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Monday 14 December 2020
Paterson Associate of 230 Boys Gang Indicted for Drug Conspiracy and Possession and Distribution of Heroin and FentanylRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was indicted by a grand jury today for his role in a conspiracy to distributed illegal drugs in Paterson, U.S. Attorney Craig Carpenito announced.
Dashion Kelson, 40, a/k/a “Tank,” a/k/a “Izzy,” a/k/a “Stizzy, of Paterson, New Jersey, was indicted on charges of conspiring to distribute and possess with the intent to distribute 100 grams or more of heroin, and 40 grams or more of fentanyl, five counts of distribution of controlled substances, and two counts of possession with the intent to distribute heroin. Kelson and 16 other members and associates of the 230 Boys were charged by complaint in October 2019.
According to the documents filed in this case and statements made in court:
Kelson and his conspirators are members and associates of the 230 Boys street gang, which operates primarily in and around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through investigative techniques, including numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from September 2018 through Oct. 3, 2019, Kelson and others conspired to distribute narcotics, to include heroin and fentanyl. On six occasions, he distributed controlled substances, to include heroin and fentanyl. On Oct. 3, 2019, Kelson possessed with the intent to distribute two separate quantities of heroin.
Six co-defendants have since pleaded guilty before U.S. District Judge Brian R. Martinotti: Keith Brinkley, 30; Isaiah Hargrove, 21; Tyson Jacobs, 21; Amir Jones, 21; Dwayne Northern, 35; and Cequan Wharton, 30, all of Paterson. Six other co-defendants have been charged by a second superseding indictment: Wyzier Peterson, 23; Carl Brown, 26; Aaryn Abrams, 24; Najier Boone, 24; Zikeme Brooks, 27; and Jimir Ricks, 26.
Counts 1 and 8 of today’s indictment carry a mandatory minimum sentence of five years in prison, a maximum penalty of 40 years in prison, and a mandatory fine of $5 million. Counts 2 through 7 and 9 carry a maximum penalty of 20 years in prison, and a maximum fine of $1 million.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations against Kelson and the remaining co-defendants in the complaint and second superseding indictment are merely accusations, and they are presumed innocent unless and until proven guilty.
New York Man Pleads Guilty to Possessing Cocaine Base and Fentanyl with Intent to DistributeRead the Press Release
BANGOR, Maine: A New York man pleaded guilty Friday in federal court to possessing cocaine base and fentanyl with intent to distribute, U.S. Attorney Halsey B. Frank announced.
According to court records, on November 15, 2019, law enforcement officers encountered Terrence Robinson, aka “Trevor Scott,” 27, in Bangor. Robinson had active warrants for his arrest. Officers searched Robinson and located packages of drugs concealed in his pants. Officers seized a package containing 66.9 grams of a mixture containing cocaine base and a package containing 68.9 grams of a mixture containing fentanyl, heroin and methamphetamine.
Robinson faces between five and 40 years in prison and a fine of up to $5 million. He also faces between four years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The U.S. Drug Enforcement Administration, the Maine State Police and the Bangor Police Department investigated the case.
New Haven-Area Drug Dealer with Long Criminal History Sentenced to More Than 10 Years in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FRANK CARR, also known as “FL,” 53, of Hamden, was sentenced today by U.S. District Judge Robert N. Chatigny to 126 months of imprisonment, followed by eight years of supervised release, for distributing narcotics, and for violating the conditions of his supervised release that followed a prior federal narcotics conviction.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, this matter stems from an investigation headed by the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department that targeted drug trafficking and related acts of violence by members, former members and associates of the “Island Brothers” street gang in New Haven. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, also revealed that the drug trafficking organization had established a base of operation in Fitchburg, Massachusetts. The investigation subsequently identified a second drug trafficking network that involved the large-scale distribution of heroin.
Investigators developed information that, in March 2019, while Carr was on federal supervised release, he provided a kilogram of cocaine to the leader of one of the drug trafficking networks. In May and June 2019, investigators made multiple controlled purchases of cocaine and crack from Carr, including a purchase of approximately 78 grams of crack from Carr in exchange for $3,000 on May 23, 2019.
On July 9, 2019, a grand jury in New Haven returned a 15-count indictment charging Carr and 24 other individuals with federal narcotics offenses related to the distribution of crack cocaine, cocaine and heroin. Two defendants were added in a superseding indictment that was returned on November 25, 2019. In a subsequent superseding indictment, Carr was charged with attempted obstruction of justice for allegedly asking a potential witness in this case to provide false exculpatory information about Carr.
Carr has been detained since his arrest on July 10, 2019. On October 28, 2020, he pleaded guilty to one count of possession with intent to distribute, and distribution of, 28 grams or more of cocaine base (“crack”).
This is Carr’s third federal conviction in the District of Connecticut. In December 1996, he was sentenced to 60 months of imprisonment for possession of a firearm by a convicted felon. In January 2013, he was sentenced to 63 months of imprisonment for distributing heroin. Carr’s criminal history also includes state convictions for manslaughter with a firearm, weapons possession and drug offenses.
Judge Chatigny sentenced Carr to 120 months of imprisonment for distributing crack, and 24 months of imprisonment for violating the conditions of his supervised release. Six months of the 24-month supervised release sentence were imposed consecutively with the 120-month sentence in the underlying case.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police, Connecticut Department of Correction and the U.S. Drug Enforcement Administration.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle, Elena L. Coronado and Tara E. Levens through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Nebraska City Man Sentenced for Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that James S. Brink, 30, of Nebraska City, Nebraska, was sentenced in federal court in Omaha on December 11, 2020 for possessing child pornography. United States District Judge Robert F. Rossiter, Jr. sentenced Brink to a 63-month term of imprisonment. There is no parole in the federal system. After his release from prison, Brink will begin a five-year term of supervised release and will be required to register as a sex offender.
On July 2, 2019, investigators with the Nebraska State Patrol went to Brink’s home after receiving a tip that someone inside that residence was using a computer to view child pornography. Brink consented to a search of his cell phone. Investigators seized the phone upon viewing images of child pornography. Later analysis revealed more than 650 images of child pornography including images of prepubescent minors engaged in acts of bondage and using sex toys.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Morgan County man admits to child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gunner Scott Young, of Berkeley Springs, West Virginia, has admitted to a child pornography charge, U.S. Attorney Bill Powell announced.
Young, age 28, pled guilty to one count of “Possession of Child Pornography.” Young admitted to having pornographic images involving minors under the age of 12 in June 2019 in Morgan County.
Young faces 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 Kimberley D. Crockett is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Monmouth County Man Sentenced to 13 Months in Prison for Role in Multi-State Patient Brokering and Bribery SchemeRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 13 months in prison for participating in a conspiracy to defraud health insurance companies through a multi-state patient brokering scheme in which he bribed drug-addicted individuals to enroll in drug rehabilitation in exchange for referral fees from the rehabilitation centers, U.S. Attorney Craig Carpenito announced.
Peter J. Costas, 27, of Red Bank, New Jersey, previously pleaded guilty by teleconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count of conspiracy to commit health care fraud. Judge Sheridan imposed the sentence by videoconference today.
According to documents filed in the case and statements made in court:
Costas helped orchestrate a scheme in New Jersey, California, and other states that involved bribing individuals addicted to heroin and other drugs to enter into drug rehabilitation centers so Costas and his conspirators could generate referral fees from those facilities.
Costas worked with several marketing companies to carry out the scheme, but one marketing company in California run by Costas’s conspirators was pivotal. The marketing company maintained contractual relationships with drug treatment facilities around the country. Costas was engaged by the marketing company to recruit potential patients, who were addicted to heroin or other drugs and who had robust private health insurance, from New Jersey and other states.
To convince drug-addicted individuals to travel to and enroll in rehabilitation when they otherwise would not have, Costas offered to bribe them – often as much as several thousand dollars. Once they agreed to enroll in drug rehabilitation in exchange for the offered bribe, Costas and the owners of the marketing company would arrange and pay for cross-country travel to the drug treatment centers in California and other states. Costas would stay in touch with the New Jersey patients at the facilities and specifically instruct them to stay at the facilities long enough to generate referral payments.
Costas and the marketing company often directed patients to different rehabilitation facilities month after month to generate multiple referral payments without regard to whether the substance abuse treatment was medically necessary or effective. In a conversation over Facebook, one patient told Costas that if Costas made good on his promise to pay the patient a bribe, the patient would enroll in additional facilities to trigger additional referral payments and bribes: “[J]ust get us [sic] grab the dough and put us in another place. . . . Get paid some more feel me. . . . I’ll keep this up all year wit[h] you. As long as you do us right.” When the patient later expressed doubt that Costas would pay the bribe, Costas responded, “Don’t worry. . . . I do this with SO MANY PPL [people].”
Costas and the marketing company sent patients to facilities in California and other states that they knew provided ineffective drug treatment or actually fostered drug use on their premises. The facilities typically paid the marketing company a fee of $5,000 to $10,000 per patient referral, and Costas and other brokers received approximately half that amount for each patient they brokered. During the scheme, Costas brokered dozens of patients on behalf of marketing companies around the country, and the conspiracy caused millions of dollars of losses for health insurers.
In addition to the prison term, Judge Sheridan sentenced Costas to three years of supervised release and ordered him to pay restitution of $502,208.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Health Care Fraud Unit in Newark.
Millions in Assets of Encrypted Telecommunications Criminal Enterprise Seized in Singapore and Repatriated to the United StatesRead the Press Release
Assistant U.S. Attorneys Joshua Mellor (619) 546-9733 and Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – December 14, 2020
SAN DIEGO – Four bank accounts containing $3,971,468.40 in illicit funds generated from Phantom Secure, an encrypted telecommunications network used by transnational organized criminal syndicates, were seized by authorities in Singapore and repatriated to the United States, the U.S. Attorney’s Office for the Southern District of California announced today.
Vincent Ramos, the chief executive of Canada-based Phantom Secure, and four of his associates were indicted by a federal grand jury in March 2018 on charges that they operated a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale and service of encrypted telecommunications devices and services.
This was the first time the U.S. government targeted a company and its principals for conspiring with criminal organizations by providing them with the technological tools to evade law enforcement and obstruct justice while committing transnational drug trafficking.
According to court documents, Phantom Secure advertised its products as impervious to decryption, wiretapping or legal third-party records requests. Phantom Secure also guaranteed the destruction of evidence contained within a device if it was compromised, either by an informant or because it fell into the hands of law enforcement.
Starting in 2018, U.S. authorities, working closely with the Commercial Affairs Department (CAD) of the Singapore Police Force, identified and seized over $3.9 million in illicit funds linked to the sale of Phantom Secure devices. Those funds were seized in Singapore, forfeited as proceeds of criminal activity and have now been repatriated to the United States.
