Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
21 December 2020
Utica Man Sentenced to 20 Years for Sexual Exploitation of a Child and Distributing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Aaron Bohannon, age 53, of Utica, New York was sentenced to 20 years imprisonment and a lifetime term of supervised release for his convictions for sexually exploiting a child and distributing child pornography, announced Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his previously entered guilty plea, Bohannon admitted that he sexually exploited his victim from at least 2018 through June of 2019, recorded the abuse, and distributed the sexually explicit material to others. Bohannon also admitted that he distributed other sexually explicit images and videos of minors. Upon release from prison, Bohannon will be required to register as a sex offender.
This case was investigated by the New York State Police, the Oneida County Sheriff’s Office, the Utica Police Department, and the Department of Homeland Security, Homeland Security Investigations (HSI) and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Utah Business Owner Charged with Failing to Pay Taxes Withheld from Employees’ WagesRead the Press Release
SALT LAKE CITY – A federal grand jury returned an indictment Wednesday afternoon charging an Ogden, Utah, business owner, who owned and operated four healthcare related limited liability companies, with 27 counts of failing to pay over trust fund taxes totaling $146,856 to the IRS, between 2014 and 2016.
According to the indictment, Daniel Fry, who owned and operated four limited liability companies, including Burch Creek Homecare and Hospice LLC, Medical Billing Advantage LLC, Scrub World, and Country Niche LLC, caused trust fund taxes to be withheld from the wages paid to the employees of each of these businesses, and that Fry failed to pay over to the IRS all of the taxes owing to the United States on behalf of the employees of these businesses.
The indictment alleges that employers are required to withhold, account for, and pay over to the IRS, a variety of taxes from employee wages, including federal income taxes and FICA taxes- which include Medicare and Social Security taxes. These taxes are referred to as “trust fund taxes” because employers are required to hold them in trust for their employees and pay them over to the IRS.
Fry faces up to five years in federal prison if convicted of failure to pay over trust fund taxes. The case is being investigated by IRS Criminal Investigation.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty beyond a reasonable doubt in a court of law.
A summons has been issued for Fry to appear in federal court. This case is being prosecuted by the U.S. Attorney’s Office in Utah.
U.S. Trustee Program Announces Streamlined Forms for Completing Chapter 11 Financial ReportsRead the Press Release
The Department of Justice’s U.S. Trustee Program (USTP) announced today the publication of a final rule in the Federal Register that streamlines the financial reports required under the Bankruptcy Code to be filed with the bankruptcy court by the vast majority of business and individual debtors in chapter 11 bankruptcy, including in the largest reorganization cases. The rule, entitled “Procedures for Completing Uniform Periodic Reports in Non-Small Business Cases Filed Under Chapter 11 of Title 11,” replaces approximately 150 existing variations of these reports with two uniform forms to be used nationally: a monthly operating report filed before plan confirmation and, after plan confirmation, a quarterly post-confirmation report to show compliance with the plan. The rule does not apply to debtors who are small businesses or who, in accordance with the CARES Act, have elected relief under subchapter V of chapter 11.
“This new rule is largely deregulatory and greatly simplifies financial reporting for chapter 11 debtors that do not qualify as small businesses while maintaining clarity and transparency for the public,” said USTP Director Cliff White. “This good-government reform, which received extensive public input, strikes an appropriate balance between reporting requirements and transparency.”
The rule is posted at https://www.justice.gov/ust/rules-and-federal-register-notices.
The New Reports Reflect Input from Stakeholders
To solicit feedback from the public, the USTP published the proposed rule for two public comment periods and held a public meeting with interested stakeholders. The feedback from commenters was constructive and wide ranging. The final rule balances the divergent views in accomplishing the goals set by Congress of simplifying the reporting process while providing transparency and improved uniformity across the reports. Although the two new forms simplify the financial information that chapter 11 debtors must provide, additional supplemental information also may be requested by the U.S. Trustee if there is a particularized need.
Implementation and the Effective Date
The rule provides for a 180-day implementation period, so the new forms will become effective and apply to all reports filed on or after June 21, 2021. Implementation will include training by the USTP for members of the bankruptcy community as well as coordination with the courts and other stakeholders. In addition, the USTP will provide, at no cost, PDF fillable versions of the reports on its website and will provide bankruptcy software vendors with the underlying technical specifications for the reports so they will have the ability to offer software to report filers in the future.
To facilitate outreach on the new requirements, the USTP has established a resource page on its website where interested stakeholders can access the rule, the report forms, and all related instructions. The resource page also will be used to keep the public informed of relevant implementation updates.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 90 field office locations. Learn more about the Program at https://www.justice.gov/ust.
U.S. Department of Justice Charges New Defendant in Lockerbie Terror Bombing CaseRead the Press Release
ALBANY, NEW YORK – Today the U.S. Department of Justice unsealed a criminal complaint charging Libyan citizen Abu Agila Mohhamad Masud for his role in building the bomb that destroyed Pan Am Flight 103 and resulted in the murder of 270 people, announced United States Attorney General William Barr.
The victims who perished in the bombing of Pan Am Flight 103 over Scotland on December 21, 1988 totaled 259 passengers and air crew, along with 11 residents of the village of Lockerbie. Thirty-five of the passengers who lost their lives were Syracuse University Students returning home from study abroad programs, and several others had ties to upstate New York.
“We have a special responsibility to support the families of loved ones who lost their lives in this cowardly and vicious act of terrorism,” said Antoinette T. Bacon, Acting United States Attorney for the Northern District of New York. “Because so many were students from Syracuse University, or people with close ties to this district, we will provide support and assistance to their loved ones as the case moves forward in United States District Court for the District of Columbia. Our office will work closely with the Department of Justice, the United States Attorney’s Office for the District of Columbia, and the FBI, to be a resource for them in the days ahead. Our commitment to do so endures beyond the passing of years.”
U.S. Department of Justice Recognizes Colorado Task Force with National Achievement Award in Support of Project Safe NeighborhoodsRead the Press Release
DENVER – United States Attorney Jason Dunn presented a Colorado law enforcement task force with national recognition from the Department of Justice’s Project Safe Neighborhoods (PSN) program. Colorado’s Regional Anti Violence Enforcement Network (RAVEN) is a multi-agency task force from 13 different federal, state, and local law enforcement agencies who received a national achievement award for Outstanding Partnership/Task Force from the Department of Justice. U.S. Attorney Jason Dunn presented the award to task force leaders at the Aurora City Council Chamber this afternoon.
“RAVEN is model program,” said U.S. Attorney Jason Dunn. “It is part of the gold standard in law enforcement relationships that is the hallmark of Colorado law enforcement. This is making a real difference to our communities.”
RAVEN was recognized for its outstanding work in support of the PSN Program, which has brought important results to the Denver Metropolitan Area. Thanks to the work of the task force, 122 violent offenders were prosecuted in 2019, and another 147 violent offenders were prosecuted this past year.
RAVEN task force members come from the ATF, the Aurora Police Department, the Denver Police Department, the Arapahoe County Sheriff’s Office, the Douglas County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Lakewood Police Department, the Denver District Attorney’s office, the Colorado Department of Corrections, the Rocky Mountain HIDTA, HSI, the U.S. Marshals Service, and the United States Attorney’s Office.
Revitalized in 2017, PSN is a critical piece of the Department’s crime reduction efforts. PSN has focused on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
###
Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNews
Sign up for news releases [email protected]
U.S. Attorney’s Office Announces Violent Crime Enforcement Blitz in Jefferson CountyRead the Press Release
BEAUMONT, Texas – U.S. Attorney Stephen J. Cox announced today his office is aggressively targeting gun crime violators in Jefferson County, Texas.
The United States Attorney’s Office for the Eastern District of Texas has announced that it will take an aggressive and collaborative approach to prosecuting violent crime in Jefferson County. This announcement comes after a steady increase in gun crime throughout Jefferson County, including armed robberies, carjackings, felons in possession of firearms, and individuals possessing firearms during crimes of violence. To accomplish its goal of eradicating gun violence in Jefferson County, EDTX has recently designated one of its senior prosecutors to coordinate the efforts of local and federal law enforcement. This senior attorney will also personally handle the resulting cases.
This initiative has already produced results for the people of Southeast Texas. Today, 23-year-old Derrick Gloude of Beaumont appeared before United States Magistrate Judge Keith Giblin on charges of Hobbs Act robbery and brandishing a firearm during a crime of violence. Gloude is accused of robbing seven different stores in Beaumont at gunpoint with a purple-colored gun, doing so from November 9 through November 16, 2020. He was ordered detained in federal custody pending trial. Earlier this month, 24-year-old Tremaurice Arthur Randall of Beaumont, was sentenced to 114 months in federal prison for carjacking and brandishing a firearm during a crime of violence.
“An aggressive approach to violent crime is, and remains, a priority for both the Department of Justice and the Eastern District of Texas,” said U.S. Attorney Stephen Cox. “If you are a felon in possession of a firearm, or if you use a firearm to commit a violent offense, our office will use all available resources to bring you to justice.”
This initiative is a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
###
U.S. Attorney’s Bowling Green Office Continues to Expand Ability to Protect Southcentral KentuckyRead the Press Release
BOWLING GREEN, Ky. – United States Attorney Russell Coleman is today announcing his appointment of Michelle Buchanan as Legal Assistant to the U.S. Attorney’s Bowling Green Branch Office, the first time such administrative staff have ever been assigned to Bowling Green.
“We are serious about striving to better protect families in Bowling Green and the surrounding counties,” said U.S. Attorney Russell Coleman. “Folks in Southcentral Kentucky will be well-served by the addition of Ms. Buchanan to be the administrative infrastructure to our expanded federal prosecution efforts.”
Buchanan becomes the third full-time employee assigned to the recently staffed United States Attorney’s Bowling Green Branch Office. She will be instrumental in the day-to-day functioning of the office as she assists two full-time federal prosecutors with their expanding docket of investigations and cases.
With a long history working with prosecutors and private attorneys across Kentucky and Indiana, including her most recent position with the law firm of Cole and Moore, PSC, in Bowling Green, Buchanan brings a wealth of knowledge and practical experience in litigation support.
Opening the full-time staffed office in February 2020 was a lengthy administrative process, requiring approval from the U.S. Department of Justice in Washington, DC, and ultimately Congress. Historically the unstaffed courthouse office has been used by federal prosecutors making the two hour commute from the U.S. Attorney’s Office in Louisville. Having full-time federal prosecutors in Bowling Green that live in the community is paying dividends by fostering deeper working relationships with local law enforcement and state prosecutors. The result - better outcomes for the citizens of the Southcentral Kentucky region by mitigating the threat of increased criminal activity to include drug trafficking, child exploitation, and COVID related fraud.
Two RGV woman sentenced for involvement in meth conspiracyRead the Press Release
McALLEN, Texas – Two local women have been ordered to federal prison following their convictions of conspiring with each other to import approximately 50 kilograms of 99% pure meth from Mexico, announced U.S. Attorney Ryan K. Patrick.
Helen Garza and Herminia Cantu-Garcia, both 43 and of Rio Grande City and Roma, respectively, pleaded guilty in late February.
Today, U.S. District Judge Randy Crane imposed a 78-month sentence for both women to be immediately followed by three years of supervised release.
The women planned to import the narcotics Dec. 4, 2019. On that date, Garza drove a car from Mexico and attempted to enter the United States through the Roma Port of Entry. Authorities inspected the vehicle and found hidden compartments within its tires. Upon further examination, they ultimately found multiple bundles containing 50 kilograms of meth with a value of approximately $170,000.
Garza admitted she knew there were drugs in the car.
Further investigation revealed Cantu-Garcia had coordinated the drug trafficking with Garza and other individuals.
“The sentencing of Garza and Cantu-Garcia sends a clear message regarding the serious consequences for those who engage in criminal activity,” said Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “The vast scope of this criminal scheme would have had a devastating effect on the citizens of south Texas. HSI along with our law enforcement partners will continue to seek out and bring justice to those involved in the illicit drug trade.”
Both women have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with assistance from Border Patrol and Customs and Border Protection. Assistant U.S. Attorney Kristina Pekkala prosecuted the case.
Two Passaic County Men Sentenced for Roles in Narcotics ConspiracyRead the Press Release
NEWARK, N.J. – Two Paterson, New Jersey, men were sentenced today for their roles in a conspiracy to distribute controlled substances, U.S. Attorney Craig Carpenito announced.
Dwayne Northern, a/k/a “Black,” a/k/a “D Black,” 35, was sentenced to 51 months in prison for conspiring to distribute heroin and distributing heroin and Isaiah Hargrove, 21, was sentenced to 40 months in prison for conspiring to distribute 40 grams or more of fentanyl and 100 grams or more of heroin, and to distributing a quantity of fentanyl and heroin.
Northern previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to distribute and possess with the intent to distribute heroin and knowingly and intentionally distributing heroin. Hargrove previously pleaded guilty before Judge Martinotti to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl and knowingly and intentionally distributing heroin and fentanyl. Judge Martinotti imposed the sentences by videoconference today.
According to documents filed in this case and statements made in court:
The defendants and their conspirators are all members and associates of the 230 Boys street gang, which operates primarily in and around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through investigative techniques, including numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement officers determined that from September 2018 through Oct. 1, 2019, the defendants and others conspired to distribute narcotics, to include heroin and fentanyl.
In addition to the prison term, Judge Martinotti sentenced Northern to three years of supervised release and sentenced Hargrove to two years of supervised release.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Two Owners of New York Pharmacies Charged in a $30 Million COVID-19 Health Care Fraud and Money Laundering CaseRead the Press Release
The owners of over a dozen New York-area pharmacies were charged in an indictment unsealed today for their roles in a $30 million health care fraud and money laundering scheme, in which they exploited emergency codes and edits in the Medicare system that went into effect due to the COVID-19 pandemic in order to submit fraudulent claims for expensive cancer drugs that were never provided, ordered, or authorized by medical professionals.
Peter Khaim, 40, and Arkadiy Khaimov, 37, both of Forest Hills, New York, each were charged with one count of conspiracy to commit health care fraud and wire fraud, and one count of conspiracy to commit money laundering. Khaim was separately charged with two counts of concealment money laundering and one count of aggravated identity theft. Khaimov was separately charged with two counts of concealment money laundering.
“These defendants allegedly lined their own pockets by exploiting Medicare flexibilities that were designed to ensure that patients obtained access to needed medications during the COVID-19 crisis,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Together with our law enforcement partners, the Criminal Division is working to aggressively identify, investigate, and prosecute scammers who seek to take advantage of the COVID-19 crisis to defraud our public health care programs.”
