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17 December 2020
Eighth Circuit Reverses Tax Court in Case Involving Statute of Limitations and Bona Fide ResidencyRead the Press Release
The Eighth Circuit Court of Appeals issued a published opinion on Tuesday, Dec. 15, 2020, holding for the government in a case involving the statute of limitations on assessment in the context of bona fide residency in the U.S. Virgin Islands (USVI), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
In Coffey v. Commissioner, No. 18-3256, the Eighth Circuit Court of Appeals reversed the decision of the U.S. Tax Court that the IRS’s determinations were barred by the statute of limitations on assessment. Taxpayers owned a profitable publishing enterprise that ostensibly relocated to the USVI, and Judith Coffey claimed to be a USVI resident thereafter. The couple filed joint tax returns with the Virgin Islands Bureau of Internal Revenue (VIBIR), but not with the IRS. The VIBIR sent the first two pages of the Coffeys’ returns to the IRS as part of its normal process to claim “cover over” funds (i.e., tax revenue) from the U.S. Treasury. Disputing taxpayers’ assertion that they were bona fide residents of the USVI, the IRS conducted an audit and sent them notices of deficiency determining over $2 million in taxes and penalties. In an opinion with a concurring and dissenting set of judges, the Tax Court held that the deficiency notices were time-barred because the pages that the VIBIR sent to the IRS constituted filed “returns” that started the limitations period. The Eighth Circuit reversed the Tax Court and confirmed the long-standing principle that the statute of limitations begins only when a return is filed. Because the taxpayers did not comply with the requirements to file returns with the IRS, the statute of limitations never began to run.
Although the Eighth Circuit’s opinion is focused on the statute of limitations issue, the Tax Division and the IRS will use all available legal processes to challenge improper attempts to avoid or evade U.S. income tax by unlawfully misrepresenting a taxpayer’s residence, regardless of where such residence is claimed. See e.g., IRS Notice 2004-45.
Principal Deputy Assistant Attorney General Zuckerman thanked Tax Division attorneys Judith Hagley and Francesca Ugolini and former Tax Division attorneys Gilbert Rothenberg and Richard Caldarone, who handled the case on appeal for the government, as well as IRS attorneys Michael Berwind, James Hartford, and Randel Eager Jr., who litigated the case in the Tax Court.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Eastern Idaho Methamphetamine Dealer Sentenced to over 17 Years in Federal PrisonRead the Press Release
POCATELLO – Richard A. Burns, 37, of St. Anthony, Idaho, was sentenced in U.S. District Court to 210 months in federal prison for possession with intent to distribute methamphetamine, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also ordered Burns to serve five years of supervised release following his prison sentence. Burns pleaded guilty to the charge on December 4, 2019.
According to court records, on May 11, 2019, an Idaho State Police trooper stopped Burns and a co-defendant on the interstate in Pocatello. While the trooper spoke with the co-defendant, Burns’ got into the driver's seat and fled, taking police on a high-speed chase. Ultimately, Burns crashed the car in Blackfoot and escaped on foot. Officers searched the vehicle and found over three pounds of methamphetamine located in a bag under the front passenger floorboard. Additionally, officers found two loaded 9mm handguns in the car.
Officers later apprehended Burns on June 5, 2019, after Idaho State Police detectives located him traveling to Boise. Officers spiked Burns’ vehicle near Carey, Idaho. After searching Burns’ car, officers found almost a pound of methamphetamine; along with digital scales, clean plastic baggies, a drug ledger, and a 9mm pistol. Burns later confessed to dealing drugs throughout Idaho.
This case was investigated by the Idaho State Police, Drug Enforcement Administration, Bannock County Sheriff’s Office, Blackfoot Police Department, Bingham County Sheriff’s Office, Bonneville County Sherriff’s Office, and Idaho Falls Police Department.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Darkweb Drug Trafficker Arrested in Operation DisrupTor Pleads GuiltyRead the Press Release
A darkweb cocaine and heroin trafficker has pleaded guilty to drug conspiracy, announced U.S. Attorney for the Northern District of Texas.
Aaron Brewer - a 39-year-old charged under Operation DisrupTor, a coordinated international effort to disrupt opioid trafficking on the Darknet – pleaded guilty Thursday to conspiracy to possess with intent to distribute a controlled substance.
“Drug traffickers often believe the anonymity of the darknet will shield them from criminal prosecution. This prosecution proves that’s not the case,” said U.S. Attorney Erin Nealy Cox. “The Northern District of Texas is committed to finding and stopping dealers wherever they are – whether that’s on the streets or in the dark crevasses of the internet.”
“Stopping the flow of drugs into our communities is of utmost importance, having seen the devastation they bring,” said Thomas Noyes, Inspector in Charge of the U.S. Postal Inspection Service Fort Worth Division. “While criminals exploit technology in an effort to stay hidden, Postal Inspectors will spare no effort in their mission to protect the U.S. Mail, the Postal Service and its customers. We will continue to find, and bring to justice, individuals like this, and we thank the U.S. Attorney’s Office and F.B.I. for their significant work.”
According to plea papers, Mr. Brewer admitted he created darkweb market vendor accounts in order to sell cocaine, heroin, and other controlled substances online.
Mr. Brewer’s customers paid him in cryptocurrency, typically bitcoin, and frequently used aliases for shipping. After receiving payment, Mr. Brewer used the U.S. Mail and other shipping services to transmit controlled substances to customers in North Texas and across the country.
In March 2020, law enforcement discovered a ledger linking controlled substances orders with tracking numbers inside his apartment.
Mr. Brewer later admitted that over an 11-monthe period, he dealt more than 4,000 grams of cocaine and more than 80 grams of black tar heroin, then used the more than $50,000 in proceeds of the illegal activity to pay his mortgage.
He now faces up to 20 years in federal prison. As part of his plea agreement, he agreed to forfeit a property in Plano, Texas to the government.
The U.S. Postal Inspection Service and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Sid Mody is prosecuting the case.
DEA Investigation in Chapel Hill Area Uncovers Large-Scale Drug RingRead the Press Release
GREENSBORO, N.C. – Twenty-one people face federal charges as a result of a lengthy investigation into the sale of narcotics on or near college campuses in North Carolina. The drug trafficking investigation, conducted by a United States Drug Enforcement Administration (DEA) task force and the Orange County Sheriff’s Office, revealed drug activity involving members of several fraternal organizations at universities in the state. Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the DEA, and Charles S. Blackwood, Sheriff of Orange County, North Carolina, held a press conference today to discuss the investigation.
While working a drug case several years ago, the Orange County Sheriff’s Office received information about the sale of illegal drugs on the campus of the University of North Carolina at Chapel Hill (UNC). In November 2018, agents and officers assigned to the DEA’s Raleigh District Office initiated an investigation into the distribution of cocaine hydrochloride and other illegal drugs in the Chapel Hill area. It became clear early in the investigation that illegal drug distribution occurred at or near some UNC fraternal organization properties. Court filings to date specifically allege illegal drug activity involving the UNC chapters of Phi Gamma Delta, Kappa Sigma, and Beta Theta Pi occurring between 2017 and the spring of 2020.
Over the course of several years, the drug ring funneled over a thousand pounds of marijuana, several hundred kilograms of cocaine, and significant quantities of other drugs into these college campuses. Estimates of the total drug proceeds are not presently available, but they exceeded 1.5 million dollars.
According to documents filed in court, investigators utilized information from cooperating sources and cooperating defendants, and investigative methods such as controlled purchases, undercover purchases, financial investigation, surveillance, and analysis of electronic devices. Ultimately, investigators discovered that individuals were shipping cocaine from California via the U.S. Postal Service (USPS) and transporting marihuana by motor vehicle. Involved parties shipped bulk cash proceeds from illegal drug transactions through the USPS. Other proceeds, estimated to be approximately 1.3 million dollars, transferred hands through financial institutions utilizing money orders, Western Union, and mobile payment applications.
One primary supplier was the first person charged as a result of the investigation, FRANCISCO JAVIER OCHOA, JR., age 27, of Turlock, CA, who was indicted in November 2019 for conspiracy to distribute 5 kilograms or more of cocaine and conspiracy to distribute 100 kilograms or more of marijuana. According to documents filed in court, from March 2017 until March 22, 2019, OCHOA supplied approximately 200 pounds of marihuana and two kilograms of cocaine weekly to a cooperating defendant in Orange County. Law enforcement operations at locations associated with the subject in Carrboro and Hillsborough resulted in seizure of 148.75 pounds of marihuana, 442 grams of cocaine, 189 Xanax pills, steroids, human growth hormone, other narcotics, and approximately $27,775.00 in U.S. currency. The investigation revealed that payment for drugs was made using Venmo and by sending cash through the U.S. mail. OCHOA pleaded guilty to the indictment On November 24, 2020, he was sentenced to 73 months imprisonment, 5 years of supervised release, and ordered to pay a $250,000 forfeiture judgment.
The distribution of hard drugs was pervasive in and around certain fraternities. Illustrations of the type of activity, taken from court documents, include:
A cooperating defendant (CD2) described regularly supplying cocaine to “Chase” (later identified as defendant Charles Poindexter), who sold only to fraternity members. CD2 said he felt safe doing so because most transactions took place at the Phi Gamma Delta fraternity house behind closed doors. CD2 also stated that most drug transactions occurred around fraternity events, and bigger events required larger amounts of narcotics. In an interview, Poindexter admitted to purchasing cocaine, marihuana, and “molly” (MDMA) from CD2, and stated that all 22 members of his fraternity pledge class “went in” to purchase an ounce of cocaine for spring break in his sophomore year.
Another cooperating defendant (CD1) identified CD2 as his source for marihuana, Xanax, and cocaine, which CD1 distributed at the Kappa Sigma fraternity house to Kappa Sigma members, associates, and members of other fraternities. CD1 also told investigators that defendant David Bayha was selling marihuana from his room at the Kappa Sigma house, and that Bayha posted marihuana prices to the UNC Kappa Sigma GroupMe thread. In May 2020, an undercover investigator purchased 1/8-ounce of marihuana for $35 from Bayha outside the Kappa Sigma house. Another cooperator (CD5) was introduced to members of the Kappa Sigma fraternity by a friend and attended functions at the Kappa Sigma house. CD5 told investigators s/he witnessed “habitual” drug use there.
Cooperating sources of information and cooperating defendants also identified JASON SHUANG XU as a subordinate drug distributor to CD2. XU obtained one-half ounce quantities of cocaine hydrochloride (cocaine) from CD2 every two weeks during the school semesters at UNC-Chapel Hill in 2017 and 2018. CD2 utilized XU as an intermediary for the distribution of cocaine, psilocybin (mushrooms), and alprazolam (Xanax) at the Kappa Sigma Fraternity. XU is a member of this fraternity, and he provided illegal drugs to other fraternity members for distribution. A search of XU’s iCloud account revealed text messaging threads with CD2 and others, as well as photographs of cocaine, marihuana, marihuana use, and cocaine use.
Cooperating sources and cooperating defendants identified AMBER JANNA JOHNSON as a subordinate cocaine distributor to CD2. JOHNSON began supplying a cooperating source (CS) with one-half ounce quantities of cocaine every six (6) weeks from 2016 until 2018. JOHNSON introduced the CS to CD2 in 2018. The CS began obtaining one-ounce quantities of cocaine from CD1. In 2019, JOHNSON introduced the CS to a second cocaine supplier who provided cocaine to the CS until the spring of 2020. CD2 advised the DEA that JOHNSON, a student at Duke University, distributed cocaine to students at Duke and to fraternity members from UNC-Chapel Hill. CD2 supplied JOHNSON with ounce-quantities of cocaine for distribution on both campuses. It appears JOHNSON obtained and distributed at least 200 grams, but less than 300 grams of cocaine, from August 2017 through March 2019.
CD2 identified JASON BLAKE NITSOS as a subordinate cocaine distributor, and advised that NITSOS sold the cocaine to members of the Eta Chapter of the Beta Theta Pi Fraternity at UNC-Chapel Hill. Between October 2017 and March 2019, NITSOS paid CD2 approximately $15,000.00 for cocaine in 32 Venmo transactions. Fifteen of the transactions occurred over the Internet Protocol address located at the Beta Theta Pi fraternity house on the campus of UNC-Chapel Hill.
Court documents also link the trafficking of controlled substances to other college towns. In the summer of 2020, a cooperating defendant (CD) identified an Appalachian State University (ASU) student and member of the Delta Chi fraternity member in Boone as a known distributor of controlled substances to ASU students. In August 2020, the subject of CD’s allegations, Kyle Beckner, sold 1,000 dosage units of LSD to CD for $3,000 in the parking lot of a Chapel Hill restaurant. In October 2019, investigators made a controlled purchase of one ounce of cocaine from another ASU student, Devin McDonald, after McDonald was identified by a cooperating source as someone who distributed cocaine to other ASU students. Other defendants charged as a result of the investigation lived in Charlotte and Wilmington.
“No one is above the law, including college students and fraternity members at elite universities. This serious drug trafficking is destructive and reckless, and many lives have been ruined,” said U.S. Attorney Martin. “This investigation reveals that the fraternity culture at these universities is dangerous. University administrators and national chapters cannot turn a blind eye to the impact on these students and the environment on their respective college campuses. The drug culture feeds many other problems on campus and in our society. University administrators must take a stand and put a stop to it.”
“College communities should be a safe haven for young adults to obtain a higher education, not a place where illegal drugs are easily accessible,” said DEA SAC Murphy. “These fraternity members’ drug trafficking crimes contributed to a toxic and dangerous environment on these college campuses. The arrest of these drug traffickers makes these college campuses and their respective communities safer. DEA and its law enforcement partners will continue to strive to ensure these college campuses remain a safe environment charged with educating the best and brightest so they may become future leaders of our country. These arrests are a shining example how success can be achieved through spirited law enforcement cooperation.”
Between July and December, 2020, twenty additional defendants have been charged.
In an indictment returned on July 27, 2020, the grand jury charged the following defendants with conspiracy to distribute cocaine and conspiracy to distribute marijuana:
- ANDREW BOYLAN GADDY, age 24, of Carrboro, NC;
- TRAVIS MICHAEL EVANS, age 27, of Hillsborough, NC;
- DANE LAMBERT SIMON, age 23, of Durham, NC;
- BRIANHA NICOLE HASKELL, age 24, of Hillsborough, NC; and
- MARIELA ZAVALA MENDOZA, aka Maria Ochoa, age 25, of Turlock, CA.
In other indictments returned in July, October, and December, 2020, the grand jury charged each of the following defendants with conspiracy to distribute cocaine:
- ZACHRE CHASEN ABERCROMBIE, age 27, of Charlotte, NC;
- AMBER JANA JOHNSON, age 24, of Carrboro, NC;
- JOHN FREDERICK HOLLOWAY, age 23, of Carrboro, NC;
- DEVIN JAMES McDONALD, age 23, of Kill Devil Hills, NC;
- JASON BLAKE NITSOS, age 24, of Greensboro, NC;
- DEVON ANTHONY PICKERING, age 35, of Charlotte, NC;
- EDISON TORRES ROBLES, aka Fransisco Gallego Mandez Rodriguez, age 26, of Durham, NC; and
- JASON SHUANG XU, age 23, of Apex, NC.
Seven additional defendants were individually charged in October and December, 2020, with a variety of offenses:
- CHANDLER DAVID ANDERSON, age 27, of Wilmington, NC, faces charges of conspiracy to distribute cocaine and marihuana.
- DAVIS LINDSEY BAYHA, age 21, of Chapel Hill, NC, faces charges of conspiracy to distribute marihuana; use of a communication facility to facilitate a drug felony; and distribution of a controlled substance within 1000 feet of a public or private college or university.
