Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
5 January 2021
Jemez man charged with assaultRead the Press Release
ALBUQUERQUE, N.M. – Tyler Sando, 30, an enrolled member of the Pueblo of Jemez, made his initial appearance today in federal court where he was charged with assault resulting in serious bodily injury. Sando will remain detained pending a detention hearing scheduled for Jan. 7.
According to a criminal complaint, on Aug. 11, Sando allegedly got out of his vehicle, approached the victim and proceeded to strike the victim about the head and face without provocation. Sando allegedly returned to his car and left. The assault occurred on the Jemez Pueblo Reservation in Sandoval County, New Mexico.
Emergency Medical Services transported the victim to Sandoval Regional Medical Center, and the victim later was transferred to the University of New Mexico Hospital due to the severity of the injuries.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Sando faces up to 10 years in prison.
The FBI and the Jemez Pueblo Police Department investigated this case. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
Illegal Possession of Drugs Leads to Lengthy Federal Prison Sentences for Three Louisiana MenRead the Press Release
SHREVEPORT, La. - Three Louisiana men have been sentenced for their involvement in the trafficking of dangerous illegal drugs in the Western District of Louisiana, Acting United States Attorney Alexander C. Van Hook announced today.
Ringgold Man to Spend 10 Years in Prison
Xxavier Reed, 28, of Ringgold, was sentenced by United States District Judge Elizabeth E. Foote to 120 months (10 years) in prison followed by 3 years of supervised release for conspiracy to possess with intent to distribute methamphetamine. Reed pleaded guilty on November 14, 2019.
This case was dubbed “Operation Meltdown” and was part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. From at least January 2017 through June 2018, Xxavier Reed and other co-conspirators were distributing methamphetamine and crack cocaine in the Ringgold area. On four separate occasions during this time period, law enforcement agents conducted controlled purchases of crack cocaine and methamphetamine from Xxavier Reed and agents were able to video and audio record each transaction. A lab analysis of the drugs purchased on these four occasions revealed that a total of 11.2 grams of cocaine base and 26.79 grams of methamphetamine were attributable to Reed’s drug trafficking activities. Reed agreed that the scope of his involvement in the conspiracy was between 1,000 and 3,000 kilograms of cocaine base and methamphetamine. Reed is a convicted felon previously convicted of distribution of controlled substances in 2011.
The FBI, ATF and Bienville Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Allison L. Duncan prosecuted the case.
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—riven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Alexandria Man Sentenced for Distribution of Fentanyl
ALEXANDRIA, La. – Demario Marquel Jones, 32, of Alexandria, Louisiana, was sentenced today by United States District Judge Dee D. Drell to 130 months (10 years, 10 months) in prison followed by 3 years of supervised release for distributing fentanyl. Jones pleaded guilty on August 13, 2020.
According to information presented to the court, Jones a/k/a “Yoda Black” was known to be a narcotics dealer in the Alexandria area. On four separate occasions between August and September 2019, law enforcement agents conducted controlled purchases of narcotics from Jones. Agents were able to video and audio record each transaction. A lab analysis of the drugs purchased on these four occasions revealed that a total of 8.29 grams of fentanyl and 6.8 grams of heroin were sold by Jones.
Jones was sentenced as an Armed Career Criminal, having prior felony convictions for possession with intent to distribute a dangerous substance (2010); conspiracy to commit armed robbery (2011); possession with intent to distribute a controlled substance (2018); and obstruction of justice (2018).
The FBI conducted the investigation and Assistant U.S. Attorney Robert F. Moody prosecuted the case.
Drug Trafficker Sentenced to 9+ Years in Prison
ALEXANDRIA, La. - Raymond Dixon, 45, of Alexandria, was sentenced by United States District Judge Dee D. Drell to 110 months (9 years, 2 months) in prison followed by 3 years of supervised release for possession of fentanyl with intent to distribute. Dixon pleaded guilty on August 13, 2020.
Law enforcement agents attempted to stop a vehicle for a traffic violation on January 24, 2019 in Alexandria. Once the agents activated their lights, the driver began to accelerate to a high rate of speed, which led to a short pursuit. The driver lost control of the vehicle and crashed into a yard. Agents then observed the driver, determined to be Raymond Dixon, toss a wrapped up package from the driver’s window into the yard. Law enforcement officers took Dixon into custody and located the wrapped package which he had tossed into the yard. Inside the package was a quart-size freezer bag containing a brownish powder substance, a pill bottle with 29 small individually tied packages of similar brownish powder, and another pill bottle labeled and identified as an antibiotic. The brownish powder substance was taken to the North Louisiana Crime Lab in Alexandria and was confirmed to contain fentanyl and had an aggregate weight of 87.54 grams. Dixon told officers that he thought the substance he was selling was heroin and that he had been selling it for several months.
The FBI and Rapides Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
# # #
Grand Coulee Man Indicted for Setting Fire at Teamsters Building in SpokaneRead the Press Release
Spokane – Today, William D. Hyslop, United States Attorney for the Eastern District of Washington, announced the Indictment of Peter James Yeager, 45, of Grand Coulee, Washington, in connection with arson at the Teamsters Building in Spokane, Washington. The Indictment charges Defendant Yeager with Damage by Fire to a Building Used in Interstate and Foreign Commerce, in violation of 18 U.S.C. § 844(i).
According to state court documents, on or about December 9, 2020, Yeager, drove from his home in Grand Coulee to Spokane with a preconceived plan to burn down the office of the Spokane County Democrats, located at 1912 North Division Street, Suite 100, Spokane, Washington, in the Teamsters Building. Yeager entered the building and told multiple individuals he encountered that he had a “bomb.” Although Yeager had fashioned miscellaneous items in such a way that it would appear he possessed an explosive device, Yeager was determined to not actually possess a completed “bomb.” Yeager did, however, possess gasoline, oil, a roll of toilet paper, and a camping lighter, which he had brought with him. Using paper he had located in the hallway, along with the gasoline, oil, toilet paper, and lighter, Yeager is alleged to have started a fire within the internal office of the Spokane County Democrats, which resulted in damage to multiple offices in the Teamsters Building.
United States Attorney Hyslop said, “Endangering others in this manner and starting this fire must be addressed. Damage by fire to a building used in interstate commerce is a federal crime. If proved, it is punishable by a minimum 5-year term of imprisonment up to a 20-year term of imprisonment; a $250,000 fine; and a 3-year term of court supervision following any term of imprisonment.”
Earl D. Camp, Acting FBI Special Agent in Charge, Seattle Field Office, said, “Operating 24 hours a day, joint terrorism task forces gather the resources, skills, and information of various federal, state, and local law enforcement agencies to safeguard our communities. The Inland Northwest Joint Terrorism Task Force’s swift actions, especially by our partners at Spokane Police Department, averted an already hazardous situation from spiraling dangerously out of control.”
The charge and allegations contained in an Indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Independent charges have also been filed by the Spokane County Prosecuting Attorney.
This case is being investigated by the Federal Bureau of Investigation and the Spokane Police Department, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Explosive Disposal Unit, which is a joint effort of the Spokane Police Department and the Spokane County Sheriff’s Office, and the Spokane Fire Department. This case is being prosecuted by Dominique Juliet Park, an Assistant United States Attorney for the Eastern District of Washington.
ecf_1_-_indictment_yeager.pdfFormer Operator of Waterville Medical Marijuana Business Pleads Guilty to Federal Drug and Firearms OffensesRead the Press Release
BANGOR, Maine: A Benton man pleaded guilty today in federal court to distribution of cocaine and marijuana, possession of marijuana with intent to distribute and possession of firearms by an unlawful user of controlled substances, U.S. Attorney Halsey B. Frank announced.
According to court records, on January 29, 2020, Daniel Hall, 32, distributed cocaine and marijuana to a confidential informant at Green Thumb Organics (GTO), Hall’s Waterville medical marijuana store. The informant did not have a medical marijuana patient card.
On February 19, 2020, investigators executed federal search warrants at GTO and Hall’s residence in Benton. At GTO, agents seized approximately three pounds of processed marijuana and “edible” marijuana items that in total weighed less than 50 kilograms. Agents also seized records, approximately $16,000 in cash proceeds, a video surveillance system and items of paraphernalia. At Hall’s residence, agents seized personal use quantities of drugs, drug paraphernalia, a handgun, two shotguns and ammunition.
Hall faces up to 20 years in prison, between three years and life on supervised release and a $1 million fine on the drug distribution charge. He faces up to five years imprisonment, two years of supervised release and a $250,000 fine on the drug possession charge. He faces up to 10 years imprisonment, three years of supervised release and a $250,000 fine on the firearms charge. 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 Bureau of Alcohol, Tobacco, Firearms and Explosives; the Waterville Police Department and the Somerset County Sheriff’s Office investigated the case.
Former Chairman of Massachusetts Latin Kings Crown Council Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former member of the Boston-based Devon Street Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.
Angel Rodriguez, a/k/a “King Ace,” 29, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for April 15, 2021.
Named for its origin on Devon Street in Boston, the Devon Street Kings or D5K Chapter of the Latin Kings, included approximately a dozen members. The Devon Street Kings, in turn, reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state. During the investigation, various meetings were covertly recorded where members of the Devon Street Kings discussed the business of the racketeering enterprise.
Evidence developed during the investigation proved that Rodriguez conspired with other members and leaders of the Latin Kings to distribute controlled substances, including a video depicting Rodriguez bagging up crack cocaine for distribution. In December 2019, Rodriguez served as Chairman of the Crown Council for the D5K Chapter. The Crown Council is a body that sits independently of the leadership and provides guidance to the leadership team and resolves disputes that arise.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Angel Rodriguez is the 28th defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Boston Police Commissioner William Gross made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Grand Jury Indicts 11 in Heroin Distribution ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On August 4, 2020 a federal grand jury in the Eastern District of Tennessee returned a 12-count indictment against the following individuals for their roles in the distribution of heroin:
Jonathan Bryant Taylor, also known as “Marquis”, 45, of Charlotte, North Carolina;
Kendall Pitts, also known as “Face”, 44, of Raleigh, North Carolina;
Rodney Jenkins, also known as “Unk”, 54, of Brooklyn, New York;
Ricky Allen Overbay, 59, of Kingsport, Tennessee;
Angela Beth Bernard, 37, of Kingsport, Tennessee;
Tessa Rae Hines, 39, of Kingsport, Tennessee;
Cierra Brionna Long, 25, of Kingsport, Tennessee;
Bethany Kay Childress, 51, of Kingsport, Tennessee;
Alexander Shamell Powell, also known as “Big Mike”, 43, of Kingsport, Tennessee;
Clarence L. Benjamin, also known as “Streets”, 43, of Johnson City, Tennessee;
Kirk Estes, 61, of Kingsport, Tennessee.
The case was unsealed on January 4, 2021 after the final defendant was apprehended. The case has not yet been set for trial. The case will be heard by the Honorable Clifton L. Corker, U.S. District Court Judge.
The indictment, on file with the U.S. District Court, alleges that each of these individuals was involved in a conspiracy to distribute one kilogram or more of heroin in the Eastern District of Tennessee and elsewhere. The indictment also alleges other charges related to the distribution and possession with the intent to distribute heroin. Additionally, Long is charged with distributing a quantity fentanyl; Benjamin is charged with possessing with the intent to distribute 50 grams or more of methamphetamine; and Taylor and Benjamin were also each charged with possession of a firearm in furtherance of a drug trafficking crime.
If convicted of the heroin conspiracy charge, each faces a minimum mandatory term of imprisonment of at least 10 years and up to life, at least five years of supervised release, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment. The punishment for the firearm charges returned against Taylor and Benjamin is a minimum mandatory term of at least five years and up to life in prison, which must be served consecutively to any other prison term imposed, up to five years supervised release, a fine of up to $250,000, and a $100 special assessment.
Law enforcement partners have established task forces aimed at combating an increase of heroin overdoses in and around Kingsport, Tennessee. This operation targeted a network of individuals believed to be responsible for bringing heroin into the area from out-of-state sources of supply, and then distributing it in the Tri-Cities area. The on-going investigation is the product of a partnership between Sullivan County Sheriff’s Department, Kingsport Police Department, Second Judicial Drug Task Force, Tennessee Bureau of Investigation, Tennessee National Guard Counter-Drug Task Force, Tennessee Highway Patrol, Sullivan County District Attorney’s Office, Appalachia High Intensity Drug Trafficking Areas Task Force (AHIDTA), United States Marshal Service, Homeland Security Investigations, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Robert Reeves and J. Christian Lampe will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
The effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at OCDETF.
###
Fond Du Lac Psychiatrist and Nurse Indicted for Unlawful Distribution of Controlled SubstancesRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 5, 2021, a federal grand jury indicted John D. Whelan (age: 74), a psychiatrist, and Tina Montezon (age: 58), a licensed nurse, both of Fond du Lac, Wisconsin, for conspiring to distribute controlled substances, including Buprenorphine, Ritalin, Xanax, and Adderall outside the course of a professional medical practice and not for a legitimate medical purpose, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C) and 846.
The indictment also charges Whelan and Montezon with maintaining a drug-involved premises, in violation of 21 U.S.C. § 856(a)(1), and making false statements to federal agents, in violation of 18 U.S.C. § 1001. If convicted, Whelan and Montezon face a maximum sentence of twenty years in prison, up to three years of supervised release, up to a $1,000,000 fine, and a $100 Special Assessment.
