]
United States v. Dustin James Patterson – Count 1: First Degree Burglary in Indian Country – 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. § 1431; Count 2: Assault with a Dangerous Weapon in Indian Country – 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 3: Attempted Robbery in Indian Country – 18 U.S.C. §§ 2111, 1151 & 1153 [Adair County – Cherokee Nation Reservation]
United States v. Dustin James Patterson – Count 1: First Degree Burglary in Indian Country – 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. § 1431; Count 2: Assault with a Dangerous Weapon in Indian Country – 18 U.S.C. § 113(a)(3), 1151 & 1153; Count 3: Attempted Robbery in Indian Country – 18 U.S.C. §§ 2111, 1151 & 1153 [Adair County – Cherokee Nation Reservation]
United States v. Hunter Caleb Spence – Count 1: Involuntary Manslaughter in Indian Country, 18 U.S.C. §§ 1112, 1151 & 1153 [LeFlore County – Choctaw Nation Reservation]
United States v. Amada Edith Winship – Count 1: Assault with Intent to Commit Murder in Indian Country – 18 U.S.C. §§ 113(a)(1), 1151 & 1153; Count 2: Assault Resulting in Serious Bodily Injury in Indian Country – 18 U.S.C. §§ 113(a)(6), 1151 & 1153; Count 3: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country – 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 4: Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence – 18 U.S.C. §§ 924(c)(1)(A)(i),(ii) & (iii); Forfeiture Allegation – 18 U.S.C. § 924(d) and 28 U.S.C. § 2461(c) [Pittsburg County – Choctaw Nation Reservation]
Non-Indian Crimes:
United States v. Eugene Lee Dozier, Sr. – Count 1: Engaging in the Business of Dealing, Importing, and Manufacturing Firearms without a License – 18 U.S.C. §§ 922(a)(1)(A) & 924(a)(2); Count 2: Transferring a Firearm to an Out of State Residence – 18 U.S.C. §§ 922(a)(5) & 924(a)(1)(D) [Pittsburg County]
United States v. Nicolas Isaiah Franco, a/k/a Nicholas Isaiah Franco – Count 1: Possession with Intent to Distribute Methamphetamine – 21 U.S.C. §§ 841(a)(1) & 841(b)(1)(B) [Adair County]
United States v. Jeremy Matthew Girty – Count 1: Possession with Intent to Distribute Methamphetamine – 21 U.S.C. §§ 841(a)(1) & 841(b)(1)(C); Count 2: Possession of a Firearm in Furtherance of a Drug Trafficking Crime – 18 U.S.C. § 924(c)(1)(A); Count 3: Felon in Possession of a Firearm – 18 U.S.C. §§ 922(g)(1) & 924(a)(2); Forfeiture Allegation – 18 U.S.C. § 924(d), 21 U.S.C. § 853 & 28 U.S.C. § 2461(c) [Carter County]
United States v. Bryan Todd Richardson, II – Count 1: Travel with Intent to Engage in Illicit Sexual Conduct – 18 U.S.C. § 2423(b); Count 2: Transportation of a Minor with Intent to Engage in Criminal Sexual Activity – 18 U.S.C. § 2423(a); Count 3: Travel With Intent to Engage in Illicit Sexual Conduct - 18 U.S.C. §§ 2423(b) [Wagoner County]
United States v. Bendrick Anthony Whitfield – Count 1: Possession With Intent to Distribute Methamphetamine – 21 U.S.C. §§ 841(a)(1) & 841(b)(1)(A); Count 2: Distribution of Methamphetamine – 21 U.S.C. §§ 841(a)(1) & 841(b)(1)(B); Count 3: Distribution of Methamphetamine – 21 U.S.C. §§ 841(a)(1) & 841(b)(1)(B); Count 4: Possession of a Firearm in Furtherance of a Drug Trafficking Crime – 18 U.S.C. § 924(c)(1)(A); Count 5: Felon in Possession of a Firearm and Ammunition – 18 U.S.C. §§ 922(g)(1) & 924(a)(2); Forfeiture Allegation – 18 U.S.C. § 924(d), 21 U.S.C. § 853 & 28 U.S.C. § 2461(c) [McCurtain County]
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
USP Lee Inmate Sentenced for Possessing a Weapon Inside the PrisonRead the Press Release
ABINGDON, Va. – An inmate at USP Lee in Jonesville, Virginia was sentenced this week to 41 months of additional incarceration for possessing a weapon inside the prison.
According to court documents, Jose Soto-Ramirez, 35, possessed a weapon inside USP on December 22, 2019. He was sentenced this week to 41 additional months of incarceration and a 3-year term of supervised release.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement.
The investigation of the case was conducted by the Federal Bureau of Prisons.
Special Assistant U.S. Attorney Christine M. Hummert prosecuted the case for the United States.
U.S. Attorney’s Office Announces Convictions in Six Federal Firearms and Fentanyl Cases This Week Involved in the Project Safe Neighborhood Gun Violence Reduction ProgramRead the Press Release
Baltimore, Maryland – Today, the U.S. Attorney’s Office for the District of Maryland announced convictions in six federal cases involving firearms and fentanyl that are being prosecuted in U.S. District Court in Baltimore. These six cases were brought pursuant to initiatives of the U.S. Attorney’s Office designed to reduce gun violence and to stop the sale of fentanyl in Baltimore.
“The successful prosecutions and convictions in these six firearms and fentanyl cases demonstrates the United States Attorney’s Office’s commitment to addressing gun violence and the trafficking of fentanyl,” said Acting United States Attorney Jonathan F. Lenzner. “Our strategy to reduce violent crime in Baltimore relies on enforcement efforts to prosecute those individuals who are driving the violence and importing deadly drugs, as well as community outreach and prevention efforts to help potential offenders make better choices for themselves and their families and communities. I would like to thank all of the prosecutors, investigators and community outreach specialists for their dedication to making our communities safer places to live for all residents. All of us in Baltimore are in this fight against violent crime together.”
The six project safe neighborhood convictions from this week include:
United States v. Sedrick Sutton: On September 17, 2021, U.S. District Judge Ellen L. Hollander sentenced Sutton to five years in federal prison for being possessing a stolen firearm. As a result of an altercation observed on a city watch camera, law enforcement identified Sutton as an individual that was present at the altercation. At the time of the altercation, Sutton possessed a handgun in his waistband. Officers arrived at the scene and located Sutton. As a result of a search of Sutton’s persons, officers recovered a loaded handgun from his waistband.
United States v. Daiquan Mayo: On September 29, 2021, U.S. District Judge Ellen L. Hollander sentenced Mayo to 50 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm. Mayo was apprehended for his participation in a non-fatal West Baltimore shooting near Edmonson Village. Mayo was a passenger in a vehicle involved in the shooting. As law enforcement officers stopped the vehicle, Mayo fled on foot and threw a loaded .40 caliber pistol off of his persons. Ballistics analysis concluded that the firearm Mayo threw matched the gun used in the shooting minutes earlier.
United States v. Damien Parker: On September 28, 2021, U.S. District Judge Richard D. Bennett sentenced Parker to 60 months in federal prison for being a felon in possession of a firearm. The sentencing comes as a result of officers observing Parker conducting a suspected drug transactions Baltimore, Maryland. Officers also observed the Parker conducting "security checks" which is a characteristic of an armed individual. Patrol officers responded to the block and arrested Parker. As a result of a search, officers recovered a loaded firearm, 43 jugs of suspected cocaine packaged for distribution.
United States v. Jeffrey Keyser: On September 28, 2021, U.S. District Judge Richard D. Bennett sentenced Keyser to 44 months in federal prison for being a felon in possession of a firearm. The sentencing comes as a result of a traffic stop on a vehicle that Keyser was operating. As officers approached Keyser’s vehicle, Kesyer sped away and crashed into another car. When pulling Keyser out of the vehicle, police found a firearm on the floor by the driver-side front door. Swabs from non-bloodied portions of the gun returned a match for Keyser's DNA. Keyser also made incriminating statements over jail calls.
United States v. George Graham: Today, Graham is scheduled to be sentenced before U.S. District Judge Stephanie A. Gallagher for possession of a firearm as a prohibited person. The sentencing comes as a result of officers using real time investigations, and conducting a traffic stop of Graham’s vehicle for illegal tint and a cracked windshield. During the stop, officers noted the order of marijuana coming from the vehicle and asked the Graham to step out of the vehicle. Graham admitted to having marijuana on his person. As officers searched the vehicle, Graham attempted to flee the scene. As a result of the search, officers recovered a loaded firearm from the center console.
