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7 July 2021
Philadelphia Drug Dealer Sentenced to Nearly Six Years in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Philadelphia, Pa., has been sentenced in federal court to 70 months in prison and four years’ supervised release on his conviction of violating federal narcotics laws and money laundering, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Kim R. Gibson imposed the sentence on Malik Byers, 29, of Philadelphia, Pa.
According to information presented to the court, from July 5, 2018 and continuing thereafter to on or about May 5, 2020, Byers conspired to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, 40 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 28 grams or more of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack. Further, Byers conspired to commit money laundering.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
OCDETF conducted the investigation leading to the successful prosecution of Byers. The task force is headed by the Federal Bureau of Investigation, Laurel Highlands Resident Agency and is comprised of members drawn from the FBI Safe Streets Task Force, Homeland Security Investigations, Bureau of Alcohol, Tobacco, and Firearms, the Pennsylvania State Police, and the Indiana Borough Police Department.
Penn Hills Man Sentenced to 10 Years in Prison for Selling Fentanyl that Caused an Overdose DeathRead the Press Release
PITTSBURGH, PA - A former resident of Penn Hills, PA, has been sentenced in federal court to 10 years in prison on his conviction for distributing fentanyl, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Christopher Hill, age 32, formerly of Penn Hills, PA 15235.
According to information presented to the court, on or about July 21, 2016, Hill sold fentanyl to an individual who, after using the narcotic, died of an overdose.
Assistant United States Attorney Barbara K. Doolittle prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Christopher Hill.
Parkersburg Man Pleads Guilty to Firearm and Drug ChargesRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pleaded guilty today to federal firearm and drug charges.
According to court documents and statements made in court, on or about December 1, 2019, Ryan Ashley Williams, 35, was arrested by law enforcement officers at an apartment on Hall Street in Parkersburg. Officers found approximately 40 grams of a mixture containing carfentanil, fentanyl and heroin on Williams, as well as keys to a safe. Within the safe, officers located approximately eight grams of a mixture containing fentanyl and heroin, along with a semi-automatic pistol. Williams admitted that he intended to distribute the drugs to another person and that he knew he had been previously convicted of the felony offense of first degree robbery with a firearm specification in Wood County Circuit Court, which prohibited him from possessing firearms.
Williams pleaded guilty to possession with intent to distribute carfentanil, fentanyl and heroin and to being a felon in possession of a firearm, and faces up to 40 years in prison when sentenced on September 30, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
United States District Judge Joseph R. Goodwin presided over the hearing.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00091.
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Park Forest Man Convicted of Enticement of a MinorRead the Press Release
PEORIA, Ill. – A federal jury deliberated for just over two hours before returning a guilty verdict this afternoon against Bryan Rossi, 31, of the 400 block of Titonka Street in Park Forest, Ill., for one count of enticement of a minor.
Over two days of testimony this week, the government presented evidence to establish that Rossi arranged to meet a 15-year-old minor for sexual activity on the dating application Grindr.
Sentencing for Rossi has been scheduled for November 15, 2021, before U.S. District Judge Michael Mihm at the federal courthouse in Peoria, Ill. Rossi faces statutory penalties of 10 years to life imprisonment. He remains in the custody of the U.S. Marshals.
Rossi was arrested over Valentine’s Day weekend 2020 as part of an FBI operation conducted in Kankakee County, Ill. The operation was conducted with the assistance of the Bradley Police Department, the Kankakee County Sheriff’s Office, and the Kankakee Area Metropolitan Enforcement Group. Assistant U.S. Attorneys Elly Peirson and Melissa Moody represented the government at trial.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Nigerian National Sentenced for Role in Fraud SchemeRead the Press Release
In Austin today, a federal judge sentenced Akhabue Ehis Onoimoimilin, aka “David Harrison,” a 29-year-old Nigerian national residing in Houston, to 87 months of imprisonment for his participation in a money laundering conspiracy that swindled more than $2.2 million from victims using Business Email Compromise (BEC) and romance scams.
In addition to the prison term, U.S. District Judge Robert Pitman ordered that Onoimoimilin pay $865,210.78 in restitution to his victims and be placed on supervised release for two years after his prison term. Judge Pitman also ordered a money judgment against the defendant in the amount of $50,605 for the proceeds he received from the scheme.
In a BEC scheme, scammers target businesses and individuals making wire transfer payments, especially those with access to company finances. The scammers trick the employees into making wire transfer payments to bank accounts thought to belong to trusted partners - except the money ends up in accounts controlled by the fraudsters. Sometimes the scammers use computer intrusion techniques to alter legitimate payment request emails, changing the recipient bank accounts. Sometimes they send spoofed emails from email addresses similar to the real email accounts used by trusted partners.
In romance scams, conspirators often located outside the U.S. review established online dating sites, targeting victims who appear lonely based upon their profiles. The fraudsters create fake profiles and exploit the emotional vulnerabilities of the victims. Once an emotionally dependent relationship is established, the fraudsters create various crises and ruses, such as an emergency medical need that must be paid to allow the conspirator to travel to meet the victim in person and purportedly requiring the immediate transfer of funds. These schemes are often emotionally and fiscally harmful, as the duration of the “relationship” can span months and years. They often end only when the victim drains his or her resources and can no longer send funds to the conspirators.
On February 2, 2021, Onoimoimilin pleaded guilty to one count of conspiracy to commit money laundering, admitting that beginning prior to June 2015, he used a fraudulent foreign passport in the name of David Harrison to open bank accounts in Austin and Houston. Onoimoimilin used these financial accounts to receive, launder and distribute wire transfers to coconspirators illegally receiving proceeds of BEC and romance schemes. For his efforts, Onoimoimilin collected between 10% and 15% of more than $420,000 in fraudulently obtained funds.
“These morally reprehensible schemes deprive people of their hard-earned money and even their entire life savings and retirement funds, leaving humiliation and financial ruin behind,” said U.S. Attorney Ashley C. Hoff. “Our office will continue to vigorously prosecute those who conspire to prey on vulnerable victims in this manner.”
“The types of fraud committed by Mr. Onoimoimilin not only have lasting ramifications for the affected victims, but also threaten the integrity of our country’s financial systems,” said Acting Special Agent in Charge Tim Tubbs of the Homeland Security Investigation’s San Antonio Division. “While today’s sentence is a decisive victory for the victims, the overall fight against fraud continues. HSI will do everything in its power to bring other cyber criminals to justice and recover ill-gotten gains for those victimized.”
HSI conducted this investigation. Assistant U.S. Attorneys Keith Henneke, Michael C. Galdo and Robert Almonte II prosecuted this case.
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Montgomery Man Sentenced Following Federal Drug and Gun ConvictionsRead the Press Release
Montgomery, Ala. – On Wednesday, July 7, 2021, Ronnie White, 51, from Montgomery, Alabama, was sentenced to 37 months in prison for distribution of cocaine and being a felon in possession of a firearm, announced Acting U.S. Attorney Sandra J. Stewart. Following his prison sentence, White will serve three years of supervised release. There is no parole in the federal system.
According to court records, in 2017 law enforcement began to suspect that White was involved in the distribution of illegal drugs. Agents confirmed that suspicion on August 22, 2017 when they discovered White was buying cocaine from co-defendant and Island Delight Caribbean Restaurant co-owner, Richard Smith, with intention to re-sell to others. Later, on March 9, 2020, the Montgomery Police Department conducted a traffic stop of a vehicle White was driving and found a .40 caliber handgun. White is a convicted felon and is prohibited from possessing firearms or ammunition. White pleaded guilty to illegal distribution of cocaine and possession of a firearm by a convicted felon on October 22, 2020.
Co-defendant Smith was convicted by a federal jury last month of 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. Smith’s sentencing hearing is scheduled for September 29, 2021.
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.
Massachusetts Man Sentenced to Prison for Fraudulent Scheme to Evade Payroll Taxes and Workers’ Compensation Requirements in Construction IndustryRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Dennis Alexander Barahona (38, Chelsea, Massachusetts) to 18 months in federal prison for conspiracy to commit wire fraud and conspiracy to commit tax fraud. The court also ordered Barahona to pay restitution to the IRS in the amount of $1,110,257 and to an insurance company in the amount of $41,352.91. In addition, the court ordered Barahona to forfeit his interest in $230,764 that was seized from two bank accounts. The court also entered a money judgment against Barahona in the amount of $263,302, representing the proceeds of the wire fraud.
Barahona had pleaded guilty on March 29, 2021. Barahona’s co-defendant, Gregorio Jose Fuentes-Zelaya, was sentenced on May 10, 2021, to 33 months in federal prison.
According to court documents, Barahona established a shell company that purported to be involved in the construction industry. He obtained a workers’ compensation insurance policy in the name of the shell company to cover a minimal payroll for a few purported employees. Barahona then “rented” the workers’ compensation insurance to work crews who had obtained subcontracts with construction contractors on projects in various Florida counties. Barahona sent the contractors a certificate as “proof” that the work crews had workers’ compensation insurance, as required by Florida law. By sending the certificate, Barahona falsely represented that the work crews worked for his company. Over the course of the scheme, Barahona “rented” the certificates to dozens of work crews.
As part of the scheme, the contractors issued payroll checks for the workers’ wages to the shell company and Barahona or a co-conspirator cashed these checks, then distributed the cash to the work crews after deducting their fee, which was typically about 6% of the payroll. During the scheme, the conspirators cashed payroll checks totaling approximately $4,388,371, with their fees totaling approximately $263,302. Neither the shell company nor the contractors reported to government authorities the wages that were paid to the workers, nor did they pay either the employees’ or the employer’s portion of payroll taxes – including Social Security, Medicare, and federal income tax. According to the IRS, the amount of payroll taxes due on wages totaling $4,388,371 was approximately $1,110,257.
The scheme also facilitated the avoidance of the higher cost of obtaining adequate workers’ compensation insurance for the numerous workers on the work crews to whom Barahona “rented” the workers’ compensation insurance. The policy that Barahona purchased and then “rented” out was for an estimated payroll of $91,000, and the insurance company issued the policy for a premium of $15,206. Had a workers’ compensation insurance policy been purchased for a payroll totaling $4,388,371, the policy premium would have totaled about $728,030.
“This criminal thought he could make quick profits with this criminal scheme,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “But instead of enjoying illegal profits, he will now be spending time behind bars with his co-conspirator thanks to HSI special agents and our law enforcement partners.”
“Employers are legally obligated to their employees and the American taxpayer to withhold and pay their fair share of taxes,” said Special Agent in Charge Brian Payne of IRS Criminal Investigation. “By shirking this obligation, their employees are cheated out of benefits they’ve earned and the taxpayer is also undercut. Today’s significant sentencing should make it abundantly clear that these actions will not be tolerated.”
This case was investigated by Homeland Security Investigations, the Internal Revenue Service – Criminal Investigation, and the Florida Department of Financial Services. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Martinsburg man admits to firearm chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Marquis Hicks, of Martinsburg, West Virginia, has admitted to his role in a conspiracy involving the illegal purchase and transportation of firearms, Acting United States Attorney Randolph J. Bernard announced.
Hicks, age 30, pleaded guilty to one count of “Conspiracy.” Hicks admitted to working with another individual to purchase, possess, and transfer firearms to an out of state resident, in March 2020.
Hicks faces up to five 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Martinsburg man admits drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph George Ray, of Martinsburg, West Virginia, has admitted to a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Ray, 56, also known as “YB,” pleaded guilty today to one count of “Possession with Intent to Distribute a Heroin and Fentanyl Mixture.” Ray admitted to distributing heroin and fentanyl in August 2020 in Berkeley County.
Ray faces up to 20 years of incarceration and a fine of up to $1,000,000. 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.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level 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.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Man Sentenced to 39 Months in Prison for Distributing Crack on Supervised ReleaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that SHAUN HAWKINS, 44, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 39 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine while he on federal supervised release.
According to court documents and statements made in court, in March 2009, Hawkins was sentenced in Bridgeport federal court to 96 months of imprisonment and three years of supervised release for obstruction of justice. In that case, Hawkins engaged in a scheme to pay a witness not to testify in an ongoing grand jury investigation related to Hawkins’ participation in a violent home invasion robbery in Hartford. After Hawkins completed his federal sentence in March 2016, he was transferred to state custody to serve a consecutive sentence for robbery and burglary offenses related to the home invasion. He was released from prison in March 2018 and began serving his three-year term of federal supervised release.
