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19 November 2020
Maryland Man Facing Federal Indictment for Threatening Former Vice President Joe Biden and Senator Kamala Harris During the Presidential CampaignRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment late yesterday charging James Dale Reed, age 42, of Frederick, Maryland, on the federal charge of threats to 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. A federal criminal complaint for the same charge was filed against Reed on October 21, 2020.
The indictment 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.
“We take these types of threats extremely seriously. The right to vote and peacefully support the candidate of your choice are bedrocks of our democracy,” said U.S. Attorney Robert K. Hur. “Alleged conduct like this that threatens major candidates and fellow citizens only undermines our democracy and the principles upon which America was founded. We will hold accountable those who seek to intimidate, harass or dissuade Americans from exercising their right to vote.”
According to the single-count indictment and court documents, on October 4, 2020, a letter threatening candidates for President and Vice President—specifically, former Vice President Joe Biden and Senator Kamala Harris—with physical harm and execution, was left on the doorstep of a resident in Frederick in the early hours of the morning. The resident had several signs in the yard supporting the candidates threatened in the letter. The likeness of the subject delivering the letter was captured by a door camera.
If convicted, Reed faces a maximum sentence of five years in federal prison.
An indictment is not a finding of guilt. An individual charged by indictment 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 Joan C. Mathias, who are prosecuting the case.
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Maryland Based Cattle Exporters Indicted for FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that two brothers, Daniel Gutman, age 38, and Benjamin Gutman, age 38, both of Maryland, were indicted on November 18, 2020, by a federal grand jury on multiple conspiracy, false statement and wire fraud charges.
According to U.S. Attorney David J. Freed, Daniel and Benjamin Gutman are the owners of Gutman Brothers, LTD, a Baltimore, Maryland based cattle export business with farms in New Holland, Pennsylvanian and Spring Grove, Pennsylvania. They are charged in the indictment with conspiring with a veterinarian, Dr. Donald Yorlets, of New Oxford, Pennsylvania, to defraud the U.S. Department of Agriculture and the buyers of their cattle in Mexico, Puerto Rico, Canada and Qatar by submitting more than a thousand false bovine blood samples to a Harrisburg laboratory for bovine disease testing between November 2016 and February 2020.
The indictment alleges that Daniel and Benjamin Gutman and Dr. Yorlets routinely substituted the blood from cattle they knew to be disease free for the blood of larger numbers of untested animals in order to obtain the required Certificates of Health Inspection for all the animals. The U.S. Department of Agriculture requires cattle who are transported in interstate and international commerce to be tested for various bovine diseases, including Bovine Tuberculosis, Brucellosis, Bovine Leucosis, and Bovine Viral Diarrhea. Bovine Tuberculosis and Brucellosis are communicable diseases that can be transmitted to humans under certain circumstances.
The indictment also alleges that additional Unique Antibody Profile testing of some of the Gutman Brothers blood samples by a U.S. Department of Agriculture laboratory in Ames, Iowa, confirmed that only 122 of 1,069 samples were genuine.
While other bovine diseases are tested for by conducting a laboratory blood test, Bovine Tuberculosis is tested for by what is known as a Caudal Fold skin test. The indictment further alleges that Daniel and Benjamin Gutman did not conduct the skin test on a large number of animals but falsely represented to the government that they did.
Dr. Yorlets pleaded guilty to charges of conspiracy to defraud the U.S. Department of Labor in August 2020. He is currently awaiting sentencing before U.S. District Court Judge Jennifer Wilson. No date has yet been scheduled for the sentencing.
The indictment also seeks the forfeiture of the proceeds from many of Daniel and Benjamin Gutman’s sales to buyers in Mexico, Canada, Puerto Rico and Qatar, an amount that exceeds $7 million dollars.
The case was investigated by the U.S. Department of Agriculture, Office of Inspector General, and the Department of Homeland Security. Assistant U.S. Attorneys Kim Douglas Daniel and Ravi Sharma are 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.
The maximum penalty under federal law for the charge of conspiracy is 5 years of imprisonment; the charge of wire fraud is 20 years of imprisonment for each count; and the charge of false statements is 5 years of imprisonment for each count, 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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Mandeville Woman Pleads Guilty to Distributing Prescription MedicationRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that NATALIE BARTON, age 41, of Mandeville, Louisiana, pled guilty on November 18, 2020 to one count of misbranding prescription drugs, in violation of 21 U.S.C. §§ 331(a) and 333(a)(2).
Court records indicate that BARTON and her husband distributed prescription medications through websites and in a brick-and-mortar store. These prescription drugs were dispensed without valid prescriptions issued by licensed practitioners, and without labels that complied with the Food, Drug, and Cosmetic Act. Instead, these substances included labels that were misleading, in that they stated that the substances were not for human consumption, which was false. BARTON and E.B. were not practitioners licensed by law to administer prescription drugs.
If convicted, BARTON faces a maximum term of imprisonment of 3 years of imprisonment followed by up to 1 year of supervised release on the anabolic-steroid conspiracy count and a $100.00 special assessment fee.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, the Food and Drug Administration, the United States Postal Inspection Service, and the Department of Homeland Security, Homeland Security Investigations in investigating this matter. U.S. Attorney Strasser expressed appreciation for the support provided by the United States Anti-Doping Agency and the Sports Medicine Research and Testing Laboratory. Assistant United States Attorney Jonathan Shih is in charge of the prosecution
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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Lewisburg Man Indicted on Visa Fraud and False Statement ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tengteng Wan, age 42, of Lewisburg, Pennsylvania, was indicted on November 18, 2020, by a federal grand jury on visa fraud and false statement charges.
According to United States Attorney David J. Freed, Tengteng Wan allegedly applied for an H-4 nonimmigrant visa in April 2015. At that time, H-4 visa holders were not eligible for employment in the United States. Wan allegedly stated in his visa application that he was “not employed.” At the time, however, Wan allegedly owned and operated one or more businesses. Wan’s alleged statement that he was “not employed” constituted visa fraud and a false statement under penalty of perjury.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ravi Romel Sharma 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.
The maximum penalty under federal law for these offenses is 10 years of imprisonment, 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 offenses; 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 an offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lawyer Sentenced for His Role in Fraud SchemeRead the Press Release
Tampa, Florida - U.S. District Judge Mary S. Scriven has sentenced Joseph S. Anile, II (56, Sarasota) to 10 years in federal prison for conspiracy to commit wire fraud and mail fraud, money laundering, and filing a false income tax return. As part of the sentence, the court also entered a money judgment of $3,283,467, the proceeds of the fraud. Anile was also ordered to forfeit his interest in multiple pieces of real property, including a luxury residence in Sarasota, high-end vehicles, currency, gold coins, and silver bars, which are traceable to proceeds of the fraud.
Anile had pleaded guilty on September 26, 2019.
According to court documents, from November 2011 through April 18, 2019, Anile conspired with others to commit wire fraud and mail fraud. Through false and fraudulent representations and material omissions, the conspirators persuaded at least 700 victims to invest more than $72 million in a foreign exchange market (“FOREX”) fraud known as Oasis International Group. Anile, a licensed attorney, created offshore entities, secured broker-dealer licenses, drafted promissory notes and disclosures, monitored incoming wire transactions, directed outgoing wire transactions and interacted with victim-investors to help carry out the scheme. The conspirators also developed and administered a “back office” operation—a secure website that falsely and fraudulently depicted account balances and earnings—to convince victim-investors that their principal balances were safe and that their investments were performing.
In fact, the conspirators used only a portion of the victim-investors’ funds for FOREX trading, which resulted in catastrophic losses that were concealed. They used the balance of the victim-investors’ funds to make payments toward expenses associated with perpetuating the scheme, and to purchase million-dollar residential properties, high-end vehicles, gold, silver and other liquid assets, to fund a lavish lifestyle for the conspirators, their family members and friends, and for their personal enrichment. Anile used fraud proceeds to purchase other assets, including a Ferrari California T convertible. Anile did not report the victim-investors’ funds he received on his federal income tax returns.
“Make no mistake, white collar criminals absolutely destroy lives. Joseph Anile disgracefully conspired to orchestrate a scheme that ultimately did just that,” stated Special Agent in Charge Brian Payne of IRS Criminal Investigation. “Oasis International not only fraudulently depleted the life savings of its investors, many of them seniors, but also caused their victims and families untold mental anguish, emotional distress, and broken trust. These offenses are most heinous, and we are proud to stand with our law enforcement partners to bring these crooks to task.”
OFR Commissioner Russell C. Weigel, III, said “I thank OFR’s investigators and our partners in law enforcement for their efforts in this case. Criminals who perpetrate these types of financial schemes will be brought to justice, and I appreciate the valuable work of OFR’s team, the FBI, and the IRS in bringing this case to resolution.”
“It’s tough to hear the stories of financial hardship this scheme created. Rest assured, the FBI and its law enforcement partners will never cease to bring to justice heartless fraudsters like Joseph Anile who swindle hard-earned money from honest Americans,” said Special Agent in Charge of the FBI Tampa Division Michael F. McPherson.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Florida Office of Financial Regulation. A related civil action was brought by the Commodity Futures Trading Commission, which resulted in, among other actions, the appointment of a receiver.
The criminal case was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke. The forfeiture was handled by Assistant United States Attorney Suzanne Nebesky.
Las Vegas Resident Pleads Guilty to Robbing Two USPS Mail CarriersRead the Press Release
LAS VEGAS, Nev. — A Las Vegas resident pleaded guilty today to robbing two U.S. Postal Service mail carriers of the mail they were delivering, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
Rodolfo Rafael Rodriguez-Silva, 20, pleaded guilty before U.S. District Judge Richard F. Boulware II, to two counts of robbery of mail, money, or property of the United States. A sentencing hearing has been scheduled on February 18, 2021.
According to court documents and admissions made in court by Rodriguez-Silva, on January 18, 2020, he and another individual — each wearing a ski mask — robbed a USPS mail carrier who was delivering mail. Rodriguez-Silva intimidated the mail carrier while the other person stole mail from the victim’s USPS vehicle. A few days later, on January 25, Rodriguez-Silva, who was masked, accosted another mail carrier and said: “I don’t want to hurt you, get to the side of the vehicle.” An individual with Rodriguez-Silva then stole mail from the USPS vehicle.
Rodriguez-Silva faces a statutory maximum penalty of 10 years in prison and a $250,000 for each count. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Kimberly Frayn and Daniel Clarkson are prosecuting the case.
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Laredo, Texas Man Sentenced for Possession of HeroinRead the Press Release
LAKE CHARLES, La. – Neguel Alfonso Morris, 40, of Laredo, Texas, was sentenced today on drug trafficking charges, Acting United States Attorney Alexander C. Van Hook announced. United States District Judge James D. Cain, Jr. sentenced Morris to 57 months in prison followed by 2 years of supervised release for possession of heroin with intent to distribute. Morris pleaded guilty on July 16, 2020.
On August 24, 2018, Calcasieu Parish Sheriff’s deputies were conducting a foot patrol in the parking lot of a truck stop in Sulphur, Louisiana when they observed a suspicious vehicle. Deputies approached the car and identified the driver of the vehicle as Neguel Alfonso Morris. Upon conducting a search of the vehicle, deputies found a clear glass pipe under the driver’s seat. Morris admitted that the pipe belonged to him and that he had just finished smoking crack in the pipe. After a further search of the vehicle, deputies discovered a package tightly taped in duct tape under the passenger seat. Morris was arrested and taken into custody. A crime lab analysis was conducted on the package found in Morris’ vehicle and it was confirmed that it contained 1,287.7 grams of heroin. Morris was traveling from San Antonio, Texas to New York when he was apprehended in Sulphur.
The U.S. Department of Homeland Security–Homeland Security Investigations and Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David J. Ayo prosecuted the case.
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Lake County Man Pleads Guilty to Tax EvasionRead the Press Release
Orlando, Florida – Douglas V. Oakes has pleaded guilty to tax evasion. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Oakes tried to evade and defeat the payment of federal income taxes that he owed for tax years 2002 to 2005. In August 2015, after the IRS initiated collection actions, Oakes submitted a signed statement to the IRS in which he represented that he was not employed or self-employed, earned no income, and did not have a financial interest in any business entities. In fact, at that time, Oakes was working for Dealerindustry.com, LLC (“DI”) d/b/a Automotive Capital Corporation, a company in which he had a significant financial interest and from which he was earning approximately $400,000 per year. To conceal from the IRS his financial interest in DI, Oakes registered his daughters and others as DI’s managing members with the Florida Department of State, removed his name from DI’s website and bank account, and removed his profile from the website LinkedIn.
In addition, in September 2015, Oakes submitted a sham rent agreement to the IRS representing that he and his wife were renting their 4,321 sq. ft. lakefront home in Orlando from DI for $1 per month. In November 2015, Oakes further attempted to conceal his assets from the IRS by purchasing a new beachfront home in Merritt Island for $1 million in the name of a nominee.
In July 2017, following the death of his daughter, Oakes and another individual caused posthumous tax returns to be prepared for Oakes’s deceased daughter in which DI’s income from 2010 through 2015 was falsely claimed to be entirely his deceased daughter’s income. In fact, between 2010 and 2015, Oakes earned approximately $2.2 million in income from DI, including payments that Oakes caused to be made from DI’s business bank account for credit card payments, luxury car payments, and the rent for his lakefront home.
The total tax loss to the United States in this case was $1,112,651.
This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Chauncey A. Bratt and Jennifer M. Harrington.
Laconia Woman Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
CONCORD - Monica Kemper, 36, of Laconia, pleaded guilty in federal court on Wednesday to conspiracy to commit bank fraud, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on various occasions between January and April of 2020, Kemper and her partner, John Daigle, altered stolen checks and cashed or attempted to cash them at various banks in New Hampshire. Some of the checks were stolen from a community mailroom in Bedford and others from mailboxes in Manchester. On April 1, 2020, Kemper and Daigle attempted to use a stolen driver’s license to cash a check at a credit union.
On April 23, 2020, Kemper and Daigle were arrested by Manchester Police officers. Officers searched a vehicle they had been driving and found over $16,000 in stolen checks, stolen credit cards, the stolen driver’s license used at the credit union on April 1, and various other pieces of stolen mail.
Daigle previously pleaded guilty on August 6, 2020 and is awaiting sentencing.
Kemper is scheduled to be sentenced on February 25, 2021.
“Fraud crimes involving stolen mail can damage victims in a variety of ways,” said U.S. Attorney Murray. “In order to protect the integrity of the mail and our financial system, we will work closely with our law enforcement partners to identify and prosecute the criminals who attempt to profit by stealing mail and defrauding banks with stolen checks.”