“As alleged in the indictment, the defendants manipulated information in over a dozen pharmacies to defraud the Medicare program, including by taking advantage of systems that were intended to assist patients during the COVID-19 pandemic, and then went to great lengths to hide their ill-gotten gains through a network of sham companies,” said Acting U.S. Attorney Set D. DuCharme of the Eastern District of New York. “This office and our law enforcement partners are committed to holding accountable those who seek to enrich themselves at the expense of vital taxpayer-funded health care programs upon which so many rely.”
“We allege Mr. Khaim and Khaimov used the COVID-19 pandemic as cover to exploit changes in the Medicare system,” said Acting Director in Charge William F. Sweeney Jr of the FBI’s New York Field Office. “The changes to this program, funded by taxpayers, were put in place to help fellow citizens obtain needed medications during the pandemic, not line the pockets of fraudsters. Those who attempt to illegally profit from our public funded healthcare programs should remember taxpayers also fund courts and jails, and behavior like the type announced today will be met with swift action from the FBI and our law enforcement partners. If you are aware of frauds like the one announced today, please contact us at 1-800-CALL-FBI.”
“Fraudsters who target the Federal health care system attempt to undermine the integrity of programs that serve millions of individuals. When they leverage a public health emergency to perpetrate schemes, their wanton disregard for the programs and beneficiaries is glaringly clear,” said Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We are responding aggressively with our law enforcement partners to pursue bad actors and to warn the public about these ongoing scams.”
“The defendants allegedly carried out a $30 million health care fraud and money laundering scheme, siphoning funds meant for patients during the COVID-19 pandemic,” said Special Agent in Charge Jonathan D. Larsen of IRS-Criminal Investigation (IRS-CI). “While Americans across the country are in dire need of medical and financial assistance, the defendants allegedly used the stolen proceeds to purchase real estate and luxury items. IRS-CI and our law enforcement partners will continue to work tirelessly to expose COVID-19 schemes and bring those responsible to justice.”
“This indictment describes allegations of crimes that are especially egregious and caused significant harm to the programs designed to protect the most medically vulnerable, jeopardizing the health of our Medicare system and then using our nation’s financial system to launder proceeds of the fraud,” said Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG). “We appreciate the cooperation of our fellow law enforcement partners as we work to identify and investigate fraud of this type.”
According to the indictment, the defendants used COVID-19 emergency override billing codes in order to submit fraudulent claims to Medicare, for which they were allegedly paid over $30 million for expensive cancer medication Targretin Gel 1% that, in fact, never was purchased by the pharmacies, prescribed by physicians, or dispensed to patients, often during periods when pharmacies were non-operational, and using doctors’ names on prescriptions without their permission.
The indictment alleges that the defendants acquired control over dozens of New York pharmacies by paying others to pose as the owners of the pharmacies and hiring pharmacists to pretend to be supervising pharmacists at the pharmacies, for the purpose of obtaining pharmacy licenses and insurance plan credentialing. As the effects of the COVID-19 pandemic began to be felt in the United States, the defendants used the COVID-19 pandemic as an opportunity to capitalize on a national emergency for their own financial gain by using the COVID-19 “emergency override” billing codes to submit fraudulent claims for Targretin Gel 1%, which has an average wholesale price of approximately $34,000 for each 60 gram tube.
The indictment also alleges that, with the proceeds of the fraud, the defendants engaged in a complex money laundering conspiracy where they created sham pharmacy wholesale companies, which they named after pre-existing pharmacy wholesalers, and fabricated invoices to make it appear that funds transferred from the pharmacies to the sham pharmacy wholesale companies were for legitimate pharmaceutical drug purchases.
In the first phase of the money laundering conspiracy, the defendants conspired with an international money launderer who arranged for funds to be wired from the sham pharmacy wholesale companies to companies in China for distribution to individuals in Uzbekistan. In exchange, the defendants received cash provided by members of the Uzbekistani immigrant community to an unlicensed money transfer business for remittance to their relatives in Uzbekistan, minus a commission that was deducted by the money launderer.
In the second phase of the money laundering conspiracy, when the amount of fraudulent proceeds exceeded the amount of cash available in the Uzbekistani immigrant community, the defendants directed the international money launderer to transfer funds back from the sham wholesale companies to the defendants, their relatives, or their designess, in the form of certified cashier’s checks and bags of cash that were dropped at their house in the middle of the night. The defendants used the proceeds of the scheme to purchase real estate and other luxury items.
A federal criminal indictment is merely an accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HHS-OIG’s New York Field Office; the FBI’s New York Field Office; the IRS-CI’s New York Field Office; and the FDIC-OIG investigated the case. Assistant Chief Jacob Foster of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force and Trial Attorney Andrew Estes and Assistant Chief Brendan Stewart of the Fraud Section’s Brooklyn Strike Force are prosecuting the case. Former Fraud Section Trial Attorney Patrick Mott previously worked on the investigation.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Owners of New York Pharmacies Charged in $30 Million Covid-19 Health Care Fraud and Money Laundering SchemeRead the Press Release
BROOKLYN, NY – An indictment was unsealed in federal court in Brooklyn today charging the two owners of over a dozen pharmacies in New York City and on Long Island, for their roles in a $30 million health care fraud and money laundering scheme in which they exploited emergency codes and edits in the Medicare system that went into effect due to the COVID-19 pandemic in order to submit fraudulent claims for expensive cancer drugs that were never provided, ordered or authorized by medical professionals. Peter Khaim and Arkadiy Khaimov are charged with one count of conspiracy to commit health care fraud and wire fraud, and one count of conspiracy to commit money laundering. Khaim was separately charged with two counts of concealment money laundering and one count of aggravated identity theft. Khaimov was separately charged with two counts of concealment money laundering. The defendants were arrested this morning and will be arraigned this afternoon before Magistrate Judge Vera M. Scanlon.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; Brian Rabbitt, Acting Assistant Attorney General of the Justice Department’s Criminal Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Scott Lampert, Special Agent-in-Charge, Health and Human Services-Office of Inspector General, New York Region (HHS-OIG); Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI); and Patricia Tarasca, Special Agent-in-Charge, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), announced the arrests and indictment.
“As alleged in the indictment, the defendants manipulated information in over a dozen pharmacies to defraud the Medicare program, including by taking advantage of systems that were intended to assist patients during the COVID-19 pandemic, and then went to great lengths to hide their ill-gotten gains through a network of sham companies,” stated Acting United States Attorney DuCharme. “This Office and our law enforcement partners are committed to holding accountable those who seek to enrich themselves at the expense of vital taxpayer-funded health care programs upon which so many rely.”
“These defendants allegedly lined their own pockets by exploiting Medicare flexibilities that were designed to ensure that patients obtained access to needed medications during the COVID-19 crisis,” stated Acting Assistant Attorney General Rabbitt. “Together with our law enforcement partners, the Criminal Division is working to aggressively identify, investigate and prosecute scammers who seek to take advantage of the COVID-19 crisis to defraud our public health care programs.”
“We allege Mr. Khaim and Mr. Khaimov used the COVID-19 pandemic as cover to exploit changes in the Medicare system,” stated FBI Assistant Director-in-Charge Sweeney. “The changes to this program, funded by taxpayers, were put in place to help fellow citizens obtain needed medications during the pandemic, not line the pockets of fraudsters. Those who attempt to illegally profit from our public funded healthcare programs should remember that taxpayers also fund courts and jails, and behavior like the type announced today will be met with swift action from the FBI and our law enforcement partners. If you are aware of frauds like the one announced today, please contact us at 1-800-CALL-FBI.”
“Fraudsters who target the Federal health care system attempt to undermine the integrity of programs that serve millions of individuals. When they leverage a public health emergency to perpetrate schemes, their wanton disregard for the programs and beneficiaries is glaringly clear,” stated HHS-OIG Special Agent-in-Charge Lampert. “We are responding aggressively with our law enforcement partners to pursue bad actors and to warn the public about these ongoing scams.”
“The defendants allegedly carried out a $30 million health care fraud and money laundering scheme, siphoning funds meant for patients during the COVID-19 pandemic,” stated IRS-CI Special Agent-in-Charge Larsen. “While Americans across the country are in dire need of medical and financial assistance, the defendants allegedly used the stolen proceeds to purchase real estate and luxury items. IRS-CI and our law enforcement partners will continue to work tirelessly to expose COVID-19 schemes and bring those responsible to justice.”
“This indictment describes allegations of crimes that are especially egregious and caused significant harm to the programs designed to protect the most medically vulnerable, jeopardizing the health of our Medicare system and then using our nation’s financial system to launder proceeds of the fraud,” stated FDIC-OIG Special Agent-in-Charge Tarasca. “We appreciate the cooperation of our fellow law enforcement partners as we work to identify and investigate fraud of this type.”
According to the indictment, the defendants used COVID-19 emergency override billing codes in order to submit fraudulent claims to Medicare, for which they were paid over $30 million for cancer medication Targretin Gel 1% including for claims where the medication never was purchased by the pharmacies, prescribed by physicians or dispensed to patients – often during periods when pharmacies were non-operational – and using doctors’ names on prescriptions without their permission. The defendants allegedly acquired control over more than a dozen New York pharmacies by paying others to pose as the owners of the pharmacies and hiring pharmacists to pretend to be supervising pharmacists at the pharmacies for the purpose of obtaining pharmacy licenses. Targretin Gel 1% has an average wholesale price of approximately $34,000 for each 60 gram tube.
The indictment also alleges that with the proceeds of the fraud, the defendants engaged in a money laundering conspiracy by creating sham pharmacy wholesale companies which they named after pre-existing pharmacy wholesalers, and fabricated references to invoices to make it appear that funds transferred from the pharmacies to the sham pharmacy wholesale companies were for legitimate pharmaceutical drug purchases. In the first phase of this conspiracy, the defendants conspired with an international money launderer who arranged for funds to be wired from the sham pharmacy wholesale companies to companies in China for distribution to individuals in Uzbekistan. In exchange, the defendants received cash from an unlicensed money transfer business, minus a commission that was deducted by the money launderer. In the second phase of this conspiracy, when the fraudulent proceeds exceeded the amount of cash available, the defendants caused others to transfer funds back from the sham wholesale companies to the defendants, their relatives, or their designees, in the form of certified cashier’s checks and cash that was dropped off at their residences in the middle of the night. The defendants used the proceeds of the scheme to purchase real estate and luxury items.
This case was investigated by HHS-OIG’s New York Field Office, the FBI’s New York Field Office, the IRS-CI’s New York Field Office and the FDIC. It is being handled by the Medicare Fraud Strike Force under the supervision of the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Assistant Chief Jacob Foster of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force and Trial Attorney Andrew Estes of the Fraud Section’s Brooklyn Strike Force are in charge of the prosecution. Former Fraud Section Trial Attorney Patrick Mott previously worked on the investigation.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The Defendants:
PETER KHAIM
Age: 40
Forest Hills, New YorkARKADIY KHAIMOV
Age: 37
Forest Hills, New YorkEastern District Docket No.: 20-CR-580 (AMD)
Two Men Charged in Conspiracy to Steal Computer Equipment from Chicago CompanyRead the Press Release
CHICAGO —An employee of a Chicago company conspired with a New Jersey man to steal computer equipment from the company and sell it to businesses in California and Texas, according to charges in a federal indictment.
DONALD WILSON worked for the Chicago company as a data center engineer. From 2015 to 2018, Wilson conspired with IVAN SIERRA to steal computer servers, hard drives, and other information technology equipment from the company’s facilities in Chicago and Secaucus, N.J., the indictment states. Sierra then worked to sell the stolen equipment to businesses in Chatsworth, Calif., and Stafford, Texas, for a total of more than $500,000 the indictment states.
The indictment was returned Thursday in federal court in Chicago. It charges Wilson, 42, of Carol Stream, Ill., and Sierra, 38, of Lincroft, N.J., with one count of conspiracy to transport stolen goods, and two counts of transportation of stolen goods. Arraignments have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney John Mitchell.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The conspiracy count is punishable by a maximum sentence of five years in federal prison, while each transportation count carries a maximum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Two Defendants in Macon's "Get Dat Money" Meth Ring Plead GuiltyRead the Press Release
MACON, Ga. – Two defendants involved in Macon’s “Get Dat Money” methamphetamine drug distribution organization entered guilty pleas in federal court this morning, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Tabitha Whitehead, 36, of Macon, pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine, and Jacobi Jones, Sr., 35, of Macon, pleaded guilty to one count of misprision of felony before U.S. District Judge Tilman E. “Tripp” Self, III. Whitehead faces a maximum of twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000. Jones faces a maximum of three years imprisonment, to be followed by one year of supervised release, and a maximum fine of $250,000. They are scheduled to be sentenced on May 4, 2021 in U.S. District Court, Macon, along with the following co-conspirators who have entered guilty pleas:
Kelvin D. Carswell, aka “K-9,” “Nine,” “Kinineso Harlem Carswell,” “9ne Oharlem,” “Kninepunkin KinGcarswell,” 40, of Macon, pleaded guilty to one count conspiracy to possess with the intent to distribute methamphetamine on December 15, and faces a maximum twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000;
Quateshia Carswell, 27, of Macon, pleaded guilty to one count conspiracy to possess with the intent to distribute methamphetamine on December 1, and faces a maximum twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000;
Davan Randolph, 49, of Macon, pleaded guilty to possession with intent to distribute methamphetamine on December 15, and faces a maximum twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000;
Terrico Wade, 40, of Macon, pleaded guilty to distribution of methamphetamine on December 15, and faces a maximum twenty years imprisonment, to be followed by at least three years of supervised release, and a maximum fine of $1,000,000;
Jahmi Booker, 38, of Macon, pleaded guilty to use of communication facility on December 15, and faces a maximum of four years imprisonment, to be followed by one year of supervised release, and a maximum fine of $250,000;
Kelly Jones, 38, of Macon, pleaded guilty to use of communication facility on December 15, and faces a maximum of four years in prison, to be followed by one year of supervised release, and a maximum fine of $250,000;
Kewaunis King, 31, of Macon, pleaded guilty to use of communication facility on December 15, and faces a maximum of four years imprisonment, to be followed by one year of supervised release, and a maximum fine of $250,000; and,
Trent Burton, 50, of Macon, pleaded guilty to use of communication facility on December 16, and faces a maximum of four years imprisonment, to be followed by one year of supervised release, and a maximum fine of $250,000.
Charges are pending against co-defendants Trayvion Burney, 26, of Macon, Chad Cummings, 37, of Macon, and Henry Flowers, 32, of Macon.
