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Friday 6 August 2021
Former Newton Scientist Agrees to Pay $215,000 to Resolve Allegations of False Statements in Grant ApplicationRead the Press Release
BOSTON – A former Newton scientist sponsored by Massachusetts General Hospital (MGH) has agreed to resolve allegations that he submitted false statements on a grant application to the National Institutes of Health (NIH).
Sam W. Lee, PhD, 67, of Bellevue, Wash., has agreed to pay $215,000 to resolve allegations that he submitted false claims for payment in a grant application to the NIH. MGH, the sponsor institution for the NIH grant, disclosed to the United States that Dr. Lee, the Principal Investigator (PI), submitted the grant application to NIH containing allegedly inauthentic data. MGH separately repaid NIH the full amount of funds it drew from the grant.
“The NIH grant application process relies on scientific integrity, accuracy and honesty from individual principal investigators, but Dr. Lee supplied falsified results, inauthentic data and false statements instead,” said Acting United States Attorney Nathaniel R. Mendell. “Defrauding the NIH wastes taxpayer money, limits the availability of funding for other research and undermines the central purpose of scientific inquiry. We commend MGH for disclosing the alleged false statements, for repaying funds and for taking meaningful steps to prevent future recurrences.”
“The National Institutes of Health (NIH) seeks to preserve and enhance the well-being of our communities by spending $35 billion in taxpayer money each year on medical research; in Massachusetts, over $3 billion is spent annually,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “Dr. Lee’s lack of truthfulness defied NIH’s grant application process that is meant to protect research dollars. OIG, with our law enforcement partners, spares no resources to ensure that funding for life saving research is appropriately spent. People who suspect grant fraud are encouraged to report it by calling 1-800-HHS-TIPS.”
The United States contends that Dr. Lee knowingly included inauthentic data in his grant application to NIH. Pursuant to NIH policy, PIs are required to provide a signed assurance when submitting a grant application to the NIH that certifies the truth, completeness and accuracy of the information in the application. Dr. Lee signed the PI assurance for the grant application and confirmed that he had reviewed and approved the application. A fellow in Dr. Lee’s laboratory conducted the underlying experiments for certain figures included in the grant application, but the fellow no longer worked for Dr. Lee at the time that he submitted the application. The United States contends that Dr. Lee altered the experiment descriptions in two of the figures, falsifying the results of the experiments, and that Dr. Lee falsified a third figure by horizontally flipping the image and thus mislabeling the results in the application.
Acting U.S. Attorney Mendell and HHS-OIG SAC Coyne made the announcement today. Assistant U.S. Attorney Jessica J. Weber of Mendell’s Affirmative Civil Enforcement Unit handled the matter.
Former Detroit Police Department Officer Sentenced to 18 Months for BriberyRead the Press Release
DETROIT - Former Detroit Police Department Officer, Michael Mosley, was sentenced today to 18 months in federal prison following his conviction for bribery announced Acting United States Attorney Saima Mohsin.
Joining Mohsin in the announcement was Timothy Waters, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Mosley, age 49, pleaded guilty in February 2020 before United States District Judge George Caram Steeh. Mosley’s sentencing was delayed due to the COVID-19 pandemic.
Officer Mosley was a nineteen-year veteran of the Detroit Police Department. As stated during Mosley’s guilty plea, in April 2019, Mosley was a member of the Police Department’s Major Violators Unit. On April 3, 2019, Detroit police officers, including Officer Mosley, searched a drug trafficker’s house pursuant to a search warrant. The search uncovered two kilograms of heroin, one kilogram of cocaine, and six firearms. The drug trafficker admitted to owning the three kilograms of drugs to Officer Mosley, and the trafficker signed a confession. After the April 3rd search, Officer Mosley remained in contact with the drug trafficker in an effort to secure the trafficker’s cooperation concerning other criminal activity.
Subsequently, the drug trafficker offered Officer Mosley a cash bribe of $15,000 in exchange for not pursuing criminal charges based on the three-kilogram drug seizure. Officer Mosley agreed to the deal. On May 2, 2019, Officer Mosley collected $10,000 in cash left for him by the drug dealer in the backyard of an abandoned house in Detroit. On May 23, 2019, Officer Mosley accepted another $5,000 in cash left for him by the drug trafficker at the same abandoned house. In exchange, Officer Mosley gave the drug trafficker the original copy of his confession.
Acting U.S. Attorney Saima Mohsin commended the outstanding work of the FBI in conducting this criminal investigation of a corrupt police officer. “The vast majority of Detroit Police Officers are dedicated and superb public servants. When Mosley accepted a bribe, he betrayed his oath as a police officer and the citizens of Detroit. He also betrayed his fellow officers who seek to protect and serve with integrity. This prosecution demonstrates that we will not tolerate public officials who abuse their authority and seek to use their power to line their own pockets,” said Mohsin.
“Michael Mosley violated his oath to serve and protect the people of Detroit. His misconduct was a betrayal of his fellow officers, and it is not representative of the outstanding work of the Detroit Police Department every day," said FBI Detroit Special Agent in Charge Timothy Waters. "The FBI will do everything in its power to bring corrupt police officers to justice to ensure communities can have faith in the integrity of law enforcement."
“We are deeply disappointed in the actions of former police officer Michael Mosley,” said Interim DPD Chief James White. “I appreciate the collaborative effort with our federal partners and those members who conducted this thorough investigation and subsequent prosecution. Clearly, the actions of this former officer are disheartening; however, it does not represent the values of our department and the vast majority of the men and women who serve honorably to keep our residents safe.”
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, David A. Gardey, and Adriana Dydell.Former Deputy Arrested for Lying on Federal Firearm Forms at Gun DealerRead the Press Release
Ocala, Florida – Acting United States Attorney Karin Hoppmann announces the arrest of Kenyari Devaughnte Brewton (26, Ocala) on a criminal complaint charging him with eight counts of knowingly causing a Federal Firearms Licensee (FFL) to maintain false information in its official records. Each count is punishable by up to five years in federal prison and a $250,000 fine. According to court records, Brewton worked as a detention deputy for the Alachua County Sheriff’s Office until his arrest on August 5, 2021.
According to the criminal complaint, between February 3, 2020, and April 26, 2021, Brewton purchased multiple Glock pistols, AK-47 style pistols, and an AK-47 rifle from a Marion County gun dealer. Many of the firearms were identical. While purchasing the firearms, Brewton certified on each ATF Form 4473 (Firearm Transaction Record) that he was the “actual transferee/buyer” of the guns, even though he quickly resold them to “unknown” individuals for a profit. On May 2, 2021, one of the Glock pistols that Brewton had sold to an individual was used during a homicide in Marion County. Brewton had purchased this firearm only six days earlier from the gun dealer.
A criminal complaint is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This was investigated by the Ocala Police Department, the Marion County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.
Former Chattanooga-Area Public Claims Adjuster Sentenced for Mail FraudRead the Press Release
CHATTANOOGA, Tenn. – On August 4, 2021, Benjamin Reichel, 55, was sentenced to serve 54 months in prison, followed by three years’ supervised release, by the Honorable Curtis L. Collier, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
In November 2020, as part of a negotiated plea agreement, Reichel pleaded guilty to felony mail fraud charges. According to court records, Reichel operated a Chattanooga-area business known as Loss Recovery Specialists (“LRS”). LRS held itself out to be a public claims adjuster licensed by the State of Tennessee to negotiate with insurance companies on behalf of homeowners and others who had suffered property damage.
When homeowners reached out to Reichel for help, Reichel fraudulently diverted his clients’ funds for his own personal gain. The United States argued at sentencing that, under Reichel’s scheme, rather than using the funds to repair his clients’ homes, he used the money to pay for, among other things, a babysitter, massages, the lease on an Audi, personal vacations, and a swimming pool, impacting a number of innocent victims.
Reichel will be required to make restitution of over $850,000 to his victims.
The charges resulted from an investigation conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Cleveland Police Department, and other local law enforcement agencies.
Assistant U.S. Attorney Kyle J. Wilson represented the United States.
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Federal Jury Convicts Fort Hall Man of MurderRead the Press Release
POCATELLO – After a four-day jury trial, a federal jury sitting in Pocatello found Justin Beasley, 27, of Fort Hall, Idaho, guilty of second degree murder, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Chief U.S. District Judge David C. Nye presided over the trial, which began on August 2nd, and concluded with guilty verdicts on the afternoon of August 5th.
According to court records and evidence presented at trial, on February 3, 2018, Austin Pevo, 23, was dropped off by his mother at a residence on the Fort Hall Indian Reservation for work cutting firewood. Testimony at trial showed that Beasley and others were at the residence at that time. Beasley and Pevo had an argument and Beasley stabbed Pevo twice in the chest with a knife. Beasley and two other men took Pevo’s body to an isolated area in Arbon Valley.
Pevo’s family reported him missing and the Fort Hall Police Department investigated but was unable to locate any information on Pevo’s whereabouts.
A witness to the events of February 3, 2018, came forward to the Fort Hall Police in August 2019, and reported that Pevo had died on that date and three men who had been at the house removed his body. The Federal Bureau of Investigation (FBI) executed a search warrant at the residence and found evidence that Pevo had died there. One of the men who helped hide the body admitted to his involvement and took FBI agents to the location of Pevo’s remains in Arbon Valley. The agents recovered Pevo’s remains along with clothing and other personal items. DNA testing showed that the remains were those of Pevo.
Beasley was indicted by a federal grand jury on the charge of second degree murder of Austin Pevo on September 24, 2019.
Beasley is scheduled to be sentenced on October 26, 2021 and faces up to life in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Gonzalez said, “Prosecuting violent crimes in Indian Country is a priority for my office, and I hope this conviction brings some amount of closure and justice to the victim’s family.” He also praised the Federal Bureau of Investigation and the Fort Hall Police Department for their exemplary and thorough investigation of this crime. “Their complementary partnership resulted in the successful outcome of this senseless murder. This office and our law enforcement partners are committed to prosecuting aggressively cases involving violent acts committed against Native Americans residing on reservation lands within Idaho,” Mr. Gonzalez added.
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Federal Court Orders California Company and Owner to Stop Distribution of Unapproved, Misbranded and Adulterated ‘Poly-MVA’ ProductsRead the Press Release
A federal court ordered a California company and its owner to stop distributing unapproved and misbranded drugs and adulterated animal drugs.
In a complaint filed in the U.S. District Court for the Southern District of California in December 2020 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that AMARC Enterprises Inc. and Albert Lee Sanchez Jr. sold and distributed products called “Poly-MVA” and “Poly-MVA for Pets” that defendants claimed could cure, mitigate, treat or prevent disease, including cancer. According to the complaint, the defendants’ Poly-MVA products are not generally recognized as safe and effective by qualified experts for the uses intended by the defendants in the products’ labelling. The complaint also alleged that the defendants intended for Poly-MVA to be administered intravenously.
AMARC and Sanchez agreed to be bound by a consent decree of permanent injunction. The order entered by the court permanently enjoins the defendants from violating the Federal Food, Drug, and Cosmetic Act (FDCA) and requires them, among other things, to cease distribution of their products unless and until they come into compliance with the FDCA.
“Companies that market products with unproven claims endanger the public health,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The court’s order ensures that the defendants uphold their obligation to comply with the law.”
“Marketing products that claim to cure, mitigate, treat or prevent cancer in both humans and animals without adequate scientific support poses serious safety risks to consumers and their pets,” said Judith McMeekin, FDA’s associate commissioner for regulatory affairs within the Office of Regulatory Affairs (ORA). “The unlawful distribution of these types of products is particularly concerning as they have the potential to derail consumers from seeking and receiving proper treatment from qualified health care providers. Despite previous warnings, AMARC Enterprises Inc. continued violating the law. The FDA will continue to take action to protect the American public when companies knowingly violate the law and put consumers or their pets at risk.”
The complaint alleged that the claims defendants made regarding Poly-MVA and Poly-MVA for Pets lacked support from published, adequate and well-controlled clinical studies. The complaint also asserted that, because Poly-MVA’s labelling did not include adequate directions for lay users, the product was misbranded. Additionally, the complaint alleged that Poly-MVA for Pets was an adulterated new animal drug because it lacked an approved application.
Trial Attorneys Sarah Williams and Shannon Pedersen of the Civil Division’s Consumer Protection Branch handled the case with the assistance of Associate Chief Counsel Jaclyn Martinez Resly of the FDA’s Office of Chief Counsel.
El Departamento de Justicia llega a un acuerdo en una demanda contra propietarios y un administrador de propiedades de edificios residenciales en CaliforniaRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo para resolver una demanda que alega que Filomeno Hernández, un administrador de propiedades de edificios residenciales cerca del Parque MacArthur en Los Angeles, vulneró la ley federal de Vivienda Justa al acosar sexualmente a inquilinas desde al menos el 2006. El acuerdo de hoy también resuelve alegaciones contra Ramin Akhavan, Bonnie Brae Investments LLC y Westlake Property Services LLC, que administraron o que fueron dueños de las propiedades de alquiler donde sucedió el acoso.
Conforme al decreto por consentimiento, el cual todavía debe ser aprobado por el Tribunal Federal de Distrito para el Distrito Central de California, los demandados están obligados a pagar un total de $105,000, lo que incluye una indemnización económica de $100,000 para mujeres que fueron perjudicadas como resultado del acoso sexual y $5,000 por concepto de sanción civil. Asimismo, el decreto por consentimiento también prohíbe futura discriminación; prohíbe la futura participación de Hernández en el alquiler o la administración de propiedades residenciales; requiere que Hernández abandone los edificios y que renuncie a su puesto como administrador de propiedad in situ; exige capacitación sobre la ley de Vivienda Justa y requiere supervisión y declaración extensivas en lo que se refiere a las actividades de gestión de propiedades y cumplimiento con los términos del decreto por consentimiento.
Entablado en el año 2020, la demanda del Departamento alegó que a lo largo de más de una década, Hernández sometía a las inquilinas a acoso que incluía contacto sexual no deseado, lo que incluye la agresión sexual, insinuaciones y comentarios sexuales no deseados, ofertas para reducir el alquiler o perdonar pagos retrasados o el impago del alquiler a cambio de sexo y visitas sin previo aviso a las casas de inquilinas sin su consentimiento para realizar insinuaciones sexuales. Los edificios residenciales que Hernández administraba están ubicados en 729 South Bonnie Brae Street y 720 Westlake Avenue en Los Angeles, cerca del Parque MacArthur.
«El acoso sexual de inquilinas vulnerables es una violación indignante de la ley de Vivienda Justa», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia se ha comprometido a perseguir a propietarios y administradores de propiedades depredadores y a garantizar que no se someta a nadie a la discriminación en la vivienda por motivos de su género.
