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4 May 2021
Pittsburgh Man Sentenced to Prison for Heroin TraffickingRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania has been sentenced in federal court to 37 months’ imprisonment followed by three years of supervised release on his conviction for conspiracy to distribute and possess with intent to distribute heroin, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman, IV imposed the sentence on Doron McCarthy, 29, of Pittsburgh, Pennsylvania.
According to information presented to the court, McCarthy conspired to distribute and possessed with intent to distribute heroin from September of 2018 through October of 2019. In 2018 the Federal Bureau of Investigation began investigating a heroin trafficking organization operating throughout the greater Pittsburgh area of which McCarthy was a member. Beginning in February of 2019 and continuing through September of 2019, the FBI initiated a Title III wiretap investigation into the organization. McCarthy was intercepted communicating with his codefendants about acquiring quantities of heroin, prices of heroin, and the purity of the heroin. Through extensive physical and electronic surveillance, McCarthy was observed meeting with his codefendants to conduct heroin transactions. Judge Stickman referenced the seriousness of the offense as well as McCarthy’s criminal history.
Assistant United States Attorney Mark V. Gurzo prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation, Homeland Security Investigations, the Allegheny County Police Department, the Stowe Township Police Department, the Pittsburgh Bureau of Police, the Office of the Attorney General, the Allegheny County Sheriff's Office, the North Versailles Police Department, the Allegheny County Port Authority Police Department, the Munhall Police Department, and the Pennsylvania State Police for the investigation leading to the successful prosecution of McCarthy.
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.
Pittsburgh Man Admits Distributing Videos of Children Engaged in Sex with AdultsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, PA pleaded guilty in federal court to a charge of distribution of material depicting the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
George Goodwin, 49, pleaded guilty to one count before United States District Judge Nicholas Ranjan.
In connection with the guilty plea, the court was advised that on March 8, 2020, Goodwin was engaged in an internet chat when he distributed two videos of prepubescent children engaged in sexual acts with adults. The Court was also advised that the investigation of Goodwin involved multiple search warrants and the discovery of a large collection of child pornography, including videos that depicted sadistic and masochistic abuse of prepubescent children.
Judge Ranjan scheduled sentencing for Sept. 7, 2021. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Goodwin on home detention and required a $50,000 bond.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Goodwin.
Pharr man pleads guilty to smuggling multiple drugs in cardboard boxRead the Press Release
LAREDO, Texas – A 46-year-old Pharr man has entered a guilty plea to conspiracy to possess with intent to distribute 1.42 kilograms of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
On Feb. 8, Eduardo Maldonado applied for entry into the United States from Mexico at the Lincoln-Juarez bridge port of entry in Laredo as a passenger on a commercial bus. During a routine X-ray examination of luggage and other items on the bus, authorities noted anomalies in a cardboard box belonging to Maldonado. A K-9 unit also positively alerted to the presence of contraband. A subsequent physical search revealed nine packages which tested positive for cocaine, meth and heroin.
Law enforcement weighed the narcotics and determined the packages contained 1.42, 2.04 and 4.16 kilograms of meth, heroin and cocaine, respectively. The collective street value of the drugs was approximately $162,820.
Maldonado admitted he was at a bar in Mexico with his girlfriend when he met a man who offered him $3,000 to transport the box to Birmingham, Alabama. He was to give it to someone waiting for him at the bus stop. The man paid for Maldonado’s bus ticket.
Maldonado claimed he did not know what was in the box and did not check, but admitted he knew “something” was in it based on the amount of money he was to be paid. He further acknowledged he did not ask the man many questions about the box.
U.S. District Judge Marina Garcia Marmolejo accepted the plea and set sentencing for Aug. 2. At that time, Maldonado faces up to life in prison and a possible $10 million maximum fine. He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
Pharmaceutical Manufacturer Agrees to Pay $12.6 Million to Resolve Allegations it Provided Kickbacks Through Donations to a Third-Party CharityRead the Press Release
PHILADELPHIA—Acting United States Attorney Jennifer Arbittier Williams announced that Incyte Corporation, headquartered in Delaware, has agreed to pay $12.6 million to resolve allegations that it violated the False Claims Act by using a foundation as a conduit to pay the copays of Medicare and TRICARE patients taking Incyte’s drug Jakafi. TRICARE is the health care program for uniformed service members, retirees, and their families.
When a Medicare or TRICARE beneficiary obtains a prescription drug covered by a federal health care plan, the beneficiary may be required to make a partial payment, in the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copays in the programs, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs.
Under the Anti-Kickback Statute, a pharmaceutical company cannot offer or pay, directly or indirectly, any remuneration—which includes money or any other thing of value—to induce Medicare or TRICARE patients to purchase the company’s drugs. This prohibition includes the payment of patients’ copay obligations. Payment of those prescriptions in violation of the Anti-Kickback Statute leads to submission of false claims to Medicare and TRICARE and violations of the False Claims Act.
Incyte sells Jakafi, a medication approved to treat myelofibrosis in 2011 and approved to treat other disorders after 2014. Incyte allegedly was the sole donor to a fund that was opened by a nonprofit foundation in November 2011 to assist only myleofibrosis patients. After the fund opened, the government alleges that from November 2011 through December 2014, Incyte used its influence as the sole donor of the fund to have the foundation pay the copays of Medicare and TRICARE patients taking Jakafi that did not have myelofibrosis, and thus were not eligible for assistance from the fund. Incyte managers allegedly pressured the foundation, through phone calls and emails, to provide economic assistance to these ineligible patients, and Incyte’s contractor helped ineligible patients to complete their applications that were submitted to the fund for assistance. The government alleges that through this conduct, Incyte caused false claims for Jakafi to be submitted to Medicare and TRICARE.
“Pharmaceutical companies cannot skirt the anti-kickback rules by disguising their inducements to federally-insured patients as charitable donations,” said Acting United States Attorney Jennifer Arbittier Williams. “This resolution shows our office’s continuing commitment to holding drug companies accountable for this conduct.”
“Protecting TRICARE is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Incyte’s false claims for ineligible patients compromised the integrity of the TRICARE program. Today’s settlement is the result of a joint effort with the U.S. Attorney's Office, DOJ Civil Frauds, and HHS-OIG, and it demonstrates our ongoing commitment to work with our law enforcement partners to investigate those who engage in health care fraud.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Justin Dillon, a former compliance executive at Incyte. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Dillon v. Incyte Corp., No. 2:18 -cv-2642 (E.D. Pa.) and was filed by Brian McCormick of Ross Feller Casey LLP in Philadelphia, PA.
“We thank the relator and relator’s counsel for their contributions to this case. Without information from citizens like the relator, detecting fraud and conserving government program funds would be much more difficult,” said Acting U.S. Attorney Williams.
The investigation was conducted by the Department of Defense Office of Inspector General and the U.S. Department of Health and Human Services Office of Inspector General. The investigation and resolution obtained in this action were handled by Assistant United States Attorneys Paul J. Koob and Matthew E.K. Howatt, Deputy Chief Charlene Keller Fullmer, and Auditor George Niedzwicki. This matter was handled in conjunction with the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section’s Senior Trial Counsel Jennifer Cihon.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Pennsylvania Man Charged with Conspiring to Distribute 430 Kilograms of KhatRead the Press Release
NEWARK, N.J. – A Pennsylvania man was charged with conspiring to distribute 430 kilograms of khat imported into Newark International Airport, Acting U.S. Attorney Rachael A. Honig announced today.
Azeez Adebari, 46, of Harrisburg, Pennsylvania, is charged by complaint with one count of conspiring to distribute and to possess with intent to distribute a quantity of a mixture containing cathinone and cathine. He made his initial appearance by videoconference before U.S. Magistrate Judge Edward S. Kiel on May 3, 2021, and was detained.
According to documents filed in this case and statements made in court:
On April 21, 2021, U.S. Customs and Border Protection (CBP) officers identified a freight container suspected of containing khat that had arrived by air at Newark International Airport. Khat is a flowering shrub that is abused for its stimulant-like effects and has no accepted medical use in the United States. Khat contains two active ingredients that are controlled substances: cathinone, a Schedule I controlled substance, and cathine, a Schedule II controlled substance.
CBP officers determined that the shipment contained approximately 430 kilograms of khat. The shipping manifest and other customs documentation identified the contents of the shipment as clothing, and ground melon and pepper, among other things. On May 3, 2021, Adebari, who was listed as the consignee on the shipment, arrived at Newark Airport to pick up the khat shipment and was arrested.
The count with which the defendant is charged carries a maximum potential penalty of 20 years in prison and a maximum fine of $1 million.
Acting U.S. Attorney Honig credited special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and officers of CBP, under the direction of Marty Raybon, Acting Director of Field Operations, New York Field Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the Organized Crime & Gangs Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Pawtucket Man Facing 5-40 Years in Prison for Trafficking CocaineRead the Press Release
PROVIDENCE – A Pawtucket man who sold a kilogram of cocaine while under law enforcement surveillance faces between 5 and 40 years in federal prison, having pleaded guilty today to conspiracy and distributing 500 grams or more of cocaine.
Appearing before U.S. District Court Mary S. McElroy, Modesto Mercado, 37, admitted that on February 12, 2020, he met by Facetime and later in person at a Providence restaurant to arrange with an individual to sell him a kilogram of cocaine for $30,000. During the second meeting, Mercado told the buyer that the price for the kilogram was actually $31,500, with the additional $1,500 going to Mercado and a person assisting him to arrange the purchase. At the second meeting, Mercado told the buyer he could supply as many kilograms of cocaine as the buyer wanted to purchase.
According to information presented to the court, later that evening Mercado met with the buyer and another individual and sold him a kilogram of cocaine. After the buyer claimed he could not pay more than the original agreed upon price of $30,000, Mercado indicated he wanted to remove and keep 150 grams of pure cocaine from the kilogram and replace it with cocaine that had been mixed with cutting agents, keeping the 150 grams for himself.
Appearing today before U.S. District Court Judge Mary S. McElroy, Mercado pleaded guilty to conspiracy with the intent to distribute 500 grams or more of cocaine and distribution of 500 grams or more of cocaine, announced Acting United States Attorney Richard B. Myrus and Homeland Security Investigations Acting Special Agent in Charge William S. Walker.
At sentencing on July 26, 2021, Mercado faces statutory penalties of between five and forty years in federal prison to be followed by between four years and lifetime federal supervised release.
The case is being prosecuted by Assistant U.S. Attorney Ronald F. Gendron.
The matter was investigated by Homeland Security Investigations.
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Passaic County Man Sentenced to 21 Months in Prison for Assault with a Dangerous Weapon at Delaware Water GapRead the Press Release
TRENTON, N.J. – A Passaic County, New Jersey, man was sentenced today to 21 months in prison for assaulting with a dangerous weapon two people who were swimming in the Delaware River, Acting U.S. Attorney Rachael A. Honig announced.
Jeffrey A. Mulcahy, 59, of Wayne previously pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of assault with a dangerous weapon with intent to do bodily harm. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Sept. 2, 2019, two individuals (Victim 1 and Victim 2) were swimming in the Delaware River in the Kittatinny Point area of the Delaware Water Gap in Warren County, New Jersey. Mulcahy approached them and began speaking to them about fishing. After a few minutes, Mulcahy departed the area, returning approximately 15 minutes later, holding a can of beer. He continued to talk to Victim 1 and Victim 2 about fishing, however, Mulcahy appeared agitated. Victim 1 and Victim 2 had gotten out of the river and were standing near the riverbed. Mulcahy removed what appeared to be a handgun from his waistband and pointed it at Victim 2’s head. While pointing the gun at Victim 2, Mulcahy ordered Victims 1 and 2 to the ground. Mulcahy then pointed the gun at Victim 1 and stated that he was going to kill Victim 1 if Victim 1 did not listen to him. Mulcahy struck Victim 1 in the head and neck area with the handgun. Mulcahy then began pulling rope out of his pocket and attempted to get Victim 1’s hands behind Victim 1’s back. Victim 1 resisted and was able to take Mulcahy to the ground, where the two began a physical struggle. Mulcahy’s handgun fell to the ground and Victim 2 recovered it and left to contact law enforcement. After the brief physical altercation, Victim 1 ran off to a nearby picnic area to locate Victim 2. Mulcahy departed the area and was later apprehended by law enforcement officers in Hackettstown, New Jersey. Subsequent investigation of the handgun that Victim 2 recovered from Mulcahy revealed that it was a pellet gun.