- KYLE PARRISH BECKNER, age 22, of Boone, NC, is charged with distribution of LSD and use of a communication facility to facilitate a drug felony.
- BERNARD ALEKSANDER BUKOWSKI, age 24, of Raleigh, NC, faces one count of conspiracy to distribute cocaine and one count of possession with intent to distribute cocaine.
- CHARLES CLEVEAU POINDEXTER aka Chase Poindexter, age 23, and JACKSON ALEXANDER NORRIS, age 22, of Chapel Hill, NC, are each charged with conspiracy to distribute cocaine; use of a communication facility to facilitate a drug felony; and distribution of a controlled substance within 1000 feet of a public or private college or university.
- CHRISTOPHER ANTONIO REYES, age 26, of Greensboro, NC, is charged with conspiracy to distribute 100 kilograms or more of marihuana.
The defendants indicted for conspiracy to distribute cocaine and conspiracy to distribute marijuana face terms of imprisonment ranging from not less than 10 years and not more than life, not less than 5 years and not more than 40 years, and not more than 20 years, with fines of up to $10,000,000, $5,000,000, $1,000,000, respectively, or both, and terms of supervised release of at least 3 to 5 years, or more. The other charges carry lesser terms of imprisonment, fines, or both, and supervised release.
The charges are merely allegations, and each defendant is presumed innocent unless and until proven guilty.
Orange County Sheriff Charles Blackwood said, “I am proud of the work my deputy did on this task force, and I am thankful for our partnership with the DEA. Task forces such as this provide our Sheriff’s Office with the resources and equipment needed to conduct these protracted cases and achieve the type of results seen in this case. The amount of illegal narcotics being sold and used in this case was not only astonishing; it also reflected a very serious public health crisis. We worked this case in an effort to save lives. We also wanted to protect the honor and integrity of the University of North Carolina and other institutions of higher learning. This investigation and the prosecution of those involved in the drug trade on university campuses should send a clear message that such activities will not be tolerated.”
In addition to OCHOA, the following defendants pleaded guilty to one or more charges against them and are scheduled to be sentenced in 2021:
GADDY – sentencing 3/24/21
EVANS – sentencing 2/17/21
SIMON – sentencing 3/24/21
HASKELL – sentencing 3/30/21
PICKERING – sentencing 2/20/21
NITSOS – sentencing 3/19/21
XU – sentencing 3/19/21
The case is being investigated by the Orange County Sheriff’s Office and the U.S. Drug Enforcement Administration (DEA). Law enforcement partners in Orange County and on UNC’s campus provided assistance during the investigation.
The investigation continues, and more charges are possible. Anyone with additional information is asked to call the DEA Raleigh District Office at 919-790-3004.
This other law enforcement activity is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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D.C. Tax Return Preparer Sentenced to Prison for Preparing False Tax ReturnRead the Press Release
A D.C. tax return preparer was sentenced to 24 months in prison today following her guilty plea in February 2020 for aiding and assisting in the preparation of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, Renita Jenifer of District Heights, Maryland, operated a tax return preparation business in D.C. between 2013 and 2016 under the name RAJen Business Tax Service (RAJen). Through RAJen, Jenifer prepared false tax returns for clients claiming fraudulent and inflated itemized deductions, including charitable contributions and unreimbursed employee expenses. Jenifer also prepared returns that reported fraudulent and inflated business expenses. By including these false items, Jenifer’s clients received tax refunds from the IRS in excess of what they were entitled to receive.
In 2016, after IRS-Criminal Investigation executed a search warrant at RAJen’s office in D.C. and revoked Jenifer’s Electronic Filing Identification Number (EFIN), expelling her from the IRS’s e-file program, Jenifer operated a new business in Maryland called DS Professional Tax Service LLC (DS Pro). Jenifer used the name of a different individual to obtain an EFIN for DS Pro, and she listed this individual’s name on tax returns she prepared instead of her own name. As she had done at RAJen, Jenifer prepared false tax returns for clients of DS Pro. In 2018, Jenifer moved this new business to D.C. and continued to prepare false tax returns for clients.
In addition to filing false tax returns for clients of RAJen and DS Pro, Jenifer filed false income tax returns for herself for the years 2013 and 2014, on which she failed to report all of the income generated by her business. Jenifer also did not file income tax returns for herself for the years 2017 and 2018, despite earning income from her operation of DSPro. Jenifer’s conduct caused a loss to the government of $373,090.
In addition to the term of imprisonment, U.S. District Judge Ketanji Brown Jackson ordered Jenifer to serve one year of supervised release and to pay $357,819 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation and the D.C. Office of Tax and Revenue, who conducted the investigation, and Trial Attorneys Melissa Siskind and William Guappone of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Council Bluffs Man Sentenced to Prison for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on December 15, 2020, John Randall Parson, age 37, of Council Bluffs, was sentenced by United States District Court Chief Judge John A. Jarvey to 51 months in prison to be followed by three years of supervised release for felon in possession of a firearm and ammunition. Parson was also ordered to pay a $100 special assessment to the Crime Victims’ Fund. Parson pleaded guilty to the offense on July 24, 2020.
The investigation was conducted by the Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Child Sex Offender Sentenced to 18 Years in Federal Prison for Child Sexual Exploitation Crimes He Committed while on ProbationRead the Press Release
PITTSBURGH – A former resident of McKeesport, Pennsylvania, has been sentenced in federal court to 18 years’ imprisonment, to be followed by 20 years’ supervised release on his conviction of coercion and enticement of a minor to engage in illegal sexual activity and possession of child pornography, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Nora Barry Fischer imposed the sentence on Scott Payne, age 33, formerly of McKeesport, Pennsylvania.
According to information presented to the court, on June 10, 2017, Payne, while pretending to be a teenage female, engaged in an Internet conversation with a 12 year-old male using a chatting application known as "KIK", during which Payne persuaded the minor victim to produce and share still images and videos of the minor engaging in sex acts. The court was further informed that evidence established that Payne engaged in similar communications with a 15 year-old male in New Jersey and a 16 year-old male in Louisiana, and was in possession of sexually explicit photographs and videos of the three minor victims when law enforcement agents executed a search warrant at his residence on June 19, 2017. Payne has a 2012 conviction involving sexual abuse of children and possession of child pornography for which he was serving a term of probation at the time of his arrest and for which he was required to register as a Megan’s Law sex offender.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, the Western Pennsylvania Crimes Against Children Task Force, and the Bloomfield, New Jersey Police Department for the investigation leading to the successful prosecution of Payne. 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 Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Clearview Man Pleads Guilty to Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tommy Ryan Gouge, age 41, of Clearview, Oklahoma entered a guilty plea to Murder In Indian Country - Second Degree, in violation of Title 18, United States Code, Sections 1111(a), 1151 and 1153, punishable by any term of years up to life imprisonment, a fine up to $250,000.00, or both.
The Information alleged that on or about February 14, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, willfully, deliberately, maliciously and with malice aforethought, did unlawfully kill the victim with an edged weapon and a blunt object.
The charges arose from an investigation by the Okemah Police Department, the Okfuskee County Sheriff’s Office, and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Ben Gifford represented the United States.
California Man Sentenced to Prison for Marijuana OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on December 15, 2020, Dmitry Alexander Borisov, age 35, was sentenced by United States District Court Chief Judge John A. Jarvey to 60 months in prison for possession with intent to distribute marijuana. Borisov was ordered to serve four years of supervised release to follow his prison term and pay a $100 special assessment to the Crime Victims’ Fund. Borisov pleaded guilty to the offense on August 21, 2020.
On January 1, 2020, Borisov was driving a rental truck on Interstate 80. He was stopped for speeding by the Council Bluffs Police. While issuing a citation, a police dog alerted to the presence of a controlled substance in Borisov’s vehicle. Law enforcement discovered that the truck contained over 1,200 pounds of marijuana.
The investigation was conducted by the Council Bluffs Police Department and the Southwest Iowa Narcotics Enforcement Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Butler Resident Sentenced to Prison for Dealing Multiple DrugsRead the Press Release
PITTSBURGH – Ricardo Glenn was sentenced to 57 months in prison for conspiring to distribute fentanyl, acetyl fentanyl, heroin, cocaine, and crack cocaine, United States Attorney Scott W. Brady announced today.
Glenn, age 28, formerly of Butler and Philadelphia, was sentenced by United States District Judge Robert J. Colville. Judge Colville ordered that Glenn serve three years of supervised release following his prison term.
Glenn moved to Butler County from Philadelphia and distributed fentanyl, heroin, and cocaine for a Butler-based drug-trafficking crew. Glenn did so on a nearly daily basis for months in 2019 and 2020. He was under court supervision at the time, following a 2018 firearm conviction and county-jail sentence in Philadelphia.
Assistant United States Attorneys Yvonne M. Saadi and Craig W. Haller prosecuted this case on behalf of the United States.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Butler County District Attorney’s Drug Task Force led the investigation leading to the conviction and sentence in this case.
Buffalo Woman Sentenced for Conspiring with A Former Local Doctor to Illegally Distribute Controlled SubstancesRead 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 Laura Ricotta, 29, of Buffalo, who was convicted of conspiring to possess with intent to distribute, and distributing, oxycodone, hydrocodone, and amphetamine, was sentenced to time served (approximately 15 months) by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Timothy C. Lynch and Joshua Violanti, who handled the case, stated that between April 2015 and February 2018, the defendant conspired with co-defendant Dr. James T. Keefe, and others to sell oxycodone, hydrocodone, and amphetamine, all Schedule II controlled substances. Ricotta met Dr. Keefe, who was a New York State licensed physician and a DEA Registrant authorized to issue prescriptions for Schedule II and Schedule IV controlled substances, through her boyfriend, co-defendant Benjamin Rivera. The defendant has known Dr. Keefe for nearly five years and during this time, Dr. Keefe was active user of cocaine, Adderall, and prescription opiates. In April 2015, Dr. Keefe reached out and asked Ricotta to allow him to issue prescriptions in her name and the defendant agreed.
Between April 20, 2015, and February 20, 2018, Ricotta was issued 15 prescriptions in her own name by Dr. Keefe for Schedule II and Schedule IV controlled substances. The defendant also used the names and personal information of six relatives and associates to receive 26 fraudulent prescriptions. Neither Ricotta nor any of her relatives or associates were patients of Dr. Keefe, and none of the relatives and associates knew their information was being used.
Co-defendants Dr. Keefe and Rivera were previously convicted and are awaiting sentencing.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
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Biogen Agrees to Pay $22 Million to Resolve Allegations that it Paid Kickbacks Through Two Co-Pay FoundationsRead the Press Release
BOSTON – Cambridge-based pharmaceutical company Biogen Inc. has agreed to pay $22 million to resolve allegations that it violated the False Claims Act by illegally using two foundations, Chronic Disease Fund (CDF) and The Assistance Fund (TAF), as conduits to pay the Medicare co-pays for patients taking Biogen’s multiple sclerosis (MS) drugs, Avonex and Tysabri.
Advanced Care Scripts (ACS), a specialty pharmacy that performed services for Biogen, has agreed to pay $1.4 million to resolve allegations that it conspired with Biogen to enable Biogen to use CDF and TAF as conduits for Biogen to pay Medicare co-pays for Avonex and Tysabri patients.
In separate settlements in late 2019, CDF paid $2 million and TAF paid $4 million to resolve allegations concerning their respective roles in enabling certain pharmaceutical companies to pay kickbacks to Medicare patients.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively, co-pays). Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which involves money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
As part of today’s settlements, the government alleged that Biogen, acting with ACS’s help, used CDF and TAF, each of which claimed status as a nonprofit organization for tax purposes, as conduits to pay the co-pay obligations of thousands of Medicare patients taking Avonex and Tysabri. According to the government’s allegations, Biogen used CDF and TAF, which Biogen paid, to cover Avonex and Tysabri patients’ co-pays to induce those patients’ Medicare-reimbursed purchases of the drugs.
The government specifically alleges that in 2011, Biogen identified Medicare-eligible Avonex patients in Biogen’s free drug program, and arranged for ACS to transfer those patients from the Biogen free drug program to CDF, so that CDF could cover those patients’ Medicare co-pays and the patients’ purchases of Avonex would generate Medicare revenue for Biogen. Biogen then paid CDF, and ACS promptly sent CDF batch files of co-pay assistance applications for Medicare-eligible Avonex patients who had been receiving the free drug from Biogen. CDF subsequently approved most of those applications and covered the costs of those patients’ Medicare co-pays for Avonex.
The government further alleges that in 2012, Biogen identified Medicare-eligible Tysabri patients in Biogen’s free drug program, and arranged for ACS to transfer those patients from the Biogen free drug program to TAF, so that TAF could cover those patients’ Medicare co-pays and the patients’ purchases of Tysabri would generate Medicare revenue for Biogen. Biogen made payments to TAF in the second and third quarters of 2012, and each time ACS then transferred to TAF batch files of co-pay assistance applications for Medicare-eligible patients who had been receiving the free drug from Biogen. TAF subsequently paid most or all those patients’ Medicare co-pays for Tysabri. The government further alleges that, in 2013, in much the same fashion, Biogen worked with ACS again to transition Medicare-eligible Tysabri patients out of Biogen’s free drug program to CDF, which Biogen paid so that CDF would cover those patients’ Medicare co-pays for Tysabri and Biogen would receive the resulting Medicare reimbursement revenue.
“Biogen coordinated with ACS to game the system, time its payments, and direct its money to cover co-pay costs for patients using its drugs,” said First Assistant United States Attorney Nathaniel R. Mendell. “By using co-pay foundations this way – as a conduit to pay for co-pays for Biogen patients – Biogen violated the anti-kickback statute and undermined Medicare’s co-pay structure, which Congress designed to safeguard against inflated drug prices. We commend ACS for resolving this matter expeditiously and Biogen for resolving this matter on a cooperative basis.”
“The resolution announced today, like prior settlements concerning similar misconduct, demonstrates the government’s commitment to hold accountable companies that pay kickbacks to undermine important constraints on rising drug costs,” said Acting Assistant Attorney Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “Drug companies that illegally manipulate charitable patient assistance programs to subsidize copays for their own products will be held accountable.”
“Kickback schemes can undermine our healthcare system and lead to higher costs for the Medicare program,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office. “We will continue to hold pharmaceutical companies and specialty pharmacies accountable if they work together to subvert the charitable donation process and violate the prohibition on the payment of kickbacks.”
“Biogen tried to unfairly boost its bottom line by working with Advanced Care Scripts to bill Medicare for those who were already receiving their drug for free, undermining Medicare’s co-pay structure which was set up to safeguard against inflated drug prices,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Kickback schemes like this one undermine our healthcare system, can compromise medical decisions, and waste taxpayer dollars. The FBI will continue to work with our partners to hold accountable those who conspire to disguise kickbacks as charitable contributions, at the expense of the Medicare program.”
Since 2017 the U.S. Attorney’s Office has collected over $1 billion from eleven pharmaceutical companies that allegedly used third-party foundations as conduits to pay kickbacks. The Department also has reached settlements with four foundations, as well with ACS concerning its relationship with a different pharmaceutical company.
The False Claims Act settlements resolve allegations originally brought in lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. In connection with today’s announced settlement, the relator will receive approximately $3.96 million of the recovery.
First Assistant U.S. Attorney Mendell, Acting Assistant Attorney General Clark, HHS-OIG SAC Coyne, and Boston FBI SAC Bonavolanta made the announcement today. The matter was handled by Assistant U.S. Attorneys Abraham R. George, Evan Panich and Gregg Shapiro of Lelling’s Affirmative Civil Enforcement Unit, with assistance from Trial Attorneys Augie Ripa and Sarah Arni of the Department of Justice’s Civil Division.