«El derecho de una persona a vivir en su propia casa sin ser acosada sexualmente es un derecho civil federal fundamental», afirmó Tracy L. Wilkison, la Fiscal Federal Interina para el Distrito Central de California. «Este acuerdo demuestra nuestro compromiso con la aplicación de las leyes federales de derechos civiles y a hacer rendir cuentas a aquellos que discriminan a otros, en contra de la ley de Vivienda Justa».
El Departamento de Justicia hace cumplir la ley federal de Vivienda Justa, la cual prohíbe la discriminación en la vivienda por motivos de raza, color de piel, religión, origen nacional, género, discapacidad o situación familiar. La Iniciativa contra el Acoso Sexual en la Vivienda del Departamento está dirigida por la División de Derechos Civiles y cuenta con el apoyo de las Fiscalías Federales por todo el país. El objetivo de la iniciativa del Departamento es abordar y crear conciencia sobre el acoso sexual por parte de propietarios, gestores de propiedades, trabajadores de mantenimiento, prestamistas u otras personas que controlan la vivienda. Desde el lanzamiento de la Iniciativa en octubre del 2017, el Departamento de Justicia ha entablado 21 demandas que alegan acoso sexual en la vivienda y ha recuperado más de 3.9 millones de dólares para las víctimas de tal acoso.
Las personas pueden reportar incidentes de acoso sexual en la vivienda y otros tipos de discriminación en la vivienda llamando a la línea informativa del Departamento para discriminación en la vivienda llamando al 1-800-896-7743, enviando un correo electrónico a [email protected] o completando un informe en línea.
Individuos radicados en el Distrito Central de California también pueden presentar una queja acerca de discriminación en la vivienda o de otras vulneraciones de derechos civiles ante la Sección de Derechos Civiles, División Civil de la Fiscalía Federal por teléfono al (213) 894-2879, correo electrónico a [email protected] o rellenando y entregando este formulario (inglés) (español).
También se puede presentar una queja ante el Departamento de Vivienda y Desarrollo Urbano de los EE. UU. llamando al 1-800-669-9777 o rellenando un formulario de demanda en línea
Para más información acerca de la División de Derechos Civiles y las leyes que hace cumplir, vaya a https://www.justice.gov/crt-espanol. Para más información acerca de la Sección de Derechos Civiles de la División Civil de la Fiscalía de los Estados Unidos para el Distrito Central de California, vaya a https://www.justice.gov/usao-cdca/civil-division/civil-rights-espanol.
Dubuque Man Sentenced to over 15 Years for Distributing Opioids that Caused Overdose DeathRead the Press Release
A man who distributed a deadly cocktail of opioids was sentenced today to more than 15 years in federal prison.
Julius Gene Irvin, age 30, from Dubuque, Iowa, received the prison term after a March 1, 2021 guilty plea to one count of distribution of controlled substances near a protected location resulting in death.
At the plea hearing, Irvin admitted that he distributed a mixture of heroin, fentanyl, and valeryl fentanyl to another person on May 19, 2019. Court records reflect that Irvin was a long-time heroin and opioid user, facilitator, and distributor in Dubuque. He admitted to obtaining at least 60 grams of heroin from Travis Gordon Jones in two months in 2019, much of which he supplied to two individuals. On each day from May 17 to 19, 2019, Irvin supplied those individuals with heroin on three consecutive days, and each day one of those two individuals suffered an overdose. It was later determined that the heroin Irvin was supplying them also contained fentanyl and valeryl fentanyl, an illicitly produced substance that has similar effects to fentanyl. On May 19, 2019, Irvin obtained some heroin laced with fentanyl and valeryl fentanyl for one of his customers. The customer took some of the substance to a local women’s shelter, where she had been staying. She used the substance, overdosed, and was found dead by shelter staff the next morning. Jones previously pled guilty to conspiring to distribute the same drugs that caused the victim’s death, as well as two other deaths. Jones is awaiting sentencing.
Irvin was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Irvin was sentenced to 183 months’ imprisonment. He was ordered to make $8,325.67 in restitution to the victim. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
Irvin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Dubuque Drug Task Force and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-1011-CJW-MAR. The case file number for Jones is 19-CR-1037-CJW-MAR.
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Denver Oil and Gas Company Pays for Minerals Removed from Public Lands Without PermissionRead the Press Release
DENVER – Extraction Oil and Gas, Inc., an oil and gas company headquartered in Denver, has agreed to pay over $462,000 to resolve allegations that it drilled and operated three oil and gas wells where it removed minerals from federal public lands without permission. Extraction agreed to make this payment in addition to a $884,407 settlement it paid in February 2020 for another set of wells where it had similarly removed minerals from federal public lands without permission.
Oil and gas exploration companies may drill for oil, gas, or other minerals on federal lands managed by the Bureau of Land Management (“BLM”) only after first obtaining a federal mineral lease and permit to drill from BLM. Once companies obtain the proper lease and permit, they pay royalties, which are a percentage—typically 12.5%—of the value of the federal minerals they remove. Removing minerals without permission is considered trespassing.
The 2020 settlement covered twelve wells drilled in Weld County, Colorado. The United States contends that for eleven of these wells, Extraction’s trespass was willful. This willful trespass made Extraction liable to the United States for the full value of all minerals it removed from the trespassing wells, and Extraction was not permitted to reduce that payment with any offset for its costs of drilling and production.
The 2021 settlement covered three wells, also located in Weld County. The United States contends that for these wells, Extraction removed minerals without permission, but did not act willfully. This non-willful trespass made Extraction liable to the United States for the value of all minerals removed from the trespassing wells, but Extraction was permitted to offset its payment with a credit for its costs of drilling and production.
“Protecting public lands and resources is a priority for our office,” said Acting U.S. Attorney Matt Kirsch. “Oil and gas companies that do not follow the mineral leasing process before removing natural resources from federal lands are trespassing. We will continue to hold them liable for damages from that trespassing--in amounts up to the full value of the minerals they removed, not just royalties they would have owed had they first obtained a federal lease.”
Ron Gonzales, Special Agent in Charge for the Department of the Interior, Office of Inspector General’s Energy Investigations Unit, stated, “This settlement is the result of the OIG, Department of Justice, Bureau of Land Management, and Office of the Solicitor working collaboratively and diligently to ensure minerals removed from federal ownership are properly accounted for on behalf of the American public.”
This case was handled by Assistant U.S. Attorney Andrea Wang.
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Denver Oil and Gas Company Pays for Minerals Removed from Public Lands Without PermissionRead the Press Release
DENVER – Extraction Oil and Gas, Inc., an oil and gas company headquartered in Denver, has agreed to pay over $462,000 to resolve allegations that it drilled and operated three oil and gas wells where it removed minerals from federal public lands without permission. Extraction agreed to make this payment in addition to a $884,407 settlement it paid in February 2020 for another set of wells where it had similarly removed minerals from federal public lands without permission.
Oil and gas exploration companies may drill for oil, gas, or other minerals on federal lands managed by the Bureau of Land Management (“BLM”) only after first obtaining a federal mineral lease and permit to drill from BLM. Once companies obtain the proper lease and permit, they pay royalties, which are a percentage—typically 12.5%—of the value of the federal minerals they remove. Removing minerals without permission is considered trespassing.
The 2020 settlement covered twelve wells drilled in Weld County, Colorado. The United States contends that for eleven of these wells, Extraction’s trespass was willful. This willful trespass made Extraction liable to the United States for the full value of all minerals it removed from the trespassing wells, and Extraction was not permitted to reduce that payment with any offset for its costs of drilling and production.
The 2021 settlement covered three wells, also located in Weld County. The United States contends that for these wells, Extraction removed minerals without permission, but did not act willfully. This non-willful trespass made Extraction liable to the United States for the value of all minerals removed from the trespassing wells, but Extraction was permitted to offset its payment with a credit for its costs of drilling and production.
“Protecting public lands and resources is a priority for our office,” said Acting U.S. Attorney Matt Kirsch. “Oil and gas companies that do not follow the mineral leasing process before removing natural resources from federal lands are trespassing. We will continue to hold them liable for damages from that trespassing--in amounts up to the full value of the minerals they removed, not just the royalties they would have owed had they first obtained a federal lease.”
Ron Gonzales, Special Agent in Charge for the Department of the Interior, Office of Inspector General’s Energy Investigations Unit, stated, “This settlement is the result of the OIG, Department of Justice, Bureau of Land Management, and Office of the Solicitor working collaboratively and diligently to ensure minerals removed from federal ownership are properly accounted for on behalf of the American public.”
This case was handled by Assistant U.S. Attorney Andrea Wang.
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Death by fentanyl overdose leads to indictment of two men on federal drug chargesRead the Press Release
SAVANNAH, GA: Two Bryan County men face up to life in prison after another man’s fatal fentanyl overdose.
Javarus McKinney, a/k/a “Jody,” 32, of Richmond Hill, Ga., is charged with Distribution of Fentanyl Resulting in Death, Possession with Intent to Distribute Fentanyl, and Possession with Intent to Distribute Fentanyl Near a School, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. A co-defendant, Darien Cothern, 32, of Richmond Hill, also is charged with Distribution of Fentanyl Resulting in Death. The primary charge carries a possible statutory penalty of up to life in prison, and there is no parole in the federal system.
“Since the start of the pandemic, overdoses and deaths have been rising throughout the country, with an alarming increase in fentanyl-related overdose deaths in the Southern District,” said Acting U.S. Attorney Estes. “Our office will continue its diligence in working with our law enforcement partners to find the source of illegal drugs implicated in fatalities.”
Richmond Hill Police officers initiated an investigation Aug. 12, 2020, after a male victim was found dead in a residential pool. An autopsy indicated the man died from a fatal dose of fentanyl, and the indictment charges McKinney and Cothern with providing the illegal drugs.
In addition to the criminal charges, McKinney also faces forfeiture of $12,970 seized during the investigation, along with a 2017 Chevrolet Impala.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Drug Enforcement Administration, the Chatham-Savannah Counter Narcotics Team, and the Richmond Hill Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Frank M. Pennington and Noah J. Abrams.
Custer Man Sentenced to Federal Prison for Possession of a Firearm by a Prohibited PersonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Custer, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on July 30, 2021, by Judge Karen E. Schreier, U.S. District Court.
Kelly Campbell, age 28, was sentenced to 33 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Campbell was indicted for the charge by a federal grand jury August 20, 2020. He pleaded guilty on April 30, 2021.
The conviction stems from Campbell, a previously convicted felon who is prohibited from possessing firearms, being in possession of a Browning Arms Company, model Nomad, .22 Long Rifle caliber, semi-automatic pistol. This firearm was found in Campbell’s possession after a pursuit by the Rapid City Police Department on March 20, 2020.
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.
The investigation was conducted by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Campbell was immediately remanded to the custody of the U.S. Marshals Service.
County Medical Center and County Agree to Pay $11.4 Million to Resolve False Claims Act Allegations Relating to Medically Unnecessary Inpatient AdmissionsRead the Press Release
San Mateo County Medical Center and San Mateo County (collectively SMMC), located in California, have agreed to pay approximately $11.4 million to resolve alleged violations of the False Claims Act for submitting or causing the submission of claims to Medicare for non-covered inpatient admissions.
Medicare reimburses only services that are reasonable and necessary for the diagnosis or treatment of illness or injury. The United States alleged that, from Jan. 1, 2013, through Feb. 28, 2017, SMMC admitted certain patients for whom inpatient care was not medically reasonable or necessary, including patients who were admitted for reasons other than medical status, including social reasons and lack of available alternative placements. SMMC billed Medicare for such patients despite SMMC’s knowledge that the costs for admitting them were not reimbursable by Medicare.
“Billing for non-covered hospital stays results in a misuse of federal dollars,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to ensure that Medicare pays only for services that are eligible for reimbursement.”
“The financial viability of our Medicare program must be protected for current and future generations,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Medical providers, such as SMMC, who seek to pass on the financial burden of their medically unnecessary hospital admissions to the federal government will be pursued, as today’s settlement reflects.”
“Our agency will continue to aggressively investigate health care providers who bill Medicare for medically unnecessary services. These unlawful actions divert funds for needed care,” said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to root out such schemes.”
In connection with the settlement, SMMC entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG. The CIA requires SMMC to engage an independent review organization that will perform annual reviews of inpatient admissions that SMMC bills to federal health care programs.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Felix Levy, a former employee of San Mateo County Medical Center. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Levy v. San Mateo County and the San Mateo County Medical Center, C.A. No. 16-CV-5881 (N.D. Cal.).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Northern District of California; and HHS-OIG.
The matter was handled by Trial Attorneys Danielle Sgro and Diana Cieslak and Assistant U.S. Attorneys Michael Pyle, Sharanya Sai Mohan and Jonathan Lee.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
County Medical Center and County Agree to Pay $11.4 Million to Resolve False Claims Act Allegations Relating to Medically Unnecessary Inpatient AdmissionsRead the Press Release
SAN FRANCISCO – San Mateo County Medical Center and San Mateo County (collectively SMMC), located in California, have agreed to pay approximately $11.4 million to resolve alleged violations of the False Claims Act for submitting or causing the submission of claims to Medicare for non-covered inpatient admissions.
Medicare reimburses only services that are reasonable and necessary for the diagnosis or treatment of illness or injury. The United States alleged that, from Jan. 1, 2013, through Feb. 28, 2017, SMMC admitted certain patients for whom inpatient care was not medically reasonable or necessary, including patients who were admitted for reasons other than medical status, including social reasons and lack of available alternative placements. SMMC billed Medicare for such patients despite SMMC’s knowledge that the costs for admitting them were not reimbursable by Medicare.
“The financial viability of our Medicare program must be protected for current and future generations,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Medical providers, such as SMMC, who seek to pass on the financial burden of their medically unnecessary hospital admissions to the federal government will be pursued, as today’s settlement reflects.”
“Billing for non-covered hospital stays results in a misuse of federal dollars,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to ensure that Medicare pays only for services that are eligible for reimbursement.”
“Our agency will continue to aggressively investigate health care providers who bill Medicare for medically unnecessary services. These unlawful actions divert funds for needed care,” said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, we will continue to root out such schemes.”
In connection with the settlement, SMMC entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General. The CIA requires SMMC to engage an independent review organization that will perform annual reviews of inpatient admissions that SMMC bills to federal health care programs.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Felix Levy, a former employee of San Mateo County Medical Center. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Levy v. San Mateo County and the San Mateo County Medical Center, C.A. No. 16-CV-5881 (N.D. Cal.).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Northern District of California; and the Department of Health and Human Services Office of Inspector General.
The matter was handled by Trial Attorneys Danielle Sgro and Diana Cieslak and Assistant U.S. Attorneys Michael Pyle, Sharanya Sai Mohan and Jonathan Lee, with assistance from Jonathan Birch and Garland He.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Convicted Murderer Sentenced to 51 Months for Stealing and Possessing a HandgunRead the Press Release
ALBANY, NEW YORK – Anthony A. Parker, age 55, of Troy, was sentenced today to 51 months in prison for unlawful possession of a firearm by a felon.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police (NYSP) Superintendent Kevin P. Bruen.
