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Friday 18 December 2020
United States Brings Federal False Claims Act Suit Against Newark LandlordRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that the United States filed a civil complaint against Goodfish Enterprises, LLC and its principal, Christopher Lukacs, in the United States District Court for the District of Delaware. The United States alleges that Goodfish and Lukacs violated the False Claims Act in connection with their participation in Department of Housing and Urban Development’s Housing Choice Voucher Program (HCVP), commonly known as “Section 8.” The HCVP is the federal government’s primary program for helping low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market.
Goodfish and Lukacs own more than 90 properties in the Sparrow Run housing development in Newark, Delaware, many of which are leased to low-income residents who receive rental assistance from the federal government through the HCVP. Since July 2015, they have received more than $950,000 in federally funded housing assistance payments.
HCVP regulations require program participants to certify that they are not charging a higher rent to tenants who receive assistance through the HCVP than they charge unassisted tenants in comparable housing units. The United States alleges that Goodfish and Lukacs frequently charged HCVP participants higher rents than unassisted tenants. As a result, the United States alleges these required certifications were false and fraudulent. In addition, the United States alleges that Goodfish and Lukacs repeatedly provided false information on HCVP forms regarding the rents they received from unassisted tenants to justify the inflated rents they sought to charge for HCVP rentals.
“When federal taxpayer money is used to provide housing assistance for low-income Delaware residents, the government must ensure that the money is well spent and that the rent being charged is appropriate,” said U.S. Attorney Weiss. “Every month for at least six years, Goodfish and Lukacs falsely certified that the rents they charged Section 8 tenants were no higher than the rents for unassisted tenants. Time and again, they inflated the rents charged to needy Delawareans and justified these rents with additional false statements, leaving the government to foot the bill. Today’s civil complaint demonstrates that this office will aggressively work to recover public money from those who fraudulently seek to overcharge the federal government.”
This matter was investigated by the Department of Housing and Urban Development Office of Inspector General. The investigation and litigation are being handled by Assistant U.S. Attorney Dylan J. Steinberg.
The complaint contains allegations only, and not findings of liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
United States Attorney Thomas L. Kirsch II Announces Departure from OfficeRead the Press Release
HAMMOND, INDIANA– United States Attorney Thomas L. Kirsch II announced today that he has resigned from the Department of Justice, effective December 18, 2020, at which time he assumed the duties of a United States Circuit Judge for the Seventh Circuit.
Mr. Kirsch was appointed to the position of United States Attorney by President Trump on October 6, 2017.
“I commend Tom Kirsch for his many years of service as United States Attorney and as a member of my Advisory Committee of United States Attorneys. Tom has faithfully led his office in Northern Indiana with integrity and an unrelenting commitment to the rule of law. Under Tom’s leadership, his Office has successfully and aggressively focused on prosecuting violent crimes, especially illegal gang activity in Northwest Indiana, and public corruption. Tom has also been a valuable member of my Advisory Committee of United States Attorney’s since 2019, advising me and the Department of Justice on policy and law enforcement matters. The Department looks forward to Tom’s service to our country as a 7th Circuit Judge,” said Attorney General William P. Barr.
“Thomas Kirsch is a lifelong Hoosier, who has worked to take on public corruption in Indiana, and has led a diverse and exemplary career. I am proud the U.S. Senate has confirmed Mr. Kirsch for the United States Court of Appeals for the Seventh Circuit,” said Senator Mike Braun
“Thomas Kirsch’s qualifications, experience, and temperament will make him the kind of judge that every Hoosier can be proud of. Throughout this process, Kirsch has made it clear that he believes in the rule of law and he understands the role of a judge is to apply the law and Constitution as written. Today, the Senate agreed Thomas Kirsch is the right judge to fill the current vacancy on the United States Court of Appeals for the Seventh Circuit, and I trust he will serve with distinction for years to come,” said Senator Young.
“Serving the citizens of Northern Indiana as United States Attorney has been the privilege and honor of a lifetime,” said Mr. Kirsch. “I believe that my Office and the talented and dedicated career civil servants that served along with me are among the best in the country. I am proud of what we have accomplished together over the past several years. I am also very grateful for the professional and hardworking federal, state, and local law enforcement officers serving Northern Indiana. Their impressive work is necessary to the continuing fight to reduce crime. I am looking forward to continuing to serve my country in a new role. I am very thankful for the support and confidence of Senator Young and Senator Braun, and I am thankful to the President for my appointment as United States Attorney and now as a Circuit Judge for the Seventh Circuit.”
“Thomas Kirsch has served Indiana with distinction and integrity the last three years as U.S. Attorney for the Northern District of Indiana, and proved time and time again his commitment to serving Hoosiers,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “I would like to thank him for his dedicated service and wish him the best in this next chapter of his career.”
“While serving as the U.S. Attorney in the in the Northern District of Indiana, Judge Kirsch’s leadership was highly respected among local, state and federal law enforcement,” commented Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “On behalf of the men and women of ATF, we wish him continued success as he serves on the 7th Circuit Appellate Court.”
“Tom Kirsch has admirably served as United States Attorney for the Northern District of Indiana, relentlessly working to protect citizens from the effects of drug trafficking and drug-related violence. Although Tom has vigorously prosecuted violent drug trafficking crimes and illegal gang activity, he is compassionate and fair-minded, considering the humanity in all circumstances and ensuring equity in all matters. I am glad that Tom has chosen to remain in public service as a 7th Circuit Judge. The country will continue to benefit from his service,” said Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration, Chicago Division.
United States Marshal Todd Nukes said, “As the U.S. Attorney, Tom Kirsch has been the ultimate professional and a man of high integrity. He remained focused and committed to fighting violent crime, drugs, and other offenses for the safety of the people in Northern Indiana.”
During his tenure as U.S. Attorney, Mr. Kirsch served as the chief federal law enforcement officer in the Northern District of Indiana, which includes 32 of the State’s 92 counties, with offices in Hammond, South Bend, and Forth Wayne. As U.S. Attorney, Mr. Kirsch oversaw the investigation and prosecution of all federal criminal violations in the Northern District of Indiana and represented the United States in all civil litigation occurring in the District. The U.S. Attorney’s Office focuses on prosecuting violent crime, drug related crime, and white collar offenses, in addition to civil and appellate litigation in federal courts.
Some of the more notable cases and accomplishments during Mr. Kirsch’s tenue are the prosecution of United States v. Samantha Elhassani, who received 78 months imprisonment for financing the ISIS terrorist group; the public corruption prosecution and guilty plea in United States v. Joseph Stahura, who was the former mayor of Whiting, Indiana; the prosecution of United States v. Jerimiah Farmer, a Latin King who was sentenced to life imprisonment for a double homicide committed in furtherance of gang activity; the gang prosecution of United States v. Ivan Reyes and Jeron Williams, Latin Count gang members who pled guilty to racketeering conspiracy and admitted their involvement in the homicides of Lauren Calvillo and Christopher White; the prosecution of United States v. Eric Weiler, who was sentenced to 60 years in prison for production of child pornography and explosives; the prosecution of United States v. Jay Joshi for illegally prescribing opioids; the prosecution of United States v. Allen Bates and many others, a multi-defendant drug and organized crime case involving the seizure of more than 120 kilograms of cocaine, several kilograms of heroin, numerous vehicles, and approximately $6.3 million in cash; and the prosecution of United States v Eric Krieg, who was sentenced to 29 years in prison for his role in an explosion that occurred at the Post Office in East Chicago, Indiana.
During Mr. Kirsch’s tenure as United States Attorney, his Office indicted over 640 firearms cases and prosecuted over 50 gang members on racketeering-related charges, including members of the Latin Kings, Latin Counts, Latin Dragons, Imperial Gangers, and Two Six Nation street gangs, obtaining convictions in numerous cases involving cold case gang homicides committed in Northern Indiana and neighboring jurisdictions. Also during his tenure, his Office’s Civil Division collected approximately $8.8 million in criminal restitution, $622,000 in criminal fines, and $17.4 million in civil actions, totaling more than $26 million collected on behalf of the government. As U.S. Attorney, Mr. Kirsch oversaw the expansion of both the Criminal and Civil Divisions, adding more prosecutors and staff to work cases in the District.
Prior to becoming United States Attorney, Mr. Kirsch was a partner at the international law firm, Winston & Strawn LLP. Before joining Winston & Strawn, Mr. Kirsch served as an Assistant U.S. Attorney in the Northern District of Indiana from 2001-2008. In 2006 and 2007, while on detail from the U.S. Attorney’s Office, Mr. Kirsch served as Counsel to the Assistant Attorney General at the U.S. Department of Justice, Office of Legal Policy in Washington, DC. Prior to serving as an Assistant U.S. Attorney, Mr. Kirsch served as a law clerk to the Honorable John D. Tinder in the Southern District of Indiana.
Mr. Kirsch has received numerous local and national awards, including the Department of Justice Director’s Award for Superior Performance and awards from The American Lawyer, The National Law Journal, Law360, and Benchmark Litigation. Mr. Kirsch is a Fellow of the American College of Trial Lawyers. Mr. Kirsch received a B.A. in Economics and Political Science in 1996 from Indiana University and a J.D. in 1999 from Harvard Law School.
US Attorney’s Office, Northern Indiana Operating StatusRead the Press Release
HAMMOND- The United States Attorney’s Office announced that Gary T. Bell is now the Acting United States Attorney.
The Vacancies Reform Act (VRA), 5 U.S.C. § 3345(a)(1), provides that when a presidentially appointed U. S. Attorney resigns, the First Assistant U.S. Attorney (“FAUSA”) of that office automatically becomes Acting U.S. Attorney. As a result of Thomas L. Kirsch’s resignation, Gary T. Bell is now the Acting United States Attorney for the Northern District of Indiana.
Mr. Bell has held the FAUSA position since earlier this year and has been in a Supervisory Attorney position since 2014. Mr. Bell joined the U.S. Attorney’s office in June of 1999 as an Assistant United States Attorney. At that time, Mr. Bell focused on violent and drug related crimes and worked mostly with the GRIT task force. He later shifted positions and focused on public corruption and white-collar crime cases before becoming a supervisor. Prior to his 20 plus year career with the U.S. Attorney’s Office, Mr. Bell was a Lake County Deputy Prosecutor. He also worked in private practice at the Merrillville law firm of Spangler, Jennings and Dougherty.
He earned a B.A. degree in Economics from the University of Michigan in May 1987 and his law degree (Juris Doctor) from Indiana University (Bloomington) in May 1990.
Under Mr. Bell’s leadership, the office looks forward to continued cooperation with federal, state and local law enforcement agencies in our joint effort to promote public safety throughout the Northern District of Indiana.
U.S. Attorney’s Office Collects over $3.9 Million for U.S. Taxpayers in Fiscal Year 2020Read the Press Release
PORTLAND, Maine: U.S. Attorney Halsey B. Frank announced today that the U.S. Attorney’s Office for the District of Maine collected more than $3.9 million in criminal, civil and asset forfeiture actions in Fiscal Year (FY) 2020.
The office collected $2,510,154.90 in criminal and civil actions in FY 2020. Of this amount, $1,266,454.39 was collected in criminal actions and $1,243,700.51 was collected in civil actions.
Working with partner agencies and divisions, the office also collected $1,402,885.75 in asset forfeiture actions in FY 2020. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“The U.S. Attorney’s Office works for the taxpayers,” said U.S. Attorney Frank. “So it is always gratifying to learn that our team’s efforts have led to the successful collection of funds on their behalf. We will continue to seek justice for crime victims and to ensure that criminals do not profit from their illegal behavior.”
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.
As a whole, the Justice Department collected more than $15.9 billion in civil and criminal actions in FY 2020. This amount 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 through 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.
U.S. Attorney’s Office Charges Nevada Man for Allegedly Murdering Indigenous Woman on ReservationRead the Press Release
RENO, Nev. — A Nevada man was arrested on December 15, 2020, for allegedly murdering an indigenous woman on the Pyramid Lake Indian Reservation, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
Michael Burciaga, 33, was charged with second degree murder within Indian Country. Burciaga made his initial appearance before U.S. Magistrate Judge William G. Cobb, who scheduled a jury trial for February 22, 2021.
“Native Americans face particularly high rates of violence, including intimate partner violence. To increase public safety at tribal communities within Nevada, our office helped launch the MMIP Initiative last year,” said U.S. Attorney Trutanich. “Because combatting domestic violence is a top priority, our prosecutors were able to work with our law enforcement partners to take swift action here — filing preliminary charges within hours — and we have continued to coordinate in the investigation of this case.”
“The FBI stands strongly with our tribal partners in our joint commitment to hold those responsible to justice,” said Special Agent in Charge Rouse. “Violent crimes, such as this horrendous act, will never go unchallenged.”
According to allegations in the criminal complaint, Burciaga stabbed the victim with multiple knives during a domestic violence incident. Shortly after midnight on December 15, Pyramid Lake Police Department officers responded to an emergency call at a house in Nixon, Nevada. Officers located the victim — a registered member of the Pyramid Lake Paiute Tribe — in the master bathroom. Officers then located a man, later identified as Burciaga, outside the residence.
As alleged, officers observed a laceration on Burciaga’s hand and rendered first aid, during which Burciaga told officers in sum and substance: “I already know what happened, and I know what I did, which is why I slit my wrist.” After officers bandaged his hand, Burciaga was transported by ambulance to a hospital. While in transit, Burciaga told officers that the victim was pregnant with his child.
If convicted, Burciaga faces a statutory maximum sentenced of life imprisonment. The sentencing of a defendant will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
A complaint contains merely allegations, and every defendant is presumed innocent until and unless proven guilty in a court of law.
The FBI and Pyramid Lake Police Department are investigating the case, which is being prosecuted by Assistant U.S. Attorney Penelope Brady.
In November 2019, the Department of Justice launched the Missing and Murdered Indigenous Persons (MMIP) Initiative, a national strategy to address missing and murdered Native Americans. The MMIP Initiative includes the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis, and training to support local response efforts. The District of Nevada was one of the first 11 U.S. Attorney’s Offices nationwide where an MMIP Coordinator was assigned, working closely with federal, tribal, state and local agencies to develop common protocols and procedure for responding to reports of missing or murdered indigenous people.
U.S. Attorney announces personnel awards, management appointmentsRead the Press Release
COLUMBUS, Ohio – United States Attorney David M. DeVillers announced today his selections for annual awards for outstanding performance, new management appointments, and his district’s recipients of national director’s awards.
“There are so many employees – this year in particular – who are worthy of recognition. A lot of people have stepped up this year and performed their jobs in an extraordinary manner during a challenging time,” U.S. Attorney DeVillers said.
Mr. DeVillers presented seven internal awards.