According to the indictment, defendants prescribed controlled substances outside the course of professional medical practice from a residence located on Clinton Street in Fond du Lac, Wisconsin. Defendants gave those prescriptions from the residence on Saturdays in exchange for $200 to $300 per prescription.
“The Justice Department will hold accountable medical professionals who abuse their prescribing privileges for personal gain,” stated United States Attorney Krueger.
“This indictment demonstrates the value of federal law enforcement working closely with state/local law enforcement and prosecutors,” said Drug Enforcement Administration (DEA) Chicago Division Special Agent in Charge Robert J. Bell. “DEA and our partners continue to work in harmony to improve public health and safety, while holding rogue practitioners and medical professionals accountable for the diversion of controlled substances.”
The Drug Enforcement Administration and the Lake Winnebago Area Metropolitan Enforcement Group investigated the case, which Assistant United States Attorneys Julie F. Stewart and Kevin Knight will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt
# # #
For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Ex-Labor Union President Sentenced to 12 Years in Prison for Embezzling Union Health Plan Funds, Lying to Federal OfficialsRead the Press Release
LOS ANGELES – The former president of a Colton-based labor union was sentenced today to 144 months in federal prison for stealing nearly $800,000 from the union’s health plan trust fund, which he used to pay for personal expenses including legal bills and a car loan for his son’s sports car.
John S. Romero, 74, of Loma Linda, was sentenced by United States District Judge Virginia A. Phillips, who scheduled an April 5 hearing to determine the amount of restitution Romero owes to his victims.
At the conclusion of a five-day trial in February, a jury found Romero guilty of one count of conspiracy, 12 counts of theft in connection with health care, and one count of making a false statement to a government agency.
Romero appointed himself president of United Industrial Services Workers of America (UISWA) and trustee of the UISWA health plan trust fund. Money paid into the fund was supposed to be used exclusively for health care benefits of its participants. Instead, Romero stole the union’s health funds for the benefit of himself and his immediate family.
In furtherance of his scheme, Romero appointed a sham trustee who had no prior experience with unions. He also actively misled the third-party administrators of the health plan into making improper payments from the trust fund.
From 2008 to 2014, Romero embezzled health plan funds to pay a $110,000 personal civil judgment against himself and his son, John J. Romero, 55, also of Loma Linda. He also embezzled $40,000 to pay criminal defense lawyers who represented Romero in a separate case. Romero funneled more than $310,000 to himself by disguising the funds as rent payments on two properties he owned and held under a shell company.
In addition, he stole more than $300,000 in union health plan money to make “salary” payments to his family, even though none of his family members ever worked for the plan. He also used plan funds to pay off a $25,000 loan on his son’s Ford Mustang Shelby GT500 sports car.
Romero also filed a false financial report with the U.S. Department of Labor in which he concealed the existence of more than $100,000 in union receipts and disbursements that Romero held in a secret bank account and from which he made regular payments to his mistress.
Romero advanced his scheme by appointing his son as the secretary and treasurer of the union. He later appointed his ex-wife, Evelyn Romero, 71, as the UISWA president and trustee in 2010, shortly before Romero began serving a two-year federal prison sentence for making false statements to federal officials while he was president of a different labor union. Romero’s son, ex-wife, and daughter, Danae Romero, 42, of Loma Linda, pleaded guilty to criminal charges in this case. Evelyn and Danae Romero each were sentenced to two years’ probation in this case. John J. Romero was sentenced to time served in prison, plus three years of supervised release.
At a September 9 hearing, Judge Phillips ordered this case’s other defendants to pay restitution in the following amounts: Evelyn Romero – $316,502; John J. Romero – $273,350; and Danae Romero – $200,552.
“To execute this scheme, (John S. Romero) manipulated others, including his own family members,” prosecutors wrote in their sentencing memorandum. “He employed sophisticated means in furtherance of the scheme, including by diverting trust money through a Nevada shell company to hide his theft. He lied to brokers and administrators. And he bullied and pressured those around him to get his way, thereby intimidating and abusing those who trusted him most.”
This case was investigated by the U.S. Department of Labor, Office of Inspector General; the U.S. Department of Labor, Employee Benefits Security Administration; and the U.S. Department of Labor, Office of Labor Management Standards.
This matter was prosecuted by Assistant United States Attorneys Susan S. Har and Aaron B. Frumkin of the General Crimes Section.
Eastern Oregon Medical Practice Employee Sentenced to Federal Prison for Tax Crimes, Bank FraudRead the Press Release
PORTLAND, Ore.—Anndrea D. Jacobs, 49, the former office manager and bookkeeper for a La Grande, Oregon medical practice was sentenced to federal prison today for defrauding two separate employers and filing false tax returns, announced U.S. Attorney Billy J. Williams.
Jacobs, a resident of La Grande, was sentenced to four years in federal prison and five years’ supervised release after previously pleading guilty to filing a false personal income tax return, falsely impersonating an IRS employee, aggravated identity theft, and bank fraud.
According to court documents, beginning on or about January 2011 and continuing until her termination in December 2015, Jacobs used her position and access to a medical practice’s finances to steal money from the practice by, among other means, writing business checks to herself or for her own benefit. Jacobs used the stolen funds to make payments on personal credit cards and pay other personal expenses unrelated to the medical practice.
In an attempt to hide her illicit actions, Jacobs prepared and maintained false business financial records, overstating expenses and estimated tax payments. Further, without the knowledge or consent of the medical practice owner, she opened a business bank account in his name; deposited a business check payable to the Oregon Department of Revenue into her own personal account; gave the practice owner falsified property tax statements with total due balances of zero; and convinced the practice owner to grant her limited power of attorney to handle the practice’s pending IRS tax-collection action.
In perhaps her most brazen attempt to conceal her embezzlement activity, Jacobs created a fictitious identity as an IRS Taxpayer Advocate named “Linda Gibson”; established a phone number and voicemail account for the fictitious identity; and purported to assist the medical practice owner with his IRS tax collection issues while purporting to be “Linda Gibson.”
On September 12, 2018, a federal grand jury in Portland returned a 15-count indictment charging Jacobs with wire fraud, filing false tax returns, aiding or assisting the preparation of false tax returns, falsely impersonating an employee of the U.S., and aggravated identity theft. On June 5, 2020, Jacobs’ pre-trial release was revoked for committing bank fraud while embezzling from a second employer: a dental practice in Hood River. On June 9, 2020, Jacobs was indicted a second time for the new scheme.
During sentencing, U.S. District Court Chief Judge Marco A. Hernandez ordered Jacobs to pay more than $1.2 million in restitution to two former employers, Wells Fargo Bank, and the IRS.
The cases were investigated by IRS-Criminal Investigation, the FBI, and the U.S. Treasury Inspector General for Tax Administration (TIGTA). It was prosecuted by Assistant U.S. Attorney Ryan Bounds.
Dominican Man Indicted on Fentanyl Trafficking ChargeRead the Press Release
BOSTON – A Dominican national was indicted by a federal grand jury today in connection with drug trafficking activities involving fentanyl.
Angel Aybar Carmona, 25, was indicted on one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl. Carmona was previously charged by criminal complaint and has been in custody since his arrest on Dec. 8, 2020.
As alleged in charging documents, Carmona provided a sample of fentanyl along with his phone number to an undercover law enforcement officer on Dec. 2, 2020. In subsequent text message conversations with Carmona, the undercover officer arranged to purchase 120 grams of fentanyl on Dec. 8, 2020 inside a store in Lawrence. After completing the sale, Carmona was arrested.
The charge of distribution and possession with intent to distribute 40 grams or more of fentanyl carries a mandatory minimum sentence of five years and up to 40 years in prison, a least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance was provided by the Lawrence Police Department. Assistant U.S. Attorney Stephen Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Declaración sobre la Investigación Federal de Derechos Civiles sobre el tiroteo a Jacob BlakeRead the Press Release
Eric S. Dreiband, Secretario Adjunto de Justicia para la División de Derechos Civiles del Departamento de Justicia y Matthew D. Krueger, Fiscal de EE.UU. del Distrito Este de Wisconsin publicó la siguiente declaración relacionada al tiroteo a Jacob Blake el 23 de agosto de 2020:
“Como se anunció previamente, una investigación de Derechos Civiles federales sobre el tiroteo a Jacob Blake está en curso. La investigación está siendo llevada a cabo por el Buró Federal de Investigación, en cooperación con la División de Investigación Criminal de Wisconsin. La investigación federal está siendo supervisado por el Buró Federal de Investigación, en cooperación con la División de Investigación Criminal de Wisconsin y la División de Derechos Civiles del Departamento de Justicia de EE.UU. y que tomará una decisión de cargo autónoma. Las autoridades federales están comprometidas a investigar esta materia tan minuciosamente y eficientemente como sea posible.
También en curso están investigaciones federales sobre incendios provocados, disturbios y otros crímenes violentos que ocurrieron en Kenosha en agosto de 2020. El Fiscal de EE.UU. Krueger y el Fiscal General Adjunto Dreiband exhortó a todos a actuar pacíficamente y cumplir con la ley”.
Cuban Credit Card Skimming Crew Sentenced to PrisonRead the Press Release
NORFOLK, Va. – Six Cuban nationals have been sentenced, including the leader of the crew, for conspiracy to commit bank fraud and aggravated identity theft.
According to court documents, the six conspirators placed skimming devices on gas pumps located in Northampton County within the Eastern District of Virginia. The skimming devices were capable of recording the credit and debit card numbers, along with their PINs, of the customers that used their cards at the gas pumps. In April and May 2018, using the stolen card information, the defendants traveled between Harris Teeter store locations, among other destinations, to withdraw money from the victims’ bank accounts and purchase prepaid gift cards.
In addition, many of the conspirators had significant criminal histories involving the same conduct and were known to travel the country perpetrating this scheme. The leader of the crew, Yasmani Granja Quijada, was found to be trading over 9,800 additional stolen credit card numbers using his email account over the past few years. The crew was attributed with aggregate losses of over $5,000,000 over several years. The FBI and U.S. Marshals Service seized numerous vehicles and other items that were purchased by the defendants with funds stolen through credit cards, including a 2006 Triton 2895CC Boat and trailer, a 2017 Ford F250 Super Cab truck, a 2016 Cruise Radiance Travel Trailer RV, a 2017 Ford Escape SUV, a 2017 Maserati Ghibli, and a 2013 Porsche Panamera. Several other conspirators remain at large and are believed to be living in Mexico.
Below is a table that lists the name, age, hometown, respective charge(s) for which each defendant was convicted, and the sentence he received:
Name (Age)
Hometown
Charge(s)
Sentence (Date)
Yasmani Granja Quijada (33)
South Miami, FL
Conspiracy to Commit Bank Fraud, Aggravated ID Theft
120 months (01/04/2021)
Luis Miguel Fernandez Cardente (29)
Miami, FL
Conspiracy to Commit Bank Fraud, Aggravated ID Theft
64 months (12/14/2020)
Jorge Bello Fuentes (31)
Homestead, FL
Conspiracy to Commit Bank Fraud, Aggravated ID Theft
60 months (07/17/2020)
Guillermo Bello Fuentes (34)
Miami, FL
Conspiracy to Commit Bank Fraud, Aggravated ID Theft
47 months (08/28/2020)
Pedro Emilio Duran (40)
Miami, FL
Conspiracy to Commit Bank Fraud
30 months (07/31/2020)
Yariel Monsibaez Ruiz (29)
Hialeah, FL
Conspiracy to Commit Bank Fraud
19 months (08/28/2020)
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David L. Doughty, Jr., Northampton County Sheriff; and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.Assistant U.S. Attorney Elizabeth M. Yusi 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. 2:19-cr-109.
Convicted Felon Who Possessed a Gun After His Release from Federal Prison Sent Back to Prison for over Three YearsRead the Press Release
A man who possessed a firearm as a felon was sentenced today to more than three years in federal prison.
Rhamond Bolden, age 27, from Cedar Rapids, Iowa, received the prison term after a July 8, 2020 guilty plea to being a felon in possession of a firearm.
Evidence in the case showed that in 2013, Bolden was convicted of being a drug user in possession of a firearm in federal court in Cedar Rapids. The court initially sentenced him to 16 months in prison, but after multiple violations of his supervised release, Bolden ultimately served 30 months in prison. He was released in 2017. During a traffic stop in early 2020, law enforcements officers found him in possession of a loaded handgun.
Bolden was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Bolden was sentenced to 37 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Federal Bureau of Investigation and the Cedar Rapids Police Department. For more information about Project Guardian, please see /media/1122011/dl?inline.
Bolden is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-0035.
Follow us on Twitter @USAO_NDIA.
Colorado Man Sentenced for Distributing MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Francisco Herrera, 37, of Sterling, Colorado, was sentenced on January 4, 2021, in federal court in Omaha, Nebraska, for possession with intent to distribute 500 grams or more of methamphetamine. Senior United States District Judge Joseph F. Bataillon sentenced Herrera to 262 months’ imprisonment. Herrera has at least two prior drug convictions, which classified him under the U.S. Sentencing Guidelines as a career offender. This enhanced his sentencing guideline range to 262-327 months. His sentencing range without the enhancement would have been 151-188 months. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release.
On May 10, 2019, local law enforcement executed a search warrant on a residence in Sidney, Nebraska. During the execution of that search warrant, Herrera’s vehicle was located in the driveway. Law enforcement obtained a search warrant for his vehicle, where approximately ten pounds of methamphetamine were seized.
This case was investigated by the Sidney Police Department.