In addition to the prison term, Judge Shipp sentenced Mulcahy to three years of supervised release and fined him $2,000.
Acting U.S. Attorney Honig credited park rangers of the U.S. National Park Service, under the direction of Chief Ranger Eric Lisnik, the Hackettstown Police Department, under the direction of Chief James A. Macaulay, and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo, Deputy Chief of the Criminal Division in Newark.
Passaic County Couple Sentenced for Roles in $4.5 Million Food Stamps Fraud SchemeRead the Press Release
NEWARK N.J. – A Passaic County, New Jersey, couple were sentenced to prison today for engaging in a food stamps fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.
Ibrahim Zughbi, 67, of Wayne, New Jersey, was sentenced to 41 months in prison and his wife, Miriam Zughbi, 63, also of Wayne, was sentenced to 24 months in prison. Ibrahim Zughbi previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with Supplemental Nutrition Assistance Program (SNAP) benefit fraud and money laundering. Miriam Zughbi previously pleaded guilty to an information charging her with conspiracy to defraud the United States through SNAP benefit fraud. U.S. District Judge Anne E. Thompson imposed the sentences today in Trenton federal court.
According to documents filed in these cases and statements made in court:
From January 2014 to January 2018, the defendants owned and worked at Jamaica Meat Market, a medium-size grocery store in Paterson, New Jersey, that was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp Program. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits. They may not exchange SNAP benefits for cash. While the Zughbis ran the store, another individual owned the store and was the person registered with SNAP. From between 2014 and 2018, through unlawfully exchanging SNAP benefits for cash, Ibrahim and Miriam Zughbi defrauded SNAP more than $4.5 million.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the amount is credited to the retailer’s designated bank account. In addition to the high volume of SNAP benefits redemptions for Jamaica Meat Market indicating fraud, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of a confidential source who, at the direction of law enforcement, engaged in 16 “purchases” at Jamaica Meat Market where both defendants exchanged money for SNAP benefits.
Ibrahim Zughbi had previously participated in SNAP when he was the owner of Neighborhood Supermarket, a grocery store that operated out of the same location as the Jamaica Meat Market. In March 2011, the USDA had permanently disqualified Ibrahim Zughbi from SNAP when Zughbi and the Neighborhood Supermarket were administratively charged with SNAP violations. Another individual took over the business, changed its name to Jamaica Meat Market, and certified in writing to the USDA that Ibrahim Zughbi would have nothing to do with the business or its participation in the program. Ibrahim Zughbi continued to run Jamaica Meat Market, and he and his wife continued to exchange cash for SNAP benefits.
To conceal the proceeds of the SNAP benefit fraud, from January 2014 to January 2018, Ibrahim Zughbi wrote inflated checks from the Jamaica Meat Market account containing the SNAP fraud proceeds to a supplier, and then received funds back in cash from the supplier. Zughbi also issued checks to family members with no apparent connection to Jamaica Meat Market.
In addition to the prison term, Judge Thompson sentenced Ibrahim Zughbi and Miriam Zughbi to three years of supervised release and ordered them to pay restitution of $4.66 million.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Agriculture –Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, and Homeland Security Investigations (HSI), Newark, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencings. She also thanked the Passaic County Prosecutor’s Office, the Wayne Township Police Department and the Paterson Police Department for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the Opioid Abuse Prevention & Enforcement in Newark.
Owner of Currency Exchange House Pleads Guilty to Intentionally Violating Anti-Money Laundering LawsRead the Press Release
Assistant U.S. Attorneys Daniel C. Silva and Michael A. Deshong (619) 546-9713
NEWS RELEASE SUMMARY – May 4, 2021
SAN DIEGO – Marco A. Gonzalez, a local business owner of MRK Casa de Cambio, pleaded guilty in federal court today to violating laws and regulations designed to prevent money laundering by customers of his currency exchange business.
Special Agents from Homeland Security Investigations (“HSI”) led the investigation into millions of dollars of transactions at MRK Casa de Cambio from approximately 2015 to 2020.
As admitted in the plea agreement entered today before U.S. Magistrate Judge William V. Gallo, Gonzalez knew of, and intentionally failed to adhere to, the anti-money laundering (“AML”) laws and regulations imposed on currency exchange businesses like MRK Casa de Cambio. As with any U.S. financial institution, casas de cambio, currency exchanges houses, and other “money services businesses” must comply with the United States Bank Secrecy Act, found at Title 31, United States Code and Title 31, Code of Federal Regulations, which requires these businesses to assist U.S. government agencies in detecting and preventing money laundering and other financial crimes.
Chief among the violations to which Gonzalez admitted in his plea agreement were: failing to disclose MRK Casa de Cambio’s Mexico-based offices and branches with the Secretary of the Treasury; reporting false and materially incomplete information in connection with the registration of MRK Casa de Cambio; filing false or materially misleading (if filed at all) reports of currency transactions exceeding $10,000 and reports of suspicious activity.
Acting U.S. Attorney Randy S. Grossman said, “The gatekeepers of the United States financial system must be steadfast in the fight against international money laundering. The U.S. Attorney’s Office will continue to demand the highest standards of anti-money laundering compliance by all financial institutions—whether a global financial conglomerate, or a single-office currency exchange house. I commend the diligence of the Homeland Security Investigations special agents for their commitment to prosecuting these crimes.” Grossman also praised prosecutors Daniel Silva and Michael A. Deshong for their excellent work on this case.
As a result of these intentional failures, among others, Gonzalez admitted in his plea agreement that he caused MRK Casa de Cambio to engage in cash transactions without applying adequate scrutiny to the source, purpose, ownership, or destination of the funds, or otherwise whether they were relevant to a possible violation of law or regulation. In doing so, Gonzalez acknowledged that he failed to adhere to best practices for all financial institutions; but, more specifically for a money services business like MRK Casa De Cambio, Gonzalez failed to develop and maintain an AML program that was commensurate with the risks posed by the location, size, nature, and volume of the financial services provided by his money services business.
Cardell T. Morant, Special Agent in Charge for Homeland Security Investigations, San Diego, also stated, “Communities along the Southwest border are particularly vulnerable to money laundering, and HSI is committed to protecting our communities by investigating the financial networks and third-party money launderers that facilitate introduction of the illicit proceeds into the U.S. financial system. This guilty plea, by the owner of a money service business in San Ysidro, sends a strong signal to financial institutions and especially money service businesses to remain vigilant in their anti-money laundering duties.”
Special Agent in Charge Morant further noted the assistance of local, regional, and federal partners on this investigation, including: San Diego County Sheriff’s Department, U.S. Customs and Border Protection, IRS Criminal Investigation, and Drug Enforcement Administration.
Sentencing is scheduled to occur on August 2, 2021 before U.S. District Judge Todd W. Robinson.
DEFENDANT Case Number 21-CR-1319-TWR
Marco A. Gonzalez San Diego, CA Age: 47
SUMMARY OF CHARGES*
Willful Violations of the Bank Secrecy Act – Title 31, U.S.C., Sections 5318 / 5322
Maximum penalty: Five years in prison, forfeiture, and $500,000 fine
AGENCIES
Homeland Security Investigations
*The charges and allegations contained in an indictment or information are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Owner of A Consumer Products Testing Company Pleads Guilty to $46 Million Fraud Scheme Involving Fabricated Test ResultsRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced that GABRIEL LETIZIA Jr., the owner and executive director of AMA Laboratories, Inc. (“AMA”), a consumer products testing company in New City, pled guilty today to defrauding customers by reporting laboratory test results for panelist testing that was not fully performed. LETIZIA pled guilty before United States Magistrate Judge Paul E. Davison. Former AMA employees David Winne, Mayya Tatsene, Patrycja Wojtowicz, and Kaitlyn Gold previously pled guilty in connection with their respective roles in the scheme.
U.S. Attorney Audrey Strauss said: “As he has now admitted, Gabriel Letizia schemed for decades to defraud customers of his laboratory, and caused sunscreens and other consumer products to be sold and marketed to consumers on the basis of false laboratory testing reports. Letizia’s guilty plea underscores that my Office will continue to work with our law enforcement partners to investigate and prosecute fraud and endangerment in the consumer products testing industry.”
According to the allegations contained in the Second Superseding Information, publicly available information, court filings, and statements made during the plea proceedings:
LETIZIA is the owner and executive director of AMA, a consumer products testing company in Rockland County, New York. David Winne served as AMA’s technical director, Mayya Tatsene served as AMA’s clinical laboratory director, Patrycja Wojtowicz served as AMA’s associate director of clinical studies, and Kaitlyn Gold served as AMA’s supervising laboratory technician. AMA tested the safety and efficacy of cosmetics, sunscreens and other products on specified numbers of volunteer panelists for consumer products companies.
From 1987 through April 2017, LETIZIA and his co-conspirators defrauded AMA’s customers of more than $46 million by testing products on materially lower numbers of panelists than the numbers specified and paid for by AMA’s customers. LETIZIA, and AMA employees acting under his direction, sent the customers fraudulent reports, which falsely represented that AMA had tested the products on the number of panelists specified by the customers, causing the introduction of misbranded products into interstate commerce.
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LETIZIA, 71, of New City, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum penalty of five years in prison; and two counts of causing a misbranded drug to be introduced into interstate commerce, each of which carries a maximum penalty of one year in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentence of LETIZIA will be determined by the Court.
LETIZIA will be sentenced by U.S. District Judge Kenneth M. Karas on September 14, 2021, at 2:00 p.m.
Ms. Strauss praised the outstanding work of the Federal Bureau of Investigation, the U.S. Food and Drug Administration, Office of Criminal Investigations, and the Rockland County District Attorney’s Office.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman, James McMahon, and Olga I. Zverovich are in charge of the prosecution
New York Man Sentenced for Crack Cocaine TraffickingRead the Press Release
BANGOR, Maine: A Bronx, New York man was sentenced today in federal court for possessing cocaine base, aka crack cocaine, with intent to distribute, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Lance E. Walker sentenced Christopher Martinez, 31, to 85 months in prison and four years of supervised release. Martinez pleaded guilty on November 20, 2020.
According to court records, on May 2, 2020, law enforcement executed a search warrant at a residence in Cutler, Maine. During the search, law enforcement officers recovered cocaine base, heroin, a firearm and more than $4,000. Martinez and others were engaged in the distribution of controlled substances from the residence.
The Maine Drug Enforcement Agency, the FBI, the U.S. Drug Enforcement Administration, the Hancock and Washington County Sheriff’s Offices, and the Maine State Police investigated 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 www.justice.gov/OCDETF.
Milton Woman Pleads Guilty to Tax and Drug Charges Arising from Multimillion-Dollar Marijuana EnterpriseRead the Press Release
BOSTON – A Milton woman pleaded guilty today to her role in a marijuana delivery service.
Deana Martin, 53, of Milton, pleaded guilty to one count of tax evasion, one count of conspiracy to distribute marijuana, one count of possession with intent to distribute marijuana and three counts of money laundering. U.S. District Judge Timothy S. Hillman scheduled sentencing for Sept. 1, 2021.
