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Tuesday 22 December 2020
Madison Man Sentenced to 100 Months for Bank RobberiesRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Antonio Rowe, 31, Madison, Wisconsin, was sentenced on Friday, December 18 by U.S. District Judge William Conley to 100 months in federal prison for three bank robberies. Rowe pleaded guilty to these charges on July 28, 2020.
Over the course of two weeks in September 2019, Rowe robbed three banks in Madison. Rowe robbed the BMO Harris Bank on Sherman Avenue on September 10, 2019, the Associated Bank on East Towne Boulevard on September 13, 2019, and the UW Credit Union on Northport Drive on September 26, 2019. After the last robbery, Rowe fled in a vehicle with his co-defendant Ramon Howard. Rowe drove at high speeds through residential neighborhoods, striking other vehicles and eventually crashing on East Washington Avenue. Rowe and Howard both fled on foot but were apprehended by Madison police officers. Howard was in possession of the stolen cash.
In sentencing Rowe for these bank robberies, Judge Conley noted the severity of these offenses which ended only after a high-speed chase that endangered others in the community. Rowe said that he was acting out of impulse, but Judge Conley said that he was not taking responsibility for his actions. Judge Conley noted Rowe’s lengthy criminal history, opportunities to rehabilitate himself, and the fact that he committed these bank robberies while on state supervision. Rowe was also ordered to pay restitution.
Howard, 37, Portage, Wisconsin, pleaded guilty on June 25 to committing the Associated Bank and UW Credit Union robberies with Rowe and with robbing the Summit Credit Union on Thierer Road on September 16, 2019. He was sentenced by Judge Conley to 9 years in federal prison on September 18.
The charges against Rowe and Howard were the result of an investigation conducted by the Madison Police Department and Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
Montana U.s. Attorney’s Office Collects $7.3 Million in Civil and Criminal Actions in Fiscal Year 2020Read the Press Release
BILLINGS – Acting U.S. Attorney Leif M. Johnson announced today that the District of Montana collected $7,352,119 in criminal and civil actions in Fiscal Year 2020. Of this amount, the office collected $2,523,303 in criminal actions and $4,828,816 in civil actions.
“These funds come from seizing ill-gotten gains from criminals and from civil penalties and debt collections. The money helps to make crime victims whole and benefits the U.S. Treasury, which are priorities of this office. I want to thank our financial litigation unit, the civil and criminal divisions, and all of our employees for their hard work on behalf of victims of crime and government fraud,” Acting U.S. Attorney Johnson said.
Funds or payments collected in criminal judgments include cases involving Encore Services LLC, a Nevada company convicted in 2017 in a public corruption case to defraud the Chippewa Cree Tribe, and James and Timilynn Kisling, a Billings couple who owned a construction company and were convicted in 2019 of tax evasion for using the construction of a Billings mansion to avoid reporting profits.
Some of the funds collected in civil actions include a 2018 case settled with Kalispell Regional Healthcare System for alleged violations of the False Claims Act by paying physicians more than the fair market value.
The Justice Department collected more than $15.9 billion in civil and criminal actions in fiscal year (FY) 2020 ending Sept. 30, 2020. The $15,988,516,670 in collections in FY 2020 represents more than five times the approximately $3.2 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in 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 department’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.
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Justice Department Commends ASCAP and BMI's Launch of SONGVIEWRead the Press Release
On Dec. 21, 2020, The American Society of Composers (ASCAP) and Broadcast Music, Inc. (BMI), the two largest performance rights organizations (PROs) in the United States, announced the launch of SONGVIEW, a “comprehensive data platform that provides music users with an authoritative view of public performance copyright ownership and administration shares for the vast majority of music licensed in the United States.”[1]
According to the press release on ASCAP’s website, SONGVIEW is free to the public and allows ASCAP and BMI to display detailed, aggregated and reconciled ownership data for performing rights for more than 20 million musical works in their combined repertoires, including a breakdown of shares by ASCAP and BMI.
“The Antitrust Division commends ASCAP and BMI’s innovative collaboration in creating and releasing SONGVIEW,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “While more work needs to be done to improve the transparency of copyright ownership in musical works, the creation of this free platform is a positive step towards doing so and, importantly, may help to promote competition in the music licensing industry to the benefit of music licensees, artists, and American consumers.”
The promotion of competition in music licensing has been an important goal of the Antitrust Division. The division opened its ongoing review of its consent decrees with ASCAP and BMI to determine whether the decrees continue to serve American consumers and should be maintained in their current form, or whether they should be modified, or terminated. As part of its review, the division invited public comments from songwriters, publishers, licensees, and other industry stakeholders. The division received more than 800 public comments, which have been posted to the division’s Antitrust Consent Decree Review Public Comments 2019 page. On July 28th and 29th, 2020, the division also hosted a virtual public workshop on competition in the licensing of public performance rights in the music industry, which was attended by executive PROs, songwriters, music publishers, music licensees, legal and economic experts, and other industry stakeholders.
[1] See www.ascap.com/press/2020/12/12-21-Songview.
Justice Department Alleges Conditions at Lowell Correctional Institution Violate the ConstitutionRead the Press Release
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Florida today concluded that there is reasonable cause to believe that the conditions at Lowell Correctional Institution (Lowell) in Ocala, Florida, violate the Eighth Amendment of the Constitution. Specifically, the department concluded that there is reasonable cause to believe that Lowell fails to protect prisoners from sexual abuse by the facility’s staff.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the facility with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“Prison officials have a constitutional duty to protect prisoners from harm, including sexual abuse by staff,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Sexual abuse is never acceptable, and it is not part of any prisoner’s sentence. Our investigation found that staff sexually abused women incarcerated at Lowell and that these women remain at substantial risk of sexual abuse by staff. Our investigation also found that sexual abuse is frequent. This systemic misconduct means that many women suffer abuse. In addition, prisoners are discouraged from reporting sexual abuse and investigations of sexual abuse allegations are inadequate. This illegal and indecent treatment of women must end, and the Department of Justice will not tolerate it.”
“Sexual abuse cannot be tolerated anywhere and female prison inmates are particularly vulnerable during their confinement,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “This investigation represents a first step towards putting an end to sexual abuse at the Lowell Correctional Institution, and we look forward to working with the State of Florida in finding tangible, effective solutions.”
The Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for Middle District of Florida initiated the investigation in April 2018 under CRIPA, which authorizes the department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Alleges Conditions at Lowell Correctional Institution Violate the ConstitutionRead the Press Release
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Florida today concluded that there is reasonable cause to believe that the conditions at Lowell Correctional Institution (Lowell) in Ocala, Florida, violate the Eighth Amendment of the Constitution. Specifically, the department concluded that there is reasonable cause to believe that Lowell fails to protect prisoners from sexual abuse by the facility’s staff.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the facility with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“Prison officials have a constitutional duty to protect prisoners from harm, including sexual abuse by staff,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Sexual abuse is never acceptable, and it is not part of any prisoner’s sentence. Our investigation found that staff sexually abused women incarcerated at Lowell and that these women remain at substantial risk of sexual abuse by staff. Our investigation also found that sexual abuse is frequent. This systemic misconduct means that many women suffer abuse. In addition, prisoners are discouraged from reporting sexual abuse and investigations of sexual abuse allegations are inadequate. This illegal and indecent treatment of women must end, and the Department of Justice will not tolerate it.”
“Sexual abuse cannot be tolerated anywhere and female prison inmates are particularly vulnerable during their confinement,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “This investigation represents a first step towards putting an end to sexual abuse at the Lowell Correctional Institution, and we look forward to working with the State of Florida in finding tangible, effective solutions.”
The Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for Middle District of Florida initiated the investigation in April 2018 under CRIPA, which authorizes the department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Alleges Conditions at Iowa Institution for Individuals with Disabilities Violate the ConstitutionRead the Press Release
The Justice Department today concluded an investigation into conditions at the Glenwood Resource Center (Glenwood), an institution for individuals with intellectual disabilities operated by the State of Iowa in Glenwood, Iowa.
The Justice Department determined that there is reasonable cause to believe the conditions at Glenwood violate the Fourteenth Amendment of the U.S. Constitution and that these violations are pursuant to a pattern or practice of resistance to the full enjoyment of rights protected by the Fourteenth Amendment.
“Individuals with disabilities are not human guinea pigs, and like all persons, they should never be subject to bizarre and deviant pseudo-medical ‘experiments’ that injure them. Human experimentation is the hallmark of sick totalitarian states and has no place in the United States of America. The U.S. Constitution protects the right of all persons in this free country who are in the care of the state to be reasonably free from harm or the risk of harm,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We intend to work with the state to ensure that reforms are instituted at Glenwood so that these vulnerable individuals, who depend upon the state for their care, receive the care, support, and treatment that they deserve and to which they are entitled.”
The department found reasonable cause to believe that Iowa subjects Glenwood residents to unreasonable harm and risk of harm by subjecting residents to uncontrolled and unsupervised experimentation, inadequate physical and behavioral healthcare, and inadequate protection from harm, including deficient safety and oversight mechanisms. Specifically, the department concluded that the state violated Glenwood residents’ constitutional rights by conducting experiments on them without their consent. The department found that one experiment, which involved overhydrating residents, caused physical harm. In addition, the department concluded that Glenwood residents receive constitutionally inadequate physical health care. The department found that residents fail to receive timely or clinically appropriate medical assessments or treatment, at times resulting in severe physical harm. The department also concluded that Glenwood’s behavioral health care, including its use of restraints, violates residents’ due process rights. The department found that, from 2017 to 2019, Glenwood’s use of restraints increased by more than 300 percent. Finally, the department found severe deficiencies in the oversight and quality management at both Glenwood and the Iowa Department of Human Services and that these deficiencies fostered an environment in which the constitutional violations could and did routinely occur.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Department provided the State of Iowa with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
The Department of Justice’s comprehensive investigation involved review and analysis of documents, including policies and procedures, health care records, investigations, and oversight reports. The department also conducted tours of Glenwood and conducted interviews of current and former staff and management at Glenwood, Iowa’s Department of Human Services, and other stakeholders.
The department initiated the investigation in November 2019 under CRIPA, which authorizes the department to act to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run residential institutions. The department is continuing to investigate whether the state violates the rights of residents of Glenwood and Woodward Resource Centers under Title II of the Americans with Disabilities Act to receive services in the most integrated setting appropriate.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Iowa. Individuals with relevant information are encouraged to contact the department by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Jacksonville Man Sentenced to 36 Months in Federal Prison for Assisting in Preparation of False Tax ReturnRead the Press Release
RALEIGH, N.C. – Gene Hersholt Williamson II, was sentenced today to 36 months in prison for aiding and assisting in the preparation of a false tax return and was ordered to pay restitution in the amount of $637,000.00.
According to court documents, Gene Hersholt Williamson, II, 54, operated a tax return preparation business out of Jacksonville, North Carolina between 2012 and 2018. Williamson fraudulently inflated his clients’ claimed refunds by reporting fictitious Schedule C businesses on his clients’ returns. If clients had minimal income, Williamson created a fraudulent Schedule C business for them, reporting additional income in order to maximize the claimed earned income tax credit. If, however, clients had substantial wage income, Williamson created fraudulent businesses with significant expenses to reduce their income, qualifying them to receive earned income tax credit. Williamson received 10% of the refunds for his services. To conceal his involvement in the scheme, Williamson did not list himself as the paid return preparer on any returns he prepared.
In addition to preparing false tax returns for clients, Williamson filed false tax returns for himself for 2012-2017. In all Williamson’s misconduct resulted in a tax loss to the IRS of over $550,000.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Internal Revenue Service Criminal Investigations investigated the case and Assistant U.S. Attorney Susan B. Menzer and Tax Division Trial Attorney William Guappone prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-00133-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Indictment: Veteran Falsified Records of Travel for TreatmentRead the Press Release
WICHITA, KAN. – Edward Parks, 60, Liberal, Kan., is charged with one count of submitting false claims for travel reimbursement to the Department of Veterans Affairs and one count of making a false statement to investigators from the Department of Veterans Affairs – Office of Inspector General. The crimes are alleged to have occurred in 2019 in Sedgwick County, Kan.
The indictment alleges he falsely claimed he travelled to Wichita, Kan., from Liberal, Kan., for medical appointments, in order to be reimbursed under the Beneficiary Travel Program.
If convicted, he could face up to five years in federal prison and a fine up to $250,000 on each count. The Department of Veterans Affairs – Office of Inspector General investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
OTHER INDICTMENTS
Loren Olson, 68, Marquette, Kan., is charged with four counts of producing child pornography and one count of the sex trafficking of a minor. The crimes are alleged to have occurred in May, June and July 2020 in McPherson County, Kan.
Olson initially was charged by criminal complaint Dec. 9, 2020.
If convicted, Olson could face a penalty of not less than 15 years and not more than 30 years in federal prison on each production count, and not less than 10 years on the other count. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Alejandro Valerio Pineda, 45, Wichita, Kan., is charged with two counts of distributing methamphetamine. The crimes are alleged to have occurred during November and December 2020 in Wichita, Kan.
If convicted, he could face a penalty of not less than five years and not more than 40 years and a fine up to $5 million on each count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Troy Bong, 51, Wichita, is charged with three counts of possession with intent to distribute methamphetamine (counts 1, 4, 7), three counts of possession of a firearm in furtherance of drug trafficking (counts 2, 5, 8) and three counts of unlawful possession of a firearm by a felon (counts 3, 6, 9). The crimes are alleged to have occurred in 2020 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Count one: Up to 20 years in federal prison and a fine up to $1 million.