Charleston Woman Pleads Guilty to Wire Fraud ConspiracyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Lois Brotherton, 65, of Charleston, pled guilty to conspiracy to commit wire fraud. She faces up to 20 years in prison, a $250,000 fine and three years of supervised release when she is sentenced on April 7, 2021. Brotherton has also agreed to pay restitution in the amount of $48,509.
“Brotherton is a fraudster that carried out this scheme for personal enrichment,” said United States Attorney Mike Stuart. “Small businesses are the backbone of our economy. We take these cases very seriously and do all that we can to bring justice to the victims. I commend our law enforcement partners for their excellent work in this case.”
Brotherton once provided bookkeeping and accounting services to a Kanawha County non-profit organization that formally dissolved in 2014. In 2019, Lois Brotherton asked a co-conspirator to write her checks from the non-profit’s bank account. Brotherton knew she was not entitled to those funds and that there were no funds available for her use. The co-conspirator agreed to do so. Brotherton would receive checks as though the non-profit organization had paid her money and would then electronically deposit the money into her personal account. To cover the wire fraud, the co-conspirator would electronically transfer money from three different companies for which the co-defendant provided accounting services, and without the companies knowledge, consent, or permission. As a result of this fraud scheme, Lois Brotherton defrauded the companies of at least $48,509.
The Federal Bureau of Investigation (FBI), the Internal Revenue Service-Criminal Investigations (IRS-CI), the United States Postal Inspection Service (USPIS) and the West Virginia State Tax Department-Criminal Investigation Division conducted the investigation.
Senior United States District Judge John T. Copenhaver, Jr. presided over the guilty plea hearing. United States Attorney Mike Stuart and Assistant United States Attorneys Erik Goes and Katie Robeson are handling the prosecution.
Please note: In a related matter, Misty Brotherton-Tanner, 40, was charged in an 18-count indictment with wire fraud, aggravated identity theft, unlawful monetary transactions and making false statements. An indictment is merely an allegation and Misty Brotherton Tanner is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00147.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Charleston Man Pleads Guilty to Dealing MethamphetamineRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Jawhar Baruti Jones, 41, of Charleston, pled guilty to distribution of methamphetamine.
“Jones distributed 161 grams of 98% pure meth in Charleston,” said United States Attorney Mike Stuart. “Great job by DEA and the West Virginia State Police in getting him off of our streets. Charleston families are no doubt safer.”
Jones admitted that he sold methamphetamine to a confidential informant on three separate occasions in May of 2017. All the transactions occurred in Charleston. In total, Jones distributed approximately 161 grams of 98% pure methamphetamine during the investigation. A search warrant was executed at Jones’ residence shortly after the third transaction, where several bills of United States currency were found which matched the serial numbers of those utilized by the confidential informant to purchase methamphetamine from the defendant.
Jones faces up to life in prison when sentenced on April 6, 2021.
The Drug Enforcement Administration (DEA) conducted the investigation with the assistance of the West Virginia State Police. Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00070.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Camden County Man Admits Trafficking in Oxycodone PillsRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man today admitted conspiring to distribute and selling oxycodone pills in connection with his role in a drug trafficking ring, U.S. Attorney Craig Carpenito announced.
Anwar Abdulah, 32, of Pennsauken, pleaded guilty today by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute and possess with intent to distribute oxycodone and distributing and possessing with intent to distribute quantities of oxycodone.
According to documents filed in this case and statements made in court:
Abdullah admitted that on multiple occasions from January 2020 to March 10, 2020, he obtained oxycodone from Erick Bell in and around Camden and resold that oxycodone. For example, Abdullah admitted that, on Feb. 21, 2020, he provided $1,440 to Bell so that Bell could purchase 120 15 mg oxycodone pills from another individual. Bell then provided Abdullah with the oxycodone pills that Bell bought using Abdullah’s money, and Abdullah resold the pills to others. Oxycodone is a Schedule II controlled substance, meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
Both charges carry a maximum potential punishment of 20 years in prison and a fine of $1 million, or twice the gross loss or gain caused by the offenses, whichever is greater. Sentencing is scheduled for May 10, 2021.
Nine other defendants – Bell; Rocco DePoder, 67, Marcus Rushworth, 47, and Kenneth Rushworth, 59, all of Gloucester City; Alfred Kee, Jr., 52, of Blackwood, New Jersey; Wayne Muse, 74, of Lindenwold, New Jersey; Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood, New Jersey; and Steven Walker, 47, and Alexander Siaca, 55, both of Camden – previously pleaded guilty before Judge Bumb to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are all awaiting sentencing.
U.S. Attorney Carpenito credited special agents of FBI, Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; the U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; the New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Joseph Wysocki; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s guilty plea.
He also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the U.S. Attorney’s Office’s Camden Office and Sara F. Merin of the Newark Office.
Bulldog Street Gang Member Involved in Hit-and-Run Sentenced to 4 Years in Prison for Illegally Possessing FirearmRead the Press Release
FRESNO, Calif. — Mario Alberto Rangel, 29, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to four years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 22, 2019, law enforcement officers attempted to stop Rangel for a traffic violation, but he failed to yield. Moments later, Rangel crashed into another car, then exited his car and fled the scene on foot. Fresno Police officers eventually caught up to him and arrested him. The car that he abandoned was searched, and a loaded shotgun was found in the back seat. Rangel is prohibited from possessing firearms because of his prior criminal record, including a 2018 conviction for assault with a firearm on a person.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Bobby L. Christine named acting U.S. Attorney for Northern District of GeorgiaRead the Press Release
ATLANTA – Bobby L. Christine has been named Acting U.S. Attorney for the Northern District of Georgia. U.S. Attorney Christine is currently the U.S. Attorney for the Southern District of Georgia, and will remain in that position while assuming the additional role in the Northern District.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Bobby L. Christine named Acting U.S. Attorney for Northern District of GeorgiaRead the Press Release
Bobby L. Christine has been named Acting U.S. Attorney for the Northern District of Georgia. U.S. Attorney Christine is currently the U.S. Attorney for the Southern District of Georgia, and will remain in that position while assuming the additional role in the Northern District.
U.S. Attorney Bobby L. ChristineBath Man Arrested, Charged with Receipt and Distribution of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Charles Augrom, III, 34, of Bath, NY, was arrested and charged by criminal complaint with receipt and distribution of child pornography. The charges carry a minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the criminal complaint, in July 2020 an undercover law enforcement officer was investigating individuals who use Peer to Peer file sharing applications to share child pornography over the internet. During the undercover session, the officer downloaded numerous pictures and videos of child pornography that traced back to an IP address belonging to the defendant. Some of the images and videos included children younger than 12 years old engaged in sexual conduct with adults, as well as depictions of violence. On December 10, 2020, investigators executed a search warrant at Augrom’s William Street residence and seized a cellular telephone. The SD card from the phone contained approximately 250 video and image files depicting child pornography. The defendant is a Level III register sex offender on the New York State Sex Offender Registry, following two prior New York State child pornography convictions.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Mark J. Pedersen and is being held pending a detention hearing scheduled for January 11, 2021.
The criminal complaint is the result of an investigation by the Corning Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Baltimore Marijuana Dealer Pleads Guilty to Federal Charges of Discharging a Firearm in Relation to a Drug Trafficking CrimeRead the Press Release
Baltimore, Maryland – Moses Lewis, age 36, of Baltimore, Maryland, pleaded guilty today to a federal charge of discharging a firearm in relation to a drug trafficking crime, resulting in the death of the victim.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Federal, state, and local law enforcement are working together to target leaders and key members of violent gangs operating in Baltimore City,” said U.S. Attorney Robert K. Hur. “We will not tolerate armed drug traffickers peddling death through drugs and gun violence in our neighborhoods. Moses Lewis now faces at least 20 years in federal prison, where there is no parole—ever. Please put down the gun. You’ll save a life, maybe even your own.”
According to his guilty plea, from at least November 2018 through February 22, 2019, Lewis was part of a conspiracy that regularly sold marijuana in the area of Wylie Avenue and Park Heights Avenue in Baltimore. Lewis and others who participated in the conspiracy sold marijuana in street-level quantities to customers. Lewis and the other members of the conspiracy had social and/or family ties in the area. Individuals who were not from the area were not permitted to sell marijuana in the area. Members of the conspiracy frequently carried firearms to protect themselves from others who may want to rob them of drugs or their drug proceeds.
As detailed in the plea agreement, on February 22, 2019, Lewis and other co-conspirators were standing in the area of Wylie Avenue and Park Heights Avenue and selling marijuana. Lewis and “Co-conspirator 1” were each armed with handguns. While Lewis was standing outside, his attention was drawn to a vehicle that was repeatedly driving around the area. Co-conspirator 1 recognized the driver of the vehicle, “RH,” as a drug trafficker from the area who was not a member of the marijuana conspiracy and noticed that RH was accompanied by several unknown persons. Based on RH’s erratic driving behavior and his presence in the area with no discernable purpose, Lewis and Co-conspirator 1 suspected that RH and his associates were intending to rob them of drugs and drug proceeds, and/or to physically harm them.
RH returned to the area, parking the vehicle he was operating outside a store where Lewis and Co-conspirator 1 regularly sold marijuana. When RH stepped out of the vehicle, Lewis called RH over to speak to him. Lewis and Co-conspirator 1 saw that RH was armed with a firearm and Co-conspirator 1 attempted to disarm RH, ultimately disarming him after a brief struggle.
During the struggle, “AS” and Deondre Johnson, the two occupants of RH’s vehicle, got out of the vehicle and began running away. RH broke away from Lewis and Co-conspirator 1 and ran away with AS and Johnson, with Lewis and Co-conspirator 1 in pursuit. Both Lewis and Co-conspirator 1 repeatedly fired their handguns at RH, AS, and Johnson. Johnson was struck several times by the gunfire and died. Lewis and Co-conspirator 1 fled from the scene, but witnesses identified Lewis and Co-conspirator 1 and their roles in the killing of Johnson.
Lewis and the government have agreed that, if the Court accepts the plea agreement, Lewis will be sentenced to at least 20 years, but no more than 25 years, in federal prison. U.S. District Judge George L. Russell has scheduled sentencing for March 25, 2021, at 10:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew Della Betta and Michael Goldsticker, who are prosecuting the case.
# # #
Attorney General William P. Barr and U.S. Attorney D. Michael Dunavant Announce Final Results of Operation LegendRead the Press Release
Memphis, TN – On December 23, 2020, Attorney General William P. Barr announced the results of Operation LeGend, which was first launched in Kansas City, Missouri, on July 8, 2020, and then expanded to Chicago and Albuquerque, New Mexico, on July 22, 2020; to Cleveland, Ohio, Detroit, Michigan, and Milwaukee, Wisconsin, on July 29, 2020; to St. Louis, Missouri, and Memphis, Tennessee, on August 6, 2020; and to Indianapolis, Indiana, on August 14, 2020.
"Operation Legend removed violent criminals, domestic abusers, carjackers and drug traffickers from nine cities which were experiencing stubbornly high crime and took illegal firearms, illegal narcotics and illicit monies off the streets. By most standards, many would consider these results as a resounding success—amid a global pandemic, the results are extraordinary. I commend our federal law enforcement and prosecutors for seamlessly executing this operation in partnership with state and local law enforcement," said Attorney General Barr. "When we launched Operation Legend, our goal was to disrupt and reduce violent crime, hold violent offenders accountable and give these communities the safety they deserve in memory of LeGend Taliferro, whose young life was claimed by violent crime, undoubtedly, we achieved it."
Since Operation LeGend’s launch on July 8, 2020, over 6,000 arrests – including approximately 467 for homicide – were made; more than 2600 firearms were seized; and more than 32 kilos of heroin, more than 17 kilos of fentanyl, more than 300 kilos of methamphetamine, more than 135 kilos of cocaine, and more than $11 million in drug and other illicit proceeds were seized.
Of the more than 6,000 individuals arrested, approximately 1,500 have been charged with federal offenses. Approximately 815 of those defendants have been charged with firearms offenses, while approximately 566 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses.
The Attorney General launched the operation as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. Operation LeGend is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
The Office of Community Oriented Policing Services (COPS Office) provided a total of $60 million to fund 290 officers as part of Operation LeGend and related efforts. Additionally, the Office of Justice Programs (OJP) awarded nearly $9 million in grant funding to support Operation LeGend.
Since the official launch of Operation LeGend here in Memphis on August 6, 2020, a total of 266 arrests were made, and 124 defendants were charged with federal offenses: 53 for drug crimes; 46 for gun crimes; and 24 for other violent crimes such as carjacking, business robbery, and using a firearm during a crime of violence. A total of 210 firearms were seized by federal agencies and federal task forces; $670,270 in criminal proceeds were seized; and a large quantity of illegal drugs were removed from our streets, as follows:
31,063 grams of methamphetamine
1,572 grams of cocaine
4,665 grams of fentanyl
5,021 grams of heroin
9,205 grams of marijuana
2,822 pills of various controlled substances, primarily opioids
The following local agencies in Memphis received federal grant funding from the Department of Justice in support of Operation Legend and related efforts:
City of Memphis Police Department – $9,823,624 (COPS Hiring Program funds, to hire 50 new officers)
Shelby County Sheriff’s Office - $1,628,571 (Operation Relentless Pursuit/Operation LeGend)
Shelby County District Attorney General’s Office - $398,864 (Project Guardian)
U.S. Attorney D. Michael Dunavant said, "These are outstanding national and local results that have undoubtedly saved lives. Although this marks the end of the formal DOJ Operation LeGend initiative, we will continue our targeted enforcement actions and coordination in the future with the federal agents permanently reassigned to Memphis, as well as our LeGend Task Force model. Despite rising violent crime rates in 2020, as a result of Operation LeGend, drug traffickers, trigger-pullers, gang members, and violent offenders are going to prison, law enforcement is energized, and the public is better protected. I am proud of our federal, state, and local law enforcement agencies in Memphis for their urgent and relentless efforts in this Operation, and I am grateful for their active participation and sustained partnerships during a most unusual and challenging time in our nation’s history."