There is no parole in the federal system.
According to the stipulation of fact entered into court, in 2017, the Macon office of the FBI and the Bibb County Sheriff’s Office initiated their investigation of the Carswell drug trafficking organization known as “Get Dat Money” or “GDM,” that began as early as 2002. On May 30, 2012, Carswell was incarcerated by the Georgia Department of Corrections, serving a sentence for attempted carjacking with a maximum release date of October 12, 2026. In June 2017, the FBI received information that Carswell was selling drugs while incarcerated at the Washington State Prison in Sandersville, Georgia. A search of his prison cell recovered a cellular phone with multiple SD cards and a quantity of drugs. Investigators discovered Carswell was texting his co-conspirators explicit instructions via his contraband cell phone to facilitate the distribution of methamphetamine, heroin and crack cocaine from prison. The drugs, once obtained, were sold from a residence Carswell and his co-conspirators referred to as “The Mansion” located at 373 Fulton Street in Macon. Carswell’s co-conspirators would sell drugs out of “The Mansion” at his direction. Drugs were also sold by distributors working at the behest of Carswell, at multiple motels located in Macon. Throughout the course of the conspiracy, Quateshia Carswell obtained more than 10,000 grams of methamphetamine for distribution at Kelvin Carswell’s direction.
The investigation was conducted by the FBI and the Bibb County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Steven Ouzts. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Two Defendants Arrested Following Armed Home Invasion and KidnappingRead the Press Release
FORT LAUDERDALE – On December 16-17, 2020, Kejuan Brandon Campbell, 26, Tamarac, Florida, and Dionte Alexander-Wilcox, 24, Miramar, Florida, were arrested for kidnapping and conspiracy to kidnap pursuant to a criminal complaint, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Robert Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to the criminal complaint, Campbell, Alexander-Wilcox, and another individual forcefully gained entry into the residence of the two victims, brandishing firearms and threatening to kill them if they did not provide them with twenty thousand dollars ($20,000.00) in United States currency. After multiple failed attempts to obtain the money through Cash App, Campbell forced the female to travel with him to multiple businesses in order to cash checks or withdraw money from the victim’s debit card; however, when Campbell could not get the requisite amount of money, he, Alexander-Wilcox, and the other individual spent the night at the victims’ residence, eating their food and drinking their liquor. During the evening, Alexander-Wilcox sexually assaulted one of the victims at gunpoint. The next day, after forcing the victims to increase their withdrawal limit, Campbell took one of the victims to multiple banks to withdraw over $20,000.00 in cash while Alexander-Wilcox and the other individual remained at the victims’ residence and held the other victim at gunpoint. After obtaining the money, Campbell, Alexander-Wilcox, and the other individual departed from the scene and recorded themselves counting the large stacks of money. During the course of its investigation, law enforcement recovered forensic evidence linking Campbell, Alexander-Wilcox, and the other individual to the scene of the home invasion, video surveillance and other documents of Campbell with one of the victims, and one of the firearms used during the home invasion through the use of trained canines.
The criminal complaint is only an allegation. Campbell and Alexander-Wilcox are innocent until such time that they are proven guilty. If convicted, both Campbell and Alexander-Wilcox face a maximum sentence of life imprisonment and a term of supervised release of up to 5 years.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI, the FBI Miami Violent Crime Task Force, ATF, Miramar Police Department, U.S. Marshal Service, Broward Sheriff’s Office and Lauderhill Police Department in this matter. This case is being prosecuted by Assistant U.S. Attorney Ajay Alexander.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-mj-06653.
###
Three Iowa Defendants Sentenced for Sex Trafficking ChildrenRead the Press Release
DES MOINES, Iowa – Three defendants who pleaded guilty to sex trafficking children were sentenced in December 2020 announced United States Attorney Marc Krickbaum. The cases were presided over by United States District Court Judge Stephanie M. Rose.
On December 7, 2020, Tommy Tate Collins of Cedar Rapids was sentenced to 210 months in prison following a guilty plea to one count of child sex trafficking. Collins admitted in his plea agreement that he trafficked a minor child, who was 15 and 16 years old at the time, by paying her for sex acts with money and drugs.
On December 18, 2020, Albert Kelly Price was sentenced to 348 months imprisonment. Price pleaded guilty to trafficking two minors and admitted to trafficking a total of three minors who were between 14 and 16 years old. Price paid all three minors for sex acts and used physical force on each minor. Price resided in Iowa City and North Liberty.
On December 21, 2020, Arrion Marcus West, Jr. of Iowa City was sentenced to 210 months imprisonment for trafficking two minors, who were 15 and 17 years old at the time of the offenses. West trafficked the minors by advertising them on escort websites, arranging prices and sex acts with customers, transporting them to engage in sex acts, and taking proceeds from the commercial sex acts. West also used physical violence towards one victim.
Co-defendants that were previously sentenced include Isaiah Patterson, sentenced to 144 months imprisonment in January 2020 for trafficking a 15 year old by posting advertisements of her for commercial sex acts, and Kendall Andrew Streb, who was sentenced in September 2020 to 268 months imprisonment for trafficking three minors and additional offenses.
“The defendants in these cases were buyers and sellers of children in our community,” stated Krickbaum. “They exploited vulnerable teenage girls for their own sexual gratification, and collectively they will serve many decades in federal prison. Federal law does not distinguish between ‘johns’ who will pay for sex with a minor, and pimps who offer minors for sex. Both groups are serious criminals, and we will treat them as such.”
Human trafficking is defined as a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Anyone who suspects human trafficking is occurring, be it a minor engaging in paid sex acts, or anyone being coerced into prostitution or labor, is urged to call the National Human Trafficking Hotline at 1-888-373-7888.
The case was investigated by the Iowa City Police Department, with assistance from the Johnson County Sheriff’s Office, the Iowa Department of Criminal Investigation, and the Coralville Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Texan admits to attempting to illegally take cash to MexicoRead the Press Release
McALLEN, Texas – A 36-year old resident of Edinburg has pleaded guilty to bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.
Sergio Guadalupe Sauceda-Saenz is a legal permanent resident (LPR) who was residing in Edinburg. On April 4, he attempted to leave the United States through the Hidalgo Port of entry in his vehicle. Authorities conducted an outbound inspection which led to the discovery of $571,497 in bulk U.S. currency in the spare tire.
Today, he admitted to evading currency reporting requirement by knowingly concealing more than $10,000 dollars. Sauceda-Saenz acknowledged knowing he was concealing the money and that it was illegal to transport the currency from the U.S. to Mexico unreported. As part of the plea agreement, he has agreed to forfeit his interest in the seized cash.
U.S. District Judge Ricardo H. Hinojosa accepted the plea and set sentencing for Feb. 10, 2021. At that time Sauceda-Saenz faces up to five years in federal prison along with a possible $250,000 maximum fine. He could also lose his status as an LPR.
Sauceda-Saenz will remain in custody pending sentencing.
It is not a crime to carry more than $10,000, but it is a federal offense not to declare currency or monetary instruments totaling $10,000 or more to law enforcement upon entry or exit from the U.S. or to conceal it with intent to evade reporting requirements.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation along with Customs and Border Protection. Assistant U.S. Attorney Frances Blake Land is prosecuting the case.
Sinclairville Woman Sentenced on Drug Conspiracy ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Tracy Griffin, 38, of Sinclairville, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, acetyl fentanyl, fentanyl, and crack cocaine, was sentenced to time served and two years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joshua A. Violanti, who handled the case, stated that in January 2019, the defendant and co-defendant Brandon Blackshear conspired to sell acetyl fentanyl, fentanyl, and crack cocaine. On January 2 and January 22, 2019, members of the Southern Tier Regional Drug Task Force conducted controlled purchases of crack cocaine from Griffin and Blackshear.
Brandon Blackshear was previously convicted and is awaiting sentencing.
The sentencing is the result of an investigation by the Bureau of Indian Affairs, under the direction of Jason Thompson, Associate Director of the Office of Justice Services; the Southern Regional Drug Task Force, under the direction of the Cattaraugus County Sheriff’s Office and Sheriff Timothy Whitcomb; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
# # # #
Saratoga Springs Man Charged with COVID-19 Relief Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Markhwan Berning, age 36, of Saratoga Springs, New York, was arraigned Friday on an indictment charging him with false representation of a social security number.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Michael C. Mikulka, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (DOL-OIG).
According to the indictment, between May and July 2020, Berning obtained unemployment insurance benefits, including newly created federal pandemic-related benefits, by falsely representing to the New York State Department of Labor a fake social security number as his own. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Berning faces a maximum of 5 years in prison, a term of supervised release of up to 3 years, and a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Berning appeared on Friday before United States Magistrate Judge Christian F. Hummel, and was ordered released with conditions.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. The CARES Act created, among other unemployment insurance benefits, a new temporary federal program called the Federal Pandemic Unemployment Compensation program (FPUC) that provided an additional $600 weekly benefit to those eligible for regular unemployment insurance benefits.
The case is being investigated by DOL-OIG, with assistance from the Federal Bureau of Investigation and New York State Department of Labor, Office of Special Investigations, and is being prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
This case is being investigated as part of the Department of Justice’s COVID Fraud Task Force. To learn more about the Department’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. The public is urged to report suspected fraud schemes related to COVID-19 to the National Center for Disaster Fraud (NCDF) hotline by phone at (1-866-720-5721) or via an online reporting form available at: www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.
Sacramento Man Charged with Possession with Intent to Distribute Fentanyl PillsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment Thursday against Sabian Quesada, 22, of Sacramento, charging him with possession with intent to distribute at least 40 grams of fentanyl, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Nov. 13, Quesada was found to be in possession of a significant number of counterfeit oxycodone hydrochloride pills containing fentanyl, a powerful synthetic opiate known to cause overdoses and death, even in small quantities.
This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento County Sheriff’s Office, and the Sacramento County District Attorney’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Quesada faces a maximum statutory penalty of 40 years in prison and a $5 million fine. In addition, the crime with which he is charged carries a statutory mandatory minimum of five years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Raleigh Man Sentenced to More Than 12 Years for Cocaine DistributionRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to 151 months in prison for one-count of Distribution of a Mixture and Substance Containing a Detectable Amount of Cocaine Base (Crack).
According to court documents, Kencheul Jacques, 37, pled guilty to the charge on July 30, 2020.
On June 14, 2017, an officer with the Raleigh Police Department (RPD), was conducting an ongoing drug investigation into street-level drug sales in the Bragg Street area. On the same day, the officer utilized a confidential informant (CI) to make a controlled purchase of crack cocaine from Jacques.
The CI walked to Bragg Street and saw several males near a convenience store. When the CI asked if anyone had anything, Jacques asked the CI what he/she wanted. The CI advised that he/she wanted $40 worth of crack cocaine.
Jacques then told the CI to follow him into the store, where Jacques produced a plastic bag and removed two crack cocaine rocks. Jacques handed the CI the crack cocaine in exchange for $40. Laboratory analysis confirmed that the substance was crack cocaine.
On July 3, 2019, Raleigh Police Department officers were again conducting surveillance of the Bragg Street area. They saw a man approach Jacques, who placed something behind a fire hydrant and then handed something to the man.
The officers stopped the man and found a small amount of crack cocaine in his wallet. Behind the fire hydrant, officers found a bag containing 10.17 grams of crack cocaine.
Jacques was determined to be a Career Offender based on his record of twelve prior convictions, including convictions for Selling Cocaine, Delivering Cocaine, and Possession with Intent to Sell or Deliver Cocaine.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation and the Raleigh Police Department investigated the case and Assistant U.S. Attorney Scott A. Lemmon prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00363-D.
###
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Raleigh Fentanyl and Cocaine Dealer SentencedRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to 114 months in prison for illegally possessing firearms, intending to distribute a myriad of narcotics, and possessing firearms to further his drug trafficking.
According to court documents, Laequan Chrishawn Sellers, 23, was named in a three-count Indictment filed in the Eastern District of North Carolina on November 20, 2019. Count 1 charged Possession With Intent to Distribute a Quantity of Marijuana, Cocaine, Cocaine Base (Crack), and Heroin in violation of 21 U.S.C. § 841(a)(1); count 2 charged Possession of a Firearm by a Felon, in violation of 18 U.S.C. § 922(g)(1) and 924; and count 3 charged Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i).
On May 24, 2019, the Raleigh Police Department (RPD) conducted a traffic stop on a vehicle operated by Sellers. When the officer approached Sellers’ vehicle, an odor of marijuana was detected coming from inside his vehicle. When the officer directed Sellers to place his vehicle in park, Sellers fled from the traffic stop and struck the officer’s left leg with his vehicle, which knocked the officer to the ground. The officer was not seriously injured and was able to limp back to his patrol vehicle and call for assistance. Shortly thereafter, additional officers responded and searched for Sellers.
Officers subsequently located Sellers, who was driving his vehicle recklessly, at a high rate of speed. Sellers ultimately crashed his vehicle into a residential lawn, exited his vehicle with a backpack, and fled on foot. He was apprehended a short distance later. A loaded 9mm pistol, $34,803 in U.S. currency and 0.3 gram of cocaine were located inside Sellers' backpack. Officers also seized 1.36 grams of marijuana, 8.57 grams of crack cocaine, 1.91 grams of a heroin and fentanyl mixture, and a digital scale from Sellers’ person and/or vehicle.
On July 26, 2019, the RPD attempted a traffic stop on a vehicle occupied by Sellers. The driver refused to stop the vehicle and fled from law enforcement, resulting in a vehicle pursuit. After a short pursuit, the vehicle came to a stop in a business parking lot and Sellers fled from the vehicle on foot, but was apprehended a short distance later. At the time of Sellers’ arrest, he possessed $1,555 in U.S. currency. Officers seized 66 bindles of suspected heroin4, 5.72 grams of marijuana, and $191 in U.S. currency from the vehicle.
Based on the preceding, a search warrant was obtained for the residence where Sellers was living. The RPD recovered $14,075 in U.S. currency, a loaded .22 caliber rifle, a loaded AR 5.56mm rifle with a drum magazine, a loaded .45 caliber handgun, a loaded .9mm handgun with an extended magazine, an SKS 7.62mm rifle, 3.68 grams of marijuana, 39.68 grams of heroin and fentanyl mixture, 31.61 grams of cocaine, and two digital scales.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant U.S. Attorney Daniel W. Smith prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00463-D.