“The theft of mail in the furtherance of various fraud schemes has a significant financial and emotional impact on its victims,” says Chief Allen Aldenberg. “Hopefully, the charges that both Mr. Daigle and Ms. Kemper now face will serve as a warning to all would-be mail thieves that there are serious consequences for this type of activity."
This matter was investigated by the United States Postal Inspection Service in cooperation with the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald.
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Justice Department Reaches Landmark Agreement with Massachusetts Department of Children and Families to Address Discrimination Against Parents with DisabilitiesRead the Press Release
The Departments of Justice and Health and Human Services (HHS) announced today that they reached a landmark agreement with the Massachusetts Department of Children and Families (DCF).
The agreement resolves findings by the Justice Department and HHS that DCF discriminated against parents with disabilities in the administration of its child welfare program in violation of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act. This is the first Department of Justice settlement to address disability discrimination by a state child welfare agency.
“The stakes are never higher than when a parent faces the possibility of losing a child,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Individuals with disabilities have just as much a right to raise their children as any other person in this free country, and no government should unnecessarily infringe upon that sacred right. While child welfare agencies are faced with challenging and weighty decisions on a daily basis, they must always strive to ensure that no child is removed from a parent on the basis of unsupported stereotypes, discriminatory attitudes, or other unlawful reasons. This agreement will ensure that parents with disabilities are treated as individuals, and that they receive the supports and services they need to have an equal opportunity to retain or regain custody of their children. We believe this agreement will not only help thousands of families in Massachusetts, but also will provide a roadmap for child welfare agencies nationwide on how to treat parents with disabilities with the fairness, dignity, and respect that they deserve.”
“Parents with disabilities should never lose custody of their children due to discriminatory assumptions about their abilities. The love of a parent, coupled with proper support services, can overcome a multiplicity of challenges,” said Roger Severino, Director of the HHS Office for Civil Rights. “We are pleased to have reached this great result with the Department of Justice and Massachusetts.”
In 2015, the Department of Justice and HHS jointly found that DCF discriminated against a mother with a developmental disability and sought to terminate her parental rights to her infant daughter based on assumptions about her disability. Over the past five years, the Department of Justice and HHS received similar complaints against DCF from parents with physical, hearing, developmental, and other disabilities. The departments also received numerous complaints alleging that DCF denied requests for reasonable modifications, failed to provide interpreters to individuals with hearing impairments, and otherwise denied parents with disabilities an equal opportunity to benefit from DCF’s programs and services. The Justice Department investigated and substantiated many of these allegations, as well as allegations that DCF’s methods of administering its programs and services have the effect of discriminating against parents with disabilities.
Under today’s agreement, DCF will take critical steps to ensure the ADA’s protections extend to parents with disabilities throughout the Commonwealth of Massachusetts. DCF will not base decisions about removal of a child on stereotypes or generalizations about persons with disabilities. Rather, DCF will base such decisions on an individualized assessment of the parent with a disability and objective facts. Additionally, DCF will appoint statewide and regional coordinators to oversee DCF’s efforts to comply with the ADA and Section 504; create a new Parents with Disabilities Policy, including processes for requesting disability-based accommodations and filing disability-based complaints; train staff on DCF’s obligations to parents with disabilities and its new policies and procedures; and periodically report to the Department of Justice and HHS on its handling of accommodation requests and disability-related complaints.
The ADA requires that child welfare agencies provide parents with disabilities an equal opportunity to access and benefit from their services. Such agencies must reasonably modify policies and practices when necessary to avoid disability discrimination. They must ensure that communication with parents with disabilities is effective. And they must not use criteria or other administrative methods that result in disability discrimination.
This year marks the 30th Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. To learn more about the ADA’s history and impact, please visit the department’s ADA Anniversary webpage.
To read the Department of Justice and HHS’s previously issued technical assistance for child welfare agencies, please click here. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the Justice Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Justice Department Files Complaint against Jeffrey Lowe and Tiger King LLC for Violations of the Endangered Species Act and the Animal Welfare ActRead the Press Release
Today, the Department of Justice filed a civil complaint against Jeffrey and Lauren Lowe, Greater Wynnewood Exotic Animal Park LLC, and Tiger King LLC, to address recurring inhumane treatment and improper handling of animals protected by the Endangered Species Act.
The complaint alleges violations of the Endangered Species Act and the Animal Welfare Act and asks the court to declare that defendants have violated and will continue to violate the Endangered Species Act by illegally taking, possessing, and transporting protected animals, and the Animal Welfare Act by exhibiting without a license and placing the health of animals in serious danger. The complaint also asks the court to require the defendants to relinquish certain animals to the United States, to cease violating these laws, to award the United States costs, and to grant other relief as appropriate.
“The Lowes’ failure to provide basic veterinary care, appropriate food, and safe living conditions for the animals does not meet standards required by both the Animal Welfare Act and the Endangered Species Act,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Environment and Natural Resources Division. “Exhibitors cannot evade the law simply by shutting out the USDA and moving their animals elsewhere. The Department of Justice will support the USDA in pursuing those who violate federal animal protection laws.”
“Animal exhibitors, whether they exhibit in person or on-line, must possess a license and provide adequate care for their animals as provided for by Animal Welfare Act regulations,” said U.S. Department of Agriculture (USDA) General Counsel Stephen A. Vaden. “This action reflects the priority that USDA places on the enforcement of the Animal Welfare Act.”
Until August 2020, Jeffrey and Lauren Lowe operated the Greater Wynnewood Exotic Animal Park, located in Wynnewood, Oklahoma. The Wynnewood facility exhibited numerous animals protected by the Endangered Species Act, including tigers, lions, and other big cats, a grizzly bear, and ring-tailed lemurs.
In June and July 2020, USDA Animal Plant and Health Inspection Service inspectors found numerous animals in poor health and living in substandard conditions at the Wynnewood facility, in violation of the Endangered Species Act and the Animal Welfare Act. The Lowes did not provide timely and adequate veterinary care, causing the animals to suffer from easily treatable conditions, in some cases resulting in untimely death. Animals were not provided with sufficient quantities of appropriate food and were underweight and suffering from nutritional deficiencies, making them susceptible to fractures, unable to stand or walk, and exhibiting neurological problems.
The Lowes also failed to maintain sanitary and safe conditions, resulting in fly strikes on the animals’ bodies. Fly strike dermatitis is a preventable condition in which flies continuously attack, bite, and penetrate the skin of an animal. The flies lay eggs on open or irritated skin, causing infestations of maggots and painful sores. Inspectors also found foul-smelling, partially burned and decomposing big cat carcasses and a broken-down refrigerator truck containing rotting meat. They found no other properly refrigerated meat on site for the animals. The Lowes also routinely separated big cat cubs and lemur pups from their mothers at too early an age for public “playtime” events, resulting in long-lasting harm.
As one example of this inhumane treatment, in June 2020, USDA Animal Plant and Health Inspection Service inspectors observed a lion cub named Nala. The cub was lethargic, depressed, thin, and would not get up out of the mud even after prompting. She had discharges emanating from her nose and eyes, and sores on her ears. The inspectors directed the Lowes to immediately obtain veterinary care for Nala. Nala was diagnosed with an upper respiratory infection, dehydration, and urinary tract infection, and was also suffering from fly strikes, parasites, and fleas. Nala was transferred to a wildlife sanctuary in Colorado in September. She has been diagnosed with malnutrition and vitamin deficiencies so severe as to cause a chronic bone fracture and lameness.
USDA suspended Jeffrey Lowe’s Animal Welfare Act exhibitor license and initiated an administrative action to permanently revoke his license. Lowe has previously claimed to be above the law and, “If we lose a lawsuit, we simply change the name and open another business someplace else.” Days later, Lowe unilaterally terminated his license and sought to put his operation beyond USDA inspection and investigation. The Lowes then moved animals to a property in Thackerville, Oklahoma, located in the middle of a rural, residential area. The Lowes have made public statements that the new Thackerville facility will be named “Tiger King Park” and will operate as a film set for television shows and other video content. The Lowes do not have a license to exhibit animals.
The complaint also seeks a court order to permit immediate inspection of the facility, to prevent the Lowes from exhibiting their animals in person or through online platforms, to prevent the Lowes from acquiring or disposing of any animals during the injunction, and for any and all veterinary records for any animals treated during the injunction.
The case is being handled by attorneys from the Environment and Natural Resources Division. The case is being investigated by USDA’s Animal Plant and Health Inspection Service and the Department of the Interior’s Fish and Wildlife Service.
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.
Burn Pit Lion Cub with Damaged Ear Tiger with Damaged Ear Tiger with Damaged EarJustice Department Files Antitrust Case and Simultaneous Settlement Requiring National Association of Realtors® to Repeal and Modify Certain Anticompetitive RulesRead the Press Release
The Department of Justice today filed a civil lawsuit against the National Association of REALTORS® (NAR) alleging that NAR established and enforced illegal restraints on the ways that REALTORS® compete.
The Antitrust Division simultaneously filed a proposed settlement that requires NAR to repeal and modify its rules to provide greater transparency to home buyers about the commissions of brokers representing home buyers (buyer brokers), cease misrepresenting that buyer broker services are free, eliminate rules that prohibit filtering multiple listing services (MLS) listings based on the level of buyer broker commissions, and change its rules and policy which limit access to lockboxes to only NAR-affiliated real estate brokers. If approved, the settlement will enhance competition in the real estate market, resulting in more choice and better service for consumers.
“Buying a home is one of life’s biggest and most important financial decisions,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Home buyers and sellers should be aware of all the broker fees they are paying. Today’s settlement prevents traditional brokers from impeding competition — including by internet-based methods of home buying and selling — by providing greater transparency to consumers about broker fees. This will increase price competition among brokers and lead to better quality of services for American home buyers and sellers.”
According to the complaint, NAR’s anticompetitive rules, policies, and practices include: (i) prohibiting MLSs that are affiliated with NAR from disclosing to prospective buyers the commission that the buyer broker will earn; (ii) allowing buyer brokers to misrepresent to buyers that a buyer broker’s services are free; (iii) enabling buyer brokers to filter MLS listings based on the level of buyer broker commissions offered; and (iv) limiting access to the lockboxes that provide licensed brokers with access to homes for sale to brokers who work for a NAR-affiliated MLS. These NAR rules, policies, practices have been widely adopted by NAR-affiliated MLSs resulting in decreased competition among real estate brokers.
NAR is a trade association of more than 1.4 million-member REALTORS® who are engaged in residential real estate brokerages across the United States. NAR has over 1,400 local associations (called “Member Boards”) organized as MLSs through which REALTORS® share information about homes for sale in their communities. Among other activities, NAR establishes and enforces rules, policies, and practices that are adopted by the Member Boards and their affiliated MLSs.
The proposed settlement will be published in the Federal Register as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments regarding the proposed final judgment within 60 days of its publications to Chief, Office of Decree Enforcement and Compliance, Antitrust Division, U.S. Department of Justice, 950 Pennsylvania Ave., N.W., Washington, DC 20530. At the conclusion of the 60-day comment period, the court may enter the proposed final judgment upon a finding that it serves the public interest.
Jury convicts Wolf Point man of assaulting, abusing minorRead the Press Release
Great Falls – A federal jury today convicted a Wolf Point man accused of assaulting and abusing a minor on the Fort Peck Indian Reservation, U.S. Attorney Kurt Alme said.
After a three-day trial that began on Nov. 17, the jury found Luke John Scott, Sr., 33, guilty of assault resulting in serious bodily injury and felony child abuse.
Scott faces a maximum sentence of a minimum mandatory 10 years to life in prison, a $250,000 fine and five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for March 24, 2021 and ordered Scott detained.
“One of the most important obligations we have as a society is protecting our children. Those who harm them, like Mr. Scott, will be held accountable. I want to thank Assistant U.S. Attorney Kalah Paisley, the FBI and Fort Peck Law Enforcement Services for their investigation and prosecution of this case,” U.S. Attorney Alme said.
The prosecution presented evidence in court documents and at trial that in March 2019 in Wolf Point, Scott assaulted a minor child, who was under the age of 18, by repeated blunt force trauma to the face and strangulation. The victim was treated for serious injuries.
Assistant U.S. Attorney Kalah Paisley prosecuted the case, which was investigated by the FBI and Fort Peck Law Enforcement Services.
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Judge sentences St. Louis man for being a felon in possession of ammunitionRead the Press Release
ST. LOUIS, MO – United States District Judge Stephen R. Clark sentenced Keyshawn Brown to 45 months in prison today. The 23-year-old St. Louis, Missouri resident pleaded guilty to being a felon in possession of ammunition.
On December 2, 2019, officers with the St. Louis Metropolitan Police Department were informed someone was driving a stolen car in the area of Goodfellow and St. Louis Avenues. The officers pursued the car and deployed spike strips, which caused the car to stop in the middle of the street. Brown, who was the driver, got out of the car and fled the scene. Brown was detained a short distance away by officers.
After interviewing others in the stolen car, officers went to a residence in St. Ann. After further investigation, officers seized two boxes of Federal Ammunition 300 Savage. During an interview with Brown, he told officers that he and two others bought the two boxes of Federal Ammunition 300 Savage from the Cabela’s in Hazelwood, Missouri. Brown stated he then took the ammunition to the residence in St. Ann and tried to load it into a double drum magazine for a “chopper,” but realized he had bought the wrong ammunition.
Investigators learned Brown is a previously convicted felon.
The St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorney Tom Mehan is handling the case.
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Judge Sends Two to Federal Prison for Stealing and Selling more than $2.4 Million Worth of Sensitive U.S. Military Equipment from Camp MabryRead the Press Release
Calling it “the ultimate breach of trust,” U.S. District Judge Lee Yeakel sentenced 36-year-old former U.S. Property and Fiscal Office Program Analyst Joseph Mora and 27-year-old former Texas Army National Guardsman Cristal Avila to three years and two years in federal prison, respectively, for selling on the internet over $2.4 million in sensitive military equipment stolen from Camp Mabry in Austin, announced U.S. Attorney Gregg N. Sofer; Department of Defense Criminal Investigative Service (DCIS) Special Agent in Charge Michael Mentavlos, Southwest Field Office; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio; U.S. Army Criminal Investigation Command (Army CID) Special Agent in Charge Ray Rayos, Southwestern Fraud Field Office; and, U.S. Postal Inspection Service (USPIS) Inspector in Charge Adrian Gonzalez, Houston Division.
In addition to the prison terms handed down during sentencing today in Austin, Judge Yeakel ordered that both defendants pay, jointly and severally, $2,420,065 in restitution and be placed on supervised release for a period of three years after completing their respective prison terms. Judge Yeakel also ordered that the defendants forfeit to the government a 2016 Cadillac Escalade and a total of $53,310.32 seized from two bank accounts owned by Mora.
