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Thursday 29 October 2020
T&A Crips member sentenced to 30 years in prisonRead the Press Release
COLUMBUS, Ohio – A Columbus man was sentenced in U.S. District Court today to 30 years in prison for participating in a local gang’s racketeering conspiracy.
Michael Watson, 27, is one of 19 defendants who were charged in October 2018 as members and associates of the Trevitt and Atcheson Crips gang (T&A) in a violent conspiracy involving murders, attempted murders, drug trafficking, firearms trafficking, witness tampering, robbery, assault and other crimes.
The gang derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly reside. T&A controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.
Specifically, the co-conspirators in this case are charged with five murders:
the murder of Franky Tention on July 1, 2012, in the area of 431 Ellison Street;
the murder of William Moore on March 15, 2013;
the murder of Marvin Ector on December 23, 2013, on East 5th Avenue;
the murder of Quincy Story on January 24, 2015; and
the murder of Deaonte Fisher on March 4, 2016.
Watson pleaded guilty in March 2020 to shooting Marvin Ector, a member of the rival Milo Bloods gang. Ector’s murder was a retribution killing; he was targeted for assassination for previously disrespecting a T&A member who had been killed. Watson shot Ector in December 2013 while Ector was in his car at a Sunoco gas station on the near-east side of Columbus.
“These revenge murders – killing one another over ‘disrespect’ – have got to stop,” U.S. Attorney David M. DeVillers said. “The only results are being killed yourself or spending much of, if not all of, the rest of your life in federal prison.”
David M. DeVillers, United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Columbus Police Chief Tom Quinlan; United States Marshal Pete Tobin and Franklin County Prosecutor Ron O’Brien announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton are representing the United States in this case.
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Sheep Springs man pleads guilty to second degree murder in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Garrett Neal, 27, of Sheep Springs, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty today to an indictment charging him with second degree murder in Indian Country.
According to his plea agreement, on July 12, 2015, Neal and an accomplice engaged in a fight with a man in Sheep Springs on the Navajo Nation. During the fight, Neal punched and kicked the man while he was on the ground. Neal also hit the victim with rocks and brass knuckles to his head and throat, causing fatal injuries. Neal admitted that he was aware the victim was trying to breathe, had attempted to run away and did not fight back. The victim died at the scene as a result of the beating.
Neal remains in custody awaiting sentencing. By the terms of the plea agreement, he faces five to 15 years in federal prison, followed by a term of supervised release to be determined by the court.
The FBI and the Navajo Division of Public Safety investigated this case. Assistant United States Attorney Novaline D. Wilson is prosecuting the case.
Second Arrest in Newport in Three Days on Child Pornography ChargesRead the Press Release
PROVIDENCE – For the second time in three days, agents from Homeland Security Investigations, members of the Rhode Island State Police Internet Crimes Against Children Task Force (ICAC), and Newport Police executed a court-authorized search of a Newport residence and arrested a Newport resident on federal child pornography charges.
Agents and officers today arrested William H. Normandin, 43, on charges of distributing and possessing child pornography. On Tuesday, members of the same the law enforcement agencies arrested Craig A Mulvey, 39, on the same charges, in an unrelated case.
According to court documents, in January 2020, HSI agents in Providence received information from HSI agents in Ottawa that they had been notified that on August 11, 2019, an individual, with a user name later determined to allegedly belong to Normandin, had uploaded a video of child pornography into a chat room on a social media platform used by some to view and distribute child pornography. It was later determined by investigators in Rhode Island that the child pornography had allegedly been uploaded from an IP address at Normandin’s residence. Subsequently, the ICAC Task Force received additional information that child pornography was allegedly shared on the same social media platform on multiple occasions in February 2020 by a user determined to allegedly be Normandin while utilizing a different account.
Agents and officers executed a court-authorized search at Normandin’s residence today. A preliminary review of Normandin’s smartphone conducted by a Computer Forensic Analyst who is a member of the ICAC Task Force revealed screen shots/video stills of videos that are alleged to be child pornography.
Normandin appeared this afternoon before U.S. District Court Magistrate Judge Lincoln D. Almond on a criminal complaint charging him with distribution of child pornography and possessing and accessing child pornography, announced United States Attorney Aaron L. Weisman, Homeland Security Investigations Acting Special Agent in Charge David Magdycz, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Newport Police Chief Gary T. Silva.
Normandin was released on unsecured bond and electronic monitoring.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant U.S. Attorney John P. McAdams.
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San Gabriel Valley Man Admits Role in Conspiracy to Kidnap Chinese National Whose Remains Were Buried in Mojave DesertRead the Press Release
LOS ANGELES – A Pasadena man pleaded guilty today to a federal charge of conspiring to kidnap a Chinese national who was violently abducted from a San Gabriel parking lot, and whose parents were extorted for $2 million in ransom before the victim died from his injuries.
Anthony Valladares, 28, pleaded guilty to a single-count information charging him with conspiracy to kidnap. He has been in federal custody since July 14, when he was arrested on a criminal complaint in this case.
According to his plea agreement, Valladares admitted to conspiring with others, including Chinese nationals Guangyao Yang, 27, and Peicheng Shen, 34, to kidnap Ruochen “Tony” Liao, of Santa Ana. Valladares was the “muscle” hired to intimidate, beat, and subdue Liao during the kidnapping. Valladares agreed to accept cash for the job, court papers state.
During the summer of 2018, Shen, using an alias, met the victim several times under the pretense that Shen would help the victim collect a debt from another individual, the plea agreement states. During their third meeting, at a San Gabriel shopping center on July 16, 2018, Shen lured the victim to a minivan, where Valladares was hiding, and whose driver was Alexis Ivan Romero Velez, 24, of Azusa, whom Valladares recruited for the conspiracy.
Liao entered the minivan and spoke in Chinese with Shen, who used a specific word to signal Valladares to begin attacking the victim. Once Shen uttered the word, Valladares and Shen violently assaulted Liao, used a taser to subdue him, and ultimately bound and restrained him with a black hood and ties. Valladares admitted to helping Yang acquire the taser used in the kidnapping, and also admitted to acquiring a revolver and bullets for the kidnapping. Romero then drove the minivan to a location in Rosemead, where Liao was moved into a different car, the plea agreement states.
Shen and Yang then took the victim to a house in Corona, where they confined him by binding his legs together, taping his eyes shut, restraining his arms behind him, and confining him in a closet, court papers state.
The day after the kidnapping, the victim’s father received a demand for a $2 million ransom in exchange for the victim’s life, with the money to be deposited into three Chinese bank accounts within three hours, court documents allege. The victim’s father also received photographs of the victim, who was physically restrained in a closet, according to court documents.
Valladares was not physically present for Liao’s death, which occurred when Shen and Yang held him captive, the plea agreement states.
Shen and Yang allegedly drove to the area of Mojave, California, to bury or otherwise dispose of the victim’s body and other physical evidence involved in the crime. Further, Shen allegedly had the closet of the Corona house re-carpeted. Yang also performed internet searches to determine, in effect, how fast a corpse decomposes in soil, court papers state. Liao’s remains were discovered in Mojave late last year.
United States District Judge Fernando M. Olguin has scheduled a February 18, 2021 sentencing hearing, at which time Valladares will face a statutory maximum sentence of life in federal prison. The parties have agreed that a prison sentence of at least 12 years but no more than 25 years represents a reasonable and appropriate sentence in this case. Judge Olguin will make the final determination as to the sentence.
Yang and Shen, whose last known U.S. residences were in West Covina, are currently in custody in China on charges filed there related to the kidnapping. Last month, Romero pleaded guilty to one count of conspiracy to kidnap. His sentencing hearing is scheduled for February 4, 2021.
The FBI conducted this investigation, with significant assistance provided by members of the FBI’s Safe Street Task Force, which includes the Pasadena Police Department.
This case is being prosecuted by Assistant United States Attorneys Julia Choe of the Cyber and Intellectual Property Crimes Section and Frances Lewis of the Public Corruption and Civil Rights Section.
Statement of US Attorney’s Office on Domestic Violence Awareness MonthRead the Press Release
Physical violence, sexual violence, stalking, and other forms of emotional abuse by a current or former intimate partner or spouse is a serious problem that affects millions of Americans.
It is estimated that on average nearly 20 people are abused by an intimate partner in the United States every minute. This translates into more than 10 million instances of domestic violence each year. According to the Centers for Disease Control, domestic violence is connected with more than half of female homicide victims.
Unfortunately, the pandemic has made matters even worse. Americans are being asked to stay at home and avoid large gatherings, and in some places, in-person school instruction has been suspended in favor of remote learning from home.
While these measures are well meaning, and may help slow the spread of COVID-19 in the short term, they also place many vulnerable adults and children at risk. These victims are left socially isolated and trapped in the home with their abusers, often without access to resources or networks of family, friends, and school personnel they can turn to for help and support.
Meanwhile, abusers whose violence is often triggered by or associated with substance abuse may be experiencing increased financial pressures and stress related to the pandemic-induced economic slowdown or job loss. These emotions often lead to further abuse of alcohol or drugs that may aggravate cycles of substance-induced violence.
In these trying circumstances, it is essential that victims understand where and how to get help. Calls to law enforcement are always an option to address immediate threats, but there are other community resources available to help meet practical needs of those who suffer, including housing and financial assistance.
Domestic violence advocacy programs are located in all 23 counties in Wyoming. These programs are committed to serving victims by providing valuable resources such as crisis intervention and support services to adult victims of domestic violence and their children free of charge and at any time day or night.
Services may include emergency shelter, 24-hour crisis and information hotline, safety planning, counseling, case management, child assessments, information and referrals, education for community awareness, and training for law enforcement and other professionals. Many programs also provide legal and court advocacy, transportation, relocation assistance, economic empowerment classes, transitional housing, daycare, outreach services, and rape crisis intervention.
All of us in law enforcement are committed to maintaining public safety, preventing future violence, and upholding the rule of law, but our efforts may come too late for some victims. We understand and support the important role community social services and other resources play in addressing and helping prevent domestic violence.
As we approach the end of October, designated as National Domestic Violence Awareness Month, please take a moment to familiarize yourself with resources in your community that are available to you or others you may know who need practical assistance to escape abusive situations. You can find your local domestic violence/sexual assault advocacy program by calling the Wyoming Coalition Against Domestic Violence and Sexual Assault toll-free at 1-844-264-8080 or visiting their website at www.wyomingdvsa.org. Help is also available by calling the National Domestic Violence Hotline at 1-800-799-7233.
We can make a difference together to help stop the abuse.
Rochester, New York Man Sentenced to over Ten Years in Prison on Federal Drug and Gun ChargesRead the Press Release
BANGOR, Maine: A Rochester, New York man was sentenced in federal court in Bangor for conspiring to distribute heroin and cocaine base (commonly known as “crack”), distributing heroin and crack, and conspiring to violate federal firearms laws, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Deondray Warren, a/k/a “Mane,” a/k/a “Main,” a/k/a “Maine,” a/k/a “Manny,” 35, to 10 years and 11 months in prison and three years of supervised release for the drug trafficking offenses. Warren also received a concurrent sentence of five years in prison and three years of supervised release on the firearm conspiracy charge.
According to court records, between November 2016 and September 2017, Warren conspired with others from Rochester and Maine to distribute heroin and crack. Warren worked with others to sell drugs in central Maine that had been transported from Rochester. In addition, some of the people to whom Warren and other conspirators sold drugs also conspired with him to illegally obtain 12 firearms from Augusta-area firearms dealers. Warren and others recruited straw purchasers, gave them instructions on which firearms to purchase, and then paid them in cash or drugs to make the purchases using money that he provided. The firearms were then transported to Rochester. Warren used one of the firearms during a domestic violence incident involving his wife in Rochester when he fired several rounds at her.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated the case. The case was prosecuted as part of the Department of Justice’s program to combat the opioid epidemic.
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Roanoke Woman Pleads Guilty to Failing to Disclose Ownership of Show Ponies as Part of Bankruptcy ProceedingsRead the Press Release
ROANOKE, Va. – A Roanoke woman, who failed to disclose her family’s ownership stakes in a series of show ponies as part a bankruptcy proceeding, pleaded guilty earlier this week in U.S. District Court. Acting United States Attorney Daniel P. Bubar made the announcement today.
Laura Wright, 52, pleaded guilty Tuesday to concealing property in relation to a bankruptcy proceeding. At sentencing, Wright faces a possible sentence of up to five years in prison and/or a fine of up to $250,000.
According to court documents, on September 2, 2014, Laura Wright, and her husband Stacey Wright, filed a voluntary bankruptcy petition in the United States Bankruptcy Court for the Western District of Virginia in the Roanoke Division. At the time of the filing, Laura Wright was an attorney with prior bankruptcy experience and a member of the Virginia State Bar.
Prior to filing bankruptcy, and continuing throughout the bankruptcy proceedings, the Wrights incurred substantial expenses associated with the sport of pony jumping, an activity their then-minor child was participating in, and they bought, sold, and maintained ownership interests in several show ponies.
For example, approximately six weeks before filing bankruptcy, and after retaining bankruptcy counsel and completing a credit counseling course in anticipation of their bankruptcy filing, Laura Wright sold two show ponies for approximately $15,000. In August 2014, Laura Wright and others traveled to Maryland where Laura Wright purchased a show pony for $18,000. Laura Wright later bought and sold additional show ponies while the bankruptcy proceeding was pending. Although required to do so, the Wrights failed to disclose to the bankruptcy court any ownership interest in or costs associated with show ponies.
In the course of the bankruptcy proceeding, Laura Wright falsely testified under oath concerning her ownership interest in various show ponies, as well as the source of funds used to purchase the $18,000 show pony in August 2014, just prior to the Wrights’ bankruptcy filing. She further provided a notarized affidavit to the bankruptcy trustee, knowing the affidavit to be materially false.
The matter was referred to the United States Attorney by the United States Trustee. The investigation of the case was conducted by the Federal Bureau of Investigation with substantial assistance from the Roanoke Office of the United States Trustee Program. Assistant United States Attorney Kristin B. Johnson and Anthony P. Giorno are prosecuting the case for the United States.
Remarks of U.S. Attorney McSwain Regarding Violent Civil Unrest in Philadelphia and the Announcement of Criminal ChargesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain convened a press conference today to announce federal charges against four individuals for allegedly committing arson of police vehicles during riots that occurred in Philadelphia on May 30, 2020. U.S. Attorney McSwain also addressed concerns about current civil unrest in the City.
