Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
17 November 2020
Justice Department Alleges Conditions at Massachusetts Department of Correction Violate the ConstitutionRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts and the Department of Justice’s Civil Rights Division have concluded an investigation into conditions at the Massachusetts Department of Correction (MDOC) and found reason to believe that the conditions violate the Eighth Amendment of the Constitution.
The Department determined that there is reasonable cause to believe that the MDOC fails to provide constitutionally adequate supervision to prisoners in mental health crisis; fails to provide adequate mental health care to prisoners in mental health crisis; and violates the constitutional rights of prisoners in mental health crisis by using prolonged mental health watch under restrictive housing conditions. As a result of these failures and conditions, prisoners in mental health crisis have engaged in self-harm and have died or seriously injured themselves while on mental health watch.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Department provided the MDOC with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them. The Department is closing the portion of the investigation related to restrictive housing and geriatric and palliative care.
“Our investigation found cause to conclude that the Massachusetts Department of Corrections fails to properly supervise and accommodate prisoners suffering from serious mental health issues,” said United States Attorney Andrew E. Lelling. “The conditions at MDOC facilities show how systemic deficiencies in prison facilities can compound each other and amount to constitutional violations. MDOC has cooperated with our investigation from the beginning and we look forward to working with state prison authorities to implement reform measures.”
“Our investigation revealed that MDOC fails to provide adequate mental health treatment to prisoners experiencing a mental health crisis and instead exposes them to conditions that harm them or place them at serious risk of harm,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Remedying these deficiencies promptly will ensure that we protect the constitutional rights of these vulnerable prisoners and promote public safety.”
The Department’s comprehensive investigation involved review and analysis of documents, including policies and procedures, mental health records, incident reports, investigative reports, disciplinary reports and training materials. The Department also conducted tours of prison facilities and conducted interviews of administrative staff, security staff, mental health staff and hundreds of prisoners.
The U.S. Attorney’s Office and the Civil Rights Division initiated the investigation in October 2018 under the CRIPA, which authorizes the Department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
Individuals with information are encouraged to contact the U.S. Attorney’s Office by phone at 888-221-6023 or via email at [email protected].
The notice letter is posted here and the report is posted here.
U.S. Attorney Lelling and AAG Dreiband made the announcement today. Assistant U.S. Attorneys Gregory Dorchak and Michelle Leung of Lelling’s Civil Rights Unit and Trial Attorneys from the Special Litigation Section of the Justice Department’s Civil Rights Division handled the matter.
Joint Statement by Attorney General of the United States William P. Barr and Fiscalía General of Mexico Alejandro Gertz ManeroRead the Press Release
Attorney General of the United States William P. Barr and Fiscalía General of Mexico Alejandro Gertz Manero issued today the following statement:
“On Oct. 15, 2020, former Mexican Secretary of National Defense General Salvador Cienfuegos Zepeda was arrested in Los Angeles, California, on U.S. charges of conspiracy to manufacture, import, and distribute narcotics into the United States and money laundering.
“The Mexican Fiscalía General de la República, upon learning of the arrest and U.S. charges against General Cienfuegos, opened its own investigation.
“In recognition of the strong law enforcement partnership between Mexico and the United States, and in the interests of demonstrating our united front against all forms of criminality, the U.S. Department of Justice has made the decision to seek dismissal of the U.S. criminal charges against former Secretary Cienfuegos, so that he may be investigated and, if appropriate, charged, under Mexican law.
“At the request of the Fiscalía General de la República, the U.S. Department of Justice, under the Treaty that governs the sharing of evidence, has provided Mexico evidence in this case and commits to continued cooperation, within that framework, to support the investigation by Mexican authorities.
“Our two countries remain committed to cooperation on this matter, as well as all our bilateral law enforcement cooperation. As the decision today reflects, we are stronger when we work together and respect the sovereignty of our nations and their institutions. This close partnership increases the security of the citizens of both our countries.”
Jefferson County man indicted on charges he conspired against the U.S. and sold machine gun conversion devicesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy John Watson, of Ranson, West Virginia, is facing charges of conspiracy against the U.S. Government and selling machine gun conversion devices to extremists, U.S. Attorney Bill Powell announced.
“The suspect in this case appears to have supplied hundreds of people with these conversion devices, some to people who want to do Americans harm. Federal law is very specific on these types of devices, and the safety of the public from extremists is one of our highest priorities. Detecting this business front for what it actually was is due to the excellent law enforcement work that I have the honor of seeing every day. The indictment only reflects the charges, and we look forward to meeting our burden of proof,” said Powell.
Watson, 30, was indicted today on one count of “Conspiracy to Commit Offenses against the United States,” one count of “Unlawfully Engaging in the Business of Manufacturing Machineguns,” one count of “Illegal Possession and Transfer of Machineguns,” and one count of “Possession of Unregistered Firearm Silencer.”
Watson is suspected of selling machinegun conversion devices online without having a license to do so. The devices, called “drop in auto sears,” convert semi-automatic AR-15 rifles to fully automatic machine guns. The indictment alleges that Watson was selling the devices on a website that appeared to be selling wall hangers. This portable wall hanger business is suspected of marketing to Boogaloo adherents, a loosely organized far-right, anti-government, and extremist political movement in the U.S.
“The FBI remains focused on the threat posed by domestic violent extremists,” said FBI Pittsburgh Special Agent in Charge Michael Christman. “The FBI’s Joint Terrorism Task Force works closely with our federal, state and local partners across the country to combat these serious threats. We cannot and will not allow these types of activities to inflict violence and harm to the American people.”
Watson faces up to five years of incarceration and a fine of up to $250,000 for the conspiracy count and faces up to 10 years of incarceration and a fine of up to $250,000 for each of the remaining counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Jarod J. Douglas and Lara Omps-Botteicher are prosecuting the case on behalf of the government. The FBI, the Bureau of Alcohol, Tobacco, and Firearms, and the U.S. Postal Inspection Service continues its investigation.
This case falls with the purview of the Attorney General’s Task Force to Combat Violent Anti-Government Extremism. Launched in June 2020, the Task Force is dedicated to supporting the investigation and prosecution of any person or group who commits violence in the name of an anti-government ideology.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment Alleges Rhode Island Man Stole and Then Sold Luxury Car Tires and RimsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned an indictment charging MICHAEL FARIAS, 54, of Providence, Rhode Island, with offenses related to his alleged role in a scheme to steal tires and rims from new vehicles at car dealerships in northeastern states and then sell the stolen items to individuals across the country.
The indictment was returned under seal on March 10, 2020, and Farias was arrested today. He appeared via videoconference before U.S. Magistrate Judge Robert M. Spector and was released on a $100,000.
As alleged in the indictment, between May 2015 and August 2018, Farias and others stole tires and rims from numerous luxury vehicles at car dealerships in Connecticut, Rhode Island, New York and Maine. The co-conspirators then sold the stolen goods to others around the U.S.
The indictment charges Farias with one count of conspiracy to transport stolen property, an offense that carries a maximum term of imprisonment of five years, and one count of interstate transportation of stolen property, an offense that carries a maximum term of imprisonment of 10 years.
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 matter is being investigated by the Federal Bureau of Investigation, the Shelton, Milford, Waterbury, Stonington, Vernon, Darien, Westchester County (N.Y.), Bedford (N.Y.) and Portland (Maine) Police Departments, and the York County (Maine) Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
India-based VoIP provider and its director indicted for facilitating millions of scam robocalls to AmericansRead the Press Release
ATLANTA – A first-of-its-kind indictment was unsealed today against Indian-based Voice over Internet Protocol (VoIP) provider, E Sampark, and its Director, Gaurav Gupta, who pushed out tens of millions of scam calls to American consumers on behalf of India-based phone scammers. Pursuant to a consent permanent injunction, a federal court has also ordered a Florida-based server farm to stop providing E Sampark and Gupta with servers used to help perpetuate the fraud scheme. The consent permanent injunction seeks to prevent E Sampark and Gupta from further victimizing U.S. consumers through the use of the servers located in Florida.
“The defendants bombarded American consumers with scam calls, causing emotional and financial devastation, including to vulnerable and elderly individuals,” said U.S. Attorney Byung J. “BJay” Pak. “Those who facilitate fraudulent calls into the United States will be investigated and brought to justice.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who defraud taxpayers by impersonating employees of the Internal Revenue Service,” said J. Russell George, the Treasury Inspector General for Tax Administration. “I wish to thank the U.S. Department of Justice and our law enforcement partners involved in this first-of-its-kind indictment. Taxpayers must remain cautious of unsolicited telephone calls from individuals claiming to be Internal Revenue Service employees. If any taxpayer believes they or someone they know has been a victim of an Internal Revenue Service impersonation scam, they should report it to the Treasury Inspector General for Tax Administration at tips.tigta.gov or by calling 1-800-366-4484.”
According to U.S. Attorney Pak, the Indictment, and the Complaint: Defendant Gaurav Gupta directed and operated E Sampark, d/b/a VG-Tech Serve Private Limited, a Voice Over IP (VoIP) company that allegedly sent calls from criminal India-based call centers to victims in the United States, both directly and through VoIP providers located in the United States. From May 2015 to June 2020, the defendants passed tens of millions of scam calls from India into the United States, leading to reported victim losses of over $20 million. The callers purported to be legitimate government agencies and businesses and misled victims over the phone. The callers allegedly used multiple frauds, including Social Security impersonation, IRS impersonation, and loan scams.
As part of a Social Security scam, India-based callers posed as federal agents in order to mislead victims into believing their Social Security number was involved in crimes. Callers threatened arrest and the loss of the victims’ assets if the victims did not send money. The callers directed victims to send cash to aliases used by other members of the fraud network, and to transfer funds via gift cards to the callers. In one instance in November 2019, the callers kept a Marietta, Georgia woman on the phone for over eleven hours while they convinced her that her Social Security number had been compromised, that there was a warrant for her arrest in Texas, and that she should tell no one about the purported investigation. The callers told the victim that her assets were going to be frozen and that she should purchase gift cards in order to protect her money. Per the callers’ directions, the victim went around Cobb County to purchase over $35,000 in gift cards, including Target, GameStop, Sephora, and Nordstrom gift cards. The callers had the victim provide them with the numbers on the back of the cards, which allowed them to steal the funds from her. E Sampark and Gupta allegedly connected the victim with the fraudsters.
As part of the IRS impersonation scam, India-based callers posed as IRS or Treasury officials and defrauded the U.S. residents into believing they owed money to the IRS or would be arrested and fined if they did not pay alleged back taxes, fines, and fees immediately. For example in April 2017, a Georgia resident received numerous calls from an individual who claimed to work for the IRS. A caller told the victim that he owed $28,000 to the IRS in back taxes and that if he did not pay, he would be arrested. After the victim explained that he could not pay the full amount, the caller directed him to send two wire transfers for $500 and $1,990 to two aliases in order to resolve the issue. The victim followed the caller’s instructions, and the funds sent by wire transfer were retrieved by a co-conspirator in South Carolina. Again, E Sampark and Gupta allegedly connected the victim with the fraudsters.