Counts 4, 7: Not more than 40 years and not less than five years and a fine up to $5 million.
Counts 2, 5 and 8: Not less than five years and a fine up to $250,000.
Counts 3, 6 and 9: Up to 10 years and a fine up to $250,000.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Treylis Presley, 31, Wichita, Kan., is charged with one count of unlawful possession of a firearm by a felon, one count of possession of cocaine and one count of possession of marijuana. The crimes are alleged to have occurred Sept. 4, 2020, in Sedgwick County, Kan.
If convicted, he could face a penalty of up to 10 years in federal prison and a fine up to $250,000 on the firearm charge, and up to a year and a fine up to $1,000 on each of the other two counts. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Molly Gordon is prosecuting.
Luis Contreras-Mata, 35, is charged with one count of unlawfully re-entering the United States after being deported. He was found Dec. 10, 2020, in Rawlins County, Kan.
If convicted, he could face a penalty of up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement – Enforcement and Removal Operations investigate. Assistant U.S. Attorney Lanny Welch is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Idaho Falls Man Sentenced to 5 Years for Knowingly and Fraudulently Concealing Assets in Bankruptcy ProceedingRead the Press Release
POCATELLO – Andrew Welch, 46, of Idaho Falls, was sentenced in U.S. District Court to five years in federal prison for concealment of assets, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Welch to pay a $25,000 fine, and to serve one year of supervised release following his prison sentence. Welch pleaded guilty to the charge on July 29, 2020. As part of the plea agreement, Welch also agreed to forfeit $25,000.
According to court records, Welch, a former pharmacist in Ketchum, Idaho, filed a voluntary Chapter 7 bankruptcy petition on April 3, 2014, after the Idaho State Board of Pharmacy revoked his pharmacist license. In the bankruptcy petition, signed under penalty of perjury, Welch listed significant debts and almost no assets. However, after persisting in the claim that he had no assets during the initial stages of the bankruptcy proceeding, the scheme to defraud unraveled when the U.S. Trustee Program and debtors discovered that Welch had an interest in significant unreported assets which he had placed under the control of close confidants.
In the end, Welch knowingly and fraudulently failed to disclose in the bankruptcy proceedings more than $250,000 in cash and securities which were held in an investment account in the name of another individual. Welch also knowingly and fraudulently failed to disclose his purchase of real property in Idaho Falls for $123,500 in January 2012, and the ensuing fraudulent transfer of the real property to a second individual, who did not provide Welch with any value for the real property.
In addition to concealing assets, Welch falsely testified under oath during the bankruptcy proceedings that he had no interest in the aforementioned investment account or real property, even though in truth Welch knew and was intentionally concealing such interests.
The five-year sentence imposed by the U.S. District Court was the statutory maximum for the crime of concealment of assets. The court imposed the sentence, in part, based on findings that Welch obstructed justice by concealing assets from the U.S. Probation Office after the guilty plea, and because Welch did not adequately accept responsibility for the offense.
“This significant sentence should deter individuals who intend to commit bankruptcy fraud,” said U.S. Attorney Davis. “When a bankruptcy debtor like Mr. Welch hides money and assets in bankruptcy, we will work vigorously with our law enforcement partners to ensure that bankruptcy offenders are held accountable. I commend the IRS for their efforts in this case. I also thank the U.S. Trustee’s Program for referring this important matter to our office for criminal prosecution.”
"Today’s sentencing of Andrew Welch for bankruptcy fraud is a win for those who are honest in their court dealings,” said Special Agent in Charge Andy Tsui, IRS Criminal Investigation, Denver Field Office. “The bankruptcy system is based on a debtor making a full disclosure of all assets and liabilities. When individuals use the bankruptcy system to evade their debt obligations to the government and their creditors, they are engaging in criminal activity. IRS Criminal Investigation is proud to work with our partners at the U.S. Attorney’s Office and lend financial expertise in these complex investigations."
This case was investigated by the Internal Revenue Service Criminal Investigation.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Huntington Man Sentenced to Federal Prison for Distributing Crack CocaineRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced that Maurice D. Grigsby, also known as “Ty”, 35, of Huntington, was sentenced to 15 months in federal prison for two counts of distribution of crack cocaine.
“We still come across crack dealers,” said United States Attorney Mike Stuart. “And we’re still prosecuting them and sending them to federal prison.”
Grigsby admitted that on March 28, 2019, at The Lighthouse Bar in Guyandotte, he distributed approximately 1.1 grams of crack cocaine to a confidential informant in a controlled buy. Grigsby also admitted that on April 24, 2019, he distributed approximately 1.08 grams of crack cocaine to a confidential informant in a controlled buy near 2575 5th Avenue in Huntington.
The Federal Bureau of Investigation (FBI), the FBI’s Transnational Organized Crime (TOC) West Task Force, the Cabell County Sheriff’s Office, and the West Virginia State Police conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe 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. 3:19-cr-00257.
Follow us on Twitter: SDWVNews and USAttyStuart
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Hancock County Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BANGOR, Maine: A Dedham man pleaded guilty in federal court today to conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney Halsey B. Frank announced.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Brian Saunders, 38, and his co-conspirators then distributed the drugs in Aroostook County and other parts of central and northern Maine.
Saunders faces up to 20 years in prison and a fine of up to $1,000,000. He also faces between three years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The U.S. Drug Enforcement Administration, Homeland Security Investigations and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Goldsboro Woman Sentenced to More Than 21 Years for Methamphetamine DistributionRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that yesterday in federal court, United States District Judge James C. Dever III sentenced Ana Duarte-Pineda, 42, of Goldsboro, North Carolina to 262 months imprisonment, followed by 5 years of supervised release.
Duarte-Pineda was named in a Criminal Information filed on March 11, 2020 charging her with Distribution of Fifty (50) Grams or More of Methamphetamine. On December 21, 2020, Duarte-Pineda pled guilty to that charge.
According to the investigation, Duarte-Pineda and her codefendant, Augustin Gomez-Rojas, who was previously sentenced to three hundred (300) months, were distributing crystal methamphetamine in Princeton, North Carolina. Duarte-Pineda had her fifteen (15) year old daughter with her in the car when she and Gomez-Rojas sold methamphetamine to a confidential informant. Duarte-Pineda and Augustin Gomez-Rojas resided in Goldsboro, North Carolina.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms & Explosives, the Johnston County Sheriff’s Office, Raleigh Police Department and the Wayne County Sheriff’s Office conducted the investigation in this case. Assistant United States Attorney Kelly L. Sandling represented the government.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00308-D-2.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Video Store Owner Sentenced to Five Years for Selling Counterfeit DVDsRead the Press Release
BANGOR, Maine: A Mattawamkeag man was sentenced today in federal court for mail fraud and copyright infringement stemming from his online sales of counterfeit DVDs, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Douglas Gordon, 53, to five years in prison and two years of supervised release. He was also ordered to pay restitution to victims defrauded in the scheme. A jury found Gordon guilty on October 29, 2019, after a seven-day trial.
According to evidence presented at trial, Gordon, the former owner of a chain of video rental stores in eastern Maine, operated three websites from which he made more than $638,000 in sales of over 48,000 counterfeit copies of copyright-protected motion pictures. Representatives of MGM, CBS, Disney, Mercury Pictures and other copyright owners testified that Gordon did not have permission to reproduce and distribute the movies. A senior investigator employed by the Motion Picture Association identified the DVDs as counterfeit.
Based on undercover purchases made from the three websites, execution of search warrants and forensic analysis of computers, investigators from Homeland Security Investigations (HSI) identified Gordon as the operator of the online businesses. A series of customers testified at trial that they expected based on website advertisements to receive authorized DVD movies with cover art and a plastic case, but instead received a paper envelope with nothing more than a burned disc with a laser-etched movie title. Several of Gordon’s former video store employees also provided evidence of his unlawful reproduction.
In imposing sentence, Judge Woodcock said he considered the “thousands of victims hoodwinked” when they made the online sales, as well as the scores of copyright holders harmed in the scheme.
HSI investigated the case, with assistance from the Maine Attorney General’s Office, the Brewer Police Department, the U.S. Postal Inspection Service and the Better Business Bureau.
Former United States Post Office Letter Carrier Pleads Guilty to Federal Charge for Stealing MailRead the Press Release
Baltimore, Maryland - Daniyelle Barnes, age 27, of Randallstown Maryland, pleaded guilty on December 21, 2020, to federal charges of mail theft by an employee. Barnes was employed by the United States Post Office (USPS) as a Letter Carrier at the Randallstown Post Office. Barnes admitted stealing mail, including credit cards contained within mail pieces.
The guilty plea was announced by the United States Attorney for the District of Maryland, Robert K. Hur; Special Agent in Charge Imari R. Niles of the U.S. Postal Service Office of Inspector General; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the plea agreement, in July 2019, Baltimore County Police Department (BCPD) officers recovered more than 12 genuine credit cards from a suspect during a traffic stop. The 12 credit cards were embossed with the names of Randallstown residents who resided along Barnes’s mail route. On July 25, 2019, investigators executed a search warrant at an apartment located in Owings Mills, Maryland that was not associated with Barnes and recovered counterfeit identification documents, at least 12 additional stolen credit/debit cards issued to individuals not residing at the residence, mail and financial correspondence addressed to real persons not residing at the residence, and several cell phones and other electronic devices. Six of the credit/debit cards were in the names of the Randallstown residents on Barnes’s mail delivery route and came from stolen mail.
On December 18, 2019, law enforcement conducted an operation to investigate whether Barnes was stealing mail from her mail route by having two sealed, identifiable mail pieces from a bank, which contained credit cards issued to fictitious persons, placed among the mail that Barnes was supposed to deliver that day. These identifiable mail pieces featured addresses that were outside of Barnes’s route, and if Barnes followed proper protocols, would not be taken on her route. Instead, during law enforcement surveillance of Barnes, she was seen handling the “bait” mail pieces, feeling for a potential credit or debit card inside the envelope, and then placing the two identifiable mail pieces inside her letter carrier case. Later, law enforcement saw Barnes rubber-band together approximately 10 mail pieces, including the two pieces of bait mail. Barnes concealed this bundle in the back of a letter tray that contained mail pieces for her route, left the Post Office building and placed items into her assigned work vehicle. Barnes briefly stopped by her personal vehicle before returning to her work vehicle and heading out on her mail route. When Barnes returned to the Post Office at about 4:00 p.m., law enforcement officials saw her unload a number of items, including bags, into the front passenger seat of her personal vehicle. Barnes then went back into the building and sorted a number of mail pieces. Barnes did not place the two identifiable mail pieces into the proper area for missent letters.
Law enforcement interviewed Barnes after advising her of her rights. Barnes admitted to stealing mail and giving it to another person, whose full identity she claimed not to know. She stated that she provided credit/debit card mail pieces to this person at least 10 to 12 times beginning in June 2019. Barnes consented to a search of her personal vehicle and law enforcement discovered numerous pieces of unopened, undelivered mail, including the two identifiable bait mail pieces and other mail addressed to real persons residing in Randallstown.
Law enforcement obtained records from financial institutions corresponding to the credit cards recovered during the investigation that were issued to persons on Barnes’s mail route. Those records indicated a total loss amount of $4,198.74 and a further attempted loss amount of $2,292.11 associated with those accounts. As part of her plea agreement, Barnes will be required to pay restitution in the full amount of the actual loss, which the parties agree is at least $4,198.74.
Barnes faces a maximum sentence of five years in federal prison for mail theft by a USPS employee. U.S. District Judge George L. Russell, III has scheduled sentencing for February 25, 2021 at 2:30 p.m.
United States Attorney Robert K. Hur commended the USPS Office of Inspector General and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Daniel A. Loveland, Jr. and Tamera L. Fine, who are prosecuting the case.
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Former New York State Corrections Officer Going to Prison for Five Years on Child Pornography ConvictionRead 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 Joseph Chojnacki, 27, of Cheektowaga, NY, who was convicted of possession of child pornography involving a prepubescent minor, was sentenced to serve 60 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Douglas A. C. Penrose, who handled the case, stated that after receiving a tip of suspected child pornography from the National Center for Missing and Exploited Children, Homeland Security Investigations traced the suspected child pornography to the defendant, a New York State Corrections Officer.
On May 9, 2019, a federal search warrant was executed at Chojnacki’s Louis Street residence. Investigators seized various computers, electronic devices, and electronic media. A total of approximately 3,814 images and 138 videos of child pornography were discovered on the defendant's electronic devices. Some of the images depicted prepubescent minors less than 12 years old, as well as sexual abuse or exploitation of an infant or toddler.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Former Clarence Center Soccer Trainer Going to Prison Following Child Pornography ConvictionRead 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 Shelby Garigen, 42, of Clarence Center, NY, who was convicted of access with intent to view child pornography, was sentenced to serve 37 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Charles M. Kruly and Aaron J. Mango, who handled the case, stated that between November 2018 and February 2019, the defendant communicated with two minors (Victim 1 and Victim 2) using the Snapchat application. During Garigen’s communications with Victim 1, she received and viewed approximately three sexually explicit images of Victim 1. During the defendant’s communications with Victim 2, she received and viewed approximately 10 sexually explicit images of Victim 2. Garigen knew that both victims were minors.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Stephen Belongia, and the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski. Additional assistance was provided by the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
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Felon Pleads Guilty to Possessing A Firearm and AmmunitionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Javarus Payne, 34, of Rochester, NY, pleaded guilty today before U.S. District Judge David G. Larimer to being a felon in possession of a firearm and ammunition, which carries a maximum penalty of 10 years in prison, and a fine of $250,000 or both.
Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that the defendant was arrested on August 29, 2020, after officers from the Rochester Police Department and troopers from the New York State Police stopped a car defendant was driving on East Main Street in Rochester for committing several traffic infractions. As officers spoke with Payne, they smelled alcohol coming from inside the car, and also noticed a black semiautomatic handgun on the driver’s floor. The officers seized the loaded handgun, which had been reported stolen in Pennsylvania.
Payne was convicted in federal court in February 2012 of possessing a firearm in furtherance of a drug trafficking crime, and was under the supervision of the United States Probation Department at the time of this arrest. As a result, he is legally prohibited from possessing firearms and ammunition.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; the New York State Police, under the direction of Major Barry Chase; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for March 23, 2021, at 2:00 p.m. before Judge Larimer.
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Federal prosecutors experience increased workloads relating to child pornographyRead the Press Release
ST. LOUIS, MO—Federal prosecutors, within the Eastern District of Missouri, are working an increased amount of cases involving child pornography.
The U.S. Attorney’s Office have indicted 62 defendants who abused children in some way. Those defendants represent a 16% increase from last year.
Prosecutors from the U.S. Attorney’s Office, including those at the field office in Cape Girardeau, handled cases ranging from production of child pornography to human trafficking.
“It is very rewarding to be able to help the most vulnerable victims by being able to prosecute those who prey upon them,” said Jeff Jensen, U.S. Attorney for the Eastern District of Missouri.
In 2019, technology firms flagged more than 45 million photos and videos as child sexual abuse, according to an investigation by The New York Times. That number more than doubled in one year. The National Center for Missing and Exploited Children received a record 18 million tips to its hotline last year. By comparison, the tip line received a total of 565,000 calls during its first 10 years, between 1998 and 2008.
“Our office strives to protect children from sexual exploitation through federal prosecutions, but we need everyone to be vigilant in protecting our children. Please monitor your children’s internet usage so they don’t become victims of those who wish to exploit them,” added Jensen.
District Court Judges have sentenced 28 defendants, this year, to an average of 111 months which means those predators will be unable to harm children for nearly 10 years. The judges have also ordered more than $1,000,000 in restitution.
“Child predators are everywhere. They are men and women, young and old, coming from all races, classes and occupations. Technology has made accessing and grooming children easier than ever,” said Sarah Pingsterhaus, a Victim Witness Specialist for the Eastern District of Missouri.
Members of the Victim Witness Unit stress it is vital to discuss internet safety and encourage parents to monitor their child’s online activity.
“If you notice your child becoming secretive while online, turning off the computer screen when you enter the room, becoming obsessive about being online and angry when they are not allowed or disengaging from their normal circle of friends, it is time to start asking questions,” added Pingsterhaus.
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Ensley Man Indicted for Four Armed RobberiesRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury indicted an Ensley man in connection with four armed robberies, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Explosives, and Firearms (ATF) Special Agent in Charge Mickey French.
An eight-count indictment filed in U.S. District Court charges Eric Tyree Blanding, 46, with four counts of Hobbs Act Robbery, three counts of carrying and brandishing a firearm during and in relation to a crime of violence, and one count of being a felon in possession of a firearm.
According to the indictment, Blanding committed four robberies at three different Family Dollar stores in Birmingham by brandishing a firearm at store employees and taking cash and other property. The robberies occurred in May and June of 2019.
The Hobbs Act prohibits the obstruction of commerce by robbery and carries a maximum penalty of up to 20 years in prison and a $250,000 fine.
Brandishing a firearm during and in relation to a crime of violence carries a mandatory penalty of not less than 7 years in prison.
Being a felon in possession of a firearm carries a maximum penalty of 10 years in prison.
ATF investigated the case. Assistant U.S. Attorney Kristy Peoples is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Eagle Butte Man Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on December 21, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Arlyn Keckler, age 39, was sentenced to 48 months in federal prison, followed by four years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Keckler was indicted by a federal grand jury on February 13, 2019. He pled guilty on October 9, 2020.
The conviction stemmed from a conspiracy beginning in at least May 2015, wherein Keckler was involved with others to distribute methamphetamine in and around the Cheyenne River Sioux Reservation in South Dakota. Keckler distributed 200 grams of methamphetamine during the course of the conspiracy.
This case was investigated by the Federal Bureau of Investigation, the Cheyenne River Sioux Tribe Law Enforcement Services, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Keckler was immediately remanded to the custody of the U.S. Marshals Service.
Detroit Man Sentenced to Federal Prison for Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced that Darelle Devon Boynton, 35, of Detroit, was sentenced to 70 months in federal prison for distribution of heroin and possession of a firearm by a convicted felon.
“This dangerous Detroit drug dealer will be spending nearly six years in federal prison,” said United States Attorney Mike Stuart. “Boynton, who has multiple felony convictions in Michigan, won’t be jeopardizing public safety in Huntington or Detroit any time soon.”
Boynton previously pled guilty and admitted that on January 30, 2020, he sold 8.47 grams of heroin to a person working as a confidential informant. The sale took place in a car outside 2005 10th Avenue in Huntington, West Virginia. Boynton also admitted that on February 13, 2020, he possessed a Glock Model 19, 9mm pistol while inside a bar called “Tamika’s,” formerly known as the “Copa,” located at 2005 10th Avenue in Huntington. Boynton has prior felony convictions in Michigan including armed robbery, possession of a firearm by a felon, and fleeing from a police officer. Because of those convictions, he was prohibited from possessing the firearm. Police searched Boynton’s house located at 199 Davis Street in Huntington and found approximately 35.13 grams of heroin in his bedroom which he intended to sell. Boynton also sold approximately 1.75 grams of heroin for $100 to the same confidential informant on January 23, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Greg McVey handled the prosecution.
This case was prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00038.
Follow us on Twitter: SDWVNews and USAttyStuart
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Department of Justice Files Nationwide Lawsuit Against Walmart Inc. for Controlled Substances Act ViolationsRead the Press Release
In a civil complaint filed today, the Department of Justice has alleged that Walmart Inc. unlawfully dispensed controlled substances from pharmacies it operated across the country and unlawfully distributed controlled substances to those pharmacies throughout the height of the prescription opioid crisis.
The complaint alleges that this unlawful conduct resulted in hundreds of thousands of violations of the Controlled Substances Act (CSA). The Justice Department seeks civil penalties, which could total in the billions of dollars, and injunctive relief.
“It has been a priority of this administration to hold accountable those responsible for the prescription opioid crisis. As one of the largest pharmacy chains and wholesale drug distributors in the country, Walmart had the responsibility and the means to help prevent the diversion of prescription opioids,” said Jeffrey Bossert Clark, Acting Assistant Attorney General of the Civil Division. “Instead, for years, it did the opposite — filling thousands of invalid prescriptions at its pharmacies and failing to report suspicious orders of opioids and other drugs placed by those pharmacies. This unlawful conduct contributed to the epidemic of opioid abuse throughout the United States. Today’s filing represents an important step in the effort to hold Walmart accountable for such conduct.”
“We entrust distributors and dispensers with the responsibility to ensure controlled substances do not fall into the wrong hands,” said Drug Enforcement Administration (DEA) Acting Administrator Timothy Shea. “When processes to safeguard against drug diversion are violated or ignored, or when pharmacies routinely fill illegitimate prescriptions, we will hold accountable anyone responsible, including Walmart. Too many lives have been lost because of oversight failures and those entrusted with responsibility turning a blind eye.”
The result of a multi-year investigation by the department’s Prescription Interdiction & Litigation (PIL) Task Force, the complaint filed in the U.S. District Court for the District of Delaware alleges that Walmart violated the CSA in multiple ways as the operator of its pharmacies and wholesale drug distribution centers. The complaint alleges that, as the operator of its pharmacies, Walmart knowingly filled thousands of controlled substance prescriptions that were not issued for legitimate medical purposes or in the usual course of medical practice, and that it filled prescriptions outside the ordinary course of pharmacy practice. The complaint also alleges that, as the operator of its distribution centers, which ceased distributing controlled substances in 2018, Walmart received hundreds of thousands of suspicious orders that it failed to report as required to by the DEA. Together, the complaint alleges, these actions helped to fuel the prescription opioid crisis.
If Walmart is found liable for violating the CSA, it could face civil penalties of up to $67,627 for each unlawful prescription filled and $15,691 for each suspicious order not reported. The court also may award injunctive relief to prevent Walmart from committing further CSA violations.
“For years, Walmart failed to meet its obligations in distributing and dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Daniel J. Feith of the Civil Division’s Consumer Protection Branch. “We look forward to advancing this case with our DOJ partners.”
“Today’s complaint is the culmination of a painstaking investigation by my office and our Department of Justice colleagues that uncovered years of unlawful conduct that did untold damage to communities around the country, including here in Colorado,” said U.S. Attorney for the District of Colorado Jason R. Dunn. “We look forward to pursuing justice and holding the company accountable for its conduct.”
“The opioid crisis has exacted a catastrophic human toll upon the residents of our district and upon our country,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “National pharmacy chains must meet their legal obligations when dispensing and distributing these powerful medications. The filing of this complaint in collaboration with the Department of Justice and other United States Attorneys’ Offices demonstrates our firm commitment to enforcing these critical legal requirements.”
“As a pharmacy that fills prescriptions for controlled substances, Walmart has an obligation to fill only those prescriptions that are legitimate,” said Acting U.S. Attorney for the Eastern District of New York Seth D. DuCharme. “As a wholesale drug distributor, Walmart also had an obligation to notify DEA of suspicious orders of controlled substances. Walmart failed to comply with both of its obligations, and thereby failed in its responsibility to prevent the diversion of controlled substances.”
“Opioid addiction and abuse have devastated communities across our nation, and eastern North Carolina is no exception,” said U.S. Attorney for the Eastern District of North Carolina Robert Higdon Jr. “Walmart’s failures only made these problems worse. For example, our office prosecuted a physician for illegal opioid distribution. A jury convicted him just last year, and he is currently serving a twenty-year prison sentence. As it turns out, that physician expressly directed patients to Walmart to have their opioid prescriptions filled. Walmart’s own pharmacists reported concerns about the doctor up the corporate chain, but for years, Walmart did nothing—except continue to dispense thousands of opioid pills. My office will continue to work with others in the Department to ensure that Walmart — and all others who had a role to play in this ongoing opioid crisis — are held responsible.”
“The misuse of prescription painkillers is a public health crisis,” said U.S. Attorney for the District of Delaware David C. Weiss. “DEA registrants must understand that licensure is a privilege, not a right. Whenever that privilege is abused, whether by the smallest local provider or the largest national chain, our office and the Department of Justice will take all necessary steps to enforce the law and keep the public safe.”
The claims made in the complaint are allegations that United States must prove if the case proceeds to trial.
The United States is represented in the filed action by attorneys from the Department of Justice Civil Division’s Consumer Protection Branch and from the U.S. Attorneys’ Offices for the District of Colorado, District of Delaware, Eastern District of North Carolina, Eastern District of New York, and Middle District of Florida. The DEA’s Dallas Field Division and Diversion Control Operations personnel investigated the case. The DEA’s Office of Chief Counsel and the Criminal Division’s Narcotic and Dangerous Drug Section provided substantial support.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For information about the U.S. Attorneys’ Offices, visit: District of Colorado, https://www.justice.gov/usao-co; District of Delaware https://www.justice.gov/usao-de; Eastern District of North Carolina https://www.justice.gov/usao-ednc; Eastern District of New York https://www.justice.gov/usao-edny; Middle District of Florida https://www.justice.gov/usao-mdfl. Information about the DEA is available at www.dea.gov.
Department of Justice Files Nationwide Lawsuit Against Walmart Inc. for Controlled Substances Act ViolationsRead the Press Release
In a civil complaint filed today, the Department of Justice has alleged that Walmart Inc. unlawfully dispensed controlled substances from pharmacies it operated across the country and unlawfully distributed controlled substances to those pharmacies throughout the height of the prescription opioid crisis.
The complaint alleges that this unlawful conduct resulted in hundreds of thousands of violations of the Controlled Substances Act (CSA). The Justice Department seeks civil penalties, which could total in the billions of dollars, and injunctive relief.
“It has been a priority of this administration to hold accountable those responsible for the prescription opioid crisis. As one of the largest pharmacy chains and wholesale drug distributors in the country, Walmart had the responsibility and the means to help prevent the diversion of prescription opioids,” said Jeffrey Bossert Clark, Acting Assistant Attorney General of the Civil Division. “Instead, for years, it did the opposite — filling thousands of invalid prescriptions at its pharmacies and failing to report suspicious orders of opioids and other drugs placed by those pharmacies. This unlawful conduct contributed to the epidemic of opioid abuse throughout the United States. Today’s filing represents an important step in the effort to hold Walmart accountable for such conduct.”
“We entrust distributors and dispensers with the responsibility to ensure controlled substances do not fall into the wrong hands,” said Drug Enforcement Administration (DEA) Acting Administrator Timothy Shea. “When processes to safeguard against drug diversion are violated or ignored, or when pharmacies routinely fill illegitimate prescriptions, we will hold accountable anyone responsible, including Walmart. Too many lives have been lost because of oversight failures and those entrusted with responsibility turning a blind eye.”
