Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 20 January 2021
Serious violent felon sentenced to 90 months in federal prisonRead the Press Release
Evansville – Acting United States Attorney John Childress announced today that Cameron M. King, 25, of Evansville, Indiana was sentenced to 90 months imprisonment by U.S. District Court Judge Richard L. Young.
King had pleaded guilty on October 14th, 2020 to a possession of a firearm by a felon and was later found guilty of possession with the intent to distribute cocaine and carrying a firearm during and in relation to a drug trafficking offense, after a two day jury trial on October 20th, 2020.
“Drug dealing is disruptive to the well-being of the citizens of Evansville and fuels much of the violence that occurs in this community,” said Childress. “Prosecuting convicted felons with long criminal histories who choose to illegally possess firearms and sell drugs will remain a priority of this office.”
On August 31, 2018, patrol officers with the Evansville Police Department observed Cameron King run through a stop sign and a stop light on a bicycle at night without a light on the front of the bike. King was stopped by the officers and was observed reaching into his waistband. Officers ordered King to remain on his bicycle, but he got off the bike contrary to their request.
Officers approached King and conducted a pat down of King, which immediately resulted in the discovery of a loaded .45 caliber semi- automatic handgun in his waistband.
Officers discovered that King has a history of violent acts involving the use of a firearm. He had been convicted on two counts of felony criminal recklessness and a misdemeanor possession of a firearm in Vanderburgh County on May 2, 2014. That case involved two counts of attempted murder by shooting that were reduced to criminal recklessness.
King also had been convicted of a felony possession of cocaine and possession of a firearm on May 11, 2018 in Muscogee County, Georgia. He was sentenced on that case and remains on probation after the supervision was transferred from Georgia to Vanderburgh County.
King was also found in possession of a digital scale, $312, and over 13 grams of cocaine that was broken down in six individual plastic baggies. The baggies were discovered in his sock at the jail.
While in custody for this case, King committed two more acts of violence. On June 1st, 2019, he punched the face and broke the nose of a White County Illinois jail guard. On July 8th, 2019, he punched a Henderson County Kentucky jail guard in the face and scratched the guard’s arm.
According to Assistant United States Attorneys Matt Miller and Todd Shellenbarger, who prosecuted this case for the government, the defendant was also ordered to serve a term of 3 years supervised release upon being released from imprisonment.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting firearm and violent crime prosecutions. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.2.
Statement of United States Attorney Matthew Schneider on Kwame Kilpatrick’s Sentence CommutationRead the Press Release
“My position on the disgraced former Mayor of Detroit has not changed. Kwame Kilpatrick has earned every day he served in federal prison for the horrible crimes he committed against the People of Detroit. He is a notorious and unrepentant criminal. He remains convicted of 24 felonies. Kilpatrick has served only one quarter of the sentence that was very appropriately imposed. Thankfully, under Michigan law, he cannot hold state or local public office for 20 years after his conviction.”
Rochester Man Sentenced to 94 Months for RobberiesRead the Press Release
CONCORD - Thomas Hegarty, 26, of Rochester, was sentenced to 82 months for attempted bank robbery and robbery, and 12 months to run consecutively for violating his conditions of supervised release, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on April 9, 2020, at around 4:00 a.m., Hegarty entered a Circle K gas station in Rochester, showed the cashier a hammer, and stole cash from the register. Later that morning, Hegarty entered a bank in Dover, and passed the teller a note demanding money and indicating that he had a weapon. Tellers locked themselves in an office and called the police. Hegarty jumped over the teller counter and unsuccessfully attempted to open the teller drawers. He then fled the bank without taking any money. Investigators released surveillance photographs from the robberies to the public and identified and apprehended Hegarty later that day. At the time of the robberies, Hegarty was on federal supervised release.
Hegarty previously pleaded guilty on October 5, 2020.
“Robberies are violent crimes that jeopardize public safety and frighten innocent victims,” said U.S. Attorney Murray. “In order to maintain the safety of our communities, we prioritize the prosecution of violent criminals. This 94-month sentence should serve as a warning to those who would be inclined to prey on their fellow citizens with acts of threat and violence. I am grateful to the FBI, the Dover and Rochester Police Departments, and members of the public whose efforts were instrumental in swiftly bringing this criminal to justice.”
“While on supervised release, Mr. Hegarty orchestrated a violent crime spree that left many in the community in fear for their lives,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “We’d like to thank the concerned citizens who responded to our investigators’ call for assistance to identify him, and in doing so, helped us hold him accountable for his crimes while also making our communities safer.”
This matter was investigated by the Federal Bureau of Investigation with assistance from the Rochester Police Department and the Dover Police Department. The case was prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald.
###
Protester Sentenced for Being in Possession of Molotov CocktailRead the Press Release
United States Attorney Joe Kelly announced that Steven M. Fitch, age 25, of Council Bluffs, Iowa, was sentenced today in federal court in Omaha, Nebraska, by United States District Judge Brian C. Buescher for being in unlawful possession of a destructive device. Judge Buescher sentenced Fitch to 30 months’ imprisonment. There is no parole in the federal system. Once Fitch is released from prison, he will begin a three-year term of supervised release.
An investigation conducted by the Omaha Police Department, the Douglas County Sheriff’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco and Firearms determined that on May 31, 2020, Fitch was participating in protests in and around downtown Omaha. During the protests, Fitch was encountered by officers with the Omaha Police Department at 15th and Jackson Streets. Officers determined Fitch possessed a destructive device, also known as a Molotov cocktail, which is a firearm under the National Firearms Act. The Molotov cocktail was located in Fitch’s front pants pocket and consisted of a glass bottle with clear liquid inside and a red rag protruding out of the opening. Fitch also had several lighters in his front pants pocket.
Douglas County Sheriff’s Forensic Services Bureau tested the red rag that was attached to the Molotov cocktail, which was positive for containing the chemical “Gasoline.” The Molotov cocktail was in operating condition and was capable of exploding when ignited.
The Bureau of Alcohol, Tobacco, and Firearms determined that the Molotov cocktail device was not registered to Fitch as required by the National Firearms Registration and Transfer Record.
“This case demonstrates the commitment of ATF and our Law Enforcement partners to investigate those that threaten the life and property of others by introducing violence and fear into peaceful, well-intended protests,” said Fred Winston, Special Agent in Charge of ATF’s Kansas City Field Division.
This case was investigated by the Omaha Police Department, the Douglas County Sheriff’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco and Firearms.
Philadelphia Man Arrested for COVID-19 PPE FraudRead the Press Release
NEWARK, N.J. – A Philadelphia, Pennsylvania, man has been charged in connection with a $700,000 personal protective equipment (PPE) fraud scheme, Acting U.S. Attorney Rachael A. Honig announced today.
Gauravjit Singh, 26, is charged by complaint with one count of wire fraud. He is scheduled to appear by videoconference today before U.S. Magistrate Judge James B. Clark III.
According to documents filed in this case and statements made in court:
Beginning in May 2020, in the midst of the COVID-19 pandemic, Singh engaged in a scheme to defraud by making various misrepresentations, including by claiming that he was a purveyor of PPE and that he had contacts at a factory in Nanjung, China, that manufactured medical gowns. Singh induced his victims to enter into an agreement with one of Singh’s businesses, Mask Medical LLC, pursuant to which Singh would be paid approximately $7.125 million in exchange for 1.5 million medical gowns, which ultimately were destined to the City of New York. His victims wired Singh, though his company GJS Solutions LLC, a deposit of approximately $712,500. After receiving these funds, Singh made additional misrepresentations and excuses, ensuring the victims that they would receive the medical gowns. Instead of purchasing and delivering medical gowns, Singh used the funds for personal expenses, including transferring funds to his brokerage account and using the funds for online gaming and other personal expenditures.
The count of wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s charge.
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.
Additional victims associated with Singh’s conduct may reach out to the FBI at 1-800-CALL-FBI (225-5324) or visit www.fbi.gov.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Norwalk Man Charged with Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging DAVID BURDEN, 40, of Norwalk, with possession of a firearm by a convicted felon.
The indictment was returned on December 21, 2020. Burden appeared today via videoconference before U.S. Magistrate Judge William I. Garfinkel and entered a plea of not guilty. Burden has been detained in state custody since his arrest on September 30, 2020.
As alleged in court documents and statements made in court, on September 30, 2020, Bridgeport Police officers arrested Burden after he fired a gun in the area of Kossuth Street and Nichols Street in Bridgeport. Investigators seized a loaded 9mm Smith and Wesson semi-automatic pistol from Burden.
It is alleged that Burden’s criminal history includes federal convictions in 2003 for crack cocaine distribution, racketeering, racketeering conspiracy and committing a violent crime in aid of racketeering offenses, and multiple state felony convictions. 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.
The charge of possession of a firearm by a convicted felon carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
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.
Newark Tax Preparer Admits Aiding and Assisting in Preparation of False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Pennsylvania man who worked as a tax preparer in Newark admitted today to helping his clients file falsified tax returns that generated larger refunds, Acting U.S. Attorney Rachael A. Honig announced.
Sylvain Dienhoue, 53, of Tobyhanna, Pennsylvania, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with three counts of aiding and assisting in the preparation of false and fraudulent tax returns.
According to documents filed in this case and statements made in court:
Dienhoue worked as a tax preparer at Cadi’s Multi Services in Newark. He knowingly and willfully aided and assisted in the preparation of 44 fraudulent tax returns on behalf of clients for the tax years 2014 through 2016. Dienhoue used fabricated and inflated figures, including expenses and itemized deductions, in order to generate inflated refunds.
Each count of aiding and assisting in the preparation of false and fraudulent tax returns carries a maximum penalty of three years in prison and a fine of up to $250,000. Sentencing is scheduled for May 24, 2021.
Acting U.S. Attorney Honig credited special agents from IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the U.S. Attorney’s Office’s Criminal Division in Newark.
Missouri Man Sentenced to 120 Months for Cocaine TraffickingRead the Press Release
LONDON, Ky. - A Missouri man, Gregory Parrish Evans, 58, was sentenced on Wednesday, by U.S. District Judge Robert Wier, to 120 months in federal prison, for conspiracy to distribute 500 grams or more of methamphetamine.
According to his plea agreement, approximately 15 kilograms of methamphetamine was delivered to Evans, in Laurel County, Ky. Evans admitted to agreeing with a co-conspirator to sell the methamphetamine by fronting quantities to customers. On March 10, 2020 Miles further admitted to taking delivery of $13,000 that he believed was the proceeds from the sale of the fronted methamphetamine.
Evans pleaded guilty to the federal charge in October 2020.
Under federal law, Evans must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for 10 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; and Robert Brown, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office, announced the sentencing.
The investigation was conducted by FBI. The United States was represented in the case by Assistant U.S. Attorney Jason Parman.
— END —
Mexican National Sentenced to over 7 Years in Federal Prison for Scheming to Launder Money for Drug Trafficking OrganizationsRead the Press Release
LOS ANGELES – A Mexican national who pleaded guilty to a federal racketeering offense and admitted participating in a scheme to launder drug trafficking proceeds – which included attempting to purchase a bank to facilitate the money laundering – was sentenced today to 87 months in federal prison.
Pablo Hernandez, 80, of Tijuana, was sentenced by United States District Judge Otis D. Wright II after pleading guilty in November to conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.
Hernandez was one of 16 defendants named in a federal grand jury indictment unsealed in 2015 that alleged a series of money laundering schemes, some of which involved the Westminster-based Saigon National Bank (now known as California International Bank). Hernandez and a second defendant, Emilio Herrera, had a series of conversations and meetings with a purported money launderer – who actually was a confidential source – which included discussions about regular cash deposits in the U.S. that would then be wired to Mexico, court documents state. During negotiations with the confidential source, Hernandez and Herrera also asked the confidential source about moving money to other countries, but they discounted a proposal to send wire transfers to Panama because associates had lost $100 million in drug money that was confiscated there.
After an account at Saigon National Bank that was used to launder funds was closed, Hernandez, Herrera and then-bank president Tu Chau “Bill” Lu discussed “the possibility of buying Saigon National Bank for the purpose of laundering money,” according to court documents.
In his plea agreement, Hernandez admitted having discussions with the confidential source “about laundering cash for the Sinaloa cartel for a fee,” prosecutors wrote in a sentencing memorandum. “[Hernandez’s] involvement in drug trafficking and associated money laundering activity is confirmed by a separate investigation by the California Department of Justice in 2014 in which defendant was identified as a drug broker and money launderer for a drug trafficking organization considered to be an extension of the Sinaloa Cartel.”
As a result of this investigation – Operation “Phantom Bank” – a total of 25 defendants were named in six indictments. So far, prosecutors have secured the conviction of 15 defendants.