Breakdown of Operation Legend charges in other cities:
Kansas City, MO.
• 196 defendants have been charged with federal crimes outlined below.
• 75 defendants have been charged with narcotics-related offenses;
• 107 defendants have been charged with firearms-related offenses; and
• 14 defendants have been charged with other violent crimes.
Chicago, Ill.
176 defendants have been charged with federal crimes outlined below.
• 40 defendants have been charged with narcotics-related offenses;
• 130 defendants have been charged with firearms-related offenses; and
• Six defendants have been charged with other violent crimes.
Albuquerque, NM.
167 defendants have been charged with federal crimes outlined below.
• 60 defendants have been charged with narcotics-related offenses;
• 85 defendants have been charged with firearms-related offenses; and
• 22 defendants have been charged with other violent crimes.
Cleveland, OH.
119 defendants have been charged with federal crimes outlined below.
• 60 defendants have been charged with narcotics-related offenses;
• 55 defendants have been charged with firearms-related offenses; and
• Four defendants have been charged with other violent crimes.
Detroit, MI.
100 defendants have been charged with federal offenses outlined below.
• 33 defendants have been charged with narcotics-related offenses;
• 64 defendants have been charged with firearms-related offenses; and
• Three defendants have been charged with other violent crimes.
Milwaukee, WI.
74 defendants have been charged with federal crimes outlined below.
• 34 defendants have been charged with firearm related offenses;
• 32 defendants have been charged with narcotic related offenses;
• Eight defendants have been charged with other violent crimes.
St. Louis, MO.
450 defendants have been charged with federal crimes outlined below.
• 193 defendants have been charged with narcotics-related offenses;
• 231 defendants have been charged with firearms-related offenses; and
• 26 defendants have been charged with other violent crimes.
Indianapolis, IN.
94 defendants have been charged with federal crimes outlined below.
• 18 defendants have been charged with narcotics-related offenses;
• 64 defendants have been charged with firearms-related offenses; and
• 12 defendants have been charged with other violent crimes.
###
4 January 2021
Virginia Tax Preparer Sentenced to More Than Two Years in Prison for Preparing False ReturnsRead the Press Release
A Newport News, Virginia, tax return preparer was sentenced to 27 months in prison for preparing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia.
According to court documents and statements made in court, Angela Harper owned At Ease Tax Services, a tax preparation business that she operated in her home and hotel rooms in the Newport News area. Between 2014 and 2018, Harper prepared tax returns that claimed fraudulent credits and deductions in an effort to inflate her clients’ refunds. Harper did not sign the returns in order to make it appear that the returns were self-prepared by her clients. She also did not review the completed returns with her clients, nor did she provide copies of the returns even when the clients specifically requested them. In total, Harper filed over 400 false tax returns and caused a tax loss of over $700,000 to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Terwilliger commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Francine Davis and Assistant Chief Michael Boteler of the Tax Division, and Assistant U.S. Attorney Brian Samuels of the Eastern District of Virginia, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Upshur County man admits to methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Rodney Allen Rowan, of Buckhannon, West Virginia, has admitted to a methamphetamine charge, U.S. Attorney Bill Powell announced.
Rowan, 25, pled guilty to one count of “Possession with Intent to Distribute at Least 50 Grams of Methamphetamine.” Rowan admitted to having more than 50 grams of methamphetamine in November 2019 in Upshur County.
Rowan faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, West Virginia State Police, and the Upshur County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
United States Files Civil Fraud Suit Against Three Individuals and Multiple Real Estate Companies Alleging Mortgage Fraud SchemeRead the Press Release
The United States has filed a civil complaint in federal court in Brooklyn seeking damages and penalties against three individuals and multiple companies alleged to have engaged in a wide-ranging mortgage fraud scheme to defraud the government. The complaint, unsealed this afternoon by United States District Judge Margo K. Brodie, alleges that Iskyo Aronov, Ron Borovinsky, Michael Konstantinovskiy, and companies that they owned or controlled, engaged in fraudulent short sales of residential properties insured by the Federal Housing Administration (FHA) of the United States Department of Housing and Urban Development (HUD). The suit is brought pursuant to the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Christina Scaringi, Special Agent-in-Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Region (HUD-OIG), and Robert Manchak, Special Agent-in-Charge, Federal Housing Finance Agency, Office of Inspector General, Northeast Region (FHFA-OIG), announced the filing.
Pursuant to HUD’s Pre-Foreclosure Sale Program, qualifying homeowners with defaulted, FHA-insured mortgages may sell their properties in a “short sale” for less than the balance of the mortgage if the sale is for the fair market value of the property. If a homeowner obtains approval for a short sale, the lender releases the mortgage after the short sale and submits an FHA insurance claim to HUD to cover the outstanding mortgage balance net of the short sale proceeds, plus approved costs and interest. HUD, in turn, pays the lender’s claim from federal funds.
Aronov was the founder, Chief Executive Officer and President of defendants My Ideal Property Inc., My Ideal Property Group LLC and MIP Management Inc., and also controlled other affiliated corporate entities that he allegedly established to help him fraudulently acquire residential properties. Borovinsky identified himself as a co-founder with Aronov of My Ideal Property. Konstantinovskiy worked as an agent for My Ideal Property where he allegedly conspired with others to fraudulently obtain properties.
As alleged in the complaint, from at least 2013 through 2016, the defendants defrauded HUD by manipulating the short sale process to acquire residential properties from numerous distressed homeowners for below-fair market value prices in non-arm’s-length transactions. The individual defendants used various corporate entities in furtherance of the fraudulent scheme. In the process, defendants made a host of material misrepresentations in critical transaction documents. As a result, defendants not only acquired the properties for below-fair market value prices, but obtained broker fees in the transactions and induced lenders to release the FHA-insured mortgages at a loss. In turn, HUD paid the lenders’ claims for FHA insurance from federal funds. These payments by HUD were artificially inflated as a result of the defendants’ fraudulent conduct.
“As alleged, these defendants fraudulently obtained homes at depressed prices at the expense of a taxpayer-funded program designed to assist borrowers seeking the American Dream of home ownership,” stated Acting U.S. Attorney Seth DuCharme. “This Office is committed to protecting the integrity of the FHA insurance program from those who try to enrich themselves through predatory mortgage fraud schemes.”
“The defendants allegedly engaged in a scheme of wholesale deception when they provided false, misleading, and incomplete information to lending institutions, homeowners, and the Federal Housing Administration (FHA) causing millions of dollars in damages to the FHA, which typically results in higher premiums being charged to future first-time homeowners. In addition, the artificial devaluation of residential properties will slow the recovery of market values at a time of economic challenge when affordable housing is at a premium,” stated HUD-OIG Special Agent-in-Charge Scaringi.
“The Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) is committed to holding accountable those who waste, steal, or abuse the resources of the Government-Sponsored Enterprises regulated by FHFA. We are proud to have partnered with the U.S. Attorney’s Office for the Eastern District of New York in this case,” stated FHFA-OIG Special Agent-in-Charge Manchak.
The government’s complaint intervenes in a lawsuit originally brought by under the qui tam provisions of the FCA. Under the FCA, private citizens with knowledge of fraud against the government can bring a lawsuit on behalf of the United States and share in the recovery. The act also permits the government to intervene in such actions, as the government has done in this case. The government’s case is being handled by Assistant United States Attorney Michael J. Castiglione, with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell.
The Defendants:
ISKYO ARONOV (also known as “Isaac Aronov”)
Middle Village, New YorkRON BOROVINSKY
Hollis Hills, New YorkMICHAEL KONSTANTIOVSKI
Roslyn Heights, New York175 VERNON AVE. INC.
308 LINDE ST. LLC
725 MANAGEMENT LLC
1021 B HOLDINGS LLC
1083 LAFAYETTE AVE. LLC
1178 GATES AVE. INC.
2320 BAEUMONT AVE UNIT 3D LLC
1S8C HOLDINGS LLC
AG2 EQUITIES, INC.
ARBIE MANAGEMENT INC.
BEDSTUY GROUP LLC
BERT HOLDINGS LLC
BNE MANAGEMENT LLC
ETUY EQUITIES LLC
IA INVESTORS LLC
IJ DEVELOPMENT LLC
LL FUND INC.
LL ORGANIZATION INC.
MI 1 HOLDINGS LLC
MIP MANAGEMENT INC.
MY IDEAL PROPERTY GROUP LLC
MY IDEAL PROPERTY ROCKAWAY BLVD. LLC
NATIONAL HOMEOWNERS ASSISTANCE INC.
PHASE 2 DEVELOPMENT LLC
PIM EQUITIES INC.
SETTLE NY CORP
ZOR EQUITIES LLC
ZT EQUITIES LLC
E.D.N.Y. Docket No. 16-CV-4853 (MKB)
United States Attorney Nick Hanna to Leave Justice Department after Serving as Chief Federal Law Enforcement Officer in L.A. for 3 YearsRead the Press Release
LOS ANGELES – United States Attorney Nick Hanna announced today that he will resign his position as the chief federal prosecutor for the Central District of California. While serving as the top federal law enforcement officer in the Los Angeles-based district for the past three years, Mr. Hanna oversaw approximately 280 Assistant U.S. Attorneys who staff the largest Justice Department office outside of Washington D.C.
Mr. Hanna tendered his resignation to the President and the Acting Attorney General today, and he will conclude his service as United States Attorney on January 8.
“It has been the honor of a lifetime to serve the 20 million people in our district for the last three years,” Hanna said. “I have seen firsthand government at its best, with our talented lawyers and staff working side-by-side with our brave federal, state and local law enforcement partners in pursuit of justice. While we’ve had many significant accomplishments during my tenure, all of the credit for these successes belongs to these hardworking and dedicated professionals.
“The work we have done together has resonated throughout our district, across the nation and around the world. We have worked tirelessly to bring criminals to justice, provide recourse to people whose rights have been violated, and defend the United States and its citizens from adversaries both foreign and domestic. We’ve achieved this despite the challenges of the longest federal government shutdown in history, widespread social unrest, and a pandemic that has upended our lives. Over the past three years, our office has lived up to its proud legacy of pursuing justice without fear or favor, and I am profoundly humbled to have had the opportunity to lead one of the premier U.S. Attorney’s offices in the country.”
Under Mr. Hanna’s leadership, attorneys in the office have brought and litigated some of the most sophisticated and impactful cases in the nation, dozens of attorneys have been hired to bring the office to its maximum staffing level, and relationships with law enforcement partners have been strengthened.
Amid a string of important public corruption cases, federal prosecutors conducted an extensive investigation focusing on a pay-to-play scheme at Los Angeles City Hall, resulting in criminal charges against two former city councilmen, a former deputy mayor, and a billionaire real estate developer, among others.
Fraud prosecutors brought a multi-faceted case against attorney Michael Avenatti, and they worked with lawyers in the office’s Civil Division to negotiate a $3 billion settlement with Wells Fargo to resolve allegations that the bank engaged in fraudulent sales practices for more than a decade.
In response to the nation’s opioid crisis, the office helped stand up an Opioid Overdose Response Team, which targets narcotics traffickers who sell drugs that result in fatal overdoses. This program has resulted in approximately one dozen prosecutions, including the case against West Hollywood resident Ed Buck and those who allegedly provided the drugs that killed rapper Mac Miller.
To combat violent crime, the office brought charges against more than 300 gang members, including alleged narcotics traffickers, gun runners and MS-13 members accused of committing a series of grisly murders.
In the largest asset forfeiture in U.S. history, prosecutors seized more than $1 billion in assets related to the 1MBD Malaysian banking scandal. Prosecutors recently filed criminal charges against the captain of the Conception, a dive boat that burned and sank off the Santa Barbara coast in September 2019, killing 33 passengers and one crew member. And, an Orange County man is pending trial on charges of killing his ex-girlfriend when he allegedly planted a bomb that destroyed an Aliso Viejo day spa. The office also won a guilty verdict at trial against Ali Elmezayen, a Hawthorne man who drowned his two disabled children to fraudulently collect on insurance policies he had taken out on their lives.
On the national security front, under Mr. Hanna’s leadership, the office helped shut down one of the world’s largest dark web marketplaces, convicted at trial a Chinese researcher on economic espionage charges, and indicted a suspected domestic terrorist who allegedly plotted to bomb a political rally at a Long Beach park. Prosecutors also brought charges against a North Korean operative who allegedly committed one of the most sophisticated nation-state cybercrimes in history – the hacking of Sony Pictures Entertainment and other high-profile targets.
During Mr. Hanna’s tenure, the office hired nearly 100 new prosecutors, enhanced its technology and physical space, streamlined internal processes, and continued to invest significant time and effort to deepen relationships with our partners in federal, state and local law enforcement.
Prior to the pandemic’s grip tightening in March 2020, the office increased the number of criminal defendants charged by more than 41 percent compared with 2017 levels. Over the last three years, the office has recovered nearly $4.5 billion in criminal penalties, civil recoveries, forfeited assets, and restitution. Since 2018, the office has returned more than $148 million in restitution to crime victims.