United States v. Qarier Lovelace: Today, Lovelace is expected to enter a guilty plea for being a felon in possession of a firearm before U.S. District Judge Stephanie A. Gallagher. The plea comes as a result of officers responding to a hospital alter for an non-fatal shooting victim. Upon responding, officers spoke with a male who advised he had been shot while present at a dispute between his girlfriend and another woman. While present at the scene, a male walked through the parking lot before approaching the group, advising the women to resolve their dispute, and shooting the male in the leg. Upon reviewing a photo, a victim identified Lovelace as the shooter. Based on this, officers obtained and executed a search warrant associated with Lovelace. As a result of the search warrant, Officers recovered a safe with two loaded firearms, ammunition, two knotted bags of white powder, and paperwork bearing Lovelace’s name. One of these firearms was reported stolen from a federal firearm license in 2017. Lovelace’s fingerprints were located on the firearm. Officers also recovered parts of a revolver, ammunition, bags of white and brown powders, drug paraphernalia, and a digital scale. CDS analysis showed the presence of heroin and cocaine. During a post-Miranda interview, the defendant admitted to living at the residence, ownership of the drugs, and ownership of the safe.
The continued success of the firearm reduction initiative in Baltimore is in part due to the work of the Special Assistant U.S. Attorneys (SAUSAs) who work in the U.S. Attorney’s Office and are employed by the Maryland Attorney General’s Office and the Office of the State’s Attorney for Baltimore City and funded through grants from the Governor’s Office of Crime Prevention, Youth & Victim Services.
In the effort to positively influence and encourage previous offenders to pursue a crime-free lifestyle, the United States Attorney’s Office for the District of Maryland supports and often participates in previous offender re-entry efforts. On October 13, 2021, the USAO-MD is supporting a re-entry resource fair hosted by the Bridge Center at Adam’s House, the Prince George’s County Reentry Advisory Board, the Prince George’s County State’s Attorney Office, and the Prince George’s County Department of Corrections at the Palmer Park Community Center from 10 a.m. to 2 p.m. The re-entry event will connect past offenders with employment opportunities as well as educational, financial, health resources, and more. For more information on the re-entry event, please visit https://twitter.com/USAO_MD/status/1444010091896836130.
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. 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.
For more information on the Maryland U.S. Attorney’s Office’s Project Safe Neighborhoods program (PSN), a unified and comprehensive strategy to combat gun crime that combines local, state and federal law enforcement efforts; community outreach; and public awareness, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile.
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U.S. Attorney Announces a $125,520 Award from the U.S. Department of Justice to Address Residential Substance Abuse Treatment for State/Territorial Prisoners in the U.S. Virgin IslandsRead the Press Release
ST. THOMAS, USVI – U.S. Attorney Gretchen C.F. Shappert announced today that the U.S. Virgin Islands Law Enforcement Planning Commission has received a $125,520 grant from the U.S. Department of Justice in support of residential substance abuse treatment for state/territorial prisoners.
The award from the Bureau of Justice Assistance supports the vital work of the U.S. Virgin Islands Law Enforcement Planning Commission’s efforts to increase services to state/territorial prisoners.
“The Law Enforcement Planning Commission provides substance abuse offenders essential treatment programs during and after incarceration in the U.S. Virgin Islands,” Shappert said. “These funds support direct services to assist offenders in their recovery from substance abuse.”
The Residential Substance Abuse Treatment (RSAT) for State Prisoners Program assists states, territories, and local governments to develop and implement substance abuse treatment programs in state, territory, and local correctional and detention facilities and to create and maintain community-based aftercare services for offenders. The goal of the RSAT Program is to break the cycle of drugs and violence by reducing the demand for, use, and trafficking of illegal drugs. RSAT enhances the capability of states, territories, and units of local government to provide residential substance abuse treatment for incarcerated inmates; prepares offenders for their reintegration into the communities from which they came by incorporating reentry planning activities into treatment programs; and assists offenders and their communities through the reentry process through the delivery of community-based treatment and other broad-based aftercare services. The grantee will use the RSAT funds to implement up to three types of programs: residential, jail-based, and aftercare.
The Bureau of Justice Assistance (BJA) offers funding through a variety of different programs. Learn about funding webinars, apply to become a peer reviewer, find information about previously available solicitation, and see award details. Learn more at www.bja.ojp.gov/funding.
U.S. Attorney Announces a $10,233 Award from the U.S. Department of Justice to Support the Prosecutors and Public Defenders Incentive Program in the U.S. Virgin IslandsRead the Press Release
ST. THOMAS, USVI – U.S. Attorney Gretchen C.F. Shappert announced today that the U.S. Virgin Islands Law Enforcement Planning Commission has received a $10,233 grant from the U.S. Department of Justice in support of the John R. Justice Prosecutors and Public Defenders Incentive Program.
The award from the Bureau of Justice Assistance (BJA) supports the U.S. Virgin Islands Law Enforcement Planning Commission’s efforts to retain skilled public defenders and prosecutors in the Territory.
“These funds encourage the continued service of skilled public defenders and prosecutors within the U.S. Virgin Islands,” Shappert said.
The John R. Justice (JRJ) Grant Program (also referred to as the John R. Justice Student Loan Repayment Program or JRJSLRP) provides student loan repayment assistance for local, state, territorial and federal public defenders and local, state, and territorial prosecutors who commit to extended service in those roles. To administer this program, BJA provides each of the 50 states, the territories, and the District of Columbia the opportunity to apply for formula funding to support a tuition and loan repayment program for eligible beneficiaries working within the states, territory's, or District’s jurisdiction. These designated agencies shall establish and maintain a statewide JRJ Grant Program consistent with the Act and programmatic guidance provided by BJA. Once the state/territory has received the grant award, the state/territory administering agency is responsible for outreach, education, and solicitation of applications from eligible beneficiaries. The state/territory will ensure grant funds for loan repayment are allocated fairly between prosecutors and public defenders, with a priority placed on those eligible beneficiaries who have the least ability to repay their loans.
The Bureau of Justice Assistance (BJA) offers funding through a variety of different programs. Learn about funding webinars, apply to become a peer reviewer, find information about previously available solicitation, and see award details here.
Two New Orleans Men Sentenced in Connection with the 2013 Murder of Loomis Armored Guard Hector TrochezRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced today, that on September 30, 2021, LILBEAR GEORGE, 31, and CHUKWUDI OFOMATA, 35, both of New Orleans, were each sentenced by U.S. District Judge Lance Africk to 480-month terms of imprisonment. Both men previously pleaded guilty to Using, Carrying, Brandishing, and Discharging of a Firearm in Furtherance of a Crime of Violence, a violation of Title 18, United States Code, Sections 924(c)(1)(A)(iii), 924(j)(1), and 2, which resulted in death, to wit: the December 18, 2013 murder of Hector Trochez. After their terms of imprisonment, GEORGE and OFOMATA will be supervised by the U.S. Probation Office for five years. They each must pay a mandatory $100 special assessment fee. The Court ordered that restitution be paid to Loomis Armored in the amount of $265,000.
According to court documents, on the morning of December 18, 2013, GEORGE and OFOMATA robbed the Loomis armored vehicle as it was making a delivery of approximately $265,000 to the Chase Bank branch located at the intersection of S. Carrollton and S. Claiborne Avenues. GEORGE and OFOMATA learned about the Loomis deliveries from a known individual who was employed at that Chase branch.
As the Loomis guard, Hector Trochez, prepared to make the delivery, GEORGE and OFOMATA, both armed, exited their vehicle (a Chevy Tahoe stolen by GEORGE in preparation for the robbery), and ordered Trochez to give up the money. Trochez pulled his weapon and fired at the robbers. OFOMATA and GEORGE fired their weapons in Trochez’s direction. Trochez was fatally struck on the left side of his forehead and suffered a graze wound to his elbow. One of the robbers ran towards the rear of the Loomis truck and took possession of the money bag before re-entering the Tahoe. The robbers fled the Chase Bank parking lot.
A witness, seated in a vehicle at the corner of S. Claiborne and S. Carrollton Avenues observed the shooting and provided a description of the shooters and the vehicle they occupied. That witness followed the Chevy Tahoe as it fled the location of the shooting/robbery. During the vehicle’s flight, one of the shooters fired at the witness’s vehicle in an attempt to stop the witness from following. The witness observed the Chevy Tahoe arrive at the 1700 block of Adams Street and saw the robbers exit the Chevy Tahoe and enter the awaiting Honda Accord. After the individuals entered the Honda Accord, they fled the Adams Street location, leaving the Chevy Tahoe behind.
