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Wednesday 21 October 2020
Michigan man admits to meth chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Shook, of Detroit, Michigan, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Shook, age 32, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Shook admitted to having methamphetamine in August 2020 in Monongalia County.
Shook faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Miami Lawyer Charged with Bank RobberyRead the Press Release
Miami, Florida – Federal prosecutors have charged 41-year-old Miami lawyer Aaron Patrick Honaker with committing a series of bank robberies and attempted bank robberies in South Florida over the past three weeks.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and FBI Miami Special Agent in Charge George L. Piro made the announcement.
The criminal complaint charges Honaker with robbing $1050 from an Aventura bank on October 3, and robbing $800 from a Coral Gables bank on October 10. It also charges him with attempting to rob four banks in Coral Gables around that same time.
According to allegations in the complaint affidavit, Honaker followed a consistent approach during the six robbery attempts, two of which were successful: Honaker would enter each bank alone, walk up to a teller window, and ask the teller for assistance in making a withdrawal. Honaker would pass a note to the bank teller that contained hand-written instructions and warnings, such as “[d]on’t touch the alarm or call the police,” “empty all of your $50s and $100s and put it in an envelope,” and “[k]eep calm, and give me all the money in the drawer, I have a gun.” Honaker would take his note with him on the way out of the bank, says the affidavit.
FBI Miami issued law enforcement bulletins containing descriptions and bank surveillance images of the robber. According to the complaint, on October 20, officers spotted a man matching the FBI bulletin descriptions who appeared to be casing the area around a Coral Gables bank. Officers approached the man and identified him as Honaker.
At the time of his arrest, Honaker had a ball-point hammer tucked in his waistband and carried what appeared to be bank robbery demand notes and instructions on “how-to” commit bank robberies, says the affidavit. The affidavit also describes items that officers found inside Honaker’s backpack, including draft and final versions of two bank robbery notes.
Honaker had his initial appearance today before U.S. Magistrate Judge Alicia M. Otazo-Reyes. His pretrial detention hearing is set for Friday, October 23, at 11:00 a.m., in federal magistrate court in Miami.
FBI Miami investigated this case, with cooperation and assistance from Coral Gables Police Department and Aventura Police Department. Assistant United States Attorneys Michael Gilfarb, Lauren Astigarraga, and Christopher Hudock of the Southern District of Florida are prosecuting this case.
A criminal complaint is merely an accusation containing allegations. A defendant is presumed innocent unless and until found guilty in a court of law.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-mj-03861.
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Mexican nationals get significant sentences for trafficking methRead the Press Release
LAREDO, Texas - Two Mexican nationals have been ordered to federal prison for conspiring to possess with the intent to distribute approximately 14 kilograms of meth, announced U.S. Attorney Ryan K. Patrick.
Julio Cesar Salinas-Saucedo, 40, and his nephew Juan Manuel Lira-Salinas, 32, pleaded guilty Feb. 4.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Lira-Salinas to serve 168 months in federal prison for being a leader-organizer. Salinas-Saucedo received a 60-month sentence for his role in the scheme. Not U.S. citizens, both are expected to face removal proceedings following their terms of imprisonment.
In handing down the sentence, the court noted there was no thought to the people of the United States who would have been harmed by these drugs had their conspiracy been successful. The court also noted Lira-Salinas was the primary leader and organizer of the conspiracy.
On July 28 and July 30, 2017, authorities discovered two suspicious bags among the luggage of Turimex travel buses attempting to travel through the North Laredo Border Patrol checkpoint. The bags contained a total of eight bundles of meth.
The buses had departed the Laredo Turimex station and were bound for Houston.
The investigation led to Salinas-Saucedo and Lira-Salinas as the coordinators of the smuggling events. Both men provided drug-laden bags to couriers who were later arrested and convicted for trafficking meth.
They have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation jointly with assistance of Border Patrol and the Laredo Police Department’s Narcotics Unit. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Meth Dealer, Caught with 80+ Kilos of 100% Pure “Ice” During I-75 Traffic Stop, Pleads Guilty to Drug ChargeRead the Press Release
MACON, Ga. – A man arrested during a routine traffic stop on I-75 carrying more than 80 kilos of “ice” methamphetamine has pleaded guilty to possession with intent to distribute methamphetamine, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Miguel Angel Sanchez Alvarez, 24, of Ceres, California, pleaded guilty to one count of possession with intent to distribute methamphetamine before U.S. District Judge Mark Treadwell. Sanchez Alvarez faces a maximum sentence of life in prison and a $10,000,000 fine. Sanchez Alvarez will be sentenced at 10:00 a.m. on January 13, 2021.
According to the facts the Government entered in federal court, on January 31, 2019, a Lamar County deputy pulled Sanchez Alvarez over on I-75 for a traffic violation. The deputy immediately smelled marijuana emanating from the defendant’s vehicle. A legal search was conducted, and the deputy located a suitcase containing a substantial amount of methamphetamine. The deputy found more methamphetamine under the driver and passenger seats and inside of the vehicle’s trunk. In total, law enforcement recovered 86,903 grams of 100% pure d-Methamphetamine Hydrochloride, also known as “ice.”
“The defendant was pushing a massive amount of deadly ice methamphetamine into our communities, and he will soon face severe consequences for his decision—federal prison without parole,” said U.S. Attorney Charlie Peeler. “I want to thank our local, state and federal law enforcement partners for their efforts in this case.”
The case was investigated by the Lamar County Sheriff’s Office and the DEA. Assistant U.S. Attorney Steven Ouzts is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.McKeesport Felon Charged with Illegal Gun PossessionRead the Press Release
PITTSBURGH - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Jajuan Cash, age 24, as the sole defendant.
According to the Indictment, on October 17, 2020, Cash possessed a firearm, specifically a Glock semi-automatic pistol, knowing he had been previously convicted of Aggravated Assault, in the Court of Common Pleas of Allegheny County, on May 7, 2018. Federal law prohibits felons from possessing firearms.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. However, if it is determined that the defendant has three previous convictions for a violent felony or a serious drug offense, or both, then the term of imprisonment is not less than 15 years to a maximum of life imprisonment. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the Indictment in this case.
The case is being prosecution as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
McAlester Man Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stephen Jack Nelson, age 32, of McAlester, Oklahoma entered a guilty plea to Assault With A Dangerous Weapon With Intent To Commit Bodily Harm In Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151 and 1153, punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about May 26, 2020, within the Eastern District of Oklahoma, in Indian Country, Stephen Jack Nelson, an Indian, did assault T.N. with a dangerous weapon with intent to do bodily harm.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney David Youll represented the United States at the plea hearing.
Maryland Man Facing Federal Charge for Threatening Former Vice President Joe Biden and Senator Kamala HarrisRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed today charging James Dale Reed, age 42, of Frederick, Maryland, on the federal charge of threats against a major candidate for President or Vice President—specifically, former Vice President Joe Biden and Senator Kamala Harris. Reed is currently in state custody and a federal warrant has been lodged as a detainer to ensure his appearance in U.S. District Court at a future date.
The federal charge was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Bo Keane of the United States Secret Service - Baltimore Field Office.
United States Attorney for the District of Maryland Robert K. Hur stated, “We take these types of threats extremely seriously. Such threats to commit violence are illegal and have no place in our democracy, and we will hold accountable those who make them. We are grateful for the assistance of the City of Frederick Police Department and to citizens who provided tips that ultimately led to Mr. Reed’s arrest and these federal charges.”
According to the affidavit filed in support of the criminal complaint, on October 4, 2020, a letter threatening candidates for President and Vice President—specifically, former Vice President Joe Biden and Senator Kamala Harris—was left on the doorstep of a resident in Frederick in the early hours of the morning. The likeness of the subject delivering the letter was captured by a door camera. The resident did not know the subject but had several signs in the yard supporting the candidates threatened in the letter. The letter, which is included in full in the attached Complaint, contains the following passage:
“This is a warning to anyone reading this letter if you are a Biden/Harris supporter you will be targeted. We have a list of homes and addresses by your election signs. We are the ones with those scary guns, We are the ones your children have nightmares about…When We capture Grandpa Biden We will all severely beat him to the point of death as for Mrs. Harris she will be bent over and Anally raped by my rifle barrel. Then for the Grand end the [sic] both will be executed on National Television.”
“The right to vote and peacefully support the candidate of your choice are bedrocks of our democracy,” said U.S. Attorney Hur. “Conduct like this that threatens major candidates and fellow citizens only undermines our democracy and the principles upon which America was founded. We will not tolerate threatening conduct that seeks to intimidate, harass or dissuade Americans from exercising their right to vote.”
Investigators worked to identify the subject in the door camera video and after receiving a citizen tip, focused on Reed. An individual familiar with Reed viewed the door camera likeness and confirmed that person was Reed. On October 13, 2020, Reed was interviewed at his residence and denied leaving a threatening letter or being the individual in the door camera video that was shown to him. Two days later, Reed admitted writing and delivering the letter and was arrested.
If convicted, Reed faces a maximum sentence of five years in federal prison.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the U.S. Secret Service for its work in the investigation and thanked the Frederick Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys James G. Warwick and Cassie Mathias, who are prosecuting the case.
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Man Pleads Guilty to ATM Skimming Fraud that Targeted Navy FederalRead the Press Release
NEWPORT NEWS, Va. – A Romanian man who was extradited to the United States pleaded guilty today to an ATM skimming fraud scheme targeting Navy Federal Credit Union (NFCU) that resulted in hundreds of thousands of dollars in losses.
According to court documents, in 2014 and 2015, Aurel Eremia, 43, and several other conspirators engaged in widespread effort to install portable card reading devices (skimming devices) and micro camera equipment inside and over the mouth of NFCU ATMs card readers and keypads. Eremia and the conspirators used such devices to record and to acquire, without lawful authorization, the personal identification and financial information of NFCU customers.
Conspirators stored and transferred by electronic means the personal identification and financial information fraudulently obtained. Then, conspirators transferred and used the information to gain unauthorized access to bank and credit accounts belonging to NFCU customers by, among other things, re-encoding account numbers onto the magnetic strips of other cards, including gift cards. The re-encoded cards, in combination with the corresponding PINs, were used to make unauthorized withdrawals and transfers from the compromised NFCU accounts, in the Eastern District of Virginia and elsewhere. The conspiracy resulted in hundreds of thousands of dollars in losses and other conspirators have been convicted and sentenced.
Eremia pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft. He faces a maximum penalty of 30 years in prison on the conspiracy charge, and a mandatory consecutive term of 2 years in prison on the aggravated identity theft charge. Eremia is scheduled to be sentenced on March 4, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and Jerald W. Page, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea.
Assistant U.S. Attorneys Brian Samuels and Kaitlin Cooke are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-63.
Lumberton Man Sentenced to 14 Years Imprisonment for Firearms and Drug CrimesRead the Press Release
RALEIGH, N.C. – A Lumberton man was sentenced today to 168 months in prison for possessing with the intent to distribute cocaine and possessing multiple firearms as a convicted felon.
According to court documents, Jammie Smith, 37, possessed with the intent to distribute a quantity of cocaine and multiple firearms on February 8, 2018. As part of a drug investigation, law enforcement executed a search warrant at Smith’s home and recovered a .38 caliber handgun, 7.62 caliber rifle, a quantity of cocaine, digital scales, and other drug paraphernalia.
On September 12, 2019, a concerned citizen informed law enforcement that Smith was in possession of firearms and illegal drugs. Law enforcement observed Smith at the back of his mother’s residence. Behind the residence, near an air conditioning unit, law enforcement recovered a .380 caliber handgun, a stolen 9mm handgun, and a quantity of cocaine. At the time of the offenses, Smith was a convicted felon and prohibited from possessing firearms.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Lumberton Police Department investigated the case and Assistant U.S. Attorney Chad E. Rhoades prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-166-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Justice Department Announces Global Resolution of Criminal and Civil Investigations with Opioid Manufacturer Purdue Pharma and Civil Settlement with Members of the Sackler FamilyRead the Press Release
Today, the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP (Purdue), and a civil resolution of its civil investigation into individual shareholders from the Sackler family. The resolutions with Purdue are subject to the approval of the bankruptcy court.
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “With criminal guilty pleas, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”
“Today’s resolution is the result of years of hard work by the FBI and its partners to combat the opioid crisis in the U.S.,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Purdue, through greed and violation of the law, prioritized money over the health and well-being of patients. The FBI remains committed to holding companies accountable for their illegal and inexcusable activity and to seeking justice, on behalf of the victims, for those who contributed to the opioid crisis.”
“The opioid epidemic remains a significant public health challenge that impacts the lives of men and women across the country,” said Gary L. Cantrell Deputy Inspector General for Investigations at the U.S. Department of Health and Human Services’ Office of Inspector General. “Unfortunately, Purdue’s reckless actions and violation of the law senselessly risked patients’ health and well-being. With our law enforcement partners, we will continue to combat the opioid crisis, including holding the pharmaceutical industry and its executives accountable.”
“This resolution closes a particularly sad chapter in the ongoing battle against opioid addiction,” said Drug Enforcement Administration (DEA) Assistant Administrator Tim McDermott. “Purdue Pharma actively thwarted the United States’ efforts to ensure compliance and prevent diversion. The devastating ripple effect of Purdue’s actions left lives lost and others addicted. DEA will continue to work tirelessly with our partners and the pharmaceutical industry to address the damage that has been done, and bring an end to this epidemic that has gripped the nation for far too long.”
Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute. The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and, as further explained below, the department is willing to credit the value conferred by the company to State and local governments under the department’s anti-piling on and coordination policy. Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act. Separately, the Sackler family has agreed to pay $225 million in damages to resolve its civil False Claims Act liability.
The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.
While the global resolution with the company is subject to approval by the bankruptcy court in the Southern District of New York, one important condition in the resolution is that the company would cease to operate in its current form and would instead emerge from bankruptcy as a public benefit company (PBC) owned by a trust or similar entity designed for the benefit of the American public, to function entirely in the public interest. Indeed, not only will the PBC endeavor to deliver legitimate prescription drugs in a manner as safe as possible, but it will aim to donate, or provide steep discounts for, life-saving overdose rescue drugs and medically assisted treatment medications to communities, and the proceeds of the trust will be directed toward State and local opioid abatement programs. Based on the value that would be conferred to State and local governments through the PBC, the department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount. The department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC so that its public health goals can be best accomplished.
The Criminal Pleas
As part of the plea, Purdue will admit that from May 2007 through at least March 2017, Purdue conspired to defraud the United States by impeding the lawful function of the DEA by representing to the DEA that Purdue maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids and by reporting misleading information to the DEA to boost Purdue’s manufacturing quotas. The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion. The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.