Remarks as Prepared for DeliveryGood afternoon and thank you for joining us. I am here today to announce criminal charges against several defendants for torching police cars during the violent civil unrest that occurred in Philadelphia in late May and early June. My law enforcement colleagues and I are also here to address the current situation in the City. Before I get into more details, I want to acknowledge and thank all the law enforcement partners standing with me here today:
- Michael J. Driscoll, Special Agent in Charge from the Philadelphia Field Office of Federal Bureau of Investigation;
- Matthew Varisco, Special Agent in Charge of Philadelphia Field Division of the Division of Alcohol, Tobacco, Firearms, and Explosives;
- Brian Michael, Special Agent in Charge from the United States Department of Homeland Security, Homeland Security Investigations;
- Major Richard Ambrosio, of the Pennsylvania State Police; and
- Jared Maples, Director of the New Jersey Office of Homeland Security and Preparedness
Your presence here today is a testament to our collective resolve to protect and promote two fundamental principles of our American democracy – freedom of expression and the rule of law.
This nation is grounded in freedom of speech. At its core is every American’s right to join with fellow citizens in protest or peaceful assembly. Just as importantly, this nation is also grounded in the rule of law. It is imperative that we preserve both – and we will. The City’s residents deserve to have their voices heard, and they deserve safe and secure neighborhoods, not mayhem.
Mayhem – in the form of rioting, looting, robbery, arson, destruction of property, attacks on police officers and other forms of violence – does not bring justice. It accomplishes nothing. If you are a protestor trying to communicate a message, engaging in mayhem obscures that message. It also turns public opinion squarely against you. And most significantly, it can land you in federal prison for a long time. Criminal behavior has been and will be met with swift and decisive action by my Office. That form of justice will be served.
Which brings me to today’s charges, stemming from the rioting and destruction that ensued in Philadelphia during the violent civil unrest following George Floyd’s death. What began as peaceful protests in Philadelphia in the early afternoon of May 30 escalated into something very different. Much of the rioting was captured on video that aired across the country. Among other things, rioters smashed store fronts, looted stores, hurled objects at the police, and torched police cars.
Among those torched police cars was a Philadelphia Police Department vehicle (Car C-109) and two Pennsylvania State Police (PSP) SUVs (numbers K1-7 and K1-17). The defendants’ alleged involvement in the burning of these vehicles is the subject of today’s charges.
In the first case, my Office has filed a three-count Indictment against Ayoub Tabri, alleging several crimes, all stemming from his alleged destruction of one of the PSP SUVs (number K1-17) that was parked near the intersection of Broad and Vine Streets near the entrance to Interstate 676 on May 30. The Indictment charges Tabri with arson, attempted arson, aiding and abetting and obstruction of law enforcement during civil disorder. If convicted, he faces a mandatory minimum term of seven years in prison and a maximum term of up to 65 years in prison, followed by three years of supervised release, a $750,000 fine, and a $300 special assessment.
On May 30, PSP troopers responded to the intersection of Broad and Vine Streets, near the overpass of I-676, based on a report of a large gathering of protesters. PSP troopers responded to this area in two SUVs to prevent protestors from gaining access to I-676 and from endangering themselves or others by demonstrating on the highway and impeding motorists’ travel.
At 3:42 p.m., a group of individuals began attacking the two PSP SUVs, which were locked and contained PSP-issued rifles and other police equipment. Individuals began striking the SUVs with various objects, including skateboards, a bike lock, and other projectiles, in addition to kicking and striking the SUVs with closed fists. Eventually, the individuals shattered the windows of both SUVs and stole PSP equipment stored inside, including road flares, fire extinguishers, and “riot bags” containing additional PSP-issued equipment. After these items were stolen, an individual sprayed the rear area of K1-17, inside and out, with an unknown liquid.
PSP troopers assigned to the area reported that individuals then threw lit road flares into K1-17, igniting the fire which engulfed that SUV. Videos taken at the scene allegedly captured Tabri throwing a lit road flare into K1-17. Fire engulfed K1-17 and ultimately destroyed it.
The harm allegedly caused by Tabri extended beyond destruction of government property. One PSP trooper, who was standing near K1-17, was hit by a lit road flare and part of his uniform caught fire. Additionally, this trooper’s left hand suffered burn injuries when he reached into K1-17 to retrieve a rifle in order to prevent it from being stolen. He was treated for his injuries on the scene by EMS.
In the second case announced today, my Office has charged three individuals, Carlos Matchett, Khalif Miller and Anthony Smith, in a three-count Indictment with arson, attempted arson, aiding and abetting, and obstruction of law enforcement during a civil disorder. These charges are based upon their alleged destruction of a Philadelphia Police Department Civil Affairs vehicle (Number C-109), which was parked near Philadelphia City Hall on May 30, 2020. Specifically, Counts One and Two allege that these defendants “maliciously damaged and destroyed, attempted to damage and destroy, and aided and abetted the damaging and destruction [of the PPD car] by means of fire,” and Count Three alleges that the defendants “knowingly committed acts, and aided and abetted such acts, to obstruct, impede, and interfere with law enforcement officers lawfully engaged in the lawful performance of their official duties incident to, and during the commission of, a civil disorder.” The Indictment further alleges that these defendants’ actions created a substantial risk of injury to one or more persons, including public safety officers.
All three defendants are in federal custody. My Office will be moving for detention of each of these defendants so that they remain in federal custody until their trial.
If convicted, the defendants each face a mandatory minimum of seven years in prison and a maximum possible sentence of 65 years in prison, followed by three years of supervised release, a fine of up to $750,000, and a special assessment of $300.
A final word about Mr. Smith: as has already been reported, he is a prominent activist and one of the lead organizers of the Philadelphia Coalition for Racial Economic and Legal Justice (or Philly for REAL Justice). To state the obvious, that it not why he is now in federal prison. Mr. Smith was not “targeted” in any way by my Office. I knew nothing about Mr. Smith or his affiliations until the investigation was nearly complete and the proposed charges had been written up by dedicated and capable career federal prosecutors. We do not investigate people at the U.S. Attorney’s Office; we investigate alleged criminal behavior. A defendant’s race, ethnicity, gender, political affiliation or group membership makes no difference to me or anybody else in my Office. In our investigations and prosecutions, all we care about is whether you committed a federal crime. And if you did, you will face the consequences.
Today’s Indictments are the culmination of an incredible amount of work by the members of both case teams who began working these cases literally as these events unfolded in real time. On the Tabri Indictment, I want to acknowledge and thank the FBI; the ATF; and the Pennsylvania State Police. On the Matchett, Miller, and Smith Indictment, I want to acknowledge and thank the following law enforcement partners: the FBI; Homeland Security Investigations; the ATF; the Philadelphia Police Department; and the Philadelphia Fire Marshall’s Office – all of whom had an important hand in the investigation. I also want to acknowledge the assistance of the New Jersey Office of Homeland Security and Preparedness. And from my Office, I want to commend and thank Assistant United States Attorney Tom Perricone, Chief of the National Security Unit, who is supervising both prosecutions.
I also want to thank the leadership of the law enforcement agencies standing with me for their continued partnership with my Office. The most effective strategy for preventing and reducing crime is aggressive prosecution and strong law enforcement partnerships at every level. Our presence today demonstrates that we are united in our purpose – to keep Philadelphia safe – and united in our approach to accomplishing this goal.
Today’s federal charges are the latest in a series of cases my Office has brought stemming from the rioting and destruction that occurred during the civil unrest at the beginning of last summer. On May 30, I pledged to hold people accountable for criminal behavior during civil unrest, and we have. That is one of the main reasons why the City did not experience violent civil unrest after early June – because would-be rioters knew that the U.S. Attorney’s Office was on duty, together with our federal partners and the Philadelphia Police Department.
Unfortunately, during the past week, the City has gone backwards, with rioting and looting that began in West Philadelphia and spread to other parts of the City, in reaction to the death of Walter Wallace. Add to this the impending election on Tuesday and you have a combustible cocktail. I want to be clear that we at the U.S. Attorney’s Office support peaceful protest – indeed, it is part of our job to protect First Amendment freedoms. We take that responsibility very seriously. But violence is not speech. There is no right to riot, loot, rob, commit arson or destroy. If you engage in violent civil unrest and commit a federal crime in this District, we will come after you as hard as we can. You will go to jail. It is not worth it.
At this moment in our City’s history, we can go down one of two paths. We can go down a path of healing and respect for democracy, where we work together to improve relations between law enforcement and the community, and where we have a free, fair and peaceful election next week. Or we can go down a path of destruction – a path that further divides us. I know what path I want to go down.
At this time, I would like to introduce FBI Special Agent in Charge, Mike Driscoll. He will share his remarks, and then we will all be available for your questions. Thank you.
Political strategist & lobbyist each plead guilty in federal public corruption racketeering conspiracy involving more than $60 millionRead the Press Release
CINCINNATI – A longtime campaign and political strategist for Ohio House Representative Larry Householder and a lobbyist hired by an energy company to funnel money to Householder’s enterprise each pleaded guilty in federal court today.
Jeffrey Longstreth, 44, and Juan Cespedes, 41, of Columbus, each pleaded guilty to participating in a racketeering conspiracy involving more than $60 million paid to a 501(c)(4) entity to pass and uphold a billion-dollar nuclear plant bailout.
They are two of five individuals charged by criminal complaint and indicted by a federal grand jury in July 2020.
Charging documents allege Larry Householder, 61, of Glenford, Ohio, Matthew Borges, 48, of Bexley, Ohio, Neil Clark, 67, of Columbus, Longstreth and Cespesdes conspired to violate the racketeering statute through honest services wire fraud, receipt of millions of dollars in bribes and money laundering. The 501(c)(4) entity Generation Now was also charged.
According to court documents, from March 2017 to March 2020, the enterprise received millions of dollars in exchange for Householder’s and the enterprise’s help in passing House Bill 6, a billion-dollar bailout that saved two failing, Ohio nuclear power plants from closing.
The defendants then also allegedly worked to corruptly ensure that HB 6 went into effect by defeating a ballot initiative to overturn the legislation. The Enterprise received nearly $61 million into Generation Now from an energy company and its affiliates during the relevant period.
In his plea, Longstreth admits to organizing Generation Now for Householder, knowing the entity would be used to receive bribe money to further Householder’s bid for Speaker of the House. Longstreth managed Generation Now bank accounts and engaged in financial transactions designed to conceal that the energy company was a source of funding to Generation Now.
Cespesdes also pleaded guilty to his role in the racketeering enterprise and admitted that he orchestrated payments to Generation Now. Cespedes knew the payments were meant to help Householder achieve political goals, and in return, help pass and preserve the nuclear bailout legislation.
The racketeering conspiracy as charged in this case is punishable by up to 20 years in prison.
“If you have information related to the public corruption alleged in this case, please contact the FBI at 513-421-4310,” said U.S. Attorney David M. DeVillers. “This investigation remains ongoing, and as such, there will be no additional comment beyond the publicly-filed documents we outlined in this news release.”
DeVillers and Chris Hoffman, Special Agent in Charge of the Cincinnati Division of the FBI, announced the pleas entered into today before U.S. District Judge Timothy S. Black. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew C. Singer, as well as Assistant Deputy Criminal Chief Timothy Mangan and Assistant United States Attorney Megan Gaffney Painter, are representing the United States in this case.
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Philadelphia Man Convicted on Drug Trafficking ChargesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Raymond Howard, age 45, of Philadelphia, Pennsylvania, was convicted on October 26, 2020, after a five-day jury trial before U.S. District Court Judge Matthew W. Brann, on drug trafficking charges.
According to United States Attorney David J. Freed, the jury deliberated approximately one hour and found that from October 2016 to July 2017, in Lycoming County, Howard engaged in a conspiracy to distribute 100 grams or more of heroin and a mixture of heroin and carfentanil.
During a three-day period in June 2017, there was a rash of drug overdoses in Williamsport. At the time, UPMC Susquehanna in Williamsport and Wellsboro reported treating 51 such cases within a 48-hour period.
The trial team offered evidence that Howard and his coconspirators Wayne Davidson, Markeese Askew, and Nathan Crowder used cell phones to arrange for the distribution of heroin and, specifically, a mixture of heroin and carfentanil that resulted in number of overdoses from June 28 through July 7, 2020. According to the Drug Enforcement Administration, carfentanil is 100 times more potent than fentanyl. Howard’s three coconspirators Davidson, Askew, and Crowder all pleaded guilty earlier in October and face minimum sentences of 11 years’ imprisonment. In total, Howard and the three coconspirators were charged with delivering a mixture of heroin and carfentanil that resulted in serious bodily injury to eight individuals.
The case was investigated by the Lycoming County District Attorney’s Office Narcotics Enforcement Unit, Montoursville Police Department, Old Lycoming Township Police Department, South Williamsport Police Department, Williamsport Bureau of Police, Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin and Geoffrey W. MacArthur prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Howard faces 30 years to life imprisonment, a term of supervised release and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Passaic County Man Admits Assault with a Dangerous Weapon at Delaware Water GapRead the Press Release
TRENTON, N.J. – A Passaic County, New Jersey, man today admitted to assaulting with a dangerous weapon two people who were swimming in the Delaware River, U.S. Attorney Craig Carpenito announced.
Jeffrey A. Mulcahy, 58, of Wayne pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of assault with a dangerous weapon with intent to do bodily harm.
According to documents filed in this case and statements made in court:
On Sept. 2, 2019, two individuals (Victim 1 and Victim 2) were swimming in the Delaware River in the Kittatinny Point area of the Delaware Water Gap in Warren County, New Jersey. Mulcahy approached them and began speaking to them about fishing. After a few minutes, Mulcahy departed the area, returning approximately 15 minutes later, holding a can of beer. He continued to talk to Victim 1 and Victim 2 about fishing, however, Mulcahy appeared agitated. Victim 1 and Victim 2 had gotten out of the river and were standing near the riverbed. Mulcahy removed what appeared to be a handgun from his waistband and pointed it at Victim 2’s head. While pointing the gun at Victim 2, Mulcahy ordered Victims 1 and 2 to the ground. Mulcahy then pointed the gun at Victim 1 and stated that he was going to kill Victim 1 if Victim 1 did not listen to him. Mulcahy struck Victim 1 in the head and neck area with the handgun. Mulcahy then began pulling rope out of his pocket and attempted to get Victim 1’s hands behind Victim 1’s back. Victim 1 resisted and was able to take Mulcahy to the ground, where the two began a physical struggle. Mulcahy’s handgun fell to the ground and Victim 2 recovered it and left to contact law enforcement. After the brief physical altercation, Victim 1 ran off to a nearby picnic area to locate Victim 2. Mulcahy departed the area and was later apprehended by law enforcement officers in Hackettstown, New Jersey. Subsequent investigation of the handgun that Victim 2 recovered from Mulcahy revealed that it was a pellet gun.