Senior Litigation Council Douglas W. Squires was awarded Outstanding Performance by an Assistant U.S. Attorney. Mr. Squires was recognized for prosecuting a number of complex cases, including white collar and national security matters.
Outstanding Contribution to the Mission of the U.S. Attorney’s Office was awarded to Elizabeth Rabe, Andrew Hunt, Amy Smith, Ali Gezinski, Cathy Robillard, Leslie Ide and Acquanette Lindsay. The group was recognized for their action in response to the November 2019 shooting death of Dayton Police Detective and DEA Task Force Officer Jorge Del Rio. The U.S. Attorney’s Office is currently prosecuting a number of related cases, and has filed murder, firearms and narcotics charges.
Cathy Robbilard was named as the recipient of the Outstanding Performance in Legal Support award for her work in handling the discovery in a number of murder cases in the Dayton office.
Administrative Officer Jessica Gourley was honored with the Outstanding Performance in Administration award this year. Ms. Gourley has led the district’s administrative team in keeping each of the district’s three offices functioning while safely addressing the Coronavirus pandemic.
Lillian Curtis was awarded Outstanding Performance by a Contract Employee. Ms. Curtis manages GSA requirements and the physical space of the Dayton office, where she primarily serves as the front desk receptionist.
Kevin Koller was recognized for his contributions to the district’s Appellate Division. Mr. Koller was involved in 29 appellate cases in some capacity in 2020, including two published decisions.
John Stark and Angela Trumbauer were recognized for their contributions to the district’s Civil Division, including managing demanding caseloads.
The United States Attorney also announced his appointments for three management positions, to be filled upon the retirement of Civil Chief Mark T. D’Alessandro and Assistant Deputy Criminal Chief Gary Spartis. Mr. D’Alessandro served the U.S. Attorney’s Office for 25 years, and Mr. Spartis for more than 33 years.
“These men are true public servants. They are humble, hard workers who dedicated their careers to the pursuit of justice for the citizens of the Southern District of Ohio,” U.S. Attorney DeVillers said. “Without a doubt, our district is better because of them.”
The new management selections include:
- Civil Chief – Matthew Horwitz,
- Deputy Civil Chief – Andrew M. Malek, and
- Assistant Deputy Criminal Chief – Jessica W. Knight
Mr. Horwitz joined the U.S. Attorney’s Office as a Civil AUSA in December 2012. In May 2014, Matt was designated the District’s Deputy Civil Chief, and he held that position until October 2020, when he became the District’s Civil Chief.
Mr. Malek has served as an Assistant United States Attorney for the Southern District of Ohio since 2002. He has served as the Affirmative Civil Enforcement Coordinator for the District since 2008, was appointed as a Senior Trial Counsel, and previously worked as an AUSA on defensive civil matters.
Ms. Knight joined the Southern District of Ohio as an Assistant United States Attorney in Cincinnati in 2012. She currently serves in the Columbus office and focuses on national security and white collar crime.
Finally, two district employees were selected this year as recipients of the Department of Justice 2020 Director’s Awards by the Executive Office of United States Attorneys in D.C. They include:
- Superior Performance as an Assistant United States Attorney, Appellate – Mary Beth Young
Appellate Chief Young was recognized for successfully handling the appeal in the Columbus office’s Short North Posse prosecution, U.S. v Ledbetter et al. Ms. Young’s appellate work preserved life sentences for five members, including the de facto leader of the violent gang. The combined appeal raised 15 distinct claims.
- Superior Performance in Public Affairs – Jennifer Thornton
Public Affairs Officer Jennifer Thornton was recognized for clearly and accurately coordinating local, national and international media coverage of hundreds of cases and issues in the Southern District of Ohio. This included managing media surrounding cases and events like the United States’ first extradition of an alleged Chinese spy, federal charges arising out of the August 2019 mass shooting in Dayton, a priest from Cincinnati accused of sexually exploiting children in the Philippines, and others.
“I can’t imagine a more difficult time to do our job, and every single person in our district has met the challenge. Even with one arm tied behind our back, we’re working to make a difference and seek justice for the people in the Southern District of Ohio,” DeVillers added.
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U.S. Attorney Stephen J. Cox Warns that the New Vaccine Will Bring New Opportunities for FraudRead the Press Release
BEAUMONT, Texas - With millions of people waiting for their turn to get the new COVID vaccine, it is expected that scammers will use that opportunity to prey on those willing to pay for it.
“Since the beginning of the pandemic, we’ve seen fraudsters taking advantage of public programs and supply shortages – we expect the new vaccine to provide similar platforms for deceit, and we will be ready to prosecute those responsible for vaccine-related fraud to the fullest extent of the law,” said U.S. Attorney Stephen J. Cox.
States will determine how their own vaccination plans will be rolled out but there is not expected to be any out-of-pocket charges during the public health emergency. Nevertheless, the FTC and FBI similarly warn that fraudsters may try to convince people to pay for early access to the vaccine, or to pay for the vaccine itself.
Always be suspicious of unsolicited phone calls, emails, or home visits that ask for payment information in order to receive a vaccine. No one from a vaccine distribution site will ask for your credit card or banking information. If you want to verify whether COVID-19 related solicitations or treatments are legitimate, call your health provider.
Millions of people fall victim to scams every year. If you think you have become a victim, contact the National Center for Disaster Fraud Hotline at 1-866-720-5721 or online at www.justice.gov/coronavirus. You can also submit a report to https://ReportFraud.ftc.gov.
U.S. Attorney Sofer Announces Operation Undaunted in AustinRead the Press Release
With murders in Austin up 55% over the previous year, U.S. Attorney Gregg N. Sofer, joined by dozens of federal, state and local law enforcement officials, announced in Austin today the implementation of Operation Undaunted, a program designed to tackle the rising violent crime rate, interrupt violence, protect innocent life and restore peace to Austin neighborhoods.
“When you defund the police, relax enforcement of existing criminal law, and release repeat offenders and violent criminals into our streets, increased violence is exactly what you can expect,” said U.S. Attorney Sofer. “Despite the challenges of the coronavirus and the unfair vilification of the entire law enforcement community, we remain undaunted in our commitment to protect the residents of central and west Texas.”
Operation Undaunted is a four-prong approach that draws on the partnerships among federal, state and local law enforcement coupled with prosecution authorities to combat violence. The first component is to increase the use and exploitation of the National Integrated Ballistic Information Network (NIBIN) to focus on the most violent offenders in local communities—shooters. Aggressively comparing ballistics evidence gathered from crime scenes as well as from recovered firearms to uncover ties between offenders and violent crimes is of utmost importance. The second component focuses on removing from our communities incorrigible, repeat offenders who fail to rehabilitate; continue to commit violent acts, including domestic violence; and pose a continuing threat and ongoing danger to law-abiding citizens and victims. The third component call for assertive federal prosecution of the most violent and serious robbery cases. Robberies in which a firearm was used, are committed by gang members, cartels or crews, or that involved thefts from gun stores and other federal firearms licensees that span multiple jurisdictions will receive special attention. The fourth component is collaborative engagement with military authorities to investigate and prosecute violent crimes that occur on military bases while adhering to Posse Comitatus.
Operation Undaunted represents federal, state and local law enforcement’s commitment to combat violence and restore peace to central and west Texas communities. “We simply cannot, and will not, stand idly by and watch as violent criminals take over the streets of our communities and harm innocent victims,” said U.S. Attorney Sofer.
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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.
Two Men Charged After Fraudulently Applying for Paycheck Protection Program LoansRead the Press Release
Two men were charged this week after fraudulently applying for Paycheck Protection Program (PPP) forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced U.S. Attorney Trent Shores.
Rafael Maturino, 40, of Broken Arrow, was charged with bank fraud after executing a scheme to defraud First Bank of Owasso when applying for a PPP loan under false pretenses on April 28, 2020. Adam Winston James, 44, of Tulsa, was charged with aggravated identity theft after he executed a scheme to defraud Regent Bank when he applied for a PPP loan under false pretenses on May 6, 2020. The two men were charged separately but worked together to carry out their schemes.
“The Paycheck Protection Program was developed to ease the pain of COVID-19 economic restraints on working Americans,” said U.S. Attorney Trent Shores. “It’s shameful to see this type of criminal conduct amid a pandemic when so many of our fellow citizens are struggling. Rest assured, my team is committed to protecting these federal dollars from fraudsters.”
According to court documents, Maturino applied for a PPP loan on behalf of a company he claimed to own and operate, Maturino Enterprises, Inc. Maturino submitted forms that misrepresented the company’s payroll expenditures, amount of taxes paid, and the number of people employed. As a result of his alleged scheme, he received $97, 800 from the bank.
James is alleged to have applied for a PPP loan on behalf of a company he claimed to own and operate, Velocity Innovations LLC. As part of the application, James used the identification of at least seven other people without their knowledge, fraudulently claiming they were employees of Velocity Innovations LLC. James received $125,900 from the bank as a result the scheme.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program (PPP). In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use a certain percentage of the loan towards payroll expenses.
Alleged violations of federal law must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; Small Business Administration Office of Inspector General; and FBI are the investigative agencies. Assistant U.S. Attorney Victor A.S. Régal is prosecuting the case.
Two Lawrence Brothers Indicted for Trafficking FentanylRead the Press Release
BOSTON – Two brothers were indicted by a federal grand jury this week in connection with conspiring to distribute hundreds of grams of fentanyl in Lawrence.
Jose Manuel Carmona-Mercedes, 30, and Gabriel Carmona-Pimentel, 35, were indicted on charges of conspiracy to distribute 400 grams or more of fentanyl, distribution of fentanyl, and possession with intent to distribute 400 grams or more of fentanyl.
According to charging documents, in late 2019, investigators identified Carmona-Mercedes and Carmona-Pimentel as large-scale fentanyl dealers operating in Lawrence. On four occasions in January and February 2020, an undercover police officer ordered fentanyl from Carmona-Mercedes. After the undercover officer ordered a quantity of fentanyl and negotiated the price, either Carmona-Pimentel or Carmona-Mercedes or both would deliver the fentanyl to the undercover officer from a base of operations on Lexington Street in Lawrence. On Feb. 25, 2020, after Carmona-Pimentel delivered 220 grams of fentanyl to the undercover officer, Carmona-Mercedes and Carmona-Pimentel were arrested. A search of the Lexington Street location resulted in the seizure of 1200 grams of fentanyl, documents in Carmona-Mercedes and Carmona-Pimentel’s names, plastic baggies commonly used to package drugs for street-level sales, blenders, suspected cut and digital scales.
The charge of conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl provides for a minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of distribution of fentanyl carries a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Lawrence Police Chief Roy Vasque; and Essex County District Attorney Jonathan Blodgett made the announcement today. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tulsa Man Sentenced for Fraud Scheme: Broke into Dozens of Vehicles and Stole Purses, Laptops and AmmunitionRead the Press Release
A Tulsa man was sentenced Thursday for various charges brought against him including wire fraud, illegally possessing ammunition, and possessing methamphetamine with intent to distribute, announced U.S. Attorney Trent Shores.
U.S. District Court Judge Gregory K. Frizzell sentenced William Drew Davis, 36, to 66 months in federal prison followed by four years of supervised release. The judge further ordered Davis to pay $51,740.55 in restitution representing the goods obtained by theft and fraud, and damage caused to property.
“William Davis, driven by a longstanding drug habit, pilfered people’s cars to get his hands on anything to make a quick buck,” said U.S. Attorney Trent Shores. “Theft, stolen ammunition, and drugs are a combination that never leads to anything good. The nearly six-year sentence shows that my office will not allow our streets to be polluted with illegal activity, no matter the severity. I want to thank the Tulsa and Jenks Police Departments, in particular, for the extensive work they put into the investigation of Davis’ wide-ranging crimes.”
Previously, Davis pleaded guilty to breaking into a victim’s vehicle and stealing a purse containing a debit card. He further admitted to fraudulently using the card to purchase items from various stores, spending approximately $1,350. Davis also admitted to breaking into a different vehicle and stealing 60 rounds of ammunition, knowing he was a convicted felon. He also pleaded guilty to possessing 130 milligrams of methamphetamine with the intent to distribute it to others.
In sentencing Davis, the Court also considered information concerning over two-dozen vehicle burglaries committed by Davis, in which he typically smashed car windows and grabbed purses, wallets, and other items such as laptops and personal papers, while the victims were dropping children at school, exercising at gyms, or going for a run at parks. Davis then used the stolen credit/debit cards to buy merchandise at stores across the Tulsa area. Davis was arrested by Tulsa Police officers in October 2019 while in possession of a stolen car and dozens of items taken during car burglaries.
The U.S. Secret Service, Tulsa Police Department and Jenks Police Department conducted the investigation. Assistant U.S. Attorney Kevin C. Leitch prosecuted the case.
Tri-State Area Methamphetamine Dealer Sentenced to Federal PrisonRead the Press Release
A Sioux City man who distributed large quantities of methamphetamine in and around the Tri-State area was sentenced today to 10 years in federal prison.
Tyler Hugh Clark, age 39, from Sioux City, Iowa, received the prison term after a February 18, 2020, guilty plea to conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
In a plea agreement, Clark admitted that between January 2018 and July 30, 2019, he conspired and participated in the distribution of 500 grams or more of pure methamphetamine in and around the Tri-State area. Clark was also in possession a firearm to protect himself, his drug business, and to further his participation in the methamphetamine conspiracy.
Sometime in January or early February of 2019, defendant began getting methamphetamine from Omaha for resale in and around Sioux City. Defendant got approximately 2 pounds of methamphetamine each week for 5 months, until his source of supply was arrested by law enforcement. After that, he found a new source and received about 3 more pounds of methamphetamine to sell. Defendant had over a half-pound of methamphetamine on his motorcycle when he was arrested in July of 2019.
Clark was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Clark was sentenced to 120 months’ imprisonment (60 months’ for conspiracy to distribute methamphetamine and 60 months’ for possession of a firearm in furtherance of a drug trafficking crime). He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Clark 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 Jack Lammers and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; and the Iowa Division of Narcotics Enforcement. Also involved in this investigation were the Sergeant Bluff Police Department and the Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4063.
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Toledo woman charged after receiving a package containing a kilogram of fentanylRead the Press Release
U.S. Attorney Justin Herdman announced today that a federal grand jury sitting in Cleveland has returned a two-count indictment charging Erika Vega Ramirez, age 31, of Toledo, Ohio, with conspiracy to possess with the intent to distribute controlled substances and attempted possession with the intent to distribute fentanyl.
“Fentanyl has killed thousands and thousands of Ohioans,” said U.S. Attorney Justin Herdman. “This defendant is alleged to have possessed enough fentanyl to kill 500,000 more. I am grateful for the actions of our law enforcement partners who prevented these deadly drugs from reaching the streets.”