Herrera died after being indicted in this case. The charges against Lu are still pending.
The Phantom Bank investigation was conducted by the FBI, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and IRS Criminal Investigation.
These cases are being prosecuted by Assistant United States Attorneys Kim Meyer and Joseph D. Axelrad of the Violent and Organized Crime Section.
Martinsburg man indicted on firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Darian Leizear, of Martinsburg, West Virginia, was indicted today on a firearms charge, U.S. Attorney Bill Powell announced.
Leizear, 23, was indicted on one count of “Unlawful Possession of a Firearm.” Leizear, a person prohibited from having firearms because of a prior conviction, is accused of having a .380 caliber pistol in September 2020 in Berkeley County.
Leizear is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Eleanor F. Hurney is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Pleads Guilty to Meth and Firearm ChargesRead the Press Release
A man who conspired to distribute methamphetamine while possessing a gun pled guilty January 19, 2021, in federal court in Sioux City.
Jeremy Werneburg, age 41, from Carroll, Iowa, was convicted of conspiracy to distribute methamphetamine and possession of a firearm by a prohibited person. Werneburg was previously convicted of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine in November 2007, in the United States District Court for Northern District of Iowa. The 2007 conviction prohibited Werneburg from legally possessing firearms.
At the plea hearing, Werneburg admitted that from November 2017 through about December 2018, he and others distributed more than 150 grams of pure methamphetamine. On October 7, 2018, law enforcement, utilizing a confidential informant, bought over 27 grams of pure methamphetamine from Werneburg. On November 9, 2018, law enforcement received a tip that Werneburg’s vehicle contained drugs. On the same date, Werneburg’s vehicle was searched and law enforcement seized approximately one ounce of methamphetamine (pre-packaged in smaller amounts) and a handgun. The methamphetamine and gun were located in two separate hidden compartments in the vehicle.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Werneburg remains in custody of the United States Marshal pending sentencing. Werneburg faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least 10 years of supervised release following any imprisonment. On the firearm conviction, the possible maximum sentence is 10 years’ imprisonment; a $250,000 fine, and not more than three years of supervised release.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Carroll County Sheriff’s Office, and Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3017.
Follow us on Twitter @USAO_NDIA.
MIT Professor Indicted on Charges Relating to Grant FraudRead the Press Release
BOSTON – A professor and researcher at Massachusetts Institute of Technology (MIT) was indicted yesterday by a federal grand jury in connection with failing to disclose contracts, appointments and awards from various entities in the People’s Republic of China (PRC) to the U.S. Department of Energy.
Gang Chen, 56, was indicted on two counts of wire fraud, one count of failing to file a foreign bank account report (FBAR) and one count of making a false statement in a tax return. Chen was charged by criminal complaint and arrested on Jan. 14, 2021.
According to charging documents, Chen is a naturalized U.S. citizen who was born in China. He is a professor and researcher at MIT where he serves as Director of the MIT Pappalardo Micro/Nano Engineering Laboratory and Director of the Solid-State Solar Thermal Energy Conversion Center (S3TEC). Since approximately 2013, Chen’s research at MIT has been funded by nearly $19 million in grants awarded by various U.S. federal agencies.
Since 2012, Chen has allegedly held various appointments with the PRC designed to promote the PRC’s technological and scientific development by providing advice and expertise – sometimes directly to PRC government officials – and often in exchange for financial compensation. This includes acting as an “overseas expert” for the PRC government at the request of the PRC Consulate Office in New York and serving as a member of at least two PRC Talent Programs. Since 2013, Chen allegedly received approximately $29 million of foreign funding, including $19 million from the PRC’s Southern University of Science and Technology (SUSTech).
From at least 2017 to 2019 when Chen was serving in several advisory roles for the PRC and PRC entities, Chen applied for and obtained a U.S. Department of Energy (DOE) grant in order to fund a portion of his research at MIT. In doing so, it is alleged that Chen failed to disclose information about his ongoing affiliations with the PRC as required by DOE.
Chen also allegedly failed to disclose to the IRS in his 2018 tax return that he maintained a bank account in the PRC with more than $10,000 in 2018.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of failing to file an FBAR provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Patrick J. Hegarty, Special Agent in Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigation, Boston; Ramsey Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Jim Breckenridge, Special Agent in Charge of the Department of Energy, Office of Inspector General made the announcement today. Assistant U.S. Attorneys B. Stephanie Siegmann, Chief of Lelling’s National Security Unit, and Jason Casey and Timothy Kistner also of Lelling’s National Security Unit are prosecuting the case with assistance from Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
UPDATE: Criminal charges against the defendant in this case were dismissed in January 2022.
Las Vegas Felon Sentenced to over 23 Years in Prison for Committing Two Armed Bank RobberiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas resident was sentenced yesterday to 282 months in prison for committing two armed robberies at the same bank in Henderson and being a felon in possession of a firearm, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
In April 2019, following a three-day trial, a jury convicted Anthony Delano Hylton Jr., 35, of two counts of armed bank robbery and two counts of use and carry of a firearm during and in relation to a crime of violence. He subsequently pleaded guilty in November 2020 to one count of felon in possession. In addition to the prison term, U.S. District Judge Howard D. McKibben sentenced Hylton to five years of supervised release.
According to evidence presented at trial, on October 7, 2016, Hylton entered a bank in Henderson, armed with a .45 caliber semi-automatic handgun. Once inside, he pointed the gun at customers and bank employees, and ordered everyone to get down on the ground. Hylton jumped over the teller counter and discharged the firearm into the floor, in close proximity to a teller who was crouched down on the ground. He then demanded money from bank employees while pointing his gun at them. Hylton fled the bank with approximately $69,565.
Three months later, on January 17, 2017, Hylton — armed with a revolver — entered the same bank in Henderson. He pointed the gun at customers and bank employees and, like the previous robbery, Hylton ordered everyone to the ground. He jumped over the counter and demanded money from bank employees at gunpoint. Hylton fled the bank with approximately $13,046.
Hylton has a prior conviction for battery with substantial bodily harm in Clark County, Nevada.
The case was investigated by the FBI and Henderson Police Department. Assistant U.S. Attorneys Lisa Cartier-Giroux and Peter S. Levitt prosecuted the case.
###
Laplace Man Sentenced to Four Years Probation for Falsifying Documentation Related to SBA Disaster LoanRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced today that KEITH CRAIG (“CRAIG”), age 59, of LaPlace, Louisiana was sentenced on January 19, 2021 to four (4) years probation by the Honorable Greg Gerard Guidry for falsifying documents related to a federal Small Business Administration loan, in violation of Title 18, United States Code, Section 1001. Also, CRAIG was ordered to pay $161,203.19 in restitution to the Small Business Administration (“SBA”) and a $100.00 special assessment fee.
According to court documents, the defendant applied for an SBA loan after Hurricane Isaac impacted Louisiana in 2012. CRAIG owned a residence in LaPlace, Louisiana and applied for and received SBA loan proceeds to repair damages to his residence allegedly caused by Hurricane Isaac. In support of the SBA loan, CRAIG submitted fraudulent documentation and statements related to his annual income and the repairs performed on his LaPlace residence.
U.S. Attorney Strasser praised the work of the Office of Inspector General for the Small Business Administration on investigating this matter. Assistant United States Attorney Duane A. Evans is prosecuting the case.
Judge sentences St. Louis man for being a felon in possession of a firearm and possessing with the intent to distribute methamphetamineRead the Press Release
ST. LOUIS – United States District Judge Henry E. Autrey sentenced Richard Enloe, Jr to 125 months in prison today. The 40-year-old St. Louis, Missouri resident pleaded guilty, in October, to being a felon in possession of a firearm and possessing with the intent to distribute methamphetamine.
On September 1, 2019, St. Louis County Police responded to a 911 call regarding a possible drug overdose at a gas station on Butler Hill Road. An officer arrived and found Enloe, Jr. and a woman asleep inside a running vehicle at a gas pump. The officer also noticed drug paraphernalia and controlled substances on the vehicle’s console.
After the officer knocked on the window, Enloe, Jr. and the woman woke up. The officer searched the vehicle and found three pistols, 223 grams of methamphetamine, drug paraphernalia, a scale and multiple plastic bags. Enloe, Jr., a previously convicted felon, admitted possessing the firearms and intending to distribute the drugs.
The St. Louis County Police Department investigated this case. Assistant United States Attorney Jen Szczucinski is handling the case as part of the Safer Streets Initiative, which was launched by the Missouri Attorney General’s Office and U.S. Attorney’s Office of the Eastern District of Missouri in 2019 as an unprecedented state and federal partnership to prosecute violent crime in St. Louis.
#####
Hartford Man Sentenced to More Than 6 Years in Prison for Distributing FentanylRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYLON HICKS, 44, of Hartford, was sentenced today by U.S. District Michael P. Shea to 77 months of imprisonment, followed by four years of supervised release, for distributing fentanyl.
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 August 2019, the FBI’s Northern Connecticut Gang Task Force received information that Tylon Hicks’ brother, Troy Hicks, was involved in the distribution of heroin, fentanyl and cocaine. On August 14, 2019, investigators engaged a cooperating source to purchase fentanyl from Troy Hicks. Troy Hicks instructed the source to meet him at a restaurant in East Hartford to complete the transaction. Troy Hicks and Tylon Hicks were arrested after they arrived together at the meeting location and a search of Tylon Hicks’ person revealed approximately 48 grams of fentanyl. A search of the vehicle they arrived in also revealed approximately 103 dose bags of fentanyl and approximately three grams of cocaine.
Tylon Hicks has a criminal history that dates to 1993, and he was on parole for a felony drug conviction when he committed this offense.
Tylon Hicks has been detained since his arrest. On October 9, 2020, he pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.
Troy Hicks pleaded guilty to drug and firearm offenses 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. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Gang Member Sentenced to 7 Years in Federal Prison for CarjackingRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Rolando Vargas, age 31, of Sunnyside, Washington, was sentenced today after having pleaded guilty on October 29, 2019, to Carjacking. United States District Judge Salvador Mendoza, Jr. sentenced Vargas to a 7-year term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, on July 31, 2019, patrol deputies from the Yakima County Sheriff’s Office responded to a reported carjacking in Outlook, Washington. While investigating, deputies learned that several individuals were involved, including Vargas, a documented Bell Garden Locos (“BGL”) Sureno gang member. Investigators also learned that one of the individuals involved brandished a firearm and ordered the victim out of the vehicle, whereupon the victim was assaulted resulting in injury to his face and hands. A separate individual then entered the victim’s vehicle and drove away followed by Vargas and the other participants in separate vehicles.
United States Attorney Hyslop said, “Vargas has been removed from the community. Today’s sentence is significant and sends a clear message to those who may commit crimes like this that your criminal conduct will not be tolerated. The United States Attorney’s Office works closely with our federal, state, local and Tribal law enforcement partners to investigate and prosecute violent offenders and to deter criminal conduct. We commend the law enforcement officers with the Yakima County Sheriff’s Office and the Federal Bureau of Investigation who investigated this case. Their partnership resulted in the successful outcome of this case.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Yakima Resident Office of the Federal Bureau of Investigation and the Yakima County Sheriff’s Office. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Gang Member Sentenced to 2 Years in Federal Prison for Firearm PossessionRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Lukes Lorenzo Herrera, age 23, of Prosser, Washington, was sentenced today after having pleaded guilty on November 4, 2020, to Felon in Possession of a Firearm. United States District Judge Salvador Mendoza, Jr. sentenced Herrera to a 2-year term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, on April 10, 2020, patrol deputies from the Yakima County Sheriff’s Office responded to a two-vehicle collision on Waneta Road, Grandview, Washington. While on scene, officers learned that one of the individuals involved, subsequently identified as Herrera, a Bell Garden Locos (“BGL”) Sureno gang member, had requested that the police not be notified because he had a firearm and drugs in the car. Herrera fled the scene on foot after throwing what appeared to be a firearm into an adjacent canal. Shortly after retrieving the discarded firearm, deputies found Herrera hiding near a field and arrested him.
United States Attorney Hyslop said, “The prosecution of firearm-related crimes continues to be a priority for the United States Attorney’s Office for the Eastern District of Washington. If you unlawfully possess a firearm, we will hold you accountable and remove you from our streets.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Yakima Resident Office of the Federal Bureau of Investigation and the Yakima County Sheriff’s Office. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Gang Member Sentenced for Violating Drug and Firearms LawsRead the Press Release
PITTSBURGH, PA - A former resident of McKeesport, Pennsylvania, has been sentenced in federal court to 5 years and 1 day of imprisonment, followed by three years of supervised release on his conviction of narcotics trafficking and possession of a firearm in furtherance of his narcotics trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Jared Ogrosky, age 23.