The Chevy Tahoe was recovered by the New Orleans Police Department and searched pursuant to a federal search warrant. During the search, FBI agents observed that the steering wheel column of the vehicle had been breached. Agents located two screwdrivers on the floorboard of the Tahoe. The screwdrivers were collected and submitted for DNA testing at the Louisiana State Police Crime Laboratory. An unknown DNA profile, later confirmed to be that of GEORGE, was recovered from one of the screwdrivers. Based on the recovery of GEORGE’s DNA from the screwdriver, an arrest warrant was issued.
Co-defendants Jeremy Esteves and Robert Brumfield III were found guilty by a jury at trial in November 2019. Co-defendant Jasmine Theophile, GEORGE’s girlfriend, previously pled guilty to obstructing justice. They will be sentenced on October 13, 2021.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation along with the New Orleans Police Department and the Louisiana State Police. Assistant United States Attorneys Brittany L. Reed, Gregory M. Kennedy, and Inga C. Petrovich are prosecuting the matter.
Two McIntosh County men sentenced to federal prison for armed robbery, other chargesRead the Press Release
SAVANNAH, GA: Two McIntosh County men indicted as part of a major drug trafficking operation have been sentenced to federal prison for charges including armed robbery.
John Hope Jr., 28, of Townsend, Ga., was sentenced to 111 months in prison followed by three years of supervised release and ordered to pay $677 in restitution after pleading guilty to Interference with Commerce by Robbery and Brandishing a Firearm During and in Relation to a Crime of Violence, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia.
Hope’s co-defendant in the robbery, Tyler Marshall, 27, also of Townsend, was sentenced to 93 months in prison followed by three years of supervised release and ordered to pay $677 in restitution after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, Heroin, and Cocaine, and Interference with Commerce by Robbery. There is no parole in the federal system.
“These two men chose to not only participate in a drug trafficking organization that spread poison throughout south Georgia, but also terrorized innocent people at gunpoint,” said Acting U.S. Attorney Estes. “They well deserve their time in prison.”
Hope and Marshall were among 17 defendants indicted in July 2020 in Operation Krack Down, an Organized Crime Drug Trafficking Task Forces (OCDETF) investigation that targeted a drug trafficking organization in Liberty, Bryan, McIntosh, and Wayne counties with ties to the Ghost Face Gangsters criminal street gang. At the time of the indictment, Hope and Marshall were in custody for the Jan. 3, 2020, armed robbery of a Liberty County gas station.
Three other defendants in Operation Krack Down have been sentenced to federal prison terms of up to 181 months after pleading guilty to drug trafficking charges, while six defendants await sentencing after pleading guilty. Five others are awaiting trail and are presumed innocent unless or until proven guilty, and one defendant, Cruz Lawson, 33, of Jesup, Ga., is a fugitive.
“The mission of DEA is unwavering – we relentlessly pursue drug traffickers,” said Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration’s Atlanta Field Division. “These defendants and their organization distributed dangerous drugs that caused immeasurable damage to the McIntosh County community. These sentences are a perfect example of how the law enforcement community and the U.S. Attorney’s Office work together to remove violent criminals from our streets.”
“Drugs and violence have no place in Georgia. Citizens deserve to feel safe, however, these two men threatened this coastal community and are being now held accountable,” said Vic Reynolds, Director of the Georgia Bureau of Investigation. “The GBI values its partnership with federal and local agencies, including prosecutors, to ensure justice is served.”
Operation Krack Down was investigated under the Organized Crime Drug Enforcement Task Forces. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Agencies investigating the case include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Drug Enforcement Administration (DEA), the U.S. Marshals Service, the Georgia Bureau of Investigation (GBI), the McIntosh County Sheriff’s Office, the Bryan County Sheriff’s Office, the Liberty County Sheriff’s Office, and the Richmond Hill Police Department, and prosecuted for the United States by OCDETF Coordinator and Assistant U.S. Attorney Marcela C. Mateo.
Two Individuals Convicted of Murder and Extortion of Queens Business OwnerRead the Press Release
Earlier today, a federal jury in Brooklyn convicted Ppassim Elder, also known as “Bsam,” “Big Sam” and “Sam,” and Wilbert Bryant, also known as “Will” and “La,” of extortion, bank fraud, firearms and murder offenses. The verdict followed a three-week trial before by United States District Judge William F. Kuntz, II. When sentenced, the defendants face up to life in prison.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Dermot F. Shea, Commissioner, New York City Police Department, announced the verdict.
“With today’s verdict, a jury has held the defendants accountable for their heinous crimes, including the murder of a Queens business owner while attempting to collect a debt they claimed was owed by the victim’s son,” stated Acting United States Attorney Kasulis. “This Office and our law enforcement partners are working tirelessly to protect the communities in our district from violent criminals like the defendants who will now face very serious consequences for their actions.” Ms. Kasulis also expressed her appreciation to the Queens County District Attorney’s Office for their assistance during the investigation and prosecution.
As proven at trial, on the morning of October 23, 2017, Bryant and two other perpetrators walked into Garden Valley Distributors, a family-owned wholesale distribution business located in Ozone Park, Queens. The perpetrators said that “Big Sam” had sent them to collect his money. Earlier that year, Elder, who was known as “Big Sam,” had given the murder victim’s son money, which the son used to support the business. When Elder demanded full repayment, the son was unable to repay the debt because much of the money had been used to purchase merchandise for Garden Valley. Elder then began a campaign of intimidation against the son and his family. On one occasion, Elder paid co-conspirators to throw a rock through a window of the victim’s home. On another, Elder barged into the family home, intimidating members of the victim’s family. Finally, Elder dispatched Bryant and two co-conspirators into Garden Valley business where, on October 23, 2017, the perpetrators brandished a firearm, pistol-whipped the son and fatally shot the father in the face.
In addition to the murder, Elder extorted another person whose brother had stolen the proceeds of a fraud scheme committed by Elder. Although the victim was not involved in the theft, Elder nonetheless punched him in his face in front of his daughters, breaking and bloodying his nose in order to “send a message” to the victim’s brother. Elder and Bryant were also convicted of bank fraud conspiracy for lying to banks about the true owner of certain bank accounts, which permitted Elder to defraud innocent victims across the country, including an elderly man who lost over $30,000 when he was tricked into believing he was purchasing a car and another individual who lost over $150,000 when he was defrauded into believing he was purchasing two real estate properties. Elder was also convicted of crimes committed after his arrest in this case, including stealing his attorney’s identity and lying to federal officials.
This case was brought 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. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Keith D. Edelman, Genny Ngai and Anna L. Karamigios are in charge of the prosecution.
The Defendants:
PPASSIM ELDER (also known as “Bsam,” “Sam” and “Big Sam”)
Age: 42
Staten Island, New YorkWILBERT BRYANT (also known as “Will” and “La”)
Age: 57
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-92 (S-5) (WFK)
Turkish National Pleads Guilty to Conspiracy to Commit Health Care and Wire Fraud in “Birth Tourism” SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Ibrahim Aksakal pleaded guilty to conspiring to commit health care and wire fraud in connection with a so-called “birth tourism” scheme in Suffolk County between approximately 2017 and 2020. The scheme facilitated pregnant Turkish women fraudulently entering the United States using tourist and business visas to give birth so that their children would obtain birthright citizenship and medical benefits. As part of his plea, Aksakal consented to the forfeiture of $397,500 as proceeds linked to his role in the scheme. Today’s proceeding was held before United States District Judge Joanna Seybert.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York; Timothy D. Sini, District Attorney for Suffolk County; Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, New York Region (HHS-OIG); Frank T. Walsh, Jr., Acting Medicaid Inspector General, New York State Office of the Medicaid Inspector General (OMIG); and Stuart Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.
“With today’s plea, Aksakal admits to an outrageous scheme in which he caused the Medicaid program to disburse more than $1 million in benefits for pregnant Turkish nationals who, masquerading as tourists, entered the United States under false pretenses to obtain birthright citizenship for their newborns,” stated Acting U.S. Attorney Kasulis. Ms. Kasulis also thanked the United States Department of State, Diplomatic Security Service, for its assistance with the case.
“This was an extremely complex, international investigation that led law enforcement to the core of this scheme right here in our backyard,” stated District Attorney Sini. “More than $1 million of American citizens’ hard-earned money was stolen through this conspiracy, and today’s plea holds its ringleader accountable. We will not tolerate the theft of taxpayer money in any form, and will continue to work with all of our law enforcement partners to target, arrest and prosecute anyone trying to take advantage of the system.”