The charge of assault with a dangerous weapon with intent to do bodily harm carries a maximum punishment of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for March 4, 2021.
U.S. Attorney Carpenito credited park rangers of the U.S. National Park Service, under the direction of Chief Ranger Eric Lisnik, the Hackettstown Police Department, under the direction of Chief James A. Macaulay, and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo, Deputy Chief of the Criminal Division in Newark.
Owner of Temporary Staffing Companies Pleads Guilty in Maryland to Federal Tax Charges for Failing to Pay Employment TaxesRead the Press Release
Baltimore, Maryland – Jimmy Danh, age 60, formerly of Rosedale, Maryland, pleaded guilty today to the federal charges of conspiracy to defraud the United States and to failure to pay over employment taxes.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Thomas Fattorusso of the Internal Revenue Service - Criminal Investigation, Philadelphia Field Office.
According to his guilty plea, from 2007 to 2017, Danh and co-conspirator Darasomalee Thach operated a series of companies that supplied temporary staffing to businesses in Pennsylvania and Maryland. Although Danh and Thach were responsible for payment of employment taxes to the IRS, they purposely failed to withhold and pay over employment taxes in order to maximize their personal profit.
As detailed in the plea agreement, beginning in 2007, Danh and Thach incorporated a company, Team Work, Inc., to operate a labor-leasing business to secure day-labor contracts, and agreed to evade employment taxes in order to maximize profits. From October 1, 2011, to September 30, 2015, Team Work, Inc. paid wages totaling approximately $1,611,894.04 to its workers. Danh and Thach did not maintain business records relating to the operation of Team Work, including employees, payroll, and tax withholdings. Clients paid Team Work lump sum payments for all of the hours that employees worked, with the agreement that Team Work was responsible for paying its employees and for all employment-related withholdings.
Danh admitted that for tax years 2011 to 2015, he and Thach failed to consistently file an Employer’s Quarterly Federal Income Tax Return, and failed to report to IRS all wages paid to Team Work employees, resulting in underreporting the employee share of the Social Security and Medicare taxes in the amount of $113,144.19, and the withholding taxes in the amount of approximately $252,827.81.
From about October 31, 2015 to October 31, 2017, Danh conducted his business via a Maryland corporation, JD Team Work, Inc., and undertook the same scheme. During this time, Danh willfully failed to file Employer’s Quarterly Federal Income Tax Returns, and to withhold Social Security, Medicare, and employment taxes. During this time, the total amount of taxes Danh failed to pay was $183,758.23.
Danh admitted that the total amount of taxes he failed to pay from 2007 to the present was $549,730.23. As stated in his plea agreement, as a special condition of his supervised release, Danh will be required to execute a Closing Agreement with the IRS in order to resolve tax liabilities for tax years 2007 through 2017.
“Jimmy Danh’s insatiable greed for money placed his workers at risk of losing future Social Security and Medicare benefits,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “His criminal conduct also resulted in a loss of revenue to the United States Government. His guilty plea today should serve as a stark warning that IRS Criminal Investigation will vigorously pursue anyone who seeks to profit at the expense of their workers and honest taxpayers.”
Darasomalee Thach previously pleaded guilty to related charges in U.S. District Court for the Middle District of Pennsylvania in Harrisburg and is awaiting sentencing.
Danh faces a maximum sentence of five years in prison for each of the two counts. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge George L. Russell, III has scheduled sentencing for February 23, 2021, at 1:00 p.m.
United States Attorney Robert K. Hur commended the IRS-Criminal Investigation for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Aaron S.J. Zelinsky, who is prosecuting the case.
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Northridge Man Arrested on Charges that Business Partner and He Fraudulently Obtained Nearly $2 Million in COVID-Relief PPP LoansRead the Press Release
SANTA ANA, California – A San Fernando Valley man was arrested today on federal charges alleging he and his business partner fraudulently obtained more than $1.95 million in Paycheck Protection Program (PPP) loans for their companies by submitting fake tax documents and false employee information, and then transferred hundreds of thousands of dollars of the funds into their personal bank accounts.
Steven R. Goldstein, 36, of Northridge and his business partner, Raymond Magana, 39, of Santa Clarita, were named in a federal criminal complaint charging them with making false statements to the government, fraud in connection with major disaster or emergency benefits, wire fraud, bank fraud, conspiracy, and false statements to the Small Business Administration (SBA).
Goldstein was arrested this morning and is expected to make his initial appearance this afternoon in United States District Court in Santa Ana. Magana will be summonsed to appear in federal court next month.
According to an affidavit in support of the complaint, on May 13 and June 3, Magana submitted two applications for PPP loans totaling $1.8 million to U.S. Bank and Customer’s Bank, on behalf of The Building Circle LLC, a company registered in his name.
To qualify for the PPP loans, Magana allegedly claimed that The Building Circle had 40 employees and submitted to the banks, and later to the SBA, bogus wage and tax documents that falsely reported $4.5 million in annual employee wages.
Both IRS and California Employment Development Department records showed that the company never reported paying any employees, and the underwriting packet also did not include a list of employees or associates for the company, according to the affidavit. Investigators later determined that the Pico Rivera address given as The Building Circle’s headquarters was a 980-square-foot, single-family home that appeared to be a residence, not a business. Ultimately, one of the two loan applications was approved and $940,416 was funded to Magana’s shell company, the affidavit states.
Magana allegedly also applied for and received a PPP loan of $360,415 for Forward Builders LLC, another shell company, using fake tax documents and false employee information, and falsely claiming $1.73 million in employee wages.
When a bank manager contacted Magana after one of the business accounts receiving PPP funds had been frozen because of suspicious activity, he allegedly told the bank “We have all the documents, we got approved,” and he refused to return the improperly obtained PPP funds, the affidavit states.
The affidavit further alleges that Goldstein applied for four different PPP loans to Bank of America totaling more than $1.2 million on behalf of two other companies, Beagle Real Estate and Antelope Valley Real Estate Development LLC, while also using fake tax documents and false employee information.
Two of those PPP loans ultimately were approved and Goldstein’s companies received a total of $655,000 in PPP loan funds, the affidavit details. California state business records list Magana as CEO of Antelope Valley Real Estate Development, while Goldstein is listed as its manager.
According to the affidavit, on the same day that the banks issued those PPP loan funds to Goldstein’s companies, Goldstein transferred more than half of that amount, $355,000, into his personal bank accounts.
In total, Magana and Goldstein applied for more than five separate PPP business loans totaling more than $2.5 million from various banks, of which more than $1.95 million was issued, according to the affidavit.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of these charges, Magana and Goldstein each would face a statutory maximum sentence of 127 years in federal prison.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April, Congress authorized more than $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This matter was investigated by IRS Criminal Investigation and the Small Business Administration – Office of Inspector General. The FBI assisted with today’s arrests.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case.
Nicholasville Compounding Pharmacy and Its Owner Plead Guilty to Unlawful Distribution of Prescription DrugsRead the Press Release
FRANKFORT, Ky. –A compounding pharmacy based in Nicholasville, and its owner, admitted on Thursday in federal court to unlawful distribution of compounded prescription drugs.
Tailor Made Compounding LLC (TMC) pleaded guilty to one count of distributing unapproved new drugs throughout the United States, from October 25, 2018 through April 1, 2020, before U.S. District Judge Gregory F. Van Tatenhove. Specifically, TMC pleaded guilty to unlawful distribution of selective androgen receptor modulators (“SARMS”) and other substances that the FDA had not approved for distribution in the United States. SARMS are synthetic chemicals designed to mimic the effects of testosterone and other anabolic steroids. Products containing SARMS were often marketed and sold for body-building purposes. According to the plea agreement, TMC also unlawfully distributed other unapproved new drugs, including BPC 157, Cerebrolysin, CJC 1295, DSIP, Epitalon, GW 501516, Ipamorelin, LGD-4033, LL-37, Melanotan II, MK 677, PEG-MGF, Selank, and Semax. In connection with the plea, TMC agreed to forfeit $1,788,906.82, representing its 2019 sales for these products.
Jeremy Delk, 40, pleaded guilty to one count of unlawfully engaging in wholesale distribution of a prescription drug, without licensing TMC as a wholesale distributor with the Board of Pharmacy for the Commonwealth of Kentucky. According to the plea agreement, from October 23, 2018 through May 14, 2020, TMC sent 112 vials of Methylcobalamin 10mg/ml 10mL, a prescription form of vitamin B12, to Doctor 1, a licensed physician who operated an anti-aging/wellness clinic in the Greater Los Angeles area. Rather than sending individualized, patient-specific prescriptions to TMC, as is required by law, Doctor 1 made bulk orders of Methylcobalamin 10mg/ml 10mL without issuing prescriptions or providing accurate patient names. Delk, as owner and chief executive officer of TMC, knowingly caused TMC to fill and ship bulk, wholesale distributions of Methylcobalamin to Doctor 1, knowing that TMC had never applied for permission from the Kentucky Board of Pharmacy for TMC to act as a wholesale distributor of prescription drugs. When authorities from the FDA and the Kentucky Board of Pharmacy inspected TMC between August 20 and October 24, 2018, Delk took steps to hide records of TMC’s wholesale distributions of Methylcobalamin, as well as other records.
Tailor Made and Delk were charged by way of information, waiving their right to indictment by a federal grand jury.
“The safety and efficacy of prescription medications is of paramount importance to us all,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “When pharmacies intentionally evade the FDA requirements, they are placing their own interests above those of the patients they are supposed to be serving. The community deserves better, and I commend the work of our law enforcement partners in their diligent efforts to protect the public and disrupt this criminal conduct.”
“Compounded drugs can serve an important role for patients whose medical needs cannot be met by an FDA-approved drug product. But pharmacies will be held responsible for failing to follow the laws intended to protect patients, including requirements for licensure and limitations on what drugs can be appropriately compounded,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice those who put profits above a patient’s health.”
United States Attorney Duncan; Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office; and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation jointly announced the guilty plea.
The investigation was conducted by the FDA and the FBI. The United States was represented by Assistant U.S. Attorney Kate K. Smith.
Delk and Tailor Made Compounding are scheduled to be sentenced on February 24, 2021. Delk faces up to 10 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
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Muskogee Man Pleads Guilty to Mail FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kenneth Gene Morgan a/k/a Kenny Morgan, age 44, of Muskogee, Oklahoma entered a guilty plea to Mail Fraud, in violation of Title 18, United States Code, Section 1341, punishable by not more than 20 years imprisonment, a fine up to $250,000.00, or both; and Tax Fraud, in violation of Title 26, United States Code, Section 7206(1), punishable by not more than 3 years imprisonment, a fine up to $100,000.00, or both.
The Information alleged that on or about February 15, 2017, for the purpose of executing or attempting to execute the above-described scheme and artifice to defraud and deprive, Morgan knowingly took and received from an authorized depository for mail an envelope, containing a check in the amount of $303,619.55, addressed to Direct Traffic Control, Inc. and Kenny Morgan.
The Information further alleged that on or about April 15, 2018, in the Eastern District of Oklahoma and elsewhere, the defendant, willfully made and subscribed a false 2017 Form 1040, U.S. Individual Income Tax Return, which contained and was verified by a written declaration that it was made under the penalties of perjury, and which he did not believe to be true and correct as to every material matter, in that he knowingly reported Adjusted Gross Income of $176,564.00, whereas, he then and there knew that the Adjusted Gross Income failed to report approximately $208,563.35 of income.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, 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 Doug Horn represented the United States.
Mt. Sterling Crop Insurance Agent and Adjuster Plead Guilty to Crop Insurance FraudRead the Press Release
LEXINGTON, Ky. - A Mt. Sterling, Kentucky husband and wife, Michael McNew, 49, and Karen Ann Nickell, 64, pleaded guilty on Thursday, before U.S. District Judge Karen Caldwell, to conspiracy to commit wire fraud and crop insurance fraud, respectively.
According to his plea agreement, McNew admitted that, in late 2013, he devised a scheme to defraud the federal government, on federal crop insurance policies, and ARMtech Insurance Services, on private crop-hail insurance policies. As to the federal policies, this scheme involved making material misrepresentations on crop insurance applications and claim of loss forms on a large scale, including knowingly misrepresenting ownership stakes, farm acreage, farming activity on the farms covered, and the consent of the parties in whose name the policies are taken out. McNew also admitted to submitting false claims of loss on the private crop-hail policies, knowing that the claims falsified acreage, percentage of damage, and photographs of the damage. McNew admitted to receiving a kickback from the farmers in the form of cash in exchange for these favorable adjustments. As a result of his conduct, fraudulent insurance policies were issued and paid, resulting in approximately $23,618,351 worth of insurance indemnity payouts distributed to producers under false pretenses.
In her plea agreement, Nickell admitted that while acting as an independent insurance adjuster for ARMtech Insurance Services, she aided and abetted others in knowingly making false statements and reports for the purpose of making a false claim of loss on a federal crop insurance policy belonging to an individual identified as E.L.P. She admitted that on three occasions, she adjusted tobacco crops on a property insured under E.L.P.’s name, when in reality that specific claimed property was a wooded lot, incapable of growing tobacco.
Michael McNew was indicted in November 2019. Karen Ann Nickell was indicted in February 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Jason M. Williams, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Juan Garrett, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly made the announcement.
The investigations were conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency Special Investigations Staff, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance. The United States is represented by Assistant United States Attorneys Erin Roth and Kathryn Anderson.
McNew is scheduled to be sentenced on January 15, 2021. He faces up to 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss. Nickell is also scheduled to be sentenced on January 15, 2021. She faces probation for two years, a $15,000 fine, and a payment of restitution of $58,486. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal statutes.
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Morgantown woman admits to illegal firearms purchaseRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cheyann Ciarra Hammonds, of Morgantown, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Hammonds, 25, pled guilty to one count of “False Statement During Purchase of a Firearm.” Hammonds admitted to falsifying the paperwork to purchase a Glock pistol for someone else in Monongalia County in September 2016.