According to information presented to the Court, on May 10, 2019, law enforcement executed a federal search warrant at Ogrosky’s residence and located nine bricks of heroin in a closet outside of Ogrosky’s bedroom, which the defendant told law enforcement he threw in the closet when he heard police outside of his residence. Law enforcement also located a Glock model 19x, 9 mm handgun, with a round of ammunition chambered, in his bedroom closet, as well as a 50 round, 9 mm drum style magazine. In conjunction with his guilty plea, Ogrosky admitted that he possessed the firearm in furtherance of the drug trafficking crime.
Additionally, the Court was informed that Ogrosky also accepted responsibility for additional violations of federal law. Namely, that in conjunction with each purchase of a firearm on November 30, 2018, December 28, 2018, December 29, 2018, January 6, 2019, and February 19, 2019, Ogrosky made false statements on the ATF Form 4473s. Specifically, Ogrosky indicated on the forms that he was not an unlawful user of, or addicted to, marijuana or any narcotic drug when in fact he was a marijuana and Percocet user, which under federal law prohibited him from purchasing and possessing a firearm.
As a term of Ogrosky’s supervised release, the Court instructed the admitted "Gwalla" gang member that he is prohibited from interacting with any member of a street gang while on supervised release. The Court also ordered the forfeiture of the Glock, 50 round magazine, all ammunition and $860.00.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol Tobacco, Firearms, and Explosives, who conducted the investigation in this case, which was brought under Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Front Royal Man Pleads Guilty to Dealing Two Fatal Doses of Fentanyl-laced HeroinRead the Press Release
HARRISONBURG, Va.- A Front Royal, Virginia man, who in the fall of 2017 distributed two fatal, fentanyl-laced doses of heroin, pleaded guilty today in U.S. District Court in Harrisonburg to a drug charge that carries a mandatory minimum sentence of 20 years in prison, and the possibility of a life sentence, Acting United States Attorney Daniel P. Bubar, Special Agent in Charge Jarod A. Forget of the Drug Enforcement Administration’s Washington Division, and the Warren County Sheriff’s Office, announced.
Glenn Eugene Sovereign Jr., 43, of Front Royal, pleaded guilty today to two counts of distributing fentanyl. Because the recipient of the distribution died from overdose by ingesting the fentanyl within, Sovereign faces a mandatory minimum sentence of 20 years in prison and a maximum possible statutory penalty of life at sentencing.
“When Sovereign trafficked fentanyl-laced heroin to an already-vulnerable group of people, he perpetuated their addiction and despair, and ultimately caused their death,” Acting United States Attorney Bubar stated today. “Because of the hard work and persistence of our federal and state partners, Sovereign has been brought to justice and will spend the better part of his life in federal prison.”
“The threat fentanyl brings to our Virginia neighborhoods and families cannot be overstated. With overdoses across the area spiking in the past year, DEA Washington Division has been working hard to investigate and arrest egregious criminals such as this, who are blatantly distributing poisonous drugs and spreading death and violence across our communities," Special Agent in Charge Forget said today.
Sovereign admitted today that in the fall of 2017 he made regular trips from Front Royal, Virginia to Baltimore, Maryland in order to purchase heroin.
On October 24, 2017, Sovereign met with victim E.R. in Front Royal. E.R. purchased a small packet of heroin from Sovereign which contained fentanyl. Later that night, E.R. ingested the contents of the packet, and as a result died.
On or about October 25, 2017, Sovereign traveled to Baltimore to meet his source of supply, where he purchased one gram of heroin. When Sovereign returned to Front Royal, he met with victim N.C. at Sovereign’s residence where he and N.C. ingested 4-5 Ritalin pills together. Later, before Sovereign left for work, he provided N.C. with a small packet of heroin, which contained fentanyl. On or about October 26, 2017, N.C. ingested the contents of the packet, and she died.
The investigation of the case was conducted by the Drug Enforcement Administration and Warren County Sheriff’s Office. Assistant United States Attorney Christopher Kavanaugh is prosecuting the case for the United States.
Fresno Man Sentenced to 3.5 Years in Prison for Being a Felon in Possession of AmmunitionRead the Press Release
FRESNO, Calif. — John Jacob Gullatt III, 47, of Fresno, was sentenced Tuesday by U.S. District Judge Dale A. Drozd to three and a half years in prison for being a felon in possession of ammunition, U.S. Attorney McGregor W. Scott announced.
According to court documents, on April 9 and 10, 2019, law enforcement officers investigating illegal firearms crimes searched Gullatt’s primary residence. Inside Gullatt’s bedroom, officers found thousands of rounds of ammunition and a handgun. Buried in the side yard of the house, officers dug up a disassembled AR-15-style rifle. Gullatt had been convicted of several felonies and was therefore prohibited from possessing firearms or ammunition.
This case was the product of an investigation by the Homeland Security Investigations and the Stanislaus County Special Investigations Unit. Assistant U.S. Attorney Justin J. Gilio prosecuted the 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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. For more information about Project Guardian, please see www.justice.gov/projectguardian
Four Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – DUVELL LONDON, JR., a/k/a “Dookie,” a/k/a “Dukie,” a/k/a “Duke,” a/k/a “D,” age 40, of St. Rose, La., KARRON JOHNSON, age 27, of Laplace, La., JEREMY LEVANDA, a/k/a “J,” “Jae,” and “Fresh,” age 39, of Destrehan, La., and COREY MORTON, a/k/a “Big C,” age 41 of Destrehan, La., were charged January 15, 2021, in a 16-count superseding indictment by a Federal Grand Jury with several narcotics offenses, including conspiring to distribute and possess with intent to distribute 40 grams or more of fentanyl, 500 grams or more of powder cocaine, and 28 grams or more of a crack cocaine. JOHNSON was also charged with being a felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking, announced U.S. Attorney Peter G. Strasser.
If convicted, LONDON faces a mandatory minimum term of imprisonment of 5 years and a maximum of 40 years of imprisonment, a fine of up to $5,000,000.00, and at least 4 years of supervised release following any term of imprisonment. LEVANDA and MORTON face a maximum of 20 years of imprisonment, a fine of up to $1,000,000.00, and at least 3 years of supervised release following any term of imprisonment, if convicted. JOHNSON faces a mandatory minimum term of imprisonment of 5 years and a maximum of 40 years of imprisonment, a fine of up to $5,000,000.00, and at least 4 years of supervised release following any term of imprisonment, if convicted of drug trafficking. He also faces up to 10 years of imprisonment if convicted of being a felon in possession of a firearm, and an additional, consecutive 60 month term of imprisonment if convicted of possessing a firearm in furtherance of drug trafficking. Each defendant faces a mandatory special assessment of $100.00 for every felony conviction.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Strasser reiterated that the superseding indictment is merely a charging document and that the defendants’ guilt must be proven beyond a reasonable doubt.
This case was investigated by the U.S. Drug Enforcement Administration, St. Charles Parish Sheriff’s Office, St. John the Baptist Sheriff’s Office, Jefferson Parish Sheriff’s Office, Terrebonne Parish Sheriff’s Office, and St. James Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorneys Nolan D. Paige and Paige O’Hale.
Former State Employee Charged with Conspiracy to Commit Wire FraudRead the Press Release
ALBANY, NEW YORK – Srinivas Kancha, age 52, of Selkirk, New York, was charged today with conspiring to defraud his former employer, the Office of the New York State Comptroller (OSC).
The announcement was made by Acting United States Attorney Antoinette T. Bacon; New York State Comptroller Thomas P. DiNapoli; and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
A criminal complaint alleges that between 2015 and 2017, while employed at OSC, Kancha conspired with the owner of a company (identified in the complaint as “Company-P”) to fraudulently obtain money by hiring computer programmers from Company-P to work on a project Kancha managed for OSC in exchange for a kickback from Company-P. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
In January 2015, according to the complaint, OSC entered into a contract with a consortium of three companies to identify and hire computer programmers for a project. When OSC needed to hire a programmer, it sent a request form to one of the three companies. Each company then submitted a purportedly qualified applicant. Frequently, the applicants were employed by subcontractors, including Company-P. From January 2015 through October 2016, OSC hired 17 programmers for the project at hourly rates ranging from $80 to $120. In late 2016, OSC learned that many of the programmers’ references and work histories were not legitimate, including those hired from Company-P, and launched an internal investigation.
According to the complaint, between February 2015 and October 2016, Kancha and his co-conspirator ensured that programmers from Company-P were hired by falsifying information regarding their experience and work histories, and providing them with interview questions ahead of their interviews at OSC. Kancha then interviewed the programmers, hired them knowing that their qualifications were falsified, and set their hourly rates. Between February 2015 and September 2017, Company-P received approximately $870,000 from OSC for its programmers’ pay. The owner of Company-P kept a percentage of the programmers’ pay. He then paid Kancha a portion of that percentage.
If convicted of this offense, Kancha faces up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years, 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.
Kancha appeared today in Albany before United States Magistrate Judge Daniel J. Stewart, and was ordered released with conditions pending further proceedings.
This case was initiated by the Office of the New York State Comptroller, and is also being investigated by HSI, the United States Postal Inspection Service, and the United States Department of Labor, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Katherine Kopita.
Former Radio Personality Martin Tirrell Sentenced to Prison for FraudRead the Press Release
DES MOINES, Iowa — On January 20, 2021, United States District Court Judge Stephanie M. Rose sentenced Martin James Tirrell, age 60, formerly of West Des Moines, to 41 months in prison for Mail Fraud announced Acting United States Attorney Richard D. Westphal. Following his prison term, Tirrell was ordered to serve three years of supervised release, as well as immediately pay $200 to the Crime Victims’ Fund. Tirrell was also ordered to pay over $1.4 million in restitution to victims.
Tirrell pleaded guilty to the offense on December 6, 2019. Evidence presented at the sentencing hearing established that Tirrell had been participating in sports ticket scams for over ten years. He marketed himself as a sports insider who had access to prime seating for sporting events. He found investors by giving them free sports tickets and access to VIP seating. Tirrell then convinced them to give him money to purchase sports tickets at a discount, that he would then sell to the general public at a higher price. Tirrell promised to return their investments and split the profits. Tirrell instead took the money and paid off other victims, made unauthorized purchases, or used the money to place online sports bets. When Tirrell was unable to find new “investors,” he kited checks, stole credit cards, and made fraudulent claims to banks to try to obtain more money to perpetuate his scheme. Tirrell also scammed people out of money by promising sports tickets, receiving payment, then failing to produce the promised tickets.
These matters were investigated by the Federal Bureau of Investigation and the Ankeny Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Member of New Bedford Latin Kings Chapter Sentenced for Racketeering Conspiracy ChargesRead the Press Release
A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today on racketeering charges. The defendant admitted to his role in a May 28, 2019 incident in New Bedford, when a rival gang member was shot at.
Luis Santiago, a/k/a “King Tiny,” 22, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 46 months in prison and three years of supervised release. In September 2020, Santiago pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Santiago admitted that on May 28, 2019, he was one of multiple members of the Latin Kings who travelled to Dartmouth Street in New Bedford to confront and assault rival gang members. For this incident, Santiago was provided with a firearm by another member of the gang. The confrontation began as a fight, but at some point Santiago pulled out the firearm and began to chase the rival gang members. Santiago fired one shot at the fleeing rival gang members, missing and striking a parked vehicle.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Santiago is the 13th defendant to be sentenced in the case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Miciof the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
Former Member of Boston Latin Kings Chapter Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the Boston-based Morton Street Bricks Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.
Alexis Velasquez, a/k/a “King Booboo,” 32, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for May 5, 2021.
Named for the Morton Street housing project in Boston, the Morton Street Bricks or MSB Chapter of the Latin Kings, included approximately half-a-dozen members. The MSB Chapter, in turn, reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state. In addition to conspiring with members of the Latin Kings to further the goals of the enterprise by committing criminal acts, Alexis Velasquez personally participated in an attack against a rival gang member in prison in 2010, and attempted to murder a different rival gang member using poisoned narcotics, also known as a hotshot, in 2019.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury issued an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Alexis Velasquez is the 29th defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division 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.
Former Customs and Border Protection Officer Sentenced to 30 Months in Prison for BriberyRead the Press Release
TUCSON, Ariz. – Last week, Jose Rosalio Fuentes, 58, of Nogales, Arizona, was sentenced to 30 months in prison by United States District Court Judge Rosemary Marquez. Fuentes previously pleaded guilty to Bribery of a Public Official.
