Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
21 December 2020
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.
Brooklyn Man Arrested for $1.9 Million Paycheck Protection Program FraudRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Leon Miles with wire fraud in connection with his scheme to obtain over $1.9 million from the Paycheck Protection Program (PPP) which Congress created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Miles was arrested this morning and will make his initial appearance this afternoon before United States Magistrate Judge Vera M. Scanlon.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Amaleka McCall-Brathwaite, Special Agent-in-Charge, Office of the Inspector General of the U.S. Small Business Administration, Eastern Region Office (SBA-OIG); and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the arrest and charge.
“At a time when so many are suffering from the devastating economic effects of the ongoing pandemic, Miles allegedly enriched himself at the taxpayers’ expense, stealing funds that were intended by Congress to keep businesses afloat and workers on payroll,” stated Acting United States Attorney DuCharme. “Together with our agency partners, this Office will bring to justice those who take advantage of a global crisis to commit such crimes.”
“We continue to see people taking advantage of the Paycheck Protection Program, which was created to provide emergency financial assistance to businesses who need it during the pandemic,” stated FBI Assistant Director-in-Charge Sweeney. “ This type of criminal behavior is a slap in the face to all of those who play by the rules, especially while so many in our communities are suffering from the financial fallout of the pandemic. The FBI will continue to aggressively pursue those who are using the money from this taxpayer funded economic relief program to pad their own pockets. If you know of similar instances of fraud, please call us at 1-800-CALL-FBI.
“Fraudsters that have pursued personal gain at the expense of taxpayers will be brought to justice,” stated SBA OIG Special Agent-in-Charge McCall-Brathwaite. “Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“While most Americans are struggling during this pandemic, we see criminals over and over again trying to live out their dreams of a lavish lifestyle,” stated IRS-CI Special Agent-in-Charge Larsen. “Miles allegedly submitted a PPP loan application for nearly $2 million while claiming false information. He allegedly used these funds, in part, to purchase luxury vehicles. These types of actions hurt our people, our government and our country. IRS Criminal Investigation and our law enforcement partners will continue collaborating until every misappropriated PPP loan is accounted for and criminals are brought to justice.”
The CARES Act is a federal law enacted on March 29, 2020 to provide emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. The PPP provided for forgiveness of the loan if recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.
As alleged in the complaint, in May 2020, Miles submitted an application for a $1,904,593.00 PPP loan on behalf of a limited liability company he owns in Brooklyn, New York, falsely claiming that the company had 50 employees and a total average monthly payroll of $761,838.00. In support of these claims, Miles submitted fraudulent personal and business tax returns and tax forms that were never filed with the IRS. In fact, he reported to the IRS no taxable income during the relevant period, and his company filed no tax returns and reported no wages paid to employees. The loan proceeds were disbursed to the defendant’s personal savings account, and within days he had withdrawn hundreds of thousands of dollars, a portion of which he used to purchase a 2020 Bentley Continental for approximately $250,000 and a 2020 Cadillac Escalade for approximately $100,000.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Robert M. Pollack with assistance from Assistant United States Attorney Brian D. Morris of the Office’s Asset Forfeiture Section.
The Defendant:
LEON MILES
Age: 51
Brooklyn, New YorkE.D.N.Y. Docket No. 20-MJ-1234
Bristow Man Pleads Guilty to Assaulting his Domestic PartnerRead the Press Release
A Bristow man pleaded guilty this morning to assault resulting in substantial bodily injury to a spouse, intimate partner, or dating partner in Indian Country, announced U.S. Attorney Trent Shores.
Bobby Brian Thompson, 29, pleaded guilty before U.S. District Judge John F. Heil.
“Bobby Thompson beat his domestic partner with his fists before strangling her. Tragically, experience tells us that domestic abuse often begins with verbal threats and then escalates to extreme violence, such as this. I view domestic violence prosecution as homicide prevention,” said U.S. Attorney Trent Shores. “The investigators and victim advocates at the Bristow Police Department and FBI worked together to both bring this domestic abuser to justice and provide support to the victim.”
In his plea agreement, Thompson admitted that on or about June 11, 2020, in Bristow, Oklahoma, he assaulted his dating partner. Specifically, he admitted to striking the victim with his fists and strangling her. The victim suffered substantial bodily injury as a result of his assault upon her. Thompson further stated in his plea that he is a member of the Cherokee Nation.
Thompson’s sentencing is set for March 22, 2021.
The FBI and Bristow Police Department conducted the investigation. Assistant U.S. Attorney Richard M. Cella is prosecuting the case
Berkeley County woman admits to drug chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kristina Gilmore, of Martinsburg, West Virginia, has admitted to drug charges, U.S. Attorney Bill Powell announced.
Gilmore, also known as “Diamond,” 25, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, and Cocaine Base” and one count of “Aiding and Abetting Distribution of Heroin and Fentanyl Mixture.” Gilmore admitted to working with others to distribute heroin, fentanyl, and cocaine base in February 2020 in Berkeley County and elsewhere.
Gilmore faces up to 20 years of incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms & Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
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.
U.S. Magistrate Judge Robert W. Trumble presided.
Atlanta Tax Professionals Plead Guilty to Promoting Syndicated Conservation Easement Tax Scheme Involving More Than $1.2 Billion in Fraudulent Charitable DeductionsRead the Press Release
Stein Agee of Canton, Georgia, and Corey Agee of Atlanta, Georgia, appeared before U.S. Magistrate Judge W. Carleton Metcalf and pleaded guilty for their roles in a wide-ranging abusive tax scheme to defraud the IRS, the Department of Justice announced today.
According to court documents, from at least 2013 through 2019, S. Agee and C. Agee, then partners at an Atlanta accounting firm, marketed, promoted, and sold together with co-conspirators, investments in fraudulent syndicated conservation easement (SCE) tax shelters. The SCE tax shelters were designed to produce tax deductions for high-income taxpayers through partnerships that purported to make “real estate investments.” In truth, the partnerships were a sham, lacking economic substance and serving no legitimate business purpose. The placement of conservation easements over the real estate was a foregone conclusion, which fraudulently enabled the investors to shelter their income from the IRS with no economic risk and to claim substantial tax deductions to which they were not entitled. S. Agee, C. Agee, and their co-conspirators marketed the SCE tax shelters by promising investors that for every $1 invested in the partnership, the investor would receive more than $4 in charitable tax deductions.
“The defendants’ and their co-conspirators' criminal conduct enabled their clients to claim more than $1.2 billion in fraudulent tax deductions and generated hundreds of millions of dollars of tax loss to the United States,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department's Tax Division. “Their convictions signal just the beginning of the department’s prosecutive efforts. Taxpayers engaging in such schemes, and the lawyers, accountants, appraisers and other professionals that enable them, should understand that they will be held fully to account for their fraudulent conduct.”
“Each year, millions of law-abiding Americans painstakingly file accurate tax returns and pay timely their tax obligations, which support important government services our communities rely on,” said U.S. Attorney R. Andrew Murray for the Western District of North Carolina. “As the defendants admitted in court today, their tax shelter scheme helped wealthy clients skirt their tax responsibilities and avoid paying their fair share. Such actions not only increase the tax burden on honest taxpayers; they are a violation of our federal tax laws. Today’s guilty pleas send a strong message that tax professionals who promote, and benefit from, illegal tax shelters will be investigated and prosecuted accordingly.”
“Two defendants pleaded guilty today in the first-ever criminal case by IRS-CI involving conservation easements,” said Commissioner Charles Rettig of the IRS. “It should be considered the next step in the IRS’ battle against abusive SCEs. The defendants and their co-conspirators used conservation easement donations to personally enrich themselves and allow wealthy tax clients to evade their tax obligations. The charges and guilty pleas demonstrate that participation in abusive SCEs will not be tolerated. Once again, the IRS recommends that anyone who participated in an abusive SCE consult independent counsel about coming into compliance.”
Conservation easements were created by Congress to be a key tool used for protecting environmentally and historically important land. The donated conservation easement typically restricts the use or development of land in order to protect its conservation value. When legitimately created and used in compliance with the Internal Revenue Code, the conservation easement can both protect the environment and provide tax incentives. By contrast, abusive SCEs are designed to game the system and generate inflated and unwarranted tax deductions, often by using inflated appraisals of undeveloped land and partnerships devoid of legitimate business purpose.
According to court documents, S. Agee and C. Agee additionally solicited investors after the end of the tax year and advised them to backdate payments and documents to make it appear that the “investments” were timely made before the end of the tax year. S. Agee and C. Agee also prepared and assisted in the preparation of false tax returns for clients who agreed to invest in the SCE shelters. In exchange for their promotion of the abusive SCE tax shelters, between 2013 and 2019, S. Agee and C. Agee each received more than $1.7 million in commissions.
S. Agee and C. Agee both pleaded guilty to one count of conspiracy to defraud the United States which carries a maximum penalty of five years in prison. They also face a period of supervised release, restitution, and monetary penalties.
U.S. Attorney Murray, Principal Deputy Assistant Attorney General Zuckerman, and IRS Commissioner Rettig, thanked special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who are conducting the investigation, as well as Assistant U.S. Attorneys Daniel Bradley and Caryn Finley, and Tax Division Trial Attorneys Brittney Campbell and Grace Albinson, who are prosecuting the case.
Atlanta Tax Professionals Plead Guilty to Promoting Syndicated Conservation Easement Tax Scheme Involving More Than $1.2 Billion in Fraudulent Charitable DeductionsRead the Press Release
CHARLOTTE, N.C. – On Monday, December 21, 2020, Stein Agee, 42, of Canton, Georgia and Corey Agee, 38, of Atlanta, Georgia, appeared before U.S. Magistrate Judge W. Carleton Metcalf and entered guilty pleas to conspiracy charges related to their roles in a wide-ranging scheme to defraud the IRS with respect to the assessment and collection of U.S. individual income taxes, announced United States Attorney for the Western District of North Carolina R. Andrew Murray, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and Commissioner Charles Rettig of the IRS.
According to court documents, from at least 2013 through at least December of 2019, S. Agee and C. Agee, then partners at an Atlanta accounting firm, conspired with others to develop, market, promote, and sell investments in fraudulent syndicated conservation easement (SCE) tax shelters to high-income taxpayers.
“The defendants’ and their co-conspirators' criminal conduct enabled their clients to claim more than $1.2 billion in fraudulent tax deductions and generated hundreds of millions of dollars of tax loss to the United States,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department's Tax Division. “Their convictions signal just the beginning of the department’s prosecutive efforts. Taxpayers engaging in such schemes, and the lawyers, accountants, appraisers and other professionals that enable them, should understand that they will be held fully to account for their fraudulent conduct.”