###
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Queens Man Going to Prison for Assaulting A Federal OfficerRead 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 Adriano Roberto Nunez, 28, of Queens, NY, who was convicted of assaulting a federal officer and causing bodily injury, was sentenced to serve eight months in prison and eight months home confinement U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Caitlin M. Higgins, who handled the case, stated that on June 3, 2019, the defendant was among passengers on a bus traveling from Canada into the United States at the Peace Bridge Port of Entry. Nunez and other passengers exited the bus at a Customs and Border Patrol checkpoint in the United States for re-entry into the United States.
During a search of the defendant's belongings, a CBP officer found a bag containing gummy candies that gave off an odor consistent with marijuana. While one CBP officer performed a field test for the presence of THC, another officer asked Nunez to place his phone and passport on the table. The defendant placed his passport on the table, however, he did not place his phone on the table, instead Nunez manipulated the phone with his hands. As the CBP officer attempted to retrieve the phone from the defendant, the defendant resisted. After the officer successfully gained possession of the phone, Nunez fled into another area of the building, with officers chasing after him. The defendant fled to an area with no exit, and which point officers caught up with him. Nunez pushed and kicked at least one officer.
The sentencing is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
# # # #
Palmyra Man Pleads Guilty to Accessing Child PornographyRead the Press Release
BANGOR, Maine: A Palmyra man pleaded guilty today in federal court to one count of accessing child pornography with intent to view, U.S. Attorney Halsey B. Frank announced.
According to court records, from an unknown date until about April 3, 2019, Isaac Bissell, 29, accessed with intent to view multiple images of children under the age of 12 engaged in sexually explicit conduct. In December 2018, the National Center for Missing and Exploited Children received a tip that an internet user was uploading child pornography images to an internet search engine. These uploads were traced to Bissell’s home in Palmyra. During the execution of a search warrant at Bissell’s home, he admitted he had used the internet to search for and download child pornography images. A subsequent forensic review of his electronic devices revealed numerous such images.
Bissell faces a minimum of 10 years and maximum of 20 years in prison. He will also be subject to a fine of up to $250,000. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Homeland Security Investigations and the Maine State Police Computer Crimes Unit investigated the case.
Oakland Man Charged in One of Multiple Robberies with A Firearm of U.S. Mail CarriersRead the Press Release
OAKLAND - David Leveren Quinn has been charged in a federal criminal complaint with robbery affecting interstate commerce, announced United States Attorney David L. Anderson and United States Postal Inspection Service Inspector in Charge Rafael Nunez.
The criminal complaint alleges that between August 11, 2020, and September 25, 2020, Quinn, 31, of Oakland, committed at least six robberies or attempted robberies of United States Postal Service (USPS) letter carriers in East Oakland with one or more unknown conspirators. While the circumstances vary, the complaint alleges that in most of the robberies Quinn and one other person surveilled a USPS letter carrier and then parked near the letter carrier’s mail truck. Quinn or his co-conspirator would get out of their vehicle, confront the letter carrier, and take or attempt to take trays of mail and packages from the mail truck. In several of the robberies, Quinn or his co-conspirator carried, showed, or pointed a suspected firearm at the letter carrier during the robbery. The complaint alleges that Quinn committed the robberies, at least in part, to engage in identity theft, including by stealing unemployment benefits issued during the COVID-19 global pandemic.
The complaint specifically charges Quinn with a September 19, 2020, robbery of a USPS letter carrier near the corner of 66th Avenue and Avenal Avenue in Oakland. At around three in the afternoon, according to the complaint, a silver Infinity sedan, with its front license plate removed, parked near a letter carrier who was at the back of his mail truck retrieving mail. Quinn got out of the Infinity, approached the letter carrier, and placed a suspected firearm at the letter carrier’s right side and told him not to move. Quinn was joined by his crime partner, and they took mail trays from the mail truck and fled in the Infinity sedan.
According to the complaint, shortly after the robbery, surveillance footage from an ATM in Oakland shows Quinn using a California Employment and Development Department (EDD) debit card to withdraw $1,000 in cash. That debit card had been mailed to an address on the mail route of the letter carrier who Quinn had just robbed. The next day Quinn used the same prepaid debit card to purchase a Cadillac SUV that he used in a subsequent attempted robbery. A law enforcement search of Quinn’s phone showed that Quinn also tried to activate another EDD debit card that had been mailed to an address also on the mail route of the letter carrier that Quinn had robbed on September 19, 2020.
Quinn made his initial appearance in federal court today before United States Magistrate Judge Laurel Beeler. Quinn is in custody and his next scheduled appearance is at 10:30 am on December 22, 2020, before United States Magistrate Judge Beeler for a status hearing regarding his detention.
A complaint merely alleges that crimes have been committed, and Quinn is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Quinn faces a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss inflicted on victims, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Noah Stern is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kay Konopaske and Kathleen Turner. The prosecution is the result of an investigation by the United States Postal Inspection service and the Oakland Police Department.
Niagara Falls Man Going to Prison for 8 Years for Unlawfully Possessing FirearmsRead 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 Tywon Stephenson, 31, of Niagara Falls, NY, who was convicted of being an unlawful user of a controlled substance in possession of a firearm, was sentenced to serve 98 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that on April 24, 2017, law enforcement officers executed a state search warrant on the defendant and his residence on 17th Street in Niagara Falls. Officers had obtained video footage that was recorded in the stairway next to Stephenson’s residence showing the defendant holding a shotgun and a handgun on two separate occasions. During the execution of the search warrant, officers found the shotgun loaded with six 12-gauge shotgun shells, and the handgun. Officers also recovered a scale and a bag of marijuana.
The sentencing is the result of an investigation by the Niagara Falls Police Department, under the direction of Acting Superintendent John Faso, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito.
# # # #
Nevada Man Charged with Covid-Relief FraudRead the Press Release
LAS VEGAS, Nevada – A Nevada man was arraigned on December 18, 2020 for fraudulently obtaining approximately $1,662,170 from the Paycheck Protection Program (PPP) loan and the Economic Injury Disaster Loan (EIDL) program.
U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office, Special Agent in Charge Tara Sullivan of the Internal Revenue Service-Criminal Investigation (IRS-CI), and Special Agent in Charge Weston King of the Small Business Administration’s Office of the Inspector General (SBA-OIG) made the announcement.
Bryan Robinson, 37, of Henderson, Nevada, is charged in an indictment in the District of Nevada, with two counts of wire fraud and one count of engaging in transactions in unlawful proceeds. He appeared on December 18 before U.S. Magistrate Judge Cam Ferenbach in Las Vegas.
The indictment alleges that Robinson perpetrated a scheme to submit a fraudulent EIDL application to the SBA and a fraudulent PPP loan application to a financial technology company. The SBA guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES Act also authorizes the SBA to provide EIDL of up to $2 million to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.
According to the indictment, Robinson submitted two fraudulent applications in the name of ATeam LLC, which is a dance company, for: (1) a PPP loan for approximately $1,502,000; and (2) an EIDL for approximately $150,000. The loan applications represented that ATeam had 37 employees, significant payroll expenses, and substantial revenue. But ATeam in fact was a dance company and did not pay any wages.
Further, the indictment alleges that Robinson did not use the funds for payroll payments. Instead, he used the funds for personal expenses and transfers to other businesses.
The CARES Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, then EIDL funds cannot be used for the same purpose as the PPP funds.
A federal indictment complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI, IRS-CI, and SBA-OIG investigated the case. Trial Attorney Joseph McFarlane of the Department of Justice’s Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva of the U.S. Attorney’s Office for the District of Nevada are prosecuting the case.
Matthew Morgan Pleads Not Guilty to Bank LarcenyRead the Press Release
The United States Attorney for the District of Vermont announced that Matthew Morgan, 51, of Burlington, pleaded not guilty today in United States District Court in Burlington to a charge of bank larceny. U.S. Magistrate Judge John M. Conroy ordered that Morgan, who is currently serving an unrelated Vermont state sentence, be detained pending trial, which has not been scheduled.
On December 3, 2020, a federal grand jury in Burlington returned a one count indictment charging Morgan with stealing money and property worth more than $1000 from Citizens Bank, a federally-insured financial institution. The charge stems from the theft of an ATM machine from the University of Vermont campus last September. At the time of the theft, the ATM machine contained about $23,000 in cash. The indictment also seeks to forfeit a 2011 Jeep Patriot automobile, which allegedly was bought with proceeds of the ATM theft.
The United States Attorney emphasizes that the charge against Morgan is merely an accusation and that he is presumed innocent unless and until he is proven guilty.
If convicted, Morgan faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the University of Vermont Police Department and the Federal Bureau of Investigation.
Morgan is represented by Assistant Federal Defender Stephen Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150years
Massage Parlor Owner Sentenced on Federal Prostitution ChargeRead the Press Release
KANSAS CITY, KAN. - An Overland Park woman who operated massage parlors in Olathe and Leawood was sentenced today to serve five years of federal supervised release on an interstate prostitution charge, U.S. Attorney Stephen McAllister said. In addition, she was ordered to pay a $55,000 fine.
Chunqui Wu, 62, Overland Park, Kan., pleaded guilty to one count of transportation with intent to engage in illicit sexual conduct. Wu operated three massage parlors: Alpha Massage at 116 S. Clairborne, #A, in Olathe, Kan.; A Plus Massage at 527 N. Mur-Len Road, in Olathe, Kan.; and King Spa at 13104 State Line Road in Leawood, Kan.
Wu’s plea agreement says investigators worked with an undercover confidential source who contacted Wu and asked for a job working in Wu’s massage parlors. Wu made statements indicating she allowed her employees to perform sexual services for tips. Investigators working undercover confirmed that employees in Wu’s massage parlors were offering sexual services to customers.
Wu was arrested when she went to the Kansas City International airport in Kansas City, Mo., to meet the undercover confidential source and transport her back to Kansas to work in one of Wu’s massage parlors.
McAllister commended the Olathe Police Department, the Leawood Police Department, the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Las Vegas Man Faces Federal Arson Charges for Allegedly Setting Fire to A U.S. CourthouseRead the Press Release
LAS VEGAS, Nev. – A Las Vegas resident has been arrested and charged for allegedly setting fire to the Foley Federal Building and U.S. Courthouse, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (San Francisco Field Division), and U.S. Marshal Gary Schofield.
“Our office is heartened by the public’s help in identifying the defendant,” said U.S. Attorney Trutanich. “We’re likewise grateful for our law enforcement partners’ efforts to investigate this case, and we will continue working closely with them to hold accountable individuals who seek to damage or destroy public property, including symbols of justice such as federal courthouses.”
“ATF takes every act of violence, including arson, very seriously,” said Special Agent in Charge Gorman. “Arson poses a threat to the community, as the path of an intentionally set fire often leads to incredible destruction. We are thankful for the public response, which helped us identify the suspect.”
“Protecting the federal judiciary is a primary duty of the U.S. Marshals Service,” said Marshal Schofield. “We do so with the ongoing unified approach by law enforcement, as was demonstrated in this case.”
Marty Clark, 32, of Las Vegas, has been charged in a federal criminal complaint with one count of arson and one count of malicious damage to federal property. He made his initial appearance on December 18, 2020 before U.S. Magistrate Judge Cam Ferenbach, who scheduled a preliminary hearing before U.S. Magistrate Judge Elayna Youchah for January 4, 2021.
The criminal complaint alleges that, on November 7, 2020, Clark intentionally set fire to the Foley Federal Building and U.S. Courthouse, located in downtown Las Vegas. According to the complaint, at approximately 3:20 a.m., Clark poured gasoline on wood framing at the building’s front entrance and set fire to the framing.
After observing flames inside the courthouse lobby, a security officer exited the building and saw Clark outside carrying a gasoline can. The security officer ordered Clark to “stop,” and attempted to detain him. Clark refused, stating “it’s my right to protest.” The security officer then tried to stop Clark from fleeing the scene, which resulted in an altercation. During the altercation, Clark dropped the gasoline can he had been holding and his glasses flew off his face. Clark was able to get into his vehicle and drive away, abandoning the gasoline can and leaving his glasses. The security officer was able to take photographs of Clark and his vehicle as he drove off.
Clark was identified after law enforcement received a tip from the public, and a DNA match was identified based on a swab taken from the glasses Clark left at the courthouse. He was arrested on December 16, 2020. If convicted, Clark faces a statutory mandatory minimum sentence of five years in prison and a statutory maximum penalty of twenty years in prison.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case was investigated by ATF, Las Vegas Fire and Rescue, U.S. Marshals Service, FBI, Federal Protective Service, and the Las Vegas Metropolitan Police Department All-Hazard Regional Multi-Agency Response Section. Assistant U.S. Attorneys Lisa Cartier-Giroux and Stephanie Ihler are prosecuting the case.
###
Kotzebue Man Arrested for Sex Trafficking of a MinorRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced Wally Roy Carter, 61, of Kotzebue, Alaska, has been named in a federal complaint for sex trafficking of a minor. Carter was arrested on Thursday, Dec. 17, and was ordered detained.
The complaint alleges that Carter became the subject of a federal investigation last month, when the FBI received a tip alleging a minor had been sexually abused by Carter approximately 15 times over the course of three years, with the first instance occurring when the victim was just 10 years old. Carter allegedly gave the victim money after each instance of sexual abuse, and often gave her alcohol and marijuana before or after the sexual abuse. The complaint further alleges that the sexual abuse happened in Carter’s home, his vehicle and on one occasion, Carter took her by boat to a cabin, where the victim tried to escape from Carter at least five times.
If the public has any further information regarding Carter’s activities, please contact Anchorage FBI at (907) 276-4441.
If convicted, Carter faces a mandatory minimum sentence of 15 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) and Anchorage Police Department (APD) Task Force Officers investigated this case collectively as part of the FBI’s Child Exploitation and Human Trafficking Task Force, with assistance from the Alaska State Troopers (AST) and Kotzebue Police Department (KPD). This case is being prosecuted by Assistant U.S. Attorney Dan Doty.
“The U.S. Attorney’s Office is focused on protecting the citizens of rural Alaska, especially young people.” said U.S. Attorney Schroder, “With the additional prosecutors provided by Attorney General Barr after his visit to Alaska in June 2019, we are charging more cases in the remote areas of the state, fulfilling his admonition that all citizens deserve public safety protection.”
“The FBI is dedicated to ensuring the safety and security of Alaska’s youth, and today’s charges send a clear message that crimes against children, in both urban and rural Alaska, will never be tolerated,” said Robert Britt, Special Agent in Charge of the FBI Anchorage Field Office. “Our collective efforts to promote public safety in rural Alaska remain steadfast, and by using a multi-agency approach, the FBI will continue to investigate, disrupt, and hold accountable those who prey upon the children of our communities.”