In early 2018, Fuentes, then a CBP officer assigned to canine duty at the Nogales Port of Entry, agreed to allow an illegal alien into the United States in exchange for a $6,000 cash bribe. Fuentes knew the alien was a convicted felon, and proposed that the alien enter the United States through the port of entry during Fuentes’ shift. Surveillance footage shows Fuentes, on-duty and in uniform, pretending to swipe the alien’s identification at the port of entry, and then waiving the alien through the pedestrian gate and into the United States. Fuentes later met up with the alien and another individual to receive the $6,000 cash bribe.
In addition to 30 months in prison, Fuentes is required to serve three years of supervised release and to pay a $6,000 fine. Fuentes is also prohibited from holding a position of trust with the United States in the future.
The Southern Arizona Corruption Task Force, which is composed of members from the Federal Bureau of Investigation, the Department of Homeland Security-Office of Inspector General, Immigration and Custom Enforcement-Office of Professional Responsibility, Customs and Border Protection-Office of Professional Responsibility, Tucson Police Department, and the Drug Enforcement Administration, conducted the investigation in this case. The Public Integrity Section of the United States Attorney’s Office is handling the prosecution.
CASE NUMBER: 4:18-cr-02068-RM-EJM
RELEASE NUMBER: 2021-001_Fuentes# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Florida Man Known as “the Monkey Whisperer” Indicted for Trafficking in Protected PrimatesRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Jimmy Wayne Hammonds, also known as “the Monkey Whisperer” (57, Parrish), with conspiracy, trafficking, and submitting a false record in violation of the Lacey Act, a federal law involving the illegal trade in wildlife. Hammonds was also charged with violations of the Endangered Species Act and witness tampering. If convicted, Hammonds faces a maximum penalty of 20 years’ imprisonment on the witness tampering count, up to 5 years in federal prison on each of the conspiracy and Lacey Act counts, and up to 1 year on each Endangered Species count.
According to the indictment, Hammonds owned and operated The Monkey Whisperer, LLC - a business engaged in the breeding and selling of wildlife. From September 2017 until February 2018, Hammonds conspired to sell a capuchin monkey to a buyer in California, even though that buyer could not lawfully possess a capuchin monkey in California. Hammonds facilitated the transportation of the capuchin monkey from Florida to California through individuals who were not permitted to possess that species of monkey in either state. Law enforcement later seized that monkey from the residence of the California buyer.
In addition, according to the indictment, Hammonds illegally sold cotton-top tamarins, which are primates listed as an endangered species, to buyers in Alabama, South Carolina, and Wisconsin. Hammonds allegedly concealed his unlawful wildlife trafficking by submitting false records to a law enforcement officer and attempted to persuade a witness to lie to a law enforcement officer.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Fish and Wildlife Service, the Florida Fish and Wildlife Conservation Commission, and the California Department of Fish and Wildlife. It will be prosecuted by Assistant United States Attorney Colin McDonell.
Federal Judge Sentences Chicago Man to Eleven Years in Prison for Illegal Gun Possession and Obstruction of JusticeRead the Press Release
CHICAGO — A convicted felon from Chicago has been sentenced to eleven years in federal prison for illegally possessing a loaded gun and offering to pay witnesses to lie on his behalf.
RAMONE SHAFFERS illegally possessed the handgun and extended magazine on Oct. 16, 2016, in a parked car in the Woodlawn neighborhood on the South Side of Chicago. Shaffers had previously been convicted of a felony and was not legally allowed to possess a firearm.
Three passengers were in the car at the time of Shaffers’s illegal possession. After Shaffers was arrested, he directed individuals to offer payment to the passengers in exchange for giving false testimony to law enforcement.
A federal jury in December 2019 convicted Shaffers, 38, on one count of illegal possession of a firearm by a felon, and one count of obstruction of justice. U.S. District Judge John J. Tharp, Jr., imposed the sentence Tuesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department.
“Standing alone, the defendant’s possession of a firearm with a serial number plate removed and an extended magazine, is a serious crime,” Assistant U.S. Attorneys Albert Berry III and Kavitha J. Babu argued in the government’s sentencing memorandum. “However, the defendant went further. In a selfish effort to absolve himself, the defendant attempted to disrupt the administration of justice.”
Holding convicted felons accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods and Project Guardian – the Department of Justice’s violent crime reduction strategies. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN and Guardian programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Dow Chemical Company and Two Subsidiaries will Reduce Harmful Air Pollution at Four U.S. Chemical PlantsRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ) announced a settlement with Dow Chemical Company and two subsidiaries, Performance Materials NA Inc. and Union Carbide Corporation, that will eliminate thousands of tons of air pollution from four of Dow’s petrochemical manufacturing facilities in Texas and Louisiana.
The settlement resolves allegations that Dow and its subsidiaries violated the Clean Air Act by failing to properly operate and monitor industrial flares at their petrochemical facilities, which resulted in excess emissions of harmful air pollution.
The complaint, filed Tuesday along with the settlement, alleges that Dow and its subsidiaries “oversteamed” their flares and failed to comply with other key operating parameters that ensure the volatile organic compounds (VOCs) and hazardous air pollutants contained in the gases routed to the flares are effectively combusted.
The companies will spend approximately $294 million to install and operate air pollution control and monitoring technology to reduce flaring and the resulting harmful air pollution from 26 industrial flares at the companies’ facilities in: Hahnville, Louisiana; Plaquemine, Louisiana; Freeport, Texas; and Orange, Texas.
Once fully implemented, the pollution controls required by the settlement are estimated to reduce harmful air emissions of VOCs by more than 5,600 tons per year. The settlement is also expected to reduce toxic air pollutants, including benzene, by nearly 500 tons per year.
“This settlement will improve air quality in Texas and Louisiana by eliminating thousands of tons of harmful air pollution each year,” said Jonathan D. Brightbill, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “The agreement, which requires Dow to reduce emissions from its facilities in Texas and Louisiana, demonstrates the Justice Department’s and EPA’s continuing efforts, together with our state partners, to reduce harmful air pollution from unnecessary and improper flaring in order to protect the American public by bringing sources of air pollution into compliance with the Clean Air Act.”
“This settlement means cleaner air for communities across Texas and Louisiana and reinforces EPA’s commitment to enforce the law and hold those who violate it accountable,” said Susan Bodine, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “As this agreement shows, EPA is dedicated to partnering with states to address critical environmental issues and improve compliance in the regulated community to prevent future violations of the law.”
“The Clean Air Act provides a blueprint for industry to operate in a safe and controlled fashion,” said Dr. Chuck Carr Brown, LDEQ Secretary. “LDEQ will continue to work with our federal partners, EPA and the Justice Department, to finalize agreements that settle both long- and short-term compliance issues. Every citizen of Louisiana will benefit from the Beneficial Environmental Project portion of the settlement.”
The pollutants addressed by the settlement can cause significant harm to public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
Flares are devices used to combust waste gases that would otherwise be released into the atmosphere during certain industrial operations. Well-operated flares should have high “combustions efficiency,” meaning they combust nearly all harmful waste gas constituents, like VOCs and hazardous air pollutants, and turn them into water and carbon dioxide. The agreement is designed to improve Dow’s flaring practices. First, it requires Dow to minimize the amount of waste gas that is sent to the flares, which reduces the amount of flaring. Second, Dow must improve the combustion efficiency of its flares when flaring is necessary.
In order to minimize the waste gas sent to the flares at each facility, Dow will operate flare gas recovery systems that recover and “recycle” the gases instead of sending them to be combusted in a flare. The flare gas recovery systems will allow Dow to reuse these gases as a fuel at its facilities or a product for sale. Dow will also create waste minimization plans for each facility to further reduce flaring. For flaring that must occur, the agreement requires that Dow install and operate instruments and monitoring systems to ensure that the gases sent to its flares are efficiently combusted. Dow will also perform air quality monitoring that is designed to detect the presence of benzene at the fence lines of the four covered plants and pay a civil penalty of $3 million.
The LDEQ will receive $675,000 of the $3 million total civil penalty, and Dow will perform three state-authorized “beneficial environmental projects” in Louisiana that were negotiated by Louisiana.
More information about this settlement can be found at https://www.epa.gov/enforcement/dow-chemical-company-performance-materials-na-inc-and-union-carbide-corporation-clean.
The consent decree, lodged in the Eastern District Court of Louisiana, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
Defendants Sentenced for Roles in International Firearms TraffickingRead the Press Release
Fort Lauderdale, FL. – Two defendants were sentenced last week in federal court for their roles in an international firearms trafficking ring. On Monday, January 11, 2021, Naomi Natal Haynes, 41, a citizen of Canada and United States legal resident, was sentenced to 84 months in prison by United States District Judge Roy K. Altman for conspiracy to make false statements to firearms dealers and to smuggle firearms to Canada from the United States, as well as aggravated identity fraud. On January 14, 2020, Marco Ian Almeida-Barreto, 24, of Pompano Beach, FL, was sentenced to 120 months in prison by United States District Judge James I. Cohn, for possession of firearms as a convicted felon.
According to court records, on September 22, 2018, the Canadian Border Service Agency (“CBSA”) intercepted 19 handguns and one silencer which were hidden inside a vehicle with a trap compartment. The seizure occurred after the vehicle entered Canada from Plattsburg, New York. The Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) traced nearly all of the firearms to South Florida and determined several handguns were purchased at gun shows in Palm Beach and Broward Counties. Additionally, three of the firearms, including a Glock Model 43, 9 mm handgun, a Sig Sauer .45 caliber handgun and a Gemtech .45 caliber silencer were reported stolen.
According to court documents, Ameida-Barreto ensured that firearms made their way to Haynes. Haynes drove the 19 firearms and silencer from South Florida to Plattsburg, New York. A co-conspirator drove them the rest of the way into Canada.
Others charged for their alleged roles in the scheme are Mackenzie Delmas, Enza Esposito, Shalena Mary Haynes, and Jeremy Ruwan Rosello.
Rosello was sentenced on July 24, 2020 to 108 months in prison for his role in the offense.
Delmas is set for trial in July 2021. Esposito and Shalena Haynes are fugitives.
Ariana Fajardo Orshan, United States Attorney, Southern District of Florida, Robert Cekada, Special Agent in Charge, ATF Miami Field Division, Gregory Tony, Sheriff, Broward County Sheriff’s Office made the announcement.
Ms. Fajardo and Mr. Cekada also wish to acknowledge the assistance of the United States Department of Homeland Security, Homeland Security Investigations, United States Customs and Border Protection, and the cooperation of the many international law enforcement agencies, including CBSA, the Royal Canadian Mounted Police, Montreal Police Services, Toronto Police Services and the Ontario Provincial Police, all of which contributed to the successful prosecution of these defendants.
Assistant United States Attorney Adam C. McMichael and Department of Justice Trial Attorney Paola Henry prosecuted these cases.
Delmas, Esposito, and Shalena Haynes are presumed innocent until found guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 19-cr-80045 and 19-cr-60383.
###
Dealer in Fentanyl and Fentanyl Analogues Sentenced to Ten Years’ ImprisonmentRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Kwame’ Leon Weaver (31, Clearwater) to 10 years in federal prison for possessing a mixture of fentanyl, acetylfentanyl, and heroin with the intent to distribute it.
Weaver had pleaded guilty on November 20, 2019.
According to court documents, Weaver sold fentanyl and acetylfentanyl to an undercover law enforcement officer on several occasions. When officers executed a search warrant at Weaver’s residence, they found him outside, whereupon he dropped several grams of an acetytlfenatnyl/fentanyl/heroin mixture. The officers also recovered a .38 caliber pistol from inside Weaver’s home. Weaver has prior convictions for carjacking and selling hydromorphone and therefore is prohibited from possessing firearms under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Callan L. Albritton.
DOJ and Florida company settle allegations it imported roofing materials without required country of origin markingsRead the Press Release
Seattle - A Florida-based corporation that manufactures, imports, and distributes products used in residential and commercial construction has agreed to pay the United States $160,933 to resolve allegations that it imported roofing underlayment product manufactured in China without country of origin markings, announced U.S. Attorney Brian T. Moran. The United States alleges that between December 2017 and July 2019, Gardner-Gibson, Inc., violated customs laws by importing products that did not bear any mark indicating to the ultimate purchaser in the United States the country of origin of the article.
“It is important that all U.S. businesses have a fair playing field,” said U.S. Attorney Moran. “This case began with a relator alerting the government to the unlawful conduct, helping the government police the import marketplace to ensure fairness.”
The settlement with Gardner-Gibson resolves a lawsuit filed under the qui tam provisions of the False Claims Act. The False Claims Act permits a private individual, called a relator, to sue on behalf of the government for false claims and to share in any recovery. The relator in this case alleged that Gardner-Gibson violated the False Claims Act by evading customs duties owed to the United States as a result of Gardner-Gibson’s knowing failure to mark properly imported products with their country of origin. The relator will receive approximately 20% of the $160,933 settlement. Gardner-Gibson will also pay the relator’s attorney fees of more than $40,000.