Martin and co-defendant Tatiana Fridkes were indicted in May 2019 in connection with their management of Northern Herb, a marijuana delivery service that operated in Massachusetts from 2015 to 2018. In September 2020, Fridkes pleaded guilty to conspiracy to distribute marijuana and is scheduled to be sentenced on June 3, 2021.
Martin owned and managed Northern Herb, which operated a website offering marijuana products for sale including raw marijuana, pre-rolled marijuana cigarettes and marijuana edibles. While Northern Herb purported to provide medical marijuana, it did not require a customer to provide proof of a medical marijuana card. Furthermore, Northern Herb delivered marijuana to unattended locations (such as a front door or hallway) where unknown third parties could have accessed it. Northern Herb used locations in Canton, Milton, Foxborough and Hyde Park to store and distribute marijuana, and employed at least 25 workers.
From May 2016 through July 2018, Northern Herb’s revenue exceeded $14 million. Northern Herb did not withhold or pay taxes on its millions of dollars in marijuana sales and did not pay taxes on its profits. Much of the cash collected by Northern Herb from customers was used to pay its suppliers and its workers. In paying cash wages, Northern Herb did not withhold, remit, or pay any payroll or income taxes. Northern Herb did not report worker wages to the IRS via Form 941, nor did it issue W-2s or 1099s to its workers.
On the drug counts, Martin faces a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of money laundering provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000 or twice the value of the money laundered. The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $100,000. Martin also faces restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The United States Postal Inspection Service also provided valuable assistance with this investigation. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division and Assistant Chief Kathleen Barry of the Justice Department’s Tax Division are prosecuting the case.
Mexican National Sentenced for Federal Firearms ViolationsRead the Press Release
TYLER, Texas – A Mexican National has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Ramiro Ortiz Perez, 35, pleaded guilty on Jan. 7, 2021, to being a prohibited person in possession of a firearm and was sentenced to 30 months in federal prison today by U.S. District Judge Jeremy Kernodle.
“This investigation by Homeland Security Investigations is a reminder that possession of firearms by those not legally permitted to possess them, especially in connection with illegal narcotics trafficking, is a direct threat to the safety of our communities,” said Acting U.S. Attorney Nicholas J. Ganjei. “Our office, together with HSI, will continue to vigorously uphold the law.”
According to information presented in court, on July 3, 2020, Ortiz Perez possessed a pistol in Tyler. At the time he possessed the pistol, he was illegally and unlawfully in the United States, having entered, and remained in, the United States without proper authority. Ortiz Perez knew that he was in the United States illegally and admitted that he possessed the pistol in furtherance of his drug trafficking activities.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
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Mexican Citizen Sentenced to 21 Months for Illegally Reentering US & Failing to Register as Sex OffenderRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Jose David Saldana-Ramirez, 38, a citizen of Mexico, was sentenced today by U.S. District Judge William M. Conley to 21 months in federal prison for illegally reentering the United States and failing to register as a sex offender. Saldana-Ramirez pleaded guilty to these charges on February 4, 2021.
On July 20, 2020, Saldana-Ramirez was stopped for a traffic violation in Columbia County, Wisconsin. Law enforcement officers later learned that he had been convicted of sexual assault of a child in 2008 in Texas, and thus, was required to register as a sex offender. He failed to do so upon his illegal reentry into the United States.
The charges against Saldana-Ramirez were the result of an investigation conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The prosecution of the case has been handled by Assistant U.S. Attorney Julie Pfluger.
Massachusetts Woman Pleads Guilty to Tax and Drug Charges Arising from Multimillion-Dollar Marijuana EnterpriseRead the Press Release
A Massachusetts woman pleaded guilty today to tax evasion, conspiracy to distribute marijuana, possession of marijuana with intent to distribute, and money laundering.
According to court documents and the criminal complaint, Deana Martin, 53, of Milton, owned and managed Northern Herb, an illegal marijuana delivery service that operated in Massachusetts from 2015 to 2018. While Northern Herb purported to sell medical marijuana, it did not require a customer to provide proof of a medical marijuana card. Furthermore, it is alleged that Northern Herb would deliver marijuana to unattended locations (such as a front door or hallway) where unknown third parties might have access to it. Northern Herb used locations in Canton, Milton, Foxborough, and Hyde Park to store and distribute marijuana, and employed at least 25 workers.
From May 2016 through July 2018, Northern Herb had total revenue exceeding $14 million. Northern Herb did not pay taxes on its profits nor withhold taxes due from its employees’ wages. Martin paid many of the employees in cash and did not collect or pay the IRS withholdings that were due nor file with the IRS required reports documenting the payments made to Northern Herb’s employees and independent contractors.
U.S. District Judge Timothy S. Hillman today accepted Martin’s guilty plea but reserved acceptance of the plea agreement that, if accepted, would guide the sentence to be imposed. Martin is scheduled to be sentenced on Sept. 1, 2021.
On the drug counts, Martin faces a maximum sentence of up to 20 years of prison and a maximum fine of $1,000,000. On the money laundering counts, Martin faces a maximum sentence of 20 years in prison and a maximum fine of $500,000 or twice the value of the money laundered. On the tax count, Martin faces a maximum sentence of five years in prison and a maximum fine of $100,000. Martin also faces restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Acting U.S. Attorney Nathaniel R. Mendell of the District of Massachusetts; Special Agent in Charge Brian D. Boyle of the Drug Enforcement Administration, New England Division; and Special Agent in Charge Ramsey Covington of the IRS-Criminal Investigations in Boston made the announcement today. The U.S. Postal Inspection Service also provided valuable assistance with this investigation.
Assistant U.S. Attorneys Bill Abely and John Mulcahy of the U.S. Attorney’s Office for the District of Massachusetts and Assistant Chief Kathleen Barry of the Tax Division prosecuted the case.
Martinsburg man sentenced for role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Pierre Christian, of Martinsburg West Virginia, was sentenced today to 71 months of incarceration for his role in a drug distribution operation, Acting U.S. Attorney Randolph J. Bernard announced.
Christian, 44, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute 28 Grams or More of Cocaine Base” in January 2021. Christian admitted to working with another to distribute cocaine base in April 2020 in Berkeley and Jefferson Counties.Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Chief U.S. District Judge Gina M. Groh presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-virginia-residents-indicted-drug-trafficking-operation-berkeley-and
Incyte Corporation to Pay $12.6 Million to Resolve False Claims Act Allegations for Paying KickbacksRead the Press Release
A pharmaceutical company headquartered in Delaware has agreed to pay $12.6 million to resolve allegations that it violated the False Claims Act by paying kickbacks.
Today’s settlement resolves allegations that, from November 2011 through December 2014, Incyte Corporation purportedly used an independent foundation as a conduit to pay the copays of certain federal beneficiaries taking Incyte’s drug Jakafi, which was approved to treat myleofibrosis in 2011. Specifically, Incyte was the sole donor to a fund that was opened in November 2011 to assist only myleofibrosis patients. After the fund opened, the government alleges that Incyte used the fund to pay the copays of federal beneficiaries taking Jakafi who were ineligible for assistance from the fund because they did not have myleofibrosis. Incyte managers pressured the foundation, through phone calls and emails, to provide economic assistance to these ineligible patients, and Incyte’s contractor helped ineligible patients to complete applications submitted to the fund for assistance. The government alleges that through this conduct, Incyte caused false claims for Jakafi to be submitted to Medicare and TRICARE.
“Drug companies undermine the integrity of federal health care programs and contribute to rising drug costs when they illegally use foundations to cover patients’ costs for their own drugs,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This resolution reflects the government’s continuing commitment to hold pharmaceutical companies accountable for this conduct.”
“Pharmaceutical companies cannot skirt the anti-kickback rules by disguising their inducements to federally-insured patients as charitable donations,” said Acting U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennseylvania. “This resolution shows our office’s continuing commitment to holding drug companies accountable for this conduct.”
“Protecting TRICARE, the health care system for U.S. military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Submitting false claims for ineligible patients compromises the integrity of the TRICARE program. Today's settlement is the result of a joint effort with the U.S. Attorney’s Office, DOJ Civil Frauds, and HHS-OIG, and it demonstrates our ongoing commitment to work with our law enforcement partners to investigate those who engage in health care fraud.”
When a beneficiary obtains a prescription drug covered by Medicare or TRICARE, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance or a deductible (collectively “copays”). Congress included copay requirements in these federal programs, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs.
Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce federal beneficiaries to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Justin Dillon, a former compliance executive at Incyte. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Dillon v. Incyte Corp., No. 2:18 -cv-2642 (E.D. Pa.). Dillon will receive approximately $3.59 million of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from the U.S. Department of Health and Human Services Office of Inspector General, the Department of Defense Office of Inspector General, and the Office of Personnel Management Office of the Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Senior Trial Counsel Jennifer Cihon of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorneys Paul Koob and Matthew Howatt and Auditor George Niedzwicki of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Houston woman admits to smuggling liquid meth in gas tankRead the Press Release
LAREDO, Texas – A 24-year-old Houston woman has entered a guilty plea to conspiring to import $300,000 of meth into the country, announced Acting U.S. Attorney Jennifer B. Lowery.
On March 6, Yatziri Barboza arrived at the Juarez–Lincoln International Bridge in Laredo driving a Volkswagen Touareg. Law enforcement conducted an X-ray inspection of her vehicle and noticed an anomaly in the gas tank.
They removed the gas tank and found a compartment with 57.46 kilograms of meth in liquid form.
The narcotics have an estimated street value of approximately $300,000.
U.S. District Judge Marina Garcia Marmolejo will set sentencing for a later date. At that time, Barboza faces a minimum of 10 years and up to life in prison. She was taken into custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney David Fawcett is prosecuting the case.
Harrison County man indicted on drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Austin Lodge, of Bridgeport, West Virginia, was indicted today on drug charges, Acting United States Attorney Randolph J. Bernard announced.
Lodge, 28, was indicted on one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Possession with Intent to Distribute Heroin.” Lodge is accused of having methamphetamine and heroin in December 2018 in Harrison County.
Lodges faces up to 20 years of incarceration and a fine of up to $1,000,000 for each charge. 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative, and the Harrison County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hammond Man Sentenced to 160 Months Imprisonment for Drug and Firearm ViolationsRead the Press Release
NEW ORLEANS – The United States Attorney’s Office for the Eastern District of Louisiana announced today that defendant LARRY GREEN (“GREEN”), age 38, of Hammond, LA, was sentenced to 160 months imprisonment by United States District Court Judge Wendy B. Vitter for possession of a firearm in furtherance of a drug trafficking crime (Count 1) and conspiracy to distribute and possess with intent to distribute a substance containing a detectable amount of methamphetamine (Count 2). For Count 1, the Court imposed a sentence of 60 months to run consecutively to a 100 month sentence GREEN received for Count 2. Additionally, GREEN was ordered to serve 3 years of supervised release as to both counts to run concurrently and pay $200 in special assessment fees. No fines were imposed in this case.
According to court documents, between February 2019 and April 2019, GREEN conspired to distribute or possess with intent to distribute approximately 3209 pills that contained 644 grams of a mixture or substance containing a detectable amount of methamphetamine. On Valentine’s Day 2019, GREEN possessed a loaded Taurus pistol in furtherance of one of his illegal drug transactions.
This matter was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives. United States Attorney Duane A. Evans is prosecuting the matter.
Glen Burnie Man Facing Federal Indictment for Impersonating a U.S. Marshal and Possession of a Fraudulently Made Government SealRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Renul Barnet Forbes, a/k/a “Michael Renul,” “Breion Jones,” and “Bree Jones,” age 32, of Glen Burnie, Maryland, on the federal charges of false personation of a federal officer and possession of a fraudulently made government seal. The indictment was returned on March 25, 2021 and was unsealed at his initial appearance on May 3, 2021.
The indictment 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; U.S. Marshal for the District of Maryland Johnny Hughes; and Anne Arundel County Police Chief Amal Awad.
