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Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 5 January 2021
Bobby L. Christine named acting U.S. Attorney for Northern District of GeorgiaRead the Press Release
ATLANTA – Bobby L. Christine has been named Acting U.S. Attorney for the Northern District of Georgia. U.S. Attorney Christine is currently the U.S. Attorney for the Southern District of Georgia, and will remain in that position while assuming the additional role in the Northern District.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Bobby L. Christine named Acting U.S. Attorney for Northern District of GeorgiaRead the Press Release
Bobby L. Christine has been named Acting U.S. Attorney for the Northern District of Georgia. U.S. Attorney Christine is currently the U.S. Attorney for the Southern District of Georgia, and will remain in that position while assuming the additional role in the Northern District.
U.S. Attorney Bobby L. ChristineBath Man Arrested, Charged with Receipt and Distribution of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Charles Augrom, III, 34, of Bath, NY, was arrested and charged by criminal complaint with receipt and distribution of child pornography. The charges carry a minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the criminal complaint, in July 2020 an undercover law enforcement officer was investigating individuals who use Peer to Peer file sharing applications to share child pornography over the internet. During the undercover session, the officer downloaded numerous pictures and videos of child pornography that traced back to an IP address belonging to the defendant. Some of the images and videos included children younger than 12 years old engaged in sexual conduct with adults, as well as depictions of violence. On December 10, 2020, investigators executed a search warrant at Augrom’s William Street residence and seized a cellular telephone. The SD card from the phone contained approximately 250 video and image files depicting child pornography. The defendant is a Level III register sex offender on the New York State Sex Offender Registry, following two prior New York State child pornography convictions.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Mark J. Pedersen and is being held pending a detention hearing scheduled for January 11, 2021.
The criminal complaint is the result of an investigation by the Corning Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Baltimore Marijuana Dealer Pleads Guilty to Federal Charges of Discharging a Firearm in Relation to a Drug Trafficking CrimeRead the Press Release
Baltimore, Maryland – Moses Lewis, age 36, of Baltimore, Maryland, pleaded guilty today to a federal charge of discharging a firearm in relation to a drug trafficking crime, resulting in the death of the victim.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Federal, state, and local law enforcement are working together to target leaders and key members of violent gangs operating in Baltimore City,” said U.S. Attorney Robert K. Hur. “We will not tolerate armed drug traffickers peddling death through drugs and gun violence in our neighborhoods. Moses Lewis now faces at least 20 years in federal prison, where there is no parole—ever. Please put down the gun. You’ll save a life, maybe even your own.”
According to his guilty plea, from at least November 2018 through February 22, 2019, Lewis was part of a conspiracy that regularly sold marijuana in the area of Wylie Avenue and Park Heights Avenue in Baltimore. Lewis and others who participated in the conspiracy sold marijuana in street-level quantities to customers. Lewis and the other members of the conspiracy had social and/or family ties in the area. Individuals who were not from the area were not permitted to sell marijuana in the area. Members of the conspiracy frequently carried firearms to protect themselves from others who may want to rob them of drugs or their drug proceeds.
As detailed in the plea agreement, on February 22, 2019, Lewis and other co-conspirators were standing in the area of Wylie Avenue and Park Heights Avenue and selling marijuana. Lewis and “Co-conspirator 1” were each armed with handguns. While Lewis was standing outside, his attention was drawn to a vehicle that was repeatedly driving around the area. Co-conspirator 1 recognized the driver of the vehicle, “RH,” as a drug trafficker from the area who was not a member of the marijuana conspiracy and noticed that RH was accompanied by several unknown persons. Based on RH’s erratic driving behavior and his presence in the area with no discernable purpose, Lewis and Co-conspirator 1 suspected that RH and his associates were intending to rob them of drugs and drug proceeds, and/or to physically harm them.
RH returned to the area, parking the vehicle he was operating outside a store where Lewis and Co-conspirator 1 regularly sold marijuana. When RH stepped out of the vehicle, Lewis called RH over to speak to him. Lewis and Co-conspirator 1 saw that RH was armed with a firearm and Co-conspirator 1 attempted to disarm RH, ultimately disarming him after a brief struggle.
During the struggle, “AS” and Deondre Johnson, the two occupants of RH’s vehicle, got out of the vehicle and began running away. RH broke away from Lewis and Co-conspirator 1 and ran away with AS and Johnson, with Lewis and Co-conspirator 1 in pursuit. Both Lewis and Co-conspirator 1 repeatedly fired their handguns at RH, AS, and Johnson. Johnson was struck several times by the gunfire and died. Lewis and Co-conspirator 1 fled from the scene, but witnesses identified Lewis and Co-conspirator 1 and their roles in the killing of Johnson.
Lewis and the government have agreed that, if the Court accepts the plea agreement, Lewis will be sentenced to at least 20 years, but no more than 25 years, in federal prison. U.S. District Judge George L. Russell has scheduled sentencing for March 25, 2021, at 10:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew Della Betta and Michael Goldsticker, who are prosecuting the case.
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Attorney General William P. Barr and U.S. Attorney D. Michael Dunavant Announce Final Results of Operation LegendRead the Press Release
Memphis, TN – On December 23, 2020, Attorney General William P. Barr announced the results of Operation LeGend, which was first launched in Kansas City, Missouri, on July 8, 2020, and then expanded to Chicago and Albuquerque, New Mexico, on July 22, 2020; to Cleveland, Ohio, Detroit, Michigan, and Milwaukee, Wisconsin, on July 29, 2020; to St. Louis, Missouri, and Memphis, Tennessee, on August 6, 2020; and to Indianapolis, Indiana, on August 14, 2020.
"Operation Legend removed violent criminals, domestic abusers, carjackers and drug traffickers from nine cities which were experiencing stubbornly high crime and took illegal firearms, illegal narcotics and illicit monies off the streets. By most standards, many would consider these results as a resounding success—amid a global pandemic, the results are extraordinary. I commend our federal law enforcement and prosecutors for seamlessly executing this operation in partnership with state and local law enforcement," said Attorney General Barr. "When we launched Operation Legend, our goal was to disrupt and reduce violent crime, hold violent offenders accountable and give these communities the safety they deserve in memory of LeGend Taliferro, whose young life was claimed by violent crime, undoubtedly, we achieved it."
Since Operation LeGend’s launch on July 8, 2020, over 6,000 arrests – including approximately 467 for homicide – were made; more than 2600 firearms were seized; and more than 32 kilos of heroin, more than 17 kilos of fentanyl, more than 300 kilos of methamphetamine, more than 135 kilos of cocaine, and more than $11 million in drug and other illicit proceeds were seized.
Of the more than 6,000 individuals arrested, approximately 1,500 have been charged with federal offenses. Approximately 815 of those defendants have been charged with firearms offenses, while approximately 566 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses.
The Attorney General launched the operation as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. Operation LeGend is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
The Office of Community Oriented Policing Services (COPS Office) provided a total of $60 million to fund 290 officers as part of Operation LeGend and related efforts. Additionally, the Office of Justice Programs (OJP) awarded nearly $9 million in grant funding to support Operation LeGend.
Since the official launch of Operation LeGend here in Memphis on August 6, 2020, a total of 266 arrests were made, and 124 defendants were charged with federal offenses: 53 for drug crimes; 46 for gun crimes; and 24 for other violent crimes such as carjacking, business robbery, and using a firearm during a crime of violence. A total of 210 firearms were seized by federal agencies and federal task forces; $670,270 in criminal proceeds were seized; and a large quantity of illegal drugs were removed from our streets, as follows:
31,063 grams of methamphetamine
1,572 grams of cocaine
4,665 grams of fentanyl
5,021 grams of heroin
9,205 grams of marijuana
2,822 pills of various controlled substances, primarily opioids
The following local agencies in Memphis received federal grant funding from the Department of Justice in support of Operation Legend and related efforts:
City of Memphis Police Department – $9,823,624 (COPS Hiring Program funds, to hire 50 new officers)
Shelby County Sheriff’s Office - $1,628,571 (Operation Relentless Pursuit/Operation LeGend)
Shelby County District Attorney General’s Office - $398,864 (Project Guardian)
U.S. Attorney D. Michael Dunavant said, "These are outstanding national and local results that have undoubtedly saved lives. Although this marks the end of the formal DOJ Operation LeGend initiative, we will continue our targeted enforcement actions and coordination in the future with the federal agents permanently reassigned to Memphis, as well as our LeGend Task Force model. Despite rising violent crime rates in 2020, as a result of Operation LeGend, drug traffickers, trigger-pullers, gang members, and violent offenders are going to prison, law enforcement is energized, and the public is better protected. I am proud of our federal, state, and local law enforcement agencies in Memphis for their urgent and relentless efforts in this Operation, and I am grateful for their active participation and sustained partnerships during a most unusual and challenging time in our nation’s history."
Breakdown of Operation Legend charges in other cities:
Kansas City, MO.
• 196 defendants have been charged with federal crimes outlined below.
• 75 defendants have been charged with narcotics-related offenses;
• 107 defendants have been charged with firearms-related offenses; and
• 14 defendants have been charged with other violent crimes.
Chicago, Ill.
176 defendants have been charged with federal crimes outlined below.
• 40 defendants have been charged with narcotics-related offenses;
• 130 defendants have been charged with firearms-related offenses; and
• Six defendants have been charged with other violent crimes.
Albuquerque, NM.
167 defendants have been charged with federal crimes outlined below.
• 60 defendants have been charged with narcotics-related offenses;
• 85 defendants have been charged with firearms-related offenses; and
• 22 defendants have been charged with other violent crimes.
Cleveland, OH.
119 defendants have been charged with federal crimes outlined below.
• 60 defendants have been charged with narcotics-related offenses;
• 55 defendants have been charged with firearms-related offenses; and
• Four defendants have been charged with other violent crimes.
Detroit, MI.
100 defendants have been charged with federal offenses outlined below.
• 33 defendants have been charged with narcotics-related offenses;
• 64 defendants have been charged with firearms-related offenses; and
• Three defendants have been charged with other violent crimes.
Milwaukee, WI.
74 defendants have been charged with federal crimes outlined below.
• 34 defendants have been charged with firearm related offenses;
• 32 defendants have been charged with narcotic related offenses;
• Eight defendants have been charged with other violent crimes.
St. Louis, MO.
450 defendants have been charged with federal crimes outlined below.
• 193 defendants have been charged with narcotics-related offenses;
• 231 defendants have been charged with firearms-related offenses; and
• 26 defendants have been charged with other violent crimes.
Indianapolis, IN.
94 defendants have been charged with federal crimes outlined below.
• 18 defendants have been charged with narcotics-related offenses;
• 64 defendants have been charged with firearms-related offenses; and
• 12 defendants have been charged with other violent crimes.
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Monday 4 January 2021
Virginia Tax Preparer Sentenced to More Than Two Years in Prison for Preparing False ReturnsRead the Press Release
A Newport News, Virginia, tax return preparer was sentenced to 27 months in prison for preparing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia.
According to court documents and statements made in court, Angela Harper owned At Ease Tax Services, a tax preparation business that she operated in her home and hotel rooms in the Newport News area. Between 2014 and 2018, Harper prepared tax returns that claimed fraudulent credits and deductions in an effort to inflate her clients’ refunds. Harper did not sign the returns in order to make it appear that the returns were self-prepared by her clients. She also did not review the completed returns with her clients, nor did she provide copies of the returns even when the clients specifically requested them. In total, Harper filed over 400 false tax returns and caused a tax loss of over $700,000 to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Terwilliger commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Francine Davis and Assistant Chief Michael Boteler of the Tax Division, and Assistant U.S. Attorney Brian Samuels of the Eastern District of Virginia, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Upshur County man admits to methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Rodney Allen Rowan, of Buckhannon, West Virginia, has admitted to a methamphetamine charge, U.S. Attorney Bill Powell announced.
Rowan, 25, pled guilty to one count of “Possession with Intent to Distribute at Least 50 Grams of Methamphetamine.” Rowan admitted to having more than 50 grams of methamphetamine in November 2019 in Upshur County.
Rowan faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, West Virginia State Police, and the Upshur County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
United States Files Civil Fraud Suit Against Three Individuals and Multiple Real Estate Companies Alleging Mortgage Fraud SchemeRead the Press Release
The United States has filed a civil complaint in federal court in Brooklyn seeking damages and penalties against three individuals and multiple companies alleged to have engaged in a wide-ranging mortgage fraud scheme to defraud the government. The complaint, unsealed this afternoon by United States District Judge Margo K. Brodie, alleges that Iskyo Aronov, Ron Borovinsky, Michael Konstantinovskiy, and companies that they owned or controlled, engaged in fraudulent short sales of residential properties insured by the Federal Housing Administration (FHA) of the United States Department of Housing and Urban Development (HUD). The suit is brought pursuant to the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Christina Scaringi, Special Agent-in-Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Region (HUD-OIG), and Robert Manchak, Special Agent-in-Charge, Federal Housing Finance Agency, Office of Inspector General, Northeast Region (FHFA-OIG), announced the filing.
Pursuant to HUD’s Pre-Foreclosure Sale Program, qualifying homeowners with defaulted, FHA-insured mortgages may sell their properties in a “short sale” for less than the balance of the mortgage if the sale is for the fair market value of the property. If a homeowner obtains approval for a short sale, the lender releases the mortgage after the short sale and submits an FHA insurance claim to HUD to cover the outstanding mortgage balance net of the short sale proceeds, plus approved costs and interest. HUD, in turn, pays the lender’s claim from federal funds.