In October 2018, Ramos pleaded guilty to leading a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale and service of encrypted communications devices. In his plea agreement, Ramos admitted that he and his co-conspirators facilitated the distribution of cocaine, heroin, and methamphetamine to locations around the world including in Australia, Canada, Europe, Mexico, Thailand and the United States by supplying narcotics traffickers with Phantom Secure encrypted communications devices designed to thwart law enforcement.
To keep the communications out of the reach of law enforcement, Ramos and others maintained Phantom Secure servers in Panama and Hong Kong, used virtual proxy servers to disguise the physical location of its servers, and remotely deleted or “wiped” devices seized by law enforcement. Ramos’ customers used his products to devastating and sometimes deadly effect, and Ramos used this to market his encryption services to criminals across the world. According to court documents, in response to a March 5, 2014 news article that reported investigations of a gangland murder were stymied because the suspects used Phantom Secure devices to coordinate the killing, Ramos wrote, “This is the best verification on what we have been saying all along – proven and effective for now over nine years. It is the highest level of authority confirming our effectiveness. It can’t get better than that.”
As part of his guilty plea, Ramos agreed to an $80 million forfeiture money judgment as well as the forfeiture of tens of millions of dollars in identified assets, ranging from bank accounts worldwide, to houses, to a Lamborghini, to cryptocurrency accounts, to gold coins. The money repatriated from Singapore was among the assets identified by investigators to be forfeited. Ramos was sentenced to 108 months in prison.
“Tremendous determination by this office and our investigative partners dismantled this criminal network,” said U.S. Attorney Robert Brewer. “As a result of this ground-breaking prosecution, the network has been shut down, its founder has been brought to justice, and its money is being identified and forfeited to help victims and witnesses of crime.” Brewer praised prosecutors Mark Pletcher and Joshua Mellor as well as agents from the Federal Bureau of Investigation, U.S. Drug Enforcement Administration, and U.S. Marshals Service for their excellent work on this case.
The Department of Justice specifically commends the efforts of our Singapore counterparts in identifying, freezing, and repatriating proceeds of this criminal enterprise. Investigators with the Commercial Affairs Department and representatives of the Attorney General’s Chamber worked relentlessly to ensure that these proceeds would not be used to promote further illegal activity.
The U.S. Attorney’s Office for the Southern District of California further notes the invaluable assistance of the Department of Justice’s Office of International Affairs.
“The repatriation of close to $4 million by our Singapore-based partners ensures that Vincent Ramos and the leaders of Phantom Secure will pay for their crimes,” stated FBI Special Agent in Charge Suzanne Turner. “The FBI’s unrelenting work to take down transnational criminal organizations like Phantom Secure and recoup their illegal financial gains is only possible through close working relationships with our global law enforcement partners.”
“This case demonstrates the U.S. Marshals’ firm commitment to tracing illicit funds and dismantling criminal enterprises worldwide,” said Assistant Director Timothy Virtue of the U.S. Marshals Asset Forfeiture Division. “We express our gratitude to our Singapore counterparts for their unflinching cooperation in clamping down on transnational organized criminal syndicates and money launderers.”
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
U.S. Marshals Service
Singapore Police Force - Commercial Affairs Department
Singapore Attorney-General’s Chambers
Australian Federal Police
New South Wales Police (Australia)
New South Wales Crime Commission (Australia)
Australian Criminal Intelligence Commission
Royal Canadian Mounted Police
International Assistance Group, Department of Justice, Canada Department of Justice, Organized Crime Drug Enforcement Task Forces
Office of Enforcement Operations of the Department’s Criminal Division
Department of Justice’s Office of International Affairs
Michigan Man Sentenced for His Role in Scheme That Defrauded Victims Out of Millions of DollarsRead 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 Leonard Smith, 56, of Clawson, Michigan, who was convicted of conspiracy to commit wire fraud, was sentenced to serve 30 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Douglas A. Penrose, who handled the case, stated that between May 2010 and July 2015, the defendant conspired with others fraudulently to obtain money and property from investors. As part of the scheme, Smith, who was a financial advisor, solicited investments from his clients at two companies—i2i Capital LLC and i2i Settlement Partners LLC. The companies, which were formed by co-conspirators Christopher Dillon and Gilbert Lynagh, were incorporated in Delaware but listed a business address in Lancaster, NY.
Smith, Dillon, Lynagh, and other members of the conspiracy, caused 27 victims to invest over $5,000,000 in i2i Capital and/or i2i Settlement Partners. False and fraudulent representations were made to victims regarding the nature of the investment and the associated risks, duration, and rates of return. Smith also misrepresented his compensation regarding the victims’ investments in the companies. The majority of victim funds were utilized by Smith, Dillon, Lynagh, and other members of the conspiracy in a manner that was not authorized by the victims, including for personal use. None of the victims received the promised return on their investments, and none saw the return of their original investment funds as promised by Smith, Dillon, and Lynagh.
Gilbert Lynagh and Christopher Dillon were previously convicted for their roles in the conspiracy.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Stephen Belongia.
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Michigan Man Ordered Detained Pending Child Sexual Exploitation ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Arthur Jay Traxler, Jr. (55, Michigan) with one count of attempted online enticement of a minor to engage in sexual activity and one count of attempted production of child sexual exploitation materials. If convicted, Traxler faces a minimum mandatory term of 25 years, and up to life, in federal prison. Traxler was arrested on November 9, 2020, in Monroe, Michigan and was ordered detained pending trial.
According to the indictment, between July 21 and August 4, 2020, Traxler attempted to entice an individual, whom he believed was under the age of 18, to engage in sexual activity. Traxler also attempted to entice a minor to engage to produce child exploitation materials during this same time period.
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 Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ashley Washington.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Merrimack Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Nicholas Snow, 26, of Merrimack, pleaded guilty in federal court to possession of fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on February 1, 2020, Hudson patrol officers stopped a car in which Snow was a passenger. Both the driver and Snow had suspended licenses. An officer later determined that Snow was in possession of a pouch containing fentanyl, a scale, packaging materials, and $655 in cash. In his post-arrest interview, Snow admitted to drug distribution activities in Hudson. Snow’s cell phone also revealed communications about drug deals.
Snow is scheduled to be sentenced on March 22, 2021.
“In order to protect public health and safety, we are working closely with our law enforcement partners to identify and prosecute fentanyl traffickers,” said U.S. Attorney Murray. “We will not hesitate to pursue federal prosecutions of the fentanyl dealers who are endangering our communities by selling this deadly substance.”
This matter was investigated by the Hudson Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Medical Device Manufacturer's Director of Clinical Services Pleads Guilty to Causing the Adulteration of Rectal Pressure SensorsRead the Press Release
Clinical Director for The Prometheus Group Pleads Guilty for Role in Causing the Reuse of Single-User Rectal Pressure Sensors on Multiple Patients
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew B. Birge announced today that Denise D’Andrea pleaded guilty to one count of causing the adulteration of a medical device. In the criminal information, the government alleged that Ms. D’Andrea, the Director of Clinical Services at The Prometheus Group ("Prometheus"), a device manufacturer headquartered in Dover, New Hampshire, trained medical practitioners in the Western District of Michigan to reuse a single-user rectal pressure sensor on multiple patients by covering it with a surgical glove between uses. The rectal pressure sensor is a component part of Prometheus’s Pathway CTS 2000 Pelvic Floor Training System used in a form of therapy known as pelvic muscle rehabilitation. FDA cleared this system for introduction into the market in 2000, but restricted use of the rectal pressure sensor to single-patient use only. As part of that clearance, FDA also approved instructions for use submitted by Prometheus for the rectal pressure sensor that prominently stated: "This sensor is restricted for single person use only. Use by another person is strictly prohibited by Federal Regulations."
The government charged Ms. D’Andrea under the criminal provisions of the Federal Food, Drug & Cosmetic Act ("FDCA"), alleging that Ms. D’Andrea caused medical practitioners to engage in conduct that resulted in the rectal pressure sensors being adulterated. Under the FDCA, a device is adulterated if it was "prepared, packed, or held under insanitary conditions whereby it may have been contaminated with filth, or whereby it may have been rendered injurious to health." As part of her guilty plea, Ms. D’Andrea acknowledged the government’s evidence that reusing the rectal pressure sensor on multiple patients, even when covered with a glove, resulted in the adulteration of the device given the risk of cross-contamination of viral and bacterial diseases. She faces up to a year in prison.
Ms. D’Andrea’s guilty plea follows the May 2020 convictions of Dr. Roger Beyer and Susan Wright who, in addition to convictions related to healthcare fraud, both pleaded guilty to counts of adulteration involving the reuse of the Prometheus rectal pressure sensor on multiple patients at Dr. Beyer’s practices. On October 29, 2020, U.S. District Judge Janet T. Neff sentenced Dr. Beyer to 57 months of incarceration, and she previously sentenced Ms. Wright to three years of probation and over 3,000 hours of community service. Dr. Beyer and Ms. Wright, along with an office manager, paid separate civil settlements under the Federal False Claims Act totaling over $1.25 million.
"The Federal Food, Drug & Cosmetic Act plays an important role in protecting the public health and safety," stated U.S. Attorney Birge. "When device manufacturer representatives and medical practitioners flaunt the rules, they jeopardize the wellbeing of patients in our community. My office is committed to working with FDA and other law enforcement to hold any other responsible parties accountable for this or other similar misconduct."
"The FDA requires medical device manufacturers to provide healthcare professionals with the important safety information, including single-use and single-user designations, that is required to protect patients’ health. When manufacturers and their representatives blatantly disregard this safety information, they put patients’ health at risk," said Special Agent in Charge Lynda M. Burdelik, FDA Office of Criminal Investigations Chicago Field Office. "We will continue to aggressively investigate and bring to justice those who threaten the health and safety of Americans."
This case was the result of an investigation by FDA’s Office of Criminal Investigations, the U.S. Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation, in coordination with the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Raymond E. Beckering III and Trial Attorney Ross S. Goldstein of the Justice Department’s Consumer Protection Branch are prosecuting the criminal case against Ms. D’Andrea, with subject-matter expertise and assistance from FDA’s Office of Chief Counsel and Assistant U.S. Attorney Andrew J. Hull.
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Marion County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Shawn Monte Pritchard, of Fairmont, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Pritchard, 33, pled guilty to one count of “Unlawful Possession of a Firearm.” Pritchard, a person prohibited from having a firearm because of prior felony convictions, admitted to having a 12-gauge shotgun in May 2020 in Marion County.
Pritchard faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Sentenced for Producing Images of Child Sexual AbuseRead the Press Release
NORFOLK, Va. – A Keswick man was sentenced today to 22 years in prison for his role in producing images of child sexual abuse and attempting to meet a minor for sex.
According to court documents, in 2019, Bryan Wesley Petitt, 33, engaged in sexually explicit communications with an undercover agent he believed to be a 14-year-old minor. Petitt drove from Charlottesville to military housing in Norfolk in order to engage in sex with the girl. Upon his arrest, law enforcement officers discovered images of child sexual abuse on his phone. Investigators later learned that Petitt produced one of the images.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Gregory Scovel, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.