In July 2019, after a spate of gun violence in Hartford, the FBI’s Northern Connecticut Gang Task Force, DEA, Hartford Police Department and other law enforcement agencies initiated an investigation targeting gang-related drug distribution and associated violence in north Hartford. In August and September 2019, investigators made three controlled purchases of crack cocaine from Hawkins in Hartford.
Hawkins was arrested on September 13, 2019. On October 21, 2020, he pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack”).
Judge Thompson sentenced Hawkins to 15 months of imprisonment for distributing crack, and a consecutive 24-month prison term for violating the conditions of his supervised release.
Hawkins, who is residing in Windsor Locks while released on bond, is required to report to prison on August 6, 2021.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney Heather Cherry.
Law Enforcement Officer Charged with Transfer of Firearm to a Felon, Transferee Charged with Felon in PossessionRead the Press Release
GREENSBORO, N.C. –Timothy Jay Norman, age 47, of Browns Summit, NC, and Tommy Lee Hudson, age 33, of Reidsville, NC, were arrested today on criminal firearm charges.
The Criminal Complaints unsealed today allege that Norman, a North Carolina Highway Patrol State Trooper, transferred firearms to Hudson, knowing or having reasonable cause to believe that Hudson is a convicted felon.
The defendants had initial appearances in federal court in Greensboro this afternoon and were detained pending their next scheduled court appearances on July 14 at 3:00 p.m. (Hudson) and 3:45 p.m. (Norman), in Greensboro Courtroom 1A.
Norman is charged with unlawful transfer of a firearm to a prohibited person. If convicted, he faces a maximum penalty of 10 years in prison.
Hudson is charged with felon in possession of a firearm. If convicted, he also faces a maximum penalty of 10 years in prison.
A criminal complaint is merely an allegation, and each defendant is presumed innocent unless and until proven guilty.
The charges were announced by Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina. The case has been investigated by the North Carolina State Bureau of Investigation (SBI), the Federal Bureau of Investigation (FBI), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
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Kissimmee Tax Preparer Sentenced to Prison and Ordered to Pay Restitution for False Tax Return SchemeRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger today sentenced Joseph Amaya to 12 months in federal prison for aiding and assisting in the preparation of false tax returns. The court also ordered Amaya to pay more than $1.6 million in restitution to the Internal Revenue Service.
Amaya had pleaded guilty on February 16, 2021.
According to court documents, from 2014 through approximately 2018, Amaya co-owned and managed Tax Machine, Inc., a tax preparation business in Kissimmee. During the life of the business, Amaya knowingly prepared and filed—and trained his employees to prepare and file—numerous false and fraudulent tax returns on behalf of Tax Machine customers. Specifically, Amaya and his employees created bogus expenses or deliberately overstated true deductible expenses (such as unreimbursed employee expenses, gas, mileage, medical and dental expenses, and gifts to charity). Amaya also trained his employees to include false claims of net business losses on tax returns. By including those false and fraudulent material statements on the income tax returns of Tax Machine customers, Amaya and his employees eliminated certain tax liabilities that their customers otherwise would have had, generated tax refunds that they were not entitled to, or did both. The tax loss to the IRS as a result of Amaya’s conduct is approximately $1.6 million.
“When Joseph Amaya used his tax return preparation service, Tax Machine, Inc., to try and make a fast buck for him and his clients, he underestimated the special agents of IRS Criminal Investigation,” said Special Agent in Charge Brian Payne of IRS Criminal Investigation. “At the IRS, protecting taxpayer money is a matter we take seriously. An integral part of the agency’s mission involves detecting and catching fraudulent tax refund claims. Taxpayers looking for tax preparation information are encouraged to visit IRS.gov.”
This case was investigated by the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorney Emily C. L. Chang.
Kaufman County Man Sentenced to Federal Prison for Trafficking Methamphetamine in the Eastern District of TexasRead the Press Release
TYLER, Texas – A Terrell man was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Cory Joe Phillips, 39, pleaded guilty on March 8, 2021, to possession with intent to distribute and distribution of methamphetamine. Today, Phillips was sentenced to 60 months in federal prison by U.S. District Judge J. Campbell Barker.
“We thank our law enforcement partners for their diligence in investigating drug trafficking crimes and protecting the public from those who deal illicit substances,” said Acting U.S. Attorney Nicholas J. Ganjei. “Drug traffickers in the Eastern District of Texas will not escape justice.”
According to documents and information presented in court, Phillips distributed methamphetamine in Van Zandt County on multiple occasions over a four-month period in late 2019 and early 2020. In one instance, Phillips was in possession of a 12-gauge shotgun.
This case was investigated by the U.S. Drug Enforcement Administration, the Canton Police Department and the Van Zandt County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Allen Hurst.
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Kanawha County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. -- James Arnold Scott, 45, of Hansford, pleaded guilty to aiding and abetting the distribution of five grams or more of methamphetamine.
According to his own statements and court documents, on January 17, 2020, Scott aided and abetted one of his drug sources of supply in the distribution of four ounces of methamphetamine to a confidential informant for $1,150. The drug transaction took place in Huntington. Scott further admitted that when law enforcement later executed a search warrant at his Hansford residence they seized cash, marijuana, methamphetamine, four firearms, one of which was stolen, and a ballistic vest.
Scott faces a mandatory minimum of five years and up to 40 years in prison when he is sentenced on October 12, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Drug Enforcement Administration (DEA). Assistant United States Attorney Negar Kordestani is handling the prosecution.
United States District Judge Robert C. Chambers presided over the hearing.
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. 3:21-cr-00078.
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Justice Department to Provide Funding for Body-Worn Cameras to Small, Rural and Tribal Law Enforcement AgenciesRead the Press Release
The Justice Department announced today that the Bureau of Justice Assistance (BJA) is releasing $7.65 million in a competitive microgrant grant solicitation that will fund body-worn cameras (BWCs) to any law enforcement department with 50 or fewer full-time sworn personnel, rural agencies (those agencies within non-urban or non-metro counties); and federally-recognized Tribal agencies.
“The Justice Department is committed to providing law enforcement with valuable resources to increase accountability and build trust with the communities they serve,” said Attorney General Merrick B. Garland. “Today we encourage all small, rural and Tribal law enforcement agencies to apply for funding for this important tool that will enhance protection for both officers and citizens.”
“The grant solicitation today will help law enforcement agencies and their communities improve evidentiary outcomes, and enhance the safety of, and improve interactions between, officers and the public,” said Acting Director Kristen Mahoney of BJA. “Importantly, this grant program will make it easier for small, rural and Tribal law enforcement agencies to apply for funding. It’s an online application that will streamline the grant process for these agencies.”
Funds must be used to purchase or lease body-worn cameras and may include expenses reasonably related to BWC program implementation. Funding can be used to support pilot BWC programs, establish new BWC implementation or expand existing programs.
BJA has selected Justice & Security Strategies Inc. to administer the grant program through a cooperative agreement. For more information and to apply, please visit https://www.srtbwc.com. All applications are due by August 31, 2021.
Agencies interested in body-worn camera funding that do not meet the eligibility criteria for small, rural and Tribal as described in the microgrant solicitation should note that the FY 2021 Body-Worn Camera Policy and Implementation Program to Support Law Enforcement Agencies grant solicitation is currently open. That solicitation will close on July 12, 2021. The anticipated total amount to be awarded under that solicitation is $27.5 million.
Today’s announcement follows Deputy Attorney General Lisa O. Monaco’s recent memo to the department’s law enforcement components directing them to develop and submit for review their plans for BWC policies that require agents to wear and activate BWC recording equipment for purposes of recording their actions during: (1) a pre-planned attempt to serve an arrest warrant or other pre-planned arrest, including the apprehension of fugitives sought on state and local warrants; or (2) the execution of a search or seizure warrant or order. The Deputy Attorney General will work with the department’s law enforcement components in the coming weeks to review their policies and finalize implementation plans.
For resources to support the development and implementation of body-worn camera programs, the Department of Justice has created a Body-Worn Camera Tool Kit.
The Bureau of Justice Assistance helps to make American communities safer by strengthening the nation’s criminal justice system. BJA’s grants, cooperative agreements, training and technical assistance and policy development services provide state, local and Tribal governments with the cutting-edge tools and best practices they need to reduce violent and drug-related crime, support law enforcement and combat victimization.
BJA is a component of the Office of Justice Programs, U.S. Department of Justice. The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov
Georgia man found guilty of drug distribution resulting in deathRead the Press Release
CLARKSBURG, WEST VIRGINIA – After a 7-day trial, a federal jury found Seddrick Banks, of Cartersville, Georgia, guilty of drug distribution resulting in death and a myriad of other charges, Acting U.S. Attorney Randolph J. Bernard announced.
After two hours of deliberation, the jury found Banks, age 28, guilty of one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances,” one count of “Possession with the Intent to Distribute Methamphetamine – Aiding and Abetting,” one count of “Possession with the Intent to Distribute Cocaine Hydrochloride – Aiding and Abetting,” one count of “Possession with the Intent to Distribute Fentanyl – Aiding and Abetting,” one count of “Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime,” and one count of “Accessory After the Fact to Distribution of Fentanyl Resulting in Serious Bodily Injury or Death.”
During the trial, the jury heard testimony that Banks trafficked and distributed more than 4.5 kilograms of methamphetamine, as well as cocaine hydrochloride and fentanyl, in Marion County and elsewhere from May 2018 to September 2018. He would travel from Georgia to West Virginia, trafficking the drugs from different motel and hotel rooms and other locations. Banks and his conspirators carried at least three firearms during the drug trafficking crimes.
At one of the motels in Lewis County on August 9, 2018, Terrick Robinson, a co-conspirator, distributed fentanyl to Courtney Dubois of Fairmont, West Virginia. That drug, according to her autopsy, was an independent sufficient cause of Courtney Dubois’ death. The jury heard testimony and saw evidence that Banks assisted Robinson in taking the body of the victim to Georgia, where they dismembered the body and disposed of it at the Bartow County Landfill.
“This horrific and heinous crime is more than just a drug trafficking case. Banks and his co-conspirators not only preyed on our neighbors with the drugs they were selling, they allowed a young woman to die and disposed of her without any regard or respect for her life. While this outcome won’t bring Courtney back, we hope it will give her family some peace as justice has prevailed,” said Bernard.
Banks faces the following:
- Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances – at least 10 years and up to life incarceration and a fine of up to $10,000,000
- Possession with the Intent to Distribute Methamphetamine – Aiding and Abetting - at least 10 years and up to life incarceration and a fine of up to $10,000,000
- Possession with the Intent to Distribute Cocaine Hydrochloride – Aiding and Abetting – up to 20 years of incarceration and a fine of up to $1,000,000
- Possession with the Intent to Distribute Fentanyl – Aiding and Abetting – at least five years and up to 40 years of incarceration and a fine of up to $5,000,000
- Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime – at least five years and up to life incarceration and up to a $250,000 fine
- Distribution of Fentanyl Resulting in Serious Bodily Injury or Death –up to 15 years of incarceration and a fine of up to $500,000
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.
Two of the co-conspirators in this case have pled guilty. William Gregory Chappell, age 34, of Cartersville, Georgia, pled guilty to one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances” and one count of “Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime” in February 2019. Joel Jimenez, age 39, also of Cartersville, Georgia, pled guilty to one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances” in October 2019. Both men were a part of the drug distribution operation from Georgia to West Virginia.
Another defendant in this case, Terrick Robinson, age 36, of Cartersville, Georgia, was sentenced to life in prison plus 10 years after being found guilty after a nine-day trial of a multiple charges related this case. Read more here: https://www.justice.gov/usao-ndwv/pr/georgia-man-sentenced-four-life-sentences-plus-10-years-drug-distribution-resulting
Assistant U.S. Attorneys Brandon S. Flower and Andrew M. Cogar prosecuted the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Three Rivers Drug & Violent Crimes Task Force; the West Virginia State Police; The Bartow County, Georgia, Sheriff’s Office; the FBI in Rome, Georgia; and the Georgia Bureau of Investigation investigated.
U.S. District Judge Thomas S. Kleeh presided.
Georgia Man Pleads Guilty in Bank Fraud Scheme Exploiting Homeless in Rhode IslandRead the Press Release
PROVIDENCE, R.I. – A Georgia man, one of four charged in March with running a scheme in which Providence area homeless and transient individuals were recruited to cash counterfeit business checks in Rhode Island, Massachusetts, Connecticut, and Maine, in exchange for cash payments, pleaded guilty in federal court in Providence today to conspiracy to commit bank fraud.