In addition, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute. Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products. Similarly, from approximately April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.
The Civil Settlements
The department’s civil settlements resolve the United States’ claims as to both Purdue and its individual shareholders, members of the Sackler family.
The civil settlement with Purdue provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion. This settlement resolves allegations that from 2010 to 2018, Purdue caused false claims to be submitted to federal health care programs, specifically Medicare, Medicaid, TRICARE, the Federal Employees Health Benefits Program, and the Indian Health Service. The government alleged that Purdue promoted its opioid drugs to health care providers it knew were prescribing opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion. For example, Purdue learned that one doctor was known by patients as “the Candyman” and was prescribing “crazy dosing of OxyContin,” yet Purdue had sales representatives meet with the doctor more than 300 times. It also resolves the government’s allegations that Purdue engaged in three different kickback schemes to induce prescriptions of its opioids. First, Purdue paid certain doctors ostensibly to provide educational talks to other health care professionals and serve as consultants, but in reality to induce them to prescribe more OxyContin. Second, Purdue paid kickbacks to Practice Fusion, as described above. Third, Purdue entered into contracts with certain specialty pharmacies to fill prescriptions for Purdue’s opioid drugs that other pharmacies had rejected as potentially lacking medical necessity.
Under a separate civil settlement, individual members of the Sackler family will pay the United States $225 million arising from the alleged conduct of Dr. Richard Sackler, David Sackler, Mortimer D.A. Sackler, Dr. Kathe Sackler, and Jonathan Sackler (the Named Sacklers). This settlement resolves allegations that, in 2012, the Named Sacklers knew that the legitimate market for Purdue’s opioids had contracted. Nevertheless, they requested that Purdue executives recapture lost sales and increase Purdue’s share of the opioid market. The Named Sacklers then approved a new marketing program beginning in 2013 called “Evolve to Excellence,” through which Purdue sales representatives intensified their marketing of OxyContin to extreme, high-volume prescribers who were already writing “25 times as many OxyContin scripts” as their peers, causing health care providers to prescribe opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion.
The civil settlement also resolves the government’s allegations that from approximately 2008 to 2018, at the Named Sacklers’ request, Purdue transferred assets into Sackler family holding companies and trusts that were made to hinder future creditors, and/or were otherwise voidable as fraudulent transfers.
Today’s resolution does not resolve claims that states may have against Purdue or members of the Sackler family, nor does it impede the debtors’ ability to recover any fraudulent transfers.
Today’s announcement was made by Deputy Attorney General Jeffrey A. Rosen; Acting Assistant Attorney General of the Civil Division Jeffrey Clark; U.S. Attorney for the District of Vermont Christina Nolan; and First Assistant U.S. Attorney for the District of New Jersey Rachael Honig. The criminal investigation was conducted by the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the FBI’s Washington, D.C. and Newark Field Offices, with assistance by DEA. The civil settlements were handled by the Fraud Section of the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, with assistance from the Department of Health and Human Services, Office of General Counsel and Office of Counsel to the Inspector General; the Defense Health Agency; and the Office of Personnel Management. The Purdue bankruptcy matter is being handled by the U.S. Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
Justice Department Announces Global Resolution of Criminal and Civil Investigations with Opioid Manufacturer Purdue Pharma and Civil Settlement with Members of the Sackler FamilyRead the Press Release
Today, the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP (Purdue), and a civil resolution of its civil investigation into individual shareholders from the Sackler family. The resolutions with Purdue are subject to the approval of the bankruptcy court.
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “With criminal guilty pleas, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”
“Today’s resolution is the result of years of hard work by the FBI and its partners to combat the opioid crisis in the U.S.,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Purdue, through greed and violation of the law, prioritized money over the health and well-being of patients. The FBI remains committed to holding companies accountable for their illegal and inexcusable activity and to seeking justice, on behalf of the victims, for those who contributed to the opioid crisis.”
“The opioid epidemic remains a significant public health challenge that impacts the lives of men and women across the country,” said Gary L. Cantrell Deputy Inspector General for Investigations at the U.S. Department of Health and Human Services’ Office of Inspector General. “Unfortunately, Purdue’s reckless actions and violation of the law senselessly risked patients’ health and well-being. With our law enforcement partners, we will continue to combat the opioid crisis, including holding the pharmaceutical industry and its executives accountable.”
“This resolution closes a particularly sad chapter in the ongoing battle against opioid addiction,” said Drug Enforcement Administration (DEA) Assistant Administrator Tim McDermott. “Purdue Pharma actively thwarted the United States’ efforts to ensure compliance and prevent diversion. The devastating ripple effect of Purdue’s actions left lives lost and others addicted. DEA will continue to work tirelessly with our partners and the pharmaceutical industry to address the damage that has been done, and bring an end to this epidemic that has gripped the nation for far too long.”
Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute. The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and, as further explained below, the department is willing to credit the value conferred by the company to State and local governments under the department’s anti-piling on and coordination policy. Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act. Separately, the Sackler family has agreed to pay $225 million in damages to resolve its civil False Claims Act liability.
The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.
While the global resolution with the company is subject to approval by the bankruptcy court in the Southern District of New York, one important condition in the resolution is that the company would cease to operate in its current form and would instead emerge from bankruptcy as a public benefit company (PBC) owned by a trust or similar entity designed for the benefit of the American public, to function entirely in the public interest. Indeed, not only will the PBC endeavor to deliver legitimate prescription drugs in a manner as safe as possible, but it will aim to donate, or provide steep discounts for, life-saving overdose rescue drugs and medically assisted treatment medications to communities, and the proceeds of the trust will be directed toward State and local opioid abatement programs. Based on the value that would be conferred to State and local governments through the PBC, the department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount. The department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC so that its public health goals can be best accomplished.
The Criminal Pleas
As part of the plea, Purdue will admit that from May 2007 through at least March 2017, Purdue conspired to defraud the United States by impeding the lawful function of the DEA by representing to the DEA that Purdue maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids and by reporting misleading information to the DEA to boost Purdue’s manufacturing quotas. The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion. The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.
In addition, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute. Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products. Similarly, from approximately April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.
The Civil Settlements
The department’s civil settlements resolve the United States’ claims as to both Purdue and its individual shareholders, members of the Sackler family.
The civil settlement with Purdue provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion. This settlement resolves allegations that from 2010 to 2018, Purdue caused false claims to be submitted to federal health care programs, specifically Medicare, Medicaid, TRICARE, the Federal Employees Health Benefits Program, and the Indian Health Service. The government alleged that Purdue promoted its opioid drugs to health care providers it knew were prescribing opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion. For example, Purdue learned that one doctor was known by patients as “the Candyman” and was prescribing “crazy dosing of OxyContin,” yet Purdue had sales representatives meet with the doctor more than 300 times. It also resolves the government’s allegations that Purdue engaged in three different kickback schemes to induce prescriptions of its opioids. First, Purdue paid certain doctors ostensibly to provide educational talks to other health care professionals and serve as consultants, but in reality to induce them to prescribe more OxyContin. Second, Purdue paid kickbacks to Practice Fusion, as described above. Third, Purdue entered into contracts with certain specialty pharmacies to fill prescriptions for Purdue’s opioid drugs that other pharmacies had rejected as potentially lacking medical necessity.
Under a separate civil settlement, individual members of the Sackler family will pay the United States $225 million arising from the alleged conduct of Dr. Richard Sackler, David Sackler, Mortimer D.A. Sackler, Dr. Kathe Sackler, and Jonathan Sackler (the Named Sacklers). This settlement resolves allegations that, in 2012, the Named Sacklers knew that the legitimate market for Purdue’s opioids had contracted. Nevertheless, they requested that Purdue executives recapture lost sales and increase Purdue’s share of the opioid market. The Named Sacklers then approved a new marketing program beginning in 2013 called “Evolve to Excellence,” through which Purdue sales representatives intensified their marketing of OxyContin to extreme, high-volume prescribers who were already writing “25 times as many OxyContin scripts” as their peers, causing health care providers to prescribe opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion.
The civil settlement also resolves the government’s allegations that from approximately 2008 to 2018, at the Named Sacklers’ request, Purdue transferred assets into Sackler family holding companies and trusts that were made to hinder future creditors, and/or were otherwise voidable as fraudulent transfers.
Today’s resolution does not resolve claims that states may have against Purdue or members of the Sackler family, nor does it impede the debtors’ ability to recover any fraudulent transfers.
Today’s announcement was made by Deputy Attorney General Jeffrey A. Rosen; Acting Assistant Attorney General of the Civil Division Jeffrey Clark; U.S. Attorney for the District of Vermont Christina Nolan; and First Assistant U.S. Attorney for the District of New Jersey Rachael Honig. The criminal investigation was conducted by the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the FBI’s Washington, D.C. and Newark Field Offices, with assistance by the DEA and the U.S. Attorney’s Office for the Northern District of Ohio. The civil settlements were handled by the Fraud Section of the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, with assistance from the Department of Health and Human Services, Office of General Counsel and Office of Counsel to the Inspector General; the Defense Health Agency; and the Office of Personnel Management. The Purdue bankruptcy matter is being handled by the U.S. Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
Justice Department Announces Global Resolution of Criminal and Civil Investigations with Opioid Manufacturer Purdue Pharma and Civil Settlement with Members of the Sackler FamilyRead the Press Release
Today, the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP (Purdue), and a civil resolution of its civil investigation into individual shareholders from the Sackler family. The resolutions with Purdue are subject to the approval of the bankruptcy court.
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “With criminal guilty pleas, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”
“Today’s resolution is the result of years of hard work by the FBI and its partners to combat the opioid crisis in the U.S.,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Purdue, through greed and violation of the law, prioritized money over the health and well-being of patients. The FBI remains committed to holding companies accountable for their illegal and inexcusable activity and to seeking justice, on behalf of the victims, for those who contributed to the opioid crisis.”
“The opioid epidemic remains a significant public health challenge that impacts the lives of men and women across the country,” said Gary L. Cantrell Deputy Inspector General for Investigations at the U.S. Department of Health and Human Services’ Office of Inspector General. “Unfortunately, Purdue’s reckless actions and violation of the law senselessly risked patients’ health and well-being. With our law enforcement partners, we will continue to combat the opioid crisis, including holding the pharmaceutical industry and its executives accountable.”
“This resolution closes a particularly sad chapter in the ongoing battle against opioid addiction,” said Drug Enforcement Administration (DEA) Assistant Administrator Tim McDermott. “Purdue Pharma actively thwarted the United States’ efforts to ensure compliance and prevent diversion. The devastating ripple effect of Purdue’s actions left lives lost and others addicted. DEA will continue to work tirelessly with our partners and the pharmaceutical industry to address the damage that has been done, and bring an end to this epidemic that has gripped the nation for far too long.”
Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute. The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and, as further explained below, the department is willing to credit the value conferred by the company to State and local governments under the department’s anti-piling on and coordination policy. Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act. Separately, the Sackler family has agreed to pay $225 million in damages to resolve its civil False Claims Act liability.
The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.
While the global resolution with the company is subject to approval by the bankruptcy court in the Southern District of New York, one important condition in the resolution is that the company would cease to operate in its current form and would instead emerge from bankruptcy as a public benefit company (PBC) owned by a trust or similar entity designed for the benefit of the American public, to function entirely in the public interest. Indeed, not only will the PBC endeavor to deliver legitimate prescription drugs in a manner as safe as possible, but it will aim to donate, or provide steep discounts for, life-saving overdose rescue drugs and medically assisted treatment medications to communities, and the proceeds of the trust will be directed toward State and local opioid abatement programs. Based on the value that would be conferred to State and local governments through the PBC, the department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount. The department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC so that its public health goals can be best accomplished.
The Criminal Pleas
As part of the plea, Purdue will admit that from May 2007 through at least March 2017, Purdue conspired to defraud the United States by impeding the lawful function of the DEA by representing to the DEA that Purdue maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids and by reporting misleading information to the DEA to boost Purdue’s manufacturing quotas. The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion. The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.
In addition, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute. Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products. Similarly, from approximately April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.
The Civil Settlements
The department’s civil settlements resolve the United States’ claims as to both Purdue and its individual shareholders, members of the Sackler family.
The civil settlement with Purdue provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion. This settlement resolves allegations that from 2010 to 2018, Purdue caused false claims to be submitted to federal health care programs, specifically Medicare, Medicaid, TRICARE, the Federal Employees Health Benefits Program, and the Indian Health Service. The government alleged that Purdue promoted its opioid drugs to health care providers it knew were prescribing opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion. For example, Purdue learned that one doctor was known by patients as “the Candyman” and was prescribing “crazy dosing of OxyContin,” yet Purdue had sales representatives meet with the doctor more than 300 times. It also resolves the government’s allegations that Purdue engaged in three different kickback schemes to induce prescriptions of its opioids. First, Purdue paid certain doctors ostensibly to provide educational talks to other health care professionals and serve as consultants, but in reality to induce them to prescribe more OxyContin. Second, Purdue paid kickbacks to Practice Fusion, as described above. Third, Purdue entered into contracts with certain specialty pharmacies to fill prescriptions for Purdue’s opioid drugs that other pharmacies had rejected as potentially lacking medical necessity.
Under a separate civil settlement, individual members of the Sackler family will pay the United States $225 million arising from the alleged conduct of Dr. Richard Sackler, David Sackler, Mortimer D.A. Sackler, Dr. Kathe Sackler, and Jonathan Sackler (the Named Sacklers). This settlement resolves allegations that, in 2012, the Named Sacklers knew that the legitimate market for Purdue’s opioids had contracted. Nevertheless, they requested that Purdue executives recapture lost sales and increase Purdue’s share of the opioid market. The Named Sacklers then approved a new marketing program beginning in 2013 called “Evolve to Excellence,” through which Purdue sales representatives intensified their marketing of OxyContin to extreme, high-volume prescribers who were already writing “25 times as many OxyContin scripts” as their peers, causing health care providers to prescribe opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion.
The civil settlement also resolves the government’s allegations that from approximately 2008 to 2018, at the Named Sacklers’ request, Purdue transferred assets into Sackler family holding companies and trusts that were made to hinder future creditors, and/or were otherwise voidable as fraudulent transfers.
Today’s resolution does not resolve claims that states may have against Purdue or members of the Sackler family, nor does it impede the debtors’ ability to recover any fraudulent transfers.