The result of a multi-year investigation by the department’s Prescription Interdiction & Litigation (PIL) Task Force, the complaint filed in the U.S. District Court for the District of Delaware alleges that Walmart violated the CSA in multiple ways as the operator of its pharmacies and wholesale drug distribution centers. The complaint alleges that, as the operator of its pharmacies, Walmart knowingly filled thousands of controlled substance prescriptions that were not issued for legitimate medical purposes or in the usual course of medical practice, and that it filled prescriptions outside the ordinary course of pharmacy practice. The complaint also alleges that, as the operator of its distribution centers, which ceased distributing controlled substances in 2018, Walmart received hundreds of thousands of suspicious orders that it failed to report as required to by the DEA. Together, the complaint alleges, these actions helped to fuel the prescription opioid crisis.
If Walmart is found liable for violating the CSA, it could face civil penalties of up to $67,627 for each unlawful prescription filled and $15,691 for each suspicious order not reported. The court also may award injunctive relief to prevent Walmart from committing further CSA violations.
“For years, Walmart failed to meet its obligations in distributing and dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Daniel J. Feith of the Civil Division’s Consumer Protection Branch. “We look forward to advancing this case with our DOJ partners.”
“The opioid crisis has exacted a catastrophic human toll upon the residents of our district and upon our country,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “National pharmacy chains must meet their legal obligations when dispensing and distributing these powerful medications. The filing of this complaint in collaboration with the Department of Justice and other United States Attorneys’ Offices demonstrates our firm commitment to enforcing these critical legal requirements.”
“As a pharmacy that fills prescriptions for controlled substances, Walmart has an obligation to fill only those prescriptions that are legitimate,” said Acting U.S. Attorney for the Eastern District of New York Seth D. DuCharme. “As a wholesale drug distributor, Walmart also had an obligation to notify DEA of suspicious orders of controlled substances. Walmart failed to comply with both of its obligations, and thereby failed in its responsibility to prevent the diversion of controlled substances.”
“Today’s complaint is the culmination of a painstaking investigation by my office and our Department of Justice colleagues that uncovered years of unlawful conduct that did untold damage to communities around the country, including here in Colorado,” said U.S. Attorney for the District of Colorado Jason R. Dunn. “We look forward to pursuing justice and holding the company accountable for its conduct.”
“Opioid addiction and abuse have devastated communities across our nation, and eastern North Carolina is no exception,” said U.S. Attorney for the Eastern District of North Carolina Robert Higdon Jr. “Walmart’s failures only made these problems worse. For example, our office prosecuted a physician for illegal opioid distribution. A jury convicted him just last year, and he is currently serving a twenty-year prison sentence. As it turns out, that physician expressly directed patients to Walmart to have their opioid prescriptions filled. Walmart’s own pharmacists reported concerns about the doctor up the corporate chain, but for years, Walmart did nothing—except continue to dispense thousands of opioid pills. My office will continue to work with others in the Department to ensure that Walmart — and all others who had a role to play in this ongoing opioid crisis — are held responsible.”
“The misuse of prescription painkillers is a public health crisis,” said U.S. Attorney for the District of Delaware David C. Weiss. “DEA registrants must understand that licensure is a privilege, not a right. Whenever that privilege is abused, whether by the smallest local provider or the largest national chain, our office and the Department of Justice will take all necessary steps to enforce the law and keep the public safe.”
The claims made in the complaint are allegations that United States must prove if the case proceeds to trial.
The United States is represented in the filed action by attorneys from the Department of Justice Civil Division’s Consumer Protection Branch and from the U.S. Attorneys’ Offices for the District of Colorado, District of Delaware, Eastern District of North Carolina, Eastern District of New York, and Middle District of Florida. The DEA’s Dallas Field Division and Diversion Control Operations personnel investigated the case. The DEA’s Office of Chief Counsel and the Criminal Division’s Narcotic and Dangerous Drug Section provided substantial support.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For information about the U.S. Attorneys’ Offices, visit: District of Colorado, https://www.justice.gov/usao-co; District of Delaware https://www.justice.gov/usao-de; Eastern District of North Carolina https://www.justice.gov/usao-ednc; Eastern District of New York https://www.justice.gov/usao-edny; Middle District of Florida https://www.justice.gov/usao-mdfl. Information about the DEA is available at www.dea.gov.
Department of Justice Files Nationwide Lawsuit Against Walmart Inc. for Controlled Substances Act ViolationsRead the Press Release
In a civil complaint filed today, the Department of Justice has alleged that Walmart Inc. unlawfully dispensed controlled substances from pharmacies it operated across the country and unlawfully distributed controlled substances to those pharmacies throughout the height of the prescription opioid crisis.
The complaint alleges that this unlawful conduct resulted in hundreds of thousands of violations of the Controlled Substances Act (CSA). The Justice Department seeks civil penalties, which could total in the billions of dollars, and injunctive relief.
“It has been a priority of this administration to hold accountable those responsible for the prescription opioid crisis. As one of the largest pharmacy chains and wholesale drug distributors in the country, Walmart had the responsibility and the means to help prevent the diversion of prescription opioids,” said Jeffrey Bossert Clark, Acting Assistant Attorney General of the Civil Division. “Instead, for years, it did the opposite — filling thousands of invalid prescriptions at its pharmacies and failing to report suspicious orders of opioids and other drugs placed by those pharmacies. This unlawful conduct contributed to the epidemic of opioid abuse throughout the United States. Today’s filing represents an important step in the effort to hold Walmart accountable for such conduct.”
“We entrust distributors and dispensers with the responsibility to ensure controlled substances do not fall into the wrong hands,” said Drug Enforcement Administration (DEA) Acting Administrator Timothy Shea. “When processes to safeguard against drug diversion are violated or ignored, or when pharmacies routinely fill illegitimate prescriptions, we will hold accountable anyone responsible, including Walmart. Too many lives have been lost because of oversight failures and those entrusted with responsibility turning a blind eye.”
The result of a multi-year investigation by the department’s Prescription Interdiction & Litigation (PIL) Task Force, the complaint filed in the U.S. District Court for the District of Delaware alleges that Walmart violated the CSA in multiple ways as the operator of its pharmacies and wholesale drug distribution centers. The complaint alleges that, as the operator of its pharmacies, Walmart knowingly filled thousands of controlled substance prescriptions that were not issued for legitimate medical purposes or in the usual course of medical practice, and that it filled prescriptions outside the ordinary course of pharmacy practice. The complaint also alleges that, as the operator of its distribution centers, which ceased distributing controlled substances in 2018, Walmart received hundreds of thousands of suspicious orders that it failed to report as required to by the DEA. Together, the complaint alleges, these actions helped to fuel the prescription opioid crisis.
If Walmart is found liable for violating the CSA, it could face civil penalties of up to $67,627 for each unlawful prescription filled and $15,691 for each suspicious order not reported. The court also may award injunctive relief to prevent Walmart from committing further CSA violations.
“For years, Walmart failed to meet its obligations in distributing and dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Daniel J. Feith of the Civil Division’s Consumer Protection Branch. “We look forward to advancing this case with our DOJ partners.”
“The opioid crisis has exacted a catastrophic human toll upon the residents of our district and upon our country,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “National pharmacy chains must meet their legal obligations when dispensing and distributing these powerful medications. The filing of this complaint in collaboration with the Department of Justice and other United States Attorneys’ Offices demonstrates our firm commitment to enforcing these critical legal requirements.”
“As a pharmacy that fills prescriptions for controlled substances, Walmart has an obligation to fill only those prescriptions that are legitimate,” said Acting U.S. Attorney for the Eastern District of New York Seth D. DuCharme. “As a wholesale drug distributor, Walmart also had an obligation to notify DEA of suspicious orders of controlled substances. Walmart failed to comply with both of its obligations, and thereby failed in its responsibility to prevent the diversion of controlled substances.”
“Today’s complaint is the culmination of a painstaking investigation by my office and our Department of Justice colleagues that uncovered years of unlawful conduct that did untold damage to communities around the country, including here in Colorado,” said U.S. Attorney for the District of Colorado Jason R. Dunn. “We look forward to pursuing justice and holding the company accountable for its conduct.”
“Opioid addiction and abuse have devastated communities across our nation, and eastern North Carolina is no exception,” said U.S. Attorney for the Eastern District of North Carolina Robert Higdon Jr. “Walmart’s failures only made these problems worse. For example, our office prosecuted a physician for illegal opioid distribution. A jury convicted him just last year, and he is currently serving a twenty-year prison sentence. As it turns out, that physician expressly directed patients to Walmart to have their opioid prescriptions filled. Walmart’s own pharmacists reported concerns about the doctor up the corporate chain, but for years, Walmart did nothing—except continue to dispense thousands of opioid pills. My office will continue to work with others in the Department to ensure that Walmart — and all others who had a role to play in this ongoing opioid crisis — are held responsible.”
“The misuse of prescription painkillers is a public health crisis,” said U.S. Attorney for the District of Delaware David C. Weiss. “DEA registrants must understand that licensure is a privilege, not a right. Whenever that privilege is abused, whether by the smallest local provider or the largest national chain, our office and the Department of Justice will take all necessary steps to enforce the law and keep the public safe.”
The claims made in the complaint are allegations that United States must prove if the case proceeds to trial.
The United States is represented in the filed action by attorneys from the Department of Justice Civil Division’s Consumer Protection Branch and from the U.S. Attorneys’ Offices for the District of Colorado, District of Delaware, Eastern District of North Carolina, Eastern District of New York, and Middle District of Florida. The DEA’s Dallas Field Division and Diversion Control Operations personnel investigated the case. The DEA’s Office of Chief Counsel and the Criminal Division’s Narcotic and Dangerous Drug Section provided substantial support.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For information about the U.S. Attorneys’ Offices, visit: District of Colorado, https://www.justice.gov/usao-co; District of Delaware https://www.justice.gov/usao-de; Eastern District of North Carolina https://www.justice.gov/usao-ednc; Eastern District of New York https://www.justice.gov/usao-edny; Middle District of Florida https://www.justice.gov/usao-mdfl. Information about the DEA is available at www.dea.gov.
Download 2020.12.22 walmart complaint finalComptroller Pleads Guilty to Embezzling from Manhattan Financial Publishing CompanyRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that ERIC IAN WHITEHEAD pled guilty to wire fraud for his role in a years-long scheme to embezzle approximately $1.3 million from a financial publishing company (the “Company”), where he was then employed as comptroller. The plea was entered in front of U.S. District Judge Ronnie Abrams.
Acting U.S. Attorney Audrey Strauss said: “As he admitted in court today, Eric Ian Whitehead exploited his position of trust as comptroller of a publishing company to embezzle more than $1 million from the company. Now he awaits sentencing for his admitted theft.”
According to the Information and other filings and statements at public court proceedings in the case:
From at least in or around 2015 through in or around 2020, WHITEHEAD used wire transfers and cash deposits from the victim Company to benefit himself without authorization from the Company. Specifically, WHITHEAD used Company assets to pay for personal credit card expenses, overpay personal credit cards to receive cash balance refunds, write checks to cash for deposit into personal bank accounts, and purchase precious metals to sell for his own profit. WHITEHEAD consistently embezzled Company funds from in or around 2015 through in or around 2020, for a total loss amount of approximately $1.3 million.
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WHITEHEAD, 53, of Smithtown, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. WHITEHEAD will be sentenced by Judge Abrams on April 9, 2021.
Ms. Strauss praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Mitzi S. Steiner is in charge of the prosecution.
Canadian Man Extradited from Spain to Face Charges for Massive Psychic Mail Fraud SchemeRead the Press Release
A Canadian citizen accused of operating a decades-long psychic mail fraud scheme was extradited to the United States and made his initial appearance today in federal court in Central Islip, New York, the Department of Justice and the U.S. Postal Inspection Service announced.
On Oct. 25, 2018, a grand jury in the Eastern District of New York indicted Patrice Runner, 54, on charges of mail and wire fraud, conspiracy to commit mail and wire fraud, and conspiracy to commit money laundering. Runner was arrested in Ibiza, Spain, by officers of the Spanish National Police in December 2018, based on the U.S. indictment. Following extradition proceedings, the Spanish government released Runner to the custody of U.S. Postal Inspectors on Dec. 21, 2020.
“The Department of Justice’s Consumer Protection Branch is committed to investigating and prosecuting transnational criminal schemes that target elderly and vulnerable Americans,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “As this case demonstrates, we will work with our law enforcement partners in the United States and around the world to bring to justice criminals who target Americans through mail fraud and other schemes. We thank the Spanish National Police for their efforts to apprehend Runner and ensure that he sees justice in U.S. courts.”
According to the charges, from 1994 through November 2014, Runner’s mail fraud scheme defrauded over one million victims in the United States of over $180 million. The scheme allegedly involved sending millions of U.S. consumers, many elderly and vulnerable, letters purporting to be from two well-known French psychics, promising that the recipient had the opportunity to achieve great wealth and happiness with the psychic’s assistance in exchange for payment of a fee. The letters also frequently stated that a psychic had seen a personalized vision regarding the recipient of the letter, when in fact the scheme sent nearly identical letters to tens of thousands of victims each week.