“Each year, millions of law-abiding Americans painstakingly file accurate tax returns and pay timely their tax obligations, which support important government services our communities rely on,” said U.S. Attorney Murray. “As the defendants admitted in court today, their tax shelter scheme helped wealthy clients skirt their tax responsibilities and avoid paying their fair share. Such actions not only increase the tax burden on honest taxpayers; they are a violation of our federal tax laws. Today’s guilty pleas send a strong message that tax professionals who promote, and benefit from, illegal tax shelters will be investigated and prosecuted accordingly.”
“Two defendants pleaded guilty today in the first-ever criminal case by IRS-CI involving conservation easements,” said Commissioner Charles Rettig of the IRS. “It should be considered the next step in the IRS’ battle against abusive SCEs. The defendants and their co-conspirators used conservation easement donations to personally enrich themselves and allow wealthy tax clients to evade their tax obligations. The charges and guilty pleas demonstrate that participation in abusive SCEs will not be tolerated. Once again, the IRS recommends that anyone who participated in an abusive SCE consult independent counsel about coming into compliance.”
Congress created the option to deduct the value of a donated conservation easement from an individual’s taxable income as a tool for the protection of environmentally and historically important land. A conservation easement restricts the future use or development of a parcel of land in order protect its conservation value. When created and used in a legitimate way, in compliance with the Internal Revenue Code, a conservation easement can both protect the environment and provide tax incentives to the landowner. In contrast, abusive SCE tax shelters are designed to game the system and to generate inflated and unwarranted tax deductions, often through the procurement of inflated appraisals for the undeveloped land and through the sale of interests in partnerships devoid of any legitimate business purpose beyond the transfer of tax benefits.
Here, the Agees’ co-conspirators designed the SCE tax shelters to produce large pass-through tax deductions for high-income taxpayers who bought shares in partnerships and LLCs that purported to make “real estate investments” in plots of land. In reality, however, these “investment” transactions lacked economic substance and served no legitimate business purpose beyond the purchase and sale of tax benefits. The placement of conservation easements over the real estate purchased by the “investment” partnerships—as opposed to the development of the real estate, or any other approach to generating a profit—was always a foregone conclusion, and the co-conspirators marketed the opportunities to their clients as straightforward tax transactions designed to reduce the clients’ tax liabilities. For example, S. Agee and C. Agee marketed the SCE tax shelters by promising investors that, for every $1 invested in the partnership, the investor would receive more than $4 in “charitable” tax deductions, with no economic risk.
Furthermore, according to court documents, S. Agee, C. Agee, and their co-conspirators often solicited investors after the end of the relevant tax year, and advised them to fraudulently backdate payments and documents so it would appear that their “investments” in the SCE tax shelters were, in fact, in compliance with applicable tax laws. S. Agee and C. Agee also prepared and assisted in the preparation of false tax returns for clients who agreed to invest in the SCE shelters. In exchange for their promotion of the abusive SCE tax shelters, between 2013 and 2019, S. Agee and C. Agee each received more than $1.7 million in commissions from the developer of the SCE tax shelters.
S. Agee and C. Agee both pleaded guilty to one count of conspiracy to defraud the United States, which carries a maximum penalty of five years in prison.
U.S. Attorney Murray, Principal Deputy Assistant Attorney General Zuckerman, and IRS Commissioner Rettig, thanked special agents of IRS-Criminal Investigation and the United States Postal Inspection Service, who are conducting the investigation, as well as Assistant United States Attorneys Daniel Bradley and Caryn Finley, and DOJ-Tax Division Trial Attorneys Brittney Campbell and Grace Albinson, who are prosecuting the case.
Atlanta Businessman Charged in $1,900,000 Bribery Scheme involving U.S. Marine Corps ReserveRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that Darrel Fitzpatrick, aged 30, has been charged by a Bill of Information with Conspiracy to Commit Bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1). If convicted, Fitzpatrick faces up to five years imprisonment, followed by three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100.
According to the Bill of Information, in 2019 Darrel Fitzpatrick was a senior account manager at Company A, a bus brokerage company that provided transportation to the United States Marine Corps Reserves. That same year, Fitzpatrick started a competing transportation brokerage company called National Charter Express.
In 2019, Fitzpatrick agreed to pay kickbacks to Erik Martin, a civilian employee of the United States Marine Corps Reserves, in exchange for Martin directing business to Company A, and then later, National Charter Express.
The conspiracy resulted in at least $1,900,000 in transportation contracts being corruptly awarded to companies associated with Fitzpatrick. In exchange for steering contracts to Fitzpatrick, Martin agreed to accept over $250,000 in bribes.
U. S. Attorney Strasser praised the work of the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), and the United States Secret Service for their investigation in this case. The prosecution is being handled by Assistant United States Attorney Myles Ranier.
U. S. Attorney Strasser stated that a Bill of Information is only an allegation, and that the defendant is presumed innocent until he pleads guilty or is found guilty by a jury or judge.
Acting Manhattan U.S. Attorney Announces Settlement with Substance Abuse Treatment Center and Its Owner for Enrolling Patients Through Kickbacks and Using Falsified Patient Admissions FormsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health, Office of Inspector General (“HHS-OIG”), announced today a $6 million settlement of a civil healthcare fraud lawsuit against A.R.E.B.A.-CASRIEL, Inc. d/b/a ADDICTION CARE INTERVENTIONS CHEMICAL DEPENDENCY TREATMENT CENTERS (“ACI”), a substance abuse treatment provider in New York City, and STEVEN YOHAY, ACI’s primary owner and former CEO. This settlement resolves allegations that ACI and YOHAY provided kickbacks and engaged in fraudulent conduct in connection with the enrollment of Medicaid beneficiaries into ACI’s inpatient treatment program. Specifically, the Government’s complaint alleges that ACI’s drivers targeted homeless individuals and offered them food, cash, money to purchase drugs, and/or alcohol in order to induce them to enroll in ACI’s inpatient treatment program. The lawsuit further alleges that ACI paid an individual a kickback in the form of a sham job for which she was compensated more than $75,000 to induce her to refer patients to ACI programs. The lawsuit also alleges that ACI used medical admissions forms containing photocopied physician signatures to make it appear that new patients had been evaluated by a qualified health care professional as required by law.
Under the settlement approved December 17 by U.S. District Judge Vernon S. Broderick, ACI agreed to pay $3 million, and YOHAY personally agreed to pay an additional $3 million. Of the $6 million total, $2.4 million is being paid to the United States and the remaining amount is being paid to the State of New York. The amount paid by ACI is based on the Office’s assessment of ACI’s ability to pay based on the financial information it provided.
ACI and YOHAY admitted and accepted responsibility for conduct alleged in the Government’s complaint as further described below. YOHAY also agreed to divest ownership and control of ACI, and ACI agreed to implement procedures designed to ensure that its patient transportation services comply with legal requirements. In addition, YOHAY has entered into a Voluntary Exclusion Agreement with HHS-OIG, under which he will be excluded from participation in Medicaid and other federal healthcare programs for a period of 15 years.
Acting U.S. Attorney Audrey Strass said: “ACI and Steven Yohay engaged in unscrupulous and illegal practices – including hiring drivers to scour the streets for potential patients – to fill the beds at their facilities and maximize the payments they received from Medicaid. This Office will continue to act aggressively to ensure that substance abuse treatment providers and those who run them are held accountable when they cheat the system to fraudulently obtain federal health care funds.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “ACI and Stephen Yohay operated a fraud scheme that targeted some of the most vulnerable people in our society and diverted valuable Medicaid funds that millions of New Yorkers depend on for vital services. This settlement should send a message that this behavior will not be tolerated, and we will hold those that attempt to steal from federal health care programs accountable for their actions.”
The Complaint filed in Manhattan federal court alleges three forms of illegal conduct:
First, from January 2014 to December 2019, ACI and YOHAY improperly induced Medicaid beneficiaries to be admitted into ACI’s inpatient treatment program by employing drivers, who were compensated based in part on the volume of patients they recruited for admission into the treatment program, to solicit and transport potential new patients to ACI’s facility. The drivers routinely targeted homeless individuals and sometimes offered them food, cash, money to purchase drugs, and/or alcohol to persuade them to enroll in the program. The drivers were expected to pick up a certain number of potential patients in order to be eligible for a pay raise. Most of the new enrollments into ACI’s inpatient program resulted from the ACI drivers’ solicitation efforts.
Second, in October 2012, ACI created a sham part-time Spanish “translator” position so that it could employ an individual whose real job was primarily to provide a stream of patient referrals. The individual was simultaneously employed at an organization that refers individuals to substance abuse clinics. ACI placed the individual on its payroll to receive referrals to its treatment programs. The individual translated only a few times, even though she remained on the payroll until March 2017 and was paid more than $75,000.
Third, from July 2012 through July 2013, ACI admitted Medicaid patients into its inpatient treatment program who were not evaluated by a qualified health care professional to determine the appropriate level of care, as required by applicable state law. ACI staff fraudulently created medical forms containing a photocopied physician’s signature to make it appear that a physician had conducted the evaluation. The falsified forms were used to support claims for reimbursement, for the indicated level of care, from Medicaid.
In the settlement agreement, ACI and YOHAY admit, acknowledge, and accept responsibility for the following conduct:
Role of Drivers:
- From January 2014 to December 2019, ACI employed drivers who were involved in identifying, recruiting, and providing transportation services for new patients who were admitted into ACI’s inpatient treatment program. During the relevant period, ACI employed approximately five to 10 drivers at any given time.
- ACI drivers rode in unmarked vehicles and picked up individuals, who were often homeless, from a wide range of locations, including parks, train stations, shelters, hospitals, under bridges, and from other substance abuse treatment centers.
- ACI financially incentivized its drivers to bring in new patients. ACI paid the driver who brought in the most new patients during the relevant period an annual salary of more than $200,000, as well as a bonus consisting of thousands of dollars.
- ACI’s management, including YOHAY, were made aware of allegations that certain ACI drivers gave some potential new patients money, drugs, and/or alcohol to induce them to enroll in ACI’s inpatient program. However, ACI and YOHAY failed to investigate these allegations adequately or take appropriate corrective actions in response.
Use of Paid Employee to Make Patient Referrals:
- In October 2012, ACI created a part-time “translator” position and hired an individual to fill the position who was simultaneously employed at an organization that refers individuals to substance abuse clinics, like ACI, for treatment as an alternative to incarceration.
- Throughout the course of her employment with ACI, the individual provided ACI managers with lists of individuals who were being referred by the organization to ACI for substance abuse services.