Hammonds faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Monett Man Who Trafficked ‘Half the Town’ Sentenced to 12 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Monett, Missouri, man was sentenced in federal court today for his role in a conspiracy that distributed more than 20 pounds of methamphetamine in southern Missouri.
Eric Eugene Akins, 54, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years in federal prison without parole.
On Jan. 21, 2020, Akins pleaded guilty to his role in a conspiracy to distribute methamphetamine in Greene, Barry, Lawrence, and Howell Counties from May 10 to Dec. 19, 2018. Akins obtained at least 10 pounds of methamphetamine from co-defendant Damian Arreola-Chico, 30, of Purdy, Mo., which he then distributed to others. Investigators determined that the methamphetamine involved in the conspiracy was of high purity, some as much as 99 percent pure.
Law enforcement officers searched a storage shed Akins rented on Aug. 7, 2018, where they found a backpack that contained a total of 134.06 grams of methamphetamine. Akins told investigators the methamphetamine had been fronted to him by Arreola-Chico and that he owed $5,000 for it. According to court documents Akins bragged to investigators that he was distributing methamphetamine to “half the town.”
At the time of the offense, Akins was on state probation after his fifth conviction for possessing a controlled substance. Akins also has prior felony convictions for burglary, forgery, non-support, stealing, and distribution of a controlled substance.
Akins is the final defendant to be sentenced in this case. Four co-defendants also have pleaded guilty to their roles in the drug-trafficking conspiracy. Arreola-Chico was sentenced to 20 years in federal prison without parole. Maleana Lee Willhite, 40, of Verona, Mo., was sentenced to 12 years in federal prison without parole. Michael Eugene Handshy, 40, of Billings, Mo., was sentenced to 10 years in federal prison without parole. Michael Shae Rhoads, 29, of Monett (who also pleaded guilty to possessing a firearm in furtherance of the drug-trafficking conspiracy) was sentenced to six years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Jessica R. Sarff. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol, COMET (the Combined Ozarks Multi-jurisdictional Enforcement Team), the Monett, Mo., Police Department, the Springfield, Mo., Police Department, the Howell County, Mo., Sheriff’s Department, and the West Plains, Mo., Police Department.
Mexican Man Sentenced for Distributing MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that United States District Judge Robert F. Rossiter, Jr. sentenced Juan Miranda-Funes today to 120 months in federal prison. There is no parole in the federal system. Miranda-Funes will serve a 5-year term of supervised release following his release from the Bureau of Prisons.
Miranda-Funes, 44, was convicted of conspiring to distribute and possess with intent to distribute methamphetamine with co-defendant Juan Carranza in the Omaha area between February 1, 2019 and May 9, 2019. On February 20, 2019, the Drug Enforcement Administration used an undercover officer to make a purchase of methamphetamine from Miranda-Funes. The undercover officer arranged a second methamphetamine transaction with Miranda-Funes, which was to occur on May 9, 2019 at a grocery store in Omaha. On that date, investigators followed Miranda-Funes from his work place to Motel 89 in Omaha, where Carranza resided. Miranda-Funes parked at the motel for a short while, then departed, traveling to a QT convenience store. Investigators observed Miranda-Funes waiting in the parking lot at the QT. The undercover officer exchanged text messages with Miranda-Funes, who indicated he was waiting on someone to bring the methamphetamine to that location.
Investigators thereafter observed Carranza arrive and meet with Miranda-Funes at the QT. Miranda-Funes got into Carranza’s car and they drove to the grocery store, which was nearby. Investigators made contact with Carranza and Miranda-Funes while they were seated in Carranza’s parked car. Both men were arrested. Officers searched the car and recovered approximately one pound of methamphetamine from a container sitting on the passenger seat.
Carranza was sentenced on September 24, 2020. Miranda-Funes will be deported from the United States to Mexico after serving his prison term
The case was primarily investigated by the Drug Enforcement Administration and Omaha Police Department.
Methuen Man Charged with Bank RobberyRead the Press Release
BOSTON – A Methuen man was arrested and charged yesterday in connection with robbing five banks in Middlesex County in August and September 2020.
Caio Costa, 25, was charged by criminal complaint with armed bank robbery and brandishing a firearm during the commission of a crime of violence. Costa was arrested on state charges on Sept. 26, 2020, following the robbery of a branch of the Salem Five Bank in Tewksbury. Costa was detained following an initial appearance in federal court in Boston yesterday.
According to charging documents, between Aug. 28, 2020 and Sept. 25, 2020, four federally insured banks were robbed in Middlesex County. In each of these robberies, the robber entered the bank wearing dark clothing and a motorcycle helmet and brandished a black revolver. Following each robbery, the robber escaped on a dark-colored motorcycle.
It is alleged that, on Sept. 25, 2020, an individual, later determined to be Costa, wearing dark clothing and a motorcycle helmet entered a branch of the Salem Five Bank in Tewksbury. Costa approached a teller, brandished what appeared to be a black revolver and demanded the bank’s money. The teller handed Costa cash and Costa exited the bank and sped away on a dark-colored motorcycle. Local law enforcement, who became aware of the robbery, observed Costa on the motorcycle in traffic and attempted to stop him. Costa allegedly fled, accelerating at speeds estimated to be 80-100 miles per hour while weaving in and out of traffic. Costa eventually crashed the motorcycle and escaped on foot, leaving his black helmet behind.
The following day, Costa was located in a New Hampshire hotel and arrested without incident. During an interview with law enforcement, Costa admitted to the Sept. 25, 2020 armed robbery of the Salem Five Bank in Tewksbury; the Aug. 28, 2020 armed robbery of the Eastern Bank in Chelmsford; the Sept. 18, 2020 armed robbery of the People’s United Bank in Lowell; and the Sept. 18, 2020 armed robbery of the Reading Co-Op in Wilmington.
The charge of armed bank robbery provides for a sentence of up to 25 years in prison, three years of supervised release and a fine of up to $250,000. The charge of brandishing a firearm during the commission of a crime of violence provides for a mandatory sentence of seven years in prison to be served consecutive to the armed robbery charges. Sentences are imposed by a federal district court judge based upon the Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Middlesex District Attorney Marian Ryan; Tewksbury Police Chief Ryan M. Columbus; Lowell Police Chief Christopher Hurst; Wilmington Police Chief Joseph Desmond; and Chelmsford Police Chief James M. Spinney made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Medtronic to Pay over $9.2 Million to Settle Allegations of Improper Payments to South Dakota NeurosurgeonRead the Press Release
Minnesota-based medical device maker Medtronic USA Inc. has agreed to pay $8.1 million to resolve allegations that it violated the False Claims Act by paying kickbacks to induce a South Dakota neurosurgeon to use certain Medtronic products, the Department of Justice announced today.
Medtronic also agreed to pay an additional $1.11 million to resolve allegations that it violated the Open Payments Program by failing to accurately report payments it made to the neurosurgeon to the Centers for Medicare & Medicaid Services (CMS).
“Kickbacks undermine the integrity of federal healthcare programs and increase costs borne by taxpayers,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “This case demonstrates the Department of Justice’s commitment to ensure that medical device manufacturers do not use improper financial relationships to influence physician decision-making.”
“We expect doctors to make medical decisions based on what is best for their patients, not what is best for their bank accounts,” said U.S. Attorney Ron Parsons for the District of South Dakota. “The quality of medical care is eroded – and patients and their families suffer – when companies and physicians enter into these sorts of under the table schemes to create illegal financial incentives to increase the use of medical devices.”
“Allegations of kickbacks are taken very seriously. Such actions threaten the integrity of federal healthcare systems,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “We will continue working with our law enforcement partners to protect patients and taxpayers.”
“CMS’ Open Payments Program is intended to promote transparency and accountability in the healthcare system. Manufacturers that misreport their financial relationships with healthcare providers erode the integrity of the Open Payments Program and will be held accountable,” said Brenna E. Jenny, HHS Deputy General Counsel and CMS Chief Legal Officer. “CMS looks forward to continued partnership with the Department of Justice to resolve allegations of manufacturers skirting their Open Payments obligations.”
The Anti-Kickback Statute prohibits directly or indirectly offering or paying anything of value to induce the referral of items or services covered by Medicare, Medicaid, TRICARE, and other federal healthcare programs.
The settlement announced today resolves allegations that Medtronic agreed to the requests of South Dakota neurosurgeon, Wilson Asfora, M.D., to pay for social events at Carnaval Brazilian Grill, a restaurant Medtronic knew Asfora owned, including scores of expensive meals. Medtronic allegedly made the payments to benefit Asfora and induce him to use Medtronic’s SynchroMed II intrathecal infusion pumps, which are implantable devices used to deliver medication to patients. The United States alleged that Medtronic’s sponsored events at Asfora’s restaurant were social gatherings for which Asfora selected and invited his social acquaintances, business partners, favored colleagues, and potential and existing referral sources, while Medtronic paid for their meals and drinks. Over a nine-year period, Medtronic allegedly paid for more than one hundred events at Asfora’s restaurant.
This settlement also resolves Medtronic’s liability under CMS’ Open Payments Program, which was established by the Affordable Care Act and requires medical device manufacturers like Medtronic to disclose to CMS certain payments or other transfers of value to a physician like Asfora. The United States alleged that Medtronic made payments to Asfora’s restaurant at his request, knowing that Asfora owned the restaurant, but underreported those payments to CMS.
Asfora and two of his other companies are defendants in a separate FCA lawsuit in which the United States filed a complaint in November 2019, alleging that Asfora received kickbacks to use certain implants in his spinal surgeries. That pending case is captioned United States ex rel. Bechtold, et al. v. Asfora, et al., No. 4:16-cv-04115-LLP (D.S.D.).
The government’s pursuit of these matters 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 settlement was the result of an investigation by the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of South Dakota, and HHS-OIG. As part of the settlement, Medtronic agreed to cooperate with the Department’s investigations of and litigation against other parties, and the device maker took remedial action once it learned of the wrongdoing, including terminating a sales representative and sales manager and disciplining twelve other employees involved in the alleged misconduct.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Man with homemade sex doll ordered to federal prison on child pornography chargeRead the Press Release
CORPUS CHRISTI, Texas - A 44-year-old Corpus Christi man has been ordered to federal prison for possessing child pornography, announced U.S. Attorney Ryan K. Patrick.
Lazaro Eugene Velasquez pleaded guilty Jan. 21.
Today, U.S. District Judge David S. Morales ordered Velasquez to serve an 84-month sentence. At the hearing, the court heard that in addition to possessing hundreds of images and videos of child pornography, Velasquez also had a child-sized sex doll which was made of rags and clothed in children’s items. It was also covered in what appeared to be semen.
Evidence revealed Velasquez also had images of a local child. While not originally pornographic, Velasquez had altered them. The new images had cartoon-like captions that made it appear the child was asking Velasquez to perform lewd sexual acts on her.
In handing down the sentence, the court noted that while Velasquez was not being sentenced for directly committing sexual abuse against a child, possession of child pornography is also a crime that victimizes minors. She explained that children can also be abused because people who seek out child pornography create a demand for the images to be produced.
Velasquez will serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
In February 2019, law enforcement learned Velasquez had used his father’s computer to upload an image of child pornography to an internet search engine. They then conducted a search of the residence.
They ultimately found the sex doll laying on his bed, children’s clothing in his closet and a spiral notebook containing hand-written stories describing the sexual abuse of children. At that time, authorities also seized his electronic devices. Forensic examination resulted in the discovery of more than 700 images and videos containing child pornography on his cellular phone. It also had 69 images of a local child whom Velasquez had known for several years.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Corpus Christi Police Department – Internet Crimes Against Children Task Force and Immigration and Custom’s Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Brittany L. Jensen prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Man sentenced to ten years in prison for attempted sexual enticement of a 13-year-old girlRead the Press Release
HONOLULU, Hawaii – the Honorable District Judge Helen Gillmor sentenced Zachariah Fredrickson, 32, of Kapolei, Hawaii, to ten years in prison, to be followed by ten years of supervised release, for attempting to entice a 13 year-old minor to engage in unlawful sexual activity. He will also pay a $5000 special assessment pursuant to the Justice for Victims of Trafficking Act of 2015.
U.S. Attorney Kenji M. Price for the District of Hawaii stated that according to court documents and information presented in court, on March 25, 2019, Fredrickson engaged in a series of online chats with an undercover agent posing as a 13-year-old girl. During their conversations, Fredrickson arranged to meet the girl in person with the intent to engage in sexual activity, and agreed to pay $100 per hour for sex with the girl. Fredrickson then traveled to an agreed-upon location, and was later arrested.
“My office will continue to protect children in our communities from those who lurk in the corners of cyberspace seeking opportunities to exploit them. These kinds of prosecutions put child sex predators on notice that the Department of Justice will not sit by idly by while they try to take advantage of children. The federal law enforcement community and its partners will proactively bring these perpetrators to justice,” stated U.S. Attorney Price.
“In today's world the internet allows our children to connect globally. Unfortunately many parents, do not know who their children are connecting with online” stated Special Agent in Charge Eli S. Miranda. “Predators like Fredrickson use technology to sexually exploit our children. But the FBI remains vigilant and committed to catching these criminals and ensuring that justice is served.”
The case was investigated by the FBI and the Hawaii Internet Crimes Against Children Task Force (ICAC), and it was prosecuted by Assistant U.S. Attorney Morgan Early.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Sentenced to 10 Years for Conspiring to Distribute Heroin in MadisonRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Michael Carroll, 50, Milwaukee, Wisconsin, pleaded guilty and was sentenced today by U.S. District Judge William H. Conley to 10 years in prison for conspiring to distribute heroin.
In September 2019, Carroll arranged to expand his drug-distribution operation from Milwaukee to Madison, Wisconsin. He drove large quantities of heroin, some of which tested positive for fentanyl, from Milwaukee to Madison where he used another person to sell the heroin and collect his money. Between September 13 and November 15, 2019, Carroll conspired to sell heroin to an undercover police officer on multiple occasions. His relevant conduct included over 400 grams of heroin. During the execution of search warrants where he stayed in Milwaukee, law enforcement agents located several hidden firearms.
Carroll has a lengthy criminal history dating back over 30 years, including gun crimes, drug crimes, and a reckless homicide where he shot an innocent person after pointing a gun at someone else. At the time of his arrest, Carroll was on state supervision for three criminal cases, including the reckless homicide. Judge Conley remarked that at age 50, Carroll had yet to make any meaningful deviation from a criminal lifestyle.
