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Tuesday 9 February 2021
San Antonio Heroin and Cocaine Supplier Sentenced to Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced 35-year-old Joe Anthony Ramirez to 15 years of imprisonment for supplying heroin for distribution throughout San Antonio, announced U.S. Attorney Ashley C. Hoff and Drug Enforcement Administration (DEA) Special Agent in Charge Steven S. Whipple, Houston Division.
In addition to the prison term, U.S. District Judge Fred Biery ordered Ramirez to be placed on supervised release for a period of 10 years after completing his prison term.
On August 13, 2019, Ramirez pleaded guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin. By pleading guilty, Ramirez admitted that he supplied heroin to two separate drug trafficking organizations (DTOs) – his own (Ramirez DTO) and the Sanchez DTO led by Andrew Sanchez, aka “Freight” and “Hakeem.”
From May 2018 to March 2019, the Sanchez DTO was responsible for the distribution of heroin on the east side of San Antonio. The Sanchez DTO operated daily from about 8:00 a.m. until 2:00 a.m. as a full-scale delivery service for heroin to the street-level user. The organization members worked shifts in the various roles. Ramirez’s own DTO, which included his dad and brother, distributed heroin and cocaine throughout the entire San Antonio area.
In November 2019, Judge Biery sentenced Sanchez to 15 years in federal prison followed by five years of supervised release. To date, 12 individuals associated with the organizations Ramirez supplied have been convicted and sentenced to prison terms ranging from 41 months to 180 months.
The DEA and the Texas Department of Public Safety investigated this case with assistance from the U.S. Marshals Service, Bexar County Sheriff’s Office, Seguin Police Department, Terrell Hills Police Department and the Bexar County District Attorney’s Office. Assistant U.S. Attorneys Eric Fuchs and Fidel Esparza III prosecuted this case on behalf of the government.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
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Rochester Man Pleads Guilty to Stealing Nude Photographs of Dozens of WomenRead the Press Release
ALBANY, NEW YORK – Nicholas Faber, age 25, of Rochester, New York, pled guilty yesterday to computer fraud and aggravated identity theft in connection with his hacking of online social media accounts and theft of nude images of dozens of female victims.
The announcement was made by Acting Assistant Attorney General Nicholas McQuaid; Acting United States Attorney Antoinette T. Bacon; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and State University of New York-Plattsburgh Police Chief Patrick Rascoe.
Faber pled guilty to one count of computer intrusion causing damage and one count of aggravated identity theft.
Faber obtained his undergraduate degree from SUNY-Plattsburgh, graduating in 2017.
As part of his guilty plea, Faber admitted that from about 2017 to 2019, he worked with co-conspirator Michael Fish to access the school email accounts of dozens of female college students and then used information from those school email accounts to gain access to the victims’ social media accounts. Faber then stole, and traded online with others, private nude photographs and movies stored in the victims’ social media accounts. Also, as a result of Faber’s crimes, the university had to allocate money and staff to identifying compromised accounts, reviewing computer and server access logs, resetting passwords, and notifying students and parents.
United States District Judge Mae A. D’Agostino is scheduled to sentence Faber on June 9, 2021. He faces at least 2 years and up to 12 years in prison, a $250,000 fine, and up to 3 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Faber has also agreed to pay $35,430 in restitution to SUNY-Plattsburgh.
Fish pled guilty to computer hacking, aggravated identity theft and child pornography offenses, and is scheduled to be sentenced on March 19, 2021.
This case was investigated by the FBI with substantial assistance from the SUNY-Plattsburgh Police Department. Deputy Chief Michael Stawasz, from the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal, are prosecuting the case.
Registered Sex Offender Sentenced for Distribution of Child PornographyRead the Press Release
HUNTSVILLE, Ala. – A federal judge sentenced a Pinson man today for distribution of child pornography, announced United States Attorney Prim F. Escalona, FBI Special Agent in Charge Johnnie Sharp, Jr., and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
United States District Judge R. David Proctor sentenced Chadwick Rice, 48, to 188 months in prison followed by a lifetime of supervised release. In March 2020, Rice pleaded guilty to distribution of child pornography. Rice was previously convicted of three (3) counts of possession of child pornography in Jefferson County, Alabama, in 2016. This conviction required him to register as a sex offender.
“There is zero tolerance for those who continue to break the law to engage in the sexual exploitation of children,” said U.S. Attorney Escalona. “Law enforcement will continue to vigilantly monitor the internet using every method available to us in order to uncover evidence of child exploitation and abuse so that we can protect children from such offenders.”
“This case not only exemplifies the great work of my agents and our partners, but also the importance of citizens saying something when they see something of concern,” said FBI SAC Sharp. "Thanks in part to information provided by a citizen tip to the National Center for Missing and Exploited Children (NCMEC) CyberTip Line, law enforcement was able to stop Rice from victimizing any other children."
“The community can rest a little easier knowing that this serial offender is no longer free to spread the filth that victimizes our most vulnerable population, said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners remain committed to find, arrest and prosecute those who seek to steal the innocence of our youth.”
According to the plea agreement, during an authorized Peer-to-Peer ("P2P") operation in December 2017, an agent downloaded images of suspected child pornography from a specific IP address. In February 2018, the agent received Cyber-Tips from the National Center for Missing and Exploited Children ("NCMEC") that images of child pornography had been uploaded from the same IP address. Further investigation revealed that the IP address was registered to Rice. In March 2018, a search warrant was executed at Rice’s home in Pinson, where child pornography was located on Rice’s Samsung Galaxy cell phone. During a forensic review of Rice’s cell phone, 771 images of children being sexually exploited were identified. Rice admitted he had various apps on his cell phone that he used to trade videos of child pornography with other individuals.
The FBI investigated the case, along with U.S. Immigration and Customs Enforcement Homeland Security Investigations, Alabama Law Enforcement Agency and Vestavia Hills Police Department. Assistant United States Attorney R. Leann White prosecuted the case.
The 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.
Pottsville Man Charged with Cyberstalking and Making Interstate ThreatsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aaron VanDaley, age 43, of Pottsville, Pennsylvania, was indicted by a federal grand jury on February 3, 2021, for cyberstalking and making interstate threats.
According to Acting United States Attorney Bruce D. Brandler, the indictment charges VanDaley with cyberstalking and making interstate threats to kidnap and injure the minor child of his former intimate partner’s current boyfriend. The indictment further alleges that VanDaley, with the intent to harass his former intimate partner, made numerous false police reports against his former intimate partner’s friends and family.
The matter was investigated by the Federal Bureau of Investigation (FBI), the U.S. Army Criminal Investigation Division (CID), Fort Stewart, Georgia, and the Pottsville Police Department. Assistant United States Attorney James Buchanan is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is ten years imprisonment and a term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Pittsburgh Woman Gets Jail Time for Conspiring to Distribute K-2 Synthetic Cannabinoids into PrisonsRead the Press Release
PITTSBURGH – Sandra Wilson was sentenced to eight months in prison for conspiring to distribute K2 controlled substances (Schedule I synthetic cannabinoids) in 2018, United States Attorney Scott W. Brady announced today.
Wilson, age 29, of Pittsburgh, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan also directed that Wilson serve three years of supervised release following her prison sentence.
Wilson distributed K2 controlled substances into prisons. She did so for at least several months in 2018. She acquired the K2 controlled substances from other dealers and at one point manufactured some of the K2 controlled substances.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
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.
Operation Second Wave Update: Three Men Appear in Federal CourtRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that three defendants charged in Operation Second Wave made appearances in federal court. Gregory Eugene Woods, 43, of Dunbar, was sentenced to a total of 184 months in federal prison. He was sentenced as a career offender to 160 months for possession with intent to distribute cocaine, followed by a consecutive term of 24 months based upon his supervised release violation. Jason Michael Terrell, 37, of Mt. Carbon, and Jimmy Lee Coleman, 35, of Falls View, pled guilty conspiracy to distribute methamphetamine. Woods, Terrell, and Coleman are three of the 14 defendants charged as a result of a long-term investigation known as “Second Wave,” which dismantled a poly-drug network operating in Kanawha and Fayette counties.
“Operation Second Wave shut down a significant poly-drug network. Kanawha and Fayette counties are no doubt safer as a result,” said United States Attorney Mike Stuart. “I commend all of the federal, state and local law enforcement agencies that worked on this case. It is through their relentless, collaborative efforts that we can hold drug dealers accountable for their crimes.”
Woods previously pled guilty and admitted that on April 21, 2020, the Charleston Police Department stopped him when he was on his way to deliver cocaine to Terrell. A search of Woods’ vehicle resulted in the seizure of over two ounces of cocaine. He was on federal supervised release at the time of the stop based upon being convicted in 2015 in the Southern District of West Virginia of possession with intent to distribute marijuana and use of a telephone to facilitate drug trafficking. Woods had additional previous felony convictions including three convictions for possession with intent to deliver marijuana, one conviction for possession with intent to deliver Ecstasy, and another conviction for unlawful wounding.
Terrell admitted distributing multiple pounds of methamphetamine along with quantities of heroin and cocaine in and around Montgomery between July 2019 and August 26, 2020. He further admitted traveling with two co-defendants to Columbus, Ohio where they purchased approximately two pounds of methamphetamine and brought it back to West Virginia to sell. Coleman admitted to selling more than a pound of methamphetamine between January and August 2020.
Coleman faces up to 20 years in prison when he is sentenced on April 26, 2021. Terrell faces at least ten years and up to life in prison when he is sentenced on May 17, 2021.
Other defendants, including Larry Terrence Martin, Sammy Joe Fragale, Sr., and Sammy Joe Fragale II, have also pled guilty and are awaiting sentencing. Carol Lynn Belton, Steven Matthew Bumpus, Roger Jarea Drake, Rashawn Akmed Miller, Craig Redman, Tonya Simerly, and Ronald Lee Thomas III are scheduled for trial on April 27, 2021.
The Federal Bureau of Investigation (FBI), the Central West Virginia Drug Task Force (CWVDTF), the Kanawha County Sheriff’s Department, the Charleston Police Department, the United States Postal Inspection Service (USPIS), and the Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation with assistance from the Drug Enforcement Administration (DEA) who led the investigation of Sammy Joe Fragale, Sr., and Sammy Joe Fragale II, who were also prosecuted as part of the Second Wave investigation. Senior United States District Judge David A. Faber presided over the hearings. Assistant United States Attorney Joshua Hanks is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:20-cr-00153 (Woods) and 2:20-cr-00154 (Terrell et al).
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New Jersey Woman Sentenced to 63 Months in Prison for $2 Million Bank Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman was sentenced today to 63 months in prison for an elaborate bank frank scheme resulting in losses of more than $2 million, Acting U.S. Attorney Rachael Honig announced.
Alexis Taylor, 32, of Hackensack, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to one count of an indictment charging her with conspiracy to commit bank fraud. Judge Vazquez imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
From March 2017 to June 2018, Taylor agreed with others to execute a scheme to defraud various financial institutions located in New Jersey, New York, and elsewhere. She purchased a significant amount of stolen personal identifying information via the dark web, including bank account information and online security question answers. Taylor then used the information to access victim accounts at various banks and other financial institutions.