Special Assistant U.S. Attorney Matthew Heck prosecuted the case.
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. 2:20-cr-16.
Man Charged with Bank FraudRead the Press Release
NEW ORLEANS, LOUISIANA – JOSHUA HOCKLESS, age 29, a resident of Belle Chasse, was charged on December 11, 2020 with one count of bank fraud in violation of Title 18, United States Code, Section 1344, announced U.S. Attorney Peter G. Strasser. If convicted, HOCKLESS faces maximum penalties of 30 years imprisonment, a $1,000,000 fine, 5 years of supervised release, and a $100 special assessment.
According to the bill of information, between October 2013 and July 2014, HOCKLESS executed a scheme to fraudulently obtain approximately $87,489.34 from USAA Bank by taking advantage of USAA’s policy of honoring checks and cash transfers of enlisted personnel before the funds cleared the issuing bank. To that end, HOCKLESS opened, and caused to be opened, accounts at third-party banks. HOCKLESS used these accounts to make online transfers of cash to USAA even though the third-party bank accounts contained insufficient funds to cover the transfers. HOCKLESS then withdrew or caused these funds to be withdrawn from USAA before the fund transfers cleared the issuing bank.
U.S. Attorney Strasser reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Army Criminal Investigations Command. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor of the General Crimes Unit.
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Justice Department Requires Divestiture of Tufts Health Freedom Plan in Order for Harvard Pilgrim and Health Plan Holdings to Proceed with MergerRead the Press Release
The Department of Justice announced today that it would require Harvard Pilgrim Health Care (Harvard Pilgrim) and Health Plan Holdings (fka Tufts Health Plan) to divest Tufts Health Freedom Plan Inc. (Tufts Freedom), in order to proceed with their merger. Tufts Freedom is Health Plan Holdings’ commercial health insurance business in New Hampshire.
The department has approved UnitedHealth Group Inc. (United), as the buyer. Health insurance is an integral part of the American healthcare system, and the proposed settlement will maintain competition for the sale of commercial health insurance to private employers in New Hampshire with fewer than 100 employees.
“Americans spend trillions of dollars on healthcare each year, and competition between health insurers is vital to providing consumers with access to quality care at affordable rates. This merger, as originally structured, likely would have led to higher prices, poorer quality, and reduced choice for many consumers throughout the state,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “Today’s settlement with its divestiture will ensure that small groups and CRC groups continue to benefit from the competition that has enabled them to purchase the health insurance plans for their employees at competitive prices in the state.”
“This case will play an important role in maintaining competition in New Hampshire’s health insurance industry,” said Scott W. Murray, U.S. Attorney for the District of New Hampshire. “By bringing this antitrust action, the Department of Justice is working to ensure that consumers in the Granite State have adequate and affordable health insurance options.”
“New Hampshire’s healthcare costs are among the highest in the country. It is an essential duty of the New Hampshire Attorney General to protect consumers of this State. Such protection requires ongoing and vigorous antitrust enforcement efforts,” said New Hampshire Attorney General Gordon J. MacDonald. “In this case, New Hampshire collaborated with our federal partner, the Antitrust Division of the United States Department of Justice, to protect consumers from an anticompetitive health insurance transaction that likely would have led to higher premiums and costs for consumers in the State. We believe the proposed settlement and remedy will restore any lessening of competition resulting from the proposed merger. We remain committed to using all available tools to protect New Hampshire consumers from higher healthcare costs.”
The Justice Department’s Antitrust Division, along with the New Hampshire Office of Attorney General, filed a civil antitrust lawsuit today in the U.S. District Court for the District of New Hampshire to block the proposed merger. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in its complaint.
According to the department’s complaint, Harvard Pilgrim and Tufts Freedom are two of the three top commercial group health insurers that offer plans to two types of private employers in New Hampshire: (1) employers with between one and 50 employees (small groups) and (2) employers with between 51 and 99 employees (CRC groups). The department’s complaint alleges that since Tufts Freedom’s inception in 2016, competition between it and Harvard Pilgrim has resulted in lower premiums, richer plan benefits, and better service for small groups and CRC groups in New Hampshire.
Under the terms of the proposed settlement, Harvard Pilgrim and Health Plan Holdings must divest Tufts Freedom to United or to an alternative purchaser approved by the United States, and allow United the opportunity to hire key employees who operate Tufts Freedom. Harvard Pilgrim and Health Plan Holdings must also provide transition services and use best efforts to maintain Tufts Freedom’s contracts with healthcare providers during the transition to United.
The department has also closed its investigation into the merger’s potential effects in Massachusetts after concluding that the merger was unlikely to substantially lessen competition there.
Harvard Pilgrim is a regional health insurer based in Wellesley, Massachusetts. Its annual revenue in 2019 was approximately $3 billion, with the vast majority coming from commercial insurance products.
Health Plan Holdings is a regional insurer based in Watertown, Massachusetts. Its annual revenue in 2019 was over $5.5 billion, with roughly one-third coming from commercial insurance products. Health Plan Holdings sells commercial group health insurance plans to small and large employer groups in New Hampshire through Tufts Freedom.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Eric Welsh, Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 4100, Washington, DC 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of New Hampshire may enter the final judgment upon finding it is in the public interest.
Justice Department Reaches Major Olmstead Settlement Agreement with North DakotaRead the Press Release
The Justice Department today announced a settlement agreement with the State of North Dakota under the Americans with Disabilities Act (ADA). The agreement resolves complaints alleging that North Dakota unnecessarily institutionalizes individuals with disabilities in nursing facilities, instead of providing them the services they need to live in the community.
“Today’s settlement is a great victory for the people of North Dakota and its government. The settlement agreement will ensure that individuals with disabilities are no longer unnecessarily institutionalized in nursing facilities. Instead, these individuals will be able to choose to remain in their own home, near family and friends,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We commend the State of North Dakota for making changes to its long-term care service system in a manner that will benefit both people with physical disabilities and their families, friends, and communities throughout the Peace Garden State. The settlement agreement is an important step towards inclusion, not just for the State, but as a model nationwide.”
“The settlement we reached ensures that thousands of North Dakotans with disabilities, including seniors, will have a meaningful choice for where they wish to live, including in their own private home,” said U.S. Attorney Drew Wrigley for the District of North Dakota. “That is the sacred promise of the Americans with Disabilities Act, and I commend our state partners who joined my office and the Department of Justice in securing for North Dakotans the right to age in place for today and all the years to come.”
Under the agreement, North Dakota will expand services to individuals with physical disabilities in, or at risk of entering, a nursing facility to allow them to live in their homes. The state will provide these services to more than 2,500 people with disabilities, helping them to assess their options, decide where they would like to live, and arrange for community-based services. These services include assistance in finding accessible housing and home health aides to help with daily activities such as bathing and dressing. As part of the agreement, North Dakota will also increase access to community-service providers.
Enabling people in nursing facilities, who choose and are appropriate for community-based care, to transition to the community is especially urgent during the COVID-19 pandemic, given the high risk of virus transmission in congregate settings.
July 26, 2020, marked the 30th Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. Please visit the department’s ADA Anniversary webpage to learn more about the ADA’s history and impact.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Illegal Alien Who Unlawfully Possessed a Gun and Who Was Shot in Waterloo in 2000 Sentenced to Federal PrisonRead the Press Release
A Mexican man who had been a fugitive from justice for nearly 15 years was sentenced today to more than 3 years in federal prison.
Perpecto Rico-Perez, age 51, a citizen of Mexico, who was illegally present in the United States and living in Waterloo, Iowa, in the early 2000s, received the prison term after a July 21, 2020 guilty plea to one count of possession of a firearm by an illegal alien.
Information disclosed at sentencing and in a plea agreement showed that, on May 25, 2000, Rico-Perez and his brother went to Wildside Creationz, a former auto shop in Waterloo. While they were inside, an altercation ensued and Rico-Perez was shot in his right eye, his brother was shot in the chest and arm, and a third man was shot and killed. Law enforcement arrived and found close to two kilograms of cocaine inside the business.
Immediately following the shooting, Rico-Perez and his brother fled the scene and returned to Rico-Perez’s residence in Waterloo, where Rico-Perez’s young daughter called 911. In the late evening hours of May 25, 2000, law enforcement officers executed a search warrant at Rico-Perez’s residence. In a small cupboard above a bathtub in the bathroom, they recovered a .45 caliber handgun, which had been reported stolen less than six months earlier.
Rico-Perez was sentenced in Cedar Rapids by United States District Court Judge Linda Reade. Rico-Perez was sentenced to 37 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. Rico-Perez 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 Matthew J. Cole and Special Assistant United States Attorney Dillan Edwards and investigated by the Waterloo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 05-CR-02019.
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Illegal Alien Sentenced to Five Years in Prison After Assaulting A Family with A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Jose Luis Sanchez-Lule (age 37) to five years in federal prison for possession of a firearm by an illegal alien, and for illegal reentry into the United States after deportation. The court also ordered Sanchez-Lule to forfeit a firearm and ammunition.
Sanchez-Lule had pleaded guilty on September 3, 2020.
According to court documents, Sanchez-Lule assaulted a family as they were driving home from a trip to Cape Canaveral. On April 10, 2019, a man and woman took their 14-year-old son to Cape Canaveral for a rocket launch. After the launch was cancelled, the family began driving back to their home in Ft. Myers. At approximately midnight, the family stopped at a convenience store in Zolfo Springs and then resumed driving south on Highway 17. A few miles later, they saw a black SUV stopped on the shoulder on the opposite side of the road. When they passed it, the black SUV turned on its lights, made a U-turn, and began tailgating the family’s car with bright lights shining from the black SUV’s front grille. Thinking the black SUV could be a police vehicle, the family initially slowed down, but the SUV continued to drive aggressively near them. Realizing it was not a police car, the family made a U-turn back towards Zolfo Springs and called 911. The black SUV made a U-turn and followed them. After unsuccessfully trying to block the family’s vehicle, Sanchez-Lule pulled his SUV alongside the family’s car, lowered his window, and pointed a firearm at them. The family continued to drive at a high rate of speed into the city limits of Zolfo Springs. As they approached town, Sanchez-Lule slowed his SUV.
Deputies from the Hardee County Sheriff’s Office responded to the 911 call and saw the family’s car approaching town with the SUV following them. The deputies stopped the SUV and removed Sanchez-Lule, who was the only occupant in the vehicle. The deputies searched the SUV and found a rifle positioned where it was readily accessible to the driver, along with a box of ammunition. They also found a spent shell casing inside the SUV.
Sanchez-Lule is a citizen of Mexico. After being deported from the United States in 2012, he reentered the country without the consent of the Attorney General or the Secretary for the Department of Homeland Security.
“Removing dangerous criminal aliens like this from our communities is at the core of the mission for ICE’s Enforcement and Removal Operations (ERO),” said Miami ERO Field Office Director Michael Meade. “Thanks to an integrated law enforcement response, he will now be held accountable for his actions.”