A United States Secret Service-led investigation determined that from October 2018 through February 2021, numerous homeless individuals were arrested at banks throughout the region attempting to cash counterfeit business checks. Many of them reported similar patterns of being approached by one or more males in Providence and being offered the opportunity to cash bogus checks in return for cash payments.
According to information presented to the court, among those approaching individuals to cash checks was Michael Williams, 26, of East Point, GA. Once a person agreed to cash a check, Williams and his co-conspirators, Austin Weaver, 31, of Decatur, GA, Cortavious Benford, 26, of Atlanta, GA, and Jalen Ronald Stanford, 28, of East Point, GA, allegedly created a counterfeit check made payable to the individual and then drove him or her to a bank to cash it. The checks were generally in the amount of $2,000 or more. Individuals were often paid about $100 per check that they successfully cashed.
On February 5, 2021, Williams and Cortavious Benford allegedly recruited and drove a homeless person to a Providence bank to cash a check. They threatened to injure the man if he failed to provide them with all the proceeds. From inside the bank, the man pointed to a white sedan that was parked outside of the bank as containing the individuals who recruited him and provided him with the counterfeit check. Providence Police located the vehicle a short distance away and arrested Williams and Benford. They were found to be in possession of $12,000 in cash.
A court-authorized search of a Providence residence that law enforcement determined the co-conspirators used when in Rhode Island resulted in the seizure of items used in the creation of counterfeit checks, including a computer, which had a program used to design and print checks, a printer, blank check stock, and an envelope containing numerous stolen checks and approximately $5,000 in cash.
Several completed fraudulent checks, which included known cashers and victim business information were found on the computer.
The investigation determined that using homeless and itinerant individuals, Williams and his co-conspirators allegedly attempted to cash approximately $677,687 worth of counterfeit checks throughout the New England region, causing losses to financial institutions of approximately $480,000.
Appearing today before U.S. District Court Chief Judge John J. McConnell, Jr., Michael Williams pleaded guilty to conspiracy to commit bank fraud, announced Acting United States Attorney Richard B. Myrus. Williams is scheduled to be sentenced on September 21, 2021.
Cortavious Benford, Austin Weaver, and Jalen Ronald Stanford, are awaiting trial.
The cases are being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
Charges brought in this case are merely accusations. A defendant is presumed innocent unless and until proven guilty.
Acting United States Attorney Myrus thanks the Providence and Medway, MA, Police Departments for their assistance in the investigation of this matter.
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Gardena Man Charged in Indictment Alleging Five-Day Armed Robbery Spree of Donut Shops, Pet Clinic, and Other BusinessesRead the Press Release
LOS ANGELES – A South Bay man has been indicted on federal criminal charges alleging he committed a five-day armed robbery spree of nearly a dozen Los Angeles-area businesses, including four donut shops and the attempted robbery of a veterinarian’s office.
Justin Washington, 32, of Gardena, was named in a 14-count federal grand jury indictment returned on July 6. He is charged with 11 counts of Hobbs Act robbery and three counts of using a firearm during a crime of violence. Washington’s arraignment is expected in the coming weeks. He is currently in custody on separate state charges.
According to the indictment, between November 30 and December 4, 2020, Washington robbed and attempted to rob 10 businesses in the South Bay and in South Los Angeles. His alleged robbery spree began at the same Gardena grocery store, robbed on consecutive days on November 30 and December 1. From there, in Gardena, Washington allegedly robbed a 7-Eleven store, a donut shop and attempted to rob a veterinarian’s office. He allegedly then went on to rob a donut shop in Torrance, and, in South Los Angeles, a wireless phone store, a dry cleaner business, two additional donut shops and a Baskin-Robbins ice cream store.
During the robberies, Washington allegedly held the stores’ employees against their will, including, as charged in three counts, at gunpoint.
The total loss alleged in the indictment is approximately $5,679.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
A violation of the Hobbs Act carries a statutory maximum penalty of 20 years in federal prison. The offense of brandishing a firearm during a crime of violence carries a statutory maximum sentence of life in federal prison.
The FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Torrance Police Department; the Gardena Police Department; the Los Angeles Police Department; and the Los Angeles County Sheriff’s Department investigated this matter.
Assistant United States Attorney Sara B. Milstein of the Violent and Organized Crime Section is prosecuting this case.
Garden City Drug Trafficker Sentenced to Six Years in PrisonRead the Press Release
BOISE – Darin Lee Meeks, 50, of Garden City, was sentenced to six years in federal prison based upon his March 2021 guilty plea to distribution of methamphetamine, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Meeks was indicted on the charge by a federal grand jury on June 10, 2020.
According to court records, Meeks is a known associate of the Severely Violent Criminals (SVC) and Aryan Knights (AK) prison gangs. On August 13, 2018, Meeks arranged for an ounce of methamphetamine to be distributed at a park in Nampa. Unknown to Meeks at the time, the buyer was a confidential informant who was working at the direction of the Treasure Valley Metro Violent Crimes Task Force. Later, on November 15, 2019, Meeks again arranged and personally distributed an ounce of methamphetamine to a confidential informant.
Meeks has an extensive criminal history involving crimes of violence and drugs including felony convictions for aggravated assault in 2003, burglary in 1997, and possession of controlled substances in 2010. After serving his prison sentence, Meeks will be on supervised release with the United States Probation Office for four years.
Acting U.S. Attorney Gonzalez credited the cooperative efforts of the Treasure Valley Metro Violent Crimes Task Force, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Meridian Police Department; Caldwell Police Department; Nampa Police Department; Ada County Sheriff’s Office; Canyon County Sheriff’s Office; and Idaho Department of Correction Probation and Parole, which led to charges.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
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Former Owner of Defunct New England Compounding Center Resentenced to 14 Years in Prison in Connection with 2012 Fungal Meningitis OutbreakRead the Press Release
BOSTON – The former owner of the now-defunct New England Compounding Center (NECC) was resentenced today in federal court in Boston in connection with the 2012 nationwide fungal meningitis outbreak. The defendant was resentenced after the First Circuit Court of Appeals affirmed his criminal convictions but vacated his sentence and forfeiture order.
Barry Cadden, 54, previously of Wrentham, was sentenced by U.S. District Court Judge Richard G. Stearns to 174 months in prison. Cadden was also ordered to pay forfeiture of $1.4 million and restitution of $82 million.
Cadden was originally sentenced in June 2017 by Judge Stearns to nine years in prison, three years of supervised release and forfeiture in the amount of $7.5 million after being convicted by a federal jury in March 2017 of racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead.
Co-defendant Glenn Chin, NECC’s former supervisory pharmacist, is scheduled to be resentenced tomorrow by Judge Stearns. Chin was sentenced in January 2018 to eight years in prison, two years of supervised release and ordered to pay forfeiture of $175,000 and restitution in an amount to be determined. In October 2017, Chin was convicted by a federal jury of all 77 counts, including racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead.
In 2017, the government appealed the defendants’ sentences. In July 2020, the First Circuit Court of Appeals vacated the defendants’ sentences, finding that the Court failed to impose applicable sentencing enhancements and erred in its forfeiture rulings. Significantly, the First Circuit held that the patients who were injected with NECC’s contaminated preservative-free methylprednisolone acetate (MPA) may be considered victims of the fraud. According to court documents, more than 100 patients died and approximately 800 patients were sickened as a result of contaminated MPA injections. As a result of the First Circuit’s decision, the defendants’ convictions were affirmed, and their sentences and forfeiture orders were vacated and remanded to the District Court for resentencing.
In 2012, 753 patients in 20 states were diagnosed with a fungal infection after receiving injections of MPA manufactured by NECC, and more than 100 patients died as a result. The outbreak was the largest public health crisis ever caused by a contaminated pharmaceutical drug.
Cadden was responsible for directing and authorizing shipments of contaminated MPA to NECC customers nationwide. In addition, he authorized the shipping of drugs before test results confirming their sterility were returned, never notified customers of nonsterile results and compounded drugs with expired ingredients. Furthermore, certain batches of drugs were manufactured, in part, by an unlicensed pharmacy technician at NECC. Cadden also repeatedly took steps to shield NECC’s operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions. NECC even used fictional and celebrity names on fake prescriptions to dispense drugs, such as “Michael Jackson,” “Freddie Mae” and “Diana Ross.”
Acting United States Attorney Nathaniel R. Mendell; Acting FDA Commissioner Janet Woodcock, M.D.; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Patrick Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Christopher Algieri, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division, made the announcement today. Assistant U.S. Attorneys Amanda P.M. Strachan, Chief of Mendell’s Health Care Fraud Unit, Christopher R. Looney, David G. Lazarus, Chief of Mendell’s Asset Recovery Unit, and Alexandra W. Amrhein prosecuted the case.
Former Louisiana Construction Company Owner Pleads Guilty to Tax FraudRead the Press Release
A Louisiana man pleaded guilty today to conspiracy to defraud the IRS.
According to court documents, from 2011 to at least June 2019, Mathew Reck, of St. Tammany Parish, conspired to defraud the IRS by underreporting his own and others’ individual incomes. With respect to his personal returns, Reck directed his co-conspirator accountant in emails to “get really creative with the 2012 taxes” and to “crush” his 2013 taxes. On his 2012 and 2013 tax returns, Reck underreported the income that he earned from his construction businesses, SES Construction Consulting Group (SES) and Global Technical Solutions (Global), which he co-owned until December 2015.
Reck also conspired with others to defraud the IRS by paying some SES and Global workers “off the books” in cash, by underpaying employment taxes, and by not reporting workers’ full compensations to the IRS. In total, Reck caused a tax loss to the United States of $1,017,024.
Reck is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and the U.S. Attorney’s Office for the Eastern District of Louisiana made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys William Montague and Parker Tobin of the Justice Department’s Tax Division and Assistant U.S. Attorney Nicholas Moses of the Eastern District of Louisiana are prosecuting the case.
Former Louisiana Construction Company Owner Pleads Guilty to Tax FraudRead the Press Release
WASHINGTON – A Louisiana man pleaded guilty today to conspiracy to defraud the IRS.
According to court documents, from 2011 to at least June 2019, Mathew Reck, of St. Tammany Parish, conspired to defraud the IRS by underreporting his own and others’ individual incomes. With respect to his personal returns, Reck directed his co-conspirator accountant in emails to “get really creative with the 2012 taxes” and to “crush” his 2013 taxes. On his 2012 and 2013 tax returns, Reck underreported the income that he earned from his construction businesses, SES Construction Consulting Group (SES) and Global Technical Solutions (Global), which he co-owned until December 2015.
Reck also conspired with others to defraud the IRS by paying some SES and Global workers “off the books” in cash, by underpaying employment taxes, and by not reporting workers’ full compensations to the IRS. In total, Reck caused a tax loss to the United States of $1,017,024.
Reck is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and the U.S. Attorney’s Office for the Eastern District of Louisiana made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys William Montague and Parker Tobin of the Justice Department’s Tax Division and Assistant U.S. Attorney Nicholas Moses of the Eastern District of Louisiana are prosecuting the case.
Former Grass Seed Company Manager Sentenced to Federal Prison for Schemes to Defraud Simplot and Its CustomersRead the Press Release
PORTLAND, Ore.—The former general manager of the Jacklin Seed Company, a Pacific Northwest producer and marketer of grass seed and turfgrass, was sentenced to federal prison today for conspiring to commit wire fraud and money laundering as part of multiple schemes to defraud Jacklin’s former owner, the J.R. Simplot Company, and its customers.
Christopher Claypool, 53, a resident of Spokane, Washington, was sentenced to three years in federal prison and three years’ supervised release.
Under the terms of his plea agreement, Claypool has already paid nearly $8.3 million in restitution and agreed to forfeit nearly $7.8 million in criminally derived proceeds.
As general manager of Jacklin, Claypool oversaw the company’s product sales to domestic and foreign distributors. Jacklin contracted with independent growers in Oregon for the production of proprietary grass seed varieties and fulfilled orders from a distribution facility in Albany, Oregon. Differences in grass seed yield rates resulted in the over-delivery of some varieties and underproduction of others.