“Battling the distribution of synthetic drugs in the U.S. is one of the Postal Inspection Service’s highest priorities,” said Inspector in Charge Lesley Allison. “This case proves Postal Inspectors and the Drug Enforcement Administration remain steadfast in their partnership to bring those who choose to distribute these illegal and dangerous narcotics to justice. This should serve as an example to criminals dealing in these dangerous and illegal substances that we are unwavering in our mission to identify and disrupt their illegal activity.”
“The defendant in this case had more than a kilogram of fentanyl in her possession — enough to give a deadly dosage to more than 500,000 people,” said DEA Special Agent in Charge Keith Martin. “Working with our federal partners at the U.S. Postal Service, we were no doubt able to save countless lives.”
According to court documents, on or about November 17, 2020, Postal Inspectors with the United States Postal Inspection Service (USPIS) identified a parcel suspected of containing drugs addressed to a residence on E. Broadway St in Toledo, Ohio. On November 18, A canine used to detect narcotics gave a positive alert on the parcel, and a search warrant was obtained. Inside the package, Inspectors discovered that the parcel allegedly contained 1001 grams of fentanyl.
On November 19, 2020, the criminal complaint states that law enforcement agents with the USPIS and Drug Enforcement Agency (DEA) conducted a controlled delivery of the parcel with the fentanyl replaced.
The criminal complaint states that an unidentified female, later identified as the defendant, opened the front door, accepted the parcel and brought it inside the residence. Shortly thereafter, Postal Inspectors and DEA task force officers executed a search warrant and detained the defendant.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including each defendant’s prior criminal record, if any, each defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the United States Postal Inspection Service and Drug Enforcement Agency. This case is being prosecuted by Assistant U.S. Attorney Deyana Unis.
To Combat Highest Level of Violent Crime in City’s History, DOJ Awards $400,000 to Support New Gun Prosecutor in LouisvilleRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman is pleased to announce $400,000 in Department of Justice funding to hire a special prosecutor to try federal firearms cases originating in Louisville, Kentucky. The first of its kind award, one of only 13 in the country through DOJ’s Project Guardian, supports violence reduction efforts in Louisville along with the federal carjacking task force, greater ATF and FBI engagement with LMPD, and the roll-out of the Group Violence Intervention (GVI) approach.
“We must bring a sense of urgency to the historic levels of slaughter and wounding that has been 2020 in Louisville, with this innovative new prosecutorial model for targeting trigger pullers doing just that,” said U.S. Attorney Russell Coleman. “Today’s announcement results from a growing partnership with one of our Commonwealth’s most thoughtful and experienced prosecutors, Tom Wine, and allows us to further draw upon the talents of a dedicated public servant like new Special Assistant U.S. Attorney Josh Porter. Lives will be saved because of it.”
“Keeping its citizens safe is the primary responsibility of government,” said Attorney General William P. Barr. “Cities plagued by violent crime need the resources to tackle it, and these grant awards will help do that. On the enforcement side, Real Time Crime Centers will make policing more efficient and targeted; and on the prosecution side, Special Assistant U.S. Attorneys will help bring more federal firearms cases to justice.”
A grant to the Jefferson County Commonwealth’s Attorney’s Office will support the hiring of a full-time local prosecutor who will be empowered to try firearms cases in federal court. Prosecuting gun crimes is central to the Justice Department’s strategy under Operation Legend and other violence reduction initiatives led by the Department. These efforts follow a sustained, systematic and coordinated approach to gun violence in which federal law enforcement agencies work closely with state and local officials to fight violent crime. Funding comes from the Bureau of Justice Assistance, a component of the Justice Department’s Office of Justice Programs.
“Russell Coleman learned of a unique opportunity in the Spring of 2020 to fund a position at his office using a state prosecutor. I was excited by the prospect of the Office of the United States Attorney and the Office of Commonwealth’s Attorney to further collaborate as we deal with the scourge of gun violence and drug trafficking in our community,” said Jefferson Co. Commonwealth’s Attorney Tom Wine. “In June when we learned our offices would be one of only 13 in the United States to be awarded a Project Guardian grant, we immediately sought out applicants for this position.”
In a ceremony today, Assistant Commonwealth’s Attorney Joshua Porter was sworn-in as a Special Assistant United States Attorney. Porter has been employed by the Commonwealth’s Attorney’s Office as an Assistant Commonwealth’s Attorney since 2014. He was promoted to the Deputy Chief of the Narcotics Division in 2018. Porter previously served in the United States Army as an Armored Cavalry Officer serving two combat tours in Iraq. He was awarded a bronze star and purple heart.
“Josh has already served our county and community on numerous levels,” Wine continued. “His service in the United States Army as an Armored Cavalry Officer included two combat tours in Iraq, where he was twice recognized for his bravery. Upon returning to civilian life he enrolled at the Brandeis School of Law. His achievements in law school included the Robert W. Zollinger Award, named for an outstanding prosecutor who served in our office in the 1960’s and 70’s. After law school, Josh worked at the office of the Jefferson County Attorney. Since October 2014 he has worked at our office and has served as the deputy division chief of the Narcotics Unit.
“While we will continue to pursue alternatives of treatment for those addicted to drugs, those who use guns and violence to perpetuate their drug trafficking must be swiftly and strongly prosecuted,” Wine said. “This enhanced collaborative effort will help us identify the offenders that are driving violent crime rates in the most violent areas of Metro Louisville. It will ensure prosecution of those offenders in the federal courts. Our Commonwealth’s prosecutors will identify those qualifying offenders for Josh and the other Assistant United States Attorneys and our federal law enforcement partners such as ATF. I am grateful for the continuing efforts of our federal, state, and local law enforcement partners to protect our citizens and make the best use of our resources.”
“This Justice Department award will go a long way toward combatting the recent, and unacceptable increase in violent crime across Metro Louisville,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “ATF looks forward to the addition of a special prosecutor in our mission to reduce gun violence in our communities. Arresting and successfully prosecuting these armed violent offenders and their sources, is a shared commitment with local, state, and federal law enforcement.”
Project Guardian is a nationwide program launched in November 2019 by Attorney General William Barr as a complementary effort to the Project Safe Neighborhoods Program (PSN). Project Guardian uses existing gun laws to comprehensively attack gun violence through the aggressive enforcement of existing laws in an effort to incapacitate the most dangerous and violent offenders.
Three Men Convicted for Roles in 2018 Fairfax MurderRead the Press Release
ALEXANDRIA, Va. – Three Virginia men have pleaded guilty to their respective roles in drug-related murder in 2018 in Fairfax.
Charles Anthony Forbes, 30, of Reston, pleaded guilty today to using a firearm to commit a drug-related murder. In March, Fredy Fabian Alfaro, 36, of Reston, and Jimmie Marcel McCray, 36, of Sterling, pleaded guilty to aiding and abetting the murder, and to conspiring to distribute marijuana.
According to court documents, from January through April of 2018, Alfaro had conspired with the victim, Michael Cooker, and others to ship marijuana from California and sell it in Northern Virginia. In April 2018, Alfaro and Cooker had a dispute over the conspiracy’s profits. On the night of April 17, 2018, Alfaro and Cooker continued their dispute through a series of electronic phone messages. In the early morning of April 18, 2018, Alfaro called McCray and offered him compensation to physically harm Cooker. Alfaro’s motive was his dispute with Cooker over the drug conspiracy. McCray then contacted Forbes and told him that Alfaro had offered remuneration to physically harm Cooker.
Around this same time, Cooker, McCray, Forbes, and another individual had been spending time together in Herndon. Around 6 a.m. on April 18, 2019, Cooker, McCray, Forbes, and the other individual drove in two separate vehicles to Chantilly. There, McCray provided Forbes with a Smith & Wesson revolver. Forbes and Cooker then left the area in one of the vehicles. Forbes drove Cooker to a wooded road in Fairfax Station. Around 6:30 a.m., Forbes pulled over to the side of the road and shot Cooker twice in the head, killing him. Forbes drove away, leaving Cooker’s body there.
On November 6, Alfaro was sentenced to a total of 21 years in prison, and McCray was sentenced to 20 years in prison. Forbes faces a maximum term of life in prison when he is sentenced on April 9, 2021.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III.
Assistant U.S. Attorneys Michael P. Ben’Ary, Marc J. Birnbaum, and Rachael C. Tucker are prosecuting the case.
This case was investigated by the Fairfax County Police Department, in partnership with the FBI, Washington Field Office’s Northern Virginia Violent Crime Task Force. The task force, consisting of FBI Agents and Task Force Officers from Northern Virginia law enforcement departments, work to investigate, identify and seek prosecution against the most violent and egregious offenders in the region.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-260.
Threat Caller Sentenced to A Year in PrisonRead the Press Release
Martin Osborn threatened to assault Representative Henry “Hank” Johnson of Atlanta
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that Martin Dale Osborn, 60 years old, of Bangor, was sentenced today to a year and a day in prison by U.S. District Judge Paul L. Maloney. Osborn pled guilty in August to threatening a federal official. Upon his release, Osborn will be supervised by the U.S. Probation Office for 3 years.
In June 2020, Osborn left a voicemail for Rep. Johnson, who represents Atlanta’s 4th Congressional District. Osborn stated, “One day you are going to see me. It’ll be about two o'clock in the morning. I'll be at your bedside and all you're going to see is me knocking the living shit out of you … terrified? You should be.” Osborn referred to Rep. Johnson, who is Black, as “boy,” and specifically linked his threat to the Congressman’s sponsorship of a gun control bill. As a result of the conviction, Osborn will be permanently barred from possessing firearms.
Judge Maloney emphasized the need to deter others from committing similar crimes, which divert scarce law enforcement resources. He warned, “Those who [make such threats] must understand the likelihood that they’re going to serve some time in incarceration is significant.”
“Every American has the right to express his or her opinion, but no one has the right to threaten another with violence.” said U.S. Attorney Birge. “Every threat will be taken seriously, and result in serious consequences.”
This investigation was a joint effort of the FBI and the U.S. Capitol Police.
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Texas Heart Hospital and Wholly-Owned Subsidiary THHBP Management Company LLC to Pay $48 Million to Settle False Claims Act Allegations Related to Alleged KickbacksRead the Press Release
Texas Heart Hospital of the Southwest LLP, a partially physician-owned hospital in Plano, Texas, and its wholly owned subsidiary, THHBP Management Company, LLC (collectively, the “Heart Hospital”) have agreed to pay the United States $48 million to resolve claims that the Heart Hospital violated the False Claims Act by knowingly submitting claims to the Medicare program that resulted from violations of the Physician Self-Referral Law and the Anti‑Kickback Statute, the Justice Department announced today.
The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare, Medicaid, and other federally funded programs. Both the Stark Law and the Anti-Kickback Statute are intended to ensure that medical judgments are not compromised by improper financial inducements.
“Inappropriate financial relationships between health care providers and their referral sources can distort physician decision-making and drive up health care costs for everybody,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “The department remains committed to ensuring that physicians act in the best interests of their patients rather than their pocketbooks.”
“Although the business of healthcare continues to evolve, our mission remains the same—to ensure that medical decision making is based on patient care and free of influence by financial consideration,” said Stephen J. Cox, United States Attorney for the Eastern District of Texas. “We commend the whistleblowers and their counsel for uncovering this arrangement and pursuing the case to a point where Defendants and the United States were able to reach a resolution that both protects the taxpayer and ensures patient care, free from financial influence.”
The settlement announced today resolves allegations that the Heart Hospital violated the Stark Law and the Anti-Kickback Statute by requiring physician owners to satisfy the Heart Hospital’s yearly 48 patient-contact requirement in order to maintain ownership in the hospital.
This settlement arises from a lawsuit filed by former Heart Hospital physician owners Mitchell Magee, M.D. and Todd Dewey, M.D. pursuant to the whistleblower or qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the government and to share in the proceeds. Under the Act, the United States may intervene in such an action or permit the whistleblower to pursue it. Although the Unites States declined to intervene in this case, it played a primary role in the discussions that led to the settlement. Dr. Dewey and Dr. Magee will collectively receive $13,920,000 as their share of the recovery.
This matter was handled on behalf of the government by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Texas, and the Department of Health and Human Services Office of the Inspector General.
The case is captioned United States ex rel. Mitchell J. Magee and Todd M. Dewey v. Texas Heart Hospital of the Southwest, L.L.P., et al., Case No. 4:16-CV-00717-ALM (E.D. Tex.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Tallahassee Doctor Pleads Guilty to Defrauding Health Insurance Providers of $29 Million and Performing Unnecessary Invasive Surgical Procedures on Hundreds of PatientsRead the Press Release
TALLAHASSEE, FLORIDA – Dr. Moses de-Graft Johnson, a dual citizen of the United States and Ghana, pled guilty today to committing health care fraud, conspiracy to commit health care fraud, and aggravated identity theft. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the plea.
Over the course of almost four years, beginning in late 2015 or early 2016 until his arrest in February 2020, deGraft-Johnson did significant harm to hundreds of patients living in the Tallahassee area. Many of these innocent victims underwent unnecessary and invasive surgical procedures, while others were victimized through medical records reflecting procedures he did not perform – erroneous and misleading records that could cause doctors in the future to determine a mistaken course of medical treatment for many patients.
“The United States will continue to work to recover the ill-gotten gains of de-Graft-Johnson’s criminal behavior, to identify information that will help his victims correct their important medical records, and to identify how he gained access to his victims so we can make sure nothing like it ever happens again,” said U.S. Attorney Keefe.
deGraft-Johnson, 46, owned and operated Thorvasc PA, a Florida corporation doing business as the Heart and Vascular Institute of North Florida (HVINF). HVINF was a physician’s office and outpatient catheterization laboratory located in Tallahassee. As part of his plea, deGraft-Johnson acknowledged engaging in a wide-ranging and consistent pattern of performing two invasive diagnostic angiography procedures - one on each leg - on hundreds of his patients, whether medically indicated or not. When his patients returned for follow-up office visits, deGraft-Johnson submitted fraudulent claims to their insurance companies stating he performed athrectomies during the appointments. Using this scheme, deGraft-Johnson admits he falsely claimed to have performed over 3,000 of these surgical procedures to clear blockages in arteries in as many as 845 of his patients’ legs.
“deGraft-Johnson’s unscrupulous behavior placed the lives of his many patients at risk while siphoning funds from vital health care programs for personal gain,” said Omar Pérez Aybar, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners to hold accountable health care professionals who prioritize greed over critical patient care.”