“This case is an example of law enforcement partners working together with the goal of making our communities safer and HSI is proud to be part of this investigative effort,” said HSI Tampa Assistant Special Agent in Charge Michael Cochran.
This case was investigated by U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations and Enforcement and Removal Operations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hardee County Sheriff’s Office, and the Wauchula Police Department. It was prosecuted by Assistant United States Attorney Michael Sinacore.
Huntington Man Sentenced to Federal Prison for Drug CrimesRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced today that Martel DaAngelo Brown, 33, of Huntington, was sentenced to 21 months in federal prison for two counts of distribution of fentanyl and one count of possession with intent to distribute fentanyl.
“We continue our work to reduce the supply of fentanyl and remove fentanyl dealers from our communities,” said United States Attorney Mike Stuart. “Fentanyl is a deadly drug that has taken the lives of many throughout our state.”
Brown previously pled guilty and admitted that on February 5 and 7, 2020, he distributed fentanyl in Huntington during controlled buys conducted by the Cabell County Sheriff’s Office and the FBI’s Southern West Virginia Transnational Organized Crime (TOC) West Task Force. On February 10, 2020, a search warrant of his Huntington residence yielded approximately 1.7 grams of fentanyl, digital scales, and a ledger.
The investigation was conducted by the Cabell County Sheriff’s Office and the FBI’s Southern West Virginia Transnational Organized Crime (TOC) West Task Force. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe handled the prosecution.
The case was prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00039.
Follow us on Twitter: SDWVNews and USAttyStuart
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High Point Man Convicted of Planning and Aiding and Abetting the Armed Robbery of Jewelry Stores in Elizabeth City and GarnerRead the Press Release
NEW BERN, N.C. – A federal jury convicted a High Point man Friday on charges of conspiracy to commit Hobbs Act robbery, two counts of Hobbs Act robbery, brandishing a firearm during and in relation to a federal crime of violence and witness tampering.
According to court records and evidence presented at trial, Charles Walker, Jr., a/k/a “Supreme,” 56, was convicted after a 5-day trial in New Bern. The case involved two Hobbs Act robberies at Kay Jewelry stores, one in Elizabeth City and one in Garner. The robbers were able to get away with almost $600,000.00 worth of jewelry. These were violent robberies as firearms were brandished during both robberies. During one of the robberies, a store employee was handcuffed behind her back and left in a backroom of the store. During the trial, the defendant took the stand and admitted during cross-examination that he is closely associated with a high-ranking blood member in Greensboro.
Walker is an extremely violent and dangerous individual. He was previously convicted of first-degree murder. He ultimately won a new trial and pled guilty to conspiracy to commit murder and accessory after the fact to murder after he had served 17 years in prison.
Walker faces a mandatory minimum of seven years and a maximum of life in prison when sentenced on February 26, 2021. Walker’s co-defendants – Christopher Brown, Malik Maynard, and Byron Sparks previously pled guilty and are awaiting sentencing. Another co-defendant, Joey Chambers, has already been sentenced by Judge Flanagan to 144 months in prison.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The Federal Bureau of Investigation (FBI), the Elizabeth City Police Department, the Garner Police Department, and the Greensboro Police Department investigated the case. Assistant U.S. Attorneys Robert J. Dodson and Daniel W. Smith prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:18-cr-00037-FL.
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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.
Hattiesburg Man Pleads Guilty to Tax FraudRead the Press Release
Hattiesburg, Miss. – Charles Chandler Smith, 43, of Hattiesburg, pled guilty today before Senior U.S. District Judge Keith Starrett to filing a false tax return, announced U.S. Attorney Mike Hurst and Internal Revenue Service Acting Special Agent in Charge James Dorsey of the IRS Criminal Investigation’s Atlanta Field Office.
According to the facts revealed at his plea hearing, in 2014, Smith took advantage of a tax deduction strategy to deduct money on his tax return and thereby reduce his taxable income. Smith transferred a total of $1,305,090 from an account held by his business, Lil Mad, to another company and falsely claimed it as a business expense deduction on his 2014 tax return. Smith falsely claimed that his income with Lil Mad was only $143,070. Smith admitted to knowing this act was unlawful or deliberately blinded himself to suspicious aspects of the deduction, particularly the fact that the money was soon transferred back to an account that was available to Smith for his personal use.
Smith will be sentenced on March 24, 2021 by Judge Starrett. He faces a maximum penalty of 3 years in prison and a $100,000 fine.
The case was investigated by IRS Criminal Investigation and the FBI. It was prosecuted by DOJ Health Care Fraud Trial Attorney Sara Porter and Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Hampshire County man admits to child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jonathan Burgess, of Augusta, West Virginia, has admitted to a child pornography charge, U.S. Attorney Bill Powell announced.
Burgess, age 57, pled guilty to one count of “Possession of Child Pornography.” Burgess admitted to having child pornography images of a minor who hadn’t reached the age of 12 in Hampshire County in September 2019. 9 in Morgan County.
Burgess faces 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 Kimberley D. Crockett is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Gang Member Pleads Guilty to Firearm CrimesRead the Press Release
NORFOLK, Va. – A Suffolk man pleaded guilty today to possessing a firearm while an unlawful user of controlled substances and possessing a firearm in furtherance of drug-trafficking crimes.
According to court documents, Antonio Lamon Jefferson, Jr., 25, is a member of the Suffolk-based street gang YNGI. YNGI members have been involved in a string of recent shootings. Jefferson has been arrested three times since April 2019 for possessing more than five pounds of marijuana, a rifle, multiple handguns, and about $35,000 in cash. Jefferson has been arrested twice at residences he used as drug premises—storing, packaging, and selling marijuana, hoarding drug proceeds, and arming himself at those locations to protect his drug trade. At one residence, he was armed with a handgun that had been reported stolen.
Jefferson is scheduled to be sentenced on April 2, 2021. He faces a mandatory minimum of five years in prison and a maximum of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 reinvigorated PSN in 2017 as part of a 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Al Chandler, Interim Chief of Suffolk Police; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after U.S. District Judge John A. Gibney Jr. accepted the plea.
Assistant U.S. Attorney William B. Jackson is prosecuting the case.
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. 2:20-cr-65.
Fort Pierre Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Fort Pierre, South Dakota, man has been indicted by a federal grand jury for Sexual Exploitation of a Child; Distribution of Material Involving the Sexual Exploitation of Minors; and Possession of Child Pornography.
James Cadwell, age 39, was indicted on November 10, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 9, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 15 years up to 30 years in federal prison and/or a $250,000 fine, 5 years up to life of supervised release years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 26, 2020, Cadwell knowingly produced, distributed, and possessed child pornography.
The charges are merely accusations and Cadwell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Pierre Police Department, the South Dakota Division of Criminal Investigation, and the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Cadwell was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Defiance Woman Sentenced to Prison for Assault with a Dangerous WeaponRead the Press Release
PHOENIX, Ariz. – On November 19, Khadijha Louraye Keams, of Fort Defiance, Arizona, was sentenced by U.S. District Judge Michael T. Liburdi to eight years in prison, followed by three years of supervised release. Keams previously pleaded guilty to one count of assault with a dangerous weapon.
Keams admitted that in November 2019 she intentionally stabbed the victim multiple times in the chest and body with a knife before fleeing the scene. The assault took place on the Navajo Nation Indian Reservation, where Keams and the victim are tribal members.
The Federal Bureau of Investigation and the Navajo Nation Department of Criminal Investigation conducted the investigation in this case. Assistant U.S. Attorneys Kiyoko Patterson and Amy Chang, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-8262-PCT-MTL
RELEASE NUMBER: 2020-108_Keams# # #
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.Former bank branch manager sentenced to 3 years for embezzling funds from bank account of customer with dementiaRead the Press Release
U.S. Attorney Justin Herdman announced today that Audrey Ivers Whitworth, 26, of Rittman, was sentenced by U.S. District Court Judge Donald C. Nugent to 36 months of prison and two years of supervised release after she pleaded guilty to one count of bank embezzlement and one count of aggravated identity theft.
According to the indictment, from June 23, 2017, to August 5, 2019, while Whitworth was employed as a branch manager of a federally-insured bank, she embezzled approximately $84,000 by making unauthorized withdrawals from the account of an 84-year-old customer with dementia.
“This defendant stole over $80,000 from an 84-year-old woman who was suffering with dementia, said U.S. Attorney Justin Herdman. “This conduct is, quite simply, reprehensible and the severity of the defendant’s actions are reflected in this three-year prison sentence. Since it was founded 150 years ago, the Justice Department has been committed to protecting the most vulnerable among us, and our elderly friends, neighbors and loved ones are no exception.”
"This individual preyed upon and took advantage of an elderly person experiencing age related decline,” said FBI Special Agent in Charge, Eric B. Smith. “We all have people in our lives, many elderly - family, friends, neighbors, that we care for. We must pay special attention to our elderly population and hold individuals like Ms. Whitworth accountable for her despicable criminal behavior."
The investigation preceding the indictment was conducted by the Smithville Police Department and the Federal Bureau of Investigation, Canton Resident Agency. The case was prosecuted by Assistant U.S. Attorney Brian McDonough.
This case was brought as part of the Department of Justice’s Elder Justice Initiative, a nationwide initiative to combat the growing epidemic of elder fraud and abuse, launched in October 2017 by the Department of Justice. Led by U.S. Attorneys’ Offices, the Elder Justice Initiative marshals federal, state and local resources to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect, financial fraud, and scams that target our nation’s seniors. For more information about the Elder Justice Initiative, please visit https://www.justice.gov/elderjustice.
Former Police Officer Sentenced to Prison for Drug ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A former Hampton police detective was sentenced today to six years in prison for conspiring to distribute more than 500 grams of cocaine.
According to court documents, Deangelo Freeman, 32, conspired with local drug dealers while he was a detective in the Special Investigations Unit of the Hampton Police Division. Specifically, Freeman was associated with a number of individuals who were selling large quantities of cocaine. These individuals included Alex Burnett who owned 9Rounds Gym in Hampton Town Center. Freeman admitted to providing information to Burnett about an ongoing federal criminal investigation. Freeman learned of this information while serving as a narcotics detective and participating in the investigation of Burnett. The information provided by Freeman included the identity of a confidential informant. Freeman provided the information to compromise the investigation and to help Burnett’s drug distribution activities.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
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. 4:17-cr-111.
Former FBI Official Pleads Guilty to Receiving Bribes and Falsifying Tax ReturnRead the Press Release
POCATELLO – Former Federal Bureau of Investigation official James Heslep, 51, of Gainesville, Virginia, pleaded guilty to receiving a bribe by a public official and making and subscribing a false federal income tax return, U.S. Attorney Bart M. Davis announced today. Heslep pleaded guilty to a two-count criminal information filed in connection with his plea agreement. Sentencing is set for March 17, 2021, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. In October 2020, Robert Bailey, 63, of Centreville, Virginia, pleaded guilty to paying a bribe to a public official. Bailey’s sentencing has been rescheduled to March 23, 2021.