According to the indictment, on September 26, 2020, Forbes pretended to be an agent of the United States Marshals Service and presented a fraudulent United States Marshals Service badge in relation to an investigation begin conducted by an Anne Arundel County Police officer, in an effort to avoid identification and prosecution.
If convicted, Forbes faces a maximum sentence of three years in federal prison for impersonating an officer and a maximum of five years in federal prison for presenting a fraudulent government seal. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Beth P. Gesner ordered that Forbes be released on electronic home monitoring pending trial.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, the USMS, and the Anne Arundel County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Mary W. Setzer who is prosecuting the case.
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Fugitive Guatemalan Man Indicted for Wire FraudRead the Press Release
CONCORD – Roberto Montano, 55, formerly of Guatemala City, Guatemala, was indicted by a federal grand jury on Monday and charged with three counts of wire fraud, Acting United States Attorney John J. Farley announced today.
According to the Indictment, Montano is a Guatemalan citizen who managed two forestry projects in Guatemala for investment funds managed by a New Hampshire-based investment adviser between 2007 and 2014. Beginning in approximately late 2009, Montano, whose management company was called Green Millennium, embezzled the projects' funds by (1) diverting cash and concealing the diversions using altered bank and financial statements; (2) mortgaging the Projects' properties without authorization and investing the proceeds in unsuccessful business ventures; and (3) stealing teak forestry subsidies paid by the Guatemalan government. A criminal complaint previously was filed against Montano in 2015 and a warrant was issued for his arrest. Montano has been a fugitive from justice since that time.
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen and Assistant U.S. Attorney John S. Davis. Former Assistant U.S. Attorney William Morse previously handled the case.
The FBI has released a wanted poster which can be viewed at: https://www.fbi.gov/wanted/wcc/jorge-roberto-montano-pellegrini
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Former Tennis Coach Is Sentenced to 25 Years for the Sexual Exploitation of A MinorRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that U.S. District Judge Max O. Cogburn Jr. sentenced Benjamin Swain, 47, of Charlotte, late yesterday, to 25 years in prison, on charges of sexual exploitation of a minor.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Jonny Jennings for the Charlotte-Mecklenburg Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court filings, plea documents and statements made in court, Swain was a tennis coach in the greater Charlotte area. As Swain previously admitted in court, beginning in at least 2016, and on at least two different occasions, Swain secretly recorded three minors while they were undressing and showering. On December 9, 2019, Swain pleaded guilty to sexual exploitation of a minor. Swain was previously sentenced to 12 years in prison, after pleading guilty to Child Molestation and Enticing a Child for Indecent Purposes in an unrelated case prosecuted by the state of Georgia.
In announcing Swain’s sentence, Judge Cogburn said that the sentence should deter other coaches and people who serve in similar positions from committing similar crimes.
Swain is currently in federal custody. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility. Swain, who is a British citizen, will also be subject to deportation proceedings upon completion of his federal sentence. If Swain is not deported, or later returns to the United States, he was ordered by Judge Cogburn to serve a lifetime of supervised release and to register as a sex offender.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI, CMPD, and the Bibb County Sheriff’s Office in Georgia for their investigation of the case.
Assistant United States Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
Former Paraprofessional at Blue Springs High School Pleads Guilty to Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A former paraprofessional at Blue Springs High School pleaded guilty in federal court today to producing and distributing child pornography.
Steven B. Allen, 45, of Independence, Mo., pleaded guilty before U.S. District Judge Roseann Ketchmark to two counts of producing child pornography and one count of distributing child pornography over the internet. Allen, who has been in federal custody since his arrest on Nov. 25, 2019, remains detained until his sentencing hearing.
At the time of the offense, Allen worked as a paraprofessional at Blue Springs High School.
By pleading guilty today, Allen admitted that he used two minor victims to produce child pornography and distributed those images, and others, to individuals over the internet. Allen also admitted he had been sharing images of child pornography over the internet every couple of days for the past five to six years.
According to today’s plea agreement, Allen began communicating over the internet with an undercover officer in the United Kingdom in June 2019. The undercover officer purported to be the father of a 10-year-old girl. Allen sent the undercover officer numerous images of one of the minor victims. He also discussed participating in and fantasizing about sexually abusing the undercover officer’s daughter.
On Oct. 7, 2019, law enforcement officers executed a search warrant at Allen’s residence and seized numerous electronic devices that contained more than 9,200 images and 89 videos of child pornography, including more than 800 images of infants and toddlers being sexually assaulted, 65 images of violent sexual acts, and two images of bestiality.
Allen also produced a number of images and videos of prepubescent girls using a waterproof camera at a community swimming pool.
Under the terms of his plea agreement, Allen must pay $5,000 to each of the nine victims who have petitioned for restitution from every person who received or possessed pictures of their sexual abuse, or $3,000 if he can pay restitution within 30 days of his sentencing.
Allen is subject to a mandatory minimum sentence of 15 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by Homeland Security Investigations.
Project Safe Childhood
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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former North Shore Resident Charged with COVID-Relief FraudRead the Press Release
BOSTON – A former North Shore resident was arrested today in connection with allegedly filing a fraudulent loan application in order to obtain over $660,000 in Paycheck Protection Program (PPP) loan funds and using those funds for personal expenses, including an alpaca farm in Vermont.
Dana L. McIntyre, 57, of Grafton, Vt. and previously of Beverly and Essex, Mass., was charged in a criminal complaint with one count of wire fraud and one count of money laundering. McIntyre will make a virtual initial appearance in federal court in Boston this afternoon.
McIntyre is the former owner of Rasta Pasta Pizzeria in Beverly. As alleged in the complaint, in April 2020, McIntyre submitted a fraudulent application for a PPP loan of over $660,000 through a Small Business Administration (SBA) approved lender. In the application, McIntyre allegedly inflated information about the pizzeria’s employees and payroll expenses and falsified an official tax form in an effort to qualify the business for a larger loan amount. McIntyre allegedly reported that the pizzeria employed nearly 50 individuals; however, records indicate that the business paid fewer than 10 employees at any time before or after McIntyre submitted the loan application.
The complaint further alleges that, after receiving a PPP loan of over $660,000, McIntyre sold the pizzeria and used nearly all the funds for personal expenses, including to purchase and upgrade a farm in Vermont as well as to buy several alpacas, at least two vehicles and weekly airtime for a cryptocurrency-themed radio show among other expenses.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office made the announcement today. Assistant U.S. Attorneys David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit and Carol Head of Mendell’s Asset Recovery Unit are prosecuting the case.
Information about allegations of attempted fraud involving COVID-19 can be reported by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) hotline by phone (1-866-720-5721) or via an online reporting form available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Netflix Executive Convicted of Receiving Bribes and Kickbacks from Companies Contracting with NetflixRead the Press Release
Amended as of May 4, 2021.
SAN JOSE – A federal jury convicted Michael Kail, the former Vice President of IT Operations at Netflix, of wire fraud, mail fraud, and money laundering, announced Acting United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Craig D. Fair, and IRS-Criminal Investigation Acting Special Agent in Charge Michael Daniels. The verdict follows a two and a half-week trial before the Honorable Beth L. Freeman, U.S. District Judge.
Kail was indicted May 1, 2018, of nineteen counts of wire fraud, three counts of mail fraud, and seven counts of money laundering, in violation of 18 U.S.C. §§ 1341 (mail fraud), 1343 (wire fraud), 1346 (honest services fraud), and 1957 (money laundering). The indictment also sought forfeiture of Kail’s Los Gatos residential property. The jury returned a verdict of guilty on 28 of the 29 counts. The jury further found real property purchased by Kail with laundered money is forfeitable to the government.
“Bribery undermines fair competition and innovation in any business arena, and particularly Silicon Valley’s highly competitive environment of cutting-edge innovation,” said Acting United States Attorney Stephanie M. Hinds. “As Netflix’s Vice President of IT Operations, Michael Kail wielded immense power to approve valuable Netflix contracts with small tech vendors, and he rigged that process to unlock a stream of cash and stock kickbacks to himself. Netflix and other companies expect and deserve honest services from its employees.”
“Not only did Mr. Kail deprive Netflix of its money and resources by abusing his position as VP of IT Operations, he created a pay-to-play environment whereby he stole the opportunity to work with an industry pioneer from honest, hardworking, Silicon Valley companies,” said FBI Special Agent in Charge Craig D. Fair. “Bribes and kickback schemes, such as those facilitated by Mr. Kail, undermine the fabric of competition in Silicon Valley, and the FBI will aggressively pursue anyone who attempts to criminally exploit their position for personal gain.”
“High-ranking corporate officials hold positions of trust not only in their companies, but also in the eyes of the public,” said Michael Daniels, Acting Special Agent in Charge IRS Criminal Investigation. “That trust is broken when such officials abuse their power and commit crimes to unjustly enrich themselves.”
According to the evidence presented at trial to the federal jury, Kail, 49, of Los Gatos, was employed at Netflix as the Vice President in charge of IT Operations from 2011 until July 2014. In this position, Kail owed Netflix his honest services. Netflix prohibited conflicts of interest by its employees in its Code of Ethics and its “Culture Deck” which required disclosure of actual or apparent conflicts of interest and the reporting of gifts from people or entities seeking to sell to the company.
As Netflix’s Vice President of IT Operations, Kail approved contracts to purchase IT products and services from smaller outside vendor companies and authorized their payment. The evidence demonstrated that Kail accepted bribes in ‘kickbacks’ from nine tech companies providing products or services to Netflix. In exchange, Kail approved millions of dollars in contracts for goods and services to be provided to Netflix. Kail ultimately received over $500,000 and stock options from these outside companies. He used his kickback payments to pay personal expenses and to buy a home in Los Gatos, California, in the name of a family trust.
To facilitate kickback payments, the evidence at trial showed that Kail created and controlled a limited liability corporation called Unix Mercenary, LLC. Established on February 7, 2012, Unix Mercenary had no employees and no business location. Kail was the sole signatory to its bank accounts.
Two days before Unix Mercenary was registered, Kail signed a Sales Representative Agreement to receive payments from Netenrich, Inc. amounting to 12% of the billings from Netenrich, Inc. to Netflix for its contract providing staffing and IT services to Netflix. Later in 2012, Kail began to receive 15% of all billing payments that VistaraIT, LLC, a wholly owned company of Netenrich, received from Netflix. From 2012 to 2014, Netenrich, Inc. paid Unix Mercenary approximately $269,986, and VistaraIT, LLC paid Unix Mercenary approximately $177,863. The payments stopped in mid-2014, after Kail left Netflix.
Evidence at trial showed that several more companies paid Kail. Neither Netenrich, Vistara, nor any of these other companies were charged with criminal conduct. Only Kail was charged with devising the criminal scheme to defraud Netflix.
In 2013, the evidence showed, Platfora, Inc. sought to do business with Netflix. In June 2013 – at the time Kail was seeking to buy his Los Gatos residence – he met with Platfora employees and signed an evaluation agreement for Netflix engineers to test Platfora’s product, a data analytics software program. On July 13, 2013, Kail met with Platfora’s CEO for drinks and later thanked him in an email, saying “I look forward to helping you in both a Netflix and Advisory capacity.” Two days later, Kail signed an “advisory” agreement with Platfora that provided him with the right to purchase up to 75,000 options, approximately .25% of the company. Shortly thereafter, Kail provided Platfora with Netflix’s internal information about Platfora’s competitor’s contract bid price to Netflix. In September 2013, while being a paid advisor to Platfora, Kail signed on behalf of Netflix a multi-stage $250,000 per year contract with Platfora. Kail then urged his Netflix employees to find a use for the product, despite their objections and preference for a competing product that Netflix was already paying for. When an inquiry from the Netflix CEO ensued, Kail falsely denied that he was formally working with Platfora. Kail resigned from his advisory position at Platfora the next week.