Aronov was the founder, Chief Executive Officer and President of defendants My Ideal Property Inc., My Ideal Property Group LLC and MIP Management Inc., and also controlled other affiliated corporate entities that he allegedly established to help him fraudulently acquire residential properties. Borovinsky identified himself as a co-founder with Aronov of My Ideal Property. Konstantinovskiy worked as an agent for My Ideal Property where he allegedly conspired with others to fraudulently obtain properties.
As alleged in the complaint, from at least 2013 through 2016, the defendants defrauded HUD by manipulating the short sale process to acquire residential properties from numerous distressed homeowners for below-fair market value prices in non-arm’s-length transactions. The individual defendants used various corporate entities in furtherance of the fraudulent scheme. In the process, defendants made a host of material misrepresentations in critical transaction documents. As a result, defendants not only acquired the properties for below-fair market value prices, but obtained broker fees in the transactions and induced lenders to release the FHA-insured mortgages at a loss. In turn, HUD paid the lenders’ claims for FHA insurance from federal funds. These payments by HUD were artificially inflated as a result of the defendants’ fraudulent conduct.
“As alleged, these defendants fraudulently obtained homes at depressed prices at the expense of a taxpayer-funded program designed to assist borrowers seeking the American Dream of home ownership,” stated Acting U.S. Attorney Seth DuCharme. “This Office is committed to protecting the integrity of the FHA insurance program from those who try to enrich themselves through predatory mortgage fraud schemes.”
“The defendants allegedly engaged in a scheme of wholesale deception when they provided false, misleading, and incomplete information to lending institutions, homeowners, and the Federal Housing Administration (FHA) causing millions of dollars in damages to the FHA, which typically results in higher premiums being charged to future first-time homeowners. In addition, the artificial devaluation of residential properties will slow the recovery of market values at a time of economic challenge when affordable housing is at a premium,” stated HUD-OIG Special Agent-in-Charge Scaringi.
“The Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) is committed to holding accountable those who waste, steal, or abuse the resources of the Government-Sponsored Enterprises regulated by FHFA. We are proud to have partnered with the U.S. Attorney’s Office for the Eastern District of New York in this case,” stated FHFA-OIG Special Agent-in-Charge Manchak.
The government’s complaint intervenes in a lawsuit originally brought by under the qui tam provisions of the FCA. Under the FCA, private citizens with knowledge of fraud against the government can bring a lawsuit on behalf of the United States and share in the recovery. The act also permits the government to intervene in such actions, as the government has done in this case. The government’s case is being handled by Assistant United States Attorney Michael J. Castiglione, with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell.
The Defendants:
ISKYO ARONOV (also known as “Isaac Aronov”)
Middle Village, New YorkRON BOROVINSKY
Hollis Hills, New YorkMICHAEL KONSTANTIOVSKI
Roslyn Heights, New York175 VERNON AVE. INC.
308 LINDE ST. LLC
725 MANAGEMENT LLC
1021 B HOLDINGS LLC
1083 LAFAYETTE AVE. LLC
1178 GATES AVE. INC.
2320 BAEUMONT AVE UNIT 3D LLC
1S8C HOLDINGS LLC
AG2 EQUITIES, INC.
ARBIE MANAGEMENT INC.
BEDSTUY GROUP LLC
BERT HOLDINGS LLC
BNE MANAGEMENT LLC
ETUY EQUITIES LLC
IA INVESTORS LLC
IJ DEVELOPMENT LLC
LL FUND INC.
LL ORGANIZATION INC.
MI 1 HOLDINGS LLC
MIP MANAGEMENT INC.
MY IDEAL PROPERTY GROUP LLC
MY IDEAL PROPERTY ROCKAWAY BLVD. LLC
NATIONAL HOMEOWNERS ASSISTANCE INC.
PHASE 2 DEVELOPMENT LLC
PIM EQUITIES INC.
SETTLE NY CORP
ZOR EQUITIES LLC
ZT EQUITIES LLC
E.D.N.Y. Docket No. 16-CV-4853 (MKB)
United States Attorney Nick Hanna to Leave Justice Department after Serving as Chief Federal Law Enforcement Officer in L.A. for 3 YearsRead the Press Release
LOS ANGELES – United States Attorney Nick Hanna announced today that he will resign his position as the chief federal prosecutor for the Central District of California. While serving as the top federal law enforcement officer in the Los Angeles-based district for the past three years, Mr. Hanna oversaw approximately 280 Assistant U.S. Attorneys who staff the largest Justice Department office outside of Washington D.C.
Mr. Hanna tendered his resignation to the President and the Acting Attorney General today, and he will conclude his service as United States Attorney on January 8.
“It has been the honor of a lifetime to serve the 20 million people in our district for the last three years,” Hanna said. “I have seen firsthand government at its best, with our talented lawyers and staff working side-by-side with our brave federal, state and local law enforcement partners in pursuit of justice. While we’ve had many significant accomplishments during my tenure, all of the credit for these successes belongs to these hardworking and dedicated professionals.
“The work we have done together has resonated throughout our district, across the nation and around the world. We have worked tirelessly to bring criminals to justice, provide recourse to people whose rights have been violated, and defend the United States and its citizens from adversaries both foreign and domestic. We’ve achieved this despite the challenges of the longest federal government shutdown in history, widespread social unrest, and a pandemic that has upended our lives. Over the past three years, our office has lived up to its proud legacy of pursuing justice without fear or favor, and I am profoundly humbled to have had the opportunity to lead one of the premier U.S. Attorney’s offices in the country.”
Under Mr. Hanna’s leadership, attorneys in the office have brought and litigated some of the most sophisticated and impactful cases in the nation, dozens of attorneys have been hired to bring the office to its maximum staffing level, and relationships with law enforcement partners have been strengthened.
Amid a string of important public corruption cases, federal prosecutors conducted an extensive investigation focusing on a pay-to-play scheme at Los Angeles City Hall, resulting in criminal charges against two former city councilmen, a former deputy mayor, and a billionaire real estate developer, among others.
Fraud prosecutors brought a multi-faceted case against attorney Michael Avenatti, and they worked with lawyers in the office’s Civil Division to negotiate a $3 billion settlement with Wells Fargo to resolve allegations that the bank engaged in fraudulent sales practices for more than a decade.
In response to the nation’s opioid crisis, the office helped stand up an Opioid Overdose Response Team, which targets narcotics traffickers who sell drugs that result in fatal overdoses. This program has resulted in approximately one dozen prosecutions, including the case against West Hollywood resident Ed Buck and those who allegedly provided the drugs that killed rapper Mac Miller.
To combat violent crime, the office brought charges against more than 300 gang members, including alleged narcotics traffickers, gun runners and MS-13 members accused of committing a series of grisly murders.
In the largest asset forfeiture in U.S. history, prosecutors seized more than $1 billion in assets related to the 1MBD Malaysian banking scandal. Prosecutors recently filed criminal charges against the captain of the Conception, a dive boat that burned and sank off the Santa Barbara coast in September 2019, killing 33 passengers and one crew member. And, an Orange County man is pending trial on charges of killing his ex-girlfriend when he allegedly planted a bomb that destroyed an Aliso Viejo day spa. The office also won a guilty verdict at trial against Ali Elmezayen, a Hawthorne man who drowned his two disabled children to fraudulently collect on insurance policies he had taken out on their lives.
On the national security front, under Mr. Hanna’s leadership, the office helped shut down one of the world’s largest dark web marketplaces, convicted at trial a Chinese researcher on economic espionage charges, and indicted a suspected domestic terrorist who allegedly plotted to bomb a political rally at a Long Beach park. Prosecutors also brought charges against a North Korean operative who allegedly committed one of the most sophisticated nation-state cybercrimes in history – the hacking of Sony Pictures Entertainment and other high-profile targets.
During Mr. Hanna’s tenure, the office hired nearly 100 new prosecutors, enhanced its technology and physical space, streamlined internal processes, and continued to invest significant time and effort to deepen relationships with our partners in federal, state and local law enforcement.
Prior to the pandemic’s grip tightening in March 2020, the office increased the number of criminal defendants charged by more than 41 percent compared with 2017 levels. Over the last three years, the office has recovered nearly $4.5 billion in criminal penalties, civil recoveries, forfeited assets, and restitution. Since 2018, the office has returned more than $148 million in restitution to crime victims.
Mr. Hanna was appointed interim United States Attorney in January 2018 by United States Attorney General Jeff Sessions. President Trump later nominated Mr. Hanna to be United States Attorney in February 2018, and he was confirmed by the Senate on April 26, 2018.
While serving as an Assistant United States Attorney in Los Angeles from 1990 to 1994, Mr. Hanna prosecuted major drug trafficking and money laundering organizations, as well as violent and economic crimes. From 1995 to 1998, Mr. Hanna served as an Assistant United States Attorney in San Diego, where he focused on investigating and prosecuting international drug cartels. For almost 20 years, until his appointment as United States Attorney, Mr. Hanna was a partner at the law firm of Gibson, Dunn & Crutcher LLP. Mr. Hanna received his B.A. from the University of California, San Diego, and his J.D., magna cum laude, from Georgetown University.
Once Mr. Hanna’s resignation becomes effective, First Assistant United States Attorney Tracy L. Wilkison will serve as Acting United States Attorney.
The Central District of California is comprised of the counties of Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo. Approximately 20 million people live in the district, making it by far the largest federal district in the nation.
United States Attorney J. Douglas Overbey Announces Management and Supervisory Staff ChangesRead the Press Release
KNOXVILLE, Tenn. – J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee, today announced changes in some of the management and supervisory personnel for the district.
Francis M. (Trey) Hamilton III has been chosen to serve as the First Assistant U.S. Attorney for the district. Hamilton, a native of Nashville, Tenn., joined the office in 2002, as an Assistant U.S. Attorney. He had previously served as a Deputy Chief and Senior Litigation Counsel in the Criminal Division. Over his career, Hamilton has overseen and tried numerous complex prosecutions ranging from corporate fraud to civil rights deprivation. Most recently, Hamilton was awarded the Attorney General’s Claudia J. Flynn Award for Professional Responsibility. Prior to joining the U.S. Attorney’s Office, Hamilton worked for two prominent national law firms where he engaged in complex civil litigation, and before that, he served as law clerk to the Honorable Jerome Turner, United States District Judge for the Western District of Tennessee. Hamilton received his law degree from Washington & Lee University School of Law, where he graduated summa cum laude, was inducted into the Order of the Coif, and served on the Washington & Lee Law Review. He earned his undergraduate degree from Rhodes College, where he graduated magna cum laude and was inducted into Phi Beta Kappa.
Caryn L. Hebets has been chosen to serve as Chief of the Criminal Division. Hebets, a native of Dearborn, Mich., joined the office as an Assistant U.S. Attorney in October 2005. She most recently served as a Deputy Chief of the Criminal Division and as the lead Organized Crime and Drug Enforcement Task Force (OCDETF) attorney for the district. Prior to joining the U.S. Attorney’s Office, Hebets was an Assistant Prosecuting Attorney for Berrien County, Mich., in addition to, working with the FBI. She received her law degree from Wayne State University and her undergraduate degree from the University of Michigan. She is a member of the Michigan bar.
Matthew T. Morris has been chosen to serve as Deputy Criminal Chief for the Knoxville office’s white collar and general crimes unit. He joined the U.S. Attorney’s Office in 1996. Since then, Morris has focused on prosecuting white-collar and child exploitation offenses, including environmental crime, fraud, public corruption, and child pornography. He has served as the U.S. Attorney’s Office’s Senior Litigation Counsel since 2018. Morris has previously headed up the office’s Project Safe Childhood, Environmental Crime, Asset Forfeiture, and Affirmative Civil Enforcement programs. Prior to joining the office, he was an Assistant Regional Counsel for the U.S. Environmental Protection Agency in Atlanta, GA, for five years. Morris earned his law degree in 1990, from the University of Oregon School of Law and his undergraduate degree from Kent State University in 1986.
Tracy Stone has been chosen to serve as Deputy Criminal Chief for the Knoxville office’s violent crimes and drug trafficking unit. Since joining the office in January 2006, Stone had prosecuted violent crimes, firearms offenses, and large-scale drug cases. For most of his tenure with the office, Stone has been assigned to the Organized Crime and Drug Enforcement Task Force (OCDETF). Established in 1982, to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations, the OCDETF program continues to be the centerpiece of the Department of Justice’s drug supply reduction strategy. Since 2010, Stone has dedicated significant time to battling the opioid epidemic, which hit the Eastern District of Tennessee particularly hard. Stone has successfully prosecuted hundreds of cases, including many successful jury trials. One of his more high-profile trials includes Eric Boyd’s federal trial for his role in the carjacking and murders of Channon Christian and Chris Newsom. Another is the recent four-month trial of Sylvia Hofstetter and three medical providers for their roles in operating illegal pill mills in Tennessee and Florida. Immediately prior to joining the United States Attorney’s Office, Stone prosecuted a variety of criminal cases, including several homicides, as an Assistant District Attorney in Tennessee’s Fourth Judicial District (Sevier, Cocke, Jefferson, and Grainger Counties). Previously, Stone was in private practice with the Chattanooga firm of Chambliss, Bahner & Stophel. Stone holds a Bachelors in Agricultural Economics from The University of Tennessee and is a 1999 Cum Laude graduate of the University of Tennessee College of Law.