Biogen Agrees to Pay $22 Million to Resolve Alleged False Claims Act Liability for Paying KickbacksRead the Press Release
Pharmaceutical company Biogen, Inc. (Biogen), based in Cambridge, Massachusetts, has agreed to pay $22 million to resolve claims that it violated the False Claims Act by illegally using foundations as a conduit to pay the copays of Medicare patients taking Biogen’s multiple sclerosis drugs, Avonex and Tysabri, the Justice Department announced today.
When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs.
“The resolution announced today, like prior settlements concerning similar misconduct, demonstrates the government’s commitment to hold accountable companies that pay kickbacks to undermine important constraints on rising drug costs,” said Acting Assistant Attorney Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “Drug companies that illegally manipulate charitable patient assistance programs to subsidize copays for their own products will be held accountable.”
“Biogen coordinated with ACS to game the foundation system by timing its payments to two foundations with its transfer of financially needy free drug patients, all so that Biogen could obtain significant financial rewards,” said First Assistant United States Attorney Nathaniel R. Mendell. “By treating the foundations simply as conduits to pay the co-pays of its own patients, Biogen violated the anti-kickback statute and undermined Medicare’s co-pay structure, which Congress intended as a safeguard against inflated drug prices. We commend ACS for resolving this matter expeditiously and Biogen for resolving this matter on a cooperative basis.”
“Kickback schemes can undermine our healthcare system and lead to higher costs for the Medicare program,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office. “We will continue to hold pharmaceutical companies and specialty pharmacies accountable if they work together to subvert the charitable donation process and violate the prohibition on the payment of kickbacks.”
Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value— to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
Biogen sells Avonex and Tysabri, which are approved for treatment of multiple sclerosis. The government alleged that Biogen engaged in a prohibited kickback scheme by using two foundations, which claim 501(c)(3) status for tax purposes, as conduits to pay the copay obligations of Medicare patients to induce those patients to purchase Medicare-reimbursed Avonex and Tysabri prescriptions. As part of the scheme, Biogen identified for its vendor, Advanced Care Scripts (ACS), certain patients in Biogen’s Avonex or Tysabri free drug program. Biogen then worked with ACS to transfer these patients to the foundations, which received contemporaneous payments from Biogen and then covered the costs of Medicare copays for most or all of these patients. Medicare paid the remaining portion of the patients’ Avonex or Tysabri claims. The government alleged that Biogen engaged in this conduct in the first quarter of 2011 for certain Avonex patients, and in the second and third quarters of 2012 and 2013 for certain Tysabri patients.
The allegations resolved by the settlement were originally raised in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did in this action. The whistleblower will receive approximately $3,960,000 of the settlement.
In a separate settlement announced today, ACS has agreed to pay $1.4 million to resolve its role in the above-referenced conduct.
The government’s resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with the Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. The lawsuit is captioned United States ex rel. Nee vs. Biogen et. al., Case No. 17-CV-10192-MLW (D. Mass.).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Bernalillo man faces robbery chargesRead the Press Release
ALBUQUERQUE, N.M. – Kellam Nichols, 36, of Bernalillo, New Mexico, was charged in federal court on Dec. 10 with Hobbs Act robbery and attempted Hobbs Act robbery. Nichols will remain in custody pending trial.
According to a criminal complaint, on Dec. 5, 2017, Nichols allegedly entered a KFC restaurant, demanded money and threatened an employee. Nichols allegedly took money from the register and fled in a blue, two-door car.
Three days later, Nichols allegedly entered a Starbucks, walked behind the counter and grabbed an employee from behind. The startled employee screamed, attracting the attention of another employee, and Nichols allegedly fled the store in a blue, two-door car. Nichols then allegedly proceeded to and entered a Walgreens Pharmacy in the same shopping center. Nichols reportedly jumped the counter and demanded money. Nichols then allegedly left the store with money from the register.
An officer located Nichols’ vehicle and attempted a traffic stop. Nichols allegedly fled at a high rate of speed before crashing into a vehicle stopped at an intersection.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Nichols faces up to 20 years in prison.
The FBI Violent Crimes Task Force investigated this case in conjunction with the Bernalillo Police Department and the Santa Ana Police Department. Assistant U.S. Attorney Presiliano Torrez is prosecuting the case.
Bellevue Man Sentenced for Fraud Related to Operation of Website Selling Counterfeit DrugsRead the Press Release
United States Attorney Joe Kelly announced that Karl H. Goss, 72, of Bellevue, Nebraska, was sentenced on December 16, 2020 in federal court in Omaha for Wire Fraud. Senior United States District Judge Joseph F. Bataillon sentenced Gross to one year and one day imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 3-year term of supervised release. Gross was also fined $10,000.
Gross operated an online business known as Amerisave from 2007 until 2016. Amerisave defrauded customers by marketing and selling misbranded and unapproved prescription medications or drugs. Advertising on the Amerisave website represented that medications and/or drugs received by customers were United States Food and Drug Administration (FDA) approved drugs or manufactured in facilities which were FDA-approved or FDA-inspected facilities. The drugs, however, were not FDA-approved or FDA-inspected facilities. In order for customers to pay for their drugs from Amerisave, Amerisave communicated with customers via e-mail, facsimile and phone, and customers paid with credit cards. Amerisave had more than $2 million in sales in the time Gross operated it. To obtain foreign drugs, Gross, doing business as Amerisave, paid the foreign drug distributors via wire transfer. The funds were wired from First National Bank of Omaha to banks outside the United States. There were no identified victims in this case.
“American consumers rely on FDA oversight to ensure the safety and effectiveness of their prescription drugs. Selling misbranded and unapproved prescription drugs online that falsely claim to be FDA-approved puts consumers’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to investigate and bring to justice those who attempt to jeopardize public health and seek profit from potentially dangerous products.”
This case was investigated by the Food and Drug Administration Office of Criminal Investigations.
Bartell Drug chain settles allegations it filled invalid prescriptionsRead the Press Release
Seattle – The U.S. Department of Justice and Bartell Drug Inc., today resolved allegations that, between July 2016 and August 2020, the pharmacy chain filled invalid prescriptions in violation of the Controlled Substances Act, announced U.S. Attorney Brian T. Moran. Under the terms of the settlement, Bartell Drug will pay the government an $800,000 fine. Bartell Drug fully cooperated in the investigation.
“For many, the descent into opioid abuse begins with improper prescriptions. That’s why it is critical that our pharmacists serve as a check to keep the public safe,” said U.S. Attorney Moran. “This case is a wake-up call for pharmacists to make sure they are responsibly scrutinizing each and every prescription.”
According to the facts in the settlement agreement, some 400 prescriptions were written by four medical professionals whose licenses to practice had been suspended or otherwise restricted by the Washington Medical Commission. Bartell Drug Inc., allegedly failed to implement fully a computer system so that the physicians’ licensing could be verified automatically by pharmacists, and some Bartell pharmacists failed to conduct individual licensing checks, which resulted in Bartell Drugs filling invalid prescriptions for controlled substances. Some of the prescriptions were written by medical professionals who had been publicly sanctioned and even indicted for violations of federal law.
“These actions are a breach of trust, compromising the health, safety and overall well-being of the public our health professionals are sworn to protect,” said DEA Special Agent in Charge Frank Tarentino. “All DEA registrants are held to a higher standard with the responsibility of performing their due diligence in the safe prescribing and dispensing of controlled substances.”
“In our country’s fierce battle to curb the devastating opioid epidemic, pharmacies and other health care providers must be part of the solution, not the problem,” said Special Agent in Charge Steven J. Ryan of HHS-OIG. “We will continue to work closely with our law enforcement partners to ensure health care professionals appropriately dispense controlled substances.”
In the settlement agreement, Bartell does not admit any wrongdoing or liability, and the government maintains that its allegations are well founded. The fine will be paid by Bartell Drug and has no impact on the sale of Bartell Drug to Rite Aid Corporation.
The case was settled by Assistant United States Attorneys Kayla Stahman and Ashley Burns.
Arkansas Man Charged with Fentanyl TraffickingRead the Press Release
KANSAS CITY, Mo. – A Fort Smith, Arkansas, man was charged in federal court today with fentanyl trafficking after law enforcement officers found seven pounds of fentanyl in his backpack when he arrived at a Kansas City, Missouri, bus station.
Daniel Bonilla, 26, was charged with possessing fentanyl with the intent to distribute in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
According to an affidavit filed in support of today’s federal criminal complaint, a police service dog indicated the presence of illegal drugs in the luggage stored underneath a bus at a local bus station on Wednesday, Dec. 16. When Bonilla picked up the luggage, a Kansas City police detective contacted him for questioning. Bonilla was acting suspiciously, the affidavit says, and a police service dog indicated the presence of illegal drugs in a backpack he was carrying. When a detective searched the backpack, he found three packages that contained a total of seven pounds of fentanyl.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther and Special Assistant U.S. Attorney Maureen Brackett. It was investigated by the Kansas City Interdiction Task Force.
All Four Plead Guilty in Staged Automobile Accident Resulting in $4.7 Million SettlementRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that ANTHONY ROBINSON (“A. ROBINSON”), age 67; AUDREY HARRIS (“HARRIS”), age 53; JERRY SCHAFFER (“SCHAFFER”), age 66; and KEISHIRA ROBINSON (“K. ROBINSON”), age 26, of New Orleans, Louisiana entered a plea of guilty today to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of their involvement in a staged automobile accident that occurred on October 13, 2015.
According to today’s guilty plea, A. ROBINSON, HARRIS, SCHAFFER, and K. ROBINSON intentionally collided with a tractor-trailer in the area of Alvar Street and France Road in New Orleans. Roderick Hickman (“Hickman”), who pled guilty to a previous indictment charging him and 10 others with staging automobile accidents, was driving A. ROBINSON’s vehicle at the time of this accident. Hickman intentionally struck a tractor-trailer owned and operated by C.R. England, and then was picked up from the collision site by Damian Labeaud (“Labeaud”), who has also pled guilty to a previous indictment as part of this investigation. After the accident, A. ROBINSON, who had been in Labeaud’s vehicle at the time of the accident, then got behind the wheel of his own vehicle to make it appear that he had been driving at the time of the staged accident. A. ROBINSON falsely reported to the NOPD that he had been driving and that the tractor-trailer had struck his vehicle.
According to documents filed in federal court, all four defendants were referred to an attorney who paid Labeaud for staging this accident, among others. All of the defendants were treated by doctors and healthcare providers at the direction of their attorneys, and A. ROBINSON, HARRIS, and SCHAFFER underwent surgeries. In total, in July 2019, the victim trucking and insurance company paid out approximately $4.7 million for the fraudulent claims associated with this staged accident.
Today’s guilty pleas bring the total number of defendants who have tendered guilty pleas in this federal probe into the staging of accidents with tractor-trailers to fifteen (15). A total of thirty-three (33) defendants, including one personal injury attorney, have been charged thus far.
A. ROBINSON, HARRIS, SCHAFFER, and K. ROBINSON face a maximum sentence of five (5) years imprisonment, a fine of $250,000.00 or twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571 and a mandatory special assessment of $100.00. After any term of imprisonment that may be imposed, A. ROBINSON, HARRIS, SCHAFFER, and K. ROBINSON also face a term of supervised release of up to (3) three years.
Sentencing in this matter is scheduled for March 31, 2021 at 2:00 pm, before U.S. District Judge Ivan L.R. Lemelle.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Shirin Hakimzadeh, Brian M. Klebba, Supervisor of the Financial Crimes Unit, Assistant U.S. Attorney Maria Carboni, and Assistant U.S. Attorney Edward Rivera.
Alien Indicted on Possession of a FirearmRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment charging Leonel Deleon-Cuellar of Mexico, age 23, with possession of a firearm by an illegal and unlawful alien.
If convicted, Deleon-Cuellar, found in Nash County, faces a maximum imprisonment term of not more than ten years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement. ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Albuquerque man charged with methamphetamine possessionRead the Press Release
ALBUQUERQUE, N.M. – Michael Anthony Hernandez, 44, of Albuquerque, appeared in federal court for a detention hearing on Dec. 16 on charges of possession with intent to distribute methamphetamine and maintaining a drug-involved premises. Hernandez will remain in custody pending trial.
According to a criminal complaint, on Dec. 1, agents executed search warrants on two residences occupied by Hernandez. As agents approached Hernandez at one of the residences, Hernandez allegedly retreated inside the house before fleeing through the back door with a duffle bag containing approximately 27 pounds of methamphetamine. In the two residences, agents recovered additional drugs and other items consistent with drug trafficking.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Hernandez faces a minimum of 10 years and up to life in prison.
The FBI Violent Crimes Task Force and the Bernalillo County Sheriff’s Office Community Action Team investigated this case as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program’s Operation Atonement. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. Assistant U.S. Attorneys Maria Y. Armijo, Randy M. Castellano and Ry Ellison are prosecuting the case.
Albuquerque man charged with five counts of armed robberyRead the Press Release
ALBUQUERQUE, N.M. – Estevan Hernandez, 20, of Albuquerque, was arraigned in federal court on Dec. 9 on five counts of armed robbery.
According to a criminal complaint, Hernandez allegedly robbed five Albuquerque restaurants from Aug. 6 through Nov. 4. During the final robbery, Hernandez allegedly entered a McDonald’s and approached a cash register. Hernandez allegedly pulled a handgun, pointed it at an employee and demanded that the employee get the manager, which she did. Hernandez then allegedly demanded that the manager open the register, and Hernandez took the entire till.
As responding officers converged on the restaurant, an officer spotted Hernandez as he got into a black sedan and fled. An Albuquerque Police air unit tracked the vehicle as a pursuit ensued, and Hernandez was ultimately taken into custody.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Hernandez faces 20 years in prison.
The FBI Violent Crimes Task Force investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Sarah J. Mease is prosecuting the case.
Agawam Man Sentenced for Defrauding VA Hospitals by Failing to Inspect Medical Gas SystemsRead the Press Release
BOSTON – A vendor for several Veterans Affairs medical facilities was sentenced today for defrauding the VA by creating false invoices and reports for medical gas inspections that never took place.
Chester Wojcik, 49, of Agawam, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years of probation. In August 2020, Wojcik pleaded guilty to one count of wire fraud.
Wojcik, as the owner of Alliance Medical Gas Corporation, engaged in a scheme from May 29, 2014, through March 5, 2015 to defraud the VA by creating false invoices and reports for medical gas inspections that never took place. Medical gas supply systems deliver piped gases, including compressed air, nitrous oxide, nitrogen and carbon dioxide into operating rooms, recovery rooms and patient rooms. Medical gas supply systems must be inspected and maintained regularly to ensure the safety of patients and medical professionals, and to prevent gas leaks, explosions and other safety hazards. Wojcik failed to perform scheduled inspections of medical gas systems at VA facilities in Sioux Falls, S.D., Tuskegee, Ala. and Montgomery, Ala. and later lied to VA facilities and federal investigators about the offense. Wojcik was paid $8,981 by the VA for services that his company did not perform.
United States Attorney Andrew E. Lelling; Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Lelling’s Health Care Fraud Unit prosecuted the case.
Adult Film Performer Pleads Guilty in GirlsDoPorn Sex Trafficking ConspiracyRead the Press Release
Assistant U. S. Attorneys Joseph Green (619) 546-6955 and Alexandra F. Foster (619) 546-6735
NEWS RELEASE SUMMARY – December 17, 2020
SAN DIEGO – Adult film performer and producer Ruben Andre Garcia pleaded guilty in federal court today to sex trafficking charges, admitting that he conspired with the owners of the adult websites GirlsDoPorn and GirlsDoToys to fraudulently coerce young women to appear in sex videos.