“The criminality of birth tourism manipulates our visa and immigration systems and diverts precious financial resources from an already exhausted health care system that serves our local communities to combat COVID-19 and other critical needs,” stated HSI Special Agent-in-Charge Fitzhugh. “This is a criminal organization that threatens our homeland and preys on the vulnerable. HSI, along with its valued partners, will continue to use every resource to dismantle and bring those responsible to justice.”
“Millions of people in New York depend on Medicaid for vital services, and taxpayers across the state pay for that care,” stated HHS-OIG Special Agent-in-Charge Lampert. “When individuals like Mr. Aksakal use this program to perpetrate fraud, they divert precious funding that puts the future availability of Medicaid and other public assistance programs at risk. HHS-OIG and our law enforcement partners will continue to aggressively root out fraud schemes and hold criminals accountable.”
“Medicaid fraud, as this egregious scheme represents, threatens the health and safety of beneficiaries, wastes tax payer dollars and drains essential resources from the health care delivery system,” stated Acting OMIG Inspector General Walsh. “My office will continue to be vigilant, particularly in these most challenging times in responding to the COVID-19 pandemic, and work closely with our law enforcement partners to protect the integrity of the Medicaid program, hold wrong doers fully accountable, and preserve precious health care resources.”
“Healthcare fraud is an issue that hurts both the individuals who rely on these services and the taxpayers who ultimately get stuck with the bill,” stated SCPD Commissioner Cameron said. “This is the first time the Suffolk County Police Department handled a birth tourism case and I would like to commend the efforts of our Criminal Intelligence detectives as well as our partners in law enforcement who successfully worked on this case while also sending a message to others exploiting birth tourism—bilking the system and swindling our residents is not be an acceptable practice here in Suffolk.”
From at least January 2017 to the September 2020, Aksakal and his co-conspirators advertised a birth tourism scheme on two Turkish-language Facebook pages, www.facebook.com/ bebegimamerikadadogsun and www.facebook.com/amerikadadogum.org, and a Turkish-language website https://amerikadadogum.org. Translated into English, “bebegimamerikadadogsun” means “My baby should be born in America,” and “amerikadadogum” means “Giving Birth in America.” As translated, some of the defendants’ advertisements stated, “If you believe your baby should be born in the USA and become a U.S. citizen then you are at the right place. . . . [W]e at ‘Bebegim Amerika Dogsun’ . . . will provide future mothers and fathers this opportunity, with minimal costs . . . .” The advertisements further stated that fees paid by pregnant women – approximately $7,500 nearly all in cash – would include transportation, “insurance” to cover the costs of pre-natal, delivery and post-natal medical care, assistance with the process for applying for United States citizenship on behalf of children born in connection with the scheme and consultation in Turkish concerning health care issues. Aksakal and his co-conspirators also instructed the women to conceal their pregnancies.
The pregnant women stayed in one of seven “birth houses” that Aksakal maintained in Center Moriches, Dix Hills, East Northport, East Patchogue, Smithtown and West Babylon, New York. In addition to facilitating fraudulently obtained Medicaid benefits and lodging and transportation of the pregnant women, Aksakal and his co-conspirators also advertised the scheme on websites. As a result of the scheme, Medicaid disbursed more than $1 million in fraudulently obtained benefits.
When sentenced, Aksakal faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King and Oren Gleich and Special Assistant United States Attorney Jeremy Glicksman are in charge of the prosecution.
The Defendant:
IBRAHIM AKSAKAL (also known as “Dennis”)
Age: 49
East Patchogue, New YorkE.D.N.Y. Docket No. 20-CR-400 (JS)
Tulsa Man Sentenced to More than 30 Years in Prison for Raping a MinorRead the Press Release
A Tulsa man who forced a minor to perform sex act in return for basic necessities was sentenced this week in federal court, announced Acting U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced James Damien McIntosh, 43, to a total of 365 months in federal prison followed by a lifetime of supervised release.
On May 11, 2021, McIntosh pleaded guilty to incest in Indian Country and attempted coercion and enticement of a minor. McIntosh admitted to knowingly engaging in sexual intercourse with a minor female from March 18, 2015, to Dec. 10, 2019. He further admitted to using his cell phone to coerce the minor into sexual activity.
According to court documents, the minor disclosed to authorities that she had been raped by McIntosh numerous times starting in 2015. She told officers that the defendant would send electronic messages using code words to coerce her into sex acts with him. McIntosh would make her perform the sex acts in exchange for privileges and basic necessities like clothing and toiletries. He would also threaten the victim and physically assault the victim if she did not comply with his demands.
The FBI and Tulsa Police Department investigated the case. Assistant U.S. Attorneys Sandra M. Urban and Christopher J. Nassar prosecuted the case.
Tractor-Trailor Driver from Illinois Sentenced for Transporting Minor from Virginia to South Dakota and Engaging in Criminal Sexual ActivityRead the Press Release
ABINGDON, Va.– A Cahokia, Illinois man was sentenced yesterday to 180 months in prison for transporting a minor from Virginia to South Dakota with the intent to engage in criminal sexual activity.
According to court documents, David Skaggs, 33, was an over-the-road tractor-trailer operator. In 2015, Skaggs started communicating on Facebook with a 15-year-old boy in Lee County, Virginia. Over the course of several months, Skaggs and the boy, “AA,” developed a friendly relationship and Skaggs became acquainted with AA’s family, including AA’s younger sister, victim “KL,” who was 13 years old.
In August 2015, Skaggs took AA and KL on a long-distance trip in his tractor-trailer. Skaggs picked up AA and KL in Lee County and drove them to South Dakota. After stopping at a truck stop in South Dakota, Skaggs bought the two minors alcohol, and they all drank while sitting in the truck. After AA was asleep, Skaggs had sexual intercourse with KL in the sleeper portion of Skaggs’ truck. KL later gave birth to Skaggs’s child.
“David Skaggs befriended the victim’s family to gain their trust only to later identify and abuse the young victim after driving her halfway across the country,” Acting United States Attorney Daniel P. Bubar said today. “Today’s sentence reflects the serious nature of his offense and just how serious this Justice Department approaches cases involving the abuse of children. I am grateful to the FBI, Lee County Sheriff’s Office and the Virginia Department of Social Services for the professional manner in which they handled this very serious and very delicate matter.”
“The FBI is committed to the safety and well-being of our community members, especially minors who unsuspectingly become associated with online predators and are victimized through betrayal and exploitation,” Special Agent in Charge of the FBI’s Richmond Division, Stanley M. Meador said today. “FBI Richmond will continue to work with our local, state, and federal partners to identify, investigate and prosecute these criminals and provide appropriate resources for the victims. If you know of or suspect someone has inappropriate contact with a minor, please report it to law enforcement immediately.”
The Federal Bureau of Investigation, Lee County Sheriff’s Department, and Virginia Department of Social Services investigated the case.
Assistant U.S. Attorney Whit D. Pierce is prosecuting the case.
Three Generic Pharmaceutical Companies Agree to Pay Almost Half a Billion Dollars to Resolve Alleged False Claims Act Liability, Bringing Total Payments for Price-Fixing to Nearly $900 MillionRead the Press Release
PHILADELPHIA – Acting U.S. Attorney Jennifer Arbittier Williams announced that three generic pharmaceutical manufacturers, Taro Pharmaceuticals U.S.A., Inc., Sandoz Inc., and Apotex Corporation, have agreed to pay a total of $447.2 million to resolve alleged violations of the False Claims Act arising from conspiracies to fix the price of various generic drugs. These conspiracies allegedly resulted in higher drug prices for federal health care programs according to the Justice Department. These civil recoveries follow criminal deferred prosecution agreements, under which the three companies previously paid a total of $424.7 million.
The government further alleges that between 2013 and 2015, all three companies paid and received remuneration prohibited by the Anti-Kickback Statute through arrangements on price, supply, and allocation of customers with other pharmaceutical manufacturers for certain generic drugs manufactured by the companies.
Taro Pharmaceuticals U.S.A., Inc., headquartered in New York, has agreed to pay $213.2 million. The Taro drugs allegedly implicated in this scheme address a wide variety of health conditions and include etodolac, a nonsteroidal anti-inflammatory drug used to treat pain and arthritis, and nystatin-triamcinolone cream and ointment, a combination of an antifungal medicine and steroid used to treat certain kinds of skin infections.
Sandoz Inc., headquartered in New Jersey, has agreed to pay $185 million. The Sandoz drugs at issue include benazepril HCTZ, used to treat hypertension, and clobetasol, a corticosteroid used to treat skin conditions.
Apotex Corporation, headquartered in Florida, has agreed to pay $49 million in connection with its sale of pravastatin, a drug used to treat high cholesterol and triglyceride levels.