Taylor, and others acting at her direction, would travel to banks and impersonate victim account holders to withdraw funds from accounts held by the victims at those institutions. Taylor would also communicate with the banks by phone and request that wire transfers be made from victim accounts and into accounts held by Taylor. Finally, it was part of the scheme that Taylor would travel to victims’ homes and intercept debit cards and other financial documents from the mail to facilitate the fraud.
In addition to the prison term, Judge Vazquez sentenced Taylor to four years of supervised release. A hearing on restitution is scheduled for May 10, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s sentencing. She also thanked members of the Bergen County Prosecutor’s Office and the Closter Police Department for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Cybercrimes Unit in Newark.
Monmouth County Man Sentenced to 18 Months Prison for Unlawfully Possessing a FirearmRead the Press Release
NEWARK, N.J. – A Keyport man was sentenced today to 18 months in prison for illegally possessing an assault rifle, Acting U.S. Attorney Rachael A. Honig announced.
Ahmed A-Hady, 36, previously pleaded guilty before U.S. District Court Katharine S. Hayden to an information charging him with one count of possession of a firearm by a convicted felon. Judge Hayden imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
On Dec. 10, 2019, there was a mass shooting in Jersey City in which a Jersey City Police Officer and three civilians were shot and killed by a male (Individual 1) and a female (Individual 2). After the shooting, law enforcement recovered a handwritten note from Individual 1’s right rear pants pocket that contained a telephone number ending in 4115 and a Keyport, New Jersey, address. Law enforcement also recovered several weapons possessed by Individuals 1 and 2, including an AR-15 rifle.
FBI agents determined that the phone number ending in 4115 contained on the note belonged to A-Hady. Law enforcement also determined that the Keyport address listed on the note was a storefront for a pawn shop. On the evening of Dec. 13, 2019, law enforcement officers traveled to the pawnshop and interviewed A-Hady and two of his relatives.
Law enforcement officers lawfully searched both the pawnshop and A-Hady’s private residence and recovered multiple rifles, handguns, and one shotgun. During the searches of the pawnshop and A-Hady’s private residence, law enforcement also recovered over 400 rounds of ammunition, including a large number of hollow point bullets.
One of the weapons recovered from the pawnshop was a Sig Sauer .22 caliber rifle capable of accepting a large capacity magazine. Records showed that A-Hady purchased this rifle in Florida on Oct. 23, 2012, approximately five months after A-Hady was convicted in New Jersey Superior Court of a crime that was punishable by a term of imprisonment of more than one year.
In addition to the prison term, Judge Hayden sentenced A-Hady to three years of supervised release. A-Hady forfeited his interest, if any, in the firearms recovered during the search of the pawnshop.
Acting U.S. Attorney Honig credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the Office of the New Jersey Attorney General, under the direction of Attorney General Gurbir S. Grewal; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing. Acting U.S. Attorney Honig also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Jersey City Police Department, under the direction of Director James Shea, for their assistance.
The government is represented by Ronnell Wilson, Chief of the National Security Unit of the U.S. Attorney’s Office for the District of New Jersey, and Assistant U.S. Attorneys Dean C. Sovolos and Thomas S. Kearney, of the National Security Unit.
Mid-State Psychologist Sentenced to Federal PrisonRead the Press Release
NASHVILLE, Tenn. – February 9, 2021 – A mid-state psychologist was sentenced today in U.S. District Court to 41 months in federal prison for operating a healthcare fraud scheme, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Donald McCoy, 54, of Murfreesboro, Tennessee, was sentenced by U.S. District Judge Eli J. Richardson and ordered to pay $1,217,848.51 in restitution. McCoy was charged in December 2018 and in January 2020 he pleaded guilty to healthcare fraud, mail fraud and money laundering.
During the scheme, McCoy was a licensed psychologist by the State of Tennessee and was an authorized TennCare provider who provides individual psychotherapy and family psychotherapy services to patients—usually minors—in the care of the Department of Children’s Services (“DCS”). Between January 2014 and December 2018, McCoy billed for more hours of services than can physically be provided in any given day and received over $2.16 million from TennCare based on those claims.
An investigative analysis conducted by the Tennessee Bureau of Investigation determined that on multiple occasions, McCoy submitted claims for psychotherapy services that totaled more than 24 hours per day, some even exceeding 48 hours and 72 hours per day. The analysis also determined that McCoy billed for services purportedly rendered on more than 200 weekends and major holidays, including New Year’s Day, the Fourth of July, Thanksgiving and Christmas, among others. On numerous occasions, McCoy billed for family psychotherapy sessions involving patients in DCS custody, which never occurred.
The investigation determined that of the more than $2.16 million in claims submitted to TennCare by McCoy, at least $1.2 million which he received payment for was based on fraudulent claims.
This case was investigated by the Tennessee Bureau of Investigation; the U.S. Postal Inspection Service; and the IRS Criminal Investigation. Assistant U.S. Attorneys Kathryn Booth and Sarah Bogni are prosecuting the case.
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Mexican Man Sentenced for Violent Kidnapping of Omaha WomanRead the Press Release
United States Attorney Joe Kelly announced that Luis Maria-Aguado, 33, was sentenced today in federal court in Omaha, Nebraska, for kidnapping. Chief United States District Judge John M. Gerrard sentenced Maria-Aguado to 125 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. Maria-Aguado is a citizen of Mexico and will be deported at the completion of his prison term.
On the evening of April 12, 2019, Omaha Police Department (OPD) officers were dispatched to an Omaha address in response to a reported disturbance. Upon arrival, officers made contact with an Omaha woman (the victim) and her 17-year-old daughter. The victim and her daughter reported threats of violence from the victim’s estranged boyfriend, Maria-Aguado. The victim reported that she had ended her relationship with Maria-Aguado and he recently had moved out of her residence. The victim further reported that two days prior, on April 10, 2019, Maria-Aguado became upset with the victim during an argument at the home, grabbed her hair, and threatened to kill her. The victim provided investigators with threatening text messages from Maria-Aguado to her which included photos of mutilated men and bloodied torsos. On April 12, Maria-Aguado showed up at the victim’s residence and made entry through the basement after the victim locked the front door. The victim locked herself in a bathroom and called police when Maria-Aguado began to kick the bathroom door. Maria-Aguado left when she told him the police were coming to arrest him.
A few weeks later, on May 7, 2019, the victim’s employer contacted OPD seeking a well-being check of the victim since she had not appeared for work that day. OPD made contact with the victim’s daughter, who reported that she had not seen her mother since the prior night.
Investigators quickly located the victim’s car at the Planet Fitness parking lot and observed that her wallet and purse were still inside. They were able to obtain video surveillance footage from the Planet Fitness which showed the victim arrived and parked late on May 6. The surveillance footage showed the victim pulling into the lot in her car followed by a black Dodge Avenger. After several minutes elapsed, the victim got out of her car and got into the Avenger, which then exited the parking lot.
Detectives assigned to the OPD Missing Person’s Unit began gathering data from the victim’s and Maria-Aguado’s cell phones. Information obtained included a failed 911 call made on May 7, 2019, at 12:30 a.m. from the victim’s phone while located in the area of Lake Manawa in Council Bluffs, Iowa. Her phone was shut off thereafter. OPD detectives requested and obtained an emergency order for the collection of location data for Maria-Aguado’s cellular telephone. The location data showed that on May 7, 2019, the phone was located at the Lake Manawa State Park in Council Bluffs, Iowa, areas of south Omaha, Nebraska, with continued movement south on Highway 75 near Bellevue, Nebraska, eventually traveling into Kansas.
OPD investigators obtained an arrest warrant for terroristic threats for Maria-Aguado based on the report made by the victim on April 12, 2019. The Federal Bureau of Investigation (FBI) Omaha Division and the OPD notified the FBI Kansas City Division Violent Crime Task Force of the kidnapping of the victim by Maria-Aguado, and provided the FBI Kansas City Division with the most recent cell phone location data. Based on the information provided, on May 7, 2019, at approximately 8:45 p.m., the FBI Kansas City Violent Crimes Task Force was able to locate the victim and Maria-Aguado outside of a Walmart store in Roeland Park, Kansas. Maria-Aguado was apprehended.
Investigators later determined that Maria-Aguado followed the victim to the Planet Fitness on the night of May 6, 2019. Maria-Aguado told her he would hurt her if she didn’t get into his car, so the victim complied. After she got into Maria-Aguado’s car, he drove her to a secluded area in Lake Manawa State Park in Council Bluffs, Iowa, where he threatened to kill her. He choked her when she screamed for help, and when she tried to run away Maria-Aguado pushed her to the ground and choked her with his hands. Maria-Aguado forced the victim back in his vehicle and told her to pray while threatening to kill her. The victim stated that Maria-Aguado attempted to strangle her with his belt while they were in his car. The victim later told investigators that Maria-Aguado’s plan was to take her to Mexico with him.
This case was investigated by Omaha Police Department and the Federal Bureau of Investigation Omaha Division, with assistance from the Federal Bureau of Investigation Kansas City Division Violent Crime Task Force.
Metairie Man Sentenced for Embezzling over $7 Million and for Filing False Tax ReturnsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DEEPAK “JACK” JAGTIANI, age 61, a resident of Metairie, was sentenced today by U.S. District Judge Jay C. Zainey to 63 months in prison for embezzling over $7 million from his employer and for defrauding the government of over $1 million in income taxes. JAGTIANI previously pleaded guilty to both counts of the indictment, which charged him with wire fraud and making false statements on a federal income tax return.
According to the court documents, from 2007 to 2019, JAGTIANI served as the comptroller of Dan-Gulf Shipping, Inc., a Metairie-based freight forwarding company. In that capacity, JAGTIANI had the authority to manage the payroll and other accounts for Dan-Gulf. JAGTIANI admitted that he used his authority to pay himself excessive salaries and benefits from 2009 through early 2019. In total, JAGTIANI defrauded Dan-Gulf and its business partner of over $7,000,000.00.
JAGTIANI also admitted to filing false personal tax returns. According to court documents, for tax years 2014 to 2017, JAGTIANI claimed business losses through a fake catering business. In total, he claimed enough business losses to offset most of his income for which he would be required to pay federal income tax. In truth and in fact, neither JAGTIANI nor his spouse operated any catering business. In total, JAGTIANI avoided paying $1,232,267.00 in federal income taxes.
As to Count 1, wire fraud, Judge Zainey sentenced JAGTIANI to 63 months in prison and three years of supervised release. As to Count 2, filing false tax returns, Judge Zainey sentenced JAGTIANI to 36 months in prison and one year of supervised release. These sentences were ordered to run concurrently. JAGTIANI was also ordered to pay a $100 mandatory special assessment as to each count.