David P. Lewen, Jr. has been chosen to serve as Senior Litigation Counsel. Lewen joined the U.S. Attorney’s Office in December 2007. Since then, Lewen has prosecuted a broad spectrum of complex cases, including large-scale drug trafficking and money laundering crimes, multi-million-dollar corporate fraud offenses, public corruption, and violent crimes, including bank robbery, extortion, kidnapping, and carjacking. In 2019, Lewen served a one-year international detail with the U.S. State Department to Timor-Leste, the youngest democratic nation in the Indo-Pacific, where he served as the U.S. Embassy’s Resident Legal Advisor, providing rule-of-law training and case-based mentorship to Timorese judges, prosecutors, and police. Prior to joining the U.S. Attorney’s Office in 2007, Lewen served for five years on active duty in the U.S. Army Judge Advocate General’s Corps, which included service in Korea, Hawaii, and Fort Bragg, N.C. Lewen received his law degree in 2002, from the Georgia State University College of Law, and in 1999, received his undergraduate degree in political science from Norwich University in Vermont, where he was the class valedictorian, a Distinguished Military Graduate, and a Rhodes Scholarship nominee.
Chris Poole has been chosen to serve as the Chattanooga Division Branch Chief. Poole joined the office in 2002, and, for the past 18 years, has focused on prosecuting violent crime. To that end, Poole presently serves as the office’s Project Safe Neighborhoods Coordinator and Anti-Gang Coordinator. Prior to his employment with the U.S. Attorney’s Office, Chris spent four years as an Assistant District Attorney in Hamilton County, Tenn., where he was a Criminal Court Division Supervisor. He received his undergraduate degree from Wake Forest University and his law degree from Georgia State University.
The Greeneville branch office continues to be supervised by Branch Chief Donald Wayne Taylor. Before joining the office as an Assistant U.S. Attorney in 2007, Taylor served as the Chief Assistant Commonwealth’s Attorney in Floyd County, Ky. He also has experience as an associate in a private law firm. He received a law degree from Widener University School of Law in Wilmington, Del., after receiving an undergraduate degree from Penn State University.
In the Civil Division’s Office, Loretta Harber remains Chief of the Civil Division. Harber, a native of Brooklyn, N.Y., and raised in Lexington, Ky, began in the office as an Assistant U.S. Attorney in 1987. She received her undergraduate and law degrees from the University of Tennessee. And, Robert C. McConkey, III continues to serve as Deputy Chief of the Civil Division. McConkey has been an Assistant U.S. Attorney with the office since 2010. Prior to joining the U.S. Attorney’s Office, he worked as an associate in private practice handling commercial and general civil litigation and served as a Deputy Law Director for Knox County, Tenn. He received his law degree from the Cumberland School of Law at Samford University after receiving an undergraduate degree from East Tennessee State University.
The U.S. Attorney’s Office for the Eastern District of Tennessee represents the interests of the United States in federal court in both civil and criminal matters. The eastern district is the largest federal district in Tennessee, with a population of more than 2.6 million, encompassing 41 of the state’s 95 counties, and spanning 420 miles. In addition to the headquarters office in Knoxville, there are branch offices in Chattanooga and Greeneville. U.S. Attorney Overbey, who was sworn in as the presidentially appointed, senate confirmed U.S. Attorney in November 2017, serves as the top-ranking federal law enforcement official in the district.
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U.S. Attorney’s Office for the Eastern District of Washington Collects Substantial Sum of $61,950,459 for Victims of Crime and for the U.S. Taxpayers in Fiscal Year 2020Read the Press Release
Spokane, Washington – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced today that his office collected the sum of $61,950,459 in Fiscal Year (FY) 2020. Of this amount, $2,603,880 constituted restitution collected in criminal actions on behalf of victims of crime, and $59,346,578 was collected in civil actions.
U.S. Attorney Hyslop stated, “This is a substantial sum of which we are immensely proud. It is great news for the residents of this District and this Country. It is an equally great testament to the diligent work of the attorneys and staff of United States Attorney’s Office for the Eastern District of Washington who have achieved this.”
Hyslop continued, “This sum represents two types of funds. First, when a person is sentenced by the Court for a crime, we ask the Court to also order the convicted felon to pay restitution to those hurt physically or financially by the crime. We do all we can to protect the rights of crime victims and to collect these funds in order to ensure that they are financially restored, if possible. As a result of our added emphasis, we have successfully collected more restitution year after year since 2017 leading to a nearly 100% increase in just four years. The second part represents collections where civil fraud is punished, and civil financial obligations are satisfied.”
Examples of a few successful criminal and civil collections by the Eastern District of Washington in FY 2020 include:
• $57.5 million paid by Bechtel National Inc., a Department of Energy contractor at the Hanford nuclear site, in settlement of civil fraud claims;
• Full recovery of restitution to crime victims in multiple Project Safe Childhood (child exploitation and child pornography) cases, such as United States v. Dale Black in the amount of $400,000 and United States v. Jeffrey Jon Franklin in the amount of $11,000;
• Recovery of more than $930,000 in criminal restitution for the Internal Revenue Service and the Social Security Administration related to criminal tax and theft of government funds cases; and
• $1.1 million recovered for the United States Forest Service and Department of Interior as result of an affirmative civil enforcement case arising out of the August 19, 2015 Twisp River Fire in Okanogan County.
Nationally, the United States Justice Department (DOJ) collected more than $15.9 billion in civil and criminal actions in FY 2020 ending Sept. 30, 2020. The nearly $16 billion recovered in FY 2020 represents more than five times the approximately $3.2 billion appropriated budget for the DOJ’s 94 U.S. Attorneys’ offices and its main litigating divisions during that same period. The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $13.5 billion in payments made directly to the Justice Department and more than $2.4 billion in indirect payments made to other federal agencies, states and other designated recipients.
The U.S. Attorneys’ Offices, along with the DOJ’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
U.S. Attorney Pak submits resignationRead the Press Release
ATLANTA - U.S. Attorney Byung J. “BJay” Pak has announced his resignation effective January 4, 2021. Pak is departing the office after serving for more than three years as the chief federal law enforcement officer for the Northern District of Georgia, which consists of 46 counties in Northwestern Georgia and which has offices in Atlanta, Rome, Gainesville, and Newnan. He was nominated as U.S. Attorney by President Donald Trump in July 017, confirmed by the United States Senate on September 28, 2017, and sworn in as the District’s 25th Presidentially appointed U.S. Attorney on October 10, 2017.
“It has been the greatest honor of my professional career to have been able to serve my fellow citizens as the U.S. Attorney for the Northern District of Georgia. I have done my best to be thoughtful and consistent, and to provide justice for my fellow citizens in a fair, effective and efficient manner. I am grateful to President Trump and the United States Senate for the opportunity to serve, and to former Attorneys General Sessions and Barr for their leadership of the Department,” said U.S. Attorney Byung J. “BJay” Pak.
Pak was born in Seoul, South Korea, and immigrated to the United States when he was nine years old. He resides with his family in Gwinnett County, Georgia. Pak worked in private practice until he began his government service as an Assistant U.S. Attorney in the Northern District of Georgia in 2002. He felt called to public service in the wake of the September 11th terrorist attacks on the United States, and he served for six years, prosecuting a wide variety of cases, including drug trafficking, money laundering, intellectual property, and white-collar crimes.
Additionally, Pak served as a State Representative in the Georgia House of Representatives from 2011 to 2017.
“As I look back at my almost a decade serving the Department of Justice (and this office in particular), the most memorable and fulfilling moments involve working very closely with our law enforcement partners in keeping our communities safe. I take with me fond memories and the utmost respect I have for every one of the men and women who wear the badge. They are truly everyday heroes. My hope is that my tenure in the office will be remembered for our efforts to serve and to support those brave agents and officers. I have witnessed first-hand the fortitude and grace of victims of crime and have taken to heart the awesome responsibility of speaking for those who cannot speak for themselves,” said Pak.
During his time as U.S. Attorney, Pak served on several national committees. He served as Chair of the Attorney General’s Advisory Committee’s Subcommittee on Civil Rights; Vice Chair of the Committee on Management, People, and Performance; and as a member of the Domestic Violence and White-Collar Fraud Working Groups. Pak also served on the Commission on Law Enforcement and the Administration of Justice Technology Working Group, and on the Committee that developed the standards for a National Decertification Index - a database to track excessive use of force incidents by police officers.
The U.S. Attorney’s Office for the Northern District of Georgia consists of three Divisions: Criminal, Civil, and Administrative. The accomplishments of each Division during Pak’s tenure are many and varied.
Criminal
Foremost among the office’s accomplishments during Pak’s tenure has been the commitment to working together and improving relationships with federal, state and local law enforcement partners in an effort to reduce violent crime in targeted areas throughout the District. As part of the Department of Justice priority programs Project Safe Neighborhoods and Project Guardian, the office has worked hand in hand with District Attorneys, federal, state and local law enforcement, and community partners to address gun violence. Working with an outstanding research partner, our efforts have been data-driven and evaluated for effectiveness. Our endeavors have been successful as reflected by recent statistics showing significant reductions in gun violence throughout the District. Our Innovative Prevention and Reentry Initiative involves the Credible Messenger Program, where the Department partners with rehabilitated ex-offenders who serves as trained mentors to those violent offenders reentering society from incarceration. Early data shows the program is highly effective in reducing recidivism.
In addition, the office pursued and successfully prosecuted numerous priority cases in the areas of public corruption, drug trafficking, drug delivery resulting in death, drug distribution and illegal prescribing by medical professionals, cybercrime, fraud, insider trading, sex trafficking and exploitation of minors, environmental crimes and illegal immigration. During Pak’s service as U.S. Attorney, the office increased the number of criminal cases prosecuted by over 30% versus FY17, with an emphasis on taking cases that should be handled on the federal level to best serve the victims of crime, regardless of the amount of financial loss or quantity of drugs.
Civil
The office’s Civil Division has wide areas of responsibility, from defending federal agencies and employees in civil matters to immigration, discrimination matters, prisoner litigation, and civil rights. The Affirmative Civil Enforcement has been highly successful, bringing cases and negotiating the return of millions of taxpayer dollars that individuals and businesses had obtained by fraudulent means. The Defensive Section handled a significant number of cases, including a large number of lawsuits related to immigration matters. The Civil Division continues to focus upon important polling place access discrimination cases throughout the District with the goal of ensuring that every eligible citizen will be able to cast a vote regardless of any disability. The office continued its long practice of protecting the civil rights of all citizens regardless of their nationality, gender, or disability.
Administrative
With the dual factors of the current pandemic and the longest government shutdown in United States history, the office’s Administrative Division has been exceedingly productive during the past three years. The Division handled a vast array of COVID-related issues, including sanitation of workspaces, acquisition of safety equipment, telework policies and procedures, and employee assistance.
In addition to these Divisions, the office has implemented a robust outreach effort, with emphasis on the law enforcement and intelligence communities, prison reentry initiatives, and the media. Pak also made efforts to reach out to the citizens of the Northern District of Georgia directly, with many television, radio, and public appearances, to keep the public informed of what the Office of the U.S. Attorney does.
"For the past three years, I have had the great fortune to work with the highly skilled attorneys and staff in the Northern District of Georgia,” Pak said. “This office is blessed with experienced leaders, and fearless colleagues who truly understand the importance of working together for the benefit of their fellow citizens and for justice. Likewise, the staff that supports the attorneys in the office – administrative personnel, legal assistants, paralegals and investigators, those responsible for outreach to law enforcement, victims, community partners, the media, and to those assigned to security and intelligence – are some of the most dedicated people I have seen. Their roles in fulfilling the mission of the office of pursuing justice cannot be underestimated. I have strived to serve these employees of the U.S. Attorney’s Office as their leader during these past three years, the last of which was one of the most trying the office has ever endured. I have greatly enjoyed working with each and every one of them. Throughout the past three years, I have endeavored to serve them and to tell the story of the great accomplishments of the office. While the public words are mine, the accomplishments belong to them.”
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney Craig Carpenito Announces Distinguished Alumnus Award for Cooper Health CEO Kevin M. O’DowdRead the Press Release
NEWARK, N.J. – Kevin M. O’Dowd, the co-President/CEO of Cooper University Health Care, received the first ever Distinguished Alumnus Award from the U.S. Attorney’s Office for the District of New Jersey for his exceptional leadership during the COVID-19 pandemic, U.S. Attorney Craig Carpenito announced.
“The COVID-19 pandemic is the greatest public health crisis this state has ever encountered,” U.S. Attorney Carpenito said. “In times of crisis, we need great leaders, and Kevin O’Dowd is precisely the kind of leader New Jersey needs right now. I was blessed to work directly with Kevin at the U.S. Attorney’s Office and watch his impressive career. Because he is now standing out as a leader in the state’s response to COVID-19, I can think of no one more deserving for our first ever Distinguished Alumnus Award.”
In March 2020, Gov. Phil Murphy appointed Mr. O’Dowd to serve as the State’s Southern Regional Coordinator for COVID-19 response. In this capacity, he serves as the New Jersey Department of Health’s lead hospital contact in connection with COVID-19 response efforts in seven counties. Mr. O’Dowd has been charged with identifying and coordinating regional bed capacity, developing strategies for allocating patients based upon critical care bed availability, developing surge plans for transporting patients as needed, setting up COVID-19 testing sites, supporting regional Field Medical Sites and collecting and communicating real-time data to the Department of Health on critical information about new cases, changes in medical models of care, bed capacity, resources, and supply of PPE. To date, the hospitals in the southern region have treated more than 40,000 COVID-positive patients. As 2021 begins, Mr. O’Dowd is also assisting the Department of Health in performing the critical mission of coordinating a vaccination plan in order to bring the virus under control.