To date, ongoing investigation and analysis have determined that the defendant fraudulently obtained at least $29 million – and very likely more. The United States is aggressively pursuing all of deGraft-Johnson’s forfeitable assets in the U.S. and overseas, including luxury vehicles; jewelry; homes in Manhattan, Southampton, New York, Miami, and the Houston area; and more than $1 million in cash.
“Health care fraud hurts all Floridians by artificially inflating the cost of medical services and harming the integrity of private insurance,” said Florida Attorney General Ashley Moody. I am proud of the work my Medicaid Fraud Control Unit did in helping bring the defendant in this multimillion dollar health care fraud case to justice. We will continue to work with our great federal partners to identify, investigate and end health care fraud in Florida.”
deGraft-Johnson inappropriately gained access to his vulnerable victims by establishing relationships with churches, nursing homes, a hospital, and an outreach organization. The United States Attorney’s Office is working to uncover all aspects of the methods he used to identify and exploit his former patients, many of them in underserved communities. Prosecutors are also pursuing information regarding the unnecessary medical procedures and falsified medical records, so that the defendant’s former patients may be properly informed regarding their true medical conditions and can secure appropriate treatment going forward.
“Today’s plea is a direct result of the commitment by the FBI and our law enforcement partners to aggressively pursue those who willingly defraud American citizens,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “Instead of caring for his patients, this defendant targeted vulnerable members of our community, subjected them to unnecessary surgical procedures, and falsified documents so he could line his pockets with millions of taxpayer dollars. Fraud, like this, reduces the availability of critical resources and contributes to the rising cost of healthcare for all. The FBI and our law enforcement partners will continue to investigate these crimes and prosecute all those who defraud the American public for their own personal gain."
deGraft-Johnson pled guilty to 56 counts of health care fraud, conspiracy to commit health care fraud, and aggravated identity theft. The conspiracy and health care fraud charges each have a maximum prison sentence of 10 years, and a maximum fine equal to twice the value of the loss to the health care benefit program. The aggravated identity theft charge has a mandatory sentence of 2 years of imprisonment, which must be consecutive to any other sentence, and a maximum fine of $250,000. deGraft-Johnson’s sentencing hearing is scheduled for April 8, 2021, at the United States District Court in Tallahassee.
This case is the result of the collaborative work of the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Department of Commerce, the Internal Revenue Service, and the Florida Attorney General. The case is being prosecuted by Assistant United States Attorney Andrew J. Grogan.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. deGraft-JohnsonSt. Louis County armed drug dealer pleads guilty to several drug and firearms chargesRead the Press Release
ST. LOUIS, MO – United States District Judge John A. Ross accepted a plea, today, from Lemartrell Smith. The 26-year-old St. Louis, Missouri resident pleaded guilty to two counts of being in possession of a controlled substance with intent to distribute, one count of being in possession of a firearm in furtherance of drug trafficking crime and one count being a felon in possession of a firearm.
According to a plea agreement, on or about February 28, 2018, St. Louis County Police received information Smith was selling drugs in the parking lot of a bowling alley and armed with a gun. Officers pulled up to Smith’s vehicle to investigate but could not see inside due to the dark window tint. Smith refused to open the car door, so police smashed the window and removed Smith. Officers noticed from the center console, in plain view, a handgun with an extended magazine. Officers also seized 18 grams of fentanyl.
On or about March 13, 2019, St. Louis County Police learned Smith was selling fentanyl. Using an undercover detective, investigators placed a call to Smith and arranged to buy $60 worth of fentanyl. Smith instructed the undercover detective to meet at a specific location. Smith met the undercover detective, reached into a leather satchel and removed 12 capsules. Smith exchanged the capsules for $60 and drove away.
As officers attempted a traffic stop, Smith ignored all commands to pull over and started to speed away. Smith continued to evade police even after driving over a spike strip. Smith crossed into an opposite lane of traffic at a high rate of speed and crashed into another vehicle. The driver was seriously injured. Officers arrested Smith.
Officers seized the satchel and found a Glock and a loaded pistol with one round inside the chamber. Officers searched Smith’s vehicle and seized $2,870 in U.S. currency, another pistol, the $60 used by the undercover detective, five cell phones and 10.34 grams of fentanyl.
Each charge of being in possession of a controlled substance with the intent to distribute carries a penalty of no more than 20 years in prison and a fine of no more than $1,000,000. The charge of being in possession of a firearm in furtherance of a drug trafficking crime carries a penalty of no less than five years in prison and a fine of no more than $250,000. The charge of being a felon in possession of a firearm carries a penalty of no more than 10 years in prison and a fine of not more than $250,000.
Judge Ross has set sentencing for April 9, 2021.
The St. Louis County Police Department and Federal Bureau of Investigation investigated this case. Assistant United States Attorney Paul D'Agrosa is handling the case.
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South Beloit Man Sentenced to 26 Years in Prison for Producing Child PornographyRead the Press Release
ROCKFORD — A South Beloit man has been sentenced to 26 years in federal prison, to be followed by a lifetime of supervised release, on charges of producing child pornography.
ADRIAN C. PETERS, 27, pleaded guilty to the charges on Dec. 12, 2019. Peters admitted in a written plea agreement that from 2012 to 2014 he enticed seven minor victims, ranging in age from 14 to 17, to engage in sexually explicit conduct for the purpose of producing a recording on computers. Peters then transmitted some of the videos via the internet. The minor victims were from Illinois, Wisconsin, and Arizona.
U.S. District Judge Matthew F. Kennelly imposed the sentence Thursday in federal cout in Rockford.
The sentencing 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 Winnebago County Sheriff’s Office and the South Beloit Police Department assisted in the investigation. The government was represented by Assistant U.S. Attorney Michael D. Love.
Skowhegan Man Pleads Guilty to Child Exploitation CrimesRead the Press Release
BANGOR, Maine: A Skowhegan man pleaded guilty today in federal court to a 41-count indictment charging a series of child sexual exploitation offenses, U.S. Attorney Halsey B. Frank announced.
According to court records, between about January 2018 and October 2019, Christopher Raiche, 29, produced sexually explicit photographs of multiple children under the age of nine. He also possessed child pornography on his phone and in an online account. He used this online account to solicit and trade child pornography with others on the internet. Part of this activity included sending “links” to an online storage account containing part of his collection of child pornographic material.
Raiche faces up to 30 years in prison on each of four counts of sexual exploitation of children, and up to 20 years in prison on each of the remaining 37 counts alleging receipt, transportation, possession, solicitation and advertising of child pornography. He will also be subject to a fine of up to $250,000 for each count. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Homeland Security Investigations and the Maine State Police Computer Crimes Unit investigated this case. The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
San Gabriel Valley Man Admits to Cyberstalking Two Teenage GirlsRead the Press Release
LOS ANGELES – A Covina man pleaded guilty today to federal cyberstalking charges for his multiyear internet harassment campaign against two teenage girls who rejected his sexual advances.
Carl De Vera Bennington, 34, pleaded guilty via videoconference to two counts of cyberstalking.
According to his plea agreement, Bennington repeatedly sent one victim unsolicited online messages over a period of several years. When she blocked him from contacting her from one of her online accounts, Bennington created new online accounts and then continued sending her messages, including graphic messages between June and November 2019 in which he insulted the victim, demanded she engage in sex acts with him, and threatened to sexually assault her. When the victim demanded that Bennington stop harassing her, he threatened to kill her and her family.
Bennington also admitted to harassing another victim, who deactivated her social media accounts in 2017 after he solicited her to engage in a sexual relationship with him. In August 2019, after she reactivated her social media accounts, Bennington sent her numerous online messages threatening to kill her unless she responded to his demands for sex acts.
Neither victim ever met Bennington in person, according to an affidavit filed with a criminal complaint in this case. According to the complaint, Bennington frequently promoted incel (involuntarily celibate) ideology, which involves individuals who are unable to find a willing sex partner and promotes the view that women oppress men and have too much freedom to choose their own sexual partners. The ideology ranges in tone from expressing sadness and self-loathing to advocating the “absolute hatred” of women, according to court documents.
United States District Judge Dolly M. Gee has scheduled an April 14, 2021 sentencing hearing, at which time Bennington will face a statutory maximum sentence of 10 years in federal prison.
The FBI’s Joint Terrorism Task Force investigated this matter.
Assistant United States Attorney David T. Ryan of the Terrorism and Export Crimes Section is prosecuting this case.
Rogersville Man Pleads Guilty to Firearm PossessionRead the Press Release
GREENEVILLE, Tenn. – On December 17, 2020, Thomas Ray Harris, 41, of Rogersville, also known as “Tommy Gun,” entered a guilty plea before U.S. District Judge Clifton L. Corker in Greeneville.
Harris was charged with felony possession of a firearm after being convicted of an offense punishable by a term of imprisonment exceeding one year (felon in possession of a firearm). The six-count indictment charged Harris and his co-defendant, Amanda Dawn Massengill, 34, of Rogersville, with several firearms and narcotics offenses.
The co-defendant, Amanda Massengill, previously entered a guilty plea to Count One, which charges that she possessed more than five (5) grams of methamphetamine with the intent to distribute it. Massengill is also pending sentencing before Judge Corker.
The investigation was conducted by the Hamblen County Sheriff’s Office. As a part of his plea agreement, Harris agreed to a sentence of 192 months of imprisonment followed by a 5-year term of supervised release should the Court determine that he is an Armed Career Criminal.
Assistant U.S. Attorney B. Todd Martin represented the United States in court.
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Rochester Man Pleads Guilty to Sex Trafficking MinorsRead 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 Marcus Brown, 25, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to two counts of sex trafficking of minors. The charge carries a mandatory minimum penalty of 10 years in prison and a maximum of life.
Assistant U.S. Attorneys Melissa Marangola and Meghan McGuire, who handled the case, stated that in 2015, the defendant ran a sex trafficking operation with co-defendant, Ray Davis. Brown and Davis preyed upon and exploited teenagers who were homeless and vulnerable, coercing them to engage in commercial sex acts. Davis and Brown worked together to take sexually explicit photos of the minor victims and post them on Backpage.com, an online classified advertisement website that was previously shut down by the Department of Justice.
Defendant Davis was convicted by a federal jury and sentenced to serve 25 years in prison. Brown is scheduled to be sentenced on January 20, 2021, at 10:00 a.m. before Judge Siragusa.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
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Rochester Felon Sentenced for Possessing A GunRead 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 Freddy Moore, 31, of Rochester, NY, who was convicted of being a felon in possession of a firearm and ammunition, was sentenced to serve 66 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Katelyn Hartford, who handled the case, stated that the defendant was arrested on August 28, 2019, after New York State Parole officers searched his residence on Central Park in Rochester. During that search, officers found a loaded semiautomatic pistol as well as quantities of fentanyl and cocaine.
Moore was previously convicted in August of 2009 in Monroe County Court of Robbery in the First Degree and sentenced to serve eight years in prison. In October 2014, the defendant was convicted in Erie County Court of Attempted Assault in the Second Degree and sentenced to serve up to three years in prison. As a result of his prior convictions, Moore was legally prohibited from possessing a firearm and ammunition.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; and the New York State Department of Corrections and Community Supervision, under the direction of under the direction of Acting Commissioner Anthony J. Annucci.
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Quincy Man Pleads Guilty to COVID-19 Related OffenseRead the Press Release
BOSTON – A Quincy man pleaded guilty yesterday in federal court in Boston in connection with selling a lanyard that falsely claimed to protect against viruses.
Jiule Lin, 38, pleaded guilty to an Information charging him with one count of distribution and sale of an unregistered pesticide. A sentencing date has not yet been scheduled by the court.
“At the height of a raging pandemic killing thousands of people a day, this defendant tried to profit from conning people into believing that a pesticide-coated lanyard would protect them from viruses like COVID-19. This was dangerous, opportunistic fraud,” said United States Attorney Andrew E. Lelling. “We will always pursue these kinds of cases - I have zero tolerance for people who take advantage of the fears of others during a national health crisis.”
“Bogus claims by sellers claiming to offer products that control viruses continues to pose a risk to consumers nationwide,” said Tyler Amon, Special Agent in Charge for U.S. Environmental Protection Agency (EPA) Criminal Investigation Division for New England. “EPA and our law enforcement partners will continue to focus efforts on stopping the sale of these illegal products. Consumers can help protect themselves by visiting epa.gov/coronavirus for a list of EPA approved disinfectant products.”
Beginning in March and April 2020, Lin listed for sale on eBay an unregistered pesticide, “Toamit Virus Shut Out,” to buyers across the United States. Based on Lin’s eBay listing, the pesticide took the form of a card-shaped device to be worn as a lanyard around the user’s neck. The eBay listing depicted the removal of germs or viruses through the wearing of the device. Other online listings for the same product included the explicit claim that the product would protect the buyer or wearer of the product from viruses or bacteria, stating that the product’s main ingredient was chlorine dioxide and showed images of the device’s purported removal of bacteria, germs and viruses.
Under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), the EPA regulates the production, sale, distribution and use of pesticides in the United States. A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest, including viruses. Pesticides must be registered with the EPA. Toamit Virus Shut Out was not registered, and it is illegal to distribute or sell unregistered pesticides.
“HSI remains committed to investigating individuals and companies who seek to exploit our citizens through criminal means. Fraudulent schemes that have an effect on the health and safety of the public, especially during a national pandemic, are deplorable,” said David Magdycz, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Boston. “Comprising legitimate trade and endangering American citizens is a serious offense. HSI will continue to work hand in hand with our federal partners and the United States Attorney’s Office to pursue this criminal activity.”
The charging statute provides for a sentence of up to one year in prison and a fine of $25,000. Sentences are imposed by a federal judge based on the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling; Boston EPA-CID SAC Amon; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; HSI Boston Acting SAC Magdycz; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigation, New York Field Office; and Quincy Police Chief Paul Keenan made the announcement. Assistant U.S. Attorney Adam Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
Pilot Project Launched to Address Missing and Murdered Indigenous PersonsRead the Press Release
The project members are assisting in the development of initial response plans to detail how tribal communities can best respond to reports of missing persons.
GRAND RAPIDS, MICHIGAN—Federal, State, Local and Tribal leaders jointly announced Michigan’s own Missing and Murdered Indigenous Persons pilot project today. United States Attorneys Andrew Birge and Matthew Schneider were joined by Bryan Newland, President of the Bay Mills Indian Community, Dr. Aaron Payment, Tribal Chairperson of the Sault Ste. Marie Tribe of Chippewa Indians, Timothy Waters, Special Agent in Charge of the Detroit Field Division of the FBI, Col. Joe Gasper, Director of the Michigan State Police, Matthew Saxton, Executive Director of the Michigan Sheriff’s Association, Robert Stevenson, Executive Director of Michigan Association of Chiefs of Police, along with partnering Officials with the United States Marshals Service and the Bureau of Indian Affairs in making the announcement.
