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Friday 25 June 2021
Philadelphia Man Who Raped Child for Eight Years Indicted for Concealing His Crimes to Obtain U.S. CitizenshipRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Sumo Dukulah, 47, of Philadelphia, PA, was charged by Indictment on the charge of procurement of citizenship by false statement.
According to the Indictment, approximately fourteen months after he took the oath and was sworn in as a United States citizen, the defendant was arrested in Philadelphia in April 2013 on charges of raping a minor child, beginning when the victim was eight years-old in 2004 and continuing until March 2013 when she was 16 years-old. Dukulah was ultimately convicted of those charges and is currently serving a state sentence of 31-63 years in prison. The Indictment alleges that when the defendant applied to become a naturalized U.S. citizen in 2011, he falsely claimed that he had never committed a crime, when during the same time period, he was actively committing a crime by raping a child. As a result of his fraudulent claims in his application to U.S. Citizenship and Immigration Services, Dukulah’s citizenship was granted in January 2012.
“Applying to become a citizen of the United States necessitates your willingness to adhere to the laws of our Nation,” said Acting U.S. Attorney Williams. “What this defendant did, and the crime for which he was convicted, is not just illegal but is also morally repugnant and shocking. The defendant then allegedly lied about it in order to obtain U.S. citizenship, and he will have to answer to this charge in federal court.”
If convicted, the defendant faces a maximum possible sentence of 20 years’ imprisonment, a $500,000 fine, three years’ supervised release, a $200 special assessment, and revocation of his U.S. citizenship.
The case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Convicted After Trial of Unlawfully Possessing Drugs and GunsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Jamir Foushee, a/k/a “Jamir Young,” 31, of Philadelphia, PA, was convicted after trial of possession of a firearm by a convicted felon, possession with intent to distribute “crack” cocaine, and possession of a firearm in furtherance of a drug trafficking crime. The charges against the defendant stemmed from his unlawful possession of these items while riding in his car, which was stopped by Philadelphia police in the Kensington section of the city.
The evidence presented at trial proved that, in April 2019, Foushee was riding as a passenger in his own car when it was stopped for a traffic violation by Philadelphia Police officers. After observing the defendant reach under his seat, officers discovered a handgun under that seat. The defendant then stated to officers that the other guns and drugs in the car were his. Police detained Foushee and the driver of the vehicle, searched the car, and found crack cocaine packaged for sale, as well as two additional firearms. At the time of the incident, the defendant was a convicted felon and was not allowed by law to possess a firearm.
“Less than three months ago, I vowed that our Office would continue doing everything possible to reduce gun violence in Philadelphia through our ‘All Hands On Deck’ initiative,” said Acting U.S. Attorney Williams. “And in just the last three weeks, we have delivered on that promise by securing guilty verdicts from three federal juries against defendants who illegally possessed firearms after sustaining felony convictions. Now, our efforts are multiplying; just this week the Justice Department announced a nationwide initiative to target illegal firearms and support community violence intervention programs in cities experiencing a spike in gun violence like Philadelphia.”
“Drugs and firearms are a very dangerous combination, especially while in the hands of a felon,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “We will continue our great partnership with the Philadelphia Police Department and the U.S. Attorney’s Office to make the community safer by removing criminals like this from our streets.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney David E. Troyer, and Department of Justice Trial Attorney Randall Warden.
Pacific Beach Resident Sentenced to 15 Years for Distributing Fentanyl that Caused Two Overdoses, One of Them FatalRead the Press Release
Assistant U. S. Attorney Michael A. Deshong (619) 546-9290
NEWS RELEASE SUMMARY – June 25, 2021
SAN DIEGO – Pacific Beach resident Maya Kol was sentenced in federal court today to 15 years in prison for selling fentanyl powder that caused the death of one man and sent another to the hospital over Labor Day weekend in September 2018. Two other men—including the source of Kol’s fentanyl—also fatally overdosed that weekend from the same batch of fentanyl powder, which was misrepresented as cocaine when it was sold to users, including the victims.
Kol, a Cambodian national living illegally in San Diego, previously admitted that he purchased the fentanyl powder believing it to be cocaine. However, after he sampled the powder he noticed it tasted different and then became woozy and nearly lost his balance from the effects of it. Despite his own troubling experience with the powder, Kol sold the powder to others and told them it was cocaine.
According to his plea agreement, on September 7, 2018, Kol met three individuals, identified in court records as J.E., J.H., and L.S., and delivered to them one-half gram of fentanyl powder which he represented as cocaine. Several hours later, L.S. contacted Kol asking for help. Kol arrived to L.S. and J.H.’s apartment and foundJ.E. and J.H. non-responsive. When Kol realized authorities would be coming to the scene, he went back to his home and flushed his remaining fentanyl powder down the toilet.
J.E. died from the fentanyl powder Kol sold to him. J.H. survived the ordeal after first responders administered Narcan, a drug prescribed to treat an opioid overdose in an emergency situation, and rushed him to the hospital. L.S. was admitted to the hospital the following day for lingering symptoms. A subsequent search of Kol’s residence uncovered more than $5,000 in cash, scales, materials for operating a butane honey oil laboratory, and other indications of drug sales.
J.E. was 47 years old and is survived by his wife. Hiss death was one of three overdose deaths that occurred in Pacific Beach over Labor Day weekend in 2018, including the individual who sold the fentanyl powder to Kol. Kol is not charged with the other deaths.
“Many people are dying because of dealers like Kol, who know the extreme danger of what they are doing but do it anyway,” said Acting U.S. Attorney Randy Grossman. “Dealers do not care about their customers. They care about money. As this case tragically shows, illegal drugs laced with fentanyl are deadly.” Grossman praised prosecutor Michael Deshong and law enforcement partners for their excellent work on this case.
“The DEA is increasingly seeing fentanyl in drugs purported to be other street drugs, such as cocaine in this case, and these drugs are likely to cause you to overdose,” said DEA Special Agent in Charge John W. Callery. “We don’t want to investigate your death. Your life matters. Help with addiction is available by calling the San Diego County’s Access and Crisis line at (888) 724-7240.”
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and multiple law enforcement agencies to investigate and prosecute the distribution of dangerous illegal drugs that result in overdose deaths.
Fentanyl-related deaths are rapidly climbing to unprecedented levels. The San Diego County Medical Examiner’s Office has predicted a 50 percent increase in deaths from 2020 to 2021. Fentanyl-related deaths more than doubled during the previous two years.
In July 2018, Narcotics Task Force Team 10 was created to address drug overdose deaths in San Diego County. Team 10 led the investigation into the cluster of fentanyl drug overdoses in Pacific Beach in September 2018.
DEFENDANTS Case Number 19cr1277-CAB
Maya Kol Age: 42 Pacific Beach, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 21, U.S.C., Section 841(a)(1)
Maximum Penalty: Twenty years in prison
AGENCIES
Drug Enforcement Administration
San Diego Police Department
Homeland Security Investigations
California Department of Health Care Services
Federal Bureau of Investigation
San Diego County District Attorney’s Office
Owner of haunted house equipment supplier pleads guilty to tax crimeRead the Press Release
COLUMBUS, OHIO – David Fachman, 59, of New Albany, Ohio pleaded guilty in U.S. District Court to one count of willful failure to pay over tax to the Internal Revenue Service (IRS).
According to court documents, since at least 1998 Fachman owned and operated The Scarefactory, Inc., a haunted house and special effects supplier in Columbus, Ohio. As the owner, Fachman always maintained financial and administrative control over the business. From at least January 1, 2015 and continuing until in or about December 31, 2018, Fachman withheld and collected the trust fund portion of the employment taxes from his employees’ paychecks but failed to file timely and to remit the payment to the IRS. Scarefactory was required to make deposits of the federal employment taxes to the IRS for all employees on a periodic basis. Fachman had a corporate responsibility to collect, truthfully account for, and pay over business’ payroll taxes and failed to do so.
For example, on October 31, 2018, Fachman had an obligation to file a Form 941 and pay over $26,226.02 in employee withheld federal employment taxes. Fachman failed to file timely and to pay $26,226.02 of those taxes over to the IRS.
In total, Fachman failed to pay over employee and employer federal employment taxes totaling $547,854.73.
Willful failure to pay over tax carries a maximum penalty of five years in prison and a $250,000 fine.
"Business owners have a responsibility to collect and turn over all IRS employment taxes," said Bryant Jackson, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. "Employment fraud can also impact employees who may see future benefits affected such as Social Security, Medicare or Unemployment Compensation."
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, announced the plea entered today before U.S. District Judge Edmund A. Sargus Jr.
This case was prosecuted by Assistant Deputy Criminal Chief Jessica Knight and was investigated by special agents of IRS-Criminal Investigation.
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Owner of Great Falls plumbing businesses sentenced to prison for employment tax fraudRead the Press Release
GREAT FALLS –A Great Falls businessman was sentenced on June 24 to nine months in prison and ordered to pay $148,735 restitution for employment tax fraud, Acting U.S. Attorney Leif M. Johnson said today.
According to court documents, Thomas O’Connell, 48, owned and operated three plumbing businesses: Quality Plumbing and Heating, Orbit Plumbing and Heating, and Orbit PHC. From at least 2005 through 2016, O’Connell caused trust fund taxes to be withheld from employees’ wages and then did not pay employment taxes for several quarters. Instead, he directed payments to other creditors and to his own personal expenses. The total tax loss to the IRS resulting from his conduct is more than $550,000.
O’Connell pleaded guilty on March 24 to willful failure to pay over employment taxes.
Chief U.S. District Judge Brian M. Morris presided. In addition to the sentence of imprisonment, O’Connell will serve an additional three years of supervised release.
Assistant U.S. Attorney Ryan G. Weldon and Trial Attorney Mark S. Determan of the Justice Department’s Tax Division prosecuted the case. The case was investigated by IRS-Criminal Investigation.
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New Orleans Man Pleads Guilty to Conspiracy to Distribute Drugs and Possession of FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that NATHAN BALLANSAW III, age 69, of New Orleans, pled guilty to conspiracy to distribute cocaine, cocaine base and heroin, and firearms-related charges.
Specifically, on June 24, 2021, BALLANSAW pled guilty to one count of conspiracy to distribute and possess with the intent to distribute a quantity of cocaine hydrochloride, cocaine base, and heroin in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C), and 846. BALLANSAW also pled guilty to one count of possessing a firearm in furtherance of a drug trafficking crime.
On the drug conspiracy, BALLANSAW faces a maximum sentence of 20 years imprisonment, a fine of up to $1,000,000, at least 3 years of supervised release and a mandatory $100 special assessment. On the firearm charge, BALLANSAW faces a mandatory minimum of 5 years of imprisonment, up to life imprisonment, a fine of up to $250,000, up to 5 years of supervised release, and a mandatory $100 special assessment.
According to court documents, BALLANSAW conspired to sell cocaine, cocaine base and heroin between September 12, 2015 and May 4, 2017. In furtherance of that drug-trafficking conspiracy, he possessed a Smith and Wesson Model 638-2 .38 caliber revolver on March 28, 2017.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Elizabeth Privitera and Jonathan L. Shih are in charge of the prosecution.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
New Orleans Man Pleads Guilty to Conspiracy to Distribute Drugs and Possession of FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that NATHAN BALLANSAW III, age 69, of New Orleans, pled guilty to conspiracy to distribute cocaine, cocaine base and heroin, and firearms-related charges.
Specifically, on June 24, 2021, BALLANSAW pled guilty to one count of conspiracy to distribute and possess with the intent to distribute a quantity of cocaine hydrochloride, cocaine base, and heroin in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C), and 846. BALLANSAW also pled guilty to one count of possessing a firearm in furtherance of a drug trafficking crime.
On the drug conspiracy, BALLANSAW faces a maximum sentence of 20 years imprisonment, a fine of up to $1,000,000, at least 3 years of supervised release and a mandatory $100 special assessment. On the firearm charge, BALLANSAW faces a mandatory minimum of 5 years of imprisonment, up to life imprisonment, a fine of up to $250,000, up to 5 years of supervised release, and a mandatory $100 special assessment.
According to court documents, BALLANSAW conspired to sell cocaine, cocaine base and heroin between September 12, 2015 and May 4, 2017. In furtherance of that drug-trafficking conspiracy, he possessed a Smith and Wesson Model 638-2 .38 caliber revolver on March 28, 2017.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Elizabeth Privitera and Jonathan L. Shih are in charge of the prosecution.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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New Hampshire Man Sentenced to 21 Years in Prison for Sex Trafficking of a Minor and Other CrimesRead the Press Release
A New Hampshire man was sentenced to 21 years in federal prison, followed by five years of supervised release for sex trafficking of a minor, operation of a prostitution enterprise and maintaining a drug-involved premises. The court also ordered $20,800 in restitution to the victims.
After a three-day trial in March 2019, a federal jury found Steven Tucker, 36, of Manchester, guilty of one count of sex trafficking of a minor, one count of operating an interstate prostitution enterprise and one count of maintaining a property for drug trafficking.