Today’s announcement was made by Deputy Attorney General Jeffrey A. Rosen; Acting Assistant Attorney General of the Civil Division Jeffrey Clark; U.S. Attorney for the District of Vermont Christina Nolan; and First Assistant U.S. Attorney for the District of New Jersey Rachael Honig. The criminal investigation was conducted by the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the FBI’s Washington, D.C. and Newark Field Offices, with assistance by DEA. The civil settlements were handled by the Fraud Section of the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, with assistance from the Department of Health and Human Services, Office of General Counsel and Office of Counsel to the Inspector General; the Defense Health Agency; and the Office of Personnel Management. The Purdue bankruptcy matter is being handled by the U.S. Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
Justice Department Announces Global Resolution of Criminal and Civil Investigations with Opioid Manufacturer Purdue Pharma and Civil Settlement with Members of the Sackler FamilyRead the Press Release
NEWARK, N.J. – Today, the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP (Purdue) and a civil resolution of its civil investigation into individual shareholders from the Sackler family. The resolutions with Purdue are subject to the approval of the bankruptcy court.
“For years, Purdue placed profits over patient safety by marketing and selling its dangerous opioid products to healthcare providers that it had good reason to believe were diverting those opioids to abusers,” Attorney for the United States Rachael A. Honig, District of New Jersey, said. “Purdue deceived the DEA about its measures to prevent such diversion, and it used that deception to gain higher limits on the amount of its products it was legally permitted to sell. Purdue also paid kickbacks to providers to encourage them to prescribe even more of Purdue’s products. Purdue is in bankruptcy now, but it still must be held responsible for these actions. The resolution we announce today does just that.”
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” Deputy Attorney General Jeffrey A. Rosen said. “With criminal guilty pleas, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”
“Purdue’s expansive criminal conduct included paying a kickback in exchange for designing medical software to influence unwitting physicians,” Christina E. Nolan, United States Attorney for the District of Vermont, said. “Purdue’s drug marketers paid to invade the sanctity of the physician-patient relationship so that it could influence medical decisions and increase prescriptions of its most potent opioids. As it is now prepared to plead guilty for a second time to conduct involving unlawful marketing of highly addictive opioid pills, this resolution will serve as a reminder that the company put profits before people during the height of the opioid crisis.”
Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute. The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and, as further explained below, the Department is willing to credit the value conferred by the company to State and local governments under the Department’s anti-piling on and coordination policy. Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act. Separately, the Sackler family has agreed to pay $225 million in damages to resolve its civil False Claims Act liability.
The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.
While the global resolution with the company is subject to approval by the bankruptcy court in the Southern District of New York, one important condition in the resolution is that the company would cease to operate in its current form and would instead emerge from bankruptcy as a public benefit company (PBC) owned by a trust or similar entity designed for the benefit of the American public, to function entirely in the public interest. Indeed, not only will the PBC endeavor to deliver legitimate prescription drugs in a manner as safe as possible, but it will aim to donate, or provide steep discounts for, life-saving overdose rescue drugs and medically assisted treatment medications to communities, and the proceeds of the trust will be directed toward State and local opioid abatement programs. Based on the value that would be conferred to State and local governments through the PBC, the Department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount. The Department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC so that its public health goals can be best accomplished.
The Criminal Pleas
As part of the plea, Purdue will admit that from May 2007 through at least March 2017, Purdue conspired to defraud the United States by impeding the lawful function of the Drug Enforcement Administration (DEA) by representing to the DEA that Purdue maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids and by reporting misleading information to the DEA to boost Purdue’s manufacturing quotas. The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion. The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.
In addition, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute. Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products. Similarly, from approximately April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.
The Civil Settlements
The Department’s civil settlements resolve the United States’ claims as to both Purdue and its individual shareholders, members of the Sackler family.
The civil settlement with Purdue provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion. This settlement resolves allegations that from 2010 to 2018, Purdue caused false claims to be submitted to federal health care programs, specifically Medicare, Medicaid, TRICARE, the Federal Employees Health Benefits Program, and the Indian Health Service. The government alleged that Purdue promoted its opioid drugs to health care providers it knew were prescribing opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion. For example, Purdue learned that one doctor was known by patients as “the Candyman” and was prescribing “crazy dosing of OxyContin,” yet Purdue had sales representatives meet with the doctor more than 300 times. It also resolves the government’s allegations that Purdue engaged in three different kickback schemes to induce prescriptions of its opioids. First, Purdue paid certain doctors ostensibly to provide educational talks to other health care professionals and serve as consultants, but in reality to induce them to prescribe more OxyContin. Second, Purdue paid kickbacks to Practice Fusion, as described above. Third, Purdue entered into contracts with certain specialty pharmacies to fill prescriptions for Purdue’s opioid drugs that other pharmacies had rejected as potentially lacking medical necessity.
Under a separate civil settlement, individual members of the Sackler family will pay the United States $225 million arising from the alleged conduct of Dr. Richard Sackler, David Sackler, Mortimer D.A. Sackler, Dr. Kathe Sackler, and Jonathan Sackler (the Named Sacklers). This settlement resolves allegations that, in 2012, the Named Sacklers knew that the legitimate market for Purdue’s opioids had contracted. Nevertheless, they requested that Purdue executives recapture lost sales and increase Purdue’s share of the opioid market. The Named Sacklers then approved a new marketing program beginning in 2013 called “Evolve to Excellence,” through which Purdue sales representatives intensified their marketing of OxyContin to extreme, high-volume prescribers who were already writing “25 times as many OxyContin scripts” as their peers, causing health care providers to prescribe opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion.
The civil settlement also resolves the government’s allegations that from approximately 2008 to 2018, at the Named Sacklers’ request, Purdue transferred assets into Sackler family holding companies and trusts that were made to hinder future creditors, and/or were otherwise voidable as fraudulent transfers.
Today’s resolution does not resolve claims that States may have against Purdue or members of the Sackler family, nor does it impede the Debtors’ ability to recover any fraudulent transfers.
Today’s announcement was made by Deputy Attorney General Rosen; Acting Assistant Attorney General of the Civil Division Clark; United States Attorney for the District of Vermont Nolan; and First Assistant U.S. Attorney for the District of New Jersey Honig. The criminal investigation was conducted by the United States Attorney’s Offices for the Districts of New Jersey and Vermont, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the Federal Bureau of Investigation’s Washington, DC and Newark Field Offices, with assistance by DEA. The civil settlements were handled by the Fraud Section of the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the United States Attorney’s Offices for the Districts of New Jersey and Vermont, with assistance from the Department of Health and Human Services, Office of General Counsel and Office of Counsel to the Inspector General; the Defense Health Agency; and the Office of Personnel Management. The Purdue bankruptcy matter is being handled by the United States Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section.
The government is represented in the District of New Jersey by Deputy Chief of the Criminal Division Nicholas Grippo, Chief of the Health Care Fraud Unit Lee M. Cortes Jr., Chief of the Opioids Unit Melissa Wangenheim, and assistant U.S. Attorneys Stephen Ferketic, Sean Sherman, Marihug P. Cedeño and Nicole Mastropieri.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
Jackson Man Sentenced under Project EJECT for Illegally Possessing FirearmsRead the Press Release
Jackson, Miss. – Dallas Smith, 59, of Jackson, was sentenced today by U.S. District Carlton W. Reeves to time-served, or 14 months, and 3 years of supervised release for illegally possessing firearms, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michele Sutphin with the Federal Bureau of Investigation. Smith was also sentenced to pay a fine of $1,000.
On September 11, 2017, officers with the Jackson Police Department were dispatched to an apartment complex on a shooting complaint. Based upon the statements of eyewitnesses, they stopped a vehicle in which Dallas Smith was a passenger. Upon questioning, Smith admitted to possessing the pistol and rifle found in the vehicle. Smith also admitted to discharging the firearms at the apartment complex.
Smith has a forgery conviction in Madison County and a grand larceny conviction in Rankin County, and it is illegal for him to possess a firearm. He pled guilty before Judge Reeves on January 22, 2020.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lynn Murray.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Justice Department Announces Global Resolution of Criminal and Civil Investigations with Opioid Manufacturer Purdue PharmaRead the Press Release
Today, the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP. The resolutions with Purdue are subject to the approval of the bankruptcy court.
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “With criminal convictions, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”
“Purdue’s expansive criminal conduct included paying a kickback in exchange for designing medical software to influence unwitting physicians,” said Christina E. Nolan, United States Attorney for the District of Vermont. “Purdue’s drug marketers paid to invade the sanctity of the physician-patient relationship so that it could influence medical decisions and increase prescriptions of its most potent opioids. As a Purdue entity is now prepared to plead guilty for a second time to conduct involving unlawful marketing of highly addictive opioid pills, this resolution will serve as a reminder that the company put profits before people during the height of the opioid crisis.”
“For years, Purdue placed profits over patient safety by marketing and selling its dangerous opioid products to healthcare providers that it had good reason to believe were diverting those opioids to abusers,” Attorney for the United States Rachael A. Honig, District of New Jersey, said. “Purdue deceived the DEA about its measures to prevent such diversion, and it used that deception to gain higher limits on the amount of its products it was legally permitted to sell. Purdue also paid kickbacks to providers to encourage them to prescribe even more of Purdue’s products. Purdue is in bankruptcy now, but it still must be held responsible for these actions. The resolution we announce today does just that.”
Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute. The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and the Department is willing to credit the value conferred by the company to State and local governments under the Department’s anti-piling on and coordination policy. Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act.
In connection with the District of Vermont investigations, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute. This is the first prosecution in history charging a pharmaceutical company for conspiring with an electronic health records (EHR) company to influence physician prescribing.
From approximately April 2016 through December 2016, Purdue made payments to Practice Fusion, Inc., an EHR company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products—OxyContin, Butrans, and Hysingla. Purdue and Practice Fusion conspired to create clinical decision support (CDS) alerts embedded in medical software to increase extended release opioid (ERO) prescriptions. Purdue’s drug marketers financed the alerts that were presented to physicians as impartial clinical alerts—when in reality they were merely part of a clandestine unlawful marketing scheme. Purdue’s internal marketing documents described the key performance indicator of the program as: “Increase in ERO prescribing.”
As part of the resolution, Purdue will be required to create and host a public and permanent document repository containing documents relating to the charges and alleged civil violations. The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases. Today’s resolution does not resolve claims that states may have against Purdue nor does it impede the Debtors’ ability to recover fraudulent transfers.
The District of Vermont’s investigation was handled by Assistant United States Attorneys Michael P. Drescher and Owen C.J. Foster. The investigation was supported by the HHS Office of Inspector General and the Federal Bureau of Investigation’s field office in Washington, DC, and New York. Vermont Health Care Fraud Investigators George Thabault and Richard Lewis provided significant and critical investigative resources to the Vermont-based team. The District of Vermont worked in close partnership with its colleagues in the District of New Jersey, including Assistant United States Attorneys J. Stephen Ferketic, Sean M. Sherman, Nicholas P. Grippo, and Melissa Wangenheim, Nicole F. Mastropieri, and Marihug P. Cedeno, Consumer Protection Branch Trial Attorneys Gabriel H. Scannapieco, Kara M. Traster, Maryann N. McGuire, Rachel E. Baron, Michael L. Collyer, and Hilary Perkins, and Civil Frauds Trial Attorneys Kristen M. Murphy, Albert P. Mayer, Claire L. Norsetter, Kelley Hauser, Christelle Klovers, and Alicia Bentley. The Purdue bankruptcy matter is being handled by the United States Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section. Purdue is represented by Patrick Fitzgerald of the law firm Skadden, Arps, Slate, Meagher & Flom LLP, and Jeffrey Bucholtz of the law firm King & Spalding.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Inmate at FCI-Hazelton Pleads Guilty to Money Laundering ConspiracyRead the Press Release
PITTSBURGH – Lamar Middleton pled guilty to conspiring to launder drug trafficking proceeds between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Middleton, age 33, pled guilty before United States District Judge J. Nicholas Ranjan. Judge Ranjan scheduled sentencing to occur on February 23, 2021, at 10:00 a.m. Middleton was serving a federal prison sentence at FCI-Hazelton in West Virginia when he committed the crime to which he pled guilty.
The law provides for a maximum sentence of up to 20 years in prison and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Indictment: Man Stole 22 Firearms During Burglary at Kansas PawnshopRead the Press Release
KANSAS CITY, KAN. – A Kansas man was indicted today on federal charges that he stole 22 firearms from a pawnshop in Overland Park, U.S. Attorney Stephen McAllister said.
Darrin Taylor, 54, who is homeless and has been living in Overland Park, is charged with one count of theft from a federally licensed firearms dealer. Taylor is alleged to have burglarized Penguin Pawn & Gun at 10229 West 75th Street in Overland Park, Kan., and taken the guns.
If convicted, he could face a penalty of up to 10 years in federal prison and a fine up to $250,000. The Overland Park Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
OTHER INDICTMENTS
James Pugh, 58, Lawrence, Kan., is charged with one count of bank robbery. The indictment alleges that on Jan. 21, 2020, he robbed the Landmark Bank at 2710 Iowa St. in Lawrence, Kan.
If convicted, he could face up to 20 years in federal prison and a fine up to $250,000. The Lawrence Police Department and the FBI investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Amber Dawn Johnson, 26, Hobbs, N.M., and Angel Estrada, 34, Hobbs, N.M., were charged with one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute cocaine. The defendants are alleged to have transported 38 pounds of methamphetamine and 39 pounds of cocaine to Kansas.
According to court records, on July 16, 2020, the Kansas Highway Patrol stopped two vehicles traveling together near milepost 102 in Chase County, Kan. A trooper found the drugs in one of the cars.
If convicted, the defendants could face a penalty of not less than 10 years in federal prison and a fine up to $10 million on each count. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Cody Justice, 31, Kansas City, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm by a felon. The crimes are alleged to have occurred Sept. 17, 2020, in Wyandotte County, Kan.
If convicted, he could face not less than five years and not more than 40 years in federal prison and a fine up to $5 million on the drug charge, not less than five years and not more than 40 years and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking, and up to 10 years and a fine up to $250,000 on the other firearm charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Michael E. Thomas, 54, is charged with escaping from federal custody at the Grossman Residential Reentry Center in Leavenworth, Kan. The crime is alleged to have occurred March 10, 2020.
If convicted, he could face up to five years in federal prison and a fine up to $250,000. The U.S. Marshal Service investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
IRS Agent Charged with Cocaine DistributionRead the Press Release
NEWARK, N.J. – An IRS supervisory revenue agent was arrested today on charges of conspiracy to distribute cocaine, U.S. Attorney Craig Carpenito announced.
Michael Shelli, 41, of Albany, New York, was arrested at his home by agents of the Drug Enforcement Administration (DEA). He is charged by complaint with one count of conspiracy to distribute five kilograms or more of cocaine and appeared by videoconference today before U.S. Magistrate Judge James B. Clark III and was released on $100,000 unsecured bond.