Garcia pleaded guilty before U.S. Magistrate Judge Jill L. Burkhardt to Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, and Sex Trafficking by Force, Fraud and Coercion. Garcia, the first of six defendants to plead guilty, admitted that he worked from 2013 to 2019 as a recruiter and adult film performer for GirlsDoPorn and GirlsDoToys adult websites, which were run by co-defendants Michael James Pratt and Matthew Isaac Wolfe. Both sites offered paid subscriptions and featured videos of young adult women appearing in their first pornographic video. The websites generated millions of dollars in revenue and the videos were viewed millions of times.
Garcia admitted in his plea agreement that in order to recruit victims to appear in the videos, he and his co-conspirators threatened, deceived and lied to them, promising that the videos would never be posted online, that “no one” would ever find out, and that the videos would never be released in the United States. In actuality, the co-conspirators were posting the videos on GirlsDoPorn, GirlsDoToys, and PornHub, one of the world’s most heavily-trafficked porn sites. Many of the victim videos were viewed millions of times.
Garcia also admitted that he recruited and paid other young women to act as “references” to falsely reassure reluctant victims that the videos would not be posted online and that there was “no way” anyone would find out. Garcia used young women as recruiters, because victims “were more likely to believe other young women.” The references were paid a fixed fee for every victim they attempted to recruit and additional compensation for victims who agreed to film a video.
Victims were recruited from throughout the United States and Canada. Once they arrived in San Diego, they were taken to local hotels or short term rental units where the videos were produced. The defendant and other co-conspirators continued to falsely assure the victims that the videos would not be posted online and that no one would find out. Garcia and other co-conspirators used aliases and companies with misleading names to ensure that the victims could not discover that they were behind GirlsDoPorn and GirlsDoToys.
Before the video shoots, Garcia offered victims marijuana or alcohol and some drank or smoked with Garcia before filming. When some victims changed their minds about going forward or finishing the video shoots, Garcia and other co-conspirators threatened to sue them, cancel their flights home, or post the footage that was already filmed online, which, unbeknownst to the victims, was going to happen anyway.
Garcia admitted that victims were also misled about how long the video shoots lasted. Most were told that the video production would take around 30 minutes, when they typically lasted for several hours. Garcia admitted that the sex was rough and caused many victims pain, and, in some cases bleeding. When victims asked to stop filming, Garcia and other co-conspirators told the victims that they had to keep going and finish the videos. Hotel room doors were often blocked by camera and recording equipment.
The GirlsDoPorn and GirlsDoToys websites generated millions of dollars in revenue from this scheme. For his part, Garcia was paid a commission for each victim that he recruited on top of an hourly wage for his time. Garcia will be ordered to pay restitution in an amount to be determined by the court at sentencing.
“This defendant was a key player in a despicable fraud that has devastated the victims,” said U.S. Attorney Robert Brewer. “We will continue to fight for justice for them, and to prevent others from becoming victims of these schemes.” Brewer commended the excellent work of Assistant U.S. Attorneys Joseph Green and Alexandra F. Foster, as well as FBI agents and members of the San Diego Human Trafficking Task Force, on a case that resulted in tremendous pain for the victims.
FBI Special Agent in Charge Suzanne Turner said, “The FBI is committed to investigating those who prey upon trusting women and girls, causing pain and humiliation for their own personal gain. Today’s guilty plea of Garcia is just a small victory in the ongoing battle with those who commit sex trafficking.”
Garcia is scheduled to be sentenced by U.S. District Judge Janis L. Sammartino on March 5, 2021 at 9 a.m. The next hearing in the ongoing case is January 22, 2021 at 2:00 p.m.
Any additional victims of the alleged crime are encouraged to call the San Diego FBI at 858-320-1800.
The FBI is offering a reward of up to $10,000 for information leading to the arrest of Michael James Pratt. Individuals with information about Pratt should contact their local FBI office or the nearest American Embassy or Consulate.
For further information, please see:
- Wanted Poster: https://www.fbi.gov/wanted/additional/michael-james-pratt
- Press Release: https://www.fbi.gov/contact-us/field-offices/sandiego/news/press-releases/fbi-seeks-public-assistance-in-locating-sex-trafficking-suspect
DEFENDANTS Case Number 19cr4488-JLS
Ruben Andre Garcia Age: 31 San Diego, CA
*Pleaded guilty to Counts 1 and 7
CO-DEFENDANTS
Michael James Pratt Age: 36 Fugitive
Matthew Isaac Wolfe Age 37 San Diego, CA
Theodore Wilfred Gyi Age: 42 Aliso Viejo, CA
Valorie Moser Age: 37 San Diego, CA
Amberlyn Dee Nored Age: 27 San Diego, CA
SUMMARY OF CHARGES
Count 1 (charging all defendants)
Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1594(c)
Maximum Penalty: Life in prison, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
Count 2 (Pratt)
Production of Child Pornography, 18 U.S.C. § 2251(a) and (e)
Minimum penalty: Fifteen years in prison; Maximum penalty: 30 years in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
Count 3 (Pratt)
Sex Trafficking of a Minor by Force, Fraud and Coercion, 18 U.S.C. § 1591(a)(1) and (2)
Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
Counts 4 (Pratt, Wolfe, Garcia), 5 (Pratt, Garcia), 6 (Pratt, Wolfe, Garcia), 7 (Pratt, Garcia, Gyi), 8 (Pratt, Garcia, Gyi)
Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1591(a) and (b)(1)
Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
INVESTIGATING AGENCY
FBI
San Diego Human Trafficking Task Force
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
28 Sentenced for "Spice" Manufacturing and Distribution in TucsonRead the Press Release
TUCSON, Arizona – The last of twenty-eight defendants charged in two sweeping investigations into the manufacture and distribution of the controlled substance commonly referred to as “spice,” a synthetic cannabinoid made with chemicals, was federally sentenced on December 10 in United States District Court.
The twenty-eight defendants were charged and convicted of a variety of crimes including conspiracy to possess with intent to distribute a controlled substance, conspiracy to possess with intent to distribute a controlled substance analogue, conspiracy to engage in interstate travel in aid of racketeering, conspiracy to commit mail fraud, introduction of misbranded drugs into interstate commerce, and money laundering.
As part of their sentences, the twenty-eight individuals forfeited, among other things, six residences, one business, twelve vehicles, $532,158 in U.S. currency, and obtained money judgments in the amount of $1,335,402.
The National Institute of Health describes synthetic cannabinoids as human-made, mind-altering chemicals that are either sprayed or dried, shredded plant material that can be smoked, or sold as liquid to be vaporized and inhaled in e-cigarettes and other devices. Synthetic cannabinoids are often labeled as “not for human consumption,” and may claim they contain natural materials, however they are dangerous chemicals that bind to the same receptors in the brain as THC and may have unpredictable effects.
Two separate multi-year investigations conducted by the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigations (FBI), Homeland Security Investigations (HSI), U.S. Border Patrol (CBP), U.S. Marshal Service (USMS), Tucson Police Department, South Tucson Police Department, Casa Grande Police Department and the Sahuarita Police Department, discovered that “spice” suppliers in Colorado and Arizona imported the precursor chemicals from China, and manufactured the controlled substances in Long Beach, California and Tucson and Phoenix, Arizona. The suppliers then distributed the controlled substances primarily to local smoke shops in Tucson, South Tucson, Dallas/Fort Worth, and other cities, where they were ultimately sold to drug users. The twenty-eight defendants each pleaded guilty and were convicted and sentenced as follows:
On December 10, 2020, Madji Khaleq, of Denver, Colorado, was sentenced to four years of probation for conspiracy to distribute controlled substances and controlled substance analogues. $164,944 in United States currency and $25,320 in money orders were forfeited. Khaleq is also required to pay a personal money judgment in the amount of $75,837 to the United States.
On November 8, 2018, Ana Patricia Hidalgo-Hernandez, of Long Beach, California, was sentenced to time served in prison, followed by three years of supervised release for Conspiracy to Introduce Misbranded Drugs into Interstate Commerce.
On November 30, 2017, Najib Alghaithi, of Tucson, Arizona, was sentenced to twenty-four months in prison followed by three years of supervised release for Conspiracy to Possess with Intent to Distribute Controlled Substance Analogues. $66,299 in United States currency was forfeited.
On October 20, 2020, Abdulkader Alghaithi, of Tucson, Arizona was sentenced to thirty-six months in prison, followed by three years of supervised release for Conspiracy Possess with Intent to Distribute Controlled Substances, Possession with Intent to Distribute Controlled Substances, and Conspiracy to Possess with Intent to Distribute Controlled Substance Analogues. The government forfeited Alghaithi’s vehicle and residence.
On July 12, 2018, Jamil Qasem, of Tucson, Arizona, was sentenced to forty-two months in prison followed by three years of supervised release for Conspiracy to Possess with Intent to Distribute Controlled Substances and Conspiracy to Possess with Intent to Distribute Controlled Substance Analogues. Qasem is also required to pay $40,000 to the United States.
On January 18, 2018, Mazin Saleh, 36, of Tucson, Arizona, was sentenced to four years of probation for Conspiracy to Commit Mail Fraud. The government seized $5,000 in lieu of Saleh’s vehicle.
On January 23, 2018, Muhieldin Muhieldin, of Tucson, Arizona, was sentenced to three years of probation for Receiving Misbranded Drugs in Interstate Commerce.
On January 4, 2018, Nasser Farah, of Chicago, Illinois, was sentenced to three years of probation for Conspiracy to Possess with Intent to Distribute Controlled Substances.
On June 29, 2017, Davoud Shayan, of Tucson, Arizona, was sentenced to time served followed by one year of supervised release for Introduction of Misbranded Drugs in Interstate Commerce.
On August 15, 2017, Denice Michael, of Tucson, Arizona, was sentenced to two years of probation for Receipt of Misbranded Drugs in Interstate Commerce.
On January 23, 2018, Kholoud Hamdi, of Tucson, Arizona, was sentenced to three years of probation for Introduction of Misbranded Drugs in Interstate Commerce.
On January 5, 2018, Sharif Hamdi, of Tucson, Arizona, was sentenced to fourteen months in prison followed by one year of supervised release for Introduction of Misbranded Drugs in Interstate Commerce.
On June 21, 2017, Junior Jacklick, of Tucson, Arizona, was sentenced to time served, for the Introduction of Misbranded Drugs in Interstate Commerce.
On June 6, 2017, Qasem Mahmoud Shahin, of Tucson, Arizona, was sentenced to two years of probation for Receipt of Misbranded Drugs in Interstate Commerce.
On June 22, 2017, Adam Hassan, of Tucson, Arizona, was sentenced to two years of probation for Receipt of Misbranded Drugs in Interstate Commerce.
On February 21, 2018, Abdulaziz Shahin, of Tucson, Arizona, was sentenced to twenty-seven months in prison followed by three years of supervised release for Conspiracy to Possess with Intent to Distribute a Controlled Substance and Conspiracy to Possess with Intent to Distribute Controlled Substance Analogues. Shahin is also required to pay $14,565 to the United States.
On November 8, 2017, Nasir Ibrahim, of Tucson, Arizona, was sentenced to thirteen months and one day in prison followed by one year of supervised release for Receiving Misbranded Drugs in Interstate Commerce.
On August 9, 2019, Samuel Salomon of Tucson, Arizona, was sentenced to thirty-six month in prison followed by three years of supervised release for Conspiracy to Possess with Intent to Distribute Controlled Substances and Conspiracy to Launder Monetary Instruments. The government forfeited Salomon’s residence, two other parcels of land, his smoke shops, two vehicles, and $15,801 for the sale of a third vehicle. Samuel Salomon is also required to pay $1,200,000 to the United States.
On September 4, 2019, Daniel Salomon, of Tucson, Arizona, was sentenced to six months in prison followed by three years of supervised release for Conspiracy to Launder Monetary Instruments.
On November 13, 2019, Ardell Addington, of Evansville, Wyoming, was sentenced to time served followed by three years of supervised release for Conspiracy to Possess with Intent to Distribute Controlled Substances and Controlled Substances Analogues.
On June 18, 2019, Renee Salomon, of Tucson, Arizona, was sentenced to four years of probation for Conspiracy to Launder Monetary Instruments. Renee Salomon is also required to pay $50,000 to the United States.
On August 9, 2019, Rodolfo Alvarez Samaniego, of Tucson, Arizona, was sentenced to two years of probation for Causing the Introduction of Misbranded Drugs in Interstate Commerce.
On June 7, 2019, Mauro Acuna, of Tucson, Arizona, was sentenced to three years of probation for Conspiracy to Possess with Intent to Distribute Controlled Substances and Controlled Substance Analogues.
On January 22, 2020, Anabel Valdez, of Tucson, Arizona, was sentenced to two years of probation for Receipt of Misbranded Drugs in Interstate Commerce.
On March 19, 2018, Jose Edmundo Gradillas, of Tucson, Arizona, was sentenced to two years of probation for Receipt of Misbranded Drugs in Interstate Commerce.
On June 11, 2019, Alfred Manuel Gamez, Jr., of Tucson, Arizona, was sentenced to three years of probation Receipt of Misbranded Drugs in Interstate Commerce.
On March 16, 2018, Daniel James Garcia, of Tucson, Arizona, was sentenced to four years of probation for Conspiracy to Import Controlled Substances and/or Analogues and Conspiracy to Laundering of Monetary Instruments.
On July 3, 2018, Damien Ismail Sanchez, of Tucson, Arizona, was sentenced to two years of probation for Receipt of Misbranded Drugs in Interstate Commerce.
The investigations were conducted by agencies participating in the Organized Crime Drug Enforcement Task Force. The partner agencies include the DEA, IRS-CI, FBI, HSI, CBP, USMS, Tucson Police Department, South Tucson Police Department, Casa Grande Police Department and the Sahuarita Police Department. Assistant U.S. Attorney Matthew G. Eltringham, District of Arizona, Tucson, handled the prosecutions.
CASE NUMBERS: 16-CR-1430-TUC JGZ (LCK), 16-CR-1431-TUC JGZ (LCK), 16-CR-1432-TUC JGZ (LCK), 16-CR-1433-TUC JGZ (LCK), 16-CR-2160-TUC JGZ (DTF).
RELEASE NUMBER: 2020-111_ Synthetic Spices###
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
16 December 2020
Yankton Woman Sentenced for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Yankton, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine) was sentenced on December 15, 2020, by U.S. District Judge Lawrence L. Piersol.
Morgan Rae Grant, a/k/a Morgan Ray Grant, a/k/a Sway, age 41, was sentenced to 120 months in federal prison, 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Grant was indicted by a federal grand jury on March 3, 2020. She pled guilty on September 22, 2020.
The conviction stemmed from incidents beginning on an unknown date and continuing until approximately February 2020.
On October 21, 2019, a vehicle Grant was driving in was stopped for illegal tint. A K-9 dog was brought in and alerted to the presence of drugs. Law enforcement then searched the vehicle and located more than 50 grams of methamphetamine and several items of paraphernalia.
This case was investigated by the South Dakota Division of Criminal Investigation, the Sioux Falls Area Drug Task Force, and the U.S. Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Grant was immediately turned over to the custody of the U.S. Marshals Service.