- Although the individual was hired to be a “translator,” she rarely was asked by ACI to provide any translation services. The individual translated for ACI only a few times in 2012, and thereafter, she did not perform any translation services for ACI but continued to be paid by ACI until 2017.
Medical Assessments Not Completed by Physicians:
- From July 2012 through July 2013, ACI admitted certain patients into its inpatient program who were not properly evaluated by a qualified health professional as required.
- During the relevant period, ACI admissions staff, who were not qualified health professionals, conducted the patient assessment and completed the admissions criteria forms. These forms, which were part of a patient’s file used to support claims for reimbursement from Medicaid, contained a photocopy of a physician’s signature.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.
Ms. Strauss thanked HHS-OIG, the Medicaid Fraud Control Unit of the New York State Attorney General’s Office, and the New York State Office of Addiction Services and Supports for their assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Kirti Vaidya Reddy is in charge of the case.
Acting Manhattan U.S. Attorney Announces $40.5 Million Settlement with Durable Medical Equipment Provider Apria Healthcare for Fraudulent Billing PracticesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Scott Lampert, the Special Agent in Charge for the New York Office of the Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”), Patrick J. Hegarty, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Defense - Office of Inspector General’s Defense Criminal Investigative Service (“DCIS”), and Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, Office of Personnel Management Office of the Inspector General (“OPM OIG”), announced today a $40.5 million settlement of a fraud lawsuit against Apria Healthcare Group, Inc. and its affiliate, Apria Healthcare LLC (together, “Apria”), a large durable medical equipment (“DME”) provider with approximately 300 branch offices located throughout the United States. The lawsuit alleges, among other claims, that Apria submitted false claims to federal health programs, including Medicare and Medicaid, seeking reimbursement for the rental of costly non-invasive ventilators (“NIVs”) to program beneficiaries who were not using the NIVs such that the devices were not medically necessary or that involved the improper waiver of patient co-insurance payments.
Under the settlement, which was approved on December 18 by U.S. District Judge Edgardo Ramos, Apria agreed to pay a total sum of $40.5 million, with $37,632,789.89 being paid to the United States and the remaining amount to be paid to various states. As part of the settlement, Apria also made extensive factual admissions regarding its conduct.
Acting U.S. Attorney Audrey Strauss said: “It is critical to the financial integrity of federal health programs like Medicare and Medicaid that reimbursements are made only for medically necessary items and services. DME providers like Apria have an obligation to ensure that the equipment and devices they rent to patients are medically necessary. When companies knowingly disregard that obligation to maximize their profits, this Office will hold them accountable for their fraudulent conduct.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Apria’s conduct compromised the integrity of the Medicare and Medicaid programs, and needlessly increased the financial burden on taxpayers. Along with our law enforcement partners, HHS-OIG will continue to ensure that those individuals and entities that bill federal health care programs improperly are held accountable for their actions.”
DCIS Special Agent in Charge Patrick J. Hegarty said: “The Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the healthcare system for military members and their families. Charging TRICARE for DME that was not necessary betrays the public’s trust. This settlement demonstrates our partnership with HHS-OIG, OPM-OIG and the U.S. Attorney’s Office to investigate fraudulent schemes that impact TRICARE and put its beneficiaries at risk.”
OPM OIG Deputy Inspector General Norbert E. Vint said: “The OPM OIG is committed to fighting all forms of health care fraud. As demonstrated by this settlement, providers that exploit federal health care programs by submitting false claims will be held accountable.”
As alleged in the complaint filed by the United States, Apria decided in 2014 to prioritize the expansion of its NIV rental business because health care programs like Medicare paid as much as $1,400 per month to cover NIVs, a type of complex respiratory equipment that can dynamically adjust the pressure level of air delivery. That expansion, however, came at the cost of Apria’s compliance with the basic medical necessity requirement of federal health programs. Specifically, while Apria knew that it was responsible for monitoring patients’ utilization of their NIVs and to stop billing when NIVs were no longer being used, it did not have enough staff, or “respiratory therapists,” to conduct such monitoring. As a result, Apria routinely billed Medicare and other programs when it did not know whether NIVs were still being used by patients and, therefore, remained medically necessary. Further, even when Apria had information indicating that patients were no longer using their NIVs, it often continued to bill the federal health programs.
As further alleged, Apria engaged in two other types of improper practices to obtain more NIV orders and higher profits. First, Apria improperly billed federal health programs for certain NIV rentals that were being used in a setting called PAC mode to provide bi-level pressure support therapy, which was available from a less expensive device called VPAP RAD and did not qualify for reimbursement at the NIV rate. Second, Apria improperly waived co-pays for a number of Medicare and TRICARE beneficiaries to induce them to rent NIVs. For example, Apria employees offered to waive co-pays to convince patients to rent NIVs from Apria instead of competitors. Further, Apria also waived co-pays without making the required individualized assessment of financial need. As a result of those three widespread improper practices, Apria submitted thousands of false claims to federal health programs for NIV rentals and fraudulently received millions of dollars in reimbursements.
As part of the settlement, Apria admitted, acknowledged, and accepted responsibility for, among others, the following conduct:
NIV Continued Use Conduct
- Apria relied on the respiratory therapists (“RTs”) in its branches to monitor patients’ usage of their NIV devices. Further, Apria’s NIV promotional materials indicated that Apria’s RTs would regularly visit NIV patients to assess whether they used their NIV devices in accordance with their physicians’ instructions.
- The RTs at Apria’s branches, however, often did not conduct regular visits to NIV patients to confirm that patients were using their NIVs as directed by their physicians. A January 2017 internal analysis, for example, found that in December 2016, Apria’s RTs failed to complete more than half of the visits to NIV patients mandated by Apria’s NIV clinical procedures at all three of Apria’s operational zones.
- Apria continued to seek payments from federal health programs for NIV rentals each month even though its RTs frequently failed to conduct in-home visits to verify that patients were still using their NIVs.
- In addition, when it had information from the RT visits indicating that patients had stopped using their NIVs, Apria often did not take steps to stop seeking payments from federal health programs or to determine if the NIV rentals were still medically necessary.
PAC Mode Conduct
- In 2015, Apria encouraged its sales staff to actively urge physicians to order the Astral NIVs in PAC mode. When they urged physicians to order the Astral NIVs in PAC mode, Apria’s salespeople frequently did not tell the physicians that PAC mode therapy was also available through the VPAP RAD at a lower monthly cost.
- On a number of occasions, this resulted in Apria renting the more expensive Astral NIVs to patients with the PAC mode therapy orders, including patients covered by federal health programs, even though the less expensive VPAP RADs may have met those patients’ medical needs.
Co-Pay Waiver Conduct
- Managers at a number of Apria’s branches directed salespeople at those branches to routinely discuss the availability of co-pay waivers with NIV patients, including before the patients raised concerns about their ability to make these payments. In a number of cases, those managers also authorized salespeople to offer co-pay waivers to persuade patients to rent NIVs from Apria instead of other DME suppliers.
- During the Covered Period, Apria gave full co-pay waivers to hundreds of NIV patients without making an assessment as to whether those patients could have afforded some portion of their co-pay responsibilities.
* * *
- As a result of the admitted conduct, Apria received reimbursements from the federal health programs for some NIV rental claims that did not comply with all of those programs’ billing rules and guidance.
In connection with this settlement, Apria also entered into a Corporate Integrity Agreement with HHS-OIG, which requires Apria to implement board oversight, a claims review process by an Independent Review Organization, and other compliance steps designed to foster adherence to federal health care program requirements and thereby protect the programs.
This settlement arises from a whistleblower case filed by three former Apria employees under the qui tam provisions of the False Claims Act, which allow private persons – known as “relators” – to file civil cases on behalf of the United States and share in the recovery.
Acting U.S. Attorney Strauss thanked the Washington State Medicaid Fraud Control Unit for its extensive collaboration in the investigation and resolution of this case, and also praised the outstanding investigative work of the HHS-OIG, DCIS, and OPM-OIG.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Li Yu and Steven Kochevar and former Assistant U.S. Attorney Casey Lee have handled the case.
20 December 2020
Two Albany Men Arrested on Heroin and Fentanyl ChargeRead the Press Release
ALBANY, NEW YORK – David Colon, age 39, and Adalberto Gonzalez, age 56, both of Albany, were ordered detained yesterday after being arrested on Tuesday and charged with possession with the intent to distribute heroin laced with fentanyl.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
Both Colon and Gonzalez appeared yesterday before United States Magistrate Judge Christian F. Hummel and were ordered detained pending trial. The charges in the complaint are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The charges filed against Colon and Gonzalez carry a maximum sentence of 20 years in prison, a fine of up to $1 million, and a term of supervised release of at least 3 years and up to life. 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.
This case is being investigated by the DEA, Albany County Sheriff’s Office, Albany Police Department, Colonie Police Department, and the Troy Police Department, and is being prosecuted by Assistant U.S. Attorney Rachel Williams.
Fugitive Vladimir Natera Abreu Arrested in the Dominican RepublicRead the Press Release
SAN JUAN, Puerto Rico – Today, Vladimir Natera-Abreu and Joset Rivera-Verdejo were arrested by the Dominican National Police and were later deported to Puerto Rico. The defendants were fugitives since February 2019, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
Defendant Natera-Abreu was one of the main leaders in the drug trafficking organization known as “Las FARC,” (Las FuerzasArmadas Revolucionarias de Cantera). “Las FARC” operated out of the Barrio Obrero Ward, including, but not limited to El Guano sector, Playita sector, William Street, Eleven Street, Cantera sector, and the Public Housing Projects Villa Kennedy, Las Casas, El Mirador, and Las Margaritas, all located in Santurce, since in or about 2006. The goal of “Las FARC” was to maintain control of all the drug trafficking activities within the Santurce area by the use of force, threats, violence, and intimidation.
Natera-Abreu and Rivera-Verdejo had been previously charged in a seven-count indictment for conspiracy to possess with intent to distribute narcotics, aiding and abetting in the possession and distribution of heroin, crack, cocaine, and marihuana, and possession of a firearm in furtherance of drug trafficking. The charged drug conspiracy included 75 defendants.
Assistant U.S. Attorneys Alberto López-Rocafort and Teresa S. Zapata-Valladares are in charge of the prosecution of the case. The FBI was in charge of the investigation of the case. If convicted the defendant faces a mandatory minimum sentence of 15 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
# # #
8 Individuals Charged for Drug Trafficking from Puerto Rico to New YorkRead the Press Release
SAN JUAN, Puerto Rico – On December 3, 2020, a federal grand jury in the District of Puerto Rico returned a three count indictment charging five men and three women, who are members of a drug trafficking organization, with conspiracy to possess with intent to distribute controlled substances, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA) in conjunction with the Airport Investigations and Tactical Team (AirTAT) were in charge of the investigation. AirTAT identifies, locates, disrupts, dismantles, and prosecutes transnational crime organizations using the airports in Puerto Rico to smuggle narcotics, weapons, human cargo, counterfeit documents, illegal proceeds, and other contraband.