The resolution in this matter is the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Washington, U.S. Customs and Border Protection, and the U.S. Department of Homeland Security Office of Inspector General.
The settlement was negotiated by Assistant United States Attorney Ashley Burns. The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit is captioned United States of America ex rel. Aylwin v. Gardner-Gibson, Inc., No. 18-CV-1487-RAJ.
Brooklyn Man Sentenced to 33 Months’ Imprisonment for Witness RetaliationRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Kysheeq Randolph was sentenced to 33 months’ imprisonment by United States District Judge Sterling Johnson, Jr., for making threatening hand gestures at a government witness who was testifying in a federal criminal trial. Randolph pleaded guilty in February 2020 to a superseding criminal information charging him with witness retaliation.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York announced the sentence.
“It is a solemn duty of law enforcement to protect witnesses who testify at trial and attempts to brazenly intimidate or terrorize them will never be tolerated.” stated Acting United States Attorney DuCharme. “Today the defendant learned that such flagrant disregard for the rule of law will be punished with incarceration.” Mr. DuCharme thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division, and the United States Marshals Service, Eastern District of New York, for their work in the case.
In October 2019, Devone Jefferys, a relative of the defendant, was on trial at the federal courthouse in Brooklyn for his role in a home invasion armed robbery. During the trial, while a witness who had participated in the robbery was testifying, Randolph was seated in the public gallery of the courtroom in the witness’s line of sight. Randolph began making gestures with his hand to mimic the shape of a gun and pointed it to his head and then to his chin in an upward movement to threaten the witness.
The government’s case is being prosecuted by Assistant United States Attorney Genny Ngai.
The Defendant:
KYSHEEQ RANDOLPH
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-545 (SJ)
Braintree Man Sentenced for Fentanyl and Carfentanil ConspiracyRead the Press Release
BOSTON - A Braintree man was sentenced today in federal court in Boston for conspiracy to distribute fentanyl and carfentanil.
David Fernandes, 33, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 30 months in prison, three years of supervised release and ordered to pay a fine of $1,000.
From May 2019 through August 2019, David Fernandes and co-defendants Rickey Depina, Keanu Fernandes and Viviana Fontes conspired to distribute fentanyl and carfentanil in Brockton, Abington, Boston, Braintree, Easton, Fall River, Holbrook, Norton, Quincy, Raynham, South Easton, West Bridgewater and Whitman. During this time, law enforcement made controlled purchases of fentanyl and carfentanil on multiple occasions. On Oct. 1, 2018, law enforcement stopped a car in which David Fernandes, Depina and Fontes were traveling and recovered over 17 grams of fentanyl, approximately $1,750 and four cellular phones. They were arrested on state charges. In search warrants executed later that day, law enforcement recovered another $10,000.
Co-defendants Depina, 32, of Brockton; Keanu Fernandes, 33, of Brockton; and Fontes, 30, of Brockton, previously pleaded guilty to the conspiracy charge. On Sept. 20, 2020, Depina was sentenced to 30 months in prison and three years of supervised release. On Jan. 12, 2021, Keanue Fernandes was sentenced to one year and one day in prison and three years of supervised release. Fontes has yet to be sentenced.
According to the Drug Enforcement Administration, carfentanil is an analog of fentanyl and approximately 10,000 times more potent than morphine and 100 times more potent than fentanyl. It is used commercially in tranquilizer darts for large mammals such as elk or elephants and can be lethal in a dose as small as 2 milligrams.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Emanuel Gomes made the announcement today. Assistant U.S. Attorneys Timothy Moran and Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
Albuquerque man sentenced to 17 years in federal prison for attempted carjacking, robbery, and firearm possessionRead the Press Release
ALBUQUERQUE, N.M. – Joe Pacheco-Romero, 33, of Albuquerque was sentenced in federal court on Jan. 13 to 17 years and six months in prison for attempted carjacking, interference with commerce by threats or violence, and using a firearm during and in relation to a crime of violence.
According to his plea agreement, Romero admitted to robbing an Albuquerque business on Oct. 17, 2018. Soon after, Romero broke into a nearby residence and attempted to steal the homeowner’s vehicle at gunpoint. The victim was able to escape and Romero fled the residence. Romero then attempted to carjack another vehicle, firing several shots and hitting the vehicle multiple times. The two victims inside the vehicle were able to put the car in reverse and escape.
Immediately afterward, Romero entered a restaurant and attempted to rob a victim of his vehicle. When that attempt failed, Romero tried to rob a second victim of her vehicle. Suspecting a police officer was outside the restaurant, Romero directed a victim to call 911 and demand a getaway vehicle. Romero was soon apprehended by the Albuquerque Police Department (APD) SWAT team. Romero was wounded by gunfire during the arrest.
Upon his release from prison, Pacheco-Romero will be subject to three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Albuquerque Police Department investigated the case. Assistant U.S. Attorney Niki Tapia-Brito prosecuted the case.
Tuesday 19 January 2021
Wylie, Texas Man Sentenced After Admitting to Distributing Child Pornography and Communicating with Suspected MinorsRead the Press Release
PLANO, Texas – A 35-year-old Wylie, Texas man has been sentenced for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Zachary Sean Layne pleaded guilty on Jan. 6, 2020, to distributing child pornography and was sentenced to 210 months in federal prison by U.S. District Judge Sean D. Jordan on Jan. 15, 2021.
According to information presented in court, in the spring of 2019, federal agents served a search warrant at Layne’s home in Wylie, Texas, following a report from a social media company about suspected child pornography being shared from a user at Layne’s residence. Layne admitted that he used the social media applications and that he regularly chatted with other individuals on the platform. He stated that he had been trading child pornography, via the social media application and cloud storage accounts, for more than a year. In addition to trading child pornography, Layne admitted to chatting with individuals he believed to be minors. He stated that he “catfished” some of the minors with the hopes that they would send him pornographic material. Layne further admitted that he engaged in sexually graphic conversations with many purported minors, including about meeting up for sex. There is no evidence that Layne followed through with plans to meet with minors to engage in sexual activity.
“Those who dare to prey on children will be prosecuted to the fullest extent of the law,” said U.S. Attorney Cox. “Other would-be exploiters are on notice that EDTX and its law enforcement partners have zero tolerance for such despicable crimes.”
“Predators who exploit the innocence of children must not have any presence within our communities,” said Christopher Miller, Deputy Special Agent in Charge HSI Dallas. “We will work endlessly to ensure we remove these deviant criminals from our streets, using the full magnitude of our investigative resources to end the illegal business of sexual exploitation of minors.”
As part of his guilty plea, Layne admitted that he knowingly distributed child pornography, using cellular devices and the social media platform. Layne also agreed that he had shared the files in order to receive valuable consideration, namely, other and new child pornography. Moreover, Layne admitted that be distributed and possessed more than 600 images and videos of child pornography, and that the files depicted prepubescent minors and sadistic or masochistic abuse.
This case was investigated by Homeland Security Investigations Safety with assistance of the Wylie Police Department, Dallas Police Department, and the U.S. Department of Justice—Office of the Inspector General, Investigations Division. The case was prosecuted by Assistant U.S. Attorney Marisa Miller.
###
Virginia Man Pleads Guilty to Defrauding Export-Import Bank of U.S. of $1.6 millionRead the Press Release
RICHMOND, Va. – A Glen Allen man pleaded guilty today to committing wire fraud and making false statements to a federally insured bank during a two-year scheme to defraud both a Pennsylvania-based bank and the Export-Import Bank of the United States in connection with a $1.6 million loan.
According to court documents, Tae Il Lee, 41, was the Managing Director of New World Group, a Richmond-based company engaged in the business of exporting American snacks and other food stuffs to international buyers (typically South Korean companies). In April 2016, Lee sought what eventually became a $1.6 million loan from First National Bank of Pennsylvania, relying on the “Working Capital Program” offered by the Export-Import Bank of the United States (EXIM Bank). Under the program, EXIM guaranteed to provide financial backing for the loan in the event that New World Group defaulted.
Over the next two years, Lee regularly provided First National Bank, and the bank’s auditing firm, with financial documents that purported to show New World Group’s accounts receivable, banking statements, and financial statements. These documents reflected that New World Group was a growing, thriving export company, grossing more than $6 million in export sales in 2017 and another $6.3 million in just the first few months of 2018. Lee admitted in court today that those documents were false.
According to court documents, Lee had created fictitious accounts receivable and financial statements, and doctored New World Group’s actual bank statements to show non-existent, high-dollar transactions that never took place. During the course of his fraud scheme, Lee also created a fictitious intermediary—a purported employee of New World Group—in order to account for delays in Lee’s communications with First National Bank.
In the spring of 2018, First National Bank issued a demand letter for the $1.6 million loan to New World Group. New World Group never completed any payments to First National Bank, which requested that EXIM cover the defaulted loan. EXIM did so, absorbing the $1.6 million loss.
Lee is scheduled to be sentenced on May 12, 2021. He faces a maximum penalty of 20 years in prison for wire fraud and 30 years in prison for making false statements to a federally insured bank. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jennifer Fain, Acting Inspector General for the Export-Import Bank of the United States, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Thomas A. Garnett and Kaitlin G. Cooke are prosecuting the case.
This matter was investigated by the EXIM Office of Inspector General (OIG). EXIM is the official export credit agency of the United States and assists in financing the export of U.S. goods and services to international markets. Complaints and reports of waste, fraud, and abuse related to EXIM programs and operations can be reported to the OIG hotline at 888-OIG-EXIM (888-644-3946) or via email at [email protected].
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. 3:21-cr-2.
United States Reaches Agreement with Midwest Can for Clean Air Act ViolationsRead the Press Release
The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice announced a settlement today that will require Midwest Can Company, one of the largest manufacturers of portable fuel containers in the United States, to pay a $1.7 million civil penalty to resolve Clean Air Act violations.
The violations resulted from failure to disclose test results showing that Midwest’s portable fuel containers did not meet regulatory standards and emitted higher amounts of pollutants than allowed by federal law. Under the terms of the settlement, Midwest will also conduct two supplemental emission tests in the next four years on its currently certified co-extruded plastic portable fuel containers and submit complete results from those tests to the EPA.
“Today’s settlement with Midwest Can Company marks the Justice Department’s first enforcement action against portable fuel container manufacturers under the Clean Air Act,” said Jonathan D. Brightbill, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “This settlement helps maintain the integrity of regulations governing portable fuel containers and ensures that manufacturers who are responsible for complying with the rules do not gain an unfair competitive advantage from subverting regulatory requirements.”
“The defendant submitted false and incomplete information to the EPA and prevented EPA from timely implementing and enforcing regulations intended to protect public health and our air,” said Susan Bodine, EPA’s Office of Enforcement and Compliance Assurance Assistant Administrator. “EPA will continue to enforce against companies that fail to comply with information submission obligations.”
“We are pleased to announce this settlement with Midwest Can Company, one of the largest manufacturers of portable fuel containers in the United States,” said John Lausch Jr., U.S. Attorney for the Northern District of Illinois. “In paying a significant penalty and agreeing to perform supplemental testing, Midwest Can Company will be held accountable for its disregard of proper testing and reporting procedures in violation of the Clean Air Act.”
Clean Air Act regulations require that all portable fuel containers sold in the United States must be covered by a certificate of conformity issued by EPA confirming that the containers meet emission limits for volatile organic compounds (VOCs). The complaint filed simultaneously with the settlement alleges that Midwest violated the Clean Air Act because its 2014 applications for certificates of conformity failed to disclose test results showing that the portable fuel containers did not meet regulatory standards and emitted higher amounts of VOCs than allowed by federal law.
EPA discovered the violations following a series of investigative actions from 2016-2018. In 2016, EPA conducted emission testing on five of Midwest’s portable fuel containers sold under the 2014 certificates of conformity. All five containers failed the emission test. EPA proceeded in 2017 to inspect the test lab utilized by Midwest to conduct emission testing of its portable fuel containers. In 2018, EPA received and reviewed additional information from the test lab, which revealed the violations related to Midwest’s applications for certificates of conformity.
VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems.
The consent decree has been lodged with the U.S. District Court for the Northern District of Illinois and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register, allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here: https://www.epa.gov/enforcement/report-environmental-violation-general-information.
United States Reaches Agreement with Midwest Can Company for Clean Air Act ViolationsRead the Press Release
WASHINGTON – The U.S. Environmental Protection Agency and the U.S. Department of Justice today announced a settlement that will require Midwest Can Company, one of the largest manufacturers of portable fuel containers in the United States, to pay a $1.7 million civil penalty to resolve Clean Air Act violations.