Members of the pilot project began meeting in late October, taking the first steps toward establishing the first tribal community response plans for missing indigenous persons cases. The plans will improve the handling of emergent missing person cases by outlining how Tribal governments, law enforcement, and other partners can best work together to respond to such cases. The plans address four core components of a proper response to a missing persons case: law enforcement, victim services, community outreach and public communications.
“Given that there are 12 Tribal communities in Michigan, and many more Tribal members living throughout the state, we adopted a pilot-program approach to help identify issues and establish initial response plans that can be shared with communities throughout the state,” explained U.S. Attorney Birge. “I am impressed with how federal, state, local and Tribal law enforcement as well as Tribal leaders are embracing the effort and progressing in an open and collaborative fashion,” he added. U.S. Attorney Schneider explained that “Everyone recognizes the sensitivity and importance of these cases and realizes that, in Michigan in particular, multiple agencies and jurisdictions must work together.”
“Bay Mills is excited to collaborate with the United States and our fellow tribes on protecting women and vulnerable people in our communities,” said Bryan Newland, President of the Bay Mills Indian Community. “For too long, we have allowed the problem of violence against Indian women and vulnerable people to fester. This initiative will start the healing process and ensure that our people receive the protections they deserve.”
Dr. Aaron Payment, Tribal Chairperson of the Sault Ste. Marie Tribe of Chippewa Indians, noted: “In 2016, according to the CDC, homicide was the third leading cause of death for Native women and girls between the ages 1-19 and sixth leading cause of death for ages 20-44. Time is of essence as the first 72 hours after an individual goes missing are the most crucial according to National Indigenous Women’s Resource Center. The Sault Tribe and Bay Mills have pioneered capacity building in our respective judicial systems including state certification of tribal law enforcement officers, enhancing our tribal courts, and expanding jurisdiction under the Tribal Law and Order Act and the Violence Against Women Act. We have long had mutual aid law enforcement agreements to ensure there are no holes in coverage and jurisdiction. After 9/11, we worked as a unified team to ensure public safety including comprehensive table-top exercises. I envision our collaboration around MMIP to be a similar critical incident exercise and relationship to deal with what is emerging as an epidemic of missing and murdered indigenous people.”
“The FBI will continue to partner with state, local and tribal law enforcement agencies to combat violent crime and create safer communities for the indigenous people in Michigan,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “We are prepared to surge investigative capacity, provide specialized skills and training, perform data analysis, or deploy national assets in our effort to provide justice for families mourning a murder victim and assistance to communities searching for a missing friend or neighbor.”
“It is critically important that all law enforcement agencies work closely together,” said Matthew Saxton, Executive Director of the Michigan Sheriff’s Association. “We are fully supportive of agencies assisting each other with whatever capabilities they may have – especially in the event of a reported missing child or adult under suspicious circumstances. This initiative is a great way to help identify and organize the resources and capabilities of our law enforcement agencies and their capabilities throughout the State of Michigan.”
Michigan is among the first of six pilot-program states developing community response plans, in accordance with the U.S. Attorney General’s Missing and Murdered Indigenous Persons Initiative and the President’s Operation Lady Justice Task Force. Importantly, these plans likewise further the goals of the recent Savanna’s Act legislation. The other states are Oklahoma, Montana, Minnesota, Alaska and Oregon.
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Pharmacist Pleads Guilty to Federal Charge of Murder for Hire—Previously Pleaded Guilty to Federal Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – David Robinson, age 51, of Baltimore, Maryland, pleaded guilty on December 17, 2020, to a federal charge of murder for hire. Robinson, formerly a licensed pharmacist who owned and operated the Frankford Family Pharmacy, pleaded guilty on October 10, 2018, to a federal drug conspiracy involving the distribution of oxycodone and alprazolam outside the scope of professional practice and not for a legitimate medical purpose. Robinson admitted that he ordered a “hit” on the person he believed had cooperated with law enforcement that led to his indictment on those charges. Robinson’s pharmacist license was suspended on August 7, 2017.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“We have zero tolerance for any effort to intimidate or retaliate against witnesses,” said U.S. Attorney Robert K. Hur. “Those who attempt to tamper with or retaliate against a federal witness will be brought to justice.”
According to Robinson’s plea agreement, from January 2016 to July 2016, law enforcement used a confidential source, CS-1, to make several controlled purchases of oxycodone and alprazolam from Robinson at his pharmacy located in the 5400 block of Sinclair Lane in Baltimore. On June 22, 2017, a federal grand jury in Maryland indicted Robinson for a drug conspiracy involving the distribution of oxycodone and alprazolam. Robinson was arrested on June 27, 2017 and was released from custody on June 29, 2017, under the supervision of U.S. Pretrial Services. On October 10, 2018, Robinson pled guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone and alprazolam and one count of distribution and possession with intent to distribute oxycodone and alprazolam. Robinson was continued on conditions of release until his sentencing, scheduled for February 15, 2019.
On October 27, 2018, the Baltimore City’s Citi-Watch camera system captured a drug transaction, which led to the arrest of an individual, CS-2. A search of CS-2’s vehicle resulted in the recovery of two shoeboxes containing a total of 35 stock pharmacy bottles of the prescription medications promethazine and clonidine.
CS-2 had obtained the prescription medications from David Robinson. CS-2 had known Robinson for approximately three years, and had previously purchased oxycodone, Xanax, clonidine, and promethazine from Robinson at the Frankford Family Pharmacy. After the search warrant was executed at Robinson’s pharmacy on June 27, 2017, Robinson began providing CS-2 with case lots of boxes of medications in exchange for cash and no prescription was required. Robinson continued to sell promethazine and clonidine and six months after the raid, Robinson was still ordering pills from his vendors.
As detailed in his plea agreement, following his arrest in 2017, Robinson told CS-2 about an individual that Robinson believed had cooperated with law enforcement and led to his arrest (i.e., CS-1). CS-2 and Robinson had a discussion about CS-1 being killed. After some time, the two agreed to have CS-1 killed. Robinson provided CS-2 with some information about CS-1. CS-2 told Robinson that he/she knew someone that could do a “hit” on CS-1. CS-2 told Robinson that the fee would be $5,000 up front and $5,000 when CS-l was killed.
Robinson admitted that from December 13, 2018 through February 7, 2019, CS-2 made three controlled purchases of drugs from Robinson, at the direction of law enforcement, using cash provided by DEA agents. CS-2 purchased a total of 118 stock pharmacy bottles of clonidine, each containing 100 tablets; and 24 stock pharmacy bottles of 50 mg promethazine tablets, with each bottle containing 100 tablets. Robinson did not request, nor did CS-2 provide, a prescription for any of the drugs.
During a controlled purchase on January 24, 2019, CS-2 and Robinson discussed the murder of CS-1 (which was audio-recorded). During this conversation, they discussed a $5,000 fee that had already been paid to the hitman, and that an associate of the hitman had information about the location of CS-1. The associate wanted an additional $3,000 to be paid to him/her in order to provide CS-1’s location to the hitman. Robinson was upset over this additional fee required to identify the location and accomplish the murder of CS-1 and did not agree to pay the additional fee. On February 4, 2019, CS-2 sent a text message (using his cell phone) to Robinson (at his cell phone) advising that he had provided the additional $3,000 in order to obtain CS-1’s address.
On February 14, 2019, CS-2 called Robinson and told Robinson that the murder was done and that the hitman would want his money. CS-2 then met with Robinson, who provided CS-2 with $2,000. CS-2 put the cash in his pocket and Robinson asked CS-2 for proof that the murder had been completed. CS-2 showed Robinson several fake photos in which it appeared that CS-l had been bound with zip ties, shot several times, and killed. After the meeting, law enforcement arrested Robinson and CS-2.
Robinson and the government have agreed that, if the Court accepts the plea, Robinson will be sentenced to 10 years in federal prison, consecutive to any sentence imposed in the drug conspiracy case. U.S. District Judge George L. Russell, III has scheduled sentencing for both of Robinson’s cases on March 4, 2021, at 10:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark and Samika N. Boyd, who are prosecuting the case.
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Ontario Company Pleads Guilty to Dumping Waste Water into Lake Ontario Violating the Clean Water ActRead 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 the Algoma Central Corporation, headquartered in St. Catharines, Ontario, Canada, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. to a negligent violation of the Clean Water Act and will face a significant fine.
“The Great Lakes represent one of the most valuable resources in our region,” noted U.S. Attorney Kennedy. “This Office and our law enforcement officers will not hesitate to act to protect our natural resources and our environment from those who harm them.”
Assistant U.S. Attorney Aaron J. Mango and Trial Attorney Patrick Duggan of the Department of Justice Environmental Crimes Section, who are handling the case, the case, stated that the Algoma Central Corporation operated a fleet of dry and liquid bulk carriers operating on the Great Lakes. One of the vessels in the defendant’s fleet was the M/V Algoma Strongfield (Strongfield). Built in China, the Strongfield was delivered to Canada on May 30, 2017, by a crew from Redwise Maritime Services, B.V. (Redwise), a vessel transport company based in the Netherlands.
During the Strongfield’s delivery voyage, while manned by a Redwise crew, the oily water separator and oil content monitor malfunctioned or failed on multiple occasions, which resulted in an accumulation of unprocessed oily bilge water. On May 5, 2017, an Algoma employee directed Redwise to transfer and store the unprocessed oily bilge water in the Strongfield’s used wash water tank to avoid an overboard discharge of unprocessed bilge water into the Pacific Ocean. The wash water tank was intended to hold deck and cargo hold wash water and is not listed on the Strongfield’s International Oil Pollution Prevention certificate. Between May 5, 2017, and the Strongfield’s arrival in Canada, the Redwise crew made several additional transfers of unprocessed oily bilge waste into the wash water tank to avoid overboard discharges of untreated bilge water.
On May 19, 2017, as the Strongfield was transiting the Panama Canal, an Algoma employee boarded the vessel until the vessel’s arrival in Canada, where he assumed the duties of Chief Engineer. On May 30, 2017, the Strongfield arrived in Sept-Iles, Quebec, Canada, at which time the Redwise crew handed over operation of the vessel to an Algoma crew. Although some of the Algoma crew were advised that the wash water tank contained unprocessed oily bilge water, Algoma acted negligently in failing to inform all onboarding Algoma crewmembers and the inspectors of the contents of the wash water tank.
On June 6, 2017, the Stongfield was transiting Lake Ontario. While in the waters of the United States within the Western District of New York, the 3rd Officer on board the Strongfield requested permission to empty the contents of the wash water tank into Lake Ontario, and the Captain approved the discharge. Because Algoma had negligently failed to inform the 3rd Officer and the Captain what the wash water tank contained, approximately 11,887 gallons of unprocessed oily bilge water were released into Lake Ontario. The discharge was stopped when another Algoma employee learned of the discharge and informed the 3rd Officer and Captain that the wash water tank contained unprocessed oily bilge water and instructed them to stop the discharge immediately. Following the discharge on June 6, 2017, Algoma contacted Canadian and United States authorities to report the discharge.
The plea is the result of an investigation by the U.S. Coast Guard Investigative Service, under the direction of Resident Agent-in-Charge Cindy C. Buckley, Buffalo, NY, and Resident Agent-in-Charge Edward L. Songer, Detroit, MI.
Sentencing is scheduled for April 14, 2021, before Judge Schroeder.
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Omaha Woman Sentenced for Distributing MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Victoria Zoltowski, 34, was sentenced today in federal court in Omaha, Nebraska, for possession with intent to distribute 50 grams or more of actual methamphetamine. United States District Judge Robert F. Rossiter, Jr. sentenced Zoltowski to 120 months’ imprisonment. There is no parole in the federal system. After her release from prison, she will begin a five-year term of supervised release.
On February 13, 2018, officers from the Omaha Police Department served a search warrant at Zoltowski’s residence. Inside, officers located Victoria Zoltowski. Officers located a shoe box in her bedroom, and it contained 1,011 grams of methamphetamine.
This case was investigated by the Omaha Police Department.
Ohio man admits to soliciting minor for child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – David Dorst, of Shade, Ohio, has admitted to a child pornography charge, U.S. Attorney Bill Powell announced.
Dorst, age 59, pled guilty to one count of “Solicitation of Child Pornography.” Dorst admitted to asking a minor in Harrison County to send material of the minor engaging in sexually explicit conduct. The crime occurred in February 2020.
Dorst faces at least five years and up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Bridgeport Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
New York Man Sentenced on Federal Drug ChargeRead the Press Release
PORTLAND, Maine: A Brooklyn, New York man was sentenced today in federal court for conspiring to distribute and possess with intent to distribute cocaine base and heroin, U.S. Attorney Halsey B. Frank announced.
Chief U.S. District Judge Jon D. Levy sentenced Edward Canty III, aka “Demo,” 32, to 66 months in prison and three years of supervised release. A jury found Canty guilty on October 24, 2019, following a four-day trial.
According to trial evidence, between September 2016 and December 2016, Canty and others conspired to distribute and possess with the intent to distribute cocaine base and heroin transported from outside Maine for distribution in Portland.
At the time of his participation in the conspiracy in Maine, Canty was on federal supervised release for a federal drug trafficking conspiracy charge out of New York. He and another conspirator, Akeem Cruz, 31, of Brooklyn, New York, assaulted another individual during the drug conspiracy. In commenting on Canty’s engagement in violence, Chief Judge Levy noted the assault and then added, “Selling heroin to heroin addicts requires a certain level of callousness.”
Another conspirator who was also found guilty at trial, Melquan Jordan, 31, also of Brooklyn, New York, has yet to be sentenced.
The Portland and South Portland Police Departments; the Maine Drug Enforcement Agency; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the FBI investigated the case.
NDTX Round-Up: December 11-17Read the Press Release
GUILTY PLEA – EDUARDO HUERTA
On December 15, Eduardo Huerta, 20, plead guilty to possession with intent to distribute a controlled substance. Agents detained Huerta at a home which doubled as a methamphetamine conversion lab. At the residence, agents seized 18 large containers of liquid methamphetamine, 21,332 grams of crystal methamphetamine, and 3,013 grams of heroin. Huerta faces up to 40 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull is prosecuting this case.
GUILTY PLEA – EMMANUEL CASTRO CALZADA
On December 15, Emmanuel Castro Calzada, 29, plead guilty to possession with intent to distribute a controlled substance. In January 2019, Calzada was in Dallas was in possession of approximately 6 kilograms of methamphetamine, 32 grams of cocaine, 30 grams of heroin. He possessed these narcotics with the intention to distribute and sell them for a profit. Additionally, Calzada possessed a .40 caliber handgun and $17,415 in drug proceeds. Calzada faces up to 20 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney P.J. Meitl is prosecuting this case.