Evidence presented at trial established that, between October 2013 and June 2014, the defendant operated drug and prostitution businesses in the Manchester area. He sold heroin to numerous individuals, including young women and a minor. Witnesses described how the defendant used their addictions to cause them to prostitute for his profit. The defendant would often front heroin to the women and then arrange prostitution “dates” for them. The women were required to give the defendant half of the proceeds and then purchase heroin from him with the remainder.
On other occasions, the defendant withheld heroin from the women, causing them to suffer painful withdrawal symptoms and then instructed them to prostitute to earn money to purchase heroin from him. The defendant’s scheme guaranteed that he had a steady source of drug customers and money. Some of the women were required to help the defendant sell his heroin and received heroin in exchange. The defendant used violence and threats to maintain control of the women. The investigation began in 2014, when the mother of one of the women called the Manchester Police Department after the defendant beat her daughter.
“The Civil Rights Division is committed to pursuing justice on behalf of vulnerable members of our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant preyed on young women and teenage girls living in the shadows and on the margins. He cruelly exploited their drug addictions for his own profit. This sentence sends a clear message that the United States will not tolerate human trafficking and will work tirelessly to restore the rights and dignity of its victims.”
“By exploiting and trafficking multiple victims, including a minor, this defendant committed egregious and reprehensible crimes,” said Acting U.S. Attorney John Farley of the District of New Hampshire. “The substantial sentence imposed today finally holds Mr. Tucker responsible for his actions and sends a clear message to the community that this conduct will not be tolerated. We will continue to work with our law enforcement partners and members of the New Hampshire Human Trafficking Collaborative Task Force to combat the human trafficking in the Granite State.”
“Today’s sentence brings to a conclusion one of the most disturbing cases of exploitative treatment of human trafficking victims that we have seen,” said William S. Walker, acting Special Agent in Charge, Homeland Security Investigations, Boston. “Mr. Tucker’s trial of harm and pain will unfortunately live within his victims for years to come, but, hopefully, they will take solace in knowing that the sentence imposed upon Mr. Tucker today effectively prevents him from causing more physical and psychological trauma to future victims. HSI was pleased to partner in this case with the New Hampshire Human Trafficking Collaborative Task Force, the U.S. Attorney’s Office for the District of New Hampshire, the Department of Justice Civil Rights Division’s Human Trafficking Prosecution Unit, the Manchester Police Department and the Hillsborough County Attorney’s Office. Without the tireless work of these partners, Mr. Tucker’s victims would never have had even the opportunity to achieve any measure of justice while continuing the healing process.”
This prosecution is the result of the joint investigation by Homeland Security Investigations and the Manchester Police Department, the New Hampshire Human Trafficking Collaborative Task Force, the U.S. Attorney’s Office for the District of New Hampshire and the Civil Rights Division’s Human Trafficking Prosecution Unit (HTPU). The Hillsborough County Attorney’s Office provided victim assistance in the case.
The New Hampshire Human Trafficking Collaborative Task Force is a multidisciplinary effort comprised of law enforcement as well as social, medical and legal services for victims of human trafficking. The Task Force is funded by a grant from the Department of Justice, Office of Victims of Crime (OVC) and Bureau of Justice Programs (BJA).
This case was prosecuted by Assistant U.S. Attorney Seth Aframe, former Assistant U.S. Attorney Arnold Huftalen for the District of New Hampshire and Trial Attorney Vasantha Rao for the Civil Rights Division’s HTPU, with assistance from HTPU Trial Attorney Maryam Zhuravitsky.
New Hampshire Man Sentenced to 21 Years in Prison for Sex Trafficking of a Minor and Other CrimesRead the Press Release
WASHINGTON – A New Hampshire man was sentenced to 21 years in federal prison, followed by five years of supervised release for sex trafficking of a minor, operation of a prostitution enterprise, and maintaining a drug-involved premises. The court also ordered $20,800 in restitution to the victims.
After a three-day trial in March of 2019, a federal jury found Steven Tucker, 36, of Manchester, guilty of one count of sex trafficking of a minor, one count of operating an interstate prostitution enterprise and one count of maintaining a property for drug trafficking.
Evidence presented at trial established that, between October 2013 and June 2014, the defendant operated drug and prostitution businesses in the Manchester area. He sold heroin to numerous individuals, including young women and a minor. Witnesses described how the defendant used their addictions to cause them to prostitute for his profit. The defendant would often front heroin to the women and then arrange prostitution “dates” for them. The women were required to give the defendant half of the proceeds and then purchase heroin from him with the remainder.
On other occasions, the defendant withheld heroin from the women, causing them to suffer painful withdrawal symptoms and then instructed them to prostitute to earn money to purchase heroin from him. The defendant’s scheme guaranteed that he had a steady source of drug customers and money. Some of the women were required to help the defendant sell his heroin and received heroin in exchange. The defendant used violence and threats to maintain control of the women. The investigation began in 2014, when the mother of one of the women called the Manchester Police Department after the defendant beat her daughter.
“The Civil Rights Division is committed to pursuing justice on behalf of vulnerable members of our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant preyed on young women and teenage girls living in the shadows and on the margins. He cruelly exploited their drug addictions for his own profit. This sentence sends a clear message that the United States will not tolerate human trafficking and will work tirelessly to restore the rights and dignity of its victims.”
“By exploiting and trafficking multiple victims, including a minor, this defendant committed egregious and reprehensible crimes,” said Acting U.S. Attorney John Farley of the District of New Hampshire. “The substantial sentence imposed today finally holds Mr. Tucker responsible for his actions and sends a clear message to the community that this conduct will not be tolerated. We will continue to work with our law enforcement partners and members of the New Hampshire Human Trafficking Collaborative Task Force to combat the human trafficking in the Granite State.”
“Today’s sentence brings to a conclusion one of the most disturbing cases of exploitative treatment of human trafficking victims that we have seen,” said William S. Walker, acting Special Agent in Charge, Homeland Security Investigations, Boston. “Mr. Tucker’s trial of harm and pain will unfortunately live within his victims for years to come, but, hopefully, they will take solace in knowing that the sentence imposed upon Mr. Tucker today effectively prevents him from causing more physical and psychological trauma to future victims. HSI was pleased to partner in this case with the New Hampshire Human Trafficking Collaborative Task Force, the U.S. Attorney’s Office for the District of New Hampshire, the Department of Justice Civil Rights Division’s Human Trafficking Prosecution Unit, the Manchester Police Department, and the Hillsborough County Attorney’s Office. Without the tireless work of these partners, Mr. Tucker’s victims would never have had even the opportunity to achieve any measure of justice while continuing the healing process.”
This prosecution is the result of the joint investigation by Homeland Security Investigations and the Manchester Police Department, the New Hampshire Human Trafficking Collaborative Task Force, the U.S. Attorney’s Office for the District of New Hampshire and the Civil Rights Division’s Human Trafficking Prosecution Unit (HTPU). The Hillsborough County Attorney’s Office provided victim assistance in the case.
The New Hampshire Human Trafficking Collaborative Task Force is a multidisciplinary effort comprised of law enforcement as well as social, medical, and legal services for victims of human trafficking. The Task Force is funded by a grant from the Department of Justice, Office of Victims of Crime (OVC) and Bureau of Justice Programs (BJA).
This case was prosecuted by Assistant U.S. Attorney Seth Aframe, former Assistant U.S. Attorney Arnold Huftalen for the District of New Hampshire and Trial Attorney Vasantha Rao for the Civil Rights Division’s HTPU, with assistance from HTPU Trial Attorney Maryam Zhuravitsky.
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Montgomery Restaurant Co-Owner Convicted on Federal Drug and Gun ChargesRead the Press Release
Montgomery, Alabama – On Thursday, June 17, 2021, Richard Herbert Smith, 44, from Wetumpka, Alabama, was convicted by a federal jury for conspiracy to distribute cocaine, possession of cocaine with intent to distribute, possession of a firearm in connection with a drug trafficking crime, and using a cell phone to further a drug trafficking conspiracy, announced Acting U.S. Attorney Sandra J. Stewart. The jury found Mr. Smith and his wife, Mellissa Stacy Ann Smith, not guilty on a money laundering conspiracy count contained in the indictment. This was the only charged alleged against Mrs. Smith. Mellissa Smith is listed as the owner of the Island Delight Caribbean Restaurant in Montgomery.
According to court records and evidence presented at trial, in August of 2017, law enforcement was investigating suspected drug trafficking activity in Montgomery, Alabama. They eventually identified an individual named Ronnie White, 51, from Montgomery, as a potential suspect. Using various investigative techniques, they discovered that White was buying cocaine from Richard Smith. On December 17, 2017, officers conducted a traffic stop on a vehicle driven by Richard Smith and found five ounces of cocaine and a firearm. During the trial, the jury heard testimony that White regularly purchased cocaine from Richard Smith and, on the date of the traffic stop, he was expecting to buy between five and nine ounces. Other testimony stated that Richard Smith often carries a firearm during these transactions and that he would occasionally conduct the illegal drug sales while wearing his Air Force Reserve uniform.
Ronnie White previously pleaded guilty to distribution of a controlled substance and possession of a firearm by a convicted felon. White’s sentencing hearing is scheduled for July 7, 2021 and he faces a sentence of up to 20 years in prison. Following his convictions, Richard Smith faces a maximum sentence of 25 years.
This case was investigated by the Drug Enforcement Administration (DEA) and the Montgomery Police Department, with assistance from the Prattville Police Department, the Alabama Law Enforcement Agency (ALEA), and the Alabama National Guard Counterdrug program. Assistant United States Attorneys Russell T. Duraski and Mark E. Andreu prosecuted the case.
Milbank Man Indicted on Drug ChargeRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Milbank, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Delvin Eagle Chasing, a/k/a Delvin Baumgarten, age 35, was indicted on May 11, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 25, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $1,000,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that on January 12, 2021, in Eagle Butte, South Dakota, Eagle Chasing did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine.
The charge is merely an accusation and Eagle Chasing is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Eagle Chasing was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Middlesex County Man Charged with Conspiring to Defraud New Jersey Banks by Depositing $1 Million in Stolen Checks.Read the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was indicted today for his role in a scheme to defraud banks of more than $1 million using stolen and counterfeited checks and stolen identities, Acting U.S. Attorney Rachael A. Honig announced.
Benjamin Rich, 37, of Edison, New Jersey, is charged with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Rich and two other men, Felix Alamo and Frank Ambrosio, both of Brooklyn, New York, were previously charged by complaint with conspiracy to commit bank fraud and aggravated identity theft.
According to documents filed in this case and statements made in court:
Rich, Alamo, and certain conspirators agreed to defraud banks across New Jersey by using the stolen personal identification information of other individuals to open fraudulent bank accounts and deposit stolen and counterfeited checks. Rich used stolen identities, which included Social Security numbers belonging to minors, to create sham businesses. Rich, Alamo, and others opened bank accounts for the sham businesses and deposited stolen or counterfeited checks into the accounts and attempted to withdraw or transfer the funds before the banks could detect the fraud. Rich and his conspirators deposited approximately $1 million in fraudulently obtained checks into the fraudulent business bank accounts, resulting in at least $250,000 in losses to the various banks.
The charge of bank fraud carries a maximum of 30 years in prison and a statutory maximum fine $1 million, or twice the gain derived or loss loss caused by the offense, whichever is greatest.
The charge of aggravated identity theft carries a statutory minimum term of two years in prison, which must run consecutively to any term of imprisonment imposed on the bank fraud charge, and a statutory maximum fine of $250,000, or twice the gain derived or loss caused by the offense, whichever is greatest.
Alamo previously pleaded guilty and will be sentenced on July 21, 2021.
Acting U.S. Attorney Rachael A. Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney Hopkins, and special agents of the Treasury Inspector General for Tax Administration under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Fraud Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations against Rich and Ambrosio are merely accusations, and they are presumed innocent unless and until proven guilty.
Metropolitan Police Department Officer and Maryland Woman Indicted for Bribery Scheme to Provide Personal Identifying Information of Traffic Crash Victims in Exchange for Cash PaymentsRead the Press Release
WASHINGTON – A Metropolitan Police Department (MPD) Officer and a Maryland woman were indicted on charges in connection with a bribery scheme to unlawfully provide information contained in non-public police paperwork identifying individuals involved in traffic accidents in exchange for cash payments, announced Acting U.S. Attorney Channing D. Phillips.
Vincent Forrest, 33, of Washington, D.C., and Raquel Depaula, 43, of Beltsville, Maryland, were indicted by a federal grand jury on one count of conspiracy in violation of Title 18, United States Code, Section 371, and one count each of bribery in violation of Title 18, United States Code, Section 201. In addition, Forrest was indicted on one count of making a false statement in violation of Title 18, United States Code, Section 1001.