Before joining Cooper, Mr. O’Dowd served in the Cabinet of Gov. Chris Christie, including as Chief of Staff from 2012 to 2014. Prior to joining the Christie Administration in 2010 as counsel to the Governor, he served as the Chief of the Securities and Health Care Fraud Unit in the Criminal Division of the U.S. Attorney’s Office. During his seven-year tenure, Mr. O’Dowd investigated and prosecuted cases ranging from computer hacking and intellectual property theft to complex health care, securities, and financial fraud. He was also the Chair of the office’s Health Care Task Force. Mr. O’Dowd was twice awarded the Integrity Award from the U.S. Department of Health and Human Services and the Award for Excellence from the U.S. President’s Council on Integrity and Efficiency. In 2012, Seton Hall University School of Law presented Mr. O’Dowd with the St. Thomas More Medal for his distinguished public service.
The United States and Tennessee Resolve Claims with Three Providers for False Claims Act Liability Relating to "P-Stim" Devices for A Total of $1.72 MillionRead the Press Release
NASHVILLE, Tenn. – January 4, 2021 – Don Cochran, U.S. Attorney for the Middle District of Tennessee, and Herbert Slatery III, Attorney General for the State of Tennessee, announced today that James P. Anderson, M.D. (“Dr. Anderson”), as owner of Affiliated Neurologists, PLC; Charles F. Spencer, D.C., as owner of Total Family Physicians Center PLLC d/b/a Total Family Health & Wellness (“Total Family”); and Mitchell P. Shea, D.C., as owner of Chiro2Med of Tennessee P.C. (“Chiro2Med”), agreed to pay the United States and Tennessee a total of $1.72 million to resolve liability under the False Claims Act for the alleged improper billing for electro-acupuncture using a peri-auricular stimulation device known as “P-Stim” that does not qualify for reimbursement under Medicare or TennCare.
P-Stim is an electro-acupuncture device that, pursuant to manufacturer’s instructions, is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the device then provides intermittent stimulation by electrical pulses. It is a single-use, battery-powered device designed to be worn for approximately four days until its battery runs out, at which time the device is thrown away. Medicare and TennCare do not reimburse for such acupuncture devices, nor do Medicare and TennCare reimburse for P-Stim as a neurostimulator or as implantation of neurostimulator electrodes. Other brand names for this device include Stivax, NeuroStim, ANSiStim, E-Pulse, and NSS-2 Bridge.
From May 2016 through November 2018, Dr. Anderson, Total Family, and Chiro2Med billed for, and were reimbursed by the United States for acupuncture using P-Stim devices under HCPCS Code L8679, which instead requires implantation of a neurostimulator with anesthesia in a surgical setting by a physician, typically a surgeon. Dr. Anderson, Total Family, and Chiro2Med separately billed for, and were reimbursed by, Medicare and/or TennCare for these devices over a two year period.
On June 10, 2020, Tennessee brought suit in the Chancery Court of Davidson County against Dr. Anderson under the Tennessee Medicaid False Claims Act for the false claims he submitted to TennCare. Under the terms of the settlement, Dr. Anderson agreed to pay $1 million to the United States and Tennessee over five years. Dr. Anderson also agreed to enter into an Integrity Agreement with the Office of Inspector General of the U.S. Department of Health and Human Services that will require regular monitoring of its billing practices for a period of three years.
Dr. Spencer and Total Family agreed to pay the United States $700,000 over five years.
Dr. Shea and Chiro2Med agreed to pay the United States $20,000 over five years.
“These settlements are part of a nationwide effort to hold accountable those providers who were paid improperly for non-reimbursable acupuncture under the guise of a surgically implanted neurostimulator,” said U.S. Attorney Cochran. “Working closely with our partners at CMS’s Center for Program Integrity, the Department of Health and Human Services Office of the Inspector General, our sister U.S. Attorney’s Offices, and the Tennessee Attorney General’s Office, we were able to identify those who profited from the submission of these false claims and negotiate resolutions that resulted in a significant recovery of taxpayer dollars.”
“This Office will not tolerate medical device fraud in Tennessee, whether it is the P-Stim as in these cases, or any type of fraud,” said General Slatery.
“Every dollar saved is critical to the sustainability of our Medicare program and the needs of our beneficiaries,” said Centers for Medicare and Medicaid Services Administrator Seema Verma. “We thank our partners at the Department of Justice and Department of Health and Human Services Office of Inspector General for working hard with us to identify, investigate, and eliminate waste, fraud and abuse in our federal health care programs.”
“These providers disregarded Medicare and Medicaid rules to bill acupuncture services as P-Stim devices in order to pad their bottom line,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Our agency, working closely with our law enforcement partners, will continue to protect patients and the federal health care programs that serve them.”
These cases were handled by the United States Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office, Medicaid Fraud and Integrity Division, with assistance from the Tennessee Bureau of Investigation Medicaid Fraud Control Unit and the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Kara F. Sweet represented the United States. Deputy Attorney General Tony Hullender represented Tennessee.
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Teacher Who Used Kik to Solicit, Receive and Distribute Child Pornography Sentenced to 70 Months in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DYLAN KOERNER, 29, of New Britain, formerly of West Hartford, was sentenced today by U.S. District Judge Janet Bond Arterton to 70 months of imprisonment, followed by three years of supervised release for soliciting, receiving and distributing child pornography.
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, between July 2019 and October 2019, Koerner used a false identity and posed as a teenager on Kik, an internet mobile application, to solicit nude photographs from Kik users who were minor females as young as 12 years old. He then traded those images with other Kik users to receive more images of child pornography.
On October 29, 2019, HSI agents executed a search warrant of Koerner’s residence and seized his cell phone, laptop and external hard drive. Analysis of the seized devices revealed approximately 121 unique images, nine unique videos depicting child pornography, and numerous images and video depicting child erotica.
After earning his teaching certification in 2018, Koerner worked as an elementary school music teacher in Hartford, and as a substitute teacher at various elementary, middle and high schools in Connecticut.
On September 21, 2020, Koerner pleaded guilty to one count of distribution of child pornography.
Koerner, who is released on a $100,000 bond, is required to report to prison on May 4, 2021
This investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Tampa Man Charged with Possession of Credit Card Manufacturing Equipment and Producing Counterfeit Credit CardsRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Eugene Stephan Cole (30, Tampa) with possession of credit card manufacturing equipment and producing counterfeit credit cards. If convicted on both counts, Cole faces a maximum penalty of 25 years in federal prison and payment of restitution to the victims that he defrauded. The indictment also notifies Cole that the United States intends to forfeit various items of equipment and computer media used by Cole to produce counterfeit credit cards. Cole was arraigned in federal court earlier today in Jacksonville. His trial is set for March 1, 2021.
According to the indictment, on March 4, 2020, Cole possessed items related to his manufacturing of counterfeit credit cards, including a credit card encoder/recoder, a card embosser, an Apple iPad, and multiple Apple iPhones.
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 United States Secret Service (Jacksonville Field Office) and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
South Texas siblings plead guilty for their roles in marijuana smuggling ventureRead the Press Release
LAREDO, Texas – Two South Texas men have admitted they organized the smuggling of approximately 170 kilograms of marijuana from El Cenizo to Laredo, announced U.S. Attorney Ryan K. Patrick.
Roberto Chavarria, 38, pleaded guilty today, while his brother - Daniel Chavarria, 35, entered his plea Dec. 1, 2020. The El Cenizo men admitted to conspiring to possess with intent to distribute marijuana.
On May 25, 2017, both helped load large bundles of marijuana into the back of a black pickup truck at Roberto Chavarria’s residence in El Cenizo. The drugs had been previously gathered from the banks of the Rio Grande River. Daniel Chavarria then attempted to escort the drug-laden truck to a stash house in Laredo.
After conducting surveillance, law enforcement attempted to stop the pickup truck for a traffic violation while in route. However, the driver led authorities on a chase and quickly fled the scene.
Authorities found the abandoned vehicle shortly thereafter in the middle of the road with the lights on and still running. They conducted a search and removed five large bundles of marijuana weighing 169.5 kilograms with an estimated street value of $299,200.
Law enforcement were eventually able to identify and locate the brothers and took them into custody.
U.S. District Judge Diana Saldana will impose sentencing at a date still to be determined. At that time, both men face a minimum of five years in federal prison and a possible $5 million maximum fine.
The Drug Enforcement Administration conducted the investigation with assistance of the Webb County Sheriff’s Office. Assistant U.S. Attorney Michael Makens is prosecuting the case.
Ready-Mix Concrete Company Admits to Fixing Prices and Rigging Bids in Violation of Antitrust LawsRead the Press Release
Argos USA LLC, a producer and seller of ready-mix concrete headquartered in Alpharetta, Georgia, was charged with participating in a conspiracy to fix prices, rig bids, and allocate markets for sales of ready-mix concrete in the Southern District of Georgia and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed today in the U.S. District Court in Savannah, employees of Argos and other ready-mix concrete companies carried out the charged conspiracy by coordinating the issuance of price-increase letters to customers, allocating specific ready-mix concrete jobs in the coastal Georgia area, charging fuel surcharges and environmental fees, and submitting bids to customers at collusive and noncompetitive prices. The charged conspiracy began as early as 2010 and continued until about July 2016.
The Antitrust Division also announced a deferred prosecution agreement (DPA) resolving the charge against Argos, under which the company agreed to pay a $20 million criminal penalty, admitted to participating in the charged conspiracy, and agreed to cooperate fully with the Antitrust Division’s ongoing criminal investigation and prosecution of others involved in this conspiracy. Under the DPA, Argos has also agreed to maintain a compliance and ethics program designed to prevent and detect antitrust violations and that meets certain elements specified in the DPA, and to conduct periodic reviews and submit annual reports to the division regarding the remediation and implementation of its compliance program. As part of the agreement, the parties will file a joint motion, which is subject to approval by the court, to defer for the term of the DPA any prosecution and trial of the charge filed against Argos.
“This resolution reflects the division’s dedication to holding accountable those who cheat American consumers out of competitively priced critical commercial products,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Price fixing, market allocation, and bid rigging are not only unethical, but illegal. The division, along with its law enforcement partners, remains focused on prosecuting those responsible for this type of conduct.”
“There is no room in the Southern District of Georgia for companies attempting to inflate their profits by illegally colluding with would-be competitors at the expense of consumers,” said U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “This agreement cements our dedication to eliminating such anti-competitive practices.”
“Activities related to collusion, bid rigging, and market allocation do not promote an environment conducive to open competition, which harms the consumer,” said Director Steven Stuller of the U.S. Postal Service Office of Inspector General. “The U.S. Postal Service spends hundreds of millions of dollars on new construction, maintenance, and renovation of U.S. Postal Service facilities. Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”
“This announcement is yet another example of the FBI and our partners’ dedication to ensure a fair market for consumers,” said Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office. “The U.S. system of open and free markets for all consumers is built on trust and integrity. When a company such as Argos admits to a conspiracy to rig bids and fix prices at the expense of consumers, the integrity of the system is compromised. The FBI will doggedly pursue and investigate all allegations of corruption, by individuals and companies, that hinder consumers’ rights.”
Ready-mix concrete is a product comprised of ingredients including cement, aggregate (sand and gravel), water, and, at times, other additives. It is made on demand and, if necessary, delivered to work sites by concrete mixer trucks. Ready-mix concrete is purchased by do-it-yourself and commercial customers, as well as local, state, and federal governments, for use in various construction projects, including, but not limited to, sidewalks, driveways, bridges, tunnels, and roads.
Argos is the second company charged in this matter. An indictment was returned in September 2020 in the U.S. District Court in Savannah charging Evans Concrete LLC; John David Melton; Timothy Tommy Strickland; and former Argos employees James Clayton Pedrick and Gregory Hall Melton with participating in the same conspiracy. Pedrick was also charged with making false statements, and Strickland was charged with making false statements and perjury. Evans Concrete and the individuals are all awaiting trial.
In the DPA, Argos admitted to participating in the charged conspiracy from October 2011, when it acquired the assets of a ready-mix concrete supplier in the Southern District of Georgia and began employing Gregory Melton and James Pedrick, until July 2016. Gregory Melton was the division manager of ready-mix concrete sales for Argos’ local sales office in Pooler, Georgia. Pedrick was a cement salesperson, selling cement to ready-mix concrete suppliers.
Argos is charged with a violation of the Sherman Act, which carries a maximum penalty of a $100 million fine for corporations. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.
The charge is the result of an ongoing investigation conducted by the Antitrust Division, the U.S. Postal Service Office of Inspector General, and the FBI’s Washington Field Office, with the assistance of the U.S. Attorney’s Office for the Southern District of Georgia and the U.S. Department of Transportation Office of Inspector General. Anyone with information on market allocation, price fixing, bid rigging, or other anticompetitive conduct in the ready-mix concrete industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Parsonsfield Man Sentenced for Trafficking FentanylRead the Press Release
PORTLAND, Maine: A Parsonsfield man was sentenced today in federal court for distributing fentanyl and possessing it with intent to distribute, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Kenneth Billings, 54, to 60 months imprisonment and four years of supervised release. Billings pleaded guilty on October 17, 2019.
According to court records, a confidential informant purchased fentanyl from Billings in Sebago on two occasions in January 2019. MDEA agents obtained a state arrest warrant for Billings and arrested him in February 2019, outside a Scarborough hotel where he had been staying. Agents searched him and recovered multiple packages containing over 40 grams of fentanyl, which he intended to distribute.
The FBI and the MDEA investigated the case. The U.S. Attorney’s Office prosecuted the case as part of the Department of Justice’s Operation Synthetic Opioid Surge, a program designed to reduce the supply of deadly synthetic opioids.
Nebraska Fugitive of 35 Years and His Spouse Indicted on Federal Fraud ChargesRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Howard D. Farley, Jr. (72, Weirsdale) and Duc Hanh Thi Vu (56, Weirsdale) with passport fraud. Farley was also charged with aggravated identity theft, Social Security fraud, possession of a firearm and ammunition by a convicted felon, and operating as a pilot without a legitimate airman’s certificate. Vu was additionally charged with false statements to a federal agency and employing a pilot without a legitimate airman’s certificate. The indictment also includes a forfeiture allegation to seize the couple’s aircraft.