United States Attorney's Office District of Arizona November 2020 Immigration and Border Crimes ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
175 individuals were charged in November with illegal reentry
A. 126 of those 175 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 126 individuals with non-immigration criminal records:
1. 30 had violent crime convictions, including:
1 individual had a homicide conviction
11 individuals had sex offense convictions
2 individuals had domestic violence convictions2. 13 had property crime convictions
3. 20 had DUI convictions
4. 60 had drug crime convictions
B. 64 of those 175 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
24 individuals were charged in November with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
0 individuals were charged in November with illegal entry on the CCI calendar
Criminal conviction information is based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
*The Department of Homeland Security instituted a policy in late March of expeditiously returning aliens who illegally enter the United States rather than detaining them. The decreased number of individuals presented to this Office for prosecution coincides with the implementation of that policy and other COVID-19 related border restrictions.
RELEASE NUMBER: 2020-110_November Immigration and Border Crimes Report
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.U.S. Department of Justice recognizes Community Violence Intervention Program in Indianapolis for its work with Project Safe NeighborhoodRead the Press Release
Indianapolis – Acting United States Attorney John E. Childress announced today that the Department of Justice has recognized the Community Violence Intervention Program in Indianapolis for Outstanding Innovative Prevention/Reentry Strategy in support of the Project Safe Neighborhoods (PSN) Initiative.
“This program and the group who has worked so hard for its success are worthy of recognition,” said Childress. “They saw a need, developed a plan, and have seen some promising results for those on probation who desire to choose a different path in their community.”
“The Community Violence Intervention Program is a proven approach to reduce violence in neighborhoods,” said Indianapolis Mayor Joe Hogsett. “Director of Community Violence Reduction Shonna Majors and IMPD leadership has worked with partners and stakeholders across the city to lead on this important initiative. Thanks to their efforts, Indianapolis has a more focused, more effective strategy to reduce violence and get at-risk individuals the help they need.”
Project Safe Neighborhood: Community Violence Intervention (PSN: CVI) program focuses on individuals currently on probation who have been linked to gun crimes and non-fatal shootings within Indianapolis. The program, which focuses on a small group of individuals (between 10-20 participants), provides participants with resources intended to reduce recidivism.
The program started as a result of the United States Attorney’s Office through the Project Safe Neighborhood initiative, reaching out to the Marion County Probation Office, the Indianapolis Mayor’s Office, the Marion County Prosecutor’s Office, and the Indianapolis Metropolitan Police Department.
The theme for the PSN: CVI presentation is “we want you alive, safe and successful.” Thus, the program allows participants to engage with resource partners who aid with job placement, vocational training, transportation assistance, education, and mental health counseling. The program also includes information about the legal consequences that can occur if the individuals stay on the path they currently are on. However, the goal of this program is to steer individuals towards the resource partners and prevent recidivism. The participation with the resource partners is encouraged but voluntary. During the program, the probationers hear from the Mayor’s Office, the Marion County Prosecutor’s Office, the Indianapolis Metropolitan Police Department, The United States Attorney’s Office, and local resource partners who are provided through the Mayor’s Office.
PSN: CVI is conducted at locations in various neighborhoods around the city of Indianapolis. The neighborhoods are chosen based on their high levels of gun violence. PSN: CVI began on March 14, 2019. The group decided to conduct meetings quarterly, and always in the evening to ensure that as many members of the community as possible can attend. This year the group has only had one virtual meeting due to the current pandemic. The group plans to meet virtually until they can safely meet in person.
The program has already produced results: Thus far, the participants’ violations have been minimal, and several participants have taken advantage of the resources that have been offered through the program. That’s why the theme of PSN: CVI, enumerated at each meeting, is stark: “We want you alive, safe, and successful”.
The following are the individual that have created the Project Safe Neighborhood: Community Violence Intervention Program in Indianapolis:
- Peter Blackett- United States Attorney’s Office
- Jennifer Joy- Marion County Prosecutor’s Office
- Shonna Majors- Indianapolis Mayor’s Office
- Megan Durbin- Marion County Probation Office
- Christine Kerl- Marion County Probation Office
- Sandra Bryan- Marion County Probation Office
- Matthew Thomas- Indianapolis Metropolitan Police Department
- Michael Wolley- Indianapolis Metropolitan Police Department
Revitalized in 2017, PSN is a critical piece of the Department of Justice crime reduction efforts. PSN has focused on prosecuting those individuals who most significantly drive violence in our communities and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Department of Justice Recognizes U.S. Attorney's Office for the Eastern District of North Carolina for its Work with Project Safe NeighbhorhoodsRead the Press Release
Take Back North Carolina Receives National Award as the Outstanding Overall Partnership/Task Force
RALEIGH – The Department of Justice has recognized the Take Back North Carolina initiative of the United States Attorney’s Office for the Eastern District of North Carolina with its Outstanding Overall Partnership/Task Force Award in support of the Project Safe Neighborhoods (PSN) Initiative.
“We are extremely gratified and humbled by the Attorney General’s recognition of the important work being done by federal, state and local law enforcement, our partners in the District Attorneys’ Offices and by the men and women of my office as we seek to drive down crime rates and deliver safer communities to all the citizens of the Eastern District.” Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina said. “When I took office as the United States Attorney, the President and the Attorney General made it clear that job one in our District was to reduce crime rates and to attack drug trafficking organizations operating here. We have taken that task very seriously and, because of the hard work of so many, we have seen those crime rates decline as we have removed the drivers of those crime rates from our cities and towns. This award honors a sustained effort by many, many dedicated public servants and it is a privilege to accept this award on their behalf.”
In early 2018, the United States Attorney’s Office for the Eastern District of North Carolina launched Take Back North Carolina in an effort to drive down spiraling crime rates and to attack drug trafficking organizations - specifically violent crime and drug activities caused by gangs and other national and transnational organizations. Through the initiative, teams of Assistant United States Attorneys and legal support staff were deployed across the 44 counties of the Eastern District focusing on six broad geographic areas. Each team was tasked with building strong relationships with federal, state and local law enforcement operating in those areas and they worked in close coordination with the 15 elected District Attorneys who prosecute state crimes in North Carolina courts in the eastern half of the State. Building on these relationships, our prosecutors worked to identify the individuals who are driving the crime problem in the communities in their assigned area and with charging and prosecuting those individuals in an effort strategically designed to reduce violent crime rates and disrupt and dismantle drug trafficking operations across the District.
Since the Initiative’s inception, more than 1600 individuals have been prosecuted as part of this Initiative, representing a more than 50% increase in the number of defendants charged by this office over those charged in 2016 and 2017. But, more importantly, due to the strategic targeting of the drivers of our violent and drug crime problems, many communities have seen measurable - and in some cases dramatic - reductions in the violent crime rates. For example, based on data analyzed and provided by our research partners at the University of North Carolina - Greensboro, the following cities saw significant reductions in crime rates during 2018 and 2019[1] while participating aggressively in the Take Back North Carolina Initiative:
-Jacksonville - 50% reduction in homicides; 42% decrease in robberies; 83%
reduction in aggravated assaults;
-Henderson - 60% reduction in robberies; 21% decrease in aggravated assaults;
-Greenville - homicides down 60%; robberies reduced by 15%.
And, these results have been replicated in communities of all sizes all across the Eastern District. We have also seen the prosecution of the leadership of numerous sects of violent, drug-trafficking gangs across the District. Targeting the leadership of the various Bloods organizations, the Take Back North Carolina Initiative has worked to disrupt and dismantle their operations in this federal district.
Drugs fuel gun violence and the opioid crisis is no exception. Aside from increasing the number of deaths resulting from heroin overdose cases prosecuted, TBNC has also focused on educating the public about the heroin epidemic through the establishment of the USAO Heroin Education Action Team (USA-HEAT). USA-HEAT works to reduce the growing harm to North Carolina families caused by heroin/opiate abuse, partnering with the Drug Enforcement Administration, local law enforcement, community health professionals, and family members who have lost a loved one to a drug overdose. In the last six months, the USAO has conducted 17 training events, each lasting 1-3 hours with content tailored to that audience (e.g., first responders and community groups). Other prevention efforts include the Educating Kids about Gun Violence (EKG) program – part of the Fayetteville Police Department’s Operation Ceasefire, created in 2002 under the umbrella of PSN and USAO-EDNC. In the past 5 years, 25,241 students in Fayetteville have been educated through EKG. Overall violent crime for this age group has decreased 10% city wide since EKG began. Other PSN sites – Goldsboro, Pasquotank County, Kinston, and Vance County have adopted the EKG program. Other prevention efforts include re-entry programs, and an outdoor movie series to engage the community and create public awareness about gun violence. In 2019, 1,425 people attended 6 movie nights in Fayetteville and Cumberland County.
TBNC PSN sites have worked hard to develop an effective public messaging strategy for each community utilizing press releases, press conferences, and advertising campaigns highlighting the penalties for committing federal crimes. In the last two years, the USAO-EDNC issued over 250 press releases highlighting PSN cases and has held numerous press conferences highlighting TBNC success stories. The USAO has produced hundreds of posters for PSN sites to help spread public awareness and has worked with the Executive Office for United States Attorney’s to develop multiple Public Service Announcements (PSA) focusing on violent crime and opioids. These PSA’s have been widely distributed across EDNC for use by the media and communities.
Revitalized in 2017, PSN is a critical piece of the Department’s crime reduction efforts. PSN has focused on prosecuting those individuals who most significantly drive violence in our communities and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
[1] These are the most recent statistics currently available.
U.S. Department of Justice Recognizes State Attorney Melissa Nelson for Her Contributions to Project Safe NeighborhoodsRead the Press Release
Jacksonville, Florida – Today, the Department of Justice recognized State Attorney Melissa Nelson of the Fourth Judicial Circuit for her Office’s outstanding support of the Project Safe Neighborhoods (PSN) Initiative.
“Public safety is the culmination of leadership, vision, and a commitment to improving the quality of life in her community,” said U.S. Attorney Maria Chapa Lopez. “Melissa Nelson has achieved all three. Through a spirit of cooperation and public service, she has dedicated herself and her office to reducing crime by investing in people, proven methods and technologies, and imagining new possibilities. The success of Project Safe Neighborhoods in northeast Florida is directly attributable to her ability to galvanize her office, critical agencies and community partners around a common goal – creating safer communities.”
Melissa Nelson was elected State Attorney and sworn into office in 2017. Immediately thereafter, she made PSN a priority, becoming the driving force behind creating Northeast Florida’s first Crime Gun Intelligence Center (CGIC) and working to secure city funding for the CGIC. The Center was later constructed in her office, and officially opened on May 21, 2019. State Attorney Nelson worked closely with the Jacksonville Sheriff's Office (JSO) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to secure officers and agents to fully staff the CGIC. In addition, she has assigned some of the Fourth Circuit’s most experienced prosecutors to work with the CGIC team, welcomed prosecutors from the U.S. Attorney’s Office (MDFL), and has helped foster a great working relationship among all participating agencies. Because of her dedication and leadership, she was named to ATF's National Crime Gun Intelligence Board.
Prior to the CGIC opening, assistant state attorneys accompanied JSO officers to Denver, Colorado to learn about other successful PSN operations and how to incorporate best practices into the newly formed Jacksonville CGIC. As part of the overall effort, State Attorney Nelson helped to secure additional funding for National Integrated Ballistic Information Network (NIBIN) machines to ensure that recovered shell casings from shooting scenes are processed within 48 hours. Housed within JSO, two NIBIN machines and a full-time ballistics expert help accomplish this task. This integration of interagency coordination, cooperation, and technology has resulted in the successful prosecution of numerous state and federal violent crime cases.
To further complement PSN’s comprehensive strategy, State Attorney Nelson completely re-structured the juvenile division within her office to better serve the community and established a program to provide at least one prosecutor to every middle and high school in Duval County. Through this program, prosecutors regularly meet with students to improve relationships between the community, prosecutors, and law enforcement. In addition, as part of the MDFL’s federal Intensive Re-entry Program, assistant state attorneys are involved in the district’s re-entry efforts through the Jacksonville Re-entry Center (JREC).
Revitalized in 2017, PSN is a critical piece of the Department’s crime reduction efforts. PSN has focused on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
U.S. Attorney Peter McCoy Urges the Public to be Wary of Coronavirus Vaccine ScamsRead the Press Release
Charleston, South Carolina --- With the Coronavirus vaccine being distributed across the country, United States Attorney Peter M. McCoy, Jr. warns South Carolinians to be on high alert for fraudsters seeking to take advantage of the pandemic.
“Having already seen supply scams, provider scams, economic impact scams, phishing scams, and even charity scams related to COVID-19 across the country, every South Carolinian should be extra cautious for the possibility of phony websites and other outreach claiming early access to the vaccine,” said U.S. Attorney McCoy. “Everyone, particularly seniors and their caretakers, should be on high alert for fraudsters seeking to take advantage of their most vulnerable neighbors.”
At the beginning of December, it was reported that the Federal Trade Commission (FTC) had already received over 250,000 COVID-19 related consumer complaints, with two-thirds involving fraud or identity theft.
“Be it through robocalls, texts, emails or other means of communication, the potential for continued Coronavirus scams could be as rampant as the disease itself,” U.S. Attorney McCoy continued. “Not only do these criminals victimize the recipient of the scam, they can also cast doubt for many others to trust the legitimate work being done by honest, reliable providers.”
U.S. Attorney McCoy wants South Carolinians to know that the best defense to Coronavirus scams is vigilance, knowing criminals have multiple methods to try to take advantage of others. He urges all to:
- Know that you cannot pay to put your name on a list to get the vaccine or to get early access to the vaccine.
- Know that no legitimate vaccine distribution site or heath care payer, like a private insurance company, will call asking for your Social Security, banking, or credit card numbers to sign you up to get the vaccine.
- Beware of providers offering other products, treatments, or medicines to prevent the virus. Check with your health care provider before paying for or receiving any COVID-19-related treatment.
- Never send money or give out your Social Security number, date of birth, bank account numbers, and credit card numbers and expiration dates to unfamiliar companies or unknown persons.
- Know that the IRS will never ask for your social or bank information over the phone.
- If you have become a victim, do not be too ashamed or afraid to report it. Contact the National Center for Disaster Fraud Hotline at 1-866-720-5721 or online at www.justice.gov/coronavirus.
U.S. Attorney McCoy stressed his office’s commitment to stopping the criminals before more can become victims of their crimes.
“Along with law enforcement partners, the United States Attorney’s Office will work to identify, investigate, and prosecute to the fullest extent of the law those who seek to defraud their neighbors during this pandemic,” concluded McCoy.
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U.S. Attorney McCoy is currently discussing the U.S. Attorney’s Office’s efforts to combat Coronavirus-related frauds and schemes with media members. To schedule an interview with U.S. Attorney McCoy, please call the office’s Public Affairs Specialist, Michael Mule’ at 843-327-0882 or email him at [email protected].
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.
U.S. Attorney Lawrence Keefe Presents Leon County Sheriff's Office with Department of Justice Project Safe Neighborhood AwardRead the Press Release
TALLAHASSEE, FLORIDA – Lawrence Keefe, United States Attorney for the Northern District of Florida, today recognized the Leon County Sheriff’s Office as one of just two law enforcement agencies in the nation being honored for outstanding contributions to the Justice Department’s Project Safe Neighborhoods (PSN) Program. U.S. Attorney Keefe made remarks before presenting Leon County Sheriff Walt McNeil with a plaque and a letter from U.S. Attorney General William P. Barr, in the rotunda of the Leon County Courthouse.
“This community should know about the extraordinary work being done by Sheriff McNeil and the entire Leon County Sheriff’s Office,” said U.S. Attorney Keefe. “There are over 15,000 local sheriff’s offices and police departments in the United States and to be one of only two in the entire country to receive this award this year speaks so much about the exceptional team serving the people of Leon County.”