Judge Zainey further ordered JAGTIANI to pay $7,077,137.36 in restitution to Dan-Gulf and Caytrans BBC, LLC, a partner of Dan-Gulf. JAGTIANI must also pay $1,232,267.00 in restitution to the IRS for unpaid income taxes.
U.S. Attorney Strasser praised the agencies that contributed to this indictment, including the U.S. Secret Service, the Internal Revenue Service – Criminal Investigations, and the Jefferson Parish Sheriff’s Office. U.S. Attorney Strasser also extended his thanks to the Jefferson Parish District Attorney’s Office for their assistance in this matter. This case is an example of the coordinated effort of the federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force, which includes representatives from the U.S. Secret Service, the Internal Revenue Service, the Louisiana Attorney General’s Office, Louisiana State Police, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John the Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, U.S. Postal Inspection Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
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Man Sentenced for Health Care Fraud in Excess of $175,000Read the Press Release
WILMINGTON, N.C. – A Bethesda, Maryland man was sentenced today to 18 months in prison for health care fraud. In addition to the prison term imposed, he was also ordered to pay $173,870.12 to the North Carolina Medicaid Fund as restitution.
According to court documents, Christian Anthony Ekberg, 34, was an officer and minority shareholder of an out-of-state company that entered into an agreement with a North Carolina dentist. Under the agreement, the out-of-state company would provide professional management services to the dentist, including submitting Medicaid claims, and the dentist would provide dental services to patients living in skilled nursing facilities throughout North Carolina.
From September 2, 2015 through April 21, 2017, Ekberg, and others, knowingly submitted fraudulent dental claims to Medicaid. For example, although the dental records showed that only approximately 107 prophylaxes and 24 debridements had been performed for Medicaid recipients living at the skilled nursing facilities, claims were submitted falsely representing that 771 prophylaxes and 611 debridements were performed for these recipients. In total, the health care fraud resulted in Medicaid paying approximately $173,870.12 for services that had not been rendered. These funds were deposited into an account to which Ekberg had access. During the relevant time period, Ekberg signed all the checks from this account. The checks written to Ekberg, to cash, and to the out-of-state company, totaled approximately $177,034.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The North Carolina Department of Justice’s Medicaid Investigations Division (MID) investigated the case and Special Assistant U.S. Attorney Mike Heavner prosecuted the case.
The MID investigates and prosecutes health care providers that defraud the Medicaid program, patient abuse of Medicaid recipients, patient abuse of any patient in facilities that receive Medicaid funding, and misappropriation of any patients’ private funds in nursing homes that receive Medicaid funding. To report Medicaid fraud or patient abuse in North Carolina, call the MID at 919-881-2320.
The MID receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $6,160,252 for Federal fiscal year (FY) 2020. The remaining 25 percent, totaling $2,053,414 for FY 2020, is funded by the State of North Carolina.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00434-M-1.
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Man Pleads Guilty to Stealing Nude Photos of Dozens of VictimsRead the Press Release
A New York man pleaded guilty Monday to computer fraud and aggravated identity theft related to his hacking of online social media accounts and theft of nude images of dozens of female victims.
Acting Assistant Attorney General Nicholas L. McQuaid, Acting U.S. Attorney Antoinette T. Bacon of the Northern District of New York, Special Agent in Charge Thomas F. Relford of the FBI’s Albany Field Office and State University of New York (SUNY)-Plattsburgh Police Chief Patrick Rascoe made the announcement.
Nicholas Faber, 25, of Rochester, pleaded guilty to one count of computer intrusion causing damage and one count of aggravated identity theft.
As part of his guilty plea, Faber admitted that from about 2017 to 2019, he worked with co-conspirator Michael Fish to access the school email accounts of dozens of female college students and then used information from those school email accounts to gain access to the victims’ social media accounts. Faber then stole, and traded online with others, private nude photographs and movies stored in the victims’ social media accounts. Also, as a result of Faber’s crimes, the university had to allocate money and staff to identifying compromised accounts, reviewing computer and server access logs, resetting passwords, and notifying students and parents.
Faber obtained his undergraduate degree from SUNY-Plattsburgh, graduating in 2017.
Faber has also agreed to pay $35,430 in restitution to SUNY-Plattsburgh and is scheduled to be sentenced June 9. Fish pleaded guilty to computer hacking, aggravated identity theft and child pornography offenses, and is scheduled to be sentenced on March 19.
This case was investigated by the FBI with substantial assistance from the SUNY-Plattsburgh Police Department. Deputy Chief Michael Stawasz from the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal are prosecuting the case.
Malden Woman Pleads Guilty to Stealing Social Security Benefits and Bank EmbezzlementRead the Press Release
BOSTON – A Malden woman pleaded guilty today to stealing Social Security benefits and embezzling over $27,000 from a bank.
Materesa Jose, 53, pleaded guilty to one count of theft of public funds and one count of bank embezzlement. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for June 9, 2021. Jose was indicted in August 2020.
While an employee of Eastern Bank, Jose stole approximately $27,605 from the bank, some of which consisted of Social Security benefits, from September 2017 through July 2018. The account from which she stole the money belonged to an individual who had died in 2015.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of bank embezzlement provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
MS-13 member sentenced to 40 years in prisonRead the Press Release
COLUMBUS, Ohio – A local man was sentenced in federal court in Columbus today to serve 480 months in prison for participating in a racketeering conspiracy on behalf of the transnational criminal organization MS-13.
Pedro Alfonso Osorio-Flores, 41, of Columbus, took part in the mid-2015 murder of Carlos Serrano-Ramos, the November 2015 murder of 17-year-old high school student Wilson Villeda, and the December 2016 murder of Salvador Martinez-Diaz.
“Osorio-Flores was one of the most active, loyal, and violent MS-13 members in Columbus, and he was engaged in nearly every aspect of the gang’s criminal activity in this district,” said U.S. Attorney David M. DeVillers. “For this defendant, 40 years could very well be a life sentence. His appalling conduct deserves nothing less.”
Court documents detail a letter the defendant wrote and sent to one of his co-defendants in February 2020 as one example of Osorio-Flores’ loyalty to MS-13. In the letter, the defendant freely admits to being a member of MS-13 since age 13; threatens to bury a former lover alive if he ever finds her; makes threats against ‘snitches’, the police, and the government; and reaffirms his belief that MS-13 does, and will continue to ‘control the entire world.’ In the same letter, the defendant composed two different songs as an homage to MS-13 and a slight to the victims of his offenses, whom he brags about ‘butchering’ and ‘dragging [] to the hole.’
The defendant, also known as “Smokey,” is one of 23 members and associates of MS-13 in Columbus charged in a February 2018 second superseding indictment.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
According to court documents, in summer 2015, Osorio-Flores and other conspirators beat and stabbed Serrano-Ramos to death before placing his body in a shallow grave in the woods in Innis Park.
In the murder of Wilson Villeda, Osorio-Flores and others attacked and killed the victim with a machete and buried his body in a shallow grave near Serrano-Ramos’s remains in Innis Park.
In December 2016, Osorio-Flores surveilled murder victim Martinez-Diaz at the Resolute Athletic Complex before following him home. He provided location updates to fellow MS-13 members so that they could shoot and kill the victim upon his arrival home.
Osorio-Flores pleaded guilty in September 2020 to one count of conspiracy to commit racketeering.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin; and Columbus Interim Police Chief Michael Woods announced the sentence imposed by U.S. District Judge Edmund A. Sargus, Jr.
Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.
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Lake Station Man Sentenced to 36 Years in PrisonRead the Press Release
HAMMOND-Lajuan Fitzpatrick, 29, of Lake Station, Indiana, was sentenced by U.S. District Court Judge Philip P. Simon to 36 years in prison following his conviction at trial in November 2019 of conspiracy to possess with intent to distribute marijuana and discharging a firearm causing death during this drug trafficking crime, announced Acting U.S. Attorney Gary T. Bell.
The evidence at trial showed that on December 2, 2013, in Gary, Indiana, Fitzpatrick and his co-conspirators attempted to rob individuals they believed were marijuana dealers. The co-conspirators intended to resell the marijuana. Fitzpatrick fired his gun as gunfire broke out during the course of the attempted robbery. Ronaldo Correa, Jr., 22, who was coming to the aid of his victim neighbors, was shot to death.
“This investigation is an excellent example of the importance of partnership among law enforcement in holding dangerous criminals accountable,” remarked ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “ATF is committed to working alongside our partners to keep our communities safe.”
“Dealing drugs and violence go hand-in-hand and this sentence means this individual will no longer be able to bring more harm to our Hoosier communities,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “Working in collaboration with our partners we will continue to work to identify the worst of the worst and ensure they are held accountable for their actions.”
This prosecution was 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.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, East Chicago Police Department, Federal Bureau of Investigation, Gary Police Department, Hammond Police Department, Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The case was prosecuted by Assistant U.S. Attorneys David J. Nozick and Caitlin M. Padula.
Knox County Man Sentenced to 22 Years for Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky. — A Corbin, Ky., man, John Helton, was sentenced to 264 months or 22 years in federal prison on Tuesday, by U.S. District Judge Claria Horn Boom, after previously being convicted of armed methamphetamine trafficking and possession of a firearm by a convicted felon.
The evidence at trial established that, on June 9, 2019, deputies with the Knox and Laurel County Sheriff’s Offices searched the residence that Helton shared with his wife, Anita, seizing over 300 grams of crystal methamphetamine and four firearms, including three that were loaded. Helton then directed his wife to go to his mother’s residence, to get money to bond him out of jail. When law enforcement searched that residence, they found over $8,000 secreted in a closet. A search of a child’s playhouse on the property also revealed over 800 grams of additional crystal methamphetamine, and another firearm. The Kentucky State Police had made a controlled purchase of methamphetamine that was arranged with Helton, but delivered by his wife.
Anita Helton pled guilty to conspiring with Helton to distribute methamphetamine and possessing firearms in furtherance of that offense. Anita Helton was sentenced to 38 months, followed by five years of supervised release.
Under federal law, Helton must serve 85 percent of his sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jeffrey T. Scott, Special Agent in Charge, DEA, Louisville Field Division; Lt. Phillip Burnett, Acting Commissioner, Kentucky State Police; Sheriff Mike Smith, Knox County Sheriff’s Department; and Sheriff John Root, Laurel County Sheriff’s Department, jointly announced the sentencing.
The investigation was conducted by the DEA, KSP, the Knox County Sheriff’s Office, and the Laurel County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Andrew H. Trimble.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, the United States Attorney coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
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Killeen Man Indicted for Discharging a Firearm on Fort HoodRead the Press Release
In Waco today, a federal grand jury returned an indictment against 28-year-old former U.S. Army soldier Ricardo Manuele Davila-DeJesus for discharging a firearm while on Fort Hood over the weekend, stated U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The indictment charges Davila-DeJesus with aggravated assault with a dangerous weapon. According to court documents, on February 6, 2021, the defendant became intoxicated and got into an argument with several individuals inside the barracks. The argument continued outside when the defendant pulled out a .45 caliber pistol and discharged his firearm in the direction of a soldier who, fearing for his life, had retreated back into the barracks. Other individuals who were at the scene managed to subdue and disarm the defendant.