According to court records, from 2016 to 2019, Mora and Avila stole large quantities of government property, including scopes, infrared laser aiming devices and thermal night vision goggles, with an estimated value in excess of $2.4 million. Mora and Avila later sold the stolen goods on eBay and elsewhere.
“Stealing military equipment and offering it to the highest bidder endangers our communities and the brave men and women who protect us here at home and abroad. Thanks to the hard work of DCIS Southwest Field Office, HSI, Army CID, and USPIS, the individuals who purloined more than $2.4 million worth of sensitive military gear have been held accountable and we can rest easier knowing that these items are not being offered up to criminals or those who would use them for nefarious purposes,” stated U.S. Attorney Sofer.
On August 4, 2020, Mora pleaded guilty to one count of theft of government property. Avila did the same two days later. Both remain on bond pending formal notification from the U.S. Bureau of Prisons as to where and when to report to begin serving their prison terms.
“Today's sentencings are a result of a highly successful joint investigative effort by the DCIS Southwest Field Office, HSI, Army CID and USPIS,” said DCIS Southwest Field Office Special Agent in Charge Michael Mentavlos. “DCIS and our law enforcement partners are committed to safeguarding sensitive military property and Department of Defense supply chains in order to protect the integrity of the Department of Defense, the investment of our taxpayers, and most importantly, the warfighter.”
“The sentencing of Mora and Avila sends a clear message to those who break their military oath of protecting this nation by stealing and selling military technology for profit,” said HSI San Antonio Special Agent in Charge Folden. “Scopes, infrared laser aiming equipment, and thermal night vision goggles are highly advanced technologies, giving our military a much deserved edge on today’s battlefield. These schemes could potentially provide an opportunity for foreign adversaries to obtain sensitive U.S. equipment.”
“Today’s sentencing is another example of the great teamwork among law enforcement agencies,” said Army CID Southwestern Fraud Field Office Special Agent in Charge Rayos. “These two defendants devised a criminal enterprise that deprived Soldiers of the equipment they needed for training. It is inexcusable and hopefully this sentence will send a strong message to those who think they can steal from the U.S. government.”
“The U.S. Postal Inspection Service (USPIS) is committed to defending the nation’s mail system from illegal use, no matter who the user is,” said Inspector in Charge Gonzalez. “In this case, it includes ensuring that greedy individuals like Joseph Mora and Cristal Avila, who used positions of trust within the U.S. Military to steal sensitive equipment, do not use the U.S. Mails as the means to sell their ill-gotten goods. Postal Inspectors will continue to work tirelessly with our local, state and federal law enforcement partners to investigate these crimes and bring the perpetrators to justice.”
The DCIS Southwest Field Office, HSI, Army CID, and USPIS conducted this investigation. Assistant U.S. Attorneys Michael C. Galdo and Karthik Srinivasan prosecuted this case on behalf of the government.
#####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.
Jefferson County man admits to role in drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Duane Curtis Jackson, of Shenandoah Junction, West Virginia, has admitted to his role in a drug conspiracy that spanned several states, U.S. Attorney Bill Powell announced.
Jackson, also known as “Duke,” 28, pled guilty today to one count of “Possession with Intent to Distribute Heroin and Fentanyl.” Jackson admitted to having heroin and fentanyl in March 2019 in Jefferson County.
Jackson 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.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, are prosecuting the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Jacksonville Man Pleads Guilty to Distributing Child Sexual Abuse Images Using Social Media AppRead the Press Release
Jacksonville, Florida – Earl Frederic Owens (32, Jacksonville) has pleaded guilty to distributing child sex abuse images over the internet. He faces a mandatory minimum penalty of 5 years, and up to 20 years, in federal prison, and a potential life term of supervised release. Additionally, Owens will be required to register as a sex offender and to forfeit several computer devices seized from his residence. Owens has been in custody since his arrest on November 19, 2019.
According to court documents, the Homeland Security Investigations (HSI) Cyber Crimes Center received a report from Kik, a social messaging application (“app”), that several different user accounts had uploaded and distributed images depicting the sexual exploitation of children to an online chat platform using the Kik app. Further investigation revealed that these materials were distributed from an apartment in Jacksonville where Owens lived.
On November 19, 2019, HSI agents executed a search warrant at Owens’s apartment. During an interview, Owens admitted that he uses the Kik app to chat with strangers about his “urges,” he has an interest in “pedophilia,” and that he traded child sex abuse materials with others online through group chats and private messages using the Kik app. A forensic examination of Owens’s laptop computer revealed that he had collected at least 2,149 images depicting young children being sexually abused.
This case was investigated by Homeland Security Investigations in Jacksonville, and the HSI Child Exploitation Investigations Unit – Cyber Crime Center in Fairfax, Virginia. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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.
Jackson Man Pleads Guilty under Project EJECT to Illegally Selling a GunRead the Press Release
Jackson, Miss. – Michael Mays a/k/a Michael Mayes, 35, of Jackson, pled guilty today before U.S. District Tom S. Lee to knowingly selling a firearm to a felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michele Sutphin with the Federal Bureau of Investigation in Mississippi.
On July 19, 2018, agents with the Federal Bureau of Investigation observed Mays sell a firearm in Jackson to a convicted felon, and upon questioning, Mays admitted to knowing the person to whom he sold the firearm was a convicted felon. It is illegal for a person to sell a firearm to a person he knows or has reasonable cause to believe is a convicted felon.
Mays was indicted on August 11, 2020. He will be sentenced by Judge Lee on March 18, 2021.
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). 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. Former Attorney General Jeff Sessions 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.
Investment Manager Indicted on Fraud Charges for Allegedly Swindling Clients Out of Hundreds of Thousands of DollarsRead the Press Release
CHICAGO — An investment manager has been indicted on federal fraud charges for allegedly swindling a Chicago resident and other clients out of hundreds of thousands of dollars.
EUGENE Z. NOWAK, 57, of Jersey City, N.J., is charged in an indictment returned in U.S. District Court in Chicago with three counts of wire fraud, one count of mail fraud, and one count of money laundering. Arraignment is scheduled for Friday at 10:00 a.m. before U.S. District Judge Matthew F. Kennelly.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorney Kartik K. Raman.
According to the indictment, Nowak served as president of Global Funding Partners, a Nevada-based company that purported to be an investment firm engaged in complex business dealings with large multinational banking and financial institutions. From 2013 to 2016, Nowak, while then residing in Naples, Fla., falsely represented to investors that their funds would be used to provide “bridge funding,” or temporary funding, for Global Funding Partners to close a $33 million financial transaction involving Scotiabank, the indictment states. Nowak falsely promised that investors, including the Chicago resident, would receive high-yield returns in a short amount of time, and that they could cancel their investment at any time for a full refund with interest, the indictment states.
In reality, Nowak and Global Funding Partners were not parties to a transaction with Scotiabank. Nowak instead allegedly diverted investor funds to cover his personal expenses, including payments to a car dealership and pawn shop in Naples, Fla. As a result of the scheme, Nowak caused investors, including the Chicago resident, to suffer hundreds of thousands of dollars in losses, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Homeland Security Investigations Special Agent Charged with Tax, Structuring, and Concealment OffensesRead the Press Release
CHICAGO — A special agent with Homeland Security Investigations, a criminal investigative unit within the U.S. Department of Homeland Security, has been indicted on federal tax, structuring, and concealment offenses.
ANTHONY SABAINI, who was assigned to HSI’s field office in Oakbrook Terrace, Ill., is charged with five counts of willfully filing a false federal tax return, one count of structuring a currency transaction, and one count of willfully engaging in a scheme to conceal a material fact in a matter within the jurisdiction of DHS, according to an indictment returned Wednesday in U.S. District Court in Chicago. Sabaini, 38, of Naperville, Ill., will be arraigned on a date to be set by the Court.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The DHS Office of Inspector General's Chicago Field Office participated in the investigation. Valuable assistance was provided by the U.S. Drug Enforcement Administration and the U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility. The government is represented by Assistant U.S. Attorney Nicholas Eichenseer.
According to the indictment, Sabaini from 2014 to 2018 deposited a total of approximately $251,371 in cash into a bank account for which he was the sole signatory. He made the deposits via approximately 162 ATM or teller transactions, with the amount of each deposit being less than $10,000, the indictment states. The deposits were structured in an effort to evade federal reporting rules, which require financial institutions to notify the U.S. Department of the Treasury about transactions of more than $10,000, the charges allege.
The tax charges allege that for each of those five calendar years, Sabaini willfully filed a false federal tax return that underreported his total income.
The concealment charge alleges that Sabaini in 2017 and 2018 knowingly submitted false memorandums to his HSI supervisors to seek approval to use and pay a confidential informant in a purported criminal investigation. In the memorandums, Sabaini knowingly covered up material facts, including that the informant was a target of ongoing drug investigations conducted by the FBI and DEA, and that the informant had recently engaged in unauthorized criminal conduct that Sabaini knew would have affected his suitability as a paid HSI informant, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each tax charge is punishable by up to three years in federal prison, while the structuring and concealment charges are each punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Hollywood Man Arrested on Federal Charge Alleging He Recklessly Operated a Drone that Crashed into and Damaged LAPD HelicopterRead the Press Release
LOS ANGELES – Special agents with the FBI this morning arrested a Hollywood man on a federal charge alleging that he recklessly operated a drone that crashed into a Los Angeles Police Department helicopter.
The drone damaged the LAPD aircraft and the pilot was forced to initiate an emergency landing. The drone also damaged a vehicle when the unmanned aircraft fell from the sky after the crash.
Andrew Rene Hernandez, 22, was arrested pursuant to a criminal complaint filed Wednesday that charges him with one count of unsafe operation of an unmanned aircraft.
According to the complaint filed in United States District Court, during the early morning hours of September 18, LAPD officers responded to a burglary call at a pharmacy in Hollywood. The responding officers requested air support, and an LAPD helicopter flew toward the scene. As the helicopter approached the pharmacy, the pilot saw the drone and attempted to evade the unmanned aircraft. Despite the evasive efforts, the drone stuck the helicopter, forcing the pilot to initiate an emergency landing. The drone damaged the helicopter’s nose, antenna and bottom cowlings. According to the complaint, “if the drone had struck the helicopter’s main rotor instead of the fuselage, it could have brought the helicopter down.”
LAPD officers located parts of the drone near the pharmacy and discovered a vehicle damaged by the drone as it fell from the sky. Further investigation, including a review of the drone’s camera and SD card, led to the identification of Hernandez as the drone’s operator.
The FBI executed additional search warrants in late October at Hernandez’s residence. Hernandez admitted to flying the drone on September 18 after he heard police vehicles and an approaching helicopter just after midnight. According to the complaint, Hernandez said he flew his drone “to see what was going on.” As the drone was ascending, Hernandez saw the drone “smacked” by the hovering police helicopter, and it fell to the ground at a nearby residence, the complaint states.
Hernandez is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
As charged, the unsafe operation of an unmanned aircraft offense alleged in the complaint is a misdemeanor offense that carries a statutory maximum sentence of one year in federal prison.
The investigation in this matter is being conducted by the FBI’s Joint Terrorism Task Force and the LAPD, with the assistance of the Federal Aviation Administration.
This case is being prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Terrorism and Export Crimes Section.
The case against Hernandez is believed to be the first criminal case in the nation alleging the unsafe operation of an unmanned aircraft. Today’s arrest comes during National Drone Safety Awareness Week, which is sponsored by the Federal Aviation Administration and seeks to promote drone safety.
Hallows Sentenced to 46 Months in Federal Prison After Pleading Guilty to Possession of Child PornographyRead the Press Release
SALT LAKE CITY – Timothy James Hallows, age 62, of Kaysville, who pleaded guilty to possession of child pornography in July, will spend 46 months in federal prison. U.S. District Judge Howard C. Nielson, Jr., imposed the sentence Wednesday morning in U.S. District Court in Salt Lake City.
Local authorities arrested Hallows on Oct. 16, 2019. Federal prosecutors filed a Felony Information in May 2020 charging him with possession of material containing an image of child pornography involving a minor who had not attained 12 years of age. Local charges were dismissed following the filing of the federal charges.
As a part of a plea agreement reached with federal prosecutors, Hallows admitted that in 2019 he knowingly possessed sexually explicit images of children on his cell phone. The images included depictions of prepubescent children being sexually assaulted by adults.
Federal prosecutors agreed to recommend Hallows be given credit for acceptance of responsibility in the case and be sentenced to 46 months in federal prison, the low end of the federal sentencing guidelines in the case. There is no parole in the federal prison system. When he finishes his sentence, he will be on supervised release for five years. He was ordered to pay a $5,000 assessment under the Justice for Victims Trafficking Act as well as a $100 assessment for the count of conviction.
Local and federal law enforcement agencies and prosecutors coordinated the investigation and prosecution of this case, including members of the FBI’s Child Exploitation Task Force, the Davis County Sheriff’s Office, the Davis County Attorney’s Office and the U.S. Attorney’s Office. This coordination happens regularly in child exploitation cases because of the significant penalties available in the federal system. Law enforcement task force officers investigating these cases work seamlessly with prosecutors in either venue.
“These are cases that motivate all prosecutors because they involve the victimization and exploitation of children,” U.S. Attorney John W. Huber said today. “My office regularly partners with the Office of the Davis County Attorney on child exploitation cases such as this one, as we do with other county attorney offices throughout the state. Together, we seek the best court system to achieve justice for child victims and their families. We recognize and appreciate the significant work Davis County officers and prosecutors contributed to the successful prosecution of this case.”
Federal judges consider a number of factors when imposing a sentence for possession of child pornography. They include the number of images, use of a computer, distribution of the images, the defendant’s abuse of a position of trust to conceal the offense, the ages of the children in the images, the defendant’s criminal history, the nature and circumstances of the offense, and the characteristics of the defendant. Multiple counts do not change the sentence because the court is aware of each image possessed by the defendant regardless of how many counts are charged.
Great Falls meth, heroin dealer sentenced to prisonRead the Press Release
GREAT FALLS — A Great Falls man, whom law enforcement officers revived from a drug overdose and later arrested after a chase, was sentenced today to six years in prison and four years of supervised release for trafficking methamphetamine and heroin in the community, U.S. Attorney Kurt Alme said.
Russell Robert Moddison, 48, pleaded guilty on Aug. 19 to possession with intent to distribute controlled substances.
Chief U.S. District Judge Brian M. Morris presided.
The prosecution said in court documents filed in the case that for months, the Russell Country Drug Task Force had been receiving reports that Moddison was trafficking drugs in Great Falls. On Feb. 19, Great Falls police officers responded to a residence for a report of a man who was unresponsive with blue lips. Officers saw Moddison on the floor and an unidentified male attempting to give him CPR. Officers took over the CPR. A female told officers that Moddison could have taken drugs and had asthma. Officers gave Moddison a dose of Narcan and continued chest compressions until medical responders arrived. Moddison began to wake up and mumble. The other people in the residence fled at that point, and Moddison was taken to the hospital for further treatment.