Additional evidence showed that Kail received payments or other compensation from numerous other companies doing business with Netflix. In June 2012, he became an advisor to and received options for shares in the company Sumo Logic, Inc. The next month, Kail authorized and signed on behalf of Netflix a vendor agreement between Netflix and Sumo Logic. The agreement led to over $300,000 in payments by Netflix, approved by Kail, to Sumo Logic. Kail then approved a further $800,000 two-year contract with Sumo Logic, despite his IT team feedback about the product underperforming. Kail acknowledged the problem in an email to Sumo Logic, saying “[i]t is becoming increasingly difficult for me to champion Sumo internally and then continue to have severe performance issues.”
Similarly, trial evidence showed Kail received $5,000 per month consulting for Netskope, Inc., and also received options to purchase 71,500 shares of Netskope stock options, and then authorized Netflix to enter a $112,500 contract with that company, in the same month that Kail resigned from Netflix. Kail also purchased, on behalf of Netflix, a small amount of storage from Maginatics, Inc., and thereafter became an advisor to Maginatics, which allowed him to purchase up to 30,000 shares. Kail then increased Netflix’s purchase of storage from Maginatics by tenfold. Kail made approximately $120,000 when Maginatics was sold the next year to EMC. Kail also was promised shares in the company ElasticBox, Inc., and thereafter signed a June 2013 Netflix order for a $600,000, 3-year subscription to ElasticBox’s cloud services. Later that year, he signed an additional $850,000 contract for more cloud services. Kail also accepted an advisor position with Numerify, Inc. in February 2014, which provided him with an early option to purchase 36,000 shares. Three months later, Kail, on behalf of Netflix, signed an $85,000 subscription agreement for Numerify’s software.
The evidence further showed that many Netflix IT employees involved with testing the products did not know that many of the startups’ software was being paid for by Netflix, assuming it instead to be unpaid “pilots” of the untested software, which was routine.
Kail faces a maximum sentence of twenty years in prison and a fine of $250,000, or twice his gross gain or twice the gross loss to Netflix, whichever is greater, for each count of a wire or mail fraud conviction, and ten years in prison and a fine of $250,000 for each count of a money laundering conviction. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
United States District Judge Beth L. Freeman scheduled post-verdict motions to be heard on June 29, 2021, at 10 a.m., with a sentencing hearing to follow on September 14, 2021.
Assistant U.S. Attorneys Colin Sampson and Daniel Kaleba prosecuted the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation.
Former Atomwaffen Division Leader Sentenced for Swatting ConspiracyRead the Press Release
ALEXANDRIA, Va. – A former leader of the Atomwaffen Division in Texas, a racially motivated violent extremist group, was sentenced today to 41 months in prison for his role in a conspiracy that conducted multiple swatting events targeting journalists, a Virginia university, a former U.S. Cabinet member, a historic African American church, an Islamic Center in Arlington, Texas, and members of various minority groups and communities across the United States.
“The reprehensible conduct in this case terrorized communities across our Nation, as innocent Americans simply tried to attend school, practice their faith, and exercise their First Amendment rights,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The defendants caused irreversible trauma to the victims of these hate-based crimes. This case sends an unmistakable message that those who target individuals because of their race, religion, or any other form of bias, will be identified, apprehended, and brought to justice.”
According to court documents, John Cameron Denton, 27, of Montgomery, Texas, participated in a conspiracy that conducted swatting attacks on at least 134 different locations across the United States between October 2018 and February 2019. Swatting is a harassment tactic that involves deceiving emergency dispatchers into believing that a person or persons are in imminent danger of death or bodily harm and causing the dispatchers to send police and emergency services to an unwitting third party’s address. Many of the conspirators, including Denton, chose targets because they were motivated by racial animus.
“Denton’s swatting activities were not harmless pranks; he carefully chose his targets to antagonize and harass religious and racial communities, journalists, and others against whom he held a bias or grievance,” said Timothy Thibault, acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “Today’s sentence demonstrates the FBI’s commitment to holding accountable anyone who terrorizes communities and threatens public safety by diverting emergency resources, which puts innocent people and first responders at risk.”
Conspirators targeted multiple locations in the Eastern District of Virginia, including a then-sitting U.S. Cabinet official living in northern Virginia on January 27, 2019; Old Dominion University on November 29 and December 4, 2018; and the Alfred Street Baptist Church in Old Town Alexandria on November 3, 2018. In each instance, conspirators selected the targets and called emergency dispatchers with false claims of pipe bombs, hostage takings, or other violent activity occurring at the targeted locations. As a result of these swatting calls, police were dispatched to Old Dominion University and the Alfred Street Baptist Church, and individuals in each location were required to shelter in place while the bomb threats were investigated. According to court documents, a conspirator admitted to choosing the Alfred Street Baptist Church as a target because its congregation is predominantly African American.
Additionally, Denton personally chose at least two targets to “swat”: the New York City office of ProPublica, a non-profit newsroom that produces investigative journalism; and an investigative journalist who produced materials for ProPublica. Denton chose these two targets because he was angry with ProPublica and the investigative journalist for publishing Denton’s identity and discussing his role in the Atomwaffen Division, a U.S.-based violent extremist group with cells in multiple states. The group’s targets have included racial minorities, the Jewish community, the LGBTQ community, the U.S. government, journalists, and critical infrastructure.
During the investigation, Denton unknowingly met with an undercover law enforcement officer and told the undercover officer about his role in the swatting conspiracy. Denton stated that he used a voice changer when he made swatting calls and admitted that he swatted the offices of ProPublica and the investigative journalist. Denton also stated that it would be good if he was “raided” for the swatting because it would be viewed as a top-tier crime, and he felt that his arrest could benefit the Atomwaffen Division.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Timothy Thibault, Acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorney Carina A. Cuellar prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-154.
Former AEP Employee Pleads Guilty to Wire Fraud, Tax Charges; Government Estimates Loss of 1.6 millionRead the Press Release
ROANOKE, Va. – A former American Electric Power (AEP) employee pleaded guilty yesterday to wire fraud and filing false tax returns.
According to court documents, Gregory Thomas Holland, 63, of Roanoke, was employed at AEP from 1982 until January 2018, where he worked for many years in the credit department. Specifically, Holland was responsible for managing AEP’s interests during customer bankruptcies, filing claims, and reducing debts.
Holland admitted yesterday that in 2001 he opened a personal checking account using AEP’s name and address unbeknownst to anyone else at the company. Beginning in May 2002, Holland began depositing checks into this account, written on behalf of AEP customers, and made payable to AEP. Between May 2002 and January 2018, Holland admitted to depositing more than 300 checks into this account. All the money he deposited into this account belonged to AEP. Nonetheless, Holland used the money from the account for personal expenses such as dues at the Roanoke Country Club, car payments, and clothing purchase, among other things.
Holland did not report any of this additional income on his Form 1040 Individual Income Tax Returns for tax years 2011 through 2017.
In all, it is estimated Holland stole $1.6 million dollars from AEP. The court will determine the exact amount of loss at Holland’s sentencing hearing.
Acting United States Attorney Daniel P. Bubar made the announcement today.
Holland pleaded guilty to one count of wire fraud and one count of willfully filing a false tax return. He is scheduled to be sentenced on September 10, 2021 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The United States Secret Service, Internal Revenue Service-Criminal Investigations, and Virginia State Police are investigating the case.
Assistant U.S. Attorney Michael Baudinet is prosecuting the case.
Financial Advisor Sentenced to More Than 13 Years in Prison for Swindling Investors Out of $5.1 MillionRead the Press Release
CHICAGO — A financial advisor who told clients they were guaranteed to make money by investing with him has been sentenced to more than 13 years in federal prison for defrauding those clients out of $5.1 million.
DARAYL DAVIS falsely represented to clients that they would receive fixed annual interest payments and guaranteed protection against losses if they invested with his firms - Washington, D.C.-based Financial Assurance Corp. and Los Angeles, Calif.-based Affluent Advisory Group LLC. Davis claimed that some of the investments would be backed by a well-known multinational life insurance company. In reality, Davis did not invest the funds as promised, and none of the purported investments had any affiliation with the life insurance company.
Davis instead spent the money for his own personal benefit, including rent for an eight-bedroom mansion in Los Angeles, airline tickets, luxury hotels, car rentals, a club membership, theater tickets, and other items. Davis often attempted to conceal the scam by using funds from some investors to make Ponzi-type payments to other investors.
The alleged fraud scheme lasted from at least 2003 to 2018. In all, Davis defrauded more than 25 victims out of more than $5.1 million. Many of the victims were retirees who gave Davis all of their savings.
Davis, 48, of Chicago, and formerly of Bowie, Md., pleaded guilty earlier this year to one count of mail fraud. U.S. District Judge Robert W. Gettleman on Monday imposed a 160-month prison sentence.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Securities and Exchange Commission, which filed a civil complaint against Davis.
“Davis targeted his victims personally, seeking out fellow church members, individuals who had previously purchased legitimate investment products from him, or ‘friends’ to whom he offered the ‘favor’ of an inside investment opportunity,” Assistant U.S. Attorneys Christopher Catizone and Philip N. Fluhr argued in the government’s sentencing memorandum. “Davis knew these people trusted him and deliberately exploited that trust.”
Felon convicted of trafficking meth with firearmRead the Press Release
CORPUS CHRISTI, Texas - A 42-year-old Corpus Christi man has entered a guilty plea to possessing a semi-automatic handgun in furtherance of a drug-trafficking crime as well as possession with intent to distribute meth, announced Acting U.S. Attorney Jennifer B. Lowery.
On Nov. 18, 2020, authorities executed a federal arrest warrant Benjamin Govella, who was riding a bicycle near an apartment complex in Corpus Christi. At that time, he possessed a backpack containing a Ruger SR9C 9mm pistol and nearly 50 grams of pure meth as well as two loaded magazines and a scale.
U.S. District Judge Drew B. Tipton accepted the plea and set sentencing for July 29. At that time, Govella faces up to 20 years in prison and a possible $1 million maximum fine. He has been and will remain in custody pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Corpus Christi Police Department (CCPD) conducted the investigation with the assistance of the CCPD Narcotics Vice Investigations Division. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Federal Jury Convicts Oklahoma City Man for Possession of Ammunition and Witness TamperingRead the Press Release
OKLAHOMA CITY – Last week, a federal jury convicted JIMMY LEE BROOKS, 35, of Oklahoma City, of possessing ammunition after a former conviction of a felony and a separate charge of witness tampering, announced Acting U.S. Attorney Robert J. Troester.
On October 21, 2020, a federal grand jury returned a three-count Superseding Indictment against Brooks. Count 1 charged Brooks with possessing ammunition after a former felony conviction. Count 2 charged him with possessing a long-barrel shotgun after a former felony conviction. Count 3 charged Brooks with witness tampering, specifically attempting to influence, delay, and prevent testimony in an official proceeding.
On April 29, 2021, after a three-day trial, the jury returned guilty verdicts on Counts 1 and 3. Evidence at trial showed that Brooks got into an altercation with his girlfriend on March 18, 2020, which resulted in Brooks brandishing a knife towards his girlfriend. When she fled the scene by hopping in a stranger’s vehicle, Brooks used a .380 caliber handgun to fire eight rounds towards the stranger’s vehicle, striking his girlfriend. Evidence at trial also showed that following his initial appearance in federal court, Brooks placed jail phone calls in which he attempted to convince his girlfriend to recant her earlier statements to the police and hospital staff that named Brooks as the shooter on March 18, 2020.
At sentencing in approximately 90 days, Brooks faces up to ten years in federal prison on the ammunition conviction, and up to 20 years in federal prison on the witness-tampering conviction. Each count of conviction also carries a fine of up to $250,000 and up to three years of supervised release following a term of imprisonment. Brooks has been detained in custody since March 26, 2020, pending charges from the March 18, 2020 shooting.