This PSN award recognizes a police or sheriff’s department that has shown superior commitment to targeting and/or preventing violent crime at the local level. Typically, the award would be presented by the Attorney General at the annual Project Safe Neighborhoods Conference, but this year’s event, originally planned for mid-April in Dallas, TX, was postponed and ultimately cancelled due to COVID-19.
The Leon County Sheriff’s Office (LCSO) has played an integral role in furthering the goals and initiatives of the PSN Program through its ALLinLEON program, formally established in May 2019. Through collaborative efforts with law enforcement and community partners, including the U.S. Attorney’s Office, ALLinLEON has consistently been effective at reducing violent crime and making Leon County a safer place to live.
During today’s award presentation, Sheriff McNeil also recognized the following ALLinLEON law enforcement partners:
- Chief Lawrence Revell, Tallahassee Police Department
- Chief John Gourley, Florida Highway Patrol
- Sheriff Jared Miller, Wakulla County Sheriff’s Office
- U.S. Marshal Don Ladner, U.S. Marshals Service
The Project Safe Neighborhoods Program brings together all levels of law enforcement and the communities they serve, to reduce violent crime and make our neighborhoods safer for everyone. U.S. Attorney’s Offices throughout the country work in partnership with federal, state, and local law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
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.
Press Release - PSN Award to LCSOU.S. Attorney Justin Herdman announces resignationRead the Press Release
Justin E. Herdman, United States Attorney for the Northern District of Ohio, announced today that he has submitted his resignation to President Donald J. Trump and Attorney General William P. Barr.
Herdman was sworn-in as United States Attorney on August 21, 2017 and will step-down on January 8, 2021. By operation of federal law, First Assistant U.S. Attorney Bridget Brennan will be sworn-in as Acting U.S. Attorney upon the effective date of Herdman’s resignation.
“I commend U.S. Attorney Justin Herdman for his distinguished service to the Justice Department and American people these past few years,” said Attorney General William P. Barr. “Justin is a consummate and principled public servant who has also served as an invaluable member of the Attorney General’s Advisory Council. His steadfast commitment to building safer communities and bringing justice to the citizens of Northern Ohio and our nation is unparalleled. Under his leadership, his office forged partnerships with federal, state and local law enforcement agencies to combat addiction and violence in his community. I wish him well in all his future endeavors.”
“To serve as U.S. Attorney for the Northern District of Ohio for these past three years has been a singular honor,” said U.S. Attorney Justin Herdman. “There are not many jobs where you can work every day to ensure the safety and well-being of millions of your neighbors and friends. Northern Ohio is where I grew up, it is where my wife and I chose to raise a family, and it is where I have always wanted to spend my entire career. To have been offered an opportunity to contribute, even in a small way, to the future of our community is the privilege of a lifetime.”
“I want to thank President Trump, Attorney General Sessions and Attorney General Barr for their confidence in me to lead this office. I would also like to thank Senator Portman and Senator Brown, both of whom originally recommended me for this position and placed their trust in my abilities to serve all residents of northern Ohio. I am also deeply appreciative of the men and women of the U.S. Attorney’s Office who have stood with me in carrying out the virtuous mission of the Justice Department. Their work and dedication to the pursuit of justice make our communities and country a better place to live. As a person soon to re-enter private life, I am forever grateful for their vigilance in protecting the public. Any credit for the accomplishments throughout my tenure as United States Attorney belongs to them and our law enforcement partners, and for that, they have my enduring thanks.”
The following are notable accomplishments achieved under U.S. Attorney Herdman’s leadership:
Enforcement Priority: Combatting Opioids & Narcotics Overdoses
As United States Attorney, Herdman’s chief priority was to focus on saving lives. When he began his tenure in 2017, no area demanded more attention than the opioid epidemic and narcotics overdose crisis. Using a whole-of-office approach, Herdman established a Diversion Working Group to pursue unlawfully diverted prescription painkillers across the supply chain, which resulted in the precedent-setting use of the Controlled Substances Act’s civil provisions to enjoin healthcare professionals from illegal prescribing. “I am particularly proud of the results of our Diversion Working Group,” said Herdman, “The hard work of those attorneys and investigators led to numerous prosecutions, convictions, and civil suits of irresponsible healthcare workers. Their efforts have absolutely reduced the oversupply of prescription opioids in our district and have undoubtedly saved lives.”
Herdman also established a Dark Web Working Group, a multi-agency investigative team tasked with identifying online vendors of illicit narcotics, especially fentanyl and synthetic opioids, and holding them accountable. These efforts have led to numerous prosecutions of dark web and online drug dealers, as well as charges against the Zheng drug trafficking organization, which is based in the People’s Republic of China and in July 2020 was designated under the Kingpin Act by the U.S. Department of Treasury. Herdman also oversaw the nationally recognized Operation Darkness Falls initiative, which was a multi-agency effort designed to identify, investigate, and prosecute the highest-profile criminal targets operating on the dark net. Given the record number of deaths stemming from the opioid epidemic, Operation Darkness Fall’s chief focus was on combatting fentanyl and other synthetic opioid dark net distributors. Included among the successful prosecutions of this operation was the identification and prosecution of MH4Life, the most prolific fentanyl trafficker on the dark net, which had over 4,000 verified drug transactions on just three of the dozen dark net marketplaces where it was operating.
In October 2018, the Department of Justice announced that Cleveland would be the location of a new, multi-agency Strike Force funded by the Organized Crime and Drug Enforcement Task Force. The Strike Force commenced operational activities in 2019 and is expected to co-locate all operations at a new Strike Force building, which will host all participating agencies, in January 2021.
Under his leadership, the office prosecuted more narcotics-related offenses in each year between 2018 and 2020 (393, 456, and 493 individual defendants, respectively) than ever before in the history of the district. From 2018 to 2020, the U.S. Attorney’s Office prosecuted more than double the number of narcotics defendants than in the years 2014 to 2016. “Behind each of these numbers is a drug trafficker, someone who sold poison to one of our neighbors, friends, or family members suffering from addiction,” Herdman said, “The decision to prosecute someone on the federal level is not one that we make lightly, but the fact is that in this era, where fentanyl has killed thousands of Ohioans, there is no such thing as a low-level drug dealer. Enforcement of our nation’s drug laws is a cornerstone in winning the fight against overdose deaths, and over the past three years, our office and our investigative partners have more than done our part.”
Herdman also brought federal resources to bear in combatting narcotics trafficking in locations outside the largest metropolitan areas. In 2018, Operation S.O.S. was launched in Lorain County to help stop the supply of synthetic opioids in the area. Since that time, opioid overdose deaths in Lorain County have decreased by 31%. Similarly, targeted enforcement operations have been brought across the district, including in Trumbull County, Marion, Mansfield, and Lima. “There is no town in Ohio that has escaped the opioid epidemic,” Herdman said, “I’m proud of the cases that we have brought in smaller cities with the cooperation of local law enforcement. The residents of Warren, Marion, Mansfield, Lorain, Elyria, and many other cities have people who are alive in this holiday season because of the cases that we have prosecuted.”
Herdman also continued a series of prevention efforts designed at developing collaborative, community-wide approaches to reducing overdose deaths. In 2018, Herdman convened a conference of leaders from healthcare, recovery, social services and law enforcement communities at the Cleveland Clinic. This group, which was brought together five years after a similar conference, recommended a new community action plan that established, for the first time, a team dedicated to incorporating data and analytics into the U.S. Attorney’s Heroin and Opioid Task Force.
These efforts have seen success and, in some instances, dramatic improvement in the death rate associated with narcotics overdoses. In 2018, the district experienced the first decrease in narcotics overdoses since 2010. In Cuyahoga County, 2018 saw a 24-percent decrease in overdose deaths from the preceding year and that number remained relatively stable through 2019. Similar decreases in overdose deaths were witnessed across the district in that time span. “Despite all evidence pointing to the impossibility of reversing the upward trend of overdose deaths, we were able to do just that in Ohio through the coordinated efforts of law enforcement, treatment and recovery professionals, the health care community, policymakers and politicians, and concerned citizens,” Herdman said, “We are not out of this yet, though. 2020 will undoubtedly see a rise in overdose deaths as COVID-19 has pushed the opioid crisis from the headlines and as our neighbors suffering from addiction have had to do so in isolation, without face-to-face help from peer counselors and recovery specialists. I promised to leave no stone unturned in our fight against overdose deaths. Our office is well-positioned to continue delivering on this solemn commitment to our community in the next year and for many years to come. This is a fight that we not only can win, but must win.”
Enforcement Priority: Reducing Violent Crime
Upon becoming U.S. Attorney, Herdman established a Violent Crimes Unit and staffed it with experienced attorneys focused on prosecutions of gang members, gun traffickers, armed robbers, and carjackers. These efforts were supplemented by increased enforcement of illegal firearms possession, especially where guns were used to further other violent crimes or narcotics offenses. The number of individuals prosecuted for illegal firearms possession offenses in 2020 represented a 162% increase – almost three times as many – from the number of similar offenses prosecuted in 2016.
In both Toledo and Cleveland, the police departments were participants in the Department’s Public Safety Partnerships, which provided training and technical assistance designed to improve the city’s approaches to reducing violent crime. In 2018, the office supported Operation We-R-CLE, an enforcement operation focused on the east side of Cleveland, which resulted in the seizure of numerous firearms and arrests of the city’s most violent fugitives. That operation resulted in a historic low for homicides in the city – 2 in the month of May 2018 – and an overall decrease in violent crime across the neighborhoods selected for the initiative.
In 2019 in Youngstown, the office supported Operation Steel Penguin and Operation Rookery, violent crime reduction efforts which included a data-driven enforcement effort. Under these initiatives, the ATF, along with officers from the Youngstown Police Department and Ohio’s Adult Parole Authority, worked together to identify violent offenders and reoffenders. These operations led to 109 arrests, the seizure of 45 illegally possessed firearms and an overall reduction in violent crimes during the operational period by 30% and homicides by 90% (as to compared to the preceding year).
More recently, in July of 2020, Herdman announced that Operation Legend, a collaborative law enforcement partnership, would be launched in the city of Cleveland to address increasing violent crime rates. Operation Legend will provide funding to support almost 40 task force officers from the Cleveland Division of Police, Ohio State Highway Patrol, the Ohio Investigative Unit, and Ohio Adult Parole, as well as permanent reassignment of additional federal agents from ATF, DEA, FBI and the U.S. Marshals Service. Also this past year, in response to an alarming rise in firearms violence over the summer, Herdman announced Project Red-Zone, a partnership between federal, state, and local law enforcement in Toledo and Youngstown to federally prosecute every illegal gun possession case from those locations during the operational period of the initiative. This effort was credited with dramatically reducing firearms violence in those cities over the Labor Day weekend in 2020.
“Until this past year, our violent crime reduction efforts were making significant progress in our district’s largest cities,” Herdman said, “While there is no doubt that 2020 has presented new, substantial challenges to law enforcement when it comes to violent crimes, especially shootings and homicides, I am confident that the strategies and resources that we have put in place will witness improvement in our cities’ violent crime rates in 2021 and well beyond.”
Enforcement Priority: Prosecuting Domestic Violence Offenders
Another area of focus for Herdman was an unprecedented federal enforcement effort directed at the prosecution of domestic violence-related firearms offenders. In October of 2018, Herdman announced a new initiative on federal level domestic violence enforcement.
In the two years since that announcement, the district has seen a 300% increase in the number of firearms-related cases brought against domestic violence offenders than in previous years. “A gun in the hand of a domestic violence offender is far more likely to be used to kill the victim in that setting, and far more likely to be used against responding law enforcement,” Herdman said, “I am proud of the work that we have done in addressing domestic violence on the federal level and I believe that these efforts, which were previously never the focus of federal law enforcement, have saved the lives of domestic violence victims, innocent children, and police officers.”
National Security
As U.S. Attorney, Herdman also ensured that the Department of Justice’s number one priority – preventing terrorism and advancing national security – was carried out in the Northern District of Ohio. The office was responsible for disrupting several planned mass-casualty attacks, including a plan to attack downtown Cleveland on July 4, 2018 perpetrated by an individual who swore allegiance to Al Qaeda (United States v. Demetrius Pitts); a plot to attack a downtown Toledo bar and an energy pipeline (United States v. Lecron; United States v. Armstrong); an alleged plot by an ISIS-inspired individual to attack a Toledo-area synagogue (United States v. Joseph); and an alleged plot to kidnap and kill members of local law enforcement (United States v. Ferguson). Herdman also supervised ground-breaking prosecutions involving cybercrime, including the successful trial of a group of Romanian hackers (United States v. Nicolescu, et al., also known as the “Bayrob Group”) and continued to oversee public-private partnerships devoted to a broad cybersecurity response in Northern Ohio. Herdman also initiated prosecutions stemming from the Department’s China Initiative, including charges alleging a local researcher had failed to disclose financial support from the Chinese government’s “Thousand Talents Program.”
Fraud and Public Corruption
Throughout his tenure as U.S. Attorney, Herdman has delivered on a core Justice Department principle: rooting out self-dealing by public officials. Notable prosecutions and charges in the area of public corruption include the following:
- A former Allen County Sheriff was charged with soliciting bribes, extortion and making false statements, which resulted in a 136-month sentence and an approximately $600,000 restitution order.
- The former Chief Operating Officer of a publicly-funded hospital, along with four others, was convicted of a bribery and kickback scheme that involved thousands of dollars paid for patient referrals and the illegal use of hospital resources to support a side business.
- In a pending case, four sitting members of the Toledo City Council have been charged with bribery and extortion.
- The former chief of the City of Cleveland’s Demolitions Bureau was charged with receiving bribes in exchange for expediting inspections and providing non-public information on upcoming bids.
- A former Cuyahoga County land bank employee was charged with honest services fraud and bribery.
- A City of Cleveland Section Chief in the Engineering and Construction division was sentenced to 18 months in prison for extortion, bribery, and tax offenses after he accepted below-market improvements on his property from a city contractor he supervised and directed city projects to benefit himself. He was also ordered to pay restitution to the City of Cleveland and the Internal Revenue Service.
Fraudulent schemes, especially those that targeted vulnerable Ohioans and those seeking to exploit Medicaid programs and the nation’s efforts to address the COVID-19 pandemic, received similar attention from Herdman. An active participant in the Department’s Elder Fraud Initiative, Herdman’s office brought several charges against those who sought to exploit elderly residents of the district, including some residing in nursing homes. During Herdman’s tenure, the office also brought charges against three women who, under the guise of operating a reputable adoption agency, are alleged to have paid bribes to foreign officials to facilitate adoptions for American families in violation of, among other laws, the Foreign Corrupt Practices Act (FCPA). Charges were also brought against physicians and pharmaceutical employees who were alleged to have defrauded the Medicaid program by falsely diagnosing patients and promoting the use of specific controlled substances in exchange for kickbacks. Finally, Herdman has supervised a series of cases charging several individuals who allegedly defrauded the Payroll Protection Program, a federal effort to support small businesses during the pandemic, by, among other things, creating fictitious business and falsifying records to create the illusion that they were entitled to program funds.
Civil Rights
During Herdman’s tenure, civil rights remained a top priority of the office. Herdman also became a vocal advocate for the need to address the surge in white supremacy-related violence and threats to the public. Notable civil rights achievements include the first-ever indictment alleging both national security violations and hate crimes offenses (United States v. Joseph). Near the time of this indictment in early 2019, and recognizing the growing number of threats to places of worship and those who seek to peacefully exercise their religious rights, Herdman brought more than 250 people together, including community members, religious leaders, and law enforcement representatives and agents, for a multi-denominational conversation about supporting all faiths and securing places of worship.