As part of the loan scam, India-based callers misled American consumers into believing that the callers worked for lending institutions and that the victims were eligible for fictitious loans. The India-based callers directed the victims to pay upfront fees to demonstrate their ability to repay the loan. At times, the callers directed victims to provide their bank account information and made it appear as though they had deposited funds into the victims’ accounts. The callers then told the victims to withdraw the funds and transfer them via wire transfer and gift cards. After the victims sent the funds, the deposits that the callers supposedly made bounced. The victims received nothing in return.
Defendants Gupta and E Sampark maintained approximately sixty servers in Florida that the company used at times to connect criminal India-based callers with American consumers. The servers contained over 130,000 recordings of scam calls, including robocall voicemail recordings and conversations between the India-based scammers and U.S.-based victims.
Northern District of Georgia Assistant U.S. Attorney, Jolee Porter, who is currently detailed to the DOJ’s Consumer Protection Branch, and Assistant U.S. Attorney Elizabeth McBath are prosecuting the criminal case. Northern District of Georgia Assistant U.S. Attorney Armen Adzhemyan is handling the civil injunction matter.
The U.S. Treasury Inspector General for Tax Administration (TIGTA), Fraud and Schemes Division is investigating the case, with the assistance of the Social Security Administration Office of Inspector General; Homeland Security Investigations; Department of Homeland Security Office of Inspector General; the Houston, Texas Police Department; and the Matagorda County, Texas Sheriff’s Office.
U.S. Attorney Pak thanked TIGTA for its investigation of the case, and the DOJ’s Consumer Protection Branch for their substantial coordination efforts. He also expressed appreciation to AT&T’s Global Fraud Management Organization for apprising the U.S. Attorney’s Office of the alleged offenses.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
The public should exercise caution with any caller who claims to be a government employee. Government agencies will never threaten you with immediate arrest or other legal action if you do not send cash, retail gift cards, wire transfers, or internet currency. They will also never demand secrecy from you in resolving a debt or any other problem. If you need to send a payment to IRS or Social Security, the agency will send a letter with payment options and appeal rights. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).
The public is reminded that gift cards are for gifts, not for payments. If a stranger purporting to be a legitimate business or government agency demands payment with a gift card, hang up. Anyone who demands payment by gift card is a scammer. Once you buy the gift card, the callers typically demand the number on the back of the gift card. That number lets the caller immediately steal the money loaded onto the card. For more information, visit https://www.consumer.ftc.gov/articles/paying-scammers-gift-cards
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Illegal Alien Sentenced to 18 Months in Federal Prison for Re-Entering the United States After Being DeportedRead the Press Release
November 17, 2020
FOR IMMEDIATE RELEASE Contact MARCIA MURPHY
www.justice.gov/usao/md at (410) 209-4885
Illegal Alien Sentenced to 18 Months in Federal Prison for Re-Entering the United States After Being Deported
Previously Convicted in Federal Court of Sex Trafficking Offense; It Was the Fourth Time She Entered the United States Illegally
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte today sentenced Iris Martinez-Napper, age 47, a Guatemalan national residing in Prince George’s County, Maryland, to 18 months in federal prison, followed by three years of supervised release, for illegally re-entering the United States after being deported. Martinez-Napper was previously convicted in federal court of conspiracy to transport individuals interstate to engage in prostitution and had previously been deported twice—once in 2010 and then again in 2012.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore.
According to her plea agreement, Martinez-Napper first illegally entered the United States in or around 1999. On April 30, 2009, she was sentenced in Maryland to 32 months in federal prison for conspiracy to travel to transport at least 100 women from New York and New Jersey to Maryland for the purpose of employing them in prostitution. She was removed from the United States on July 29, 2010. Less than four months later, Martinez-Napper illegally re-entered the United States near Naco, Arizona. On September 19, 2011, she was sentenced in Arizona to 11 months in federal prison for illegal re-entry and on February 9, 2012, was removed from the United States for a second time. At some time after that, Martinez-Napper again illegally re-entered the United States and was found in Prince George’s County, Maryland. Martinez-Napper admitted that she has never sought, nor obtained, the consent of the Attorney General of the United States or the Secretary of Homeland Security to apply for readmission to the United States.
United States Attorney Robert K. Hur praised HSI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Elizabeth Wright, who prosecuted the case.
# # #
Gunman sentenced to 27 years for armed robberies that targeted Asian-run businessesRead the Press Release
ATLANTA – A federal judge has sentenced Tabyron Rashad Smith, the first of two gunmen convicted for robbing nine Asian owned-and-operated businesses in Atlanta, Doraville, Duluth, Roswell, Stone Mountain, and Norcross in October and November 2017, to 27 years in prison.
“Smith and his fellow gunman, Dravion Sanchez Ware, terrorized, threatened, and injured their innocent victims,” said U.S. Attorney Byung J. “BJay” Pak. “This lengthy prison sentence hopefully provides some peace to the victims by ensuring Smith cannot terrorize anyone for decades to come.”
“Once again, the FBI would like to thank our many state and local law enforcement partners for helping to bring this month-long terror in the Asian business community to an end,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “To the victims, some of whom were shot and some of whom were pistol-whipped, your emotional scars can never be erased. But we can promise you these two men will not threaten you for a long, long time.”
“The GBI Crime Lab was instrumental in this case. Expert analysis and testimony helped lead to a successful prosecution. The GBI is committed to provide the highest quality forensic services in all cases. For over a month, these gang members targeted and terrorized the Asian business community. This sentence is evidence that this behavior will not be tolerated in the state of Georgia,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
“The fact that Tabyron Smith has been sentenced is a win for the victims, metro-Atlanta, law enforcement and the criminal justice system,” City of Atlanta Interim Chief Rodney Bryant. “The collaborative efforts from multijurisdictional agencies is a testament to the hard work that goes into arresting, prosecuting and keeping hardened criminals off our streets. Additionally, I look forward to continuing collaborations to make our communities safe.”
“This effort highlights the great cooperation between our local and federal law enforcement partners. As a result of this combined effort this violent predator will no longer be a threat to the community,” said Chief Chuck Atkinson, Doraville Police Department.
“The successful outcome and sentencing of these cases is a testament of the importance of agencies working together. Unlike police departments, criminals are not bound by jurisdictional boundaries and these cases are proof that great things happen when agencies proactively share information, work together, and compare cases. The State of Georgia is now a safer place thanks to the cooperation between local, state, and federal partners that enabled the removal of these dangerous criminals from our communities,” said Chief Kenneth DeSimone. Sandy Springs Police Department.
According to U.S. Attorney Pak, the charges, and other information presented in court: Between October 7 and November 10, 2017, Smith and Ware, both of whom are members of the Bloods, committed multiple armed robberies of Asian-run businesses in Metro-Atlanta. Smith participated in at least nine armed robberies, including robberies of three businesses in Atlanta, two in Doraville, and one business in each of the following cities: Norcross, Duluth, Stone Mountain, and Roswell, Georgia. Ware shot victims in the Doraville robbery and pistol-whipped several other victims in the other robberies.
Smith was captured on November 21, 2017, after the FBI led a multi-jurisdictional investigation that included participation of the Georgia Bureau of Investigation, the Doraville Police Department, the Fulton County Police Department, the Gwinnett County Police Department, the Atlanta Police Department, the Roswell Police Department, and the Sandy Springs Police Department.
Smith pled guilty on July 23, 2019, to one count of conspiracy to commit Hobbs Act robberies and four counts of discharging or brandishing a firearm during several of the robberies. The shooter, Ware, was convicted by a jury on August 2, 2019, for conspiracy to commit the Hobbs Act robberies, five counts of Hobbs Act robbery, and five counts of discharging or brandishing a firearm during the robberies.
Tabyron Rashad Smith, 25, of Atlanta, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to serve 27 years in prison followed by five years on supervised release and to pay restitution in the amount of $135,951.81.
Sentencing for Dravion Sanchez Ware, 25, of Atlanta, Georgia is scheduled for 10:00 a.m., January 7, 2021.
Assistant U.S. Attorney Bret R. Hobson and former Assistant U.S. Attorney Timothy H. Lee prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gulf Coast Health Care Fraud Strike Force Expanded to Include Eastern District of TexasRead the Press Release
The Department of Justice announced the expansion of the Criminal Division, Fraud Section’s existing Gulf Coast Health Care Fraud Strike Force to include the Eastern District of Texas.
The Strike Force is a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud (HCF) Unit in the Criminal Division’s Fraud Section, the U.S. Attorney’s Offices for the Eastern District of Texas, the Middle District of Louisiana, the Eastern District of Louisiana, and the Southern District of Mississippi, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), U.S. Drug Enforcement Administration (DEA), and other federal and state partners.
“Each year, healthcare fraud costs the American taxpayers tens of billions of dollars,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Criminal Division’s Health Care Fraud Strike Forces are a critical tool in the Department of Justice’s efforts to identify, investigate, and prosecute those who defraud our healthcare system. We are eager to announce this new partnership with the Eastern District of Texas, which will enhance and expand our efforts to prosecute healthcare fraud and protect American taxpayers.”
“The fight against health care fraud is a top priority for the U.S. Attorney’s Office for the Eastern District of Texas,” said U.S. Attorney Stephen J. Cox of the Eastern District of Texas. “We are honored to join the department’s Gulf Coast Strike Force and look forward to working together with them and with our law enforcement partners to protect the people of the Eastern District from fraud and abuse and to bring wrongdoers to justice.”
“The FBI is the primary agency for exposing and investigating health care fraud and we are pleased that the expansion of the Gulf Coast Health Care Fraud Strike Force into the Tyler area will allow us to vigorously pursue the most egregious offenders through coordinated law enforcement operations with our investigative partners,” said Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office.
“Health care fraud is a multi-billion dollar criminal enterprise,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “The FBI Houston Division sees significant success when we partner with multiple agencies to combat health care fraud in our communities. We look forward to expanding these efforts through the Gulf Coast Health Care Fraud Strike Force and continuing to strengthen our partnerships in the Eastern District of Texas.”
“The diversion of prescription pharmaceuticals is a public health epidemic impacting many communities throughout the country. The communities in the Eastern District of Texas are no different,” said Special Agent in Charge Steven S. Whipple of the DEA Houston Division. “We welcome the specialized prosecutorial resources that the Gulf Coast Strike Force brings to the Eastern District of Texas.”
“The OIG’s unwavering commitment in working with our law enforcement partners throughout the country on Strike Force Teams has resulted in more than a thousand arrests and recovered millions of taxpayer dollars,” said Special Agent in Charge Miranda Bennett of HHS-OIG. “OIG looks forward to continuing these important accomplishments through our already dynamic partnerships in the Eastern District of Texas.”
The HCF Unit operates 15 Strike Forces across the United States, in 24 federal districts, including Miami, Tampa, and Orlando, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; the Gulf Coast; Tampa, Florida; Chicago, Illinois; and Dallas, Texas, along with the National Rapid Response Strike Force located in Washington, D.C. The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG, and other federal and local agency partners.
The Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the U.S. Attorney’s Offices for the Eastern District of Texas, and special agents with the FBI, HHS-OIG and DEA. In addition, the Gulf Coast Strike Force will work closely with other various federal law enforcement agencies. The Strike Force will focus its efforts on aggressively investigating and prosecuting cases involving fraud, waste, and abuse within our federal health care programs, and cases involving illegal prescribing and distribution of opioids and other dangerous narcotics.
In September, Acting Assistant Attorney General Rabbitt noted the success of the Strike Force model while announcing a historic nationwide enforcement action involving 345 charged defendants across 51 federal districts, including more than 100 doctors, nurses and other licensed medical professionals. Five of the defendants were indicted in the Eastern District of Texas. Altogether, these defendants have been charged with submitting more than $6 billion in false and fraudulent claims to federal health care programs and private insurers, including more than $4.5 billion connected to telemedicine, more than $845 million connected to substance abuse treatment facilities, or “sober homes,” and more than $806 million connected to other health care fraud and illegal opioid distribution schemes across the country. More information can be obtained at: https://www.justice.gov/usao-edtx/pr/largest-health-care-fraud-and-opioid-enforcement-action-department-justice-history.
Among those charged in the Eastern District were Steven Churchill, 34, of Boca Raton, Florida, Samson Solomon, 22, of West Palm Beach, Florida, David Warren, 49, of Boca Raton, Florida, and Daniel Stadtman, 66, of Allen, Texas. The defendants are alleged to have conspired to pay and receive kickbacks in exchange for physicians’ orders from purported telemedicine companies. The physicians’ orders were used to submit claims for payment to federal health care programs. The conspirators obtained patient information, including protected health information and personally identifiable information, used the information to create fictitious physicians’ orders, and sold the physicians’ order to each other and to other durable medical equipment providers. Within approximately eight months, the defendants collectively obtained more the $2.9 million in proceeds from the scheme.
In another Eastern District case, Clifford Russell Harris, a 38-year-old registered nurse, pleaded guilty to recklessly endangering Texarkana, Texas, patients by stealing fentanyl. Harris broke into the secure drug storage at Healthcare Express in Texarkana, Texas, and tampered with vials of fentanyl stored there. He extracted the fentanyl from the vials and refilled the vials with another liquid. Harris then returned the vials to the drug stock where they were available for administration to patients. Harris admitted that he had acted with reckless disregard of the danger to patients and that his actions manifested an extreme indifference to that risk.
The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion.
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.
Gulf Coast Health Care Fraud Strike Force Expanded to Include Eastern District of TexasRead the Press Release
BEAUMONT, Texas - U.S. Attorney Stephen Cox of the Eastern District of Texas today announced the expansion of the Criminal Division, Fraud Section’s existing Gulf Coast Health Care Fraud Strike Force to include the Eastern District of Texas. The Strike Force is a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for the Eastern District of Texas, the Middle District of Louisiana, the Eastern District of Louisiana, and the Southern District of Mississippi, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), U.S. Drug Enforcement Administration (DEA), and other federal and state partners.
“The fight against health care fraud is a top priority for the U.S. Attorney’s Office for the Eastern District of Texas,” said U.S. Attorney Stephen J. Cox. “We are honored to join the Department’s Gulf Coast Strike Force and look forward to working together with them and with our law enforcement partners to protect the people of the Eastern District from fraud and abuse and to bring wrongdoers to justice.”
“Each year, healthcare fraud costs the American taxpayers tens of billions of dollars,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Criminal Division’s Health Care Fraud Strike Forces are a critical tool in the Department of Justice’s efforts to identify, investigate, and prosecute those who defraud our healthcare system. We are eager to announce this new partnership with the Eastern District of Texas, which will enhance and expand our efforts to prosecute healthcare fraud and protect American taxpayers.”
“The FBI is the primary agency for exposing and investigating health care fraud and we are pleased that the expansion of the Gulf Coast Health Care Fraud Strike Force into the Tyler area will allow us to vigorously pursue the most egregious offenders through coordinated law enforcement operations with our investigative partners,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno.
“Health care fraud is a multi-billion dollar criminal enterprise,” said FBI Houston Special Agent in Charge Perrye K. Turner. “The FBI Houston Division sees significant success when we partner with multiple agencies to combat health care fraud in our communities. We look forward to expanding these efforts through the Gulf Coast Health Care Fraud Strike Force and continuing to strengthen our partnerships in the Eastern District of Texas.”
“The diversion of prescription pharmaceuticals is a public health epidemic impacting many communities throughout the country. The communities in the Eastern District of Texas are no different,” stated Steven S. Whipple, Special Agent in Charge of the DEA Houston Division. “We welcome the specialized prosecutorial resources that the Gulf Coast Strike Force brings to the Eastern District of Texas.”
“The OIG’s unwavering commitment in working with our law enforcement partners throughout the country on Strike Force Teams has resulted in more than a thousand arrests and recovered millions of taxpayer dollars,” said Dallas Special Agent in Charge Miranda Bennett. “OIG looks forward to continuing these important accomplishments through our already dynamic partnerships in the Eastern District of Texas.”
The HCF Unit operates 15 Strike Forces across the United States, in 24 federal districts, including Miami, Tampa, and Orlando, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; the Gulf Coast; Tampa, Florida; Chicago, Illinois; and Dallas, Texas, along with the National Rapid Response Strike Force located in Washington, D.C. The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG, and other federal and local agency partners.
The Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the U.S. Attorney’s Offices for the Eastern District of Texas, and special agents with the FBI, HHS-OIG and DEA. In addition, the Gulf Coast Strike Force will work closely with other various federal law enforcement agencies. The Strike Force will focus its efforts on aggressively investigating and prosecuting cases involving fraud, waste, and abuse within our federal health care programs, and cases involving illegal prescribing and distribution of opioids and other dangerous narcotics.
In September, Acting Assistant Attorney General Brian C. Rabbitt noted the success of the Strike Force model while announcing a historic nationwide enforcement action involving 345 charged defendants across 51 federal districts, including more than 100 doctors, nurses and other licensed medical professionals. Five of the defendants were indicted in the Eastern District of Texas. Altogether, these defendants have been charged with submitting more than $6 billion in false and fraudulent claims to federal health care programs and private insurers, including more than $4.5 billion connected to telemedicine, more than $845 million connected to substance abuse treatment facilities, or “sober homes,” and more than $806 million connected to other health care fraud and illegal opioid distribution schemes across the country. More information can be obtained at: https://www.justice.gov/usao-edtx/pr/largest-health-care-fraud-and-opioid-enforcement-action-department-justice-history.
Among those charged in the Eastern District were Steven Churchill, 34, of Boca Raton, Florida, Samson Solomon, 22, of West Palm Beach, Florida, David Warren, 49, of Boca Raton, Florida, and Daniel Stadtman, 66, of Allen, Texas. The defendants are alleged to have conspired to pay and receive kickbacks in exchange for physicians’ orders from purported telemedicine companies. The physicians’ orders were used to submit claims for payment to federal health care programs. The conspirators obtained patient information, including protected health information and personally identifiable information, used the information to create fictitious physicians’ orders, and sold the physicians’ order to each other and to other durable medical equipment providers. Within approximately eight months, the defendants collectively obtained more the $2.9 million in proceeds from the scheme.
In another Eastern District case, Clifford Russell Harris, a 38-year-old registered nurse, pleaded guilty to recklessly endangering Texarkana, Texas, patients by stealing fentanyl. Harris broke into the secure drug storage at Healthcare Express in Texarkana, Texas, and tampered with vials of fentanyl stored there. He extracted the fentanyl from the vials and refilled the vials with another liquid. Harris then returned the vials to the drug stock where they were available for administration to patients. Harris admitted that he had acted with reckless disregard of the danger to patients and that his actions manifested an extreme indifference to that risk.
The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion.
Four charged with conspiring to transport 61 aliens in tractor trailerRead the Press Release
LAREDO, Texas – A federal grand jury has returned an indictment against four area residents on charges of conspiracy to transport 61 undocumented aliens, announced U.S. Attorney Ryan K. Patrick.
Octavio Ramirez, 27, Juan Antonio Carranco Jr., 26, San Juana Guadalupe Juarez-Flores, 39, and Alina Rodriguez, 20, were all originally charged via criminal complaint. They are expected to appear for their arraignments on the charges in the indictment before a U.S. magistrate judge in the near future.
Ramirez, Carranco and Rodriguez are U.S. citizens. Ramirez resided in Nuevo Laredo, Mexico, while other two resided in Laredo. Juarez-Flores is a Mexican national who resides in Laredo.
On Oct. 23, law enforcement set up surveillance at the intersection of North Smith Avenue and Green Street in Laredo, according to the complaint. Authorities allegedly witnessed Ramirez arrive at the location and either direct or escort aliens into the back of a nearby parked tractor-trailer multiple times.
Throughout the evening, Carranco, Juarez-Flores and Rodriguez all also arrived at the location, dropped off aliens in their personal vehicle and then left the scene, according to the charges.
Law enforcement ultimately apprehended a total of 61 undocumented aliens from various countries including Mexico, Guatemala and Honduras at the location.
If convicted, each faces up to 10 years in prison as well as a possible $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection, Border Patrol, FBI and the Webb County Constable’s Office. Assistant U.S. Attorney Brian Bajew is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Fort Wayne Man Sentenced to 235 Months in PrisonRead the Press Release
FORT WAYNE – Hector I. Mendez, age 29, of Fort Wayne, Indiana, was sentenced before U.S. District Court Judge Holly A. Brady following his plea of guilty to distributing 50 grams or more of methamphetamine, announced U.S. Attorney Kirsch.
Mendez was sentenced to 235 months in prison followed by 5 years of supervised release.
According to documents presented in this case, on October 19, 2018, Mendez distributed more than 50 grams of methamphetamine, and from August through October of 2018, Mendez distributed methamphetamine on multiple other occasions.
“Narcotics trafficking hurts the citizens of Fort Wayne,” said ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “Law enforcement partnerships such as this local, state and federal effort will continue to investigate narcotics trafficking and violent crime plaguing our communities”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with the assistance of the Indiana State Police, the Fort Wayne Police Department, and the Mission (Texas) Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
Former UAW Vice President Sentenced to 30 Months for Taking $250,000 in Bribes and KickbacksRead the Press Release
Joseph Ashton, former Vice President of the UAW’s General Motors Department, was sentenced today to 30 months in federal prison for conspiring with other UAW officials to engage in honest services fraud by taking $250,000 in bribes and kickbacks from a UAW vendor and for conspiring to launder the proceeds of the scheme announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the Chicago Region for the U.S. Department of Labor – Office of Inspector General, Acting Special Agent in Charge David G. Nanz, Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
In December 2019, Joseph Ashton, 72, of Ocean View, NJ, pleaded guilty to conspiring with two other high-level UAW officials—Michael Grimes and Jeffrey Pietrzyk—to take hundreds of thousands of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources (CHR). Grimes and Pietryzk have also pleaded guilty. Grimes was sentenced to 28 months in prison and Pietrzyk is awaiting sentencing.