According to court records, Heslep was a Management and Program Analyst with the FBI. In that position, Heslep was responsible for managing construction and services contracts for FBI buildings across the country.
According to court records, in 2001, Bailey, purchased L-1, a construction management and operations company located in Chantilly, Virginia. In 2008, Heslep and Bailey became business acquaintances when they worked together on an FBI construction project.
According to court records, in 2017, the FBI broke ground on the construction of a data center in Pocatello, Idaho (the Pocatello Data Center project). The Pocatello Data Center project involved construction of a two-building, 140,000 square-foot complex that would accommodate data halls containing computer equipment and office space. The purpose was to consolidate multiple FBI data centers from across the country and improve efficiency and cyber-security. In 2017, Heslep became the Contracting Officer Representative (COR) for the Pocatello Data Center project. In that position, Heslep had management and oversight responsibilities over the construction of the Pocatello Data Center.
According to court records, from 2016 through 2018, Bailey and L-1 made illegal payments, and gave items of value, to Heslep. These payments included 18 deposits totaling $120,000 into a bank account controlled by Heslep. From this account, Heslep made payments on a personal loan, home mortgage, car, credit card, and vacation travel payments, among other personal expenditures at retail stores, such as a pair of diamond earrings that cost $5,300. In addition, Bailey and L-1 provided the following items of value to Heslep: a fiftieth birthday party in Dallas, Texas, including first-class airfare, hotel accommodations, and tickets to a Dallas Cowboys football game; a beach house rental in Nags Head, North Carolina; first-class Amtrak train tickets; invitations to a L-1 company holiday party; and tickets to a Washington Nationals baseball game, among other gratuities. The total value of the unlawful payments and gratuities was $128,128.
According to court records, Bailey and L-1 made these payments, and gave these items of value, to Heslep with the intent to influence Heslep in performing official acts at FBI to benefit L-1 on the Pocatello Data Center project. These official acts included the following: Heslep seeking and receiving authorization for approximately $16,000 monthly per diem payments from the FBI to Bailey for L-1 employees who stayed at Bailey’s house instead of a hotel; Heslep soliciting and including Bailey’s edits in the statement of work to a $12.2 million construction and services bridge contract (related to the Pocatello Data Center project) that the FBI later awarded to S-1 (as general contractor) and L-1 (as subcontractor); and Heslep convincing his FBI superiors to pay L-1 for its work on the bridge contract at higher Washington, D.C. metropolitan-area labor rates, rather than lower Idaho labor rates. The Washington D.C. labor rates were approximately 30 percent greater than the Idaho labor rates.
“Public officials take a solemn oath not to exploit their office for personal gain,” said U.S. Attorney Davis. “Mr. Heslep disregarded his ethics training, purposely violated that oath, and compromised the FBI’s contracting process. This case stands as a cautionary warning for other public officials entrusted with influence over government contracts.”
“We trust public officials to do their work with integrity and honesty. Instead, Heslep abused his position. He accepted bribes of cash, sports tickets, and other items of value in exchange for granting favorable contracting terms. The Office of the Inspector General will continue to root out this kind of behavior,” said Douglas B. Bruce, Special Agent in Charge of the Department of Justice Office of the Inspector General Denver Field Office.
“James Heslep’s guilty plea is a win for American taxpayers,” said IRS – Criminal Investigation Special Agent in Charge Andy Tsui. “Heslep’s abuse of his position of trust is an insult to all who work ethically to best serve the United States. IRS – Criminal Investigation will continue to seek out and hold accountable those who attempt to abuse the system and use government funds for their own personal gain.”
The charge of receiving a bribe by a public official is punishable by up to 15 years in federal prison, a $250,000 fine or not more than three times the monetary equivalent of the thing of value, whichever is greater, disqualification from any office of honor, trust, or profit under the United States, and up to three years of supervised release. The charge of making and subscribing a false federal income tax return is punishable by up to three years in federal prison, a $250,000 fine, and up to one year of supervised release.
This case was investigated by the Department of Justice Office of the Inspector General and Internal Revenue Service – Criminal Investigation.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Defense Department Official Arrested on Federal Charges of Taking Cash to Aid Contractor’s Request for $6.4 Million PaymentRead the Press Release
LOS ANGELES – Federal authorities have arrested a former Department of Defense civilian official on charges that he took $34,000 in illegal cash payments from a private contractor to support the contractor’s effort to obtain $6.4 million from the government in connection with construction projects on a Navy base in the African nation of Djibouti, the Justice Department announced today.
Nizar Farhat, 63, of Palm Desert, who was a former construction manager based at the Marine Corps Air Ground Combat Center in Twentynine Palms, appeared this morning in United States District Court in Charleston, South Carolina, where a judge set his bond at $75,000. Farhat was arrested on Friday by FBI agents in Mount Pleasant, South Carolina, where he has been staying in recent months.
Farhat is charged in a two-count indictment returned by a federal grand jury on December 4 that charges him with being a public official receiving an illegal gratuity and being a public official receiving compensation from a private party for government services.
In 2014 and 2015, Farhat was on assigned temporary duty at the United States Navy Base Camp Lemonnier in Djibouti, where he oversaw a private company’s $15 million contract to construct an aircraft hangar and a telecommunications facility. After the projects were completed, the company submitted to the Defense Department Requests for Equitable Adjustment (REAs) that sought $6.43 million in additional payments.
The indictment alleges that Farhat accepted $20,000 in cash from the company for performing official acts, specifically recommending that the Navy certify completion of the construction projects and pay the additional $6.43 million the company requested in the REAs. The indictment also alleges that Farhat took another $14,000 in cash from the company as compensation for advising the company and drafting the REAs submitted to the Defense Department.
The vast majority of the REAs remain under review by the Defense Department.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of both charges, Farhat would face a statutory maximum sentence of seven years in federal prison.
This matter was investigated by the FBI and Naval Criminal Investigative Service.
This case is being prosecuted by Assistant United States Attorney David T. Ryan of the Terrorism and Export Crimes Section.
Feds Charge Man for Carjacking That Led to MurderRead the Press Release
LOUISVILLE, Ky. – A Vine Grove, Kentucky man, who carjacked and murdered one person in Louisville has been arrested and charged with carjacking, announced United States Attorney Russell Coleman.
“This is exceptional police and prosecutorial work by lawmen and women who take their oath to protect all Kentuckians seriously,” said U.S. Attorney Russell Coleman.
Ashton Clay Nally, 20, of Vine Grove, Kentucky, was arrested on Sunday December 13, 2020, in Madisonville, Kentucky.
According to the criminal complaint, On November 23, 2020, LMPD received a 911 call of a shooting, which occurred at a home on Crittenden Drive, in Louisville, KY. Upon LMPD’s arrival, they located the victim, lying in the roadway outside the home, who had sustained three gunshot wounds. The victim was transported to a nearby hospital where he was pronounced dead.
Upon investigation, LMPD obtained video surveillance and a witness account from a nearby residence. While reviewing the video, an unknown individual can be observed approaching the victim. An argument can be overheard between the two. Three shots can be heard. The victim falls backwards into the roadway while the unknown individual enters the driver’s seat. The unknown individual flees the area in the vehicle at a high rate of speed.
LMPD located the victim’s vehicle, a 2016 Mazda CX-5, at the intersection of Lynn Street and Emmet Avenue where it had wrecked into another vehicle, which was parked on Lynn Street. A search of the vehicle was conducted by LMPD. During the search, a pair of glasses were located on the dashboard. These glasses were identified as having brown metal frame imprinted with MM 5105 BR 52-17-140. The right lens was removed from the frame and lying on the dashboard beside the frame. It appeared whenever the unknown individual wrecked, his glasses had fallen off and the impact caused the right lens to exit the frame.
According to the complaint, on November 30, 2020, LMPD received an anonymous online tip. This tip advised the defendant, Nally, had shot and killed the victim. The tipster also advised after the shooting Nally fled the area in the victim’s vehicle, crashing it nearby. Nally then fled on foot down Preston Highway where he threw the pistol used during the Carjacking onto a roof near the White Castle. LMPD had conducted a neighborhood canvass in the area of the wreckage. During this canvass, LMPD located video footage, which did depict Nally running towards Preston Highway.
On December 2, 2020, LMPD received a second tip that Nally admitted to another individual that he had killed the victim during the carjacking.
The federal carjacking charge carries a maximum sentence of death, a fine of $250,000, and no more than three years of supervised release.
A federal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a U.S. Magistrate Judge. The charge set forth in a complaint is merely an accusation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a Court of law.
The case is being prosecuted by Assistant United States Attorney Tom Dyke. The FBI Louisville Field Office and Louisville Metro Police Department are investigating this case.
This case falls with the purview of the federal carjacking task force formed in August of 2020 as carjackings in Louisville skyrocketed. The partners on the task force include: The Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Homeland Security Investigations (HIS), the Louisville Metro Police Department, the Kentucky State Police, the Jefferson Co. Sheriff’s Office, and the United States Attorney’s Office.
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Fairbanks Man Sentenced to 9 Years in Federal Prison for Possession of Stolen Firearm and Methamphetamine TraffickingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced Brian James Tepner, 48, of Fairbanks, Alaska, has been sentenced to 108 months in federal prison followed by 8 years of supervised release on charges of possession with intent to distribute methamphetamine and for being a felon in possession of a stolen firearm.
At 3:30 a.m. on March 22, 2019, Tepner was found slumped over in the driver’s seat of a vehicle parked at a Sourdough Fuel station in Fairbanks. Alaska State Troopers saw an open container of alcohol, hypodermic needles, and a spoon with burnt heroin residue in plain view during the contact. Troopers obtained a search warrant for the vehicle and seized 191 grams of methamphetamine, three grams of heroin, and a stolen S&W .22 caliber pistol. Troopers also located drug dealing paraphernalia, including ledgers, two scales, and multiple plastic baggies and cell phones. Tepner was apprehended, but left Alaska shortly after being released.
Tepner was indicted by a Grand Jury in the District of Alaska on May 22, 2019. On June 25, 2019, he was arrested in Phoenix, Arizona and transported back to Alaska.
In imposing the 108-month sentence, the Court noted Tepner’s long criminal record and recent threats he made towards his wife on recorded jail calls as justifying the lengthy sentence.