Probation and parole officers searched the residence and found $5,955 in Moddison’s wallet, drug paraphernalia and small amounts of meth in his car.
A few weeks later, officers got into a chase with Moddison and found him in possession of meth and heroin and $5,620 in cash.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Drug Enforcement Administration, the Great Falls Police Department and the Russell Country Drug Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Gaithersburg Brothers Facing Federal Charge for Their Roles in a $5 Million Romance SchemeRead the Press Release
Greenbelt, Maryland – David Annor, age 27, and Lesley Annor, age 22, both of Gaithersburg, Maryland, were arrested on November 16, 2020, on the federal charge of money laundering, in connection with an alleged romance scheme in which the participants in the scheme induce their victims, often people who are elderly and isolated, to send money to other co-conspirators based on romantic assertions and other misrepresentations, including promises to travel to the United States to unite with the victims. The Annors allegedly received and laundered the payments from the victims.
The federal charge was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge James A. Dawson of the Federal Bureau of Investigation - Washington Field Office Criminal Division; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Matthew S. Miller of the United States Secret Service - Washington Field Office.
U.S. Attorney Robert K. Hur stated, “The criminal complaint charges that these defendants were part of a conspiracy that stole from many vulnerable and elderly victims from around the world, defrauding them through lies and laundering the funds internationally. The deceit used to steal from these victims was heartless. The U.S. Attorney’s Office and our law enforcement partners are committed to bringing to justice fraudsters who prey upon the elderly. We will continue our outreach efforts to make the public aware of scams and frauds targeting elderly victims and encourage anyone who believes they may be a victim to contact the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
According to the affidavit filed in support of the criminal complaint, the Annors are part of a romance scheme in which their co-conspirators find their victims online, typically through social media or dating websites, and communicate with the victims using e-mail, cell phones and online applications. The complaint alleges that since April 2017, the brothers and another co-conspirator have received and laundered over $5 million from approximately 200 romance fraud victims throughout the United States and overseas. The age range of the known victims is from 38 to 83 years old.
Specifically, the affidavit alleges that David registered a business entity in the State of Maryland called Ravid Enterprise LLC, a shell company through which the conspirators laundered the proceeds of the fraud scheme. According to the articles of organization, Ravid Enterprise is “a car sale business where buyers come in to get cars which are from the auction.” David is listed as the resident agent for the company and his Gaithersburg residence—which is an apartment—is the registered address of the company. Bank records show that between at least May 2017 and September 2020, David and Lesley Annor opened or maintained bank accounts at 10 different financial institutions, including accounts opened in the name of Ravid Enterprise, for the purpose of receiving payments from victims of the romance scheme.
As detailed in the criminal complaint, the Annors’ co-conspirators made contact with the victims and after convincing the victims that they were in a romantic relationship, requested money from the victims for various purposes, often assuring the victims that they would be repaid. The co-conspirators provided the victims with details on where to send the payments, which were accounts controlled by the Annors or another co-conspirator, or their mailing address, where victims would mail cashier’s checks. The eight victims described in the criminal complaint each allegedly lost between $17,500 and $201,000.
The criminal complaint alleges that after receiving the victim payments, the Annors sent a portion of the money to other co-conspirators, often located in Ghana, and kept at least 10 percent of the victim payments for themselves. The Annors also allegedly laundered the victim payments by sending each other wires, checks, and possibly cash.
If convicted, David and Lesley Annor each face a maximum sentence of 20 years in federal prison for money laundering. 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. David and Lesley Annor had initial appearances and detention hearings in U.S. District Court in Greenbelt and U.S. Magistrate Judge Charles B. Day ordered that they both be detained pending trial.
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 FBI, the U.S. Postal Inspection Service, and the U.S. Secret Service for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Leah B. Grossi, who are prosecuting the case.
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Fresno Man Indicted on Firearm ChargeRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today charging Sammy Booboo Garcia, 19, of Fresno, with unlawfully possessing a firearm after being convicted of a felony crime, U.S. Attorney McGregor W. Scott announced.
According to court documents, on April 29, law enforcement officers in Fresno stopped Garcia for a traffic violation and arrested him when they found him in possession of a firearm. Garcia has a felony conviction for corporal injury on a spouse or cohabitant and is prohibited from possessing firearms or ammunition.
This case is the product of an investigation by the Fresno Police Department, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Katherine E. Schuh and Antonio J. Pataca are prosecuting the case.
If convicted, Sammy Booboo Garcia faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fresno Man Charged with Illegally Possessing Thousands of Fentanyl Pills and a FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Armando Chavez Jr., 19, of Fresno, charging him with possessing over 40 grams of fentanyl with intent to distribute it and possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney McGregor W. Scott announced.
According to court documents, Armando Chavez Jr. was selling counterfeit oxycodone pills laced with fentanyl on Snapchat, a social media platform. After a nonfatal overdose was reported, Federal law enforcement agents working in an undercover capacity contacted Chavez and ordered oxycodone pills from him. Chavez agreed to sell the pills and drove to a predetermined meeting location. Once he arrived, Chavez and his car were searched, and law enforcement found approximately 100 fentanyl pills. Agents then executed a federal search warrant at Chavez’s residence. Inside his bedroom, law enforcement found over 1,300 fentanyl pills packaged for distribution and a loaded handgun.
This case is the product of an investigation by the Drug Enforcement Administration, the Department of Homeland Security Investigations, the California Highway Patrol, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Chavez faces a five-year mandatory minimum sentence, a five-year consecutive mandatory minimum sentence (for a total 10-year mandatory minimum sentence), a maximum penalty of life in prison, and a fine of up to a $5 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Fourteen People Charged with Trafficking Heroin, Fentanyl, and Cocaine in Racine, WisconsinRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that 14 defendants have been charged in federal court in connection with a drug trafficking organization that operated in Racine, Wisconsin, with ties to Chicago, Illinois. The indictment charges the defendants with trafficking more than 100 grams of heroin, more than 40 grams of fentanyl, and more than 28 grams of cocaine base in the form of “crack” cocaine. If convicted, each defendant faces a mandatory minimum of 5 years in prison and up to forty years in prison.
On November 18, 2020, federal, state, and local law enforcement officers conducted a significant operation that led to the arrest of 10 of these defendants. The officers also executed search warrants in Racine. As a result of the investigation, officers seized 7 firearms, including a shotgun and ammunition; quantities of drugs, including over 200 grams of heroin, over 100 grams of crack cocaine, over 50 grams of fentanyl, and various quantities of suboxone strips, oxycodone pills and PCP. Officers also seized approximately $8,000 in U.S. currency. No one was injured during the operation.
United States Attorney Krueger said in announcing this takedown: “Drug trafficking organizations fuel our nation’s twin epidemics of drug addiction and firearms violence. These arrests underscore the extraordinary collaboration among all levels of law enforcement to pursue drug traffickers and hold them accountable.”
The defendants charged in this law enforcement action are:
Name
Age
Residence
RONNIE R. MITCHELL
42
Racine, WI and Chicago IL
DEVEREAUX A. PATTON
44
Racine
STEVIE L. PATTON JR.
28
Racine
APRIL C. DAVIS
27
Racine
MARTIESE D. HUDSON
37
Racine
BRIAN J. EDWARDS
59
Racine
TERRY N. MCLAIN
50
Racine
ANGELA M. BRZINSKI
33
Racine
ANNA N. LAWRENCE
34
Racine
MENACHIN O. BROWN
37
Racine
ALEXANDER MONETTE
53
Racine
BRIAN N. SAUNDERS JR.
21
Racine
LAMARR D. MCCLELLAN
41
Racine
DESHAWN T. CHATMAN
29
Racine
“The Drug Enforcement Administration (DEA) is committed to working with its local, state and federal law enforcement partners to keep Wisconsin citizens safe from drug trafficking and the violence that is always associated with it. Today’s arrests show the resolve of law enforcement to bring to justice those who profit from the national drug epidemic,” said DEA Milwaukee District Office Assistant Special Agent in Charge Paul E. Maxwell.”
FBI Special Agent in Charge Robert Hughes said: “Shared resources and intelligence among law enforcement partners led to the successful takedown of an organized drug trafficking operation, and the arrests of multiple subjects. The FBI’s Southeastern Wisconsin Regional Gang Task Force in Racine will continue to work with our partners to keep our communities free of drugs and violence.”
“Drug dealers profit from putting dangerous, addictive, and oftentimes deadly poison into the hands of our community. They also frequently possess firearms to further their criminal enterprise,” said Racine County Sheriff Christopher Schmaling. “This extensive, protracted investigation, and ultimately the outcome, would not have been possible without the collaborative effort of local, state, and federal law enforcement agencies. This operation is a huge win for the law abiding citizens of Racine County. “
“The Racine Police Department would like to thank the Drug Enforcement Agency and the FBI, along with all the local law enforcement agencies for this collaborative investigation. We will continue to strive to make the greater Racine community a great place to live,” said Art Howell, Chief of Police, City of Racine Police Department.
Mount Pleasant Police Department Chief of Police Matt Soens stated, “The Mount Pleasant Police Department supports the enforcement and prosecution of dangerous drug traffickers that contribute to drug addiction, drug overdoses, and violence throughout our communities. Through the assistance of our local, state, and federal law enforcement partners, we are able to thoroughly investigate these traffickers and hold them accountable.”
The defendants were charged based on an investigation led by law enforcement agents and officers from the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the North Central High Intensity Drug Trafficking Area (HIDTA), the Racine County Sheriff’s Department, the City of Kenosha Police Department, the City of Racine Police Department, and the City of Mount Pleasant Police Department. Assistant United States Attorney Mario Gonzales is prosecuting the case.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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.
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For Additional Information Contact: Public Information Officer Kenneth Gales
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Former Uniontown Medical Group Office Manager Sentenced to Prison for Embezzlement and Tax SchemeRead the Press Release
PITTSBURGH, PA - A resident of Fayette County, PA, has been sentenced in federal court to 28 months’ incarceration followed by three years of supervised release on charges of wire fraud and filing false income tax returns, United States Attorney Scott W. Brady announced today. Additionally, the defendant was ordered to forfeit to the United States approximately $926,940, and additional funds she maintained in a 401K retirement account held by her employer, Grandview Medical Management. She was also ordered to make restitution to the IRS totaling $270,426.
United States District Judge Mark R. Hornak imposed the sentence on Cynthia L. Demniak, 60, of Leckrone, PA.
The government represented to the court that between 2013 and 2018. Demniak, in her position as office manager for Grandview Medical Management located in Uniontown, PA, embezzled approximately $926,940 from her employer, which she used for personal expenses and to satisfy a gambling addiction. The court was also advised that for tax years 2013 through 2018, Demniak materially underreported the embezzled income from Grandview Medical Center on her federal income tax returns.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations and United States Postal Inspection Service are conducted the investigation that led to the prosecution and conviction of Cynthia L. Demniak.
Former President of Recycling Company Sentenced to 18 Months for Storing Hazardous Waste & Tax ViolationsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that James Moss, 61, Ladysmith, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 18 months in federal prison for conspiring to store and transport hazardous waste without required permits and manifests, in violation of the Resource Conservation and Recovery Act, and with conspiring to evade the payment of employment taxes and income taxes to the IRS.
Moss pleaded guilty to these charges on September 1, 2020. Moss worked for 5R Processors Ltd. (5R) based in Ladysmith, which was a Wisconsin-based corporation involved in recycling electronic equipment, appliances, and other assets. According to the information, 5R operated numerous facilities and warehouses including in Ladysmith, Glen Flora, Catawba and West Bend, Wisconsin, and in Morristown, Tennessee. Moss started at 5R in January 2007 and became its President in 2010. As President of 5R, Moss was responsible for managing all plant operations, including shipping, receiving, trucking, sales, de-manufacturing, warehousing, accounting, and payroll.
From 2011 to 2016, Moss and others, conspired to (1) store hazardous waste (i.e broken and crushed CRT glass that contained lead) at unpermitted facilities in Catawba and Glen Flora in Wisconsin, and in Morristown, Tennessee; (2) transport the hazardous waste without a required manifest; and (3) conceal the above violations from state regulators in Wisconsin and Tennessee, as well as auditors with a nationwide recycling certification program (R2).
At his plea hearing, Moss admitted to attempting to conceal the illegal storage and transport of the crushed leaded glass by various means, including: (1) changing the date labels on the containers; (2) hiding the containers by putting them inside semi-trailers and locking the trailer doors; (3) moving the containers to the back of the warehouse and stacking other pallets in front of them, making it impossible for regulators to see the boxes or inspect them; (4) storing the containers at a warehouse on Artisan Drive in Glen Flora, Wisconsin (known as the “Sunshine Building”), and not disclosing the existence of this warehouse, or its contents, to state regulators or R2 auditors; (5) storing the containers at 5R’s plant in Morristown, Tennessee in two warehouse spaces that did not have electricity or power, and which were referred to by 5R employees as the “dark side” and the “dark-dark side;” and (6) providing the state regulators with inaccurate inventory and shipping records for the leaded glass.
Moss also pleaded guilty to a conspiracy with others to defraud the IRS in the collection of employment taxes and income taxes for 5R and two other related companies, Wisconsin Logistic Solutions (WLS) and Pure Extractions. Moss and others failed to truthfully account for and pay over to the IRS all of the federal income taxes withheld from employees and FICA taxes due and owing to the United States for 5R, WLS and Pure Extractions, totaling $858,101.29.
At today’s sentencing, Judge Conley told Moss that his conduct is inexplicable given Moss’s upbringing and life history prior to working at 5R. The judge noted that Moss rationalized his criminal conduct by deluding himself that it was okay because it was the only way to keep himself and other members in the community employed, but that Moss understood what he was doing was wrong --year after year.
Judge Conley praised Moss by doing the right thing and cooperating with the government to help explain and unravel the criminal conspiracy but added that Moss still needed to pay a price. The judge added, “I hope this sentence delivers the message of the severity of your conduct and the debt you must pay to society.”
The charges against Moss were the result of an investigation conducted by the Wisconsin Department of Natural Resources, Bureau of Law Enforcement; the U.S. Environmental Protection Agency, Criminal Investigation Division; and IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Daniel J. Graber.
Former Owners of Therakos, Inc. Pay $11.5 Million to Resolve False Claims Act Allegations of Promotion of Drug-Device System for Unapproved Uses to Pediatric PatientsRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced that Johnson & Johnson (“J&J”) subsidiary Medical Device Business Services, Inc. (“MDBS”) agreed to pay $10 million to settle allegations under the False Claims Act that Therakos, Inc., a former J&J subsidiary, engaged in promotion of the UVAR XTS and CELLEX extracorporeal photopheresis (“ECP”) systems for unapproved uses in pediatric patients between 2006 and 2012. The Gores Group (“TGG”) agreed to pay an additional $1.5 million to resolve allegations that Therakos continued those alleged improper sales and promotion practices after TGG acquired Therakos from J&J in 2012.