The CHR is supposed to be a center for training UAW workers employed by GM. Ashton was the co-director of the Center for Human Resources. Ashton, Pietrzyk and Grimes also served on the Executive Board for the Center for Human Resources and they were responsible for approving contracts with the vendors. Ashton admitted that over the course of the conspiracy, he and the other two UAW officials demanded and accepted bribes and kickbacks from a vendor based in Philadelphia, PA, in exchange for securing or maintaining a contract to provide custom watches to the Center for Human Resources.
Ashton and his UAW co-conspirators demanded kickbacks on the $3.9 million contract for the Center for Human Resources to buy 58,000 watches for all UAW members employed by GM. Ashton demanded over $250,000 in kickbacks on the watch contract to be distributed between 2013 through 2016. Some of the kickbacks were distributed in the form of checks payable to Ashton which were deposited into his personal bank account. The majority of the kickbacks were distributed as cash. In 2014, the UAW-GM Center for Human Resources received the 58,000 watches from the vendor. However, the watches were never distributed to UAW members. Instead, the watches were left sitting in a storage room at the CHR for over five years.
Besides conspiring with other UAW officials and vendors to the UAW, Ashton also admitted that he conspired to launder the proceeds of the kickback scheme by using various methods to conceal and disguise the bribes and kickbacks through a lengthy and complicated series of financial transactions.
Ashton is one of 15 defendants convicted in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), and former senior UAW official Michael Grimes (28 months). In addition, the following UAW officials have pleaded guilty and are awaiting sentencing: former UAW President Gary Jones, former senior UAW official Jeffrey “Paycheck” Pietrzyk, former UAW Region 5 Director and UAW Board member Vance Pearson, former UAW Midwest CAP President Edward “Nick” Robinson, and former UAW President Dennis Williams.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“Joseph Ashton illegally used his power and influence to benefit himself, and he caused long-lasting damage to the hardworking members of the UAW. Ashton wasted almost $4 million that could have been used to train UAW members, and his crimes led to the closing of the UAW-GM training center and the loss of many training center jobs. Ashton’s greed caused irreparable damage to the trust UAW members have in their leaders who are supposed to represent their best interests,” stated U.S. Attorney Schneider.
“Joseph Ashton abused his position with the International United Auto Workers Union (UAW) by demanding and accepting over $250,000 in kickbacks from a UAW vendor. Instead of bargaining in the best interests of the UAW members, he chose to personally enrich himself. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“The men and women of the UAW deserve real, honest leadership. It is clear Mr. Ashton’s priority was not to advocate for union members but to line his own pockets,” said Acting SAC David G. Nanz. “The FBI will continue to work with our law enforcement partners to investigate corruption and ensure the financial integrity of our country’s labor unions.”
“It is imperative that UAW leadership continues to be held accountable for their selfish acts of greed,” stated Sarah Kull, Special Agent in Charge of IRS-Criminal Investigation in Detroit. “Today’s sentence is another step forward in our efforts to rid the UAW of corrupt leaders who abuse their positions to line their own pockets and tarnish the reputation of UAW officials.”
“Joseph Ashton is another in a long line of UAW officials that failed in his fiduciary duties and betrayed the trust of the UAW membership by using his union position to obtain bribes and kickbacks from vendors in excess of $250,000 so that he could enrich himself and others within the UAW,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “Today's sentence leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of their fellow union members.”
The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson and Eaton Brown.
Former Resident of Bergen County Admits Role in $1.5 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A former New Jersey resident today admitted participating in an investment scheme through which he fraudulently obtained $1.525 million from at least three families from 2017 through 2019, U.S. Attorney Craig Carpenito announced.
Matthew Benjamin, 53, formerly of Englewood, New Jersey, and now of New York, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of wire fraud and one count of securities fraud.
According to documents filed in this case and statements made in court:
From May 2017 through August 2019, Benjamin falsely represented to at least three families that his company, Clear Solutions Group LLC, had lucrative contracts to purchase closeout or excess cosmetic inventory from Company A, which he would then resell at a mark-up to Company B. Benjamin told the victims that he had access to these closeout goods through his contacts in the cosmetics and fragrance industry, which he purportedly made through his work at his family’s cosmetic wholesale and distribution business prior to starting Clear Solutions Group. Benjamin induced the victims to provide him with money to purchase the inventory from Company A and promised significant profits in return. Instead of investing the money as he promised, Benjamin misappropriated the investor’s money for his own use and benefit.
Benjamin provided the victims with falsified documents, including fake purchase orders, invoices, promissory notes and bank records showing inflated assets of Clear Solutions Group. To lull victims and induce them to continue investing, Benjamin provided them with documents that purported to detail the investors’ profits.
Benjamin misrepresented to certain investors that portions of their profits on the investment contracts were being reinvested in additional deals to purchase and sell cosmetics, which in turn would generate more profits. From time to time, Benjamin made payments to the investors that were purportedly their profits on certain cosmetics contracts.
In reality, Benjamin misappropriated the investors’ money by making payments to other investors in Clear Solutions Group, which were characterized as those investors’ profits from the nonexistent cosmetic contracts, thereby enabling Benjamin to continue to perpetuate his fraudulent scheme; and by funding Benjamin’s and his family’s lifestyle, including paying for car and house rental payments, food, international travel, legal fees, technology equipment, and summer camp tuition for his family members.
The wire fraud counts are each punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. The securities fraud count is punishable by a maximum of 20 years in prison and a fine of $5 million. Sentencing is scheduled for March 24, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Director Richard R. Best, for its assistance. The SEC also filed a civil complaint based on the same conduct when Benjamin was arrested July 1, 2020; that complaint remains pending.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Former Raytheon Engineer Sentenced for Exporting Sensitive Military-Related Technology to ChinaRead the Press Release
TUCSON, Ariz. – Today, Wei Sun, 49, a Chinese national and naturalized citizen of the United States, was sentenced to 38 months in prison by District Court Judge Rosemary Marquez. Sun previously pleaded guilty to one felony count of violating the Arms Export Control Act (AECA).
Sun was employed in Tucson for 10 years as an electrical engineer with Raytheon Missiles and Defense. Raytheon Missiles and Defense develops and produces missile systems for use by the United States military. During his employment with the company, Sun had access to information directly related to sensitive defense technology. Some of this defense technical information constituted what is defined as “defense articles,” which are controlled and prohibited from export without a license under the AECA and the International Traffic in Arms Regulations (the ITAR).
From December 2018 to January 2019, Sun traveled from the United States to China on a personal trip. On that trip, Sun brought along unclassified defense-related technical information in his company-issued computer, including data associated with an advanced missile guidance system that was controlled and regulated under the AECA and the ITAR. Despite having been trained to handle these materials correctly, Sun knowingly transported the information to China without an export license in violation of the AECA and the ITAR.
“Sun was a highly skilled engineer entrusted with sensitive missile technology that he knew he could not legally transfer to hostile hands,” said Assistant Attorney General John C. Demers. “Nevertheless, he delivered that controlled technology to China. Today’s sentence should stand as a warning to others who might be tempted similarly to put the nation’s security at risk.”
“The United States relies on private contractors to help build our unparalleled defense technology,” said United States Attorney Michael Bailey. “People who try to expose that technology to hostile foreign powers should know that prison awaits them. The close cooperation of the victim defense contractor and the dedication of the FBI made this case a success.”
"Sun admitted to illegally exporting controlled weapons technology plans out of the U.S. to China." said Sean Kaul Special Agent in Charge of the FBI Phoenix Field Office. "China represents the greatest counterintelligence threat to our nation's protected information and intellectual property. Confronting this threat remains a top priority for the FBI and we applaud the victim company for their cooperation and coordination throughout this investigation. We encourage Americans to be aware of the foreign economic espionage threat and report any relevant information to their local FBI office."
The Federal Bureau of Investigation, investigated this matter with the assistance of Raytheon Missile and Defense. Beverly K. Anderson and Nicole P. Savel, Assistant United States Attorneys, and William Mackie from the National Security Division, Counterintelligence and Export Control Section, handled the prosecution.
CASE NUMBER: CR-19-00472 TUC-RM
RELEASE NUMBER: 2020-103_Wei Sun# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former Employee of Birmingham Area Psychology Clinic Sentenced for Role in Defrauding State Medicaid Agency of at Least $1.5 MillionRead the Press Release
BIRMINGHAM, Ala. – U.S. Attorney Prim Escalona, Alabama Attorney General Steve Marshall, and U.S. Department of Health and Human Services -OIG Special Agent in Charge Derrick Jackson announced the sentencing today of a woman for her role in a scheme to defraud the Alabama Medicaid Agency of at least $1.5 million. Heidi Robertson, 35, was employed as the primary insurance biller at a Birmingham-area psychology clinic that billed the Medicaid Agency for counseling services that were never provided.
Robertson was sentenced to 18 months in prison and ordered to pay $850,000 in restitution by U.S. District Judge R. David Proctor after she pleaded guilty earlier this year to one count of conspiracy to commit healthcare fraud by filing false claims to the Alabama Medicaid Agency for individual and group counseling services for at-risk youth while she was employed at Capstone Medical Resources LLC. The owner of the facility, former Birmingham psychologist Sharon D. Waltz, pleaded guilty in 2019 to defrauding Medicaid of at least $1.5 million. Waltz is scheduled to be sentenced by Judge Proctor on December 10.
An investigation was initiated by the Program Integrity Division of the Alabama Medicaid Agency after an audit showed that billings submitted by Capstone for counseling services had increased from $99,000 in 2015 to more than $2 million in 2017. The Program Integrity Division referred its findings to the Attorney General’s Medicaid Fraud Control Unit after Waltz submitted falsified records during the Program Integrity Audit.
A subsequent investigation was conducted by the Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services Office of Inspector General. This investigation determined that most claims submitted by Capstone from 2016 to 2018 were fraudulent. Robertson’s role in the scheme included submitting claims using the Medicaid identifications of friends’ and family members’ children for counseling services that never took place. Waltz paid Robertson a 10 percent commission for all claims paid by Medicaid. Robertson was employed by Waltz from 2016 through late 2017.
“Robertson’s actions demonstrated reckless disregard for at-risk youth, and she will now face the consequences of those actions,” U.S. Attorney Prim F. Escalona said. “Today’s sentence represents the relentless commitment by the U.S. Attorney’s Office and our law enforcement partners to protect the resources dedicated to the members of our community that are the most vulnerable, our children.”
Attorney General Marshall said, “It is appropriate that this defendant face stern consequences for engaging in an illegal and immoral scheme to profit at the expense of children in need by claiming payment for services that were never provided. As Attorney General, I stand committed with my federal counterparts to punish those who plunder the public treasury and betray the at-risk youth they were entrusted to serve.”
“Today’s sentencing should serve as a reminder to everyone who transacts business with federal health care programs, including Medicaid, that those programs are protected by a dedicated team of investigators and prosecutors,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will not tolerate fraudulent actors who illegally enrich themselves at the expense of patients and the American people.”