The violations resulted from failure to disclose test results showing that Midwest’s portable fuel containers did not meet regulatory standards and emitted higher amounts of pollutants than allowed by federal law. Under the terms of the settlement, Midwest will also conduct two supplemental emission tests in the next four years on its currently certified co-extruded plastic portable fuel containers and submit complete results from those tests to the EPA.
“We are pleased to announce this settlement with Midwest Can Company, one of the largest manufacturers of portable fuel containers in the United States,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “In paying a significant penalty and agreeing to perform supplemental testing, Midwest Can Company will be held accountable for its disregard of proper testing and reporting procedures in violation of the Clean Air Act.”
“Today’s settlement with Midwest Can Company marks the Justice Department’s first enforcement action against portable fuel container manufacturers under the Clean Air Act,” said Jonathan D. Brightbill, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “This settlement helps maintain the integrity of regulations governing portable fuel containers and ensures that manufacturers who are responsible for complying with the rules do not gain an unfair competitive advantage from subverting regulatory requirements.”
“The defendant submitted false and incomplete information to the EPA and prevented EPA from timely implementing and enforcing regulations intended to protect public health and our air,” said Susan Bodine, EPA’s Office of Enforcement and Compliance Assurance Assistant Administrator. “EPA will continue to enforce against companies that fail to comply with information submission obligations.”
Clean Air Act regulations require that all portable fuel containers sold in the United States must be covered by a certificate of conformity issued by EPA confirming that the containers meet emission limits for volatile organic compounds (VOCs). The complaint filed simultaneously with the settlement alleges that Midwest violated the Clean Air Act because its 2014 applications for certificates of conformity failed to disclose test results showing that the portable fuel containers did not meet regulatory standards and emitted higher amounts of VOCs than allowed by federal law.
EPA discovered the violations following a series of investigative actions from 2016 to 2018. In 2016, EPA conducted emission testing on five of Midwest’s portable fuel containers sold under the 2014 certificates of conformity. All five containers failed the emission test. EPA proceeded in 2017 to inspect the test lab utilized by Midwest to conduct emission testing of its portable fuel containers. In 2018, EPA received and reviewed additional information from the test lab, which revealed the violations related to Midwest’s applications for certificates of conformity.
VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems.
The consent decree has been lodged with the U.S. District Court for the Northern District of Illinois and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register, allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more by logging on to https://www.epa.gov/enforcement/report-environmental-violation-general-information.
United States Attorney’s Office Recovers $1 Million in Restitution for VictimsRead the Press Release
SACRAMENTO, Calif. — On Jan. 11, the United States received a $1 million payment as part of a settlement reached in a fraudulent transfer action brought by the Department of Justice, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2014, Mary Sue Weaver, 67, of Phoenix, Arizona, purchased a home titled solely in her name. A year later, Weaver was indicted for multiple counts of wire fraud, mail fraud, bank fraud, and false statements to a federally insured institution, with estimated losses of more than $22 million. She subsequently pleaded guilty to one count of wire fraud and one count of bank fraud and was sentenced to four years in prison and ordered to pay more than $15 million in restitution. Weaver currently is serving her sentence under home confinement.
Prior to her guilty plea, and a mere six weeks after Weaver was indicted, she executed a deed of trust against the home in favor of her husband, who was not charged. The deed of trust fully encumbered the home, putting it beyond the reach of her creditors, and prevented sale of the property to pay restitution to the victims of the fraud.
The U.S. Attorney filed a civil complaint under the Federal Debt Collection Procedures Act against Weaver and her husband, alleging that the execution and recording of the deed of trust to Weaver’s husband was fraudulent. After substantial discovery and litigation, the parties agreed to settle the action at mediation, where the defendants agreed that Weaver’s husband would make a $1 million cash payment to be applied towards Weaver’s restitution obligation.
“Convicted defendants who attempt to conceal or encumber their property to deprive victims of their lawfully ordered restitution will be found and stopped like Mary Sue Weaver was,” said U.S. Attorney Scott. “The job of the Department of Justice doesn’t end at conviction, and we never stop fighting on behalf of victims.”
Assistant U.S. Attorney Robin Tubesing handled the case for the United States.
U.S. Attorneys Andrew Birge and Matthew Schneider Announce Record-Setting Drug Diversion Civil Penalty Settlement with McLaren Health Care CorporationRead the Press Release
$7,750,000 Settlement Includes A Three-Year Memorandum of Agreement With The U.S. Drug Enforcement Administration
GRAND RAPIDS AND DETROIT, MICHIGAN - The United States Attorneys’ Offices for the Western and Eastern Districts of Michigan announced today that McLaren Health Care Corporation (MHCC) has agreed to pay the United States $7,750,000 to resolve allegations that MHCC violated certain provisions of the Controlled Substances Act (the CSA), 21 U.S.C. §§ 801-904. The civil settlement resulted from a years-long investigation by the U.S. Drug Enforcement Administration (DEA) into MHCC’s handling of controlled substances. It is the nation’s largest settlement of its kind involving allegations of drug diversion at a health care system.
DEA began its investigation after learning that an unregistered substance abuse treatment facility was improperly receiving controlled substances from an MHCC subsidiary pharmacy in the Western District of Michigan by calling in prescriptions for “office stock.” DEA expanded its investigation and concluded that certain of MHCC’s controlled substances practices, at numerous facilities across the State of Michigan, violated the CSA and its implementing regulations.
The government alleged, among other things, that McLaren Port Huron Pharmacy and McLaren Yale Pharmacy in the Eastern District of Michigan dispensed Schedule II drugs without written prescriptions and despite “red flags” that those drugs were being diverted by MHCC’s pharmacist-in-charge. These “red flags” included: pattern prescriptions for the same type of drugs, in the same quantities, from the same prescriber; prescriptions for excessive quantities of highly-addictive Schedule II drugs; repeated early prescription refills; significant outlier drug volumes for individual patients and prescribers; prescription entries in the names of fake patients; and discrepancies between the cash reported and cash collected for controlled substance prescriptions. The government alleged that other MHCC pharmacies also dispensed controlled substances despite obvious “red flags” that the underlying prescriptions may have been issued without a legitimate medical purpose or were otherwise unauthorized.
The government further alleged that several MHCC facilities violated the CSA’s recordkeeping provisions, including by failing to notify DEA of known employee thefts of controlled substances. These violations, the government claimed, stemmed in part from certain facility policies that were inconsistent with the CSA’s requirements and MHCC’s failure to revise other legacy policies that remained in place after MHCC acquired corporate health care providers.
As part of the settlement, MHCC admitted that:
- The McLaren Port Huron and Yale Pharmacies did not have written prescriptions for approximately 1,255 Schedule II prescription events between May 1, 2014 and February 22, 2018;
- MHCC’s Prescription Services pharmacy distributed controlled substances to an unregistered treatment facility in Boyne Falls, Michigan between November 22, 2015 and November 13, 2017 without making a good faith inquiry into whether that treatment facility was registered with DEA;
- McLaren Greater Lansing did not notify DEA of certain thefts of controlled substances between July 27, 2007 and May 31, 2019;
- Theft and diversion of controlled substances occurred at certain of MHCC’s locations; and
- Some of MHCC’s corporate policies—including legacy policies that remained in place after MHCC’s integration with Port Huron Hospital—were not consistent with the requirements of the CSA and its regulations.
Andrew Birge, United States Attorney for the Western District of Michigan, said, “While our health systems provide critical services to patients, they carry broader public responsibilities as bulwarks against the drug diversion that contributes to the surging opioid crisis in the State of Michigan. Hospitals and health systems handle significant quantities of controlled substances and must fulfill their legal obligations for handling those drugs under the Controlled Substances Act. This settlement demonstrates our offices’ shared commitment to working cooperatively, together and with our agency partners, to hold even the largest providers accountable when they fall short of what the law demands.”
“At nearly $7.8 million, this is the largest civil Controlled Substances Act settlement in American history involving a health care system whose internal practices were so deficient that it allowed the diversion of drugs, including opioids,” stated United States Attorney Matthew Schneider. “McLaren clearly didn’t have a sufficient system in place to catch these problems. But now, under this settlement, McLaren is stepping up and implementing more robust compliance measures. That’s exactly what we expect of corporations in Michigan who do wrong: they recognize their mistakes and learn from them, which benefits their employees and the public.”
“Everyone from the manufacturer of a controlled substance to the prescribing healthcare provider has a legal obligation to ensure pharmaceuticals don’t get into the wrong hands,” said Drug Enforcement Administration Special Agent in Charge Keith Martin. “When they violate these obligations, we will investigate and hold them accountable.”
As part of the settlement, MHCC entered into a three-year Memorandum of Agreement with DEA that, among other things, prescribes the system’s drug-handling responsibilities, mandates external controlled substance audits, and requires MHCC to institute a broad-based educational program focused on preventing drug diversion in the workplace. In reaching this settlement, the government recognized the substantial steps MHCC took in response to DEA’s investigation to address problems in its handling of controlled substances.
DEA investigated this matter. The United States was represented by Assistant U.S. Attorneys Adam Townshend and Caroline Burgunder.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
###
U.S. Attorney Wrigley Announces the Arrest of a Lisbon, ND, Man for the Violent Ax Attack on U.S. Senator John Hoeven’s Office on December 21, 2020Read the Press Release
FARGO – United States Attorney Drew Wrigley announced that a federal grand jury has indicted Thomas Alexander Starks, age 30 of Lisbon, ND, for Damage of Government Property, 18 USC 1361. The Indictment was unsealed today alleging that on December 21, 2020, Starks went to the downtown Fargo office of United States Senator John Hoeven and using an ax, caused substantial damage to the windows, intercom system, and doorframe. The monetary damages caused by Starks’ exceed $1,000.
"The axe attack alleged in this indictment is another attempt to blur the line between threats and speech, resorting to violence in the name of political action" said US Attorney Drew Wrigley, "but we will not allow such incursions, and we will remain unyielding in our support of law enforcement, peaceful speech and lawfulness."
"Vicious and dangerous attacks like this – especially on a government official’s office - will not be tolerated by the FBI," said Michael Paul, special agent in charge of the FBI’s Minneapolis field office. "This defendant’s violent and destructive behavior reflects a total disregard for the rule of law. The defendant will now be held to account for his unlawful actions. The charges announced today reflect our steadfast commitment to identifying violent criminals, enforcing the law, and protecting elected officials from acts of violence," Paul added.
Grand jury Indictments are allegations and are not evidence of guilt. The defendant is presumed innocent unless and until he is proven guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigations, the Fargo Police Department and the Cass County Sheriff’s Office, and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Richard Lee assigned to the case.
# # # #
U.S. Attorney Mike Hurst Announces First Assistant U.S. Attorney Darren LaMarca Will Serve as Acting U.S. Attorney for Southern District of MississippiRead the Press Release
Jackson, Miss. –United States Attorney Mike Hurst announced that, upon his resignation at the end of today, First Assistant U.S. Attorney Darren LaMarca will begin to serve as Acting U.S. Attorney for the Southern District of Mississippi, effective January 20, 2021.
“Darren LaMarca is a dedicated public servant and will serve the people of the Southern District with honor, integrity and distinction. His background in both the private and public sector, including his leadership in this office, makes him the perfect individual to assume the role of Chief Federal Law Enforcement Officer for over half of our state. He is well-respected by law enforcement, the defense bar and our community, and he will do an outstanding job as Acting U.S. Attorney. I want to personally thank him for his wise counsel and his character, and I wish him all the best in this role. He will do an incredible job for our citizens,” said U.S. Attorney Hurst.
“I want to thank Mr. Hurst for his outstanding leadership and relentless pursuit of justice over these past three plus years. The Office of the United States Attorney will continue this relentless pursuit until a new presidentially appointed United States Attorney is confirmed.,” said First Assistant U.S. Attorney Darren LaMarca.
Mr. LaMarca is a graduate of Northeast Louisiana University and the Mississippi College School of Law. He began his law career in 1986 as a law clerk to Justice Roy Noble Lee of the Mississippi Supreme Court. He then worked as an attorney with a private law firm in Jackson for four years before opening his own practice in Clinton. During his sixteen years in private practice in Clinton, he also served as Municipal Judge for the City of Clinton from 2002 to 2007. In May 2007, he joined the United States Attorney’s Office prosecuting organized drug trafficking, financial crimes, and public corruption. While at the U.S. Attorney’s Office, Mr. LaMarca has served as Deputy Chief of the Criminal Division, Chief of the Criminal Division, and First Assistant United States Attorney.
The Vacancies Reform Act (VRA), 5 U.S.C. § 3345(a)(1), provides that when a presidentially appointed U. S. Attorney resigns, the First Assistant U.S. Attorney (“FAUSA”) of that office automatically becomes Acting U.S. Attorney, unless otherwise directed by the President of the United States.