As alleged in the indictment, beginning at least as early as April 2019, Forrest, a Patrol Officer with MPD, and Depaula, a “runner” who worked, in return for referral fees, to connect people in need of legal representation or medical services with providers of those services, engaged in a scheme to trade confidential traffic accident victim information from MPD Traffic Accident Reports, or “PD Form 10s,” for bribes. Depaula offered Forrest, a public official, bribes to get confidential accident victim information. MPD General Order 401.03 limited the distribution of these reports to individuals involved in traffic accidents and their representatives. Forrest, in violation of his official duties, used his official access to MPD’s law enforcement sensitive database to review and record victim contact information from Traffic Accident Reports which contained the names and contact information of individuals involved in traffic accidents. Forrest sent the Depaula victim contact information using WhatsApp Messenger, an encrypted communications application. Forrest then met up with Depaula at various locations in the District of Columbia and Maryland, including Depaula’s Maryland residence to receive bribes from her. Depaula then provided victim contact information from the Traffic Crash Reports to local attorneys in exchange for a referral fee, causing accident victims to be contacted by attorneys within days of their traffic accidents in violation of 22 D.C. Code Section 3225.14. Forrest and Depaula concealed their bribery scheme by, among other methods, communicating by encrypted application, meeting in person, and exchanging bribes in cash. Over the course of the four-month scheme, Forrest viewed over 4,000 Traffic Crash Reports. In addition, when interviewed by federal law enforcement, Forrest provided false, fictitious, and fraudulent statements and representations regarding his conduct and the scheme, specifically, denying that he ever provided Traffic Crash Reports to unauthorized third parties.
In connection with this scheme, Forrest was arrested and charged in a criminal complaint on June 4, 2021 and is expected to be arraigned on the indictment on June 25, 2021 at 3 PM before Magistrate Judge Zia M. Faruqui in the U.S. District Court for the District of Columbia.
The charges in the indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted, Forrest would face a maximum sentence of 30 years’ imprisonment and Depaula would face a maximum of 20 years’ imprisonment. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes. The sentencing of the defendants, if they are later convicted, will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.
This investigation is being conducted by special agents from the FBI’s Washington Field Office and MPD’s Internal Affairs Division. The case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein from the Public Corruption and Civil Rights Section of the United States Attorney’s Office for the District of Columbia.
Man Charged in Federal Court with Carjacking and Murdering Chicago Rideshare DriverRead the Press Release
CHICAGO — A man has been charged in federal court with carjacking and murdering a rideshare driver in Chicago earlier this year.
EDMOND HARRIS, 18, of Chicago, carjacked a Lexus GS sedan from Javier Ramos on March 23, 2021, according to an indictment returned Thursday in U.S. District Court in Chicago. During the carjacking, Harris brandished a firearm and fatally shot Ramos, the indictment states.
The indictment charges Harris with one count of carjacking, one count of discharging a firearm during a crime of violence, and one count of causing death through the use of a firearm during a crime of violence. The charges in the indictment carry a mandatory minimum sentence of ten years in federal prison and a maximum sentence of death.
Harris was taken into federal custody this morning. An initial court appearance is scheduled for today at 3:15 p.m. before U.S. Magistrate Judge Jeffrey I. Cummings.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Michelle Kramer.
“Senseless acts of violence like the ones charged in this indictment have no place in our society,” said U.S. Attorney Lausch. “The charges announced today are the direct result of a strong partnership between federal, state, and local law enforcement in Chicago. We will not hesitate to prosecute violent carjackers to the fullest extent of federal law.”
“Carjacking is a threat to the safety of the community,” said ATF SAC deTineo. “I pledge the continued full support of the men and women of the Chicago Field Division to work collaboratively with our law enforcement partners to investigate these crimes.”
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Level 3 Communications, LLC Agrees to Pay over $12.7 Million to Settle Civil False Claims Act AllegationsRead the Press Release
ALEXANDRIA, Va. – Level 3 Communications, LLC (Level 3), a multinational telecommunications and Internet service provider company with offices throughout the world, including in McLean, agreed to pay $12,772,843 to settle allegations involving: kickbacks paid to former Level 3 officials in return for favorable treatment to subcontractors in connection with government contracts; improperly obtaining competitive bid information; and misstating compliance with woman-owned small business subcontracting requirements.
“Kickbacks paid in connection with government contracts defraud the American taxpayer and undermine the federal procurement process,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA is firmly committed to utilizing all available civil remedies to combat such alleged conduct and protect the public fisc.”
Level 3 entered a contract issued by the General Services Administration under which the U.S. Department of Defense Office of Inspector General ordered supplies and services, known as the “WITS 3” contract. Level 3 subcontracted work under the WITS 3 contract to MSO Tech, Inc. (MSO Tech) and P.V.S. Inc. (PVS), two Florida-based companies owned by William S. Wilson.
The United States alleged that in 2012, Wilson paid kickbacks to Level 3 senior managers Ronald Capallia and another individual to induce them to steer Level 3 subcontract work to MSO Tech and PVS. In return for these alleged kickbacks, MSO Tech and PVS were allegedly given favorable treatment and subcontracts. The United States also alleged that Capallia knowingly obtained protected competitor bid information in connection with the WITS 3 contract to gain an advantage in bidding on task orders on the contract.
Level 3 also entered into a contract with the U.S. Department of Homeland Security (DHS), known as the “Terrawatt” contract. The United States alleged that in 2011, Level 3 informed DHS that PVS qualified as a woman-owned small business in order to satisfy contractual obligations to award a certain portion of work under the Terrawatt contract to a woman-owned small business, despite Capallia and another individual knowing that PVS was owned and controlled by Wilson, and that the work awarded to PVS was in fact performed by MSO Tech.
The settlement resolves federal civil claims under the False Claims Act, the Anti-Kickback Act, and the Procurement Integrity Act. Level 3 cooperated during the investigation.
The settlement arises in connection with a lawsuit filed by a former Level 3 employee under the whistleblower provision of the False Claims Act. A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the U.S. Attorney’s Office. The United States then has an opportunity to investigate the claims. The False Claims Act provides whistleblowers with a share of the government’s recovery.
The resolution obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Defense Criminal Investigative Service, and the Department of Homeland Security’s Office of Inspector General.
This matter was investigated by Assistant U.S. Attorneys Krista Anderson and Gerard Mene.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Related court documents and information from the civil lawsuit can be accessed on PACER by searching for Case No. 1:13-cv-1453. Court documents regarding related criminal proceedings can be found at Case Nos. 1:17-cr-223 and 1:17-cr-222.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Las Vegas Business Owner Pleads Guilty in Fraudulent Income Tax Return SchemeRead the Press Release
A Las Vegas, Nevada, businesswoman pleaded guilty today to filing a false tax return.
According to court documents and admissions made in court, Graciela Rueda Alvarez, aka “Graciela Masso,” owned and operated two Las Vegas businesses: All Hose Inc. (AHI) and All Hose South LLC (AHS), which are distributors of industrial, hydraulic, and pneumatic hoses, connectors and fluid transfer systems. From 2013 to 2016, Rueda Alvarez transferred more than $950,000 of the profits from AHI and AHS to bank accounts she controlled, but did not report these funds as income on her personal federal tax returns. In total, Rueda Alvarez caused a tax loss to the IRS of $210,807.
Rueda Alvarez faces the statutory maximum penalty of three years in prison, one year of supervised release, and a fine of $250,000. In addition to the prison term, Rueda Alvarez has agreed to pay $458,728.52 in restitution, including past-due taxes, interest, and penalties. U.S. District Court Judge Jennifer A. Dorsey scheduled sentencing for Sept. 27.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Acting U.S. Attorney Christopher Chiou for the District of Nevada, and Special Agent in Charge Albert Childress of the IRS Criminal Investigation made the announcement.
The IRS Criminal Investigation is investigating this case.
Assistant U.S. Attorney Jessica Oliva of the District of Nevada and Trial Attorney Michael Landman of the Tax Division are prosecuting the case.
Las Vegas Business Owner Pleads Guilty in Fraudulent Income Tax Return SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas, Nevada, businesswoman pleaded guilty today to filing a false tax return.
According to court documents and admissions made in court, Graciela Rueda Alvarez, aka “Graciela Masso,” owned and operated two Las Vegas businesses: All Hose Inc. (AHI) and All Hose South LLC (AHS), which are distributors of industrial, hydraulic, and pneumatic hoses, connectors and fluid transfer systems. From 2013 to 2016, Rueda Alvarez transferred more than $950,000 of the profits from AHI and AHS to bank accounts she controlled, but did not report these funds as income on her personal federal tax returns. In total, Rueda Alvarez caused a tax loss to the IRS of $210,807.
Rueda Alvarez faces the statutory maximum penalty of three years in prison, one year of supervised release, and a fine of $250,000. In addition to the prison term, Rueda Alvarez has agreed to pay $458,728.52 in restitution, including past-due taxes, interest, and penalties. U.S. District Court Judge Jennifer A. Dorsey scheduled sentencing for Sept. 27.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Acting U.S. Attorney Christopher Chiou for the District of Nevada, and Special Agent in Charge Albert Childress of the IRS Criminal Investigation made the announcement.
The IRS Criminal Investigation is investigating this case.
Assistant U.S. Attorney Jessica Oliva of the District of Nevada and Trial Attorney Michael Landman of the Tax Division are prosecuting the case.
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Laplace Man Pleads Guilty to Being Felon in Possession of AmmunitionRead the Press Release
NEW ORLEANS, LOUISIANA – DWAYNE BROWN, age 34, a resident of Laplace, Louisiana, pled guilty to being a felon in possession of ammunition, announced U.S. Attorney Duane A. Evans. Sentencing is currently scheduled for October 14, 2021 before the Honorable Barry W. Ashe.
According to court documents, on or about October 1, 2019, BROWN attempted to go through security at Louis Armstrong Airport. At that time, BROWN was in possession of a “ghost” gun – a firearm that has no serial number or manufacturer’s marks of identification affixed to it. The firearm was assembled at an unknown time and location from a kit distributed by Polymer80, Inc. Moreover, the firearm was affixed with an auto-sear which permitted it to fire automatically. Along with the firearm, BROWN was in possession of $35,000 in cash and two 30-round magazines containing approximately 28 rounds each. Prior to this, BROWN had been convicted in the 40th Judicial Court, State of Louisiana, for aggravated flight from an officer, simple criminal damage to property, and unauthorized entry of an inhabited dwelling.
At sentencing, BROWN faces maximum penalties of 10 years imprisonment, a $250,000 fine, 3 years of supervised release, and a mandatory $100 special assessment.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, and Firearms in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorneys G. Dall Kammer and Rachal Cassagne.
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Justice Department files lawsuit against the State of Georgia to stop racially discriminatory provisions of new voting lawRead the Press Release
ATLANTA - The U.S. Justice Department announced today that it filed a lawsuit against the State of Georgia, the Georgia Secretary of State, and the Georgia State Election Board over recent voting procedures adopted by Georgia Senate Bill 202, which was signed into law in March 2021. The United States' complaint challenges provisions of Senate Bill 202 under Section 2 of the Voting Rights Act.
"The right of all eligible citizens to vote is the central pillar of our democracy, the right from which all other rights ultimately flow," said Attorney General Merrick B. Garland. "This lawsuit is the first step of many we are taking to ensure that all eligible voters can cast a vote; that all lawful votes are counted; and that every voter has access to accurate information."
"The right to vote is one of the most central rights in our democracy and protecting the right to vote for all Americans is at the core of the Civil Rights Division’s mission," said Assistant Attorney General Kristen Clarke for Justice Department's Civil Rights Division. "The Department of Justice will use all the tools it has available to ensure that each eligible citizen can register, cast a ballot, and have that ballot counted free from racial discrimination. Laws adopted with a racially motivated purpose, like Georgia Senate Bill 202, simply have no place in democracy today."
"One of the fundamental rights of our democracy is the right to vote. That right should be protected for every citizen of our district, regardless of race," said Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. "The United States Attorney’s Office for the Northern District of Georgia is committed to protecting the rights of all Americans to vote."
The United States' complaint contends that several provisions of Senate Bill 202 were adopted with the purpose of denying or abridging the right to vote on account of race. The Justice Department's lawsuit alleges that the cumulative and discriminatory effect of these laws—particularly on Black voters—was known to lawmakers and that lawmakers adopted the law despite this.
The United States' complaint challenges several provisions of Senate Bill 202, including a provision banning government entities from distributing unsolicited absentee ballot applications; the imposition of costly and onerous fines on civic organizations, churches and advocacy groups that distribute follow-up absentee ballot applications; the shortening of the deadline to request absentee ballots to 11 days before Election Day; the requirement that voters who do not have identification issued by the Georgia Department of Driver Services photocopy another form of identification in order to request an absentee ballot without allowing for use of the last four digits of a social security number for such applications; significant limitations on counties’ use of absentee ballot drop boxes; the prohibition on efforts by churches and civic groups to provide food or water to persons waiting in long lines to vote; and the prohibition on counting out-of-precinct provisional ballots cast before 5 p.m. on Election Day. The complaint asks the court to prohibit Georgia from enforcing these requirements.
Deputy Attorney General Lisa O. Monaco also issued a memo to United States Attorneys and FBI Field Offices today on investigating and prosecuting threats to election officials. To assist with this important effort the department will also establish an intra-Departmental task force to address the rising threats.
Today’s announcements follow Attorney General Garland’s recent commitment to expand the Justice Department’s efforts to safeguard voting rights.
More information about the Voting Rights Act and other federal voting laws is available on the Department of Justice’s website at www.justice.gov/crt/about/vot. Complaints about discriminatory voting practices may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Justice Department Files Lawsuit Against the State of Georgia to Stop Racially Discriminatory Provisions of New Voting LawRead the Press Release
The U.S. Justice Department announced today that it filed a lawsuit against the State of Georgia, the Georgia Secretary of State, and the Georgia State Election Board over recent voting procedures adopted by Georgia Senate Bill 202, which was signed into law in March 2021. The United States’ complaint challenges provisions of Senate Bill 202 under Section 2 of the Voting Rights Act.