“This series of civil settlements should serve as a wake-up call for the generic drug industry. Generic drug companies must and will be held accountable for price-fixing schemes which not only cause massive financial harm to federal health care programs, but also may impact the care available to patients,” said Acting U.S. Attorney Williams. “We will continue to aggressively pursue these violations of the Anti-Kickback Statute and the False Claims Act and obtain significant recoveries.”
“Illegal collaboration on the price or supply of drugs increases costs both to federal health care programs and beneficiaries,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department will use every tool at its disposal to prevent such conduct and to protect these taxpayer-funded programs.”
“Conspiring to raise prices on generic medications is illegal and could prevent patients from being able to afford their needed prescription drugs. Americans have the right to purchase generic drugs set by fair and open competition, not collusion,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services (HHS-OIG). “HHS-OIG along with our law enforcement partners will continue to investigate allegations of companies engaging in actions that put the public and the Medicare program at risk.”
In connection with its settlement agreement, each company also entered a five-year corporate integrity agreement (CIA) with OIG. The CIAs include unique internal monitoring and price transparency provisions. They also require the companies to implement compliance measures including risk assessment programs, executive recoupment provisions, and compliance-related certifications from company executives and Board members.
“These kickback schemes harm Medicare, Medicaid, and patients,” said Gregory E. Demske, Chief Counsel to the Inspector General at the U.S. Department of Health and Human Services. “The CIAs promote transparency and accountability by requiring the companies to report price-related information to OIG and mandating individual certifications by key executives involved in pricing and contracting functions.”
“Protecting TRICARE, the healthcare system for U.S. military members and their dependents, is a top priority for the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “When pharmaceutical corporations artificially inflate prices, they undermine the integrity of TRICARE and place an unnecessary financial burden on the program. The settlement agreements announced today are the result of a joint effort and demonstrate the ongoing commitment of DCIS to work with our law enforcement partners, DOJ Civil Frauds and the USAO-EDPA, to investigate healthcare fraud.”
The Anti-Kickback Statute prohibits companies from receiving or paying remuneration in return for arranging the sale or purchase of items such as drugs for which payment may be made by a federal health care program. These provisions are designed to ensure that the supply and price of health care items are not compromised by improper financial incentives. These settlements reflect the important role of the False Claims Act to ensure that the United States is fully compensated when it is the victim of kickbacks paid to further anticompetitive conduct.
All three companies previously entered into deferred prosecution agreements with the Antitrust Division to resolve related criminal charges. Taro paid a criminal penalty of $205.6 million and admitted to conspiring with two other generic drug companies to fix prices on certain generic drugs. Sandoz paid a criminal penalty of $195 million and admitted to conspiring with four other generic drug companies to fix prices on certain generic drugs. Apotex paid a criminal penalty of $24.1 million and admitted to conspiring to increase and maintain the price on pravastatin. The civil settlement payments announced today are in addition to the criminal penalties paid by the companies.
Today’s civil settlements are the third, fourth, and fifth arising from this investigation and were handled by the U.S. Attorney’s Office for the Eastern District of Pennsylvania in conjunction with the Civil Division’s Commercial Litigation Branch (Fraud Section), with investigative support from the HHS-OIG, DCIS, the Defense Health Agency Program Integrity Office, and the Office of Inspector General for the Department of Veterans Affairs. The matters were handled by Assistant U.S. Attorneys Landon Y. Jones III, Rebecca S. Melley and Anthony D. Scicchitano, in conjunction with Senior Trial Counsels Jennifer L. Cihon and Laurie A. Oberembt of the Civil Fraud Section.
Except for those facts admitted to in the deferred prosecution agreements, the claims resolved by the civil settlements are allegations only, and there has been no determination of liability.
Three Current and Former NYPD Officers Charged with BriberyRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging James Davneiro, Giancarlo Osma, and Michael Perri with one count of conspiracy to violate the Travel Act and one count of using interstate facilities to commit bribery. During the relevant period, Davneiro, Osma, and Perri were New York City Police Department (“NYPD”) officers assigned to the 107th Precinct in Queens. Perri retired from the NYPD in June 2020.
The defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Lois Bloom.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Michael J. Driscoll Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot Shea, Commissioner, NYPD, announced the charges.
“As alleged in the indictment, these defendants disgraced their badges and betrayed the public trust and their oaths as police officers by lining their pockets with cash bribes,” stated Acting U. S. Attorney Kasulis. “We will continue to root out and prosecute corruption by those who are sworn to enforce and uphold the law.” Ms. Kasulis also thanked the National Insurance Crime Bureau for its assistance with the case.
“Accepting bribes as a law enforcement officer in lieu of following legal procedure is against the law and won't be tolerated. Those charged today aren't representative of the tens of thousands of men and women who serve the NYPD with honor day in and day out and, as such, will be held accountable for their alleged crime,” stated FBI Assistant Director-in-Charge Driscoll.
“The NYPD cleans its own house. Corruption is a crime and a violation of a police officer’s sworn oath. This investigation is the third phase of an ongoing case where our Internal Affairs Bureau investigators left no stone unturned. I want to thank our FBI partners from the Public Corruption Unit, and the prosecutors of the U.S. Attorney’s Office for the Eastern District of New York who have helped guide this case throughout,” stated NYPD Commissioner Shea.
Beginning in approximately May 2020, after Davneiro and Osma responded as NYPD officers to automobile accidents, they would steer the damaged vehicles to a licensed tow trucking and automobile repair business operated by Perri, instead of using the NYPD’s Directed Accident Response Program, as legally required. That program requires the NYPD to identify appropriate licensed tow trucking and automobile repair businesses to respond to automobile accident scenes and remove damaged vehicles. In exchange for steering the removal and repair of damaged vehicles to Perri’s business, Perri paid Davneiro and Osma thousands of dollars in cash bribes.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to five years in prison.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Ryan C. Harris and Olatokunbo Olaniyan are in charge of the prosecution.
The Defendants:
JAMES DAVNEIRO
Age: 42
Bayside, New YorkGIANCARLO OSMA
Age: 39
Deer Park, New YorkMICHAEL PERRI
Age: 32
East Islip, New YorkE.D.N.Y. Docket No. 21-CR-508 (RPK)
Texas Man Sentenced to 10 Years for Plotting to Attack Data CentersRead the Press Release
A Texas man who plotted to blow up a data center in Virginia was sentenced today to 10 years in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Seth Aaron Pendley, 28, was arrested in April after attempting to obtain an explosive device from an undercover FBI employee in Fort Worth. He pleaded guilty in June to malicious attempt to destroy a building with an explosive and was sentenced today by U.S. District Judge Reed C. O’Connor.
“The Justice Department is constantly on guard for threats posed by violent domestic extremists,” said Acting U.S. Attorney Prerak Shah. “As this case shows, radicals are lurking on the internet, looking for ways to lash out – and far too often, they move their plans off of the web and into the real world. We are indebted to the FBI employee who put his life on the line to disrupt Mr. Pendley’s plot before he could inflict real harm on data center workers, and are proud of today’s sentence.”
“Seth Aaron Pendley’s sentence is an affirmation of the work the North Texas Joint Terrorism Task Force performs around the clock to disrupt threats while keeping our community safe from harm,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The public’s vigilance in reporting suspicious or threatening behavior is key to law enforcement’s ability to take quick action to prevent injuries and the destruction of property.”
In plea papers, Mr. Pendley admitted that he disclosed his plan to blow up an Amazon data center to a confidential source in January.
In late February, he sent the source a list of potential targets and said he hoped a successful attack could “kill off about 70% of the internet.” When the source offered to help him obtain C4 explosives to use in the attack, Mr. Pendley responded enthusiastically. He later showed the source a hand-drawn map of his chosen data center and described how he planned to disguise his car to evade detection by law enforcement.
In late March, the confidential source introduced Mr. Pendley to an individual who he claimed was his explosives supplier, but was actually an undercover FBI employee. In recorded conversations, Mr. Pendley allegedly told the employee he planned to attack web servers that he believed provided services to the FBI, CIA, and other federal agencies.
“The main objective is to f*** up the Amazon servers,” he said, adding that he hoped to anger “the oligarchy” enough to provoke a reaction that would convince the American people to take action against what he perceived to be a “dictatorship.”
During that same conversation, Mr. Pendley claimed to have been present at the Jan. 6 attack on the U.S. Capitol. He said that although he did not enter the building, he came prepared with a sawed off AR rifle, which he left in his car.
On April 8, Mr. Pendley again met with the undercover FBI employee to pick up what he believed to be explosive devices. (In actuality, however, the undercover gave Mr. Pendley inert devices.) After the employee showed Mr. Pendley how to arm and detonate the devices, the defendant loaded them into his car. He was then arrested.