“This investigation demonstrates the collaborative effort to identify, target and dismantle drug trafficking organizations involved in transporting narcotics from Puerto Rico to the U.S. mainland,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “The U.S. Attorney’s Office will continue to work with our law enforcement partners to attack this problem and deter the use of Puerto Rico as a transshipment location.”
DEA Caribbean Division Special Agent in Charge, A.J. Collazo said that “We will continue to utilize all our inter-agency resources towards the disruption and dismantlement of these drug trafficking organizations whatever modality they utilize.”
The indictment alleges that in 2018, the defendants, together with other persons known and unknown to the Grand Jury conspired to obtain, transport, and distribute narcotics, including cocaine, from Puerto Rico to New York. This drug trafficking organization is a network of recruiters, coordinators, and transporters traveling from the District of Puerto Rico to the continental United States via commercial flights with narcotics for wholesale distribution, all for significant financial gain and profit.
The defendants indicted are:
Jaime Antonio Nieto-Irizarry
Frankie Javier Piñero-Miranda
Elena García-Muñíz
Sergio Rosario-Cruz
José Luis Acevedo-Atilano
Jaime David Ruiz-Delgado
Tiffany Michelle Zayas-Román
Saraí Denisse Rivera-Díaz
Assistant U.S. Attorneys Jawayria Z. Auchter and Richard T. Passanisi from the Transnational Organized Crime Section arein charge of the prosecution of the case. If convicted, the defendants face a minimum sentence of 10 years in prison and a maximum sentence of life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until proven guilty.
This investigation 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.
# # #
18 December 2020
West Texas Child Predator Sentenced to Life in Federal PrisonRead the Press Release
A west Texas child predator was sentenced yesterday to life in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Michael Don Billups, 56, pleaded guilty in January to interstate transportation of a minor with intent to engage in criminal sexual activity. He was sentenced yesterday afternoon before U.S. District Judge James Wesley Hendrix.
“Mr. Billups committed heinous acts of sexual abuse against the most vulnerable in our society,” said U.S Attorney Erin Nealy Cox. “While no prison term can undo the pain and suffering Mr. Billups has caused, today’s life sentence sends a strong message that child sexual exploitation will be punished to the fullest extent of the law.”
“The FBI is dedicated to protecting the communities we serve from child predators,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “We will continue working with our partners to pursue individuals who commit horrific acts of child exploitation.”
According to court documents, Billups befriended a family while living in New Mexico. Over a period of time, Billups earned the family’s trust and, on occasion, the family’s minor children were allowed to stay at Billups’ residence overnight.
During the summer of 2019, Billups requested to take two of the children on vacation to Florida and Alabama. While at Billups son’s residence in Alabama, Billups sexually assaulted one of the minors.
In October 2019, the family moved from New Mexico to Lubbock, Texas. Shortly thereafter, one of the minor children outcried to his mother stating that Billups had been sexually assaulting him for several years at locations in New Mexico, Texas, and in Alabama.
According to court documents, the parents questioned a second sibling who informed them that he had observed activities between Billups and his sibling that confirmed the outcry.
To avoid detection, Billups told the minors not to tell anyone because it would make him feel sad. He also purchased toys and games for boys.
The FBI’s Dallas Field Office and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Sean Long prosecuted this case.
West Seneca Man Arrested After Investigators Seize Suspect Heroin or Fentanyl from His ResidenceRead 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 Michael Prewitt, 51, of West Seneca, NY, was arrested and charged by criminal complaint with possession with the intent to distribute heroin and fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Richard Antoine, who is handling the case, stated that according to the complaint, on December 16, 2020, law enforcement officers executed a federal search warrant at the defendant’s Slade Avenue residence in West Seneca. During that search, officers seized approximately 1332 grams of suspected heroin or fentanyl, two mechanical presses, commonly used to shape narcotics into bricks, packaging materials, two digital scales, and approximately $18,000 in cash.
In 2003, Prewitt was convicted in federal court of being a felon-in-possession of a firearm and sentenced to serve 37 months in prison.
The defendant made an initial appearance before U.S. District Judge H. Kenneth Schroeder, Jr. and was detained.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Virginia Man Arrested for Online Sextortion SchemeRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Terrell Ashby, 22, of Williamsburg, VA, was arrested and charged by Complaint for cyberstalking a young woman residing in Delaware County, PA in connection with a “sextortion” scheme.
According to the Complaint, in August 2020, Terrell Ashby used a social-media platform to contact a 20 year-old woman (the victim). Ashby, using the online moniker “Jason Brandon,” sent a message to the victim offering her a large sum of money and enticing her to communicate with him on another electronic messaging application. The victim agreed and subsequently engaged in a nude video chat with the defendant.
Unbeknownst to the victim, Ashby recorded portions of their video chat, and subsequently sent her multiple messages demanding $40 in exchange for deleting a nude photo he had captured of her. Specifically, he wrote, in part, “When you send the $40 I will delete your nudes offline” and “Just send the $40 and you’re good lol[.] We aren’t good until you send the $40[,] simply send the $40 and I’ll delete it[.]” The victim then paid the $40 by transferring money via an online payment platform to an account provided by Ashby.
However, that was not the end of Ashby’s alleged abuse of the victim. The defendant then sent the victim multiple messages demanding all of the money in her bank account. In these messages, Ashby threatened to disseminate the nude photos of the victim to her college and other social media friends and followers if she did not pay him more money. For example, Ashby wrote, in part: “Your expose page is being created right now and I’m also going to tag your college[.] I’ll end you[.] I’m not someone you want to [expletive] with[,] go tell your father that… Just [sent] your nudes to [name redacted][.] Already exposed you whore[.] Your life is over[.] You’re dumb if you thought this was over its not over until my $134 is sent[.] I’ll make sure our whole school sees your nudes[.]”
As a result of the defendant’s alleged conduct, the victim became distraught and ingested a number of prescription pills in an attempt to calm her emotional distress. She was rushed to an emergency room in an ambulance and ultimately recovered. While she was hospitalized, Ashby began advertising the nude photos of the victim using various online accounts. For example, the defendaNt posted a photo of the victim on a social-media platform, using an account named “[name redacted]sextape” with the following caption: “Everyone [message] me to see [the victim] nudes … she [video chatted] me naked I have the full [video chat] call saved [message] me to see everyone.”
Ashby was arrested at his residence in Williamsburg, Virginia this morning and is expected to appear before a magistrate judge in the Eastern District of Virginia later this afternoon.
“As detailed in the Complaint, Ashby’s alleged exploitation and manipulation of this victim are abhorrent,” said First Assistant U.S. Attorney Williams. “Protect yourself and avoid falling victim to this type of scheme. And if you have been victimized, know that you are not alone and should not be shamed into silence. Please come forward so that we can investigate and prosecute the offenders. These criminals are counting on your silence to get away with it; don’t let them.”
“Terrorizing someone with threats to release their explicit images is unconscionable,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Imagine the emotional toll it takes on a victim, living in fear of being so personally exposed. Unfortunately, the FBI is seeing more and more sextortion cases, with people of all ages targeted. It’s not some sick game, it’s a crime, and the FBI will continue to unmask these cyber predators and hold them firmly accountable.”
If convicted, the defendant faces a maximum possible sentence of 5 years’ imprisonment, 3 years’ supervised release, and a $250,000 fine.
The case was investigated by the Philadelphia FBI, and is being prosecuted by Assistant United States Attorney Sarah Wolfe. The FBI and U.S. Attorney’s Office in the Eastern District of Virginia also provided assistance in the investigation.
A criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Virginia Defense Contractor Pleads Guilty to Federal Charges in Maryland for Illegally Selling Chinese-Made Body Armor and Related Goods to Federal Agencies and for Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – Arthur Morgan, age 67, of Lorton, Virginia, pleaded guilty today to a federal wire fraud charge, in connection with federal contracts to provide helmets, body armor, and other items to military and other federal entities. Morgan also pleaded guilty to illegal possession of a firearm by a prohibited person, a charge which was originally brought in U.S. District Court for the Eastern District of Virginia, but was transferred to Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; United States Attorney for the Eastern District of Virginia G. Zachary Terwilliger; Special Agent in Charge Eric D. Radwick of the General Services Administration (GSA) Office of Inspector General; Special Agent in Charge Ashan Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; Special Agent in Charge Alison F. Zavada, Naval Criminal Investigative Service; and Assistant Inspector General for Investigations Michael Ryan of the U.S. Department of State Office of Inspector General.
According to his plea agreement, Morgan was the Chief Executive Officer of Surveillance Equipment Group Inc. (SEG) and its relevant division, SEG Armor, both of which Morgan managed from Lorton, Virginia. The GSA enters into government-wide contracts with commercial firms to provide supplies and services that are available for use by federal agencies worldwide. All GSA contracts are subject to the Trade Agreements Act (TAA), which requires that all products listed on GSA contracts must be manufactured or “substantially transformed” in a “designated country.” China is not a designated country under the TAA. Contractors were not allowed, under these GSA contracts, to supply products that did not comply with the TAA. Any such products would have been disqualified from eligibility under the contract. Further, a contractor’s failure to certify that its products complied with the TAA would have disqualified the contractor from eligibility for the contract. A contractor who falsely certified that a product was TAA compliant could not lawfully seek payment from the United States for that product.
As detailed in his plea agreement, Morgan falsely certified that the ballistic vests, helmets, riot gear, and other items he offered for sale under his federal contract were from designated countries, specifically, Hong Kong and the United States. While representing that none of SEG’s products offered to federal agencies under the relevant contract were manufactured in China, Morgan knowingly provided products that Morgan knew had been manufactured in China, in violation of the TAA and the contract. SEG received multiple federal government orders under the contract between 2003 and 2019. Between September 15, 2014 and August 29, 2019, approximately six federal government agencies placed at least 11 orders for ballistic and other law enforcement/security equipment from SEG—which SEG sourced from China in violation of the TAA, as part of the scheme to defraud— totaling approximately $658,866.92.
For example, the U.S. Navy placed an order with SEG for helmets, and Morgan had a series of e-mail communications with Navy contracting personnel in Indian Head, Maryland, including concerning SEG’s inability to meet the agreed-upon delivery schedule. In his e-mails, Morgan falsely advised the Navy contracting personnel that SEG had a factory in southern Virginia, that the helmets for the order “were in production” there, and that the delays were due to a backorder of materials needed for the helmets. To the contrary, the helmets that Morgan provided under the U.S. Navy order originated from China before Morgan sent them to the Navy, in violation of the TAA and the contract. Specifically, Morgan admitted that these products were manufactured by Chinese Company 1, from which Morgan knowingly ordered them.