SENTENCING – MAYELI MOLINA
On December 10, Mayeli Molina, 32, was sentenced to 292 months in federal prison for conspiracy to distribute a controlled substance. According to evidence presented at trial, Molina possessed methamphetamine of at least 500 grams with the intent to distribute it to others in the Northern District. She was found guilty in December 2019. This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Fort Worth Police Department, OCDETF, and HIDTA. Assistant U.S. Attorney Phelesa Guy prosecuted this case.
GUILTY PLEA – VICTOR ALFONSO MAUICIO-DEL RIO
On December 8, Victor Alfonso Mauricio-Del Rio, 33, plead guilty to conspiracy to possess with intent to distribute a controlled substance. Mauricio-Del Rio was intercepted by a court authorized wire and electronic wiretap where he used coded language to discuss the purchase of cocaine. Officers conducted a traffic stop of Mauricio-Del Rio’s co-conspirators and seized three and half kilograms of cocaine. Law enforcement also conducted a traffic stop of Mauricio-Del Rio vehicle and he was found to have cocaine. Mauricio-Del Rio faces up to 40 years in federal prison. This case was investigated by the Drug Enforcement Administration, Texas DPS, and OCDETF. Assistant U.S. Attorney George Leal is prosecuting this case.
Member of Monument Street Drug Trafficking Organizations in East Baltimore Sentenced to Five Years in Federal Prison and Another Pleads Guilty to Federal Drug Distribution ChargesRead the Press Release
Baltimore, Maryland – Tony Solomon, age 54, of Baltimore, pleaded guilty yesterday to federal charges of conspiracy and possession with intent to distribute controlled substances, related to his participation in a conspiracy to distribute cocaine and/or fentanyl in the Monument Street area of East Baltimore. U.S. District Judge Ellen L. Hollander also sentenced co-defendant, Cheyenne Ellison, age 39, also of Baltimore, yesterday to five years in federal prison, followed by three years of supervised release, for his role in the conspiracy.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“The Baltimore OCDETF Strike Force is a critical part of our strategy to make Baltimore safer by identifying and focusing on those groups responsible for the most violent crime in our city,” said U.S. Attorney Robert K. Hur. “The Monument Street area is one of the first areas the Strike Force has targeted and we anticipate that Strike Force cases will make these neighborhoods safer for the law-abiding citizens that live there.”
According to their guilty pleas, in July of 2018, Drug Enforcement Administration (“DEA”) Strike Force Group 1 began an investigation of the Monument Street corridor in East Baltimore, which is known to support a high volume of street-level drug distribution and acts of violence associated with the drug trafficking. During the investigation, law enforcement identified multiple street-level drug trafficking “shops,” with the two most prominent located in the 400 block of North Montford Avenue at Jefferson Street (“the Montford DTO”) and in the 2400 block of East Monument Street at Port Street (the “Out the Mud,” or “OTM DTO”).
As detailed in their plea agreements, investigators identified Solomon as a source of supply in the conspiracy and law enforcement identified Ellison as a middleman, who coordinated controlled substances for members of the conspiracy. Law enforcement overheard the defendants discussing the distribution of drugs, including cocaine and crack cocaine, heroin, and fentanyl, among others.
Solomon admitted that he maintained at least two stash locations used for storing, cutting, and packaging controlled dangerous substances with other members of the conspiracy, located in the 1600 block of North Spring Street and the 3200 block of Bright Street, both in Baltimore. Solomon conspired with coconspirators to use the North Spring Street location to meet with drug customers for the purposes of collecting money and providing controlled substances to them.
In January 2019, law enforcement executed search warrants at both stash locations, and at a residence associated with Solomon, recovering a total of approximately 200 grams of crack, 5 grams of cocaine and 147 grams of a heroin/fentanyl mixture; drug paraphernalia, including a small hydraulic press, small and large kilo presses, digital scales, gel caps, and packaging materials; more than $41,000 in cash, believed to be drug proceeds; and a loaded .45-caliber semi-automatic pistol with eight .45-caliber cartridges, which Solomon admitted he possessed in connection to his drug trafficking activities. Solomon is prohibited from possessing a firearm or ammunition as a result of a previous felony conviction. Additionally, law enforcement seized 1,400 grams cocaine/crack cocaine during the execution of a warrant at Egan Davis’s residence. Based on intercepted communications, investigators believe that a portion of the cocaine/crack cocaine seized during the execution of the warrant was coordinated by Ellison with other co-conspirators. Ellison and Solomon, admitted that they possessed the cocaine with the intent to distribute it for sale. Solomon also admitted possessing the heroin/fentanyl mixture with the intent to distribute it.
Throughout the course of his involvement, it was reasonably foreseeable to Solomon, and within the scope of the conspiracy that he or other members of the conspiracy would distribute more than five kilograms of cocaine, as well as quantities of cocaine base, heroin, and fentanyl during the course of and in furtherance of the conspiracy. It was reasonably foreseeable to Ellison, and within the scope of the conspiracy that he or other members of the conspiracy would distribute at least 500 grams but less than two kilograms of cocaine, as well as quantities of crack cocaine, heroin and fentanyl during the course of and in furtherance of the conspiracy.
Solomon and the government have agreed that, if the Court accepts the plea agreement, Solomon will be sentenced to 10 years in federal prison. Judge Hollander has scheduled sentencing for Solomon on February 23, 2021.
Of the 25 defendants indicted in this case, 12—including Ellison, Solomon, and Egan Davis—have pleaded guilty. Last week, co-defendant Amin Boyd, age 42, of Baltimore, Maryland, was sentenced to seven years in prison. The remaining defendants have trial dates in January or May 2021.
This case was investigated as part of the Baltimore Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, an initiative designed to combat violent crime in Baltimore. The mission of the Baltimore OCDETF Strike Force is to disrupt and dismantle the most violent gangs and drug trafficking organizations, and their financial infrastructure, in the Baltimore metropolitan area. In addition to the Maryland U.S. Attorney’s Office, members of the Strike Force include the Baltimore City State’s Attorney’s Office, DEA, FBI, Homeland Security Investigations, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Postal Inspection Service, the U.S. Marshals Service, the Washington/Baltimore HIDTA, the Maryland State Police, the Maryland Department of Public Safety and Correctional Services, the Maryland Transportation Authority Police, the Maryland National Guard, Baltimore County, Baltimore City, and Anne Arundel County Police Departments, and the Baltimore City Sheriff’s Office.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys LaRai Everett and James T. Wallner, who are prosecuting the case.
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Mcloud Man Sentenced to 57 Months in Federal Prison for Unlawfully Possessing a Fully Automatic MachinegunRead the Press Release
OKLAHOMA CITY – Christopher Steven Ledbetter, 29, of McLoud, Oklahoma, has been sentenced to serve 57 months in federal prison for unlawful possession of a fully automatic machinegun, announced U.S. Attorney Timothy J. Downing.
According to court records and proceedings, in March 2020, the Federal Bureau of Investigation (FBI) learned that Ledbetter might be in possession of a fully automatic machinegun. FBI then reviewed publicly available materials on the internet associated with Ledbetter that depicted Ledbetter on multiple occasions shooting what appeared to be a fully automatic machinegun and threatening law enforcement. On June 4, 2020, FBI encountered Ledbetter in Oklahoma City. In his vehicle, FBI discovered a fully automatic AK-47 style carbine machinegun. FBI also executed a search warrant at Ledbetter’s residence in McLoud. FBI located two homemade grenades, two homemade Molotov Cocktails, and stolen firearms. Ledbetter was arrested without incident and charged with unlawfully possessing a fully automatic machinegun. Ledbetter was interviewed by FBI and fully confessed to his conduct.
Federal law prohibits the possession of a fully automatic machinegun as defined in the National Firearms Act, except under limited circumstances. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) searched its federal licensing system and determined that Ledbetter did not have the required licenses to possess a machinegun.
On June 26, 2020, Ledbetter pleaded guilty to possessing the automatic machinegun in violation of federal law.
On December 17, 2020, U.S. District Judge Charles B. Goodwin sentenced Ledbetter to 57 months in federal prison, followed by three years of supervised release. In imposing the sentence, Judge Goodwin noted the nature and circumstances of Ledbetter’s conduct leading to his arrest, including reckless endangerment and the attempted evasion of McLoud police.
"The successful prosecution of this case demonstrates that those who put our communities at risk, especially through the unlawful possession of firearms, will be held accountable," said U.S. Attorney Downing. "It also emphasizes the strength of law enforcement collaboration. We are grateful to all those agencies who were invested in bringing Ledbetter to justice."
"The success of this case is a direct result of law enforcement agencies working together in the state of Oklahoma to target threats to the safety and well-being of our citizens," said Melissa Godbold, Special Agent in Charge of the FBI Oklahoma City Division. "The people of Oklahoma deserve this collective effort, and I want to thank our law enforcement partners for helping to keep our communities safe."
This case is a result of an investigation by the FBI Oklahoma City Division, the ATF Dallas Field Division, the Oklahoma Highway Patrol, the Oklahoma City Police Department, the McLoud Police Department and the Lincoln County Sheriff’s Office. Assistant U.S. Attorneys Matt Dillon and Jessica Perry prosecuted the case.
Maryland U.S. Attorney’s Office Seizes Two Domain Names Purporting to be Websites of Biotechnology Companies Developing Treatments for Covid-19Read the Press Release
Baltimore, Maryland – The U.S. Attorney’s Office for the District of Maryland has seized “mordernatx.com” and “regeneronmedicals.com,” which purported to be the websites of actual biotechnology companies developing treatments for the COVID-19 virus, but instead appears to have been used to collect the personal information of individuals visiting the sites, in order to use the information for nefarious purposes, including fraud, phishing attacks, and/or deployment of malware. Individuals visiting those sites now will see a message that the site has been seized by the federal government and be redirected to another site for additional information.
The seizure of the domain names was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge John Eisert of Homeland Security Investigations - Baltimore.
“The U.S. Attorney’s Office and our law enforcement partners are committed to bringing to justice the criminals that try to take advantage of this global pandemic to line their pockets at the expense of the most vulnerable,” said U.S. Attorney Robert K. Hur. “I urge citizens to remain vigilant. Don’t provide personal information or click on websites or links contained in unsolicited e-mails. Don’t become a victim.”
“These individuals took advantage of fear during the global pandemic and attempted to steal personal information for nefarious purposes,” said HSI Baltimore Special Agent in Charge John Eisert. “From the cyber realm to counterfeit medication to financial crime, Homeland Security Investigations is committed to detecting, investigating, and disrupting all types of fraud related to the COVID-19 pandemic.”
According to the affidavits filed in support of these seizures, these investigations began in early December 2020, after corporate security for one of the companies located the spoof website and contacted HSI’s Intellectual Property Rights Center (“IPRC”) and the HSI Cyber Crimes Center (“C3”). The other website was identified during an ongoing HSI C3 operation targeting malicious websites. The cases were referred to HSI Baltimore for investigation.
Specifically, on December 10, 2020, the Global Head of Corporate Security for a biotechnology company headquartered in Cambridge, Massachusetts, which has developed a COVID-19 vaccine that is awaiting approval by the U.S. Food and Drug Administration (FDA), contacted HSI IPRC and C3 by e-mail to report that the company’s Cybersecurity Team had detected the domain name mordernatx.com, a fraudulent replication of the company’s website. A review of that website’s online content displayed the name and trademarked logos for the biotechnology company. As detailed in the affidavit, the logos, markings, colors, and text of the mordernatx.com webpage showed no substantive differences from the genuine company website’s landing page, other than the fact that the fraudulent website had a slight misspelling of the company’s name. However, individuals who clicked on the “Contact Us” tab, were redirected to an entry form requesting information such as name, company/institution, title, phone, e-mail, and comments/questions. Additional investigation revealed that the mordernatx.com domain name was registered on about December 8, 2020, through a company headquartered in Kuala Lumpur, Malaysia, with no personal information for the registrar listed.
The second domain name seized, regeneronmedicals.com, was identified on December 9, 2020, during an ongoing HSI C3 investigation targeting malicious websites. Investigators found that the subject domain name contained the name and trademarked logos of, and was visually similar to, the webpage of a biotechnology company headquartered in Westchester County, New York, which was granted an emergency use authorization by the FDA for an antibody cocktail used to treat COVID-19 in high-risk patients with mild to moderate COVID-19. Further investigation revealed that the subject domain name contained two e-mail addresses and a telephone number not found on the official company website. The phone number appeared to be a Voice over IP (VOIP) number. In addition, the “Contact Us” page on the regeneronmedicals.com site directed “Healthcare professionals, patients or caregivers requesting specific product information, reporting an adverse event or reporting a product complaint” to contact the “Medical Department” at the VOIP number. The same “Contact Us” tab also provided a link to submit medical inquiries which directed users to a page that was different from the corresponding page on the authentic website. Investigators also found that the subject domain name was registered on December 6, 2020, and lists the registrant as an individual residing in Onitsha Anambra, Nigeria.
By seizing these sites, the government has prevented third parties from acquiring the names and using them to commit additional crimes, as well as prevented third parties from continuing to access the sites in their present form.
Federal law enforcement agencies are united in our efforts to fight against COVID-19 fraud. HSI has identified tips to recognize and report COVID-19 fraud. If you believe you are a victim of a fraud or attempted fraud involving COVID-19, you may also call the National Center for Disaster Fraud Hotline at 1-866-720-5721 or for more information e-mail justice.gov/coronavirus.
United States Attorney Robert K. Hur commended HSI for its work in these investigations. Mr. Hur thanked Assistant U.S. Attorneys Sean Delaney, Aaron S.J. Zelinsky, and Thomas M. Sullivan, who are handling these cases.
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Madison County Man Sentenced to 21 Years for His Involvement in a Drug Trafficking OrganizationRead the Press Release
Jackson, TN – Xavier Demetrius James, 35, of Jackson, Tennessee, has been sentenced to 252 months in federal prison for conspiracy to distribute and possess with intent to distribute over 50 grams of actual methamphetamine. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, in March 2017, DEA agents began an investigation into Rolando Lopez and his drug trafficking organization. Agents discovered that Lopez and other co-conspirators were trafficking in methamphetamine, heroin, marijuana, and other illegal substances from Texas to Tennessee. Investigators utilized six Title III wiretaps along with surveillance, confidential sources, traffic stops, and search warrants to investigate this drug trafficking organization, which was responsible for trafficking hundreds of pounds of actual methamphetamine.