In pleading guilty, Parker admitted that on April 13, 2020, while employed as a driver at the Federal Express distribution center in Menands, New York, he removed a package from a conveyor belt that was addressed to a Capital Region gun store that contained a Ruger 57 5.7 x 28mm caliber semi-automatic pistol and two magazines. Parker later hid the pistol and magazines at his residence in Troy. At the time he stole and possessed the pistol and magazines, Parker had a prior conviction for second-degree murder.
Parker has been in custody since his arrest on a federal complaint on May 13, 2020.
In addition to the prison sentence, Chief U.S. District Judge Glenn T. Suddaby sentenced Parker to serve a 3-year term of post-release supervision.
This case was investigated by the FBI and NYSP, and was prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
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.
Convicted Bronx Fraudster Who Fled to Ghana Prior to Serving Sentence Is Extradited to the United StatesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Jacqueline Maguire, the Acting Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Thomas Fattorusso, Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that TOUREY AHMED RUFAI, a/k/a “Joe Thompson,” a/k/a “Joe Terry,” a/k/a “Rufai A Tourey,” a/k/a “Ahmed Rufai Tourey,” who was previously sentenced to four years in prison and fled to the Republic of Ghana (“Ghana”) prior to surrendering to serve his sentence, was arrested in Ghana on April 14, 2021, and extradited to the United States earlier today to serve his sentence. RUFAI’s sentence of four years was imposed by U.S. District Judge Denise L. Cote on April 12, 2019, in connection with RUFAI’s participation in a fraud scheme based in Ghana involving the theft of over $10 million through business email compromises and romance scams that targeted elderly victims from at least 2014 through 2018.
Manhattan U.S. Attorney Audrey Strauss said: “When a defendant released on bail like Tourey Ahmed Rufai cuts his ankle bracelet and flees the country, it is an affront to the victims of his crimes and the Court. Thanks to the extraordinary work of the FBI, IRS-CI, and our law enforcement partners both in the United States and in Ghana, this fugitive was apprehended in Ghana and has been returned to the United States to serve his four-year sentence.”
FBI Acting Assistant Director Jacqueline Maguire said: “Justice will now rightfully be delivered – both to Mr. Rufai as he serves his prison sentence, and to the innocent victims from whom he stole millions of dollars. When Mr. Rufai decided to cut off his ankle bracelet and flee the United States, he did not understand the FBI’s ability to find fugitives in foreign nations through our extraordinary international law enforcement partnerships. We thank everyone involved, and especially our IRS-CI colleagues and our Ghanaian partners, in ensuring Mr. Rufai will be held accountable for his crimes.”
IRS-CI Acting Special Agent in Charge Thomas Fattorusso said: “This extradition reflects that despite his best efforts, Tourey Ahmed Rufai could not outrun justice, even after two years on the run, and by fleeing to another continent. Tourey Ahmed Rufai perpetrated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. He will now rightfully serve out the prison term as originally handed down.”
According to court filings in Manhattan Federal Court:
Between 2014 and 2018, RUFAI, a Ghanaian national who was residing in the Bronx, New York, was a member of a criminal enterprise (the “Enterprise”) based in Ghana that was involved in defrauding more than 100 American businesses and individuals of more than $10 million through business email compromises and romance scams. RUFAI and his co-conspirators received or otherwise directed the receipt of millions of dollars in fraud proceeds from victims of the Enterprise in bank accounts that they controlled in the Bronx, New York. Some of these bank accounts were opened using fake names, stolen identities, or shell companies in order to avoid detection and hide the true identities of the members of the Enterprise controlling those accounts. Once the defendants received the fraud proceeds in bank accounts under their control, the defendants withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise, including those located in Ghana.
RUFAI was released on bail shortly after his arrest on January 9, 2018, on conditions including a $150,000 bond co-signed by three individuals, surrender of all travel documents, and home detention with electronic monitoring through an ankle bracelet. At his sentencing on April 12, 2019, RUFAI was sentenced to four years in prison and ordered to self-surrender to prison on May 24, 2019. Then, on May 12, 2019, 12 days prior to his surrender date, U.S. Pretrial Services learned that the defendant’s ankle bracelet had been removed and that the defendant had fled. A bench warrant was thereafter issued for the defendant’s arrest.
On April 14, 2021, after the defendant’s bond was forfeited, the defendant was arrested in Ghana pending his extradition to the United States to serve his sentence.
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RUFAI, 33, of the Bronx, New York, pled guilty to conspiracy to commit wire fraud on January 9, 2019. In addition to a prison term of four years, he was also sentenced to three years of supervised release and ordered to forfeit $109,868.61 and pay restitution of $320,449.97 to victims.
Ms. Strauss praised the outstanding investigative work of the FBI and IRS-CI in locating RUFAI in Ghana so that he could be arrested by Ghanaian law enforcement. Ms. Strauss also thanked the FBI Legal Attaché in Accra, Ghana, U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs of the Department’s Criminal Division, the U.S. Marshals Service, Ghana’s Economic and Organised Crime Office, Interpol - Ghana Police Service’s Criminal Investigative Division, Ghana National Security, and the Ministry of Justice & Attorney General’s Office of Ghana, for their assistance in the extradition of RUFAI to the United States.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Clearfield, PA Man Pleads Guilty in Meth Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A former resident of Clearfield, PA pleaded guilty in federal court to charges of violating narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Zachary Quigley, 35, of Clearfield, PA, pleaded guilty to Count Two of the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from July 2019 to June 2020, Quigley conspired to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for Dec. 17, 2021, at 11:00 a.m. The law provides for a minimum sentence of five years in prison to a maximum of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Charlotte Man Is Sentenced to Eight Years on Gun ChargesRead the Press Release
CHARLOTTE, N.C. – On Thursday, August 5, 2021, U.S. District Robert J. Conrad, Jr. sentenced Kane Kileal Lamont Moore, 26, of Charlotte, to 96 months in prison, followed by three years of supervised release, on felon in possession of a firearm charges, announced Acting U.S. Attorney William T. Stetzer.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and the sentencing hearing, between May and June 2019, Moore sold two firearms to undercover ATF agents and was involved in the sale or attempted sale of additional firearms. Court records show that Moore was previously convicted of Breaking and Entering, Common Law Robbery, and Attempted Common Law Robbery, and he is prohibited from possessing firearms. On July 24, 2020, Moore pleaded guilty to two counts of possession of a firearm by a felon.
Moore is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Career Offender Sentenced to Federal Prison after Violating Supervised Release, Distributing MethRead the Press Release
MACON, Ga. – A Perry, Georgia, resident and career offender was sentenced to federal prison for distributing methamphetamine after he was arrested in violation of his supervised release from a prior federal conviction.
Tony Jermaine Neely, 38, of Perry, Georgia, was sentenced to serve 180 months in prison to be followed by five years of supervised release by U.S. District Judge Marc Treadwell on Wednesday, August 4, after previously pleading guilty to possession with intent to distribute methamphetamine. There is no parole in the federal system.
“Career offenders who repeatedly break the laws—and in this particular case, violate the conditions of supervised release—will face serious consequences for their brazen criminal behavior,” said Acting U.S. Attorney Peter D. Leary. “The U.S. Attorney’s Office is working closely with our local, state and federal law enforcement partners across the Middle District to identify and prosecute the most hardened repeat criminals.”
According to court documents, Neely was pulled over during a traffic stop by a Houston County Sheriff’s Office deputy on October 18, 2019. Neely’s license was suspended, and he was detained. Neely was carrying 30 grams of methamphetamine in his pocket and a K9 unit, called to the scene, alerted to Neely’s vehicle. Officers found a semi-automatic pistol with ten rounds of ammunition. Evidence collected from Neely’s cell phone showed multiple text messages with individuals discussing the prices and quantities of drugs. Neely, a career offender, has prior felony convictions, including drug distribution and possession of a firearm in the furtherance of a drug trafficking crime in the U.S. District Court, Middle District of Georgia. Neely admitted that he knowingly violated the terms of his supervised release by distributing methamphetamine.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Houston County Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorney Will Keyes.
Camp Verde Man Sentenced to 18 Months for Failing to Register as a Sex OffenderRead the Press Release
PHOENIX, Ariz. – On Wednesday, Rowan James Kickinghorse Rhodes, 29, of Camp Verde, Arizona, was sentenced by U.S. District Judge Douglas L. Rayes to 18 months in prison, followed by three years of supervised release. Rhodes previously pleaded guilty to Failure to Register as a Sex Offender.
On October 16, 2017, Rhodes was convicted of Abusive Sexual Contact with a Minor and ordered to register as a sex offender. In July 2019, Rhodes acknowledged the requirement to register and registered his address in Tucson, Arizona. Four months later, Rhodes absconded from his residence and did not update his registration. Rhodes was arrested by a Yavapai-Apache Nation police officer in Camp Verde, Arizona on December 10, 2019.
Rhodes is an enrolled member of the Yavapai-Apache Nation.
The United States Marshal and the Yavapai-Apache Nation Police Department conducted the investigation in this case. Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-8108-PCT-DLR
RELEASE NUMBER: 2021-048_Rhodes# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Commentary: Acting US Attorney Jonathan a. OphardtRead the Press Release
As the Acting United States Attorney for Vermont, I have spent the last few months visiting with local, state, and federal law enforcement partners throughout our state, as well as many of my prosecutorial colleagues in the State’s Attorneys offices. At these meetings, I sought feedback on how my office can better assist in addressing violent crime in Vermont, in particular violence perpetrated by firearms. Throughout the state, I have consistently heard two concerns: violent crime is increasing, and law enforcement capacity is eroding. The data backs up these concerns, and the ramifications for Vermont’s future are troubling.
Violent Crime in Vermont is Increasing
Violent crime is a significant and growing challenge for Vermonters. My office has seen increased violence by drug trafficking organizations, increases in collateral violence from individuals suffering from severe substance use disorder (i.e., convenience store robberies), increases in domestic violence, and increased violence involving individuals with mental health challenges. FBI data shows that between 2016 and 2019 (the last year for which data is available), Vermont saw an increase from 136.5 violent crime offenses per 100,000 people to a rate of 202.2 violent crime offenses per 100,000 people. During the same window, the prevalence of firearms as the weapon involved in violence increased by 36 percent.
Unfortunately, the number of officers capable of responding to this rise in violent crime is decreasing swiftly.
Police Recruitment and Retention is in Crisis
Vermont has a police recruitment and retention crisis. A recent report by the Vermont Department of Public Safety, highlighted the incredible challenge of retaining and recruiting the men and women of our law enforcement community. Vermont has seen a 14% decline in the total number of officers available for duty between 2018 and 2021. Of Burlington’s 75 police officers, 31 are actively seeking employment elsewhere. Ms. Morrison’s report estimated that by January of 2022, the number of full-time officers in the state will drop below 700 officers, a reduction of over 125 officers throughout the state. While 159 officers are set to leave policing in 2021, only 23 will have graduated from the Vermont Police Academy.
News reports from around the state reveal the reduction in available officers has already led to service curtailments, from Brattleboro, to Bellows Falls, to Burlington. In addition, staffing issues at the Vermont State Police have diminished levels of service provided by VSP to towns without dedicated departments, leading town residents to demand that selectboards establish new police departments. The reduction in VSP availability has resulted in an increase in reliance and demands on Vermont’s Sheriffs, who contract with local municipalities to provide patrol coverage, causing increased costs to municipalities. In Burlington, concerns about increasing violence have led the Burlington Business Association to pursue private security for Church Street and have prompted calls to increase police patrols in the commercial center of Burlington.
Ramifications of a Recruitment and Retention CrisisIn Burlington, a man with a long history of violent encounters has caused nearly 26 involvements with police so far in 2021, culminating in his arrest this month for aggravated assault with a hate crime motivation. Another had over 30 involvements with numerous violent episodes, culminating in his assault with a hammer on a good Samaritan trying to protect the intended victim. These cases are two examples of how our police officers continue to be tasked on a daily basis with repeatedly mediating challenging encounters in our communities, functioning as interventionists and mental health crisis responders.
Law enforcement work remains as difficult as ever, with police actions under close scrutiny, but with diminishing resources. Throughout Vermont, communities have been having necessary and overdue conversations about police reform, and an examination of the methods and manners of policing is warranted and justified. We want reasonable and rational police officers dedicated to serving their communities for the right reasons. But reasonable and rational people are thinking twice about whether to take an oath of service and join the ranks of law enforcement.
A reduction in recruitment and an increase in departures has a broader impact than simply the number of officers available to patrol and respond. Departments will be forced to reduce their numbers of detectives, transforming police departments further from crime solvers to crisis responders and crime documenters. A reduction in capable investigatory capacity will reduce the detection of sophisticated and covert criminal activity, from child exploitation to human trafficking to fraud. An atrophy of experienced officers will diminish training capacity and deprive departments of capable leaders.
Our law enforcement officers have sworn to protect everyone in Vermont from harm. I am deeply concerned about a shift to private security and a competition for the services of Sheriffs, as it would imply that security in Vermont will only be provided to those citizens and communities who can afford to pay for it. Vermont needs capable police who can protect vulnerable individuals, investigate criminal activity, and bring to justice those who undermine our communities. Quality, responsive, and compassionate public safety services must be available to all Vermonters, not just the highest bidders.
Ensuring equal access to safety and security requires a steady stream of applicants to law enforcement positions who are smart, capable, dedicated, courageous, and compassionate. While we debate how policing must change, we must also recognize the continuing need for high-quality law enforcement officers, encourage good men and women to join their ranks, and support those who serve honorably in a profession that requires great commitment and sacrifice.Bronx Man Convicted of Murder-For-Hire Conspiracy, Drug Trafficking, and Firearms OffensesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict yesterday against SYDNEY SCALES, a/k/a “Moe Black,” a/k/a “Sid,” on five counts in a Superseding Indictment, including charges of murder-for-hire conspiracy, narcotics conspiracy, a firearms offense, and two counts of distributing crack cocaine. SCALES is scheduled to be sentenced on November 18, 2021, by U.S. District Judge Jed S. Rakoff, who presided over the 11-day trial.
U.S. Attorney Audrey Strauss said: “Sydney Scales was the leader of a violent drug operation that peddled drugs and brought guns and violence to our streets. Scales caused at least one drug-related shooting, and he hired a hitman in an attempt to murder rival drug dealers who were having a barbecue in front of a neighborhood barbershop. We continue our daily work with our law enforcement partners to keep our communities safe by vigorously investigating and prosecuting acts of violence and drug trafficking.”