If convicted, Farley faces a maximum penalty of 30 years in federal prison. Vu faces a maximum penalty of 18 years in federal prison.
Farley was previously arrested on December 2, 2020, as “John Doe,” after federal agents obtained an arrest warrant for passport fraud. Once Farley was fingerprinted, agents confirmed that he had been using the identity of a deceased person for more than 35 years to avoid apprehension in the District of Nebraska where, in 1985, he had been indicted as part of a drug distribution conspiracy. Those charges were dismissed in 2014.
According to the indictment and other court records, in or around February 2020, Farley and Vu, acting together, submitted a passport application using the name and date of birth of an infant who had died in 1955. Farley and Vu failed to disclose Farley’s true identity in the application. They also included a Social Security number for the victim, which Farley had obtained by fraudulent means in 1982.
At the time of his arrest on December 2, 2020, authorities executed a search warrant at the couple’s residence, in which agents recovered a firearm and ammunition inside Farley’s nightstand. Farley was convicted in 1970 of a felony in Nebraska and is prohibited from possessing a firearm or ammunition under federal law. While agents were at the residence, Vu allegedly made false statements regarding the true identity of Farley.
The Department of Homeland Security also seized an aircraft located at the residence. While the aircraft was registered to Vu, Farley was the only pilot who operated it. The indictment charges Farley with operating as a pilot without a legitimate airman’s certificate. It further charges Vu with employing Farley as a pilot without a legitimate airman’s certificate. Farley did not have a legitimate airman’s certificate because he falsified his identity to the Federal Aviation Administration. He also failed to disclose his felony conviction from Nebraska and his status as a fugitive from justice. If convicted of these offenses, the aircraft would be subject to forfeiture by the United States.
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 is being investigated by the U.S. Department of State’s Diplomatic Security Service (DSS), the Department of Transportation – Office of Inspector General, the Social Security Administration – Office of the Inspector General, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation,with support from the Marion County Sheriff’s Office and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta.
Mexican National Sentenced to More than 11 Years in Federal Prison for Methamphetamine and Immigration OffensesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Joel Gonzalez-Gomez, 31, of Chipas, Mexico, was sentenced to 135 months in federal prison for conspiracy to distribute more than 50 grams of methamphetamine and illegal reentry of a removed alien.
“Five prior removals. More than a kilo of meth. 12 grams of fentanyl. 28 grams of cocaine. 3 guns,” said United States Attorney Mike Stuart. “Gonzalez-Gomez had come into our country illegally and continued to break our laws by peddling poison. He will now have more than 11 years in federal prison to think about the error of his ways.”
In July 2019, drug task force investigators began purchasing methamphetamine from individuals associated with Gonzalez-Gomez at various locations in Kanawha County. The investigation culminated in the execution of a search warrant at the residence of Gonzalez-Gomez on Church Drive in Charleston on November 20, 2019. Investigators seized more than a kilogram of methamphetamine, 12 grams of fentanyl, 28 grams of cocaine, and three firearms. Gonzalez-Gomez was arrested the same day at a residence in Cottageville, Jackson County. He had previously been deported on November 6, 2013, October 28, 2015, December 15, 2015, December 7, 2016, and March 27, 2018.
The Drug Enforcement Administration (DEA), the Department of Homeland Security, Immigration and Customs Enforcement (DHS/ICE), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Metropolitan Drug Enforcement Network Team (MDENT), and the Kanawha County Sheriff’s Office (KCSO) conducted the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00157.
Follow us on Twitter: SDWVNews and USAttyStuart
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Marshall County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jason Alexander Ruskin, of Moundsville, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Ruskin, 28, pled guilty to one count of “Unlawful Possession of a Firearm.” Ruskin, a person prohibited from having firearms because of a prior conviction, admitted to having a 9mm semi-automatic pistol in August 2020 in Marshall County.
Ruskin faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Judge sentences St. Louis man for heading St. Louis cell of multi-kilogram heroin and cocaine distribution organizationRead the Press Release
ST. LOUIS, MO – United States District Judge Ronnie L. White sentenced Robert Hill to 25 years in prison. A jury had convicted Hill of one count of conspiracy to possess with intent to distribute heroin and cocaine and one count of felon in possession of a firearm on September 16, 2020.
The evidence presented at trial proved that on May 23, 2013, officers responded to a call in the 11000 block of Criterion Avenue in St. Louis, Missouri. Investigators observed signs of a struggle and blood smears and during a protective sweep of the residence located and ultimately seized more than 63 functional firearms, various ammunition, and body armor. Security footage and other evidence linked the residence to Robert Hill, a previously convicted felon. Hill’s fingerprints were found on some of the firearms.
Additional evidence demonstrated Hill’s participation in a long-term, large-scale drug conspiracy involving multiple-kilogram quantities of cocaine and heroin from Mexican sources of supply to the St. Louis area. During the investigation, authorities seized hundreds of thousands of dollars in drug proceeds from Hill and his various associates. Specifically, on February 19, 2016, a Clayton Police Officer located Hill in a van with its parking lights on and making furtive movements. A records check revealed Hill had an active warrant. Hill fled from the officer who chased him by foot throughout a Clayton residential neighborhood. Hill was ultimately apprehended and was wearing a backpack in which $77,648.30 in currency was located, as well as a drug ledger. Hill was also in possession of four cellular telephones. The cash was seized and forfeited as drug proceeds.
DEA later obtained court-authorized wiretap interceptions over various cellular telephones used by Hill and his associates, during which coded conversations revealed that Hill was negotiating for and obtaining multiple kilograms of heroin on a weekly basis for distribution and sale in the St. Louis area. The Court found Hill was responsible for more than 90 kilograms of heroin and possessed firearms in connection with the offense.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney Sayler A. Fleming commended the work of the various law enforcement agencies in bringing this long-term offender to justice. “Robert Hill evaded law enforcement for several years and his drug trafficking activity did untold harm to the citizens of our district. The sentence in this case reflects that.”
“There is no better way to begin a new year than to send the leader of a violent drug trafficking organization to prison,” said Marissa Lee, Acting Assistant Special Agent in Charge. “This ensures illegal guns and drugs aren’t on our neighborhood streets. DEA often finds that violence and drugs go hand in hand and the defendant in this case is a perfect example.”
The Drug Enforcement Administration, United States Marshals Service, St. Louis County Police Department, and Clayton Police Department investigated the case.
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Judge Sentences St. Louis Man to 20 Years for Drug-Related Murder and Conspiracy to Distribute FentanylRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Armond Calvin to 240 months in prison today for one count of conspiracy to distribute fentanyl and one count of using a firearm to commit murder in furtherance of a drug trafficking crime. Calvin, 22, of St. Louis City, previously pleaded guilty on October 5, 2020.
According to the plea agreement, Calvin was a member of a violent drug trafficking organization that distributed fentanyl and other illegal drugs to drug customers in the St. Louis Metropolitan area. Members of the organization maintained various cellular telephones, which drug customers would call to obtain fentanyl. Calvin and other members of the conspiracy shared the phones, taking turns distributing fentanyl to customers who called the phone numbers.
On December 3, 2016, Calvin and other gang members learned a prospective customer had purchased fentanyl from a rival drug dealer, instead of from Calvin’s drug trafficking organization. Calvin and other members of his gang then tracked the rival dealer’s vehicle to the area of the Meramec Market, near the intersection of Oregon Avenue and Meramec Street in the City of St. Louis. At that location, Calvin, armed with a Glock 27, .40 caliber firearm fitted with a laser sight, leaned out of his own vehicle’s window and opened fire on the rival vehicle, striking and killing the backseat occupant, victim David Leslie Bryant, III. As Calvin was shooting, a black knit hat fell off Calvin’s head and onto the street. Later forensic analysis revealed Calvin’s DNA on the hat. The Glock 27, .40 caliber firearm was recovered several months later following the crash of a vehicle in which Calvin was a passenger, and ballistics analysis confirmed it was the murder weapon.
This case was investigated and prosecuted in connection with the on-going U.S. Attorney’s Office Project Safe Neighborhoods Initiative and investigation into drug distribution at the Clinton-Peabody public housing complex. The investigation included the execution of more than 15 federal search warrants resulting in the seizure of numerous firearms and controlled substances and was the subject of an important public forum involving law enforcement, citizens, and residents of the Clinton-Peabody complex held on August 3, 2018, at the Peabody Elementary School.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the St. Louis Metropolitan Police Department, the St. Louis Division of the FBI, the St. Louis Division of the DEA, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service, and the St. Charles County Sheriff’s Department, with assistance from the St. Louis Circuit Attorney’s Office. Assistant United States Attorneys Lisa Yemm and Angie Danis are handling the case for the United States Attorney’s Office.
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Heroin Redistributor Sentenced to 87 Months in Federal PrisonRead the Press Release
A man who acted as a redistributor in a heroin trafficking operation with ties to the New Generation Cartel was sentenced in federal court today, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Sean Wasson, 27, to 87 months in federal prison followed by three years of supervised release. The Court further recommended to the U.S. Bureau of Prisons that Wasson take part in a residential drug abuse treatment program.
“Sean Wasson is on his way to federal prison for the next seven years because of the kilos of heroin he distributed in our community,” said U.S. Attorney Trent Shores. “As a local redistributor for a heroin trafficking operation with ties to Mexico’s New Generation Cartel, Wasson posed a real threat to our community. In this case, our Organized Crime Drug Enforcement Task Force has secured an important conviction and sentence.”
Wasson was convicted as a result of an Organized Crime Drug Enforcement Task Force investigation titled Operation Smack Dragon. He was charged in a superseding indictment on Sept. 10, 2020, with possession of heroin with intent to distribute. As part of the drug trafficking operation, Wasson acted as a redistributor with his own customer base. For nearly two years he distributed between one and three kilograms of heroin into the Tulsa community.
Wasson was remanded to the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations led the investigation in partnership with the U.S. Department of Treasury, Internal Revenue Service- Criminal Investigation; the Oklahoma State Attorney General’s Office; and Tulsa Police Department. Assistant U.S. Attorney Joel-lyn McCormick is prosecuting this case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.
Harrison County man admits to meth distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Maylen Crayton, II, of Bridgeport, West Virginia, has admitted to a methamphetamine charge, U.S. Attorney Bill Powell announced.
Crayton, age 30, pled guilty today to one count of “Possession with Intent to Distribute 50 Grams or More of Methamphetamine,” two counts of “Possession with Intent to Distribute Methamphetamine,” and one count of “Possession with Intent to Distribute Heroin.” Crayton admitted to having more than 50 grams of methamphetamine in April 2019 in Harrison County. He also admitted to having methamphetamine and heroin in June and July 2019 in Harrison County.
Crayton faces at least five years and up to 40 years of incarceration and a fine of up to $10,000,000 for the 50 grams or more count, and faces up to 20 years of incarceration and a fine of up to $1,000,000 for each of the other counts. 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 Brandon S. Flower is prosecuting the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Bridgeport Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grant County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Lawrence Allen Keplinger, of Lahmansville, West Virginia, has admitted to a methamphetamine distribution charge, U.S. Attorney Bill Powell announced.
Keplinger, age 39, is pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” involving more than 50 grams of “crystal meth” or “ice.” Keplinger admitted to having more than 50 grams of methamphetamine in March 2019 in Grant County.
Keplinger faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Former Postal Worker Pleads Guilty to Failing to Deliver over 700 Pieces of Mail Which Included Three Absentee BallotsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Brandon Wilson, 27, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge Jeremiah J. McCarthy to delay or destruction of U.S. Mail. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on November 3, 2020, Customs and Border Protection (CBP) Officers encountered the defendant, an employee of the United States Postal Service (USPS) at the time, at the Peace Bridge Port of Entry. In the trunk of Wilson’s vehicle, officers found 701 mailings, and a USPS employee uniform and employee identification badge. The mailings included three (3) official absentee ballots mailed from the Board of Elections to voters, 218 first class mailings, 106 political mailings, 36 regular nonprofit mailings, 305 regular standard mailings, and 33 magazine/catalogue mailings. The mailings were destined for addresses located in the following zip codes: 14227, 14211, 14214, with a majority destined for 14215. The cancellation dates on the first class mailings were between September 16 and October 26, 2020.
When asked by officers about the mailings in his trunk, the defendant initially stated they belonged to him and his mother. When confronted with the destination names and addresses, Wilson admitted that he was a USPS postal carrier who kept custody of the mailings after failing to complete his delivery route.
The plea is the result of an investigation by the United States Postal Service, Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely, Eastern Area Field Office, Pittsburgh, PA, and Customs and Border Protection, under the direction of Director of Field Operations, Rose Brophy.
Sentencing is scheduled for May 6, 2021, at 2:00 p.m. before Magistrate Judge McCarthy.
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Former Office Manager of Suburban Construction Company Charged with Fraud for Allegedly Embezzling More Than $2.3 Million in Company FundsRead the Press Release
CHICAGO — The former office manager of a southwest suburban construction company has been charged with fraud for allegedly embezzling more than $2.3 million in company funds.
MILDRED H. CROWLEY fraudulently opened a corporate credit card and used it to charge the Lemont-based company for personal expenses, according to a criminal information filed Dec. 29, 2020, in U.S. District in Chicago. Crowley’s personal expenses included payments related to a private horse farm and horse show, as well as restaurant meals, department store purchases, and travel throughout the United States, the information states. Crowley concealed the thefts by falsifying the company’s books and records to misrepresent her unauthorized use of the corporate card, the information states. The alleged fraud scheme spanned from 2009 to 2020.