“The right of all eligible citizens to vote is the central pillar of our democracy, the right from which all other rights ultimately flow,” said Attorney General Merrick B. Garland “This lawsuit is the first step of many we are taking to ensure that all eligible voters can cast a vote; that all lawful votes are counted; and that every voter has access to accurate information.”
“The right to vote is one of the most central rights in our democracy and protecting the right to vote for all Americans is at the core of the Civil Rights Division’s mission,” said Assistant Attorney General Kristen Clarke for Justice Department’s Civil Rights Division. “The Department of Justice will use all the tools it has available to ensure that each eligible citizen can register, cast a ballot, and have that ballot counted free from racial discrimination. Laws adopted with a racially motivated purpose, like Georgia Senate Bill 202, simply have no place in democracy today.”
“One of the fundamental rights of our democracy is the right to vote. That right should be protected for every citizen of our district, regardless of race,” said Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. “The United States Attorney’s Office for the Northern District of Georgia is committed to protecting the rights of all Americans to vote.”
The United States’ complaint contends that several provisions of Senate Bill 202 were adopted with the purpose of denying or abridging the right to vote on account of race. The Justice Department’s lawsuit alleges that the cumulative and discriminatory effect of these laws—particularly on Black voters—was known to lawmakers and that lawmakers adopted the law despite this.
The United States’ complaint challenges several provisions of Senate Bill 202, including a provision banning government entities from distributing unsolicited absentee ballot applications; the imposition of costly and onerous fines on civic organizations, churches and advocacy groups that distribute follow-up absentee ballot applications; the shortening of the deadline to request absentee ballots to 11 days before Election Day; the requirement that voters who do not have identification issued by the Georgia Department of Driver Services photocopy another form of identification in order to request an absentee ballot without allowing for use of the last four digits of a social security number for such applications; significant limitations on counties’ use of absentee ballot drop boxes; the prohibition on efforts by churches and civic groups to provide food or water to persons waiting in long lines to vote; and the prohibition on counting out-of-precinct provisional ballots cast before 5 p.m. on Election Day. The complaint asks the court to prohibit Georgia from enforcing these requirements.
Deputy Attorney General Lisa O. Monaco also issued a memo to United States Attorneys and FBI Field Offices today on investigating and prosecuting threats to election officials. To assist with this important effort the department will also establish an intra-Departmental task force to address the rising threats.
Today’s announcements follow Attorney General Garland’s recent commitment to expand the Justice Department’s efforts to safeguard voting rights.
More information about the Voting Rights Act and other federal voting laws is available on the Department of Justice’s website at www.justice.gov/crt/about/vot. Complaints about discriminatory voting practices may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
For a list of the department’s actions to protect voting rights, click here.
Jury Convicts Springfield Man of Conspiracy to Distribute Synthetic Cannabinoids and Related ChargesRead the Press Release
SPRINGFIELD, Ill. – A federal jury returned a guilty verdict on June 21, 2021, against Abdul G. Alsamah, 51, formerly of Springfield, Ill., for conspiracy to distribute a controlled substance, distribution of a controlled substance, and possession of a controlled substance with the intent to distribute. Prior to his conviction, Alsamah was residing in Oakland, Calif. Sentencing for Alsamah has been scheduled for October 22, 2021, at the U.S. Courthouse in Springfield.
During four days of trial, beginning on June 16, the government presented evidence that between November 2014 and March 2016, Alsamah conspired with his co-defendant, Letha Dean, to distribute synthetic cannabinoids, sometimes referred to as K2 or spice – which are Schedule I controlled substances – to individuals in the Sangamon County, Ill. Alsamah and Dean distributed synthetic cannabinoids from the Crossing Two, a liquor store run by Alsamah, and a connected business, Mystic Enchantments, both in Springfield.
Alsamah was taken into custody after the verdict and remains in the custody of the United States Marshals Service. At sentencing, Alsamah faces a statutory penalty of up to twenty years in prison.
Eight other defendants have been convicted and sentenced in related cases: Mohammed Ali Saleh, Hamoud Hazam, Noman Hizam, Abdulrhamm Saleh, Abdu Saleh Mohamed, Walid Alanasawi, Jamal Nasir, and Ahmed Alkohshi. Two other defendants, Mohanad Al-Matarneh and Letha Dean, have been convicted but have not yet been sentenced.
These cases are the result of an Organized Crime Drug Enforcement Task Force (OCDETF) task force investigation conducted by the Drug Enforcement Administration’s Springfield Division, with the assistance of the Federal Bureau of Investigation’s Springfield Division; the Springfield Police Department; the Sangamon County Sheriff’s Department; the Illinois Department of Revenue; the Illinois Secretary of State; and the Illinois State Police. Assistant U.S. Attorneys Timothy A. Bass and Tanner K. Jacobs represented the federal government at trial.
OCDETF is a Department of Justice program that brings together the combined expertise and unique abilities of federal, state, and local enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle, and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
Jury Convicts Felon for Illegal Possession of Multiple Firearms and Witness TamperingRead the Press Release
NORFOLK, Va. – A federal jury convicted a Norfolk man yesterday on one count of illegally possessing firearms as a felon, four counts of witness tampering and obstruction of justice, and one count of unlawful possession of a controlled substance.
According to court records and evidence presented at trial, in October and November 2017, Adonis Marquis Perry, 31—a five-time convicted felon who had sustained two state convictions and one federal conviction for being a felon in possession of firearms and ammunition—took pictures of himself holding a Glock, Model 17, 9mm semi-automatic handgun, loaded with an extended magazine, and a Taurus, Model 66, .357 magnum revolver.
According to the evidence presented at trial, on December 18, 2017, Perry was arrested at a traffic stop in Norfolk after attempting to elude law enforcement by running through stop signs and making rapid turns, finally stopping in a residential parking lot. When law enforcement caught up to the car, they ordered the two occupants out of the vehicle. After receiving permission to search the vehicle, officers found the Taurus revolver and the Glock handgun—the latter loaded with the same magazine that was in the defendant’s pictures.
According to the evidence presented at trial, Perry spent the next seven months after his arrest making recorded calls from the jail to engage in witness tampering and obstruction of justice, specifically involving a series of efforts to interfere with the potential testimony of the second person who was in the car during Perry’s arrest encounter.
Perry faces a maximum penalty of 92 years in prison when sentenced on November 17. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after Senior U.S. District Judge Rebecca Beach Smith accepted the verdict.
Assistant U.S. Attorneys William B. Jackson and Joseph E. DePadilla are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-113.
Joseph Meli Sentenced to 37 Months in Prison for Participating in Broadway Ticket Resale Investment Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that JOSEPH MELI was sentenced today to 37 months in prison in connection with MELI’s participation in a fraudulent Broadway ticket investment scheme wherein MELI purported to use investor funds to purchase tickets to Broadway shows for resale on the secondary market, but instead misappropriated those funds for his personal use. MELI previously pled guilty before U.S. District Judge Ronnie Abrams, who imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Joseph Meli, a recidivist fraudster, spun the web of lies that buttressed this scheme while on pretrial release in a prior theatre ticket investment fraud case in this District. With today’s sentencing, the curtain has come down on Joseph Meli’s act.”
According to the Complaint, the Indictment, and other court documents, as well as statements made in public court proceedings:
Beginning in at least March 2017 through in or about June 2018, MELI falsely represented to partners in a business entity, Indio Entertainment, LLC (“Indio”), that MELI owned a large number of tickets to live events, or intended to purchase a large number of tickets to live events. MELI further falsely represented that he would sell those tickets to Indio in exchange for investor money that Indio had solicited for the purpose of reselling the tickets on the secondary market for profit. MELI, in turn, caused Indio principals to represent to investors that investor funds would be used to purchase bulk tickets to live shows without disclosing MELI’s involvement, and promised investors a share of these profits. In fact, MELI failed to invest the investor monies as promised, and failed to supply Indio with bulk tickets, but rather diverted investor monies to his own personal use, including sending $455,000 to a close relative of MELI’s in part to pay off credit card debt incurred by MELI, $500,000 to an individual completely unrelated to the entertainment or ticket industry, and $220,000 to a residential management company that managed an apartment MELI was leasing.
This was not MELI’s first involvement in such a scheme. MELI is currently serving a 78-month sentence imposed by U.S. District Judge Kimba M. Wood in September 2018, resulting from MELI’s involvement in a similar Broadway ticket investment scheme. Indeed, MELI participated in the present scheme while on pretrial release in the case in front of Judge Wood.
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MELI, 46, of New York, New York, will serve 25 of the 37 months of the prison sentence concurrently with the prison sentence he is already serving. In addition to his prison sentence, MELI was sentenced to three years of supervised release, two years of which will run concurrently with the term of supervised release previously imposed by Judge Wood. MELI was also ordered to pay a forfeiture penalty of $2,082,425 and restitution in the amount of $1,909,146.
Ms. Strauss praised the work of the Special Agents from the U.S. Attorney’s Office for the Southern District of New York and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Sarah Mortazavi and Micah Fergenson are in charge of the prosecution.
Jefferson County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Warren Long, of Harper’s Ferry, West Virginia, has admitted to a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Long, 33, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Long, a person prohibited from having a firearm because of a prior conviction, admitted to having a .410 gauge shotgun in May 2020 in Jefferson County.
Long faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Jefferson County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 24 was:
Jimmy Lee King, 29, of Great Falls, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and distribution of methamphetamine. If convicted of the most serious crime, King faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. King was detained pending further proceedings. The Drug Enforcement Administration and Great Falls Police Department investigated the case. PACER case reference. 21-39.
Appearing on June 17 was:
Jeffrey Lee Foss, 37, of Great Falls, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Foss faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Foss was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Great Falls Police Department investigated the case. PACER case reference. 21-38.
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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Hinton Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
BECKLEY, W.Va. – A Hinton man pleaded guilty today to a federal child pornography charge – his second federal child pornography conviction in seven years.
According to court documents, David Alan Hunt, 39, admitted that on January 22, 2021, he possessed child pornography of prepubescent minors on an iPad at his residence in Hinton. Hunt also admitted that at the time he possessed the child pornography, he was on supervised release for a 2014 federal child pornography conviction. Hunt’s supervising United States Probation Officer recovered the iPad containing the child pornography during a home visit.
Hunt faces a mandatory minimum sentence of 10 years in prison and up to 20 years in prison when he is sentenced on October 18, 2021. He also faces consecutive prison time as a result of violating his supervised release.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the United States Probation Office.
United States District Court Judge Frank W. Volk presided over the hearing. Assistant United States Attorneys Kristin F. Scott and Jennifer Rada Herrald are handling 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. 5:21-cr-00075.
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Hattiesburg Woman Pleads Guilty to Wire Fraud Related to Employee TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that CHRISTY BARTHOLOMEW, age 39, of Hattiesburg, Mississippi, pleaded guilty on June 23, 2021 to a two-count Bill of Information for wire fraud before United States District Court Judge Lance M. Africk today.
According to court records, BARTHOLOMEW was employed as a financial controller for a business located in Slidell, Louisiana, and later worked as an office manager for a company located in Kenner, Louisiana. From 2016 to October of 2019, she embezzled approximately $357,000 from her Slidell employer by several schemes, including unauthorized use of a company credit card. She later did the same thing with her Kenner employer, embezzling approximately $300,000 from November 2019 to February 2020.
Sentencing is scheduled for October 27, 2021. At that time, BARTHOLOMEW faces up to twenty years in prison, up to $250,000 in fines, and up to three years of supervised release. There is also a $100 mandatory special assessment due after conviction.
U.S. Attorney Evans praised the work of the Department of Homeland Security – Homeland Security Investigations, along with assistance from the St. Tammany Parish Sheriff’s Office, in investigating this matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
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Harrisburg Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Reginald Hopkins, age 44, of Harrisburg, Pennsylvania, was indicted by a federal grand jury on June 23, 2021, for drug trafficking and firearms offenses.
According to Acting U.S. Attorney Bruce D. Brandler, the indictment alleges that on January 15, 2021, in Dauphin County, Pennsylvania, Hopkins sold a detectable amount of cocaine base, commonly known as “crack.” Additionally, the indictment alleges that on February 11, 2021, Hopkins was in possession of three firearms (an Astra Constable 9mm handgun, a Hi-Point CF380 .380 handgun and a S&W M&P 9 Shield 9mm handgun) after previously having been convicted of a felony offense. Hopkins was also in possession of 9 mm and .380 caliber ammunition.
The matter was investigated by the Harrisburg Police Department’s Street Crimes Unit and the Community Policing Unit, along with the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Paul J. Miovas, Jr. is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the felon in possession of a firearm and ammunition offense is 10 years of imprisonment, a term of 3 years of supervised release following imprisonment, and a $250,000 fine. The maximum penalty for the distribution of a controlled substance offense is 30 years of imprisonment, a term of at least 6 years of supervised release following imprisonment, and a $2,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Green Bay Man Sentenced to 13 years in Federal Prison for Sex TraffickingRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin, announced that on June 25, 2021, Darryl K. Green (age: 53) of Green Bay, Wisconsin was sentenced to 13 years in federal prison by Senior District Judge William C. Griesbach.