Runner and his co-conspirators obtained the names of elderly and vulnerable victims by renting and trading mailing lists with other mail fraud schemes. When a victim responded to one letter, Runner and his co-conspirators sent dozens of additional letters to the victim. Each of these additional letters also appeared to be a personalized letter from a psychic and requested additional money from the victim. In reality, the psychics had no role in sending the letters, did not receive responses from the victims, and did not send the additional letters after victims paid money.
“Fraud scams have exploited the mail to victimize vulnerable Americans for over a century,” said Inspector-in-Charge Damon Wood of the U.S. Postal Inspection Service Philadelphia Division. “As these crimes become global, so do Postal Inspectors. If you are exploiting Americans, we are coming for you, no matter where you are in the world.”
Two of Runner’s co-conspirators, Canadian citizens Maria Thanos and Philip Lett, pleaded guilty in the Eastern District of New York in June 2018 to conspiracy to commit mail fraud. Runner used a series of shell companies to hide his involvement in the scheme while living in multiple foreign countries, including Switzerland, France, the Netherlands, Costa Rica, and Spain.
The case is being prosecuted by Assistant Director John W. Burke and Trial Attorney Ann Entwistle of the Department of Justice’s Consumer Protection Branch with assistance from the U.S. Attorney’s Office for the Eastern District of New York. The Justice Department’s Office of International Affairs provided critical assistance in securing Runner’s extradition. The Spanish National Police also provided assistance in securing Runner’s arrest.
An indictment is a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent unless and until proven guilty.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. Later, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive and broad-based efforts to combat elder fraud seek to halt the billions of dollars seniors lose to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch, visit its website at https://www.justice.gov/civil/consumer-protection-branch.
CEO of Clothing Company Sentenced to Prison for Million-Dollar Customs FraudRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that JOSEPH BAILEY, the CEO of a children’s apparel company (“Company-1”), was sentenced to six months in prison for participating in a years-long scheme to defraud U.S. Customs and Border Protection (“CBP”) by submitting invoices to CBP that falsely understated the true value of the goods Company-1 imported into the United States – fraudulently avoiding over $1.5 million in customs duties owed to CBP. BAILEY pled guilty on January 15, 2020, before United States District Judge William H. Pauley III, who also imposed today’s sentence.
Acting U.S. Attorney Audrey Strauss said: “Joseph Bailey defrauded the United States by misrepresenting the value of imported goods to avoid payment of customs duties. Now he has been sentenced to prison for his crime.”
According to the Indictment and other court documents filed in Manhattan federal court:
From in or about 2007 to in or about 2015, BAILEY and other employees of Company-1 engaged in a scheme to fraudulently understate the value of goods imported into the United States. During the charged time period, Company-1 purchased much of its merchandise from a manufacturer located in China (“Manufacturer-1”). Starting shortly after Company-1 began doing business with Manufacturer-1 in 2007, through approximately 2010, BAILEY and others at Company-1 engaged in a double-invoicing scheme by which Company-1 would receive two sets of invoices from Manufacturer-1 for the same shipment of goods. One invoice, referred to as the “pay by” invoice, was significantly higher and reflected the actual price paid by Company-1 for the goods. The second invoice reflected a significantly lower price for the goods and was presented to CBP. This allowed Company-1 to pay a fraudulently lower amount of customs duties.
In approximately 2010, BAILEY and other employees of Company-1 began a new variation of the customs fraud scheme, involving invoices for “sample” goods, by which Manufacturer-1 would send two separate sets of invoices for a given shipment that together reflected the true price Company-1 actually paid to Manufacturer-1 for a particular shipment of clothing. The first invoice, typically entitled the “commercial invoice,” described the goods purchased, and was submitted to CBP. The second invoice purportedly reflected amounts paid by Company-1 for “sample” goods, and was not submitted to CBP. Sample goods are not subject to customs duties.
The “samples” invoice was not, in fact, for samples actually purchased by Company-1. Rather, it was a means to make an additional payment to Manufacturer-1 for actual goods purchased by Company-1 without disclosing it to CBP. Typically, the “samples” invoices reflected a unit price for sample goods that was significantly greater than the unit price for the non-sample goods reflected on the invoice submitted to CBP (for example, $70-$90 per unit on the “samples” invoice versus a $4 per unit price on the “commercial invoice”). In addition, the “samples” invoice reflected the purchase of unusually large amounts of sample goods, for example the “samples” invoice reflected quantities as large as 24 or 48 pieces of a single color in a single style.
This multi-year fraud scheme resulted in the loss of over $1 million in duty revenue to the United States.
* * *
In addition to his prison sentence, BAILEY, 58, of Brooklyn, New York, was sentenced to three years of supervised release, ordered to pay forfeiture in the amount of $1,661,617.
Ms. Strauss thanked CBP and Homeland Security Investigations for their efforts and ongoing support and assistance with the case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit, and Assistant U.S. Attorneys Dina McLeod and Dominika Tarczynska are in charge of the prosecution.
Buffalo Man Pleads Guilty to Assaulting A Federal Officer During May Civil Unrest in BuffaloRead 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 Keyondre Robinson, 18, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to assaulting, resisting, or impeding certain officers. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
“With this plea, the defendant becomes the second individual to be convicted in the District in connection with the violent protests which were held here in late-May,” stated U.S. Attorney Kennedy. “In pleading guilty, defendant acknowledged that his behavior was not constitutionally protected expression but criminal conduct. Lawlessness, violence, and property damage are inherently unjust and antithetical to the objectives of those well-intentioned individuals who come together seeking positive change in our community.”
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that on May 30, 2020, thousands of protesters gathered outside of Niagara Square in Buffalo, adjacent to the Robert H. Jackson United States District Courthouse for the Western District of New York, following the death of George Floyd. As some of the protesters became aggressive and violent, law enforcement officers, including officers from the United States Marshals Service, the Department of Homeland Security, the Federal Protective Service, and the Buffalo Police Department, were deployed and tasked with protecting the Jackson Courthouse. The officers formed a perimeter around the Courthouse steps to protect the building from property damage and to prevent protesters from entering the Courthouse. The officers did not engage with the protesters except to keep them from entering or approaching the Courthouse. During the protests, the defendant, Keyondre Robinson, threw a water bottle at a Deputy United States Marshal which struck the Deputy in the face.
The plea is the result of an investigation by the United States Marshal’s Service, under the direction of United States Marshal Charles Salina; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Protective Service, under the direction of Craig Madey; and Buffalo Police Department and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for May 5, 2021, at 9:00 a.m. before Judge Vilardo.
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Brandon Woman Sentenced for Wire FraudRead the Press Release
United States Attorney Ron Parsons announced that a Brandon, South Dakota, woman convicted of Wire Fraud was sentenced on December 21, 2020, by U.S. District Judge Karen E. Schreier.
Sheila Verbrugge, age 50, was sentenced to 36 months in federal prison, followed by 3 years of supervised release, restitution in the amount of $577,577.63, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Verbrugge was indicted by a federal grand jury on August 17, 2020. She pled guilty on September 28, 2020.
Verbrugge was the billing and payroll clerk for Blachowske Truck Line, Inc., located in Brandon. Verbrugge’s duties included managing the company’s T-Chek account. T-Chek is a system used to pay for various job-related expenses incurred by truck drivers, such as fuel and truck maintenance. Each week, T-Chek e-mailed an invoice to the company for that week’s charges. The invoices were paid electronically using an automated clearing house (ACH) payment.
Between approximately January 2010 and continuing through April 8, 2020, Verbrugge falsely and fraudulently issued T-Cheks payable to herself, deposited them into her personal account, and then used the money for her own purposes. Verbrugge disguised her theft by altering the weekly T-Chek report; she deleted her name and location and replaced it with names of Blachowske truck drivers and locations she knew to be associated with those truck drivers. Because of the false information entered by her, Blachowske paid the T-Chek invoices.
“This investigation demonstrates the FBI’s commitment to assisting law enforcement partners with investigations of costly financial crimes,” said Michael Paul, special agent in charge of the FBI’s Minneapolis field office which covers South Dakota. “As evidenced by this case, the FBI, South Dakota’s U.S. Attorney’s Office and the Brandon Police Department worked together to hold Ms. Verbrugge accountable for her actions, and recover the illegal gains. Along with our law enforcement partners, the FBI will continue to allocate expert resources to investigate and prosecute all those who take advantage of a position of trust to defraud American businesses.”
This case was investigated by the Brandon Police Department, the Federal Bureau of Investigation, and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Verbrugge has been allowed to self-surrender to the custody of the U.S. Marshals Service by January 5, 2021.
Baltimore Man Sentenced to Almost 14 Years in Federal Prison for Distribution of a Fentanyl Analogue That Resulted in the Death of a VictimRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Shannon Dorrell Marshall, a/k/a Cake, age 43, of Baltimore, Maryland, to 165 months in federal prison, followed by three years of supervised release, for two counts of distribution of controlled substances, specifically a fentanyl analogue and heroin. A victim died as a result of Marshall’s drug distribution. Fentanyl analogues are chemical compounds designed to have effects similar to fentanyl and can be just as deadly.
The sentence 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; Harford County Sheriff Jeffrey R. Gahler; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Chief Henry Trabert of the Aberdeen Police Department; Chief Charles Moore of the Bel Air Police Department; Chief Teresa Walter of the Havre de Grace Police Department; and Harford County State’s Attorney Albert Peisinger.
According to Marshall’s guilty plea, on May 11, 2017, Harford County Sheriff’s Office detectives went to a home in Abingdon, Maryland, where a victim had been reported dead. An autopsy determined that the victim died of 4-Fluoroisobutyryl fentanyl and carfentanil intoxication. Detectives seized the victim’s phone and recovered messages from the victim arranging to purchase drugs from an individual known as “Cake,” which is Marshall’s alias, and learned that Marshall was the source of the drugs sold to the victim. Further review of the phone revealed that the victim had been purchasing gel caps of heroin from “Cake” since October 2016.
As detailed in the plea agreement, on June 15, 2017, detectives conducted surveillance of Marshall and observed him engage in a hand-to-hand drug transaction. When detectives exited their vehicles to approach Marshall, he fled. Detectives were able to stop the person who had just purchased drugs from Marshall. The drugs were determined to be three gel caps of heroin and crack cocaine. On June 21, 2017, Harford County Task Force detectives executed a search warrant at Marshall’s residence and seized a bag containing 2.8 grams of cocaine. Marshall was arrested and agreed to waive his rights and speak to detectives, subsequently admitting to selling drugs to the overdose victim, as well as to the individual detectives stopped on June 15, 2017.
United States Attorney Robert K. Hur commended the DEA, the Harford County Sheriff’s Office and the other members of Harford County Narcotics Task Force, comprised of members of the Harford County Sheriff's Office, Maryland State Police, Aberdeen Police Department, Bel Air Police Department, Havre de Grace Police Department, and the Harford County State’s Attorney’s Office, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher J. Romano and Kim Y. Oldham, who prosecuted the case.
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8 Bronx Defendants Indicted in Connection with Drug Trafficking and Firearms OffensesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an indictment charging CARL WILBRIGHT, a/k/a “Brody,” TRAVIS BRECONIDGE, a/k/a “Jamaica,” ISAIAH FREEMAN, a/k/a “Oz,” LUIS GARCIA, a/k/a “Lu,” RICARDO GARCIA, a/k/a “Kika,” STANLEY HAMPTON, and JAMEL MURRAY with participating in a conspiracy to distribute crack cocaine and marijuana. WILBRIGHT and FREEMAN have also been charged with possessing firearms in furtherance of the narcotics conspiracy. The Indictment further charges FREEMAN and QUASHAWN ESCALERA, a/k/a “Tank,” with being felons in possession of ammunition in connection with a shooting that occurred on September 26, 2019. The case is assigned to U.S. District Judge Valerie E. Caproni.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged in the Indictment, the defendants are charged with narcotics trafficking and firearms offenses. We thank our partners at the NYPD for their outstanding work on this case.”
NYPD Commissioner Dermot Shea said: “These federal charges enhance the NYPD’s precision policing efforts to combat a crew of alleged narcotics distributors. I commend our partners in the U.S. Attorney’s office for the Southern District of New York for their sustained work in bringing this important case.”
As alleged in the Indictment unsealed last week in Manhattan federal court[1]:
From at least in or about 2018, up to and including in or about 2020, CARL WILBRIGHT, a/k/a “Brody,” TRAVIS BRECONIDGE, a/k/a “Jamaica,” ISAIAH FREEMAN, a/k/a “Oz,” LUIS GARCIA, a/k/a “Lu,” RICARDO GARCIA, a/k/a “Kika,” STANLEY HAMPTON, and JAMEL MURRAY, participated in a conspiracy to distribute 280 grams and more of crack cocaine and marijuana.
* * *
CARL WILBRIGHT, a/k/a “Brody,” LUIS GARCIA, a/k/a “Lu,” RICARDO GARCIA, a/k/a “Kika,” and JAMEL MURRAY were taken into custody last week and were presented before Judge Lehrburger. STANLEY HAMPTON surrendered yesterday and was presented before Judge Moses. TRAVIS BRECONIDGE, a/k/a “Jamaica,” QUASHAWN ESCALERA, a/k/a “Tank,” and ISAIAH FREEMAN, a/k/a “Oz,” remain at large.