The information charges Crowley, 72, of Bourbonnais, Ill., with one count of wire fraud. Arraignment in U.S. District Court in Chicago has not yet been scheduled.
The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney John D. Mitchell.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Marine Corps Reserve Official Pleads Guilty to Conspiracy to Commit Bribery for Facilitating over $1,900,000 in Defense ContractsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announces that ERIK MARTIN, aged 48, pleaded guilty on Tuesday, December 29, 2020, to a Bill of Information charging him with Conspiracy to Commit Bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(2). MARTIN faces up to five years imprisonment, followed by three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100. Sentencing is set for April 27, 2021, in front of the Honorable Judge Wendy B. Vitter.
According to the Factual Basis, in 2019, MARTIN was a civilian employee of the United States Marines Corps Marine Forces Reserve (MARFORRES) Distribution Management Office (DMO), located in New Orleans, Louisiana. Darrel Fitzpatrick was a Senior National Account Manager at Company A, a bus brokerage company based in Atlanta, Georgia. MARTIN accepted bribes in exchange for directing transportation contracts to businesses associated with Darrel Fitzpatrick.
The conspiracy resulted in at least $1.9 million in transportation contracts being corruptly awarded to companies associated with Fitzpatrick. In exchange for steering contracts to Fitzpatrick, MARTIN agreed to accept $250,000 in bribes.
U. S. Attorney Strasser praised the work of the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), and the United States Secret Service for their investigation in this case. The prosecution is being handled by Assistant United States Attorney Myles Ranier.
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Former High-Level Associate of Imprisoned Mexican Mafia Member Sentenced to 12 Years in Prison for Carjacking, Soliciting MurderRead the Press Release
LOS ANGELES – A Pomona woman who acted as a “señora” – or a high-level female associate for an imprisoned Mexican Mafia member – was sentenced today to 144 months in federal prison for using her power on the street to solicit a murder and for participating in a carjacking attempt that resulted in a shooting.
Cheryl Perez-Castaneda, 58, was sentenced via videoconference by United States District Judge George H. Wu. She pleaded guilty in October 2020 to one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and one count of using a firearm during a crime of violence.
Perez-Castaneda was a high-level associate of a Mexican Mafia cell run by Michael Lerma, 63, a.k.a. “Pomona Mike” and “Big Mike.” Lerma exercised control over, and extorted drug proceeds from, Latino street gangs in and around Pomona, as well as from inmates at Calipatria State Prison in Imperial County, according to a federal grand jury indictment.
Members of Lerma’s criminal enterprise also engaged in robberies, identity theft and fraud, drug trafficking, kidnapping, and other acts of violence, the indictment alleges. Lerma profited from these criminal activities when top-level female associates known as “señoras” deposited proceeds into his prison account, court documents state.
One of those associates was Perez-Castaneda, who, from February 2012 to July 2016, engaged in the traditional and expected duties of a “señora” – collecting extortionate “taxes” from Pomona drug dealers; distributing the drug proceeds to the Mexican Mafia, including Lerma, who was incarcerated at Pelican Bay State Prison; and giving orders to others regarding the racketeering enterprise’s criminal activities.
But Perez-Castaneda also used her power as Lerma’s voice on the street to solicit the murder of a Los Angeles County Jail inmate in July 2013 in retaliation for the shooting of her son. When Perez-Castaneda was informed that the victim had been stabbed, but not killed, she sought and obtained the approval of a Mexican Mafia member to have the victim placed on a “green light” list, marking him for murder.
In July 2013, Perez-Castaneda also participated in the attempted theft of a Mercedes-Benz automobile owned by another jail inmate. When the car’s caretaker refused to hand over the vehicle, one of Perez-Castaneda’s co-defendants shot him, according to court documents. Perez-Castaneda later laughed about the shooting on a recorded telephone call.
In March 2018, a federal grand jury charged Lerma and 12 other defendants with multiple felonies, including racketeering conspiracy, violent crimes in aid of racketeering, conspiracy to distribute controlled substances, and firearms offenses. So far, prosecutors have secured five guilty pleas in this case. Trial for the other defendants in this case, including Lerma and Jose Valencia Gonzalez, the alleged shooter in the July 2013 carjacking incident, is scheduled for May 11.
This investigation was conducted by the FBI’s San Gabriel Valley Safe Streets Task Force, which is made up of agents and officers with the FBI, the Los Angeles County Sheriff’s Department, the Pomona Police Department, the El Monte Police Department, the Drug Enforcement Administration and the California Department of Corrections and Rehabilitation (CDCR). The Pomona Police Department is the sponsoring agency of the Task Force and has been the headquarters for the task force since its inception in 2008.
This case was prosecuted by Assistant United States Attorneys Max B. Shiner of the Violent and Organized Crime Section, and Shawn J. Nelson and Keith D. Ellison of the International Narcotics, Money Laundering, and Racketeering Section.
Former Bank Manager Sentenced to Prison After Stealing Nearly $1.2 Million in Benefits from the Social Security Administration and Department of Veterans AffairsRead the Press Release
LAS VEGAS, Nev. — A former branch manager of a bank in Las Vegas was sentenced today to two years and six months in prison after pleading guilty to fraudulently obtaining nearly $1.2 million in Social Security Administration (SSA) and Department of Veterans Affairs (VA) benefits, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada; Inspector General for the Social Security Administration Gail S. Ennis; and VA Inspector General Michael J. Missal.
“The Social Security Administration and Department of Veterans Affairs provide a lifeline to members of society who are eligible, and provide benefits to veterans who have served and sacrificed for their country,” said U.S. Attorney Trutanich. “Our office and our agency partners are committed to safeguarding these programs and prosecuting those who would abuse these essential services.”
“We must hold those in positions of trust accountable when they abuse that trust and misuse their authority for personal gain,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to work with SSA and other agencies to identify unreported deaths and aggressively pursue those who misuse Social Security benefits after someone dies.”
“The VA Office of Inspector General tirelessly pursues allegations of fraud, waste, and abuse affecting VA programs,” said VA Inspector General Michael J. Missal. “This conduct was particularly disturbing as it involved an individual who abused his position of trust.”
Javier Montano, 57, of Las Vegas, pleaded guilty to one count of theft of government funds. In addition to the term of imprisonment, U.S. District Judge Jennifer Dorsey sentenced Montano to three years of supervised release and ordered him to pay $1,196,075.95 in restitution to the Social Security Administration and Department of Veterans Affairs.
According to court documents, in August 2015, Montano, who was the branch manager for a local bank, received information about two accounts within the bank with large balances and no activity:
- The first account (Account A) was held by a Las Vegas resident who was receiving SSA retirement benefits. The individual passed away in February 1997. The SSA was not notified about the individual’s death, and benefits continued to be paid into the account.
- The second account (Account B) was held by a Las Vegas resident who was receiving both SSA retirement benefits and VA benefits. The individual passed away in June 2011. Neither the SSA nor the VA was notified about the individual’s death, and benefits continued to accumulate in the account.
Through a bank computer, Montano ordered debit cards for both accounts, using them to withdraw cash — which he either spent or deposited into his personal bank account — and to make purchases for his personal use and benefit. In addition, Montano ordered and wrote checks (for his personal use) for Account B. Montano also used his authority as a branch manager to authorize a $35,000 cashier’s check from Account B. The vast majority of the funds were withdrawn in cash or spent on personal expenses, including the purchase of a luxury car.
In total, between August 2015 and June 2020, Montano fraudulently obtained: (a) approximately $436,686.80 in SSA benefits to which he was not entitled; and (b) approximately $757,985.88 in VA benefits to which he was not entitled.
This case was a joint investigation by the Social Security Administration, Office of Inspector General, and Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Jessica Oliva prosecuted the case.
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Fire Extinguisher Manufacturer Ordered to Pay $12 Million Penalty for Delay and Misrepresentations in Reporting Product DefectsRead the Press Release
A federal judge today ordered Walter Kidde Portable Equipment Inc. (Kidde) to pay a $12 million civil penalty in connection with allegations that the company failed to timely inform the Consumer Product Safety Commission (CPSC) about problems with fire extinguishers manufactured by the company, the Department of Justice announced.
Kidde, based in Mebane, N.C., agreed to the civil penalty and other terms as part of a consent decree entered by U.S. District Judge Loretta C. Biggs of the Middle District of North Carolina. The consent decree resolves allegations in a complaint filed by the United States against Kidde on December 30.
The complaint concerned Kidde fire extinguishers with plastic handles that were the subject of a recall announced by the CPSC and Kidde in 2017. According to the recall announcement, the fire extinguishers could fail to discharge during a fire emergency, and their nozzles could detach. A subset of the recalled fire extinguishers was the subject of an earlier recall in February 2015. The complaint alleged that Kidde violated the Consumer Product Safety Act by significantly underreporting prior to the first recall the scope and nature of the defect and risk, and the number of products and models affected. According to the complaint, Kidde also failed to immediately report to the CPSC information concerning nozzles detaching from fire extinguishers. The complaint further alleged that Kidde made misrepresentations to the CPSC and misused a registered safety certification mark.
“Companies must immediately report to the CPSC information about unreasonable risks and defects that create substantial hazards,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “The Department of Justice will continue to take appropriate enforcement actions against companies that jeopardize consumer safety by failing to comply with reporting requirements.”
“I want to convey my thanks to CPSC staff and to our partners at the Department of Justice for finalizing this consent decree without the need for extended litigation,” said CPSC Acting Chairman Robert S. Adler.
The court’s order requires Kidde to maintain a compliance program to ensure that the company complies with the Consumer Product Safety Act and to maintain internal controls and procedures designed to ensure timely, complete, and accurate reporting to the CPSC as required by law. Kidde is subject to liquidated damages if the company is not in compliance with the consent decree. In agreeing to the consent decree, Kidde did not admit that it violated the law.
The government is represented by Trial Attorneys Claude Scott and Daniel Zytnick of the Department of Justice Civil Division’s Consumer Protection Branch, with the assistance of Patricia Vieira of the CPSC’s Office of the General Counsel.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
California Woman Pleads Guilty to Hate Crime for Threatening to Bomb Catholic Prep SchoolRead the Press Release
WASHINGTON –The Justice Department announced today that Sonia Tabizada, age 36, of San Jacinto, California, pleaded guilty in federal court to intentionally obstructing persons in the enjoyment of their free exercise of religious beliefs by threatening to bomb the Georgetown Visitation Preparatory School in Washington, D.C., in violation of Title 18, U.S. Code, Section 247.
In May 2019, school officials announced that Visitation Prep, the oldest Catholic school for girls in the country, would begin publishing same-sex wedding announcements in its alumni magazine to advance its teaching that “we are all children of God ... worthy of respect and love.” According to the plea agreement, Tabizada learned of this announcement and made multiple calls threatening violence in response to the school’s decision. On May 15, 2019, Tabizada left a voice message stating that she was going to burn and bomb the church. Tabizada also stated that she was going to kill school officials and students. Several minutes later, Tabizada left a second voice mail stating that she was going to blow up the school and warned that she would commit “terrorism.”
“The defendant made violent threats against high school students, religious leaders, and school officials based solely on her disagreement with a private school’s application of religious doctrine,” said Eric Drieband, Assistant Attorney General for the Civil Rights Division. “Tolerance and religious freedom are cornerstone values in our society and the Department of Justice will continue to vigorously prosecute violent threats motivated by bias.”
“The defendant’s violent threats were directed at the free exercise of a private school community’s religious beliefs. An attack upon the free exercise of any person or group’s religious beliefs is an attack upon the civil rights of every citizen. Today’s guilty plea is part of my office’s commitment to ensuring that all District citizens can safely exercise their religious beliefs and that all of their civil rights are protected,” said Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia.
“Tabizada used threats of violence to intimate others because of differing religious views,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Every citizen and community has the Constitutional right to exercise their own religious beliefs free from fear and discrimination. Defending civil rights is a top priority for the FBI and we will continue to work to protect the civil rights and freedoms granted to all Americans.”
Tabizada will be sentenced at a hearing scheduled for March 23, 2021. She faces a maximum penalty of 20 years in prison, three years of supervised release, and a fine of up to $250,000.
The case was investigated by the FBI Washington Field Office and is being prosecuted by Assistant U.S. Attorney Kendra Briggs of the U.S. Attorney’s Office for the District of Columbia Public Corruption and Civil Rights Section and Civil Rights Division Trial Attorney Michael J. Songer.
California Woman Pleads Guilty to Hate Crime for Threatening to Bomb Catholic Prep SchoolRead the Press Release
The Justice Department announced today that Sonia Tabizada, age 36, of San Jacinto, California, pleaded guilty in federal court to intentionally obstructing persons in the enjoyment of their free exercise of religious beliefs by threatening to bomb the Georgetown Visitation Preparatory School in Washington, D.C., in violation of Title 18, U.S. Code, Section 247.
In May 2019, school officials announced that Visitation Prep, the oldest Catholic school for girls in the country, would begin publishing same-sex wedding announcements in its alumni magazine to advance its teaching that “we are all children of God ... worthy of respect and love.” According to the plea agreement, Tabizada learned of this announcement and made multiple calls threatening violence in response to the school’s decision. On May 15, 2019, Tabizada left a voice message stating that she was going to burn and bomb the church. Tabizada also stated that she was going to kill school officials and students. Several minutes later, Tabizada left a second voice mail stating that she was going to blow up the school and warned that she would commit “terrorism.”
“The defendant made violent threats against high school students, religious leaders, and school officials based solely on her disagreement with a private school’s application of religious doctrine,” said Eric Drieband, Assistant Attorney General for the Civil Rights Division. “Tolerance and religious freedom are cornerstone values in our society and the Department of Justice will continue to vigorously prosecute violent threats motivated by bias.”