According to court documents, at some point between 2013 and 2015, Claypool and other Jacklin employees realized that growers’ preference for higher-yield grasses was creating substantial shortages of lower-yield varieties Jacklin had contracted to deliver to its customers. Claypool and a colleague who oversaw product fulfillment at the company’s Albany distribution facility recognized that these shortages would either cause Jacklin to fail to deliver on its existing contracts or require Jacklin to pay a premium to growers to acquire necessary inventory, substantially eroding company profits. Claypool and his colleague anticipated that either result would negatively affect their careers.
From January 2015 and continuing until at least the summer of 2019, Claypool and his colleague directed Jacklin employees, at the Albany facility and elsewhere, to fulfill customer orders with different varieties of grass seed than the customers had ordered, to conceal such substitutions from the customers, and to invoice the customers as though no substitutions had taken place. Claypool and his colleague referred to this scheme as “getting creative.”
To conceal the unauthorized substitutions, Claypool and his colleague directed Jacklin employees to package the substitute seed varieties with false and misleading labels. They also directed employees to invoice the customers under the original terms of their contracts, notwithstanding the unauthorized substitutions. As a result of this scheme, Simplot has refunded or credited more than $1.5 million to defrauded buyers.
In addition to the undisclosed seed substitutions, Claypool engaged in several other fraudulent schemes while serving as Jacklin’s general manager. In one scheme, he directed an accomplice to create a limited-liability corporation (LLC) to pose as an independent grass seed broker. Claypool and a colleague conspired to route a portion of Jacklin’s overseas sales through a competing grass-seed seller based in Jefferson, Oregon. The company would, in turn, add its own mark-up to the sales and kick back outsized commissions to Claypool through his accomplice’s LLC. From December 2018 through August 2019, Claypool generated more than $369,000 in fraudulent commissions.
In a third scheme, Claypool conspired with the owner of an independent travel agency in Spokane to inflate the purported costs of Claypool’s international business travel. Claypool traveled overseas extensively for business and had authority to approve his own travel expenses. In lieu of using Simplot’s contract travel agency, Claypool booked his flights through the independent travel agent. The agent booked economy and other lower-cost fares for Claypool, but created fake first-class bookings on the most expensive comparable itineraries in order to generate inflated invoices that he transmitted to Simplot, through Claypool, for payment. In total, the agent overbilled more than $500,000 for international airfare, the majority of which Claypool ultimately received in kickbacks from the agent.
In the most lucrative fraud scheme, Claypool directed Simplot’s payment of more than twelve million dollars in “rebates” and “commissions” to entities that were posing as foreign sales partners but were, in fact, fronts for Claypool’s coconspirators in embezzling those funds. The coconspirators then transmitted part of their ill-gotten gains from accounts in Hong Kong to real estate investments in Hawaii under Claypool’s control. Years later, Claypool sold the real estate and wired the proceeds to investment accounts in Spokane as part of an elaborate money laundering operation.
On February 24, 2021, Claypool was charged by criminal information with conspiracy to commit wire fraud and money laundering. On March 15, 2021, he waived indictment and pleaded guilty to all charges.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation and the U.S. Department of Agriculture Office of Inspector General. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Former Genentech Principal Scientist and Her Husband Convicted of Crimes Related to Pilfering Corporate SecretsRead the Press Release
SAN FRANCISCO – Former Genentech Principal Scientist Xanthe Lam, and her husband Allen Lam, pleaded guilty to conspiracy and other charges related to the theft of trade secrets from Genentech for use by other companies, announced Acting United States Attorney Stephanie M. Hinds, Internal Revenue Service ̶ Criminal Investigations, Special Agent in Charge Michael Daniels, and Federal Bureau of Investigation, Special Agent in Charge Craig D. Fair. The pleas were accepted by the Honorable William Alsup, United States Senior District Judge.
According to the plea agreements filed yesterday and made public today, both Xanthe Lam and Allen Lam conspired to commit theft of trade secrets by stealing confidential, proprietary, and trade secret information from Genentech. Specifically, starting in 2009, Xanthe Lam, an experienced and accomplished scientist then working at Genentech, and her husband, Allen Lam, worked as a team to purloin confidential information from within Genentech and to pass the information on to a number of scientists working for Genentech’s competitors. For example, beginning in 2013, Xanthe Lam secretly provided Genentech’s high-quality, confidential, intellectual property to help JHL Biotech, Inc., a biopharmaceutical start-up headquartered in Zhubei, Taiwan, with offices in Wuhan, China, and Rancho Santa Fe, Calif., to cut corners, reduce costs, solve problems, save time, and otherwise accelerate product development timelines. Within JHL Biotech, employees were told to refer to Xanthe Lam as “Allen Lam” and email Xanthe Lam using the email address for Allen Lam to conceal the work Xanthe Lam was doing for the company.
In addition to the conspiracy charge, Xanthe Lam pleaded guilty to one count of conspiracy to commit computer fraud and abuse, one count of conspiracy to make false statements to a government agency, and one count of making false statements to a government agency. Allen Lam also pleaded guilty to four counts of filing false tax returns and one count of conspiracy to make false statements to a government agency.
Judge Alsup accepted the Lams’ guilty pleas and ordered the case adjourned until November 9, 2021, at 1:30 p.m.
The court also may order additional assessments, forfeiture, and restitution; however, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Following nearly three years of cooperation with the government and remedial efforts in connection with its investigation of thefts of trade secrets and wire fraud, JHL Biotech, Inc., now called Eden Biologics, Inc., and Chime Biologics (Wuhan) Co. Ltd., entered into a Non-Prosecution Agreement with the U.S. Attorney’s Office, Northern District of California.
“Defendants Xanthe Lam and Adam Lam have admitted that they used confidential documents and trade secrets stolen from Genentech to aid competitors,” said Acting United States Attorney Hinds. “This United States Attorney’s Office will always aggressively prosecute theft of corporate trade secrets to protect innovation, a crown jewel of our District.”
“Mr. Lam received compensation for his consulting work and failed to report the income he earned for several years on his U.S. Individual Income Tax Return (Form 1040),” said IRS Criminal Investigations, Acting Special Agent in Charge Michael Daniels. “The overarching principle of IRS’ enforcement strategy is simply this: We protect the integrity of the tax system by ensuring everyone pays the right amount of tax.”
“The FBI will not tolerate the stealing of intellectual property and trade secrets to gain an advantage in the private sector,” said FBI Special Agent in Charge Craig D. Fair. “This behavior is contradictory to American values and with our law enforcement partners, we will continue to pursue those who wish to make their profits off the backs of other’s hard work.”
Assistant U.S. Attorneys Sheila A.G. Armbrust, Adam A. Reeves, and Claudia A. Quiroz are prosecuting the case with the assistance of Beth Margen and Morgan Byrne. The prosecution is the result of an investigation by the Internal Revenue Service ̶ Criminal Investigations and the Federal Bureau of Investigation.
Former Casino Employee Sentenced for TheftRead the Press Release
Jackson, Miss. - A former employee of the Pearl River Resort - Silver Star Hotel & Casino was sentenced today to a probation term of five years, and ordered to pay $10,800 in restitution, for theft by an employee of a gaming establishment on Indian lands, announced Acting U.S. Attorney Darren J. LaMarca.
According to court documents, Reginal Brown, 36, was a banquet server at the Silver Star Hotel & Casino in the Pearl River Resort. Between January 2016 and May 2016, Brown used his own password on multiple occasions to take, for himself, approximately $10,800 from the cash recyclers in the facility. Casino management discovered the discrepancy in accounting and on video surveillance of the cash recycler area, then reported Brown to law enforcement. Choctaw Police Department investigators interviewed Brown, who admitted taking the money.
A federal grand jury charged Brown with one count of theft from the Silver Star Casino. He pled guilty in April 2021.
Acting U.S. Attorney Darren J. LaMarca stated, “Federal law imposes severe penalties for crimes committed in licensed gaming establishments. The great potential for misconduct in these settings calls for constant vigilance and self-discipline of those entrusted with the casinos’ operation.”
The case was investigated by the Choctaw Police Department of the Mississippi Band of Choctaw Indians.
The case was prosecuted by Assistant United States Attorneys Theodore Cooperstein and Kevin Payne.
Former CEO and COO of JHL Biotech Charged with Conspiracy to Steal Trade Secrets and Commit Wire Fraud Exceeding $101 MillionRead the Press Release
SAN FRANCISCO – Today, the court unsealed an indictment returned by a federal grand jury in San Francisco charging Racho Jordanov, the co-founder and former Chief Executive Office of JHL Biotech, and Rose Lin, another of the company’s co-founders and former Chief Operating Officer, with conspiracy to commit trade secret theft and wire fraud, international money laundering, and related charges including obstruction of justice, announced Acting United States Attorney Stephanie M. Hinds, Internal Revenue Service ̶ Criminal Investigations, Special Agent in Charge Michael Daniels, and Federal Bureau of Investigation, Special Agent in Charge Craig D. Fair.
According to the indictment, in 2012, Raco Ivanov Jordanov, also known as “Racho” Jordanov, 73, of Rancho Santa Fe, Calif., and Rose Lin, also known as Rose Sweihorn Tong, 72, of South San Francisco, Calif., are alleged to have co-founded JHL Biotech, Inc., a biopharmaceutical start-up headquartered in Zhubei, Taiwan, with offices in Wuhan, China, and Rancho Santa Fe, Calif. JHL Biotech is now known as Eden Biologics, Inc. and Chime Biologics (Wuhan), Ltd. The indictment alleges that Jordanov and Lin, beginning as early as 2008, engaged in a fraudulent scheme to steal thousands of confidential and proprietary documents from Genentech that eventually helped JHL Biotech secretly accelerate its development and production of “biosimilars,” or generic versions of Genentech biologics. Some of the confidential documents stolen from Genentech and obtained by Jordanov and Lin allegedly contained trade secrets.
The indictment alleges that, starting in 2009, Lin recruited an experienced and accomplished scientist then working at Genentech and her husband to work as a team to purloin confidential information from within Genentech. Beginning in 2013, Lin and Jordanov allegedly used confidential information from the husband and wife team and other sources to help JHL Biotech cut corners, reduce costs, solve problems, save time, and otherwise accelerate product development timelines, secretly using Genentech’s high-quality, confidential, intellectual property.
In 2014, as alleged in the indictment, Jordanov and Lin supervised and managed a so-called “conversion” project whereby JHL employees converted confidential Genentech standard operating procedures or “SOPs” into JHL Biotech SOPs. For example, JHL employees engaged in the wholesale cutting and pasting of logos from the confidential documents by simply cutting out Genentech logos and pasting in JHL Biotech logos to make the Genentech SOPs appear, falsely, to be JHL Biotech SOPs. JHL Biotech employees allegedly drafted approximately ninety (90) different SOPs using Genentech documents, many of which were confidential and proprietary. JHL Biotech employees maintained a spreadsheet in which they identified Genentech SOPs that JHL Biotech possessed and tracked the progress to convert these into JHL Biotech SOPs. The widespread use of the stolen Genentech SOPs allegedly saved JHL Biotech thousands of dollars.
To profit from the trove of stolen confidential, proprietary, and trade secret information, Jordanov and Lin, according to the indictment, then carried out a scheme to defraud JHL Biotech’s potential investors and strategic partners. To induce investment, and obtain money for JHL Biotech and themselves, Jordanov and Lin allegedly defrauded investors by concealing the extent to which JHL Biotech used stolen intellectual property to start, accelerate, and conduct its business. The indictment alleges that, in late 2016, JHL Biotech entered a strategic partnership with Sanofi S.A., a French multinational pharmaceutical company headquartered in Paris, France, to manufacture and distribute biosimilars in China. As part of the agreement, in December 2016, Sanofi allegedly paid $101 million to JHL Biotech, using foreign and interstate wires to carry out the corporate transaction. This cash payment allegedly was part of a strategic relationship worth potentially $337 million to JHL Biotech. To induce Sanofi’s payment of $101 million in cash, Jordanov allegedly signed representations and warranties that falsely stated that JHL Biotech’s knowledge, research, development, use, and manufacture, of certain biosimilars had been conducted without infringing or misappropriating intellectual property from any third party. Jordanov also allegedly made false and misleading statements about consultants used by JHL Biotech and otherwise concealed from Sanofi the secret work of the Genentech insider for JHL Biotech. In 2019, following the public disclosure of some of the alleged criminal conduct, the value of JHL Biotech, once as high as approximately $916 million, allegedly crashed.