Herdman also oversaw numerous prosecutions of individuals who used social media platforms or other internet-based communications to threaten northern Ohio residents with violence, including an individual who is alleged to have threatened a Youngstown-area Jewish Community Center (United States v. Reardon). With respect to human trafficking, the office remained engaged in addressing this threat to Ohioans, particularly in the area of juvenile sex trafficking. In Toledo and Cleveland, religious leaders have been charged with juvenile sex trafficking for allegedly paying underage boys and girls for commercial sex acts. Additionally, in what is the largest juvenile sex trafficking indictment brought in this district, a former Youngstown-area physician awaits trial for juvenile sex trafficking and child exploitation charges related to six juvenile victims with ages ranging from12 to 15 years.
Civil enforcement of federal civil rights laws received equal attention under Herdman, as the office has prioritized policing reform efforts, prevention of disparate discipline in public schooling, enforcement of the Americans with Disabilities Act, and efforts to combat sexual harassment in housing. Notably, and for the first time ever in the district, the office filed a complaint for sexual harassment in housing against Toledo-area residents for allegedly engaging in abusive and harassing conduct towards vulnerable women. The office also entered into a settlement agreement with the Toledo Public School District, the fifth-largest school district in northern Ohio, to address and resolve disparate disciplinary practices for minority and disabled students.
Herdman also oversaw the continued efforts of the Department to implement the terms of the Consent Decree with the Cleveland Division of Police and the City of Cleveland, which include revised search and seizure policies; use of force reforms and improved documentation and investigation of uses of force; and critical incident response training for specially-designated officers responding to calls for service to assist community members in times of a mental health crisis.
Herdman previously served as an Assistant United States Attorney from 2006 through 2013. As an Assistant U.S. Attorney, he served as Deputy Chief of the National Security, Human Rights, and Organized Crime Unit. Prior to that, he was an Assistant District Attorney in the Manhattan District Attorney’s Office from 2001 to 2004.
Herdman was nominated by President Donald Trump to serve as U.S. Attorney on June 12, 2017, and was confirmed by the U.S. Senate on August 3, 2017. He took the oath of office from U.S. District Court Judge Patricia Gaughan on August 21, 2017.
In 2017, he was appointed to the Attorney General’s Advisory Committee (AGAC), of which he is currently the Vice-Chair. In this role, Herdman serves as one of fifteen United States Attorneys charged with developing and offering recommendations to improve management, operations, and functions of U.S. Attorneys’ offices nationwide, as well as the Department of Justice.
In 2019, Herdman was appointed to Attorney General Barr’s working group focused on federal responses to Domestic Violence. He has also served as Chair of the AGAC’s Terrorism & National Security Subcommittee and as a Co-Chair of the Attorney General’s Prescription Interdiction and Litigation Task Force.
Herdman continues to serve as a Judge Advocate in the United States Air Force Reserve and is a former intelligence officer in the United States Navy Reserve. He earned his B.A. from Ohio University, his M.Phil. from the University of Glasgow, and his J.D. from Harvard Law School.
U.S. Attorney David M. DeVillers statement on investigation into shooting of Casey Goodson, Jr.Read the Press Release
“As the United States pursues a full and fair investigation into the death of Casey Goodson, Jr., I want to make clear that there is one criminal investigation underway through the United States Attorney’s Office for the Southern District of Ohio. It is a joint criminal civil rights investigation being conducted by the FBI, the Columbus Division of Police, and the Department of Justice Office of the Inspector General. We are working in partnership with the Civil Rights Division of the Department of Justice and the Franklin County Prosecutor’s Office. We are obligated to follow the facts wherever they may lead. I have been in contact with current Franklin County Prosecutor, Ron O’Brien, and incoming Franklin County Prosecutor, Gary Tyack. We are in agreement that the facts and the law could lead to federal charges, to state charges, or to no charges at all. This is an ongoing investigation and no determination of whether any charges—federal or state—are warranted has been made.
Our goal is to conduct a thorough and accurate investigation without compromising the integrity and legitimacy of the investigation. This means we must balance the public’s interest in the investigation with a potential defendant’s right to a fair trial. Disclosing information prematurely or releasing potentially challenged evidence could severely jeopardize the investigation and any possible prosecution.
I met with the family of Mr. Goodson last week and I explained this delicate and critical balance. Mr. Goodson’s family made it clear that they are putting their trust in us to discharge our responsibilities fully and fairly. We intend to do everything in our power to honor that trust.”
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Two Texans get substantial sentences for alien deathRead the Press Release
McALLEN, Texas — Two men have been ordered to federal prison following their conviction of transporting aliens that resulted in death, announced U.S. Attorney Ryan K. Patrick.
David Lee Davila, 29, Penitas, and Nathan Lee Tamez, 30, Donna, pleaded guilty Oct. 31, 2019, to one count of conspiracy to transport aliens resulting in the death of a person. Tamez also admitted to being a felon in possession of a firearm.
Today, U.S. District Judge Randy Crane sentenced Davila to 188 months in federal prison, while Tamez received a 151-month term of imprisonment.
In May 2019, Davila was involved in an unrelated incident in which a shooting occurred in connection with transporting aliens. Davila knew the danger the job entailed, still hired Tamez and a woman in June 2019 to transport aliens to another smuggler on his behalf.
When they arrived at the meeting location along with Davila, there was an altercation with the other party which led to gunfire. Everyone fled the scene which led to two vehicles chasing and striking each other. Ultimately, the woman Davila hired lost control of the vehicle and crashed into a residence in Alamo. Both she and Tamez were shot multiple times. The woman later succumbed to her injuries and subsequently died.
Davila and Tamez have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility designated in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Alamo Police Department. Assistant U.S. Attorney Sarina S. DiPiazza prosecuted the case.
Two Individuals Admit Role in Multimillion-Dollar Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – Two individuals today admitted their roles in a multimillion-dollar scheme that defrauded health benefits programs through the submission of medically unnecessary prescriptions for compounded medications, U.S. Attorney Craig Carpenito announced.
David M. Fulkerson, 48, of Indiana, and Nathaniel Stewart III, 38, of South Carolina, pleaded guilty to separate informations charging them with conspiracy to commit health care fraud. Fulkerson also admitted to his role in a conspiracy to violate the Anti-Kickback statute. Both individuals entered their guilty pleas by videoconference before U.S. District Judge Madeline Cox Arleo.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient because, for example, the patient is allergic to a dye or other ingredient or requires the medication in a different form.
From July 2014 to November 2016, Fulkerson and Stewart conspired to defraud health care benefits programs with others, including Kent Courtheyn, a/k/a “Troy Taylor,” who has been separately charged by indictment. Courtheyn recruited Fulkerson and Stewart to market compounded medications, such as scar creams, pain creams, and vitamins, that were medically unnecessary. In order to obtain medically unnecessary prescriptions for compounded drugs, Fulkerson and Stewart, at Courtheyn’s direction, recruited individuals who had prescription drug coverage under certain health benefits programs. In Fulkerson’s case, that included TRICARE, the health care program for the United States military. The conspirators selected medications based on their high insurance reimbursement amount rather than the patients’ medical needs. For instance, Fulkerson coached a patient on how to convince the doctor to write prescriptions for compounded medication that the patient did not need. Courtheyn, Fulkerson, Stewart, and others steered these prescriptions to certain compounding pharmacies, and in exchange, those compounding pharmacies paid Courtheyn, through his marketing company, a percentage of the reimbursement amount that they received from health benefits programs for each prescription that Fulkerson and Stewart referred. Courtheyn, in turn, paid Fulkerson and Stewart based on the compounded prescriptions that they helped generate.
Fulkerson and Stewart each face a maximum penalty of 10 years in prison on the health care fraud conspiracy charge; Fulkerson faces a maximum penalty of five years in prison on the Anti-Kickback statute conspiracy charge. They also face a $250,000 fine, or twice the gain or loss from the offense, whichever is greater, on each count. Stewart’s sentencing is scheduled for May 5, 2021. Fulkerson’s sentencing is scheduled for April 21, 2021.
As part of his plea agreement, Fulkerson must forfeit $759,710 in criminal proceeds and pay restitution of at least $2.3 million. Stewart must forfeit $756,293 in criminal proceeds and pay restitution of at least $4 million.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorneys José R. Almonte and Osmar J. Benvenuto of the Health Care Fraud Unit in Newark.
The charges and allegations in the indictment against Courtheyn are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel:
Fulkerson: Peter Carter Esq., Newark
Stewart: Henry M. Coxe III Esq., and Brian Coughlin Esq., Jacksonville, Florida
Tulsa Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jamie Denise McDonald, age 31, of Tulsa, Oklahoma entered a guilty plea to Drug Conspiracy, in violation of Title 21, United States Code, Section 846, punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment alleged that beginning on November 4, 2016 and continuing until on or about the date of the Indictment, in the Eastern District of Oklahoma and elsewhere, McDonald did willfully and knowingly combine, conspire, confederate, and agree with others known and unknown, including Enrique Pacheco, Wesley Michael Rollings, and Lannie Jo Carter, to violate federal drug laws by acquiring large amounts of methamphetamine and distributing it for money. Specifically, on July 14, 2019, law enforcement officers arrested McDonald and Rollings in Tulsa in possession of one kilogram of methamphetamine that they purchased from Lannie Jo Carter.
The charges arose from a joint investigation led by the Drug Enforcement Administration, along with the Federal Bureau of Investigation, the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Oklahoma Department of Corrections, the Oklahoma Highway Patrol, the Muskogee County Sheriff’s Office, the Muskogee Police Department, and the Tulsa County Sheriff’s Office. Additionally, many prominent agencies which are members of the DEA High Intensity Drug Trafficking Area Task Force (“HIDTA”), contributed to this investigation, including: the Tulsa Police Department, the Broken Arrow Police Department, the Chickasaw Nation Lighthorse Police Department, the Miami Police Department, the Moore Police Department, the El Reno Police Department, the Yukon Police Department, the Duncan Police Department, the Norman Police Department, the Choctaw Police Department, the Edmond Police Department, the Oklahoma County Sheriff’s Office, the Canadian County Sheriff’s Office, the Rogers County District Attorney’s Office, and the Oklahoma County District Attorney’s Office. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace, Assistant United States Attorney Ryan Conway, and Special Assistant United States Attorney Christopher Schroeder represented the United States.
Tulsa Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bobby James Sanders, age 34, of Tulsa, Oklahoma entered a guilty plea to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years’ imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about February 1, 2020, in the Eastern District of Oklahoma, the defendant, having been convicted of a felony offense punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Federal Bureau of Investigation and the Okmulgee County Sheriff’s Office.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Nalani Ching represented the United States.
Three from Northwest Arkansas Plead Guilty to Making False Statements to Obtain Coronavirus Relief FundsRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced that Melvin Stout, age 40, of Fayetteville, AR, pleaded guilty today to making a false statement on a loan application to obtain money through the Small Business Administration’s Paycheck Protection Program (PPP). Earlier this month, Stout’s wife, Tiffany Acuff, age 36, of Fayetteville, and sister, Valarie Watson, age 43, of Fayetteville, also pleaded to charges in connection with obtaining loans through the PPP, which is intended for businesses struggling through the coronavirus pandemic.
The program, which provides low-interest, forgivable loans for businesses who use the funds for essential business expenses, such as payroll, is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed in March 2020.
According to the plea agreements in each case, Stout, Acuff, and Watson submitted PPP loan applications that falsely represented their ownership of small businesses, which they alleged were eligible for PPP funds. Stout, was approved and received $9,400.00, Acuff, was approved and received $20,800.00, while Watson, applied for $20,800.00, but was declined. Along with the applications, the defendants submitted falsified tax documents and business receipts. None of the defendants owned the businesses listed in the applications.
Stout, Acuff, and Watson’s sentencings will be determined by the court at a later date, following the U.S. Probation Office’s completion of a presentence investigation. Based on their guilty pleas, the maximum penalties for each defendant include imprisonment for up to five years and a fine of up to $250,000.
The case was investigated by IRS, the FBI, and the Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorney Hunter Bridges is prosecuting the case for the United States.
Thirteen Individuals Charged in a Fentanyl and Cocaine ConspiracyRead the Press Release
BOSTON – Thirteen people have been charged in federal court in Boston in connection with a Lawrence-based fentanyl and cocaine conspiracy.
The investigation, which began in May 2018 and intercepted communications on numerous cellphones, revealed that the defendants actively distributed fentanyl and cocaine and that their drug trafficking activities extended throughout Massachusetts, southern New Hampshire and Maine.
The following individuals were charged by criminal complaint with conspiracy to distribute and possess with intent to distribute 400 grams of more of fentanyl and cocaine:
1. Anny Cruz, 37, of Lawrence, Mass.;
2. Jorge Luis Diaz, a/k/a Cosita, 33, a Dominican national residing in Ayden, N.C.;
3. Oliver Alexander Perez Soto, a/k/a Demonio, 45, a Dominican national residing in Lawrence, Mass.;
4. Joel Saldana, a/k/a Flaco, 42, a Dominican national residing in Lawrence, Mass.;
5. Oscar David Mejia Rodriguez, a/k/a Manguera, 53, a Dominican national residing in Methuen, Mass.;
6. Jorge Ramon Rodriguez Jimenez, a/k/a Cibao, 47, a Dominican national residing in Lawrence, Mass.;
7. Junior Rafael De La Rosa, 22, a Dominican national residing in Lawrence, Mass.;
8. Rosalba Bernechea a/k/a Rebusera, 19, of Lawrence, Mass.;
9. Elvin Mendoza, 24, of Lawrence, Mass.;
10. James Cann, 55, of Billerica, Mass.;
11. Hector Mejia, a/k/a Tio, 59, of Lawrence, Mass.;
12. Jesus Rojas, 27, of Lawrence, Mass.; and
13. Erick Andres Martinez, 20, of Haverhill, Mass.;
According to the criminal complaint, the investigation revealed that Diaz, Cruz, and Perez Soto led a drug trafficking organization that distributed drugs throughout the Merrimack Valley. Flaco, Mejia Rodriguez, Rodriguez Jimenez, and others were drug sources for this drug trafficking organization. De La Rosa worked at the direction of Rodriguez Jimenez. Bernechea, Mendoza, Cann, Mejia, Rojas, and Martinez worked at the direction of Diaz, Cruz, and Perez Soto distributing fentanyl and cocaine.
Today, agents seized approximately $74,000 cash and approximately four kilograms of suspected fentanyl after executing search warrants across various locations in Billerica, Methuen, Lawrence, and Ayden, N.C.
The charge of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years and up to life of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by Homeland Security Investigations in Boston and the Andover, Billerica, Haverhill, Lawrence, Lowell, Methuen, North Andover, Salem (NH), Tewksbury, and Wilmington Police Departments. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tallahassee Man Sentenced to 24 Months in Prison for Assaulting A United States Postal Service Mail CarrierRead the Press Release
TALLAHASSEE, FLORIDA – Darius Lee Allen, 26, of Tallahassee, Florida, was sentenced yesterday to 24 months’ imprisonment for assaulting a United States Postal Service (USPS) mail carrier with a firearm. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
As part of his official duties, a USPS mail carrier was delivering mail in a residential neighborhood in Tallahassee on April 2, 2020. As he attempted to deliver to a mailbox, Allen demanded that the carrier hand him the mail instead. In accordance with USPS policy, because the mail carrier did not recognize Allen as a resident of that address, he refused Allen’s demand and placed the mail in the mailbox. About 20 minutes later, as the carrier continued delivering mail to other homes in the neighborhood, Allen approached the mail carrier’s vehicle on foot and discharged a firearm in the air. After doing so, Allen immediately retreated. The mail carrier also fled the scene in his vehicle and called 911 to report the incident. Officers from the Tallahassee Police Department responded and located the firearm Allen had discharged as well as the spent casing from the round that was fired. Allen was subsequently arrested.