This case is the result of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorneys Nick Coffey and Charles Brown prosecuted the case.
This case is part of "Operation 922," the Western District’s local implementation of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s initiatives to reduce gun violence and enforce federal firearms laws. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information.
Essex County Man Sentenced to Five Years in Prison for Possessing Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 60 months in prison for possessing a handgun in furtherance of a drug trafficking crime, Acting U.S. Attorney Rachael A. Honig announced today.
Ricky Terrell, 24, of Newark, previously pleaded guilty before U.S. District Court Judge John Michael Vazquez via videoconference to a one-count Information charging him with possession of a firearm in furtherance of a drug trafficking crime, specifically the possession with intent to distribute heroin and cocaine. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Stephen Crane Village is a public housing complex in Newark, on the border with Belleville. From February 2019 through February 2020, law enforcement officers investigated individuals that controlled an open-air drug market that operated within Stephen Crane Village.
Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that numerous individuals conspired to distribute and did actually distribute narcotics, including heroin, fentanyl, cocaine and cocaine base, in and around Stephen Crane Village.
On Feb. 25, 2020, law enforcement lawfully searched Terrell’s residence and found heroin and cocaine, a Smith & Wesson .40 caliber handgun, and numerous rounds of ammunition.
In addition to the prison term, Judge Vazquez sentenced Terrell to three years of supervised release.
Acting U.S. Attorney Honig credited special agents and task force officers with the ATF, Newark Division, under the direction of Acting Special Agent in Craig B. Kailimai; the Belleville Police Department, under the direction of Chief Mark Minichini; special agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s sentencing. She also thanked the U.S. Marshals Service, the Nutley Police Department, the Bloomfield Police Department, the West Orange Police Department, the Verona Police Department, the Orange Police Department, and the Bergen County Sheriff’s Office for their assistance with this case.
This investigation was part of the Newark Violent Crime Initiative (VCI), where the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Newark and the surrounding cities. This case is also conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Eight Drug Traffickers Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Eight members of a drug trafficking ring operating in and around Union County were handed down sentences ranging from 30 to 300 months in prison today, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
According to court filings, plea documents, and statements made in court, the eight defendants are members of the Garcia Family drug trafficking organization (DTO). Over the course of the investigation, which began in April 2019, the defendants operated as a drug conspiracy and trafficked narcotics, including heroin, cocaine, and methamphetamine, in Union County and surrounding areas and involving the seizure of more than 16 kilograms of methamphetamine. The eight defendants were sentenced as follows:
- Elio Garcia Godinez, 32, of Monroe, N.C. was sentenced to 300 months in prison and five years of supervised release.
- Ivan Jardon Trujillo, 48, of Monroe, N.C. was sentenced to 156 months in prison and five years of supervised release.
- Ivan Trujillo Garcia, 23, of Monroe, N.C. was sentenced to 87 months in prison and four years of supervised release.
- Eleonel Castrejon Garcia, 24, of Monroe, N.C. was sentenced to 120 months in prison and five years of supervised release.
- Estefani Garcia Sandoval, 26, of Monroe, N.C. was sentenced to 30 months in prison and two years of supervised release.
- Luis David Bravo, 47, of Monroe, N.C. was sentenced to 60 months in prison and two years of supervised release.
- Miguel Benitez Castrejon, 40, of Monroe, N.C. was sentenced to 97 months in prison and two years of supervised release.
- Matilde Isaias Cruz Portillo, 36, of Atlanta, Georgia, was sentenced to 84 months in prison and two years of supervised release.
In making today’s announcement, Acting U.S. Attorney Stetzer praised the outstanding efforts of the FBI, ATF, DEA, the Monroe Police Department and the Union County Sheriff’s Office for their investigation which led to today’s outcome. Acting U.S. Attorney Stetzer also noted the assistance provided by ICE – Enforcement & Removal Operations and the Wadesboro Police Department.
Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (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.
Duval Felon Sentenced to Nine Years in Federal Prison for Armed Drug TraffickingRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Tony Deshawn McFadden (29, Jacksonville) to nine years in federal prison for possessing a firearm in furtherance of drug trafficking.
McFadden had pleaded guilty on January 15, 2021.
According to court documents, on August 18, 2018, officers with the Jacksonville Sheriff’s Office (JSO) were patrolling the area of Woodbine Street and Springfield Boulevard in Brentwood, as a result of a recent shooting near that location. JSO officers observed McFadden involved in what appeared to be drug activity. As the officers approached to investigate, McFadden ran and ignored instructions to stop. The officers chased McFadden into a convenience store where he threw down a Glock .40 caliber pistol and 3.3 grams of crack cocaine before they took him into custody.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Beatriz Gonzalez, Laura Cofer Taylor, and Special Assistant United States Attorney Cyrus P. Zomorodian.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce Federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of Federal, State, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Dudley Man Arrested for Theft and Misuse of COVID-19 Pandemic AssistanceRead the Press Release
BOSTON – A Dudley man was arrested today in connection with his alleged involvement in a scheme to fraudulently obtain and misuse COVID-19-related unemployment assistance.
Norman Higgs, 34, was charged in a criminal complaint with bank fraud, conspiracy to commit wire fraud, theft of government property and money laundering. Higgs made his initial appearance in Boston this afternoon before U.S. District Court Magistrate Judge Judith G. Dein and was released on conditions.
According to the charging documents, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors, or gig economy workers). As alleged in the complaint, from April to June 2020, Higgs obtained over $300,000 in proceeds from fraudulent PUA claims. When Higgs’s bank recalled a portion of those fraudulently-obtained funds, Higgs allegedly paid those recalls using the proceeds from COVID-19-related government loans.
The charge of bank fraud provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of $1 million. The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charges of theft of government property and money laundering each provide for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Nikitas Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud made the announcement. The Massachusetts Department of Unemployment Assistance provided assistance in the investigation. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Driver in deadly smuggling attempt pleads guiltyRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old undocumented immigrant residing in Austin has entered a guilty plea to conspiring to transport other non-citizens, announced Acting U.S. Attorney Jennifer B. Lowery.
Lucio Magana Aguilar admitted he picked up a group of nine people Feb. 15 - the day the unusual harsh winter freeze struck Texas - with plans to transport them north.
The group had been traveling through the brush in an attempt to avoid the Javier Vega Jr. checkpoint near Sarita. During their journey, they had separated from their guide and faced extreme weather conditions. They made it back to the roadway where Aguilar arrived in his truck to transport them farther north.
However, by that time, one of the individuals was in extreme distress and another had already succumbed to the conditions. Five of the aliens, including the deceased one, were loaded into the backseat, while the other four were loaded into the rear cargo area of the truck.
Authorities later conducted a traffic stop on the vehicle, at which time they discovered the deceased alien dead at the scene.
Aguilar expected to be paid $1,000 in return for smuggling the group.
U.S. District Judge Drew B. Tipton will impose sentencing July 29. At that time, Aguilar faces up to 10 years in prison and a possible $250,000 maximum fine. He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Barbara J. De Pena prosecuted the case.
Dominican National Charged with Illegal ReentryRead the Press Release
BOSTON – A Dominican national was charged on April 29, 2021 in federal court in Boston for illegally reentering the United States.
Yomelvin Abreu Bonilla, 32, was indicted on one count of unlawful reentry of a deported alien.
According to the indictment, in March 2021, agents encountered Bonilla in Bedford, Mass. and determined that he was illegally present in the United States. Bonilla was previously deported in August 2016.
The charge provides for a sentence of up to 10 years in prison, three years of supervised released and a fine of up to $250,000. Bonilla will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman 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.
Defendant Who Orchestrated A Dozen Armed Robberies Targeting Small Businesses in Kentucky, Tennessee, and North Carolina Found Guilty Following Five Day Jury TrialRead the Press Release
BOWLING GREEN, Ky. – On May 3, 2021, a federal jury in Bowling Green, Kentucky returned a verdict convicting Jorge Santos Caballero Melgar, age 36, who formerly resided in Nashville, Tennessee, of conspiracy to interfere with commerce by robbery; conspiracy to use and carry firearms during and in relation to crimes of violence; interference with commerce by robbery in the March 17, 2017, robbery of La Placita in Bowling Green, Kentucky; murder through the use of a firearm during and in relation to the commission of a crime of violence; and illegal reentry into the United States after a previous deportation, announced Acting United States Attorney Michael A. Bennett.
Caballero Melgar was the last defendant in a case that originally charged a dozen individuals with perpetrating the violent robberies in which store employees were bound with duct tape and threatened at gunpoint while the store premises were searched for cash. The robbery of La Placita in Bowling Green resulted in the shooting death of the victim, J.C., who had arrived outside the store to pick up his young son who was inside while the robbery was in progress.
A feature of the charged robberies was that Caballero Melgar identified the locations to be robbed, drove co-conspirators to robbery sites, and stayed outside the store while in nearly constant cell phone contact with those inside during the robberies. The evidence at trial established that in one instance, a bound store employee, unable to understand the Spanish speaking defendants, had a cell phone held to her ear over which the defendant demanded that she tell the robbers where the store’s money was located. Five co-conspirators who had previously entered guilty pleas in the case testified at trial; their testimony was corroborated by cell phone location evidence offered through an FBI expert witness. Finally, the evidence at trial also established that Caballero Melgar was a citizen of Honduras and had been deported from the United States in early 2015. By no later than December 2016, he was back in the United States unlawfully leading a group that committed the multi-state robberies charged.
“These violent defendants are off the street because of the outstanding work of the FBI, the Bowling Green Police Department, and our federal, state, and local law enforcement partners across six states,” said Acting U.S. Attorney Bennett. “This case is an extraordinary example of the dedication and teamwork our law enforcement partners bring to the table every day in the fight against violent crime. I commend them for their work and thank them for making our communities safer.”
“Today brings to a close the spree of armed robberies that resulted in the death of an innocent bystander,” said FBI Louisville Special Agent in Charge Robert Brown. “Melgar and his previously convicted co-defendants demonstrated a penchant for violence and would have no doubt continued their path of carnage. FBI Louisville is proud of the role its agents and our law enforcement partners played in bringing these individuals to justice.”
The defendant is scheduled to be sentenced by Chief Judge Greg N. Stivers on August 2, 2021, at 9:00 a.m. at the U.S. District Courthouse in Bowling Green, Kentucky. The charge of murder through the use of a firearm during a crime of violence for the death of J.C. at La Placita carries a maximum penalty of life in prison. There is no parole in the federal system.
This case is being prosecuted by Assistant United States Attorneys Marisa Ford and Alicia Gomez. The investigation was led by FBI Louisville, and the Bowling Green, KY Police Department. The investigation was also assisted by FBI Charlotte; FBI Memphis; DHS/HSI Raleigh; DHS/HSI Bowling Green; Lexington, KY Police Department; Cary, NC Police Department; Clayton, NC Police Department; Snow Hill, NC Police Department; Greene County, NC Sheriff’s Department; Rocky Mount, NC Police Department; Henderson, NC Police Department; Gallatin, TN Police Department; Morristown, TN Police Department; McMinnville, TN Police Department; Metro Nashville Police Department; Clarksville, IN Police Department; Northampton County, VA Sheriff’s Department; and the Kansas Highway Patrol.
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Davenport Man Sentenced to Prison for Firearm ChargeRead the Press Release
DAVENPORT, Iowa – On Monday, May 3, 2021, United States District Court Chief Judge John A. Jarvey sentenced Teron Deachon Conley, age 26, of Davenport, to 96 months in prison for Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Conley was ordered to serve three years of supervised release to follow his prison term as well as pay $100 to the Crime Victims’ Fund.