The charge against Carroll was the result of an investigation conducted by the Dane County Narcotics Task Force, the Wisconsin Department of Justice Division of Criminal Investigation, the Drug Enforcement Administration, and North Central HIDTA. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Medtronic to Pay over $9.2 Million to Settle Allegations of Improper Payments to South Dakota NeurosurgeonRead the Press Release
WASHINGTON – Minnesota-based medical device maker Medtronic USA Inc. has agreed to pay $8.1 million to resolve allegations that it violated the False Claims Act by paying kickbacks to induce a South Dakota neurosurgeon to use certain Medtronic products, the Department of Justice announced today.
Medtronic also agreed to pay an additional $1.11 million to resolve allegations that it violated the Open Payments Program by failing to accurately report payments it made to the neurosurgeon to the Centers for Medicare & Medicaid Services (CMS).
“Kickbacks undermine the integrity of federal healthcare programs and increase costs borne by taxpayers,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “This case demonstrates the Department of Justice’s commitment to ensure that medical device manufacturers do not use improper financial relationships to influence physician decision-making.”
“We expect doctors to make medical decisions based on what is best for their patients, not what is best for their bank accounts,” said U.S. Attorney Ron Parsons for the District of South Dakota. “The quality of medical care is eroded – and patients and their families suffer – when companies and physicians enter into these sorts of under the table schemes to create illegal financial incentives to increase the use of medical devices.”
“Allegations of kickbacks are taken very seriously. Such actions threaten the integrity of federal healthcare systems,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “We will continue working with our law enforcement partners to protect patients and taxpayers.”
“CMS’ Open Payments Program is intended to promote transparency and accountability in the healthcare system. Manufacturers that misreport their financial relationships with healthcare providers erode the integrity of the Open Payments Program and will be held accountable,” said Brenna E. Jenny, HHS Deputy General Counsel and CMS Chief Legal Officer. “CMS looks forward to continued partnership with the Department of Justice to resolve allegations of manufacturers skirting their Open Payments obligations.”
The Anti-Kickback Statute prohibits directly or indirectly offering or paying anything of value to induce the referral of items or services covered by Medicare, Medicaid, TRICARE, and other federal healthcare programs.
The settlement announced today resolves allegations that Medtronic agreed to the requests of South Dakota neurosurgeon, Wilson Asfora, M.D., to pay for social events at Carnaval Brazilian Grill, a restaurant Medtronic knew Asfora owned, including scores of expensive meals. Medtronic allegedly made the payments to benefit Asfora and induce him to use Medtronic’s SynchroMed II intrathecal infusion pumps, which are implantable devices used to deliver medication to patients. The United States alleged that Medtronic’s sponsored events at Asfora’s restaurant were social gatherings for which Asfora selected and invited his social acquaintances, business partners, favored colleagues, and potential and existing referral sources, while Medtronic paid for their meals and drinks. Over a nine-year period, Medtronic allegedly paid for more than one hundred events at Asfora’s restaurant.
This settlement also resolves Medtronic’s liability under CMS’ Open Payments Program, which was established by the Affordable Care Act and requires medical device manufacturers like Medtronic to disclose to CMS certain payments or other transfers of value to a physician like Asfora. The United States alleged that Medtronic made payments to Asfora’s restaurant at his request, knowing that Asfora owned the restaurant, but underreported those payments to CMS.
Asfora and two of his other companies are defendants in a separate FCA lawsuit in which the United States filed a complaint in November 2019, alleging that Asfora received kickbacks to use certain implants in his spinal surgeries. That pending case is captioned United States ex rel. Bechtold, et al. v. Asfora, et al., No. 4:16-cv-04115-LLP (D.S.D.).
The government’s pursuit of these matters 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 settlement was the result of an investigation by the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of South Dakota, and HHS-OIG. As part of the settlement, Medtronic agreed to cooperate with the Department’s investigations of and litigation against other parties, and the device maker took remedial action once it learned of the wrongdoing, including terminating a sales representative and sales manager and disciplining twelve other employees involved in the alleged misconduct.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Louisiana Men Sentenced on Federal Firearms ChargesRead the Press Release
Acting United States Attorney Alexander C. Van Hook announced today that two Louisiana men have been sentenced on federal firearms charges.
SHREVEPORT, La. – John Jackson Harkey, 35, of Shreveport, was sentenced by United States District Judge Donald E. Walter to 70 months (5 years, 10 months) in prison followed by 3 years of supervised release for possessing an unregistered firearm. On or about February 21, 2019, Shreveport Police Department officers lawfully executed a search warrant at Harkey’s residence. During the search, officers found an operable, short-barreled shotgun that was not registered to him in the National Firearms Registration and Transfer Record. Harkey pleaded guilty to the charge on May 27, 2020.
The ATF and Shreveport Police Department conducted the investigation and Assistant U.S. Attorney Mike Shannon prosecuted the case.
ALEXANDRIA, La. – Joseph Wilton, 28, of Alexandria, was sentenced by United States District Judge Dee D. Drell to 60 months (5 years) in prison followed by 3 years of supervised release for being a convicted felon in possession of a firearm. Alexandria Police Department officers stopped the car Wilton was driving on February 17, 2018. During a search of the vehicle, officers recovered a firearm and ammunition. Wilton, who was a convicted felon, knew that it was unlawful to possess the firearm and ammunition and was subsequently arrested. Wilton pleaded guilty to the charge on July 16, 2020.
The ATF and Alexandria Police Department conducted the investigation and Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
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Latin Dragon Nation Member Sentenced to 510 Months in Prison Following Conviction for Racketeering Conspiracy Including Two HomicidesRead the Press Release
HAMMOND- Ralph Mendez, Jr., 24, of Chicago, Illinois, was sentenced by U.S. District Court Judge Philip P. Simon to 510 months in prison following his guilty plea to conspiracy to participate in racketeering activity as a member of the Latin Dragons Nation street gang, including admitting responsibility for two homicides, announced U.S. Attorney Kirsch.
According to documents in the case, Mendez, Jr., admitted to being a member of the Latin Dragon Nation street gang since approximately 2014. As a member of the gang, Mendez, Jr., participated in shootings of suspected gang members and associates, in addition to drug and firearms trafficking. On May 23, 2017, while accompanied by others, Mendez, Jr., left Hammond, Indiana, in a stolen vehicle to go to a rival gang neighborhood in Chicago. Upon arriving, he shot Jose Gomez, a suspected rival gang member, resulting in his death. On July 14, 2017, in Chicago, Illinois, Mendez, Jr., was accompanied by others when he fired in excess of 15 shots at four people whom he suspected were rival gang members or associates, resulting in the death of Mike Whitford and resulting in another victim being shot in the neck. From 2014 through 2017, Mendez, Jr., also accompanied others on shootings and himself shot four additional victims, including shooting one victim in the back as he attempted to flee.
“This sentence should send a loud message that if you are involved in illegal and violent activity in our communities, federal law enforcement is coming for you,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “I am extremely proud of the work of our agents and law enforcement partners who worked tirelessly on this case to ultimately hold the defendant accountable for his actions.”
“Violence, including firearms and narcotics trafficking, will not be tolerated by the community of Hammond,” said ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “Coordination among local, state and federal law enforcement as well as across state lines between Indiana and Illinois is an effective force multiplier in ensuring gang members are held accountable for the violence they perpetrate.”
This case is the result of the investigative efforts of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Chicago Police Department Criminal Enterprise Unit; the Cook County Sheriff’s Office; the Bartlett Police Department; the Hammond Police Department; the East Chicago Police Department; the Merrillville Police Department; the Hobart Police Department; the Lake County Sheriff’s Department; and the Calumet City Police Department, with assistance from the Lake County, Indiana Prosecutor’s Office, the Cook County, Illinois State’s Attorney’s Office, the Indiana Department of Corrections, and the Illinois Department of Corrections. This case is being prosecuted by Assistant U.S. Attorneys Kevin F. Wolff and Maria N. Lerner and Special Assistant U.S. Attorney Michael J. Toth, with prior assistance from former Assistant U.S. Attorney Joseph A. Cooley.
Justice Department Releases Information on Election Day Efforts to Protect the Right to Vote and Prosecute Ballot FraudRead the Press Release
Continuing a longstanding Justice Department tradition, Attorney General William P. Barr today issued the following statement: “Americans have the opportunity once again to help shape the future of this nation by exercising their right to vote. It is a right that forms the foundation of our democratic system of government, and is precious to all Americans. The Department of Justice will work tirelessly alongside other federal, state, and local agencies to protect that right as it is administered by state and local jurisdictions across the nation.”
In anticipation of the upcoming general elections, the Department of Justice today provided information about its particular efforts, through the Criminal Division, Civil Rights Division, and National Security Division, to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation, or fraud in the election process.
Criminal Division and the Department’s 94 U.S. Attorney’s Offices:
The department’s Criminal Division oversees the enforcement of federal laws that criminalize certain forms of election fraud and vindicate the integrity of the federal election process.
The Criminal Division’s Public Integrity Section and the department’s 94 U.S. Attorney’s Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election fraud, such as destruction of ballots, vote-buying, multiple voting, submission of fraudulent ballots or registrations, and alteration of votes, and malfeasance by postal or election officials and employees. The Criminal Division is also responsible for enforcing federal criminal law prohibiting voter intimidation for reasons other than race, color, national origin, or religion (as noted below, voter intimidation that has a basis in race, color, national origin, or religion is addressed by the Civil Rights Division).
The U.S. Attorney’s Offices around the country designate Assistant U.S. Attorneys who serve as District Election Officers (DEOs) in the respective Districts. DEOs are responsible for overseeing potential election-crime matters in their Districts, and for coordinating with the department’s election-crime experts in Washington, D.C.
From now through Nov. 3, 2020, the U.S. Attorney’s Offices will work with specially trained FBI personnel in each district to ensure that complaints from the public involving possible election fraud are handled appropriately. Specifically:
- In consultation with federal prosecutors at the Public Integrity Section in Washington, D.C., the District Election Officers in U.S. Attorney’s Offices, FBI officials at headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open to receive complaints from the public.
- Election-crime complaints should be directed to the local U.S. Attorney’s Offices or the local FBI office. A list of U.S. Attorney’s Offices and their telephone numbers can be found at http://www.justice.gov/usao/districts/. A list of FBI offices and accompanying telephone numbers can be found at www.fbi.gov/contact-us.
- Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorney’s Offices and the FBI regarding the handling of election-crime allegations.
All complaints related to violence, threats of violence, or intimidation at a polling place should be reported first to local police authorities by calling 911; after alerting local law enforcement to such emergencies by calling 911, the public should contact the department.
Civil Rights Division:
The department's Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal statutes that protect the right to vote, and with the criminal provisions of federal statutes prohibiting discriminatory interference with that right.
The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including: the Voting Rights Act; the Uniformed and Overseas Citizens Absentee Voting Act; the National Voter Registration Act; the Help America Vote Act; and the Civil Rights Acts. Among other things, collectively, these laws:
- Prohibit election practices that have either a discriminatory purpose or a discriminatory result on account of race, color, or language minority status;
- Prohibit intimidation of voters;
- Provide that voters who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice (other than agents of their employer or union);
- Provide for accessible voting systems for voters with disabilities;
- Provide for provisional ballots for voters who assert they are registered and eligible, but whose names do not appear on poll books;
- Provide for absentee voting for absent uniformed service members, their family members, and U.S. citizens living abroad; and
- Provide for covered States to offer citizens the opportunity to register to vote through offices that provide driver licenses, public assistance, and disability services, as well as through the mail; and to take steps regarding maintaining voter registration lists.
The Civil Rights Division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) that prohibits discrimination in voting based on disability.
The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and vote suppression based on race, color, national origin, or religion.
On Election Day, Nov. 3, 2020, the Civil Rights Division will implement a comprehensive program to help ensure the right to vote that will include the following:
- The Civil Rights Division will conduct monitoring in the field under the federal voting rights statutes.
- Civil Rights Division attorneys in the Voting, Disability Rights, and Criminal Sections in Washington, D.C., will be ready to receive complaints of potential violations relating to any of the statutes the Civil Rights Division enforces. Attorneys in the division will coordinate within the Department of Justice and will take appropriate action concerning these complaints before, during, and after Election Day.
- Individuals with complaints related to possible violations of the federal voting rights laws can call the department’s toll-free telephone line at 800-253-3931, and also can submit complaints through a link on the department’s website, at https://civilrights.justice.gov/.
- Individuals with questions or complaints related to the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or submit a complaint through a link on the department’s ADA website, at ada.gov.
- Once again, complaints related to violence, threats of violence, or intimidation at a polling place should always be reported immediately to local authorities by calling 911. They should also be reported to the department after local authorities are contacted.
National Security Division:
The department's National Security Division supervises the investigation and prosecution of cases affecting or relating to national security, including any cases involving foreign interference in elections or violent extremist threats to elections. In this context:
- The National Security Division’s Counterintelligence and Export Control Section oversees matters involving a range of malign influence activities that foreign governments may attempt, including computer hacking of election or campaign infrastructure; covert information operations (e.g., to promulgate disinformation through social media); covert efforts to support or denigrate political candidates or organizations; and other covert influence operations that might violate various criminal statutes.
- The National Security Division’s Counterterrorism Section oversees matters involving international and domestic terrorism and supports law enforcement in preventing any acts of terrorism that impact Americans, including any violent extremism that might threaten election security.
As in past elections, on Nov. 3, 2020, the National Security Division will work closely with counterparts at the FBI and our U.S. Attorney’s Offices to protect our nation’s elections from any national security threats. In particular, attorneys from both sections will be partnered with FBI Headquarters components to provide support to U.S. Attorney’s Offices and FBI Field Offices to counter any such threats. Again, complaints related to violence, threats of violence, or intimidation at a polling place should always be reported immediately to local authorities by calling 911 and, after local authorities are contacted, then should also be reported to the department.
Both protecting the right to vote and combating election fraud are essential to maintaining the confidence of all Americans in our democratic system of government. The department encourages anyone with information suggesting voting rights concerns or ballot fraud to contact the appropriate authorities, and notes in particular that the Department of Homeland Security plays its own important role in safeguarding critical election infrastructure from cyber and other threats.