The Federal Bureau of Investigation (FBI), Alaska State Troopers (AST), and the Fairbanks Area Narcotics Team conducted the investigation leading to the sentence in this case. The Fairbanks Area Narcotics Team is part of Alaska’s High Intensity Drug Trafficking Areas (HIDTA) program. Established in 2018, the Alaska HIDTA Program enhances and coordinates efforts among local, state, and federal law enforcement agencies, providing equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of Alaska. The case was prosecuted by Assistant U.S. Attorney Ryan Tansey.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please visit https://www.justice.gov/ag/about-project-guardian
Ex-Skyworks Solutions Semiconductor Engineer Sentenced to 18 Months in Federal Prison for Committing Insider TradingRead the Press Release
LOS ANGELES – A former semiconductor engineer was sentenced today to 18 months in federal prison for committing insider trading when he obtained his publicly traded employer’s non-public financial results without authorization and then illegally used the confidential information to purchase large amounts of stock prior to the information’s release.
Yuh-Yue Chen, 53, of Taiwan, was sentenced via videoconference by United States District Judge Percy Anderson, who also ordered Chen to pay a $6,000 fine. Chen pleaded guilty on October 1 to one count of securities fraud.
Chen was an electrical engineer at Skyworks Solutions Inc., a publicly traded Woburn, Massachusetts-based semiconductor company with a branch office and design center in Irvine. During the spring and summer of 2014, Chen bought Skyworks stock and options based on confidential information not yet available to the public.
Specifically, Chen used his employee security badge to gain unauthorized access to the company’s restricted office area for the accounting and financial staff. Once inside, Chen went through the desks and work areas to find the company’s non-public earnings reports. Using this confidential information, Chen bought large amounts of Skyworks securities. Once Skyworks released its earnings reports to the public, Chen sold his Skyworks securities for a profit.
In September 2014, Chen left the United States for Taiwan five days after two Skyworks employees caught him rifling through company documents in the restricted accounting and finance office, according to court papers. Soon afterward, Skyworks fired him.
Through this insider trading scheme, Chen received more than $700,000 in illegal profit.
In a lawsuit brought by the Securities and Exchange Commission, Chen was ordered to pay a $739,959 judgment to the SEC stemming from his insider trading scheme while he was employed at Skyworks Solutions.
In March 2019, law enforcement interviewed Chen at Los Angeles International Airport, where he admitted to committing insider trading, according to court documents.
The FBI investigated this matter.
Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office prosecuted this case.
Emeryville Man Pleads Guilty to Selling Stolen MacBooks to Folsom ContactRead the Press Release
SACRAMENTO, Calif. — Jonas Jarut, 41, of Emeryville, pleaded guilty today to conspiracy to transport stolen property interstate, U.S. Attorney McGregor W. Scott announced.
According to court documents, Jarut worked as a database administrator in the Graduate School of Education at a public university in Berkeley. In that position, his duties included purchasing Apple MacBooks for the graduate school. In March 2019, Jarut began stealing MacBooks from the graduate school and selling them for cash to an individual in Folsom who, in turn, resold and shipped them to buyers outside the state of California. In total, Jarut stole and sold that individual at least 90 MacBooks. The cost to the graduate school of those MacBooks was over $200,000.
This case is a product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
Jarut is scheduled for a status conference regarding sentencing on June 14, 2021. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Detroit Man Sentenced to Federal Prison for Drug CrimeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that Kwaine Brengettcy, 34, of Detroit, was sentenced to 70 months in federal prison for possession with intent to distribute methamphetamine.
“100% pure meth,” said United States Attorney Mike Stuart. “Meth is wreaking havoc on our communities. With each prosecution of a meth dealer like Brengettcy, we are taking back our streets and fighting for families who have lost loved ones to overdose.”
Brengettcy previously pled guilty and admitted that on February 28, 2020, law enforcement officers executed a search warrant on a residence in Beckley. As the officers entered, they observed Brengettcy jump up and flee to the back room. They later located 21 grams of methamphetamine inside his jacket pocket. Brengettcy also had rented a hotel room nearby, which was searched by law enforcement. Inside, they discovered $10,576 in U.S. currency. Some of the bills in that sum of cash were marked as being used in previous controlled drug buys by law enforcement.
Brengettcy was interviewed and admitted to bringing methamphetamine from Detroit to Beckley, and that he had been selling methamphetamine in the area for at least four months prior to his arrest. The methamphetamine that was recovered was sent to a Department of Homeland Security laboratory, where it was tested and proved to be 100% pure methamphetamine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Beckley Raleigh County Drug and Violent Crime Unit. United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney L. Alexander Hamner handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00067.
Follow us on Twitter: SDWVNews and USAttyStuart
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Department of Justice Reaches Major Olmstead Settlement Agreement with North DakotaRead the Press Release
WASHINGTON – The Justice Department today announced a settlement agreement with the State of North Dakota under the Americans with Disabilities Act (ADA). The agreement resolves complaints alleging that North Dakota unnecessarily institutionalizes individuals with disabilities in nursing facilities, instead of providing them the services they need to live in the community.
“Today’s settlement is a great victory for the people of North Dakota and its government. The settlement agreement will ensure that individuals with disabilities are no longer unnecessarily institutionalized in nursing facilities. Instead, these individuals will be able to choose to remain in their own home, near family and friends,” said Assistant Attorney General Eric Dreiband. “We commend the State of North Dakota for making changes to its long-term care service system in a manner that will benefit both people with physical disabilities and their families, friends, and communities throughout the Peace Garden State. The settlement agreement is an important step towards inclusion, not just for the State, but as a model nationwide.”
“The settlement we reached ensures that thousands of North Dakotans with disabilities, including seniors, will have a meaningful choice for where they wish to live, including in their own private home,” said U.S. Attorney Drew Wrigley, “that is the sacred promise of the Americans with Disabilities Act, and I commend our state partners who joined my office and the Department of Justice in securing for North Dakotans the right to age in place for today and all the years to come.”
Under the agreement, North Dakota will expand services to individuals with physical disabilities in, or at risk of entering, a nursing facility to allow them to live in their homes. The State will provide these services to more than 2,500 people with disabilities, helping them to assess their options, decide where they would like to live, and arrange for community-based services. These services include assistance in finding accessible housing and home health aides to help with daily activities such as bathing and dressing. As part of the agreement, North Dakota will also increase access to community-service providers.
Enabling people in nursing facilities, who choose and are appropriate for community-based care, to transition to the community is especially urgent during the Covid-19 pandemic, given the high risk of virus transmission in congregate settings.
July 26, 2020 marked the 30th Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. Please visit the department’s ADA webpage to learn more about the ADA’s history and impact.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
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Department of Justice Announces Joint Final Rule Regarding Equal Treatment of Faith-Based Organizations in Department-Supported Social Service ProgramsRead the Press Release
The Department of Justice announced a joint final rule with eight other Agencies — the Agency for International Development and the Departments of Agriculture, Education, Health and Human Services, Homeland Security, Housing and Urban Development, Labor, and Veterans Affairs — to implement President Trump’s Executive Order No. 13831, on the Establishment of a White House Faith and Opportunity Initiative (May 3, 2018). This rule ensures that religious and non-religious organizations are treated equally in DOJ-supported programs, and it clarifies that religious organizations do not lose their legal protections and rights just because they participate in federal programs and activities.
“The freedom to exercise religious beliefs is a cornerstone of our Constitution and the federal government must uphold this right for all Americans. The Constitution and Federal statutes require all agencies of government to treat religious groups fairly,” said Attorney General William P. Barr. “This joint final rule is another in a long line of steps this Administration has taken to restore and protect religious liberty and ensure equal treatment for people of faith.”
This final rule ensures equal treatment for faith-based organizations, consistent with the Constitution and other federal law. It removes requirements in prior regulations that placed unequal burdens on religious organizations, cast unwarranted suspicion on them, and were in tension with their religious liberty rights. This final rule also clarifies that religious organizations do not lose various legal protections because they participate in federal programs and activities, such as the rights to accommodations and conscience protections under the First Amendment, Religious Freedom Restoration Act, and other federal laws.
This final rule preserves most of the existing regulations governing participation of religious organizations in DOJ’s financial assistance programs, including provisions barring providers from discriminating against beneficiaries based on religion and requiring that any religious activities by the organization be separated in time or location from any services directly funded with federal money.
The final rule was drafted in response to Executive Order 13831, issued in May 2018. The nine Agencies worked collaboratively to draft notices of proposed rulemaking that were published or delivered to Congress in January 2020. These Agencies then received over 95,000 public comments from a range of interested parties, including Members of Congress; state and local governments, agencies, and officials; faith-based services providers and umbrella organizations; advocacy organizations; and individuals. The Agencies considered those comments, modified their regulations to address concerns raised in the comments, and drafted responses included in the final rule.
Cumberland County Man Admits Conspiring to Distribute Cocaine and Possessing with Intent to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Cumberland County, New Jersey, man pleaded guilty to conspiracy to distribute 500 grams or more of cocaine and possession with intent to distribute 400 grams or more of fentanyl, U.S. Attorney Craig Carpenito announced.
Oscar J. Gonzalez, 37, of Vineland, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez to one count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine and possession with intent to distribute 400 grams or more of fentanyl.
According to documents filed in this case and statements made in court:
From Jan. 20, 2020, through Jan. 26, 2020, Gonzalez conspired with others to distribute kilograms of cocaine. On Jan. 25, 2020, he agreed to purchase kilograms of cocaine and, pursuant to that agreement, traveled to a location in Union County, New Jersey, to obtain the cocaine. He brought with him approximately $24,000 in cash, in order to pay for one kilogram of cocaine. Once at that location, he was arrested and charged with conspiracy to distribute 500 grams or more of cocaine.
While on release in connection with that case, Gonzalez agreed to distribute five kilograms of fentanyl. On April 24, 2020, Gonzalez arranged for another individual to deliver the fentanyl to a location in Monmouth County, New Jersey. Law enforcement officers seized the fentanyl from Gonzalez’ conspirator, and Gonzalez was arrested.
The count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine carries a mandatory minimum sentence of five years in prison, a maximum sentence of 40 years in prison, and a fine of up to $5 million. The count of possession with intent to distribute 400 grams or more of fentanyl carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment, and a fine of up to $10 million. Sentencing is scheduled for April 21, 2021.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent Susan A. Gibson in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Convicted Drug Trafficker Arrested for Trafficking CocaineRead the Press Release
PROVIDENCE – A Providence man currently serving a term of federal supervised release, having completed a 20-year federal prison sentence for trafficking cocaine, has been ordered detained in federal custody following his arrest for allegedly trafficking multiple kilograms of cocaine.
Jesus Martinez, 38, was arrested by U.S. Postal Inspection Service (USPIS) agents following an investigation into the alleged shipment into Rhode Island of multiple packages sent through the Postal Service containing significant quantities of cocaine, and multiple shipments to Puerto Rico via the U.S Postal Service of large sums of cash.
According to court documents, in October, a parcel containing $46,500 shipped to Puerto Rico by Martinez was seized by USPIS agents. Subsequently, it is alleged, parcels found to contain varying amounts of cocaine were shipped from Puerto Rico to various Rhode Island addresses associated with Martinez. Two parcel seizures revealed a total of 4,460 grams (nearly 4.5 kilograms) of cocaine. In late November, Martinez allegedly shipped a parcel to Puerto Rico that a court-authorized search revealed contained $7,000 concealed within a book. The investigation revealed additional parcels continued to arrive from Puerto Rico and California to addresses allegedly associated with Martinez. Agents surveilled Martinez retrieving the parcels and bringing them to his residence.