According to the Superseding Indictment and the evidence at trial:
Between in or about 2016 and in or about 2019, SCALES participated in a conspiracy to distribute crack cocaine, powder cocaine, heroin, fentanyl, and marijuana in the Bronx and elsewhere. SCALES also used, carried, and possessed firearms, which were brandished and discharged, in connection with the narcotics conspiracy, and aided and abetted such firearms offenses. For example, the Government offered evidence that on December 1, 2016, SCALES caused a shooting at rival drug dealers standing in front of a convenience store located next to the entrance of the West Farms subway station.
In addition, in or about June 2017, SCALES conspired to commit murder for hire, agreeing to compensate another individual in return for locating and killing at least one rival drug dealer.
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SCALES, 42, was convicted on five counts: (1) conspiring to distribute and possess with intent to distribute crack cocaine, powder cocaine, heroin, fentanyl, and marijuana, which carries a mandatory minimum prison term of 10 years and a maximum prison term of life; (2) murder-for-hire conspiracy, which carries a maximum prison term of 10 years; (3) using and carrying firearms during, and possessing firearms in furtherance of, the narcotics conspiracy, which carries a mandatory consecutive prison term of 10 years and a maximum prison term of life; and (4) two counts of distribution and possession with intent to distribute crack cocaine, each of which carries a maximum prison term of 20 years. SCALES was acquitted of one count of murder in furtherance of drug trafficking and one count of murder using a firearm.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of Homeland Security Investigations and the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Frank Balsamello, Mathew Andrews, Andrew K. Chan, Sarah Krissoff, and Gina Castellano, and paralegal specialist Claudia Hernandez, are in charge of the prosecution.
Box Elder Woman Sentenced to 24 1/2 Years for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Box Elder, South Dakota, woman who pleaded guilty to Conspiracy to Distribute a Controlled Substance was sentenced on July 29, 2021, by Judge Karen E. Schreier, U.S. District Court.
Jennifer Cagle, age 32, was sentenced to 24 1/2 years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Jennifer Cagle was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on July 23, 2020. She pleaded guilty on April 2, 2021.
During her involvement in the conspiracy, the defendant dispersed methamphetamine to others for use and further distribution in the Rapid City area. Over the course of her involvement, she bought and sold several pounds. The defendant also obtained firearms during the course of the conspiracy. The defendant also had methamphetamine sent to her through the mail.
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.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota National Guard, and the South Dakota Highway Patrol.
Assistant U.S. Attorney Kathryn N. Rich prosecuted the case. Cagle was immediately returned to the custody of the U.S. Marshals Service.
Boston Man Charged with Heroin DistributionRead the Press Release
BOSTON – A Boston man was arrested yesterday and charged with distribution of heroin.
Anthony Howard, 34, was charged with one count of possession with intent to distribute and distribution of heroin. Following an initial appearance before U.S. Magistrate Judge Jennifer C. Boal, Howard was detained pending a probable cause and detention hearing scheduled for Aug. 11, 2021.
According to the charging document, Howard allegedly sold over 30 grams of heroin to a cooperating witness on July 20, 2021.
Howard is currently on pre-trial release for a 2014 indictment charging murder, armed assault to murder, and illegal firearm possession, amongst other charges currently pending in Suffolk Superior Court.
The charge of possession with intent to distribute a controlled substance provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. 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; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorney John Dawley of Mendell’s Organized Crime and Gang Unit is prosecuting 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.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Blaine Man Pleaded Guilty to Illegal Possession of Multiple FirearmsRead the Press Release
MINNEAPOLIS – A Blaine man pleaded guilty yesterday to possession of eight firearms as an unlawful user of a controlled substance, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on August 15, 2020, a protest took place at the Minneapolis Police Department’s 5th Precinct building. The event became violent and destructive when individuals began throwing rocks and other objects, breaking windows, firing mortar-type fireworks at the building and at officers stationed on the roof, spray painting the building, and using paint to obscure the video surveillance cameras. After reviewing video surveillance footage, investigators were able to identify Thomas Wilder Moseley, 29, as one of the individuals who was spray painting the front windows of the building. The building sustained several thousand dollars of damages a result of the incident.
According to court documents, on October 15, 2020, Moseley was present inside the Hennepin County Government Center where protesters had gathered during a court appearance for the four former Minneapolis police officers charged in the death of George Floyd. Hennepin County Sheriff’s Deputies arrested Moseley on probable cause based on his involvement in the August 15 incident. At the time of his arrest, Moseley was carrying a loaded Glock, model 26 Gen5, 9 mm semi-automatic pistol.
According to court documents, following Moseley’s arrest, Minneapolis Police officers executed a search warrant at Moseley’s residence in Blaine, Minnesota, and recovered two firearms, more than 1,400 rounds of ammunition, 96 grams of marijuana, and other drug paraphernalia. Officers also obtained a search warrant for Moseley’s Toyota Tacoma, which was parked in downtown Minneapolis near the Government Center. Among other things, officers recovered from the vehicle five firearms, a large amount of ammunition, a hatchet, a crowbar, gas masks, and controlled substances, including marijuana, psychedelic mushrooms, and cocaine.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of an investigation conducted by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.
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Baltimore County Man Pleads Guilty to Federal Murder-For-Hire and Extortion ChargesRead the Press Release
Baltimore, Maryland – Clement Robert Mercaldo, Jr., age 62, of Timonium, Maryland, pleaded guilty late yesterday to federal charges for a murder-for-hire conspiracy and for interstate communications with intent to extort, in connection to the extortion and planned murder of a Baltimore County restaurant owner and his partner over a debt.
The guilty plea was announced by United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his plea agreement and other court documents, Mercaldo loaned more than $1 million to a Baltimore County restaurant owner. When the restaurant owner was unable to make the monthly payments, Mercaldo hired a co-conspirator to send messages threatening victims and their families in order to extort money. During the course of the plots, Mercaldo paid the co-conspirator to vandalize a victim’s car and set fire to a victim’s house as part of the plot to extort. Later, Mercaldo agreed to pay the co-conspirator to murder one of the victims.
“Clement Mercaldo hired someone to extort and threaten victims who owed him money, including setting fire to the house where a victim and his family were sleeping and attempting to murder them. The defendant then went to great lengths to conceal his role from investigators and tried to subvert justice by falsely claiming that he was a victim, too,” said Acting United States Attorney Jonathan F. Lenzner. “This successful prosecution is another example of how our Maryland law enforcement team will never give up in holding accountable criminals like Clement Mercaldo.”
Between 2008 and 2017, Mercaldo, a former restaurant owner, loaned over $1 million to the victim. The victim repaid Mercaldo until 2019, when he was unable to make further payments. As a result, Mercaldo was in significant financial distress, causing him to sell personal belongings in order to continue to pay his expenses.
Beginning in March 2019, Mercaldo hired a co-conspirator to assist in his plot to collect the debt through a variety of extortionate means. Mercaldo gave at least $1,000 in cash to the co-conspirator in exchange for the co-conspirator agreeing to send threatening messages to the victim and destroy the victim’s property, with the intent to pressure the victim to repay Mercaldo.
According to Mercaldo’s plea agreement, between March 28 and 29, 2019, the co-conspirator smashed the windows of the victim’s car in his driveway. Immediately before and after the windows were smashed, the co-conspirator used an anonymous texting application to threaten the victim. The messages referenced a debt and threatened the victim’s wife. In the first few days of April 2019, the co-conspirator also placed calls to the victim in which he took responsibility for smashing the windows and then threatened the victim’s wife.
In order to conceal his role in the extortion, Mercaldo traveled to Florida just prior to March 28, 2019, returning on March 29th, when he supplied the co-conspirator with another cash payment. On April 10, 2019, at Mercaldo’s request, the co-conspirator, using the same number used to contact the victim, sent Mercaldo a message falsely purporting to be from a person from Delaware who was trying to collect money and threatening Mercaldo’s son. Mercaldo asked the co-conspirator to send this message so that Mercaldo could show it to the police when he was questioned about the victim’s smashed windows and other threats.
On April 12, 2019, Mercaldo was interviewed by a detective from the Baltimore County Police Department, regarding the destruction of property at the victim’s residence. Mercaldo falsely told the detective that he too had been receiving threatening messages from a person identifying themselves as “Robin.” Mercaldo then showed the detective the fake message the co-conspirator sent him two days earlier, which included a screen shot of Mercaldo’s son playing lacrosse at his high school. Mercaldo also provided detectives with a false story about his loan to the victim, claiming that he obtained the money he loaned the victim from an unnamed person in Michigan, who loaned the money to Mercaldo at a high interest rate, and that Mercaldo pays this person in cash on the first of the month after receiving an anonymous text message providing the location to meet for the transaction. Additionally, Mercaldo told the detective that he returned home from Florida on March 29, 2019 to find that the windshield of his Mercedes was also smashed, although he did not report it to the police. Mercaldo stated that he believed that the smashing of his windshield was related to the smashing of the victim’s windshield. In truth, Mercaldo’s windshield was damaged by a rock from another car and was repaired on March 14, 2019, two weeks prior to the vandalism of the victim’s car.
From April 2019 through July 2019, Mercaldo withdrew significant amounts of cash from his bank account, which he paid to the co-conspirator. For example, on April 26, 2019, May 7, 2019, and May 15, 2019, Mercaldo withdrew a total of $4,000 cash from his bank account in Maryland, and between May 3rd and July 19th, the co-conspirator deposited $2,514 into his account. The purpose of the payments was for the co-conspirator to set fire to the victim’s home.
At Mercaldo’s direction, in the early morning hours of Sunday, August 4, 2019, the co-conspirator set fire to the victim’s house. While the victim and his wife were asleep upstairs, the co-conspirator broke a rear basement window at the house and ignited a flammable liquid. The victim and his wife were awoken by the smoke detectors, and escaped the fire with the family cat. Although no injuries were sustained to the family or emergency responders, the fire caused significant damage to the residence and destroyed much of the victim’s personal property. As a result of the damage, the victim and his wife were forced to move out of their home and to live elsewhere. In the days immediately following the arson, Mercado withdrew $1,500 cash from his bank account and gave it to the co-conspirator, who deposited $1,290 in cash into his account.
In August and September 2019, the co-conspirator sent numerous threatening text messages from anonymous texting applications to the victim and his business partner. The messages demonstrated that they were being followed. The threats referenced a debt, and many of the messages threatened to harm the victims and their families. Mercaldo continued to instruct the co-conspirator to send threatening messages and on October 22, 2019, the business partner received the message, “This is the third check you and your partner gave me that bounce i talked to him and he gave me your address saying you is stealing from him and do what i have to do to get my money from you he even gave me pictures of your wife and kids.”
On October 26, 2019, the co-conspirator arranged to receive a cash payment from the business partner using the anonymous texting application. The payment was observed and recorded by law enforcement. Immediately after receiving the money, the co-conspirator purchased an Apple watch, and deposited cash onto his account. The co-conspirator and Mercaldo subsequently exchanged text messages for several days about this payment, with Mercaldo stating that the victims told him a payment was made to the co-conspirator and the co-conspirator repeatedly denying receiving any money from the victims.
Starting on October 29, 2019, and continuing through at least the end of January 2020, Mercaldo and the co-conspirator began discussing “plan b” – the murder of one or both of the victims for their lack of payment. For example, on November 3, 2019 Mercaldo sent a text to the co-conspirator, “Hope you whack his ass !” On November 8, 2019, Mercaldo texted the co-conspirator, “Nail em plz !!” In January 2020, the co-conspirator conducted surveillance at the residences and business of the victims, taking images and videos and during some of the videos, he narrated how he planned to follow and attack the victim. During two of the videos the co-conspirator is seen holding two different handguns in his vehicle during the surveillance. The co-conspirator sent these videos and images to Mercaldo as attachments to numerous text messages, during, and immediately after, many of the incidents of surveillance. Mercaldo and the co-conspirator continued to communicate about the victims and the debt through March 2020 and as late as May 30, 2020.
Mercaldo was arrested on June 23, 2020 and remains detained.
The arson at the victim’s residence in August 2019 caused an estimated $302,774.89 of damage to the dwelling and contents, and a loss to the insurance company of $353,340.66 as a direct result of the fire.
Mercaldo faces a maximum sentence of 10 years in federal prison for the murder-for-hire conspiracy and a maximum of 20 years in federal prison for interstate communications with intent to extort. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 28, 2021 at 10:00 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
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Atlanta CEO sentenced to prison for securities fraudRead the Press Release
ATLANTA - Richard J. Randolph, III has been sentenced for securities fraud he committed while CEO of Randolph Acquisitions, Inc.
“Corporate executives, like Randolph, are expected to defend investors’ money, not take advantage of their position in a company to defraud them,” said Acting U.S. Attorney Kurt R. Erskine. “Instead, this defendant let his greed get the better of him and now he faces significant federal prison time.”
“Fraud is fraud, no matter how complicated,” said Special Agent in Charge Steven R. Baisel, U.S. Secret Service - Atlanta Field Office. “The defendant in this case employed multiple machinations in an effort to hide his criminal acts. Ultimately, his efforts failed under the scrutiny of the law enforcement professionals tasked with unraveling his schemes.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Richard Randolph was the CEO, Chairman of the Board of Directors, and majority shareholder of Randolph Acquisitions, Inc., a company headquartered in Atlanta, Georgia, that publicly filed its financials with the Securities and Exchange Commission. He also controlled Gallagher Management Group and other related entities. In 2017 and 2018, Randolph sold over $1 million in Randolph Acquisition stock to various investors.
In 2017, Randolph began preparing to merge Gallagher Management Group into Randolph Acquisitions and sold Randolph Acquisitions shares to multiple investors. Gallagher Management also engaged an accounting firm to audit its 2016 financial statements. In connection with this audit, Randolph provided false and fraudulent information regarding Gallagher Management Group’s assets which were then reflected on the balance sheet of the 2016 financial statements:
- Randolph falsely valued property at $10.5 million with no associated liability. In reality, Gallagher Management Group purchased the property in September 2016 for $1.1 million with a $1.1 million mortgage loan secured by the property. It was sold in August 2017 for $1.2 million.
- Randolph falsely claimed that Gallagher Management Group owned two buildings valued at a claimed $10 million combined. In reality, neither Gallagher Management Group nor Randolph ever owned these properties.
- Randolph falsely valued yet another property at $4.5 million that was acquired in January 2016 for $425,000 by an entity controlled by Randolph and was transferred to Gallagher Management Group in March 2017. In April 2018, the property was sold at auction for $687,500 after Gallagher Management Group defaulted on a $500,000 loan.
- Randolph provided a false bank statement showing a balance of over $2.5 million. The actual balance in this account was $58,198.78.
The audited financials included other misrepresentations:
- They falsely stated that Gallagher Management Group “has consistently maintained over $50 million dollars in assets, under management, annually.”