A subsequent search of his residence in Wichita Falls turned up an AR-15 receiver with a sawed off barrel, a pistol painted to look like a toy gun, masks, wigs, notes, and flashcards related to the planned attack.
The FBI’s Dallas Field Office, Wichita Falls Resident Agency and FBI’s North Texas Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorneys Robert Boudreau and Jay Weimer of the Northern District of Texas are prosecuting the case with the assistance of Trial Attorney Alexandra Hughes of the National Security Division.
Stephan Man Sentenced for Assault and Firearm ChargesRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Stephan, South Dakota, man convicted of Assault with a Dangerous Weapon and Brandishing of a Firearm During and in Relation to a Crime of Violence was sentenced on September 21, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Robert Johnson, a/k/a Pitbull, age 43, was sentenced to 108 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Johnson was indicted by a federal grand jury on October 14, 2020. He pled guilty on June 21, 2021.
The conviction stemmed from an incident that occurred on June 20, 2020, in Lower Brule, South Dakota. Johnson approached an individual while brandishing a shotgun. In the course of a brief struggle, the shotgun fired and struck the victim in the shoulder region. Johnson fled the scene, and the shotgun was recovered the next day.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley 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.
Johnson was immediately turned over to the custody of the U.S. Marshals Service.
St. Thomas Man Sentenced After Conspiring to Bring over 6 Kilograms of Marijuana Thru the Henry E. Rohlsen Airport on St. CroixRead the Press Release
St. Croix, USVI – U.S. Attorney Gretchen C.F. Shappert announced that Tarik Babrow, age 24, of St. Thomas, appeared before District Court Judge Wilma A. Lewis and was sentenced today on the charge of Conspiracy to Possess Marijuana with Intent to Distribute.
Babrow was sentenced to a term of 9 months in prison, followed by 3 years of supervised release, received a $1,000 fine, and $100 special assessment. Additionally, $2,871 was ordered forfeited.
According to court documents, on February 11, 2021, Babrow and three other co-conspirators flew into the Henry E. Rohlsen Airport on St. Croix on American Airlines flight number 2003 from Charlotte, North Carolina. Upon their arrival, several pieces of luggage were selected for physical inspection after anomalies were observed while the luggage was examined by an X-ray machine. A subsequent search revealed several clear, vacuum sealed bundles containing a green, leafy substance, which later field-tested positive for marijuana. In total, approximately 6.33 kilograms of suspected marijuana was seized from Babrow and his co-conspirators. In addition, $2,871 was seized from him as drug trafficking proceeds.
Customs and Border Protection and Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Southwest Virginia Man Sentenced for Conspiring to Traffic Methamphetamine from Georgia into Lee and Wise CountiesRead the Press Release
ABINGDON, Va.– A Wise County, Virginia man was sentenced this week to 135 months in prison for conspiring with others to traffic methamphetamine from Georgia into Lee and Wise counties for redistribution.
According to court documents, Cory Austin Hammond, 23, purchased significant quantities of methamphetamine from co-defendant Daniel Rowland and other sources in Georgia. Hammond then transported the drugs into Lee and Wise County for redistribution. Hammond admitted today to purchasing more than 500 grams of methamphetamine between July 1, 2019 and December 31, 2020.
Hammond pleaded guilty in June 2021 to one count of conspiring to distribute and possess with the intent to distribute 500 grams or more of methamphetamine and one count of distributing methamphetamine.
Rowland, along with co-defendants Jonathan Adam Rollins, Jessica Ann Robey, Eric Matthew Glass, and Justin Shane Cress were indicted in February 2021 and are pending trial.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia and Special Agent in Charge Charlie J. Patterson for the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Southwest Virginia Drug Task Force are investigating the case.
Assistant U.S. Attorney Lena Busscher is prosecuting the case.
Six-Time Convicted Felon Sentenced to 37 Months Imprisonment for Illegal Possession of AmmunitionRead the Press Release
East St. Louis, Ill. – A man from the Metro East will spend more than three years in prison for illegally possessing firearm ammunition. Keithen D. Chairs, 25, was sentenced to 37 months in federal prison for being a Felon in Possession of Ammunition.
The crime occurred in July of 2020 when the United States Marshals Service located Chairs in an
East St. Louis apartment and arrested him for multiple active warrants. Chairs was in possession of a backpack which contained 23 rounds of (9 mm) ammunition. Federal law prohibits convicted felons from possessing firearms and firearm ammunition. A federal grand jury indicted
Chairs for being a Felon in Possession of Ammunition in November of 2020, and Chairs pled guilty on
May 25, 2021.As part of his sentence, Chairs will serve a three-year term of supervised release following his release from federal prison.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service Great Lakes Regional Fugitive Task Force, and the St.
Louis Metropolitan Police Department.
The case was prosecuted by Assistant United States Attorneys Christopher Hoell and John Trippi.
Saugus Woman Pleads Guilty to Trafficking Counterfeit Percocet Pills Containing FentanylRead the Press Release
BOSTON – A Saugus woman pleaded guilty yesterday in federal court in Boston to her role in a large-scale drug trafficking organization that manufactured and distributed hundreds of thousands of counterfeit Percocet pills containing fentanyl.
Nicole Benton, 45, pleaded guilty to conspiracy to manufacture, distribute and possess with intent to distribute fentanyl and other controlled substances and possessing a firearm in furtherance of a drug trafficking conspiracy. U.S. District Court Judge Allison Burroughs scheduled sentencing for Jan. 20, 2022. Benton was charged on June 30, 2021 along with co-conspirators Vincent Caruso, Laurie Caruso and Ernest Johnson, who have pleaded not guilty.
According to the charging documents, Benton was a member of a large drug trafficking organization (DTO) operated by Vincent Caruso, a self-admitted Crip gang member, that included Johnson and Vincent Caruso’s mother, Laurie Caruso, among others. The DTO allegedly sold counterfeit prescription pills containing fentanyl – produced using multiple large pill presses capable of generating thousands of pills per hour – to street gangs for further distribution on the North Shore of Massachusetts. A single counterfeit fentanyl pill allegedly retails between $10-$20, thereby generating millions of dollars in retails sales.
Benton admitted to distributing more than 100,000 pressed fentanyl pills on behalf of the organization. Based upon pills seized during the investigation, 100,000 pills would equate to more than 10 kilograms of fentanyl. During a search of Benton’s residence on June 30, 2021, approximately 40 grams of fentanyl pills and a firearm were seized.
The charge of conspiracy to manufacture, distribute and possess with intent to distribute 40 grams or more of fentanyl provides for a sentence of up to life in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of conspiracy to manufacture, distribute and possess with intent to distribute 400 grams or more of fentanyl provides for a sentence of up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of possessing a firearm in furtherance of a drug trafficking offense provides for a mandatory consecutive sentence of five years and up to life in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district judge based on 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; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Colonel Christopher Mason, Superintendent of the Massachusetts States Police made the announcement. Assistance was provided by the Essex, Middlesex and Suffolk County District Attorneys’ Offices; Essex, Middlesex and Suffolk County Sheriffs’ Departments; Boston, Cambridge, Chelsea, Danvers, Everett, Lynn, Malden, Salem, Saugus, Somerville and Revere Police Departments; U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; Bolton (ME), Bangor (ME), Portland (ME) and Westbrook (ME) Police Departments; and Hancock County Sheriff’s Department. Assistant U.S. Attorneys Philip A. Mallard and Sarah Hoefle of Mendell’s Organized Crime and Gang Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
San Mateo Man Sentenced to More Than 11 Years in Prison for Receiving Child PornographyRead the Press Release
SAN FRANCISCO – Adrian Kyle Benjamin was sentenced today in federal court to 135 months in prison for his conviction for the receipt of child pornography, 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 United States District Judge Susan Illston.
Before sentencing today, Benjamin, 25, of San Mateo, pleaded guilty to the July 30, 2018, receipt of child pornography. Benjamin admitted in his plea agreement filed today that in 2018 he began communicating with a girl based in Washington state whom he knew was 14 years old. Benjamin enticed the 14 year old to engage in sexually explicit conduct and to send him visual depictions of her engaging in the conduct. Benjamin admitted he received approximately seven images and three videos from this minor depicting sexually explicit conduct.