Mr. Hanna was appointed interim United States Attorney in January 2018 by United States Attorney General Jeff Sessions. President Trump later nominated Mr. Hanna to be United States Attorney in February 2018, and he was confirmed by the Senate on April 26, 2018.
While serving as an Assistant United States Attorney in Los Angeles from 1990 to 1994, Mr. Hanna prosecuted major drug trafficking and money laundering organizations, as well as violent and economic crimes. From 1995 to 1998, Mr. Hanna served as an Assistant United States Attorney in San Diego, where he focused on investigating and prosecuting international drug cartels. For almost 20 years, until his appointment as United States Attorney, Mr. Hanna was a partner at the law firm of Gibson, Dunn & Crutcher LLP. Mr. Hanna received his B.A. from the University of California, San Diego, and his J.D., magna cum laude, from Georgetown University.
Once Mr. Hanna’s resignation becomes effective, First Assistant United States Attorney Tracy L. Wilkison will serve as Acting United States Attorney.
The Central District of California is comprised of the counties of Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo. Approximately 20 million people live in the district, making it by far the largest federal district in the nation.
United States Attorney J. Douglas Overbey Announces Management and Supervisory Staff ChangesRead the Press Release
KNOXVILLE, Tenn. – J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee, today announced changes in some of the management and supervisory personnel for the district.
Francis M. (Trey) Hamilton III has been chosen to serve as the First Assistant U.S. Attorney for the district. Hamilton, a native of Nashville, Tenn., joined the office in 2002, as an Assistant U.S. Attorney. He had previously served as a Deputy Chief and Senior Litigation Counsel in the Criminal Division. Over his career, Hamilton has overseen and tried numerous complex prosecutions ranging from corporate fraud to civil rights deprivation. Most recently, Hamilton was awarded the Attorney General’s Claudia J. Flynn Award for Professional Responsibility. Prior to joining the U.S. Attorney’s Office, Hamilton worked for two prominent national law firms where he engaged in complex civil litigation, and before that, he served as law clerk to the Honorable Jerome Turner, United States District Judge for the Western District of Tennessee. Hamilton received his law degree from Washington & Lee University School of Law, where he graduated summa cum laude, was inducted into the Order of the Coif, and served on the Washington & Lee Law Review. He earned his undergraduate degree from Rhodes College, where he graduated magna cum laude and was inducted into Phi Beta Kappa.
Caryn L. Hebets has been chosen to serve as Chief of the Criminal Division. Hebets, a native of Dearborn, Mich., joined the office as an Assistant U.S. Attorney in October 2005. She most recently served as a Deputy Chief of the Criminal Division and as the lead Organized Crime and Drug Enforcement Task Force (OCDETF) attorney for the district. Prior to joining the U.S. Attorney’s Office, Hebets was an Assistant Prosecuting Attorney for Berrien County, Mich., in addition to, working with the FBI. She received her law degree from Wayne State University and her undergraduate degree from the University of Michigan. She is a member of the Michigan bar.
Matthew T. Morris has been chosen to serve as Deputy Criminal Chief for the Knoxville office’s white collar and general crimes unit. He joined the U.S. Attorney’s Office in 1996. Since then, Morris has focused on prosecuting white-collar and child exploitation offenses, including environmental crime, fraud, public corruption, and child pornography. He has served as the U.S. Attorney’s Office’s Senior Litigation Counsel since 2018. Morris has previously headed up the office’s Project Safe Childhood, Environmental Crime, Asset Forfeiture, and Affirmative Civil Enforcement programs. Prior to joining the office, he was an Assistant Regional Counsel for the U.S. Environmental Protection Agency in Atlanta, GA, for five years. Morris earned his law degree in 1990, from the University of Oregon School of Law and his undergraduate degree from Kent State University in 1986.
Tracy Stone has been chosen to serve as Deputy Criminal Chief for the Knoxville office’s violent crimes and drug trafficking unit. Since joining the office in January 2006, Stone had prosecuted violent crimes, firearms offenses, and large-scale drug cases. For most of his tenure with the office, Stone has been assigned to the Organized Crime and Drug Enforcement Task Force (OCDETF). Established in 1982, to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations, the OCDETF program continues to be the centerpiece of the Department of Justice’s drug supply reduction strategy. Since 2010, Stone has dedicated significant time to battling the opioid epidemic, which hit the Eastern District of Tennessee particularly hard. Stone has successfully prosecuted hundreds of cases, including many successful jury trials. One of his more high-profile trials includes Eric Boyd’s federal trial for his role in the carjacking and murders of Channon Christian and Chris Newsom. Another is the recent four-month trial of Sylvia Hofstetter and three medical providers for their roles in operating illegal pill mills in Tennessee and Florida. Immediately prior to joining the United States Attorney’s Office, Stone prosecuted a variety of criminal cases, including several homicides, as an Assistant District Attorney in Tennessee’s Fourth Judicial District (Sevier, Cocke, Jefferson, and Grainger Counties). Previously, Stone was in private practice with the Chattanooga firm of Chambliss, Bahner & Stophel. Stone holds a Bachelors in Agricultural Economics from The University of Tennessee and is a 1999 Cum Laude graduate of the University of Tennessee College of Law.
David P. Lewen, Jr. has been chosen to serve as Senior Litigation Counsel. Lewen joined the U.S. Attorney’s Office in December 2007. Since then, Lewen has prosecuted a broad spectrum of complex cases, including large-scale drug trafficking and money laundering crimes, multi-million-dollar corporate fraud offenses, public corruption, and violent crimes, including bank robbery, extortion, kidnapping, and carjacking. In 2019, Lewen served a one-year international detail with the U.S. State Department to Timor-Leste, the youngest democratic nation in the Indo-Pacific, where he served as the U.S. Embassy’s Resident Legal Advisor, providing rule-of-law training and case-based mentorship to Timorese judges, prosecutors, and police. Prior to joining the U.S. Attorney’s Office in 2007, Lewen served for five years on active duty in the U.S. Army Judge Advocate General’s Corps, which included service in Korea, Hawaii, and Fort Bragg, N.C. Lewen received his law degree in 2002, from the Georgia State University College of Law, and in 1999, received his undergraduate degree in political science from Norwich University in Vermont, where he was the class valedictorian, a Distinguished Military Graduate, and a Rhodes Scholarship nominee.
Chris Poole has been chosen to serve as the Chattanooga Division Branch Chief. Poole joined the office in 2002, and, for the past 18 years, has focused on prosecuting violent crime. To that end, Poole presently serves as the office’s Project Safe Neighborhoods Coordinator and Anti-Gang Coordinator. Prior to his employment with the U.S. Attorney’s Office, Chris spent four years as an Assistant District Attorney in Hamilton County, Tenn., where he was a Criminal Court Division Supervisor. He received his undergraduate degree from Wake Forest University and his law degree from Georgia State University.
The Greeneville branch office continues to be supervised by Branch Chief Donald Wayne Taylor. Before joining the office as an Assistant U.S. Attorney in 2007, Taylor served as the Chief Assistant Commonwealth’s Attorney in Floyd County, Ky. He also has experience as an associate in a private law firm. He received a law degree from Widener University School of Law in Wilmington, Del., after receiving an undergraduate degree from Penn State University.
In the Civil Division’s Office, Loretta Harber remains Chief of the Civil Division. Harber, a native of Brooklyn, N.Y., and raised in Lexington, Ky, began in the office as an Assistant U.S. Attorney in 1987. She received her undergraduate and law degrees from the University of Tennessee. And, Robert C. McConkey, III continues to serve as Deputy Chief of the Civil Division. McConkey has been an Assistant U.S. Attorney with the office since 2010. Prior to joining the U.S. Attorney’s Office, he worked as an associate in private practice handling commercial and general civil litigation and served as a Deputy Law Director for Knox County, Tenn. He received his law degree from the Cumberland School of Law at Samford University after receiving an undergraduate degree from East Tennessee State University.
The U.S. Attorney’s Office for the Eastern District of Tennessee represents the interests of the United States in federal court in both civil and criminal matters. The eastern district is the largest federal district in Tennessee, with a population of more than 2.6 million, encompassing 41 of the state’s 95 counties, and spanning 420 miles. In addition to the headquarters office in Knoxville, there are branch offices in Chattanooga and Greeneville. U.S. Attorney Overbey, who was sworn in as the presidentially appointed, senate confirmed U.S. Attorney in November 2017, serves as the top-ranking federal law enforcement official in the district.
###
U.S. Attorney’s Office for the Eastern District of Washington Collects Substantial Sum of $61,950,459 for Victims of Crime and for the U.S. Taxpayers in Fiscal Year 2020Read the Press Release
Spokane, Washington – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced today that his office collected the sum of $61,950,459 in Fiscal Year (FY) 2020. Of this amount, $2,603,880 constituted restitution collected in criminal actions on behalf of victims of crime, and $59,346,578 was collected in civil actions.
U.S. Attorney Hyslop stated, “This is a substantial sum of which we are immensely proud. It is great news for the residents of this District and this Country. It is an equally great testament to the diligent work of the attorneys and staff of United States Attorney’s Office for the Eastern District of Washington who have achieved this.”
Hyslop continued, “This sum represents two types of funds. First, when a person is sentenced by the Court for a crime, we ask the Court to also order the convicted felon to pay restitution to those hurt physically or financially by the crime. We do all we can to protect the rights of crime victims and to collect these funds in order to ensure that they are financially restored, if possible. As a result of our added emphasis, we have successfully collected more restitution year after year since 2017 leading to a nearly 100% increase in just four years. The second part represents collections where civil fraud is punished, and civil financial obligations are satisfied.”
Examples of a few successful criminal and civil collections by the Eastern District of Washington in FY 2020 include:
• $57.5 million paid by Bechtel National Inc., a Department of Energy contractor at the Hanford nuclear site, in settlement of civil fraud claims;
• Full recovery of restitution to crime victims in multiple Project Safe Childhood (child exploitation and child pornography) cases, such as United States v. Dale Black in the amount of $400,000 and United States v. Jeffrey Jon Franklin in the amount of $11,000;
• Recovery of more than $930,000 in criminal restitution for the Internal Revenue Service and the Social Security Administration related to criminal tax and theft of government funds cases; and
• $1.1 million recovered for the United States Forest Service and Department of Interior as result of an affirmative civil enforcement case arising out of the August 19, 2015 Twisp River Fire in Okanogan County.
Nationally, the United States Justice Department (DOJ) collected more than $15.9 billion in civil and criminal actions in FY 2020 ending Sept. 30, 2020. The nearly $16 billion recovered in FY 2020 represents more than five times the approximately $3.2 billion appropriated budget for the DOJ’s 94 U.S. Attorneys’ offices and its main litigating divisions during that same period. The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $13.5 billion in payments made directly to the Justice Department and more than $2.4 billion in indirect payments made to other federal agencies, states and other designated recipients.
The U.S. Attorneys’ Offices, along with the DOJ’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
U.S. Attorney Pak submits resignationRead the Press Release
ATLANTA - U.S. Attorney Byung J. “BJay” Pak has announced his resignation effective January 4, 2021. Pak is departing the office after serving for more than three years as the chief federal law enforcement officer for the Northern District of Georgia, which consists of 46 counties in Northwestern Georgia and which has offices in Atlanta, Rome, Gainesville, and Newnan. He was nominated as U.S. Attorney by President Donald Trump in July 017, confirmed by the United States Senate on September 28, 2017, and sworn in as the District’s 25th Presidentially appointed U.S. Attorney on October 10, 2017.
“It has been the greatest honor of my professional career to have been able to serve my fellow citizens as the U.S. Attorney for the Northern District of Georgia. I have done my best to be thoughtful and consistent, and to provide justice for my fellow citizens in a fair, effective and efficient manner. I am grateful to President Trump and the United States Senate for the opportunity to serve, and to former Attorneys General Sessions and Barr for their leadership of the Department,” said U.S. Attorney Byung J. “BJay” Pak.
Pak was born in Seoul, South Korea, and immigrated to the United States when he was nine years old. He resides with his family in Gwinnett County, Georgia. Pak worked in private practice until he began his government service as an Assistant U.S. Attorney in the Northern District of Georgia in 2002. He felt called to public service in the wake of the September 11th terrorist attacks on the United States, and he served for six years, prosecuting a wide variety of cases, including drug trafficking, money laundering, intellectual property, and white-collar crimes.
Additionally, Pak served as a State Representative in the Georgia House of Representatives from 2011 to 2017.
“As I look back at my almost a decade serving the Department of Justice (and this office in particular), the most memorable and fulfilling moments involve working very closely with our law enforcement partners in keeping our communities safe. I take with me fond memories and the utmost respect I have for every one of the men and women who wear the badge. They are truly everyday heroes. My hope is that my tenure in the office will be remembered for our efforts to serve and to support those brave agents and officers. I have witnessed first-hand the fortitude and grace of victims of crime and have taken to heart the awesome responsibility of speaking for those who cannot speak for themselves,” said Pak.
During his time as U.S. Attorney, Pak served on several national committees. He served as Chair of the Attorney General’s Advisory Committee’s Subcommittee on Civil Rights; Vice Chair of the Committee on Management, People, and Performance; and as a member of the Domestic Violence and White-Collar Fraud Working Groups. Pak also served on the Commission on Law Enforcement and the Administration of Justice Technology Working Group, and on the Committee that developed the standards for a National Decertification Index - a database to track excessive use of force incidents by police officers.
The U.S. Attorney’s Office for the Northern District of Georgia consists of three Divisions: Criminal, Civil, and Administrative. The accomplishments of each Division during Pak’s tenure are many and varied.