In September of 2019, the Davenport Police Department responded to the 6300 block of Appomattox Road for multiple shots fired complaints. At that location, officers found eleven shell casings in the road as well as three other casings in a yard. Witnesses described Conley as one of the two shooters and stated the shooters and another man left in a tan SUV. When officers attempted to conduct a traffic stop of the SUV the car fled from law enforcement. All three occupants of the car eventually ditched the vehicle and left a firearm on the ground nearby the car.
The gun matched the shell casings found in the street. On November 18, 2020, Conley admitted to possessing the firearm in September 2019. As a convicted felon, Conley was prohibited from possessing firearms.
This matter was investigated by the Davenport Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon “Dollar Bill” Sentenced for Shooting Drug Customer Twice over Drug DebtRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Rustin Chase McKinsey, also known as “Dollar Bill,” 35, pleaded guilty on Jan. 6, 2021, to discharging a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. McKinsey was sentenced to 15 years in federal prison today by U.S. District Judge Marcia A. Crone.
“Felons who possess firearms, and certainly those who use firearms in furtherance of drug trafficking or violent crimes, are among the most dangerous members of our society,” said Acting U.S. Attorney Nicholas Ganjei. “These criminals will learn the hard way that violent drug trafficking will be met with swift and decisive action by law enforcement.”
According to information presented in court, on Sep. 4, 2020, law enforcement officers responded to a residence on Taylor Street in Beaumont, Texas in reference to a shooting. Upon arrival, officers discovered the victim laying on the front porch of the residence with a towel wrapped around a gunshot wound to his leg. The victim’s roommate told officers he awoke to an argument between McKinsey and the victim, and he observed McKinsey fire two shots at the victim before fleeing the scene. The victim stated that he owed money to McKinsey for methamphetamine that McKinsey sold him.
On Oct. 9, 2020, law enforcement officers responded again to the same residence in reference to another shooting. Upon arrival, officers discovered the same victim suffering from a gunshot wound to his back. A single spent .22 caliber shell casing was discovered at the scene. The victim stated that McKinsey shot him again over the same drug debt that was owed. Officers then immediately headed to McKinsey’s residence, ultimately finding McKinsey hiding in a car across the street. McKinsey admitted to officers that he had shot the victim on both occasions over a drug debt.
McKinsey is a convicted felon having previously been convicted of possession of a controlled substance in Jefferson County, Texas, on Dec. 18, 2017. As a convicted felon, McKinsey is prohibited by federal law of owning or possessing a firearm or ammunition.
This case is being investigated by the Beaumont Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Matthew Quinn.
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Connecticut Man Sentenced to 120 Months in Prison Following Conviction for Drug Conspiracy Involving More Than 30 Kilograms of HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on May 3, 2021, United States District Judge Christina Reiss sentenced Jose Fontanez, 33, to 120 months in prison following his guilty plea to a charge of conspiring to distribute in Vermont one kilogram or more of heroin, 400 grams or more of fentanyl, and 500 grams or more of cocaine between 2010 and November 26, 2018.
According to Court records, in November of 2018, an informant working with the Federal Bureau of Investigation and Vermont State Police Drug Task Force placed 11 recorded phone calls to Fontanez, also known as “Chiqui,” arranging the purchase of heroin. The FBI Northern Connecticut Gang Task Force watched as Fontanez travelled from his stash house in Hartford, Connecticut to a planned meeting location in Holyoke, Massachusetts, where Fontanez was arrested by the FBI Western Massachusetts Gang Task Force. At the time of his arrest, Fontanez was in possession of the heroin the informant had arranged to purchase.
After Fontanez’s arrest, the FBI executed a search warrant at Fontanez’s stash house. Inside Fontanez’s stash house, agents seized a mixture of heroin and fentanyl as well as packaging materials identical to those possessed by Fontanez at the time of his arrest. Subsequent investigation revealed that Fontanez used his Hartford, Connecticut stash house to process, package, and store heroin, and that Fontanez utilized co-conspirators in Vermont, Connecticut, Maine, and elsewhere to acquire, package, and re-distribute controlled substances.
At sentencing, Judge Reiss found that Fontanez’s criminal conduct involved over 30 kilograms of heroin; that he maintained a premises for the purpose of manufacturing and distributing a controlled substance; that he committed the offense as part of a pattern of criminal conduct engaged in as a livelihood; and that he was a manager or supervisor of criminal activity involving five or more participants. Judge Reiss also noted that Fontanez had been seen with over $250,000 on multiple occasions, and that Fontanez had intentionally utilized fentanyl with the purpose of increasing his drug sales.
Acting United States Attorney Jonathan Ophardt praised the collaborative, multi-state investigative effort that resulted in this successful prosecution. He added: “Drugs like heroin, fentanyl, and cocaine are illegal because they are dangerous. The consumption of these illicit substances rips at the fabric of our communities, results in the deterioration of our families, and impacts all aspects of our lives. The U.S. Attorney’s Office will continue to work diligently with our law enforcement partners to hold drug traffickers like Fontanez accountable for the damage inflicted by their greed. I commend the investigative efforts of the FBI in Vermont and the Vermont State Police Drug Task Force, as well as the FBI Northern Connecticut Gang Task Force and the FBI Western Massachusetts Gang Task Force. I also thank the Drug Enforcement Administration’s Hartford Regional Office and the New Hampshire State Police for their assistance.”
“Mr. Fontanez is one of dozens of deplorable individuals who spent years running a disturbing amount of dangerous drugs through our Vermont communities,” said Thomas F. Relford, Special Agent in Charge of the Federal Bureau of Investigation’s Albany Field Office. “Vermont residents should feel safer knowing he’ll spend the next decade behind bars. Today’s sentence is indicative of the success that can be attained when agencies combine resources to remove violent drug distributors from the streets. Our office is grateful for the continued partnership from the U.S. Attorney’s Office, Vermont State Police, New Hampshire State Police, DEA, and our colleagues in Massachusetts and Connecticut. We remain committed to working together to attack these dealers and remove violent criminals from our communities.”
The case was prosecuted by Assistant United States Attorneys Nate Burris and Paul Van de Graaf. Fontanez was represented by Attorney Brooks G. McArthur of Jarvis, Williams & McArthur.
Connecticut Man Agrees to Plead Guilty to Stolen Firearms Offenses and Making False StatementsRead the Press Release
BOSTON – A Connecticut man was charged and agreed to plead guilty to a variety of charges in connection with stealing 17 firearms from a West Springfield gun shop and making false statements to federal agents.
Christian Castro, 31, of New Britain, Conn., was charged and agreed to plead guilty to one count each of theft of firearm from a Federal Firearms Licensee; being a felon in possession of firearm; interstate transportation of a stolen firearm; receipt, possession, concealment, storage, barter, sale, or disposition of a stolen firearm in interstate commerce; and making false statements to a federal official. A plea hearing has not yet been scheduled by the court.
In September 2020, Castro was charged by criminal complaint with co-defendant Fernando Rivera, who is scheduled to plead guilty tomorrow.
According to the charging documents, Castro was a felon on state probation for two prior convictions in Connecticut for larceny and possessing narcotics with intent to distribute. Shortly after midnight on or about Aug. 29, 2020, Castro and Rivera engaged in a crime spree in Vermont, New Hampshire and Massachusetts that included seven ATM thefts and culminated in the theft of 17 firearms from a federal firearms licensee in West Springfield, Mass.
On Sept. 18, 2020, federal agents arrested Rivera and Castro at their homes in Connecticut. During interviews with investigators Castro admitted that he drove to and from several ATM robberies and the gun store robbery, but falsely stated he never received, kept or even touched any of the stolen guns.
During a search of Rivera’s phone investigators identified several photographs and videos depicting Rivera (and Castro in one instance) with many of the stolen firearms. A forensic extraction of the defendants’ phones allegedly revealed communications indicating that on Sept. 4, 2020, Rivera discovered that he was a suspect in the thefts and then traveled with Castro to New York to sell at least three of the firearms.
The firearms charges each provide for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. The charge of making false statements provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division made the announcement. Special assistance was provided by the Massachusetts State Police; Springfield, Hadley, West Springfield, New Britain (Conn.) and Middletown (Conn.) Police Departments; Connecticut State Police; Connecticut Department of Correction; and Connecticut Judicial Branch Adult Probation. Assistant U.S. Attorney Steven H. Breslow of Mendell’s Springfield Branch Office is prosecuting the case.
Clarksburg residents indicted on carjacking and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher M. Vickers and Courtney M. Oliverio, both of Clarksburg, West Virginia, are facing carjacking and firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Vickers, 31, and Oliverio, 39, were each indicted on one count of “Conspiracy to Commit Carjacking,” one count of “Carjacking,” and one count of “Conspiracy to Use Firearm During and in Relation to a Crime of Violence.” Vickers was also indicted on one count of “Use of Firearm During and in Relation to a Crime of Violence” and one count of “Unlawful Possession of a Firearm.”
According to court documents, on June 3, 2020, Vickers and Oliverio drove to a residence in Shinnston, West Virginia to take a motorcycle. Vickers then allegedly grabbed a woman by her hair and held a gun to her head, demanding the location of the motorcycle. He also allegedly held a gun to the head of an 11-year-old child. According to the indictment, Vickers them rammed a vehicle into the garage of the residence to get the motorcycle. Vickers and Oliverio then allegedly attempted to take the motorcycle from the property.
Vickers, a person prohibited from having a firearm because of a prior drug conviction, is accused of having a 5-shot revolver allegedly used during the crime.
Vickers and Oliverio each face up to five years of incarceration and a fine of up to $250,000 for the carjacking conspiracy charge, up to 15 years of incarceration and fine of up to $250,000 for the carjacking charge, and up to 20 years of incarceration and a fine of up to $250,000 for the firearm conspiracy charge. Vickers also no less than seven years of incarceration and a fine of up to $250,000 for the firearm use charge and up to 10 years of incarceration and a fine of up to $250,000 for the unlawful possession charge. 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 Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Shinnston Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Chinese National Pleads Guilty to Obstructing International Human Trafficking InvestigationRead the Press Release
NASHVILLE – A Chinese National pleaded guilty today in U.S. District Court to conspiring to commit evidence tampering in relation to an international human trafficking investigation, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Xu Zhang, 31, a New York resident, was indicted in September 2019, after conspiring with his girlfriend and co-conspirator, Gao Xing, also a Chinese National, to destroy and conceal records pertinent to a federal grand jury investigation.
According to court documents, on September 6, 2019, Zhang visited Gao Xing in jail while she was in federal custody and the subject of an international human trafficking investigation. During the visit, Xing instructed Zhang to delete material information, including contacts and conversations from her WeChat account. WeChat is a Chinese multi-purpose messaging, social media, and mobile payment application that can be accessed by mobile devices, personal computers, and the internet. Xing provided Zhang with a method to obtain her online WeChat account login information from her mother in China, and other details pertaining to her account. Xing indicated that the items she needed Zhang to delete would make her case or situation worse and she further instructed Zhang to change her WeChat name.
The following day, during a telephone call from the jail, Zhang confirmed to Xing that he had deleted the information requested and had changed Xing’s WeChat name in an attempt to delete and destroy material information related to her WeChat account.
On November 1, 2019, Gao Xing committed suicide in her cell at the Daviess County, Kentucky Detention Center.
Zhang faces up to 20 years in prison when he is sentenced on September 15, 2021.
This case was investigated by Homeland Security Investigations; IRS-Criminal Investigation; and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Sara Beth Myers is prosecuting the case.