On February 16, 2016, and March 10, 2016, the Defense Finance and Accounting Service paid SEG $127,069.60 and $191,990.28, respectively, for the U.S. Navy order. For all of the orders, federal government agencies paid SEG at least approximately $488,976.92.
On December 17, 2019, law enforcement executed search warrants at Morgan’s residence in Lorton; at the Louisa, Virginia property that his wife owned and which Morgan had claimed housed SEG’s manufacturing operation; at one of Morgan’s storage units in Mineral, Virginia; and at a rental warehousing location in Springfield, Virginia. Law enforcement recovered: a 12-gauge shotgun; a 9mm semi-automatic firearm with two magazines; a .380-caliber semi-automatic firearm with two magazines; a .38-caliber five-shot revolver, with two speed loaders; 315 rounds of various caliber ammunition; a 30-round 9mm extended magazine; four ballistic vests; five ballistic plates; three black ballistic helmets; one “SEG Armor” ballistic vest manufactured in China; and personal use marijuana with accompanying paraphernalia. At the time that Morgan possessed the firearms, ammunition, and body armor, he had been convicted of at least one crime of violence, specifically, second-degree murder, assault with the intent to murder, rape or rob, and use of a handgun in a crime of violence, in the Circuit Court for Prince George’s County, Maryland on June 1, 1982. As a result of this conviction, Morgan was prohibited from possessing firearms, ammunition, or body armor.
Morgan faces a maximum sentence of 20 years in federal prison for wire fraud and a maximum of 10 years in federal prison for being a felon in possession of firearms and ammunition. 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 George J. Hazel has scheduled sentencing for March 15, 2021, at 10:00 a.m.
United States Attorney Robert K. Hur commended the GSA OIG, the State Department OIG, the ATF, the NCIS, and the U.S. Attorney’s Office for the Eastern District of Virginia for their work in this investigation and prosecution, and recognized the Army Major Procurement Fraud Unit, the Defense Criminal Investigative Service, Homeland Security Investigations, the FBI, the Air Force Office of Special Investigations, and the Coast Guard Investigative Service for their assistance. Mr. Hur thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.
# # #
Violent Felon and Sex Offender Pleads Guilty to Firearms ChargesRead the Press Release
NORFOLK, Va. – A man previously convicted of numerous violent felonies and who is a registered sex offender pleaded guilty today to being a felon in possession of a firearm and possessing a firearm in furtherance of a drug-trafficking crime.
According to court documents, Edward Jamaal Taylor, 38, of Suffolk, was arrested based on evidence that he had allegedly assaulted and kidnapped at gunpoint a witness in a federal drug-trafficking case. Police officers then searched Taylor’s car and recovered a handgun equipped with a laser sight and loaded with a large-capacity magazine, which matched the victim’s description of the firearm used in the abduction. The officers also recovered eight ounces of marijuana and a double-bladed knife from the car. After his arrest, Taylor admitted to owning the gun, possessing the drugs with intent to distribute them, and “possibly hitting” the victim while “recklessly waiving his gun around” during an argument, after which he “assisted” the victim to two different locations.
Taylor has seven convictions for violent felonies, including two for robbery, two for possessing a firearm in connection with a felony offense, two for abduction, and one for rape.
Taylor is scheduled to be sentenced on April 16, 2021. He faces a mandatory minimum sentence of five years and a maximum of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Al Chandler, Interim Chief of Suffolk Police; and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea.
Assistant U.S. Attorneys William B. Jackson and William D. Muhr are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-93.
Vallejo Man Indicted for Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday against Michael Ray Pitre Jr., 35, of Vallejo, charging him with being a felon in possession of firearms, and possession of an unregistered short barrel rifle, U.S. Attorney McGregor W. Scott announced.
According to court documents, the execution of federal search warrants of Pitre’s person, residences, and vehicles led to the discovery of a non-serialized machine gun, a short barrel rifle, and a pistol. The machine gun, which was located in his truck, was loaded with a 60-round extended magazine and was placed on top of a bag containing a mask, additional extended magazines and ammunition, and two tracking devices.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Oakland Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, faces a maximum statutory penalty of 10 years in prison on each charge, a $250,000 fine for the felon in possession charge, and a $10,000 fine for the possession of an unregistered firearm charge. 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.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Upper Peninsula Methamphetamine Co-Conspirators Sentenced to PrisonRead the Press Release
MARQUETTE, MICHIGAN — Three Houghton County co-conspirators have been sentenced to prison for their role in conspiring to distribute more than 50 grams of crystal methamphetamine in the Upper Peninsula.
Ryan Lee Timko, 34, of Houghton, Michigan, was sentenced by U.S. District Judge Paul L. Maloney to 192 months in prison for his role in the conspiracy. Jeremy Joseph Brusso, 37, formerly of Atlantic Mine, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 132 months in prison for his role in the conspiracy. Nicholas Patrick Cornish, 29, formerly of Calumet, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 120 months in prison for his role in the conspiracy.
Timko, Brusso, and Cornish travelled to the Lower Peninsula to get crystal methamphetamine to redistribute in the U.P. Over the course of the conspiracy, they brought over a pound of methamphetamine into the Upper Peninsula.
These sentences were the culmination of a long-term investigation by the Upper Peninsula Substance Enforcement Team (UPSET) into crystal methamphetamine distribution in the west end of the Upper Peninsula. Homeland Security Investigations, Customs and Border Protection Laboratory and Scientific Services Directorate, the Michigan State Police, the Bureau of Indian Affairs, the Houghton County Sheriff’s Office, and the Houghton City Police assisted UPSET during the course of the investigation.
The Upper Peninsula continues to struggle with individuals, like these defendants, bringing methamphetamine into the U.P. Those who choose to engage in this conduct are on notice of the serious consequences for bringing this dangerous drug into our communities,” said U.S. Attorney Andrew Birge.
“Dangerous drugs like crystal methamphetamine destroy communities and families,” said D/Lt. Timothy Sholander, Michigan State Police – UPSET Commander. “We hope the sentences handed down in this case serve as a reminder to other drug dealers that the distribution of methamphetamine is a losing game and that the men and women on UPSET will continue to fight to support the communities and families in Michigan’s Upper Peninsula.”
Assistant U.S. Attorneys Ted Greeley and Alexis Sanford prosecuted the case.
###
United States Brings Federal False Claims Act Suit Against Newark LandlordRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that the United States filed a civil complaint against Goodfish Enterprises, LLC and its principal, Christopher Lukacs, in the United States District Court for the District of Delaware. The United States alleges that Goodfish and Lukacs violated the False Claims Act in connection with their participation in Department of Housing and Urban Development’s Housing Choice Voucher Program (HCVP), commonly known as “Section 8.” The HCVP is the federal government’s primary program for helping low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market.
Goodfish and Lukacs own more than 90 properties in the Sparrow Run housing development in Newark, Delaware, many of which are leased to low-income residents who receive rental assistance from the federal government through the HCVP. Since July 2015, they have received more than $950,000 in federally funded housing assistance payments.
HCVP regulations require program participants to certify that they are not charging a higher rent to tenants who receive assistance through the HCVP than they charge unassisted tenants in comparable housing units. The United States alleges that Goodfish and Lukacs frequently charged HCVP participants higher rents than unassisted tenants. As a result, the United States alleges these required certifications were false and fraudulent. In addition, the United States alleges that Goodfish and Lukacs repeatedly provided false information on HCVP forms regarding the rents they received from unassisted tenants to justify the inflated rents they sought to charge for HCVP rentals.
“When federal taxpayer money is used to provide housing assistance for low-income Delaware residents, the government must ensure that the money is well spent and that the rent being charged is appropriate,” said U.S. Attorney Weiss. “Every month for at least six years, Goodfish and Lukacs falsely certified that the rents they charged Section 8 tenants were no higher than the rents for unassisted tenants. Time and again, they inflated the rents charged to needy Delawareans and justified these rents with additional false statements, leaving the government to foot the bill. Today’s civil complaint demonstrates that this office will aggressively work to recover public money from those who fraudulently seek to overcharge the federal government.”
This matter was investigated by the Department of Housing and Urban Development Office of Inspector General. The investigation and litigation are being handled by Assistant U.S. Attorney Dylan J. Steinberg.
The complaint contains allegations only, and not findings of liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
United States Attorney Thomas L. Kirsch II Announces Departure from OfficeRead the Press Release
HAMMOND, INDIANA– United States Attorney Thomas L. Kirsch II announced today that he has resigned from the Department of Justice, effective December 18, 2020, at which time he assumed the duties of a United States Circuit Judge for the Seventh Circuit.
Mr. Kirsch was appointed to the position of United States Attorney by President Trump on October 6, 2017.
“I commend Tom Kirsch for his many years of service as United States Attorney and as a member of my Advisory Committee of United States Attorneys. Tom has faithfully led his office in Northern Indiana with integrity and an unrelenting commitment to the rule of law. Under Tom’s leadership, his Office has successfully and aggressively focused on prosecuting violent crimes, especially illegal gang activity in Northwest Indiana, and public corruption. Tom has also been a valuable member of my Advisory Committee of United States Attorney’s since 2019, advising me and the Department of Justice on policy and law enforcement matters. The Department looks forward to Tom’s service to our country as a 7th Circuit Judge,” said Attorney General William P. Barr.
“Thomas Kirsch is a lifelong Hoosier, who has worked to take on public corruption in Indiana, and has led a diverse and exemplary career. I am proud the U.S. Senate has confirmed Mr. Kirsch for the United States Court of Appeals for the Seventh Circuit,” said Senator Mike Braun
“Thomas Kirsch’s qualifications, experience, and temperament will make him the kind of judge that every Hoosier can be proud of. Throughout this process, Kirsch has made it clear that he believes in the rule of law and he understands the role of a judge is to apply the law and Constitution as written. Today, the Senate agreed Thomas Kirsch is the right judge to fill the current vacancy on the United States Court of Appeals for the Seventh Circuit, and I trust he will serve with distinction for years to come,” said Senator Young.
“Serving the citizens of Northern Indiana as United States Attorney has been the privilege and honor of a lifetime,” said Mr. Kirsch. “I believe that my Office and the talented and dedicated career civil servants that served along with me are among the best in the country. I am proud of what we have accomplished together over the past several years. I am also very grateful for the professional and hardworking federal, state, and local law enforcement officers serving Northern Indiana. Their impressive work is necessary to the continuing fight to reduce crime. I am looking forward to continuing to serve my country in a new role. I am very thankful for the support and confidence of Senator Young and Senator Braun, and I am thankful to the President for my appointment as United States Attorney and now as a Circuit Judge for the Seventh Circuit.”