According to the complaint:
Since March 2020, officials of the DEA have been investigating a drug trafficking organization (DTO) operating in New Jersey and elsewhere. In April 2020, law enforcement identified a residence in Saddle Brook, New Jersey, as a location from which members of the DTO were dealing cocaine. The investigation revealed that Shelli had a courier pick up cocaine from the residence and deliver it to his residence in Albany. Shelli would then repackage the cocaine for sale in the area.
The conspiracy to distribute cocaine charge is punishable by a maximum penalty of life in prison and a fine of up to $10 million.
U.S. Attorney Carpenito credited special agents of the DEA-New York Division and DEA-Albany District Office, under the direction of Special Agent in Charge Raymond Donovan; the U.S. Attorney’s Office for the Northern District of New York, under the direction of Acting U.S. Attorney Antoinette T. Bacon; the office of the Treasury Inspector General for Tax Administration, under the direction of William Kalb; the New York State Police, under the direction of Superintendent Keith M. Corlett; officers of Troop K, Danbury, Connecticut, Police Department, under the direction of Chief Patrick Ridenhour; officers of the Hasbrouck Heights Police Department, under the direction of Chief Michael J. Colaneri; and officers of the Saddle Brook Police Department, under the direction of Chief Robert Kugler, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Naazneen Khan of the U.S. Attorney’s Office Organized Crimes and Gangs Unit in Newark.
Homeless Men Charged with 4 Armed Robberies over 2 Days in August 2020Read the Press Release
PITTSBURGH, PA - Two homeless residents of Pittsburgh, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of robbery, United States Attorney Scott W. Brady announced today.
The four-count Indictment named Elijah Sayon and Rexford Wright, both 23.
According to Indictment, on August 3, 2020, Sayon and Wright robbed a Sunoco gas station on Donner Avenue in Monessen, PA and a Marathon gas station on State Route 51 North in North Belle Vernon, PA. The Indictment further alleges that on August 4, 2020, Sayon and Wright robbed a GetGo on Steubenville Pike in Kennedy Township, PA and a 7-Eleven on Dry Run Road in Monongahela, PA. All four robberies were at gunpoint.
The law provides for a maximum total sentence of not more than 80 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Allegheny County Police Department, Monessen Police Department, and the Monongahela City Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Heroin and Methamphetamine Dealer Who Sold Drugs that Caused Overdose Death Sentenced to 25 YearsRead the Press Release
PLANO, Texas – A 40-year-old Garland, Texas man has been sentenced for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Michael David Miranda pleaded guilty on July 7, 2020, to conspiracy to distribute and possession with intent to distribute methamphetamine and heroin resulting in death and serious bodily injury. Miranda was sentenced to 300 months in federal prison today by U.S. District Judge Sean D. Jordan.
According to information presented in court, beginning in approximately January 2016 and continuing through July 2020, Miranda, also known as “Buddha”, engaged in a conspiracy to manufacture, distribute and possess with the intent to manufacture and distribute methamphetamine and heroin, and in doing so, he caused serious bodily injury to JS and death to BB, individuals who had overdosed on the heroin sold to them by the defendant. Specifically, on January 16, 2019, officers with the Denton Police Department were dispatched to Medical City Hospital in Denton, Texas, regarding a foreign substance being injected into JS, a patient who was being treated in the Intensive Care Unit. Denton PD narcotics detectives were able to establish through hospital surveillance videos that Miranda had entered and then exited JS’s room just prior to hospital staff finding JS unresponsive and not breathing. Hospital staff reported finding a syringe in JS’s IV line. Medical personnel were forced to resuscitate JS with a dose of Narcan, a medicine which counteracts the affects of a heroin overdose. Detectives were later able to establish that Miranda had injected the heroin into JS’s IV line at JS’s request. JS admitted to Detectives to purchasing heroin from Miranda on a regular basis since approximately 2016.
On January 23, 2019, Denton PD narcotics detectives utilized a confidential informant to conduct a buy-bust operation on Miranda. The CI contacted Miranda and asked to purchase heroin. Miranda agreed to meet the CI at the agreed upon location. Once Miranda arrived, officers were able to take him into custody. They found heroin and methamphetamine in his possession.
On January 25, 2019, Detectives interviewed Miranda and he admitted to selling heroin and methamphetamine and that he had brought heroin to JS while she was in the hospital on January 16th. Miranda was able to make bond on his charges and was released from the Denton County Jail.
On October 26, 2019, officers with the Denton Police Department were dispatched to a residence in Denton, Texas, regarding a deceased person. Upon arrival, officers and medics found BB deceased in his bedroom. BB was surrounded by drug paraphernalia, indicating BB had possibly over-dosed on drugs. On January 30, 2020 the Tarrant County Medical Examiner's Office performed an autopsy and determined BB's cause of death was an overdose of an acute mixture of drugs, including heroin, methadone and methamphetamine. Denton PD narcotics detectives were able to establish that Miranda had sold BB the heroin which had caused BB to overdose and die.
On December 10, 2019, Denton PD narcotics detectives utilized a confidential informant to conduct a buy-bust operation on Miranda. The CI contacted Miranda and asked to purchase heroin. Miranda agreed to meet the CI at the agreed upon location. Once Miranda arrived, officers were able to take him into custody. They discovered more heroin in his possession.
Miranda was indicted by a federal grand jury on November 13, 2019, and charged with federal drug trafficking violations.
This case was investigated by the Denton Police Department and the Tarrant County Medical Examiner’s Office and prosecuted by Assistant U.S. Attorney Matthew T. Johnson.
Hercules, California Woman Sentenced to 3 Years of Probation, with 8 Months of Home Confinement, for Her Role in Business Email Compromise Targeting Convent, Louisiana CompanyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that SONOVAH JUDITH HILLMAN, age 29, a resident of Hercules, California, was sentenced today by United States District Judge Jane Triche Milazzo to three years of probation, with eight months of home confinement, after previously pleading guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1343 and 1349. Judge Milazzo also ordered HILLMAN to pay restitution in the amount of $92,007.85 to the victim.
According to court documents, the charges to which HILLMAN pleaded guilty stemmed from her role as a “money mule” in a scheme to victimize Company A, a floating crane and stevedore company headquartered in Convent, Louisiana. HILLMAN and her co-conspirator(s) engaged in a “business email compromise” (BEC) scheme. They accomplished their scheme by obtaining access without authorization to the email accounts of one or more employees of Company A for the purpose of obtaining private data, including usernames, passwords, bank account information, and the content of email accounts through a “phishing” scam. After gaining access to an email account of a Company A employee, the co-conspirator(s) arranged to have emails in the account forwarded to a separate email account under their control. Thereafter, HILLMAN’s co-conspirators registered a domain name similar to Company A’s domain (for example, “Company A” instead of “Company A”) and, pretending to be representatives of Company A, sent emails to Company A’s customers, including Company B. The false emails stated that there had been an audit of Company A’s bank accounts and that Company A’s customers should remit funds owed to Company A to a new bank account.
On about May 10, 2017, HILLMAN’s co-conspirators contacted one of Company A’s customers (Company B) via email and, pretending to be employees of Company A, instructed that Company B should remit funds owed to Company A, approximately $92,007.85, to a Bank of America account that belonged to HILLMAN. After Company B sent the funds to HILLMAN’s account, HILLMAN engaged in a series of transactions over the next five days to transfer the money to others, withdraw over $40,000 in cash, and spend ill-gotten money on personal items, including vacations and airline flights.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security – Homeland Security Investigations and the United States Coast Guard Investigative Service. Assistant United States Attorney Jordan Ginsberg, supervisor of the Public Corruption Unit, was in charge of the prosecution.
Hancock County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Michael Martino, of Weirton, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Martino, age 39, pled guilty to one count of “Receipt of Unregistered Firearm.” Martino admitted to receiving a machine gun that wasn’t registered to him in April 2019 in Hancock County.
Martino 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 Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Department of Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Guilty Plea: 11+ Pounds of Pure Meth Hidden in VehicleRead the Press Release
WICHITA, KAN. – A man from Arizona pleaded guilty today to driving 11.5 pounds of pure methamphetamine from Phoenix to Kansas, U.S. Attorney Stephen McAllister said.
Sergio Martinez-Carlos, 22, Monahan, Ariz., pleaded guilty to one count of interstate travel in furtherance of drug trafficking. In his plea, he admitted the Kingman County Sheriff’s Office stopped him and discovered the drugs hidden in his vehicle.
Sentencing is set for Jan. 19, 2021. He could face up to five years in federal prison and a fine up to $250,000. McAllister commended the Kingman County Sheriff’s Office, the Drug Enforcement Administration and Special Assistant U.S. Attorney Katherine Andrusak for their work on the case.
Guatemalan man sentenced for role in immigration event leading to deathRead the Press Release
LAREDO, Texas – A 33-year-old man is now headed to federal prison after admitting to transporting aliens resulting in death, announced U.S. Attorney Ryan K. Patrick.
Luis Morales-Melendez, a Guatemalan national who illegally entered the United States himself, pleaded guilty Dec. 2, 2019.
Today, U.S. District Judge Marina Garcia Marmolejo handed him a 48-month sentence. Not a U.S. citizen, Morales-Melendez is expected to face removal proceedings following the sentence. At the hearing, the court noted that while there’s no indication Morales-Melendez intended for the death to happen, he was still responsible for their safety as they crossed the river.
“Illegally entering the U.S. is not only a crime, it can be life threatening,” said chief Matthew Hudak of Border Patrol (BP)– Laredo Sector. “The harsh terrain and conditions along the border are inherently dangerous, and are made worse by the callous and reckless actions of smugglers that put lives at risk. The heartless actions of Morales-Mendez last year needlessly cost someone their life. This case is another unfortunate reminder that no one should but their life, or the life of a family member, in the hands of a criminal organization or human smugglers.”
"The tragic loss of life in this case is an example of the very real risks people face when they put their lives in the hands of smugglers," said Special Agent in Charge Shane Folden Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - San Antonio. "Those responsible for illegally moving people into and through our country place personal profit ahead of public safety. Driven by greed, they have little regard for the health and well-being of their human cargo, which can be a deadly combination.”
On Aug. 22, 2019, authorities encountered 12 individuals near Zebra Creek in Laredo. The investigation determined they were all undocumented aliens who had illegally entered the country by crossing the Rio Grande river. Several identified Morales-Melendez as the guide who led them into the United States.
Another man had been a part of the group, but had died along the way. The investigation revealed the victim had been struggling in the water, but Morales-Melendez did not offer aid or use a rope to help him. Morales-Melendez denied hearing anyone call for help. While some lifejackets were available, there were not enough for everyone. The victim’s body was recovered on the Mexican side of the river the following day.
Morales-Melendez admitted to illegally entering the United States with the group and acting as the foot guide on the American side of the river. As part of his plea, Morales-Mendez acknowledged receiving a discount on his smuggling fee in exchange for acting as the foot guide once the group crossed into the United States.
BP initiated the investigation in conjunction with HSI. Assistant U.S. Attorney Michael Bukiewicz is prosecuting the case.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Madison Man Charged with Drug Crimes Involving Methamphetamine
Melvin P. Potts, 33, Madison, Wisconsin, is charged with six counts of distributing methamphetamine in July through September 2020. The indictment alleges that one of the distributions involved 50 grams or more of methamphetamine. The indictment also charges that on September 15, 2020, Potts possessed 50 grams or more of methamphetamine for distribution.
If convicted, Potts faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on the two counts alleging distribution or possession with intent to distribute 50 grams or more of methamphetamine, and a maximum penalty of 20 years on each of the other five counts. The charges against him are the result of an investigation by the Dane County Narcotics Task Force. Assistant U.S. Attorney Zachary Corey is handling the prosecution.
Madison Man Charged with Distributing Methamphetamine & Possessing Methamphetamine for Distribution
Timothy Savannah, 28, Madison, Wisconsin, is charged with distributing methamphetamine on September 1, 2020, and with possessing 50 grams or more of methamphetamine with the intent to distribute on September 10, 2020.
Savannah faces a maximum of 20 years in federal prison on the distribution charge, and a mandatory minimum of five years and a maximum of 40 years on the charge of possessing 50 grams or more of methamphetamine for distribution. The charges against him are the result of an investigation by the Sauk County Sheriff’s Office and the Drug Enforcement Administration. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Two Charged with Arson of Commercial Buildings in Madison
Anessa Renee Fierro, 27, and Willie Tremaine Johnson, 45, both of Madison, Wisconsin, are charged in a two-count indictment with attempting to damage and destroy by fire two commercial buildings in Madison on August 25, 2020. Fierro and Johnson were charged with these offenses in criminal complaints filed in U.S. District Court in Madison on September 22. Federal law requires that criminal charges filed by complaint be presented to a grand jury for indictment.
If convicted, Fierro and Johnson face a mandatory minimum penalty of five years and a maximum of 20 years in federal prison on each count. The charges against them are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison Police Department. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Madison Man Charged with City-County Building Arson
Marquon Clark, 26, Madison, Wisconsin, is charged with attempting to damage and destroy by fire the City-County Building in Madison on June 24, 2020. Clark was charged with this offense in a criminal complaint filed in U.S. District Court in Madison on October 5. Federal law requires that a criminal charge filed by complaint be presented to a grand jury for indictment.
If convicted, Clark faces a mandatory minimum penalty of five years and a maximum of 20 years in federal prison. The charge against him is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Dane County Sheriff’s Office; Madison Police Department; and Madison Fire Investigation Team.
Barron County Man Charged with Embezzlement from Casino
Leva Oustigoff, Jr., 58, Cumberland, Wisconsin, is charged with eight counts of embezzling money from the Turtle Lake Casino operated by the St. Croix Chippewa Indians of Wisconsin, while an employee of the casino. The dates and amounts of the alleged embezzlements are:
- December 18, 2015 – approximately $9,500;
- April 4, 2016 – approximately $7,500;
- April 29, 2016 – approximately $1,799;
- September 13, 2017 – approximately $8,599;
- October 19, 2017 – approximately $8,599;
- October 25, 2017 – approximately $20,000;
- November 27, 2017 – approximately $8,000; and
- January 18, 2018 – approximately $8,637.
If convicted, Oustigoff faces a maximum penalty of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with the cooperation of the St. Croix Tribe. Assistant U.S. Attorney Diane Schlipper is handling the investigation.
Employee of U.S. Postal Service Charged with Misappropriating Funds & False Entries in Official Records
Cammy J. Gillett, 44, Cameron, Wisconsin, is charged with misappropriating postal funds from March 2019 through July 2020. The indictment alleges that while an employee of the U.S. Postal Service, she converted to her own use more than $1,000 in U.S. Postal money orders. The indictment also charges her with making false entries in the record of Postal money order sales.