“According to the indictment, JHL Biotech was a nearly $1 billion Taiwanese unicorn built on a foundation of lies,” Acting United States Attorney Hinds stated. “The indictment alleges defendants used confidential documents and trade secrets stolen from Genentech to build a competitor and enrich themselves. This kind of complex intellectual property theft and fraud not only harms victims, it threatens the intellectual property of an industry with strategic importance to the United States. This United States Attorney’s Office will always aggressively prosecute corporate espionage to protect innovation, a crown jewel of our District.”
“The indictment of these two executives alleges the misuse of their positions of trust, within their corporations, to commit financial fraud,” said IRS Criminal Investigation, Acting Special Agent in Charge Michael Daniels. “No matter your career or position we will investigative financial crime wherever it is conducted. We will continue to work with our law enforcement partners to bring this investigation to a thorough and complete conclusion.”
“As alleged in the indictment, the defendants in this case increased their wealth by cutting corners and stealing valuable information from a competitor.” said FBI San Francisco Special Agent in Charge Craig D. Fair. “Rather than excelling at their own scientific research, the defendants instead attempted to excel at theft and fraud.”
The indictment charges Jordanov and Lin with violations of conspiracy to commit trade secret theft and wire fraud, international money laundering, conspiracy to obstruct justice, theft of trade secrets (Jordanov only), and false statements (Lin only). An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face the following maximum statutory sentences:
Raco Ivanov Jordanov
Charge
Maximum Penalties (per count)
Conspiracy to Commit Theft of Trade Secrets and Wire Fraud, 18 U.S.C. § 371
Five years of imprisonment; $250,000 fine; three years of supervised release
Theft of Trade Secrets, Aid and Abet, 18 U.S.C. §§ 1832(a)(1)(2)(3) and 2 (two counts)
Ten years of imprisonment, $250,000 fine, three years of supervised release
Wire Fraud, Aid and Abet, 18 U.S.C. §§ 1343 and 2 (three counts)
Twenty years of imprisonment; $250,000 fine; three years of supervised release
International Money Laundering, 18 U.S.C. § 1956(a)(2)(A) (nine counts)
Twenty years of imprisonment; $500,000 fine; three years of supervised release
Conspiracy to Obstruct Justice, 18 U.S.C. § 371
Five years of imprisonment;
$250,000 fine; three years of supervised release
Rose Lin
Conspiracy to Commit Theft of Trade Secrets and Wire Fraud, 18 U.S.C. § 371
Five years of imprisonment; $250,000 fine; three years of supervised release
Wire Fraud, Aid and Abet, 18 U.S.C. §§ 1343 and 2 (three counts)
Twenty years of imprisonment; $250,000 fine; three years of supervised release
International Money Laundering, 18 U.S.C. § 1956(a)(2)(A) (five counts)
Twenty years of imprisonment; $500,000 fine; three years of supervised release
Conspiracy to Obstruct Justice, 18 U.S.C. § 371
Five years of imprisonment;
$250,000 fine; three years of supervised release
False Statements to a Government Agency, 18 U.S.C. § 1001(a)(2)
Five years of
imprisonment; $250,000 fine; three years of supervised release
The court also may order additional assessments, forfeiture, and restitution; however, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This morning, Jordanov and Lin made their initial appearances in federal court in San Francisco, where they were arraigned on the indictment and entered pleas of not guilty to all charges. The defendants each were placed on pretrial release with secured bonds in the amount of $1,000 and an agreement to surrender their passports. Jordanov and Lin are next scheduled to appear at 2:00 p.m. on August 24, 2021 for an initial appearance before the Honorable William Alsup, U.S. Senior District Judge.
Assistant U.S. Attorneys Sheila A.G. Armbrust, Adam A. Reeves, and Claudia A. Quiroz are prosecuting the case with the assistance of Beth Margen and Morgan Byrne. The prosecution is the result of an investigation by the Internal Revenue Service ̶ Criminal Investigations and the Federal Bureau of Investigation.
Former "Chairman" of Massachusetts Latin Kings Crown Council Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – The former Chairman of the Crown Council for the Almighty Latin King and Queen Nation (Latin Kings) in Massachusetts was sentenced today on racketeering charges.
Gregory Peguero-Colon, a/k/a “King Trece,” 48, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to three years in prison and three years of supervised release. On March 9, 2021, Peguero-Colon pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
Peguero-Colon served as the Chairman of the Crown Council, acting as an independent advisor to the State Leadership team and presiding over “trials” for gang members that violated the Latin Kings code of conduct. Peguero-Colon also kept and maintained a spreadsheet identifying individuals who were in bad standing with the gang for various reasons, including whether individuals had provided information to law enforcement or committed “treason” against the gang. Peguero-Colon disseminated this spreadsheet to the Latin Kings members, and multiple people on the spreadsheet had in fact been targeted for violence by the Latin Kings.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Peguero-Colon is the 34th defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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.
Final Defendant Pleads Guilty in Drug Conspiracy Involving Aryan CircleRead the Press Release
A Louisiana man pleaded guilty Tuesday to conspiring with members of the Aryan Circle (AC) and others to sell methamphetamine. He is the fourth and final defendant charged in the conspiracy to enter a guilty plea.
According to court documents, Shane Louque, 46, of Gonzales, purchased substantial quantities of methamphetamine – at least two kilograms – from an AC member based in the Houston area over a number of occasions in 2016. Louque then personally distributed the methamphetamine to other buyers in Louisiana. While Louque himself is not known to be an AC member, the drug conspiracy was uncovered as part of Operation Noble Virtue, an investigation into the AC that has targeted AC leadership. Previously entering guilty pleas as part of this conspiracy were Jeremy Klintman, 38, of Texas; Eulalio Torres-Cadenas, 43, of Mexico; and Breanna Beckley, 40, of Texas.
Louque pleaded guilty to conspiracy to possess with intent to distribute at least 500 grams of a mixture or substance containing methamphetamine, a Schedule II controlled substance, which carries a mandatory minimum term of imprisonment of 10 years and a maximum prison sentence of life. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas made the announcement.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. Trial Attorneys Alexander Gottfried and Bethany Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Christopher Rapp for the Eastern District of Texas are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Federal Charges Brought in Fentanyl CasesRead the Press Release
LITTLE ROCK—A federal grand jury has charged two Little Rock men with crimes involving fentanyl. Jemel Foster, 31, and Russell Stacks, 49, were indicted on July 6, 2021, in separate cases that both include charges of possession of fentanyl with intent to distribute, possession of a firearm by a felon, and possession of a firearm in furtherance of a drug trafficking crime.
Foster, who was previously charged in January 2021, faces a new charge: distribution of fentanyl resulting in death. At a bond hearing on February 16, 2021, prosecutors presented information about the overdose death of an individual referred to as K.W., and Foster was detained to await his trial.
Stacks, who faces a charge of possession of methamphetamine with intent to distribute in addition to the fentanyl and gun charges, was initially charged in a complaint on June 7, 2021, and indicted yesterday. While conducting surveillance during the course of investigating Stacks, a Drug Enforcement Administration (DEA) special agent encountered an individual who collapsed from a fentanyl overdose. The agent conducted CPR, issued Narcan, and resuscitated the individual, who had stopped breathing.
Foster and Stacks will appear for arraignment later this month before United States Magistrate Judge Jerome Kearney. The DEA is conducting the separate investigations. Assistant United States Attorney Chris Givens is prosecuting the cases.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Essex Man Pleads Guilty to Drug Trafficking Conspiracy and Distribution of Cocaine BaseRead the Press Release
Baltimore, Maryland – Quon’te Moore, age 22, of Essex, Maryland, pleaded guilty today to conspiracy and distribution of cocaine base.
The guilty plea 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 guilty plea, from December 2019 to September 2020, Moore conspired with others to distribute 28 grams or more of cocaine base and to possess with the intent to distribute those drugs in the area of 2600 block of Greenmount Avenue in Baltimore, Maryland. Specifically, Moore’s drug trafficking organization operated a “drug shop” in the area of 2600 Greenmount Avenue and 400 East Lorraine Avenue in Baltimore, Maryland.
Members of the organization, including Moore, sold cocaine base to two ATF confidential informants on several occasions between December 2019 and September 2020.
In one instance, an ATF confidential informant purchased two clear vials containing cocaine base from Moore. The informant provided the substance to ATF agents for testing at the Baltimore Drug Analysis Unit, which confirmed the presence of cocaine base.
Moore agrees that is was reasonably foreseeable to him that members of the conspiracy would distribute 28 grams or more of cocaine base. He also agrees that a firearm was possessed as part of and in furtherance of the conspiracy.
Moore and the government have agreed that, if the Court accepts the plea agreement, Moore will be sentenced to 42 months in federal prison. U.S. District Judge Catherine C. Blake will schedule the sentencing hearing at a later date.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Zachary Stendig, Lindsey McCulley, and Special Assistant United States Attorney Lindsay DeFrancesco, who are prosecuting the case.
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Defendant Arrested for Selling Xanax, Heroin, and Fentanyl Causing the Death of A 20-Year-Old WomanRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced that LUIS LEE was charged in a criminal complaint unsealed today in Manhattan federal court with narcotics distribution resulting in the death of Pathjrie Roman, who died two days before her 21st birthday. LEE was arrested today and will be presented this afternoon before United States Magistrate Judge James L. Cott.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Luis Lee peddled a lethal combination of drugs that caused the death of Pathjrie Roman. Working with the NYPD, we will continue to combat the epidemic of lethal opioids.”
NYPD Commissioner Dermot Shea said: “The NYPD continues to work to end the trafficking of illegal opioids and bring to justice those who profit from their distribution. We commend and thank the detectives and the attorneys of the U.S. Attorney’s Office for the Southern District whose hard work resulted in this arrest.”
As alleged in the Complaint[1]:
On or about September 18, 2020, Pathjrie Roman contacted LEE on Instagram and asked for Xanax and a depressant, or a “downer,” of which heroin is a type. That evening, LEE met Roman outside her apartment in the Bronx and delivered the Xanax and heroin. The heroin, however, was mixed with fentanyl. LEE’s meeting with Roman was corroborated by their contemporaneous Instagram messages, by LEE’s cellphone location, by building surveillance, and by witness information.
The next day, September 19, 2020, NYPD and emergency medical personnel found Roman deceased at her apartment. Following an autopsy, the New York City Medical Examiner determined that Roman died of acute intoxication from the combined effects of fentanyl, acetyl fentanyl, heroin, and alprazolam (generic Xanax). Hidden inside Roman’s phone case were four glassines containing residue of fentanyl, acetyl fentanyl, and heroin.
On or about September 20, 2020, another Instagram user told LEE that Roman had died. Within 24 hours, LEE deleted the Instagram account that he had used to communicate with Roman.
On or about November 11, 2020, NYPD personnel executed a search of LEE’s bedroom and recovered 12 glassines matching the appearance of the glassines inside Roman’s phone case. The glassines in LEE’s bedroom contained fentanyl.
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LUIS LEE, 26, of New York, New York, is charged with narcotics distribution resulting in death, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison.
The minimum and maximum potential sentences described above are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the assigned judge.
Ms. Strauss praised the outstanding investigative work of the NYPD.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Alexander Li is in charge of the prosecution.
The charge against the defendant is merely an accusation, and he is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the defendants charged in the Complaint.
Columbus man pleads guilty to invading homes of Dayton-area drug dealersRead the Press Release
DAYTON, Ohio – A Columbus, Ohio, man pleaded guilty in federal court today to his role in multiple home invasions in the greater Dayton region.
William Anthony-Lee Baylor, 28, pleaded guilty to one count of conspiracy to violate the Hobbs Act.
According to court documents, Baylor, co-defendant Kieran Chandre Furnace and others conspired to commit home invasions of Dayton-area drug dealers.
Baylor admitted to taking part in armed robberies of drug dealers to steal from their illicit drug inventories and cash proceeds of drug dealing. The co-conspirators also stole vehicles, jewelry, clothing, shoes and firearms.
For example, in January 2019, Baylor acknowledged that he and others forced entry into a residence in Trotwood. While inside the home, defendants bound up the ankles and wrists of two individuals, forced them to lie face down on the floor, and brandished firearms towards the individuals.
As part of Baylor’s global plea agreement, he also admits his guilt to five local charges in Montgomery County Court of Common Pleas: two counts of aggravated burglary, two counts of theft and one count of kidnapping.