Benjamin further admitted in his plea agreement that he similarly exploited three other minor victims, enticing them also to engage in sexually explicit conduct and to send him visual depictions of it. He admitted that he communicated in 2018 with a minor victim based in Australia who told him she was 13 years old. Benjamin convinced her to make and send him three videos of herself engaging in sexually explicit conduct. Similarly, Benjamin admitted that he communicated in 2018 with a minor girl in Texas who informed him she was 15 years old. He convinced her to send images and videos of her sexually explicit conduct, and she made and sent Benjamin 50 images and four videos. In at least two of these videos, Benjamin provided specific instructions as to the conduct to be recorded. Benjamin further admitted in his plea agreement that in 2019 he communicated with a minor Canadian high school student. As stated in a sentencing memorandum filed by the government, in one communication Benjamin joked that the minor victim was “old” because she was 17 years old. Benjamin convinced her to send five videos and one image of her engaged in sexually explicit conduct.
Benjamin also admitted in his plea agreement that he attempted to entice at least two other minor victims to engage in sexually explicit conduct and send visual depictions of the conduct to him. One of them lived in California, and the other lived in Connecticut. These minor girls told Benjamin that they were between 14 and 15 years old.
The 135 month prison sentence for Benjamin was handed down today following Benjamin’s guilty plea to the receipt of child pornography in violation of 18 U.S.C. § 2252(a)(2) and (b)(1). United States District Judge Susan Illston also sentenced the defendant to a ten year period of supervised release following his release from prison.
Mohit Gourisaria and Molly Priedeman are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Veronica Hernandez and Maribel Gallegos. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
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.
Readout of Justice Department Leadership Meeting with Members of the National Task Force to End Sexual and Domestic ViolenceRead the Press Release
Yesterday U.S. Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, and Associate Attorney General Vanita Gupta convened a virtual listening session with Members of the National Task Force to End Sexual and Domestic Violence to discuss the unmet needs of survivors and the ways in which the Violence Against Women Act (VAWA) could be improved and strengthened to help to meet those needs. The Attorney General, Deputy Attorney General and Associate Attorney General were joined by leadership of the Justice Department’s Office on Violence Against Women (OVW).
At the outset of the meeting, Attorney General Garland reaffirmed that combating gender-based violence has long been and remains today a priority for the Justice Department. The Attorney General discussed the department’s FY 2022 Budget request, which includes an historic investment of $1 billion to support the work of the OVW. He noted that he was serving as Principal Associate Deputy Attorney General in 1995 when the Justice Department first established a dedicated office to address domestic violence and sexual assault.
The Deputy Attorney General also shared her own experience working to end gender-based violence, namely as a staff member on the Senate Judiciary Committee in the early 1990’s, when the Violence Against Women Act was first passed. Among the Deputy Attorney General’s responsibilities was gathering personal stories from individual survivors to illustrate the dire need for stronger legal protections.
Members of the National Task Force to End Sexual and Domestic Violence spoke about the importance of VAWA and the work of OVW over the past quarter century, including funding many of our nation’s first comprehensive rape crisis centers; recognizing tribal jurisdiction over non-Indian perpetrators of domestic violence; dedicating resources to enhance culturally-specific services and reach underserved communities, and reducing homicides through federal firearms prohibitions. The advocates emphasized the critical need for reauthorizing VAWA.
Attorney General Garland and Deputy Attorney General Monaco praised the national advocacy organizations for their efforts on behalf of survivors of sexual and domestic violence and thanked them for sharing their expertise and insights from the field in responding to these crimes. And the Deputy Attorney General closed the meeting by emphasizing the department’s commitment to working tirelessly for the swift reauthorization of VAWA this year, about which she will testify this Tuesday before the Senate Judiciary Committee.
Rapid City Man Charged with EscapeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced Rapid City, South Dakota man, has been indicted by a federal grand jury for Escape from Custody and Criminal Contempt.
David Low Dog, age 36, was indicted on July 13, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 22, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 21, 2021, Low Dog, who was on a temporary furlough, failed to comply with an order issued by the U.S. District Court and escaped from the custody of the U.S. Marshals Service from the Hughes County Jail in Pierre, South Dakota.
The charges are merely accusations and Low Dog is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Low Dog was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Public Safety is a Collaborative Effort Between Cops and CommunityRead the Press Release
Acting U.S. Attorney Teresa A. MooreAs a community member and a career prosecutor, I recognize that local, state, and federal law enforcement officers play a vital role in the welfare of our community. Law enforcement, however, can’t solve public safety problems alone. Protecting the safety of our community, preventing and reducing crime, and preserving peace and justice, is a collaborative effort between law enforcement and the entire community.
National Community Policing Week, Oct. 3-9, 2021, is an opportunity to reaffirm our commitment to supporting and advancing the practice of community policing. Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
This week’s observance is a timely reminder of the need to fortify the bonds between law enforcement and the community. Unfortunately, those relationships become strained at times. Although most of the community shares the goals of public safety and crime prevention, we aren’t always working well together as a team. Perhaps National Community Policing Week would be a good time to take steps toward building and maintaining trust between officers and community members. This is critical to addressing both the concerns of the community and needs of law enforcement. Some of these underlying tensions won’t be resolved overnight, but we can take constructive action to strengthen the vital relationship between law enforcement and the community.
Community policing encourages interactive partnerships with community groups, nonprofits, faith-based organizations, businesses, and other stakeholders in the community. Indeed, police officers are members of many of these groups, and share their vested interest in the well being of the community. It is equally important for police officers to be honored for their sacrifices and supported by their communities as it is for the members of those communities to feel they are being served fairly and justly by our men and women in blue. Community policing strives to strike that balance.
The Department of Justice has invested heavily in the concept of community policing. For example, the department provides resources to the Office of Community Oriented Policing Services for hiring police officers across America, including police departments in this district, and advancing 21st-century policing efforts. The department provides millions of dollars in grants to agencies that demonstrate robust community policing initiatives.
National Community Policing Week is a timely reminder that solutions to the problem of crime and violence will only be as healthy and long-lasting as the relationship between law enforcement and the community.
Teresa A. Moore
Acting United States Attorney
Western District of Missouri
Port Saint Joe Man Sentenced to Thirty Years on Drug and Firearm ChargesRead the Press Release
PANAMA CITY, FLORIDA – Ruben Ivan Fuller, 44, of Port Saint Joe, Florida, has been sentenced to thirty years in federal prison after previously pleading guilty to drug and firearm charges. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the sentence.
Fuller’s criminal history includes eight prior felony convictions, six of which involved narcotics distribution. Given the nature of his prior convictions, Fuller qualified as an Armed Career Criminal and a Career Offender and was subject to increased Federal sentencing penalties.
“Those who repeatedly commit serious crimes are deserving of significant prison sentences,” stated Acting U.S. Attorney Coody. “Due to the collective efforts of the Tyndall Air Force Base Security Forces, the Bay County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration, this armed drug trafficker has been called to account for his continued criminal conduct, and the community is safer as a result.”
Court documents reflect that between November 2018, and February 2019, Fuller received kilogram quantities of methamphetamine from various sources, which he resold to lower-level drug dealers. On July 26, 2019, Tyndall Air Force Base Security Forces conducted a traffic stop during which Fuller was found in possession of marijuana, 48.72 grams of methamphetamine, a .380 pistol and ammunition, and $8640 cash. On August 16, 2019, investigators with the Bay County Sheriff’s Office observed Fuller walk inside of a residence for which a search warrant was to be executed. Fuller was carrying a brown paper bag at the time. A few minutes later, Fuller left the residence, still carrying the paper bag. Fuller was followed as he drove away from the residence and his vehicle stopped by the Bay County Sheriff’s Office. The brown paper bag was found to contain 482.6 grams of methamphetamine. A second bag containing an additional 27.4 grams of methamphetamine was also found in Fuller’s vehicle.
“This sentence demonstrates that drug traffickers looking to bring drugs and violence into our communities will be held accountable for their actions,” said DEA Miami Field Division Acting Special Agent in Charge La Verne Hibbert. “This sentence also emphasizes the DEA Miami Field Division’s commitment to working with our law enforcement partners in keeping our communities safe from drug related violence.”
As a result of his criminal conduct, Fuller pled guilty to conspiracy to distribute 500 grams or more of a mixture containing methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking offense, and possession of ammunition by a convicted felon.
“ATF continues to work vigorously with our law enforcement partners to ensure the safety and protection of the communities that we serve,” said ATF Special Agent in Charge, Craig W. Saier, “and to make sure the armed career criminals in possession of firearms are prosecuted to the fullest extent of the law.”
“The Bay County Sheriff's Office remains committed to valuable partnerships between law enforcement entities that strengthen our capabilities to protect and serve,” said Bay County Sheriff Tommy Ford. “Anyone attempting to bring drugs and violence onto our streets will face an effective, unified team safeguarding our communities.”