- They falsely stated that Gallagher Management Group “provides a broad range of investment banking services to a diverse group of corporations, financial institutions, investment funds, and governments.”
- They falsely stated that Gallagher Management Group “provides investment management services and offer[s] investment products (primarily through separately managed accounts, such as mutual funds and private investment funds) across all major asset classes to a diverse set of institutional and individual clients.”
Gallagher Management Group engaged a consultant to prepare a business valuation for the merger which relied upon Gallagher Management Group’s 2016 audited financial statements, additional false property valuation information provided by Randolph, and false projections provided by Randolph. The report valued Gallagher Management Group at $31.3 million on an enterprise value basis and $33.8 million on an equity value basis.
In connection with the proposed merger between Randolph Acquisitions and Gallagher Management Group, Randolph Acquisitions made multiple filings with the Securities and Exchange Commission that attached the false and fraudulent 2016 audited financial statements of Gallagher Management Group. Randolph directed investors to these filings.
In addition to these documents, Randolph made other false and fraudulent misrepresentations to prospective investors:
- Randolph falsely claimed that Randolph Acquisitions was close to securing a variety of large public and private contracts in the U.S. Virgin Islands, including hurricane remediation contracts and an agreement to manage the U.S. Virgin Islands public retirement fund. Randolph Acquisitions never obtained any of these contracts.
- Randolph falsely claimed that Randolph Acquisitions owned EF Block. To the contrary, Randolph Acquisitions did not own EF Block.
- Randolph falsely claimed that Randolph Acquisitions was publicly traded on the pink sheets. Randolph Acquisitions was never listed on any exchange.
Using these misrepresentations, Randolph induced 14 victims to invest over $1.6 million in Randolph Acquisitions.
Richard J. Randolph, III, 40, of Atlanta, Georgia, was sentenced to six years, six months in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $1,602,200 to his victims. Randolph was convicted on these charges on April 9, 2021, after he pleaded guilty.
This case was investigated by the U.S. Secret Service, with assistance from the U.S. Securities and Exchange Commission. In a related civil matter, the U.S. Securities and Exchange Commission filed a complaint charging Randolph and he consented to entry of a judgment against him.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Albuquerque man charged with bank robbery, aiding and abettingRead the Press Release
ALBUQUERQUE, N.M. – Carl “Wizard” Gutierrez, 44, of Albuquerque, appeared in federal court on Aug. 5 for a detention hearing, charged with bank robbery and aiding and abetting. Gutierrez will remain in custody pending trial.
According to a criminal complaint and other court records, on July 15, Gutierrez and an accomplice allegedly robbed the BBVA Bank on Candelaria Road NE in Albuquerque. Gutierrez and his accomplice allegedly entered the bank and approached the teller counter. The accomplice allegedly made his way behind the counter, opened cash drawers and grabbed money. The pair then allegedly fled the bank in a gold minivan.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Gutierrez faces up to 25 years in prison
The FBI Violent Crime Task Force investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorney Niki Tapia-Brito is prosecuting the case.
Thursday 5 August 2021
Worcester Man Pleads Guilty to Wire Fraud and Tax ChargesRead the Press Release
BOSTON – A Worcester man pleaded guilty today to federal tax and fraud charges arising from his role overseeing various Worcester-based employment agencies.
Tam Vuong, 46, pleaded guilty to 14 counts of wire fraud and four counts of failing to pay taxes. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Dec. 1, 2021. Vuong was indicted in August 2019.
Vuong oversaw Prime Labor LLC and UT Services, Inc., which were employment agencies based in Worcester. Each agency paid a few employees by check but paid most employees in cash. Each agency failed to report or pay taxes on the wages paid in cash, which Vuong fraudulently concealed in connection with tax filings and insurance audits. Vuong concealed millions of dollars in cash wages that were paid to Prime Labor workers and additional cash wages paid by UT Services. Between 2012 and 2017, more than $30 million in Prime Labor client company checks were cashed at a check-cashing business in Worcester; Prime Labor paid millions of these dollars in cash wages and then failed to report these wages to the IRS or to its insurer.
In addition, while in his role overseeing and controlling UT Services, Vuong falsely told UT Services’ insurance carrier that the company had only one employee and an annual payroll of only $50,000, when, in actuality, UT Services had dozens of employees and a significantly higher payroll. UT Services disseminated forged certificates of insurance to several clients and failed to inform clients when its workers’ compensation policy was cancelled.
Vuong shifted operations from Prime Labor to UT Services after federal search warrants were executed in November 2017. Vuong took steps to hide his role with both Prime Labor and UT Services.
In January 2021, Julio Lopez of Los Angeles, Calif., a former employee of Prime Labor and UT Services, pleaded guilty to wire fraud and tax charges and is scheduled to be sentenced on Sept. 29, 2021. In February 2021, Linda Le of Shrewsbury, a former employee of UT Services, pleaded guilty to perjury for giving false testimony before a federal grand jury and was sentenced in May 2021 to two years of probation.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of failing to pay taxes each provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $10,000. Sentences are imposed by a federal district court 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; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys Bill Abely, Chief of Mendell’s Criminal Division, Ian Stearns and Adam Deitch, of Mendell’s Criminal Division, are prosecuting the case.
Waterloo Man Who Engaged in Shootout Sentenced to Seven and a Half Years in Federal PrisonRead the Press Release
A man with multiple prior convictions involving violence was sentenced today to over seven years in federal prison.
Charles Ware, age 47, from Waterloo, Iowa, received the prison term after a guilty plea to possessing a firearm as a felon. The judge at sentencing noted that Ware engaged in a shootout with a co-defendant, also a felon, which was “not unlike the Wild West,” with bullets going through multiple windows and the co-defendant being shot in the leg. The judge also noted Ware’s “fairly nonstop” criminal conduct, which included 30 adult convictions, six convictions for violent assaults on women, and violent misconduct while in prison.
Ware was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Ware was sentenced to 90 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Ware is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
The case was prosecuted by Assistant United States Attorney Jake Schunk and investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2063-CJW-MAR.
Follow us on Twitter @USAO_NDIA.
Upper Marlboro Woman Sentenced to 18 Months in Federal Prison for Stealing over $300,000 in Social Security Benefits to Which She Was Not EntitledRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Sonya Bannister Burford, age 53, of Malboro, Maryland to 18 months in federal prison, followed by three years of supervised release, for stealing $322,938 in Social Security benefits to which she was not entitled. Judge Messitte also ordered that Burford must forfeit and pay restitution in the full amount of the loss, which is $322,938.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General (OIG), Philadelphia Field Division; and Special Agent in Charge Rico Medina of the Washington Metropolitan Area Transit Authority (WMATA) – OIG.
According to her guilty plea, Burford’s husband, who was receiving SSA Disability Insurance benefits, died on August 30, 1996. Upon his death, Burford failed to disclose to SSA that he had died and SSA continued to make monthly benefits payments. Between September 1996 and January 2020, Burford received and spent $322,938 in benefits paid to her husband after his death to which she was not entitled.
As detailed in her plea agreement, SSA paid the disability payments for her husband through direct deposit to a joint account held in Burford‘s and her husband’s name. After his death, Burford accessed the funds primarily through cash withdrawals or through the purchase of gift cards in large amounts at grocery stores. Burford also used the funds to make retail purchases and to pay for living expenses and wrote checks to herself.
As part of her plea agreement, Burford is required to forfeit and pay restitution in the full amount of the loss, which the parties agree is $322,938.
Acting United States Attorney Jonathan F. Lenzner praised the SSA OIG and WMATA OIG for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Michael F. Davio, who prosecuted the case.
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Two dozen defendants indicted in investigation of Washington, Ga., area drug trafficking operationRead the Press Release
AUGUSTA, GA: A multi-agency drug trafficking investigation has culminated in the criminal conspiracy indictment of 21 defendants in the Southern District of Georgia.
Operation Wynner Storm, initiated by the Wilkes County Sheriff’s Office and the FBI Safe Streets Task Force, and coordinated through the Organized Crime Drug Enforcement Task Forces (OCDETF), targeted gang-related drug trafficking in the Wilkes, Lincoln and McDuffie County areas north of Augusta, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The primary charge in the indictment, Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana, carries a statutory penalty upon conviction of 10 years to life in federal prison and fines of up to $10 million, followed by not less than five years of supervised release.
There is no parole in the federal system.
“A collaborative effort with our law enforcement partners is the key to combatting large drug trafficking organizations,” said Acting U.S. Attorney Estes. “Our rural communities, particularly, benefit from the coordination of local, state and federal agencies in the fight against criminal street gangs.”
As described in the newly unsealed 51-count indictment in USA v. Wynn et al., Operation Wynner Storm describes a conspiracy to distribute 50 grams or more of methamphetamine or 500 grams or more of a mixture containing a detectable amount of methamphetamine, along with cocaine and marijuana, dating back at least to April 2019. Many of the defendants also are charged with illegal firearms possession, and the indictment includes the forfeiture of eight guns seized during the investigation.
An additional 18 defendants are being prosecuted on state charges related to the investigation.
“On behalf of local law enforcement and the good citizens of Wilkes County, we appreciate the hard work by the Safe Streets Task Force in making all of Wilkes County a safer place to live,” said Mark Moore, Sheriff of Wilkes County.
“Citizens in the communities affected by organizations who are alleged to peddle drugs and weapons are immediately safer following the collaborative effort of the FBI and our federal, state and local law enforcement partners,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are all committed to investigate and dismantle drug trafficking organizations.”
“ATF will continue to dedicate federal resources in conjunction with crucial federal and local law enforcement partners to the pursuit of eradicating and forestalling criminal activity in communities we serve,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“These indictments are the result of successful collaborative efforts between state, local, and federal agencies,” said Vic Reynolds, Director of the Georgia Bureau of Investigation. “We will continue to work with our partners to investigate drug trafficking and keep Georgia safe.”
Those charged in Operation Wynner Storm and their charges include:
- Exjaben Demontaz Hardman, a/k/a “Zay,” 42, of Washington, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Using or Maintaining a Drug Premises; and 24 counts of Use of Communication Facility, a charge related to the use of telephones to facilitate the conspiracy;
- Sherman Redzuees Blackmon, a/k/a “Shorty P,” 42, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and four counts of Use of Communication Facility;
- Paul Mickel McKittrick, a/k/a “Mike,” 40, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and 12 counts of Use of Communication Facility;
- Calvin Terrill Wynn, a/k/a “Swang Lo,” a/k/a “Lo,” 33, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and three counts of Distribution of 50 Grams or More of Methamphetamine;
- Timothy Derrick Pettus, a/k/a “TP,” 53, of Duluth, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and three counts of Use of Communication Facility;
- William Daniel Mason, 52, an inmate at the Georgia Diagnostic and Classification Prison in Jackson, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Possession of a Firearm by a Convicted Felon; and two counts of Use of Communications Facility;
- Amanda Kirkland Smith, 40, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana;
- Derrick Demond Barnett, a/k/a “DB,” 44, an inmate at the Georgia Diagnostic and Classification Prison, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Possession with Intent to Distribute Cocaine; Possession of a Firearm by a Convicted Felon; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and two counts of Use of Communication Facility;
- Jermaine Wingfield, a/k/a “J-Chunk,” 32, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and two counts of Use of Communication Facility;
- Roger Levar Powell, a/k/a “P,” 44, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Possession with Intent to Distribute Marijuana; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and two counts of Use of Communication Facility;
- Stevie Lamar Shank, 49, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana, and two counts of Use of Communication Facility;
- Elijah Abdullah Davis, 35, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and one count of Use of Communication Facility;
- Willie Fitzgerald Young, 51, of Rayle, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and three counts of Use of Communication Facility;
- William Paul Murray, 66, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Using or Maintaining a Drug Premises; and one count of Use of Communication Facility;
- Lindsey Harris Andrews, 37, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and two counts of Use of Communication Facility;
- Lila Marie Quarles, a/k/a “Lila Dawkins,” 41, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and two counts of Use of Communication Facility;
- Cynthia Leigh McCarty, 54, Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and two counts of Use of Communication Facility;
- Demetrius Antonio Perkins, a/k/a “Dee,” 39, an inmate at Riverbend Correctional Facility in Milledgeville, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana;
- Stephanie Marie Adams, 24, of Washington, charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and two counts of Use of Communication Facility;
- Taylor Ann Marie Farmer, 29, of Crawfordville, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; Possession with Intent to Distribute Methamphetamine; and three counts of Use of Communication Facility; and,
- Tracy Reid Moore, a/k/a “T-Mo,” 33, of Athens, Ga., charged with Conspiracy to Distribute and to Possess with Intent to Distribute Methamphetamine, Cocaine, and Marijuana; and two counts of Use of Communication Facility.
Initial appearance hearings in U.S. District Court have been underway for the defendants.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case 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 FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service and the U.S. Probation Office; the Georgia Bureau of Investigation; the Georgia Department of Community Supervision; the Georgia State Patrol; the Wilkes County Sheriff’s Office; the Taliaferro County Sheriff’s Office; the McDuffie County Sheriff’s Office; the Richmond County Sheriff’s Office; and the Burke County Sheriff’s Office. The case is being prosecuted for the United States by Assistant U.S. Attorney Patricia G. Rhodes.
Two Arkansas Men Plead Guilty to Damaging Historic Mines in Buffalo National RiverRead the Press Release
FORT SMITH, Ark.—Two men pleaded guilty last week to felony violations of the Archaeological Resources Protection Act, in connection with their illegal excavations of archaeological sites in the Historic Rush Mining District of Buffalo National River, and the sale of stolen geological and mineral specimens at a store in Alpena. U.S. District Judge P.K. Holmes III presided over the July 27 change-of-plea hearings, in which Nathan Bradford LeMay, 35, of Hot Springs Village, and Justin Charles Baird, 32, of Hot Springs, each pleaded guilty to the first count of the three-count indictment in which both were named.
According to court documents, on multiple occasions in 2015 and 2016, LeMay and Baird traveled to the Historic Rush Mining District, in Marion County, Arkansas, to dig for mineral and geological specimens to sell at LeMay’s business, Alpena Crystals. The pair’s plans went awry on Feb. 14, 2016, when a U.S. Park Ranger observed them camped in Buffalo National River, which is a United States National Park.
Noticing evidence of their excavations, the Ranger obtained consent to search their campsite and vehicles, recovering digging tools and containers of geological specimens. Two days later, officers were sent to several mines in the area to assess whether or not they had been entered. The Monte Cristo Mine, a gated, locked and controlled mine along Clabber Creek, was observed to have been broken into. Trash, water bottles and other items were located both just inside and outside this mine. On the Rush Creek side of the same mountain, drag marks in high grass, from the Morning Star/Ben Carney Mine, down to Rush Creek and the parking lot, indicated large heavy objects had been dragged down the mountain to the parking area.