A chart containing the names, charges, and maximum penalties for each of the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only as any sentencing of a defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the NYPD.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Christopher J. Clore is in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Narcotics
Conspiracy
21 U.S.C. § 846
CARL WILBRIGHT, 47
TRAVIS BRECONIDGE, 28
ISAIAH FREEMAN, 32
LUIS GARCIA, 24
RICARDO GARCIA, 28
STANLEY HAMPTON, 25
JAMEL MURRAY, 43
Life in prison
Mandatory minimum of ten years in prison
2
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(i) and 2
CARL WILBRIGHT
Life in prison
Mandatory minimum of five years in prison
3
Firearms Offense
18 U.S.C. § 924(c)(1)(A)(iii) and 2
ISAIAH FREEMAN
Life in prison
Mandatory minimum of ten years in prison
4
Felon in Possession of Ammunition
18 U.S.C. § 922(g)
QUASHAWN ESCALERA, 31
10 years in prison
5
Felon in Possession of Ammunition
18 U.S.C. § 922(g)
ISAIAH FREEMAN
10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
$75,000 Worth of Methamphetamine Earns Iowa Man More Than a Decade in Federal PrisonRead the Press Release
A man who was arrested with ten pounds of methamphetamine in Cedar Rapids, Iowa, was sentenced December 21, 2020, to more than twelve years in federal prison.
Malik Sekou Sahid Buchanan, age 40, from Burlington, Iowa, received the prison term after a July 6, 2020 guilty plea to possessing meth with intent to distribute.
Buchanan was arrested delivering ten pounds of methamphetamine to the Cedar Rapids area. Buchanan had previously provided an individual with five pounds of methamphetamine. Buchanan was charging $5,000 per pound of meth. During the arrest, officers recovered methamphetamine from Buchanan’s car weighing approximately ten pounds. The meth was 100% pure.
Buchanan was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Buchanan was sentenced to 150 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Buchanan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Cedar Rapids Police Department, the Marion Police Department, the Hiawatha Police Department, the Linn County Sheriff’s Office, the Tri-County Drug Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Department, the Cedar Falls Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-00011.
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Monday 21 December 2020
Utica Man Sentenced to 20 Years for Sexual Exploitation of a Child and Distributing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Aaron Bohannon, age 53, of Utica, New York was sentenced to 20 years imprisonment and a lifetime term of supervised release for his convictions for sexually exploiting a child and distributing child pornography, announced Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his previously entered guilty plea, Bohannon admitted that he sexually exploited his victim from at least 2018 through June of 2019, recorded the abuse, and distributed the sexually explicit material to others. Bohannon also admitted that he distributed other sexually explicit images and videos of minors. Upon release from prison, Bohannon will be required to register as a sex offender.
This case was investigated by the New York State Police, the Oneida County Sheriff’s Office, the Utica Police Department, and the Department of Homeland Security, Homeland Security Investigations (HSI) and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Utah Business Owner Charged with Failing to Pay Taxes Withheld from Employees’ WagesRead the Press Release
SALT LAKE CITY – A federal grand jury returned an indictment Wednesday afternoon charging an Ogden, Utah, business owner, who owned and operated four healthcare related limited liability companies, with 27 counts of failing to pay over trust fund taxes totaling $146,856 to the IRS, between 2014 and 2016.
According to the indictment, Daniel Fry, who owned and operated four limited liability companies, including Burch Creek Homecare and Hospice LLC, Medical Billing Advantage LLC, Scrub World, and Country Niche LLC, caused trust fund taxes to be withheld from the wages paid to the employees of each of these businesses, and that Fry failed to pay over to the IRS all of the taxes owing to the United States on behalf of the employees of these businesses.
The indictment alleges that employers are required to withhold, account for, and pay over to the IRS, a variety of taxes from employee wages, including federal income taxes and FICA taxes- which include Medicare and Social Security taxes. These taxes are referred to as “trust fund taxes” because employers are required to hold them in trust for their employees and pay them over to the IRS.
Fry faces up to five years in federal prison if convicted of failure to pay over trust fund taxes. The case is being investigated by IRS Criminal Investigation.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty beyond a reasonable doubt in a court of law.
A summons has been issued for Fry to appear in federal court. This case is being prosecuted by the U.S. Attorney’s Office in Utah.
U.S. Trustee Program Announces Streamlined Forms for Completing Chapter 11 Financial ReportsRead the Press Release
The Department of Justice’s U.S. Trustee Program (USTP) announced today the publication of a final rule in the Federal Register that streamlines the financial reports required under the Bankruptcy Code to be filed with the bankruptcy court by the vast majority of business and individual debtors in chapter 11 bankruptcy, including in the largest reorganization cases. The rule, entitled “Procedures for Completing Uniform Periodic Reports in Non-Small Business Cases Filed Under Chapter 11 of Title 11,” replaces approximately 150 existing variations of these reports with two uniform forms to be used nationally: a monthly operating report filed before plan confirmation and, after plan confirmation, a quarterly post-confirmation report to show compliance with the plan. The rule does not apply to debtors who are small businesses or who, in accordance with the CARES Act, have elected relief under subchapter V of chapter 11.
“This new rule is largely deregulatory and greatly simplifies financial reporting for chapter 11 debtors that do not qualify as small businesses while maintaining clarity and transparency for the public,” said USTP Director Cliff White. “This good-government reform, which received extensive public input, strikes an appropriate balance between reporting requirements and transparency.”
The rule is posted at https://www.justice.gov/ust/rules-and-federal-register-notices.
The New Reports Reflect Input from Stakeholders
To solicit feedback from the public, the USTP published the proposed rule for two public comment periods and held a public meeting with interested stakeholders. The feedback from commenters was constructive and wide ranging. The final rule balances the divergent views in accomplishing the goals set by Congress of simplifying the reporting process while providing transparency and improved uniformity across the reports. Although the two new forms simplify the financial information that chapter 11 debtors must provide, additional supplemental information also may be requested by the U.S. Trustee if there is a particularized need.
Implementation and the Effective Date
The rule provides for a 180-day implementation period, so the new forms will become effective and apply to all reports filed on or after June 21, 2021. Implementation will include training by the USTP for members of the bankruptcy community as well as coordination with the courts and other stakeholders. In addition, the USTP will provide, at no cost, PDF fillable versions of the reports on its website and will provide bankruptcy software vendors with the underlying technical specifications for the reports so they will have the ability to offer software to report filers in the future.
To facilitate outreach on the new requirements, the USTP has established a resource page on its website where interested stakeholders can access the rule, the report forms, and all related instructions. The resource page also will be used to keep the public informed of relevant implementation updates.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 90 field office locations. Learn more about the Program at https://www.justice.gov/ust.
U.S. Department of Justice Charges New Defendant in Lockerbie Terror Bombing CaseRead the Press Release
ALBANY, NEW YORK – Today the U.S. Department of Justice unsealed a criminal complaint charging Libyan citizen Abu Agila Mohhamad Masud for his role in building the bomb that destroyed Pan Am Flight 103 and resulted in the murder of 270 people, announced United States Attorney General William Barr.
The victims who perished in the bombing of Pan Am Flight 103 over Scotland on December 21, 1988 totaled 259 passengers and air crew, along with 11 residents of the village of Lockerbie. Thirty-five of the passengers who lost their lives were Syracuse University Students returning home from study abroad programs, and several others had ties to upstate New York.
“We have a special responsibility to support the families of loved ones who lost their lives in this cowardly and vicious act of terrorism,” said Antoinette T. Bacon, Acting United States Attorney for the Northern District of New York. “Because so many were students from Syracuse University, or people with close ties to this district, we will provide support and assistance to their loved ones as the case moves forward in United States District Court for the District of Columbia. Our office will work closely with the Department of Justice, the United States Attorney’s Office for the District of Columbia, and the FBI, to be a resource for them in the days ahead. Our commitment to do so endures beyond the passing of years.”
U.S. Department of Justice Recognizes Colorado Task Force with National Achievement Award in Support of Project Safe NeighborhoodsRead the Press Release
DENVER – United States Attorney Jason Dunn presented a Colorado law enforcement task force with national recognition from the Department of Justice’s Project Safe Neighborhoods (PSN) program. Colorado’s Regional Anti Violence Enforcement Network (RAVEN) is a multi-agency task force from 13 different federal, state, and local law enforcement agencies who received a national achievement award for Outstanding Partnership/Task Force from the Department of Justice. U.S. Attorney Jason Dunn presented the award to task force leaders at the Aurora City Council Chamber this afternoon.
“RAVEN is model program,” said U.S. Attorney Jason Dunn. “It is part of the gold standard in law enforcement relationships that is the hallmark of Colorado law enforcement. This is making a real difference to our communities.”
RAVEN was recognized for its outstanding work in support of the PSN Program, which has brought important results to the Denver Metropolitan Area. Thanks to the work of the task force, 122 violent offenders were prosecuted in 2019, and another 147 violent offenders were prosecuted this past year.
RAVEN task force members come from the ATF, the Aurora Police Department, the Denver Police Department, the Arapahoe County Sheriff’s Office, the Douglas County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Lakewood Police Department, the Denver District Attorney’s office, the Colorado Department of Corrections, the Rocky Mountain HIDTA, HSI, the U.S. Marshals Service, and the United States Attorney’s Office.
Revitalized in 2017, PSN is a critical piece of the Department’s crime reduction efforts. PSN has focused on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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U.S. Attorney’s Office Announces Violent Crime Enforcement Blitz in Jefferson CountyRead the Press Release
BEAUMONT, Texas – U.S. Attorney Stephen J. Cox announced today his office is aggressively targeting gun crime violators in Jefferson County, Texas.
The United States Attorney’s Office for the Eastern District of Texas has announced that it will take an aggressive and collaborative approach to prosecuting violent crime in Jefferson County. This announcement comes after a steady increase in gun crime throughout Jefferson County, including armed robberies, carjackings, felons in possession of firearms, and individuals possessing firearms during crimes of violence. To accomplish its goal of eradicating gun violence in Jefferson County, EDTX has recently designated one of its senior prosecutors to coordinate the efforts of local and federal law enforcement. This senior attorney will also personally handle the resulting cases.
This initiative has already produced results for the people of Southeast Texas. Today, 23-year-old Derrick Gloude of Beaumont appeared before United States Magistrate Judge Keith Giblin on charges of Hobbs Act robbery and brandishing a firearm during a crime of violence. Gloude is accused of robbing seven different stores in Beaumont at gunpoint with a purple-colored gun, doing so from November 9 through November 16, 2020. He was ordered detained in federal custody pending trial. Earlier this month, 24-year-old Tremaurice Arthur Randall of Beaumont, was sentenced to 114 months in federal prison for carjacking and brandishing a firearm during a crime of violence.
“An aggressive approach to violent crime is, and remains, a priority for both the Department of Justice and the Eastern District of Texas,” said U.S. Attorney Stephen Cox. “If you are a felon in possession of a firearm, or if you use a firearm to commit a violent offense, our office will use all available resources to bring you to justice.”
This initiative is a 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.
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U.S. Attorney’s Bowling Green Office Continues to Expand Ability to Protect Southcentral KentuckyRead the Press Release
BOWLING GREEN, Ky. – United States Attorney Russell Coleman is today announcing his appointment of Michelle Buchanan as Legal Assistant to the U.S. Attorney’s Bowling Green Branch Office, the first time such administrative staff have ever been assigned to Bowling Green.
“We are serious about striving to better protect families in Bowling Green and the surrounding counties,” said U.S. Attorney Russell Coleman. “Folks in Southcentral Kentucky will be well-served by the addition of Ms. Buchanan to be the administrative infrastructure to our expanded federal prosecution efforts.”
Buchanan becomes the third full-time employee assigned to the recently staffed United States Attorney’s Bowling Green Branch Office. She will be instrumental in the day-to-day functioning of the office as she assists two full-time federal prosecutors with their expanding docket of investigations and cases.
With a long history working with prosecutors and private attorneys across Kentucky and Indiana, including her most recent position with the law firm of Cole and Moore, PSC, in Bowling Green, Buchanan brings a wealth of knowledge and practical experience in litigation support.
Opening the full-time staffed office in February 2020 was a lengthy administrative process, requiring approval from the U.S. Department of Justice in Washington, DC, and ultimately Congress. Historically the unstaffed courthouse office has been used by federal prosecutors making the two hour commute from the U.S. Attorney’s Office in Louisville. Having full-time federal prosecutors in Bowling Green that live in the community is paying dividends by fostering deeper working relationships with local law enforcement and state prosecutors. The result - better outcomes for the citizens of the Southcentral Kentucky region by mitigating the threat of increased criminal activity to include drug trafficking, child exploitation, and COVID related fraud.
Two RGV woman sentenced for involvement in meth conspiracyRead the Press Release
McALLEN, Texas – Two local women have been ordered to federal prison following their convictions of conspiring with each other to import approximately 50 kilograms of 99% pure meth from Mexico, announced U.S. Attorney Ryan K. Patrick.
Helen Garza and Herminia Cantu-Garcia, both 43 and of Rio Grande City and Roma, respectively, pleaded guilty in late February.
Today, U.S. District Judge Randy Crane imposed a 78-month sentence for both women to be immediately followed by three years of supervised release.
The women planned to import the narcotics Dec. 4, 2019. On that date, Garza drove a car from Mexico and attempted to enter the United States through the Roma Port of Entry. Authorities inspected the vehicle and found hidden compartments within its tires. Upon further examination, they ultimately found multiple bundles containing 50 kilograms of meth with a value of approximately $170,000.
Garza admitted she knew there were drugs in the car.
Further investigation revealed Cantu-Garcia had coordinated the drug trafficking with Garza and other individuals.