If convicted, Gillett faces a maximum penalty of 10 years in federal prison on each count. The charges against her are the result of an investigation by the U.S. Postal Service, Office of Inspector General. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Mexican Citizen Charged with Illegally Reentering U.S. & Failing to Register as Sex Offender
Jose David Saldana-Ramirez, 37, a citizen of Mexico found in Columbia County, Wisconsin, is charged in a superseding indictment with illegally reentering the United States after previously being deported, and failing to register under the Sex Offender Registration and Notification Act. Saldana-Ramirez was charged previously in an indictment returned by the grand jury on August 19, 2020, with the immigration offense only. The superseding indictment alleges that he was found in the United States on July 26, 2020, and that he failed to register as a sex offender from July 2017 to November 2019.
If convicted, Saldana-Ramirez faces a maximum penalty of 20 years in federal prison on the illegal reentry charge, and 10 years in federal prison on the failure to register as a sex offender charge. The charges against him are the result of an investigation by U.S. Immigration & Customs Enforcement. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
Forrest County Man Convicted under Project EJECT for Trafficking MethamphetamineRead the Press Release
Hattiesburg, Miss. – Oliver McNair, 29, of Hattiesburg, pled guilty today before Senior U.S. District Judge Keith Starrett to possessing methamphetamine with the intent to distribute, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On August 31, 2019, McNair was found in possession of over 60 grams of methamphetamine in Petal. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be approximately 97% pure.
McNair was indicted for this offense on January 15, 2020. He will be sentenced by Judge Starrett on January 21, 2021 at 10:15 a.m.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Forrest County Sheriff’s Office investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Former VA Hospice Nurse Pleads Guilty to Diverting and Tampering with Morphine Meant for Dying VeteransRead the Press Release
BOSTON – A Tewksbury woman pleaded guilty today to charges of diverting morphine while she employed as a nurse in the hospice unit at the Veterans Affairs (VA) Medical Center campus in Bedford.
Kathleen Noftle, 55, pleaded guilty to one count of tampering with a consumer product and one count of obtaining a controlled substance by misrepresentation, fraud, deception and subterfuge. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 24, 2021. Noftle was arrested and charged in September 2019.
On Jan. 13, 14 and 15, 2017, Noftle used her position as a nurse to obtain doses of morphine that were meant to be given to the veterans under her care in the hospice unit. Noftle admitted that she mixed water from the sink with a portion of the liquid morphine doses, and then administered the diluted medication to patients orally. Noftle then ingested a diluted amount of the remaining drug.
The charge of tampering with a consumer product provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of obtaining a controlled substance by misrepresentation, fraud, deception and subterfuge provides for a sentence of up to four years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney William B. Brady of Lelling’s Health Care Fraud Unit is prosecuting the case.
Former Schuylkill County Clerk of Courts Sentenced for Mail Fraud and Falsification of RecordsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Steven M. Lukach, Jr., age 70, of Nesquehoning, Pennsylvania, was sentenced on October 20, 2020, to 27 months’ imprisonment by U.S. District Court Judge Robert D. Mariani for mail fraud and falsification of records.
According to United States Attorney David J. Freed, Lukach served as the Clerk of Courts for Schuylkill County for approximately 27 years. In 2013-2014, county auditors with the Controller’s Office began an in depth examination of the Clerk’s Office and discovered misappropriation of funds by Lukach. An FBI investigation ensued and while the audit was going on, Lukach interfered with the audit by stealing mail that was sent to banks, forged records and sent the fake bank records to the Controller’s Office. Lukach did so in an effort to conceal that he was taking funds from various accounts for his own personal purposes, such as paying a family member’s credit card bill, paying for meals, making car payments, and other personal expenses. The total funds misappropriated was $40,000.
Judge Mariani found that Lukach’s criminal conduct was two-fold. One involved theft and the other involved obstruction of justice. Judge Mariani characterized the theft as an abuse of power and trust given to him by the people of Schuylkill County and the Commonwealth of Pennsylvania. The judge noted that his crimes were not a one-off event but pervasive theft over years from many different aspects of the criminal justice system, including stealing from funds due to be paid as restitution to crime victims, fines and cost due to be paid to county and state, and bail funds due to be returned to those properly posted the funds. His obstruction was described by the judge as simply bold. Judge Mariani indicated that the sentence of 27 months in prison was enough to deter yet punish his wrongdoing.
Judge Mariani ordered Lukach to pay $15,927 in restitution and to surrender to the Bureau of Prisons on November 17, 2020.
The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant U.S. Attorney Michael Consiglio prosecuted the case.
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Former Private Security Company Employee in Orange County Pleads Guilty to Impersonating a Federal Law Enforcement AgentRead the Press Release
LOS ANGELES – A former private security employee at an Orange County retirement community pleaded guilty today a felony charge for pretending to be a federal agent.
Donovan Pham Nguyen, 34, of Orange, pleaded guilty this afternoon to one count of impersonation of a federal officer.
According to his plea agreement, Nguyen began working at the retirement community’s private security company in 2015. While employed there, Nguyen falsely told his coworkers that he was a special agent with Homeland Security Investigations (HSI). On different occasions, Nguyen used that falsely assumed title to conduct traffic stops of his coworkers and search them, neither of which he was permitted to do as part of his actual job.
Nguyen admitted in his plea agreement that, in May 2019, he falsely claimed to be a special agent with HSI to the U.S. Department of State’s Diplomatic Security Service (DSS) as DSS agents were preparing to execute an arrest warrant on the premises of Nguyen’s job site.
He further admitted that he falsely told a Riverside County District Attorney’s Office employee in June that he was an HSI special agent, and then discussed a pending investigation – including HSI’s involvement – with the employee.
United States District Judge Dolly M. Gee has scheduled a February 3 sentencing hearing, at which time Nguyen will face a statutory maximum sentence of three years in federal prison.
This matter was investigated by HSI and U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility. The Riverside County District Attorney’s Office, DSS, and the Orange Police Department provided assistance.
This case is being prosecuted by Assistant United States Attorneys John A. Balla of the Riverside Branch Office and Jerry C. Yang, Chief of the Riverside Branch Office.
Former Police Officer Sentenced to 8 Years for Distribution and Possession of Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Matthew Enhoffer (35, St. Petersburg), a former police officer with the St. Petersburg Police Department, to 8 years and 1 month in federal prison for distribution and possession of child pornography. The court also ordered Enhoffer to pay a $10,000 special assessment pursuant to the Justice for Victims Trafficking Act of 2015. The court will determine restitution to the victims at a later date.
Enhoffer had pleaded guilty on February 11, 2020.
According to court documents, agents from Homeland Security Investigations (HSI) received a CyberTip from the National Center for Missing and Exploited Children that an individual had distributed child pornography on a web-based social media application. The investigation led agents to Enhoffer’s residence.
On September 11, 2019, HSI agents executed a search warrant at Enhoffer’s home and seized several electronic devices. An examination of Enhoffer’s devices revealed that he possessed a total of approximately 390 child pornographic images, 7 child pornographic videos, and 290 child erotic images. The images and videos depicted the sexual abuse of young children. A forensic analysis of Enhoffer’s laptop also revealed that he had distributed child sex abuse material to another individual via the internet in June and July 2018.
“It is especially disheartening when a law enforcement officer becomes the criminal but no person is above the law,” said Acting Deputy Special Agent in Charge Micah C. McCombs. “Thanks to HSI special agents and outstanding support from the St. Petersburg Police Department, this child predator will be held accountable for his crimes.”
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
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.
Former Loan Officer Sentenced for Defrauding Credit UnionRead the Press Release
BOSTON – A former commercial loan officer for a federal credit union in Greenfield was sentenced on Monday, Oct. 19, 2020, in federal court in Springfield for defrauding the credit union and committing tax fraud.
Michael Dicenzo, 67, of Pittsfield, was sentenced by U.S. District Judge Mark G. Mastroianni to three years of supervised release. Dicenzo previously pleaded guilty to four counts of receipt of money through transactions of a credit union with intent to defraud the credit union, four counts of tax fraud and one count of false statements to federal officials.
As a senior commercial loan officer at a credit union in Greenfield, Dicenzo fraudulently obtained a series of loans, totaling approximately $4 million, for a local businessman in exchange for a total of approximately $133,773 in kickbacks. Dicenzo also misappropriated money from two charities whose accounts he supervised. In addition, Dicenzo failed to report this illegally obtained income in his personal income tax returns for years 2006, 2007, 2008 and 2009. Lastly, Dicenzo lied to investigators during an interview on March 26, 2010, by telling them, among other things, that the kickbacks from the businessman were legitimate payments for work that his wife performed for the businesses.
United States Attorney Andrew E. Lelling and Joleen Simpson, Acting Special Agent In Charge of the Internal Revenue Service’s Criminal Investigations; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office prosecuted the case.
Former Jefferson County Man Sentenced for Sexual Exploitation CrimesRead the Press Release
SYRACUSE, NEW YORK - Logan Decker, 28, of Sioux Falls, South Dakota, was sentenced in federal court today to serve 528 months (44 years) in federal prison for his part in the sexual exploitation of a two-year-old child, announced Acting United States Attorney Antoinette T. Bacon, Thomas F. Relford, Special Agent-in-Charge, Federal Bureau of Investigation (FBI), Albany Field Office, and New York State Police Superintendent Keith Corlett.
In December 2019, Decker, who formerly lived in Jefferson County, pled guilty to all counts of a seven-count indictment, admitting that he conspired with his wife, Amber Decker, to sexually exploit the two-year-old for the purpose of producing images and videos of the abuse. Decker also admitted that on several occasions in July and August 2018, while he was living in Sioux Falls South Dakota and his wife was in Jefferson County, he demanded that his wife sexually abuse the child and upload video files of the abuse to a cloud storage account for him to view. Recovered text messages revealed that Logan Decker was also planning a trip to New York, and that he and his wife discussed the continued abuse of the two-year-old, as well as the abuse of two other children, once Logan Decker arrived. However, before that trip could happen both of the Deckers were arrested after a family member saw some of the disturbing texts on Amber Decker’s phone and called the police.
United States District Judge David N. Hurd also imposed a term of supervised release of 25 years to follow Decker’s term of incarceration, at which time he will also be required to register as a sex offender.
Amber Decker pled guilty to the same offenses, and was sentenced in August to serve 22 years in federal prison for her role in the offenses.
This case was investigated by the Federal Bureau of Investigation (FBI), Syracuse Resident Agency, the New York State Police, the Jefferson County Sheriff’s Office, and the Sioux Falls, South Dakota Police Department, and prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Former Clay County Sheriff’s Deputy Pleads Guilty to Producing and Possessing Child Sexual Abuse ImagesRead the Press Release
Jacksonville, FL –Travis Ryan Pritchard (37, Green Cove Springs) today pleaded guilty to one count of producing an image of a child being sexually abused and one count of possessing an image of a prepubescent child being sexually abused. He faces a minimum mandatory penalty of 15 years, and up to 50 years, in federal prison, as well as a life term of supervised release.
Pritchard was indicted on May 20, 2020.
According to the plea agreement, at the time of the offenses, Pritchard was employed as a deputy with the Clay County Sheriff’s Office and was assigned to the DUI unit. From December 2019 through May 2, 2020, Pritchard used an online chat application to communicate in a sexual manner with a 15-year-old child. Beginning on April 29, 2020, an undercover detective from the Green Cove Springs Police Department assumed the child’s identity and continued chatting with Pritchard using the online chat application. Late in the night of May 1, 2020, and into the early morning hours of the next day, Pritchard encouraged the “child” to sneak out of the child’s home to meet with him for a “quickie.” In anticipation of their meeting, he sent the “child” a photograph of himself from the waist down, wearing only boxer shorts. At approximately 2:00 a.m. on May 2, 2020, Pritchard arrived near the child’s home in his patrol vehicle, and sent the “child” a message saying, “I’m here.” A short time later, Pritchard was arrested by officers from the Green Cove Springs Police Department.
A forensic review of Pritchard’s cellphone yielded multiple conversations between the child and Pritchard, as well as an encrypted secure digital folder that contained multiple depictions of child sexual abuse.
This case was investigated by the Green Cove Springs Police Department and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former City of Boston Employee Sentenced to Prison for Distributing Cocaine and FentanylRead the Press Release
BOSTON – A former employee of the City of Boston was sentenced today to eight months in federal prison for distributing cocaine and fentanyl.
Gary “Jamal” Webster, 36, was sentenced by U.S. District Court Judge Allison D. Burroughs to eight months in prison and two years of supervised release. The government sought a sentence of 30 months of incarceration.
In November 2019, Webster pleaded guilty to four counts of distributing and possessing with intent to distribute cocaine, one count of distributing and possessing with intent to distribute more than 40 grams of fentanyl and one count of conspiracy to distribute and possess with intent to distribute cocaine and fentanyl.
In September and October 2016, a cooperating witness made four controlled purchases of cocaine and one purchase of fentanyl from Webster, who was then the Director of Constituent Services for a Boston City Councilor. In total, Webster sold over 300 grams (two-thirds of one pound) of cocaine and 49 grams of fentanyl to a cooperating witness during the two-month period.
This case was part of Operation Landshark, a federal investigation that targeted impact players and repeat offenders in Brockton and Boston, many of whom had prior convictions for acts of violence, firearm offenses and/or drug trafficking.
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; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney Rachel Rollins; Boston Police Commissioner William Gross; and Brockton Police Chief Emanuel Gomes made the announcement today. The investigation was conducted by the FBI’s North Shore Gang Task Force and Southeastern Massachusetts Gang Task Force. Valuable assistance was provided by the Suffolk County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth and Essex County Sheriff’s Offices; Massachusetts Department of Corrections; U.S. Parole Commission; U.S. Postal Inspection Services; and the U.S. Secret Service. Assistant U.S. Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Operation Landshark was 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. DOJ 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.
Former Blue Bell Creameries President Charged in Connection with 2015 Ice Cream Listeria ContaminationRead the Press Release
A Texas grand jury charged the former president of ice cream manufacturer Blue Bell Creameries L.P. with wire fraud and conspiracy in connection with an alleged scheme to cover up the company’s sales of Listeria-tainted ice cream in 2015, the Justice Department announced today.