Criminal
Foremost among the office’s accomplishments during Pak’s tenure has been the commitment to working together and improving relationships with federal, state and local law enforcement partners in an effort to reduce violent crime in targeted areas throughout the District. As part of the Department of Justice priority programs Project Safe Neighborhoods and Project Guardian, the office has worked hand in hand with District Attorneys, federal, state and local law enforcement, and community partners to address gun violence. Working with an outstanding research partner, our efforts have been data-driven and evaluated for effectiveness. Our endeavors have been successful as reflected by recent statistics showing significant reductions in gun violence throughout the District. Our Innovative Prevention and Reentry Initiative involves the Credible Messenger Program, where the Department partners with rehabilitated ex-offenders who serves as trained mentors to those violent offenders reentering society from incarceration. Early data shows the program is highly effective in reducing recidivism.
In addition, the office pursued and successfully prosecuted numerous priority cases in the areas of public corruption, drug trafficking, drug delivery resulting in death, drug distribution and illegal prescribing by medical professionals, cybercrime, fraud, insider trading, sex trafficking and exploitation of minors, environmental crimes and illegal immigration. During Pak’s service as U.S. Attorney, the office increased the number of criminal cases prosecuted by over 30% versus FY17, with an emphasis on taking cases that should be handled on the federal level to best serve the victims of crime, regardless of the amount of financial loss or quantity of drugs.
Civil
The office’s Civil Division has wide areas of responsibility, from defending federal agencies and employees in civil matters to immigration, discrimination matters, prisoner litigation, and civil rights. The Affirmative Civil Enforcement has been highly successful, bringing cases and negotiating the return of millions of taxpayer dollars that individuals and businesses had obtained by fraudulent means. The Defensive Section handled a significant number of cases, including a large number of lawsuits related to immigration matters. The Civil Division continues to focus upon important polling place access discrimination cases throughout the District with the goal of ensuring that every eligible citizen will be able to cast a vote regardless of any disability. The office continued its long practice of protecting the civil rights of all citizens regardless of their nationality, gender, or disability.
Administrative
With the dual factors of the current pandemic and the longest government shutdown in United States history, the office’s Administrative Division has been exceedingly productive during the past three years. The Division handled a vast array of COVID-related issues, including sanitation of workspaces, acquisition of safety equipment, telework policies and procedures, and employee assistance.
In addition to these Divisions, the office has implemented a robust outreach effort, with emphasis on the law enforcement and intelligence communities, prison reentry initiatives, and the media. Pak also made efforts to reach out to the citizens of the Northern District of Georgia directly, with many television, radio, and public appearances, to keep the public informed of what the Office of the U.S. Attorney does.
"For the past three years, I have had the great fortune to work with the highly skilled attorneys and staff in the Northern District of Georgia,” Pak said. “This office is blessed with experienced leaders, and fearless colleagues who truly understand the importance of working together for the benefit of their fellow citizens and for justice. Likewise, the staff that supports the attorneys in the office – administrative personnel, legal assistants, paralegals and investigators, those responsible for outreach to law enforcement, victims, community partners, the media, and to those assigned to security and intelligence – are some of the most dedicated people I have seen. Their roles in fulfilling the mission of the office of pursuing justice cannot be underestimated. I have strived to serve these employees of the U.S. Attorney’s Office as their leader during these past three years, the last of which was one of the most trying the office has ever endured. I have greatly enjoyed working with each and every one of them. Throughout the past three years, I have endeavored to serve them and to tell the story of the great accomplishments of the office. While the public words are mine, the accomplishments belong to them.”
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney Craig Carpenito Announces Distinguished Alumnus Award for Cooper Health CEO Kevin M. O’DowdRead the Press Release
NEWARK, N.J. – Kevin M. O’Dowd, the co-President/CEO of Cooper University Health Care, received the first ever Distinguished Alumnus Award from the U.S. Attorney’s Office for the District of New Jersey for his exceptional leadership during the COVID-19 pandemic, U.S. Attorney Craig Carpenito announced.
“The COVID-19 pandemic is the greatest public health crisis this state has ever encountered,” U.S. Attorney Carpenito said. “In times of crisis, we need great leaders, and Kevin O’Dowd is precisely the kind of leader New Jersey needs right now. I was blessed to work directly with Kevin at the U.S. Attorney’s Office and watch his impressive career. Because he is now standing out as a leader in the state’s response to COVID-19, I can think of no one more deserving for our first ever Distinguished Alumnus Award.”
In March 2020, Gov. Phil Murphy appointed Mr. O’Dowd to serve as the State’s Southern Regional Coordinator for COVID-19 response. In this capacity, he serves as the New Jersey Department of Health’s lead hospital contact in connection with COVID-19 response efforts in seven counties. Mr. O’Dowd has been charged with identifying and coordinating regional bed capacity, developing strategies for allocating patients based upon critical care bed availability, developing surge plans for transporting patients as needed, setting up COVID-19 testing sites, supporting regional Field Medical Sites and collecting and communicating real-time data to the Department of Health on critical information about new cases, changes in medical models of care, bed capacity, resources, and supply of PPE. To date, the hospitals in the southern region have treated more than 40,000 COVID-positive patients. As 2021 begins, Mr. O’Dowd is also assisting the Department of Health in performing the critical mission of coordinating a vaccination plan in order to bring the virus under control.
Before joining Cooper, Mr. O’Dowd served in the Cabinet of Gov. Chris Christie, including as Chief of Staff from 2012 to 2014. Prior to joining the Christie Administration in 2010 as counsel to the Governor, he served as the Chief of the Securities and Health Care Fraud Unit in the Criminal Division of the U.S. Attorney’s Office. During his seven-year tenure, Mr. O’Dowd investigated and prosecuted cases ranging from computer hacking and intellectual property theft to complex health care, securities, and financial fraud. He was also the Chair of the office’s Health Care Task Force. Mr. O’Dowd was twice awarded the Integrity Award from the U.S. Department of Health and Human Services and the Award for Excellence from the U.S. President’s Council on Integrity and Efficiency. In 2012, Seton Hall University School of Law presented Mr. O’Dowd with the St. Thomas More Medal for his distinguished public service.
The United States and Tennessee Resolve Claims with Three Providers for False Claims Act Liability Relating to "P-Stim" Devices for A Total of $1.72 MillionRead the Press Release
NASHVILLE, Tenn. – January 4, 2021 – Don Cochran, U.S. Attorney for the Middle District of Tennessee, and Herbert Slatery III, Attorney General for the State of Tennessee, announced today that James P. Anderson, M.D. (“Dr. Anderson”), as owner of Affiliated Neurologists, PLC; Charles F. Spencer, D.C., as owner of Total Family Physicians Center PLLC d/b/a Total Family Health & Wellness (“Total Family”); and Mitchell P. Shea, D.C., as owner of Chiro2Med of Tennessee P.C. (“Chiro2Med”), agreed to pay the United States and Tennessee a total of $1.72 million to resolve liability under the False Claims Act for the alleged improper billing for electro-acupuncture using a peri-auricular stimulation device known as “P-Stim” that does not qualify for reimbursement under Medicare or TennCare.
P-Stim is an electro-acupuncture device that, pursuant to manufacturer’s instructions, is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the device then provides intermittent stimulation by electrical pulses. It is a single-use, battery-powered device designed to be worn for approximately four days until its battery runs out, at which time the device is thrown away. Medicare and TennCare do not reimburse for such acupuncture devices, nor do Medicare and TennCare reimburse for P-Stim as a neurostimulator or as implantation of neurostimulator electrodes. Other brand names for this device include Stivax, NeuroStim, ANSiStim, E-Pulse, and NSS-2 Bridge.
From May 2016 through November 2018, Dr. Anderson, Total Family, and Chiro2Med billed for, and were reimbursed by the United States for acupuncture using P-Stim devices under HCPCS Code L8679, which instead requires implantation of a neurostimulator with anesthesia in a surgical setting by a physician, typically a surgeon. Dr. Anderson, Total Family, and Chiro2Med separately billed for, and were reimbursed by, Medicare and/or TennCare for these devices over a two year period.
On June 10, 2020, Tennessee brought suit in the Chancery Court of Davidson County against Dr. Anderson under the Tennessee Medicaid False Claims Act for the false claims he submitted to TennCare. Under the terms of the settlement, Dr. Anderson agreed to pay $1 million to the United States and Tennessee over five years. Dr. Anderson also agreed to enter into an Integrity Agreement with the Office of Inspector General of the U.S. Department of Health and Human Services that will require regular monitoring of its billing practices for a period of three years.
Dr. Spencer and Total Family agreed to pay the United States $700,000 over five years.
Dr. Shea and Chiro2Med agreed to pay the United States $20,000 over five years.
“These settlements are part of a nationwide effort to hold accountable those providers who were paid improperly for non-reimbursable acupuncture under the guise of a surgically implanted neurostimulator,” said U.S. Attorney Cochran. “Working closely with our partners at CMS’s Center for Program Integrity, the Department of Health and Human Services Office of the Inspector General, our sister U.S. Attorney’s Offices, and the Tennessee Attorney General’s Office, we were able to identify those who profited from the submission of these false claims and negotiate resolutions that resulted in a significant recovery of taxpayer dollars.”
“This Office will not tolerate medical device fraud in Tennessee, whether it is the P-Stim as in these cases, or any type of fraud,” said General Slatery.
“Every dollar saved is critical to the sustainability of our Medicare program and the needs of our beneficiaries,” said Centers for Medicare and Medicaid Services Administrator Seema Verma. “We thank our partners at the Department of Justice and Department of Health and Human Services Office of Inspector General for working hard with us to identify, investigate, and eliminate waste, fraud and abuse in our federal health care programs.”
“These providers disregarded Medicare and Medicaid rules to bill acupuncture services as P-Stim devices in order to pad their bottom line,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Our agency, working closely with our law enforcement partners, will continue to protect patients and the federal health care programs that serve them.”
These cases were handled by the United States Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office, Medicaid Fraud and Integrity Division, with assistance from the Tennessee Bureau of Investigation Medicaid Fraud Control Unit and the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Kara F. Sweet represented the United States. Deputy Attorney General Tony Hullender represented Tennessee.
# # # # #
Teacher Who Used Kik to Solicit, Receive and Distribute Child Pornography Sentenced to 70 Months in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DYLAN KOERNER, 29, of New Britain, formerly of West Hartford, was sentenced today by U.S. District Judge Janet Bond Arterton to 70 months of imprisonment, followed by three years of supervised release for soliciting, receiving and distributing child pornography.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, between July 2019 and October 2019, Koerner used a false identity and posed as a teenager on Kik, an internet mobile application, to solicit nude photographs from Kik users who were minor females as young as 12 years old. He then traded those images with other Kik users to receive more images of child pornography.
On October 29, 2019, HSI agents executed a search warrant of Koerner’s residence and seized his cell phone, laptop and external hard drive. Analysis of the seized devices revealed approximately 121 unique images, nine unique videos depicting child pornography, and numerous images and video depicting child erotica.
After earning his teaching certification in 2018, Koerner worked as an elementary school music teacher in Hartford, and as a substitute teacher at various elementary, middle and high schools in Connecticut.
On September 21, 2020, Koerner pleaded guilty to one count of distribution of child pornography.
Koerner, who is released on a $100,000 bond, is required to report to prison on May 4, 2021
This investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Tampa Man Charged with Possession of Credit Card Manufacturing Equipment and Producing Counterfeit Credit CardsRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Eugene Stephan Cole (30, Tampa) with possession of credit card manufacturing equipment and producing counterfeit credit cards. If convicted on both counts, Cole faces a maximum penalty of 25 years in federal prison and payment of restitution to the victims that he defrauded. The indictment also notifies Cole that the United States intends to forfeit various items of equipment and computer media used by Cole to produce counterfeit credit cards. Cole was arraigned in federal court earlier today in Jacksonville. His trial is set for March 1, 2021.
According to the indictment, on March 4, 2020, Cole possessed items related to his manufacturing of counterfeit credit cards, including a credit card encoder/recoder, a card embosser, an Apple iPad, and multiple Apple iPhones.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service (Jacksonville Field Office) and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
South Texas siblings plead guilty for their roles in marijuana smuggling ventureRead the Press Release
LAREDO, Texas – Two South Texas men have admitted they organized the smuggling of approximately 170 kilograms of marijuana from El Cenizo to Laredo, announced U.S. Attorney Ryan K. Patrick.
Roberto Chavarria, 38, pleaded guilty today, while his brother - Daniel Chavarria, 35, entered his plea Dec. 1, 2020. The El Cenizo men admitted to conspiring to possess with intent to distribute marijuana.
On May 25, 2017, both helped load large bundles of marijuana into the back of a black pickup truck at Roberto Chavarria’s residence in El Cenizo. The drugs had been previously gathered from the banks of the Rio Grande River. Daniel Chavarria then attempted to escort the drug-laden truck to a stash house in Laredo.
After conducting surveillance, law enforcement attempted to stop the pickup truck for a traffic violation while in route. However, the driver led authorities on a chase and quickly fled the scene.
Authorities found the abandoned vehicle shortly thereafter in the middle of the road with the lights on and still running. They conducted a search and removed five large bundles of marijuana weighing 169.5 kilograms with an estimated street value of $299,200.
Law enforcement were eventually able to identify and locate the brothers and took them into custody.
U.S. District Judge Diana Saldana will impose sentencing at a date still to be determined. At that time, both men face a minimum of five years in federal prison and a possible $5 million maximum fine.