Baylor faces up to 20 years in prison on his federal charge. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Charges remain pending against Furness, who is alleged to have invaded at least five Dayton-area homes as part of this conspiracy.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Montgomery County Sheriff Rob Streck; Trotwood Police Chief Erik Wilson; and Montgomery County Prosecutor Mathias H. Heck, Jr. announced the plea entered into today before Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorney Dwight K. Keller is representing the United States in this case.
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Coffee County man sentenced to federal prison for meth distributionRead the Press Release
BRUNSWICK, GA: A Coffee County man who operated a pill factory was sentenced to more than a decade in prison for distribution of methamphetamine.
Demetrius Brown, a/k/a “Jersey,” 43, of Douglas, Ga., was sentenced to 151 months in federal prison after pleading guilty to Distribution of a Mixture or Substance Containing a Detectable Amount of Methamphetamine, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Brown to serve three years of supervised release after completion of his prison term. There is no parole in the federal system.
“Meth is poison, and those who would seek to profit from distributing it in our neighborhoods will be held accountable,” said Acting U.S. Attorney Estes. “Our law enforcement partners, particularly the Coffee County Sheriff’s Office, have made their community a safer place by taking Demetrius Brown off the streets.”
The investigation of Brown began in 2019 when the Coffee County Drug Unit determined Brown was selling pills purportedly containing ecstasy. Law enforcement conducted two controlled purchases before executing a search warrant at Brown’s home, discovering pills labeled “Ecstasy” that contained methamphetamine, a pill press, other materials used for manufacturing methamphetamine pills, and four firearms.
Brown previously was convicted of multiple felonies, including assault on a law enforcement officer and heroin distribution in a school zone – all occurring in New Jersey prior to his relocation to south Georgia.
“We hope the sentence of Demetrius Brown will serve as a major wake-up call to those attempting to manufacture and distribute illegal drugs in Coffee County,” Sheriff Doyle Wooten stated. “We are actively partnering with state and federal officials and law enforcement agencies to aggressively target the sources of drug distribution in our area, and we will prosecute these cases to the fullest extent the law allows.”
“This case is the product of a collaborative effort on the part of ATF and Coffee County Sheriff’s Office to investigate the perpetrator of violent crime,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “This sentence will ensure the incarceration of a dangerous criminal.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Coffee County Sheriff’s Office and the Coffee County Drug Unit, and prosecuted for the United States by Assistant U.S. Attorney John P. Harper III.
Cleveland man admits to role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Willie Johnson, of Cleveland, Ohio, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Johnson, age 37, pleaded guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin within 1000 feet of a Protected Location.” Johnson admitted to working with someone to distribute heroin near Luau Manor, a housing facility owned by a public housing authority, in April 2020.
Johnson faces at least one and up to 40 years of incarceration and a fine of up to $2,000,000. 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. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. Magistrate Judge James P. Mazzone presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Cambridge Woman Indicted for Social Security and Welfare FraudRead the Press Release
BOSTON – A Cambridge woman was arrested today in connection with fraudulently receiving Social Security disability benefits, Supplemental Nutrition Assistance Program (SNAP) benefits and Section 8 housing assistance.
Malisha Pitt, 49, was indicted on three counts of theft of public funds. She will make an initial appearance before U.S. District Court Magistrate Judge Dein this afternoon.
According to the indictment, over a period of approximately 13 years, Pitt allegedly stole Social Security benefits and Section 8 housing assistance benefits. In addition, Pitt allegedly stole SNAP benefits (previously known as Food Stamps) over a period of more than three years.
The charge of theft of public 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, whichever is greater. 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; Jermaine Jack, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Burley Man Ordered to Pay over $79,000 in Restitution for Causing Five Fires on BLM LandRead the Press Release
POCATELLO – Scott Halford, 50, of Burley, was sentenced in U.S. District Court for causing a fire, other than a campfire or the industrial flaring of gas, to be ignited by any source, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. U.S. Magistrate Judge Candy W. Dale ordered Halford to serve six months of home confinement, five years of probation, and pay $79,800.68 in restitution.
According to court records, Halford started five fires in the Milner Recreation Area on Bureau of Land Management (BLM) land west of Burley. The fires burned hundreds of acres of grass and brush. Investigation into the fires determined Halford was in the vicinity of all five fires based on surveillance photographs and witness statements. Halford was photographed driving towards or away from the origin area of two fires within minutes of the fires being reported. Halford admitted in court that he caused the fires.
“This is a reminder that the public has a major role to play in fire safety,” said Acting U.S. Attorney Gonzalez. “Everyone must remain vigilant, especially during our extended fire season. We are surrounded by public lands, many acres of which are arid. Cheatgrass is everywhere. It is a fuel that creates dangerous fire conditions, especially in summer. Even lawfully minded citizens need to be careful of setting accidental fires,” he added before crediting the cooperative efforts of the BLM and the Cassia County Sheriff's Office, which led to charges.
Over the last three years, a total of more than 1,900 human-caused wildfires have burned more than 500,000 acres in Idaho according to National Interagency Fire Center statistics. So far in 2021, more than 300 human-caused wildfires have burned more than 8,800 acres of land in the state.
Federal and state land management agencies in Idaho are urging the public to take all precautions to prevent human-caused wildfires, and property owners to take steps to reduce the risk of wildfire to their homes and land, in the face of extreme statewide conditions outlined by the National Interagency Fire Center.
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Brooklyn Man Convicted of Kidnapping, Extortion and Other Crimes Related to Commercial Driver License Cheating SchemeRead the Press Release
A federal jury in Brooklyn today convicted Akmal Narzikulov of all eight counts of a superseding indictment charging him with conspiracy to unlawfully produce identification documents, conspiracy to commit kidnapping, kidnapping, conspiracy to commit Hobbs Act extortion and Hobbs Act extortion relating to a scheme to assist cheating by applicants for commercial driver licenses administered by the New York Department of Motor Vehicles (“DMV”) and licenses issued by the New York City Taxi and Limousine Commission (“TLC”). Narzikulov was also convicted of using a firearm in connection with the charged extortion and conspiracy to commit witness tampering. The verdict followed a two-week trial before United States District Judge Brian M. Cogan.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, announced the verdict.
“With the defendant’s conviction, he is held accountable for a long list of crimes, including conspiring to engage in a brazen cheating scheme, kidnapping, extortion, witness tampering and threatening a co-conspirator at gunpoint,” stated Acting U.S. Attorney Kasulis. “I commend our prosecutors for laying out the detailed road map that led to today’s verdict and for bringing justice to the individuals who were harmed by the defendant’s greed and senseless violence.” Ms. Kasulis expressed her grateful appreciation to the Federal Bureau of Investigation, New York Field Office, for their outstanding investigative work on the case.
As proven at trial, Narzikulov and other co-conspirators assisted applicants for commercial driver licenses (“CDLs”) in cheating on tests administered by the DMV in exchange for cash. Using wireless communication devices hidden inside the applicants’ clothing, Narzikulov’s co-conspirators transmitted the correct answers to earbuds used by the applicants as they took written exams at various DMV locations. For example, after making the illicit payment to the defendant and his co-conspirators, the license applicant was provided a T-shirt with a tiny hole cut out in the middle. A smartphone was attached inside the shirt with the camera aimed through the hole so the co-conspirators could view the test questions and send the answers to the applicant. The defendant and his co-conspirators used the same method to assist applicants in cheating on written tests required to obtain licenses from the TLC.
On March 28, 2019 in Brooklyn, Narzikulov, co-defendant Sherzod Mukumov and an unapprehended co-conspirator kidnapped an individual (“the Victim”) who had withdrawn from the license cheating scheme. Surveillance video showed the Victim being shocked and subdued with a taser, and then being dragged to a waiting car by Narzikulov and the co-conspirator.
On the same night as the kidnapping, Narzikulov threatened another co-conspirator at gunpoint in an attempt to extort money from him and the Victim.
As charged in the second superseding indictment, Narzikulov offered thousands of dollars to key witnesses against him to travel overseas and remain there until after the defendant’s trial was over. When Narzikulov was arrested in April 2019, FBI special agents recovered a 9mm handgun, approximately $300,000 in cash and numerous identification documents belonging to other individuals from inside a closet in the defendant’s apartment.
In November 2019, Mukumov pleaded guilty to conspiracy to commit kidnapping and is awaiting sentencing. In January 2020, Jasur Kamolov pleaded guilty to conspiracy to produce false identification documents and is awaiting sentencing. In November 2020, Murodjon Sultanov pleaded guilty to witness tampering and was sentenced in April 2021 to a term of 24 months’ imprisonment. In May 2021, Firuz Juraev pleaded guilty to Hobbs Act extortion conspiracy and conspiracy to tamper with witnesses and is awaiting sentencing.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Turner Buford and Special Assistant United States Attorney Virginia Nguyen are in charge of the prosecution with assistance from paralegal Shivani Parshad.
The Defendants:
AKMAL NARZIKULOV
Age: 37
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-223 (BMC)
Boston Man Pleads Guilty to Marijuana and Tax OffensesRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in federal court in Springfield to marijuana and tax offenses.
Zachary Sweener, 35, pleaded guilty to one count of conspiracy to distribute marijuana, one count of possession with intent to distribute marijuana, one count of filing a false tax return and two counts of failing to file tax returns. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Oct. 28, 2021.
Sweener admitted that from 2014 to 2017, he conspired with others to distribute marijuana. On Jan. 10, 2017, a search of Sweener’s residence recovered 1,000 marijuana vape oil pens and over $90,000 in cash, two gold bars and other luxury items. Sweener also admitted that he filed a false income tax return for 2013 by substantially under-reporting his income and failed to file tax returns for tax years 2014 and 2015, despite earning over $250,000 in each of those years. For tax years 2013 through 2015, Sweener failed to report over $625,000 in income and therefore failed to pay over $150,000 in federal income taxes.
The charges of conspiracy to distribute marijuana and possession with intent to distribute marijuana each provide for a sentence of up to five years in prison, a lifetime of supervised release, a fine of $250,000 and forfeiture. The charge of filing a false tax return provides for a sentence of up to three years in prison, three years of supervised release and a fine of $250,000. The charge of failing to file a tax return provides for up to one year in prison, one year of supervised release and a $100,000 fine. 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; Acting Assistant Attorney General David A. Hubbert of the Department of Justice’s Tax Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office and Trial Attorney Christopher O’Donnell of the Justice Department’s Tax Division are prosecuting the case.
Bloomington Man Sentenced for Child Pornography ChargeRead the Press Release
INDIANAPOLIS – A Bloomington man was sentenced to 8 years in prison for conspiracy to transport child pornography. He will also serve 10 years of supervised release and was ordered to pay $5,000 in restitution to the minor victim.
According to court documents, Corey Taylor-Simpson, 33, knowingly conspired with at least one other person to transport child pornography using the internet. Between September 1, 2019, and November 14, 2019, Taylor-Simpson learned the minor victim was creating sexually explicit content and distributing it online for monetary compensation using social media platforms. Taylor-Simpson facilitated payments and money transfers between the online purchasers and the minor victim, provided the minor victim with a cell phone and internet access, and encouraged the minor victim to engage in the conduct because he needed money.
“Society rightfully expects all of us to protect the children of our communities, said Acting U.S. Attorney John E. Childress. “In contrast, this defendant chose to viciously exploit a minor child, not only failing to meet any standards of decency or humanity but choosing instead to inflict significant pain and suffering on a vulnerable victim. My office will pursue anyone capable of such cruelty until justice is served.”
“Distributing child pornography re-victimizes our children every time it is passed from one person to another. This sentence sends a clear message that adults who sexually exploit minors and traffic such images for their own monetary gain will be identified and held responsible for their actions,” said FBI Indianapolis Special Agent in Charge Paul Keenan.
The case was investigated by the Federal Bureau of Investigation, Bloomington Police Department, and the Indiana State Police Cyber Unit.
Assistant United States Attorney Kristina Korobov prosecuted the case.
This case was 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 U.S. Attorneys’ Offices and the 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
Augusta commissioner charged with destroying records, lying to federal investigatorsRead the Press Release
USA v SIAS indictment USA v SIAS penalty certification AUGUSTA, GA: An elected official in the Augusta city government is named in a two-count federal indictment charging him with destroying records in a federal investigation, and lying to federal investigators researching the case.