“Thomas Kirsch has served Indiana with distinction and integrity the last three years as U.S. Attorney for the Northern District of Indiana, and proved time and time again his commitment to serving Hoosiers,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “I would like to thank him for his dedicated service and wish him the best in this next chapter of his career.”
“While serving as the U.S. Attorney in the in the Northern District of Indiana, Judge Kirsch’s leadership was highly respected among local, state and federal law enforcement,” commented Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “On behalf of the men and women of ATF, we wish him continued success as he serves on the 7th Circuit Appellate Court.”
“Tom Kirsch has admirably served as United States Attorney for the Northern District of Indiana, relentlessly working to protect citizens from the effects of drug trafficking and drug-related violence. Although Tom has vigorously prosecuted violent drug trafficking crimes and illegal gang activity, he is compassionate and fair-minded, considering the humanity in all circumstances and ensuring equity in all matters. I am glad that Tom has chosen to remain in public service as a 7th Circuit Judge. The country will continue to benefit from his service,” said Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration, Chicago Division.
United States Marshal Todd Nukes said, “As the U.S. Attorney, Tom Kirsch has been the ultimate professional and a man of high integrity. He remained focused and committed to fighting violent crime, drugs, and other offenses for the safety of the people in Northern Indiana.”
During his tenure as U.S. Attorney, Mr. Kirsch served as the chief federal law enforcement officer in the Northern District of Indiana, which includes 32 of the State’s 92 counties, with offices in Hammond, South Bend, and Forth Wayne. As U.S. Attorney, Mr. Kirsch oversaw the investigation and prosecution of all federal criminal violations in the Northern District of Indiana and represented the United States in all civil litigation occurring in the District. The U.S. Attorney’s Office focuses on prosecuting violent crime, drug related crime, and white collar offenses, in addition to civil and appellate litigation in federal courts.
Some of the more notable cases and accomplishments during Mr. Kirsch’s tenue are the prosecution of United States v. Samantha Elhassani, who received 78 months imprisonment for financing the ISIS terrorist group; the public corruption prosecution and guilty plea in United States v. Joseph Stahura, who was the former mayor of Whiting, Indiana; the prosecution of United States v. Jerimiah Farmer, a Latin King who was sentenced to life imprisonment for a double homicide committed in furtherance of gang activity; the gang prosecution of United States v. Ivan Reyes and Jeron Williams, Latin Count gang members who pled guilty to racketeering conspiracy and admitted their involvement in the homicides of Lauren Calvillo and Christopher White; the prosecution of United States v. Eric Weiler, who was sentenced to 60 years in prison for production of child pornography and explosives; the prosecution of United States v. Jay Joshi for illegally prescribing opioids; the prosecution of United States v. Allen Bates and many others, a multi-defendant drug and organized crime case involving the seizure of more than 120 kilograms of cocaine, several kilograms of heroin, numerous vehicles, and approximately $6.3 million in cash; and the prosecution of United States v Eric Krieg, who was sentenced to 29 years in prison for his role in an explosion that occurred at the Post Office in East Chicago, Indiana.
During Mr. Kirsch’s tenure as United States Attorney, his Office indicted over 640 firearms cases and prosecuted over 50 gang members on racketeering-related charges, including members of the Latin Kings, Latin Counts, Latin Dragons, Imperial Gangers, and Two Six Nation street gangs, obtaining convictions in numerous cases involving cold case gang homicides committed in Northern Indiana and neighboring jurisdictions. Also during his tenure, his Office’s Civil Division collected approximately $8.8 million in criminal restitution, $622,000 in criminal fines, and $17.4 million in civil actions, totaling more than $26 million collected on behalf of the government. As U.S. Attorney, Mr. Kirsch oversaw the expansion of both the Criminal and Civil Divisions, adding more prosecutors and staff to work cases in the District.
Prior to becoming United States Attorney, Mr. Kirsch was a partner at the international law firm, Winston & Strawn LLP. Before joining Winston & Strawn, Mr. Kirsch served as an Assistant U.S. Attorney in the Northern District of Indiana from 2001-2008. In 2006 and 2007, while on detail from the U.S. Attorney’s Office, Mr. Kirsch served as Counsel to the Assistant Attorney General at the U.S. Department of Justice, Office of Legal Policy in Washington, DC. Prior to serving as an Assistant U.S. Attorney, Mr. Kirsch served as a law clerk to the Honorable John D. Tinder in the Southern District of Indiana.
Mr. Kirsch has received numerous local and national awards, including the Department of Justice Director’s Award for Superior Performance and awards from The American Lawyer, The National Law Journal, Law360, and Benchmark Litigation. Mr. Kirsch is a Fellow of the American College of Trial Lawyers. Mr. Kirsch received a B.A. in Economics and Political Science in 1996 from Indiana University and a J.D. in 1999 from Harvard Law School.
US Attorney’s Office, Northern Indiana Operating StatusRead the Press Release
HAMMOND- The United States Attorney’s Office announced that Gary T. Bell is now the Acting United States Attorney.
The Vacancies Reform Act (VRA), 5 U.S.C. § 3345(a)(1), provides that when a presidentially appointed U. S. Attorney resigns, the First Assistant U.S. Attorney (“FAUSA”) of that office automatically becomes Acting U.S. Attorney. As a result of Thomas L. Kirsch’s resignation, Gary T. Bell is now the Acting United States Attorney for the Northern District of Indiana.
Mr. Bell has held the FAUSA position since earlier this year and has been in a Supervisory Attorney position since 2014. Mr. Bell joined the U.S. Attorney’s office in June of 1999 as an Assistant United States Attorney. At that time, Mr. Bell focused on violent and drug related crimes and worked mostly with the GRIT task force. He later shifted positions and focused on public corruption and white-collar crime cases before becoming a supervisor. Prior to his 20 plus year career with the U.S. Attorney’s Office, Mr. Bell was a Lake County Deputy Prosecutor. He also worked in private practice at the Merrillville law firm of Spangler, Jennings and Dougherty.
He earned a B.A. degree in Economics from the University of Michigan in May 1987 and his law degree (Juris Doctor) from Indiana University (Bloomington) in May 1990.
Under Mr. Bell’s leadership, the office looks forward to continued cooperation with federal, state and local law enforcement agencies in our joint effort to promote public safety throughout the Northern District of Indiana.
U.S. Attorney’s Office Collects over $3.9 Million for U.S. Taxpayers in Fiscal Year 2020Read the Press Release
PORTLAND, Maine: U.S. Attorney Halsey B. Frank announced today that the U.S. Attorney’s Office for the District of Maine collected more than $3.9 million in criminal, civil and asset forfeiture actions in Fiscal Year (FY) 2020.
The office collected $2,510,154.90 in criminal and civil actions in FY 2020. Of this amount, $1,266,454.39 was collected in criminal actions and $1,243,700.51 was collected in civil actions.
Working with partner agencies and divisions, the office also collected $1,402,885.75 in asset forfeiture actions in FY 2020. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“The U.S. Attorney’s Office works for the taxpayers,” said U.S. Attorney Frank. “So it is always gratifying to learn that our team’s efforts have led to the successful collection of funds on their behalf. We will continue to seek justice for crime victims and to ensure that criminals do not profit from their illegal behavior.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
As a whole, the Justice Department collected more than $15.9 billion in civil and criminal actions in FY 2020. This amount represents more than five times the approximately $3.2 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period. The total includes all monies collected through Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $13.5 billion in payments made directly to the Justice Department, and more than $2.4 billion in indirect payments made to other federal agencies, states and other designated recipients.
U.S. Attorney’s Office Charges Nevada Man for Allegedly Murdering Indigenous Woman on ReservationRead the Press Release
RENO, Nev. — A Nevada man was arrested on December 15, 2020, for allegedly murdering an indigenous woman on the Pyramid Lake Indian Reservation, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
Michael Burciaga, 33, was charged with second degree murder within Indian Country. Burciaga made his initial appearance before U.S. Magistrate Judge William G. Cobb, who scheduled a jury trial for February 22, 2021.
“Native Americans face particularly high rates of violence, including intimate partner violence. To increase public safety at tribal communities within Nevada, our office helped launch the MMIP Initiative last year,” said U.S. Attorney Trutanich. “Because combatting domestic violence is a top priority, our prosecutors were able to work with our law enforcement partners to take swift action here — filing preliminary charges within hours — and we have continued to coordinate in the investigation of this case.”
“The FBI stands strongly with our tribal partners in our joint commitment to hold those responsible to justice,” said Special Agent in Charge Rouse. “Violent crimes, such as this horrendous act, will never go unchallenged.”
According to allegations in the criminal complaint, Burciaga stabbed the victim with multiple knives during a domestic violence incident. Shortly after midnight on December 15, Pyramid Lake Police Department officers responded to an emergency call at a house in Nixon, Nevada. Officers located the victim — a registered member of the Pyramid Lake Paiute Tribe — in the master bathroom. Officers then located a man, later identified as Burciaga, outside the residence.
As alleged, officers observed a laceration on Burciaga’s hand and rendered first aid, during which Burciaga told officers in sum and substance: “I already know what happened, and I know what I did, which is why I slit my wrist.” After officers bandaged his hand, Burciaga was transported by ambulance to a hospital. While in transit, Burciaga told officers that the victim was pregnant with his child.
If convicted, Burciaga faces a statutory maximum sentenced of life imprisonment. The sentencing of a defendant will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
A complaint contains merely allegations, and every defendant is presumed innocent until and unless proven guilty in a court of law.
The FBI and Pyramid Lake Police Department are investigating the case, which is being prosecuted by Assistant U.S. Attorney Penelope Brady.
In November 2019, the Department of Justice launched the Missing and Murdered Indigenous Persons (MMIP) Initiative, a national strategy to address missing and murdered Native Americans. The MMIP Initiative includes the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis, and training to support local response efforts. The District of Nevada was one of the first 11 U.S. Attorney’s Offices nationwide where an MMIP Coordinator was assigned, working closely with federal, tribal, state and local agencies to develop common protocols and procedure for responding to reports of missing or murdered indigenous people.
U.S. Attorney announces personnel awards, management appointmentsRead the Press Release
COLUMBUS, Ohio – United States Attorney David M. DeVillers announced today his selections for annual awards for outstanding performance, new management appointments, and his district’s recipients of national director’s awards.
“There are so many employees – this year in particular – who are worthy of recognition. A lot of people have stepped up this year and performed their jobs in an extraordinary manner during a challenging time,” U.S. Attorney DeVillers said.