It is alleged that on December 9, Martinez retrieved two packages, one from the post office and one delivered to a Providence residence. The packages contained a total of 3,310 grams (more than 3 kilograms) of cocaine. That day, court-authorized searches were conducted at Martinez’s residence and another address associated with Martinez. The following day his vehicle was searched. In total, USPIS Inspectors and members of the High Intensity Drug Trafficking Area Task Force seized the two packages which contained a total of more than 3 kilos of cocaine, an additional 250 grams of cocaine, 23 pounds of marijuana, and a total of $95,000 in cash.
Martinez appeared before U.S. District Court Magistrate Judge Lincoln D. Almond on a federal criminal complaint charging him with conspiracy to distribute and possess with intent to distribute a controlled substance; distribution of and possession with intent to distribute a controlled substance; and unlawful use of the mail to facilitate the distribution of a controlled substance, announced United States Attorney Aaron L. Weisman, Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Zechariah Chafee.
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Chief of Staff to Former Fall River Mayor Enters Guilty PleaRead the Press Release
BOSTON – The Chief of Staff to then Fall River Mayor Jasiel Correia entered a guilty plea today to charges of extortion, bribery and making false statements.
Genoveva Andrade, 49, of Somerset, agreed to plead guilty to two counts of extortion conspiracy, two counts of extortion, one count of bribery and one count of false statements. U.S. Senior District Court Judge Douglas P. Woodlock took the plea under advisement pending sentencing, which is scheduled for April 27, 2021. Andrade was arrested and charged on Sept. 6, 2019.
At a change of plea hearing today, Andrade admitted to conspiring with Correia to extort a marijuana vendor for $150,000 in return for a letter of non-opposition from Correia. Under Massachusetts law, non-opposition letters from the head of local government are required in order to obtain a license to operate a marijuana business. After the vendor agreed to pay Correia $150,000 for the letter, Andrade said to him, “you’re family now.”
Andrade also admitted to conspiring with Correia to extort a Fall River business owner. Specifically, Andrade conspired with Correia to obtain a stream of benefits, including cash and a Rolex watch valued at approximately $7,500 to $12,000, in exchange for official action and assistance that was favorable to the business owner.
In a third criminal scheme, Andrade admitted that soon after Correia hired her as his Chief of Staff in November 2017, Andrade began kicking back half of her salary to Correia on a bi-weekly basis until July 2018. She also kicked back nearly all of the $10,000 city-funded “snow stipend” that Correia approved for Andrade.
Finally, Andrade admitted to making false statements to federal agents in December 2018 in connection with the corruption investigation into Correia.
United States Attorney Andrew E. Lelling; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Glenn A. Cunha, Massachusetts Inspector General made the announcement. Assistant U.S. Attorney Zachary Hafer, Chief of Lelling’s Criminal Division, is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chalmette Woman Indicted for Theft of Government FundsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that JAMIE MARIE KILLIAN (“KILLIAN”), age 40, of Chalmette, Louisiana, was indicted on December 11, 2020 by a federal grand jury for theft of government funds, in violation of Title 18, United States Code, Section 641.
According to today’s indictment, beginning in or about August 2013, and continuing until in or about June 2020, in the Eastern District of Louisiana and elsewhere, the defendant, JAMIE MARIE KILLIAN, did knowingly embezzle, steal, purloin, and convert to her use, money belonging to the United States and a department and agency thereof, namely, money of the Social Security Administration, to which she knew she was not entitled, when she utilized approximately $99,940.00 in Social Security Administration funds.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, KILLIAN faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Career Offender Sentenced to 10 Years for Narcotics Sales and Possessing FirearmsRead the Press Release
Tampa, Florida– Senior U.S. District Judge John Antoon II today sentenced Michael Bernard Lawson (38, Sarasota) to 10 years in federal prison for distributing cocaine base (“crack cocaine”) and possessing a firearm as a convicted felon. The court also ordered Lawson to forfeit the firearms.
Lawson had pleaded guilty on November 27, 2019.
According to court documents and information presented during the sentencing hearing, on May 23, 2018, Lawson began serving a two-year term of community control after serving five years in state prison for aggravated assault on a law enforcement officer with a firearm. In April 2019, Lawson sold crack cocaine to a confidential informant and undercover law enforcement officer on four occasions over a 16-day period. Lawson also sold the undercover officer two firearms during two of the drug transactions. One of those firearms was a short-barreled shotgun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
This case is 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.
California Man Pleads Guilty to Possession with Intent to Distribute Marijuana After Being Arrested at Cyril E. King Airport with 3 Kilograms of Marijuana in his SuitcaseRead the Press Release
St. Thomas, USVI – Nathaniel Robinson, 29, of Moreno Valley, California, appeared before U.S. Magistrate Judge Ruth Miller in District Court and entered a guilty plea to one count charging him with possession with intent to distribute less than 50 kilograms of marijuana, in violation of Title 21, United States Code, Section 841(a)(1), U.S. Attorney Gretchen C.F. Shappert announced.
Pursuant to the plea agreement, Robinson arrived at the Cyril E. King airport in St. Thomas on April 10, 2020. He retrieved his bag from baggage claim and was selected for a secondary inspection. Customs and Border Patrol Officers searched Robinson’s bag finding seven vacuum sealed plastic bags containing approximately three kilograms of marijuana.
A sentencing hearing will be scheduled at a later date.
This case was investigated by the Department of Homeland Security Investigations and Customs and Border Protection. It was prosecuted by the United States Attorney’s Office for the District of the Virgin Islands.
Buffalo Woman Pleads Guilty to Defrauding Hurricane VictimsRead 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 Keonna Davis, 33, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to wire fraud and aggravated identity theft. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that between September and December 2017, the defendant worked as a disaster recovery specialist for the United States Small Business Administration (SBA). The SBA provides low-interest disaster relief loans to help businesses and homeowners recover from federally declared disasters. In her role as a disaster recovery specialist, Davis spoke directly with loan applicants who, in the course of applying for a disaster relief loan, provided the defendant with their name, social security number, date of birth, and other personal identifying information. Davis also had access to an SBA database of loan applications that contained the personal identifying information of disaster relief loan applicants.
On August 28, 2017, in the aftermath of Hurricane Harvey, a victim, identified as G.O., applied for a disaster relief loan from the SBA. On January 21, 2018, the defendant used G.O.’s personal identifying information to apply for a $4,900 loan from MyPetFunding, LLC to lease a French bulldog. Davis scanned a copy of a driver’s license containing victim G.O.’s information, replacing G.O.’s picture with her own picture. The defendant executed similar schemes against more than 10 victims who applied for disaster relief loans from the SBA. The total loss was $285,430.
The plea is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division.
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Atlanta man pleads guilty for misrepresenting a COVID-19 test to his employerRead the Press Release
ATLANTA - Santwon Antonio Davis has pleaded guilty to wire fraud related to a scheme to defraud his employer in May 2020 by submitting a fraudulent COVID-19 medical excuse letter. He also pleaded guilty to bank fraud related to a scheme to defraud a mortgage company while he was on bond for the earlier COVID-19 wire fraud charge.
“The defendant caused unnecessary economic loss to his employer and distress to his coworkers and their families,” said U.S. Attorney Byung J. “BJay” Pak. “We will take quick action through the Georgia COVID-19 Task Force to put a stop to Coronavirus-related fraud schemes.”
“Davis’ streak of lies ended when he took advantage of a pandemic to cause undue harm to the company he worked for and their employees,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our federal and state partners remain vigilant in detecting, investigating and prosecuting any fraud related to this crisis we are all facing.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Davis, who was employed by a company with a facility located in the Atlanta, falsely claimed to have contracted COVID-19 and submitted a falsified medical record to his employer. In concern for its employees and customers, the corporation closed its facility for cleaning and paid its employees during the shutdown. This caused a loss in excess of $100,000 to the corporation and the unnecessary quarantine of several of the defendant’s coworkers.
During the COVID-19 fraud investigation, agents uncovered a previous incident in which the defendant submitted fraudulent documentation to obtain benefits from his employer. Specifically, in the fall of 2019, the defendant created and submitted false documentation to support a paid bereavement leave claim for the death of his child. This child never existed and was fabricated so that the defendant could obtain benefits to which he was not entitled.
Finally, while on pretrial release in the original COVID-19 case, the defendant submitted a mortgage application with numerous fraudulent statements, including a falsified earnings and employment history. The mortgage company discovered the fraud, in part, after seeing the news stories related to his original COVID-19 charge.
Santwon Antonio Davis, 35, of Atlanta, Georgia, pleaded guilty before U.S. District Judge William M. Ray, II, to a wire fraud charge related to a scheme to defraud his employer and to a bank fraud charge relating to the mortgage fraud. Davis was previously charged via an information with wire fraud in May 2020. He pleaded guilty admitting that he falsely represented he had COVID-19 and to other fraud offenses that were uncovered during the COVID-19 fraud investigation. Sentencing has not yet been scheduled.
This case is being investigated by the Federal Bureau of Investigation. The U.S. Department of Housing and Urban Development Office of the Inspector General offered valuable assistance in this investigation.
Assistant U.S. Attorneys Sarah Klapman and Russell Phillips are prosecuting the case.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at www.justice.gov/DisasterComplaintForm.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Alleged Leader of Steroid Distribution Conspiracy Charged with Distributing Steroids, Money LaunderingRead the Press Release
PROVIDENCE – A North Attleboro man awaiting trial in federal court in Providence on charges he allegedly led a conspiracy that arranged for the importation and distribution of large quantities of steroids has been arrested and charged with conspiring to distribute anabolic steroids and money laundering.
It is alleged in court documents that David M. Esser, 47, while awaiting trial on charges brought in February 2020 in U.S. District Court in Providence, resumed arranging for the sale, packaging, and distribution of anabolic steroids with at least one individual, a Virginia resident he allegedly conspired with in the past. It is alleged that the individual in Virginia received, prepared, packaged and shipped steroids to Esser’s customers at Esser’s direction. The orders were arranged through various means, including text messaging and encrypted emails. Payment was made in cash or by cryptocurrency.
Esser’s alleged continued criminal conduct came to light during an unrelated DEA drug trafficking investigation in Virginia. According to court documents, evidence and information allegedly included communications and information sharing between Esser and the individual in Virginia, to include steroid orders, pricing, payment methods, and shipping instructions. It is alleged the two also communicated about Esser’s business dealings, court case, and automobiles they purchased. Esser also shared photographs of a scantily clad woman he described as being his girlfriend and foods that he ate.