Sammie Lee Sias, 66, of Hephzibah, Ga., who serves as District 4 commissioner on the Augusta Commission, is charged with Destruction, Alteration, of Falsification of Records in Federal Investigations; and False Statement or Representation Made to a Department or Agency of the United States, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The charges carry a maximum statutory penalty of up to 20 years in federal prison, along with substantial financial penalties and up to five years of supervised release following completion of any prison term. There is no parole in the federal system.
“Federal investigations play a significant oversight role in maintaining integrity and transparency from elected officials and in government agencies at all levels,” said Acting U.S. Attorney Estes. “We commend our law enforcement partners in the FBI and GBI for their diligence in seeking timely and accurate information from those who are chosen to serve the taxpayers of our communities.”
As outlined in Count One of USA v. Sias, the indictment alleges that on or about Aug. 5, 2019, Sias “did knowingly alter, destroy, mutilate, conceal, and coverup records, documents and other objects, to wit, digital files belonging to Sandridge Community Association (SCA), which included invoices, spreadsheets, work orders, payments, agendas, minutes, financial reports and other documentation of Jamestown Community Center (Jamestown), Jamestown Special Purpose Local Option Sales Tax (SPLOST), SCA Board of Directors, SCA Summer Camp, with the intent to impede, obstruct, and influence the investigation and proper administration of a federal criminal grand jury investigation.”
Subsequently, Count Two alleges that on or about Aug. 9, 2019, Sias “did willfully and knowingly make a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the Department of Justice, an agency of the United States,” when Sias told an FBI special agent that he had provided all electronic and paper files in his possession related to the investigation.
Arraignment on the charges has not yet been scheduled.
“The alleged cover up was not only a violation of the oath taken by this elected official, but a theft of the public’s trust,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Public corruption is one of the FBI’s top priorities and we will do everything in our power to pursue officials who abuse their positions.”
“Elected officials must uphold the public’s trust,” said Georgia Bureau of Investigation Director Vic Reynolds. “The GBI is committed to working with federal partners to hold accountable those who would violate that trust.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and the GBI, and prosecuted for the United States by Assistant U.S. Attorney and Deputy Criminal Chief Patricia G. Rhodes and Assistant U.S. Attorney Tara M. Lyons.
Arlington Doctor Convicted in Pill Mill CaseRead the Press Release
An Arlington physician has been convicted of drug crimes, announced Acting U.S. Attorney Prerak Shah.
Following five days of trial, a federal jury convicted physician Clinton Battle, 68, of one count of conspiracy to distribute controlled substances and one count of distribution of a controlled substance.
According to evidence presented at trial, Dr. Battle routinely issued prescriptions for controlled substances – including hydrocodone, alprazolam, acetaminophen with codeine, tramadol, and phentermine – outside the usual course of professional practice and without a legitimate medical purpose.
At time, he issued prescriptions for controlled substances without conducting any medical examination at all, sometimes telling office staff to issue prescriptions for whichever controlled substance the patient wanted. He also issued prescriptions for friends or family members with whom he had no physician-patient relationship.
“Dr. Battle and his coconspirators knowingly propagated prescription drug abuse by dispensing powerful painkillers to individuals with no need for them,” said Acting U.S. Attorney Prerak Shah. “The U.S. Attorney’s Office is proud to partner with the DEA and other law enforcement agencies to stop unscrupulous pill pushers like Dr. Battle in their tracks.”
“As we continue to lose lives by the misuse and abuse of prescription drugs, we look to our medical professionals for sound guidance, professionalism, and integrity,” stated DEA Dallas Special Agent in Charge Eduardo A. Chávez. “Dr. Battle and his conspirators broke that oath for one sole purpose: greed. Today’s conviction is a testament to the work of our investigators, prosecutors, and law enforcement partners who will continue to protect the lives of our loved ones.”
At trial, one of Dr. Battle’s former employees testified that she, her husband, and Dr. Battle agreed that Dr. Battle would provide the employee’s husband with illegal controlled substance prescriptions in exchange for cocaine. In addition to cocaine, the evidence also showed that Dr. Battle would receive money in the form of fees paid by “patients” of $200 for an initial visit and $80 for return visits in exchange for controlled substance prescriptions.
Dr. Battle also allowed his nurse practitioner, co-conspirator Donna Green, to use his DEA registration number and medical credentials to issue prescriptions for controlled substances, despite knowing that Ms. Green was not legally authorized to issue such prescriptions.
On the morning trial was set to begin, Ms. Green pled guilty to one count of acquiring a controlled substance through fraud.
Throughout the course of the five-year conspiracy, Dr. Battle issued more than 50,000 controlled substance prescriptions, 17,000 of which were for the powerful opioid hydrocodone.
Dr. Battle faces up to 15 years in federal prison. A sentencing hearing has been set for October 28, 2021.
The Drug Enforcement Administration’s Dallas Field Division, the U.S. Department of Labor, the U.S. Postal Service Office of Inspector General, IRS – Criminal Investigations, and the Texas Department of Insurance conducted the investigation. Assistant U.S. Attorneys Matthew Weybrecht and Jay Weimer are prosecuting the case with the help of their appellate liaison, Assistant U.S. Attorney Leigha Simonton. U.S. District Judge Mark Pittman presided over the trial.
Albion Man Sentenced to over 21 Years in PrisonRead the Press Release
FORT WAYNE-Chad Fulk, 40, of Albion, Indiana was sentenced before United States District Court Judge Holly A. Brady following his plea of guilty to possessing with intent to distribute 50 grams or more of methamphetamine, announced Acting United States Attorney Tina L. Nommay.
Fulk was sentenced to 262 months in prison followed by 5 years of supervised release.
According to documents filed in the case and information presented at sentencing, on September 23, 2017, Mr. Fulk possessed with intent to distribute 50 grams of more of methamphetamine. Mr. Fulk led Fort Wayne Police Department officers on a high-speed chase in Fort Wayne, and he was apprehended after a traffic accident. As part of the plea agreement, Mr. Fulk was ordered to pay restitution for damage caused by the accident.
This case was investigated by the Drug Enforcement Administration, with the assistance of the Fort Wayne Police Department, the LaGrange County Sheriff’s Department, and the LaGrange Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
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AAR Corp. Settles False Claims Act Investigation for $11 MillionRead the Press Release
WASHINGTON – AAR Corp., located in Wood Dale, Illinois, and its subsidiary, AAR Airlift
Group Inc. (Airlift), located in Melbourne, Florida, have agreed to pay the United
States
$11,088,000 to resolve allegations that they violated the False Claims Act in connection with aircraft maintenance services performed by Airlift on two United States
Transportation Command (USTRANSCOM) contracts.The allegations involve helicopters that Airlift owned and maintained for use in transporting Department of Defense (DoD) cargo and personnel in support of DoD missions in
Afghanistan and Africa. The settlement resolves allegations that Airlift knowingly failed to maintain nine aircraft in accordance with contract requirements, and that because of this failure, the helicopters were not airworthy and should not have been certified by Airlift as “fully mission capable.”AAR and Airlift have also agreed to pay $429,273.69 to resolve a separate Federal
Aviation Administration (FAA) matter citing certain deficiencies in Airlift’s helicopter maintenance.“The knowing failure to comply with contractual obligations is unacceptable, particularly when such violations raise safety concerns” said Acting Assistant Attorney General Brian M. Boynton for the
Justice Department’s Civil Division. “Today’s settlement reaffirms that the government will hold contractors to the quality and safety standards in their contracts that are intended to protect our men and women in uniform.”“Defense contracting is a special trust because it supports the service members who protect our nation’s interests around the world. Whenever a military contractor cuts corners, it presents not only a possible fraud against taxpayers but also a potential safety hazard to our service members,” said Steven D. Weinhoeft, U.S. Attorney for the Southern District of Illinois. “The settlement announced today addresses both of those concerns. I am especially grateful to my staff, the many dedicated agents who worked on this matter, and the witnesses who came forward.”
“Our military is entitled to rely on high level contractor performance when it procures essential services like those at issue here,” said Acting U.S. Attorney Karin Hoppmann for the
Middle District of Florida. “We are grateful for the diligent and collaborative work put into this investigation by the Southern District of Illinois, the Department of Justice Civil
Frauds Section, and all of the investigative agencies who supported these cases.“Failure to properly maintain aircraft is unacceptable under any circumstances, but it’s especially egregious in a war zone, where the lives of America’s warfighters are on the line,” said John F.
Sopko, Special Inspector General for Afghanistan Reconstruction. “I’m proud of the work of SIGAR’s special agents – in Afghanistan and the United States – whose collaboration brought this case to a successful conclusion.”“The Department of the Air Force Office of Special Investigations (OSI) commends the complainant for coming forward, which allowed us and our joint investigative partners to vigorously protect the DoD’s procurement process, preserve the military’s ability to carry out its warfighting mission and ensured the wrongdoers were held accountable,” said Special Agent in
Charge Nicholas J. Groesbeck of the OSI Procurement Fraud Detachment 4, Wright-Patterson AFB, OH.“This case demonstrates the commitment of the Defense Criminal Investigative Service (DCIS), along with our partner agencies, to aggressively go after those who disregard and ignore critical safety and contractual specifications on Department of Defense contracts,” said Acting Special Agent in
Charge Gregory P. Shilling of the DCIS Southwest Field Office. “Today’s resolution highlights the culmination of investigative efforts to hold those who supply the Department of Defense accountable for their product and actions.”“It is unacceptable that anyone would bypass contractual agreements and most importantly safety guidelines meant to ensure the wellbeing of our American service men and women,” said
Christopher Grey, spokesperson for the U.S. Army Criminal Investigation Command (CID). “We will continue to aggressively investigate allegations such as this and work closely with our law enforcement partners to bring a successful resolution.”“The failure to perform critical maintenance to Department of Defense aircraft poses a grave and unnecessary threat to our nation’s military readiness,” said Special Agent in Charge
Michael DeFamio of the Naval Criminal Investigative Service (NCIS) Central Field Office. “NCIS and our federal law enforcement partners remain committed to fully investigating any and all allegations of contract fraud that compromises the safety of our service members and wastes American taxpayer money.”“Those certified to perform critical safety aircraft inspections and maintenance work are expected to adhere to aviation regulations in order to ensure that safety is not compromised,” said Special
Agent-in-Charge Todd Damiani of the U.S. Department of Transportation Office of
Inspector General, Southern Region. “The settlement reached today clearly demonstrates that we will vigorously pursue those who choose profits over the quality and integrity of the work they are contracted to perform.”“Improperly maintaining aircraft creates a safety risk that we absolutely will not tolerate,” said
FAA Administrator Steve Dickson. “Today’s agreement makes clear that disregard for maintenance requirements is unacceptable.”The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Christopher Harvey, a former Airlift employee. The act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned U.S. ex rel. Harvey v. AAR Corp., et al., No. 3:15-cv-00390 (S.D. Ill.). Mr. Harvey will receive $2,162,160 of the False Claims Act settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil
Division’s Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Southern District of Illinois, and the U.S. Attorney’s Office for the Middle District of
Florida, with assistance from USTRANSCOM, the FAA, Air Force OSI, DCIS, NCIS, Army CID, Department of Transportation Office of the Inspector General, the Defense Contract Audit Agency (DCAA), and
SIGAR.The case was investigated by Trial Attorney Elspeth A. England and Assistant U.S. Attorneys Nathan
D. Stump and Laura J. Barke of the Southern District of Illinois and Randy Harwell of the Middle
District of Florida.The claims resolved by the settlement are allegations only and there has been no determination of liability.
6 July 2021
West Virginia Man Sentenced to 70 Months in Prison for Bank RobberyRead the Press Release
ST. PAUL, Minn. – A West Virginia man was sentenced today to 70 months in prison followed by three years of supervised release for robbing a bank in Moorhead, Minnesota.
According to court documents, on May 1, 2019, Robert Vaughn Evans, 53, entered the Gate City Bank located inside a grocery store in Moorhead, Minnesota. Evans handed the bank teller a note that stated, “I have a gun.” Evans told the teller he did not want “bait” and that he was “not [expletive] around” while reaching for his back waistline, leading the teller to believe Evans possessed and was reaching for a gun. The teller retrieved $3,860 from the drawer and provided it to Evans, who put the money in his pocket and fled on foot. The robbery was captured from several angles on high-quality surveillance video.