Upon conviction, Davila-DeJesus faces up to 10 years in federal prison. He remains in federal custody pending a detention hearing scheduled for 1:30 p.m. on February 11, 2021, before U.S. Magistrate Judge Jeffrey C. Manske in Waco.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This case is part of Operation Undaunted representing federal, state and local law enforcement’s commitment to combat violence and restore peace to central and west Texas communities. The FBI together with Ft. Hood Military Police Investigations investigated this case. Special Assistant U.S. Attorney Major Aaron J. Salter is prosecuting this case.
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Jury Convicts Jacksonville Man of Narcotics and Firearms OffensesRead the Press Release
NEW BERN, N.C. – Yesterday a federal jury convicted a Jacksonville man on charges of Conspiracy to Distribute and Possess With the Intent to Distribute One (1) Kilogram or More of a Mixture or Substance Containing a Detectable Amount of Heroin, a Quantity of Marijuana, and Five (5) Kilograms or More of Cocaine; Distribution of a Quantity of Heroin, and Aiding and Abetting; Possess With the Intent to Distribute One Hundred (100) Grams or more of a Mixture or Substance Containing a Detectable Amount of Heroin, a Quantity of Marijuana and a Quantity of Cocaine; Possession of Firearms in Furtherance of a Drug Trafficking Crime; and Possession of Firearms by a Convicted Felon.
According to court records and evidence presented at trial, Austin Kyle Lee, also known as Justin, 30, of Jacksonville sold heroin to dealers in Jacksonville on multiple occasions, beginning in 2016. Through further investigation, it was determined that Lee, who was on parole for a felony drug conviction out of New York, was maintaining a house next door to his probation-official residence.
Officers searched Lee’s stash house on Ridge View Drive and found over $210,000.00 in cash, 354.4 grams of cocaine, 159.72 grams of heroin, and 118.95 grams of marijuana. Additionally, a loaded Glock 19 9mm pistol, Kel-Tec 9mm pistol, and Jiminez Arms .22 pistol with obliterated serial number were located in the house. Over the course of approximately two years, Lee distributed around 5 kilograms of heroin, 20 kilograms of cocaine, and 1.75 pounds of marijuana.
Lee faces a maximum penalty of life imprisonment when sentenced in July 2021.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The Onslow County Sheriff’s Office, Jacksonville Police Department, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Duplin County Sheriff’s Office, and Federal Bureau of Investigation investigated the case and Assistant U.S. Attorneys Lucy Brown and Robert Dodson are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:18-cr-00153-FL-1.
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Indian Cancer Drug Manufacturer Agrees to Plead Guilty and Pay $50 Million for Concealing and Destroying Records in Advance of FDA InspectionRead the Press Release
Indian drug manufacturer Fresenius Kabi Oncology Limited (FKOL) has agreed to plead guilty to concealing and destroying records prior to a 2013 U.S. Food and Drug Administration (FDA) plant inspection and pay $50 million in fines and forfeiture, the Department of Justice announced today.
In a criminal information filed in federal court in the District of Nevada and unsealed today, the United States charged FKOL with violating the Federal Food, Drug and Cosmetic Act by failing to provide certain records to FDA investigators. As part of a criminal resolution, FKOL agreed to plead guilty to the misdemeanor offense, pay a criminal fine of $30 million, and forfeit an additional $20 million. FKOL also agreed to implement a compliance and ethics program designed to prevent, detect, and correct violations of U.S. law relating to FKOL’s manufacture of cancer drugs intended for terminally ill patients.
“By hiding and deleting manufacturing records, FKOL sought to obstruct the FDA’s regulatory authority and prevent the FDA from doing its job of ensuring the purity and potency of drugs intended for U.S. consumers,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “FKOL’s conduct put vulnerable patients at risk. The Department of Justice will continue to work with FDA to prosecute drug manufacturers who obstruct these inspections.”
“Pharmaceutical companies that obstruct FDA inspections jeopardize patient safety,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Maintaining the integrity of records and data is a critical part of drug manufacturing, and our office will continue prosecuting those that obstruct FDA inspections by destroying records or other means.”
“FDA inspections of pharmaceutical manufacturing facilities help ensure the strength, quality and purity of our medicines. Any attempt to obstruct or interfere with these inspections threatens the public health,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs of the FDA. “We will continue to aggressively investigate and present any such obstruction for prosecution.”
According to court documents, FKOL owned and operated a manufacturing plant in Kalyani, West Bengal, India, that manufactured active pharmaceutical ingredients (APIs) used in various cancer drug products distributed to the United States. The government alleges that prior to a January 2013 FDA inspection of the Kalyani facility, FKOL plant management directed employees to remove certain records from the premises and delete other records from computers that would have revealed FKOL was manufacturing drug ingredients in contravention of FDA requirements. Kalyani plant employees removed computers, hardcopy documents, and other materials from the premises and deleted spreadsheets that contained evidence of the plant’s violative practices.
This case is being prosecuted by Assistant Director Clint Narver and Trial Attorney Natalie Sanders of the Department of Justice’s Consumer Protection Branch, with assistance from Assistant U.S. Attorney Nicholas D. Dickinson of the U.S. Attorney’s Office for the District of Nevada. The FDA’s Office of Criminal Investigations, Los Angeles Field Office, investigated the case. The Central Bureau of Investigation in India provided invaluable assistance to U.S. authorities in the investigation of this matter.
Indian Cancer Drug Manufacturer Agrees to Plead Guilty and Pay $50 Million for Concealing and Destroying Records in Advance of FDA InspectionRead the Press Release
LAS VEGAS, Nev. – Indian drug manufacturer Fresenius Kabi Oncology Limited (FKOL) has agreed to plead guilty to concealing and destroying records prior to a 2013 U.S. Food and Drug Administration (FDA) plant inspection and pay $50 million in fines and forfeiture, the Department of Justice announced today.
In a criminal information filed in federal court in the District of Nevada and unsealed today, the United States charged FKOL with violating the Federal Food, Drug and Cosmetic Act by failing to provide certain records to FDA investigators. As part of a criminal resolution, FKOL agreed to plead guilty to the misdemeanor offense, pay a criminal fine of $30 million, and forfeit an additional $20 million. FKOL also agreed to implement a compliance and ethics program designed to prevent, detect, and correct violations of U.S. law relating to FKOL’s manufacture of cancer drugs intended for terminally ill patients.
“By hiding and deleting manufacturing records, FKOL sought to obstruct the FDA’s regulatory authority and prevent the FDA from doing its job of ensuring the purity and potency of drugs intended for U.S. consumers,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “FKOL’s conduct put vulnerable patients at risk. The Department of Justice will continue to work with FDA to prosecute drug manufacturers who obstruct these inspections.”
“Pharmaceutical companies that obstruct FDA inspections jeopardize patient safety,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Maintaining the integrity of records and data is a critical part of drug manufacturing, and our office will continue prosecuting those that obstruct FDA inspections by destroying records or other means.”
“FDA inspections of pharmaceutical manufacturing facilities help ensure the strength, quality and purity of our medicines. Any attempt to obstruct or interfere with these inspections threatens the public health,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs of the FDA. “We will continue to aggressively investigate and present any such obstruction for prosecution.”
According to court documents, FKOL owned and operated a manufacturing plant in Kalyani, West Bengal, India, that manufactured active pharmaceutical ingredients (APIs) used in various cancer drug products distributed to the United States. The government alleges that prior to a January 2013 FDA inspection of the Kalyani facility, FKOL plant management directed employees to remove certain records from the premises and delete other records from computers that would have revealed FKOL was manufacturing drug ingredients in contravention of FDA requirements. Kalyani plant employees removed computers, hardcopy documents, and other materials from the premises and deleted spreadsheets that contained evidence of the plant’s violative practices.
This case is being prosecuted by Assistant Director Clint Narver and Trial Attorney Natalie Sanders of the Department of Justice’s Consumer Protection Branch, with assistance from Assistant U.S. Attorney Nicholas D. Dickinson of the U.S. Attorney’s Office for the District of Nevada. The FDA’s Office of Criminal Investigations, Los Angeles Field Office, investigated the case. The Central Bureau of Investigation in India provided invaluable assistance to U.S. authorities in the investigation of this matter.
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Houston man indicted in Laredo for smuggling 119 illegal aliensRead the Press Release
LAREDO, Texas – A 32-year-old man has been charged with conspiracy to transport illegal aliens, announced U.S. Attorney Ryan K. Patrick.
Originally charged by criminal complaint, a Laredo grand jury returned an indictment today against Brodrick Keith Rhodes. He will appear before U.S. a magistrate judge in the near future.
The charges allege that on Jan. 12, authorities stopped Rhodes after he approached the Freer Border Patrol checkpoint driving a semi-truck and refrigerated trailer. He had claimed he was hauling lettuce and produced a bill of lading, according to the complaint.
However, law enforcement allegedly noticed discrepancies and that Rhodes appeared nervous. Further, the refrigerated trailer was set to 30 degrees but the internal temperature was at 68, according to the charges.
After a K-9 alerted to possible presence of contraband in the cargo area of the trailer and a subsequent inspection, authorities ultimately discovered 119 illegal aliens, according to the complaint.
Rhodes allegedly claimed he worked for a business in La Porte, but the bill of lading indicated he was transporting lettuce from a Laredo produce company to a location in Sugar Land. The business indicated Rhodes had never been employed with them nor do they transport outside the Houston area, according to the charges. Further, the complaint alleges the other two companies confirmed they had no record of the shipment.
According to the charges, some of the transported aliens said they had been taken to and told to get in the truck. It left soon after and did not stop until it reached the checkpoint, according to the allegations.
If convicted, Rhodes faces up to 10 years in prison and a maximum possible $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
Honduran National Sentenced to More Than Twenty Months’ Imprisonment for Illegal ReentryRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Angel Roberto Lopez (35, Honduras) to 21 months in federal prison for illegal reentry into the United States after deportation. Roberto Lopez had pleaded guilty on November 16, 2020.
According to court documents, Roberto Lopez had previously been deported from the United States to Honduras on five occasions. On September 4, 2015, Roberto Lopez was convicted of felony battery with great bodily harm after deportation, a felony offense. Following his conviction, Roberto Lopez illegally reentered the United States.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO). It was prosecuted by Assistant United States Attorney Terry B. Livanos.
Homestead Heroin Dealer Pleads Guilty to Federal Cocaine Conspiracy ChargeRead the Press Release
PITTSBURGH – Dorianne Harris pled guilty to conspiring to distribute at least 500 grams of cocaine between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Harris, age 27, formerly of Homestead, PA, pled guilty before United States District Judge J. Nicholas Ranjan. Judge Ranjan scheduled sentencing to occur on June 8, 2021, at 10:00 a.m. Harris was on federal supervised release for a prior heroin-trafficking conviction when he committed the cocaine-trafficking crime to which he pled guilty.