This case resulted from a joint investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Bay County Sheriff’s Office, Tyndall Air Force Base Security Forces, and the Parker Police Department, with assistance from the Florida Department of Law Enforcement, the Franklin County Sheriff’s Office, and the Calhoun County Sheriff’s Office. Assistant United States Attorney James A. McCain 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 works 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.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Poplar Bluff Man Sentenced for Carrying More Than a Kilo of Fentanyl Aboard TrainRead the Press Release
KANSAS CITY, Mo. – A Poplar Bluff, Missouri, man was sentenced in federal court today for smuggling more than a kilogram of fentanyl in his luggage aboard a train that stopped in Kansas City, Mo., from Los Angeles, Calif., bound for St. Louis, Mo.
Joseph D. Christie, 43, was sentenced by U.S. District Judge Brian C. Wimes to 10 years and 10 months in federal prison without parole.
On May 20, 2021, Christie pleaded guilty to one count of possessing fentanyl with the intent to distribute.
Christie admitted he was in possession of approximately 1.1 kilograms of fentanyl when he was arrested at a Kansas City train station on March 8, 2021. A Kansas City police detective noticed a strong odor of marijuana when Christie walked past him after disembarking from a train originating in Los Angeles. Christie told the detective he was on his way to St. Louis. A police drug detection dog alerted on Christie’s suitcase. Christie initially refused to allow the detective to search the suitcase and was placed under investigative arrest while the detective applied for a search warrant. Christie said he didn’t understand why he was going to jail for a small amount of marijuana. The detective informed him that the Jackson County Prosecutor no longer charged marijuana possession cases involving personal-use amounts of marijuana; if all he had in his suitcase was personal-use marijuana, the marijuana would be seized and he could continue his travels.
Christie then allowed his suitcase to be searched. The detective found two plastic dispensary jars of personal-use marijuana and a container of personal-use methamphetamine. The detective also found, hidden in a folded pair of jeans, a vacuum-sealed heat-sealed bag that contained fentanyl.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Pittsburgh Man Charged with Making False Statements to Purchase FirearmsRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearm laws, Acting United States Attorney Stephen R. Kaufman announced today.
The six-count Indictment, returned on September 28, and unsealed today, named Earl Eggleton, age 51, of Duncan Street, Pittsburgh, PA, as the sole defendant.
According to the six-count Indictment, on or about June 28, 2020, October 18, 2020, November 23, 2020, January 27, 2021, and twice on February 7, 2021, Eggleton made false statements during the purchase of firearms.
The law provides for a maximum total sentence of not more than ten (10) years, a fine not to exceed $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmaceutical Companies Pay over $400 Million to Resolve Alleged False Claims Act Liability for Price-Fixing of Generic DrugsRead the Press Release
Three generic pharmaceutical manufacturers, Taro Pharmaceuticals USA, Inc., Sandoz Inc. and Apotex Corporation, have agreed to pay a total of $447.2 million to resolve alleged violations of the False Claims Act arising from conspiracies to fix the price of various generic drugs. These conspiracies allegedly resulted in higher drug prices for federal health care programs and beneficiaries according to the Justice Department.
The government alleges that between 2013 and 2015, all three companies paid and received compensation prohibited by the Anti-Kickback Statute through arrangements on price, supply and allocation of customers with other pharmaceutical manufacturers for certain generic drugs manufactured by the companies.
Taro Pharmaceuticals USA, Inc., headquartered in New York, has agreed to pay $213.2 million. The Taro drugs allegedly implicated in this scheme address a wide variety of health conditions, and include etodolac, a nonsteroidal anti-inflammatory drug used to treat pain and arthritis, and nystatin-triamcinolone cream and ointment, a combination of an antifungal medicine and steroid used to treat certain kinds of skin infections.
Sandoz Inc., headquartered in New Jersey, has agreed to pay $185 million. The Sandoz drugs at issue include benazepril HCTZ, used to treat hypertension, and clobetasol, a corticosteroid used to treat skin conditions.
Apotex Corporation, headquartered in Florida, has agreed to pay $49 million in connection with its sale of pravastatin, a drug used to treat high cholesterol and triglyceride levels.
“Illegal collaboration on the price or supply of drugs increases costs both to federal health care programs and beneficiaries,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department will use every tool at its disposal to prevent such conduct and to protect these taxpayer-funded programs.”
“These civil settlements are another achievement in my office’s efforts to hold generic drug companies accountable for the consequences arising from price-fixing schemes, including the harm to federal health care programs,” said Acting U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania. “We will continue to aggressively pursue these violations of the Anti-Kickback Statute and the False Claims Act and obtain significant recoveries.”
“Conspiring to raise prices on generic medications is illegal and could prevent patients from being able to afford their needed prescription drugs. Americans have the right to purchase generic drugs set by fair and open competition, not collusion,” said Special Agent in Charge Maureen R. Dixon of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services (HHS-OIG). “HHS-OIG along with our law enforcement partners will continue to investigate allegations of companies engaging in actions that put the public and the Medicare program at risk.”
In connection with its settlement agreement, each company also entered a five-year corporate integrity agreement (CIA) with OIG. The CIAs include unique internal monitoring and price transparency provisions. They also require the companies to implement compliance measures including risk assessment programs, executive recoupment provisions and compliance-related certifications from company executives and board members.
“These kickback schemes harm Medicare, Medicaid and patients,” said Chief Counsel Gregory E. Demske for the Inspector General at HHS. “The CIAs promote transparency and accountability by requiring the companies to report price-related information to OIG and mandating individual certifications by key executives involved in pricing and contracting functions.”
“Protecting TRICARE, the healthcare system for U.S. military members and their dependents, is a top priority for the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “When pharmaceutical corporations artificially inflate prices, they undermine the integrity of TRICARE and place an unnecessary financial burden on the program. The settlement agreements announced today are the result of a joint effort and demonstrate the ongoing commitment of DCIS to work with our law enforcement partners, DOJ Civil Frauds and the USAO-EDPA, to investigate healthcare fraud.”
The Anti-Kickback Statute prohibits companies from receiving or making payments in return for arranging the sale or purchase of items such as drugs for which payment may be made by a federal health care program. These provisions are designed to ensure that the supply and price of health care items are not compromised by improper financial incentives. These settlements reflect the important role of the False Claims Act to ensure that the United States is fully compensated when it is the victim of kickbacks paid to further anticompetitive conduct.
All three companies previously entered into deferred prosecution agreements with the Antitrust Division to resolve related criminal charges. Taro paid a criminal penalty of $205.6 million and admitted to conspiring with two other generic drug companies to fix prices on certain generic drugs. Sandoz paid a criminal penalty of $195 million and admitted to conspiring with four other generic drug companies to fix prices on certain generic drugs. Apotex paid a criminal penalty of $24.1 million and admitted to conspiring to increase and maintain the price on pravastatin. The civil settlement payments announced today are in addition to the criminal penalties paid by the companies.
Today’s civil settlements are the third, fourth and fifth arising from this investigation and were handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Eastern District of Pennsylvania with support from the Office of Inspector General for the Department of Health and Human Services, the Defense Health Agency Program Integrity Office, DCIS and the Office of Inspector General for the Department of Veterans Affairs.
The investigation and resolution of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matters were handled by Senior Trial Counsels Jennifer L. Cihon and Laurie A. Oberembt and Assistant U.S. Attorneys Landon Y. Jones III, Rebecca S. Melley and Anthony D. Scicchitano.
Except for those facts admitted to in the deferred prosecution agreements, the claims resolved by the civil settlements are allegations only, and there has been no determination of liability.
Oglala Man Indicted on Commercial Sex Trafficking ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Oglala, South Dakota, man has been indicted by a federal grand jury for two counts of Enticement of a Minor Using the Internet and two counts of Commercial Sex Trafficking.
Gordon Weston, age 55, was indicted on September 14, 2021. Weston appeared before U.S. Magistrate Judge Daneta Wollmann on September 17, 2021, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, up to lifetime supervised release, and $100 to the Federal Crime Victims Fund for each charge. Restitution may also be ordered.
The charges relate to Weston using a cellular phone connected to the internet to persuade a female under 18 years of age to engage in prostitution and other sexual activities in South Dakota between August 2020 and February 2021. The charges are merely accusations and Weston is presumed innocent until and unless proven guilty.
Based on the evidence obtained in this investigation, authorities believe there may be additional victims of the alleged conduct. Anyone with information about this matter is encouraged to call the FBI Minneapolis Field Office at (763) 569-8000.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Weston was released from custody pending trial. A trial date has been set for November 23, 2021.