In 1999, the Food and Drug Administration (“FDA”) approved UVADEX, the drug administered by the Therakos ECP systems, for “the palliative treatment of the skin manifestations of cutaneous T-cell lymphoma that is unresponsive to other forms of treatment.” Cutaneous T-cell lymphoma is a cancer of the immune system in which cancerous T-cells migrate to the skin, causing lesions. Therakos’s ECP drug/device systems administer the medication UVADEX (methoxsalen) by first removing a portion of the patient’s blood and separating the red blood cells from the white blood cells by using a centrifuge. The red cells are returned to the patient and the UVADEX solution is combined with the white cells. The device then irradiates the drug-cell mixture with ultraviolet light and returns the treated cells to the patient.
The government alleges that between 2006 and 2015, Therakos marketed and promoted its ECP systems to treat pediatric patients for indications that were not approved by the FDA. At no time during this period were the ECP drug/devices approved by the FDA for use in the pediatric population. The government further alleges that Therakos’s improper promotion caused false claims to be submitted to three federal healthcare programs: Medicaid, the Federal Employee Health Benefits Program, and Tricare.
“While physicians are free to exercise their independent medical judgment to prescribe medications for uses beyond FDA approved indications, pharmaceutical and device companies cannot interfere with doctors’ judgment by allegedly pushing the sale of their drugs or devices for non-FDA approved uses, especially in vulnerable populations,” said U.S. Attorney McSwain. “That is what allegedly happened here, and my Office will continue to investigate such cases and hold companies accountable when there could be an effect on pediatric or other vulnerable patients.”
“Investigating allegations of the False Claims Act is a top priority,” said Maureen R. Dixon, Special Agent in Charge for the Office of the Inspector General, U.S. Department of Health and Human Services. “We will continue to work with the U.S. Attorney’s Office to ensure the integrity of the Medicare and Medicaid Programs.”
“The OPM OIG will always prioritize protecting the health and well-being of our most vulnerable patients” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, OPM OIG. “I would like to acknowledge our investigative staff and Department of Justice Partners for their hard work. This settlement represents our joint commitment to not only fighting against false claims but also protecting patients from harm.”
This settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in the Eastern District of Pennsylvania and is captioned United States ex rel. Johnson et al. v. Therakos, Inc. et al., No. 12-cv-1454. The qui tam complaint was filed by Brian McCormick of Ross Feller Casey LLP in Philadelphia, PA.
“We thank the relators and relators’ counsel for their contributions to this case. Without information from citizens like the relators, detecting fraud and conserving government program funds would be much more difficult,” said U.S. Attorney McSwain.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the U.S. Office of Personnel Management Office of the Inspector General, and Department of Defense, Office of Inspector General, Defense Criminal Investigative Service. For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant United States Attorney Charlene Keller Fullmer, Deputy Chief of the Civil Division, Assistant United States Attorney John T. Crutchlow, and former Auditor Denis Cooke.
Former FCI-Miami Correctional Officer Involved in Bribery Scheme Sentenced to 70 Months’ ImprisonmentRead the Press Release
Miami, Fl. -- A former federal correctional officer was sentenced today to 70 months in prison for sneaking contraband items into the Miami prison where he worked and distributing them to inmates in exchange for bribe money.
From as early as December 2018 through September 2019, Victor Manuel DeJesus (“DeJesus”), 48, used his official position as a correctional officer at FCI-Miami federal prison to bring prohibited items, including controlled substances, cellular telephones, and SIM cards, into the prison and distribute them to inmates who lived there. In exchange for this service, DeJesus accepted bribe payments from inmates and their associates. DeJesus used inmate co-conspirators to distribute the contraband within FCI-Miami.
In connection with this criminal conduct, DeJesus pled guilty earlier this year to conspiracy, bribery, and other charges.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and James F. Boyersmith, Special Agent in Charge, Department of Justice Office of the Inspector General, Miami Field Office, made the announcement.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI, Department of Justice Office of the Inspector General, the United States Postal Service, and the Bureau of Prisons in this matter. Assistant U.S. Attorney Alejandra L. López prosecuted this case.
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 19-cr-20660-RNS.
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Former Correctional Officer Charged with Civil Rights Violations for Assaulting InmatesRead the Press Release
SACRAMENTO, Calif. — A former California Department of Corrections and Rehabilitation (CDCR) correctional officer was charged today with criminal civil rights violations and submitting false reports, U.S. Attorney McGregor W. Scott announced.
A federal grand jury in Sacramento returned an indictment against Arturo Pacheco, 38, of Mather, charging him with two counts of deprivation of rights under color of law and two counts of falsification of records in a federal investigation.
According to the indictment, Pacheco was a correctional officer at California State Prison, Sacramento. On Sept. 15, 2016, Pacheco and another former correctional officer, Ashley Marie Aurich, escorted an inmate whose hands were handcuffed behind the inmate’s back. During the escort, Pacheco bent down behind the inmate and pulled the inmate’s legs out from under him. This caused the inmate to immediately fall forward, violently striking his head and upper torso on the concrete. The inmate-victim was taken to the hospital where he died approximately two days later.
“Pacheco, abused his position of authority to harm an inmate,” said U.S. Attorney Scott. “Instead of upholding and enforcing the law, he went on to conceal his actions and asked others to assist him. The U.S. Attorney’s Office will continue to hold accountable correctional officers who violate the public’s trust by harming inmates or by covering up wrongdoing.”
“The FBI’s Civil Rights Program dedicates significant effort to investigating police misconduct and other crimes committed by individuals exploiting their government-granted powers. When individuals working in an official capacity violate the trust of their communities by abusing that power, they undermine the hard work of all officials," said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. "The FBI is committed to strengthen trust in law enforcement by holding those who abuse their privileges and abandon their responsibilities accountable.”
Aurich was charged separately with a single count of falsification of records in a federal investigation. Pacheco and Aurich allegedly prepared false reports regarding Pacheco’s assault on the victim in which both Pacheco and Aurich failed to identify another witness to the assault and inaccurately described Pacheco’s conduct. Pacheco and Aurich prepared their respective false reports in order to impede and obstruct the ensuing federal investigation.
According to the indictment, on May 19, 2016, Pacheco used his CDCR-issued pepper spray to spray a different inmate in the face. At the time, the inmate was calm and compliant. The pepper spray caused the inmate to experience an extreme burning sensation, physical pain, and temporary blindness. Following this incident, Pacheco submitted another false report in which he falsely described his conduct and the reason why he sprayed the inmate-victim in the face with pepper spray.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Corrections and Rehabilitation, Office of Internal Affairs. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
If convicted of deprivation of rights under color of law, Pacheco faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. If convicted of falsification of records in a federal investigation, Pacheco and Aurich face a maximum statutory penalty of 20 years in prison and $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former City of Newark Official Charged with Scheming with Two Newark Businessmen to Obtain BribesRead the Press Release
NEWARK, N.J. – A former City of Newark official and officer of the Newark Community Economic Development Corporation (NCEDC) and two business owners were charged today for their roles in a bribery scheme, U.S. Attorney Craig Carpenito announced.
Carmelo G. Garcia, 45, of Hoboken, New Jersey; Frank Valvano Jr., 52, of Florham Park, New Jersey; and Irwin Sablosky, 60, of Springfield, New Jersey, are each charged by complaint with one count of conspiracy to commit bribery in connection with the business and transactions of a federally funded local government and organization. Garcia was a high-level Newark official, and prior to that, an executive officer of the NCEDC (now known as “Invest Newark”). Valvano and Sablosky are co-owners of a New Jersey-based pawnbroker and jewelry business. The defendants will appear in federal court on a date to be determined
According to documents filed in the case and statements made in court:
From 2017 through April 2019, Garcia sought and received significant monetary payments and other benefits from Valvano, Sablosky, and others in exchange for Garcia’s use of his official positions and influence to assist Valvano and Sablosky with securing redevelopment agreements (RDAs) with the City of Newark to purchase and acquire various city-owned properties for redevelopment, including obtaining preliminary designated developer status, and to ensure that Garcia did not act against their interests. In addition to money, Garcia also received jewelry from the pawnbroker and jewelry business that Valvano and Sablosky co-own.
Phone records and text messages obtained by law enforcement document extensive communications among Garcia, Valvano, Sablosky, and others about the bribery scheme, including text messages in which Garcia arranged to personally collect cash provided by Valvano and Sablosky. In one instance, in June 2018, Garcia, then acting deputy mayor and director of the city’s Department of Economic and Housing Development (EHD Department), received an envelope containing $25,000 in cash, supplied by Valvano through an intermediary, in the restroom of a New Jersey restaurant. Text messages obtained by law enforcement show that Garcia used his personal cellular phone to coordinate the location and timing of the meeting. Approximately five days later, the EHD Department issued letters granting preliminary designated developer status for several properties to two limited liability companies controlled by Valvano and Sablosky. Garcia, whose name and official title were also prominently displayed on the letterhead, was copied on both letters.
In text messages, Valvano and Sablosky discussed additional payments of money and jewelry the two had made to Garcia, and also to an associate of Garcia (Individual 1), as well as their ongoing efforts to obtain RDAs with the city to acquire and redevelop additional properties. For instance, on March 31, 2019, Valvano texted Sablosky to complain that Garcia’s associate, who sometimes served as an intermediary between Garcia and Sablosky and Valvano, was “already looking for [more] money.” After observing that “We’ve done nothing but spend tons of money and give away jewelry,” Sablosky noted that “Carmelo [Garcia] wants more too. We can’t afford it . . . We’re a [expletive] money well for these guys to keep coming back to.”
On April 13, 2019, Sablosky also sent text messages to Valvano regarding a meeting he had with Garcia the previous day and his giving Garcia an additional payment of $5,000. Sablosky noted that Garcia had “showed up [at] 5pm last night” to discuss another “RDA” he and Valvano were attempting to obtain from the city. When Valvano asked whether there was “Any mention of $$,” Sablosky responded, “He [Garcia] didn’t just come to visit!! Lol. He got another 5,” referencing the $5,000 payment. Sablosky also told Valvano, “When you get back we have to add everything and sit down with him [Garcia]. I want to get these RDAs through before we start rocking the boat.”
The count of conspiracy to commit bribery carries a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gross pecuniary gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jeffrey J. Manis, Elaine K. Lou, and Jihee G. Suh of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Chief Executive Officer and Chief Operating Officer of Publicly Traded Biopharmaceutical Company Found Guilty of Accounting FraudRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that, following a four-week trial, PARKER H. “PETE” PETIT, the former chief executive officer of MiMedx Group, Inc. (“MiMedx”), a publicly traded biopharmaceutical company, was convicted of securities fraud, and WILLIAM TAYLOR, the former chief operating officer of MiMedx, was convicted of conspiracy to commit securities fraud, to make false statements in SEC filings, and to mislead the conduct of audits. The convictions stem from their participation in a scheme to fraudulently inflate MiMedx’s revenue.
Acting U.S. Attorney Audrey Strauss said: “As the jury found, Parker Petit and William Taylor employed secret agreements and corrupt financial inducements with four distributors to materially misstate the quarterly and annual sales revenue of MiMedx. In the process, they deceived the SEC, auditors, and the investing public, repeatedly misrepresenting the financial condition of their publicly traded company. Now they await sentencing for their crimes.”
According to the allegations contained in the Indictment and the evidence presented at trial:
MiMedx was headquartered in Marietta, Georgia, and its securities traded under the symbol “MDXG” on the NASDAQ. MiMedx sold regenerative biologic products, such as skin grafts and amniotic fluid, both directly to end users, such as public and private hospitals, and to various stocking distributors, which, in turn, resold the product to end users.
One of the most critical financial metrics disclosed in MiMedx’s public filings with the Securities and Exchange Commission (“SEC”), and touted in MiMedx’s accompanying press releases, was MiMedx’s quarterly and annual sales revenue. Under Generally Accepted Accounting Principles (GAAP) and SEC guidance, a company like MiMedx that engages in the sale of products through a distributor may recognize revenue upon transfer of the product to a distributor if certain requirements are satisfied, including that delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable, and collectability of payment is reasonably assured. PETIT and TAYLOR repeatedly demonstrated and touted their understanding of these rules governing revenue recognition. They also publicly identified revenue as the principal metric reflecting MiMedx’s growth, and touted MiMedx’s consistent record of quarter-over-quarter revenue growth and meeting or exceeding revenue guidance in 17 consecutive quarters, from 2011 through year-end 2015. By 2015, however, it became increasingly difficult for MiMedx to reach its revenue guidance due to decreased demand from certain distributors and the increasingly aggressive revenue targets that MiMedx had publicly announced.
Confronted with the difficulties faced by MiMedx in meeting its quarterly and annual revenue guidance by legitimate means, PETIT and TAYLOR engaged in a fraudulent scheme to falsely recognize revenue upon the shipment of MiMedx product to four stocking distributors, CPM, SLR, Stability Biologics (“Stability”), and First Medical, in the second through fourth quarters of 2015. PETIT and TAYLOR caused MiMedx to report fraudulently inflated revenue figures to the investing public in order to ensure that the reported figures fell within MiMedx’s publicly announced revenue guidance, and to fraudulently convey to the investing public that MiMedx was accomplishing consistent growth quarter after quarter, as PETIT and TAYLOR had falsely touted to the investing public. The fraudulent scheme involved the following central features:
- As to CPM, in the second quarter of 2015, PETIT and TAYLOR caused MiMedx fraudulently to recognize $1.4 million in revenue by (1) making a $200,000 sham “consulting” payment to CPM’s owner to bribe CPM to buy MiMedx product and (2) secretly agreeing to send CPM approximately $1.1 million of product it did not want and did not intend to sell, while promising that CPM could return the product to MiMedx and swap it for different product in a subsequent quarter. PETIT and TAYLOR entered into the sham “consulting” agreement to conceal that the payment was a bribe to purchase product, and CPM’s owner performed no consulting work for the payment. Neither PETIT nor TAYLOR disclosed to MiMedx’s outside auditors the “consulting” payment or product swap.
- As to SLR, in the third quarter of 2015, PETIT and TAYLOR caused MiMedx fraudulently to recognize $4.6 million in revenue by booking the revenue despite understanding that SLR would not make a timely payment for the product, and certainly would not do so within contractual terms. To hide from MiMedx’s auditors that the collectability of payment from SLR was questionable, during the fourth quarter 2015, PETIT arranged for his adult children to use a shell company to loan money to SLR (money that came from a trust fund established by PETIT for their benefit), with the understanding that the loan proceeds would be used in substantial part to pay down SLR’s debt to MiMedx. PETIT did not disclose the loan to MiMedx’s outside auditors and made false and misleading statements to the auditors about SLR’s ability to pay MiMedx.