The investigation is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Under the Rural Alaska Anti-Violence Enforcement Network (RAAVEN), the U.S. Attorney’s Office is increasing engagement, coordination, and action on public safety in Alaska Native communities.
The charges in the criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indictment Charges Pair with $2 Million Fraud SchemeRead the Press Release
PEORIA, Ill. – Two former employees of a Central Illinois boat and watercraft dealership have been charged with fraud in an indictment that was unsealed today when Jeffrey D. Gibbs, 55, of Farmer City, Ill., made his initial appearance in federal court in Peoria. An initial trial date has been scheduled on March 15, 2021. Gibbs was arrested on Dec. 18, 2020; he was released following today’s hearing with conditions, including location monitoring. A summons has been issued to Kara M. Wilkey, 45, of Maroa, Ill., to make her initial appearance on Jan. 12, 2021.
Mid Illinois Boats, Inc., doing business as Clinton Marine II, operated new and used boat dealerships in East Peoria and Weldon, Ill. The indictment alleges that Gibbs and Wilkey, former employees of Clinton Marine II, operated a multifaced fraud scheme that defrauded their employer, banks, and the dealerships’ customers of more than $2 million. The pair allegedly spent the money on their own automobiles, vacations, credit cards, utilities and shopping.
The indictment alleges that from January 2014 to July 2019, Gibbs and Wilkey used their positions with Clinton Marine II, which included management of day-to-day operations, to carry out their fraud scheme. The fraud allegedly included obtaining loans on fictitious boats and on false transactions; taking out loans using forged signatures; selling boats on behalf of customers but not paying off the customers loan or remitting payment to the seller; and, collecting payment for taxes, titles and fees, but failing to pay those expenses.
The charges are the result of investigation by the Federal Bureau of Investigation with the assistance of the DeWitt County Sheriff’s Office; the Illinois Department of Natural Resources; and, the Illinois Secretary of State. Assistant U.S. Attorney Douglas F. McMeyer is representing the government in the case prosecution.
If convicted, the statutory maximum penalty for each count of wire fraud (nine counts) and mail fraud (two counts) is up to 20 years in prison; the maximum penalty for each count of bank fraud (four counts) is up to 30 years in prison; and, each count of aggravated identity theft (three counts) carries a penalty of two years in prison and requires that at least two years must be served consecutive to any sentence imposed on any other count.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
BOSTON – A Honduran national pleaded guilty today in federal court in Worcester to illegally reentering the United States.
Milton Javier Cardona-Guevara, 34, pleaded guilty to one count of illegal re-entry into the United States after deportation. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 9, 2021. Cardona-Guevara was charged in November 2020.
On Aug. 13, 2006, Cardona-Guevara illegally entered the United States and was convicted of improper entry by an alien in August 2006. On Sept. 5, 2006, he was removed from the U.S. In 2008 and 2011, Cardona-Guevara was apprehended after illegally entering the United States and was deported. On Oct. 2, 2018, Cardona-Guevara was arrested in Worcester County for assault with a dangerous weapon. Cardona-Guevara admitted to immigration authorities that he had been deported three times previously. On Jan. 25, 2019, he was removed from the U.S. On Oct. 13, 2020, Cardona-Guevara was arrested in Worcester on an outstanding warrant for criminal charges and had been custody on state criminal charges until he was charged in this case.
The charging statute provides for a sentence of up to two years in prison, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Todd Lyons, Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
Grocery Store and Manager Plead Guilty to Hiring Undocumented Workers; Court Imposes $500,000 in Fines and PenaltiesRead the Press Release
Assistant U. S. Attorney Stephen H. Wong (619) 546-9464 and Jennifer McCullough 546-8773
NEWS RELEASE SUMMARY – December 21, 2020
SAN DIEGO – Zion Market and its former general manager, Timothy Moon, pleaded guilty in federal court today to knowingly hiring undocumented employees who were not authorized to work in the United States.
U.S. Magistrate Judge Michael S. Berg ordered Zion Market to pay a $500,000 fine plus special penalty assessments of $25,050. The court also ordered Moon to pay a $5,000 fine plus an additional $5,000 in special penalty assessments.
In the court-filed plea agreement, Zion Market admitted that between 2011 and 2019, about half of the market’s 100-person work force was not authorized to work in the United States, and that it had employed undocumented aliens as early as 2003, through as recently as 2019. Zion acknowledged that it realized a pecuniary gain of at least $500,000 by employing illegal aliens. Moon, the market’s manager, knew that the illegal aliens could not legally work in the United States, but hired and continued to employ the aliens as part of a pattern and practice of employing unauthorized aliens. Upon learning of the investigation, Zion took steps to comply with federal immigration and labor laws.
Under federal law, employers are required to verify the identity and employment eligibility of all individuals they hire, and to document that information using the Employment Eligibility Verification Form I-9. Homeland Security Investigations continues to focus on the criminal prosecution of employers who knowingly break the law and will continue to audit employers’ immigration forms, such as the Form I-9 that verifies employees’ authorization to work in the United States. Homeland Security Investigations will also employ civil fines to encourage compliance with the law. Worksite enforcement investigators help combat worker exploitation, illegal wages, child labor, and other crimes collateral to worksite enforcement.
“Federal labor and immigration laws protect American workers by requiring employers to hire only U.S. citizens and aliens who are authorized to work in the country,” said U.S. Attorney Robert Brewer. “Zion Market ignored those laws for over a decade, and today Zion and its general manager paid a high price for that conduct. We will continue to vigorously enforce immigration laws where we find employers engaging in a pattern or practice of hiring unauthorized individuals in reckless disregard of the law.” Brewer praised prosecutor Stephen Wong and agents with Homeland Security Investigations for their excellent work on this case.
“Today’s sentencing is an example of HSI’s commitment to the investigation of employers who knowingly break the law to exploit workers and conduct other illegal practices,” said Cardell Morant, HSI Special Agent in Charge for San Diego. “These investigations hold employers accountable by eliminating unfair advantages for companies that hire an illegal workforce, protecting jobs for those who are legally employed.”
DEFENDANTS Case Number 20-mj-3948-MSB
Zion Market Inc., 7655 Clairemont Mesa, Inc.
Timothy Moon Age: 41 San Diego, CA
SUMMARY OF CHARGES
Continuing to Employ Unauthorized Aliens – Title 8, U.S.C., Section 1324a(a)(2) and 1324(f)(1), a misdemeanor
Maximum penalty for an individual: Six months in prison and $5,000 fine
Maximum Penalty for an organization: Fine of $10,000 or not more than twice the gross pecuniary gain realized from the offense, whichever is greater
AGENCY
Homeland Security Investigations (HSI)
Government Contractor Admits Scheme to Inflate Costs on Federal Projects and Pays $11 Million to Resolve Criminal and Civil ProbesRead the Press Release
Schneider Electric Buildings Americas Inc. (Schneider Electric), a nationwide provider of electricity solutions for buildings and data centers with its principal place of business in Carrollton, Texas, will pay $11 million to resolve criminal and civil investigations relating to kickbacks and overcharges on eight federally-funded energy savings performance contracts (ESPCs), the Department of Justice announced today. Under the contracts, Schneider Electric was to install a variety of energy savings upgrades, such as solar panels, LED lighting, and insulation, in federal buildings.
As part of the criminal resolution with the U.S. Attorney’s Office for the District of Vermont (USAOVT), Schneider Electric admitted that it fraudulently charged the government nearly $1.7 million in design costs incurred on three ESPCs funded by the Department of the Navy (DON), General Services Administration (GSA), and Department of Agriculture (USDA) by disguising those costs and spreading them across un-related pricing components. Schneider Electric employees described this process as “burying” or “hiding” the costs. Schneider Electric specifically spread costs across various line items in these federal projects so that the agencies would pay the amounts without knowing they were design costs that Schneider Electric was prohibited from charging the government. Schneider Electric admitted that its conduct constituted wire fraud in violation of 18 U.S.C. § 1343. Schneider Electric executed a non-prosecution agreement related to this conduct and agreed to pay nearly $1.7 million in criminal forfeiture.
Schneider Electric further admitted that former convicted Senior Project Manager Bhaskar Patel solicited and received over $2.5 million in kickbacks from various subcontractors who worked on ESPCs issued by the DON, Coast Guard, GSA, USDA, and Department of Veterans Affairs (VA). Schneider Electric admitted that this conduct violated the Anti-Kickback Act, 41 U.S.C. § 8707.
Schneider Electric is required by its agreement with the USAOVT to cooperate fully in any and all matters relating to relevant conduct for a period of three years, to report to the USAOVT any evidence or allegation of a violation of U.S. fraud, anti-corruption, procurement integrity, or anti-kickback laws, to implement and comply with an updated corporate compliance program, and to report annually to the USAOVT on its remediation and implementation of its required compliance enhancements.
In the separate civil settlement announced today, Schneider Electric agreed to pay $9.3 million to resolve False Claims Act and Anti-Kickback Act liability for Patel’s kickback scheme and for including inflated estimates and improper costs in proposals, and overcharging federal agencies, under the eight ESPCs.
“ESPC projects can only be successful where contractors are forthright and honest with federal agencies,” said Acting Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will not tolerate attempts by contractors to mislead the government and line their own pockets at the expense of the very energy savings the government seeks to achieve.”
“These cases are complex and challenging, and I commend the dogged work of our Assistant U.S. Attorneys and their law enforcement agency partners to ensure that Schneider Electric’s conduct was brought to light and it was held to account,” said U.S. Attorney Christina E. Nolan. “I am proud that our small office not only successfully convicted Bhaskar Patel but went further and unraveled Schneider Electric’s broader criminal scheme of fraudulently inflating costs to boost its profits and steal from taxpayers. In reaching this resolution, we considered that Schneider Electric terminated two employees involved in the schemes and overhauled its compliance program. We also considered the shortcomings of Schneider Electric’s cooperation and its failure to timely accept responsibility.”
“Fraud is not a victimless crime,” said Michael Wiest, Special Agent in Charge of the Northeast Field Office of the Naval Criminal Investigative Service (NCIS). “It steals money from American taxpayers, damages the integrity of the Department of the Navy procurement process, degrades the readiness of the warfighter by compromising the quality of goods and services used to protect the nation, and squanders more money in the funding of criminal investigations which could have been avoided simply by individuals doing the right thing. NCIS will continue to work with our partner agencies to aggressively pursue those who perpetrate financial crimes.”
“Participation in Government contracts should not involve contractors and their employees seeking financial gain to the detriment of the U.S. Government,” said USDA Office of Inspector General (OIG) Special Agent-in-Charge Bethanne M. Dinkins. “Thanks to the hard work and tireless efforts of the investigative team, the interests and integrity of the United States and the procurement process throughout the government have been protected. The USDA Office of Inspector General appreciates the commitment of the Department of Justice and the cooperative efforts of our law enforcement partners. Our resources are well utilized when we work together to investigate those who unlawfully solicit and accept bribes and kickbacks and overcharge the U.S. Government. This resolution demonstrates that we are committed to holding contractors accountable when they choose to abuse the integrity of vital government programs designed to significantly reduce energy and operating costs and make progress toward meeting federal sustainability goals.”
“The GSA Office of Inspector General is committed to protecting the integrity of the GSA’s procurement process and programs,” said Joseph Dattoria, GSA-OIG Special Agent in Charge. “This resolution is a testament to that commitment and should serve as a warning to other contractors who may consider engaging in similar conduct. We appreciate the collaborative efforts of the DOJ and our other law enforcement partners.”
“VA OIG is committed to protecting the integrity of energy savings performance contracts awarded by VA and other federal agencies,” said VA OIG Special Agent in Charge Christopher Algieri, Northeast Field Office. “We appreciate the tireless efforts of the United States Attorney’s Office, the Civil Division, and our other law enforcement partners in rooting out this and other procurement fraud.”
The United States Attorney’s Office for the District of Vermont handled the criminal investigation and resolution. The civil investigation was jointly handled by the District of Vermont and the Civil Division’s Commercial Litigation Branch (Fraud Section). The investigation was supported by the Offices of Inspector General for the VA, USDA and GSA, and the NCIS.
Except for the conduct admitted in connection with the criminal resolution, the civil claims resolved by the settlement are allegations only, and there has been no determination of liability as to such civil claims.
Former U.S. Postal Service Carrier Pleads Guilty to Federal Charge in Maryland for Making False Statements to Obtain up to $62,690 in Disability CompensationRead the Press Release
Greenbelt, Maryland – Ronald S. Repass, age 57, of Poolesville, Maryland, pleaded guilty today to the federal charge of making false statements or fraud to obtain federal employees’ disability compensation. Repass admitted that he falsely claimed that he was unable to work, even though he had worked at various jobs between June 2016 and February 2019, for which he was paid.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Imari R. Niles of the U.S. Postal Service, Office of Inspector General (OIG); and Special Agent in Charge Derek Pickle, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General (OIG).
As stated in the indictment, the Department of Labor’s Office of Worker’s Compensation Programs (“OWCP”) administered major disability compensation programs which provided wage loss benefits, medical treatment, vocational rehabilitation, and other benefits for federal government employees who became disabled during the performance of their duties.
According to the indictment, beginning in October 1989, Repass was employed by the U.S. Postal Service at the Poolesville Post Office in Montgomery County, Maryland. Repass was a rural carrier on December 5, 2014, when he filed a workers’ compensation claim after he fell and hurt his right shoulder. OWCP granted his claim on February 11, 2015, for a “right rotator cuff tear” based on a finding that Repass was not able to perform any of the routine duties of his job. Repass began receiving benefits of approximately $3,227 per month on February 22, 2015.
The Department of Labor required disabled employees to annually sign and complete a form certifying that they had not worked for the past 15 months. The disabled employees were also required to immediately report any improvement in their medical condition or any part-time or full-time employment. In 2016, 2017, and 2018, Repass signed and submitted the form stating that he had not worked for any employer, nor was he self-employed or involved in a business enterprise, despite that fact that during those years Repass worked part-time as a snow plow driver, as a service advisor at an automotive repair shop, as a field supervisor for a home improvement company, as a plumber, and he installed window blinds and mowed lawns, all in exchange for compensation.
As a result of his false representations, the government contends that Repass received as much as $62,690.44 in Worker’s Compensation payments that he was not entitled to receive.
Repass faces a maximum sentence of five years for false statements or fraud to obtain federal employees’ compensation. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Paula Xinis has scheduled sentencing for March 29, 2021, at 9:00 a.m.
United States Attorney Robert K. Hur commended the U.S. Postal Service OIG and U.S. Department of Labor OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Hollis R. Weisman, who is prosecuting the case.