James was found to have taken part in this conspiracy. He helped transport four loads of actual methamphetamine totaling around 45 kilograms to co-defendant Ronald Parham's residence in mid-2017, and he was found in possession of 20 kilograms of actual methamphetamine during a traffic stop in the Atlanta, Georgia area on November 27, 2017. It was later determined that James was there to buy methamphetamine while on his way to Knoxville, Tennessee, to distribute the drugs to others when he was stopped by the police. In all, James was held responsible for distributing or possessing with the intent to distribute 75 kilograms of actual methamphetamine.
On December 15, 2020, Chief U.S. District Judge S. Thomas Anderson sentenced James to 252 months in federal prison to be followed by five years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Use and trafficking of methamphetamine continues to destroy lives, families, and communities across West Tennessee. The joint cooperation between federal, state, and local law enforcement in this case demonstrates our ability and resolve to dismantle drug trafficking organizations, including those that distribute narcotics from locations outside the country. The significant sentence in this case sends a clear message to those drug dealers who distribute poison in West Tennessee: You cannot prey upon our citizens for your selfish personal gain with impunity; there will be a reckoning."
This is the latest sentencing in a case involving multiple defendants including Rolando Lopez, Saul Vega Flores, Virginia Torres, Ronald Lynn Parham, Tammy Ranger, Marcus Jones, and Xavier Demetrius James on charges of conspiracy to distribute methamphetamine.
On July 9, 2019, Chief U.S. District Court Judge S. Thomas Anderson sentenced Lopez to life in federal prison to be followed by five years supervised release.
https://www.justice.gov/usao-wdtn/pr/rio-grande-texas-man-sentenced-life-imprisonment-conspiracy-distribute-methamphetamine.
Co-defendant Ronald Parham was sentenced to 120 months in federal prison followed by three years supervised release.
https://www.justice.gov/usao-wdtn/pr/kenton-tennessee-man-sentenced-200-months-conspiracy-distribute-methamphetamine
The Drug Enforcement Administration (DEA) investigated this case.
Assistant U.S. Attorneys Josh Morrow and Jerry Kitchen prosecuted this case on behalf of the government.
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Lancaster Man Pleads Guilty to Bank RobberiesRead the Press Release
BOSTON – A Lancaster man pleaded guilty today in federal court in Worcester to three bank robberies.
Matthew Alden, 26, pleaded guilty to three counts of bank robbery before U.S. District Court Judge Timothy Hillman who scheduled sentencing for April 8, 2021.
On Dec. 12, 2019, Alden entered the Cornerstone Bank on South Main Street in Leicester and made statements to the bank tellers such as “give me all the money,” “no dye packs,” and “I’m not going to hurt anyone.” Alden wore a black leather jacket, black sweatshirt, tan pants, a black hat, a black and white bandana over his face, glasses and black gloves. Alden stole $9,906, placed the cash into a black drawstring bag and fled the scene.
On Dec. 27, 2019, Alden entered the Avidia Savings Bank on Maple Street in Marlborough and made statements to the tellers such as “give me all your money so no one gets hurt. No dye packs, no GPS, no banded cash.” Alden wore black shoes, black pants, black sweatshirt, black leather jacket, black gloves and a black and white bandana over his face. Alden stole $3,390, which he placed into a black drawstring bag before fleeing the scene.
On Feb. 21, 2020, Alden entered the Avidia Bank on Maple Avenue in Shrewsbury. He wore a dark winter jacket with fur on the hood, black gloves, a black ski mask over his face, blue jeans and black boots. Alden stated to the tellers “give me all the money,” and stole $1,028.
On Feb. 26, 2020, federal agents arrested Alden who was in possession of a notepad with a list of 12 banks in Massachusetts and New Hampshire and their closing times on Thursdays and Fridays.
A search warrant executed at Alden’s house recovered, among other items, a black leather jacket identical to that worn during the Leicester/Marlborough robberies, a black/white bandana, and a dark winter jacket with a fur hood attachment and black boots, identical to those worn during the Shrewsbury robbery.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistance was provided by the Massachusetts State Police and the Westford, Athol, Lunenberg, Leicester, Marlborough, Framingham, Foxborough, Shrewsbury, Millbury, Lancaster, and Nashua (N.H.) Police Departmens. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.
Kimberly Man Sentenced for Threatening to Kill a ProsecutorRead the Press Release
BOISE – Nathanael Michael West, 23, of Kimberly, Idaho, was sentenced in U.S. District Court to 36 months in federal prison for mailing threatening communications, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also ordered West serve three years of supervised release following his prison sentence. West pleaded guilty to the charge on July 13, 2020.
According to court records, West admitted that on August 22, 2019, he knowingly sent a threatening letter through the United States Postal Service to a Twin Falls County Deputy Prosecutor. This prosecutor had successfully prosecuted West for crimes he previously committed. In profane and graphic terms, West wrote that he was going to get out of prison and the kill the prosecutor and her family. West also threatened to kill a witness from a prior prosecution.
According to court records, after the prosecutor received the letter, law enforcement officers interviewed West. During the interview, West admitted to sending the letter. West sent the letter from an Idaho Department of Correction facility where he is currently housed for other crimes. The 36-month sentence imposed for mailing threatening communications will begin after West has served his existing state sentence.
This case was investigated by the Ada County Sheriff's Office.
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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.
Kidnapping Sends Man to Federal PrisonRead the Press Release
A man who attempted to kidnap a child was sentenced to more than14 years in federal prison.
Michael Marshall-Limoges, age 24, from Sioux City, Iowa, received the prison term after a guilty plea to one count of kidnapping.
Evidence at the detention, suppression, change of plea, and sentencing hearings established on March 22, 2019, E.N. (age 14) and her brother E.L. (age 9) walked to the Kum & Go, on Morningside Avenue in Sioux City, Iowa. At some point, before they arrived at the gas station, defendant saw them. Once the children entered the store, defendant repositioned his car, entered the store, and continued to observe the children. When the children left the store, defendant followed them, twice made supposedly innocent contact with them, and then attacked them.
As part of his attack, defendant blocked the children’s path with his car. He then threatened E.N. saying “If you don’t get in my car, I’m going to hurt your brother/or I am going to run your brother over.” Next, defendant grabbed a fistful of E.N.’s hair, overcame her physical resistance, ignored her screams, pushed her into his car, and trapped her inside of the car by closing the passenger side door. E.N. noticed the open driver’s side door and escaped through it. During her escape defendant again tried to grab her but she struggled to safety.
Meanwhile, E.L., who had managed to escape yelling, “they took my sister,” found help in the person of J.N. J.N., hearing the screams, ran down the alley toward the boy and the still ongoing kidnapping. J.N. saw defendant enter his vehicle, rapidly accelerate, and drive at a high rate of speed directly at the boy. Fearing defendant was going to run the boy down, he shoved the boy out of the way; J.N. then stood in the alley himself trying to stop the oncoming vehicle. Defendant did not stop. Defendant drove his car directly at J.N. J.N. jumped out of the way to avoid being hit by the car. J.N. called 911 and shepherded the children to safety.
Ultimately, defendant told law enforcement that had E.N. not escaped him “things would have been a lot worse for me” because “who knows what I would have done next.”
Marshall-Limoges was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Marshall-Limoges was sentenced to 168 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Marshall-Limoges is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa Police Department, the Woodbury County Attorney’s Office, and prosecuted by the Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4028.
Follow us on Twitter @USAO_NDIA.
Kearney Man Sentenced to 35 Years Imprisonment for Conspiring to Distribute Methamphetamine and Possessing a FirearmRead the Press Release
United States Attorney Joe Kelly announced that on December 18, 2020, Marcus Navejar, age 39 of Kearney Nebraska, was sentenced in federal court in Lincoln, Nebraska, after having pled guilty to Conspiracy to Distribute Methamphetamine and Possession of a Firearm in Connection with a Drug Trafficking Crime. Senior United States District Court Judge Richard G. Kopf sentenced Marcus Navejar to 35 years imprisonment. Navejar’s sentence included a consecutive 25 year term of imprisonment as the firearm conviction was his second for possession a firearm while distributing drugs. After completing his term of imprisonment, Navejar will be required to serve a 5 year term of supervised release as there is no parole in the federal system.
On June 5, 2019, the Omaha Police Department was conducting an investigation where a cooperating witness was collecting money owed from drug debts at an Omaha hotel. Navejar delivered $8,280 he owed for a drug debt to the cooperator on that date.
On June 7, 2019, the cooperating witness informed police that Navejar was staying at an Omaha hotel and in possession of methamphetamine and a gun. While police were obtaining a search warrant for his room, surveillance officers encountered Navejar outside and took him into custody. A search of his person revealed approximately 16 grams of methamphetamine and a handgun. During a post arrest interview, Navejar admitted to dealing five pounds of methamphetamine with others during the previous few weeks.
This case was investigated by the Omaha Police Department.
Judge sentences Illinois man who fired shots at St. Louis police officersRead the Press Release
ST. LOUIS, MO – United States District Judge John A. Ross sentenced Conrad Sparkman to 120 months in prison today, the statutory maximum for the offense of felon in possession of a firearm. The 36-year-old Cahokia, Illinois resident pleaded guilty to one count of being a felon in possession of a firearm on September 24, 2020.
On June 11, 2019, officers from the St. Louis Metropolitan Police Department tried to stop a vehicle operated by Sparkman for having a tinted windshield and an expired Missouri temporary license plate.
Sparkman fled from the officers at a high rate of speed. Sparkman drove the vehicle the wrong way down a one-way street, into on-coming traffic and violated an electric signal. The officers discontinued their pursuit of Sparkman. The aviation unit monitored Sparkman’s path until he parked the vehicle in the 4100 block of Shreve. Officers saw Sparkman and a woman exit the vehicle and walk away. Officers tried to detain Sparkman, who ran away. During a foot pursuit, Sparkman removed a firearm from his waistband and fired at an officer.
Officers returned fire at Sparkman. Sparkman was shot in the left arm and right hand, which caused him to drop the firearm. Sparkman continued to run before falling near the sidewalk in the 4800 block of Bessie.
Police recovered numerous items along Sparkman’s path, including a 9mm pistol loaded with one live round in the chamber and a magazine containing eight additional live rounds. Prior to June 11, 2019, Sparkman had been previously convicted of the felonies of Robbery 2nd degree and Felon in Possession of a Firearm.
“The Police Department is truly grateful for the partnership it has with the US Attorney’s Office in prosecuting violent felons to the fullest extent of the law,” said St. Louis Metropolitan Police Chief John Hayden. “This guilty plea is particularly meaningful and timely when you consider the unprecedented gun violence directed at our Officers, just this year alone.”
“Sparkman received the maximum sentence available, appropriately. We will not tolerate shooting at our brave police officers,” said Jeff Jensen, U.S. Attorney for the Eastern District of Missouri.
The St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorneys John Bird and Jason Dunkel are handling the case.
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Judge Sentences South Georgia Man to Prison for Attacking Postal EmployeeRead the Press Release
ALBANY, Ga. – A Donalsonville, Georgia, man has been sentenced to serve 42 months in a federal prison for attacking a female postal worker as she was delivering mail, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Traveyon D. Wilcox, 35, of Donalsonville, was sentenced on Thursday, December 17, by U.S. District Judge Leslie Gardner to 42 months in prison to be followed by three years of supervised release for one count of assault on a federal employee. There is no parole in the federal system.
According to facts admitted in court, an employee of the United States Postal Service was delivering mail along her Donalsonville route on March 2, 2019, when Wilcox confronted her inside her mail truck. With a bat in one hand, he put his arm around her neck, saying, “It’s natural, let it happen.” The female postal worker, in fear for her life and believing that Wilcox was intending to rape her, accelerated her vehicle and tried repeatedly to strike Wilcox to remove him from the vehicle. As a result of the struggle, the vehicle left the road and crashed into the front porch of a residence. There was no one on the porch of the residence. Wilcox ran away, and the postal worker called 911. Wilcox was quickly apprehended by responding officers with the Donalsonville Police Department. Wilcox later told investigators he had thoughts of doing terrible things to the postal worker, including murdering her.
“Wilcox’s actions were disturbing and despicable. Assaulting a postal worker is a federal crime, and those who attempt to harm employees of the U.S. Postal Service will be prosecuted,” said Acting U.S. Attorney Leary. “I want to thank the Donalsonville Police Department for quickly apprehending this dangerous man and the United States Postal Inspection Service for investigating this crime.”
“The safety of our USPS employees is our most important mission, and Inspectors will continue the great work of bringing those who attack the USPS to justice,” Antonio J. Gomez, Inspector In Charge, Miami Division.
The investigation was conducted by United States Postal Inspection Service and the Donalsonville Police Department. The case was prosecuted by Assistant U.S. Attorney Jim Crane. 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.
Jacksonville Man Indicted for Possessing Firearms Following Multiple Felony ConvictionsRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return by a grand jury of an indictment charging Vershaun Lamar Puzie (32, Jacksonville) with two counts of possessing a firearm as a convicted felon. If convicted, Puzie faces a mandatory minimum penalty of 15 years, and up to life, in federal prison on each count. The indictment also notifies Puzie that the United States intends to forfeit two Smith & Wesson pistols, which are alleged to have been used in the offenses.
According to the indictment, Puzie possessed a Smith & Wesson .40 caliber pistol on January 1, 2019, after being convicted of eight felonies. The indictment also alleges that Puzie possessed a Smith & Wesson 9mm caliber pistol on July 16, 2020, after being convicted of ten felonies. Because Puzie had been convicted of selling drugs on three separate occasions prior to allegedly possessing each of the firearms, he faces enhanced mandatory minimum sentences.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jacksonville Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor and Special Assistant United States Attorney Cyrus Zomorodian.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
International Trio Indicted in Austin for Illegal Exports to RussiaRead the Press Release
A four–count federal grand jury indictment returned in Austin and unsealed today charges three foreign nationals – a Russian citizen and two Bulgarian citizens – with violating the International Emergency Economic Powers Act (IEEPA), Export Control Reform Act (ECRA), and a money laundering statute in a scheme to procure sensitive radiation-hardened circuits from the U.S. and ship those components to Russia through Bulgaria without required licenses.
“Time and again, we find the Russians attempting to get access to sensitive American technology. The defendants here are charged with exporting radiation-hardened chips to Russia, knowing that it was illegal to do so and establishing a business in Bulgaria to circumvent U.S. enforcement authorities,” said Assistant Attorney General for National Security John C. Demers. “I am gratified by our whole-of-government response to this flagrant example of U.S. export controls evasion.”
“Today’s indictment demonstrates that the United States Attorney’s Office, the Department of Justice and our federal partners will follow those who seek to evade U.S. export enforcement laws wherever our investigations lead. National security remains our highest priority. We must never allow our most sensitive technology to fall into the hands of those who would seek to use it against us,” said U.S. Attorney Sofer.