Between January 2020 and August 2020, Green recruited, enticed, and forced dozens of women toengage in acts of prostitution under the threat of physical force. Often compelling the victims to give asmuch as 100% of the proceeds to him. Green also manipulated his victims’ controlled substance addictions to keep them in the prostitution trade. He pled guilty earlier this year to a charge of “Conspiracy to Commit Sex Trafficking” contrary to Title 18, United States Code, Sections 1594(c), 1591(a)(1), and 1591(b)(1).
In handing down the sentence, Judge Griesbach noted the extremely serious nature of the charge, calling it an “astounding offense in many ways.” He further cited a strong need to protect the public and to deter Green and others from engaging in sex trafficking in the future. Following his release from prison, Green will spend 10 years on supervised release.
This case was investigated by the Green Bay Police Department and the Wisconsin Department of Justice, Division of Criminal Investigation, with the assistance of the Green Bay office of the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Erica J. Lounsberry and Daniel R. Humble.
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Gorham Man Sentenced to 17 Years for Receiving and Possessing Child PornographyRead the Press Release
PORTLAND, Maine: A Gorham man was sentenced today in U.S. District Court in Portland for receiving and possessing child pornography, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Nancy Torresen sentenced Carl Loomis, 65, to 17 years in prison followed by 10 years of supervised release. Loomis pleaded guilty on November 30, 2020.
According to court records, in May 2018, investigators with the Gorham Police Department executed a search warrant at Loomis’s residence in Gorham. He admitted to investigators that he had child pornography images on his phone and that he had sent images to others using chat sites. Investigators seized several electronic devices from the residence. On one of them, they found chats using a messaging application in which Loomis received child pornography images and videos and discussed his sexual interest in children.
The Gorham Police Department and Homeland Security Investigations investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Gang Member Sentenced for Being a Felon in Possession of FirearmRead the Press Release
Acting United States Attorney Jan Sharp announced that Travell T. Richard, 32, of Omaha, Nebraska, was sentenced today in federal court in Omaha for being a felon in possession of a firearm. United States District Judge Robert F. Rossiter, Jr. sentenced Richard to 51 months’ imprisonment. Richard will serve a 3-year term of supervised release following his release from the Bureau of Prisons. There is no parole in the federal system.
On July 8, 2020, police were called to a possible disturbance involving Richard at a residence located on the 5900 block of North 47th Street, in Omaha.
Upon arrival at the residence, officers saw Richard, who attempted to flee into a bathroom located in the house. Officers followed Richard into the bathroom, at which time an officer could see Richard attempting to remove something from his shorts pocket. While officers attempted to detain Richard, he tossed a Taurus PT111 Millennium G2 pistol from his shorts across the bathroom floor. The handgun was recovered by an officer.
At the time Richard possessed this firearm, he knew he had prior felony convictions and was prohibited from possessing firearms. His previous convictions were in 2007, Assault in the First Degree and Use of a Deadly Weapon to Commit a Felony, and in 2018, Possession of a Controlled Substance, both in the District Court of Douglas County, Nebraska. Richard also had a previous federal felony conviction for being a Prohibited Person in Possession of a Firearm (8:10CR10).
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from Project Guardian partner, the Omaha Police Department.
Former Boston Police Sergeant Pleads Guilty in Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police Sergeant pleaded guilty today in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s evidence warehouse.
William Baxter, 62, of Hyde Park, pleaded guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. U.S. District Court Judge Patti B. Saris scheduled sentencing for Oct. 21, 2021. Baxter was charged on May 24, 2021.
From March 2015 through June 2016, Baxter submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Baxter claimed to have worked from 4 – 8 p.m., but he routinely left at 6 p.m., and sometimes earlier. Additionally, Baxter knowingly endorsed the fraudulent overtime slips of his subordinates who, allegedly, also left early from this shift. For the “kiosk” shift, Baxter and, allegedly, others routinely submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and, allegedly, other members of the unit, only worked three-to-four hours of those shifts.
Between March 2015 and June 2016, Baxter personally collected approximately $9,223 for overtime hours he did not work.
To date, 14 Boston Police officers have been charged in connection with committing overtime fraud at the Boston Police Department’s evidence warehouse. Baxter is the seventh officer to plead guilty. An eighth former officer, Craig Smalls, is scheduled to plead guilty on July 1, 2021.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Former Police Officer for Attempting to Entice A 14-Year-Old Child to Engage in Sexual Activity and Soliciting the Production of Child Sex Abuse ImagesRead the Press Release
Jacksonville, Florida – A federal jury has found Andrew Christian Hammock (48, Boca Raton) guilty of attempting to entice a 14-year-old girl to engage in sexual activity and produce visual depictions of herself engaging in sexually explicit conduct. Hammock faces a minimum mandatory penalty of 10 years, and up to life, in federal prison and a potential life term of supervised release. His sentencing hearing is set for September 20, 2021.
Hammock was arrested on March 17, 2020, at his place of employment, the Margate (Florida) Police Department, where he worked as a sworn police officer.
According to court documents, as well as evidence and testimony admitted during the trial, on February 14, 2020, an undercover FBI agent who was posing online as a 14-year-old child made contact with Hammock, who was using the screen name “playful_guy,” and who later used the name “Florida Guy.” The undercover agent responded to Hammock’s online advertisement that read, “Feel like peeking and being peeked at by a younger girl.” Hammock and the undercover agent exchanged private messages for more than a month using a social media app. On February 16, 2020, Hammock told the “child” that he (Hammock) was employed as a police officer and sent the “child” a photo depicting the waist area of an individual wearing tactical clothing seated in what appeared to be a police vehicle. Between February 14 and March 15, 2020, Hammock sent more than 4,000 messages to the “child,” providing graphic descriptions of the sexually explicit images that he wanted the “child” to take and share with him. Hammock also described in detail the types of sexual activity that he wanted to engage in with the “child.”
This case was investigated by the Federal Bureau of Investigation in Jacksonville, with assistance from the Margate Police Department. It is being prosecuted by Assistant United States Attorneys Kelly S. Karase and Ashley Washington.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Eight Members of Stephen Crane Village Drug Trafficking Conspiracy Charged in 37-Count Superseding IndictmentRead the Press Release
NEWARK, N.J. – Eight of the 12 people arrested for their roles as members and associates of a drug trafficking organization in the Stephen Crane Village Housing Complex in Newark were indicted today, including one defendant who was indicted for the murder of a conspirator, Acting U.S. Attorney Rachael A. Honig announced.
A federal grand jury returned a 37-count superseding indictment charging Gary Shahid, 61; Jose Lora, 23; Charles Mells, 37; Raquan Rawls, 22; James Wicker, 28; Dayquan Jordan, 26; Michael Mayse, 34, and Dayana Valderrama, 25, as follows:
Count
Charge
Defendant
1
Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances
Shahid, Lora, Mells, Rawls, Wicker, Jordan, and Mayse
2
Distribution and Possession with Intent to Distribute Heroin
Jordan
3-5
Distribution and Possession with Intent to Distribute Controlled Substances
Mells
6-7
Distribution and Possession with Intent to Distribute Controlled Substances
Shahid, Rawls, and Lora
8
Distribution and Possession with Intent to Distribute Controlled Substances
Rawls, Jordan, and Mayse
9
Distribution and Possession with Intent to Distribute Heroin
Rawls
10-18
Distribution and Possession with Intent to Distribute Controlled Substances
Shahid
19-25
Distribution and Possession with Intent to Distribute Controlled Substances
Lora
26
Causing Death Through Use of a Firearm
Mayse
27
Possession of a Firearm and Ammunition by a Convicted Felon
Mayse
28
Possession of a Firearm by a Convicted Felon
Mayse
29
Maintaining a Drug-Involved Premises
Shahid
30
Possession with Intent to Distribute Controlled Substances
Shahid
31
Possession of a Firearm and Ammunition by a Convicted Felon
Shahid
32
Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Shahid
33
Possession with Intent to Distribute Controlled Substances
Lora
34
Possession of a Firearm and Ammunition by a Convicted Felon
Lora and Valderrama
35
Possession of a Firearm by a Convicted Felon
Lora
36
Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Lora
37
Possession with Intent to Distribute Controlled Substances
Wicker
In February 2020, Shahid, Lora, Mells, Rawls, Wicker, Jordan, and Mayse – all Newark residents – along with four other members of a drug trafficking conspiracy operating in Newark, were charged by criminal complaint with conspiracy to distribute controlled substances, including heroin, fentanyl, and cocaine base. Jordan, Rawls, Williams, Hatcher, and Mayse were charged with an additional count for distribution of heroin and cocaine base. Mayse was charged with committing murder during and in relation to a drug trafficking crime.
Lora, and his girlfriend, Valderrama, were charged by separate complaints with unlawful possession of a firearm by a convicted felon.
On March 6, 2020, a federal grand jury returned a three-count indictment against Shahid for conspiracy to distribute controlled substances, maintaining a drug-involved premises, and possession of a firearm by a convicted felon.
Ricky Terrell, 24; Nasir Williams, 23; Quadir Hatcher, 28; and Tyree Purkett, 24, who were previously charged by the same criminal complaint in February 2020, have each pleaded guilty to an information for their role in the drug trafficking organization.
According to documents filed in this case and statements made in court:
Crane Village is a public housing complex near Branch Brook Park, on the border with Belleville. It consists of standalone buildings, with 354 apartments in total, all of which are accessible via exterior entrances. The buildings are clustered around courtyards and pedestrian walkways with roadways bisecting the complex. Given its location and its layout, which makes it difficult for law enforcement to surveil, Crane Village is the site of an open-air drug market. Between February 2019 and February 2020, law enforcement officers investigated the organization that controlled this drug market.
Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that the defendants conspired to distribute narcotics, including heroin, fentanyl, and cocaine base, in and around Crane Village.
The organization used a drug stash apartment in Crane Village to package and store drugs for distribution. On Dec. 15, 2019, Mayse entered the stash apartment and allegedly murdered a conspirator over a monetary debt relating to the distribution of narcotics.
The count of possession with intent to distribute 400 grams or more of fentanyl carries a minimum penalty of 10 years in prison, maximum penalty of life in prison, and a fine of at least $10 million. The count of conspiracy to distribute at least 28 grams of cocaine base and a quantity of heroin and fentanyl carries a mandatory minimum penalty of five years in prison, maximum penalty of 40 years in prison, and a fine of at least $5 million. The counts of distribution of, and/or possession with intent to distribute, 100 grams or more of heroin, 500 grams or more of cocaine, and 28 grams or more of cocaine base each carry a mandatory minimum penalty of five years in prison, maximum penalty of 40 years in prison, and a fine of at least $5 million. The counts of distribution of, and/or possession with intent to distribute, a quantity of heroin, fentanyl, and cocaine base each carry a maximum of 20 years in prison and a fine of $1 million.
The counts of unlawful possession of a firearm and/or ammunition each carry a maximum penalty of 10 years in prison and a fine of $250,000. The counts of possession of a firearm in furtherance of a drug trafficking crime each carry a mandatory minimum term of 5 years in prison, which must run consecutive to any other punishment, and a fine of $250,000. The count of maintaining a drug premises carries a maximum penalty of 20 years in prison and a fine of $500,000. The count of causing death through the use of a firearm is eligible for the death penalty, or a maximum sentence of life in prison, and a $250,000 fine.
Acting U.S. Attorney Honig credited special agents and task force officers with the ATF, Newark Division, under the direction of Acting Special Agent in Charge Toby C. Taylor; the Belleville Police Department, under the direction of Chief Mark Minichini; special agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s indictment. She also thanked the U.S. Marshals Service, the Nutley Police Department, the Bloomfield Police Department, the West Orange Police Department, the Verona Police Department, the Orange Police Department and the Bergen County Sheriff’s Office for their assistance with this case.
This case is part of the Newark Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. Federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
This case is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Tracey Agnew and Cassye Cole of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Eight Members of Marion Gardens Jersey City Gang Indicted for Racketeering, Violent CrimesRead the Press Release
NEWARK, N.J. – Eight members of a Jersey City gang associated with the Marion Gardens Housing Complex were charged by indictment today with racketeering, violent crimes in aid of racketeering, drug trafficking, and firearms offenses, Acting U.S. Attorney Rachael A. Honig announced.
The indictment charges Jervon Morris, aka “Sticky,” 32; Jalil Holmes, aka “Broad Day,” aka “BD,” 21; Kevin Williams, aka “KK,” aka “Kay,” 27; Jakeem Gibson-Madison, aka “Beanz,” 27; K’shawn Jackson, aka “Lil Kay,” 21; Lakief Grayson, aka “Lala,” aka “La Greaz,” 30; Willie Williams, aka “Willz,” 30; and Terick Rogers, aka “Moot,” 29, all of Jersey City. (See chart below for specific charges/penalties.)
The charges are the result of a long-running investigation by the FBI, the Hudson County Prosecutor’s Office, and the Jersey City Police Department.