According to court documents, Evans also admitted that on February 13, 2019, he robbed Key Bank in Niagara Falls, New York. Upon entering the bank, Evans presented a note to the bank teller which claimed he had a weapon and requested “no bait packs.” Evans was given $786 in cash before fleeing the bank.
As part of his sentence, Evans was ordered to pay $3,860 in restitution to Gate City Bank in Moorhead, Minnesota, and $786 to Key Bank in Niagara Falls, New York.
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 is the result of an investigation conducted by the FBI, the United States Marshals Service (USMS), the Moorhead Police Department, the New York State Police, the Pennsylvania State Police, the Washington County (Ohio) Sheriff’s Office, the Story City (Iowa) Police Department, the Holland (Massachusetts) Police Department, the Marietta (Ohio) Police Department, and the Morehead City (North Carolina) Police Department.
Assistant U.S. Attorney Laura M. Provinzino prosecuted the case.
Two Men Sentenced for Robbing Lowndes County BanksRead the Press Release
Montgomery, Alabama – Today, Acting U.S. Attorney Sandra J. Stewart announced that two men were sentenced for their role in robbing two Lowndes County banks. On Thursday, July 1, 2021, Bennie Ray Carpenter, Jr., a 42-year-old man from Town Creek, Alabama, was sentenced to 154 months in prison. Then, on Friday, July 2, 2021, Hunter Lee McPherson, a 21-year old from Greenville, Alabama received a sentence of 130 months. Both men were also ordered to serve three years of supervised release after their prison terms are complete and to pay $9,918.00 in restitution to the banks. There is no parole in the federal system.
According to court records, on February 28, 2020, Carpenter entered the BancorpSouth Bank located in Hayneville, Alabama, wearing black clothing, including a ski mask and ski goggles, and an AK-47 semiautomatic rifle. He approached the counter and demanded money from the teller, who complied and gave him cash from the drawer. Carpenter then left the bank and got into an awaiting vehicle driven by McPherson. They then drove away in great haste. A few days later, on March 2, 2020, Carpenter robbed the First Citizens Bank in Fort Deposit, Alabama, in similar fashion using the same type of firearm, with McPherson again serving as the getaway driver.
Law Enforcement reviewed video surveillance provided by each of the banks and determined the suspects were the same in each of the two bank robberies. They also discovered that stolen vehicles were used in both robberies and burned afterwards.
Carpenter and McPherson were indicted by a federal grand jury on October 27, 2020 for robbing the two banks and for using a firearm in connection with the bank robberies. They pleaded guilty to the three charges in March of this year.
The Federal Bureau of Investigation (FBI), the Lowndes County Sheriff’s Office, the Crenshaw County Sheriff’s Office, the Butler County Sheriff’s Office, and the Greenville Police Department investigated this case. Assistant United States Attorney Brandon Bates prosecuted the case.
Tampa Man Pleads Guilty to Possessing Credit Card Manufacturing EquipmentRead the Press Release
Jacksonville, Florida – Eugene Stephan Cole (31, Tampa) has pleaded guilty to possession of credit card manufacturing equipment. He faces a maximum penalty of 15 years in federal prison and payment of restitution to victims that he defrauded. Cole also agreed to forfeit to the United States various equipment and computer media he had used to produce counterfeit debit and credit cards.
According to court documents, on March 4, 2020, in Columbia County, a trooper from the Florida Highway Patrol (FHP) conducted a traffic stop of a BMW driven by Cole for various traffic infractions. When the trooper approached the car, Cole was unable to produce a driver license and the trooper smelled the odor of marijuana coming from inside the car. During a subsequent probable cause search of the BMW, the trooper located marijuana, a counterfeit North Carolina driver license, a magnetic card encoder/re-encoder, a card embosser, various computer media, and 18 blank plastic cards—all of which had a magnetic stripe capable of being encoded with credit or debit card account information, and several credit and debit cards. Three of the cards were in Cole’s name, while the other cards bore the names of various other individuals. During a pat down, the trooper located, in Cole’s pocket, a TD Bank Visa debit card with the name “Austin Hudson” embossed on it.
Further investigation by the United States Secret Service and the FHP determined that all of the cards bearing Cole’s name and the TD Bank Visa debit card, embossed with the name “Austin Hudson,” were counterfeit. The other cards were determined to be genuine, with fraudulent purchases made in Tennessee.
This case was investigated by the United States Secret Service (Jacksonville Field Office) and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Statement of U.S. Attorney David C. Weiss Regarding Wilmington Trust CompanyRead the Press Release
WILMINGTON, Del. – The United States Attorney’s Office for the District of Delaware and our federal partners opened the investigation into the circumstances surrounding the demise of the Wilmington Trust Company in 2011. We have interviewed hundreds of witnesses and reviewed hundreds of thousands of documents. As is typically the case in any long term investigation and prosecution, we experienced successes and disappointments along the way. We secured guilty pleas to fraud and related offenses from seven defendants and negotiated a settlement with the bank which, among other things, called for the forfeiture of 60 million dollars for victims. The Third Circuit’s decision, on the other hand, was extremely disappointing and limited our options moving forward.
Prosecutors must constantly weigh a number of factors in exercising prosecutorial discretion. Those factors include not only the likelihood of obtaining a conviction, but also competing public safety priorities, and the availability of finite resources to address these priorities. In my judgment, the practical implications of the Third Circuit’s opinion and the challenges currently facing our community--such as unprecedented violent crime, the rising number of opioid overdose deaths, and domestic terrorism--counsel in favor of declining to retry David Gibson, Robert V.A. Harra, William North and Kevyn Rakowski.
Readout from Attorney General Merrick B. Garland’s Meetings Commemorating Six Months since the January 6th Attack on the CapitolRead the Press Release
Attorney General Merrick B. Garland this afternoon met with U.S. Capitol Police officers who defended the Capitol on January 6th, and with Department of Justice employees who have worked tirelessly to hold accountable those who attacked the Capitol six months ago today.
Along with Deputy Attorney General Lisa O. Monaco, the Attorney General met with investigators, analysts, prosecutors, and professional staff assigned to January 6th cases from the FBI’s Washington Field Office and the U.S. Attorney’s Office for the District of Columbia. During the meeting, the Attorney General and Deputy Attorney General also acknowledged the extraordinary work of dedicated public servants in U.S. Attorney’s Offices and FBI Field Offices across the country.
The Attorney General and Deputy Attorney General recognized the important work and recent milestones in this investigation, including the arrest of more than 535 defendants in almost all 50 states. The Attorney General and Deputy Attorney General encouraged the team to continue to follow the facts in this case and charge what the evidence supports to hold all January 6th perpetrators accountable.
Later, the Attorney General visited with members of the U.S. Capitol Police, where he commended them for their bravery on January 6th and expressed his appreciation for their continued service and sacrifice.
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The FBI has released 11 new videos of suspects in violent assaults on federal officers on January 6th and is seeking the public’s help to identify them. For images and video of the attackers, please visit https://www.fbi.gov/wanted/capitol-violence. Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
The charges contained in any criminal complaint or indictment are merely allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pharmaceutical Sales Representative Admits Health Care Fraud Conspiracy and Conspiring to Engage in Money Laundering and Obstruct JusticeRead the Press Release
CAMDEN, N.J. – A pharmaceutical sales representative today admitted he conspired to defraud New Jersey county health benefits programs and conspired to engage in money laundering and obstruct justice, Acting U.S. Attorney Rachael A. Honig announced.
Paul Camarda, 39, of Holmdel, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to obstruct justice and engage in money laundering.
According to documents filed in this case and statements made in court:
Camarda was a sales representative for a pharmaceutical company. He created a side business called Dynasty Capital LLC to independently market medical products and services for other companies, including compounded prescription medications for specialty pharmacies. Camarda marketed compounded medications for several pharmacies, including New Jersey and out-of-state pharmacies identified in court documents as “Compounding Pharmacy 1,” “Compounding Pharmacy 2,” “Compounding Pharmacy 3,” and “Compounding Pharmacy 4.” As part of his arrangements with the compounding pharmacies and his conspirators, Camarda was paid a percentage of the insurance payments received for prescriptions arranged by him and those working with him.
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Camarda learned that certain local government employees had insurance coverage for these particular compounded medications. An entity identified in court documents as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the Bergen County Prescription Benefits Program (BCPBP), which covered certain local government employees, including county prison guards. The Pharmacy Benefits Administrator paid prescription drug claims and then billed the BCPBP for the amounts paid.
Camarda was a leader and manager of the conspiracy. He and his conspirators discovered that certain compounded medications – including vitamins and pain, scar, antifungal, migraine, and libido creams – reimbursed up to thousands of dollars for a one-month supply. Camarda recruited individuals with BCPBP coverage to fraudulently obtain medically unnecessary compounded medications. He provided the recruits with blank prescriptions forms and directed them to go see an unnamed doctor – referred to in court documents as “Individual 1” – to obtain his authorization for the compounded prescription medications. The investigation revealed that all the recruits went to see Individual 1 for the purpose of obtaining the prescriptions within days of each other and all received prescriptions authorized by Individual 1 for the same specialty compounded medications on the same day or within days of each other. The recruits agreed to receive the very expensive compounded medications not because they needed them, but because they were paid by Camarda to do so. Camarda instructed the recruits that the more compounded medications they agreed to receive and the more people they recruited to also get the medications, the more money they stood to gain in the conspiracy.
Camarda received more than $2.2 million in payments for the prescriptions he and those working with him arranged, and Camarda and his recruits caused more than $3.4 million in fraudulent claims to be submitted to the Pharmacy Benefits Administrator for compounded medications. Camarda’s payments from the compounding pharmacies and his conspirators, as well as Camarda’s payments to his recruits, served as the basis for the money laundering conspiracy charge to which Camarda pleaded guilty.
In 2017, Camarda learned that federal agents and a federal grand jury were investigating the health care fraud conspiracy. Camarda conspired to obstruct the federal investigation by providing and instructing others to provide false information to federal agents and the grand jury.
The health care fraud conspiracy count to which Camarda pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. The obstruction of justice and money laundering conspiracy count carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Nov. 18, 2021.
Acting U.S. Attorney Rachael A. Honig credited special agents of the IRS Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and special agents of the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Christina O. Hud and R. David Walk Jr. of the U.S. Attorney’s Office in Camden.
Perry County Woman Pleads Guilty to Union EmbezzlementRead the Press Release
LONDON, Ky. – A Bulan, Ky., woman, Linda Shepherd, 54, pleaded guilty on Monday, June 28, before U.S. Magistrate Judge Hanly A. Ingram, to embezzling assets from a labor union.
According to Shepherd’s guilty plea agreement, from April 2011 to March 2018, she was employed as the financial secretary of United Steelworkers (USW) Local 14637, the union for employees of Appalachian Regional Healthcare, in Hazard, Kentucky. As financial secretary, Shepherd was responsible for paying the union’s bills and maintaining its financial records. USW policy dictated that a union officer’s salary compensated the individual for personal time spent doing union business. “Lost time” is only paid when an officer has membership approval to miss work to conduct union business. Shepherd admitted to misappropriating union funds by paying herself for lost time in instances when she did not lose wages. She also admitted to unauthorized use of union funds to pay for meals and pay herself for unauthorized services rendered.
In total, between May 12, 2011 and March 20, 2018, Shepherd willfully misappropriated $39,491.69 in union funds. These additional payments were not included in the annual union report that disclosed officer compensation to the membership.
“Linda Shepherd used her position as a financial secretary to steal money from a union representing workers in her community,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “In order to enrich herself, she betrayed a trust placed in her and damaged the financial well-being of an organization designed to protect the interests of its members. She is now facing the consequences of her crime.”
“Safeguarding financial integrity in labor unions and combating fraud is a high priority for the U.S. Department of Labor,” said Megan Ireland, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “While the vast majority of union officials do their work diligently and without incident, Linda Shepherd betrayed the trust placed in her by the USW membership and embezzled over $39,000 from the USW, while collecting a salary from her employer and the union, at the expense of the USW and its members. OLMS will continue to work with our partners to identify criminal violations and pursue appropriate legal action when someone unlawfully exploits their union position to enrich themselves without regard to the best interests of union members.”
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky and Megan Ireland, District Director, DOL Office of Labor-Management Standards , jointly announced the guilty plea.
The investigation was conducted by the Department of Labor. The United States was represented by Assistant U.S. Attorney Kate Smith.
Shepherd is scheduled to be sentenced on November 1. She faces a maximum of five years in prison and a fine of up to $250,000. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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