Jury Convicts Largo Man for Attempting to Entice Minor to Engage in Sexual ActivityRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found Asa Nall (50, Largo) guilty of attempted enticement of a child to engage in sexual activity. Nall faces a minimum mandatory penalty of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for January 28, 2021.
Nall had been indicted on October 22, 2019.
According to evidence presented at trial, Nall communicated online and via text messages with someone he believed to be a 14-year-old girl. In reality, he was talking to an undercover agent. For more than a month, Nall repeatedly asked the child to produce sexually explicit images for him, specifying that he wanted to see her fully nude, including close up photos of her genitalia. Nall also repeatedly requested to meet the child for sex, asking her to “sneak away” and “skip school” to meet with him. In the conversations, Nall discussed in graphic detail the sex acts he would engage in when they met.
On October 16, 2019, Nall traveled to a location to meet the child for sex, and he was subsequently arrested. Law enforcement agents recovered two condoms from Nall’s pocket and the cellphone he had used to communicate with the child. A search of the phone revealed that Nall had also saved the child’s name to his contact list.
This case was investigated by the Federal Bureau of Investigation and the Largo Police Department. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Erin C. Favorit.
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.
Jury Convicts East St. Louis Man of Producing Child Pornography Attempting to Tamper with Victim's TestimonyRead the Press Release
East St. Louis, Ill. – This afternoon, a federal jury in East St. Louis, Illinois, returned a
guilty verdict against Avery Smartt, Jr. The 43-year-old East St. Louis native was convicted of
producing child pornography and attempting to tamper with the victim’s testimony before trial. The
charges were contained in a two-count superseding indictment filed in August 2020. The original
indictment against Smartt – charging only production of child pornography – had been returned two
years earlier.Evidence at trial showed that Smartt engaged in a months-long sexual relationship with a
15-year-old girl, beginning in September 2016. Smartt was a truck driver, and during the course of
their relationship he took the underage girl with him on out-of-state trips, including a long drive
from Illinois to California. In court, the victim testified that it was on those trips that Smartt
took sexually explicit photographs of her. FBI agents seized Smartt’s cell phone and discovered
numerous sexually explicit images of the victim. The trial also featured DNA evidence showing that
Smartt had fathered a child with the girl.While he was in the Clinton County jail awaiting trial, Smartt sent letters to friends and family
members asking them to contact the victim and encourage her to change her testimony. These letters
formed the basis for the tampering charge.Sentencing has been scheduled for February 3, 2021, in front of Chief United States District Judge
Nancy J. Rosenstengel. Smartt faces 15-30 years in prison for producing child pornography. He also
could receive as much as 20 years in prison for attempting to tamper with the victim’s testimony.Due to the ongoing pandemic, a number of safety precautions were implemented during the trial,
including social distancing, newly-installed plexiglass barriers, and a variety of sanitizing
procedures. Spectators watched the trial via closed circuit television in an adjacent courtroom.The investigation was conducted by the FBI, the Illinois State Police Metro-East Crime Laboratory,
the Alton Police Department, and the East St. Louis Police Department. The case was
prosecuted by Assistant United States Attorneys Laura V. Reppert and Christopher R. Hoell.Jamestown Man Pleads Guilty to Selling FentanylRead 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 Alfredo Diaz a/k/a Dindo, 57, of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possessing with intent to distribute, and distributing, fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Michael J. Adler and Evan K. Glaberson, who are handling the case, stated that in April 2020, investigators conducted three controlled purchases of fentanyl from the defendant. On May 13, 2020, searches were conducted of both Diaz’s residence as well as a storage unit he used. In the residence, investigators located approximately $8,000 in U.S. currency as well as drug distribution paraphernalia, including glassine bags and a digital scale. In the storage unit, a black 2016 Cadillac SRX sport utility vehicle registered to the defendant, as well as approximately $44,075 U.S. currency, was seized. The vehicle also contained a digital scale and packaging material.
The plea is the result of an investigation by the Jamestown Police Department and the Jamestown Metro Drug Task Force, under the direction of Acting Jamestown Police Chief Timothy Jackson; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone; the Ellicott Police Department, under the direction of Chief William Ohnmeiss Jr.; and the New York State Police, under the direction of Major James Hall.
Sentencing is scheduled for March 8, 2021, before Judge Vilardo.
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Jamestown Felon Arrested on Gun Charge After Traffic StopRead 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 Walter S. Duprey a/k/a Spoons a/k/a Waldo, 36, of Jamestown, NY, was arrested and charged by criminal complaint with being a felon in possession of ammunition. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the complaint, on April 30, 2020, the defendant and two other individuals were pulled over in a vehicle by Jamestown Police Officers. During the traffic stop, it was determined that the license plates on the vehicle actually belonged to another vehicle. In addition, officers observed three hypodermic needles in the driver side door panel in plain view. After stepping out of the vehicle at the request of officers, Duprey was patted down for weapons. Officers retrieved a green leafy substance from the defendant’s pocket, along with a 12 gauge shotshell. A search of the vehicle recovered a 12 gauge shotgun, ammunition, several digital scales, a red ski mask, a quantity of heroin, several cell phones, two laptop computers, an I-Pad, a bag containing flashlights, a paintball mask, and black duct tape. As a result, officers believed that the defendant and the two other individuals either had conducted an armed home invasion or were about to conduct an armed home invasion.
Duprey was convicted in 2005, 2006, and 2012 of felony charges in Dunkirk City Court, and as a result is legally prohibited from possessing ammunition.
The complaint is the result of an investigation by the Jamestown Police Department, under the direction of Acting Chief Timothy Jackson, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Houston man charged with defrauding investors in oil and gas dealsRead the Press Release
HOUSTON – Authorities have arrested a 55-year-old Houston man on charges of operating a scheme to defraud investors in oil and gas transactions, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the 12-count indictment against Arael Doolittle Oct. 22. He is expected to make his initial appearance today before U.S. Magistrate Judge Dena H. Palermo at 2 p.m.
The indictment alleges Doolittle operated Sariel Petroleum LLC and Sariel Enterprises LLC. He is alleged to have taken in excess of $1.2 million from 21 investors under false pretenses through his companies. Doolittle falsely represented he had the necessary pre-existing relationships with major refiners and petroleum product suppliers to purchase fuels for resale to his customers, according to the charges.
The indictment further alleges Doolittle provided falsified documents to the investors to further assure them of the legitimacy of his representations.
Doolittle is charged with eight counts of wire fraud and four counts of engaging in monetary transactions in criminally derived funds. Wire fraud carries a potential 20-year-maximum sentence and a possible $250,000 maximum fine. If convicted of any of the other four counts, he faces the same fines and up to 10 years imprisonment.
The FBI conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Holyoke Man Pleads Guilty to Heroin DistributionRead the Press Release
BOSTON – A Holyoke man pleaded guilty in federal court in Springfield today to distributing heroin.
Jose Rodriguez, 34, pleaded guilty to distributing and possessing with intent to distribute heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Feb. 5, 2021.
Rodriguez sold heroin on Sept. 19 and 27, 2018 in Holyoke. Rodriguez also possessed and intended to distribute 100 or more grams of heroin on July 6, 2019 in Holyoke. The charges were the result of an investigation into heroin trafficking in Holyoke.
The charge of distributing and possessing with intent to distribute heroin provides for a sentence of up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manny Febo made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
Harrison County man sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Frank Horner, III, of Clarksburg, West Virginia, was sentenced today to 70 months of incarceration for a drug charge, U.S. Attorney Bill Powell announced.
Horner, age 28, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in June 2020. Horner admitted to having methamphetamine in October 2019 in Harrison County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Probation Office investigated.
U.S. District Judge Thomas S. Kleeh presided.
Guilford Building Restoration Business Owner Pleads Guilty to Tax EvasionRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Christopher Parker, of Guilford, Vermont, waived indictment and pleaded guilty today to a one-count information charging him with tax evasion. U.S. District Judge Christina Reiss ordered Parker released on conditions pending sentencing on February 15, 2021.
According to court records, Parker is the sole proprietor of Christopher M. Parker LLC, a building restoration business based in Guilford, Vermont. His business generated approximately $3.35 million in gross revenues between 2014 and 2018. However, Parker reported only approximately $2.5 million in gross revenues to the Internal Revenue Service on his income tax returns. As a result, Parker avoided paying roughly $281,000 in federal income taxes due and owing for that period.
Tax evasion is punishable by up to five years of imprisonment and a fine of up to $100,000. Parker’s sentence will be determined by the Court with reference to federal sentencing guidelines.
United States Attorney Christina E. Nolan commended the investigative efforts of the Internal Revenue Service’s Criminal Investigation Division.
The United States is represented in this matter by Assistant U.S. Attorney Spencer Willig. Jerome F. O’Neill of Gravel & Shea PC represents Parker.
Government Contractor Agrees to Plead Guilty to Fraudulently Billing Federal and State Construction ContractsRead the Press Release
BOSTON – VJ Associates, a group of companies based in Hicksville, N.Y., has agreed to pay $3.13 million to resolve criminal and civil charges relating to a long-running overbilling scheme involving numerous government-funded construction projects in Massachusetts and New York.
VJ Associates provided sub-contracted estimating and scheduling services for construction projects funded with state and federal money. Services included forecasting costs and resources to complete a project, and estimating the time necessary to complete milestones in a project. VJ Associates employees frequently billed government contracts hourly for their time. The U.S. Department of Transportation (DOT), the State of New York and the Commonwealth of Massachusetts funded many projects on which VJ Associates worked.
“VJ Associates defrauded government-funded infrastructure projects by billing for bogus hours, adding hundreds of thousands in unnecessary costs to projects on which it worked,” said United States Attorney Andrew E. Lelling. “Our office is committed to protecting taxpayer dollars and the integrity of federally funded infrastructure programs, and today’s resolution is another example of how we will continue to use our criminal and civil authority to ensure that government contractors are honest, upstanding corporations that do not waste federal monies.”
“This investigation illustrates our commitment to rooting-out illicit business practices aimed at defrauding the Government on public infrastructure projects for commercial gain,” said Douglas Shoemaker, Regional Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General (DOT OIG). “We will continue to work with our Federal, State, and local law enforcement and prosecutorial partners to investigate and hold accountable those who perpetrate fraud against the American taxpayer.”
“VJ Associates was hired by the Port Authority to assist with critical public infrastructure projects — and badly over-billed the agency. The Port Authority Office of Inspector General investigated, and today VJ Associates has agreed to plead guilty in federal court; to pay millions in fines and restitution; and to be debarred from doing business with a wide range of government agencies. Padding the bill is stealing from the public we serve, and today’s federal guilty plea makes it crystal clear — contractors that over-bill the Port Authority will face severe consequences,” said Port Authority of New York and New Jersey Acting Inspector General Michael Farbiarz.
In a criminal information filed today, the United States charges that, from at least January 2007 through August 2018, VJ Associates, Inc. of Suffolk—the largest and original VJ Associates entity—conspired with other VJ Associates entities and employees to pad bogus time charges on government construction contracts funded by the DOT, the State of New York and the Commonwealth of Massachusetts. As a result, the VJ Associates entities improperly received more than $1.2 million in state and federal taxpayer money. The improper billing included, for example, hours employees spent working on unrelated projects, time spent on administrative tasks and time doing no work. Under pressure from management, employees openly discussed improper billing as “juicing” and “tagging” hours in order to “maximize” bills on government projects and not “leave money on the table.” One employee summed up his billing practices to his colleague as a “shell game” and explained that, when management “gave him a bit of trouble” about how he billed his time, he fraudulently maximized his hours billed because “what the hell,” management “pay[s] me every two weeks,” and he was “not the boss.”
VJ Associates, Inc. of Suffolk has agreed to plead guilty, to make restitution to the DOT, New York and Massachusetts, and to pay a criminal fine of $530,000.
In addition, all of the VJ Associates entities—VJ Associates Inc. of Suffolk; VJ Associates of New England, Inc.; VJ Associates of New Jersey; and VJ Associates of Washington DC, Inc.—have entered into a civil settlement with the United States resolving allegations that they overbilled government contracts. Under the terms of that settlement, the VJ Associates entities have agreed to pay $2.6 million collectively to the United States and certain states and to permanent debarment from receiving federal funds.
The civil settlement with the United States arose from a lawsuit filed by a whistleblower 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 with the United States, the whistleblower will receive 22.5% of the recovery.
The government’s resolution of this matter illustrates the government’s emphasis on combating fraud related to government-funded transportation projects. 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 Transportation, at 1-800-424-9071.
U.S. Attorney Lelling, Regional DOT-OIG SAC Shoemaker and Port Authority of New York and New Jersey Acting Inspector General Farbiarz made the announcement today. Assistant United States Attorneys Brian M. LaMacchia and Evan Gotlob of Lelling’s Office are handling the matter.
Gorham Man Sentenced to 5 Years Probation for Wire Fraud ConspiracyRead the Press Release
A Gorham man was sentenced yesterday in federal court in Portland for participating in a wire fraud conspiracy, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Nancy Torresen sentenced Michael Barden, 67, to probation for five years. In addition, Judge Torresen held Barden liable for restitution in an amount to be determined at a future proceeding. Barden pleaded guilty to a one-count information charging him with a wire fraud conspiracy on January 31, 2020.
According to information revealed in court, Barden met an individual online and began a virtual romance. Barden never met this individual in person. Beginning in August, this person used credit card accounts illegally obtained to make online purchases from retailers in Maine and elsewhere. Barden would pick up or accept delivery of the merchandise and then sell it through online marketplace websites. He would keep a small share of the proceeds and wire the rest of the proceeds overseas. In addition, he assisted this person in fraudulently purchasing a motor vehicle online by posing as the buyer and using the buyer’s identification to complete the purchase. It is estimated the conspiracy stole between $40,000 and $95,000.
“The defendant in this case was drawn into criminal activity through what he thought was an online relationship,” U.S. Attorney Frank said. “Maine residents need to be wary of any online solicitations for friendships or romances from people they do not know. Scammers overseas are using Mainers to assist in criminal activity that can lead to federal felony convictions for all involved.”
This prosecution was the result of a collaborative investigation conducted by the U.S. Secret Service and the Maine State Police.
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Georgia man sentenced to four life sentences plus 10 years for drug distribution resulting in deathRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terrick Robinson, of Cartersville, Georgia, was sentenced today to life incarceration plus 10 years for drug distribution resulting in death and a myriad of other charges, U.S. Attorney Bill Powell announced.