“The Office of Export Enforcement in partnership with the FBI and DCIS uncovered an illicit procurement network that was diverting radiation-hardened integrated circuits from the United States through a Bulgarian front company to entities in Russia,” said P. Lee Smith, Performing the Non-exclusive Functions and Duties of the Assistant Secretary for Export Enforcement at the Department of Commerce. “Today’s announcement and related action by the Commerce Department to place the parties on the Entity List represent a collaborative whole-of-government approach to protecting sensitive, controlled U.S. technology, which is critical to our national security.”
“Today’s indictment details the efforts our adversaries will make to obtain our sensitive technology and demonstrates that the United States will hold any individuals, organizations, and nations, who willfully violate our export laws accountable.” said Special Agent in Charge Christopher Combs. “The FBI and our partners will work vigorously to protect and defend the national security of our country.”
The indictment alleges that 48-year-old Russian national Ilias Sabirov, 70-year-old Bulgarian national Dimitar Dimitrov and 46-year-old Bulgarian national Milan Dimitrov used Bulgarian company Multi Technology Integration Group EEOD (MTIG) to receive controlled items from the U.S. and send them to Russia. Under U.S. export control law, the goods could not be shipped to Russia without the permission of the U.S. government.
According to the indictment, Sabirov is the head of two Russian companies--Cosmos Complect and OOO Sovtest Comp.--and controls MTIG. Both Dimitar Dimitrov and Milan Dimitrov worked for Sabirov at Cosmos Complect and MTIG.
In 2014, the defendants met with the supplier of the radiation-hardened components in Austin and were informed that radiation-hardened circuits could not be shipped to Russia because of U.S. trade restrictions. Stymied by U.S. law, Sabirov established MTIG in Bulgaria and bought the controlled electronic circuits. The radiation-hardened properties of these circuits made them resistant to damage or malfunction in the harsh outer-space environment. Export of the parts was controlled by the U.S. government for these very reasons. The parts were shipped to Bulgaria in 2015 and MTIG soon thereafter shipped them to Sabirov’s companies in Russia. OOO Sovtest Comp. transferred over $1 million to MTIG for controlled U.S. parts.
In the same timeframe, MTIG—at Sabirov’s direction—ordered over $1.7 million in other electronic components produced by another U.S. electronics manufacturer. Sabirov bought these parts to fulfill part of his contract with OOO Sovtest Comp. Again, the parts were shipped from the U.S. to Bulgaria where they were merely repackaged and onward shipped to Russia.
In late 2018, a Department of Commerce Export Control Officer interviewed Milan Dimitrov during a visit at MTIG to determine whether the radiation-hardened components were still in MTIG’s possession in Bulgaria. Milan Dimitrov, among other things, fraudulently denied sending the components to Russia.
The indictment charges Sabirov, Dimitar Dimitrov and Milan Dimitrov with two counts related to violations of IEEPA and one count of money laundering. The indictment also charges Milan Dimitrov with one count of false statements to the government. Each count charged in the indictment calls for up to 20 years in federal prison upon conviction.
In conjunction with the unsealing of these charges, the Department of Commerce is designating Ilias Sabirov, Dimitar Dimitrov, Milan Dimitrov, Mariana Marinova Gargova, MTIG EOOD, Cosmos Complect and OOO Sovtest Comp., adding them to its Bureau of Industry and Security Entity List. Designation on the Entity List imposes a license requirement before any commodities can be exported from the U.S. to these persons or companies and establishes a presumption that no such license will be granted.
The Entity List identifies foreign parties that are prohibited from receiving some or all items subject to the Export Administration Regulations (EAR) unless the exporter secures a license. Those persons present a greater risk of diversion to weapons of mass destruction (WMD) programs, terrorism or other activities contrary to U.S. national security or foreign policy interests. Commerce – Office of Export Enforcement can add to the Entity List a foreign party, such as an individual, business, research institution or government organization, for engaging in activities contrary to U.S. national security and/or foreign policy interests. In most instances, license exceptions are unavailable for the export, re-export or transfer (in-country) to a party on the Entity List of items subject to the EAR. Rather, a prior license is required, usually subject to a policy of denial.
Commerce – Office of Export Enforcement and the FBI are investigating this case with assistance from Defense Criminal Investigative Service (DCIS). The Justice Department’s Office of International Affairs provided investigative assistance. The government’s case is being prosecuted by Assistant U.S. Attorneys Michael C. Galdo and G. Karthik Srinivasan of the Western District of Texas, as well as Trial Attorney Thea R. Kendler of the Justice Department’s National Security Division.In all cases, defendants are presumed innocent until and unless proven guilty. The indictment merely contains allegations of criminal activity.
International Trio Indicted in Austin for Illegal Exports to RussiaRead the Press Release
A four–count federal grand jury indictment returned in Austin and unsealed today charges three foreign nationals – a Russian citizen and two Bulgarian citizens – with violating the International Emergency Economic Powers Act (IEEPA), Export Control Reform Act (ECRA), and a money laundering statute in a scheme to procure sensitive radiation-hardened circuits from the U.S. and ship those components to Russia through Bulgaria without required licenses.
That announcement was made today by U.S. Attorney Gregg N. Sofer; Assistant Attorney General for National Security John C. Demers; P. Lee Smith, Performing the Non-exclusive Functions and Duties of the Assistant Secretary for Export Enforcement at the Department of Commerce; FBI San Antonio Division Special Agent in Charge Christopher Combs; and Defense Criminal Investigative Service (DCIS) Southwest Field Office Special Agent in Charge Michael Mentavlos.
The indictment alleges that 48-year-old Russian national Ilias Sabirov, 70-year-old Bulgarian national Dimitar Dimitrov and 46-year-old Bulgarian national Milan Dimitrov used Bulgarian company Multi Technology Integration Group EEOD (MTIG) to receive controlled items from the U.S. and send them to Russia. Under U.S. export control law, the goods could not be shipped to Russia without the permission of the U.S. government.
According to the indictment, Sabirov is the head of two Russian companies--Cosmos Complect and OOO Sovtest Comp.--and controls MTIG. Both Dimitar Dimitrov and Milan Dimitrov worked for Sabirov at Cosmos Complect and MTIG.
In 2014, the defendants met with the supplier of the radiation-hardened components in Austin, and were informed that radiation-hardened circuits could not be shipped to Russia because of U.S. trade restrictions. Stymied by U.S. law, Sabirov established MTIG in Bulgaria and bought the controlled electronic circuits. The radiation-hardened properties of these circuits made them resistant to damage or malfunction in the harsh outer-space environment. Export of the parts was controlled by the U.S. government for these very reasons. The parts were shipped to Bulgaria in 2015, and MTIG soon thereafter shipped them to Sabirov’s companies in Russia. OOO Sovtest Comp. transferred over $1 million to MTIG for the controlled U.S. parts.
In the same timeframe, MTIG—at Sabirov’s direction—ordered over $1.7 million in other electronic components produced by another U.S. electronics manufacturer. MTIG bought these parts to fulfill part of its contract with OOO Sovtest Comp. Again, the parts were shipped from the U.S. to Bulgaria, where they were merely repackaged and onward shipped to Russia.
In late 2018, a Department of Commerce Export Control Officer interviewed Milan Dimitrov during a visit at MTIG to determine whether the radiation-hardened components were still in MTIG’s possession in Bulgaria. Milan Dimitrov, among other things, fraudulently denied sending the components to Russia.
“Today’s indictment demonstrates that the United States Attorney’s Office, the Department of Justice and our federal partners will follow those who seek to evade U.S. export enforcement laws wherever our investigations lead. National security remains our highest priority. We must never allow our most sensitive technology to fall into the hands of those who would seek to use it against us,” said U.S. Attorney Gregg N. Sofer.
“Time and again, we find the Russians attempting to get access to sensitive American technology. The defendants here are charged with exporting radiation-hardened chips to Russia, knowing that it was illegal to do so and establishing a business in Bulgaria to circumvent U.S. enforcement authorities,” said Assistant Attorney General for National Security John C. Demers. “I am gratified by our whole-of-government response to this flagrant example of U.S. export controls evasion.”
“The Office of Export Enforcement in partnership with the FBI and DCIS uncovered an illicit procurement network that was diverting radiation-hardened integrated circuits from the United States through a Bulgarian front company to entities in Russia,” said P. Lee Smith, Performing the Non-exclusive Functions and Duties of the Assistant Secretary for Export Enforcement at the Department of Commerce. “Today’s announcement and related action by the Commerce Department to place the parties on the Entity List represent a collaborative whole-of-government approach to protecting sensitive, controlled U.S. technology, which is critical to our national security.”
“Today’s indictment details the efforts our adversaries will take to obtain our sensitive technology and demonstrates that the U.S. will hold any individuals, organizations, and nations, who willfully violate our export laws accountable,” said FBI Special Agent in Charge Christopher Combs. “The FBI and our partners will work vigorously to protect and defend the national security of our country.”
“This investigation underscores the Defense Criminal Investigative Service's commitment to safeguarding our nation's most sensitive technologies and preventing those technologies from getting into the hands of our adversaries,” said DCIS Southwest Field Office Special Agent in Charge Michael Mentavlos. “DCIS, in consort with our law enforcement partners, will continue to aggressively identify, disrupt, and bring to justice those who attempt to circumvent export control laws and threaten the integrity of U.S. military technology.”
The indictment charges Sabirov, Dimitar Dimitrov and Milan Dimitrov with two counts related to violations of IEEPA and one count of money laundering. The indictment also charges Milan Dimitrov with one count of false statements to the government. Each count charged in the indictment calls for up to 20 years in federal prison upon conviction.
In conjunction with the unsealing of these charges, the Department of Commerce is designating Ilias Sabirov, Dimitar Dimitrov, Milan Dimitrov, Mariana Marinova Gargova, MTIG EOOD, Cosmos Complect and OOO Sovtest Comp., adding them to its Bureau of Industry and Security Entity List. Designation on the Entity List imposes a license requirement before any commodities can be exported from the U.S. to these persons or companies and establishes a presumption that no such license will be granted.
The Entity List identifies foreign parties that are prohibited from receiving some or all items subject to the Export Administration Regulations (EAR) unless the exporter secures a license. Those persons present a greater risk of diversion to weapons of mass destruction (WMD) programs, terrorism or other activities contrary to U.S. national security or foreign policy interests. Commerce – Office of Export Enforcement can add to the Entity List a foreign party, such as an individual, business, research institution or government organization, for engaging in activities contrary to U.S. national security and/or foreign policy interests. In most instances, license exceptions are unavailable for the export, re-export or transfer (in-country) to a party on the Entity List of items subject to the EAR. Rather, a prior license is required, usually subject to a policy of denial.
Commerce – Office of Export Enforcement and the FBI are investigating this case with assistance from DCIS. The government’s case is being prosecuted by Assistant U.S. Attorneys Michael C. Galdo and G. Karthik Srinivasan of the Western District of Texas, as well as Trial Attorney Thea D. R. Kendler of the Justice Department’s National Security Division. The Justice Department’s Office of International Affairs provided investigatory assistance.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictment merely contains allegations of criminal activity.
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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.
Inmates admit to attacking another inmateRead the Press Release
CLARKSBURG, WEST VIRGINIA – Darion Gipson and Calvin Rader, both inmates at U.S. Penitentiary Hazelton, have admitted to attacking another inmate, U.S. Attorney Bill Powell announced.
Gipson, age 26, and Rader, 29, each pled guilty to one count of “Assault Resulting in Serious Bodily Injury.” Gipson and Rader admitted to assaulting another inmate, causing serious injury, in November 2019 in Preston County.
Gipson and Rader were each sentenced to 24 months of incarceration to be served consecutively to any sentence they are currently serving.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Prisons investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Dec. 14 was:
Shawn Kenneth Kolb, 40, of Columbia Falls, on charges of false statement during a firearms transaction. If convicted of the most serious crime, Kolb faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Kolb was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-51.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Dec. 15 was:
Michael Jacob Berberick, 37, of Billings, on charges of prohibited person in possession of a firearm and possession of stolen firearm. If convicted of the most serious crime, Berberick faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Berberick was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-119.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Dec. 15 was:
Kelcey James Morsette, 40, of Box Elder, on charges of assault resulting in serious bodily injury. If convicted of the most serious crime, Morsette faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Morsette was detained pending further proceedings. The FBI and Rocky Boy’s Police Department investigated the case. PACER case reference. 20-34.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indian Wells Man Sentenced to 20 Years for KidnappingRead the Press Release
PHOENIX, Ariz. – Yesterday, Elbert Philip Shabi, 69, of Indian Wells, Arizona, was sentenced by U.S. District Judge Michael T. Liburdi to twenty years in prison followed by five years of supervised release. Shabi previously pleaded guilty to kidnapping.
Shabi admitted that in 2016 or 2017, he seized the victim as she fled from him on foot. Shabi threatened the victim and held her overnight against her will. The kidnapping happened on the Navajo Nation Indian Reservation, where Shabi is a tribal member.
The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorneys Dimitra Sampson, Amy Chang, and Jillian Besancon, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-08030-PCT-MTL
RELEASE NUMBER: 2020-114_Shabi# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Hudson Man Pleads Guilty to Sexual Exploitation of a MinorRead the Press Release
CONCORD - Robert Corleto, 43, of Hudson, pleaded guilty in federal court to sexual exploitation of a minor, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Corleto used a social media account on KIK Messenger to entice and coerce a minor to take images of herself engaging in sexually explicit conduct. Corleto sent at least one of those images to an undercover officer over KIK Messenger on March 18, 2019. During the course of the investigation, officers obtained a warrant to search Corleto’s cell phone. A forensic extraction of the device revealed that Corleto had between 10 and 150 images depicting the victim, as well as other minor children.
Corleto is scheduled to be sentenced on March 20, 2021.
“The internet can be a dangerous place for children, affording anonymity to criminals who would seek to exploit their innocence,” said U.S. Attorney Murray. “Those who manipulate children into creating pornographic images are committing a serious federal crime and will be prosecuted. Internet predators should be aware that law enforcement agencies are working around the clock to bring them to justice. It is imperative that we keep our children safe by targeting those who seek to exploit them online.”
“Robert Corleto manipulated a 12-year-old girl into providing him with sexually explicit images and videos by using fear that their so-called mutual online friend would harm herself if the victim refused. The crime for which he has admitted guilt today is incredibly disturbing,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case is a prime example of how a child can be victimized in the safety of their own home. Parents, please talk to your children about the dangers of the internet, make it clear to them they are not to blame if they fall victim to a predator, and contact law enforcement immediately if you suspect something is wrong.”
This matter was investigated by the Federal Bureau of Investigation and the Hudson Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s 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 www.projectsafechildhood.gov.
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