While on pre-trial release awaiting trial on a federal criminal complaint brought in February 2020 charging him with intent to distribute Schedule III and IV Controlled Substances; conspiracy to distribute, possess with intent to distribute and conspiracy to import Schedule III and IV Controlled Substances; manufacturing and distributing Schedule III and IV Controlled Substances; importation of Controlled Substances into the United States; trafficking in counterfeit goods and services; smuggling goods into the United States; as well as wire fraud and money laundering, Esser was arrested on Friday and appeared today in U.S. District Court in Providence on charges of conspiracy to distribute controlled substances and money laundering, announced United States Attorney Aaron L. Weisman and Homeland Security Investigations Acting Special Agent in Charge David Magdycz.
Esser was ordered detained.
The case is being prosecuted by Assistant United States Attorney Gerard B. Sullivan.
Esser’s alleged criminal activity is being investigated by a team of law enforcement agencies led by Homeland Security Investigations. United States Attorney Aaron L. Weisman and Homeland Security Investigations Acting Special Agent in Charge David Magdycz thank the DEA and the Mansfield, MA, Police Department for their assistance in the investigation of this most recent matter.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
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Alburgh Man Convicted of Child Exploitation OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Randy Sheltra, 58, of Alburgh, Vermont, was convicted on December 11, 2020, in United States District Court in Burlington, Vermont, following a six-day trial by jury, of two counts of attempting to persuade, induce, and entice a minor to engage in unlawful sexual activity, and one count of attempted receipt of child pornography. U.S. District Judge Christina Reiss ordered Sheltra to remain in custody after the jury returned its verdict.
United States Attorney Christina E. Nolan stated: “I applaud those who worked tirelessly to secure the conviction of Sheltra, a man who preyed on children. The U.S. Attorney’s Office will continue to prioritize prosecution of child exploitation crimes and we will continue to do all we can to protect the innocent and vulnerable, working with our law enforcement partners. Thank you to our talented, hardworking Assistant U.S. Attorneys Barbara Masterson and Andrew Gilman, who prosecuted the case, to our office staff who supported them, and to our outstanding law enforcement partners in Homeland Security Investigations and the Vermont Internet Crimes Against Children Task Force for investigating the case in strong collaboration.”
According to court records and proceedings, on September 7, 2017, Sheltra began communicating with whom he thought was the mother of a 10-year-old girl after she responded to an ad he posted on Craigslist. In reality, the woman was an undercover law enforcement officer. During communications between Sheltra and the undercover officer over the following three days, Sheltra attempted to persuade the woman to permit her 10-year-old daughter to engage in sexual activity with her and Sheltra. On September 10, 2017, when Sheltra showed up at a park in South Burlington to meet with whom he thought was the woman and her daughter for sexual activity, he was arrested by law enforcement. During a search of his person at the time of his arrest, law enforcement recovered Sheltra’s cell phone. In it, law enforcement discovered that in August 2017, Sheltra had attempted to persuade a real 15-year-old girl who lived in Vermont to engage in sexual activity with him. In fact, Sheltra met this 15-year-old girl and engaged in sexual activity with her. Sheltra also asked the 15-year-old girl on two separate occasions to send sexually explicit photos of her genitalia to him.U.S. Attorney Nolan commended the efforts of Homeland Security Investigations and the Vermont Internet Crimes Against Children Task Force in the investigation and prosecution of Sheltra. The prosecution of Sheltra was handled by Assistant U.S. Attorneys Barbara A. Masterson and Andrew C. Gilman. Sheltra was represented by Mark Kaplan of Kaplan & Kaplan.
Sheltra faces a sentence of not less than 10 years, and up to a lifetime term of incarceration, followed by not less than five (5) years, and up to a lifetime term, of supervised release, restitution, a possible fine, and a $300 mandatory special assessment. Sheltra’s sentence will be determined by the sentencing judge after consultation with the United States Sentencing Guidelines and the factors set forth in 18 U.S.C. § 3553(a).
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. 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.justice.gov/psc.
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.
Albuquerque man charged for assault on a federal officerRead the Press Release
ALBUQUERQUE, N.M. – Derick Martin Garcia Pacheco, 32, of Albuquerque, has been charged in a criminal complaint with assault on a federal officer, being a felon in possession of a firearm, and discharging a firearm during a crime of violence. Garcia is scheduled for an initial appearance in federal court on Dec. 15 at 9:28 a.m.
According to a criminal complaint, on Dec. 11 at 7:20 a.m., Garcia allegedly shot a special agent of the FBI as the agent was in the process of executing a search warrant on the premises. The agent was wearing a marked vest identifying him as an FBI agent, and agents had knocked, identified themselves as FBI, and announced that they had a warrant. The injured agent was transported to the University of New Mexico Hospital for care.
“On behalf of the Department of Justice, I want to extend to the injured federal agent our best wishes for a speedy and full recovery," said John Anderson, U.S. Attorney for the District of New Mexico. "This incident serves as a stark reminder of the dangers our federal, state and local law enforcement officers face on a daily basis in Albuquerque, and of the pressing need to confront the subculture of violence that is taking root in our city. Officers should be able to perform their duties without fear of becoming victims of potentially deadly gun violence in Albuquerque. We remain committed to prosecuting dangerous crime whenever and wherever it presents itself to make clear that such actions are not acceptable in Albuquerque and the District of New Mexico.”
“Law enforcement officers put their lives on the line every day to keep our communities safe,” said James C. Langenberg, Special Agent in Charge for the FBI’s Albuquerque Field Office. “FBI special agents courageously accept the danger as part of their job. Fortunately, our agent who was shot on Friday while performing his duty is out of the hospital and recovering. His bravery is an inspiration to all of us at the FBI who have sworn an oath to uphold the U.S. Constitution and defend the American people, regardless of the sacrifices that may be asked of us.”
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Garcia faces up to 20 years in prison.
The FBI investigated this case. Assistant U.S. Attorneys Holland S. Kastrin and Sarah J. Mease are prosecuting the case.
Alabama Man Sentenced to Prison for Tax EvasionRead the Press Release
WASHINGTON – An Alabama man was sentenced to serve 12 months in prison for tax evasion, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Prim Escalona for the Northern District of Alabama announced today.
According to court documents and statements made in court, John P. Cooney of Jefferson County, Alabama, disclosed to the IRS in December 2011, through late-filed tax returns, that he owed approximately $780,000 to the IRS for the 2008 to 2010 tax years. Despite acknowledging he owed these taxes, Cooney never paid them. Instead, Cooney sought to conceal income he was earning by setting up a nominee corporation, GVA Advisors LLC (GVA), and arranging for payments to be made to GVA, rather than directly to him. From 2013 through 2016, Cooney deposited more than $435,000 into the GVA account, concealing the income from the IRS and evading payment of his outstanding tax liabilities. As a result of his actions, Cooney currently owes more than $1.3 million in outstanding balances, penalties, and interest to the IRS.
Cooney previously pleaded guilty to one count of tax evasion on Feb. 18, 2020.
In addition to the term of prison imposed, Cooney was ordered to serve three years of supervised release and to pay $1,311,904.70 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Escalona commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Kathryn Sparks and Alexander Effendi of the Tax Division and Assistant U.S. Attorney Catherine Crosby, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Alabama Man Sentenced to Prison for Tax EvasionRead the Press Release
BIRMINGHAM, Ala. – An Alabama man was sentenced to serve 12 months in prison for tax evasion, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Prim F. Escalona for the Northern District of Alabama announced today.
According to court documents and statements made in court, John P. Cooney of Jefferson County, Alabama, disclosed to the IRS in December 2011, through late-filed tax returns, that he owed approximately $780,000 to the IRS for the 2008 to 2010 tax years. Despite acknowledging he owed these taxes, Cooney never paid them. Instead, Cooney sought to conceal income he was earning by setting up a nominee corporation, GVA Advisors LLC (GVA), and arranging for payments to be made to GVA, rather than directly to him. From 2013 through 2016, Cooney deposited more than $435,000 into the GVA account, concealing the income from the IRS and evading payment of his outstanding tax liabilities. As a result of his actions, Cooney currently owes more than $1.3 million in outstanding balances, penalties, and interest to the IRS.
“Today’s sentence should send a clear message that those who execute schemes to evade payment of federal income tax will be prosecuted and could face prison time,” said U.S. Attorney Escalona.
“Mr. Cooney knowingly and willfully committed a series of affirmative acts, constituting attempts to evade the payment of his income taxes, and designed to conceal his income from the IRS,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “The sentence issued today is the penalty for those actions. Taxpayers looking to willfully evade the payment of taxes should know that they will be prosecuted for those actions.”
Cooney previously pleaded guilty to one count of tax evasion on Feb. 18, 2020.
In addition to the term of imprisonment, Cooney was ordered to serve three years of supervised release and to pay $1,311,904.70 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Escalona commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Kathryn Sparks and Alexander Effendi of the Tax Division and Assistant U.S. Attorney Catherine Crosby, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Acting U.S. Attorney Bacon Announces Partnership with Special Inspector General for Pandemic RecoveryRead the Press Release
ALBANY, NEW YORK – Acting United States Attorney Antoinette T. Bacon announced today that her office has entered into a Memorandum of Understanding (MOU) with Special Inspector General Brian D. Miller of the Office of the Special Inspector General for Pandemic Recovery (SIGPR), regarding the investigation and prosecution of fraud relating to CARES Act funding.
Acting U.S. Attorney Antoinette T. Bacon stated: “This partnership is part of our effort to investigate and prosecute the fraudsters who have stolen from government-backed relief programs during the coronavirus pandemic. We look forward to working with SIGPR to prosecute bad actors, deter further fraud, and recover ill-gotten gains.”
Special Inspector General Brian D. Miller stated: “We will work with the U.S. Attorney’s Office for the Northern District of New York to hold accountable and bring to justice those who improperly take or use taxpayer dollars meant to support the Nation’s economic health and recovery.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 created SIGPR to investigate the spending of government funds meant to provide economic relief to people and businesses impacted by the coronavirus pandemic.
The MOU will allow the U.S. Attorney’s Office and SIGPR to enhance their cooperative efforts in investigating and prosecuting matters involving loans, loan guarantees and other investments made by the Secretary of the Treasury under the CARES Act.
The MOU outlines four objectives: 1) to provide a coordinated response to CARES Act funding fraud, with an emphasis on organized criminal activity, as well as criminal and civil fraud affecting federal money, vulnerable victims, and fraud recidivists; 2) to speed up legal process, case intake, and prosecution of CARES Act-related fraud; 3) to link and associate isolated CARES Act-related complaints with larger schemes and related, unlawful activity; and 4) to deter future CARES Act funding fraud by increasing awareness of successful criminal prosecutions and civil enforcement actions against individuals and companies involved in CARES-related financial fraud.
As part of the MOU, the U.S. Attorney’s Office will designate two Assistant United States Attorneys – one from the Criminal Division and one from the Civil Division – to serve as liaisons for the partnership.