“The sentencing of Garza and Cantu-Garcia sends a clear message regarding the serious consequences for those who engage in criminal activity,” said Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “The vast scope of this criminal scheme would have had a devastating effect on the citizens of south Texas. HSI along with our law enforcement partners will continue to seek out and bring justice to those involved in the illicit drug trade.”
Both women have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with assistance from Border Patrol and Customs and Border Protection. Assistant U.S. Attorney Kristina Pekkala prosecuted the case.
Two Passaic County Men Sentenced for Roles in Narcotics ConspiracyRead the Press Release
NEWARK, N.J. – Two Paterson, New Jersey, men were sentenced today for their roles in a conspiracy to distribute controlled substances, U.S. Attorney Craig Carpenito announced.
Dwayne Northern, a/k/a “Black,” a/k/a “D Black,” 35, was sentenced to 51 months in prison for conspiring to distribute heroin and distributing heroin and Isaiah Hargrove, 21, was sentenced to 40 months in prison for conspiring to distribute 40 grams or more of fentanyl and 100 grams or more of heroin, and to distributing a quantity of fentanyl and heroin.
Northern previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to distribute and possess with the intent to distribute heroin and knowingly and intentionally distributing heroin. Hargrove previously pleaded guilty before Judge Martinotti to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl and knowingly and intentionally distributing heroin and fentanyl. Judge Martinotti imposed the sentences by videoconference today.
According to documents filed in this case and statements made in court:
The defendants and their conspirators are all members and associates of the 230 Boys street gang, which operates primarily in and around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through investigative techniques, including numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement officers determined that from September 2018 through Oct. 1, 2019, the defendants and others conspired to distribute narcotics, to include heroin and fentanyl.
In addition to the prison term, Judge Martinotti sentenced Northern to three years of supervised release and sentenced Hargrove to two years of supervised release.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Two Owners of New York Pharmacies Charged in a $30 Million COVID-19 Health Care Fraud and Money Laundering CaseRead the Press Release
The owners of over a dozen New York-area pharmacies were charged in an indictment unsealed today for their roles in a $30 million health care fraud and money laundering scheme, in which they exploited emergency codes and edits in the Medicare system that went into effect due to the COVID-19 pandemic in order to submit fraudulent claims for expensive cancer drugs that were never provided, ordered, or authorized by medical professionals.
Peter Khaim, 40, and Arkadiy Khaimov, 37, both of Forest Hills, New York, each were charged with one count of conspiracy to commit health care fraud and wire fraud, and one count of conspiracy to commit money laundering. Khaim was separately charged with two counts of concealment money laundering and one count of aggravated identity theft. Khaimov was separately charged with two counts of concealment money laundering.
“These defendants allegedly lined their own pockets by exploiting Medicare flexibilities that were designed to ensure that patients obtained access to needed medications during the COVID-19 crisis,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Together with our law enforcement partners, the Criminal Division is working to aggressively identify, investigate, and prosecute scammers who seek to take advantage of the COVID-19 crisis to defraud our public health care programs.”
“As alleged in the indictment, the defendants manipulated information in over a dozen pharmacies to defraud the Medicare program, including by taking advantage of systems that were intended to assist patients during the COVID-19 pandemic, and then went to great lengths to hide their ill-gotten gains through a network of sham companies,” said Acting U.S. Attorney Set D. DuCharme of the Eastern District of New York. “This office and our law enforcement partners are committed to holding accountable those who seek to enrich themselves at the expense of vital taxpayer-funded health care programs upon which so many rely.”
“We allege Mr. Khaim and Khaimov used the COVID-19 pandemic as cover to exploit changes in the Medicare system,” said Acting Director in Charge William F. Sweeney Jr of the FBI’s New York Field Office. “The changes to this program, funded by taxpayers, were put in place to help fellow citizens obtain needed medications during the pandemic, not line the pockets of fraudsters. Those who attempt to illegally profit from our public funded healthcare programs should remember taxpayers also fund courts and jails, and behavior like the type announced today will be met with swift action from the FBI and our law enforcement partners. If you are aware of frauds like the one announced today, please contact us at 1-800-CALL-FBI.”
“Fraudsters who target the Federal health care system attempt to undermine the integrity of programs that serve millions of individuals. When they leverage a public health emergency to perpetrate schemes, their wanton disregard for the programs and beneficiaries is glaringly clear,” said Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We are responding aggressively with our law enforcement partners to pursue bad actors and to warn the public about these ongoing scams.”
“The defendants allegedly carried out a $30 million health care fraud and money laundering scheme, siphoning funds meant for patients during the COVID-19 pandemic,” said Special Agent in Charge Jonathan D. Larsen of IRS-Criminal Investigation (IRS-CI). “While Americans across the country are in dire need of medical and financial assistance, the defendants allegedly used the stolen proceeds to purchase real estate and luxury items. IRS-CI and our law enforcement partners will continue to work tirelessly to expose COVID-19 schemes and bring those responsible to justice.”
“This indictment describes allegations of crimes that are especially egregious and caused significant harm to the programs designed to protect the most medically vulnerable, jeopardizing the health of our Medicare system and then using our nation’s financial system to launder proceeds of the fraud,” said Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG). “We appreciate the cooperation of our fellow law enforcement partners as we work to identify and investigate fraud of this type.”
According to the indictment, the defendants used COVID-19 emergency override billing codes in order to submit fraudulent claims to Medicare, for which they were allegedly paid over $30 million for expensive cancer medication Targretin Gel 1% that, in fact, never was purchased by the pharmacies, prescribed by physicians, or dispensed to patients, often during periods when pharmacies were non-operational, and using doctors’ names on prescriptions without their permission.
The indictment alleges that the defendants acquired control over dozens of New York pharmacies by paying others to pose as the owners of the pharmacies and hiring pharmacists to pretend to be supervising pharmacists at the pharmacies, for the purpose of obtaining pharmacy licenses and insurance plan credentialing. As the effects of the COVID-19 pandemic began to be felt in the United States, the defendants used the COVID-19 pandemic as an opportunity to capitalize on a national emergency for their own financial gain by using the COVID-19 “emergency override” billing codes to submit fraudulent claims for Targretin Gel 1%, which has an average wholesale price of approximately $34,000 for each 60 gram tube.
The indictment also alleges that, with the proceeds of the fraud, the defendants engaged in a complex money laundering conspiracy where they created sham pharmacy wholesale companies, which they named after pre-existing pharmacy wholesalers, and fabricated invoices to make it appear that funds transferred from the pharmacies to the sham pharmacy wholesale companies were for legitimate pharmaceutical drug purchases.
In the first phase of the money laundering conspiracy, the defendants conspired with an international money launderer who arranged for funds to be wired from the sham pharmacy wholesale companies to companies in China for distribution to individuals in Uzbekistan. In exchange, the defendants received cash provided by members of the Uzbekistani immigrant community to an unlicensed money transfer business for remittance to their relatives in Uzbekistan, minus a commission that was deducted by the money launderer.
In the second phase of the money laundering conspiracy, when the amount of fraudulent proceeds exceeded the amount of cash available in the Uzbekistani immigrant community, the defendants directed the international money launderer to transfer funds back from the sham wholesale companies to the defendants, their relatives, or their designess, in the form of certified cashier’s checks and bags of cash that were dropped at their house in the middle of the night. The defendants used the proceeds of the scheme to purchase real estate and other luxury items.
A federal criminal indictment is merely an accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HHS-OIG’s New York Field Office; the FBI’s New York Field Office; the IRS-CI’s New York Field Office; and the FDIC-OIG investigated the case. Assistant Chief Jacob Foster of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force and Trial Attorney Andrew Estes and Assistant Chief Brendan Stewart of the Fraud Section’s Brooklyn Strike Force are prosecuting the case. Former Fraud Section Trial Attorney Patrick Mott previously worked on the investigation.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Owners of New York Pharmacies Charged in $30 Million Covid-19 Health Care Fraud and Money Laundering SchemeRead the Press Release
BROOKLYN, NY – An indictment was unsealed in federal court in Brooklyn today charging the two owners of over a dozen pharmacies in New York City and on Long Island, for their roles in a $30 million health care fraud and money laundering scheme in which they exploited emergency codes and edits in the Medicare system that went into effect due to the COVID-19 pandemic in order to submit fraudulent claims for expensive cancer drugs that were never provided, ordered or authorized by medical professionals. Peter Khaim and Arkadiy Khaimov are charged with one count of conspiracy to commit health care fraud and wire fraud, and one count of conspiracy to commit money laundering. Khaim was separately charged with two counts of concealment money laundering and one count of aggravated identity theft. Khaimov was separately charged with two counts of concealment money laundering. The defendants were arrested this morning and will be arraigned this afternoon before Magistrate Judge Vera M. Scanlon.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; Brian Rabbitt, Acting Assistant Attorney General of the Justice Department’s Criminal Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Scott Lampert, Special Agent-in-Charge, Health and Human Services-Office of Inspector General, New York Region (HHS-OIG); Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI); and Patricia Tarasca, Special Agent-in-Charge, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), announced the arrests and indictment.
“As alleged in the indictment, the defendants manipulated information in over a dozen pharmacies to defraud the Medicare program, including by taking advantage of systems that were intended to assist patients during the COVID-19 pandemic, and then went to great lengths to hide their ill-gotten gains through a network of sham companies,” stated Acting United States Attorney DuCharme. “This Office and our law enforcement partners are committed to holding accountable those who seek to enrich themselves at the expense of vital taxpayer-funded health care programs upon which so many rely.”
“These defendants allegedly lined their own pockets by exploiting Medicare flexibilities that were designed to ensure that patients obtained access to needed medications during the COVID-19 crisis,” stated Acting Assistant Attorney General Rabbitt. “Together with our law enforcement partners, the Criminal Division is working to aggressively identify, investigate and prosecute scammers who seek to take advantage of the COVID-19 crisis to defraud our public health care programs.”
“We allege Mr. Khaim and Mr. Khaimov used the COVID-19 pandemic as cover to exploit changes in the Medicare system,” stated FBI Assistant Director-in-Charge Sweeney. “The changes to this program, funded by taxpayers, were put in place to help fellow citizens obtain needed medications during the pandemic, not line the pockets of fraudsters. Those who attempt to illegally profit from our public funded healthcare programs should remember that taxpayers also fund courts and jails, and behavior like the type announced today will be met with swift action from the FBI and our law enforcement partners. If you are aware of frauds like the one announced today, please contact us at 1-800-CALL-FBI.”
“Fraudsters who target the Federal health care system attempt to undermine the integrity of programs that serve millions of individuals. When they leverage a public health emergency to perpetrate schemes, their wanton disregard for the programs and beneficiaries is glaringly clear,” stated HHS-OIG Special Agent-in-Charge Lampert. “We are responding aggressively with our law enforcement partners to pursue bad actors and to warn the public about these ongoing scams.”
“The defendants allegedly carried out a $30 million health care fraud and money laundering scheme, siphoning funds meant for patients during the COVID-19 pandemic,” stated IRS-CI Special Agent-in-Charge Larsen. “While Americans across the country are in dire need of medical and financial assistance, the defendants allegedly used the stolen proceeds to purchase real estate and luxury items. IRS-CI and our law enforcement partners will continue to work tirelessly to expose COVID-19 schemes and bring those responsible to justice.”
“This indictment describes allegations of crimes that are especially egregious and caused significant harm to the programs designed to protect the most medically vulnerable, jeopardizing the health of our Medicare system and then using our nation’s financial system to launder proceeds of the fraud,” stated FDIC-OIG Special Agent-in-Charge Tarasca. “We appreciate the cooperation of our fellow law enforcement partners as we work to identify and investigate fraud of this type.”
According to the indictment, the defendants used COVID-19 emergency override billing codes in order to submit fraudulent claims to Medicare, for which they were paid over $30 million for cancer medication Targretin Gel 1% including for claims where the medication never was purchased by the pharmacies, prescribed by physicians or dispensed to patients – often during periods when pharmacies were non-operational – and using doctors’ names on prescriptions without their permission. The defendants allegedly acquired control over more than a dozen New York pharmacies by paying others to pose as the owners of the pharmacies and hiring pharmacists to pretend to be supervising pharmacists at the pharmacies for the purpose of obtaining pharmacy licenses. Targretin Gel 1% has an average wholesale price of approximately $34,000 for each 60 gram tube.
The indictment also alleges that with the proceeds of the fraud, the defendants engaged in a money laundering conspiracy by creating sham pharmacy wholesale companies which they named after pre-existing pharmacy wholesalers, and fabricated references to invoices to make it appear that funds transferred from the pharmacies to the sham pharmacy wholesale companies were for legitimate pharmaceutical drug purchases. In the first phase of this conspiracy, the defendants conspired with an international money launderer who arranged for funds to be wired from the sham pharmacy wholesale companies to companies in China for distribution to individuals in Uzbekistan. In exchange, the defendants received cash from an unlicensed money transfer business, minus a commission that was deducted by the money launderer. In the second phase of this conspiracy, when the fraudulent proceeds exceeded the amount of cash available, the defendants caused others to transfer funds back from the sham wholesale companies to the defendants, their relatives, or their designees, in the form of certified cashier’s checks and cash that was dropped off at their residences in the middle of the night. The defendants used the proceeds of the scheme to purchase real estate and luxury items.