Mr. DeVillers presented seven internal awards.
Senior Litigation Council Douglas W. Squires was awarded Outstanding Performance by an Assistant U.S. Attorney. Mr. Squires was recognized for prosecuting a number of complex cases, including white collar and national security matters.
Outstanding Contribution to the Mission of the U.S. Attorney’s Office was awarded to Elizabeth Rabe, Andrew Hunt, Amy Smith, Ali Gezinski, Cathy Robillard, Leslie Ide and Acquanette Lindsay. The group was recognized for their action in response to the November 2019 shooting death of Dayton Police Detective and DEA Task Force Officer Jorge Del Rio. The U.S. Attorney’s Office is currently prosecuting a number of related cases, and has filed murder, firearms and narcotics charges.
Cathy Robbilard was named as the recipient of the Outstanding Performance in Legal Support award for her work in handling the discovery in a number of murder cases in the Dayton office.
Administrative Officer Jessica Gourley was honored with the Outstanding Performance in Administration award this year. Ms. Gourley has led the district’s administrative team in keeping each of the district’s three offices functioning while safely addressing the Coronavirus pandemic.
Lillian Curtis was awarded Outstanding Performance by a Contract Employee. Ms. Curtis manages GSA requirements and the physical space of the Dayton office, where she primarily serves as the front desk receptionist.
Kevin Koller was recognized for his contributions to the district’s Appellate Division. Mr. Koller was involved in 29 appellate cases in some capacity in 2020, including two published decisions.
John Stark and Angela Trumbauer were recognized for their contributions to the district’s Civil Division, including managing demanding caseloads.
The United States Attorney also announced his appointments for three management positions, to be filled upon the retirement of Civil Chief Mark T. D’Alessandro and Assistant Deputy Criminal Chief Gary Spartis. Mr. D’Alessandro served the U.S. Attorney’s Office for 25 years, and Mr. Spartis for more than 33 years.
“These men are true public servants. They are humble, hard workers who dedicated their careers to the pursuit of justice for the citizens of the Southern District of Ohio,” U.S. Attorney DeVillers said. “Without a doubt, our district is better because of them.”
The new management selections include:
- Civil Chief – Matthew Horwitz,
- Deputy Civil Chief – Andrew M. Malek, and
- Assistant Deputy Criminal Chief – Jessica W. Knight
Mr. Horwitz joined the U.S. Attorney’s Office as a Civil AUSA in December 2012. In May 2014, Matt was designated the District’s Deputy Civil Chief, and he held that position until October 2020, when he became the District’s Civil Chief.
Mr. Malek has served as an Assistant United States Attorney for the Southern District of Ohio since 2002. He has served as the Affirmative Civil Enforcement Coordinator for the District since 2008, was appointed as a Senior Trial Counsel, and previously worked as an AUSA on defensive civil matters.
Ms. Knight joined the Southern District of Ohio as an Assistant United States Attorney in Cincinnati in 2012. She currently serves in the Columbus office and focuses on national security and white collar crime.
Finally, two district employees were selected this year as recipients of the Department of Justice 2020 Director’s Awards by the Executive Office of United States Attorneys in D.C. They include:
- Superior Performance as an Assistant United States Attorney, Appellate – Mary Beth Young
Appellate Chief Young was recognized for successfully handling the appeal in the Columbus office’s Short North Posse prosecution, U.S. v Ledbetter et al. Ms. Young’s appellate work preserved life sentences for five members, including the de facto leader of the violent gang. The combined appeal raised 15 distinct claims.
- Superior Performance in Public Affairs – Jennifer Thornton
Public Affairs Officer Jennifer Thornton was recognized for clearly and accurately coordinating local, national and international media coverage of hundreds of cases and issues in the Southern District of Ohio. This included managing media surrounding cases and events like the United States’ first extradition of an alleged Chinese spy, federal charges arising out of the August 2019 mass shooting in Dayton, a priest from Cincinnati accused of sexually exploiting children in the Philippines, and others.
“I can’t imagine a more difficult time to do our job, and every single person in our district has met the challenge. Even with one arm tied behind our back, we’re working to make a difference and seek justice for the people in the Southern District of Ohio,” DeVillers added.
# # #
U.S. Attorney Stephen J. Cox Warns that the New Vaccine Will Bring New Opportunities for FraudRead the Press Release
BEAUMONT, Texas - With millions of people waiting for their turn to get the new COVID vaccine, it is expected that scammers will use that opportunity to prey on those willing to pay for it.
“Since the beginning of the pandemic, we’ve seen fraudsters taking advantage of public programs and supply shortages – we expect the new vaccine to provide similar platforms for deceit, and we will be ready to prosecute those responsible for vaccine-related fraud to the fullest extent of the law,” said U.S. Attorney Stephen J. Cox.
States will determine how their own vaccination plans will be rolled out but there is not expected to be any out-of-pocket charges during the public health emergency. Nevertheless, the FTC and FBI similarly warn that fraudsters may try to convince people to pay for early access to the vaccine, or to pay for the vaccine itself.
Always be suspicious of unsolicited phone calls, emails, or home visits that ask for payment information in order to receive a vaccine. No one from a vaccine distribution site will ask for your credit card or banking information. If you want to verify whether COVID-19 related solicitations or treatments are legitimate, call your health provider.
Millions of people fall victim to scams every year. If you think you have become a victim, contact the National Center for Disaster Fraud Hotline at 1-866-720-5721 or online at www.justice.gov/coronavirus. You can also submit a report to https://ReportFraud.ftc.gov.
U.S. Attorney Sofer Announces Operation Undaunted in AustinRead the Press Release
With murders in Austin up 55% over the previous year, U.S. Attorney Gregg N. Sofer, joined by dozens of federal, state and local law enforcement officials, announced in Austin today the implementation of Operation Undaunted, a program designed to tackle the rising violent crime rate, interrupt violence, protect innocent life and restore peace to Austin neighborhoods.
“When you defund the police, relax enforcement of existing criminal law, and release repeat offenders and violent criminals into our streets, increased violence is exactly what you can expect,” said U.S. Attorney Sofer. “Despite the challenges of the coronavirus and the unfair vilification of the entire law enforcement community, we remain undaunted in our commitment to protect the residents of central and west Texas.”
Operation Undaunted is a four-prong approach that draws on the partnerships among federal, state and local law enforcement coupled with prosecution authorities to combat violence. The first component is to increase the use and exploitation of the National Integrated Ballistic Information Network (NIBIN) to focus on the most violent offenders in local communities—shooters. Aggressively comparing ballistics evidence gathered from crime scenes as well as from recovered firearms to uncover ties between offenders and violent crimes is of utmost importance. The second component focuses on removing from our communities incorrigible, repeat offenders who fail to rehabilitate; continue to commit violent acts, including domestic violence; and pose a continuing threat and ongoing danger to law-abiding citizens and victims. The third component call for assertive federal prosecution of the most violent and serious robbery cases. Robberies in which a firearm was used, are committed by gang members, cartels or crews, or that involved thefts from gun stores and other federal firearms licensees that span multiple jurisdictions will receive special attention. The fourth component is collaborative engagement with military authorities to investigate and prosecute violent crimes that occur on military bases while adhering to Posse Comitatus.
Operation Undaunted represents federal, state and local law enforcement’s commitment to combat violence and restore peace to central and west Texas communities. “We simply cannot, and will not, stand idly by and watch as violent criminals take over the streets of our communities and harm innocent victims,” said U.S. Attorney Sofer.
#####
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Men Charged After Fraudulently Applying for Paycheck Protection Program LoansRead the Press Release
Two men were charged this week after fraudulently applying for Paycheck Protection Program (PPP) forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced U.S. Attorney Trent Shores.
Rafael Maturino, 40, of Broken Arrow, was charged with bank fraud after executing a scheme to defraud First Bank of Owasso when applying for a PPP loan under false pretenses on April 28, 2020. Adam Winston James, 44, of Tulsa, was charged with aggravated identity theft after he executed a scheme to defraud Regent Bank when he applied for a PPP loan under false pretenses on May 6, 2020. The two men were charged separately but worked together to carry out their schemes.
“The Paycheck Protection Program was developed to ease the pain of COVID-19 economic restraints on working Americans,” said U.S. Attorney Trent Shores. “It’s shameful to see this type of criminal conduct amid a pandemic when so many of our fellow citizens are struggling. Rest assured, my team is committed to protecting these federal dollars from fraudsters.”
According to court documents, Maturino applied for a PPP loan on behalf of a company he claimed to own and operate, Maturino Enterprises, Inc. Maturino submitted forms that misrepresented the company’s payroll expenditures, amount of taxes paid, and the number of people employed. As a result of his alleged scheme, he received $97, 800 from the bank.
James is alleged to have applied for a PPP loan on behalf of a company he claimed to own and operate, Velocity Innovations LLC. As part of the application, James used the identification of at least seven other people without their knowledge, fraudulently claiming they were employees of Velocity Innovations LLC. James received $125,900 from the bank as a result the scheme.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program (PPP). In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use a certain percentage of the loan towards payroll expenses.
Alleged violations of federal law must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; Small Business Administration Office of Inspector General; and FBI are the investigative agencies. Assistant U.S. Attorney Victor A.S. Régal is prosecuting the case.
Two Lawrence Brothers Indicted for Trafficking FentanylRead the Press Release
BOSTON – Two brothers were indicted by a federal grand jury this week in connection with conspiring to distribute hundreds of grams of fentanyl in Lawrence.
Jose Manuel Carmona-Mercedes, 30, and Gabriel Carmona-Pimentel, 35, were indicted on charges of conspiracy to distribute 400 grams or more of fentanyl, distribution of fentanyl, and possession with intent to distribute 400 grams or more of fentanyl.
According to charging documents, in late 2019, investigators identified Carmona-Mercedes and Carmona-Pimentel as large-scale fentanyl dealers operating in Lawrence. On four occasions in January and February 2020, an undercover police officer ordered fentanyl from Carmona-Mercedes. After the undercover officer ordered a quantity of fentanyl and negotiated the price, either Carmona-Pimentel or Carmona-Mercedes or both would deliver the fentanyl to the undercover officer from a base of operations on Lexington Street in Lawrence. On Feb. 25, 2020, after Carmona-Pimentel delivered 220 grams of fentanyl to the undercover officer, Carmona-Mercedes and Carmona-Pimentel were arrested. A search of the Lexington Street location resulted in the seizure of 1200 grams of fentanyl, documents in Carmona-Mercedes and Carmona-Pimentel’s names, plastic baggies commonly used to package drugs for street-level sales, blenders, suspected cut and digital scales.