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Cattaraugus County Man Arrested, Charged with Possessing and Distributing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Thomas J. Conklin, 35, of Delevan, NY, was arrested and charged by criminal complaint with distribution and possession of child pornography. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Paul E. Bonnano, who is handling the case, stated that according to the complaint, in May 2019, the Royal Canadian Mounted Police (RCMP) received a report from Kik Messenger (a Canadian company) that a user, “butterflybullet6,” sent an image of child pornography on the Kik application. Subsequent investigation traced “butterflybullet6” to an IP address belonging to the defendant. On December 2, 2019, a search warrant was executed at Conklin’s residence in Delevan by Homeland Security Investigations. Special agents seized a cellular telephone belonging to the defendant. During a forensic review of the cell phone, the image reported by Kik Messenger was recovered, as well as another 294 image files of suspected child pornography.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and was held pending a detention hearing on May 5, 2021, at 1:30 p.m.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly. Additional assistance was provided by the Royal Canadian Mounted Police.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Cabell County Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Cabell County woman pleaded guilty today to a federal drug charge.
According to court documents, on January 9, 2021, Kassie McNeeley, 21, of Lesage, delivered a package of methamphetamine for Myreo Dixon to an individual in an apartment on Crestmont Drive in Charleston. Dixon had directed McNeeley to deliver the package and collect $31,500 as payment for the methamphetamine. McNeeley utilized her cell phone to maintain contact with Dixon throughout the drug deal by texting him multiple times. When McNeeley left the apartment in her vehicle, law enforcement officers conducted a traffic stop and seized the $31,500 in drug proceeds.
McNeeley pleaded guilty to use of a telephone to facilitate drug trafficking and faces up to four years in prison when she is sentenced on August 12, 2021. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Lisa G. Johnston made the announcement. Assistant United States Attorney Monica D. Coleman is prosecuting the cases.
This case is part of a long-term investigation, dubbed the “Woo Boyz,” which resulted in federal charges against 15 individuals and was conducted by the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team (MDENT), with assistance from the U.S. Marshals Service and the West Virginia State Police. The Appalachia High Intensity Drug Trafficking Area (AHIDTA) provided critical support to the investigative agencies.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00032.
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Baltimore Man Sentenced to 14 Years in Federal Prison for Kidnapping During an Armed Carjacking Where the Victim Also Had a Gun Shoved in His Mouth to Obtain His ATM PINRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett today sentenced Michael Wedington, Jr., age 21, of Baltimore, Maryland, to 14 years in federal prison, followed by five years of supervised release, for the federal charge of kidnapping related to his role in the armed carjackings of two victims in June 2019.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, Wedington participated in the armed carjackings of two different victims that occurred on June 8 and June 10, 2019, respectively. In each instance, the victim was intending to purchase tools as part of a purported transaction that Wedington set up through a cellular phone-based application, “OfferUp,” which allows sellers to post advertisements of personal property for sale. Through the OfferUp application, the buyer can then directly contact the seller and arrange to buy the property. When the victims arrived at the designated meeting spot, they were robbed at gunpoint by Wedington and his co-conspirators, who also stole their vehicles. In each instance, investigators were able to link the seller’s OfferUp account in the name of “Brian” to Michael Wedington, through Wedington’s phone number and other information.
In the carjacking on June 8, 2019, the victim arrived in the area of Washington Boulevard and South Monroe Street in Baltimore and was directed to the 2400 block of West Lexington Street. Upon arriving, the victim was waved down and approached by Wedington and two other men. At first the men appeared to load the victim’s van with the tools they were purportedly selling. However, one suspect, armed with a handgun, then forced the victim into the rear of his vehicle. Wedington and his accomplices stole the victim’s wallet and cash, a driver’s license, debit card, and the victim’s cellular phone. As they drove away, one suspect shoved a handgun in the victim’s mouth and demanded the Personal Identification Number (PIN) to the victim’s debit card. The suspects drove to a gas station in Northwest Baltimore with the victim still in the van, and one of the suspects used the PIN the victim had provided to obtain cash from an ATM. The victim escaped from the van in the area of the 7000 block of Park Heights Avenue and fled on foot, later calling the Baltimore Police Department to report the incident. The stolen vehicle was recovered five days later in the area of the 2700 block of Tivoly Avenue in Baltimore.
In the second carjacking on June 10, 2019, the victim was lured to the 2400 block of West Lexington Street through the OfferUp application by a user who was purportedly selling tools and equipment. When the victim arrived, he was directed to the back alley behind West Fayette Street, where Wedington and another individual approached him—both armed with handguns. The two men took the victim’s wallet, containing more than $1,000 in cash, the victim’s two cell phones, and the victim’s Toyota vehicle.
Wedington was identified in a photo array, and Wedington’s fingerprint was recovered from the van stolen in the second carjacking. On November 1, 2019, a federal search warrant was executed at Wedington’s primary residence, which is located near the scenes of the two carjackings, and law enforcement recovered a Toyota car key, a firearm, 1,000 rounds of ammunition, replica firearms, and cellular phones. Agents obtained a search warrant for Wedington’s cell phone, which revealed, among other things, that Wedington used the OfferUp application and the “Brian” account to communicate with the first victim’s friend and orchestrate the June 8, 2019 set up of the carjacking. Agents also found various photos and videos showing Wedington posing with or using firearms.
Acting United States Attorney Jonathan F. Lenzner commended FBI and BPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Matthew DellaBetta and Daniel A. Loveland, Jr., who prosecuted the case.
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3 May 2021
Wolf Point man convicted of rape, child abuse and assault crimes sentenced to more than 20 years in prisonRead the Press Release
GREAT FALLS – A Wolf Point man convicted by juries in two separate trials of rape, child abuse and assault crimes was sentenced today to a total of 20 years and five months in prison, followed by a total of 10 years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
A jury convicted Luke John Scott, Sr., 33, on Jan. 28 of aggravated sexual abuse and of assault by striking, beating or wounding, a misdemeanor, in a July 2017 rape and assault of a woman. On Nov. 19, 2020, a separate jury convicted Scott of felony child abuse that began in July 2018 and of assault resulting in serious bodily injury for an assault on the same minor child in March 2019. The crimes in both cases occurred on the Fort Peck Indian Reservation.
Chief Judge Brian M. Morris presided.
In the aggravated sexual abuse and assault case, Chief Judge Morris sentenced Scott to 10 years and five months in prison and to 10 years of supervised release. In the felony child abuse and assault case, Chief Judge Morris sentenced Scott to 10 years in prison and to three years of supervised release. Chief Judge Morris ordered the prison sentences in the two cases to run consecutively, for a total of 20 years and five months, and for the terms of supervised release in the two cases to run concurrently, for a total of 10 years of supervised release.
“Mr. Scott’s violent conduct not only seriously harmed the victims in these two cases but also endangered the entire community. These sentences will hold Mr. Scott accountable for his crimes, while protecting the community from further violence by him. Those who rape women and abuse children will be prosecuted to the full extent of the law,” Acting U.S. Attorney Johnson said.
In the aggravated sexual abuse case, the government alleged in court records and through evidence presented at trial that on July 7, 2017, Scott approached the victim, identified as Jane Doe, on the street, told her he had a bottle of vodka and that a relative was fishing by the Poplar river. The victim went with Scott to the river, where he threatened to kill her, tried to strangle her and then raped her. Jane Doe reported the assault to law enforcement and was transported to the hospital in Poplar.
In the child abuse and assault case, the government alleged in court records and through evidence presented at trial that for approximately eight months, beginning in July 2018, Scott abused and injured a minor child in Wolf Point. The abuse culminated in a March 2019 assault in which the Scott assaulted the child by repeated blunt force trauma to the head and strangulation. The victim was treated for serious injuries.
Assistant U.S. Attorney Kalah A. Paisley prosecuted the cases, which were investigated by the FBI and Fort Peck Law Enforcement Services.
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Williamsport Man Sentenced to 25 Years’ Imprisonment for Drug TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 30, 2021, Raymond Howard, age 46, of Williamsport, Pennsylvania, was sentenced sentenced to 300 months' imprisonment followed by a four-year term of supervised release by U.S. District Court Judge Matthew W. Brann for drug trafficking.
According to Acting U.S. Attorney Bruce D. Brandler, Howard was found guilty after a five-day jury trial in October 2020 to conspiring to distribute heroin and a mixture of heroin and carfentanil. During a three-day period in June 2017, there was a rash of drug overdoses in Williamsport. At the time, UPMC Susquehanna in Williamsport and Wellsboro rpoerted treating 51 such cases within a 48-hour period.
Howard was determined to be the source of the carfentanil-laced heroin that led to the overdoses. In total, three co-conspirators identified on the indictment, Wayne Davidson, Nathan Crowder, and Markeese Askew, were charged with delivering the mixture of heroin and carfentanil that resulted in serious bodily injury to eight individuals. The three co-conspirators were previously sentenced after pleading guilty in October 2020. Davidson and Crowder were sentenced to 210 months’ imprisonment in March 2021 and Askew was sentenced to 192 months’ imprisonment in April 2021.
“The 25 year sentence imposed on Howard, and the substantial sentences imposed on his coconspirators, not only reflects the seriousness of these offenses but also the commitment of our office to aggressively prosecute all opioid related offenses,” stated Acting U.S. Attorney Brandler. “When these overdoses occurred in 2017, we decided to take whatever steps were necessary to make sure the responsible individuals were brought to justice. I want to thank all the law enforcement agents and prosecutors who tirelessly worked to accomplish that goal.”
The case was investigated by the Lycoming County District Attorney’s Office Narcotics Enforcement Unit, Montoursville Police Department, Old Lycoming Township Police Department, South Williamsport Police Department, Williamsport Bureau of Police, Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorneys Alisan V. Martin and Geoffrey W. MacArthur prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Vivint Smart Home to Pay $20 Million for Violating the Fair Credit Reporting ActRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), announced a $20 million settlement resolving alleged violations of the FTC Act and the Fair Credit Reporting Act (FCRA), including violations of the Red Flags Rule. The settlement includes $15 million in civil penalties, which represents the largest civil penalty ever paid to resolve FCRA violations under the FTC Act.
Vivint Smart Home Inc. sells “smart” home security and monitoring systems, largely via a sales force that sells door-to-door. The complaint alleges that Vivint failed to implement an Identity Theft Prevention Program, allowing its sales representatives to obtain credit reports of unsuspecting consumers without the consumers’ knowledge or consent, and unfairly sold false debt to buyers or debt collectors. According to the complaint, the defendant’s lack of an Identity Theft Prevention Program violated the FTC’s Red Flags Rule, which requires covered financial institutions and creditors to establish and administer an appropriate, written Identity Theft Prevention Program. The Red Flags Rule plays an important role in the detection, prevention, and mitigation of identity theft.
The complaint further alleges that, due in part to the absence of an appropriate Identity Theft Prevention Program, Vivint’s door-to-door sales force was able to systematically use the names and identities of innocent victims to complete sales to potential Vivint customers who failed the required credit checks. When some of those Vivint customers later defaulted, Vivint allegedly then sold the false debt to third-party debt collectors that attempted to collect from the victims, who had no knowledge of the Vivint accounts created using their identities.
“The Justice Department is committed to protecting consumers against the unlawful use of their credit reports and the unfair sale of false debts,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We are pleased to join with our partners at the Federal Trade Commission on this important matter.”
“Vivint’s sales staff stole people’s personal information to approve others for loans,” said Acting Director Daniel Kaufman of the FTC’s Bureau of Consumer Protection. “For misusing consumer credit reports and other sensitive data, and harming people’s credit, this company will pay $20 million.”
As reflected in the stipulated order entered by the court, Vivint will pay $15 million in civil penalties and $5 million in equitable monetary relief. Additionally, Vivint is required to take a number of steps to prevent a recurrence of its alleged unlawful conduct. Among other things, Vivint must establish a corporate component to verify certain accounts and to investigate reports of identity theft; establish an employee monitoring and Identity Theft Prevention Program; and comply with related recordkeeping, certification, and compliance obligations.
This matter was handled by Assistant Director Lisa K. Hsiao and Trial Attorney Alisha M. Crovetto of the Civil Division’s Consumer Protection Branch. Gorana Neskovic and Kevin H. Moriarty represented the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.