According to documents filed in this case and statements made in court:
Morris, Holmes, Kevin Williams, Gibson-Madison, Jackson, Grayson, Willie Williams, and Rogers, are all members and associates of the neighborhood street gang associated with the Marion Gardens Housing Complex. Members and associates of the Marion Gardens street gang routinely distribute crack cocaine and heroin, among other controlled substances, in and around the Marion Gardens Housing Complex. Members and associates of the gang also engaged in acts of violence, including numerous assaults, shootings, and murders, which targeted rival gang members and others, including the following:
- On July 28, 2011, Morris, Kevin Williams, and another member of the Marion Gardens street gang, murdered Victim A.C. in the area of Gifford Avenue and Bergen Avenue in Jersey City;
- On Nov. 5, 2017, members and associates of the Marion Gardens street gang shot Victim C.C. in the area of Van Nostrand Avenue and Bergen Avenue in Jersey City;
- On Nov. 26, 2017, members and associates of the Marion Gardens street gang shot victim T.C. in the area of Warner Avenue and Martin Luther King Drive in Jersey City;
- On Dec. 3, 2017, Holmes and other members and associates of the Marion Gardens street gang murdered victim R.S. in the area of Warner Avenue and Martin Luther King Drive in Jersey City;
- On Feb. 7, 2018, Kevin Williams and another member of the Marion Gardens street gang assaulted victim R.B. in the area of Summit Avenue and Magnolia Avenue in Jersey City;
- On June 30, 2018, Holmes, Rogers, and Jackson shot five people – victim K.C., victim D.A., victim J.W., victim C.F., and victim R.H. – while celebrating “Meech Day” in honor of a deceased fellow gang member;
- On July 6, 2018, Holmes, Jackson, Gibson-Madison, and at least one other member of the Marion Gardens street gang traveled to the area of Wilkinson Avenue, at which time Victim A.W. and Victim R.H. were shot;
- On Jan. 9, 2019, Holmes and Gibson-Madison traveled to the area of Grant Avenue and Ocean Avenue to retaliate for the murder of a fellow gang member, at which time Holmes shot Victim M.G. and Victim T.S. and attempted to shoot Victim E.M; and
- On June 9, 2019, after being shot at by rival gang member, Victim K.G., brandished a firearm and attempted to shoot back at Victim K.G.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch, Jr., investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, for the investigation leading to the indictment.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Desiree Grace of the District of New Jersey’s Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Count
Defendant
Offense
Maximum Penalties
1
Morris
Holmes
Kevin Williams
Gibson-Madison
Jackson
Grayson
Willie Williams
Rogers
RICO Conspiracy
Life imprisonment;
$250,000 fine
2
Grayson
Unlawful Possession of a Firearm and Ammunition by a Convicted Felon
10 years’ imprisonment;
$250,000 fine
3
Grayson
Possession with Intent to Distribute Controlled Substances
20 years’ imprisonment;
$1,000,000 fine
4
Grayson
Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Life imprisonment;
5-year mandatory minimum;
$250,000 fine
5
Holmes
Jackson
Rogers
VICAR Assault with a Dangerous Weapon
20 years’ imprisonment;
$250,000 fine
6
Holmes
Jackson
Rogers
Discharging a Firearm During a Crime of Violence
Life imprisonment;
10-year mandatory minimum;
$250,000 fine
7
Holmes
Jackson
Rogers
VICAR Assault with a Dangerous Weapon
20 years’ imprisonment;
$250,000 fine
8
Holmes
Jackson
Rogers
Discharging a Firearm During a Crime of Violence
Life imprisonment;
10-year mandatory minimum;
$250,000 fine
9
Holmes
Jackson
Rogers
VICAR Assault with a Dangerous Weapon
20 years’ imprisonment;
$250,000 fine
10
Holmes
Jackson
Rogers
Discharging a Firearm During a Crime of Violence
Life imprisonment;
10-year mandatory minimum;
$250,000 fine
11
Holmes
Jackson
Rogers
VICAR Assault with a Dangerous Weapon
20 years’ imprisonment;
$250,000 fine
12
Holmes
Jackson
Rogers
Discharging a Firearm During a Crime of Violence
Life imprisonment;
10-year mandatory minimum;
$250,000 fine
13
Holmes
Jackson
Rogers
VICAR Assault with a Dangerous Weapon
20 years’ imprisonment;
$250,000 fine
14
Holmes
Jackson
Rogers
Discharging a Firearm During a Crime of Violence
Life imprisonment;
10-year mandatory minimum;
$250,000 fine
15
Morris
Possession with Intent to Distribute Controlled Substances
20 years’ imprisonment;
$1,000,000 fine
16
Morris
Unlawful Possession of Ammunition by a Convicted Felon
10 years’ imprisonment;
$250,000 fine
17
Holmes
Gibson-Madison
VICAR Assault with a Dangerous Weapon
20 years’ imprisonment;
$250,000 fine
18
Holmes
Gibson-Madison
Discharging a Firearm During a Crime of Violence
Life imprisonment;
10-year mandatory minimum;
$250,000 fine
19
Holmes
Gibson-Madison
VICAR Assault with a Dangerous Weapon
20 years’ imprisonment;
$250,000 fine
20
Holmes
Gibson-Madison
Discharging a Firearm During a Crime of Violence
Life imprisonment;
10-year mandatory minimum;
$250,000 fine
21
Holmes
Gibson-Madison
VICAR Assault with a Dangerous Weapon
20 years’ imprisonment;
$250,000 fine
22
Holmes
Gibson-Madison
Discharging a Firearm During a Crime of Violence
Life imprisonment;
10-year mandatory minimum;
$250,000 fine
23
Kevin Williams
VICAR Assault with a Dangerous Weapon
20 years’ imprisonment;
$250,000 fine
24
Kevin Williams
Possession with Intent to Distribute Controlled Substances
20 years’ imprisonment;
$1,000,000 fine
25
Willie Williams
Unlawful Possession of a Firearm and Ammunition by a Convicted Felon
10 years’ imprisonment;
$250,000 fine
Denison Woman Sentenced to Federal Prison for Embezzlement of Nearly 1.5 Million from a Local Credit UnionRead the Press Release
A Denison woman who was involved in a scheme resulting in nearly 1.5 million being embezzled from a local credit union was sentenced today, June 25, 2021, to three years in federal prison.
Brenda Jensen, age 53, from Denison, Iowa, received the prison term after a guilty plea to credit union embezzlement.
In a plea agreement, Jensen admitted that from at least May 2012 to March 2018, she embezzled money from Consumer Credit Union (CCU) in Denison, Iowa while working there as an employee. CCU serviced the following counties: Crawford, Carrol, Shelby, Ida, Monona, Sac, and Harrison.
Jensen and at least one other employee, including Jensen’s sister, Janine Keim, embezzled a total of nearly $1.5 million. Jensen, at times the credit union’s head teller, was responsible for all cash and cash counts at CCU during the relevant timeframe. Jensen successfully concealed her crime from auditors and CCU for years by overstating the change fund in the credit union’s general ledger balance and creating fictitious deposits into her personal accounts at CCU. This aspect of the scheme resulted in $922,480.29 in losses. After years of embezzling, the employees developed an internal kiting scheme. The kiting scheme caused CCU an additional $539,000 in losses. CCU’s total cash loss caused the institution to become insolvent, resulting in a forced merger with SAC Federal Credit Union. CCU’s assets had decreased by over a million dollars. This million-dollar decrease was a direct result of Jensen’s criminal activity.
Former board members from CCU submitted letters/victim impact statements to Chief Judge Strand setting forth the substantial harm Jensen’s crime caused the small community of Crawford County, Iowa. For some, CCU was the only institution willing to extend emergency credit. A former CCU board member recalled a story of a single mother with three children who could not get approval elsewhere to obtain an emergency loan, but who was helped by CCU. Jensen’s theft caused the insolvency of CCU and deprived the community of such financial services.
Jensen was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Jensen was sentenced to 36 months’ imprisonment. She was ordered to make $1,461,480.29 in restitution. She must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
Jensen was released on the bond previously set and is to surrender to the United States Marshal; Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Ron Timmons and investigated by the Federal Bureau of Investigation
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4083.
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Cuban national charged with ramming FBI security gateRead the Press Release
HOUSTON – A 38-year-old Cuban citizen who resided in the Houston area is set to appear in federal court on charges of willfully injuring or committing any depredation exceeding $1000 against U.S. property, announced Acting U.S. Attorney Jennifer B. Lowery.
Authorities took Nestor Mariano Vidal Batista into custody after allegedly damaging the FBI office in Houston. He is set to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy at 2 p.m. today.
The criminal complaint alleges that on June 23, Batista stole a Dodge Ram 2500 pick-up truck shortly before attempting to lodge an in-person complaint at the FBI office in Houston. Upon his arrival, security alleged referred him to local authorities.
According to the charges, Batista then re-entered the truck, circled the area and tried to force entry. He allegedly sped toward, and crashed the truck into, the front security gates of the FBI building. The complaint alleges, he caused considerable damage.
Shortly thereafter, he was allegedly able to exit the truck and enter the visiting area in the lobby. Authorities then subdued him and took him into custody.
If convicted, Batista faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation with the assistance of the Houston Police Department. Assistant U.S. Attorney Joe Porto is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Connecticut Addiction Medicine Provider Pays $1 Million to Settle Improper Billing AllegationsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Connecticut Attorney General William Tong, today announced that CONNECTICUT ADDICTION MEDICINE, LLC, and its owners DR. JAY BENSON and DR. MAHBOOB ASLAM, have entered into a civil settlement agreement with the federal and state governments in which they will pay $1,002,481 to resolve allegations that they caused overpayments to be paid by the Medicare and Medicaid Programs.
Connecticut Addition Medicine (“CAM”) is a medical practice that provides behavioral health and addiction medicine services to Medicare and Medicaid beneficiaries at its offices located throughout Connecticut. Benson and Aslam are physicians and the principals of CAM.
The allegations against CAM arise out of improper billing for urine drug tests. Urine drug testing includes drug screening tests (also known as “presumptive” tests), which determine the presence or absence of a drug or metabolite in a patient’s urine, and confirmation tests (also known as “definitive” tests), which are more precise and provide a numerical concentration of a drug or metabolite in a patient’s urine. CAM regularly tested their patient’s urine in-house, using a presumptive test, but also sent the identical urine samples out to an independent reference laboratory to conduct more detailed definitive tests on each and every specimen. In many cases, CAM received the results of the definitive test from the independent lab in four days or less.
The government alleges that CAM, Benson and Aslam submitted claims for payment to Medicare and Medicaid for the in-office presumptive urine drug tests that the they knew, or should have known, were not medically necessary, because they also ordered and received, from the independent reference laboratory, the more detailed and reliable definitive urine drug test results on the identical urine samples, which were available to assess and treat their patients.
To resolve their liability, CAM, Benson and Aslam will pay $1,002,481 to the federal and state governments for conduct occurring between December 21, 2015, through August 31, 2017.
“Billing government health insurance programs for medically unnecessary testing diverts taxpayer money needed to pay for legitimate medical needs,” stated Acting U.S. Attorney Boyle. “The government will aggressively pursue health care providers who are overpaid by the Medicare and Medicaid programs for medically unnecessary tests.”
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorneys Gregory O’Connell and Karla Turekian of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Clearwater Drug Distributor Sentenced to More Than 15 Years in PrisonRead the Press Release
Tampa, Florida – United States District Judge Charlene Honeywell has sentenced Jorge Ramirez (41, Clearwater) to 15 years and 8 months in prison for conspiring to distribute methamphetamine, heroin, and cocaine. Ramirez had pleaded guilty on August 25, 2020.
According to information presented during Ramirez’s sentencing hearing, in 2011, Ramirez was convicted in state court (Pasco County) for trafficking cocaine. After serving more than three years in state prison, Ramirez—also known as “Dientes,” “Cha-Ching,” and “Ching”—resumed selling large amounts of drugs, distributing kilogram quantities of methamphetamine, as well as smaller amounts of heroin and cocaine for years before he was ultimately arrested in this case. By the time Ramirez’s Spring Hill, Florida-based, Mexican cartel-affiliated suppliers were arrested in April 2019, Ramirez had sold at least 40 kilograms of highly pure methamphetamine over the previous five months.
In December 2020, United States District Judge Susan C. Bucklew sentenced each of Ramirez’s suppliers, Adan Barajas Maldonado and Juan Carlos Arias Castillo, to 25 years in prison.
This case was investigated by the Drug Enforcement Administration, the Hernando County Sheriff’s Office, and the Pasco Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Michael M. Gordon.
Cherry Creek Man Convicted by Federal Jury for Assault and Tampering with EvidenceRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Samuel Francis White Horse, age 33, of Cherry Creek, South Dakota, was found guilty of Assault by Striking, Beating, or Wounding and Tampering with Evidence as a result of a three-day federal jury trial in Pierre, South Dakota. White Horse was acquitted of charges of aiding and abetting Second Degree Murder, Voluntary Manslaughter, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury. The verdict was returned on June 24, 2021.
The conviction carries a maximum sentence of 20 years in federal prison, and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
White Horse was indicted by a federal grand jury on March 9, 2020.