- As to Stability, in the third and fourth quarters of 2015, PETIT and TAYLOR caused MiMedx improperly to recognize $2.6 million of revenue, where they (1) failed to agree with Stability on the essential terms of the deal, including when payment was due; (2) reached a secret understanding that Stability could swap or return unwanted product in subsequent quarters; and (3) understood that Stability could not pay for the product in a timely fashion. In fact, PETIT granted the right of return to Stability in a back-dated letter he hid from MiMedx’s internal accountants and outside auditors.
- As to First Medical, in the fourth quarter of 2015, TAYLOR caused MiMedx improperly to recognize $2.2 million in revenue by making an undisclosed promise to First Medical that it could return any product that it could not sell and that MiMedx would not leave First Medical with any losses. To carry out the scheme, TAYLOR sent two emails four seconds apart to First Medical. The first was a “cover story” that purported to require payment within a fixed period, as required by MiMedx’s accountants. TAYLOR forwarded the first email to MiMedx’s accounting department. The second email, sent only four seconds after the first, memorialized the true terms of the deal, which involved an agreement to defer payment and take back product if it could not be sold. TAYLOR hid the second email from MiMedx’s internal accountants and outside auditors. TAYLOR also arranged for a false audit “confirmation,” which falsely represented that First Medical was required to pay within a fixed period and omitted the true terms of the deal, to be provided to MiMedx’s outside auditors.
PETIT’s and TAYLOR’s fraudulent manipulation of MiMedx’s revenue caused MiMedx to report materially inflated revenue in the second, third, and fourth quarters of 2015, and for the full year 2015. In its 2015 10-K, MiMedx reported annual revenue that was fraudulently inflated by approximately $8.2 million. Absent this fraudulent inflation of revenue, MiMedx would have missed both (1) its quarterly revenue guidance in the third and fourth quarters of 2015 and annual revenue guidance for 2015 and (2) analyst revenue consensus for the second through fourth quarters of 2015 and the full year 2015.
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PARKER H. “PETE” PETIT, 81, was convicted of one count of securities fraud, and WILLIAM TAYLOR, 52, was convicted of one count of conspiracy to commit securities fraud, make false filings with the SEC, and mislead the conduct of audits. The securities fraud count carries a maximum sentence of 20 years in prison, and the conspiracy count carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the Court.
PETIT is scheduled to be sentenced before Judge Rakoff on February 23, 2021, and TAYLOR is scheduled to be sentenced before Judge Rakoff on February 24, 2021.
Ms. Strauss praised the outstanding investigative work of the United States Postal Inspection Service. Ms. Strauss also thanked the SEC, which brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore, Scott A. Hartman, and Daniel M. Tracer are in charge of the prosecution.
Florida Man Admits Role in $4.6 Million Health Care Fraud and Kickback Schemes Related to Genetic TestingRead the Press Release
NEWARK, N.J. – A Florida man today admitted his role in using his company to defraud the Medicare Program in connection with fraudulent orders for genetic tests, Attorney for the United States Rachael A. Honig announced.
Edward B. Kostishion, 60, of Lakeland, Florida, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a superseding information charging him with two counts of conspiracy to commit an offense against the United States in connection with schemes to commit health care fraud and violate the Anti-Kickback Statute. Kostishion and five co-defendants were previously charged by indictment in September 2019 in connection with these conspiracies.
According to documents filed in this case and statements made in court:
Kostishion and certain conspirators operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health Inc., a company that another conspirator operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Matthew S. Ellis, a physician based in Gainesville, Florida, and a co-defendant charged in the indictment, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, and other conspirators submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in some cases, falsely indicated that a patient had a personal or family history of cancer. In 2018 alone, Medicare paid clinical laboratories at least $4.6 million for genetic tests that Ellis ordered as part of this scheme.
In addition, Kostishion and certain conspirators entered into kickback agreements with certain clinical laboratories under which the laboratories paid Ark bribes in exchange for delivering DNA samples and orders for genetic tests. Among other things, Ark concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received from Medicare or an amount paid for each DNA sample. In 2018, the clinical laboratories paid Ark at least $1.8 million in bribes.
Each conspiracy count carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Kostishion’s sentencing is scheduled for April 1, 2021.
Co-defendants Kacey C. Plaisance, of Altamonte Springs, Florida, and Kyle D. McLean, of Arlington Heights, Illinois, previously pleaded guilty. Plaisance is scheduled to be sentenced on March 15, 2021. McLean is scheduled to be sentenced on April 12, 2021.
Attorney for the United States Honig credited the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Supervisory Special Agent Thomas Mahoney, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney, Acting Chief of the Opioid Abuse Prevention & Enforcement Unit.
The charge and allegations against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Five Men Charged with Distributing Narcotics in New HavenRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and New Haven Police Chief Otoniel Reyes today announced that five men were arrested yesterday on federal narcotics charges related to the distribution of heroin and crack cocaine in New Haven.
According to statements made in court, these prosecutions are part of a coordinated law enforcement effort to address rising drug-related violence in the Newhallville section of New Haven.
On November 9, 2020, a federal grand jury in New Haven returned indictments charging:
HERMAN BELLAMY, 43, of East Haven, with two counts of possession with intent to distribute, and distribution of, heroin;
TYRONE DUPREE, 24, of Hamden, with three counts of possession with intent to distribute, and distribution of, heroin, and one count of possession with intent to distribute, and distribution of, cocaine base (“crack”) and heroin;
CORNELIUS IVORY, 34, of New Haven, with two counts of possession with intent to distribute, and distribution of, heroin, and one count of possession with intent to distribute, and distribution of, cocaine base and heroin;
SHANTE DAVIS, 44, of West Haven, with four counts of possession with intent to distribute, and distribution of, cocaine base and heroin;
ELIGHI AGNEW, also known as “Lil Bro,” 32, with three counts of possession with intent to distribute, and distribution of, cocaine base and heroin, and one count of possession with intent to distribute, and distribution of, cocaine base.
Each charge carries a maximum term of imprisonment of 20 years.
Dupree is currently detained, and Bellamy, Ivory, Davis and Agnew are released under supervision by the U.S. Probation Office while awaiting trial.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the FBI’s New Haven Safe Streets/Gang Task Force and the New Haven Police Department. The Task Force includes members from the New Haven, Milford, East Haven and West Haven Police Departments, the Connecticut State Police and the Connecticut Department of Correction.
These cases are being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile, S. Dave Vatti and Douglas P. Morabito through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Five Baltimore Men—Including Former Member of Baltimore Safe Streets Program—Facing Federal Indictment for Drug Trafficking OffensesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging four Baltimore men on the federal charge of conspiracy to distribute controlled substances, and a fifth man with possession with intent to distribute controlled substances, being a felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime. The superseding indictment, which was returned on November 18, 2020, adds three new defendants and nine new counts. Charged in the indictment are:
Ronald Alexander, age 50; Mark Brinkley, age 51; Thomas Corey Crosby, age 51; Joseph McClean, age 49; and
Mark McCoy, age 53.The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the 10-count indictment, from at least May 2020 through August 14, 2020, Alexander, Brinkley, Crosby, and McClean conspired to distribute heroin, fentanyl, cocaine, and crack cocaine. According to court documents, Alexander participated in the conspiracy while he was employed by the Safe Streets program in Baltimore City. McClean allegedly distributed controlled substances, including fentanyl and heroin on five occasions between July 1 and July 30, 2020. Brinkley allegedly possessed with the intent to distribute at least 100 grams of heroin, 40 grams of fentanyl, and cocaine. Finally, on August 14, 2020, McCoy allegedly possessed a .40-caliber pistol in furtherance of a drug trafficking crime, specifically, possession with intent to distribute crack cocaine. As stated in the superseding indictment, McCoy had a previous felony conviction and was prohibited from possessing a firearm.
If convicted, as a result of previous federal felony convictions, Alexander and Crosby face a mandatory minimum of 10 years in federal prison and a maximum sentence of life in prison for the drug conspiracy. Brinkley and McClean each face a mandatory minimum of five years in federal prison and a maximum of 40 years in federal prison for the conspiracy. McClean also faces a maximum of 20 years in federal prison for each of five counts of distribution of controlled substances. Brinkley and McCoy face a maximum of 20 years in federal prison for possession with intent to distribute controlled substances, and McCoy also faces a maximum of 10 years in federal prison for being a felon in possession of a firearm. Finally, as a result of a previous federal conviction on the same charge, McCoy faces a mandatory 25 years in prison, consecutive to any other sentence imposed, and up to life in prison, for possession of a firearm in furtherance of a drug trafficking crime. Actual sentences for federal crimes are typically less than the maximum penalties and a federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An initial appearance in U.S. District Court in Baltimore has not yet been scheduled. Alexander and Crosby remain detained. Brinkley and McCoy are in state custody on related charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Robert K. Hur commended the DEA and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Daniel A. Loveland, Jr., who are prosecuting the case.
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Firearms Thief in Harrison County Sentenced to over 5 Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Gulfport, Miss. – Casey Lee Gilmer, 34, of Harrison County, Mississippi was sentenced today by U.S. District Judge Louis Guirola, Jr. to 70 months in federal prison, followed by three years of supervised release, for being an unlawful user of a controlled substance in possession of multiple firearms, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”). Gilmer was also ordered to pay a $5,000 fine.
In September 2019, Gilmer stole ten firearms from a residence where he was working in Jackson County, Mississippi. Gilmer then pawned the firearms at multiple pawnshops along the Mississippi Gulf Coast in order to feed his drug addiction. After the firearms were reported stolen, law enforcement officials were able to identify Gilmer, locate the firearms, and successfully return the firearms to their rightful owner.
Gilmer was indicted on June 23, 2020 and he pled guilty before Judge Guirola on August 27, 2020.
This case was investigated by the ATF and Jackson County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jonathan Buckner.
Final Defendant Sentenced to More than 17 Years in MS-13 CaseRead the Press Release
An MS-13 gang member was sentenced Tuesday to more than 17 years in federal prison for his role in a brutal machete attack at an apartment complex in Dallas, Texas.
Arnold Stephen Miralda-Cruz, age 23, pleaded guilty in February to RICO conspiracy, and was sentenced Tuesday to 210 months in federal prison by U.S. District Judge Jane J. Boyle. Miralda-Cruz is the last of seven defendants sentenced in the case.
“With this sentencing, seven MS-13 gang members responsible for multiple brutal attacks in the Dallas area have now been brought to justice,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Department of Justice will not waver in its commitment to dismantle and destroy the scourge of MS-13.”
“MS-13 is one of the most vicious gangs operating in America today,” said U.S. Attorney Erin Nealy Cox of the Northern District of Texas. “When machete-wielding gang members terrorize our streets, they will be met with certain justice. The Northern District of Texas thanks our law enforcement partners, led by Homeland Security Investigations, who worked tirelessly to take seven brutal men out of our community.”
“This sentencing brings an end to the violence posed by these criminal gang members who have inflicted mayhem in our communities without any remorse or empathy for anyone,” said Deputy Agent in Charge Christopher M. Miller of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Dallas. “The violent crimes this thug and his cohorts committed for the sake of street credibility and their gang’s reputation has ended with this illegal perpetrator behind bars.”
According to court documents, the defendants – mostly El Salvadorian nationals in the United States illegally – admitted they belonged to MS-13, a notoriously violent transnational street gang with the creed, “kill, rob, rape, control.” As members, the defendants were required to commit acts of violence to protect the gang’s reputation, and were urged to attack and kill rivals whenever possible.
To that end, on July 14, 2017, Miralda-Cruz and several other gang members, including codefendants Rolan Ivan Hernandez Fuentes and Jerson Gutierrez-Ramos, ambushed a rival gang member and his roommate inside an apartment complex in Dallas. Armed with machetes, knives, box cutters, and a metal bar, they struck, stabbed, and cut the victims with intent to kill. The attack left one man with his chest and neck sliced open, necessitating emergency cardiac surgery, and the other with lacerations to his face, requiring hospitalization. Following the attack, Hernandez-Fuentes licked the victims’ blood from the machete and stated that he liked the “taste of victory.”
The following day, on July 15, 2017, Miralda-Cruz, Hernandez-Fuentes, Gutierrez-Ramos, and another gang member attacked and extorted a third man outside his home in Irving. Armed with a machete from the night before, Hernandez-Fuentes forced the victim to kneel, then kicked him and stuck him with the machete. The group demanded the victim, a heroin dealer, pay their MS-13 clique an extortion fee, a “tax,” to deal drugs in their territory.
On Aug. 9, 2017, several gang members attacked another rival gang member at an apartment complex in Dallas, intending to kill the victim. Armed with a sledgehammer, an icepick, a metal bar, a stick, and a knife, they chased the victim, caught him when he tripped, and then attacked him. The victim, who managed to escape, suffered stab wounds to his back and lacerations on several parts of his body, requiring hospitalization.
On Aug. 19, 2017, several gang members attacked and robbed another rival gang member at an apartment complex in Irving. Hernandez-Fuentes approached the victim near a Shell gas station and lured him to a nearby apartment complex where his fellow gang members were waiting. After robbing the victim, they savagely beat, kicked, and hit him with a metal bat until they thought that he was dead. The victim suffered a fractured skull and bleeding from his brain, requiring hospitalization.
In late August, several gang members plotted twice to kill a man believed to be a member of a rival gang. They first lured the victim to a park in Dallas, where they lay in wait with machetes and a shotgun. The victim ultimately refused to get out of his car, and they aborted the plan to kill him. A few days later, they renewed the plot. At an apartment complex in Dallas, they confronted the victim with a shotgun. Gutierrez-Ramos pointed the shotgun at the victim’s chest to shoot him, but the weapon jammed and did not fire. The victim managed to drive away.
On Sept. 25, 2017, Hernandez-Fuentes, Gutierrez-Ramos, and other MS-13 gang members went to Running Bear Park in Irving to ambush and kill a victim whom they believed to be a rival gang member. Armed with machetes, sticks, and a shotgun, they lured the victim to the park under the guise that they were going to buy a tattoo machine from him. The victim, however, unexpectedly arrived at the park with three friends. Nonetheless, the victims were lured to the back of the park where the armed gang was hiding in the woods and waiting to spring. When the victims arrived near the wooded area, the armed gang confronted them and forced them to kneel.