A subsequent investigation by the National Park Service, assisted by local law enforcement and the Carroll County Prosecuting Attorney’s Office, established the full extent of the pair’s illegal excavations. LeMay and Baird had excavated and damaged 22 areas within those mines, removing mineral and geological materials, and damaging the historic sites—which add to the knowledge of the mining community in the Ozarks as the industry transitioned from crude mining techniques to modern methods. Dr. Caven Clark, an archaeologist with the National Park Service, now retired, conducted a resource damage assessment, determining that the cost of restoration and repair to the site was approximately $22,241.
Both men were indicted by a federal grand jury in March 2020. In addition to violation of the Archaeological Resources Protection Act, which prohibits excavating, damaging, altering and defacing archaeological sites and resources, both men were also charged with theft of U.S. property and damage to government property. On February 10, 2021, LeMay was arrested at his residence, in Hot Springs Village, and was later released on a cash bond pending trial. Baird self-surrendered to authorities and was arraigned on April 16, 2021. Before they announced their intentions to plead guilty, the case had been scheduled to be tried beginning on July 26.
As a result of their guilty pleas both LeMay and Baird face up to two years in prison and fines of up to $250,000. Additionally, both men have agreed to pay $22,241 in restitution as a shared obligation. The court will determine their sentences at a later date, after reviewing pre-sentence investigation reports prepared by the U.S. Probation Office, and considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The case was investigated by special agents of National Park Service, Investigative Services Branch, and U.S. Park Rangers at Buffalo National River, with the assistance of the Boone County, Ark. Sheriff’s Office, Eureka Springs Police Department, and the Carroll County Prosecuting Attorney’s Office.
Assistant U.S. Attorney Steven Mohlhenrich prosecuted the case for the United States.
The Historic Rush Mining District
Located within the Buffalo National River is a designated historical district known as the Historic Rush Mining District, a 1316-acre former zinc mining district located on the lower Buffalo River and two of its tributaries, Rush Creek and Clabber Creek. It is a remnant industrial landscape with the remains of both open-pit and underground zinc mines, processing facilities, and worker housing. Waste rock piles form a dominant feature of the landscape. Within this district, are dozens of historic and archaeological sites and mines, including the Monte Cristo, Ben Carney, and Morning Star mines. The Rush Historic District buildings and structures, through isolation, have retained their historic design features and use and convey the sense of a turn-of-the century mining operation and Ozarks community. The ruins and archaeological sites fill in the community layout and add to the knowledge of historic mining techniques and mining community construction; they retain and contribute to the feeling of the widespread activity of this once bustling Ozarks mining community. The Rush Historic District portrays the story of the zinc mining industry in the Ozarks as the industry moved from crude mining techniques to modern methods.
The Archaeological Resources Protection Act
The National Park Service wishes to remind the public that all public lands are protected by federal law and regulation. In 1979, the Congress found that archaeological resources on public and Indian lands are an irreplaceable part of the Nation’s heritage. The Archaeological Resources Protection Act of 1979 makes it a violation of federal law to excavate, remove, damage, or otherwise alter or deface any archaeological resource located on public (federal) or Indian (Native American) lands, or attempt to do so. If convicted of a felony, penalties include up to two years imprisonment and a fine of up to $250,000. Subsequent violations are punishable by up to five years imprisonment.
Troy Man Sentenced on Heroin and Gun ConvictionsRead the Press Release
ALBANY, NEW YORK – Jean Luis Colon, age 23, of Troy, New York, was sentenced today to 36 months in prison, to be followed by 3 years of supervised release, for possessing and intending to distribute heroin, and to possessing a firearm with an altered serial number.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.
Colon admitted that he possessed approximately 2,050 small bags of heroin that he intended to sell, which law enforcement seized when they executed a search warrant on his Troy residence on August 21, 2020; some of the heroin bags were stamped with the words “Corona Virus.” The bags collectively contained between 60 and 80 grams of heroin.
Colon also admitted to possessing a .38 caliber Smith and Wesson revolver with a scratched serial number. Colon has been in custody since his arrest on August 21, 2020.
This prosecution was the result of a joint investigation by the DEA, Troy Police Department, and the New York State Police Special Investigations Unit, and was prosecuted by Assistant U.S. Attorney Michael Barnett with assistance from the Rensselaer County District Attorney’s Office.
Three Springfield Residents Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Three Springfield, Missouri, residents were sentenced in federal court today for their roles in a conspiracy to distribute large amounts of methamphetamine.
Jeremy A. Ingram, 42, Laurie B. Holmes, 39, and Lonnie J. Tinker, 36, were sentenced in separate appearances before U.S. District Judge M. Douglas Harpool. Ingram was sentenced to 20 years in federal prison without parole. Holmes was sentenced to 15 years in federal prison without parole. Tinker was sentenced to 10 years in federal prison without parole.
Ingram, Holmes, and Tinker each pleaded guilty to their roles in the drug-trafficking conspiracy from Nov. 22, 2016, to Sept. 26, 2018. Ingram also pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime.
Ingram and Holmes each admitted they directly received methamphetamine to distribute from co-defendant Cheyenne W. Conn, 45, of Everton, Mo. Conn transported approximately 10 pounds of methamphetamine per week by vehicle from California to the Springfield area. He then distributed the methamphetamine to other dealers in the conspiracy, including Ingram and Holmes, who in turn distributed methamphetamine to other dealers. Tinker admitted that he purchased more than a kilogram of pure methamphetamine from co-defendant Cassidy R. Clayton, 25, of Springfield, who also received methamphetamine directly from Conn. Tinker distributed methamphetamine to at least seven other individuals.
Ingram admitted that he engaged in several controlled purchases of methamphetamine by undercover law enforcement officers and confidential informants. On Sept. 22, 2017, law enforcement officers executed a search warrant at Ingram’s motorcycle shop, Straight Clownin’ Customs. He and Conn were present in the garage, where officers seized a loaded Springfield Armory 9mm semi-automatic pistol, 300 rounds of 9mm ammunition, numerous rounds of various caliber ammunition, a lock pick set, and drug paraphernalia. Officers also seized a loaded Ruger 9mm semi-automatic pistol from Conn’s GMC Sierra, which had been reported as stolen.
When Ingram was arrested on May 10, 2018, he was in possession of a stolen Springfield Armory .45-caliber semi-automatic pistol and 31.79 grams of methamphetamine. Ingram was arrested again on July 4, 2018. Ingram fled from officers on his motorcycle at a high rate of speed, nearly striking a police van as he drove through a public parking lot.
Springfield police officers executed a search warrant at Holmes’s residence on Dec. 8, 2017, and seized 82.7 grams of methamphetamine, $2,085, and drug paraphernalia. Holmes admitted she purchased approximately 10 pounds of methamphetamine from Conn during the conspiracy, which she distributed to others. Holmes also admitted that she traveled with Conn to Los Angeles, Calif., to purchase methamphetamine.
When officer’s searched Tinker’s residence, they found a safe in his bedroom that contained a Tanfoglio .22-caliber revolver that had been reported stolen, 87 rounds of ammunition, and methamphetamine.
Conn and Clayton are among nine defendants who have pleaded guilty in this case and await sentencing: Larry E Stapp, 42, Tresha R. Ahart, 31, and Megan L McNary, 27, all of Springfield; Ginger L. Huerta, also known as Ginger L. Gray, 41, of Halfway, Mo.; Lloyd R. Bradley, 44, of Fordland, Mo.; Shelby R. Maupin, 32, of Ozark, Mo.; and Summerlee M. Barnett, also known as Summerlee M. Lacount, 35, of Salem, Mo.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Sarff. It was investigated by IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, the Dade County, Missouri, Sheriff’s Department, and the Oldham County, Texas, Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. 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 and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
Tennessee Department of Human Services Agrees to Pay $6.8 Million to Resolve False Claims Act Liability in Connection with SNAP Quality ControlRead the Press Release
The Tennessee Department of Human Services (TDHS) has agreed to pay the United States $6,854,416 to resolve allegations that it violated the False Claims Act in its administration of the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP). Until 2008, SNAP was known as the Food Stamp Program.
“The money allocated by Congress for the SNAP program funds critical USDA efforts to help families in need,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department will continue to protect public funds to ensure that they are used for their intended purposes.”
“It is shocking that Tennessee’s Department of Human Services, and so many other states’ agencies entrusted with feeding and caring for vulnerable and needy residents, would manipulate SNAP quality control data for their financial benefit,” said Acting U.S. Attorney Joseph H. Harrington for the Eastern District of Washington. “I am gratified, however, that Tennessee has stepped up, corrected its conduct, cooperated with our investigation and resolved its liability. I want to especially commend the outstanding work by the USDA’s Office of Inspector General’s special agents and auditors who enabled the United States to recover over $67 million in wrongfully obtained funds. This nationwide investigation and series of settlements demonstrate our office’s commitment to working with our law enforcement partners to ensure that that those who abuse SNAP and other critical government programs will be held fully accountable.”
“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this long-term, multi-state investigation,” said Special Agent-in-Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the government’s commitment to work across agency lines to protect the integrity of SNAP.”
Under SNAP, USDA provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month and provided more than $71 billion annually.
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits and to perform quality control to ensure that eligibility decisions are accurate. The USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias and accurately report states’ error rates in making eligibility decisions.
The USDA reimburses states for a portion of their administrative expenses in administering SNAP, including expenses for providing quality control. It also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
The settlement resolves allegations that beginning in 2012, TDHS contracted with a consultant known as Julie Osnes Consulting LLC (Osnes Consulting) to provide advice and recommendations designed to lower its SNAP quality control error rate. The United States alleged that Osnes Consulting’s recommendations, as implemented by TDHS, injected bias into TDHS’s quality control process and resulted in TDHS submitting false quality control data and information to USDA, for which it received performance bonuses for fiscal years 2013 and 2014 to which it was not entitled.
This is the ninth settlement in this matter, and the eighth settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Virginia, Wisconsin, Texas, Louisiana, Alaska, Florida and Mississippi, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered over $67 million in connection with this investigation.
The settlement was a result of a joint investigation conducted by the USDA, Office of Inspector General, Investigations; the Civil Division’s Commercial Litigation Branch; and the U.S. Attorney’s Office for the Eastern District of Washington, with the assistance of USDA-OIG-Audit based on the results of its nationwide audit of SNAP quality control processes.
The matter was handled by Senior Trial Counsel Don Williamson of the Civil Division and Assistant U.S. Attorneys Dan Fruchter and Tyler Tornabene of the Eastern District of Washington.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Tennessee Department of Human Services Agrees to Pay $6,854,416 to Resolve False Claims Act Liability in Connection with Snap Quality ControlRead the Press Release
The Tennessee Department of Human Services (TDHS) has agreed to pay the United States $6,854,416 to resolve allegations that it violated the False Claims Act in its administration of the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today. Until 2008, SNAP was known as the Food Stamp Program.
“The money allocated by Congress for the SNAP program funds critical USDA’s efforts to help families in need,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department will continue to protect public funds to ensure that they are used for their intended purposes.”
It is disheartening that Tennessee’s Department of Human Services, and so many other states’ agencies entrusted with feeding and caring for vulnerable and needy residents, would manipulate SNAP quality control data for their financial benefit,” said Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington. “I am encouraged that Tennessee has acknowledged and corrected its conduct, cooperated with this investigation, and resolved its liability. I want to especially commend the outstanding work by the USDA’s Office of Inspector General’s special agents and auditors that enabled the United States to recover over $67 million in wrongfully obtained funds. This nationwide investigation and series of settlements demonstrate our office’s commitment to working with our law enforcement partners to ensure that that those who abuse SNAP and other critical government programs will be held fully accountable.”
Under SNAP, USDA provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month, and provided more than $71 billion annually.
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that eligibility decisions are accurate. The USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions.
The USDA reimburses states for a portion of their administrative expenses in administering SNAP, including expenses for providing quality control. It also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
The settlement resolves allegations that beginning in late 2012, TDHS contracted with a consultant known as Julie Osnes Consulting, LLC (Osnes Consulting) to provide advice and recommendations designed to lower its SNAP quality control error rate. The United States alleged that Osnes Consulting’s recommendations, as implemented by TDHS, injected bias into TDHS’s quality control process and resulted in TDHS submitting false quality control data and information to USDA, for which it received performance bonuses for fiscal years 2013 and 2014 to which it was not entitled.
This is the ninth settlement in this matter, and the eighth settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Texas, Virginia, Wisconsin, Mississippi, Louisiana, Alaska, and Florida, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered more than $67 million in connection with this investigation.
“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this long-term, multi-state investigation,” said Special Agent-in-Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the government’s commitment to work across agency lines to protect the integrity of SNAP.”
The settlement was the result of a joint nationwide investigation conducted by the USDA OIG, the U.S. Attorney’s Office for the Eastern District of Washington, and the Department of Justice’s Civil Division, Commercial Litigation Branch, with the assistance of USDA-OIG-Audit based on the results of their nationwide audit of SNAP QC processes. The United States was represented by Assistant U.S. Attorneys Dan Fruchter and Tyler Tornabene of the Eastern District of Washington and by Don Williamson, Senior Trial Counsel of the Fraud Section of the Department of Justice, Civil Division, Commercial Litigation Branch.
The claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Sussex County Man Admits Unlawfully Possessing Weapons, MarijuanaRead the Press Release
NEWARK, N.J. – A Sussex county man appeared in court today on charges that he possessed an arsenal of weapons, ammunition, and marijuana, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Rubino, 59, of Lafayette Township, New Jersey, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of possession of marijuana with intent to distribute and one count of possession of firearms and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On July 24, 2019, following a motor vehicle accident, officers with the New Jersey State Police observed numerous weapons and ammunition inside Rubino’s crashed vehicle. After executing court-authorized search warrants on Rubino’s vehicle and residence, law enforcement recovered an arsenal of weapons and ammunition from Rubino’s car and house, including:
- An Intratec Arms Model TEC-DC9 semi-automatic assault handgun;
- A Cobray Arms Mac-11 9mm semi-automatic assault pistol with a high capacity magazine;
- A Keltec CMR30 .22 caliber semi-automatic rifle loaded with sixteen (16) .22 caliber hollow-point cartridges;
- A High Standard Derringer .22 caliber double-barrel handgun;
- A Polymer 80 9mm semi-automatic handgun;
- An Ithaca M-66 20-gauge single shotgun;
- A Remington Model 700 .223 caliber bold action rifle with scope;
- A Thompson Center .50 caliber muzzle-loading rifle with scope;
- A Remington Model 870 Wingmaster 12-gauge pump shotgun;
- A New England Firearms 20-gauge single shot shotgun;
- A Remington Model 760 .300 Savage pump rifle;
- A Glenfield Mod 60 .22 LR caliber semi-automatic rifle;
- Two sawed-off double-barrel shotgun barrels
- Several high-capacity magazines;
- Numerous silencers;
- An assault rifle scope;
- A grenade launcher;
- A ballistics vest; and
- Numerous additional ammunitions of various calibers
In addition to the firearms and ammunition, law enforcement recovered approximately 2.5 kilograms of marijuana from Rubino’s house.