The charge of conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl provides for a minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of distribution of fentanyl carries a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Lawrence Police Chief Roy Vasque; and Essex County District Attorney Jonathan Blodgett made the announcement today. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tulsa Man Sentenced for Fraud Scheme: Broke into Dozens of Vehicles and Stole Purses, Laptops and AmmunitionRead the Press Release
A Tulsa man was sentenced Thursday for various charges brought against him including wire fraud, illegally possessing ammunition, and possessing methamphetamine with intent to distribute, announced U.S. Attorney Trent Shores.
U.S. District Court Judge Gregory K. Frizzell sentenced William Drew Davis, 36, to 66 months in federal prison followed by four years of supervised release. The judge further ordered Davis to pay $51,740.55 in restitution representing the goods obtained by theft and fraud, and damage caused to property.
“William Davis, driven by a longstanding drug habit, pilfered people’s cars to get his hands on anything to make a quick buck,” said U.S. Attorney Trent Shores. “Theft, stolen ammunition, and drugs are a combination that never leads to anything good. The nearly six-year sentence shows that my office will not allow our streets to be polluted with illegal activity, no matter the severity. I want to thank the Tulsa and Jenks Police Departments, in particular, for the extensive work they put into the investigation of Davis’ wide-ranging crimes.”
Previously, Davis pleaded guilty to breaking into a victim’s vehicle and stealing a purse containing a debit card. He further admitted to fraudulently using the card to purchase items from various stores, spending approximately $1,350. Davis also admitted to breaking into a different vehicle and stealing 60 rounds of ammunition, knowing he was a convicted felon. He also pleaded guilty to possessing 130 milligrams of methamphetamine with the intent to distribute it to others.
In sentencing Davis, the Court also considered information concerning over two-dozen vehicle burglaries committed by Davis, in which he typically smashed car windows and grabbed purses, wallets, and other items such as laptops and personal papers, while the victims were dropping children at school, exercising at gyms, or going for a run at parks. Davis then used the stolen credit/debit cards to buy merchandise at stores across the Tulsa area. Davis was arrested by Tulsa Police officers in October 2019 while in possession of a stolen car and dozens of items taken during car burglaries.
The U.S. Secret Service, Tulsa Police Department and Jenks Police Department conducted the investigation. Assistant U.S. Attorney Kevin C. Leitch prosecuted the case.
Tri-State Area Methamphetamine Dealer Sentenced to Federal PrisonRead the Press Release
A Sioux City man who distributed large quantities of methamphetamine in and around the Tri-State area was sentenced today to 10 years in federal prison.
Tyler Hugh Clark, age 39, from Sioux City, Iowa, received the prison term after a February 18, 2020, guilty plea to conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
In a plea agreement, Clark admitted that between January 2018 and July 30, 2019, he conspired and participated in the distribution of 500 grams or more of pure methamphetamine in and around the Tri-State area. Clark was also in possession a firearm to protect himself, his drug business, and to further his participation in the methamphetamine conspiracy.
Sometime in January or early February of 2019, defendant began getting methamphetamine from Omaha for resale in and around Sioux City. Defendant got approximately 2 pounds of methamphetamine each week for 5 months, until his source of supply was arrested by law enforcement. After that, he found a new source and received about 3 more pounds of methamphetamine to sell. Defendant had over a half-pound of methamphetamine on his motorcycle when he was arrested in July of 2019.
Clark was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Clark was sentenced to 120 months’ imprisonment (60 months’ for conspiracy to distribute methamphetamine and 60 months’ for possession of a firearm in furtherance of a drug trafficking crime). He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Clark is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; and the Iowa Division of Narcotics Enforcement. Also involved in this investigation were the Sergeant Bluff Police Department and the Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4063.
Follow us on Twitter @USAO_NDIA.
Toledo woman charged after receiving a package containing a kilogram of fentanylRead the Press Release
U.S. Attorney Justin Herdman announced today that a federal grand jury sitting in Cleveland has returned a two-count indictment charging Erika Vega Ramirez, age 31, of Toledo, Ohio, with conspiracy to possess with the intent to distribute controlled substances and attempted possession with the intent to distribute fentanyl.
“Fentanyl has killed thousands and thousands of Ohioans,” said U.S. Attorney Justin Herdman. “This defendant is alleged to have possessed enough fentanyl to kill 500,000 more. I am grateful for the actions of our law enforcement partners who prevented these deadly drugs from reaching the streets.”
“Battling the distribution of synthetic drugs in the U.S. is one of the Postal Inspection Service’s highest priorities,” said Inspector in Charge Lesley Allison. “This case proves Postal Inspectors and the Drug Enforcement Administration remain steadfast in their partnership to bring those who choose to distribute these illegal and dangerous narcotics to justice. This should serve as an example to criminals dealing in these dangerous and illegal substances that we are unwavering in our mission to identify and disrupt their illegal activity.”
“The defendant in this case had more than a kilogram of fentanyl in her possession — enough to give a deadly dosage to more than 500,000 people,” said DEA Special Agent in Charge Keith Martin. “Working with our federal partners at the U.S. Postal Service, we were no doubt able to save countless lives.”
According to court documents, on or about November 17, 2020, Postal Inspectors with the United States Postal Inspection Service (USPIS) identified a parcel suspected of containing drugs addressed to a residence on E. Broadway St in Toledo, Ohio. On November 18, A canine used to detect narcotics gave a positive alert on the parcel, and a search warrant was obtained. Inside the package, Inspectors discovered that the parcel allegedly contained 1001 grams of fentanyl.
On November 19, 2020, the criminal complaint states that law enforcement agents with the USPIS and Drug Enforcement Agency (DEA) conducted a controlled delivery of the parcel with the fentanyl replaced.
The criminal complaint states that an unidentified female, later identified as the defendant, opened the front door, accepted the parcel and brought it inside the residence. Shortly thereafter, Postal Inspectors and DEA task force officers executed a search warrant and detained the defendant.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including each defendant’s prior criminal record, if any, each defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the United States Postal Inspection Service and Drug Enforcement Agency. This case is being prosecuted by Assistant U.S. Attorney Deyana Unis.
To Combat Highest Level of Violent Crime in City’s History, DOJ Awards $400,000 to Support New Gun Prosecutor in LouisvilleRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman is pleased to announce $400,000 in Department of Justice funding to hire a special prosecutor to try federal firearms cases originating in Louisville, Kentucky. The first of its kind award, one of only 13 in the country through DOJ’s Project Guardian, supports violence reduction efforts in Louisville along with the federal carjacking task force, greater ATF and FBI engagement with LMPD, and the roll-out of the Group Violence Intervention (GVI) approach.
“We must bring a sense of urgency to the historic levels of slaughter and wounding that has been 2020 in Louisville, with this innovative new prosecutorial model for targeting trigger pullers doing just that,” said U.S. Attorney Russell Coleman. “Today’s announcement results from a growing partnership with one of our Commonwealth’s most thoughtful and experienced prosecutors, Tom Wine, and allows us to further draw upon the talents of a dedicated public servant like new Special Assistant U.S. Attorney Josh Porter. Lives will be saved because of it.”
“Keeping its citizens safe is the primary responsibility of government,” said Attorney General William P. Barr. “Cities plagued by violent crime need the resources to tackle it, and these grant awards will help do that. On the enforcement side, Real Time Crime Centers will make policing more efficient and targeted; and on the prosecution side, Special Assistant U.S. Attorneys will help bring more federal firearms cases to justice.”
A grant to the Jefferson County Commonwealth’s Attorney’s Office will support the hiring of a full-time local prosecutor who will be empowered to try firearms cases in federal court. Prosecuting gun crimes is central to the Justice Department’s strategy under Operation Legend and other violence reduction initiatives led by the Department. These efforts follow a sustained, systematic and coordinated approach to gun violence in which federal law enforcement agencies work closely with state and local officials to fight violent crime. Funding comes from the Bureau of Justice Assistance, a component of the Justice Department’s Office of Justice Programs.
“Russell Coleman learned of a unique opportunity in the Spring of 2020 to fund a position at his office using a state prosecutor. I was excited by the prospect of the Office of the United States Attorney and the Office of Commonwealth’s Attorney to further collaborate as we deal with the scourge of gun violence and drug trafficking in our community,” said Jefferson Co. Commonwealth’s Attorney Tom Wine. “In June when we learned our offices would be one of only 13 in the United States to be awarded a Project Guardian grant, we immediately sought out applicants for this position.”
In a ceremony today, Assistant Commonwealth’s Attorney Joshua Porter was sworn-in as a Special Assistant United States Attorney. Porter has been employed by the Commonwealth’s Attorney’s Office as an Assistant Commonwealth’s Attorney since 2014. He was promoted to the Deputy Chief of the Narcotics Division in 2018. Porter previously served in the United States Army as an Armored Cavalry Officer serving two combat tours in Iraq. He was awarded a bronze star and purple heart.
“Josh has already served our county and community on numerous levels,” Wine continued. “His service in the United States Army as an Armored Cavalry Officer included two combat tours in Iraq, where he was twice recognized for his bravery. Upon returning to civilian life he enrolled at the Brandeis School of Law. His achievements in law school included the Robert W. Zollinger Award, named for an outstanding prosecutor who served in our office in the 1960’s and 70’s. After law school, Josh worked at the office of the Jefferson County Attorney. Since October 2014 he has worked at our office and has served as the deputy division chief of the Narcotics Unit.
“While we will continue to pursue alternatives of treatment for those addicted to drugs, those who use guns and violence to perpetuate their drug trafficking must be swiftly and strongly prosecuted,” Wine said. “This enhanced collaborative effort will help us identify the offenders that are driving violent crime rates in the most violent areas of Metro Louisville. It will ensure prosecution of those offenders in the federal courts. Our Commonwealth’s prosecutors will identify those qualifying offenders for Josh and the other Assistant United States Attorneys and our federal law enforcement partners such as ATF. I am grateful for the continuing efforts of our federal, state, and local law enforcement partners to protect our citizens and make the best use of our resources.”
“This Justice Department award will go a long way toward combatting the recent, and unacceptable increase in violent crime across Metro Louisville,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “ATF looks forward to the addition of a special prosecutor in our mission to reduce gun violence in our communities. Arresting and successfully prosecuting these armed violent offenders and their sources, is a shared commitment with local, state, and federal law enforcement.”
Project Guardian is a nationwide program launched in November 2019 by Attorney General William Barr as a complementary effort to the Project Safe Neighborhoods Program (PSN). Project Guardian uses existing gun laws to comprehensively attack gun violence through the aggressive enforcement of existing laws in an effort to incapacitate the most dangerous and violent offenders.