A brutal attack ensued as the assailants hacked at the four victims with their machetes. One male victim escaped unscathed. During the attack, Hernandez-Fuentes hit one male victim with the shotgun and told him not to “mess with the mara (gang).” At some point, Hernandez-Fuentes got distracted, and the victim ran away. Hernandez-Fuentes fired at the victim but missed, and the victim escaped by swimming across a pond. Another male victim also escaped after he sustained a serious cut to his arm, which required hospitalization. The female victim, however, was not so fortunate. She was savagely maimed, sustaining multiple deep lacerations to her arms, hands, and leg from the machete attack. The female victim, who was left for dead badly bleeding in the park, sustained permanent and life-threatening injuries, which required extensive medical care and hospitalization. After the attack, the attackers drove away with their weapons and property stolen from the victims. The police arrested the attackers in the days following the savage assault.
Other sentences in the case are as follows:
- Rolan Ivan Hernandez-Fuentes, aka “Tasmania,” sentenced to life in federal prison for RICO conspiracy
- Jerson Gutierrez-Ramos, aka “Sparky,” sentenced to 475 months in federal prison for RICO conspiracy
- Arnold Steven Miralda-Cruz, aka “Sico,” sentenced to 210 months in federal prison for RICO conspiracy
- Kevin Cruz, aka “Street Danger,” sentenced to 250 months in federal prison for RICO conspiracy
- Manuel Amaya-Alvarez, aka “Chocolate,” sentenced to 240 months for two counts of attempted murder in aid of racketeering
- Jose Armando Saravia-Romero, aka “Pinky,” sentenced to 57 months in federal prison for assault with a dangerous weapon in aid of racketeering
- Jonathan Alexander Baires, aka “Splinter,” sentenced to 120 months for attempted murder in aid of racketeering
HSI, the Irving Police Department, and the Dallas Police Department conducted the investigation. Trial Attorney Julie Finocchiaro of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Gary Tromblay and Sid Moody prosecuted the case.
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.
- Rolan Ivan Hernandez-Fuentes, aka “Tasmania,” sentenced to life in federal prison for RICO conspiracy
Final Defendant Sentenced to 17+ Years in MS-13 CaseRead the Press Release
An MS-13 gang member was sentenced this week to more than 17 years in federal prison for his role in several brutal machete attacks at apartment complexes in Dallas, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
Arnold Stephen Miralda-Cruz, 23, pleaded guilty in February to RICO conspiracy, and was sentenced Tuesday afternoon to 210 months in federal prison, an upward departure by U.S. District Judge Jane J. Boyle. Mr. Miralda-Cruz is the last of seven defendants sentenced in the case.
“MS-13 is one of the most vicious gangs operating in America today,” said U.S. Attorney Erin Nealy Cox. “When machete-wielding gang members terrorize our streets, they will be met with certain justice. The Northern District of Texas thanks our law enforcement partners, led by Homeland Security Investigations, who worked tirelessly to take seven brutal men out of our community.”
“With this sentencing, seven MS-13 gang members responsible for multiple brutal attacks in the Dallas area have now been brought to justice,” said Acting Assistant Attorney General Brian C. Rabbitt. “The Department of Justice will not waver in its commitment to dismantle and destroy the scourge of MS-13.”
“This sentencing brings an end to the violence posed by these criminal gang members who have inflicted mayhem in our communities without any remorse or empathy for anyone,” said Christopher M. Miller, deputy agent in charge Homeland Security Investigations Dallas. “The violent crimes this thug and his cohorts committed for the sake of street credibility and their gang’s reputation has ended with this illegal perpetrator behind bars.”
According to court documents, the defendants – all El Salvadorian and Honduran nationals in the United States illegally – admitted they belonged to MS-13, a notoriously violent transnational street gang with the creed, “kill, rob, rape, control.” As members, the defendants were required to commit acts of violence to protect the gang’s reputation, and were urged to attack and kill rivals whenever possible.
To that end, on July 14, 2017, Mr. Miralda-Cruz and several other gang members, including codefendants Rolan Ivan Hernandez Fuentes and Jerson Gutierrez-Ramos, ambushed a rival gang member and his roommate inside an apartment complex in Dallas. Armed with machetes, knives, box cutters, and a metal bar, they struck, stabbed, and cut the victims with intent to kill. The attack left one man with his chest and neck sliced open, necessitating emergency cardiac surgery, and the other with lacerations to his face, requiring hospitalization. Following the attack, Mr. Hernandez-Fuentes licked the victims’ blood from the machete and stated that he liked the “taste of victory.”
The following day, on July 15, 2017, Mr. Miralda-Cruz, Mr. Hernandez-Fuentes, and Mr. Gutierrez-Ramos attacked and extorted a third man outside his home in Irving. Armed with the a machete from the night before, Mr. Hernandez-Fuentes forced the victim to kneel, then kicked him and stuck him with the machete. The group demanded the victim, a heroin dealer, pay their MS-13 clique an extortion fee, a “tax,” to deal drugs in their territory.
On August 9, 2017, several gang members attacked another rival gang member at an apartment complex in Dallas, intending to kill the victim. Armed with a sledgehammer, an icepick, a metal bar, a stick, and a knife, they chased the victim, caught him when he tripped, and then attacked him. The victim, who managed to escape, suffered stab wounds to his back and lacerations on several parts of his body, requiring hospitalization.
On August 19, 2017 several gang members attacked and robbed another rival gang member at an apartment complex in Irving. Hernandez-Fuentes approached the victim near a gas station and lured him to a nearby apartment complex where his fellow gang members were waiting. After robbing the victim, they savagely beat, kicked, and hit him with a metal bat until they thought that he was dead. The victim suffered a fractured skull and bleeding from his brain, requiring hospitalization.
In late August, several gang members plotted twice to kill a man believed to be a member of a rival gang. They first lured the victim to a park in Dallas, where they lay in wait with machetes and a shotgun. The victim ultimately refused to get out of his car, and they aborted the plan to kill him. A few days later, they renewed the plot. At an apartment complex in Dallas, they confronted the victim with a shotgun. Mr. Gutierrez-Ramos pointed the shotgun at the victim’s chest to shoot him, but the weapon jammed and did not fire. The victim managed to drive away.
On September 25, 2017, Mr. Hernandez-Fuentes, Mr. Gutierrez-Ramos, and other MS-13 gang members went to Running Bear Park in Irving to ambush and kill a victim whom they believed to be a rival gang member. Armed with machetes, sticks, and a shotgun, they lured the victim to the park under the guise that they were going to buy a tattoo machine from him. The victim, however, unexpectedly arrived at the park with three friends. Nonetheless, the victims were lured to the back of the park where the armed gang was hiding in the woods and waiting to spring. When the victims arrived near the wooded area, the armed gang confronted them and forced them to kneel.
A brutal attack ensued as the assailants hacked at the four victims with their machetes. One male victim escaped unscathed. During the attack, Hernandez-Fuentes hit one male victim with the shotgun and told him not to “mess with the mara (gang).” At some point, Hernandez-Fuentes got distracted, and the victim ran away. Hernandez-Fuentes fired at the victim but missed, and the victim escaped by swimming across a pond. Another male victim also escaped after he sustained a serious cut to his arm, which required hospitalization. The female victim, however, was not so fortunate. She was savagely maimed, sustaining multiple deep lacerations to her arms, hands, and leg from the machete attack. The female victim, who was left for dead badly bleeding in the park, sustained permanent and life-threatening injuries, which required extensive medical care and hospitalization. After the attack, the attackers drove away with their weapons and property stolen from the victims. The police arrested the attackers in the days following the savage assault.
Other sentences in the case are as follows:
- Rolan Ivan Hernandez-Fuentes, aka “Tasmania,” sentenced to life in federal prison for RICO conspiracy
- Jerson Gutierrez-Ramos, aka “Sparky,” sentenced to 475 months in federal prison for RICO conspiracy
- Arnold Steven Miralda-Cruz, aka “Sico,” sentenced to 210 months in federal prison for RICO conspiracy
- Kevin Cruz, aka “Street Danger,” sentenced to 250 months in federal prison for RICO conspiracy
- Manuel Amaya-Alvarez, aka “Chocolate,” sentenced to 240 months for two counts of attempted murder in aid of racketeering
- Jose Armando Saravia-Romero, aka “Pinky,” sentenced to 57 months in federal prison for assault with a dangerous weapon in aid of racketeering
- Jonathan Alexander Baires, aka “Splinter,” sentenced to 120 months for attempted murder in aid of racketeering
The defendants, who were in the United States illegally at the time of the crimes, may be subject to deportation after serving their sentences.
Homeland Security Investigations, the Irving Police Department, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Gary Tromblay and Sid Moody are prosecuting the case with Trial Attorney Julie Finocchiaro of the Department of Justice's Organized Crime and Gang Section.
Federal Way, Washington, woman sentenced to 52 months in prison for eight federal felonies in fraud scheme to ‘steal’ and sell aircraftRead the Press Release
Seattle — A repeat identity thief, who tried to flee to Canada while out on bond, was sentenced today in U.S. District Court in Seattle to 52 months in prison announced U.S. Attorney Brian T. Moran. MICHELLE RENEE HUGHES, 43, previously known as Jose Trinidad Gonzalez, pleaded guilty in April 2020 to two counts of mail fraud, four counts of false statements, and two counts of Aggravated Identity theft. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said, HUGHES had “demons she was wrestling with in life,” and warned her that she faces increasing prison time if she does not change her behavior.
“This defendant has pursued identity theft and fraud crimes for more than a decade,” said U.S. Attorney Brian Moran. “These are not victimless crimes—real people have to sort out the damage done to their credit and financial life. In this case victims’ sense of health and well-being and their ability to help others was derailed by this brazen fraud scheme.”
According to records filed in the case, HUGHES (who has a 2011 conviction for identity theft) used her skill with falsified documents to engage in a scheme where she submitted forged bills of sale and falsely changed aircraft registrations in a public Federal Aviation Administration database. HUGHES made it appear she had purchased various aircraft and then offered those same aircraft for sale, attempting to get payments from unsuspecting buyers. One of the ‘buyers’ who responded was an undercover agent for Homeland Security Investigations. In June 2018, when HUGHES showed up and collected a $1,000 down payment, she was placed under arrest.
When agents searched HUGHES’ Federal Way, Washington, apartment, they found a large collection of identity theft material including false passport cards and identity material for HUGHES as a certified counselor at a middle school, as a financial advisor for Morgan Stanley, a flight attendant, and a counterfeit “World Passport” book with HUGHES’ photograph but a different name. They also found identity material related to a victim from HUGHES’ 2011 federal conviction for aggravated identity theft. HUGHES has a criminal history of fraud crimes dating back to 2007.
In March 2020, HUGHES and a girlfriend attempted to flee to Canada, even as trial on these charges was scheduled for May 2020. Canadian border officials at the Blaine Port of Entry refused the couple entry, and they were returned to the U.S. A search of HUGHES’ apartment following that incident turned up more identity information that could be used for fraud.
In their sentencing memo, prosecutors noted that the true owners of the aircraft have incurred legal fees and stress trying to get clear title to their planes restored. One pilot, who volunteers to fly medical patients to appointments, was unable to assist five different patients while waiting for the title situation to be resolved.
HUGHES seems unconcerned about living a life of lies. “… Defendant is singularly committed to defrauding people. For over a decade, Defendant has continually engaged in fraudulent schemes. Whether it’s stealing an identity, forging court orders, passing bad checks, forging birth certificates, lying to a DSS agent about being undercover, or impersonating a police officer and lying to a deputy sheriff about her death to evade justice, Defendant lacks any compunction about dishonesty,” prosecutors wrote in their sentencing memo.
Chief Judge Martinez ordered HUGHES to complete three years of supervised release following prison and pay one of the victims just over $11,000 to compensate him for the legal fees incurred trying to clear title to his aircraft.
The case was investigated by Homeland Security Investigations and was prosecuted by Assistant United States Attorneys Angelica Williams and Brian Werner.
Federal Jury Convicts Man for Pointing Laser at San Diego Police HelicopterRead the Press Release
Assistant U. S. Attorneys John Parmley (619) 546-7957 and Jonathan Shapiro (619) 546-8225
NEWS RELEASE SUMMARY – November 19, 2020
SAN DIEGO – Rudy Alvarez of Lemon Grove was convicted by a federal jury late yesterday for knowingly aiming the beam of a laser pointer at a San Diego Police helicopter as the aircraft flew over a protest in the wake of George Floyd’s death in Minneapolis.
After a two-day trial, the jury deliberated for 2.5 hours before rendering its verdict. Alvarez is scheduled to be sentenced on February 22 at 9 a.m. before Chief U.S. District Judge Larry Burns.
“This is a very important verdict,” said U.S. Attorney Robert Brewer. “This kind of crime could have a disastrous impact if a pilot’s sight is compromised. We support the Constitutional rights of free speech and assembly, but the rule of law must be respected. It’s there for a reason – to protect the public and law enforcement from danger.” Brewer praised prosecutors John Parmley and Jonathan Shapiro as well as San Diego police officers and detectives and agents from the FBI for their diligence in seeking justice.
“The guilty verdict returned in this case is a reminder that using a laser pointer as a weapon against aircraft is a federal crime and offenders will face justice,” said FBI Special Agent in Charge Suzanne Turner. “The FBI will continue to protect the public and pilots from the dangerous actions of those intentionally using lasers pointers to cause harm.”
The incident occurred at a large demonstration that passed through the area of 500 University Avenue in San Diego on June 4 at 8:30 p.m. Two officers from the San Diego Police Department’s Air Support Unit were monitoring the crowd in a marked San Diego Police Department helicopter. The officers reported that one of the demonstrators in the crowd was shining a laser at their aircraft that threatened their ability to safely operate the helicopter.
The San Diego police officers were able to locate the man who pointed the laser at the helicopter multiple times over the course of an hour as he marched with the protestors in downtown San Diego.
DEFENDANT Case Number 20cr1809
Rudy Alvarez Age: 25 Lemon Grove
SUMMARY OF CHARGES
Aiming a Laser Pointer at an Aircraft – Title 18, United States Code, Section 39A
Maximum penalty: Five years in prison, $250,000 fine
AGENCIES
San Diego Police Department
Federal Bureau of Investigation
Federal Jury Convicts Lady Lake Man of Possessing Child PornographyRead the Press Release
Ocala, Florida – A federal jury has found Terry George Zimmerman (73, Lady Lake) guilty of possession of child pornography. He faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for April 23, 2021.
Zimmerman was originally indicted on December 11, 2019. A superseding indictment followed on February 26, 2020.
According to testimony and evidence presented at trial, the Lady Lake Police Department executed a search warrant at Zimmerman’s residence and seized several electronic devices containing materials involving the sexual exploitation of young children. Agents from Homeland Security Investigations recovered more than 2,395 images and 309 video files depicting children who were being sexually assaulted and exploited from two computers and twelve USB drives that Zimmerman had kept in his living room and bedroom.