The law provides for a sentence of at least 5 years and up to 40 years in prison and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
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.
Hartford Man Pleads Guilty to Gun Possession and Drug Distribution ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that GLADSTONE BENJAMIN, JR., 29, of Hartford, pleaded guilty yesterday before U.S. District Judge Kari A. Dooley to drug distribution and firearm possession offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in April 2019, Hartford Police made two controlled purchases of marijuana from Benjamin at his Collins Street residence. On April 23, 2019, investigators conducted a court-authorized search of Gladstone’s residence and found a loaded Taurus 9mm handgun with an extended clip; two loaded Taurus .45 caliber handguns; a loaded semiautomatic handgun that did not contain a make, model or serial number stamp; a Remington Arms 12 gauge shotgun with an unreadable serial number; more than 1,000 rounds of loose and boxed ammunition, and distribution quantities of heroin and marijuana.
Benjamin’s criminal history includes state felony convictions for firearm and drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Benjamin pleaded guilty to one count of possession with intent to distribute heroin and marijuana, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years. Judge Dooley scheduled sentencing for May 3, 2021.
Benjamin is released on a $75,000 bond pending sentencing.
This investigation is being conducted by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Gang Member Sentenced to 46 Months in Federal Prison for Distributing FentanylRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that Anthony Esposito, also known as “Mafia,” 52, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea to 46 months of imprisonment, followed by five years of supervised release, for narcotics trafficking and firearm possession offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in 2018, the FBI’s Northern Connecticut Gang Task Force began investigating Ricardo Reyes, also known as “Rick the Ruler,” a member of the Los Solidos street gang who was distributing fentanyl, heroin, cocaine and crack in the area of Park Street and Hungerford Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Reyes. Court-authorized wiretaps confirmed that Reyes was distributing narcotics to numerous customers, and identified individuals who supplied drugs to Reyes and associates who sold drugs on his behalf. Intercepted communications also revealed Reyes was acquiring and trafficking firearms.
The investigation revealed that Reyes supplied Esposito, also a member of Los Solidos, with fentanyl that Esposito sold to his own customers in the New Haven area.
Esposito was arrested on June 17, 2019.
On June 27, 2019, a grand jury Hartford returned a 32-count indictment charging Reyes, Esposito and 13 associates with various narcotics trafficking and firearm possession offenses.
Esposito has been detained since his arrest. On August 6, 2020, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, fentanyl.
Esposito’s criminal history spans 30 years and includes convictions for firearm, drug and violent crime offenses, including a 1998 federal conviction for possession of a firearm by a convicted felon, and a 2003 state conviction for first degree sexual assault.
Reyes has pleaded guilty and awaits sentencing.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former St. Thomas Student Sentenced to Prison for Hoax Bomb ThreatsRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of RAY GHANSHAM PERSAUD, 22, to one year and one day in prison for calling in a bomb threat to the University of St. Thomas on September 17, 2019. PERSAUD, who pleaded guilty on September 22, 2020, was sentenced earlier today by Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed with the court, on three separate occasions – April 17, 2019; August 20, 2019; and September 17, 2019 – PERSAUD, who was at the time an undergraduate student at the University of St. Thomas, called in to the University’s main switchboard and falsely stated that there was a bomb on the St. Paul campus. The bomb threats caused substantial fear and disruption to the University, including the evacuation of campus buildings and a childcare center, re-routing of traffic on nearby streets, and a full response by the University’s Public Safety personnel. PERSAUD admitted that on the dates he called in the bomb threats he had failed to complete his homework and was unprepared for class.
This case was the result of an investigation conducted by the FBI and the St. Paul Police Department.
This case was being prosecuted by Assistant U.S. Attorney John Docherty.
Defendant Information:
RAY GHANSHAM PERSAUD, 22
Blaine, Minn.
Convicted:
- Using an instrumentality of interstate commerce to maliciously make a threat to damage and destroy any building, by means of explosives, 1 count
Sentenced:
- One year and one day in prison
- Two years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Ku Medical Center Employee Pleads Guilty to Embezzling More Than $500,000Read the Press Release
KANSAS CITY, KAN. – Michael Tae Kim Ahlers, 49, of Lenexa, Kansas, has pleaded guilty to federal charges of bank fraud and filing a false tax return related to a scheme to embezzle money from the University of Kansas Medical Center (KUMC).
“Michael Ahlers abused his position as the Administrative Officer for an academic and research medical center, stealing more than $500,000 to enrich himself,” said First Assistant U.S. Attorney Duston Slinkard. “His guilty plea should send a message that, no matter your position, you cannot profit illegally or violate the trust of the company who hires you.”
“During this investigation, state and federal partners worked extremely well together to make certain these criminal acts did not go unpunished,” said KBI Director Kirk Thompson.
“For six years, Mr. Ahlers embezzled more than half a million dollars for his personal benefit, while taking steps to circumvent the University’s Finance and Administration Department,” said David Talcott, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “This type of financial fraud is a felony offense that carries severe consequences and we are committed to protect the integrity of the tax system and innocent victims that suffer a monetary loss.”
“Today’s plea is a reminder that the United States Secret Service is committed to aggressively investigating and pursuing financial crimes,” said Brandon C. Bridgeforth, Special Agent in Charge, U.S. Secret Service Kansas City Field Office. “This defendant abused his position for his own personal benefit by taking advantage of his position of trust and the University of Kansas Medical Center. This investigation is a testament to the strong partnership between the U.S. Secret Service, Internal Revenue Service, Kansas Bureau of Investigation and the U.S. Attorney’s Office.”
According to First Assistant U.S. Attorney Slinkard, the charges, and other information presented in court: Ahlers was the Administrative Officer for the Occupational Therapy (OT) Education Department at the KUMC in Kansas City. As the Administrative Officer, Ahlers was responsible for all administrative tasks and financial transactions for the OT Education Department, including budget management, purchasing, billing of external entities, and grant management. From at least 2009 and continuing to 2015, Ahlers used that position to steal more than $500,000 to pay for his personal expenses.
To conceal the fraud, instead of forwarding certain KUMC funds to the Institutional Finance and Administration Department, Ahlers deposited the funds into a KUMC Credit Union account. Using the KUMC Credit Union account allowed Ahlers to avoid oversight that would have happened in the normal course, by which funds are deposited into a state-controlled bank account, revenue recorded in the university financial system, and funds allocated to department accounts that are reconciled on a monthly basis. Ahlers also created invoices outside of the normal system, which prevented others within KUMC from learning about the KUMC Credit Union account and Ahlers’ use of it for his personal gain.
Ahlers failed to include embezzled funds on his federal tax returns, resulting in a tax loss for the years 2009 through 2015 of $104,246.
Sentencing is scheduled for May 13, 2021 at 1:30, before U.S. District Judge Daniel D. Crabtree.
This case is being investigated by the Kansas Bureau of Investigation, IRS Criminal Investigation, and the United States Secret Service.
Assistant U.S. Attorney Ryan J. Huschka is prosecuting the case.
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Former Attorney Sentenced to 1 ½ Years for Stealing Retainer Fees from Clients Seeking Child Adoption ServicesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Steven G. Dubin, 66, of Holland, PA, was sentenced to 18 months in prison, three years of supervised release, and ordered to pay $74,800 restitution by United States District Court Judge Gene E.K. Pratter for fraud stemming from a scheme to steal his clients’ retainer fees and use them for other expenses.
In June 2018, the defendant pleaded guilty to wire fraud. Dubin was an attorney licensed to practice in Pennsylvania who offered services to prospective adoptive parents. From December 2010 to February 2013, Dubin stole clients’ retainer fees which he falsely represented would be held in an escrow account, to be spent on those clients’ future expenses in the adoption process. In addition, Dubin began operating his own “Ponzi scheme,” using retainer fees from new clients to pay himself for legal fees or expenses related to other clients. Even after he was disbarred in 2012, Dubin continued to accept new retainer fees from clients. In some cases, he still represented himself to be an attorney licensed to practice law.
“The process of adopting a child can be long, complicated, and emotionally draining, and prospective parents often rely on professionals like adoption attorneys to navigate the bureaucratic hurdles,” said Acting U.S. Attorneys Williams. “Here, Steven Dubin took advantage of this position of trust to steal money from unsuspecting clients who thought he was going to help them adopt a child, even after being disbarred. His behavior is a despicable violation of professional ethics.”
“Steven Dubin had no compunction about lying to his clients, doing so deliberately and repeatedly,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “These people were depending on him to shepherd them through the adoption process and hopefully bring a child into their lives. Instead, he spent their money as his own and hid his eventual disbarment, abandoning all pretense of professional ethics and personal morality. Finally, he’s being held accountable for those years of clear-cut fraud.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Vineet Gauri.
Engineer Pleads Guilty to More Than $10 Million of COVID-Relief FraudRead the Press Release
A Texas engineer pleaded guilty today for filing fraudulent bank loan applications seeking more than $10 million dollars in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas,
Inspector General Laura S. Wertheimer of the Federal Housing Finance Agency (FHFA) – Office of Inspector General (OIG), Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) – OIG, Inspector General Hannibal “Mike” Ware of the SBA-OIG and Inspector in Charge Delany De Leon-Colón of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.Shashank Rai, 30, of Beaumont, pleaded guilty to one count of making false statements to a bank. He was charged on May 13, 2020, with violations of wire fraud, bank fraud, false statements to a financial institution, and false statements to the SBA.
As part of his guilty plea, Rai admitted that he sought millions of dollars in forgivable loans guaranteed by the SBA from two different banks by claiming to have 250 employees earning wages when, in fact, no employees worked for his purported business. Rai made two fraudulent claims to two different lenders for loans guaranteed by the SBA for COVID-19 relief through the Paycheck Protection Program (PPP). In the application submitted to the first lender, Rai sought $10 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of $4 million. In the second application, Rai sought approximately $3 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of approximately $1.2 million.
According to court documents, the Texas Workforce Commission provided information to investigators of having no records of employee wages having been paid in 2020 by Rai or his purported business, Rai Family LLC. In addition, the Texas Comptroller’s Office of Public Accounts reported to investigators that Rai Family LLC reported no revenues for the fourth quarter of 2019 or the first quarter of 2020.
According to court documents, materials recovered from the trash outside of Rai’s residence included handwritten notes that appear to reflect an investment strategy for the $3 million, which is the amount of money that Rai allegedly sought from the second lender.
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 up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This case was investigated by the FHFA-OIG, FDIC-OIG, SBA-OIG, and USPIS. Assistant Chief L. Rush Atkinson and Trial Attorney Lou Manzo of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Frank Coan and Nathaniel Kummerfeld for the Eastern District of Texas are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Elizabeth City Man Sentenced for Firearm Offense After Running from PoliceRead the Press Release
GREENVILLE, N.C. – Khyree Banks of Elizabeth City was sentenced today to 40 months in prison for possessing a firearm and ammunition as a convicted felon. Banks’ 5 prior state felony convictions and 20 prior misdemeanor convictions include multiple instances of breaking and entering, larceny, and felony possession of cocaine.