In an indictment filed in federal court in Austin, Texas, former Blue Bell president Paul Kruse was charged with seven counts of wire fraud and conspiracy to commit wire fraud related to his alleged efforts to conceal from customers what the company knew about Listeria contamination in certain Blue Bell products. According to the indictment, Texas state officials notified Blue Bell in February 2015 that two ice cream products from the company’s Brenham, Texas, factory tested positive for Listeria monocytogenes, a dangerous pathogen that can lead to serious illness or death in vulnerable populations such as pregnant women, newborns, the elderly, and those with compromised immune systems. Kruse allegedly orchestrated a scheme to deceive certain Blue Bell customers, including by directing employees to remove potentially contaminated products from store freezers without notifying retailers or consumers about the real reason for the withdrawal. The indictment alleges that Kruse directed employees to tell customers who asked about the removal that there was an unspecified issue with a manufacturing machine. The company did not immediately recall the products or issue any formal communication to inform customers about the potential Listeria contamination.
“American consumers trust that the individuals who lead food manufacturing companies will put the public safety before profits,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “The Department of Justice will take appropriate action against those who ship contaminated products and choose not to tell consumers about known risks.”
“U.S. consumers rely on food producers and suppliers to ensure the safety of the nation’s food supply. The charges announced today show that if an individual violates food safety rules or conceals relevant information, we will seek to hold them accountable,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration (FDA). “We will continue to investigate and bring to justice those who jeopardize public health.”
“The Defense Criminal Investigative Service's number one priority is the safety and well-being of America's warfighters and their families," said Michael Mentavlos, Special Agent-in-Charge of the Department of Defense Criminal Investigative Service (DCIS) Southwest Field Office. “The results of this investigation are an example of DCIS' determination to enforce food safety standards, as required by Defense Department contracts. These standards not only protect individuals, but are paramount to military readiness.”
The indictment, returned Tuesday in U.S. District Court for the Western District of Texas, further alleges that March 2015 tests conducted by the FDA and the Centers for Disease Control and Prevention (CDC) linked the strain of Listeria in one of the Blue Bell ice cream products to a strain that sickened five patients at a Kansas hospital with listeriosis, the severe illness caused by ingestion of Listeria-contaminated food. The FDA, CDC, and Blue Bell issued public recall notifications on March 13, 2015. Subsequent tests confirmed Listeria contamination in a product made at another Blue Bell facility in Broken Arrow, Oklahoma, which resulted in a second recall announcement on March 23, 2015. Additional positive test results ultimately led Blue Bell to recall all ice cream products in April 2015.
Blue Bell pleaded guilty in a related case in May to two counts of distributing adulterated food products in violation of the Federal Food, Drug, and Cosmetic Act. On Sept. 17, 2020, the court sentenced the company to pay criminal penalties totaling $17.25 million. Blue Bell also agreed to pay an additional $2.1 million to resolve civil False Claims Act allegations regarding ice cream products manufactured under insanitary conditions and sold to federal facilities, including the military. The total $19.35 million in fine, forfeiture, and civil settlement payments constitutes the second largest-ever amount paid in resolution of a food safety matter.
Blue Bell temporarily closed all of its plants in late April 2015 to clean and update its facilities. Since re-opening its facilities in late 2015, Blue Bell has taken significant steps to enhance sanitation processes and enact a program to test products for Listeria prior to shipment.
Kruse was previously charged by criminal information on May 1, 2020, during the temporary closure of grand juries in the Western District of Texas due to the COVID-19 pandemic. That criminal information later was dismissed without opposition from the government, and the new indictment returned by the grand jury, which has resumed operations, now sets out the charges against Kruse.
The indictment filed against Kruse merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Patrick Hearn and Matt Lash of the Civil Division’s Consumer Protection Branch are prosecuting the case with assistance from Shannon Singleton of the FDA’s Office of Chief Counsel. The criminal investigation was conducted by the FDA’s Office of Criminal Investigations and the DCIS.
For more information about the enforcement efforts of the Consumer Protection Branch, visit their website at http://www.justice.gov/civil/consumer-protection-branch.
Former Biologist Sentenced to Prison for Stealing Hundreds of Thousands of Dollars from San Diego ZooRead the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924
NEWS RELEASE SUMMARY – October 21, 2020
SAN DIEGO – Former San Diego Zoo biologist Matthew John Anderson was sentenced in federal court today to six months in prison for embezzling hundreds of thousands of dollars from the San Diego Zoo.
In March, Anderson pleaded guilty to a theft charge, admitting that he created dozens of fake invoices, often in the names of fictitious vendors, and submitted them to the zoo for payment for products never purchased or received. Anderson also submitted invoices for personal expenses. The zoo paid these invoices by, in some cases, sending money to accounts controlled by Anderson, and in others by sending payments to third parties who kicked back the bulk of the payments to Anderson. Over the course of eight years of fraud, Anderson caused the zoo to suffer a total loss of $236,682.86.
In imposing sentence, Chief U.S. District Judge Larry A. Burns noted that Mr. Anderson not only abused a position of trust, but that he did so “over the long haul” and that this was not a case of one discreet lapse of judgment. Anderson, 50, appeared for his sentencing hearing having tendered full restitution to the zoo. In imposing a custodial term, Chief Judge Burns noted that “you cannot systematically steal over a period and just say that you will pay it back.” The judge then remanded Mr. Anderson into custody to serve his term.
Anderson worked for the zoo for more than 17 years, starting as a research fellow and ultimately serving as the Director of Behavioral Biology for the zoo’s Institute for Conservation Research until the zoo terminated his employment in late 2017. A citizen of the United Kingdom, Anderson faces likely deportation as a consequence of his sentence.
“For years, this defendant took advantage of the trust of one of our city’s most beloved institutions,” said U.S. Attorney Robert Brewer. “His theft compromised the San Diego Zoo’s world-renowned conservation work, made possible by government grants, charitable donations and the work of thousands of unpaid volunteers.” Brewer praised the excellent work of prosecutor Jeffrey Hill and FBI agents.
“The FBI unraveled a years-long plot to steal money from San Diego's prized institution by a trusted employee,” said FBI Special Agent in Charge Suzanne Turner. “Today, the zoo has been made whole again through payment of full restitution and Mr. Anderson was forced to face justice for his fraudulent actions through his prison sentence.”
DEFENDANT Case No. 20-CR-0812-LAB
Matthew John Anderson Ramona, California Age: 50
SUMMARY OF CHARGES
Theft or conversion concerning programs receiving federal funds – 18 U.S.C. § 666
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Ex-law enforcement officer admits to transporting drug moneyRead the Press Release
HOUSTON – A former deputy constable and her husband have entered guilty pleas to conspiracy to possess with intent to distribute heroin, announced U.S. Attorney Ryan K. Patrick.
Betty Jean Molina, 57, pleaded guilty today, while her husband - Henry Molina, 60 – entered his plea July 28. Both reside in Houston. The couple admitted to transporting what they believed to be approximately a half-million dollars in drug proceeds on multiple occasions. They had also agreed to transport heroin.
At the time of the offense, Betty Molina was a deputy constable with Harris County Precinct 5 Constable’s Office, but she is no longer employed there. As part of her plea, she admitted to using her law enforcement credentials when stopped for speeding on one of their trips.
As part of the pleas, the couple admitted to obtaining several thousand dollars of what they believed to be drug proceeds and brought it back to Houston. On at least one occasion, they also transported a significant amount of narcotics.
In return, they received approximately $30,000 combined for all of their criminal actions.
U.S. District Judge George C. Hanks Jr. accepted both pleas and set sentencing for Jan. 26, 2021. At that time, they each face a minimum of 10 years and up to life in prison as well as a possible $10 million fine.
The couple was permitted to remain on bond pending sentencing.
The FBI conducted the investigation with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorneys Alamdar S. Hamdani and Arthur R. Jones are prosecuting the case.
Emporia Man Sentenced to Prison for Straw Purchasing 5 FirearmsRead the Press Release
ALEXANDRIA, Va. – An Emporia man was sentenced today to one year prison for lying on ATF forms in the course of straw purchasing five firearms.
According to court documents, following the recovery of a firearm from a convicted felon by the Metropolitan Police Department, ATF agents reviewed firearm transaction records and determined that Shatez Damauri-Quadre Franklin, 23, had purchased the firearm and numerous others less than three months prior from a sporting goods store in Colonial Heights. In making the purchases, Franklin represented himself as the true buyer of the firearms. However, immediately after he received the firearms, Franklin transferred them to another individual who was going to resell them in Washington, D.C. Franklin was paid by the individual for making the purchases.
This case is 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. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr.
Assistant U.S. Attorney Patricia T. Giles and Special Assistant U.S. Attorney Rachael C. Tucker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-125.
Eleven indicted in illegal marijuana trafficking investigationRead the Press Release
Seattle - Eleven defendants were indicted in three separate indictments for their parts in manufacturing, distributing, and profiting from the production and distribution of illegal marijuana across the country and in the Puget Sound region, announced U.S. Attorney Brian T. Moran. Some of the defendants were arrested today in coordinated searches of 27 locations in the Puget Sound region and additional searches in New York. Many of the locations in Washington were illegal grow houses, and others were businesses that allegedly served as front companies. Those arrested before noon today will make their appearance at 1:00 in U.S. District Court in Seattle.
“This criminal group operated outside Washington State’s regulatory scheme for marijuana, distributing thousands of pounds of marijuana to states where marijuana was, or remains, illegal, making huge sums of money,” said U.S. Attorney Moran. “Members of the group turned homes in the Seattle area into illegal grow houses, damaging neighborhoods, and competing unfairly with honest buyers who are just trying to afford their first home.”
“This type of organized crime has a negative impact on the safety and the quality of life in our local neighborhoods. It cannot be tolerated” said King County Sheriff Mitzi G. Johanknecht. “I am very thankful for the hard work and long hours our detectives have put in to make this investigation a success.”
Over the course of the investigation, law enforcement determined marijuana was being shipped to Illinois, New York, New Jersey, Pennsylvania, Kentucky, Massachusetts, Connecticut, Georgia, and Missouri. Today, search teams led by investigators and agents from the U.S. Postal Inspection Service and the Internal Revenue Service Criminal Investigation executed search warrants at locations in Skyway, Renton, Kent, Lake Tapps, Maple Valley, Federal Way, Covington, SeaTac, and Snohomish.
In the first indictment, RAYMOND NG, 49, and QIFANG CHEN, 32, are charged with conspiracy to manufacture and distribute marijuana. NG operates Skyway General Contractors, and the couple is involved in the purchase of multiple properties that have been used as marijuana grows.
The second indictment charges WEI QUAN WU, 46, and DA BIAO WU, 52, with seven federal counts involving conspiracy, manufacturing, and possessing marijuana for distribution at different locations throughout the Puget Sound region.
Finally, the third indictment charges WOBIAO LEI, 35, XINMING WU, 35, YI JUN CHEN, 33, GUO GUI YU, 39, CHEE CHOONG NG, 52, GUOLONG LEE, 31, and LINGFENG LEI, 26, with conspiracy to manufacture and distribute marijuana, as well as possession of marijuana with intent to distribute and manufacturing marijuana with intent to distribute. CHEE CHOONG NG was arrested by Postal Inspection agents today in Brooklyn, New York.
In each of the indictments, the government has filed for forfeiture of properties associated with the conspiracy and other proceeds of the crimes. Due to the amount of illegal marijuana involved, if convicted, the defendants face a mandatory minimum ten years in prison.
“It's clear the leaders of this organization contributed widely to the illegal marijuana drug trade in the Pacific Northwest,” said Inspector in Charge Anthony Galetti. “Illegal grow operations such as these, with their extensive networks, have a wide reaching and destructive impact to the communities they inhabit. With these arrests and seizures of illegal marijuana grow operations, we bring down one of the largest networks in the region. This should serve as a reminder to the community that the U.S. Postal Inspection Service, along with our local, state, and federal partners, continues working diligently to keep any and all prohibited substances out of the US Mail.”
“The alleged members of this interstate drug trafficking organization will be held accountable for their conduct,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “Criminal organizations that willfully ignore state marijuana regulations for their own enrichment will be investigated and prosecuted by IRS-CI and our partners.”
The charges contained in the indictments are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case is being investigated by the U.S. Postal Inspection Service (USPIS) and the Internal Revenue Service Criminal Investigation (IRS-CI) and the King County Sheriff’s Office. The Drug Enforcement Administration (DEA), the FBI, and Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) assisted with the search warrants.
The case is being prosecuted by Assistant United States Attorneys Nicholas Manheim and Stephen Hobbs.
lei_et_al_indictment.pdf ng_chen_indictment.pdf wu_indictment.pdfElection Officers Designated in Central District of IllinoisRead the Press Release
SPRINGFIELD, Ill. – U.S. Attorney John C. Milhiser announced today the appointment of District Election Officers in the Central District of Illinois in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. Assistant U.S. Attorneys appointed to serve as election officers in each of the district’s four divisions include: Gregory M. Gilmore in the Springfield headquarters office; David H. Hoff in the Urbana branch office; Darilynn J. Knauss in Peoria; and, John K. Mehochko in Rock Island. District election officers are responsible for overseeing the district’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department headquarters.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
Designated election officers will be available in each of the district’s four offices on Nov. 3, to respond to complaints of election fraud or voting rights abuses, and to ensure such complaints are directed to the appropriate authorities. Election officers may be reached by the public at the following telephone numbers:
Springfield: Assistant U.S. Attorney Gregory M. Gilmore, 217-492-4450;
Urbana: Assistant U.S. Attorney David H. Hoff, 217-373-5875;
Peoria: Assistant U.S. Attorney Darilynn J. Knauss, 309-671-7050; and,
Rock Island: Assistant U.S. Attorney John K. Mehochko, 309-793-5884.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI office in the Central District of Illinois can be reached by the public at 217-522-9675.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC, by phone at 1-800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
In the case of a crime of violence or intimidation, individuals should call 911 immediately and prior to contacting federal authorities as state and local police have primary jurisdiction over polling places.
Drug Enforcement Administration to Hold 19th Prescription Drug Take Back DayRead the Press Release
U.S. Attorney Peter Deegan wants to ensure that everyone knows how to rid their homes of unused and unwanted medications.
The Drug Enforcement Administration (DEA) is holding its 19th National Prescription Drug Take Back Day on Saturday, October 24, at locations across the country. The nationwide event aims to provide a safe, convenient, and responsible means of disposing of prescription drugs, while also educating the general public about the potential for abuse of medications.
“Many people don’t know how to properly clean out their medicine cabinets. Failing to safely dispose of old medications, especially opioids, all too often leads to dangerous drugs ending up in the wrong hands,” said U.S. Attorney Deegan. “The DEA is providing an important public service by providing an easy way to dispose of unneeded medications. I encourage everyone to get rid of their old and unused prescription medicine in the proper way. Doing so will make our communities safer.”
Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
Collection sites will adhere to local COVID-19 guidelines and regulations in order to maintain the safety of all participants and local law enforcement.