U.S. Attorney Cox Announces Departure from Eastern District of Texas PostRead the Press Release
BEAUMONT, Texas – United States Attorney Stephen J. Cox announced that he will step down from his post as U.S. Attorney for the Eastern District of Texas (EDTX) effective 11:59 p.m. today, January 19.
“The opportunity to serve as the U.S. Attorney for the Eastern District of Texas has been a distinct honor and privilege for which I will be forever grateful,” said Cox. “The opportunity to serve the people of the Great State of Texas, and to work alongside the fine men and women of our office, has been nothing short of humbling.”
During Cox’s tenure at EDTX, the District focused increased attention on complex fraud and white-collar enforcement, with a particular emphasis on healthcare, financial, and antitrust crimes; adopted new corporate enforcement policies that are important for transparency, good government, and fairness; launched a new transnational elder fraud initiative designed to target international crime rings targeting senior citizens; formed new partnerships and strike forces with law enforcement partners to leverage expertise and increase referrals; initiated a new violent crime enforcement blitz designed to thwart a rise in gun crimes in Port Arthur and the Golden Triangle; formed new public-private partnerships to facilitate increased information sharing; and developed a new leadership structure to implement specialized fields of practice and increase collaboration and co-counsel opportunities across the District.
Cox began his service at the Department of Justice in early 2017, when he served as Deputy Associate Attorney General in the Office of the Associate Attorney General (OASG), overseeing five large litigating components, three grant-making components, and a number of other offices relating to civil justice. Cox spearheaded numerous policy reforms relating to corporate enforcement and regulatory reform, while overseeing several Department matters concerning financial fraud and healthcare fraud. He also served as vice chair of the Deputy Attorney General’s working group on corporate enforcement and accountability, and as executive director of the Department’s regulatory reform task force.
In May 2020, after more than three years in OASG including as Chief of Staff, former Attorney General William Barr appointed Cox as U.S. Attorney for EDTX effective June 1st, and on September 28th was appointed by the Court as U.S. Attorney, having received the unanimous approval of the active and senior District Judges.
Cox focused a significant amount of attention developing new ways to leverage the talented personnel in the Office. Since his arrival, EDTX made some sizeable changes to the structure of the office, moving personnel between divisions, adding new hires, and creating new roles to better accomplish our mission. In the Criminal Division, for example, Cox identified specialized fields of practice and named Deputy Chiefs to oversee these new sections across the District. The new structure now leverages the expertise of these Deputy Chiefs in some of our most specialized cases and creates a horizontal structure that allows for unprecedented collaboration amongst all our offices.
Under Cox’s leadership, EDTX also increased its capacity and strengths in white collar enforcement through the new personnel structure, more targeted recruiting and staffing, new and improved partnerships with law enforcement, and new corporate enforcement policies. For example, EDTX recruited two new White Collar AUSAs, partnered with the Criminal Division to embed three Healthcare Strike Force prosecutors within EDTX, and recruited new SAUSAs with white-collar experience. EDTX signed an MOU with the Special Inspector General for Pandemic Recovery so that we could heighten the focus on COVID-related fraud; joined the Gulf Coast Strike Force to increase healthcare fraud capacity; and joined the Procurement Collusion Strike Force to bolster efforts to protect competition in the procurement marketplace.
Cox launched a new transnational elder fraud initiative and placed a senior white collar prosecutor from the leadership team in charge. The initiative’s purpose is to reimagine the fight against elder fraud and use the same tactics and tools that EDTX uses to root out transnational drug cartels to decimate the criminal transnational syndicates preying on our seniors. EDTX established three separate Financial Investigation Groups to partner with law enforcement in conducting an expansive review of Suspicious Activity Reports, which have identified financial transactions that might be related to elder fraud. EDTX established an open, working dialogue with some of the world’s biggest banks to share information and foster better referrals. EDTX participated in the Department of Justice’s Money Mule Initiative with great results. Money mules are the lifeblood of these international fraud rings, and EDTX identified and disrupted at least 13 money mules through interviews, warning letters, and criminal charges. EDTX is also working with Texas retailers and grocers on what to look for when they suspect a large gift card purchase is being used to facilitate money laundering. Finally, EDTX grew its partnerships with the Consumer Protection Branch, the Criminal Division, and the Federal Trade Commission, yielding increased elder fraud referrals.
Borrowing a page from his work at Main Justice, Cox recently announced that EDTX has formally adopted the most recent corporate enforcement policies that the Department has introduced in the past four years, removing any doubt as to whether they applied in EDTX. The policies address a wide spectrum of white-collar enforcement issues relating to corporate resolutions, prosecutorial discretion, third-party payments, voluntary disclosure, cooperation, guidance documents, piling-on credit, agency coordination, compliance programs and corporate monitors, and ability to pay. Cox spearheaded several of these policies while at OASG and assisted with others in his capacity as vice-chair of the Deputy Attorney General’s working group on corporate enforcement and accountability.
Cox supervised investigations into and secured charges or convictions in numerous significant cases, including, the bomber of a Beaumont church; Jefferson County residents allegedly engaged in the unlawful nationwide distribution of butanediol, commonly referred to as a “date rape drug;” a church pastor charged with production of child pornography; the seizure of phony tech support websites used to defraud Amazon customers; a Collin County man facing COVID-relief fraud charges related to the Paycheck Protection Program; Liberty County residents alleged to have operated a CARES Act fraud scheme involving Economic Injury Disaster Loans; individuals allegedly engaged in a multi-million dollar transnational money laundering operation involving elder fraud; the sentencing of an Al-Qaeda trained jihadist to 300 months for a plot to recruit terrorists to kill Americans on behalf of ISIS; Aryan Circle gang members and associates indicted on charges of racketeering conspiracy, which includes acts involving murder, and violent crimes in aid of racketeering, including assault resulting in serious bodily injury and kidnapping; a Collin County man convicted for cyber fraud and money laundering that victimized senior citizens, school districts, and charities; the conviction of a Jefferson County physician for health care fraud and kickback violations related to compounded scar creams; and the sentencing of a Dark Web cannibal to 40 years for child exploitation violations.
Under Cox’s leadership, the civil litigation practice in EDTX has achieved significant and numerous successes in all aspects of civil practice, including its efforts to enforce the Controlled Substances Act (CSA), False Claims Act (FCA), civil forfeiture, and well as in its defensive practice, defending federal employees and agencies sued in federal court. The United States sought and obtained a temporary restraining order (TRO) under the CSA barring defendants Jake’s Fireworks and Right Price Chemicals from continuing business operations on the grounds that Jake’s Fireworks was a drug-involved premises. EDTX also played a primary role in negotiating a $48 million settlement in United States ex rel. Magee v. Texas Heart Hospital of the Southwest et al, 4:16-cv-00717 (E.D. Tex.) to resolve claims that Texas Heart Hospital of the Southwest and its wholly owned subsidiary violated the Physician Self-Referral Law and the Anti-Kickback Statute. EDTX also continued its commitment to using the FCA to hold individuals, not just corporations, accountable for fraud on the United States, settling with Bibi Tasleyma Sattar, D.O. and her medical practice for $210,000 for violations of the Anti-Kickback Statute, as well as a similar $368,325.00 settlement with Joseph Rizzo, M.D. and a $281,524.07 settlement with Jason Bourque, also for Anti-Kickback violations. EDTX also commenced civil forfeiture proceedings against Fahad Shah, who submitted fraudulent applications for over $3 million in forgivable loans pursuant to the Small Business Authority’s Paycheck Protection Program, but diverted the funds for his own personal use.
Upon Cox’s departure, Nicholas Ganjei, a career federal prosecutor and EDTX’s First Assistant U.S. Attorney, will serve as Acting U.S. Attorney. Ganjei will become the first Persian-American in the 174-year history of the District to serve as EDTX’s U.S. Attorney (acting or otherwise).
“I expect the transition to be seamless,” said Cox. “Nick and I worked hand-in-glove on setting these office priorities and putting our signature initiatives into motion. Although I am passing the torch, I’m excited to see where Nick and the leadership team take the office next.”
Cox will return to the private sector and will announce his next role in the coming months, but in the meantime, Cox plans to spend time with the family ticking through some bucket-list items that include sightseeing, camping, and touring the country.
Cox’s biography can be found here.
U.S. Attorney Brady Statement on Arrests of Two Western PA Pittsburgh MenRead the Press Release
PITTSBURGH – Scott W. Brady, United States Attorney for the Western District of Pennsylvania, issued the following statement today:
"The U.S. Attorney’s Office is working closely with the FBI and the U.S. Attorney’s Office for the District of Columbia to identify those residents of western Pennsylvania who violated federal law in our nation’s Capitol on January 6. The charges announced today against Jorden Mink and Matthew Perna are the result of this collaboration. Together with our federal, state and local partners, we will ensure that our community is safe from those who would incite or commit further violent acts. Such criminal activity will be met with swift justice."
U.S. Army Soldier Arrested for Attempting to Assist ISIS to Conduct Deadly Ambush on U.S. TroopsRead the Press Release
The Justice Department, along with the New York City Police Department (NYPD) and U.S. Army Counterintelligence, announced today the arrest of a private first class in the U.S. Army, on federal terrorism charges based on Bridges’ alleged efforts to assist ISIS to attack and kill U.S. soldiers in the Middle East.
Cole James Bridges, aka Cole Gonzales, 20, of Stowe, Ohio, was charged by complaint with attempting to provide material support to a designated foreign terrorist organization and attempting to murder U.S. military service members. The FBI and U.S. Army Counterintelligence arrested Bridges today, and he will be presented later today in the U.S. District Court for the Southern District of Georgia.
“Bridges is charged with giving military advice and guidance on how to kill fellow soldiers to individuals he thought were part of ISIS,” said Assistant Attorney General for National Security John C. Demers. “This alleged personal and professional betrayal of comrades and country is terrible to contemplate, but fortunately, the FBI was able to identify the threat posed by Bridges, and today's charges are the first step in holding him accountable for his crimes. ISIS ideology continues to infect those who would threaten the nation's security from within and without, and we will continue to fight this threat.”
“As alleged, Cole Bridges betrayed the oath he swore to defend the United States by attempting to provide ISIS with tactical military advice to ambush and kill his fellow service members,” said Acting U.S. Attorney for the Southern District of New York Audrey Strauss. “Our troops risk their lives for our country, but they should never face such peril at the hands of one of their own. Today, thanks to the efforts of the agents and detectives of the JTTF, and our partners in the Department of Defense, Bridges is in custody and facing federal terrorism charges for his alleged crimes.”
“As we allege today, Bridges, a private in the U.S. Army, betrayed our country and his unit when he plotted with someone he believed was an ISIS sympathizer to help ISIS attack and kill U.S. soldiers in the Middle East,” said FBI Assistant Director in Charge of the New York Office William F. Sweeney Jr. “Fortunately, the person with whom he communicated was an FBI employee, and we were able to prevent his evil desires from coming to fruition. Bridges could have chosen a life of honorable service, but instead he traded it for the possibility of life in prison. This case should serve as a reminder that the FBI’s New York JTTF will never quit in its commitment to protect our Nation from all those who seek to do it harm.”
“Army Counterintelligence’s top priority is protecting the force so it can remain committed to fighting and winning our nation’s wars,” said Army Counterintelligence Coordinating Authority Director Roy T. Cochran. “The results of this investigation show the efforts of Army Counterintelligence agents working alongside our partners in the FBI. We are dedicated to protecting our soldiers, civilians, and families from terrorist acts and insider threats.”
According to the criminal complaint charging Bridges, which was unsealed today in Manhattan federal court:
Bridges joined the U.S. Army in approximately September 2019 and was assigned as a cavalry scout in the 3rd Infantry Division based in Fort Stewart, Georgia. Beginning in at least 2019, Bridges began researching and consuming online propaganda promoting jihadists and their violent ideology. Bridges also expressed his support for the Islamic State of Iraq and al-Sham (ISIS) and jihad on social media. In or about October 2020, Bridges began communicating with an FBI online covert employee (the “OCE”), who was posing as an ISIS supporter in contact with ISIS fighters in the Middle East. During these communications, Bridges expressed his frustration with the U.S. military and his desire to aid ISIS. Bridges then provided training and guidance to purported ISIS fighters who were planning attacks, including advice about potential targets in New York City, such as the 9/11 Memorial. Bridges also provided the OCE with portions of a U.S. Army training manual and guidance about military combat tactics, for use by ISIS.