# # #
Former St. Albans Property Developer Sentenced to Prison for Wire FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Jeremy Fairbanks, 44, formerly of St. Albans, Vermont, was sentenced on December 18, 2020 upon his guilty plea to two counts of wire fraud: one stemming from his conduct in Vermont, and one relating to a subsequent fraud in Tennessee. Fairbanks was sentenced to 10 months of imprisonment to be followed by three years of supervised release, to run concurrently on both counts. U.S. District Judge Christina Reiss also ordered that Fairbanks pay restitution totaling $155,392. Fairbanks must surrender to the U.S. Bureau of Prisons to begin his sentence on April 15, 2021.
According to court records and testimony at his sentencing, Fairbanks devised a scheme through which he defrauded a lender based in northern New York in 2016. Fairbanks obtained construction financing from that lender of over $210,000 to build and sell a house in Swanton, Vermont. However, Fairbanks had to show his lender proof of construction progress to receive payments under their loan agreement. Accordingly, he provided the lender with photographs purporting to show a house and garage on his property. In fact, the property Fairbanks financed was—and remains—a vacant lot. Fairbanks’ photographs were later found to depict structures on other properties, which Fairbanks did not own. In one instance, Fairbanks altered a photograph to make it appear that a house and garage, which were in fact on two different lots, were next to each other on the property Fairbanks had financed.
In the spring of 2019, Fairbanks obtained a mortgage to purchase a home in Gray, Tennessee. In his application for that mortgage, Fairbanks misrepresented his financial condition by, among other things, concealing the $200,000 debt he still owed on his construction loan. Fairbanks agreed to sell his home in Tennessee and to forfeit the proceeds of the sale in connection with his guilty pleas and sentences in these cases.
U.S. Secret Service agents based in Vermont and Tennessee investigated the frauds. The United States Attorney also gratefully acknowledges the assistance of Assistant U.S. Attorneys Mac Heavener and Gretchen Mohr, and paralegal Stephanie Morris, of the United States Attorney’s Office for the Eastern District of Tennessee.
The United States is represented in this matter by Assistant U.S. Attorney Spencer Willig. The defendant is represented by Timothy C. Doherty, Jr, Esq.
Former Senior Libyan Intelligence Officer and Bomb-Maker for the Muamar Qaddafi Regime Charged for the December 21, 1988 Bombing of Pan Am Flight 103Read the Press Release
Today, Attorney General William Barr, Director of the FBI, Christopher Wray, Assistant Attorney General for National Security John Demers, and Acting U.S. Attorney for the District of Columbia, Michael Sherwin, announced new charges against a former Libyan intelligence operative, Abu Agela Mas’ud Kheir Al-Marimi, aka, “Hasan Abu Ojalya Ibrahim” (Masud), for his role in building the bomb that killed 270 individuals in the destruction of Pan Am Flight 103 over Lockerbie, Scotland on Dec. 21, 1988.
“I would like to publicly and personally express my deepest thanks to the Lord Advocate of Scotland, James Wolffe, QC, for the tireless efforts of his dedicated prosecutors from The Crown Office and investigators from Police Scotland. These charges are the product of decades of hard work by investigators and prosecutors who have remained resolute in their dogged pursuit of justice for our citizens, the citizens of the United Kingdom, and the citizens of the other 19 countries that were murdered by terrorists operating on behalf of the former Muamar Qaddafi regime when they attacked Pan Am Flight 103,” said William P. Barr, Attorney General of the United States. “As to all the victims and the families, we cannot take away your pain from your loss, but we can seek justice for you. Our message to other terrorists around the world is this – you will not succeed – if you attack Americans, no matter where you are, no matter how long it takes, you will be pursued to the ends of the earth until justice is done.”
“Today’s announcement should remind the world that when Americans are harmed, the FBI and the United States government will never stop pursuing justice for our citizens, no matter where that takes us, how long it takes us to get there, or how difficult the road might be,” said FBI Director Chris Wray. “Without the thoroughness and professionalism of our FBI personnel, the Department of Justice, our Scottish partners, and the people of Lockerbie, we never would have found the trail that led us to the men responsible for this attack. We will never forget the loved ones who were lost, and we remain committed to continuing our work to achieve justice for the victims and their families.”
“Today’s unsealing of criminal charges in the Pan Am 103 case is monumental on several fronts,” said Acting U.S. Attorney Michael R. Sherwin for the District of Columbia. “First, the criminal complaint against the alleged ‘bomb maker’ signifies that the work of federal prosecutors never ends, even after several decades, until all criminal actors are held accountable. In addition, these charges remind the public of the horrific effect that acts of terrorism continue to have on victims and their families. The bombing of Pan Am 103 was historic in that it was, until the 9/11 terrorist attacks, the largest terrorist attack on U.S. civilians in history. It also remains the deadliest terrorist attack in the history of the United Kingdom – for all of these reasons we will never forget and the D.C. United States Attorney’s Office will continue to seek justice for all of the Pan Am 103 victims and their loved ones.”
December 21, 1988
Pan Am Flight 103 exploded into pieces almost instantaneously when a bomb in the forward cargo area exploded over Lockerbie, Scotland, at 7:03 p.m. local time at an altitude of 31,000 feet after 38 minutes of flight. The plane had taken off from London-Heathrow and was en route to John F. Kennedy Airport in New York.
Citizens from 21 countries were killed, of that number 190 Americans perished, including 35 Syracuse University students as they were returning home to the United States for the holidays after a semester studying abroad. 43 victims were from the United Kingdom, including 11 residents of Lockerbie, Scotland, who perished on the ground as fiery debris from the falling aircraft destroyed an entire city block where homes had peacefully stood just minutes earlier. This international terrorist attack, planned by and executed by Libyan intelligence operatives, was considered the largest terrorist attack on both the United States and the United Kingdom before the terror attacks of Sept. 11, 2001.
Immediately after the disaster, Scottish and American law enforcement undertook a joint investigation that was unprecedented in its scope, and in November 1991, it led to criminal charges in both countries, charging two Libyan intelligence operatives, Abdel Baset Ali al-Megrahi (Megrahi) and Lamen Khalifa Fhimah (Fhimah) with their roles in the bombing.
The criminal complaint filed today charges Masud with destruction of an aircraft resulting in death, in violation of 18 U.S.C. § 32(a)(1) and (a)(2), as well as destruction of a vehicle by means of an explosive resulting in death, in violation of 18 U.S.C. § 844(i). The charges in criminal complaints are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Criminal Complaint Allegations
According to the affidavit in support of the criminal complaint, the External Security Organization (ESO) was the Libyan intelligence service through which Libya conducted acts of terrorism against other nations and repressed the activities of Libyan dissidents abroad. Masud worked in various capacities for the ESO, including as a technical expert in building explosive devices from approximately 1973 to 2011.
According to the affidavit, Masud participated in the “Lockerbie airplane bombing,” among other plots against the United States and the west, including but not limited to, the April 5, 1986, bombing of the LaBelle Discotheque in West Berlin, Germany. Two U.S. service members were killed in that attack and scores of others left seriously injured or permanently disabled.
Planning and Executing the Bombing of Pan Am Flight 103
According to the affidavit in support of the criminal complaint, in the winter of 1988, Masud was summoned by a Libyan intelligence official to meet at that official’s office in Tripoli, Libya, where he was directed to fly to Malta with a prepared suitcase. He did so, where he was met by Megrahi and Fhimah at the airport. After Masud spent approximately three or four days in the hotel, Megrahi and Fhimah instructed Masud to set the timer on the device in the suitcase for the following morning, so that the explosion would occur exactly eleven hours later.
According to the affidavit, the suitcase used by Masud was a medium-sized Samsonite suitcase that he used for traveling. Megrahi and Fhimah were both at the airport on the morning of Dec. 21, 1988, and Masud handed the suitcase to Fhimah after Fhimah gave him a signal to do so. Fhimah then placed the suitcase on the conveyor belt. Masud then left. He was given a boarding pass for a Libyan flight to Tripoli, which was to take off at 9:00 a.m.
Three or four days after returning to Libya, Masud and Megrahi met with a senior Libyan intelligence official, who thanked them for a successful operation. Approximately three months after that, Masud and Fhimah met with Qaddafi, and others, who thanked them for carrying out a great national duty against the Americans, and Qaddafi added that the operation was a total success.
Of the 270 lost in the bombing, 190 were Americans on the aircraft. Forty-three from the United Kingdom were lost, including eleven lives on the ground in Lockerbie. The remaining victims were from the following countries: Argentina, Belgium, Bolivia, Canada, France, Germany, Hungary, India, Ireland, Israel, Italy, Jamaica, Japan, Philippines, South Africa, Spain, Sweden, Switzerland, and Trinidad and Tobago. The Department of Justice expresses its profound appreciation to the Scottish government as well as its dedicated commitment to seeking justice for all the victims of the alleged crimes.
Investigative Team
The United States side of the joint investigative team is led by the FBI’s Washington Field Office, along with prosecutors from the National Security Section of the U.S. Attorney’s Office for the District of Columbia, and the Counterterrorism Section of the Justice Department’s National Security Division. There are many agents from the FBI and prosecutors from the Department who have worked on this case over the years.
Contact Information
Victims of this crime and their families can contact the Department of Justice via e-mail at [email protected], or by telephone at +1 (202) 252-7045.
Former Senior Libyan Intelligence Officer and Bomb-Maker for the Muamar Qaddafi Regime Charged for the December 21, 1988 Bombing of Pan Am Flight 103Read the Press Release
WASHINGTON - Today, Attorney General William Barr, Director of the FBI, Christopher Wray, Assistant Attorney General for National Security John Demers, and Acting U.S. Attorney for the District of Columbia, Michael Sherwin, announced new charges against a former Libyan intelligence operative, Abu Agela Mas’ud Kheir Al-Marimi, aka, “Hasan Abu Ojalya Ibrahim” (Masud), for his role in building the bomb that killed 270 individuals in the destruction of Pan Am Flight 103 over Lockerbie, Scotland on Dec. 21, 1988.
“I would like to publicly and personally express my deepest thanks to the Lord Advocate of Scotland, James Wolffe, QC, for the tireless efforts of his dedicated prosecutors from The Crown Office and investigators from Police Scotland. These charges are the product of decades of hard work by investigators and prosecutors who have remained resolute in their dogged pursuit of justice for our citizens, the citizens of the United Kingdom, and the citizens of the other 19 countries that were murdered by terrorists operating on behalf of the former Muamar Qaddafi regime when they attacked Pan Am Flight 103,” said William P. Barr, Attorney General of the United States. “As to all the victims and the families, we cannot take away your pain from your loss, but we can seek justice for you. Our message to other terrorists around the world is this – you will not succeed – if you attack Americans, no matter where you are, no matter how long it takes, you will be pursued to the ends of the earth until justice is done.”
“Today’s announcement should remind the world that when Americans are harmed, the FBI and the United States government will never stop pursuing justice for our citizens, no matter where that takes us, how long it takes us to get there, or how difficult the road might be,” said FBI Director Chris Wray. “Without the thoroughness and professionalism of our FBI personnel, the Department of Justice, our Scottish partners, and the people of Lockerbie, we never would have found the trail that led us to the men responsible for this attack. We will never forget the loved ones who were lost, and we remain committed to continuing our work to achieve justice for the victims and their families.”
“Today’s unsealing of criminal charges in the Pan Am 103 case is monumental on several fronts,” said Acting U.S. Attorney Michael R. Sherwin for the District of Columbia. “First, the criminal complaint against the alleged ‘bomb maker’ signifies that the work of federal prosecutors never ends, even after several decades, until all criminal actors are held accountable. In addition, these charges remind the public of the horrific effect that acts of terrorism continue to have on victims and their families. The bombing of Pan Am 103 was historic in that it was, until the 9/11 terrorist attacks, the largest terrorist attack on U.S. civilians in history. It also remains the deadliest terrorist attack in the history of the United Kingdom – for all of these reasons we will never forget and the D.C. United States Attorney’s Office will continue to seek justice for all of the Pan Am 103 victims and their loved ones.”
December 21, 1988
Pan Am Flight 103 exploded into pieces almost instantaneously when a bomb in the forward cargo area exploded over Lockerbie, Scotland, at 7:03 p.m. local time at an altitude of 31,000 feet after 38 minutes of flight. The plane had taken off from London-Heathrow and was en route to John F. Kennedy Airport in New York.
Citizens from 21 countries were killed, of that number 190 Americans perished, including 35 Syracuse University students as they were returning home to the United States for the holidays after a semester studying abroad. 43 victims were from the United Kingdom, including 11 residents of Lockerbie, Scotland, who perished on the ground as fiery debris from the falling aircraft destroyed an entire city block where homes had peacefully stood just minutes earlier. This international terrorist attack, planned by and executed by Libyan intelligence operatives, was considered the largest terrorist attack on both the United States and the United Kingdom before the terror attacks of Sept. 11, 2001.
Immediately after the disaster, Scottish and American law enforcement undertook a joint investigation that was unprecedented in its scope, and in November 1991, it led to criminal charges in both countries, charging two Libyan intelligence operatives, Abdel Baset Ali al-Megrahi (Megrahi) and Lamen Khalifa Fhimah (Fhimah) with their roles in the bombing.
The criminal complaint filed today charges Masud with destruction of an aircraft resulting in death, in violation of 18 U.S.C. § 32(a)(1) and (a)(2), as well as destruction of a vehicle by means of an explosive resulting in death, in violation of 18 U.S.C. § 844(i). The charges in criminal complaints are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Criminal Complaint Allegations
According to the affidavit in support of the criminal complaint, the External Security Organization (ESO) was the Libyan intelligence service through which Libya conducted acts of terrorism against other nations and repressed the activities of Libyan dissidents abroad. Masud worked in various capacities for the ESO, including as a technical expert in building explosive devices from approximately 1973 to 2011.
According to the affidavit, Masud participated in the “Lockerbie airplane bombing,” among other plots against the United States and the west, including but not limited to, the April 5, 1986, bombing of the LaBelle Discotheque in West Berlin, Germany. Two U.S. service members were killed in that attack and scores of others left seriously injured or permanently disabled.
Planning and Executing the Bombing of Pan Am Flight 103
According to the affidavit in support of the criminal complaint, in the winter of 1988, Masud was summoned by a Libyan intelligence official to meet at that official’s office in Tripoli, Libya, where he was directed to fly to Malta with a prepared suitcase. He did so, where he was met by Megrahi and Fhimah at the airport. After Masud spent approximately three or four days in the hotel, Megrahi and Fhimah instructed Masud to set the timer on the device in the suitcase for the following morning, so that the explosion would occur exactly eleven hours later.