The count of possession of marijuana with the intent to distribute carries a maximum potential penalty of five years in prison and fine of up to $250,000, or twice the gross profits or other proceeds to the defendant, whichever is greatest. The count of possession of firearms and ammunition by a convicted felon is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross profit or pecuniary loss, whichever is greatest. Sentencing is scheduled for Dec. 14, 2021.
Acting U.S. Attorney Honig credited the New Jersey State Police, under the direction of Col. Patrick J. Callahan, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, with the investigation leading to today’s guilty plea. She also thanked the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, and the Sussex County Prosecutor’s Office, under the direction of Prosecutor Francis A. Koch for their assistance.
The government is represented by Assistant U.S. Attorney Naazneen Khan of the Organized Crime and Gangs Unit in Newark.
Shepherd man charged in COVID-19 relief fraud schemeRead the Press Release
BILLINGS – A Shepherd man who owns a restaurant was arraigned today on charges in connection with a scheme to defraud the Small Business Administration (SBA) of approximately $75,000 in a COVID-19 relief loan and to use those funds for personal benefit, including buying classic cars, Acting U.S. Attorney Leif M. Johnson said.
Michael Eugene Bolte, 70, of Shepherd, owner of the Feedlot Steakhouse, pleaded not guilty to an indictment charging him with wire fraud and with engaging in transactions in property derived from specified unlawful activity. If convicted of the most serious crime, Bolte faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Bolte was released pending further proceedings.
The indictment said that in response to the COVID-19 pandemic, the SBA began the Economic Injury Disaster Loan (EIDL) program to provide economic relief to small businesses and nonprofit organizations that experienced a temporary loss of revenue. Loan proceeds were to be used solely as “working capital” for business operating expenses.
The indictment alleged that from April 1, 2020 to about March 4, 2021, Bolte devised a scheme to defraud the SBA by falsely certifying that loan proceeds were to be used as working capital for the business when in fact approximately $75,000 of loan proceeds were used for his own benefit. The indictment includes a criminal forfeiture in which if convicted, Bolte would forfeit to the United States any real and personal property derived from the offense. Property to be forfeited includes four classic cars -- a 1916 Studebaker, a 1929 Franklin, a 1939 Ford Deluxe and a 1941 Ford Super Deluxe.
Assistant U.S. Attorney Michael A. Kakuk is prosecuting the case, which was investigated by IRS Criminal Investigation, with assistance from the SBA Office of Inspector General and the U.S. Attorney’s Office.
An indictment is merely an accusation and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
PACER case reference. 21-46.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Sanford Man Pleads Guilty to Making False Statements to Firearms DealersRead the Press Release
PORTLAND, Maine: A Sanford man pleaded guilty yesterday in federal court to providing false information to firearms dealers while purchasing firearms, Acting U.S. Attorney Donald E. Clark announced.
According to court records, in October and November 2018, Allen Sinclair Bowman, 26, purchased 10 firearms from three different federal firearm licensees in Cumberland and York counties. While purchasing the firearms, Bowman responded “Yes” to a question on an ATF form which asked him if he was purchasing the firearms for himself. In truth, he was purchasing the firearms for a drug dealer in Massachusetts to settle a drug debt. It is against federal law to provide false information to federal firearm licensees when purchasing firearms from them.
Bowman faces up to 10 years in prison and a $250,000 fine on each of the three counts to which he pleaded guilty. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sanford Police Department investigated the case as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative.
PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
Rhode Island Man Sentenced to 18 Months of Imprisonment for Automobile Warranty Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jason Pannone, age 40, of North Providence, Rhode Island was sentenced to 18 months’ imprisonment and two years of supervised release by United States District Court Judge Malachy E. Mannion for conspiring to commit wire and mail fraud, and for aggravated identity theft offenses.
According to Acting United States Attorney Bruce D. Brandler, Pannone was convicted of processing false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile detailing shop, Platinum Auto Services, and through Ultra Auto Services, where he was employed. The invoices were sent to and paid by an automobile warranty company in Wilkes-Barre, Pennsylvania. Pannone pleaded guilty on March 23, 2021, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company. Judge Mannion ordered Pannone to pay restitution of $128,667.16 to the victim of his crime.
Three of Pannone’s coconspirators were convicted in this investigation:
- Brian Larry, age 59, of Clark’s Summit, Pennsylvania, was convicted on May 10, 2021, following a jury trial, of mail fraud, wire fraud, aggravated identity theft, and false statement offenses. Larry was convicted of defrauding his former employer, the Wilkes-Barre based automobile warranty company, from approximately January 2014 through October 2018. Larry also was convicted of stealing the personal information of warranty policy owners and providing it to his coconspirators, who created false invoices for nonexistent automobile repair work supposedly performed at various garages in Rhode Island, Massachusetts, and Pennsylvania, including by forging the policy owners’ signatures on the paperwork. The false and forged documentation was then sent to the warranty company, where Larry approved payment of the invoices. During the course of the scheme, Larry and his coconspirators obtained approximately $400,000 paid out by the warranty company pursuant to the false invoices, including thousands of dollars in repair work for Larry’s personal vehicle that he charged to other policy owners. The evidence at trial showed that Larry then falsified internal warranty company documents in an attempt to conceal his crimes.
- Matthew Gershkoff, age 64, of North Providence, Rhode Island, pleaded guilty to conspiring to commit wire fraud, and to aggravated identity theft, and is awaiting sentencing. Gershkoff was convicted of preparing false invoices for nonexistent automobile repairs at multiple automobile repair shops located in Rhode Island and in Massachusetts, and for forging policy owners’ signatures. Gershkoff pleaded guilty on May 18, 2020, to causing between $250,000 and $550,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and has agreed to repay restitution.
- Herman Cabral, age 62, of Cranston, Rhode Island, pleaded guilty to conspiring to commit wire fraud, and was sentenced to 10 months of imprisonment and three years of supervised release. Cabral was convicted of processing false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile detailing shop, A Plus Auto Services. Cabral pleaded guilty on July 23, 2019, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and was ordered to pay over $211,644.03 in restitution.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Phillip J. Caraballo and Jeffrey St John prosecuted the case.
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Prince George’s County Man Sentenced to Seven Years in Federal Prison for Distributing PCP, Crack Cocaine and Fentanyl and for Possessing an AM-15 Rifle in Furtherance of His Drug TraffickingRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Marvel David Yarborough, age 30, of Capitol Heights, Maryland, to seven years in federal prison, followed by five years of supervised release, for possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his guilty plea, on February 21, 2020, Prince George’s County Police officers conducted a traffic stop of a vehicle being driven by Yarborough, after observing that the driver was not wearing a seat belt and did not properly use his turn signal. When approaching the vehicle officers observed Yarborough attempting to conceal objects in his groin area and detected the odor of phencyclidine (“PCP”) from his person and vehicle. Yarborough was searched and officers recovered approximately 34 baggies and capsules containing a white, rock-like substance. The substances were tested in the lab and found to contain 10.5 grams of crack cocaine, .352 grams of fentanyl, and 17.6 grams of PCP. In addition, law enforcement recovered $1,012 in cash from Yarborough’s vehicle, numerous empty baggies and several digital scales.
In March 26, 2020, law enforcement executed a search warrant at Yarborough’s residence and recovered an AM-15 rifle, with a loaded drum-style magazine containing eight rounds of ammunition from the hall closet. An additional drum-style magazine was found on the kitchen table, loaded with 14 rounds of ammunition. Law enforcement also seized: 100 capsules found to contain 9.234 grams of crack cocaine and 26.7 grams of powder cocaine; 6.68 grams of PCP; drug paraphernalia; and a notebook containing references to drugs and the names and numbers of drug customers.
Yarborough’s cell phone was also seized and subsequently searched. The phone contained text conversations about drugs and guns, photographs of Yarborough with the AM-15, and photographs of drugs and drug paraphernalia. The text messages reflect that Yarborough possessed the AM-15 in furtherance of his drug trafficking.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Brian W. Lynch and Rajeev Raghavan, who prosecuted the case.
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Postal Worker Pleads Guilty to Mail TheftRead the Press Release
BOSTON – A former U.S. Postal Service mail carrier pleaded guilty today in federal court in Boston to stealing mail containing gift cards.
Brian Thibodeau, 48, pleaded guilty to one count of theft of mail by an employee of the U.S. Postal Service. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 13, 2021. Thibodeau was indicted on Feb. 10, 2021.
Beginning in 2001, Thibodeau worked as a letter carrier in the Saugus Post Office. In 2020, Thibodeau stole customers’ gift cards sent in the mail and spent them for his personal use. Thibodeau admitted to stealing approximately $2,000 worth of gift cards from postal customers on his route.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater; and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.
Pipeline Company to Pay $35 Million in Criminal Fines and Civil Penalties for Largest-Ever Inland Spill of Produced Water from Oil DrillingRead the Press Release
The Department of Justice today filed criminal charges under the Clean Water Act against Summit Midstream Partners LLC, a North Dakota pipeline company that discharged 29 million gallons of produced water from its pipeline near Williston, North Dakota, over the course of nearly five months in 2014-2015.
The discharge of more than 700,000 barrels of “produced water” – a waste product of hydraulic fracturing – contaminated land, groundwater, and over 30 miles of tributaries of the Missouri River. The spill, believed to be the largest inland spill in history, was visible in photographs taken by satellites orbiting the earth.
In addition to the criminal charges, the United States and the State of North Dakota filed a civil complaint against Summit and a related company, Meadowlark Midstream Company LLC, alleging violations of the Clean Water Act and North Dakota water pollution control laws. Under parallel settlements resolving the criminal and civil cases, the company has agreed to pay a total of $35 million in criminal fines and civil penalties.
“Summit prioritized profits over the environment. The company’s disregard for pipeline safety resulted in pollution of the environment on a massive scale over 143 days,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Summit’s conduct was criminal and its failure to immediately report the discharge a felony. This resolution holds the company financially accountable, requires enhanced compliance measures to prevent future spills, and provides compensation for North Dakota’s damaged natural resources.”
“North Dakota and its federal partners are holding Summit and Meadowlark accountable and making clear that disregard for North Dakota’s environmental laws will not be tolerated,” said North Dakota Attorney General Wayne Stenehjem. “The North Dakota Department of Environmental Quality, Game and Fish Department, and Industrial Commission staff spent countless hours investigating and responding to the spill, making this settlement possible.”
If the court accepts the plea agreement, Summit will pay $15 million in federal criminal fines for negligently causing the continuous spill, failing to stop it and deliberately failing to make an immediate report as required.
“Summit’s negligence included the design, construction and operation of the Marmon Water Gathering System pipeline, as well as the negligent failure to find and stop the spill after learning of objective signs of a leak,” according to a factual admission signed by the company and filed in court. Summit started pipeline operations without meters at both ends of the pipeline to conduct “line balancing” or otherwise having a reliable leak detection system in place. “Even after the company learned of major drops in pressure and volume – objective signs of a leak – the company negligently continued operations and thus caused millions of additional gallons to be discharged into U.S. waters without learning the cause or pausing operations,” according to the Joint Factual Statement.
Summit has further admitted that it knowingly did not share all relevant information regarding the volume and duration of the spill and that its reports to federal and state authorities “were incomplete and misleading,” in papers filed in court. Summit eventually reported 70,000 barrels over a 10-day period despite an internal analysis showing the discharge was more than 700,000 barrels over 143 days. Under the terms of the proposed plea agreement, Summit will serve three years of probation in which comprehensive remedial measures are required.
Under the proposed civil settlement, Summit, Meadowlark, and a third related company, Summit Operating Services Company LLC, will pay $20 million in civil penalties, perform comprehensive injunctive relief, clean up the contamination caused by the spill and pay $1.25 million in natural resource damages to resolve the civil case. Summit has spent over $50 million to date to clean up the spill under state oversight; ongoing remediation efforts under the civil settlement are expected to continue over the next several years. The civil settlement further requires Summit and Meadowlark to take concrete steps to prevent future discharges, including stringent pipeline installation, operation, and testing requirements; a centralized computational pipeline monitoring system; spill response planning and countermeasures; an environmental management system; and data management and training measures. Independent third-party audits are required to ensure that certain injunctive measures are properly developed and implemented. These compliance measures were made a condition of Summit’s probation in the proposed criminal plea agreement. The companies have also agreed to enter into a related administrative settlement with the North Dakota Industrial Commission.
Summit continued pumping produced water through the pipeline in 2014 to 2015 despite multiple warning signs that the line had ruptured:
- Aug. 17, 2014. Real-time pressure data collected by Summit showed a significant pressure drop, indicating a rupture had occurred.
- Oct. 14, 2014: Summit’s construction manager raised a concern about “extreme low pressure on the pipeline.” The facilities engineer responded: “Not good. We may want to consider shutting it down.” Summit continued to operate the line.
- Nov. 4, 2014: the third-party operator of the injection well at the end of the pipeline (Company A) informed Summit that 115,000 barrels (4,830,000 gallons) of produced water were missing for the month of October, which is approximately 3,700 barrels (155,400 gallons) per day.
- Dec. 3, 10, and 16, 2014: Company A followed up with Summit about the produced water discrepancy, having received no response to its previous inquiries. During this time, Company A confirmed the accuracy of its injection well meters and informed Summit that the discrepancy had risen to 4,900 barrels per day.
- Jan. 6, 2015: A Summit employee walked the line, finally identifying the rupture.
The resulting 700,000-barrel discharge of produced water contained crude oil, chloride, sodium, ammonia, aluminum, arsenic, boron, copper, nickel, selenium, zinc, barium, benzene and thallium, among other contaminants. Produced water is a waste product of oil extraction and can be toxic to plants, fish and other aquatic wildlife. It is also harmful to humans.
The designated federal trustee is the U.S. Department of the Interior’s Fish and Wildlife Service, and the designated state trustees are the North Dakota Department of Environmental Quality and the North Dakota Department of Game and Fish. A Draft Restoration Plan outlining the trustees’ restoration projects will be available at https://www.fws.gov/mountain-prairie/pressrel/archives/index.php and https://deq.nd.gov/EHSRulesRegs.aspx. The Draft Restoration Plan is subject to a 30-day public comment period. The civil settlement was lodged in the U.S. District Court for the District of North Dakota and is subject to a 30-day public comment period and final court approval. It will be available for viewing at www.justice.gov/enrd/consent-decrees.