According to court documents and statements made in court, on December 27, 2018, officers of the Elizabeth City Police Department were on patrol just before 2 p.m., when they initiated a traffic stop on a dark 2002 Mercedes Benz for illegal window tint at the intersection of S Road St. and Shepard St.
As the car came to a slow roll, the rear passenger, Khyree Banks, jumped out of the car with a silver pistol in his hand and turned toward the officers. Banks lost his balance after stepping out of the car but caught himself by placing his firearm hand on the ground. He then turned and ran behind a building, and both officers chased him with their firearms drawn.
Banks looped around the building to the road, where he eventually followed commands to slow down and was detained. During the foot chase, the Mercedes had driven away. In the place where Banks had stumbled out of the car, officers found a firearm magazine with 10 .22 caliber bullets.
Officers asked Banks where the gun had gone, and he admitted that he had dropped it behind the building. In a grassy area by Banks’ flight path, officers found a Ruger .22 caliber semi-automatic handgun. It contained a second magazine loaded with 10 rounds.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Elizabeth City Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:19-cr-00011-BO.
El Salvadoran Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Six TimesRead the Press Release
A man who illegally returned to the United States after being deported six times was sentenced today to one year in federal prison.
Rafael Gutierrez-Mancia, age 31, a citizen of El Salvador illegally present in the United States and residing in Storm Lake, Iowa, received the prison term after a guilty plea on October 15, 2020, to one count of illegal reentry into the United States after having been deported following a conviction for an aggravated felony.
At the guilty plea, Gutierrez-Mancia admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Gutierrez-Mancia was first deported in September 2009 following a conviction in the Iowa District Court for Buena Vista County for identity theft, an aggravated felony, where Gutierrez-Mancia worked using someone else’s name. In July 2011, Gutierrez-Mancia was convicted in Texas of illegally reentering the United States, a felony, and was deported a second time in January 2012. He was deported a third time in April 2013. In August 2013, Gutierrez-Mancia was convicted in Texas of illegally entering the United States, a misdemeanor, and deported a fourth time in October 2013. He was deported a fifth time in July 2014. In November 2014, Gutierrez-Mancia was convicted in Texas of illegally entering the United States, a misdemeanor, and deported a sixth time in January 2015. In July 2020, Gutierrez-Mancia came to the attention of immigration agents following his arrest under an alias on traffic charges in Franklin County, Iowa.
Gutierrez-Mancia was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gutierrez-Mancia was sentenced to 12 months’ and one day imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Gutierrez-Mancia is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-57.
Dark Web Trafficker Pleads Guilty to Distributing OpioidsRead the Press Release
ALEXANDRIA, Va. – A Florida man pleaded guilty today to unlawfully distributing thousands of prescription opioid pills in exchange for over half a million dollars through the “dark web.”
According to court documents, between 2012 and 2020, Daren James Reid, 35, of Fort Lauderdale, used the dark web to distribute oxycodone. Under the monikers “Oxyflight” and “Imperial Royalty,” Reid sold over 12,000 oxycodone pills, the sales of which yielded a profit of over $500,000. Reid used dark web sites such as Silk Road, Wall Street, and Apollon to advertise and sell oxycodone pills of various strengths and prices. Reid utilized the U.S. Postal Service to illegally mail the pills to his customers across the U.S. in exchange for Bitcoin payments. Reid also possessed over one kilogram of oxycodone, morphine, and other pills in a storage facility in Florida.
“Reid preyed upon the vulnerabilities of others by illegally distributing over half a million dollars of highly addictive opioids through dark web markets,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA, along with its law enforcement partners, will continue to investigate and hold accountable individuals who pose a significant danger to our communities by placing profits over lives.”
Reid pleaded guilty to unlawful distribution and possession with the intent to distribute oxycodone. He is scheduled to be sentenced on June 1 and faces a maximum penalty of 20 years in prison for each of the counts. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Antonio J. Gomez, Inspector in Charge of the Miami Division of the U.S. Postal Inspection Service, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the plea.
Special Assistant U.S. Attorney Karolina Klyuchnikova is prosecuting the case.
This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force, which is composed of FBI agents and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. The task force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-6.
Cruise ship passenger sentenced for attempting to strangle intimate partner while at seaRead the Press Release
GALVESTON, Texas – A 45-year-0ld resident of Watford City, North Dakota, has been ordered to prison for his conviction of assault within the special maritime and territorial jurisdiction of the United States, announced U.S. Attorney Ryan K. Patrick.
Hector Fernando Blanco pleaded guilty Jan. 17, 2020.
Today, U.S. District Judge Jeffrey Brown ordered Blanco to serve a total of 36 months in federal prison to be immediately followed by two years of supervised release.
At the time of his plea, Blanco admitted he attempted to strangle and suffocate a woman while aboard a cruise ship off the coast of Galveston. He acknowledged he had been dating and intimate with the victim.
“No excuse can justify Hector Blanco’s violent actions that turned a dream vacation into a dreadful nightmare for his victim,” said Special Agent in Charge Perrye K. Turner of the FBI. “I am extremely proud of FBI special agents in the Texas City Resident Agency and our victim specialists who provided compassionate support to the brave survivor who reported this crime.”
On Nov. 18, 2018, Blanco intentionally assaulted the victim in his cabin aboard a Royal Caribbean cruise ship. He placed his hand and then a bath towel over her mouth, then twisted a towel around her neck and dragged her on the floor of the cabin. Blanco tripped and she was able to run out of the cabin and report the incident to security personnel aboard the ship.
The assault occurred aboard the Liberty of the Seas, which at the time was a foreign vessel registered in the Bahamas. At the time of the assault, the cruise ship was located approximately 45 miles from Galveston in the Gulf of Mexico.
Blanco was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.
Convicted Felon Sentenced to 33 Months in Federal PrisonRead the Press Release
In Midland today, a federal judge sentenced 33-year-old Odessa resident Christopher Caswell to 33 months in federal prison for being a convicted felon who pointed a rifle at and threatened a driver, announced U.S. Attorney Ashley C. Hoff.
In addition to the prison term, U.S. District Judge David Counts ordered that Caswell be placed on supervised release for a period of three years after completing his prison term.
According to court documents, on August 29, 2020, Odessa Police officers responded to the 2700 block of Eisenhower Road in reference to a subject with a gun. The victim reported to police that while stopped at an intersection, he saw the defendant and another individual arguing in front of a residence. The defendant then approached the victim’s vehicle while pointing a rifle at the victim and telling him to mind his own business. The victim drove off and contacted police. Subsequently, officers confronted Caswell while he was walking southbound on Eisenhower Road holding a black rifle. Caswell dropped the Hi-Point 9 mm rifle and evaded officers on foot.
On September 17, 2020, members of the U.S. Marshals Service Lone Star Fugitive Task Force located Caswell and arrested him in Dallas. He has since remained in federal custody.
On November 4, 2020, Caswell pleaded guilty to the felon-in-possession charge. His criminal history reveals two prior state felony convictions in Odessa for evading arrest/detention.
The Odessa Police Department investigated this case. Assistant U.S. Attorney Monica Daniels prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Connecticut Man Charged with Transportation and Interstate Travel with the Intent to Engage in Criminal Sexual ActivityRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Capozza, age 39, of Newington, Connecticut, was indicted on February 3, 2021, by a federal grand jury for transportation with the intent to engage in criminal sexual activity, and interstate travel with the intent to engage in a sexual act with a minor.
According to Acting United States Attorney, Bruce D. Brandler, the indictment alleges that between July and October of 2020, Capozza travelled to Pennsylvania in order to engage in a sexual act with a minor, and also transported the minor back to Connecticut and also Massachusetts in order to engage in criminal sexual activity.
The charges stem from an investigation by the Federal Bureau of Investigation (FBI), the Omaha, Nebraska Police Department, and the United States Attorney’s Offices for the Districts of Connecticut and Nebraska. Assistant United States Attorney James Buchanan is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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 https://www.justice.gov/psc and click on the tab "resources."
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Clinton Man Sentenced to Prison for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALEXANDER LUONG, 31, of Clinton, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for illegal possession of a firearm.
According to court documents and statements made in court, on February 14, 2020, law enforcement conducted a court-authorized search of Luong’s residence and found a stolen Smith and Wesson 9mm pistol, a loaded Glock .40 caliber pistol, and a large capacity magazine.
In 2012, Luong was convicted in state court of first degree unlawful restraint. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On September 17, 2020, Luong pleaded guilty to possession of a firearm by a convicted felon.
Luong, who is released on bond, is required to report to prison on March 16.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Clinton Police Department. The case was prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Charlotte County Cyberstalkers Sentenced to PrisonRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Bretton Howard Osborne (29, Punta Gorda) to 3 years and 8 months in federal prison for stalking and conspiracy to commit stalking. He was also ordered to complete 300 hours of community service.
Osborne’s co-defendant, Ian Douglas McGuire (30, Port Charlotte), was previously sentenced to 5 years in federal prison for the same offenses. Osborne and McGuire have also been ordered to pay victim restitution.
Osborne and McGuire had previously pleaded guilty.
According to court documents, between March 8, 2019, and June 27, 2019, McGuire and Osborne conspired together to stalk and harass victim “A.G.W.” Together they committed multiple acts of stalking using the U.S. Mail and the internet with the intent to injure, harass, and intimidate the victim, causing the victim to fear serious bodily injury. They also caused substantial emotional distress to the victim. Among other things, McGuire and Osborne posted videos of the victim on McGuire’s YouTube channel and pinned to those videos personal information of the victim. They also mailed items, including fecal matter and a dead kitten to the victim and ordered services, food, and materials to be delivered to her home that she did not authorize.
This case was investigated by the Charlotte County Sheriff’s Office, the Punta Gorda Police Department, the North Port Police Department, the Federal Bureau of Investigation, and the United States Postal Inspection Service. It was prosecuted by Chief Assistant United States Attorney Jesus M. Casas.
Carlisle Woman Indicted for Social Security FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Virginia Hayden, age 69, of Carlisle, Pennsylvania, was indicted on February 3, 2021, by a federal grand jury on 14 counts of wire fraud related to the theft of social security funds.
According to Acting U.S. Attorney Bruce D. Brandler, the indictment alleges that Hayden failed to notify the Social Security Administration that her husband was missing and continued to receive his social security funds between 2011 and 2017. The total amount of the funds she improperly collected was $113,471. Hayden was charged with the murder of her husband in the York County Court of Common Pleas in April of 2019. Those charges are still awaiting trial.