According to the affidavit, the suitcase used by Masud was a medium-sized Samsonite suitcase that he used for traveling. Megrahi and Fhimah were both at the airport on the morning of Dec. 21, 1988, and Masud handed the suitcase to Fhimah after Fhimah gave him a signal to do so. Fhimah then placed the suitcase on the conveyor belt. Masud then left. He was given a boarding pass for a Libyan flight to Tripoli, which was to take off at 9:00 a.m.
Three or four days after returning to Libya, Masud and Megrahi met with a senior Libyan intelligence official, who thanked them for a successful operation. Approximately three months after that, Masud and Fhimah met with Qaddafi, and others, who thanked them for carrying out a great national duty against the Americans, and Qaddafi added that the operation was a total success.
Of the 270 lost in the bombing, 190 were Americans on the aircraft. Forty-three from the United Kingdom were lost, including eleven lives on the ground in Lockerbie. The remaining victims were from the following countries: Argentina, Belgium, Bolivia, Canada, France, Germany, Hungary, India, Ireland, Israel, Italy, Jamaica, Japan, Philippines, South Africa, Spain, Sweden, Switzerland, and Trinidad and Tobago. The Department of Justice expresses its profound appreciation to the Scottish government as well as its dedicated commitment to seeking justice for all the victims of the alleged crimes.
Investigative Team
The United States side of the joint investigative team is led by the FBI’s Washington Field Office, along with prosecutors from the National Security Section of the U.S. Attorney’s Office for the District of Columbia, and the Counterterrorism Section of the Justice Department’s National Security Division. There are many agents from the FBI and prosecutors from the Department who have worked on this case over the years.
Contact Information
Victims of this crime and their families can contact the Department of Justice via e-mail at [email protected], or by telephone at +1 (202) 252-7045.
Former Santa Maria Resident Admits to Killing Elephant SealRead the Press Release
LOS ANGELES – A one-time resident of Santa Barbara County pleaded guilty today to a federal criminal charge for fatally shooting an elephant seal on a beach near San Simeon.
Jordan Gerbich, 30, formerly of Santa Maria, now a resident of Utah, pleaded guilty via videoconference to a single-count information charging him with taking a marine mammal.
Gerbich admitted in his plea agreement that he drove to an elephant seal viewing area adjacent to the Piedras Blancas Marine Reserve and Monterey Bay National Marine sanctuary near San Simeon on September 28, 2019. Gerbich brought a .45-caliber pistol and, aided with a flashlight, used the firearm to shoot and kill a northern elephant seal. The next day, the elephant seal was discovered on the beach with a bullet hole in its head.
Northern elephant seals are a protected species under the Marine Mammal Protection Act. They live up and down North America’s Pacific coast and haul out on land in areas called rookeries. These rookeries are typically populated with elephant seals year-round, but populations vary throughout the year based on breeding and molting cycles.
United States District Judge Dale S. Fischer has scheduled an April 12, 2021 sentencing hearing, at which time Gerbich will face a statutory maximum sentence of one year in federal prison.
This matter was investigated by the National Oceanic and Atmospheric Administration’s Office of Law Enforcement with substantial assistance provided by the California Department of Fish and Wildlife.
This case is being prosecuted by Assistant United States Attorney Heather C. Gorman of the Environmental and Community Safety Crimes Section.
Former Philadelphia City Controller’s Office Employee Sentenced to 22 Months in Prison for Bribery SchemesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jeffrey Blackwell, 47, of Philadelphia, PA, was sentenced today to 22 months in prison, three years of supervised release, and ordered to pay $25,612 in restitution by United States District Court Judge Chad F. Kenney for misusing his official position with the Philadelphia City Controller’s Office to enrich himself by soliciting and accepting bribes, and for committing additional tax crimes.
Blackwell pleaded guilty in August 2020 to charges of honest services wire fraud, filing a false tax return, and two counts of failure to file a tax return. A former City of Philadelphia employee in the Investigations Division of the Office of the City Controller, the defendant committed a series of frauds between 2013 and 2015, accepting more than $20,000 in bribes for city services.
Blackwell solicited bribes from at least five individuals who were seeking permits or contracts from the City. One of the individuals owned a furniture store and paid Blackwell for permits to park a storage container on the street. The second person was renovating a house and paid Blackwell for permits to allow that renovation. The third person owned a construction business and paid Blackwell to obtain a plumbing permit. The fourth person owned an auto body shop and paid Blackwell in the hope of getting a license to buy and sell cars, as well as a City contract to install decals on police vehicles. The fifth person, who was cooperating with the FBI at the time, told Blackwell that he needed permits from the City to renovate a house. The defendant also filed a fraudulent 2012 federal income tax return that falsely deducted travel expenses and falsely claimed a dependent; finally, he failed to file a return as required by law for tax years 2013 and 2014.
“During my tenure as U.S. Attorney, we have made it a top priority to uncover and prosecute public corruption in Philadelphia wherever it exists,” said U.S. Attorney McSwain. “Jeffrey Blackwell used his public position to enrich himself to the detriment of all Philadelphians who expect and deserve honest services from the City’s employees. Today’s sentence puts Mr. Blackwell where he belongs – in prison.”
“Jeffrey Blackwell figured he’d boost his city salary by taking bribes and kickbacks on the side,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “In doing so, he undermined the mission and integrity of the controller’s office where he worked and deprived Philadelphians of the honest government services they deserve. Public corruption does so much damage to people’s trust in the system, at every level. That’s why the FBI is committed to holding crooked public employees like Blackwell accountable.”
“Mr. Blackwell ignored his duties to provide honest services to the citizens of Philadelphia and to file accurate tax returns; instead he solicited bribes, lied, and cheated on his taxes,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Today, his greed landed him in prison. Those contemplating similar behavior have been put on notice about the consequences of such criminal conduct.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, with assistance from the Philadelphia Office of Inspector General. It is being prosecuted by Assistant United States Attorney David J. Ignall.
Former Law Enforcement Officer Pleads Guilty to Federal Charge for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – Anthony Michael Mileo, age 54, of Huntingtown, Maryland, pleaded guilty today to the federal charge of possession of child pornography. At the time of his indictment in January 2020, Mileo was a Corporal with the Maryland National Capital Park Police Department and was a K9 handler.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Calvert County State’s Attorney Robert Harvey.
According to his plea agreement, on August 7, 2019, the Maryland State Police (MSP) Computer Crimes Unit received a referral from the National Center for Missing and Exploited Children (NCMEC) regarding the possession of child sexual abuse material. The cybertip indicated that video files documenting child sexual abuse were uploaded to a document storage application account. The document storage application provided the contents of the account to investigators. The content included over a dozen video files depicting child sexual abuse and provided the IP address associated with the transfer of videos depicting child sexual abuse to the account on July 1, 2019.
As detailed in the plea agreement, investigators learned that the e-mail address was associated with Mileo and the IP addresses were associated with an Internet Service Provider account located at Mileo’s address in Calvert County, Maryland. On September 5, 2019, MSP obtained a search warrant for the contents of the e-mail account which revealed approximately 71 video files depicting child sexual abuse, including prepubescent minors and images depicting children in bondage being sexually abused. The video files included a series of known victims of child abuse identified through NCMEC. The e-mail account also contained non-contraband material, including employment information associated with Mileo.
On November 7, 2019, members of the MSP and HSI executed a search warrant at Mileo’s residence and recovered three cellular telephones. Mileo admitted during the plea hearing today that the files he uploaded depicting the sexual abuse of children could be accessed from any device with an Internet connection, including the cellular telephones recovered by investigators. For example, Mileo uploaded the document storage application onto his personal iPhone, which allowed him to access the images of child sexual abuse he had previously uploaded to the application.
Mileo previously faced related charges in Calvert County, but those charges were dismissed in favor of federal prosecution.
Mileo and the government have agreed that, if the Court accepts the plea, Mileo will be sentenced to between 48 months and 78 months in federal prison. U.S. District Judge Paula Xinis has scheduled sentencing for February 17, 2021, at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI Baltimore and the Maryland State Police Internet Crimes Against Children Task Force for their work in the investigation and thanked the Office of the State’s Attorney for Calvert County for its assistance. Mr. Hur thanked Assistant U.S. Attorney Timothy F. Hagan, who is prosecuting the federal case.
# # #
Former Houston Independent School District Employee Sentenced in College Admissions CaseRead the Press Release
BOSTON – A former employee of the Houston Independent School District was sentenced today in connection with her involvement in a scheme to use bribery and fraud to facilitate cheating on the ACT and SAT exams.
Niki D. Williams, 46, of Houston, Texas, was sentenced by U.S. District Court Judge Indira Talwani to one year of probation and ordered to pay forfeiture of $12,500. The government recommended a sentence of six months in prison and one year of supervised release. In September 2020, Williams pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud and honest services wire fraud and mail fraud.
Williams administered the SAT and ACT exams at the public high school in Houston where she worked. In exchange for bribe payments directed to her by co-conspirators William “Rick” Singer and Martin Fox, and in violation of her duty of honest services to the ACT and the College Board, Williams allowed another co-conspirator, Mark Riddell, to secretly take ACT and SAT tests in place of the children of Singer’s clients or to replace their exam answers with his own corrected answers. Williams then returned the falsified exams to the ACT and College Board for scoring.
Singer, Riddell and Fox previously pleaded guilty and are cooperating with the government’s investigation.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Greene Co. Sheriff's Lieutenant Pleads Guilty to Stealing FBI MoneyRead the Press Release
LITTLE ROCK—A former Green County Sheriff’s Lieutenant has pleaded guilty to stealing over $30,000 used in a ruse undercover drug operation. Allen Scott Pillow, 56, of Paragould, pleaded guilty today to one count of theft of government funds. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the FBI, announced the guilty plea. Pillow entered his plea earlier today before United States District Judge Lee P. Rudofsky.
After receiving information that former Lieutenant Pillow might be abusing his role with the Greene County Sheriff’s Office, FBI Special Agents and Task Force Officers conducted a ruse narcotics investigation and sought Pillow’s help with the investigation. On November 4, 2019, FBI parked a rental vehicle in a commercial parking lot in Paragould and staged a glass drug pipe in the vehicle along with a red backpack containing $76,000. The cash was divided into ten bundles of $7,600 each, and investigators recorded the serial numbers.
After staging the vehicle, two FBI Task Force Officers contacted Pillow on his cell phone and asked him to respond to the scene. The officers relayed to Pillow that they began a narcotics investigation in Tennessee and now needed Pillow’s help as the target had traveled into Arkansas. Pillow traveled to the scene in his Sheriff’s Department vehicle, searched the staged rental vehicle, and recovered the glass pipe, backpack, and currency.
Later that day, Pillow called the FBI officers and informed them that the backpack had contained $45,600, leading agents to believe Pillow had taken four bundles of $7,600 each, totaling $30,400 of stolen FBI funds. Agents obtained a search warrant for Pillow’s residence and found $2,300 in his possession and $27,820 in a safe in his attic. The serial numbers on the discovered currency matched the original FBI serial numbers. The remaining $280 in stolen funds was not located.
“The vast majority of law enforcement officers are honorable men and women who put their lives on the line every day to preserve our liberty and safety,” United States Attorney Cody Hiland said. “On the very rare occasion that we encounter corruption within law enforcement, we will take every action necessary to root it out. Our office will hold accountable any officer who violates the public trust so that we may uphold the integrity of a profession that deserves our gratitude and respect.”
“The appalling criminal actions of former Lt. Scott Pillow revealed his lack of integrity and greed,” said FBI Little Rock Special Agent in Charge Diane Upchurch. “Quite simply, he betrayed his brothers and sisters in law enforcement. Officers who are sworn to protect and serve are held to a higher standard, and FBI Little Rock will continue to uphold Arkansans’ trust in law enforcement.”
Pillow was indicted in November 2019, and Judge Rudofsky will sentence Pillow at a later date. Theft of government funds is punishable by up to 10 years’ imprisonment, a fine of not more than $250,000, and not more than three years of supervised release. The case was investigated by the FBI and prosecuted by Assistant United States Attorney Erin O’Leary.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Five Tied to Millions of Dollars in Telemarketing Fraud ConvictedRead the Press Release
PROVIDENCE – United States Attorney Aaron L. Weisman today announced that his office recently convicted the fifth India-based telemarketing fraudster in the past three months who, like the others, was investigated and arrested by the FBI and charged by the U.S. Attorney’s Office for participating in telemarketing fraud schemes that targeted and defrauded Americans of millions of dollars, the majority of them vulnerable to fraud schemes due to age or infirmity.
The five, all Indian nationals, participated in telemarketing schemes that operated out of call centers in India, such as “Tech Support” and “Refund Fraud” schemes, often obtaining personal identifying and banking information from victims' computers through remote access applications or from victims themselves. The information was used to access victims’ bank accounts in order to steal or misappropriate their funds.
“Preying upon vulnerable men and women for financial gain by means of telemarketing is not only repellant, but violative of federal law; and, as demonstrated by the convictions announced today, law enforcement has no imperative but, and will not hesitate, to hold such defendants fully accountable to criminal process,” commented United States Attorney Aaron L. Weisman.
“These five men pilfered millions of dollars from unsuspecting victims all over the country, most of them senior citizens, leaving them in financial ruin without any recourse for recovery,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Their conduct in this case is reprehensible, and this is just one example of our commitment to stopping financial scams and holding the people behind them accountable for their actions, no matter where they are.”
The most recent defendant to be convicted is 29-year-old Sahil Narang. On December 11, 2020, Narang pled guilty to conspiracy to commit wire fraud and ten counts of wire fraud, admitting that over a nine-month period beginning in August 2018, he routed nearly 20,000 “Tech Fraud” scheme calls to call centers in India. Many of the callers hung-up shortly after making contact with a call center operator. However, approximately 7,524 callers remained on the line with call center operators for more than 20 minutes. The intended loss to victims was between $1.5 million and $3 million.
Narang also admitted to participating in a “Refund Scheme” by obtaining the phone number of victims already victimized by the “Tech Fraud” scheme. Narang sold those numbers to fraudsters interested in exploiting those victims for more money through the “Refund Fraud” scheme. Additionally, in exchange for providing bank account information for use by Refund Fraudsters, he collected a portion of the money routed through the accounts, usually fifty to sixty percent. A sentencing date has not yet been scheduled by the court.
In November, Chirag Sachdeva, 30, was sentenced to 33 months in federal prison for his role as a “Tech Fraud” telemarketer fraudster. He pled guilty on September 14, 2020, to seven counts of wire fraud.