“The defendant’s violent threats were directed at the free exercise of a private school community’s religious beliefs. An attack upon the free exercise of any person or group’s religious beliefs is an attack upon the civil rights of every citizen. Today’s guilty plea is part of my office’s commitment to ensuring that all District citizens can safely exercise their religious beliefs and that all of their civil rights are protected,” said Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia.
“Tabizada used threats of violence to intimidate others because of differing religious views,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Every citizen and community has the Constitutional right to exercise their own religious beliefs free from fear and discrimination. Defending civil rights is a top priority for the FBI and we will continue to work to protect the civil rights and freedoms granted to all Americans.”
Tabizada will be sentenced at a hearing scheduled for March 23, 2021. She faces a maximum penalty of 20 years in prison, three years of supervised release, and a fine of up to $250,000.
The case was investigated by the FBI Washington Field Office and is being prosecuted by Assistant U.S. Attorney Kendra Briggs of the District of Columbia and Civil Rights Division Trial Attorney Michael J. Songer.
Acting United States Attorney Appointed for the Middle District of PennsylvaniaRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Bruce D. Brandler has been appointed Acting United States Attorney for the Middle District of Pennsylvania effective January 2, 2021. Mr. Brandler was appointed upon the resignation of former United States Attorney David J. Freed, which became effective at midnight on January 1, 2021. Mr. Brandler’s appointment is for three hundred days or until a Presidential appointment is made, whichever occurs first.
Mr. Brandler previously served as United States Attorney for the Middle District of Pennsylvania between October 2, 2016, and November 26, 2017. He was first appointed to the position by former Attorney General Loretta E. Lynch on October 2, 2016, and then reappointed by Order of the District Court Judges on January 30, 2017. Mr. Brandler served as First Assistant United States Attorney under former United States Attorney David J. Freed between November 27, 2017, and January 1, 2021.
Mr. Brandler began his legal career as an Assistant District Attorney in Brooklyn, New York, where he served from 1981 until 1985. Upon leaving the District Attorney’s Office, he became the Deputy Chief and then the Chief Investigative Counsel of the New York State Senate Committee on Investigations, Taxation and Government Operations from 1985 to 1986.
Mr. Brandler was appointed an Assistant United States Attorney for the Middle District of Pennsylvania in 1986 and was promoted to the position of Senior Litigation Counsel in 1992. In 2014, he became the Chief of the Criminal Division and served in that capacity until his appointment as United States Attorney in October 2016.
During his tenure as an Assistant United States Attorney, Mr. Brandler specialized in complex white-collar prosecutions, including high-profile public corruption cases. Some of the notable cases Mr. Brandler prosecuted included a tax evasion case against former Luzerne County Judge Arthur Dalessandro; a perjury case against former State Representative Frank Serafini; a bribery/extortion case against former Lackawanna County Commissioners Robert Cordaro and Anthony Munchak; an illegal campaign contribution and fraud case against Renato Mariani, the former President of Empire Sanitary Landfill, Inc.; a disadvantaged business enterprise fraud case against Joseph Nagle, the former President of Schuylkill Products, Inc.; an accounting fraud case against Paul Polishan, the former Chief Financial Officer for the Leslie Fay Companies, Inc.; and an environmental crimes case against Chemical Waste Management, Inc. for illegal dumping activities at a Superfund site in Lackawanna County.
Mr. Brandler graduated from Stony Brook University in 1978 and received a B.A. in Political Science with honors, and was inducted into the Phi Beta Kappa honor society. He received his law degree in 1981 from the Boston University School of Law. He resides in Harrisburg, Pennsylvania.
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4 sentenced for roles in illegally harboring over 100 immigrantsRead the Press Release
McALLEN, Texas – Four Starr County residents have been handed significant sentences following their respective convictions involving the harboring of 104 illegal aliens in harsh conditions, announced U.S. Attorney Ryan K. Patrick.
Juan Carlos Barrera, 28, Odilon Oyervides Jr., 22, Isaac Villarreal, 25, and Gustavo Alberto Alaniz Jr., 25, all of Roma, pleaded guilty in late 2019.
Today, U.S. District Judge Randy Crane ordered Oyervides to serve 108 months in prison. On Aug. 7, 2019, U.S. District Judge Marina Marmalejo sentenced Oyervides to 18 months in prison for his conviction of being a felon in possession of a firearm. Today’s sentence will run consecutively for a total 126 months in prison.
In December 2020, Barrera and Alaniz received 120-month sentences, while Villarreal was sentenced to 63 months. All the terms will each be immediately followed by three years of supervised release.
“If it were not for the efforts of the federal, state and local law enforcement agencies who worked on this case these dangerous criminals would have continued harming unsuspecting illegal aliens,” said Rio Grande Valley Sector Chief Patrol Agent Brian Hastings. “Criminal organizations exploit migrants throughout their journey and the abuse does not stop when they arrive in the U.S.”
“These men, who supported alien smuggling and alien harboring, placed their personal profit ahead of public safety and U.S. border security,” said Maria Michel-Manzo, Assistant Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “The resulting lengthy prison sentences should act as a warning to others who are involved in this dangerous trade of the severe consequences of their actions.”
During the sentencing hearings, U.S. District Judge Randy Crane noted their “egregious” conduct and ruled the men had threatening the aliens with stun guns and a firearm, physically mistreated them and failed to provide sufficient food and water. He also held them accountable for maintaining 104 aliens in an open-sided shed without a shower or toilet facilities in the middle of summer and placed the group at risk for serious bodily injury or death. They also had harbored multiple unaccompanied minors.
On Aug. 8, 2019, a man alerted authorities in rural Starr County. He identified himself as an illegal alien who escaped from a nearby ranch because property caretakers were mistreating him. He said others were being held against their will and requested assistance. Law enforcement responded to the location and were eventually able to locate all 104 illegal aliens.
All four men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Rio Grande City Border Patrol’s Field Intelligence Group conducted the investigation with assistance from the Texas Department of Public Safety and the Starr County Sheriff’s Office. Assistant U.S. Attorney Robert L. Guerra Jr. is prosecuting the case.
Saturday 2 January 2021
Statement on the deaths of Vinnie and Kelly ZummoRead the Press Release
“I, along with my staff at the U.S. Attorney’s Office, are shocked and saddened to hear of the tragic deaths of Supervisory U.S. Probation Officer Vinnie Zummo and his wife, Kelly. Our thoughts go out to their families, friends, and colleagues. As the investigation continues, please be respectful of those who knew the Zummos, as well as their families, at this difficult and unimaginable time,” said U.S. Attorney Bill Powell, Northern District of West Virginia.
Statement of the Acting Attorney General Jeffrey A. Rosen on the Death of Former Attorney General Richard (Dick) ThornburghRead the Press Release
Acting Attorney General Jeffrey A. Rosen released the following statement:
"Acting Attorney General Jeffrey A. Rosen released the following statement: Acting Attorney General Jeffrey A. Rosen released the following statement on the death of former Attorney General Richard (Dick) Thornburgh: It is with profound sadness that I learned of the passing of former Attorney General and Pennsylvania Governor Richard (Dick) L. Thornburgh. Gov. Thornburgh’s tenure at the Department of Justice started in 1969 in the Western District of Pennsylvania, where he served as the U.S. Attorney. He later led the Department’s Criminal Division before successfully running for Governor of Pennsylvania, where he served two terms as the Keystone state’s chief executive. In 1988, President Ronald Reagan appointed Gov. Thornburgh to serve as the U.S. Attorney General and he was retained as Attorney General by President George H.W. Bush. Gov. Thornburgh was widely respected as a brilliant lawyer, a true patriot and a model leader. He led the efforts on the Americans with Disabilities Act, launched campaign against white collar crime-- including a record number of cases against savings and loans and securities officials, and he actively pursued racial, religious and ethnic hate crimes. His contributions to the Nation, our Department and the legal profession are legendary and the memory of his contributions will live on for generations to come."
Thursday 31 December 2020
U.S Attorney Brady Statement on the Passing of Dick ThornburghRead the Press Release
PITTSBURGH – Scott W. Brady, United States Attorney for the Western District of Pennsylvania, issued the following statement tonight following the passing of former Attorney General of the United States, U.S. Attorney for the Western District of Pennsylvania, and Pennsylvania Governor, Dick Thornburgh.
"We join all Pennsylvanians in mourning the passing of General Thornburgh, a true giant in the law and a former leader of our Office who set an unwavering standard of excellence and professionalism for all United States Attorneys to follow."
"General Thornburgh’s legacy has been one not only of fierce intellect and love of justice, but also, like the Pittsburgher he was, an impact infused with his trademark integrity, grace and humility."
At the Law Enforcement Directors Awards Ceremony held on November 5th, U.S. Attorney Brady unveiled the inaugural Dick Thornburgh Award, which will be presented each year to an outstanding Assistant U. S. Attorney who exhibits the commitment to justice and the highest ethical standards that were embodied by General Thornburgh throughout his career.
Then-United States Attorney General William Barr provided a videotaped statement of congratulations to Assistant U.S. Attorney Brendan Conway, the first winner of the first Dick Thornburgh Award, in which AG Barr recalled his work experiences with Dick Thornburgh, the first Attorney General for whom he worked. AG Barr recalled General Thornburgh as "a lawyer’s lawyer", "an outstanding leader" and "a man of unquestioned integrity and courage."
"Away from the Department, he was a model of personal decency and public service, contributing on issues ranging from international affairs to the rights of the disabled," former AG Barr added.
Dick Thornburgh was born on July 16, 1932 in Pittsburgh, Pennsylvania. He graduated with a bachelor’s degree in engineering from Yale University in 1954 and earned his LL.B degree from the University of Pittsburgh in 1957. Mr. Thornburgh also holds honorary degrees from 31 colleges and universities.
Following law school, Mr. Thornburgh worked in private industry until 1959 when he joined the Pittsburgh law firm then known as Kirkpatrick & Lockhart. In 1967, he was elected as a delegate to the Pennsylvania Constitutional Convention. From 1969 to 1975, Mr. Thornburgh was the U.S. Attorney for the Western District of Pennsylvania and was appointed Assistant Attorney General for the Criminal Division in 1975, serving two years in Washington, D.C. in that role before returning to private practice as a partner at Kirkpatrick & Lockhart. Pennsylvania elected Mr. Thornburgh governor in 1979 and he served two terms. Mr. Thornburgh also taught courses at the Harvard University Kennedy School of Government and directed that school’s Institute of Politics from 1987 to 1988.
Appointed by President Reagan, Dick Thornburgh was sworn in as Attorney General on August 12, 1988. President George H.W. Bush reinstated him as Attorney General in 1989 and he served until 1991. In 1992, the American Legion honored Mr. Thornburgh with its highest award, the "Distinguished Services Medal." He published his autobiography in 2003 entitled, Where the Evidence Leads: The Autobiography of Dick Thornburgh.
Tulsa Man Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Wesley Michael Rollings, age 32, of Tulsa, Oklahoma entered a guilty plea to Drug Conspiracy, in violation of Title 21, United States Code, Section 846, punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment alleged that beginning in October 2018 and continuing until July 2019, in the Eastern District of Oklahoma and elsewhere, Rollings did willfully and knowingly combine, conspire, confederate, and agree with others to commit Drug offenses against the United States by acquiring large amounts of methamphetamine and distributing it for money. On July 14, 2019, Oklahoma State Troopers arrested Rollings and his girlfriend Jamie Denise McDonald in Tulsa in possession of one kilogram of methamphetamine (actual) that they had just purchased from Lannie Jo Carter.
The charges arose from a joint investigation led by the Drug Enforcement Administration, along with the Federal Bureau of Investigation, the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Oklahoma Department of Corrections, the Oklahoma Highway Patrol, the Muskogee County Sheriff’s Office, the Muskogee Police Department, and the Tulsa County Sheriff’s Office. Additionally, many prominent agencies which are members of the DEA High Intensity Drug Trafficking Area Task Force (“HIDTA”), contributed to this investigation, including: the Tulsa Police Department, the Broken Arrow Police Department, the Chickasaw Nation Lighthorse Police Department, the Miami Police Department, the Moore Police Department, the El Reno Police Department, the Yukon Police Department, the Duncan Police Department, the Norman Police Department, the Choctaw Police Department, the Edmond Police Department, the Oklahoma County Sheriff’s Office, the Canadian County Sheriff’s Office, the Rogers County District Attorney’s Office, and the Oklahoma County District Attorney’s Office. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace, Assistant United States Attorney Ryan Conway, and Special Assistant United States Attorney Christopher Schroeder represented the United States.
TriWest Healthcare Alliance Corp. Agrees to Pay $179.7 Million to Resolve Overpayments from the Department of Veterans AffairsRead the Press Release
WASHINGTON – TriWest Healthcare Alliance Corp. has agreed to pay the United States $179,700,000 to resolve claims that it received overpayments from the U.S. Department of Veterans Affairs (VA) in connection with its administration of certain VA health care programs, the Department of Justice announced today.
TriWest, an Arizona corporation headquartered in Phoenix, is in the business of administering government health care programs, including those operated by the VA. TriWest is responsible for administering certain portions of the VA Patient-Centered Community Care Program (PC3) and the VA’s former Veterans Choice Program (Choice). Both programs have enabled veterans to obtain medical care from providers in their communities. As an administrator of these programs, TriWest is paid by the VA to coordinate medical appointments and make payments to health care providers.