The U.S. Department of Health and Human Services OIG, the Alabama Attorney General’s Medicaid Fraud Control Unit and the Program Integrity Division of the Alabama Medicaid Agency investigated the case. Assistant U.S. Attorney J.B. Ward and Assistant Attorney General Bruce Lieberman, working as a Special Assistant U.S. Attorney, prosecuted.
Former CEO Charged in Schemes to Defraud U.S. Government Related to the Conflict in AfghanistanRead the Press Release
HUNTSVILLE, Ala. – The former Chief Executive Officer of a U.S. government contractor was charged today in connection with schemes to defraud the U.S. Department of Defense regarding contracts related to U.S. military efforts in Afghanistan.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Prim F. Escalona of the Northern District of Alabama, Special Inspector General John F. Sopko for Afghanistan Reconstruction, and Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit made the announcement.
Paul Daigle, 40, was charged with conspiracy, four counts of wire fraud, and four counts of false claims in an indictment filed today in the Northern District of Alabama. Daigle was the CEO of a company based in Huntsville, Alabama, which served as a subcontractor on U.S. Department of Defense aviation contracts related to the war in Afghanistan.
According to the indictment, between 2013 and 2017, Daigle allegedly engaged in two fraudulent schemes that resulted in the submission of false claims to the U.S. Government. The first scheme involved the use of unqualified employees for government contracts. Daigle allegedly mapped employees to labor categories on government contracts for which the employees did not meet minimum qualifications, resulting in the government overpaying for unqualified labor. To cover this up, Daigle allegedly directed employees to obtain false educational credentials and “fake degrees” from diploma mills on the internet. The second scheme involved alleged false billing, in which the government was charged for work unrelated to a government contract.
The Criminal Division’s Fraud Section is the nation’s leading prosecuting authority for complex procurement fraud and corruption cases.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This investigation is being conducted by the Special Inspector General for Afghanistan Reconstruction and the U.S. Army Criminal Investigations Division – Major Procurement Fraud Unit. Trial Attorneys Michael P. McCarthy and Matthew Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Davis Barlow of the U.S. Attorney’s Office for the Northern District of Alabama are prosecuting the case.
Former CEO Charged in Schemes to Defraud U.S. Government Related to the Conflict in AfghanistanRead the Press Release
The former chief executive officer of a U.S. government contractor was charged today in connection with schemes to defraud the U.S. Department of Defense regarding contracts related to U.S. military efforts in Afghanistan.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Prim F. Escalona of the Northern District of Alabama, Special Inspector General John F. Sopko for Afghanistan Reconstruction, and Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit made the announcement.
Paul Daigle, 40, was charged with conspiracy, four counts of wire fraud, and four counts of false claims in an indictment filed today in the Northern District of Alabama. Daigle was the CEO of a company based in Huntsville, Alabama, which served as a subcontractor on U.S. Department of Defense aviation contracts related to the war in Afghanistan.
According to the indictment, between 2013 and 2017, Daigle allegedly engaged in two fraudulent schemes that resulted in the submission of false claims to the U.S. Government. The first scheme involved the use of unqualified employees for government contracts. Daigle allegedly mapped employees to labor categories on government contracts for which the employees did not meet minimum qualifications, resulting in the government overpaying for unqualified labor. To cover this up, Daigle allegedly directed employees to obtain false educational credentials and “fake degrees” from diploma mills on the internet. The second scheme involved alleged false billing, in which the government was charged for work unrelated to a government contract.
The Criminal Division’s Fraud Section is the nation’s leading prosecuting authority for complex procurement fraud and corruption cases.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This investigation is being conducted by the Special Inspector General for Afghanistan Reconstruction and the U.S. Army Criminal Investigations Division – Major Procurement Fraud Unit. Trial Attorneys Michael P. McCarthy and Matthew Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Davis Barlow of the U.S. Attorney’s Office for the Northern District of Alabama are 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.
Florida Man Sentenced to 37 Months in Prison for Laundering More Than $9 Million in Account Takeover SchemeRead the Press Release
TRENTON, N.J. – A Florida man was sentenced today to 37 months in prison for laundering funds related to a $9 million business account takeover scheme with ties to Eastern Europe, U.S. Attorney Craig Carpenito announced.
Igor Buzyukov, 52, of Weston, Florida, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with conspiracy to commit money laundering. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Between February 2018 and July 2018, several clients of Company-1, a financial technology company headquartered in San Jose, California, fell victim to an account takeover scheme resulting in total losses exceeding $9 million.
The scheme generally involved an unidentified individual or individuals calling Company-1 and impersonating a representative of one of the victim companies. The impostor(s) would then request that an unauthorized bank account be added to the victims’ Company-1 accounts and be designated to receive payments from e-commerce customers.
The unauthorized bank accounts added to the victims’ Company-1 accounts were each controlled by Buzyukov under the name of a corporation registered to him in the State of Florida. After monies were deposited to the unauthorized accounts, Buzyukov would transfer the funds to other accounts controlled by him. Buzyukov then wired the majority of the funds to several bank accounts held by various individuals in Russia, Turkey and Ukraine.
Buzyukov also admitted to creating fake invoices in the amounts of the wire transfers in order to make the transactions appear legitimate.
In addition to the prison term, Judge Thompson sentenced Buzyukov to three years of supervised release and ordered him to pay restitution of $160,000, his illegal proceeds from the scheme.
U.S. Attorney Carpenito credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrime Unit.
Financial Adviser Sentenced for Running A Multimillion-Dollar Ponzi SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that JAMES T. BOOTH was sentenced in Manhattan federal court today to 42 months in prison in connection with his years-long scheme to defraud customers of his financial services firm, Booth Financial Associates (“Booth Financial”), of nearly $5 million through a variety of lies and misrepresentations. BOOTH pled guilty to one count of securities fraud on October 22, 2019, before U.S. District Judge John G. Koeltl, who also imposed today’s sentence.
Acting Manhattan U.S. Attorney Audrey Strauss said: “Today, James T. Booth was sentenced for brazenly bilking some 40 clients of nearly $5 million by fraudulently convincing them that he would deliver solid and secure returns on their investments. Instead, Booth delivered lies and deceit. We will continue to aggressively pursue frauds like this one to preserve investor confidence in our capital markets.”
According to the allegations contained in the Indictment:
From 2013 through 2019, BOOTH solicited money from clients of Booth Financial and falsely promised to invest their money in securities offered outside of their ordinary advisory and brokerage accounts. Specifically, BOOTH directed certain of his clients to write checks or wire money to an entity named “Insurance Trends, Inc.” Instead of investing his clients’ funds, BOOTH, who controlled the bank account of Insurance Trends, Inc., subsequently misappropriated his clients’ funds to pay his personal and business expenses.
In total, BOOTH raised more than $4.9 million from approximately 40 investors. BOOTH lured many of his victims with false promises of safe investments with high returns. For example:
• BOOTH convinced a recently widowed elderly investor (“Investor-1”) to move money she had received from her late husband’s pension into Insurance Trends, Inc. BOOTH falsely promised Investor-1 that she would have $1 million by the time she was 100 years old. As a result of BOOTH’s false assurances, Investor-1 invested more than $600,000 with BOOTH.
• BOOTH similarly convinced another investor (“Investor-2”) to move his money into an investment product that, according to BOOTH, would never lose its principal and would grow with the market. Based on this false representation, Investor-2 moved money he had set aside for his child’s college expenses, at least approximately $60,000, to BOOTH. BOOTH subsequently failed to provide Investor-2 with documentation of his investment or to allow Investor-2 to redeem his investment.
• BOOTH convinced another elderly investor (“Investor-3”) to withdraw money from an annuity established for the care of his disabled sibling – approximately $18,000 – and invest that money with BOOTH. Investor-3 gave the money to BOOTH with the understanding that BOOTH would invest that money for the benefit of Investor-3’s sibling’s continued care.
To prevent investors from seeking a return of their money, and to induce additional investments, BOOTH provided investors with fabricated account statements that falsely indicated that BOOTH had purchased certain securities on their behalf and that those investments had generated a profit. BOOTH further concealed the truth from investors by using money obtained from new investors to make redemption payments to previous investors, in a Ponzi-like fashion.
* * *
In addition to the prison term, BOOTH, 75, of Norwalk, Connecticut, was sentenced to three years of supervised release, and was ordered to pay $4,969,689.00 in forfeiture. BOOTH will pay restitution in an amount to be determined by the Court.
Ms. Strauss praised the outstanding work of Homeland Security Investigations and also thanked the Securities and Exchange Commission for its assistance in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Robert L. Boone is in charge of the prosecution.
Federal Grand Jury Indicts Convicted Felon for Having a Destructive Device and Multiple Firearms inside his Austin ApartmentRead the Press Release
In Austin today, a federal grand jury indicted 38–year-old Erich Michael Wittwer for having a homemade destructive device in his apartment, announced U.S. Attorney Gregg N. Sofer and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The indictment charges Wittwer with one count of unlawful possession of a destructive device and one count of being a prohibited person, namely a convicted felon, in possession of a firearm.
According to court records, FBI agents executed a search warrant on the defendant’s residence on November 5, 2020. There, they discovered the destructive device and a total of seven firearms including five pistols, one 12 gauge shotgun and one .308 caliber semi-automatic assault rifle. Wittwer’s criminal history reveals prior felony convictions including two in 2009 for Assault Family Violence in Travis County, Texas.
Each charge calls for up to ten years in federal prison upon conviction. Wittwer remains in federal custody.
The FBI is investigating this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Kathryn Cherry is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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.
#####
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.
Federal Grand Jury Indictment Charges Alleged Bank Robber Arrested after Crashing Getaway Car at Vandenberg Air Force BaseRead the Press Release
LOS ANGELES – A Michigan man was taken into federal custody today on charges that he robbed a credit union in Santa Barbara County, attempted to rob a bank, and then led law enforcement on a high-speed chase that resulted in him crashing his getaway car at Vandenberg Air Force Base.
Maurice Antwion Pilgrim Jr., 19, of Detroit, is expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.
A federal grand jury indictment returned on November 10 charges Pilgrim with one count of robbery and one count of attempted robbery.
According to the indictment, on October 13 Pilgrim robbed Coast Hills Credit Union in Lompoc, making off with $3,000. Two days later, he allegedly attempted to rob Mechanics Bank in Guadalupe, but fled after seeing a nearby bank security guard, according to court documents filed in this case.
After the failed bank robbery, law enforcement officials located Pilgrim driving on Highway 1 and began pursuing him, according to court documents. The high-speed chase ended when Pilgrim crashed his car near the Vandenberg Air Force Base visitor center, court papers state. Pilgrim later fled the scene on foot, but he was arrested soon afterward. Pilgrim had been in state custody until today.
After being arrested on October 15, Pilgrim made incriminating statements, according to court papers that state clothing and other items found in a Ford Taurus Pilgrim had rented in July – but was never returned – matched security camera footage and witness descriptions of him. Pilgrim also allegedly told law enforcement that, before the robbery, he used Google to research penalties for bank robbery.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of both counts, Pilgrim would face a statutory maximum sentence of 40 years in federal prison.