In February, FBI agents arrested Abrar Anjum, 34, prior to his boarding a flight to India. On August 24, 2020, Anjum pleaded guilty to conspiracy to commit wire fraud. He is scheduled to be sentenced on January 11, 2021.
Manish Kumar, 32, was arrested by FBI agents on August 24, 2019, as he deplaned in New York City from a flight from India, for his participation in two telemarketing schemes and for credit card fraud. Kumar pled guilty on November 5, 2020, to conspiracy to commit wire fraud, four counts of wire fraud, and two counts of aggravated identity theft. He is scheduled to be sentenced on January 20, 2021.
Himanshu Asri, 33, pleaded guilty on December 3, 2020, to wire fraud, conspiracy to commit wire fraud, and telemarking wire fraud. He admitted that he had 325 callers routed to call centers in India where call center operators falsely reasserted to victims that malware had been detected on their computers, and offered the victims purported computer protection services in exchange for payment. He is scheduled to be sentenced on February 18, 2021.
The cases are being prosecuted by Assistant U.S. Attorney Milind M. Shah in front of U.S. District Court Chief Judge John J. McConnell, Jr.
###
Eastern Connecticut Drug Trafficker Sentenced to 25 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARLOS DELGADO, also known as “Los,” 51, of Mansfield, was sentenced today by U.S. District Judge Janet C. Hall to 300 months of imprisonment, followed by five years of supervised release, for drug trafficking and firearm possession offenses.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to the evidence presented during a trial in this matter, in 2018, the Drug Enforcement Administration’s Hartford Task Force and Willimantic Police Department initiated a joint federal, state and local law enforcement investigation targeting an eastern Connecticut drug trafficking organization headed by Delgado. The investigation revealed that Delgado was coordinating the shipment of kilogram quantities of cocaine through the U.S. Mail from Puerto Rico to various locations in eastern Connecticut. Delgado and his associates distributed the drugs and then mailed cash proceeds from narcotics sales back to individuals in Puerto Rico. During the investigation, investigators seized a package containing nearly one kilogram of cocaine that had been mailed from Puerto Rico to Delgado, and two packages containing $26,860 and $9,900 in cash, respectively, that Delgado had mailed to addresses in Puerto Rico. Trial evidence established that Delgado had received more than 10 packages, each containing at least one kilogram of cocaine, from Puerto Rico.
Further investigation revealed that Delgado also received cocaine from a source in the Dominican Republic, and that he received heroin from a source in Mexico.
Delgado was arrested on a federal criminal complaint on July 9, 2018. On that date, a search of Delgado residence, vehicle and a third location revealed more than one kilogram of heroin, narcotics packaging materials, five firearms, ammunition, and approximately $74,000 in cash.
Delgado has been detained since his arrest.
On January 21, 2020, a jury found Delgado guilty of one count of conspiracy to distribute, and to possess with intent to distribute, five kilograms or more of cocaine; and one count of possession with intent to distribute one kilogram or more of heroin. The jury found Delgado not guilty of one count of possession of a firearm in furtherance of a drug trafficking crime. On January 22, 2020, the jury found Delgado guilty of one count of possession of firearms by a previously convicted felon.
Delgado’s criminal history includes state convictions for narcotics, assault, burglary, larceny and other offenses, and a federal conviction in 2004 for trafficking in stolen credit card account numbers. He was sentenced to 37 months of imprisonment for the federal offense, and a subsequent 18 months of imprisonment for violating the conditions of his federal supervised release.
This matter was investigated by the Drug Enforcement Administration’s Hartford Task Force, Willimantic Police Department, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms, and Explosives and Connecticut State Police. The DEA Task Force includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Willimantic and Windsor Locks Police Departments, and the Food and Drug Administration.
This case was prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Council Bluffs Man Sentenced to Prison for Methamphetamine OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on December 15, 2020, James Michael Willett, Sr., age 48, of Council Bluffs, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 135 months in prison for conspiracy to distribute methamphetamine. Willett was ordered to serve ten years of supervised release to follow his prison term and pay a $100 special assessment to the Crime Victims’ Fund. Willet pleaded guilty to the offense on August 04, 2020.
The Southwest Iowa Narcotics Task Force opened an investigation on Willett and other co-conspirators for distributing methamphetamine in the Council Bluffs metro area in 2019. On November 5, 2019, staff at a hotel in Omaha, Nebraska, contacted law enforcement after an employee observed drugs in a room where Willet had been staying. Law enforcement searched the room and located methamphetamine, fentanyl, and marijuana.
The investigation was conducted by the Council Bluffs Police Department, Omaha Police Department, Iowa Division of Narcotics Enforcement, and the Southwest Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Pleads Guilty to Aggravated Assault of a Federal Employee and Discharge of a Firearm During a Crime of ViolenceRead the Press Release
Memphis, TN – Bernard Jones, 35, has pled guilty to aggravated assault of a federal employee and discharge of a firearm during a crime of violence. D. Michael Dunavant, U.S. Attorney announced the guilty plea today.
According to information presented in court, on September 4, 2019, at approximately 7:30 p.m., Jones was in the process of committing the crime of burglary of a motor vehicle. Meanwhile, the victim, a U.S. Postal Service employee, was preparing to take First Class mail from the Jet Cove Annex to the Memphis Processing & Distribution Center in downtown Memphis. While loading the mail into his USPS staff vehicle, the victim, observed someone moving around inside his personal vehicle parked approximately 50 yards away in the employee parking lot at the Memphis Priority Mail Annex. The victim drove the staff vehicle near his pickup truck and saw the defendant exit his pickup truck.
The defendant shot multiple times at the victim as he escaped in his postal vehicle. As the victim drove away, the defendant followed him in a Nissan Sentra and continued to shoot. During the course of the investigation, United States Postal Inspectors determined two bullets struck the hood and several other locations on the postal vehicle. Law enforcement located two 9MM Luger shell casings from the shooting scene. The suspect, along with a female accomplice, fled the scene in a blue Nissan Sentra. Postal Inspectors later identified Bernard M. Jones as the shooter. Jones, a convicted felon, is also a member of the Gangsters Disciples Street Gang, and as a result of his prior felony conviction history, is prohibited by federal law from possession of firearms or ammunition.
Sentencing is scheduled for March 24, 2021, before U.S. District Court Judge Sheryl Lipman. For the aggravated assault offense, Jones faces a sentence of up to 20 years in federal prison followed by three years supervised release and a fine of $250,000. For the firearm offense, he faces a mandatory minimum consecutive sentence of 10 years and up to life imprisonment; a $ 250,000 fine and 5 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "This office takes very seriously our duty to protect the safety of United States Postal Service employees and the sanctity and security of the U.S. Mail. This case reflects our commitment to hold offenders accountable for brazen and disturbing acts of violence that endanger and victimize federal employees. We commend the outstanding investigative work of the USPIS in this case."
"Protecting the safety of our USPS employees is the United States Postal Inspection Service’s most important mission. Postal Inspectors will stop at nothing to identify those responsible for assaulting postal employees and will bring them to justice," said Tommy D. Coke, U.S. Postal Inspector In Charge of the Atlanta Division.
The United States Postal Inspection Service (USPIS) investigated this case.
Assistant U.S. Attorney Wendy K. Cornejo is prosecuting this case on behalf of the government.
###
Colorado Springs Man Sentenced to More Than 16 Years in Federal Prison for Dealing Methamphetamine, Heroin, and CocaineRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Jesse Santiago Anaya, age 36, of Colorado Springs, was sentenced to serve 200 months (16.6 years) in federal prison, followed by 5 years on supervised release, for distributing controlled substances and conspiring with others to distribute controlled substances. The FBI and the Colorado Springs Police Department joined in this announcement.
According to court documents, the Colorado Springs Police Department and Federal Bureau of Investigation began investigating Anaya for selling cocaine in nightclubs and strip clubs in Colorado Springs. An undercover detective purchased cocaine from Anaya and one of Anaya’s associates, who was also indicted for distributing cocaine and conspiring with Anaya. In his plea agreement, Anaya admitted that the conspiracy to distribute cocaine began while he was still on supervised release for a prior federal felony conviction. Over the course of the conspiracy, Anaya distributed between 500 grams and 15 kilograms of cocaine. As a manager within the cocaine conspiracy, Anaya directed others to carry out drug transactions. For this, Anaya received a larger portion of the profit from cocaine sales than the other participants. During the course of the investigation, Anaya also sold 1,341.4 grams of methamphetamine and 83.4 grams of heroin.
“Getting drug dealers off the street makes a real difference to the communities we serve,” said U.S. Attorney Jason Dunn. “We are committed to making our communities safe for all Coloradans. Disrupting drug organizations is a key part of that strategy and we commend our law enforcement partners for their dedication to this effort.”
“The success of this investigation and today’s sentencing of Jesse Anaya is largely attributable to the collaborative effort of federal, state, and local law enforcement, specifically the Southern Colorado Safe Streets Task Force and Colorado Springs Metro Vice, Narcotics, and Intelligence Division,” said FBI Denver Special Agent in Charge Michael Schneider. “We will continue to work together to address violent drug traffickers within our communities and bring justice to those who are harmed.”
“We want to sincerely thank the Federal Bureau of Investigation and the United States Attorney’s Office, not only for their partnership, but also for their dedication to help make our community a safer place. This case took perseverance, commitment, and a steadfast determination. I am extremely proud of everyone who worked the investigation, as there is no doubt their efforts will make a difference in Colorado Springs,” said Colorado Springs Police Chief Vince Niski.
Anaya was first charged by Criminal Complaint on May 3, 2019. He was indicted by a federal grand jury on May 9, 2019. On January 9, 2020, he pleaded guilty to distributing methamphetamine and to a conspiracy to distribute cocaine. He was sentenced on December 21, 2020.
This case was investigated by the FBI and Colorado Springs Police Department. Anaya was prosecuted by Assistant U.S. Attorney Peter McNeilly.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER by searching for Case Number 19-cr-234.
# # #
Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNews
Sign up for news releases [email protected]
Chillicothe Man Pleads Guilty to His Role in $142 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Chillicothe, Missouri, man pleaded guilty in federal court today to his role in a $142 million scheme to sell non-organic grain as though it was organic.
Steven N. Whiteside, 57, pleaded guilty before U.S. Magistrate Judge Jill A. Morris to a federal information that charges him with falsely signing documents related to the fraud scheme. Whiteside pleaded guilty to making or giving a false official certificate or writing, a class A misdemeanor punishable by up to 12 months' imprisonment and a fine up to $100,000.
Randy Constant, also of Chillicothe, the leader of the fraud scheme, was sentenced on Aug. 16, 2019, to 10 years and two months in federal prison without parole in a related case that was prosecuted in the Northern District of Iowa. John Burton of Clarksdale, Missouri, and three farmers from Nebraska, all of whom who supplied Constant with non-organic grain, were also sentenced to federal prison for their roles in a scheme to defraud customers across the United States.
Constant admitted the fraudulent scheme involved at least $142,433,475 in grain sales, and the vast majority of those sales were fraudulent. From 2010 to 2017, Constant misled customers into thinking they were buying certified organic grain when the grain he was selling was not organic. Constant admitted falsely telling customers the grain he sold was grown on his certified organic fields in Nebraska and Missouri when the grain was not organic either because he purchased the grain from other growers, the certified organic fields were sprayed with unauthorized chemicals, or organic grain was mixed with non-organic grain. As part of the plea, Constant also agreed to forfeit $128,190,128 in proceeds from the fraudulent scheme.
Constant’s grain was mostly used as animal feed, primarily for chickens and cattle. That livestock was then sold as organic meat or products from the livestock were sold as organic products. Because of Constant’s fraud, most of the livestock that was fed his grain was not organic, causing thousands of consumers to purchase what they thought was organic meat for a premium price across the country.
By pleading guilty today, Whiteside admitted that he signed a document on May 30, 2015, falsely claiming that he owned or farmed certain parcels of land when he actually had no affiliation or control of the property. Whiteside falsely attested in a Land Use History Verification that no chemicals had been used on the property in the preceding three years. The Land Use History Verification is a form used in conjunction with an application to have land certified as organic as part of the U.S. Department of Agriculture’s National Organic Program. In order for grain to be certified as organic, the grain must have been grown through approved methods and without the use of certain substances, including synthetic chemicals, and produced and handled in compliance with the program.
At the same time Whiteside signed the document, it was co-signed by Constant, who was identified on the document as the applicant seeking the certification for the land. In addition to being the identified applicant, Constant also purchased non-organic grain from Whiteside and employed Whiteside as part of Constant’s fish farm operation.
For purposes of calculating loss for sentencing purposes, the government agreed that any calculation should only include amounts related to Whiteside's grain sales to Constant or sales from grain grown on the land identified in the Land Use History Verification. The government agreed the loss calculation for Whiteside should not include other amounts, including amounts attributable to grain Constant purchased from other farmers, which comprised the significant majority of the $140 million loss figure.
More information about the case in the Northern District of Iowa is available at:
https://www.justice.gov/usao-ndia/pr/field-schemes-fraud-results-over-decade-federal-prison-leader-largest-organic-fraud
https://www.justice.gov/usao-ndia/pr/missouri-man-sentenced-nearly-two-years-prison-his-role-field-schemes-organic-grain
This case is being prosecuted by Special Assistant U.S. Attorney Bradley Cooper. It was investigated by the FBI and the U.S. Department of Agriculture – Office of Inspector General.
Chicago Man Charged with Derecho Benefits FraudRead the Press Release
Tavonte Donnell Stewart, age 23, from Chicago, Illinois, has been charged with one count of derecho benefits fraud. The charge is contained in a complaint unsealed today in United States District Court in Cedar Rapids.
The complaint alleges that, on or about September 15, 2020, Stewart applied for disaster benefits from FEMA arising out of the severe derecho storm in Iowa on August 10, 2020. Stewart is alleged to have claimed in his application that his primary residence at the time of the derecho was in Cedar Rapids, when in truth he was residing in the Chicago area where he was on federal supervised release for a felony counterfeiting conviction. When FEMA contacted a representative of a property management firm about the address in Cedar Rapids, the manager stated that the property in question was not occupied at the time of the storm and had suffered only minor roof damage from the derecho.
If convicted, Stewart faces a possible maximum sentence of 30 years’ imprisonment, a $250,000 fine, and five years of supervised release.
Stewart appeared today in federal court in Chicago and was held without bond. Stewart’s next appearance for a detention hearing is set for December 23, 2020.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Department of Homeland Security, Office of Inspector General. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 20-CR-114.
Follow us on Twitter @USAO_NDIA.