“The initiative – now in its tenth year – addresses a vital public safety and public health issue,” said DEA Acting Administrator Timothy Shea. “Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Together with our partners, we are not only holding National Prescription Drug Take Back Day, but offering other ways to dispose of unwanted, unused, and expired prescription medications.”
Given the ongoing COVID-19 public health emergency, DEA wants to ensure that the public is aware of other ways they can dispose of unwanted prescription drugs without having to leave their homes. Both the U.S. Food and Drug Administration and the Environmental Protection Agency have tips on how to safely dispose of drugs at home.
In addition to DEA’s National Prescription Drug Take Back Day, prescription drugs can be disposed of at any of the 11,000 DEA authorized collectors at any time throughout the year. For more information, visit: https://apps2.deadiversion.usdoj.gov/pubdispsearch/spring/main?execution=e1s1.
DEA and its partners will collect tablets, capsules, patches, and other solid forms. DEA will also accept vape pens or other e-cigarette devices from individual consumers, only after the batteries are removed from the devices. If the battery cannot be removed, individual consumers can check with large electronic chain stores who may accept the vape pen or e-cigarette devices for proper disposal. Liquids, including intravenous solutions, syringes and other sharps, and illegal drugs cannot be dropped off.
This service is free and anonymous, no questions asked.
For more information on DEA’s National Prescription Drug Take Back Day, and to find a collection site near you, visit www.deatakeback.com.
Department of Justice Releases Report on its Efforts to Disrupt, Dismantle, and Destroy MS-13Read the Press Release
Today, the Department of Justice released “Full Scale Response: A Report on the Department’s Efforts to Combat MS-13 from 2016-2020.” This report describes the Department’s work to dismantle La Mara Salvatrucha (MS-13) in the United States and abroad. The data show that since 2016, the Department has prosecuted approximately 749 MS-13 gang members. So far, more than 500 of these MS-13 gang members have been convicted, including 37 who received life sentences. Department prosecutors are using more than 20 federal criminal statutes to prosecute MS-13 members, including, for the first time, filing terrorism charges against MS-13’s leadership. The data also show that for decades MS-13 has exploited weaknesses in border enforcement policies, as approximately 74 percent of the defendants prosecuted were unlawfully present in the United States. The report also describes the Department’s efforts to combat MS-13 internationally through increased partnerships with law enforcement in Mexico and Central America. Through international cooperation, hundreds of MS-13 members have been arrested abroad and more than 50 MS-13 members have been extradited to the United States.
Combating MS-13 has been a top priority for the Department of Justice. On February 9, 2017, President Trump issued Executive Order 13773, directing the whole-of-government to develop and execute a comprehensive approach to dismantle Transnational Criminal Organizations (TCOs) such as MS-13 and restore safety for the American people. In doing so, the President recognized that these organizations put the safety of the American people at risk through widespread illegal conduct, including acts of violence and abuse that exhibit a wanton disregard for human life. The President directed the Department to support and improve the coordination of federal agencies’ efforts to identify, interdict, investigate, prosecute, and dismantle TCOs and subsidiary organizations within and beyond the United States. Pursuant to the President’s Executive Order, on October 15, 2018, Attorney General Sessions created the Transnational Organized Crime Task Force to focus on the disruption and dismantlement of TCOs such as MS-13.
On August 16, 2019, Attorney General Barr created Joint Task Force Vulcan (JTFV) to coordinate and lead the efforts of the Department and U.S. law enforcement agencies against MS-13 in order to eradicate the group. JTFV has successfully increased coordination and collaboration with international law enforcement partners, including El Salvador, Mexico, Honduras, and Guatemala; prioritized prosecutions against MS-13 cliques and leaders; and coordinated significant MS-13 indictments in U.S. Attorneys’ Offices across the country.
“In 2017, the President directed the Department of Justice to go to war against MS-13, and we did just that,” said Attorney General Barr. “In coordination with our partners at the Department of Homeland Security, the Justice Department’s law enforcement components have successfully investigated, charged, and arrested command and control elements of MS-13 responsible for particularly heinous crimes against our communities. Joint Task Force Vulcan’s operations have significantly degraded MS-13 capabilities. While there is still work to be done, the Department of Justice remains steadfastly committed to protecting Americans from MS-13, and we will not rest until we have successfully eradicated this violent gang.”
Federal prosecutors from the Department’s National Security Division, the Criminal Division, and 10 U.S. Attorneys’ Offices have been assigned full-time to JTFV. The U.S. Attorneys’ Offices represented include: the Eastern District of New York, the Eastern District of Virginia, the District of Nevada, the Southern District of California, the District of Massachusetts, the Northern District of Ohio, the District of New Jersey, the Eastern District of Texas, the District of Utah, and the District of Columbia. In addition, the Department’s law enforcement agencies are involved in the effort, including the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Marshals Service (USMS), and the Bureau of Prisons. DHS’s Homeland Security Investigations (HSI) has also played a critical role in JTFV.
In addition, components of the Department’s Criminal Division are involved in efforts to dismantle MS-13. The Organized Crime and Gang Section, together with U.S. Attorneys’ Offices, has indicted and tried complex RICO prosecutions against significant MS-13 leaders, members, and associates across the country. The Office of International Affairs has worked to pursue the extradition of high-level MS-13 targets and obtain crucial foreign evidence for MS-13 cases. The Office of Overseas Prosecutorial Development, Assistance and Training has coordinated with counterparts in Central America on joint operations that have resulted in significant indictments of gang members and seizures of firearms and money. And the Office of Enforcement Operations has provided critical support and assistance to MS-13 investigations.
Information Regarding the Immigration Status of MS-13 Defendants
The vast majority of the MS-13 members that the Department has prosecuted from 2016 through 2020 were unlawfully present in the United States. The approximate immigration status makeup of the defendants is as follows:
- 74 percent were unlawfully present in the United States;
- 15 percent had an immigration status that could not be determined;
- 8 percent were U.S. Citizens;
- 3 percent had lawful status in the United States.
Information Regarding the Department’s International Efforts to Combat MS-13
The Department and its federal law enforcement partners have assisted law enforcement in Central America and Mexico through training, operational support, the deployment of specialized technology, and intelligence sharing. As part of these efforts, FBI special agents and analytical staff are embedded with their international law enforcement partners through Transnational Anti-Gang Units (TAG) where they jointly investigate MS-13 and other gangs found in El Salvador, Guatemala, and Honduras. HSI has specially trained Central American law enforcement officers to target MS-13 in Central America through its Transnational Criminal Investigative Units (TCIUs) program. TAGs and TCIUs have arrested hundreds of MS-13 members in Central America.
Federal law enforcement agencies have also provided technical support and intelligence to law enforcement in Central America. After MS-13 and other gangs targeted Salvadoran law enforcement with a series of bombings, ATF assisted Salvadoran authorities in its investigation into the bombings. The USMS has regularly shared intelligence with their international counterparts to locate MS-13 fugitives in the United States and El Salvador. The increased cooperation has led to the arrest of MS-13 fugitives in Central America and the United States. More than 50 MS-13 members have been extradited to the United States as a result of these partnerships.
DHS has deployed technology to Mexico and Central America to identify and track dangerous MS-13 members in order to stop them before they enter the United States. DHS deployed the Biometric Identification Transnational Migration Alert Program (BITMAP) in Central America. The BITMAP system stores biometric data for individuals enrolled in the system and shares it with law enforcement and immigration authorities in Central America and the United States. By enrolling MS-13 gang members into BITMAP, HSI is able to ensure that these dangerous individuals are identified if they attempt to enter the United States. Most MS-13 members who are illegally present in the United States enter via Mexico. Working with its partners in Mexico, DHS deployed its DHS Biometric Encounter Analysis and Screening Team to Migration Centers in Mexico so that MS-13 members can be detected before they reach the United States.
Department of Justice Highlights Work Combating Anti-Semitic ActsRead the Press Release
Today, Deputy Attorney General Jeffrey A. Rosen presented remarks highlighting the Department of Justice’s work combating anti-Semitic acts at a virtual conference hosted by Secretary of State Michael Pompeo entitled “Ancient Hatred, Modern Medium”—the first ever government-sponsored event focused on online anti-Semitism. Deputy Attorney General Rosen described just a few of the Department of Justice’s many recent accomplishments in combating anti-Semitism, focusing on social media and the internet. His remarks as prepared for delivery are available here, and the full State Department conference may be viewed here.
Attorney General William Barr has emphasized that anti-Semitic acts, like other acts of violence motivated by hatred or bias, “violate the personal security of individuals, threaten the freedom of communities to pursue their faith and way of life, and disregard the common ties that bind our Nation together.” The Department is committed to combating anti-Jewish hatred on multiple fronts and in a multi-faceted approach, using both criminal and civil statutes. In this effort, federal law enforcement agencies work in conjunction with state law enforcement, local officials, and religious communities. In the last three years, the Department of Justice has worked to protect the rights of the Jewish community, and of all faith communities, through a variety of initiatives and engagements. In addition to those set out in today’s remarks at the State Department conference, those include the following:
Summit on Combating Anti-Semitism
On July 15, 2019, at its headquarters, the Department of Justice held a Summit on Combating Anti-Semitism. The Summit brought together 150 leading members of the Jewish community and featured speeches by Attorney General Barr, Deputy Attorney General Rosen, FBI Director Christopher Wray, Treasury Secretary Steve Mnuchin, Education Secretary Betsy Devos, Assistant Attorney General Beth Williams, Assistant Attorney General Eric Dreiband, and Special Envoy Elan Carr, as well as prosecutors, academics, and community activists. Speakers addressed the increase in anti-Semitic incidents on campuses, the balance between fighting anti-Semitic rhetoric while respecting First Amendment freedoms, and the Department’s record in prosecuting hate crimes against Jews.
Attorney General’s Meeting with Religious Leaders in Brooklyn, New York
Attorney General Barr traveled to Brooklyn, New York on January 28, 2020 to meet with the heads of local Jewish community councils in areas of Brooklyn suffering from a spike in hate crimes against Jews, as well as heads of major Jewish organizations in the city. The Attorney General personally heard stories of how the Jewish community was affected by the hate crimes and exchanged ideas on how the Department could assist the community in responding to the spike. At the meeting, the Attorney General announced that in recognition of an increase in anti-Jewish hate crimes across the country, the Department would prioritize investigating and federally prosecuting these crimes, even those that would typically be prosecuted at the local level.
Attorney General’s Memorandum on Combating Anti-Semitism
In conjunction with his Brooklyn visit, Attorney General Barr issued a directive to all United States Attorneys directing them to initiate or reinvigorate contacts with the Jewish community in their respective districts to reassure the Jewish community of the Department of Justice’s commitment to protecting Jewish citizens. The memo directed the United States Attorneys to establish a point of contact in each of their offices for the Jewish community to report hate crimes or other discrimination. During the spring of 2020, United States Attorneys across the country met with Jewish clergy, local non-profits, and branches of national Jewish organizations.
Prosecutions of Anti-Semitic Hate Crimes
Since January 2017, the Department has charged more than 80 defendants with anti-Semitic hate crimes and related conduct, and has obtained convictions of more than 65 defendants for the same.
The Department, through the diligent work of its Civil Rights Division and U.S. Attorney’s Offices around the country, has obtained convictions in a number of high-profile hate crime prosecutions affecting the Jewish community:
- U.S. v. James Fields—The United States Attorney’s Office for the Western District of Virginia indicted James Fields for his August 12, 2017 deadly car attack at a rally in Charlottesville, Virginia, which killed Heather Heyer and injured several other individuals. The defendant pleaded guilty to 29 federal hate crime charges and the Court sentenced him to 29 sentences of life imprisonment without the possibility of parole, along with restitution.
- U.S. v. Chadwick Grubbs—The United States Attorney’s Office for the Eastern District of Wisconsin charged the defendant with hate crimes for mailing letters to a Jewish community center threatening to attack the center with firearms and explosives. The defendant pleaded guilty to three federal hate crime charges and the Court sentenced him to 36 months’ imprisonment along with supervised release and fines.
- U.S. v. Nolan Brewer—The United States Attorney’s Office for the Southern District of Indiana charged the defendant for conspiring to attack an Indiana synagogue. The defendant pleaded guilty and the Court sentenced him to 36 months’ imprisonment.
Active cases the Department is currently prosecuting include the following:
- U.S. v. Grafton Thomas—The United States Attorney’s Office for the Southern District of New York indicted Grafton Thomas for hate crimes after his December 28, 2019 machete attack against a rabbi and five others celebrating Hanukkah at the rabbi’s home.
- U.S. v. Robert Bowers—The United States Attorney’s Office for the Western District of Pennsylvania indicted Robert Bowers for his October 27, 2018 armed massacre of 11 worshippers at the Tree of Life Synagogue in Pittsburgh, Pennsylvania.
- U.S. v. John Earnest—The United States Attorney’s Office for the Southern District of California indicted John Earnest for his April 27, 2019 fatal shooting at the Chabad of Poway Synagogue and for his attempted arson of a California mosque.
- U.S. v. Tiffany Harris—The United States Attorney’s Office for the Eastern District of New York indicted Tiffany Harris for assaulting three Orthodox Jewish women during Hanukkah in December 2019 in Crown Heights, Brooklyn.
- U.S. v. Ethan Melzer—The Counterterrorism Section of the National Security Division, along with the United States Attorney’s Office for the Southern District of New York, indicted U.S. Army soldier Ethan Melzer for providing sensitive classified information about his unit to members of a Neo-Nazi group (whose core tenets include Holocaust denial), and urging them to disseminate the information to terrorists so that they could attack his fellow service members in Turkey.
- Atomwaffen prosecutions—The United States Attorney’s Offices for the Western District of Washington, Middle District of Florida, Southern District of Texas, and District of Arizona, in coordination with the National Security Division, arrested multiple members of the white supremacist group Atomwaffen for making threats against African-American and Jewish journalists.
Supporting Religious Freedom including through the Place to Worship Initiative
On June 13, 2018, former Attorney General Jeff Sessions announced the Place to Worship Initiative, which focuses on protecting the rights of religious individuals and communities to build, expand, buy, or rent houses of worship and other religious facilities as guaranteed by the Religious Land Use and Institutionalized Persons Act (RLUIPA). Since launching the initiative in 2018, the Civil Rights Division doubled the number of RLUIPA investigations to 15, up from an average seven a year since 2010. Cases involving the Jewish community include:
- U.S. v. Borough of Woodcliff Lake—The Department filed a lawsuit alleging that the Borough of Woodcliff Lake, New Jersey violated RLUIPA when its zoning board denied zoning approval for the Valley Chabad to build a new place of worship on its land. This case was resolved in a settlement announced September 15, 2020, which will allow the congregation to build its facility.