This case was investigated by the FBI, the Lompoc Police Department, the Guadalupe Police Department, and the Santa Barbara County Sheriff’s Office.
This matter is being prosecuted by Assistant United States Attorney Jeremiah M. Levine of the General Crimes Section.
Ex-Attorney Indicted on Federal Wire Fraud, Mail Fraud, False Statement ChargesRead the Press Release
LYNCHBURG, Va. – A federal grand jury sitting in U.S. District Court in Roanoke indicted Cherie Anne Washburn, a former attorney who specialized in elder law and estate planning, on federal wire fraud, mail fraud, and false statement charges. Acting United States Attorney Daniel P. Bubar and David W. Archey, Special Agent in Charge of the FBI’s Richmond Division made the announcement today following the defendant’s initial court appearance.
Washburn, 44, of Lynchburg, Va., is charged with ten counts of wire fraud, two counts of making a false statement to a mortgage lender, and one count of mail fraud. If convicted, Washburn faces up to 30 years in federal prison.
According to court documents, from around 2015 and continuing until 2018, Washburn engaged in a scheme to defraud and obtain money or property by fraudulent pretenses, representations or promises from elder victims C.A. and D.F. Washburn is alleged to have used the ill-gotten monies to enrich herself, including purchasing real estate and making donations to charities.
In 2015 and 2016, a senior care management service company referred victims C.A. and D.F. to Washburn for the purpose of obtaining elder legal services. Washburn subsequently entered separate Power of Attorney (POA) agreement with both victims. Under the terms of both POAs, Washburn was entitled to reasonable compensation and reimbursement for reasonable expenses for services rendered but could not use the personal property of the client to benefit the attorney.
The indictment alleges that despite the agreement, Washburn wrote multiple checks from victim C.A. and victim D.F.’s accounts to herself for personal benefit. These checks ranged in value from $4,200 to $40,000.
Additionally, the indictment alleges that in 2017, Washburn attempted to improperly make herself the beneficiary of two investment accounts held by C.A.. At the time, these accounts had a combined approximate value of $288,000.
Throughout 2017, the indictment alleges that Washburn made charitable donations using money fraudulently obtained from victims C.A. and D.F. These donations were made without the consent of the victims.
In or around March 2018, the indictment alleges, Washburn purchased a residence in Lynchburg, Va., for approximately $219,000 using monies belonging to victim C.A. and a mortgage lender. In order to complete the purchase, on or about April 22, 2018, Washburn submitted a letter to Quicken Loans falsely stating that victim C.A. provided Washburn with a gift of $40,000 for the purchase of 111 Wyndsong Place. The gift letter also falsely stated that victim C.A. was Washburn’s great-aunt. The next day Washburn deposited $45,000 from victim C.A.’s SunTrust Account to Washburn’s Wells Fargo account.
The investigation of the case was conducted by Federal Bureau of Investigation and the Lynchburg City Police Department. Acting United States Attorney Daniel P. Bubar, Assistant United States Attorney Michael Baudinet, and Special Assistant United States Attorney and Commonwealth Attorney for the City of Lynchburg Bethany Harrison are prosecuting the case for the United States.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Environmental lab analyst enters guilty plea to falsifying test results chargeRead the Press Release
U.S. Attorney Justin Herdman announced today that Andrew K. Ecklund, age 57, of Tallmadge, entered a plea of guilty to an indictment charging him with nine counts of wire fraud.
Joining U.S. Attorney Justin Herdman in the announcement were Jennifer Lynn, Special Agent in Charge of the EPA’s Criminal Investigation Division in Ohio; Patrick J. Hegarty, Acting Special Agent in Charge of the DCIS Northeast Field Office; Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Command’s (Army CID) Mid-Atlantic Fraud Field Office and Ohio Attorney General Dave Yost.
According to court documents, Ecklund was previously employed as a laboratory analyst with an environmental testing company operating in Northeast Ohio. The company was paid to analyze environmental samples for organizations and government agencies across the United States and to do so according to U.S. EPA regulations. As a laboratory analyst, Ecklund was responsible for testing the samples for the presence and concentration of hazardous substances using industry standards, methodology and quality control measures.
On nine separate occasions between on or about January 3, 2012, and on or about July 25, 2015, when conducting quality control testing measures, Ecklund took steps to make it appear that the samples had passed the testing measures, when in fact, they had failed. In particular, Ecklund manipulated the tune and calibration portions of the quality control process and, in doing so, invalidated the sample analysis. By disguising these invalid tests and making them appear valid, Ecklund was able to increase his productivity by avoiding having to shut down his instruments for repair and not retesting the samples, as required by EPA regulations. As a result of his actions, the test results provided by the company to their customers were invalid.
“Deliberately falsifying the test results of a process that is in place to keep people safe and healthy shows a reckless disregard for the well-being of your fellow man,” said U.S. Attorney Justin Herdman. “We are grateful for the actions of our partner agencies in this investigation in order to catch this behavior and put an end to it.”
“Both environmental regulators and the regulated community rely on accurate laboratory results to make important decisions on the protection of human health and the environment,” said Special Agent in Charge Jennifer Lynn of EPA’s Criminal Investigation Division in Ohio. “Quality control is one of the most important aspects of sample analysis. This plea demonstrates that analysts who cover up failed quality control measures and then misrepresent test results will be held accountable.”
"The integrity of the DoD procurement process is a top priority for the Defense Criminal Investigative Service (DCIS)," stated Acting Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. "The defendant's guilty plea is the result of a joint investigative effort and demonstrates the DCIS' commitment to work with the USAO-NDO, the EPA-CID and the Army CID, to ensure that claims submitted to the U.S. Department of Defense for the testing of environmental samples are valid and supported by accurate documentation."
After the laboratory testing was complete, the company was required to submit an analysis report to its customers detailing the results. Each report identified the laboratory analyst who conducted the testing and described any deviations from the testing methodology, including the quality control measures. On his analysis reports, Ecklund failed to disclose that the samples had not passed the quality control measures and the actions he took to make it appear that they had passed.
Ecklund is scheduled to be sentenced on March 8, 2021 before U.S. District Court Judge Pamela A. Barker.
The investigation preceding the indictment was conducted by the U.S. EPA, Army Criminal Investigation Division to Army Criminal Investigation Command Major Procurement Fraud Unit, Department of Defense, Defense Criminal Investigative Service, Ohio EPA and the Ohio Attorney General’s Office. This case was prosecuted by Assistant U.S. Attorney Brad J. Beeson.
Dominican Man Sentenced to 144 Months for His Involvement in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Juan Jose Gonzalez Ramirez, also known as Lucas Rios, 42, of the Dominican Republic, was sentenced on Monday to 144 months in federal prison for conspiracy to distribute fentanyl in a seven-defendant drug trafficking case, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between January of 2018 and January of 2019, Ramirez conspired with other persons to distribute fentanyl in the Manchester area and to collect the proceeds of fentanyl sales. The proceeds were delivered to Ramirez, who was based in Lawrence, Massachusetts. During that period, investigators made multiple controlled buys and seizures of fentanyl from Ramirez and his co-conspirators in the Manchester area. Although he sometimes traveled to New Hampshire during the conspiracy, Ramirez typically remained in Massachusetts, took orders for drugs from his customers by telephone, and directed co-conspirators to meet his customers in New Hampshire, deliver fentanyl, and collect the proceeds.
Ramirez previously pleaded guilty on September 16, 2019. After serving his sentence, he faces likely removal to the Dominican Republic.
Co-defendants Israel Perez, Abelino Morales-Padilla, Jose Hiram Martinez Rolon, Karina Reyes, Samuel Ramos, and Billy Damuel Maldonado Cancel previously pleaded guilty to fentanyl trafficking charges in the same case. Perez was sentenced to 168 months, Morales-Padilla was sentenced to 42 months, Rolon was sentenced to 30 months, Ramos was sentenced to 22 months and Cancel was sentenced to 33 months. Reyes received a time-served sentence.
“Distributing fentanyl in New Hampshire carries serious unpleasant consequences for those responsible” said U.S. Attorney Murray. “This 144-month sentence puts interstate drug dealers on notice that their illegal activities will lead to federal prison. In order to stop the deadly flow of fentanyl into our cities and towns, federal, state and local law enforcement officers are working every day to disrupt criminal conspiracies such as this one. Traffickers should expect that they will be brought to justice”.
“The worldwide pandemic has not slowed down the efforts of those who threaten our communities with the deadly scourge of fentanyl,” said David Magdycz, Special Agent in Charge, Homeland Security Investigations (HSI), Boston. “The arrest and sentencing of this individual are the results of the tireless work and cooperation between New Hampshire State Police and our agents. The result is lives saved and a safer community.”
This matter was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney John S. Davis.
###
Department of Justice grant will provide support for Richmond County efforts to deter youth gangsRead the Press Release
AUGUSTA, GA: A nearly quarter-million-dollar award from the U.S. Department of Justice will address the need for resources to prevent at-risk youth in Richmond County from becoming involved in street gangs.
Awarded for the support of Richmond County Juvenile Court, the $230,000 grant from the Office of Juvenile Justice and Delinquency Prevention 2020 Comprehensive Anti-Gang Programs for Youth is aimed at supporting the Richmond County Youth Aiming for Success, or YAS, program, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
“Voices across the Augusta area echo what we know to be true: that children in our community are increasingly involved in street gangs and criminal activity, and both are a dead end,” said U.S. Attorney Christine. “This DOJ award will provide a solid, accountable base of support for court and community programs aimed at strengthening families while undermining the malignant influence of gangs.”
Under the grant, Richmond County Juvenile Court is charged with using juvenile justice programs to promote youth and families; to encourage family structures through socially controlled activities; to deter youths from gang involvement through community-based mentoring programs; and demonstrate that the practices and services delivered through the program are supported by research. The court’s activity tracking system will be used to measure the program’s success.
For more information on Grant No. 2020-PB-BX-0023, contact the Office of Justice Program’s Office of Communications at 202-307-0703.
Crossett Man Sentenced to over 5 Years in Federal Prison for Being A Felon in Possession of A FirearmRead the Press Release
El Dorado, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced that Christopher Gibson, age 41, of Crossett, Arkansas, was sentenced today to 63 months in federal prison followed by three years of supervised release for one count of being a Felon In Possession of a Firearm. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records on October 9, 2019, Arkansas State Parole Officers and Ashley County Sheriff’s deputies conducted a parole search on Gibson at Gibson’s residence, which is located in the Western District of Arkansas. During the search of his residence, officers located and seized a loaded Mossberg 12-guage shotgun and several shotgun shells. Gibson was taken into custody without incident.
Gibson was indicted by a federal grand jury in November 2019, and entered a guilty plea in February of 2020.
This case was prosecuted as 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.
This case was investigated by the Ashley County Sheriff’s Office, Arkansas State Probation and Parole Office and the Bureau of Alcohol, Fire, Tobacco, and Explosives (ATF). Assistant United States Attorney Bryan Achorn prosecuted the case for the United States.