In or about December 2020, Bridges began to supply the OCE with instructions for the purported ISIS fighters on how to attack U.S. forces in the Middle East. Among other things, Bridges diagrammed specific military maneuvers intended to help ISIS fighters maximize the lethality of attacks on U.S. troops. Bridges further provided advice about the best way to fortify an ISIS encampment to repel an attack by U.S. Special Forces, including by wiring certain buildings with explosives to kill the U.S. troops. Then, in January 2021, Bridges provided the OCE with a video of himself in body armor standing before a flag often used by ISIS fighters and making a gesture symbolic of support for ISIS. Approximately a week later, Bridges sent a second video in which Bridges, using a voice manipulator, narrated a propaganda speech in support of the anticipated ambush by ISIS on U.S. troops.
Bridges is charged in the complaint with (1) attempting to provide material support to ISIS, in violation of 18 U.S.C. § 2339B, which carries a maximum sentence of 20 years in prison; and (2) attempting to murder U.S. military service members, in violation of 18 U.S.C. § 1114, which carries a maximum sentence of 20 years in prison. The statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
The Justice Department praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force (JTTF), which consists of agents and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, U.S. Army Counterintelligence, the FBI Washington Field Office, the FBI Atlanta Field Office and its Savannah Resident Agency, the FBI Cleveland Field Office, the FBI’s Counterterrorism Division, the U.S. Attorney’s Office for the Southern District of Georgia, the Air Force Office of Special Investigations, U.S. Army Criminal Investigation Command, and the U.S. Army 3rd Infantry Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Matthew Hellman, and Sidhardha Kamaraju are in charge of the prosecution, with assistance from Trial Attorneys Michael Dittoe and Lauren Goddard of the Counterterrorism Section of the Department of Justice’s National Security Division.
U.S. Army Soldier Arrested for Attempting to Assist ISIS to Conduct Deadly Ambush on U.S. TroopsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, John C. Demers, the Assistant Attorney General for National Security, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), and Roy T. Cochran, Director, U.S. Army Counterintelligence Coordinating Authority, announced today the arrest of COLE JAMES BRIDGES, a/k/a “Cole Gonzales,” a Private First Class in the U.S. Army, on federal terrorism charges based on BRIDGES’s alleged efforts to assist ISIS to attack and kill U.S. soldiers in the Middle East. BRIDGES was charged by Complaint with attempting to provide material support to a designated foreign terrorist organization, and attempting to murder U.S. military service members. The FBI and Army Counterintelligence arrested BRIDGES today, and he will be presented on Thursday, January 21, 2021, in the U.S. District Court for the Southern District of Georgia.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Cole Bridges betrayed the oath he swore to defend the United States by attempting to provide ISIS with tactical military advice to ambush and kill his fellow service members. Our troops risk their lives for our country, but they should never face such peril at the hands of one of their own. Today, thanks to the efforts of the agents and detectives of the JTTF, and our partners in the Department of Defense, Bridges is in custody and facing federal terrorism charges for his alleged crimes.”
Assistant Attorney General John C. Demers said: “Bridges is charged with giving military advice and guidance on how to kill fellow soldiers to individuals he thought were part of ISIS. This alleged personal and professional betrayal of comrades and country is terrible to contemplate, but fortunately, the FBI was able to identify the threat posed by Bridges, and today’s charges are the first step in holding him accountable for his crimes. ISIS ideology continues to infect those who would threaten the nation’s security from within and without, and we will continue to fight this threat.”
FBI Assistant Director William F. Sweeney Jr. said: “As we allege today, Bridges, a private in the U.S. Army, betrayed our country and his unit when he plotted with someone he believed was an ISIS sympathizer to help ISIS attack and kill U.S. soldiers in the Middle East. Fortunately, the person with whom he communicated was an FBI employee, and we were able to prevent his evil desires from coming to fruition. Bridges could have chosen a life of honorable service, but instead he traded it for the possibility of a lengthy prison sentence. This case should serve as a reminder that the FBI’s New York JTTF will never quit in its commitment to protect our Nation from all those who seek to do it harm.”
NYPD Commissioner Dermot Shea said: “As alleged in this federal complaint, Cole Bridges violated his oath and used his position of privilege against his fellow citizens. This arrest, and the work of the FBI’s New York JTTF and all of our law enforcement partners, will ensure that this individual faces justice.”
Army Counterintelligence Coordinating Authority Director Roy T. Cochran said: “Army Counterintelligence’s top priority is protecting the force so it can remain committed to fighting and winning our Nation’s wars. The results of this investigation show the efforts of Army Counterintelligence agents working alongside our partners in the FBI. We are dedicated to protecting our Soldiers, Civilians, and Families from terrorist acts and insider threats.”
According to the criminal Complaint charging BRIDGES,[1] which was unsealed today in Manhattan federal court:
BRIDGES joined the U.S. Army in approximately September 2019, and was assigned as a cavalry scout in the 3rd Infantry Division based in Fort Stewart, Georgia. Beginning in at least 2019, BRIDGES began researching and consuming online propaganda promoting jihadists and their violent ideology. BRIDGES also expressed his support for the Islamic State of Iraq and al-Sham (“ISIS”) and jihad on social media. In or about October 2020, BRIDGES began communicating with an FBI online covert employee (the “OCE”), who was posing as an ISIS supporter in contact with ISIS fighters in the Middle East. During these communications, BRIDGES expressed his frustration with the U.S. military and his desire to aid ISIS. BRIDGES then provided training and guidance to purported ISIS fighters who were planning attacks, including advice about potential targets in New York City, such as the 9/11 Memorial. BRIDGES also provided the OCE with portions of a U.S. Army training manual and guidance about military combat tactics, for use by ISIS.
In or about December 2020, BRIDGES began to supply the OCE with instructions for the purported ISIS fighters on how to attack U.S. forces in the Middle East. Among other things, BRIDGES diagrammed specific military maneuvers intended to help ISIS fighters maximize the lethality of attacks on U.S. troops. BRIDGES further provided advice about the best way to fortify an ISIS encampment to repel an attack by U.S. Special Forces, including by wiring certain buildings with explosives to kill the U.S. troops. Then, in January 2021, BRIDGES provided the OCE with a video of himself in body armor standing before a flag often used by ISIS fighters and making a gesture symbolic of support for ISIS. Approximately a week later, BRIDGES sent a second video in which BRIDGES, using a voice manipulator, narrated a propaganda speech in support of the anticipated ambush by ISIS on U.S. troops.
* * *
BRIDGES, 20, of Stow, Ohio, is charged in the Complaint with (1) attempting to provide material support to ISIS, in violation of 18 U.S.C. § 2339B, which carries a maximum sentence of 20 years in prison; and (2) attempting to murder U.S. military service members, in violation of 18 U.S.C. § 1114, which carries a maximum sentence of 20 years in prison. The statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies. Ms. Strauss also thanked U.S. Army Counterintelligence, the FBI Washington Field Office, the FBI Atlanta Field Office and its Savannah Resident Agency, the FBI Cleveland Field Office, the FBI’s Counterterrorism Division, the U.S. Attorney’s Office for the Southern District of Georgia, the Air Force Office of Special Investigations, U.S. Army Criminal Investigation Command, and the U.S. Army 3rd Infantry Division for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Matthew Hellman, and Sidhardha Kamaraju are in charge of the prosecution, with assistance from Trial Attorneys Michael Dittoe and Lauren Goddard of the Counterterrorism Section of the Department of Justice’s National Security Division.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations and every fact described should be treated as an allegation.
U.s. Attorneys Andrew Birge and Matthew Schneider Announce Record-Setting Drug Diversion Civil Penalty Settlement with McLaren Health Care CorporationRead the Press Release
GRAND RAPIDS AND DETROIT - The United States Attorneys’ Offices for the Western and Eastern Districts of Michigan announced today that McLaren Health Care Corporation (MHCC) has agreed to pay the United States $7,750,000 to resolve allegations that MHCC violated certain provisions of the Controlled Substances Act (the CSA), 21 U.S.C. §§ 801-904. The civil settlement resulted from a years-long investigation by the U.S. Drug Enforcement Administration (DEA) into MHCC’s handling of controlled substances. It is the nation’s largest settlement of its kind involving allegations of drug diversion at a health care system.
DEA began its investigation after learning that an unregistered substance abuse treatment facility was improperly receiving controlled substances from an MHCC subsidiary pharmacy in the Western District of Michigan by calling in prescriptions for “office stock.” DEA expanded its investigation and concluded that certain of MHCC’s controlled substances practices, at numerous facilities across the State of Michigan, violated the CSA and its implementing regulations.
The government alleged, among other things, that McLaren Port Huron Pharmacy and McLaren Yale Pharmacy in the Eastern District of Michigan dispensed Schedule II drugs without written prescriptions and despite “red flags” that those drugs were being diverted by MHCC’s pharmacist-in-charge. These “red flags” included: pattern prescriptions for the same type of drugs, in the same quantities, from the same prescriber; prescriptions for excessive quantities of highly-addictive Schedule II drugs; repeated early prescription refills; significant outlier drug volumes for individual patients and prescribers; prescription entries in the names of fake patients; and discrepancies between the cash reported and cash collected for controlled substance prescriptions. The government alleged that other MHCC pharmacies also dispensed controlled substances despite obvious “red flags” that the underlying prescriptions may have been issued without a legitimate medical purpose or were otherwise unauthorized.
The government further alleged that several MHCC facilities violated the CSA’s recordkeeping provisions, including by failing to notify DEA of known employee thefts of controlled substances. These violations, the government claimed, stemmed in part from certain facility policies that were inconsistent with the CSA’s requirements and MHCC’s failure to revise other legacy policies that remained in place after MHCC acquired corporate health care providers.
As part of the settlement, MHCC admitted that:
• The McLaren Port Huron and Yale Pharmacies did not have written prescriptions for approximately 1,255 Schedule II prescription events between May 1, 2014 and February 22, 2018;
• MHCC’s Prescription Services pharmacy distributed controlled substances to an unregistered treatment facility in Boyne Falls, Michigan between November 22, 2015 and November 13, 2017 without making a good faith inquiry into whether that treatment facility was registered with DEA;
• McLaren Greater Lansing did not notify DEA of certain thefts of controlled substances between July 27, 2007 and May 31, 2019;
• Theft and diversion of controlled substances occurred at certain of MHCC’s locations; and
• Some of MHCC’s corporate policies—including legacy policies that remained in place after MHCC’s integration with Port Huron Hospital—were not consistent with the requirements of the CSA and its regulations.
Andrew Birge, United States Attorney for the Western District of Michigan, said, “While our health systems provide critical services to patients, they carry broader public responsibilities as bulwarks against the drug diversion that contributes to the surging opioid crisis in the State of Michigan. Hospitals and health systems handle significant quantities of controlled substances and must fulfill their legal obligations for handling those drugs under the Controlled Substances Act. This settlement demonstrates our offices’ shared commitment to working cooperatively, together and with our agency partners, to hold even the largest providers accountable when they fall short of what the law demands.”
“At nearly $7.8 million, this is the largest civil Controlled Substances Act settlement in American history involving a health care system whose internal practices were so deficient that it allowed the diversion of drugs, including opioids,” stated United States Attorney Matthew Schneider. “McLaren clearly didn’t have a sufficient system in place to catch these problems. But now, under this settlement, McLaren is stepping up and implementing more robust compliance measures. That’s exactly what we expect of corporations in Michigan who do wrong: they recognize their mistakes and learn from them, which benefits their employees and the public.”
“Everyone from the manufacturer of a controlled substance to the prescribing healthcare provider has a legal obligation to ensure pharmaceuticals don’t get into the wrong hands,” said Drug Enforcement Administration Special Agent in Charge Keith Martin. “When they violate these obligations, we will investigate and hold them accountable.”
As part of the settlement, MHCC entered into a three-year Memorandum of Agreement with DEA that, among other things, prescribes the system’s drug-handling responsibilities, mandates external controlled substance audits, and requires MHCC to institute a broad-based educational program focused on preventing drug diversion in the workplace. In reaching this settlement, the government recognized the substantial steps MHCC took in response to DEA’s investigation to address problems in its handling of controlled substances.
DEA investigated this matter. The United States was represented by Assistant U.S. Attorneys Adam Townshend and Caroline Burgunder.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
###
Tulare County Gang Member Sentenced to 3 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Cesar Pena, 28, of Strathmore, was sentenced Friday by U.S. District Judge Dale A. Drozd to three years and one month in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 16, 2019, Pena, a Strathmore Norteno gang member and a convicted felon prohibited by law from possessing a firearm, sold a firearm to another individual in Fresno. Pena does not hold a Federal Firearms License, and as such, is also prohibited from selling firearms. On Oct. 2, 2020, Pena pleaded guilty to being a felon in possession of a firearm.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jessica A. Massey prosecuted the 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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. For more information about Project Guardian, please see www.justice.gov/projectguardian.