“This was a horrible series of events. The facts placed a powerful spotlight on the depravity of the drug trade and the extent that those involved will go to conduct their activities. Nothing can bring back Ms. Dubois to her family, but the prosecution and the sentencing sent the only message we can send: these types of crimes will be severely punished. The prosecution is the result of excellent work by law enforcement in multiple jurisdictions and a dedicated prosecution team intent on rendering justice. I once again offer my condolences to the family of Ms. Dubois,” said Powell.
After a nine-day trial in January 2020, a federal jury found Robinson, age 35, guilty of one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances,” one count of “Distribution of Methamphetamine,” one count of “Possession with the Intent to Distribute Methamphetamine – Aiding and Abetting,” one count of “Possession with the Intent to Distribute Cocaine Hydrochloride – Aiding and Abetting,” one count of “Possession with the Intent to Distribute Fentanyl – Aiding and Abetting,” one count of “Use of a Firearm During and in relation to a Drug Trafficking Crime – Aiding and Abetting,” one count of “Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime,” and one count of “Distribution of Fentanyl Resulting in Serious Bodily Injury or Death.”
During the trial, the jury heard testimony that Robinson trafficked and distributed more than 4.5 kilograms of methamphetamine, as well as cocaine hydrochloride and fentanyl, in Marion County and elsewhere from May 2018 to September 2018. He would travel from Georgia to West Virginia, trafficking the drugs from different motel and hotel rooms and other locations. Robinson and his conspirators carried at least three firearms during the drug trafficking crimes.
At one of the motels in Lewis County on August 9, 2018, Robinson distributed fentanyl to Courtney Dubois of Fairmont, West Virginia. That drug, according to a forensic pathologist, was an independent sufficient cause of Courtney Dubois’ death. The jury heard testimony and saw evidence that Robinson took the body of the victim to Georgia, where he dismembered the body and disposed of it at the Bartow County Landfill.
“All too often, drug dealers use guns to further their violent criminal activities and threaten the safety of our communities” stated ATF Special Agent in Charge R. Shawn Morrow, of the Louisville Field Division which includes most of West Virginia. “ATF provides investigative resources that assist in the arrest and successful prosecution of violent criminals like Terrick Robinson. We remain committed to working with our task force partners in arresting these offenders and pursing sentences that are commensurate with their criminal activity.”
“Today, our hearts are with Ms. Dubois’ family,” said Special Agent in Charge Todd Scott, head of the Drug Enforcement Administration’s Louisville Division. “As a father, I can’t even begin to fathom what they must feel, after losing their daughter in such a violent and horrific manner. Those responsible for this heinous crime should expect the full weight of the justice system.”
Robinson was sentenced to life incarceration for each of the following counts: “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances,” “Distribution of Methamphetamine,” “Possession with the Intent to Distribute Methamphetamine – Aiding and Abetting,” and “Distribution of Fentanyl Resulting in Serious Bodily Injury or Death.”
He also was sentenced to 480 months for “Possession with the Intent to Distribute Cocaine Hydrochloride – Aiding and Abetting,” 240 months for “Possession with the Intent to Distribute Fentanyl – Aiding and Abetting,” and 60 months each for “Use of a Firearm During and in relation to a Drug Trafficking Crime – Aiding and Abetting,” and “Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime.” The life sentences will run concurrently, along with the sentences for 480 months and 240 months. Each of the 60-month sentences will run consecutive to one another to total another 10 years of incarceration.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Three Rivers Drug & Violent Crimes Task Force; the West Virginia State Police; The Bartow County, Georgia, Sheriff’s Office; the FBI in Rome, Georgia; and the Georgia Bureau of Investigation investigated.
U.S. District Judge Thomas S. Kleeh presided.
Fresno Man Sentenced to 15 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Edgar Barrera, 31, of Fresno, was sentenced to 15 years in prison today for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court records, on Nov. 10, 2019, Barrera was stopped for a traffic violation in the residential neighborhood near the intersection of Carmen and Winery Avenues in Fresno. During the stop, a New England 12-gauge shotgun was found hidden in the backseat of Barrera’s vehicle. Barrera is a convicted felon with three prior felony convictions for domestic violence.
This case was the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Joseph Barton prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fresno Antiviolence Operation Results in 4 Parolees Charged with Firearms and Drug Trafficking OffensesRead the Press Release
FRESNO, Calif. — As part of an ongoing concerted effort by local, state and federal law enforcement to address the significant uptick in violent crime in the City of Fresno, a federal grand jury returned indictments today against four Fresno County residents with various firearms and drug offenses, U.S. Attorney McGregor W. Scott announced.
“These defendants were all on active parole for prior gun or drug charges— three had ties to criminal gangs, and when arrested, three were in possession of guns and the fourth was in possession of drugs,” said U.S. Attorney Scott. “The U.S. Attorney’s office has focused enforcement efforts against the most violent criminals in our district and will continue to work with federal, state, local, and tribal law enforcement and community partners to reduce crime, save lives, and restore safety to our communities. The bloodshed must stop.”
“The importance of today’s announcement cannot be overstated,” said Fresno County District Attorney Lisa A. Smittcamp. “These indictments not only send a message to criminals that seek to wreak havoc on our communities, but they offer some assurance that our proactive collaboration with our state, local and federal partners is delivering tangible results. As the state continues to reduce accountability for those that would do us harm, our ongoing partnership with the U.S. Attorney’s Office, and their willingness to bring federal prosecutions, will be critical to achieving truth-in-sentencing and, most importantly, justice for victims.”
Reyes Diaz, 26, of Fresno, was charged with possession with intent to distribute methamphetamine and heroin. According to court documents, a parole search of Diaz’s apartment yielded over 2 kilograms of methamphetamine, over 300 grams of heroin, digital scales, and over $11,000 in cash. Diaz is on parole for permitting another to shoot a firearm from a vehicle with a gang enhancement.
Alejandro Chavarria, 33, of Mendota, was charged with being a felon in possession of ammunition. According to court documents, Chavarria was a wanted parolee. Police found Chavarria in Oakhurst coming out of a motel carrying a backpack and duffle bag. When officers approached him, he dropped the backpack, which was found to contain a Glock-style pistol bearing no serial number with an extended magazine loaded with 30 rounds of ammunition. Chavarria ran back into the unit from which he had emerged, and after a stand-off with police, was arrested. The duffle bag contained two disassembled AR‑style rifles, and three 30-round magazines. Chavarria has been convicted of attempted carjacking, drug possession and robbery. He is on parole for robbery.
Shawn Darnyel Matthews, 23, of Clovis, was charged with being a felon in possession of a firearm. According to court documents, Matthews, who was wanted on several felony warrants as well as a parole warrant, was arrested in Fresno, and found to be in possession of a loaded firearm. Matthews admitted to being a West Roy gang member. He is a convicted felon prohibited from possessing firearms or ammunition. According to Fresno County Superior Court records, Matthews has been arrested and released on three occasions in 2020 for domestic violence, pimping, robbery, and assault. He is currently in custody on a federal detainer. Matthews is on parole for assault with a firearm.
Oshay Laray Pullen, 24, of Fresno, was charged with being a felon in possession of ammunition. According to the criminal complaint, on Oct. 21, during a parole-compliance check, a law enforcement officer searched Pullen and found a loaded handgun magazine in his pocket. The magazine contained 10 rounds of .40-caliber ammunition. Inside a car Pullen had been seen exiting, detectives found a .40‑caliber Glock-style unserialized firearm hidden underneath a child’s safety seat. The handgun was loaded with a high‑capacity magazine attached to it. Pullen is prohibited from possessing firearms or ammunition because of his prior criminal record. Pullen is on parole for assault with a firearm.
These cases are the product of investigations by the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Fresno Police Department, the Madera Police Department, the Multi-Agency Gang Enforcement Consortium, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Jessica A. Massey, Kate Schuh, Justin Gilio, and Antonio Pataca are prosecuting the cases.
If convicted, Diaz faces a mandatory minimum statutory penalty of 10 years in prison and a $10 million fine. If convicted, Chavarria, Matthews, and Pullen face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
These cases are also part of Project Guardian, the Department of Justice’s signature initiative to
Four Individuals Plead Guilty in Tequila Cargo Theft RingRead the Press Release
Tampa, Florida – Lemuel Escobar (37, Clermont), Humberto Ramirez (39, Mascotte), Alberto Obaya (48, Plant City), and Vidal Estrada (68, Fort Lauderdale) have each pleaded guilty to charges involving cargo theft of an interstate shipment of goods, and receipt and possession of stolen goods. Each faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, on December 30, 2018, Escobar, Ramirez, Obaya, and Estrada stole a tractor trailer that was parked near U.S. Route 301 in Tampa. The trailer contained cases of Patron tequila, with a value of more than $500,000. The tequila was an interstate shipment from Texas that was en route to a business in Lakeland, Florida. The shipment had not yet reached its final destination when the trailer was stolen.
The trailer was relocated to Thonotosassa where the defendants proceeded to move cases of the tequila from the trailer to a nearby box truck. The box truck was registered to Escobar. Deputies from the Hillsborough County Sheriff’s Office were alerted to the movement of the trailer and, when they arrived on scene, the deputies observed the defendants moving the cases of tequila from the trailer to the box truck. When the deputies commanded the individuals to stop, they fled but were later arrested near the scene. The cases of tequila were recovered.
This case was investigated by the Federal Bureau of Investigation (Cargo Theft Task Force) and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Maria Guzman.
Fort Wayne Man Sentenced to 72 Months in PrisonRead the Press Release
FORT WAYNE—Sean Dunham, age 25, of Fort Wayne, Indiana, was sentenced by United States District Judge Holly A. Brady after his plea of guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Dunham was sentenced to 72 months in prison followed by 3 years of supervised release.
According to documents in this case, in or about June 2019, Dunham possessed a firearm after being previously convicted in 2018 of Possession of a Syringe, a felony, in Allen County Indiana.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of Indiana State Police and the Fort Wayne Police Department. This case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
Former inmate at FCI Hazelton sentenced for manslaughterRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Dean Odeneal, former inmate at FCI Hazelton in Bruceton Mills, West Virginia, was sentenced today to 80 months of incarceration for manslaughter in the death of another inmate, U.S. Attorney Bill Powell announced.
Odeneal, age 30, pled guilty to one count of “Voluntary Manslaughter” in June 2020. Odeneal admitted to stabbing another inmate, killing him, in August 2014.
Odeneal is currently serving time in another federal prison for kidnapping from a 2012 incident in North Dakota. He was sentenced to 144 months in 2013 for that crime. The sentence imposed today, 80 months, will run consecutively to any previous sentence.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Prisons and the FBI investigated.
U.S. District Judge Thomas S. Kleeh presided.
Former University of Michigan Professor Indicted on Charges of Child Exploitation of a MinorRead the Press Release
DETROIT – An indictment was unsealed today charging a former University of Michigan professor with two counts of transporting a minor girl across state lines with the intent to engage in sexual conduct, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Vance Callender, Homeland Security Investigations (HSI).
Charged was Stephen Shipps, 67, of Ann Arbor, Michigan. Shipps was arrested this morning and will be appearing in federal court for his arraignment via Zoom at 1pm today.
From 1989 to 2019, Shipps was employed by the University of Michigan School of Music, Theatre, and Dance as a violin professor. Shipps was also the director of the Strings Preparatory Program, which offered instruction to young musicians ranging from elementary school through high school-age. Shipps retired from the University of Michigan in February 2019. In addition, Shipps served on the faculties of Indiana University, the North Carolina School of the Arts, the University of Nebraska – Omaha, and the Banff Centre in Canada. He also taught students at summer music programs in the Czech Republic, Germany, and the United Kingdom.
The indictment alleges that in February and March of 2002, as well as in June and July of 2002, Shipps knowingly transported a young girl, who was under 18 years old, across state lines, and Shipps intended to engage in sexual activity with her.
“We are committed to the safety and well-being of the most vulnerable members of our society – our children,” stated United States Attorney Matthew Schneider. “For over 20 years, Stephen Shipps had close interactions with many young girls who were gifted musicians. Shipps met with these young girls both inside and outside of the State of Michigan. Our determination and commitment to seeking justice for victims has no time limit.”
“Thanks to the bravery of Shipps’ alleged victims and painstaking investigative work by HSI, this disgraced professor is being held accountable for coercing vulnerable young women into sex, in some cases in the distant past,” said Vance Callender, HSI Special Agent in Charge of Michigan and Ohio. “This case underscores HSI’s commitment to pursue sexual predators and bring some measure of justice to the victims.”
If convicted of both counts, Shipps faces a statutory maximum penalty of 15 years in federal prison.
An indictment is merely a charge and is not evidence of guilt. The defendant in this case is presumed innocent. The burden is on the government to prove guilt beyond a reasonable doubt.
This case is being investigated by agents of HSI with the assistance of the University of Michigan Police Department. Assistant U.S. Attorney Sara Woodward is prosecuting this case.
The investigation into this case is ongoing. We are asking for the public’s help to fully investigate this case. Anyone with any additional information about alleged crimes committed by Stephen Shipps is asked to call the Tip Line that has been set up by the Department of Homeland Security. That number is 866-DHS-TIPS.(866-347-2423). Tips can also be emailed to [email protected]
To hear prepared remarks from United States Attorney Matthew Schneider and Special Agent in Charge Vance Callender visit: https://www.youtube.com/watch?v=9XMksx75J9M&feature=youtu.be
Former Scott County Sheriff’s Deputy Sentenced to Prison on Embezzlement and Wire Fraud ChargesRead the Press Release
ABINGDON, Va.- Jeffery Scott Spicer, a former Scott County Sheriff’s Deputy, who embezzled more than $20,000 of unworked overtime payments from federal grant money allocated to the Sheriff’s Office over the course of three years, and solicited sex and nude photographs from women placed on home electronic monitoring by state court, was sentenced today to 24 months in federal prison. Acting United States Attorney Daniel P. Bubar made the announcement.
Spicer, 52, of Gate City, Va., pleaded guilty in November 2019 to one count of embezzlement and one count of wire fraud.
“Citizens have to be able to trust public officials, but when officers violate that trust, it threatens the rule of law,” Acting United States Attorney Bubar said today. “Today’s sentence shows that corruption simply will not be tolerated. I am grateful for the hard work put into this case by the FBI and the Virginia State Police, as we seek to root out corruption at every level.”