The Drug Enforcement Administration conducted the investigation with assistance of the Webb County Sheriff’s Office. Assistant U.S. Attorney Michael Makens is prosecuting the case.
Ready-Mix Concrete Company Admits to Fixing Prices and Rigging Bids in Violation of Antitrust LawsRead the Press Release
Argos USA LLC, a producer and seller of ready-mix concrete headquartered in Alpharetta, Georgia, was charged with participating in a conspiracy to fix prices, rig bids, and allocate markets for sales of ready-mix concrete in the Southern District of Georgia and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed today in the U.S. District Court in Savannah, employees of Argos and other ready-mix concrete companies carried out the charged conspiracy by coordinating the issuance of price-increase letters to customers, allocating specific ready-mix concrete jobs in the coastal Georgia area, charging fuel surcharges and environmental fees, and submitting bids to customers at collusive and noncompetitive prices. The charged conspiracy began as early as 2010 and continued until about July 2016.
The Antitrust Division also announced a deferred prosecution agreement (DPA) resolving the charge against Argos, under which the company agreed to pay a $20 million criminal penalty, admitted to participating in the charged conspiracy, and agreed to cooperate fully with the Antitrust Division’s ongoing criminal investigation and prosecution of others involved in this conspiracy. Under the DPA, Argos has also agreed to maintain a compliance and ethics program designed to prevent and detect antitrust violations and that meets certain elements specified in the DPA, and to conduct periodic reviews and submit annual reports to the division regarding the remediation and implementation of its compliance program. As part of the agreement, the parties will file a joint motion, which is subject to approval by the court, to defer for the term of the DPA any prosecution and trial of the charge filed against Argos.
“This resolution reflects the division’s dedication to holding accountable those who cheat American consumers out of competitively priced critical commercial products,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Price fixing, market allocation, and bid rigging are not only unethical, but illegal. The division, along with its law enforcement partners, remains focused on prosecuting those responsible for this type of conduct.”
“There is no room in the Southern District of Georgia for companies attempting to inflate their profits by illegally colluding with would-be competitors at the expense of consumers,” said U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “This agreement cements our dedication to eliminating such anti-competitive practices.”
“Activities related to collusion, bid rigging, and market allocation do not promote an environment conducive to open competition, which harms the consumer,” said Director Steven Stuller of the U.S. Postal Service Office of Inspector General. “The U.S. Postal Service spends hundreds of millions of dollars on new construction, maintenance, and renovation of U.S. Postal Service facilities. Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”
“This announcement is yet another example of the FBI and our partners’ dedication to ensure a fair market for consumers,” said Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office. “The U.S. system of open and free markets for all consumers is built on trust and integrity. When a company such as Argos admits to a conspiracy to rig bids and fix prices at the expense of consumers, the integrity of the system is compromised. The FBI will doggedly pursue and investigate all allegations of corruption, by individuals and companies, that hinder consumers’ rights.”
Ready-mix concrete is a product comprised of ingredients including cement, aggregate (sand and gravel), water, and, at times, other additives. It is made on demand and, if necessary, delivered to work sites by concrete mixer trucks. Ready-mix concrete is purchased by do-it-yourself and commercial customers, as well as local, state, and federal governments, for use in various construction projects, including, but not limited to, sidewalks, driveways, bridges, tunnels, and roads.
Argos is the second company charged in this matter. An indictment was returned in September 2020 in the U.S. District Court in Savannah charging Evans Concrete LLC; John David Melton; Timothy Tommy Strickland; and former Argos employees James Clayton Pedrick and Gregory Hall Melton with participating in the same conspiracy. Pedrick was also charged with making false statements, and Strickland was charged with making false statements and perjury. Evans Concrete and the individuals are all awaiting trial.
In the DPA, Argos admitted to participating in the charged conspiracy from October 2011, when it acquired the assets of a ready-mix concrete supplier in the Southern District of Georgia and began employing Gregory Melton and James Pedrick, until July 2016. Gregory Melton was the division manager of ready-mix concrete sales for Argos’ local sales office in Pooler, Georgia. Pedrick was a cement salesperson, selling cement to ready-mix concrete suppliers.
Argos is charged with a violation of the Sherman Act, which carries a maximum penalty of a $100 million fine for corporations. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.
The charge is the result of an ongoing investigation conducted by the Antitrust Division, the U.S. Postal Service Office of Inspector General, and the FBI’s Washington Field Office, with the assistance of the U.S. Attorney’s Office for the Southern District of Georgia and the U.S. Department of Transportation Office of Inspector General. Anyone with information on market allocation, price fixing, bid rigging, or other anticompetitive conduct in the ready-mix concrete industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Parsonsfield Man Sentenced for Trafficking FentanylRead the Press Release
PORTLAND, Maine: A Parsonsfield man was sentenced today in federal court for distributing fentanyl and possessing it with intent to distribute, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Kenneth Billings, 54, to 60 months imprisonment and four years of supervised release. Billings pleaded guilty on October 17, 2019.
According to court records, a confidential informant purchased fentanyl from Billings in Sebago on two occasions in January 2019. MDEA agents obtained a state arrest warrant for Billings and arrested him in February 2019, outside a Scarborough hotel where he had been staying. Agents searched him and recovered multiple packages containing over 40 grams of fentanyl, which he intended to distribute.
The FBI and the MDEA investigated the case. The U.S. Attorney’s Office prosecuted the case as part of the Department of Justice’s Operation Synthetic Opioid Surge, a program designed to reduce the supply of deadly synthetic opioids.
Nebraska Fugitive of 35 Years and His Spouse Indicted on Federal Fraud ChargesRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Howard D. Farley, Jr. (72, Weirsdale) and Duc Hanh Thi Vu (56, Weirsdale) with passport fraud. Farley was also charged with aggravated identity theft, Social Security fraud, possession of a firearm and ammunition by a convicted felon, and operating as a pilot without a legitimate airman’s certificate. Vu was additionally charged with false statements to a federal agency and employing a pilot without a legitimate airman’s certificate. The indictment also includes a forfeiture allegation to seize the couple’s aircraft.
If convicted, Farley faces a maximum penalty of 30 years in federal prison. Vu faces a maximum penalty of 18 years in federal prison.
Farley was previously arrested on December 2, 2020, as “John Doe,” after federal agents obtained an arrest warrant for passport fraud. Once Farley was fingerprinted, agents confirmed that he had been using the identity of a deceased person for more than 35 years to avoid apprehension in the District of Nebraska where, in 1985, he had been indicted as part of a drug distribution conspiracy. Those charges were dismissed in 2014.
According to the indictment and other court records, in or around February 2020, Farley and Vu, acting together, submitted a passport application using the name and date of birth of an infant who had died in 1955. Farley and Vu failed to disclose Farley’s true identity in the application. They also included a Social Security number for the victim, which Farley had obtained by fraudulent means in 1982.
At the time of his arrest on December 2, 2020, authorities executed a search warrant at the couple’s residence, in which agents recovered a firearm and ammunition inside Farley’s nightstand. Farley was convicted in 1970 of a felony in Nebraska and is prohibited from possessing a firearm or ammunition under federal law. While agents were at the residence, Vu allegedly made false statements regarding the true identity of Farley.
The Department of Homeland Security also seized an aircraft located at the residence. While the aircraft was registered to Vu, Farley was the only pilot who operated it. The indictment charges Farley with operating as a pilot without a legitimate airman’s certificate. It further charges Vu with employing Farley as a pilot without a legitimate airman’s certificate. Farley did not have a legitimate airman’s certificate because he falsified his identity to the Federal Aviation Administration. He also failed to disclose his felony conviction from Nebraska and his status as a fugitive from justice. If convicted of these offenses, the aircraft would be subject to forfeiture by the United States.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the U.S. Department of State’s Diplomatic Security Service (DSS), the Department of Transportation – Office of Inspector General, the Social Security Administration – Office of the Inspector General, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation,with support from the Marion County Sheriff’s Office and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta.
Mexican National Sentenced to More than 11 Years in Federal Prison for Methamphetamine and Immigration OffensesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Joel Gonzalez-Gomez, 31, of Chipas, Mexico, was sentenced to 135 months in federal prison for conspiracy to distribute more than 50 grams of methamphetamine and illegal reentry of a removed alien.
“Five prior removals. More than a kilo of meth. 12 grams of fentanyl. 28 grams of cocaine. 3 guns,” said United States Attorney Mike Stuart. “Gonzalez-Gomez had come into our country illegally and continued to break our laws by peddling poison. He will now have more than 11 years in federal prison to think about the error of his ways.”
In July 2019, drug task force investigators began purchasing methamphetamine from individuals associated with Gonzalez-Gomez at various locations in Kanawha County. The investigation culminated in the execution of a search warrant at the residence of Gonzalez-Gomez on Church Drive in Charleston on November 20, 2019. Investigators seized more than a kilogram of methamphetamine, 12 grams of fentanyl, 28 grams of cocaine, and three firearms. Gonzalez-Gomez was arrested the same day at a residence in Cottageville, Jackson County. He had previously been deported on November 6, 2013, October 28, 2015, December 15, 2015, December 7, 2016, and March 27, 2018.
The Drug Enforcement Administration (DEA), the Department of Homeland Security, Immigration and Customs Enforcement (DHS/ICE), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Metropolitan Drug Enforcement Network Team (MDENT), and the Kanawha County Sheriff’s Office (KCSO) conducted the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00157.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Marshall County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jason Alexander Ruskin, of Moundsville, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Ruskin, 28, pled guilty to one count of “Unlawful Possession of a Firearm.” Ruskin, a person prohibited from having firearms because of a prior conviction, admitted to having a 9mm semi-automatic pistol in August 2020 in Marshall County.
Ruskin faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Judge sentences St. Louis man for heading St. Louis cell of multi-kilogram heroin and cocaine distribution organizationRead the Press Release
ST. LOUIS, MO – United States District Judge Ronnie L. White sentenced Robert Hill to 25 years in prison. A jury had convicted Hill of one count of conspiracy to possess with intent to distribute heroin and cocaine and one count of felon in possession of a firearm on September 16, 2020.
The evidence presented at trial proved that on May 23, 2013, officers responded to a call in the 11000 block of Criterion Avenue in St. Louis, Missouri. Investigators observed signs of a struggle and blood smears and during a protective sweep of the residence located and ultimately seized more than 63 functional firearms, various ammunition, and body armor. Security footage and other evidence linked the residence to Robert Hill, a previously convicted felon. Hill’s fingerprints were found on some of the firearms.
Additional evidence demonstrated Hill’s participation in a long-term, large-scale drug conspiracy involving multiple-kilogram quantities of cocaine and heroin from Mexican sources of supply to the St. Louis area. During the investigation, authorities seized hundreds of thousands of dollars in drug proceeds from Hill and his various associates. Specifically, on February 19, 2016, a Clayton Police Officer located Hill in a van with its parking lights on and making furtive movements. A records check revealed Hill had an active warrant. Hill fled from the officer who chased him by foot throughout a Clayton residential neighborhood. Hill was ultimately apprehended and was wearing a backpack in which $77,648.30 in currency was located, as well as a drug ledger. Hill was also in possession of four cellular telephones. The cash was seized and forfeited as drug proceeds.
DEA later obtained court-authorized wiretap interceptions over various cellular telephones used by Hill and his associates, during which coded conversations revealed that Hill was negotiating for and obtaining multiple kilograms of heroin on a weekly basis for distribution and sale in the St. Louis area. The Court found Hill was responsible for more than 90 kilograms of heroin and possessed firearms in connection with the offense.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney Sayler A. Fleming commended the work of the various law enforcement agencies in bringing this long-term offender to justice. “Robert Hill evaded law enforcement for several years and his drug trafficking activity did untold harm to the citizens of our district. The sentence in this case reflects that.”
“There is no better way to begin a new year than to send the leader of a violent drug trafficking organization to prison,” said Marissa Lee, Acting Assistant Special Agent in Charge. “This ensures illegal guns and drugs aren’t on our neighborhood streets. DEA often finds that violence and drugs go hand in hand and the defendant in this case is a perfect example.”
The Drug Enforcement Administration, United States Marshals Service, St. Louis County Police Department, and Clayton Police Department investigated the case.
#####
Judge Sentences St. Louis Man to 20 Years for Drug-Related Murder and Conspiracy to Distribute FentanylRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Armond Calvin to 240 months in prison today for one count of conspiracy to distribute fentanyl and one count of using a firearm to commit murder in furtherance of a drug trafficking crime. Calvin, 22, of St. Louis City, previously pleaded guilty on October 5, 2020.
According to the plea agreement, Calvin was a member of a violent drug trafficking organization that distributed fentanyl and other illegal drugs to drug customers in the St. Louis Metropolitan area. Members of the organization maintained various cellular telephones, which drug customers would call to obtain fentanyl. Calvin and other members of the conspiracy shared the phones, taking turns distributing fentanyl to customers who called the phone numbers.
On December 3, 2016, Calvin and other gang members learned a prospective customer had purchased fentanyl from a rival drug dealer, instead of from Calvin’s drug trafficking organization. Calvin and other members of his gang then tracked the rival dealer’s vehicle to the area of the Meramec Market, near the intersection of Oregon Avenue and Meramec Street in the City of St. Louis. At that location, Calvin, armed with a Glock 27, .40 caliber firearm fitted with a laser sight, leaned out of his own vehicle’s window and opened fire on the rival vehicle, striking and killing the backseat occupant, victim David Leslie Bryant, III. As Calvin was shooting, a black knit hat fell off Calvin’s head and onto the street. Later forensic analysis revealed Calvin’s DNA on the hat. The Glock 27, .40 caliber firearm was recovered several months later following the crash of a vehicle in which Calvin was a passenger, and ballistics analysis confirmed it was the murder weapon.