“The Postal Service has been a cornerstone of our republic for some 245 years, and the American public has relied on it for secure delivery of items both important and routine,” United States Attorney Keefe said. “Individuals commit a crime when they try to disrupt a mail carrier’s solemn duty, and Allen’s assault on this federal officer also endangered others in the area.”
This sentencing resulted from the collaborative work of the United States Postal Inspection Service (USPIS) and the Tallahassee Police Department. The case was prosecuted by Assistant United States Attorney Lazaro P. Fields.
“Protecting the safety of our USPS employees is our most important mission, and Inspectors will continue the great work of bringing those who attack the USPS to justice,” said Antonio J. Gomez, Inspector in Charge of the USPIS, Miami Division.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
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.
Press Release - U.S. v. AllenSt. Augustine Man Sentenced to More Than Fifteen Years in Federal Prison for Offenses Involving Images and Videos of Children Being Sexually AbusedRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Patrick Howard Woodyard (29, St. Augustine) to 15 years and 8 months in federal prison, followed by a life term of supervised release, for distributing child sexual abuse materials. On March 4, 2020, Patrick Woodyard and his twin brother, Nicholas Woodyard, were charged by indictment with distribution, receipt, and possession of images and videos depicting children being sexually abused.
Patrick Woodyard had pleaded guilty on August 28, 2020. Nicholas Woodyard is currently scheduled for trial in February 2021.
According to court documents, Homeland Security Investigations began investigating the upload of an image of child pornography that had been distributed from the Woodyard brothers’ residence. Agents executed a search warrant and seized electronic devices that contained hundreds of files of child pornography, including images of the sexual assault of a child approximately two years old. A forensic examination of the devices also revealed Patrick Woodyard’s efforts to secretly record his family members in the nude and his attempts and desires to engage in incest. Records showed that Patrick Woodyard obtained images of his friends’ children and associates from their social media accounts. He then provided those photos to others for the purposes of creating graphic sexual fantasies of the rape and torture of the children.
"For years, this individual preyed on the innocence of our most vulnerable population to satisfy his sick and demented desires,” said Homeland Security Investigations (HSI) Jacksonville, Assistant Special Agent in Charge K. Jim Phillips. "With today's sentencing we have removed him from the community and sent a resounding message that HSI is committed to working with our law enforcement partners to aggressively investigate and prosecute anyone who seeks to exploit our nation's children."
This case was investigated by Homeland Security Investigations, with assistance from the St. Johns County Sheriff’s Office and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sisseton Foursome Charged with Assault with Intent to Commit Murder and Related CrimesRead the Press Release
United States Attorney Ron Parsons announced that four Sisseton, South Dakota, people have been indicted by a federal grand jury for aggravated assault and robbery.
Brendon Javon Jacob Rodlund, age 32, and Andrew Renville, age 31, were indicted on November 3, 2020. Each appeared before U.S. Magistrate Judge William D. Gerdes on December 14, 2020, and pled not guilty to the superseding indictment.
Tiffany Bernard, age 28, and Randall Delbert Pumpkinseed, age 31, were charged on October 6, 2020. Each appeared before U.S. Magistrate Judge William D. Gerdes on October 15, 2020, and pled not guilty.
The Indictment alleges that between November 16, and November 17, 2015, Rodlund, Bernard, Pumpkinseed, and Renville, while aiding and abetting each other, assaulted, with intent to commit murder; unlawfully cut, cut off and disabled a limb with the intent to maim; did by force, violence and intimidation take and attempt to take things of value from the victim; assaulted with a dangerous weapon, with the intent to do bodily harm; and unlawfully assaulted the victim, and said assault resulted in serious bodily injury.
The maximum penalty upon conviction for each offense is 10 years up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and up to $500 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusation and Rodlund, Bernard, Pumpkinseed, and Renville are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Rodlund is currently serving a federal prison sentence and remains in custody. Renville is currently serving a state prison sentence and remains in custody. Bernard was detained pending trial. Pumpkinseed was released pending trial. A trial date has been set for February 16, 2020.
Sioux Falls Man Sentenced to Prison for Possession of Firearm by Prohibited PersonRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on December 15, 2020, by U.S. District Judge Karen E. Schreier.
Vasiliy Vasilyevic Manuylo, age 26, was sentenced to 34 months in federal prison, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Manuylo was indicted by a federal grand jury on March 3, 2020. He pled guilty on September 17, 2020.
The conviction stemmed from an incident on or about January 26, 2020, when the Sioux Falls Police Department came into contact with Manuylo who knowingly possessed of a Smith & Wesson, model 640 Centennial, .38 Special caliber, double-action revolver, bearing serial number BRP3384 and 5 rounds of Hornady brand ammunition. Manuylo knew he had been convicted of a crime punishable by imprisonment for a term exceeding one year and being an unlawful use of and addicted to a controlled substance, and consequently could not possess firearms.
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 its 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.
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: https://www.justice.gov/projectguardian.
This case was investigated by the Sioux Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Manuylo was immediately turned over to the custody of the U.S. Marshals Service.
Second Escape from Federal Custody Leads to Additional Prison Time for Marion ManRead the Press Release
Marion, Ill. – Ray Allen Flener, 32, of Marion, Illinois, has been sentenced to serve 18 months in federal prison for escaping from custody. Flener pleaded guilty to the charge back in September.
This is Flener’s second escape conviction.In 2013, Flener was charged with making a false statement to the FBI and conveying a false threat.
He pleaded guilty and was sentenced in 2014 to 48 months in prison. In 2018, Flener was transferred from federal prison to the residential reentry center at Centerstone in Marion, Illinois. Shortly thereafter, Flener left Centerstone without returning, forcing law enforcement to track him down and arrest him. This led to his first conviction for escaping from custody, for which he received a sentence of around four-and-a-half months of time served in pretrial detention.In 2020, with just two months remaining on his sentence, Flener left Centerstone again, leading to his second conviction for escaping from federal custody. The 18-month sentence imposed by the federal district court in Benton, Illinois, will be served consecutively to the prison sentence
Flener was already serving.The investigation was conducted by the United States Marsha s Service, with the assistance of the Illinois State Police and the Franklin County Sheriff’s Office.
Rutherford Co. Resident Is Sentenced to 13 Years for Distribution of Child PornographyRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Max O. Cogburn Jr. sentenced Nathan Michael McInnis, 45, of Rutherfordton, N.C., to 156 months in prison yesterday for distribution of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. McInnis was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in North Carolina joins U.S. Attorney Murray in making today’s announcement.
According to filed documents and statements made in court, on September 10, 2018, Homeland Security Investigations became aware that an individual, later identified as McInnis, was using a peer-to-peer network to share with other users files containing images and videos depicting the sexual abuse of children. Court records show that an HSI Special Agent, who accessed the network and was able to connect with McInnis’ device, downloaded multiple files containing child pornography, much of which had been produced in and distributed from foreign countries.
According to court records, on October 18, 2018, law enforcement executed a federal search warrant at McInnis’ residence in Rutherfordton. During the execution of the search warrant, law enforcement seized six devices. A forensic examination of the devices revealed that they contained multiple images and videos depicting children as young as infants being sexually abused. In total, law enforcement located approximately 1,457 images and 93 videos of child pornography on McInnis’ devices.
On September 23, 2020, McInnis pleaded guilty to distribution and attempted distribution of child pornography. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney Murray commended HSI for handling the investigation, and thanked the Rutherford County Sheriff’s Office for their invaluable assistance.
Special Assistant U.S. Attorney (SAUSA) Alexis Solheim, with the U.S. Attorney’s Office in Asheville, prosecuted the case. Ms. Solheim is a state prosecutor with the office of the 43rd Prosecutorial District, and was assigned by District Attorney Ashley Welch to serve as a SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Solheim is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Rochester Man Pleads Guilty to Rioting for His Role in Violence Associated with Civil UnrestRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today Javon Hardy, 24, of Buffalo, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to rioting. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
“Javon Hardy is the first of 16 defendants charged in connection with violence which occurred during protests held across our District earlier this year to be convicted,” stated U.S. Attorney Kennedy. “By his plea, the defendant has admitted that his behavior was not constitutionally protected expression but criminal conduct. Lawlessness, violence, and property damage are inherently unjust and antithetical to the objectives of those well-intentioned individuals who come together seeking positive change in our community. The defendant, and those like him, who engage in these sorts of criminal acts contribute only to our crime rate and add nothing in terms of meaningful growth or progress in our community.”
Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, stated that on May 30, 2020, in the City of Rochester, the defendant, along with numerous other individuals, participated in a public protest near the Public Safety Building located at 185 Exchange Street. At various times during the protest, the gathering turned violent, resulting in significant property damage and looting.
During the course of his rioting, Hardy approached a mobile office trailer located at the corner of Court Street and Exchange Boulevard. The trailer was rented by the Penn Lyon Homes Company headquartered in the state of Wisconsin, from ModSpace, a company located in Syracuse, NY. After walking up the stairs to the trailer, the defendant threw a flammable liquid inside the trailer and started a fire. Hardy exclaimed “Let that (expletive) burn,” and “If it’s not on fire, I didn’t do my job.” The burning of the trailer and defendant’s statements were captured on Facebook Live, which streamed the burning of the trailer on the internet. Hardy also posted his own statement on Facebook Live, admitting to being at the protests in downtown Rochester. He was wearing the same clothing as he wore when he started the fire at the mobile office trailer. The mobile office trailer was completely destroyed by fire.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; the Gates Police Department, under the direction of Chief James VanBrederode; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the New York State Police, under the direction of Major Eric Laughton; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Greater Rochester Area Narcotics Enforcement Team; and the Rochester Fire Department, under the direction of Fire Chief Willie Jackson.
Sentencing is scheduled for March 15, 2021, at 9:15 a.m. before Judge Siragusa.
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Rochester Man Pleads Guilty for His Role in Pawn Shop ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Wade Shadders, 23, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to conspiracy to transport stolen goods in interstate commerce. The charge carries a maximum penalty of five years in prison, a fine of $250,000.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that between October 2018 and November 2019, the defendant was an employee at Royal Crown Pawn & Jewelry on Dewey Avenue in Rochester, which is owned by co-defendant Devin Tribunella. As part of the conspiracy, Tribunella and Shadders engaged persons they knew were shoplifting (commonly referred to as “boosters”). They routinely advised the boosters what goods to steal from retail stores located in the Rochester area, including Home Depot, Lowes, Target, Walmart, and Wegmans. Once the items were stolen, the boosters would sell the stolen, new in-box items to Tribunella and Shadders at the Royal Crown pawn shop, for a fraction of retail value. Tribunella and Shadders then listed the stolen goods for sale on eBay using accounts registered to or controlled by Tribunella. The goods were advertised as “New” or “New-In-Box” and priced below retail value, but well in excess of the money Tribunella and Shadders had paid to the boosters for the stolen goods. Throughout Shadder’s involvement in the conspiracy, Tribunella and Shadders purchased millions of dollars’ worth of stolen goods from boosters, knowing such goods had in fact been stolen. Between April and November 2019, the two defendants sold and shipped approximately $1,561,000 worth of those stolen goods to buyers located outside of the State of New York.
Shadders and Tribunella were arrested in November 2019 for their role in the conspiracy. Charges remain pending against defendant Tribunella. 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.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office; the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Greece Police Department, under the direction of Chief Patrick Phelan; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Sentencing is scheduled for March 22, 2021, before Judge Siragusa.
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Rochester Man Indicted by A Federal Grand Jury for Robbing the Chase Bank on East Ridge RoadRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury returned an indictment charging Eric Fountain, 32, of Rochester, NY, with bank robbery, entering a bank with intent to commit a larceny, and bank larceny. The charges carry a maximum penalty of 30 years in prison and a $250,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that according to the indictment and a previously filed complaint, on March 3, 2016, at approximately 2:30 p.m., the entered the Chase Bank on East Ridge Road in Rochester, wearing a black or dark-colored hooded sweatshirt with the hood up, a black baseball hat, blue jeans, tan boots, dark-colored gloves, and a black mask covering his nose and mouth. He approached a teller station and stated, “I want it all in the bag, no GPS, no (inaudible).” The defendant then placed a white plastic bag on the counter. The teller proceeded to place cash from the teller drawer into the bag, at which point defendant took the bag and fled the bank on foot.
An off-duty Rochester Police Department Investigator, who happened to be conducting personal business at the Chase Bank, told investigators that he was sitting in a cubicle in the bank when he heard a muffled voice demanding money from a teller. The RPD Investigator did not intercede because he didn’t know if Fountain was armed. At that time, he told a bank employee to call 911 as he believed the bank was being robbed. After the defendant left the bank, the RPD Investigator chased Fountain through the parking lot of the bank. The chase continued to a fence which the defendant climbed over. The RPD Investigator saw the driver’s side door of a black Ford Mustang close, and the vehicle quickly drove off spinning its tires and driving recklessly. At that time, the RPD Investigator observed the New York license plate of the vehicle. A records check determined that the vehicle was registered to Fountain’s brother. A short time later, investigators located the vehicle in a pharmacy parking lot but not the defendant. Images of Fountain were released to local media outlets in an effort to obtain information. Later that evening, a tip was received identifying the defendant as the individual who robbed the Chase Bank.
On March 7, 2016, a search warrant was executed on the Ford Mustang. Inside, investigators found a black hooded sweatshirt, a black jacket with a zipper on the left side of the chest, a black baseball hat, and a white dust mask with black electrical tape covering the outside, which were consistent with the clothing and mask worn by Fountain during the bank robbery on March 3, 2016. Several rounds of ammunition, both in the trunk of the car and in the passenger compartment, were also found in the vehicle. Subsequent DNA testing on the items recovered from the vehicle matched the defendant’s DNA.
Fountain is currently on federal probation for a drug and gun conviction.
The indictment is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Rochester Man Going to Prison for 16 Years for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Sean R. Sullivan, 50, of Rochester, NY, who was convicted of production of child pornography, was sentenced to serve 192 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that between 2005 and 2009, the defendant produced several images of Minor Victim 1 (MV1) sleeping in a bed. MV1 was approximately five years old in 2005. The images show Sullivan performing a sexual act on MV1 while she slept. In addition, between 2009 and 2014, Sullivan hid surveillance cameras in MV1’s bedroom. Using those cameras, defendant produced several images of MV1 in various stages of undress which constitute child pornography. MV1 also produced images of MV1 engaging in a sexual act with Minor Victim 2 (MV2), another individual under the age of 18.
The sentencing is the result of an investigation led by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Rochester Man Going to Prison for 14 Years for Sex Trafficking Minors for MoneyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Quondall Davis, 26, of Rochester, NY, who was convicted of sex trafficking of a minor, was sentenced to serve 168 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that between April 2017 and July 2018, the defendant, a/k/a Hotdog, recruited Minor Victim 1 and Minor Victim 2 to engage in commercial sex acts. Davis posted ads on “Cityxguide.com,” to entice customers to engage in commercial sex acts with the minor victims. Cityxguide.com is a website providing classified advertising across the United States and internationally. Minor Victim 1 and
Minor Victim 2 each engaged in commercial sex acts and gave a portion of the profits to the defendant. Davis knew that both victims were under the age of 18.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
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