The matter was investigated by the Social Security Administration’s Office of Inspector General. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for this offense is up to 240 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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California Attorney Arrested for Multimillion-Dollar Investment Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of DEREK JONES on charges of wire fraud and aggravated identity theft. As alleged in an Indictment unsealed today in Manhattan federal court, JONES, while licensed as an attorney in California, defrauded investors in businesses JONES controlled out of at least approximately $4.5 million. The case has been assigned to U.S. District Judge Loretta A. Preska. JONES, who was arrested this morning in California, will be presented later today before a magistrate judge in the Central District of California. Arraignment will be tomorrow before Judge Preska by teleconference.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Derek Jones not only failed to live up to the canons of the legal profession, he affirmatively lied to investors and defrauded them out of millions of dollars. As alleged, Jones lied about a real estate development opportunity on land he neither owned nor was developing, and he lied to investors to create the false impression that he had real businesses with real employees. Jones allegedly spent investors’ money on himself and his family, and to pay some investors in Ponzi-like fashion. Now, thanks to the FBI, Jones is in custody and facing federal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Jones solicited investments from various clients based on false representations of BlueRidge’s and Realize’s assets. In reality, while at least one of the companies held an account balance in the negative, Jones allegedly was using money received from the fraud to fund personal expenses to include private school tuition for at least one of his children. Investment fraud schemes are unfortunately all too common. Our efforts to bring the perpetrators to justice are as well.”
As alleged in the Indictment:[1]
From at least 2012 through at least 2019, JONES solicited and obtained investments for various companies and investment funds he controlled, including the purported real estate development and investment firm BlueRidge Realty (“BlueRidge”) and the purported venture capital firm Realize Holdings (“Realize”).
JONES routinely made materially false oral and written statements to induce victims to invest, including statements that lied about BlueRidge’s and Realize’s assets. For example, JONES falsely claimed that BlueRidge was developing a “resort village” on land it controlled in Washington State, when in fact neither BlueRidge nor JONES owned or controlled the property, let alone had begun developing a resort there. Additionally, JONES sent a potential Realize investor an altered bank statement showing a balance in a Realize bank account of more than $7 million – at a time when that bank account actually had a negative balance of approximately $268.71.
JONES defrauded investors out of at least approximately $4.5 million. He misappropriated investments and used the funds to, among other things, transfer money to himself or relatives, pay tuition for a private school attended by one or more of his children, and make Ponzi-like payments to other investors. To prolong and conceal the fraud scheme, JONES regularly told lies designed to avoid meetings with or inquiries from victims. For example, in explaining his failure to respond promptly to questions or his reason for postponing an upcoming meeting, JONES falsely told different investors, on different occasions, that one of his relatives was in poor health. JONES also used the names of other individuals – without those individuals’ authorization or knowledge – to communicate via email with investors and thus foster the illusion that JONES’s businesses were viable operations with real employees.
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JONES, 46, of San Marino, California, is charged with one count of wire fraud, which carries a maximum potential prison sentence of 20 years, and two counts of aggravated identity theft, each of which carries a mandatory consecutive prison sentence of two years. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney David Abramowicz is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Buchanan Woman Pleads Guilty to Credit Card FraudRead the Press Release
ROANOKE, Va.- Patricia Mosely, a Buchanan, Virginia woman, pleaded guilty yesterday in U.S. District Court in Roanoke to multiple credit card charges, Acting United States Attorney Daniel P. Bubar announced.
Moseley, 61, waived her right to be indicted and pleaded guilty yesterday to three counts of access device fraud. At sentencing, Moseley faces a maximum statutory penalty of up to 10 years and/or a fine of up to $250,000.
According to court documents, in three separate instances, using credit card accounts opened by three individuals, CS, RC, and PJ, Mosely obtained merchandise from Best Buy on Valley View Boulevard in Roanoke, Virginia.
Specifically, on June 30, 2016, Mosley obtained $1,368 in merchandise from Best Buy on Valley View Boulevard in Roanoke, Virginia using the credit card account of PJ without their knowledge or consent.
On July 6, 2016, Mosely obtained $2,737 in merchandise using the credit card account of CS, without their permission or knowledge.
Mosely admitted to using the credit card accounts of CS, RC, and PJ to obtain $4,105 in merchandise from the same retailer, again without the permission or knowledge of the card holders.
The investigation of the case was conducted by the United States Secret Service, and the Virginia State Police. Assistant United States Attorney Charlene R. Day is prosecuting the case for the United States.
Boston Gang Member Pleads Guilty to Cocaine Trafficking and Firearm PossessionRead the Press Release
BOSTON – A Boston gang member pleaded guilty today in federal court in Boston to a cocaine conspiracy and firearm possession.
Winston McGhee, 36, of Dorchester, pleaded guilty to conspiracy to distribute cocaine and cocaine base and being a felon in possession of a firearm. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 10, 2021. Under the terms of the plea agreement, the parties agreed to a sentence of 115 months in prison.
In June 2020, McGhee was charged along with 23 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement conducted an investigation into drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, Mass., formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The second part of the investigation, which included McGhee, targeted large-scale drug suppliers and their associates, which included Boston street gang members. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown.
At the conclusion of the investigation, law enforcement executed search warrants at a “stash house” and McGhee’s residence, where McGhee was arrested, and recovered approximately $25,000 in cash and a firearm.
On Feb 2, 2021, co-defendant Eric Davis pleaded guilty to conspiracy to distribute and possess with intent to distribute 500 grams of more of cocaine and cocaine base and being a felon in possession of a firearm.
On the charge of conspiracy to distribute and possession with intent to distribute cocaine and cocaine base, McGhee faces a sentence of up to 30 years in prison, at least six years and up to life of supervised release and a fine of up to $2 million. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Commissioner Dennis White made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin O’Donnell and Timothy Moran of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Beckley Woman Pleads Guilty to Drug ChargeRead the Press Release
HUNTINGTON, W.Va. –United States Attorney Mike Stuart announced that Breyanna Wilkerson, of Beckley, pled guilty to possession with intent to distribute heroin. Wilkerson faces up to 20 years in prison when sentenced on May 10, 2021.
“Wilkerson was caught in Huntington with 91 grams of heroin and fentanyl,” said United States Attorney Mike Stuart. “There is no doubt that by seizing these dangerous controlled substances, the excellent work of law enforcement prevented a number of overdoses.”
Wilkerson admitted that on May 2, 2019, officers searched her hotel room at the Days Inn on Route 60 in Huntington. Wilkerson told the officers everything in the room belonged to her. Officers found 91 grams of heroin and fentanyl in the nightstand.
The Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00205.
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Bank Robbery Lands Guthrie Man in Federal Prison for More Than 14 YearsRead the Press Release
OKLAHOMA CITY – Last week, BRANDON SCOTT NEWBERRY, 39, of Guthrie, was sentenced to serve 169 months in federal prison for bank robbery, announced U.S. Attorney Timothy J. Downing.
On June 3, 2020, a federal grand jury returned a one-count Indictment charging Newberry with the robbery of City National Bank and Trust, located in Oklahoma City.
According to court documents and public record, Newberry entered the bank on May 12, 2020. He then handed the teller a demand note, which included a warning that Newberry was armed. In response, the teller provided cash to Newberry. Later that day, Newberry was arrested after he surrendered to local law enforcement. Law enforcement recovered at the time of his arrest most of the stolen money.
On August 19, 2020, Newberry pleaded guilty to the Indictment.
On February 4, 2021, U.S. District Judge Scott L. Palk sentenced Newberry to serve 169 months in federal prison, followed by three years of supervised release. Judge Palk also ordered Newberry to pay $770 in restitution, representing the amount of stolen money not recovered by law enforcement. At the sentencing hearing, Judge Palk noted Newberry’s continued propensity to engage in criminal activity despite his prior felony convictions, including convictions of murder and robbery.
This case resulted from an investigation by the Federal Bureau of Investigation’s Oklahoma City Field Division, with assistance from the Midwest City Police Department and the Oklahoma City Police Department. Assistant U.S. Attorney Stan West prosecuted the case.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Amherst Man Indicted for Threatening Members of Congress and State RepresentativeRead the Press Release
CONCORD –Ryder Winegar, 33, of Amherst was indicted by a federal grand jury on Monday and charged with six counts of threatening members of Congress and one count of threatening a New Hampshire State Representative, United States Attorney Scott W. Murray announced today.
Winegar was arrested on January 11, 2021 and is being detained pending trial.
The original complaint filed in court alleges that on December 16 and 17, 2020, Winegar left voicemails at the offices of six members of the United States Congress in the District of Columbia. In some of the messages, Winegar identified himself by name or identified his telephone number. The voicemails threatened to hang the members of Congress if they did not “get behind Donald Trump.” For example, in one message, Winegar allegedly said, “I got some advice for you. Here’s the advice, Donald Trump is your president. If you don’t get behind him, we’re going to hang you until you die.” According to the indictment, on December 14, 2020, Winegar also contacted a New Hampshire State Representative by email threatening to “pull him from his bed and hang him.”
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 U.S. Capitol Police with assistance from the United States Marshals Service, U.S. Customs and Border Protection, the Federal Bureau of Investigation, the Amherst Police Department, and the New Hampshire Attorney General’s Office.
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Alleged shooter set to appear in federal courtRead the Press Release
VICTORIA, Texas – A 19-year old Bloomington man has been charged with assault on a federal officer and discharging a firearm in furtherance of a crime of violence, announced U.S. Attorney Ryan K. Patrick.
Jose Luis Vazquez is expected to make his initial appearance before U.S. Magistrate Judge Jason B. Libby at 10 a.m. today in Corpus Christi.
The criminal complaint, filed Feb. 4, alleges law enforcement had attempted to arrest Vazquez at his residence on the afternoon of Feb. 3. They announced their presence and called out to him, according to the allegations.
The complaint alleges Vazquez then exited the location and immediately started firing a weapon at authorities before retreating inside the home. He appeared again with a pistol in his hand, according to the charges.
Law enforcement allegedly then returned fire, injuring Vazquez.
During the exchange, fragments of Vasquez’s gunfire allegedly hit the body of one of the authorities as well as the vehicle they were using for cover.
The complaint alleges Vazquez had fired a Smith and Wesson M&P40, .40 caliber semi-automatic pistol during the altercation.
If convicted, Vazquez faces up to 20 years in Federal Prison.
The FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas Rangers and U.S. Marshals Service are conducting the investigation with assistance from the Victoria County Sheriff’s Office and Victoria County District Attorney’s Office. Assistant U.S. Attorney Patti Hubert Booth is prosecuting this case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
After Nearly 23 Years with the Department of Justice, United States Attorney Deegan Announces RetirementRead the Press Release
United States Attorney Peter E. Deegan, Jr. of the Northern District of Iowa has announced his resignation effective midnight on Wednesday, February 17, 2021. Upon his departure from the Department of Justice, Mr. Deegan plans to join a private law firm based in the Midwest.
Mr. Deegan’s career as a federal prosecutor began in 1998 when he joined the Northern District of Iowa’s Sioux City branch office as a Special Assistant United States Attorney employed through the Iowa Attorney General’s Office. Mr. Deegan prosecuted methamphetamine manufacturers and traffickers as part of the Midwest High Intensity Drug Trafficking Area’s methamphetamine initiative. Starting in 1999, as an Assistant United States Attorney, he prosecuted a full variety of federal criminal cases from narcotics and violent crime to complex fraud, child sexual exploitation, and business crimes. Over the course of his career, Mr. Deegan served as a federal prosecutor in the Northern District of Iowa and the Eastern District of Michigan in Detroit. From early 2015 until his confirmation as United States Attorney in September 2017, Mr. Deegan served as the Chief of the Criminal Division in the Northern District of Iowa.