This case was investigated and prosecuted in connection with the on-going U.S. Attorney’s Office Project Safe Neighborhoods Initiative and investigation into drug distribution at the Clinton-Peabody public housing complex. The investigation included the execution of more than 15 federal search warrants resulting in the seizure of numerous firearms and controlled substances and was the subject of an important public forum involving law enforcement, citizens, and residents of the Clinton-Peabody complex held on August 3, 2018, at the Peabody Elementary School.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the St. Louis Metropolitan Police Department, the St. Louis Division of the FBI, the St. Louis Division of the DEA, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service, and the St. Charles County Sheriff’s Department, with assistance from the St. Louis Circuit Attorney’s Office. Assistant United States Attorneys Lisa Yemm and Angie Danis are handling the case for the United States Attorney’s Office.
#####
Heroin Redistributor Sentenced to 87 Months in Federal PrisonRead the Press Release
A man who acted as a redistributor in a heroin trafficking operation with ties to the New Generation Cartel was sentenced in federal court today, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Sean Wasson, 27, to 87 months in federal prison followed by three years of supervised release. The Court further recommended to the U.S. Bureau of Prisons that Wasson take part in a residential drug abuse treatment program.
“Sean Wasson is on his way to federal prison for the next seven years because of the kilos of heroin he distributed in our community,” said U.S. Attorney Trent Shores. “As a local redistributor for a heroin trafficking operation with ties to Mexico’s New Generation Cartel, Wasson posed a real threat to our community. In this case, our Organized Crime Drug Enforcement Task Force has secured an important conviction and sentence.”
Wasson was convicted as a result of an Organized Crime Drug Enforcement Task Force investigation titled Operation Smack Dragon. He was charged in a superseding indictment on Sept. 10, 2020, with possession of heroin with intent to distribute. As part of the drug trafficking operation, Wasson acted as a redistributor with his own customer base. For nearly two years he distributed between one and three kilograms of heroin into the Tulsa community.
Wasson was remanded to the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations led the investigation in partnership with the U.S. Department of Treasury, Internal Revenue Service- Criminal Investigation; the Oklahoma State Attorney General’s Office; and Tulsa Police Department. Assistant U.S. Attorney Joel-lyn McCormick is prosecuting this case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.
Harrison County man admits to meth distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Maylen Crayton, II, of Bridgeport, West Virginia, has admitted to a methamphetamine charge, U.S. Attorney Bill Powell announced.
Crayton, age 30, pled guilty today to one count of “Possession with Intent to Distribute 50 Grams or More of Methamphetamine,” two counts of “Possession with Intent to Distribute Methamphetamine,” and one count of “Possession with Intent to Distribute Heroin.” Crayton admitted to having more than 50 grams of methamphetamine in April 2019 in Harrison County. He also admitted to having methamphetamine and heroin in June and July 2019 in Harrison County.
Crayton faces at least five years and up to 40 years of incarceration and a fine of up to $10,000,000 for the 50 grams or more count, and faces up to 20 years of incarceration and a fine of up to $1,000,000 for each of the other counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Bridgeport Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grant County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Lawrence Allen Keplinger, of Lahmansville, West Virginia, has admitted to a methamphetamine distribution charge, U.S. Attorney Bill Powell announced.
Keplinger, age 39, is pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” involving more than 50 grams of “crystal meth” or “ice.” Keplinger admitted to having more than 50 grams of methamphetamine in March 2019 in Grant County.
Keplinger faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Former Postal Worker Pleads Guilty to Failing to Deliver over 700 Pieces of Mail Which Included Three Absentee BallotsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Brandon Wilson, 27, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge Jeremiah J. McCarthy to delay or destruction of U.S. Mail. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on November 3, 2020, Customs and Border Protection (CBP) Officers encountered the defendant, an employee of the United States Postal Service (USPS) at the time, at the Peace Bridge Port of Entry. In the trunk of Wilson’s vehicle, officers found 701 mailings, and a USPS employee uniform and employee identification badge. The mailings included three (3) official absentee ballots mailed from the Board of Elections to voters, 218 first class mailings, 106 political mailings, 36 regular nonprofit mailings, 305 regular standard mailings, and 33 magazine/catalogue mailings. The mailings were destined for addresses located in the following zip codes: 14227, 14211, 14214, with a majority destined for 14215. The cancellation dates on the first class mailings were between September 16 and October 26, 2020.
When asked by officers about the mailings in his trunk, the defendant initially stated they belonged to him and his mother. When confronted with the destination names and addresses, Wilson admitted that he was a USPS postal carrier who kept custody of the mailings after failing to complete his delivery route.
The plea is the result of an investigation by the United States Postal Service, Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely, Eastern Area Field Office, Pittsburgh, PA, and Customs and Border Protection, under the direction of Director of Field Operations, Rose Brophy.
Sentencing is scheduled for May 6, 2021, at 2:00 p.m. before Magistrate Judge McCarthy.
# # # #
Former Office Manager of Suburban Construction Company Charged with Fraud for Allegedly Embezzling More Than $2.3 Million in Company FundsRead the Press Release
CHICAGO — The former office manager of a southwest suburban construction company has been charged with fraud for allegedly embezzling more than $2.3 million in company funds.
MILDRED H. CROWLEY fraudulently opened a corporate credit card and used it to charge the Lemont-based company for personal expenses, according to a criminal information filed Dec. 29, 2020, in U.S. District in Chicago. Crowley’s personal expenses included payments related to a private horse farm and horse show, as well as restaurant meals, department store purchases, and travel throughout the United States, the information states. Crowley concealed the thefts by falsifying the company’s books and records to misrepresent her unauthorized use of the corporate card, the information states. The alleged fraud scheme spanned from 2009 to 2020.
The information charges Crowley, 72, of Bourbonnais, Ill., with one count of wire fraud. Arraignment in U.S. District Court in Chicago has not yet been scheduled.
The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney John D. Mitchell.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Marine Corps Reserve Official Pleads Guilty to Conspiracy to Commit Bribery for Facilitating over $1,900,000 in Defense ContractsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announces that ERIK MARTIN, aged 48, pleaded guilty on Tuesday, December 29, 2020, to a Bill of Information charging him with Conspiracy to Commit Bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(2). MARTIN faces up to five years imprisonment, followed by three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100. Sentencing is set for April 27, 2021, in front of the Honorable Judge Wendy B. Vitter.
According to the Factual Basis, in 2019, MARTIN was a civilian employee of the United States Marines Corps Marine Forces Reserve (MARFORRES) Distribution Management Office (DMO), located in New Orleans, Louisiana. Darrel Fitzpatrick was a Senior National Account Manager at Company A, a bus brokerage company based in Atlanta, Georgia. MARTIN accepted bribes in exchange for directing transportation contracts to businesses associated with Darrel Fitzpatrick.
The conspiracy resulted in at least $1.9 million in transportation contracts being corruptly awarded to companies associated with Fitzpatrick. In exchange for steering contracts to Fitzpatrick, MARTIN agreed to accept $250,000 in bribes.
U. S. Attorney Strasser praised the work of the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), and the United States Secret Service for their investigation in this case. The prosecution is being handled by Assistant United States Attorney Myles Ranier.
* * *
Former High-Level Associate of Imprisoned Mexican Mafia Member Sentenced to 12 Years in Prison for Carjacking, Soliciting MurderRead the Press Release
LOS ANGELES – A Pomona woman who acted as a “señora” – or a high-level female associate for an imprisoned Mexican Mafia member – was sentenced today to 144 months in federal prison for using her power on the street to solicit a murder and for participating in a carjacking attempt that resulted in a shooting.
Cheryl Perez-Castaneda, 58, was sentenced via videoconference by United States District Judge George H. Wu. She pleaded guilty in October 2020 to one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and one count of using a firearm during a crime of violence.
Perez-Castaneda was a high-level associate of a Mexican Mafia cell run by Michael Lerma, 63, a.k.a. “Pomona Mike” and “Big Mike.” Lerma exercised control over, and extorted drug proceeds from, Latino street gangs in and around Pomona, as well as from inmates at Calipatria State Prison in Imperial County, according to a federal grand jury indictment.
Members of Lerma’s criminal enterprise also engaged in robberies, identity theft and fraud, drug trafficking, kidnapping, and other acts of violence, the indictment alleges. Lerma profited from these criminal activities when top-level female associates known as “señoras” deposited proceeds into his prison account, court documents state.
One of those associates was Perez-Castaneda, who, from February 2012 to July 2016, engaged in the traditional and expected duties of a “señora” – collecting extortionate “taxes” from Pomona drug dealers; distributing the drug proceeds to the Mexican Mafia, including Lerma, who was incarcerated at Pelican Bay State Prison; and giving orders to others regarding the racketeering enterprise’s criminal activities.
But Perez-Castaneda also used her power as Lerma’s voice on the street to solicit the murder of a Los Angeles County Jail inmate in July 2013 in retaliation for the shooting of her son. When Perez-Castaneda was informed that the victim had been stabbed, but not killed, she sought and obtained the approval of a Mexican Mafia member to have the victim placed on a “green light” list, marking him for murder.
In July 2013, Perez-Castaneda also participated in the attempted theft of a Mercedes-Benz automobile owned by another jail inmate. When the car’s caretaker refused to hand over the vehicle, one of Perez-Castaneda’s co-defendants shot him, according to court documents. Perez-Castaneda later laughed about the shooting on a recorded telephone call.
In March 2018, a federal grand jury charged Lerma and 12 other defendants with multiple felonies, including racketeering conspiracy, violent crimes in aid of racketeering, conspiracy to distribute controlled substances, and firearms offenses. So far, prosecutors have secured five guilty pleas in this case. Trial for the other defendants in this case, including Lerma and Jose Valencia Gonzalez, the alleged shooter in the July 2013 carjacking incident, is scheduled for May 11.
This investigation was conducted by the FBI’s San Gabriel Valley Safe Streets Task Force, which is made up of agents and officers with the FBI, the Los Angeles County Sheriff’s Department, the Pomona Police Department, the El Monte Police Department, the Drug Enforcement Administration and the California Department of Corrections and Rehabilitation (CDCR). The Pomona Police Department is the sponsoring agency of the Task Force and has been the headquarters for the task force since its inception in 2008.
This case was prosecuted by Assistant United States Attorneys Max B. Shiner of the Violent and Organized Crime Section, and Shawn J. Nelson and Keith D. Ellison of the International Narcotics, Money Laundering, and Racketeering Section.
Former Bank Manager Sentenced to Prison After Stealing Nearly $1.2 Million in Benefits from the Social Security Administration and Department of Veterans AffairsRead the Press Release
LAS VEGAS, Nev. — A former branch manager of a bank in Las Vegas was sentenced today to two years and six months in prison after pleading guilty to fraudulently obtaining nearly $1.2 million in Social Security Administration (SSA) and Department of Veterans Affairs (VA) benefits, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada; Inspector General for the Social Security Administration Gail S. Ennis; and VA Inspector General Michael J. Missal.
“The Social Security Administration and Department of Veterans Affairs provide a lifeline to members of society who are eligible, and provide benefits to veterans who have served and sacrificed for their country,” said U.S. Attorney Trutanich. “Our office and our agency partners are committed to safeguarding these programs and prosecuting those who would abuse these essential services.”
“We must hold those in positions of trust accountable when they abuse that trust and misuse their authority for personal gain,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to work with SSA and other agencies to identify unreported deaths and aggressively pursue those who misuse Social Security benefits after someone dies.”
“The VA Office of Inspector General tirelessly pursues allegations of fraud, waste, and abuse affecting VA programs,” said VA Inspector General Michael J. Missal. “This conduct was particularly disturbing as it involved an individual who abused his position of trust.”
Javier Montano, 57, of Las Vegas, pleaded guilty to one count of theft of government funds. In addition to the term of imprisonment, U.S. District Judge Jennifer Dorsey sentenced Montano to three years of supervised release and ordered him to pay $1,196,075.95 in restitution to the Social Security Administration and Department of Veterans Affairs.
According to court documents, in August 2015, Montano, who was the branch manager for a local bank, received information about two accounts within the bank with large balances and no activity:
- The first account (Account A) was held by a Las Vegas resident who was receiving SSA retirement benefits. The individual passed away in February 1997. The SSA was not notified about the individual’s death, and benefits continued to be paid into the account.
- The second account (Account B) was held by a Las Vegas resident who was receiving both SSA retirement benefits and VA benefits. The individual passed away in June 2011. Neither the SSA nor the VA was notified about the individual’s death, and benefits continued to accumulate in the account.
Through a bank computer, Montano ordered debit cards for both accounts, using them to withdraw cash — which he either spent or deposited into his personal bank account — and to make purchases for his personal use and benefit. In addition, Montano ordered and wrote checks (for his personal use) for Account B. Montano also used his authority as a branch manager to authorize a $35,000 cashier’s check from Account B. The vast majority of the funds were withdrawn in cash or spent on personal expenses, including the purchase of a luxury car.
In total, between August 2015 and June 2020, Montano fraudulently obtained: (a) approximately $436,686.80 in SSA benefits to which he was not entitled; and (b) approximately $757,985.88 in VA benefits to which he was not entitled.
This case was a joint investigation by the Social Security Administration, Office of Inspector General, and Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Jessica Oliva prosecuted the case.
###