The criminal case is being prosecuted by Senior Litigation Counsel Richard A. Udell, Senior Trial Attorney Christopher J. Costantini, Trial Attorneys Stephen J. Foster and Erica H. Pencak of the Environmental Crimes Section of the Department of Justice’s Environment and Natural Resource Division (ENRD), and Assistant U.S. Attorney Gary Delorme. The federal civil case is being handled by Senior Attorney Laura A. Thoms and Trial Attorney Devon A. Ahearn of the Environmental Enforcement Section of ENRD. The state civil case is being handled by Assistant Attorney General Margaret I. Olson of the North Dakota Office of Attorney General.
The criminal investigation was conducted by EPA’s Criminal Investigations Division. EPA’s Office of Enforcement and Compliance Assurance, EPA Region 8, the North Dakota Department of Environmental Quality, the North Dakota Industrial Commission, the U.S. Fish and Wildlife Service, the U.S. Department of Interior, and the North Dakota Department of Game and Fish provided assistance to both the criminal and civil investigations.
If you believe that you may be a victim of this criminal offense and would like to be kept apprised of this matter, then please contact the Environmental Crimes Victim Coordinator at (833)-676-1816.
Pharmacy Owner and Pharmacist Employee, a Previously Convicted Felon, Agree to Pay $250,000 to Resolve Alleged False Claims Act LiabilityRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Mark Zulewski, Kaushal Patel, Patel’s company Kass Management & Consulting, LLC, and Patel-owned pharmacies Belmont Pharmacy, LLC; Bensalem Pharmacy; Big Oak Pharmacy, Inc.; Doylestown Drugs, LLC; Family One Pharmacy; Penndel Drugs, Inc.; Penlar Pharmacy; and Medical Plaza Pharmacy have agreed to pay $250,000 to resolve potential liability under the False Claims Act.
Zulewski was a pharmacist licensed in Pennsylvania when, in 2010, he was convicted by the Commonwealth of Pennsylvania of a felony controlled substance offense. As a result of the conviction, Zulewski’s pharmacy license was suspended and in 2011 he was excluded from participation in federal health care programs by the U.S. Department of Health and Human Services.
The United States contends that Patel hired Zulewski to work in Patel’s pharmacies even though Patel knew that Zulewski had been convicted of a controlled substance offense, and that Patel allowed Zulewski to continue working in his pharmacies even after learning Zulewski was excluded from participating in federal health care programs as a result of his conviction. The United States further contends that, from August 2010 until March 2017, Patel gave Zulewski broad administrative authority as well as his pharmacist log-in credential so that Zulewski could manage Patel’s pharmacies and, on occasion, fill prescriptions as needed when pharmacists-in-charge at certain of the Kass pharmacies were unavailable.
The United States further contends that Zulewski, Patel, Kass Management, and the Patel-owned pharmacies knowingly and willfully disregarded Zulewski’s exclusion, resulting in the presentation of false or fraudulent claims for payment to the federal programs, including Medicare, Medicaid, and the Federal Employee Health Benefits Program.
The Office of the Inspector General of the U.S. Department of Health and Human Services excludes people from participating in federal health care programs upon their conviction of certain crimes, including a controlled substance offense. A federal health care exclusion is intended to keep individuals who have violated the law out of Medicare, Medicaid, and Federal Employee Health Benefits programs to protect program beneficiaries and the integrity of federal health care programs.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act statute. Under these provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The suit was filed in the Eastern District of Pennsylvania and is captioned United States of America, ex rel. LaGrossa v. Kass Management & Consulting, LLC, et al., Civil Action No. 15-6844. The whistleblower’s attorneys are Gavin Lentz and Peter Bryant of Bochetto & Lentz, PC.
“The United States will pursue those who violate a federal health care exclusion and those who knowingly allow excluded individuals to provide goods or services to federal program beneficiaries.” said Acting U.S. Attorney Williams. “An individual convicted of a controlled substances offense, as Zulewski was, must not be allowed behind the pharmacy counter during his exclusion to handle prescription drugs, including narcotics, and dispense them to federal program beneficiaries.”
“Civil enforcement is an important tool in our ongoing battle against health care fraud,” said Maureen R. Dixon, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services. “We will continue to work closely with the United States Attorney’s Office to ensure the integrity of taxpayer funds and protect beneficiaries of federal healthcare programs.”
“Exclusions protect Medicare and Medicaid patients and safeguard the integrity of these vital programs,” stated Gregory Demske, Chief Counsel to the Inspector General for the U.S. Department of Health and Human Services. “Anyone who circumvents an exclusion undermines the goal of ensuring Medicare and Medicaid patients receive safe, appropriate, and high-quality, services.”
The government’s resolution of this matter illustrates the government’s emphasis on combating health care 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).
This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General, the U.S. Office of Personnel Management’s Office of Inspector General, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. This matter was handled by Assistant U.S. Attorney Judith A.K. Amorosa and Fraud Investigator Jeffrey Braun.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Patrick Dwayne Murphy Found Guilty by Federal JuryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Patrick Dwayne Murphy, age 52, of Vernon, Oklahoma was found guilty by a federal jury of Murder – Second Degree in Indian Country, in violation of Title 18, United States Code, Sections 1111, 2, 1151 and 1153; Murder in Indian Country in Perpetration of Kidnapping, in violation of Title 18, United States Code, Sections 1111(a), 2, 1151 and 1153; and Kidnapping Resulting in Death, in violation of Title 18, United States Code, Sections 1201(a)(2), 2, 1151 and 1153. The defendant was acquitted on one count of Kidnapping Resulting in Death. The jury trial began with testimony on Tuesday, August 3, 2021 and concluded on Thursday, August 5, 2021 with the guilty verdicts. The defendant faces imprisonment for life for the crimes the jury found he committed.
During the trial, the United States presented evidence that the defendant, two days prior to the murder, stated he would kill George Jacobs. Later, on August 28, 1999, the defendant found George Jacobs and Jacobs’ friend, M.S., traveling on a road in rural McIntosh County. The defendant chased after M.S. and George Jacobs in his vehicle and ultimately forced M.S. and George Jacobs to stop. After stopping George Jacobs and M.S., the defendant, along with two others, attacked George Jacobs. After beating and kicking Jacobs, the defendant cut the victim’s throat with a knife and cut off the victim’s penis and testicles. The next day, deputies of the McIntosh County Sheriff’s Department and agents with the Oklahoma State Bureau of Investigation apprehended and arrested the defendant.
The case was originally tried in McIntosh County, Oklahoma where the defendant was convicted and received the death penalty. However, after the United States Supreme Court ruling in McGirt v. Oklahoma, the case had to be retried in federal court because the murder happened within the boundaries of the Muscogee (Creek) Nation’s Reservation and the defendant was a member of a federally recognized Indian Tribe.
“I am thankful Patrick Murphy has been held accountable for the vicious killing of George Jacobs,” said Acting United States Attorney Christopher Wilson. “Justice was interrupted for a period of time due to the jurisdictional challenges raised by the defendant, but justice was not thwarted. Through the excellent work of the Oklahoma State Bureau of Investigation, the Federal Bureau of Investigation and the United States Attorney’s Office, the evidence was presented to the jury and the guilty verdicts were returned. I know it has been a tumultuous time for the family of Mr. Jacobs, but they can now rest assured the defendant will pay for his crimes.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Murphy was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorney Jarrod Leaman and Special Assistant United States Attorney Robert Reeves represented the United States.
Parkersburg Man with Multiple Felony Convictions Sentenced to Nine Years in Prison for Possession of FirearmsRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man with three previous felony convictions was sentenced to 108 months in federal prison today for being a felon in possession of firearms.
According to the plea agreement and statements made in court, Casey Douglas Saunders, 30, possessed three semi-automatic pistols and one semi-automatic rifle at his residence on Camden Avenue in Parkersburg on May 14, 2020. The firearms were located by law enforcement officers who entered the residence to arrest Saunders on an outstanding warrant for violating his parole. Saunders had absconded from parole that he was serving for previous felony convictions in Wood County Circuit Court for burglary, delivery of a controlled substance and escape. Saunders’ escape conviction resulted from him stealing and then fleeing in a police officer’s vehicle when the officer attempted to arrest him on an outstanding warrant. Saunders is prohibited from possessing firearms due to his previous convictions.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Parkersburg Violent Crimes and Narcotics Task Force, the United States Marshals Service (USMS), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Parkersburg Police Department.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00014.
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Over $1 Billion in Misappropriated 1MDB Funds Now Repatriated to MalaysiaRead the Press Release
The Justice Department announced today that it has repatriated an additional $452 million in misappropriated 1Malaysia Development Berhad (1MDB) funds to the people of Malaysia, bringing the total returned to over $1.2 billion.
According to court documents, the funds from 1MDB, formerly Malaysia’s investment development fund, were laundered through major financial institutions worldwide, including in the United States, Switzerland, Singapore, and Luxembourg.
Beginning in 2016, a landmark effort encompassing 41 civil forfeiture actions filed in the U.S. District Court for the Central District of California and one in the U.S. District Court for the District of Columbia by the Money Laundering and Asset Recovery Section (MLARS) of the Justice Department’s Criminal Division led to the seizure of over $1.7 billion in stolen assets. This is the largest recovery to date under the Department’s Kleptocracy Asset Recovery Initiative. The funds include both funds finally forfeited and funds the Department assisted in recovering and returning. The Department continues to litigate actions against additional assets allegedly linked to this scheme.
As alleged in the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, and Low Taek Jho (aka Jho Low), through a criminal scheme involving international money laundering and embezzlement. Some of the embezzlement proceeds were also allegedly used to pay bribes.
1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment. Its funds were intended to be used for improving the well-being of the Malaysian people. Instead, funds held by 1MDB and proceeds of bonds issued for and on behalf of 1MDB were taken and spent on a wide variety of extravagant items, including luxury homes and properties in Beverly Hills, New York, and London; a 300-foot superyacht; and fine art by Monet and Van Gogh. The funds also were sent into numerous business investments, including a boutique hotel in Beverly Hills, a movie production company that made “The Wolf of Wall Street” while the embezzlement scheme was ongoing, the redevelopment of the Park Lane Hotel in Manhattan, and shares in EMI, the largest private music-rights holder. As alleged, other funds were provided to various public officials and co-conspirators.
The FBI’s International Corruption Squads in New York and Los Angeles and IRS-Criminal Investigation are leading the investigation.
MLARS Trial Attorneys Barbara Levy, Josh Sohn and Jonathon Baum are litigating the case. Assistant U.S. Attorney Jonathon Galatzan and Chief of the Asset Forefeiture Section Steven R. Welk of the Central District of California worked as MLARS partners, along with former MLARS Deputy Chief Woo S. Lee, Trial Attorney Kyle Freeny, and former Assistant U.S. Attorneys John Kucera and Michael Sew Hoy.
The Criminal Division’s Office of International Affairs is providing substantial assistance. MLARS’ Program Operations Unit has also provided significant support.
Significant assistance was also provided to the department by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force–Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg, and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated MLARS prosecutors in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to seize, forfeit and repatriate those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should email [email protected] or submit information at https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of crime. These allegations are not proven until a court awards judgment in favor of the United States, which has occurred in the cases that have led to these recoveries.
Newton Landscaping Company Owner Sentenced for Tax EvasionRead the Press Release
BOSTON – The owner of a Newton landscaping company was sentenced yesterday in connection with a scheme to underreport income on his business and personal tax returns.
Kevin Newman, 70, of Auburndale, the owner of Kevin Newman Landscape and Tree Inc., was sentenced by U.S. District Court Judge Patti B. Saris to 10 months in community confinement, two years of supervised release and 100 hours of community service. Newman was also ordered to pay a fine in the amount of $10,000 and restitution of $572,843 to the Internal Revenue Service. On April 9, 2021, Newman pleaded guilty to one count of tax evasion.
For tax years 2015 through 2019, Newman underreported income and inflated expenses on his personal tax returns, and those his company filed, resulting in a tax loss of more than $671,812.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Multiple defendants federally indicted for illegal firearms possessionRead the Press Release
SAVANNAH, GA: Three men face felony firearms charges in separate indictments by a U.S. District Court grand jury in the Southern District of Georgia, while nine others have admitted to gun charges.
The cases are being investigated in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“These prosecutions continue to send a strong message,” said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. “With our law enforcement partners, we are working to make our communities safer by removing guns from the hands of those who illegally possess them.”
In the past three years, nearly 700 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction on a previous felony. That charge carries a statutory penalty upon conviction of up to 10 years in prison, and there is no parole in the federal system.
Defendants named in federal indictments from the August 2021 term of the U.S. District Court grand jury include:
- Shawn Green, 27, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Calvin Jerrod Hendrix, 24, of Savannah, charged with Possession of a Firearm by a Convicted Felon; and,
- Jamel Albert, 30, of Savannah, charged with Possession of a Firearm by a Convicted Felon.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants recently have been adjudicated on federal charges that include illegal firearms possession, including:
- Darius Edwards, 33, of Pembroke, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. ATF agents found Edwards in possession of a firearm during an investigation of a suspicious gun purchase. Edwards was on state probation for a felony conviction at the time.
- Devonta Armon Stallings, 28, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies spotted Stallings March 28, 2020, when he ran from a group loitering in a known drug area and tossed a pistol before being captured. Stallings was on state probation at the time of his arrest.
- William Thomas Nealous III, 30, of Martinez, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Columbia County Sheriff’s deputies found Nealous with an AR-15 style rifle in his vehicle July 2, 2020, while investigating reports of a man driving slowly through a neighborhood. Nealous was on probation for a previous felony conviction at the time of the arrest.
- James Stallings III, 29, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Stallings encountered Richmond County Sheriff’s deputies July 27, 2020, when they were called to investigate shots fired outside an Augusta hotel.
- Bryant Young, 25, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. He was arrested July 16, 2019, after a pistol fell from his waistband when he ran from Savannah Police officers who were investigating a report of a man with a gun.
- Timothy Lee Lanigan, 38, of Reidsville, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Lanigan was on felony probation in June 2018 when Garden City Police officers found him in possession of a pistol during an investigation.
- King Coney, 29, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers found Coney in possession of a pistol Aug.19, 2020, when questioning him in relation to a domestic disturbance.
These cases also are being investigated under the Prosecutor to Prosecutor Program (P3), in which federal and state prosecutors collaborate to determine the most appropriate venue for adjudication of alleged crimes.
Agencies investigating these cases include the ATF; the Savannah Police Department; the Richmond County Sheriff’s Office; the Columbia County Sheriff’s Office; the Port Wentworth Police Department; and the Garden City Police Department.
The cases are being prosecuted for the United States by Southern District U.S. Attorney’s Office Assistant U.S. Attorneys, including Henry W. Syms Jr., Steven S. Lee, Joshua S. Bearden, Joseph McCool, Marcela C. Mateo, and Noah J. Abrams, and Special Assistant U.S. Attorney Darron J. Hubbard.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.