This case was investigated by HHS-OIG’s New York Field Office, the FBI’s New York Field Office, the IRS-CI’s New York Field Office and the FDIC. It is being handled by the Medicare Fraud Strike Force under the supervision of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Assistant Chief Jacob Foster of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force and Trial Attorney Andrew Estes of the Fraud Section’s Brooklyn Strike Force are in charge of the prosecution. Former Fraud Section Trial Attorney Patrick Mott previously worked on the investigation.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The Defendants:
PETER KHAIM
Age: 40
Forest Hills, New YorkARKADIY KHAIMOV
Age: 37
Forest Hills, New YorkEastern District Docket No.: 20-CR-580 (AMD)
Two Men Charged in Conspiracy to Steal Computer Equipment from Chicago CompanyRead the Press Release
CHICAGO —An employee of a Chicago company conspired with a New Jersey man to steal computer equipment from the company and sell it to businesses in California and Texas, according to charges in a federal indictment.
DONALD WILSON worked for the Chicago company as a data center engineer. From 2015 to 2018, Wilson conspired with IVAN SIERRA to steal computer servers, hard drives, and other information technology equipment from the company’s facilities in Chicago and Secaucus, N.J., the indictment states. Sierra then worked to sell the stolen equipment to businesses in Chatsworth, Calif., and Stafford, Texas, for a total of more than $500,000 the indictment states.
The indictment was returned Thursday in federal court in Chicago. It charges Wilson, 42, of Carol Stream, Ill., and Sierra, 38, of Lincroft, N.J., with one count of conspiracy to transport stolen goods, and two counts of transportation of stolen goods. Arraignments have not yet been scheduled.
The indictment 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 Mitchell.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The conspiracy count is punishable by a maximum sentence of five years in federal prison, while each transportation count carries a maximum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Two Defendants in Macon's "Get Dat Money" Meth Ring Plead GuiltyRead the Press Release
MACON, Ga. – Two defendants involved in Macon’s “Get Dat Money” methamphetamine drug distribution organization entered guilty pleas in federal court this morning, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Tabitha Whitehead, 36, of Macon, pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine, and Jacobi Jones, Sr., 35, of Macon, pleaded guilty to one count of misprision of felony before U.S. District Judge Tilman E. “Tripp” Self, III. Whitehead faces a maximum of twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000. Jones faces a maximum of three years imprisonment, to be followed by one year of supervised release, and a maximum fine of $250,000. They are scheduled to be sentenced on May 4, 2021 in U.S. District Court, Macon, along with the following co-conspirators who have entered guilty pleas:
Kelvin D. Carswell, aka “K-9,” “Nine,” “Kinineso Harlem Carswell,” “9ne Oharlem,” “Kninepunkin KinGcarswell,” 40, of Macon, pleaded guilty to one count conspiracy to possess with the intent to distribute methamphetamine on December 15, and faces a maximum twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000;
Quateshia Carswell, 27, of Macon, pleaded guilty to one count conspiracy to possess with the intent to distribute methamphetamine on December 1, and faces a maximum twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000;
Davan Randolph, 49, of Macon, pleaded guilty to possession with intent to distribute methamphetamine on December 15, and faces a maximum twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000;
Terrico Wade, 40, of Macon, pleaded guilty to distribution of methamphetamine on December 15, and faces a maximum twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000;
Jahmi Booker, 38, of Macon, pleaded guilty to use of communication facility on December 15, and faces a maximum of four years imprisonment, to be followed by one year of supervised release, and a maximum fine of $250,000;
Kelly Jones, 38, of Macon, pleaded guilty to use of communication facility on December 15, and faces a maximum of four years in prison, to be followed by one year of supervised release, and a maximum fine of $250,000;
Kewaunis King, 31, of Macon, pleaded guilty to use of communication facility on December 15, and faces a maximum of four years imprisonment, to be followed by one year of supervised release, and a maximum fine of $250,000; and,
Trent Burton, 50, of Macon, pleaded guilty to use of communication facility on December 16, and faces a maximum of four years imprisonment, to be followed by one year of supervised release, and a maximum fine of $250,000.
Charges are pending against co-defendants Trayvion Burney, 26, of Macon, Chad Cummings, 37, of Macon, and Henry Flowers, 32, of Macon.
There is no parole in the federal system.
According to the stipulation of fact entered into court, in 2017, the Macon office of the FBI and the Bibb County Sheriff’s Office initiated their investigation of the Carswell drug trafficking organization known as “Get Dat Money” or “GDM,” that began as early as 2002. On May 30, 2012, Carswell was incarcerated by the Georgia Department of Corrections, serving a sentence for attempted carjacking with a maximum release date of October 12, 2026. In June 2017, the FBI received information that Carswell was selling drugs while incarcerated at the Washington State Prison in Sandersville, Georgia. A search of his prison cell recovered a cellular phone with multiple SD cards and a quantity of drugs. Investigators discovered Carswell was texting his co-conspirators explicit instructions via his contraband cell phone to facilitate the distribution of methamphetamine, heroin and crack cocaine from prison. The drugs, once obtained, were sold from a residence Carswell and his co-conspirators referred to as “The Mansion” located at 373 Fulton Street in Macon. Carswell’s co-conspirators would sell drugs out of “The Mansion” at his direction. Drugs were also sold by distributors working at the behest of Carswell, at multiple motels located in Macon. Throughout the course of the conspiracy, Quateshia Carswell obtained more than 10,000 grams of methamphetamine for distribution at Kelvin Carswell’s direction.
The investigation was conducted by the FBI and the Bibb County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Steven Ouzts. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Two Defendants Arrested Following Armed Home Invasion and KidnappingRead the Press Release
FORT LAUDERDALE – On December 16-17, 2020, Kejuan Brandon Campbell, 26, Tamarac, Florida, and Dionte Alexander-Wilcox, 24, Miramar, Florida, were arrested for kidnapping and conspiracy to kidnap pursuant to a criminal complaint, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Robert Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to the criminal complaint, Campbell, Alexander-Wilcox, and another individual forcefully gained entry into the residence of the two victims, brandishing firearms and threatening to kill them if they did not provide them with twenty thousand dollars ($20,000.00) in United States currency. After multiple failed attempts to obtain the money through Cash App, Campbell forced the female to travel with him to multiple businesses in order to cash checks or withdraw money from the victim’s debit card; however, when Campbell could not get the requisite amount of money, he, Alexander-Wilcox, and the other individual spent the night at the victims’ residence, eating their food and drinking their liquor. During the evening, Alexander-Wilcox sexually assaulted one of the victims at gunpoint. The next day, after forcing the victims to increase their withdrawal limit, Campbell took one of the victims to multiple banks to withdraw over $20,000.00 in cash while Alexander-Wilcox and the other individual remained at the victims’ residence and held the other victim at gunpoint. After obtaining the money, Campbell, Alexander-Wilcox, and the other individual departed from the scene and recorded themselves counting the large stacks of money. During the course of its investigation, law enforcement recovered forensic evidence linking Campbell, Alexander-Wilcox, and the other individual to the scene of the home invasion, video surveillance and other documents of Campbell with one of the victims, and one of the firearms used during the home invasion through the use of trained canines.
The criminal complaint is only an allegation. Campbell and Alexander-Wilcox are innocent until such time that they are proven guilty. If convicted, both Campbell and Alexander-Wilcox face a maximum sentence of life imprisonment and a term of supervised release of up to 5 years.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI, the FBI Miami Violent Crime Task Force, ATF, Miramar Police Department, U.S. Marshal Service, Broward Sheriff’s Office and Lauderhill Police Department in this matter. This case is being prosecuted by Assistant U.S. Attorney Ajay Alexander.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-mj-06653.
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Three Iowa Defendants Sentenced for Sex Trafficking ChildrenRead the Press Release
DES MOINES, Iowa – Three defendants who pleaded guilty to sex trafficking children were sentenced in December 2020 announced United States Attorney Marc Krickbaum. The cases were presided over by United States District Court Judge Stephanie M. Rose.
On December 7, 2020, Tommy Tate Collins of Cedar Rapids was sentenced to 210 months in prison following a guilty plea to one count of child sex trafficking. Collins admitted in his plea agreement that he trafficked a minor child, who was 15 and 16 years old at the time, by paying her for sex acts with money and drugs.
On December 18, 2020, Albert Kelly Price was sentenced to 348 months imprisonment. Price pleaded guilty to trafficking two minors and admitted to trafficking a total of three minors who were between 14 and 16 years old. Price paid all three minors for sex acts and used physical force on each minor. Price resided in Iowa City and North Liberty.
On December 21, 2020, Arrion Marcus West, Jr. of Iowa City was sentenced to 210 months imprisonment for trafficking two minors, who were 15 and 17 years old at the time of the offenses. West trafficked the minors by advertising them on escort websites, arranging prices and sex acts with customers, transporting them to engage in sex acts, and taking proceeds from the commercial sex acts. West also used physical violence towards one victim.
Co-defendants that were previously sentenced include Isaiah Patterson, sentenced to 144 months imprisonment in January 2020 for trafficking a 15 year old by posting advertisements of her for commercial sex acts, and Kendall Andrew Streb, who was sentenced in September 2020 to 268 months imprisonment for trafficking three minors and additional offenses.
“The defendants in these cases were buyers and sellers of children in our community,” stated Krickbaum. “They exploited vulnerable teenage girls for their own sexual gratification, and collectively they will serve many decades in federal prison. Federal law does not distinguish between ‘johns’ who will pay for sex with a minor, and pimps who offer minors for sex. Both groups are serious criminals, and we will treat them as such.”
Human trafficking is defined as a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Anyone who suspects human trafficking is occurring, be it a minor engaging in paid sex acts, or anyone being coerced into prostitution or labor, is urged to call the National Human Trafficking Hotline at 1-888-373-7888.
The case was investigated by the Iowa City Police Department, with assistance from the Johnson County Sheriff’s Office, the Iowa Department of Criminal Investigation, and the Coralville Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Texan admits to attempting to illegally take cash to MexicoRead the Press Release
McALLEN, Texas – A 36-year old resident of Edinburg has pleaded guilty to bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.
Sergio Guadalupe Sauceda-Saenz is a legal permanent resident (LPR) who was residing in Edinburg. On April 4, he attempted to leave the United States through the Hidalgo Port of entry in his vehicle. Authorities conducted an outbound inspection which led to the discovery of $571,497 in bulk U.S. currency in the spare tire.
Today, he admitted to evading currency reporting requirement by knowingly concealing more than $10,000 dollars. Sauceda-Saenz acknowledged knowing he was concealing the money and that it was illegal to transport the currency from the U.S. to Mexico unreported. As part of the plea agreement, he has agreed to forfeit his interest in the seized cash.
U.S. District Judge Ricardo H. Hinojosa accepted the plea and set sentencing for Feb. 10, 2021. At that time Sauceda-Saenz faces up to five years in federal prison along with a possible $250,000 maximum fine. He could also lose his status as an LPR.
Sauceda-Saenz will remain in custody pending sentencing.
It is not a crime to carry more than $10,000, but it is a federal offense not to declare currency or monetary instruments totaling $10,000 or more to law enforcement upon entry or exit from the U.S. or to conceal it with intent to evade reporting requirements.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation along with Customs and Border Protection. Assistant U.S. Attorney Frances Blake Land is prosecuting the case.
Sinclairville Woman Sentenced on Drug Conspiracy ChargeRead 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 Tracy Griffin, 38, of Sinclairville, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, acetyl fentanyl, fentanyl, and crack cocaine, was sentenced to time served and two years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joshua A. Violanti, who handled the case, stated that in January 2019, the defendant and co-defendant Brandon Blackshear conspired to sell acetyl fentanyl, fentanyl, and crack cocaine. On January 2 and January 22, 2019, members of the Southern Tier Regional Drug Task Force conducted controlled purchases of crack cocaine from Griffin and Blackshear.
Brandon Blackshear was previously convicted and is awaiting sentencing.
The sentencing is the result of an investigation by the Bureau of Indian Affairs, under the direction of Jason Thompson, Associate Director of the Office of Justice Services; the Southern Regional Drug Task Force, under the direction of the Cattaraugus County Sheriff’s Office and Sheriff Timothy Whitcomb; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Saratoga Springs Man Charged with COVID-19 Relief Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Markhwan Berning, age 36, of Saratoga Springs, New York, was arraigned Friday on an indictment charging him with false representation of a social security number.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Michael C. Mikulka, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (DOL-OIG).
According to the indictment, between May and July 2020, Berning obtained unemployment insurance benefits, including newly created federal pandemic-related benefits, by falsely representing to the New York State Department of Labor a fake social security number as his own. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Berning faces a maximum of 5 years in prison, a term of supervised release of up to 3 years, and a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Berning appeared on Friday before United States Magistrate Judge Christian F. Hummel, and was ordered released with conditions.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. The CARES Act created, among other unemployment insurance benefits, a new temporary federal program called the Federal Pandemic Unemployment Compensation program (FPUC) that provided an additional $600 weekly benefit to those eligible for regular unemployment insurance benefits.
The case is being investigated by DOL-OIG, with assistance from the Federal Bureau of Investigation and New York State Department of Labor, Office of Special Investigations, and is being prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
This case is being investigated as part of the Department of Justice’s COVID Fraud Task Force. To learn more about the Department’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. The public is urged to report suspected fraud schemes related to COVID-19 to the National Center for Disaster Fraud (NCDF) hotline by phone at (1-866-720-5721) or via an online reporting form available at: www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.