The jury found that on February 12, 2020, White Horse assaulted a man, who crashed his vehicle into White Horse’s yard while suffering from a medical emergency, by punching him in the head. Jerome White Horse, Jr., the defendant’s father, also used a garden hoe to strike the victim in the head multiple times. The victim died several days later after suffering from significant bleeding in his brain. Jerome White Horse, Jr., pled guilty to and was convicted of Voluntary Manslaughter. After witnessing his father beat the victim with the garden hoe, the defendant took control of the weapon and hid it under the front porch of his home to conceal it from law enforcement. The garden hoe was recovered during the execution of a search warrant a couple days later, and found by the South Dakota Forensic Laboratory to have the victim’s DNA on the blade and Jerome White Horse, Jr.’s DNA on the handle.
The investigation was conducted by the Federal Bureau of Investigation, the Cheyenne River Sioux Tribe Law Enforcement Services, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Sentencing was scheduled for September 20, 2021. White Horse was immediately remanded to the custody of the U.S. Marshals Service after the jury announced its verdict.
California Man Sentenced to Prison for Conspiring to Distribute 50 Pounds of MethamphetamineRead the Press Release
MINNEAPOLIS – A California man was sentenced today to 60 months in prison followed by three years of supervised release for conspiring to distribute methamphetamine.
According to court documents, in December 2019, Francisco Calderon-Panduro, 33, and others participated in a large-scale methamphetamine distribution conspiracy. On December 17, 2019, law enforcement arranged with Calderon-Panduro’s co-conspirators to conduct a controlled purchase of three pounds of methamphetamine. When Calderon-Panduro arrived at the designated location with the methamphetamine in his trunk, the undercover law enforcement officers arrested him. Calderon-Panduro admitted to law enforcement that he had additional methamphetamine at his home. During a subsequent search of Calderon-Panduro’s residence, law enforcement seized an additional 47 pounds of methamphetamine stored in various locations within the home.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.
This case was the result of an investigation conducted by the Drug Enforcement Administration and the Anoka-Hennepin Narcotics and Violent Offenders Task Force.
This case was prosecuted by Assistant U.S. Attorney Allen A. Slaughter.
Buffalo Man Going to Prison for More Than 22 Years for Selling Fentanyl That Led to Five DeathsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert Moore, 43, of Buffalo, NY, who was convicted of distribution of fentanyl causing death, was sentenced to serve 270 months in prison by U.S. District Judge Lawrence J. Vilardo.
“Robert Moore admitted to selling heroin and fentanyl that cut short the lives of five individuals,” stated U.S. Attorney Kennedy. “This Office has been laser focused on targeting those who distribute drugs that kill others, and we will maintain that focus and use all available resources to serve as seekers of justice for those that are no longer with us and guardians for those that are. That's what law enforcers do.”
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that between February 2015 and March 16, 2017, the defendant worked with his brother Reese Moore, Kevin Abernathy, Joshua Levine, and others to distribute heroin and fentanyl in the City of Buffalo and surrounding suburbs. Robert Moore used cell phones to schedule meetings in and around Buffalo where he personally distributed quantities of heroin and fentanyl. When the defendant was not available, he sent co-defendants Reese Moore and Kevin Abernathy to sell the heroin and fentanyl to customers. Joshua Levine was a customer of Robert Moore who used the heroin and fentanyl, but also re-distributed quantities for profit to other users.
Robert Moore pleaded guilty to selling the heroin and fentanyl that caused the death of one individual, but he also admitted to selling the heroin and fentanyl that led to the overdose deaths of four other individuals.
• On May 15, 2015, defendant Moore distributed heroin and fentanyl to another individual who used the heroin and fentanyl with J.J., and J.J. died as a result of ingesting the heroin and fentanyl defendant Moore supplied.
• On March 12, 2016, defendant Moore distributed heroin and fentanyl to others, who provided it to S.S. S.S. used the heroin and fentanyl and died as a result of using the heroin and fentanyl defendant Moore supplied.
• On March 15, 2016, defendant Moore distributed fentanyl to others, who provided it to J.P. J.P. used the fentanyl and died as a result of using the fentanyl defendant Moore supplied.
• On January 8, 2017, defendant Moore distributed fentanyl to another person, who provided it to C.G. C.G. used the fentanyl and died as a result of using the fentanyl defendant Moore supplied.
• On February 18, 2017, defendant Moore distributed heroin and fentanyl to Joshua Levine who distributed a quantity of the heroin and fentanyl to B.G. B.G. used the heroin and fentanyl and died as a result of using the heroin and fentanyl supplied by defendant Moore and Joshua Levine.On November 27, 2015, Robert Moore’s vehicle was stopped by Buffalo Police. Officers seized 15 bags of heroin and seven bags of butyryl and $1000 in U.S. currency. During the course of the investigation, law enforcement officers from the Amherst, Lancaster, and the Buffalo Police Departments, and the New York State Police and DEA, conducted 11 controlled purchases of fentanyl and butyryl fentanyl from Robert Moore.
Robert Moore was arrested on March 16, 2017, at which time law enforcement officers searched his residence on Glenwood Drive in Williamsville, NY. Investigators seized 202 bags of fentanyl and numerous cellular telephones, including the cell phone Kevin Abernathy used to make sales of heroin and fentanyl to Robert Moore's customers. The search also resulted in the seizure of items the defendant obtained as a result of his heroin and fentanyl distribution activities, including assorted valuable pieces of jewelry and a 2009 Audi S5 Quattro. Moore has forfeited the jewelry, valued at over $450,000, seized during the search of his residence, and the 2009 Audi Quattro. In addition, he will pay a $100,000 money judgment.
Reese Moore, Kevin Abernathy, and Joshua Levin were previously convicted and are awaiting sentencing.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in-Charge, New York Field Division; the Amherst Police Department, under the direction of Chief Scott P. Chamberlin; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Mary Clark, and Lieutenant Kevin Reyes; the Lancaster Police Department, under the direction of Chief William J. Karn, Jr.; the Buffalo Police Department Narcotics Squad, under the direction of Commissioner Byron C. Lockwood; the Lockport Police Department, under the direction of Chief Steven Abbott; the Depew Police Department, under the direction of Chief Jerome Miller; the Niagara County Sherriff’s Office and the Niagara County Drug Task Force, under the direction of Sheriff Michael J. Filicetti; the Erie County Sherriff’s Office, under the direction of Sheriff Timothy Howard; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in Charge Kevin Kelly.
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Belgian Security Services Firm Agrees to Plead Guilty to Criminal Antitrust Conspiracy Affecting Department of Defense ProcurementRead the Press Release
G4S Secure Solutions NV (G4S), a Belgian security firm, has agreed to plead guilty for its role in a conspiracy to rig bids, allocate customers and fix prices for defense-related security services, including a multimillion-dollar contract issued in 2020 to provide security services to the U.S. Department of Defense for military bases and installations in Belgium. This is the first international resolution obtained by the Procurement Collusion Strike Force (PCSF).
“The Procurement Collusion Strike Force is committed to safeguarding public procurement at home and abroad from collusion that cheats American taxpayers out of the benefits of competition for critical goods and services,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “The division, along with our law enforcement colleagues, will hold security services providers and their executives accountable for conduct that targeted contracts to secure Department of Defense bases and installations abroad.”
“The FBI is committed to rooting out corruption and fraud against the United States wherever it occurs,” said Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office. “Today’s announcement demonstrates the strength of our collaborative efforts to investigate and prosecute anticompetitive, fraudulent conduct that harms U.S. taxpayers.”
“Today’s plea agreement demonstrates the continued focus of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners on protecting the integrity of the military procurement process,” said Deputy Director Paul K. Sternal of DCIS. “DCIS is steadfast in its commitment to work with its law enforcement partners and the PCSF to hold defense contractors accountable for employing corrupt business practices that endanger the security and safety of our service members at home and abroad.”
“We will continue to pursue integrity in the contracting arena and work closely with the Department of Justice and other law enforcement agencies to prevent collusion and fraud, and bring those responsible to justice,” said Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Protecting the military and the United States taxpayer is paramount.”
The charge filed in the U.S. District Court for the District of Columbia alleges that G4S participated in the conspiracy from spring 2019 through summer 2020. Between 2019 and 2020, G4S and its co-conspirators participated in a conspiracy to allocate security services contracts in Belgium among themselves and to determine the prices at which contracts would be bid. The contracts affected by the conspiracy include those for the U.S. Department of Defense and the North Atlantic Treaty Organization Communications and Information Agency, which is funded in part by the United States.
In addition to agreeing to plead guilty, G4S has agreed to pay a criminal fine of $15 million. The company began cooperating with the United States in April 2020 and will continue to cooperate in the ongoing investigation. The plea agreement is subject to court approval.
The Antitrust Division’s New York Office is prosecuting the case, which was investigated with the assistance of the FBI’s International Corruption Unit New York Field Office, the DCIS’ New York Resident Agency and the Transnational Operations Field Office, the U.S. Army CID's Major Procurement Fraud Unit, and other PCSF partners in Europe.
In November 2019, the Department of Justice created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect investigate and prosecute collusive schemes that target government spending outside of the United States.
To contact the Procurement Collusion Strike Force, or to report information on market allocation, price fixing, bid rigging, and other anticompetitive conduct related to the security services industry, go to https://www.justice.gov/procurement-collusion-strike-force.
Baltimore Man Sentenced to Seven Years in Federal Prison for Possession of a Firearm in Furtherance of Drug Trafficking and Possession with Intent to Distribute MarijuanaRead the Press Release
Baltimore, Maryland- U.S. District Judge Catherine C. Blake sentenced Delonte Wheeler, age 28, of Baltimore, Maryland to seven years in federal prison, followed by four years of supervised release, for possession of a firearm in furtherance of drug trafficking and possession with intent to distribute marijuana.
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 Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, on April 30, 2019, law enforcement observed Wheeler and an associate working together to distribute narcotics through several hand-to-hand transactions on the block of 1600 Moreland Avenue in Baltimore, Maryland.
As officers approached Wheeler and his associate, Wheeler entered a vehicle and drove away from the area. Wheeler fled to a neighboring residential area where he attempted to discard two bags in a resident’s trashcan and his car keys at another resident’s garage. Soon after, Wheeler was detained by law enforcement.
A Baltimore Police Department officer retrieved the two bags Wheeler attempted to conceal. The BPD officer recovered a 9mm pistol loaded with 12 cartridges as well as 82 plastic bags of marijuana from the first bag. The second bag Wheeler attempted to conceal contained 23 plastic containers of marijuana. In sum, officers recovered approximately 459 grams of marijuana.
As stated in his plea agreement, Wheeler admitted that he possessed marijuana with the intent to distribute and possessed the firearm in furtherance of drug trafficking.
Acting United States Attorney Jonathan F. Lenzner praised the ATF and Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Lindsey McCulley who prosecuted the case.
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Baltimore Career Offender Sentenced to 12 Years in Federal Prison for Illegal Possession of Firearms in Furtherance of Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Bernard Carolina, age 41, of Baltimore, to 12 years in federal prison, followed by five years of supervised release, for possession of firearms in furtherance of drug trafficking. Judge Blake also ordered that Carolina forfeit the firearms and ammunition seized by law enforcement during the investigation, specifically, a .22 long rifle caliber revolver and six rounds of .22 caliber long rifle cartridges, a 9mm semi-automatic pistol with a matching magazine and 34 9mm rounds of ammunition.
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 Commissioner Michael Harrison of the Baltimore Police Department (BPD).
According to Carolina’s plea agreement and other court documents, on July 17, 2019, Baltimore Police Department units set up an operation in the 400 block of Robert Street to surveil and interrupt a high-volume drug shop. Before 7:30 a.m., a large group of people began to form a line. Jimmy Harper, carrying a black bag, exited from the rear of a basement apartment of a residence in the 1900 block of Eutaw Place. Harper gave several clear plastic bags that he took from the black bag to a man that officers believed was selling those drugs to customers nearby. Upon seeing the officers, Harper fled, but was located and arrested. Officers recovered approximately 124 gelcaps of a mixture containing fentanyl and acetyl fentanyl and a fully loaded .40 caliber semi-automatic pistol from Harper. From a vacant home along the path of Harper’s flight, which law enforcement believed served as a stash house, detectives also recovered a black plastic bag containing approximately twenty clear plastic bags, each with 25 gelcaps containing white powder (a “pack”), as well as another black plastic bag with approximately six packs.
As detailed in the plea agreement, the next day, BPD detectives saw Carolina, who they believed ran the drug shop, exiting from the same rear basement apartment and carrying a black bag. Officers attempted to arrest Carolina on outstanding warrants, but Carolina fled and threw the black bag into an adjacent backyard. BPD officers arrested Carolina and recovered the bag, which contained 20 packs and matched the bag detectives recovered from the vacant house the day before. Officers learned that an unknown individual informed the line of suspected drug buyers that someone had been arrested and that they would not be “up,” which referred to the fact that the shop would not have any drugs to sell.