Zimmerman had previously been convicted of this same child sexual exploitation offense on June 19, 1995, in New York. As a result, he faces a minimum mandatory sentence of 10 years for this latest conviction.
This case was investigated by Homeland Security Investigations, the Lady Lake Police Department, and the Ocala Police Department. It was prosecuted by Assistant United States Attorneys Michael P. Felicetta and Tyrie K. Boyer.
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.
Federal Grand Jury B Indictments Announced for NovemberRead the Press Release
United States Attorney Trent Shores announced today the results of the November Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Sheila Marie Brewer. Felon in Possession of a Firearm. Brewer, 29, of Tulsa, is charged with being a felon in possession of a Springfield 12-gauge shotgun. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Country Sheriff’s Office are the investigative agencies.
Oscar Manuel Cabrera-Westerheidy. Aggravated Sexual Abuse of a Minor Under Twelve Years of Age in Indian Country; Abusive Sexual Contact With a Minor Under Twelve Years of Age in Indian Country; Abusive Sexual Contact With a Minor Between Twelve Years and Sixteen Years of Age in Indian Country. Cabrera-Westerheidy, 37, of Tulsa, is being charged with engaging in sexual acts and sexual contact with a young female under the age of 12. The FBI and Tulsa Police Department are the investigative agencies.
Roger Cervantez. Felon in Possession of a Firearm and Ammunition; Possession of an Unregistered Weapon Made From a Shotgun Having a Barrel of Less Than 18 Inches in Length. Cervantez, 35, of Tulsa, is charged with being a felon in possession of an unregistered Remington 20-gauge shotgun and 23 rounds of ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Kyle Marche Williams and Marcus Layvon Jackson II. Obstructing, Delaying, and Affecting Commerce by Robbery; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence; Felon in Possession of Firearm and Ammunition; Conspiracy to Obstruct, Delay, and Affect Commerce by Robbery; Conspiracy to Carry, Use, and Brandish a Firearm During and in Relation to a Crime of Violence. (superseding) Williams, 29, of Dallas, and Jackson, 28, of Desoto, Texas, is alleged to have unlawfully took packages from an employee of UPS by means of actual and threatened force, including threatening him with a firearm if he did not comply. They are both being charged with possessing firearms, a Glock .375 SIG caliber pistol and a SSCY 9mm luger caliber pistol, during and in relation to a crime of violence. Jackson is a 4-time convicted felon; therefore, he is being charged with being a felon in possession of a Glock, .375 SIG caliber pistol and 31 rounds of ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Owasso Police Department are the investigative agencies.
Brannon Michael Jefferies. Failure to Register as a Sex Offender. Jefferies, 34, of Tulsa, is charged with knowingly failing to register as a sex offender. The FBI and U.S. Marshals Service are the investigative agencies.
Stephanie Ann Manning. Felon in Possession of a Firearm; Assault With a Dangerous Weapon in Indian Country; Simple Assault in Indian Country (Misdemeanor). Manning, 30, of Broken Arrow, is charged with being a felon in possession of a Rock Island Armory .45 caliber semiautomatic pistol. Manning is further being charged with assault after hitting a man with a baseball bat. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Broken Arrow Police Department are the investigative agencies.
Michael Osage Moses. Felon in Possession of a Firearm and Ammunition. Moses, 35, of Sand Springs is charged with being a felon is possession of a Sturm & Ruger semi-automatic 9mm pistol and seven rounds of ammunition. Moses is a 4-time convicted felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Muscogee (Creek) Nation Lighthorse Police are the investigative agencies.
David Gene Randle. Felon in Possession of a Firearm and Ammunition. Randle, 50, of Mannford, is charged with being a felon in possession of a Taurus 9mm caliber semi-automatic pistol, a Winchester .22 caliber semi-automatic rifle, a Stevens 20-gauge shotgun, and ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Creek County Sheriff’s Office are the investigative agencies.
Christopher Scott Smith. Possession of Methamphetamine With Intent to Distribute. Smith, 31, is charged with knowingly possessing methamphetamine with the intent to distribute. The Drug Enforcement Administration and Tulsa Police Department are the investigative agencies.
Kerri Jo Stevens. Theft Over $1,000 in Indian Country; Aggravated Identity Theft; Bank Fraud. Stevens, 37, of Tulsa on Sept. 27, 2020, allegedly stole the victim’s wallet, containing cash and other items of value, with the total property value exceeding $1,000. On Sept. 28, Stevens then used the victim’s debit card issued by the Bank of Oklahoma, to obtain funds, credits, assets, securities, and other property owned by the Bank of Oklahoma. The FBI and Sand Springs Police Department are the investigative agencies.
Dustin Thebeau. Attempted Possession of Methamphetamine With Intent to Distribute. Thebeau, 33, of Mountain Grove, Missouri, is charged with knowingly attempting to possess with intent to distribute 500 grams or more of methamphetamine.
Clayton Jacob Waldon. Distribution of Child Pornography; Possession of Child Pornography. Waldon, 50, of Tulsa, is charged with possessing and distributing material that contained images and videos of child pornography involving a minor who had not attained the age of 12. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Tulsa Police Department, and Oklahoma State Bureau of Investigations are the investigative agencies.
Nicole Deon Williams. Felony Murder in the First Degree in Indian Country; Robbery in Indian Country. Williams, 36, of Tulsa, is charged with causing the unlawful killing of another individual. Williams allegedly aided in coordinating a robbery and during the robbery attempt, Williams’ accomplice killed the victim by shooting him in the chest. The FBI and Tulsa Police Department are the investigative agencies.
Candelaria V. Yazzie. Child Neglect in Indian Country. Yazzie, 24, of Jenks, is charged with three counts of child neglect. According to the indictment, Yazzie left a female victim, who is under the age of 18, unsupervised within a locked car in a liquor store parking lot. Further, Yazzie also allegedly neglected to adequately provide for two other female victims, under the age of 18, left unsupervised in an apartment. The FBI and Tulsa Police Department are the investigative agencies.
Cody Lloyd Youtsey. Abusive Sexual Contact in Indian Country. Youtsey, 28, of Oilton, is charged with knowingly engaging in non-consensual sexual contact with the female victim. The FBI and Oilton Police Department are the investigative agencies.
Evansville Police Officer honored by Justice Department with Attorney General’s Award for Distinguished Service in PolicingRead the Press Release
Evansville – Attorney General William P. Barr and U.S. Attorney Josh J. Minkler announced today that Evansville Police Officer Phillip Smith was a recipient of the Fourth Annual Attorney General’s Award for Distinguished Service in Policing. This year 23 law enforcement officers and deputies from 12 jurisdictions across the country were recognized for their exceptional work.
The Attorney General’s Award recognizes individual state, local, and tribal sworn rank-and-file police officers and deputies for exceptional efforts in policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations or innovations in community policing. This year, the department received 214 nominations recognizing a total of 355 individual officers, deputies, and troopers. There were 39 states represented in the nomination pool, covering state, local, campus, sheriff, and other agency types.
“There is no career nobler than that of a police officer, and the 23 officers we honor this year demonstrate that clearly,” said Attorney General William P. Barr. “These individuals are distinguished in their service for field operations and criminal investigations – from investigating homicides to drug trafficking to sexual exploitation and assault – to making positive change in their communities through innovative outreach to residents. Their actions are a testament to what law enforcement officers contribute to our nation each day, keeping us safe from violent crime and building more trusting communities, and they are deserving of our collective thanks. I am pleased to honor these 23 officers for their distinguished service in policing.”
“Congratulations to Officer Phillip Smith and the entire Evansville Police Department,” said Minkler. “Officer Smith has garnered the respect of the community and now the country through the way he serves the citizen he has sworn to protect. He has set an example for all officers across Indiana and the county on how they too can make a positive impact on the communities they serve. Job well done sir."
“There isn’t an Officer out there more deserving of this award than Phil Smith,” said Evansville Police Chief Billy Bolin. “Through his infectious personality, he leaves a trail of laughter and smiles wherever he goes. He is not only an asset to the Evansville Police Department but to the entire profession of law enforcement.”
The Department of Justice works closely with local law enforcement and strives to be a ready resource for them. The Attorney General’s Award for Distinguished Service in Policing is just one more way the department can show its continued commitment to the profession and honor the men and women who so bravely serve it.
INNOVATIONS IN COMMUNITY POLICING
Officer Philip Smith, Evansville Police Department
Officer Philip Smith is the symbol of community policing in Evansville, Indiana, where he serves as the special project’s coordinator for the Evansville Police Department. His community outreach efforts have put a human face on the badge, and his efforts have encouraged the public to work with the police and the police to have an ally in the public. Smith runs the department’s Facebook page, which now has 45,000 subscribers – in a city of 117,000. His social media activity includes weekly videos celebrating different officers and community members, and photos of police and kids on department-sponsored trips to theme parks. He also helped create the department’s breast cancer awareness fundraiser and established a program where salons and barbershops host officers for informal chats with their patrons. All this community outreach has meant that when the department now has to explain an officer involved shooting, or asks the public for help in recognizing a criminal, there is a community now pre-disposed to understand and work with the department more than ever before.
Information on the other recipients can be found on the national release at the following link: https://www.justice.gov/opa/pr/justice-department-honors-law-enforcement-officers-and-deputies-fourth-annual-attorney
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.
Erie Woman Prepared False Tax Returns for Herself and OthersRead the Press Release
Erie, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of filing false income tax returns and aiding and assisting the filing of false and fraudulent income tax returns, United States Attorney Scott W. Brady announced today.
Andrea Jones, 52, pleaded guilty to fourteen counts before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, the court was advised that Jones prepared and filed false federal income tax returns for herself and others, who used her as their return preparer, for tax years 2011, 2012, 2013, 2014 and 2015.
Judge Haines scheduled sentencing for March 9, 2021 at 10:30 a.m. The law provides for a total sentence of 42 years in prison, a fine of $3,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Jones on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Jones.
Erie Man Charged with Violating Federal Firearms LawsRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to unlawfully exporting firearm ammunition magazines, smuggling goods from the United States, and possessing unregistered firearms, United States Attorney Scott W. Brady announced today.
The three-count Superseding Indictment named Donald Robert Witherow, 47, 6661 Buffalo Road, Erie, Pennsylvania, as the sole defendant.
According to the Superseding Indictment presented to the court, in September 2019, Witherow, without first obtaining the required approval, sent ammunition and ammunition magazines to the Netherlands. In addition, on March 26, 2020, Witherow possessed unregistered firearms, namely destructive devices.
The law provides for a maximum total sentence of 40 years in prison, a fine of $1,500,000, 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 defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the superseding indictment in this case. Project Safe Neighborhoods (PSN) is 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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Employee of Government Contractor Pleads Guilty to Fraud and Kickback ChargesRead the Press Release
An employee of a government contractor pleaded guilty today to his involvement in a scheme to overbill a contract administered by the General Services Administration (GSA) by approximately $1.25 million, and solicit and receive kickbacks from a subcontractor in exchange for providing that subcontractor valuable contract modifications.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division; Special Agent in Charge Eric D. Radwick, Mid-Atlantic Division, Office of Investigations, GSA Office of Inspector General; Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office; and Special Agent in Charge Robert J. Smolich of the Department of State’s Office of Inspector General, Office of Investigations, Americas, Pacific, and Asia Division made the announcement.
Elmer Baker, 68, of Gulf Breeze, Florida, pleaded guilty to one count of conspiracy to violate the anti-kickback statute and four counts of wire fraud before Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia. Sentencing will be scheduled for a later date.
According to admissions made in connection with the plea agreement, Baker served as the project manager for his company on the contract administered by the GSA. After his company awarded a subcontract to a construction company for work on the facility, Baker began receiving kickbacks in the form of meals, golf sessions, vacations, and other things of value. In or around 2015, Baker began demanding monetary kickbacks that were valued at 10 percent of the amount of each of the subcontract modifications that he awarded the subcontractor. Baker sent the subcontractor fake invoices to make it appear as though the payments he was receiving were for legitimate work, and he set up a shell company to receive the payments. Additionally, Baker took the subcontract estimates provided to him and illegally inflated them in his requests to the GSA. Over the course of several subcontract modifications, Baker defrauded the GSA out of approximately $1.25 million.
The Criminal Division’s Fraud Section is the nation’s leading prosecuting authority on government procurement fraud and corruption matters.
The GSA Office of Inspector General, FBI’s Washington Field Office, and the State Department Office of Inspector General are investigating this case. Trial Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section is prosecuting the case.
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.
Dover Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Preston Elliott, 25, of Dover, pleaded guilty in federal court to possession of fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on December 6, 2019, a New Hampshire State Police trooper conducted a motor vehicle stop in North Hampton. In addition to the driver, Elliott was the sole passenger in the back seat of the vehicle. After the driver consented to a search of the vehicle, the trooper found over 503 grams of fentanyl in a bag at the Elliott’s feet. Elliott also had $1,065 in cash.
Elliott is scheduled to be sentenced on February 25, 2021.
“Fentanyl traffickers are jeopardizing public health and safety by distributing a potent and deadly drug,” said U.S. Attorney Murray. “The large quantity of fentanyl involved in this case could have led to many overdoses and deaths. I am grateful to the New Hampshire State Police and the DEA for their efforts to prevent this significant amount of fentanyl from being distributed in the Granite State.”
This matter was investigated by the Drug Enforcement Administration with assistance from the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Dominican National Sentenced for Unlawful Re-EntryRead the Press Release
BOSTON – A Dominican national was sentenced today for unlawful re-entry of a deported alien. After reentering the United States within months of being removed, the defendant was charged with a heroin-related offense and was in possession of a phone that had been used in a drug transaction with an individual who died of an apparent overdose.
Joel Perez Matos, 35, who resided in Boston, was sentenced by U.S. District Court Judge Indira Talwani to 48 months in prison and three years of supervised release. In August 2020, Matos pleaded guilty to unlawfully re-entering the United States after being deported. He has been detained since his arrest in April 2020 and will be subject to deportation following his sentence.
Perez Matos unlawfully re-entered the United States after being deported in December 2019. He had previously been removed in February 2016, and had unlawfully returned to the United States later that year.
On March 22, 2020, within a few months of having been removed from the United States, Perez Matos was arrested by local law enforcement in Stow and charged with a heroin-related offense. At the time of his arrest, Perez Matos was in possession of a cell phone that had been used the previous day to set up a drug transaction with a Massachusetts resident. On March 22, 2020, that resident died of an apparent drug overdose. When arrested, Perez Matos presented police with an out-of-state driver’s license in a fake name.
United States Attorney Andrew E. Lelling and Todd Lyons, Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement today. The Stow Police Department also provided valuable assistance. Assistant U.S. Attorney Bill Abely, Chief of Lelling’s Major Crimes Unit, prosecuted the case.