- U.S. v. Township of Jackson—The Department filed a lawsuit alleging that the Township of Jackson, New Jersey had taken various actions to stop yeshivas from locating in the Township.
Defending Constitutional Rights During the COVID-19 Pandemic
On April 27, 2020, Attorney General Barr directed the Department, including the Civil Rights Division and all United States Attorney’s Offices, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
- On June 19, 2020, pursuant to this initiative, the Department sent a letter to New York City Mayor Bill de Blasio alerting him that the city’s response to COVID-19 must respect the First Amendment’s protection of religious exercise. The Department urged Mayor de Blasio to reconsider his posture toward religious gatherings in the Jewish community and expressed concern over reports that the city “sent police officers to break up numerous gatherings of the Jewish community in New York, including outdoor gatherings for funerals.”
- The Department continues to work to protect all communities of faith and will continue to take action when the constitutional rights of the Jewish community are infringed.
As Deputy Attorney General Rosen stated in his remarks at today’s conference, “the United States Department of Justice stands firmly and unequivocally against anti-Semitism. We will not hesitate to take action where anti-Semitic conduct rises to the level of a federal crime. That is as true online as it is offline. We have no tolerance for that behavior and will continue to prosecute such conduct as appropriate. Most importantly, we will continue to uphold the rule of law for all Americans.”
Department of Labor Agent Charged with Theft of Government Funds and False DocumentsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Special Agent with the U.S. Department of Labor, Office of Inspector General, Thomas Hartley, age 47, of Henryville, Pennsylvania, was indicted on October 20, 2020, by a federal grand jury for theft of government funds, making false claims against the United States, and making false statements.
According to United States Attorney David J. Freed, the indictment alleges that while on leave from his position with the Department of Labor and serving with the New Jersey National Guard, Hartley submitted false documents to the Department of the Army and thereby obtained approximately $23,580 in housing allowance funds to which he was not entitled.
The case was investigated by the U.S. Department of Labor, Office of Inspector General, Office of Special Investigations and the United States Army, Criminal Investigation Command. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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.
Under federal law, the charge of Theft of Government Funds carries up to a maximum sentence of ten years in prison, a term of supervised release following imprisonment, and a fine. The charges of False Claims against the United States and False Statements each carry up to a maximum penalty of five years in prison, a term of supervised release following imprisonment 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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DS44 Gang Member Admits Selling Fentanyl and HeroinRead the Press Release
PITTSBURGH - A resident of McKees Rocks, pleaded guilty in federal court to a charge of conspiracy to distribute and possess with the intent to distribute a quantity of fentanyl and heroin, United States Attorney Scott W. Brady announced today.
Lamont Benton, age 24, pleaded guilty to one count before United States District Judge William S. Stickman, IV.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Benton was identified as a member of DS44 and a mid-level distributor, and in connection with his guilty plea, he accepted responsibility for distributing 39 grams of a mixture containing fentanyl and heroin. Mr. Benton is one of 40 defendants charged in the case.
Judge Stickman scheduled sentencing for February 24, 2021, at 10:30 a.m. The law provides for a total sentence of not more than twenty years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Benton be detained.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
DEA taking back unused prescription drugs Oct. 24, 2020Read the Press Release
BILLINGS – U.S. Attorney Kurt Alme will join the Drug Enforcement Administration in support of the 19th National Prescription Drug Take Back Day on Saturday, Oct. 24. The biannual event will be from 10 a.m. to 2 p.m. at sites across Montana. The event is an effort to rid homes of potentially dangerous, expired, unused and unwanted prescription drugs.
To keep everyone safe, collection sites will follow local COVID-19 guidelines and regulations.
"Getting rid of unneeded and expired prescription drugs is an important step Montanans can take to stop opioid abuse and addiction. The primary way opioid abusers first get pills is from family and friends. The DEA Take Back event is a great way to safely clean out medicine cabinets," U.S. Attorney Alme said.
"We encourage all Montanans to drop off their unused prescriptions to the National Take Back sites in their communities. Individuals can drive up and drop off their prescriptions without getting out of their cars," said DEA Montana Resident Agent in Charge Stacy Zinn-Brittain.
Last fall, Americans across the country turned in nearly 883,000 pounds of prescription drugs at nearly 6,300 sites operated by the DEA and almost 5,000 of its state and local law enforcement partners. Since the inception of the National Prescription Drug Take Back Initiative in 2010, DEA, along with its law enforcement partners, has now collected nearly 6,350 tons of expired, unused, and unwanted prescription medications.
During the October 2019 event, Montanans turned in 1,720 pounds of prescription drugs at 26 collection sites.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drugs abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs.
In addition to DEA’s National Prescription Drug Take Back Day, there are many other ways to dispose of unwanted prescription drugs every day, including the 11,000 authorized collectors that are available all year long. For more information, visit DEA’s year-round collection site locator.
The FDA also provides information on how to properly dispose of prescription drugs. More information is available here: https://www.fda.gov/consumers/consumer-updates/where-and-how-dispose-unused-medicines.
For more information about the disposal of prescription drugs or about the October 24 Take Back Day event, go to www.DEATakeBack.com.
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Crack Cocaine Trafficker Receives 85 Months in Federal PrisonRead the Press Release
WILMINGTON, N.C. – A Wilmington man was sentenced yesterday to 85 months in prison for conspiracy to distribute and possess with the intent to distribute 280 grams or more of crack cocaine, possession with intent to distribute 28 grams or more of crack cocaine and possession of a firearm by a convicted felon.
According to court documents and evidence presented in court, Blake Greenfield, 38, was involved in the importation and distribution of Crack Cocaine into Wilmington from July through September 2019. On September 23, 2019, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) along with the Wilmington Police Department arranged a controlled delivery of 2 ounces of crack cocaine from Greenfield at a location in Wilmington. Greenfield fled when law enforcement attempted to arrest him. Greenfield was found in possession of approximately 2 ounces of crack cocaine and more than $3,000 dollars. Law Enforcement searched his residence and found additional cocaine and more than $2,500 dollars and information for a storage unit in Louisburg, North Carolina. Law enforcement searched the unit and found two handguns. Greenfield had been previously convicted of trafficking in cocaine and was prohibited from possessing a handgun. The investigation revealed that Greenfield had been involved in the distribution of more than a kilogram of crack cocaine.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Richard E. Myers II. The ATF, New Hanover County Sheriff’s Office and the Wilmington Police Department investigated the case and Assistant U.S. Attorneys Timothy Severo and Bryan Stephany prosecuted the case. This case was part of the Organized Crime Drug Enforcement Task Force (OCDETF) investigation “Round Tree Hill” focusing on an armed drug trafficking organization involved in the importation of heroin and crack cocaine into Eastern North Carolina.
A copy of this press release is located on our website. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00071-M-1
Coralville Man Sentenced to 30 Months in Prison for Illegal ReentryRead the Press Release
DAVENPORT, Iowa — On October 20, 2020, United States District Chief Judge John A. Jarvey sentenced Carlos Sanchez Varela, age 48, of Coralville, to 30 months in prison for illegal reentry after deportation as an aggravated felon and false representation of a social security number announced United States Attorney Marc Krickbaum. Sanchez Varela was ordered to pay $200 to the Crime Victims’ Fund. The sentence was an upward variance from the recommended United States Sentencing Guidelines.
On June 11, 2020, Sanchez Varela pleaded guilty to two counts of a four-count indictment. The investigation began in December 2019, when Immigration and Customs Enforcement (ICE) received information about Sanchez Varela’s whereabouts. ICE investigated and obtained Sanchez Varela’s employment records, which revealed his use of two false identities, including false social security numbers and immigration documents. Sanchez Varela provided these fraudulent documents to two different businesses in order to obtain employment. Further investigation revealed that Sanchez Varela had previous encounters with law enforcement and had been previously removed from the United States on July 22, 2011.
This matter was investigated by the United States Department of Homeland Security and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Coordinated Opioid Fentanyl Outreach Initiative for the Greater Spokane Community AnnouncedRead the Press Release
Spokane, Wash., - Today, United States Attorney William Hyslop and DEA Special Agent in Charge Keith Weis announced a coordinated Opioid Fentanyl Outreach initiative by federal, state and local law enforcement agencies, community leaders, prevention specialists and school superintendents. They were joined at the announcement by Spokane Mayor Nadine Woodward and Spokane Chief of Police Craig Meidl.
The Opioid Fentanyl Outreach Project addresses the public safety and public health threats caused by the increasing influx of deadly fentanyl into Spokane and throughout Eastern District of Washington. This initiative has a multi-pronged approach with the focus on educating our communities and directing resources through community outreach and prevention efforts.
United States Attorney Hyslop stated, “Our communities, our residents, our parents, and our youth are all faced with the growing and continued influx of deadly fentanyl into Eastern Washington. Very small amounts in a fentanyl-laced pill can kill a person. We are now seeing it here in Spokane, and sadly, we are now witnessing deaths in our high school and young adult populations. Dangerous counterfeit pills killing Americans are manufactured in mass quantities by drug trafficking organizations based in Mexico. In response, law enforcement at the federal, state and local levels have increased efforts to investigate and prosecute drug trafficking groups for importing and distributing this lethal narcotic in the Spokane, Yakima and Tri-Cities areas. However, this is much greater than just a law enforcement issue; it is now a critical community issue that everyone must address.”
Keith Weis, Special Agent in Charge of the Drug Enforcement Administration stated, “Now, it is more important than ever that we all come together as a call for action to save lives. Per the CDC, in 2019 more than 71,000 lives were lost in the United States as a result of drug overdoses. Of this number, approximately 51% of the deaths can be attributed to fentanyl and other synthetic opioids. Alarmingly, DEA seizures of fentanyl in Eastern Washington have increased almost 200% over the 2019 to 2020 time period. A lethal dose of fentanyl is estimated to be about two milligrams, but can vary based on an individual’s body size, tolerance, amount of previous usage and other factors. Additionally, fentanyl can be lethal when it is airborne or even when touched and absorbed through the skin.”
As part of the Opioid Fentanyl Outreach Project, community, law enforcement, and educational leaders have come together in Spokane, Tri-Cities, and Yakima to address this issue. Plans are underway with media engagement pieces, town halls and presentations. On October 7th, 2020, DEA Diversion in partnership with the Department of Health and Human Services held a virtual conference with hundreds of health care professionals in Washington providing information and support during the pandemic and raising awareness on the ongoing opioid crisis.
On October 12, 2020, a 12 week media awareness campaign was launched in the Eastern District of Washington, “You Can Save Lives” knowing the warning signs of counterfeit fentanyl pills keeps your loved ones and the community safe. Viewers can obtain a variety of resources at
https://www.getsmartaboutdrugs.gov/ https://vimeo.com/user96937699/dl/469641512/a59c2c8768
Community forums and parent discussions are being organized. School Superintendents throughout the region are collaborating on educational lessons and presentations, with a focus on student involvement to spread the message. A special video about the fentanyl problem is being produced and will be available.
Another resource available to educators and the community is DEA Red Ribbon Week, the nation’s oldest and largest drug prevention awareness program. Red Ribbon Week is celebrated annually October 23-31. This year’s theme is “Be Happy, Be Brave, Be Drug Free.” You can learn more about DEA Red Ribbon and ways to get involved through programs and contests by visiting https://www.dea.gov/redribbon Other outreach efforts are being added as they are planned.
This Saturday, October 24, 2020, National Drug Take Back Day will be recognized. The United States Attorney’s Office is sponsoring a socially distanced “Drug Take Back” site from 10:00 a.m. to 2:00 p.m. at the drive-through parking lot of the Boy Scouts of America, Inland Northwest Council, 411 Boy Scout Way in Spokane. More information about Drug Take Back Day is available at deatakeback.com
The Opioid Fentanyl Outreach Strategy Committee Greater Spokane and Spokane County Members includes:
William D. Hyslop, United States Attorney
Keith Weis, DEA Special Agent in Charge
Mark Haigh, DEA Assistant Special Agent in Charge
Laci Larson, DEA Group Supervisor – Spokane District Office
Stephanie Van Marter, Assistant United States Attorney
Honorable Nadine Woodward, Mayor – City of Spokane
Chief Craig Meidl, Spokane Police Department
Sheriff Ozzie Knezovich, Spokane County Sheriff’s Office
Chief Dave Ellis, Spokane Valley Police Department
Christian Parker, FBI Supervisory Senior Resident Agent – Spokane Resident Agency
Larry Haskell, Spokane County Prosecutor
Dr. Bob Lutz, Spokane Regional Health District
Dr. Nicole Rodin, Clinical Assistant Professor – Washington State University College of
Pharmacy and Pharmaceutical Sciences
Dr. Michal Dunn, Superintendent ESD 101
Dr. Adam Swinyard, Superintendent – Spokane Public Schools
Shawn Woodward, Superintendent – Mead School District 354
Ben Small, Superintendent – Central Valley School District
Kyle Rydell, Superintendent – West Valley School District #363
Kelly Shea, Superintendent – East Valley School District #361
Robert Roettger, Superintendent – Cheney Public Schools
Convicted Felon Who Began Selling Cocaine Immediately Following His Release from Federal Prison Is Going Back to Prison for 11 YearsRead 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 John E. Kidd, 37, of Buffalo, NY, who was convicted of conspiring to distribute, and distributing, 500 grams or more of cocaine, being a felon in possession of ammunition, and violating supervised release, was sentenced to serve 132 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on April 25, 2017, the defendant was released from federal prison after serving 72 months on a cocaine conviction. Following his release, Kidd started selling cocaine and marijuana to customers in and outside of the City of Buffalo. On October 24, 2017, the defendant agreed to sell two and a half ounces of cocaine to an individual. Law enforcement officers approached Kidd as he was entering his vehicle to meet the individual to conduct the sale. He possessed approximately 101 grams of cocaine and 61 grams of marijuana.
The United States Probation Office, assisted by the Drug Enforcement Administration, then conducted a search of the defendant’s St. Joseph Street residence in Buffalo. During the search, they recovered packaging materials, rubber gloves, baking powder, a metal plate with suspected cocaine residue, scales, a money counter, and small amounts of suspected cocaine and marijuana. Also recovered were four rounds of 12 gauge ammunition. As a result of prior felony convictions, Kidd is prohibited from possessing ammunition. In addition, investigators seized $402,206 in U.S. currency hidden in the dry wall of the defendant’s residence, which represents the proceeds of cocaine and marijuana trafficking.
The sentencing is the result of an investigation by and the U.S. Probation Department, under the direction of Chief Probation Officer Anthony SanGiacomo, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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