The settlement resolves allegations that TriWest retained overpayments from the VA in connection with its administration of the PC3 and Choice Programs. The alleged overpayments included payments by the VA to TriWest twice for the same services as well as payments for services for which TriWest received full or partial reimbursement from certain health care providers.
“The VA’s PC3 and Choice Programs have provided significant benefits to our nation’s veterans,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “The department will continue to support the VA and its Office of Inspector General in ensuring that the VA’s programs are administered properly and that taxpayer funds are used as intended.”
“The VA provides invaluable assistance to those who have sacrificed on our behalf,” said U.S. Attorney Michael Bailey for the District of Arizona. “It is vital that those who administer programs for the VA be held accountable to do so with the utmost care and integrity.”
“The VA Office of Inspector General works tirelessly to promote the economy, efficiency, and integrity of the VA’s programs and operations,” said VA Inspector General Michael J. Missal. “This settlement is integral to ensuring that the VA’s funds are spent for the benefit of our nation’s veterans. I appreciate the teamwork and dedication that led to this significant recovery.”
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the District of Arizona, the Department of Justice Civil Division’s Commercial Litigation Branch, and the VA and its Office of Inspector General. The claims resolved by the settlement agreement are allegations only, and there has been no determination of liability.
Third Defendant Pleads Guilty for his Role in Nigerian Romance ScamRead the Press Release
A Norman man pleaded guilty today in U.S. District Court for his role as a money launderer in a Nigerian romance scam that defrauded multiple victims, including elder Americans, of millions, announced U.S. Attorney Trent Shores.
Tobiloba Kehinde, 28, pleaded guilty to conspiracy to commit money laundering before U.S. District Court Judge Gregory K. Frizzell. Kehinde’s sentencing hearing is set for March 29, 2021.
“In the last year, Americans were defrauded out of more than $200 million due to romance scams. Whether these con artists are romancing vulnerable elder victims online or facilitating money laundering to hide the illicit proceeds, this U.S. Attorney’s Office will never stop fighting to get justice for the victims,” said U.S. Attorney Trent Shores. “Today, Tobiloba Kehinde, becomes the third conspirator brought to justice for his role in a Nigerian romance scheme.”
In his plea agreement, Kehinde admitted that he knew the money involved in the financial transactions involved the proceeds from unlawful activity. He further stated that he knew the financial transactions were designed, in whole or in part, to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of the unlawful activity.
From 2017 through and November 2019, Kehinde knowingly concealed the proceeds of a romance scam operation by moving money between and among multiple bank accounts that were opened under various aliases using fake passports and other fraudulent identification documents to obscure the source of the funds and the identities of the co-conspirators. Court documents state that he and his co-conspirators took further steps to conceal the source of the funds, took a commission, and directed the remainder of the funds back to the online romance scammers in Nigeria, including in the form of vehicles and vehicle parts.
According to court documents, Kehinde coordinated with overseas co-conspirators who had assumed false identities on online dating websites and social media platforms with the intent to defraud victims. Kehinde opened several accounts using fraudulent identities, including “Jeff Atto” and “Ari Lawson,” then provided the account and routing numbers to the overseas co-conspirators. The overseas co-conspirators told victims they were U.S. residents working abroad. In fact, the investigation revealed that these overseas co-conspirators were located in Nigeria. As these online “relationships” continued, the overseas co-conspirators’ would request increasingly larger sums of money, claiming that the funds were needed to complete business projects or to return to the United States. The victims were directed by the overseas co-conspirators to send funds to Kehinde and others’ bank accounts, assuring the victims that he would allocate the money as needed.
Kehinde and his co-defendants were charged in November 2019. Afeez Olajide Adebara, 35, and John Oluwaseun Ogundele, 31, have also pleaded guilty.
The remaining defendants are Joshua Naandom Ditep, 26, Nigerian citizen and lawful permanent resident of the United States residing in Norman; Paul Usoro, 26, Nigerian citizen and lawful permanent resident of the United States residing in Norman; Chibuzo Godwin Obiefuna, Jr., 27, U.S. citizen residing in Long Beach, California; Jamiu Ibukun Adedeji, 24, Nigerian citizen, residing in Norman; First and last name unknown #1, who maintained an address in Brooklyn, New York; First and last name unknown #2, who maintained an address in Dallas, Texas; and First and last name unknown #3, who maintained an address in Dallas, Texas. Ditep, Usoro, Obiefuna, and Adedeji await trial while the three additional co-defendants remain fugitives. These remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Oklahoma City Field Office conducted the investigation. Trial Attorney Babasijibomi Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher Nassar of the Northern District of Oklahoma are prosecuting the case.
Summerset Man Sentenced to One Year for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man who pleaded guilty to Conspiracy to Distribute a Controlled Substance was sentenced on December 17, 2020, by U.S. District Court Judge Jeffrey L. Viken.
Richard Nowell, age 59, was sentenced to one year, plus one day, in federal prison, followed by three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From approximately April 2019 to late August 2019, Nowell brought methamphetamine to South Dakota while working as an over the road truck driver. Nowell then dispersed the methamphetamine to others for use or additional distribution.
This case was investigated by the Drug Enforcement Agency and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Nowell was immediately returned to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Failure to Register as Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on December 28, 2020, by U.S. District Judge Karen E. Schreier.
Charles Little Bear, Jr., age 54, was sentenced to six months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Little Bear was indicted by a federal grand jury on July 20, 2020. He pled guilty on November 9, 2020.
The conviction stemmed from Little Bear failing to register as a sex offender as required by federal law between July 19, 2019, and April 9, 2020. Little Bear had previously been convicted of a sex offense in federal court, which requires him to register for 25 years after his release from custody.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Little Bear was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Indicted on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Bud Theus, II, age 68, was indicted on October 14, 2020. He appeared before U.S. Magistrate Judge William D. Gerdes on December 29, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 8, 2020, Theus, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and then knowing he had been convicted of a crime punishable by imprisonment for a term exceeding one year, and being an unlawful user of a controlled substance, and then knowing he was an unlawful user of a controlled substance, knowingly did possess a revolver, which had been shipped and transported in interstate commerce and foreign commerce, in Corson County, South Dakota.
The charge is merely an accusation and Theus is presumed innocent until and unless proven guilty.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
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: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Corson County Sheriff’s Office. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Theus was released on bond pending trial. A trial date has not been set.
Rapid City Man Sentenced to Federal Prison for Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Receipt of Child Pornography was sentenced on December 10, 2020, by Judge Jeffrey L. Viken, U.S. District Court.
Michael Hanson, age 63, was sentenced to five years in federal prison, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund, $3,000 in restitution, and a $5,000 special assessment to the Victims of Trafficking Fund. Hanson will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
The conviction stems from Hanson receiving computer images of child pornography, as well as obscene matter, at Rapid City between September 2010 and June 2019.
The investigation was conducted by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Hanson was immediately remanded to the custody of the U.S. Marshals Service.
Porcupine Man Indicted on Carjacking and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Porcupine, South Dakota, man has been indicted by a federal grand jury for Carjacking, Use and Brandishing of a Firearm During the Commission of a Crime of Violence, and Possession of a Stolen Firearm.
Curtis Horse, age 29, was indicted on December 8, 2020. He appeared before U.S. Magistrate Judge Daneta Wollmann on December 16, 2020, and pleaded not guilty to the Indictment.
The penalty upon conviction is 15 years in federal prison and/or a $250,000 fine, followed by three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Horse stealing a motor vehicle and firearm at gunpoint at Rapid City, South Dakota, in November 2020. The charges are merely an accusation and Horse is presumed innocent until and unless proven guilty.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
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: https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rapid City Police Department, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Horse was detained pending trial. A trial has been set for February 23, 2021.
Northern District of Iowa Prosecutor Recognized for Lifetime of Exceptional Service to Department of JusticeRead the Press Release
Senior Litigation Counsel Richard L. Murphy of the U.S. Attorney’s Office in the Northern District of Iowa was recognized by the Executive Office for U.S. Attorneys (EOUSA) with the Lifetime of Exceptional Service Director’s Award. United States Attorney Peter E. Deegan, Jr. presented Mr. Murphy with the award on December 2, 2020.
Mr. Murphy was recognized for his more than 35 years of service to the Northern District of Iowa and the Department of Justice. Mr. Murphy first worked in the United States Attorney’s Office as an intern in 1981. After clerking for a federal judge, Mr. Murphy joined the office full-time. Over the next decades, he prosecuted many of the most important and difficult cases in the district:
- As an organized crime and narcotics prosecutor, he launched a vigorous initiative that transformed the “war on drugs” in the district into an aggressive and successful offensive. In the fall of 1988, a two-year investigation led by Mr. Murphy resulted in 65 arrests, the seizure of cocaine valued at $1.5 million, marijuana valued at $800,000, and over $300,000 in cash and other assets. For his efforts Mr. Murphy was awarded the Director’s Award for his outstanding contributions to narcotics enforcement in 1990.
- In 1996, Mr. Murphy was awarded the Director’s Award for his outstanding accomplishments as lead prosecutor in the prosecution and conviction of 11 members of the Sons of Silence (SOS) Outlaw Motorcycle Club. The prosecution incapacitated both SOS chapters in Iowa and seriously disrupted racketeering activities of the club nationwide. The national vice-president and three SOS chapter presidents were convicted as part of the case. During the investigation, seven current or former SOS members broke the “code of silence” and agreed to cooperate fully.
- In 2014, Mr. Murphy received the Director’s Award for supervising the (then) largest criminal worksite enforcement operation in United States history. The investigation resulted in the conviction of more than 300 illegal workers, several company officials, and a conviction by jury of a corporate CEO for an array of financial crimes including a $26 million bank fraud as well as significant immigration related fraud.
- In 2016, Mr. Murphy was honored with the Anti-Defamation League’s Shield Award for his work as lead prosecutor of Gervais Ngombwa. Ngombwa was convicted by a jury of naturalization fraud as a result of having lied to gain entry to the United States as a refugee following the 1994 Rwandan genocide. Evidence presented in court showed Ngombwa had actively participated in the genocide. Ngombwa was sentenced to 15 years’ imprisonment and will be removed to Rwanda after the completion of his prison term.
In addition to his decades prosecuting crimes, Mr. Murphy contributed to the promotion of justice in Iowa and nationally by serving in numerous leadership positions and being hand-picked for many additional duties for the Department of Justice:
- Mr. Murphy has served in virtually every leadership position in the United States Attorney’s Office. Mr. Murphy served (sometimes concurrently) in each of the following management positions: First Assistant United States Attorney, Criminal Chief, Senior Litigation Counsel, and Counsel to the United States Attorney.
- Mr. Murphy’s leadership was also instrumental in responding effectively to the massive flood in Cedar Rapids in June 2008 that displaced the main office for five months. Mr. Murphy’s outstanding work during this time-period was recognized with a 2009 Director’s Award for Superior Performance in a Managerial Role. Following the flood, Mr. Murphy spent hundreds of hours serving as the office’s lead representative as a new federal courthouse was designed, constructed, and occupied by the office.
- Mr. Murphy served as Special DOJ Counsel to the United States Sentencing Commission (USSC) from September 1990 through April 1991.
- Mr. Murphy served as a member and Chair of the DOJ’s Criminal Chiefs Working Group. With other committee members, Mr. Murphy assisted in formulating recommendations to the Attorney General concerning a wide variety of issues affecting criminal prosecutors.
- In 2018, as the office’s Antiterrorism Coordinator and National Security prosecutor, Mr. Murphy collaborated with state, federal, and local law enforcement; mental health providers, prosecutors, school administrators and resource officers, and juvenile court services to develop a School Threats Prevention Resource Guide. The guide was widely distributed to those same stakeholders across the district and elsewhere. This effort is recognized nationally as a “Best Practices” at https://usanet.usa.doj.gov/staffs/AGAC/Pages/BestPrac.aspx.
After nearly 40 years of service to the Northern District of Iowa, Mr. Murphy will retire at the end of 2020.
“The impact Mr. Murphy has had on the United States Attorney’s Office and the federal court system in the Northern District of Iowa cannot be overstated,” said United States Attorney Deegan. “For more than 35 years, he has served with an unyielding commitment to justice and the rule of law. By consistently providing the public with the very highest quality legal representation, Mr. Murphy has served as an outstanding example for generations of government attorneys. He is truly irreplaceable and we will miss him terribly, but we all wish him the best in his well-deserved retirement.”
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- As an organized crime and narcotics prosecutor, he launched a vigorous initiative that transformed the “war on drugs” in the district into an aggressive and successful offensive. In the fall of 1988, a two-year investigation led by Mr. Murphy resulted in 65 arrests, the seizure of cocaine valued at $1.5 million, marijuana valued at $800,000, and over $300,000 in cash and other assets. For his efforts Mr. Murphy was awarded the Director’s Award for his outstanding contributions to narcotics enforcement in 1990.
North Liberty Man Sentenced to Prison for Heroin DistributionRead the Press Release
DAVENPORT, Iowa — On December 30, 2020, United States District Court Chief Judge John A. Jarvey sentenced Eric Allen Rhine, age 55, of North Liberty, to 120 months in prison for Conspiracy to Distribute Heroin announced United States Attorney Marc Krickbaum. Following his prison term, Rhine was ordered to serve five years of supervised release as well as pay $100 to the Crime Victims’ Fund.
This investigation began in 2018 involving narcotics trafficking between Johnson County and Chicago, Illinois. Law enforcement determined Rhine and his co-conspirator, Robert Rankins, Jr., obtained heroin in Chicago and sold it in Johnson County. Rhine admitted the conspiracy was responsible for selling more than 1,000 grams of heroin and he was supplying heroin to numerous individuals in the Iowa City/Coralville/North Liberty area.
This matter was investigated by the Johnson County Drug Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.