Carnegie Man Found Guilty of Premeditated Murder in Indian CountryRead the Press Release
OKLAHOMA CITY – Today, a federal jury convicted ISAIAH WHITEFOX REDBIRD, 34, of Carnegie, Oklahoma, of premeditated murder and assault causing serious bodily injury, announced U.S. Attorney Timothy J. Downing.
According to facts presented at trial, Redbird bore a grudge against Byron "Subee" Tongkeamah, Jr., and his girlfriend, Kayleigh Roughface, who, at the time, were homeless Indian residents of Carnegie. On the night of September 11, 2018, Redbird entered an enclosed porch of an abandoned house where Tongkeamah Jr. and Roughface had taken refuge. He approached them where they were in bed on a foam mattress on the floor and struck each of them multiple times on the head with the crowbar. Tongkeamah Jr. died from multiple blunt force trauma injuries to his skull, which was shattered by the blows. Redbird fled the scene, buried the crowbar in the mud of the Washita River, burned and buried his clothes, and fled to Arizona. Roughface survived, despite losing all memory of the night of the attack.
On the morning of September 12, 2018, Carnegie police discovered the disoriented Roughface, walking down the street in Carnegie. She was covered with dried blood and had massive trauma, including a fractured skull, a fractured eye socket, a broken arm, and a broken finger. Soon after that, officers discovered the body of Tongkeamah Jr. in the enclosed porch.
Audio-recordings of Redbird’s phone conversations revealed that he believed he had a duty to execute Tongkeamah Jr. and Roughface based on rumors he had heard about them. Multiple tribal members testified against Redbird. At trial, Redbird claimed there had been an altercation in the carport, and he acted in self-defense.
The federal government has jurisdiction over the offense because Redbird is a Kiowa Indian, and the offense occurred in Indian country.
After deliberating for two days, the federal jury returned a guilty verdict, convicting Redbird of premeditated murder of Tongkeamah and assault causing serious bodily injury of Roughface.
At sentencing, which will be set by the Court in approximately three months, Redbird will receive mandatory life in federal prison without parole.
This case is a result of an investigation by the Bureau of Indian Affairs, the Federal Bureau of Investigation, the Carnegie Police Department, and the Oklahoma State Bureau of Investigation. The Regional Organized Crime Information Center and the Kiowa Tribe provided logistical assistance. Assistant U.S. Attorneys Brandon Hale and Mark Stoneman are prosecuting the case.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Camden County Man Charged with Possession with Intent to Distribute Powder and Crack CocaineRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man made his initial court appearance today on charges of possessing with intent to distribute cocaine, U.S. Attorney Craig Carpenito announced.
Joseph C. Long, 30, of Bellmawr, New Jersey, was charged by complaint with two counts of possession with intent to distribute cocaine. The defendant was previously arrested by state authorities. He appeared by videoconference today before U.S. Magistrate Judge Joel Schneider and was detained without bail.
According to documents filed in this case and statements made in court:
On Jan. 15, 2020, law enforcement officers executed a search warrant at Long’s apartment. Long was seen jumping out of the second-floor bedroom window and was later apprehended. Inside the apartment, officers found powder cocaine, crack cocaine, packaging and distribution related items, and over $3,400 in cash.
Each drug charge carries a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Department, under the direction of Sheriff Gilbert L. “Whip” Wilson; and the Bellmawr Police Department, under the direction of Chief William P. Walsh; with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg in Camden.
The charges and allegations in the complaint are merely accusations, and the defendants is presumed innocent unless and until proven guilty.
California Couple Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California couple was sentenced today for conspiracy charges in connection with securing the fraudulent admission of their daughter to the University of Southern California (USC) as a purported athletic recruit.
Diane Blake, 55, of Ross, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to six weeks in prison, two years of supervised release during which time she must complete 100 hours of community service and ordered to pay a fine of $125,000. In July 2020, Diane Blake pleaded guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud.
Todd Blake, 55, also of Ross, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to four months in prison, two years of supervised release during which time he must complete 100 hours of community service and ordered to pay a fine of $125,000. Todd Blake pleaded guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud and one count of conspiracy to commit money laundering.
Beginning in 2017, the Blakes conspired with William “Rick” Singer and others to facilitate their daughter’s admission to USC as a purported volleyball recruit. Specifically, Singer had an athletic profile of their daughter created and sent to the USC athletic admissions committee, through co-conspirator Donna Heinel, then a USC athletics administrator. As a result, their daughter was allocated an athlete admission spot even though she was not actually recruited and did not play on the USC women’s volleyball team. The Blakes paid $50,000 to USC women’s athletics and $200,000 to Singer’s non-profit charity, The Key Worldwide Foundation, as a quid pro quo for the admission spot. The Blakes concealed this deal from USC personnel.
Diane and Todd Blake are the 24th and 25th parents to be sentenced in the college admissions case.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Buffalo Man Arrested, Charged with Production and Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Segundo Reascos-Rodriguez, 40, of Buffalo, NY, was arrested and charged by criminal complaint with production and receipt of child pornography. The charges carry a minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Special Assistant U.S. Attorney Jeffrey T. Fiut, who is handling the case, stated that according to the criminal complaint, the defendant met and exchanged phone numbers with a nine-year old minor female victim on the social media application LiveMe. On March 27, 2020, Reascos-Rodriguez and the minor victim engaged in a text message conversation during which the defendant requested and received two sexually explicit images of the minor victim. On November 2, 2020, Homeland Security Investigations executed a federal search warrant at Reascos-Rodriguez’s residence.
The defendant made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy, and is being held pending a detention hearing on November 18, 2020.
The criminal complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Bergen County Man Sentenced to 63 Months in Prison for Possessing with Intent to Distribute over 50 Grams of MethamphetamineRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 63 months in prison for possessing with intent to distribute over 50 grams of methamphetamine, U.S. Attorney Craig Carpenito announced.
Jeff DelaCruz, 38, of North Arlington, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of possessing with intent to distribute more than 50 grams of methamphetamine. Judge Cecchi imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On May 22, 2019, DelaCruz sold two “8-balls” (approximately 7 grams) of methamphetamine to an individual for approximately $350 in cash. Law enforcement agents observed DelaCruz leave his residence and meet with the individual to complete the sale. On June 3, 2019, DelaCruz agreed to sell three ounces of methamphetamine to an individual for approximately $3,000 in cash. On June 5, 2019, the special agents and officers of the U.S. Drug Enforcement Administration executed a search warrant at DelaCruz’ residence, where they recovered approximately 140 grams of methamphetamine.
In addition to the prison term, Judge Cecchi sentenced DelaCruz to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorney Patricia Astorga of the U.S. Attorney’s Office’ Opioids Unit in Newark.
Bartlett Man Indicted for Distributing Fentanyl Resulting in Fatal OverdoseRead the Press Release
Memphis, TN – Christopher Pipken, 39, has been indicted for possession with intent to distribute heroin, fentanyl, and methamphetamine; and distribution of methamphetamine and fentanyl resulting in death. D. Michael Dunavant, U.S. Attorney announced the indictment today.
According to the indictment, in late August of 2019, the victim was found deceased at a house in Bartlett, apparently the result of an overdose. On November 12, 2020, a federal grand jury charged Pipken with distributing the drugs that led to the death of the victim. In addition, Pipken was charged with three other separate distributions of heroin, fentanyl, and methamphetamine.
If convicted for the drug distribution counts, Pipken faces a potential sentence of up to 20 years in prison. If convicted for the distribution count resulting in death, Pipken faces a mandatory minimum sentence of 20 years and up to life imprisonment. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "The U.S. Attorney’s Office has developed a district-specific strategy to prioritize and aggressively prosecute cases involving heroin and fentanyl distribution causing overdose deaths, and this indictment demonstrates that commitment to address the opioid epidemic in West Tennessee. We commend the outstanding investigative work of our law enforcement partners at the FBI and the Bartlett Police Department in this important case."
The Federal Bureau of Investigation (FBI) and the Bartlett Police Department investigated this case.
Special Assistant U.S. Attorney Joseph Griffith is prosecuting the case on behalf of the government. This case is part of the Heroin Initiative in collaboration with the Shelby County District Attorney’s Office.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
###
Baltimore Armed Career Criminal Pleads Guilty in Federal Court to Distributing Heroin, Fentanyl, Cocaine, and Crack CocaineRead the Press Release
Baltimore, Maryland – Cephus Albert Powell, age 54, of Baltimore, pleaded guilty today to being a felon in possession of a firearm and to possession with intent to distribute controlled substances.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; 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.
United States Attorney Robert K. Hur stated, “All too often, guns and drugs go hand in hand—and both are killers, especially fentanyl. We are committed to getting both off of our streets and to reducing violent crime in our neighborhoods. If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
“Guns and drugs take far too many lives in our communities, and Cephus Powell was contributing to the devastating impact of both in Baltimore City,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “We will continue to work with our law enforcement partners to disrupt and dismantle criminal drug operations.”
According to his guilty plea, in April 2019, law enforcement officers were investigating drug trafficking activity in the 1400 block of Mosher Street and installed a covert camera to monitor the area. Between April 23 and April 29, 2019, law enforcement observed Powell conduct suspected hand-to-hand drug transactions in this area. Powell followed the same basic pattern each day: He arrived to the location in the morning using a ride service, then placed a white bag inside the first-floor window of a vacant rowhouse at 1417 W. Mosher Street. Powell conducted what investigators believed were hand-to-hand drug transactions using a large white Styrofoam cup to store the suspected narcotics.
As detailed in his plea agreement, on April 30, 2019, law enforcement officers were watching the covert camera and saw Powell engage in what they believed to be a hand-to-hand drug transaction. At approximately 7:20 a.m., moments after they observed the suspected drug transaction, law enforcement officers located and detained Powell, retrieving his Styrofoam cup, which he had placed in a nearby trash can. Inside the cup, investigators seized 23 red and clear gelcaps, each containing a mixture of heroin and fentanyl; 20 clear top vials each containing crack cocaine; and 13 green top vials containing cocaine. Powell also had $2,161 in cash on his person. Investigators then looked inside the window of the vacant rowhouse at 1417 W. Mosher Street and retrieved a white bag. Inside the bag was a .40-caliber handgun, loaded with seven live rounds; 230 red and white gelcaps containing a mixture of heroin and fentanyl; two knotted plastic bags each containing crack cocaine; 46 clear top vials each containing crack cocaine; 20 green top vials each containing cocaine; and a digital scale.
Subsequent DNA analysis conducted pursuant to a federal search warrant confirmed that the handgun contained Powell’s DNA. A review of the video footage from the covert camera revealed that at approximately 6:45 a.m. Powell had opened the front window at 1417 W. Mosher Street and placed a white bag inside.
In total, law enforcement recovered approximately 96 grams of a mixture of heroin and fentanyl; 20 grams of crack cocaine; and three grams of cocaine. Powell admitted that he possessed the drugs with the intent to distribute them. Powell further admitted that he had a previous felony conviction which he knew prohibited him from possessing a firearm or ammunition.