The detectives executed a search warrant at the basement apartment and recovered drug packaging materials, a digital scale with a white, powdery residue, as well as a blue and black canvas bag that contained four black bags tied shut. Each of the black bags contained 20 packs and matched the bags thrown by Carolina and recovered from Harper’s flight path. Two loaded firearms were also recovered from the canvas bag, a .22 long rifle caliber revolver with an obliterated serial number, loaded with six rounds of .22 caliber long rifle cartridges; and a 9mm semi-automatic pistol with a matching magazine loaded with 34 rounds of 9mm ammunition. In addition, law enforcement found a plastic bag with six gelcaps with white powder.
The BPD Drug Analysis Unit tested the substances within the total of approximately 2506 gelcaps recovered by law enforcement and determined that they contained both fentanyl and acetyl fentanyl. Carolina admitted that he intended to distribute those drugs.
Jimmy Harper, age 46, of Baltimore, previously pleaded guilty to distribution and possession with intent to distribute controlled substances and to possession of a firearm in furtherance of drug trafficking. Judge Blake sentenced Harper to 78 months in federal prison and ordered that he forfeit the firearm and ammunition seized by law enforcement upon Harper’s arrest.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorneys Julie D. Podlesni and Jeffrey M. Hann, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Augusta Man Sentenced for Robbing Businesses at KnifepointRead the Press Release
BANGOR, Maine: An Augusta resident was sentenced today in U.S. District Court in Bangor for a series of robberies in 2019, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Barry Grant, Jr., 39, to 57 months in prison followed by three years of supervised release. Grant was also ordered to pay $1,878 in restitution. He pleaded guilty on October 28, 2019.
According to court records, on February 25, 2019, and on July 17, 20 and 23, 2019, Grant robbed four different Augusta businesses at knifepoint. On each occasion he fled the scene with cash from the register. Grant was arrested by Augusta Police while fleeing the July 23, 2019 robbery.
“Knifepoint robberies are serious crimes that have ripple effects throughout the community, affecting clerks who are physically threatened, store owners who lose revenue, and near-by residents who feel less safe in their neighborhoods,” said Acting U.S. Attorney Clark. “The Project Safe Neighborhoods partnership between local, state and federal law enforcement agencies is effective and the investigation of this case by the Augusta Police Department and the FBI is an excellent example of that effective partnership.”
The Augusta Police Department and the FBI investigated the case as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative.
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.
Auburn Man Charged in Superseding Indictment with Child Pornography OffensesRead the Press Release
BOSTON – An Auburn man was indicted yesterday by a federal grand jury on child pornography offenses.
Jesse Laino, 25, was charged in a superseding indictment with one count of distribution of child pornography. The original indictment charged Laino with one count of possession of child pornography. Laino was arrested and charged by criminal complaint on July 22, 2020.
According to the charging documents, from about January 2019 to July 2020, Laino distributed child pornography. In July 2020, a search of Laino’s residence resulted in the seizure of electronic devices that contained images and videos of child pornography.
The charge of distribution of child pornography provides for a sentence of at least five and up to 40 years in prison, at least five and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 10 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Auburn Police Chief Andrew J. Sluckis, Jr.; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Worcester Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Arkansas Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sulfur Springs, Arkansas, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Jeffrey Alan Mosal, age 44, was indicted on April 6, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 23, 2021 and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Mosal, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between January 30, 2020, and April 6, 2021.
The charge is merely an accusation and Mosal is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Mosal was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Amec Foster Wheeler Energy Limited Resolves Foreign Bribery Case and Agrees to Pay Penalty of over $18 MillionRead the Press Release
Amec Foster Wheeler Energy Limited (“Amec Foster Wheeler,” or the “Company”), a subsidiary of John Wood Group plc (“Wood”), a United Kingdom-based global engineering company, has agreed to pay a penalty of more than $18 million to resolve charges stemming from the Company’s involvement in a scheme to pay bribes to foreign officials in Brazil in exchange for an approximately $190 million contract to design a gas-to-chemicals complex.
Earlier today, in federal court in Brooklyn, Amec Foster Wheeler entered into a three-year deferred prosecution agreement (“DPA”) with the U.S. Attorney’s Office for the Eastern District of New York and the Department of Justice’s Criminal Division, Fraud Section in connection with the filing of a criminal information filed in the Eastern District of New York charging the Company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (“FCPA”). In related proceedings, the Company has received provisional court approval for a settlement with the United Kingdom’s Serious Fraud Office and has settled with the Ministério Público Federal (“MPF”), the Advogado-Geral da União (“AGU”), and the Controladoria-Geral da União (“CGU”) in Brazil. A subsidiary of Wood has also agreed to resolve a related civil matter with the U.S. Securities and Exchange Commission (“SEC”).
Jacquelyn M. Kasulis, Acting U.S. Attorney for the Eastern District of New York, Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and Steven M. D’Antuono, Assistant Director-in-Charge, Federal Bureau of Investigation, Washington Field Office (FBI), made the announcement.
“Amec Foster Wheeler conspired to pay bribes to officials in Brazil as part of a corrupt scheme to obtain a $190 million government contract and generate millions of dollars in profits,” stated Acting U.S. Attorney Kasulis. “The defendant’s lengthy DPA and agreement to pay a penalty of more than $18 million demonstrate the commitment of this Office to enforcing the anti-bribery provisions of the FCPA and holding companies like Amec Wheeler Foster accountable for its illegal conduct and corporate greed.”
“Amec Foster Wheeler has now admitted to paying bribes in Brazil to win a lucrative contract,” said Acting Assistant Attorney General McQuaid of the Justice Department’s Criminal Division. “In the pursuit of profits, the company resorted to corruption, which distorts markets and undermines the rule of law. Today’s resolution, including the financial penalty and agreement to enhance compliance, underscores the Department of Justice’s commitment to holding companies accountable when they break the law and to rooting out criminal misconduct.”
“Today’s announcement demonstrates the FBI’s dedication to work with our international partners in the global effort to hold individuals and companies accountable who believe corruption is the only way to do business,” stated FBI Assistant Director-in-Charge D’Antuono. “When companies like Amec Foster Wheeler attempt to cheat the system, it creates an uneven playing field for businesses who don’t pay bribes. This deferred prosecution agreement, which includes both a substantial criminal penalty and other provisions, should serve as a warning to companies that even using a third-party intermediary to pay bribes will not preclude them from being held responsible for international corruption.”
According to the Company’s admissions and court documents, between 2011 and 2014, Amec Foster Wheeler conspired with others, including an Italian sales agent affiliated with a Monaco-based intermediary company, to pay bribes to decision-makers at Petróleo Brasileiro S.A. (“Petrobras”) in order to win a lucrative contract, worth approximately $190 million, from Petrobras to design a gas-to-chemicals complex in Brazil called Complexo Gás-Químico UFN-IV. The Company, through certain of its employees and agents, took acts in furtherance of the scheme while located in New York and Texas, and earned at least $12.9 million in profits from the corruptly obtained business.
As part of the DPA, for a three-year period, Amec Foster Wheeler agreed to continue to cooperate with the U.S. government in any ongoing or future criminal investigations concerning Amec Foster Wheeler, its executives, employees or agents. In addition, Amec Foster Wheeler and its parent company, Wood, agreed to enhance their compliance programs and to report to the government on the implementation of those programs.
The government reached this resolution with Amec Foster Wheeler based on a number of factors, including the Company’s failure to voluntarily and timely disclose the conduct that triggered the investigation, the nature and seriousness of the offense, which spanned multiple years and involved a high level executive, and credit for the Company’s cooperation. The Company also engaged in remedial measures, including terminating the individuals involved in the misconduct and adopting heightened controls and anti-corruption procedures. Accordingly, the criminal penalty reflects a 25 percent reduction off the applicable U.S. Sentencing Guidelines fine for the Company’s full cooperation and remediation.
In related proceedings, the Company also has received provisional court approval for a settlement with the United Kingdom’s Serious Fraud Office and has settled with the MPF, the AGU and the CGU in Brazil. Under the DPA, the Department will credit up to 25 percent ($4,593,750) of the criminal penalty owed to the United States to payments the Company makes pursuant to the resolution with the United Kingdom’s Serious Fraud Office, and up to 33 percent ($6,125,000) of the criminal penalty owed to the United States to payments the Company makes pursuant to the resolution with Brazilian authorities.
In a related civil matter with the SEC, a subsidiary of Wood has agreed to pay the SEC disgorgement and prejudgment interest totaling approximately $22.7 million for the conduct in Brazil.
The FBI’s Washington Field Office is investigating the case. Assistant U.S. Attorney Julia Nestor of the Eastern District of New York, Assistant Chief Gerald M. Moody, Jr. and Trial Attorney Dennis Kihm of the Criminal Division’s Fraud Section are prosecuting the case. The U.K.’s Serious Fraud Office and Brazil’s MPF, AGU, and CGU provided significant assistance.
The Defendant:
Amec Foster Wheeler Energy Limited
E.D.N.Y. Docket No. 21-CR-298 (KAM)
Amec Foster Wheeler Energy Limited Agrees to Pay over $18 Million to Resolve Charges Related to Bribery Scheme in BrazilRead the Press Release
Amec Foster Wheeler Energy Limited (Amec Foster Wheeler or the Company), a subsidiary of John Wood Group plc (Wood), a United Kingdom-based global engineering company, has agreed to pay $18,375,000 to resolve criminal charges stemming from a scheme to pay bribes to officials in Brazil in exchange for an approximately $190 million contract to design a gas-to-chemicals complex.
According to court documents, Amec Foster Wheeler entered into a three-year deferred prosecution agreement (DPA) with the U.S. Justice Department, Criminal Division, Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York in connection with the filing of an information charging the Company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).
“Amec Foster Wheeler has now admitted to paying bribes in Brazil to win a lucrative contract,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “In the pursuit of profits, the company resorted to corruption, which distorts markets and undermines the rule of law. Today’s resolution, including the financial penalty and agreement to enhance compliance, underscores the Department of Justice’s commitment to holding companies accountable when they break the law and to rooting out criminal misconduct.”
“Amec Foster Wheeler conspired to pay bribes to officials in Brazil as part of a corrupt scheme to obtain a $190 million government contract and generate millions of dollars in profits,” said Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York. “The defendant’s lengthy DPA and agreement to pay a penalty of more than $18 million demonstrate the commitment of this office to enforcing the anti-bribery provisions of the FCPA and holding companies like Amec Wheeler Foster accountable for its illegal conduct and corporate greed.”
“Today’s announcement demonstrates the FBI’s dedication to work with our international partners in the global effort to hold individuals and companies accountable who may believe corruption is the only way to do business,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “When companies like Amec Foster Wheeler attempt to cheat the system, it creates an uneven playing field for businesses who don’t pay bribes. This deferred prosecution agreement, which includes both a substantial criminal penalty and other provisions, should serve as a warning to companies that even using a third-party intermediary to pay bribes will not preclude them from being held responsible for international corruption.”
According to the Company’s admissions in the DPA, between 2011 and 2014, Amec Foster Wheeler conspired with others, including an Italian sales agent affiliated with a Monaco-based intermediary company, to pay bribes to decision-makers at Petrobras in order to win an approximately $190 million contract from Petrobras to design a gas-to-chemicals complex in Brazil called Complexo Gás-Químico UFN-IV. The Company, through certain of its employees and agents, took acts in furtherance of the scheme while located in New York and Texas, and earned at least $12.9 million in profits from the corruptly obtained business.
As part of the DPA, for a three-year period, Amec Foster Wheeler agreed to continue to cooperate with the U.S. government in any ongoing or future criminal investigations concerning Amec Foster Wheeler or its executives, employees or agents. In addition, under the agreement, Amec Foster Wheeler and its parent company, Wood, agreed to enhance their compliance programs and to report to the government on the implementation of their enhanced compliance programs.
The government reached this resolution with Amec Foster Wheeler based on a number of factors, including the Company’s failure to voluntarily and timely disclose the conduct that triggered the investigation; the nature and seriousness of the offense, which spanned multiple years and involved a high-level executive; and credit for the Company’s cooperation. The Company also engaged in remedial measures, including terminating an individual involved in the misconduct, and adopting heightened controls and anti-corruption procedures. Accordingly, the criminal penalty reflects a 25% reduction off the applicable U.S. Sentencing Guidelines fine for the Company’s full cooperation and remediation.
In related proceedings, the Company has received provisional court approval for a settlement with the United Kingdom’s Serious Fraud Office and has settled with the Ministério Público Federal (MPF), the Controladoria-Geral da União (CGU), and the Advogado-Geral da União (AGU) in Brazil. Under the DPA, the Fraud Section and the Eastern District of New York will credit up to 25% ($4,593,750) of the criminal penalty owed to the United States to payments the Company makes pursuant to the resolution with the United Kingdom’s Serious Fraud Office, and up to 33% ($6,125,000) of the criminal penalty owed to the United States to payments the Company makes pursuant to the resolution with Brazilian authorities.
In a related civil matter with the U.S. Securities and Exchange Commission (SEC), a subsidiary of Wood has agreed to pay the SEC disgorgement and prejudgment interest totaling approximately $22.7 million for the conduct in Brazil.
The FBI’s Washington Field Office is investigating the case. The United Kingdom’s Serious Fraud Office and Brazil’s MPF, CGU, and AGU provided significant assistance.
Assistant Chief Gerald M. Moody Jr. and Trial Attorney Dennis Kihm of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Julia Nestor of the Eastern District of New York are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.