According to court records, between 2014 and 2017, while working as a deputy with the Scott County Sheriff’s Office, Spicer submitted approximately 47 fraudulent requests to be paid for 765 hours of overtime and was, in fact, paid a total of $21,346 in overtime payments to which he was not entitled. These payments were made to Spicer by the Scott County Sheriff’s Office out of funds allotted to certain grants including an asset forfeiture grant and Selective Enforcement DMV grant.
In addition, Spicer owned and operated a company known as Spicewater Home Electronic Monitoring, or Spicewater. Through this company, the defendant was tasked with providing home electronic monitoring services to individuals as ordered by the Scott County, Virginia, Circuit Court. As the owner and operator of Spicewater, Spicer was responsible for ensuring that the individuals ordered to be on home electronic monitoring were in fact being electronically monitored and complying with the terms of electronic monitoring ordered by the Scott County Circuit Court.
Mr. Spicer’s company contracted with another business that actually provided the electronic monitoring services, but the individuals being monitored paid Spicer for the monitoring services. From approximately March 20, 2017, through July 2017, the other business contracted by Spicewater stopped providing home electronic monitoring services. Spicer, however, continued to receive $13,797 in payments from the individuals for the monitoring services even though no such monitoring services were actually being performed. Additionally, Spicer solicited nude photographs via text message and sex from some of the females placed on home electronic monitoring, in exchange for not notifying the court of their non-compliance with the conditions of home electronic monitoring imposed by the court.
Further, Spicer devised a scheme to defraud the Department of Criminal Justice Services. As part of his scheme, Spicer logged onto the Department of Criminal Justice Services’ website with individual law enforcement officer’s usernames and passwords, completed online courses, took online tests on the law enforcement officers’ behalves, and then certified that those individual law enforcement officers had completed the courses when, in fact, they had not. Spicer received monetary payments in exchange for completing the online training courses for some of the law enforcement officers.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia State Police. Assistant United States Attorney Lena Busscher prosecuted the case for the United States.
Former San Angelo Meat Packing Plant Manger Pleads Guilty to Misleading Federal RegulatorsRead the Press Release
A former manager of a San Angelo meat packing plant plead guilty today to misleading federal regulators, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Rean Brooks, 51, plead guilty to misprision of a felony, or concealing knowledge of the actual commission of a felony, before U.S. Magistrate Judge John Parker.
In plea papers, Mr. Brooks, former manager at Texas Packing Company, admitted that he concealed knowledge from federal regulators about the toxic chemical levels at the meat processing facility.
"Federal laws require employers to undertake steps that limit exposure to toxic substances to employees and the public,” said U.S. Attorney Erin Nealy Cox. "Criminals that deceive regulators and skirt the law, potentially putting lives at risk, will be held accountable for their actions.”
According to court documents, Texas Packing Company was operating its refrigeration unit, which contained anhydrous ammonia, in violation of OSHA regulations posing danger to the safety of the plant’s employees.
Anhydrous ammonia is a chemical is used to recirculate fluid in refrigeration systems at facilities such as meat processing plants. Exposure to the chemical in high concentrations is toxic and may result in temporary or permanent blindness; severe burns; corrosive damage to the mouth, throat, and stomach; asphyxiation; and death.
By law, OSHA requires that processing plants that operate with levels of anhydrous ammonia exceeding 10,000 pounds must implement and operate under a Process Safety Management (PSM) program to prevent the catastrophic release of dangerous chemicals and minimize damage in the event accidental release or spills occur.
In 2018, Texas Packing was operating its facility with 16,500 pounds of anhydrous ammonia or approximately 6,000 pounds over the level at which a PSM program is required. An individual reported the hazardous chemical issues to OSHA. The following day, an OSHA inspector traveled to the plant and met with Mr. Brooks and others and provided notice of the complaint.
Texas Packing was informed by a plant safety manager that the implementation of a PSM program would cost approximately $20,000. To avoid the potential costs, an individual at Texas Packing falsified a document with the intent to make OSHA believe the plant was in compliance with regulations. Mr. Brooks then gave that document to an OSHA inspector, also with intent to deceive the inspector.
OSHA subsequently assessed a $615,640 fine against Texas Packing for the plant’s non-compliance related to the anhydrous ammonia levels, lack of PSM program, and for other violations. The fine was one of the top ten largest assessed by OSHA in 2018.
Mr. Brooks faces up to three years in federal prison for his crimes and a fine up to $250,000. A sentencing date has not been set.
This investigation was conducted by United States Department of Labor, Office of Inspector General. Assistant U.S. Attorney Ann Howey is prosecuting this case.
Former Owner and Operator of Jannah Healthcare Sentenced to Prison, Ordered to Pay $1.1M Restitution for Tax EvasionRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District, announced that United States District Judge Joseph P. Stadtmueller has sentenced Latoya N. Joseph, 42, of Milwaukee, Wisconsin, to eight months’ imprisonment and six months’ home confinement for the crime of tax evasion.
Ms. Joseph was the owner and operator of Jannah Home Health Care, LLC (“Jannah”), a home health business providing personal care services primarily to Medicaid recipients in the Milwaukee area. Last year, a federal grand jury returned an indictment charging Ms. Joseph with three counts of tax evasion, in violation of 26 U.S.C. § 7201.
According to the indictment, Ms. Joseph received more than $1.8M from Jannah in 2013, 2014, and 2015, but failed to file federal income tax returns for herself or the business for these years. The indictment alleged that Ms. Joseph willfully attempted to evade and defeat the proper assessment and payment of income taxes totaling approximately $640,000.
Ms. Joseph pleaded guilty to Count Two of the indictment, corresponding with tax year 2014. At sentencing, Judge Stadtmueller described the offense as a serious one and acknowledged the important role of criminal tax prosecutions in protecting the integrity of the voluntary tax compliance system in the United States. Ms. Joseph will be required, as part of her sentence, to serve a term of imprisonment of 8 months, to be followed by three years of supervised release. As part of that supervised release term, Ms. Joseph must serve six months of home confinement. Additionally, as she agreed to do in her plea agreement, she must pay restitution in the amount of $1,124,554.24, representing taxes she evaded for 2013, 2014, and 2015, along with substantial penalties.
“Honest taxpayers deserve to know that Ms. Joseph and others who shirk their tax obligations face time in federal prison,” said U.S. Attorney Krueger. “Her failure to pay income taxes is especially offensive because her business depended on taxpayer-funded programs. I commend the multi-agency effort that brought Ms. Joseph to justice. “
“The sentencing of Latoya Joseph sends an important message today to the American taxpayers. Failing to file tax returns when you operate a business will result in prison time and a bill for taxes, interest, and penalties,” said Acting Special Agent in Charge Todd Martin, Chicago Field Office, IRS Criminal Investigation. “Committing tax fraud deserves to be punished, especially when one is defrauding a government-funded program focused on helping Americans. The IRS and U.S. Attorney’s office will continue to investigate those who are failing to comply with their tax obligations.”
The criminal tax case against Joseph was investigated by the U.S. Internal Revenue Service – Criminal Investigation, the Social Security Administration – Office of Inspector General, and the U.S. Department of Health and Human Services - Office of the Inspector General. This case was prosecuted by Assistant United States Attorney Jonathan H. Koenig.
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414-297-1700
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Former Bank Manager Sentenced for Bank FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Karen E. Ramm, age 54, of Wormleysburg, Pennsylvania, was sentenced on October 28, 2020, to one year plus one day imprisonment followed by two years of supervised release by Chief United States District Court Judge John E. Jones III, for her role in a bank fraud scheme. Chief Judge Jones also ordered Ramm to pay $102,500 in restitution ($21,668.31 to Commerce Bank and $80,831.69 paid to an insurance company).
According to U.S. Attorney David J. Freed, Ramm was a Branch Manager and Loan Officer of Commerce Bank (now known as First National Bank of Pennsylvania, successor to Metro Bank) between 2003 and 2010. Ramm pled guilty to defrauding Commerce Bank by falsely causing a business loan to be extended based on the representation that the borrower, with whom Ramm was in a personal relationship, needed an extension for a business project, when Ramm knew that was not the case. The total net loss was $102,500.
The case was investigated by the Federal Bureau of Investigation with the assistance of the financial institution’s security and investigations staff. Assistant U.S. Attorney James T. Clancy prosecuted the case.
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Florida Man Pleads Guilty to Federal Mail Fraud Conspiracy Charge in Maryland for Scamming Elderly Victims of More Than $1.5 MillionRead the Press Release
Baltimore, Maryland – McArnold Charlemagne, age 33, of Miramar, Florida, pleaded guilty today to a federal mail fraud conspiracy charge, in connection with a scheme in which he defrauded more than 65 elderly victims of more than $1.5 million.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“This defendant was part of a heartless scheme to prey on elderly victims by falsely claiming that a family member needed money to pay legal or other expenses—sometimes pretending to be the victim’s relative to convince them to send cash to the conspirators,” said U.S. Attorney Robert K. Hur. “We will continue to work with our law enforcement partners to bring to justice those who perpetrate these despicable schemes targeting elderly victims. I encourage anyone who believes they may be a victim of financial fraud to contact the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
“McArnold Charlemagne was a member of a criminal conspiracy that took advantage of the emotions and bank accounts of dozens of senior citizens,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “Criminals who prey on, and steal from, seniors should know that their actions carry real consequences, both for their victims and for themselves. The FBI and our law enforcement partners will do everything in our power to find fraudsters and hold them accountable for their crimes.”
According to Charlemagne’s plea agreement, from about January 2018 through at least December 2019, he was part of a conspiracy to defraud elderly victims by persuading them to send thousands of dollars in cash to members of the conspiracy by falsely stating that the money would be used to help the victims’ relatives pay legal or other expenses in connection with crimes and other incidents that had not occurred or that the money would be sent to particular individuals at their addresses, rather than to members of the conspiracy falsely claiming to reside at those addresses. Charlemagne’s co-conspirators telephoned elderly victims throughout the United States, posing as a police officer, lawyer, or other individual, falsely telling the victim that a relative, typically the victim’s grandchild, had been incarcerated in connection with a car accident or traffic stop involving a crime, and needed money—often tens of thousands of dollars—for bail, legal fees, and other expenses.
As detailed in the plea agreement, during the telephone calls, the co-conspirators directed victims to send cash to a particular address via an overnight delivery service. The co-conspirators allegedly even posed as the victims’ relatives to further induce them to send the cash. Once the victims did send money, the co-conspirators called the victims asking for more cash, regularly obtaining tens of thousands of dollars from the retirement savings of victims. To prevent the victims from sharing the information with anyone, the co-conspirators allegedly told the victims that a “gag order” had been placed on the case requiring secrecy, or that the situation was embarrassing for the grandchild and they didn’t want anyone else to know about it.
Charlemagne admitted that, in order to conceal the crime, he and other co-conspirators identified residential locations across the country where the cash should be sent, including in Maryland, Pennsylvania, Delaware, and Florida. Charlemagne and his co-conspirators identified locations that were either vacant or for sale, so that no one would be at those locations at the time of the deliveries, then retrieved the packages of cash when they were delivered. Charlemagne and other co-conspirators recruited and instructed additional people to assist in retrieving packages of cash from specified locations.
For example, Charlemagne flew from Miami, Florida to Washington, D.C. on May 28, 2018, for the purpose of retrieving packages containing fraud proceeds, renting a place to stay in the Baltimore area.
On May 30, 2018, Victim #1, 75 years old from Temperance, Michigan, received a phone call from someone pretending to be her grandson’s lawyer. Victim #1 sent two packages totaling $38,000 to addresses in Baltimore. On June 1, 2018, Charlemagne picked up the second package sent by Victim #1, then traveled to an address on North Payson Street in Baltimore, to pick up an additional package, sent from Victim #2, 78 years old from Salem, Oregon.
Victim #2 was contacted by phone by an individual purporting to be an attorney who told Victim #2 that Victim #2’s granddaughter was a passenger in a car driven by a man that was involved in a car crash and was jailed. The caller told Victim #2 that bail money was needed immediately to secure the release of Victim #2’s granddaughter. The caller warned Victim #2 not to contact anyone due to a “72 hour gag order.” Victim #2 was instructed to overnight mail $10,000 in cash to “John Miller,” who was described as an officer of the court, to an address on North Payson Street in Baltimore. Victim #2 did as instructed. The next day, the caller contacted Victim #2 again and stated that, because marijuana and a gun had been found in the car, an additional $10,000 was required. Victim #2 complied. Victim #2 was contacted again and told to send $20,000 for the victim’s medical bills, and Victim #2 complied. While authorities were not able to recover the first two packages sent by Victim #2, the third mailing containing $20,000 was intercepted by Baltimore Police and returned to Victim #2. Nonetheless, Charlemagne waited at North Payson Street for approximately 30 minutes on the morning of June 1, 2018, before catching a ride to a different address.
On June 6, 2018, Victim #3, an 83-year-old individual from Framingham, Massachusetts, received a phone call from a man who stated Victim #3’s son had caused a car crash by texting and driving and was being arrested. Victim #3 was told to send $8,000 to an address on Whittier Avenue in Baltimore in order to bail Victim #3’s son out. On June 7, 2018, Victim #3 did as instructed and sent the money via FedEx. Later that evening, Victim #3 realized the scam and called the police. The authorities were able to contact FedEx and located the package, which had already arrived in Maryland. The package was returned to Victim #3.
Charlemagne, who was still in the Baltimore area picking up packages containing fraud proceeds, learned that the package had been returned to the sender. Charlemagne contacted another co-conspirator and requested the co-conspirator travel from Miami to Massachusetts in order to wait in front of Victim #3’s house, pretend to be Victim #3, and take the package. Charlemagne texted the co-conspirator the address, a screenshot from Google Maps of where the co-conspirator should park, and a copy of the FedEx tracking number. Charlemagne told the co-conspirator that the co-conspirator needed to fly out that night to arrive in the morning, or that it would be too late. On June 8, 2018, the co-conspirator was caught outside the residence of Victim #3 in Framingham, Massachusetts, and arrested.
As a result of the execution of the scheme to defraud, Charlemagne and others caused at least 65 different victims to send a total of at least $1.5 million.
Charlemagne faces a maximum sentence of 20 years in federal prison for mail fraud conspiracy. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge George L. Russell, III has scheduled sentencing for March 26, 2021, at 1:00 p.m.
The Department of Justice has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sean R. Delaney and Matthew J. Maddox, who are prosecuting the case.
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