“I am truly grateful for the opportunity to serve as the United States Attorney for the Northern District of Iowa. Representing our nation has been the privilege of my lifetime and it has been an honor to have been entrusted with that responsibility,” Deegan said. “Of course, all of the many accomplishments of this office during my tenure are directly attributable to the extraordinary work of the attorneys and staff of the Northern District of Iowa. Their dedication and commitment to justice cannot be overstated. Nor would our accomplishments have been possible without the federal, state, and local law enforcement partners who dedicate their lives and risk their personal safety every day to make our communities safer. I will be forever humbled to have been part of the tremendous team we have in the Northern District of Iowa. I wish the Biden and Harris Administration the very best as it leads our nation forward.”
Below is a brief synopsis of some of the achievements of the U.S. Attorney’s Office during Mr. Deegan’s tenure as United States Attorney. Please refer to the district’s website at https://www.justice.gov/usao-ndia for a complete collection of press releases.
Violent Crime
During Mr. Deegan’s tenure, the office added two new prosecutors dedicated to violent crime. In order to prevent future acts of violence, the office prioritized prosecuting dangerous offenders who illegally possessed firearms or ammunition. In 2020, nearly half of the offenders charged in the district were involved in the illegal use or possession of guns.
Opioids and Methamphetamine Trafficking
The office also prioritized prosecuting those trafficking in opioids and methamphetamine. Between 2005 and 2017, the number of opioid related deaths in Iowa more than tripled, peaking in 2017 with 206 opioid deaths in the state. In response to the growing opioid problem, the office grew its partnership with the Cedar Rapids Police Department to continue the Eastern Iowa Heroin Initiative, funded by the federal Midwest High Intensity Drug Trafficking Area program. The initiative has a three-pronged approach: enforcement, prevention, and treatment. As a part of the initiative’s enforcement efforts, the U.S. Attorney’s Office prosecuted more than 100 defendants for felony-level opioid charges. Those prosecutions included charges for trafficking in heroin, fentanyl, and related drugs. A number of the prosecutions were for drug distributions that resulted in deaths. This initiative also provided communities across Iowa with drug awareness programs, first-responder trainings, and it highlighted the need for detoxification, treatment and other services. Among those services is increased access to naloxone, also known as Narcan, used to treat opioid overdoses.
Among the many opioid-related cases prosecuted during Mr. Deegan’s tenure was United States v. Samantha Jo Rogers. Rogers, who was a licensed occupational therapist, used her job to access medical records of thousands of people. She then used that information to enter and burglarize over a dozen homes in an attempt to steal opioids from elderly patients. As a result of the prosecution, Rogers was sentenced to federal prison and ordered to surrender her occupational therapy license.
At the same time, recognizing that methamphetamine remained a plague on communities in the district, the office also focused on prosecuting major-source methamphetamine traffickers. Those prosecutions included United States v. Monee Yodprasit, a drug trafficker in Sioux City, Iowa, who was sentenced to over 32 years in federal prison for receiving and distributing large quantities of methamphetamine while armed. During the investigation of Yodprasit, law enforcement seized over 20 pounds of methamphetamine, 20 grams of heroin, two pounds of cocaine, and two loaded firearms.
False Claims Act
During United States Attorney Deegan’s term, the office dedicated additional resources to civil enforcement of the False Claims Act. The office bolstered its affirmative investigatory practice to unmatched levels while becoming a favored environment for Qui Tam lawsuits. The office resolved numerous Qui Tam lawsuits of national significance, including a multidistrict resolution of $37.5 million with a large durable medical equipment manufacturer. The office also resolved several highly significant affirmative investigations under the False Claims Act, including settlements or judgments exceeding $1 million with an Iowa surgeon and a regional skilled nursing facility chain.
Elder Justice
The office also focused on protecting the most vulnerable victims in the district, including elderly individuals who are often targeted by fraud. Fraud targeting the elderly is uniquely unconscionable and harmful because of its potential to deprive elderly people of their dignity and quickly drain their life savings. The office used every available tool to address the problem and prosecuted dozens of defendants for their roles in defrauding the elderly. Such prosecutions included United States v. Howard Derby and Patti Derby. In that case, the Derbys stole hundreds of thousands of dollars from Howard Derby’s elderly mother by using powers of attorney to transfer money from her bank account purportedly to use for her benefit. Instead, the Derbys spent the money on themselves. After they had drained her account of money, the victim was no longer able to afford her assisted living facility. After moving out of the assisted living facility, the victim lost a significant amount of weight, broke her wrist, and was hospitalized. Both Howard and Patti Derby were sentenced to years in federal prison.
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Monday 8 February 2021
Wisconsin Man Sentenced to 25 Years in Federal Prison for Sexual Exploitation of a ChildRead the Press Release
A man who sexually exploited a child was sentenced today to 25 years in federal prison.
Caleb Durr, age 20, from Hazel Green, Wisconsin, received the sentence after an August 19, 2020 guilty plea to one count of sexual exploitation of a child. Evidence presented at the plea hearing and the detention hearing established that, in 2019, Durr used an iPhone to produce sexually explicit images of an eight-year-old girl in Dubuque. Evidence presented at the sentencing hearing established that defendant sexually exploited a second child and possessed child pornography.
Durr was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Durr was sentenced to 300 months’ imprisonment. A special assessment of $100 was imposed and Durr must also serve a five-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque Police Department, the Waterloo Police Department, and the Iowa Division of Criminal Investigation.
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.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-1010.
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U.S. Attorney’s Office in EDVA Recovers $242 Million in 2020 for Victims and in Criminal and Civil MattersRead the Press Release
ALEXANDRIA, Va. – Acting U.S. Attorney Raj Parekh announced today that the United States Attorney’s Office for the Eastern District of Virginia (EDVA) collected approximately $242,000,000 in criminal, civil, and asset forfeiture actions in Fiscal Year 2020 on behalf of private and government victims.
“It is an honor to serve with my colleagues in the Eastern District of Virginia, all of whom have supported each other with tremendous resolve as we face the many challenges of the ongoing pandemic together,” said Acting U.S. Attorney Raj Parekh. “Our criminal and civil recovery teams worked tirelessly during a very difficult year to make crime victims whole, use asset forfeiture to reclaim the illicit proceeds of crimes, and protect the public fisc. We will continue our firm commitment to preserving the principles of equality, equity, and justice for all as we uphold victims’ rights and protect our communities throughout 2021 and beyond.”
During FY2020, EDVA recovered approximately $242 million in criminal matters on behalf of crime victims and in civil matters where federal money was at stake. Of these recoveries, $22.3 million involved restitution for victims within EDVA’s criminal cases, and $41.1 million was collected through civil actions and settlements where the federal government was a victim, such as defense procurement fraud, healthcare fraud, and qui tam (whistleblower) cases, as well as the collection of agency debts and other related civil enforcement matters. The remaining $167.9 million was recouped civilly in joint matters with EDVA and the Justice Department’s Civil Division or various Department litigating components, working with other U.S. Attorneys’ Offices and the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit.
Working with DOJ partner agencies and divisions, EDVA also collected a total of approximately $10.6 million through asset forfeiture in FY2020. Of that amount, EDVA deposited over $8.3 million into the Justice Department’s Assets Forfeiture Fund in FY2020, while the other approximately $2.3 million was restored or remitted to victims. EDVA also used asset forfeiture statutes and processes to restrain an additional $13.6 million, which was ultimately returned directly to victims in lieu of forfeiture.
In addition to a team of legal support staff and contractors, EDVA’s asset recovery efforts are led by Deputy Chief of the Asset Recovery Unit for Financial Litigation Laura M. Grimes, Deputy Chief of the Asset Recovery Unit for Asset Forfeiture Kevin P. Hudson, Chief of the Asset Recovery Unit Jessica D. Aber, and Assistant U.S. Attorneys Janet Jin Ah Lee, Ron Fiorillo, and Annie Zanobini.
Civil recoveries are the result of litigation and debt collection efforts by attorneys, analysts, and contractors supporting the Affirmative Civil Enforcement (ACE) and Civil Rights Enforcement Units. Those efforts are led by ACE Unit Supervisor Gerard Mene and Assistant U.S. Attorneys Ilene Albala, Krista Anderson, Deirdre G. Brou, Robert Coulter, Steve Gordon, Garry Hartlieb, William Hochul, Robert P. McIntosh, Lauren F. Oberheim, Kristin S. Starr, and Clare P. Wuerker.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the federal government and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. Restitution is paid to the victim; criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which then distributes the funds collected to federal and state victim compensation and assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected civil penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights, drug diversion, or environmental laws. In addition, civil debts were collected on behalf of various federal agencies, including the U.S. Department of Housing and Urban Development, Veterans Affairs, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
The Justice Department, as a whole, collected more than $15.9 billion in civil and criminal actions in 2020. This amount is more than five times the approximately $3.2 billion appropriated budget for all 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department. The total includes all monies collected through Justice Department-led enforcement actions and negotiated civil settlements. It also includes more than $13.5 billion in payments made directly to the Justice Department and more than $2.4 billion in indirect payments made to other federal agencies, states, and other designated recipients.
U.S. Army major sentenced to three decades in federal prison for production of child pornographyRead the Press Release
AUGUSTA, GA: A U.S. Army major assigned to the U.S. Army Cyber Command at Fort Gordon, Ga., has been sentenced to 30 years in federal prison for producing child pornography.
Jason Michael Musgrove, 41, of Grovetown, was sentenced to 360 months in prison by U.S. District Court Chief Judge J. Randal Hall after pleading guilty to Production of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Musgrove also was ordered to pay restitution of $9,000 to the victims and to register as a sex offender.
There is no parole in the federal system.
“While the timing is entirely coincidental, it nonetheless bears noting that Musgrove’s sentence comes just days after two FBI agents in Florida were killed while attempting to search the home of a child pornographer,” said U.S. Attorney Christine. “The disturbing and despicable nature of such predators only increases their danger to the community, and Musgrove’s long sentence immediately makes the community safer.”
At the time of his December 2019 arrest, Musgrove was an Integrated Threat Operations Officer with Top Secret/Sensitive Compartmentalized Information clearance, assigned to the Army Cyber Joint Headquarters at Fort Gordon. Musgrove currently is facing administrative separation from the U.S. Army.
According to court testimony and documents, Musgrove admitted that he produced and attempted to share child pornography on the internet. His crimes were uncovered by the FBI.
“It is beyond comprehension that someone in a position sworn to protect American citizens would take advantage and traumatize vulnerable children,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to protecting our children by identifying and apprehending predators who commit such abhorrent crimes.”
The investigation was conducted by the FBI, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.