Powell and the government have agreed that, if the Court accepts the plea agreement, Powell will be sentenced to 15 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for January 14, 2021, at 1:00 p.m.
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. 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.
United States Attorney Robert K. Hur commended the FBI Strike Force Group, the FBI Safe Streets Task Force, the DEA, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Anatoly Smolkin, who is prosecuting the case.
# # #
16 November 2020
York County Man Sentenced to Fifteen Years for Producing Child Pornography and Impersonating A Deputy U.S. MarshalRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Bryan Snow, age 28, of Manchester, Pennsylvania, was sentenced on November 12, 2020 to 15 years’ imprisonment, to be followed by fifteen years of supervised release, by Chief U.S. District Court Judge John E. Jones III, for producing child pornography and impersonating a Deputy U.S. Marshal.
According to United States Attorney David J. Freed, Snow previously admitted that from January 2017 through February 2018, he impersonated a Deputy U.S. Marshal and claimed he was recruiting and training new employees for the U.S. Marshals Service. Snow further admitted that in connection with those efforts, he enticed a minor to produce a sexually explicit image in February 2018.
The case was investigated by the Federal Bureau of Investigation, the U.S. Marshals Service, and the Northern York County Regional Police Department. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
# # #
United States Attorney D. Michael Dunavant Launches Public Service Announcements on Violent Crime, Elder Fraud, and OpioidsRead the Press Release
Memphis, TN – Today, United States Attorney D. Michael Dunavant is launching three Public Service Announcements (PSAs) to raise awareness and increase reporting about the Department of Justice priority areas of violent crime, elder fraud, and opioids. The campaign employs targeted messaging to educate and inform the public with a series of public service announcements (PSAs) that will run on television, radio, social media and streaming platforms urging individuals to rethink committing violent crimes that could be federal offenses, and to guard against becoming victims of elder fraud or opioid abuse or overdose. The PSAs can be found at the links below to 30 and 60-second YouTube videos.
U.S. Attorney Dunavant said: "These PSAs are a proactive way for our office to provide education, deterrence, harm reduction, cooperation with law enforcement, community outreach, and federal assistance resources to citizens in West Tennessee. All federal crimes are important to our office, but these three priority areas of violent crime, elder fraud, and opioids are having an immediate and significant impact on our communities, and we have designed these PSAs to make it easier for victims to find resources and report crimes."
The first PSA is aimed at discouraging violent crime, specifically robbery and gun crimes, through our Project Safe Neighborhoods initiative. It warns potential offenders of the legal consequences of committing a federal gun crime: "Put the guns down and turn your life around, because if my office can prosecute you, we will." The PSA also encourages members of the community to report criminal activity in their neighborhoods to law enforcement: "If you see something and say something, we WILL do something."
PSN 30: https://youtu.be/fUeO1VI0WdQ
PSN 60: https://youtu.be/zemHXkKyitE
The second PSA focuses on the growing problem of Elder Fraud and Financial Exploitation. Earlier this year, Attorney General William Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate service. The online link to the hotline is: https://stopelderfraud.ovc.ojp.gov/. This Elder Fraud PSA warns potential victims and their loved ones about the types of scams targeting older Americans for financial fraud and theft, and encourages them to take action by reporting suspicious activity to the FBI: "Don’t let a scammer cheat you or your loved ones out of money or your peace of mind."
Elder Abuse 30: https://youtu.be/uMS73NKuRxs
Elder Abuse 60: https://youtu.be/t4AtXQzVZ9s
The third and final PSA targets the dangers of Prescription Opioid abuse and misuse. Drug overdose deaths and opioid-involved deaths continue to increase in the United States. Deaths from drug overdoses are up among both men and women, all races, and adults of nearly all ages, with more than three out of five drug overdose deaths involving an opioid. This PSA warns of the addictive and deadly dangers of opioid abuse: "Abusing prescriptions and buying pills on the street is gambling with your life. Your first one may be your last." It also encourages everyone to properly lock away prescriptions, safely dispose of unused and expired medications, and provides contact information about help available to those struggling with addiction: "You might just save a life."
Opioids 30: https://youtu.be/I2Bz4UT6pN4
Opioids 60: https://youtu.be/-Jjrgo6rFLU
Follow us:
Twitter: https://twitter.com/WDTNNews
https://twitter.com/USAttyDunavant
Facebook: https://www.facebook.com/US-Attorneys-Office-for-the-Western-District-of-Tennessee-587541148258646
WDTN Webpage: https://www.justice.gov/usao-wdtn
###
Undercover Operation Named for 7 Year-Old Kentucky Victim Nets Multiple Child PredatorsRead the Press Release
LOUISVILLE, Ky. –The United States Secret Service, United States Attorney Russell Coleman, Kentucky Attorney General Daniel Cameron, and the leadership of other Internet Crimes Against Children Task Force agencies announced the culmination of “Operation Gabbi Doolin” today. This joint federal, state, and local operation was aimed at exposing child predators in Kentucky communities.
The investigations, which were conducted in Elizabethtown and Louisville, Kentucky, resulted in multiple state and federal arrests. In addition to the arrests, multiple investigative leads were developed that continue to assist law enforcement with the apprehension of child predators.
This operation was named in honor of Gabbi Doolin, a 7-year old child from Scottsville, Kentucky, who was kidnapped and murdered from her brother’s youth football game in Allen County in 2015.
“Kentucky law enforcement has no more important mission than to protect our kids,” said U.S. Attorney Russell Coleman. “And we can conceive of no more meaningful way honor to Gabbi Doolin and her family than to work together, federal, state, and local, in an operation in her name to remove predators from our Commonwealth. More to come.”
“The local, state, and federal law enforcement agencies that carried out this joint operation are committed to stopping child predators so that no family has to endure the incredible loss the Doolin family has felt these last five years,” said Attorney General Cameron. “We share a goal to find child predators and remove them from communities before they act. Every arrest that we make stops a potential criminal act against a child, and we will continue to do everything in our power to leverage our resources and work together to protect Kentucky’s children.”
“The United States Secret Service remains steadfastly committed to our role in bringing the fullest weight of the law enforcement community at every level to the fight against child predators online,” said Special Agent in Charge of the Louisville field office Robert Holman. “While the dark corners of the internet might seem like a good place to hide within, today’s announcement serves as a powerful reminder that trained investigators across the interagency can and will identify these especially vile criminals, and ensure they are brought to justice.”
Seven individuals have been charged with federal offenses, they include:
- Charles Ashley, 66, of Adolphus, Kentucky has been charged with the attempted enticement of a minor, attempted transfer of obscene matter to a minor, and attempted production of child pornography. He faces not less than 10 years for the enticement charge, not less than 15 years for the attempted production charge and not more than 10 years for attempted transfer of obscene matter to a minor. The maximum potential sentence is life in prison.
- Jimmy Kwizera, 22, of Louisville, Kentucky, has pleaded guilty to transfer of obscene material to a minor. He faces not more than 10 years in federal prison at sentencing which has been scheduled for December 10, 2020.
- Melvin Dowell, 54, of Rineyville, Kentucky, pleaded guilty to attempted enticement and transfer of obscene material to a minor. He faces a mandatory minimum 10 year prison sentence. The maximum potential sentence is life in prison. Sentencing is scheduled for February 1, 2020.
- Joseph Zakhari, 33, of Louisville, Kentucky, has been charged in a Superseding Indictment with attempted online enticement of a minor, attempted transfer of obscene matter to a minor, and attempted production of child pornography. He faces not less than 10 years for the enticement charge, not less than 15 years for the attempted production charge and not more than 10 years for attempted transfer of obscene matter to a minor. The maximum potential sentence is life in prison.
- Jeffrie Corn, 25, of Louisville, Kentucky, has been charged with attempted enticement of a minor and attempted transfer of obscene matter to a minor. He faces not less than 10 years for the enticement charge and not more than 10 years for attempted transfer of obscene matter to a minor. The maximum potential sentence is life in prison.
- Travis Puckett, 23, of Elizabethtown, Kentucky, has been charged with attempted enticement of a minor, attempted transfer of obscene matter to a minor. He faces not less than 10 years for the enticement charge and not more than 10 years for attempted transfer of obscene matter to a minor. The maximum potential sentence is life in prison. Puckett is scheduled to plead guilty on November 23, 2020.
- Eric Vanhandle, 54, Louisville, Kentucky, has been charged with attempted enticement of a minor. He faces not less than 10 years in prison for the charge. The maximum potential sentence is life in prison.
These cases are being prosecuted by Assistant United States Attorney Jo Lawless. Agencies investigating these cases include: United States Secret Service, United States Marshals Service, Bureau of Alcohol Tobacco Firearms and Explosives, Kentucky Office of the Attorney General Department of Criminal Investigations, Kentucky State Police, Louisville Metro Police Department, Owensboro Police Department, and Elizabethtown Police Department. The National Center for Missing and Exploited Children (NCMEC), supported the law enforcement efforts.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
####
- Charles Ashley, 66, of Adolphus, Kentucky has been charged with the attempted enticement of a minor, attempted transfer of obscene matter to a minor, and attempted production of child pornography. He faces not less than 10 years for the enticement charge, not less than 15 years for the attempted production charge and not more than 10 years for attempted transfer of obscene matter to a minor. The maximum potential sentence is life in prison.
U.S. Attorney Wrigley Announces the Arrest of a Grand Forks, ND, Man for a Felon Illegally in Possession of a FirearmRead the Press Release
Fargo - United States Attorney Drew Wrigley announced that a federal grand jury has indicted Aaron Kenneth Smith, age 30, Grand Forks, ND, for being a felon illegally in possession of a firearm, a violation of 18 USC 922(g)(1) and 924(a)(2). Smith had an active arrest warrant and was being stopped for a city ordinance violation, when he allegedly resisted arrest, fought with a Grand Forks Police Officer and attempted to retrieve something from his own front pants pocket. Grand Forks Officers were able to subdue Smith and discovered a handgun and two loaded magazines in the pocket Smith’s front pants pocket. Smith has several prior felony/domestic violence convictions in North Dakota and Minnesota, legally precluding him from possessing a firearm.
"The defendant’s prior convictions for violent offenses in North Dakota and Minnesota elevate this to a priority matter as we continue our anti-violence efforts," said US Attorney Drew Wrigley, "thankfully the bravery and professionalism of these officers carried the day."
Grand Jury Indictments are allegations and are not evidence of guilt. The defendant is presumed innocent unless and until he is proven guilty beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Indian Affairs (BIA), Bureau of Alcohol Tobacco and Firearms (ATF), and Grand Forks Police Department, and is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Richard Lee assigned to the case.
######
U.S. Attorney Mike Hurst Appoints New Civil Division Chief in United States Attorney’s Office for Southern District of MississippiRead the Press Release
Jackson, Miss. – United States Attorney Mike Hurst announced today that Assistant U.S. Attorney Angela Givens Williams will serve as the new Chief of the Civil Division in the U.S. Attorney’s Office for the Southern District of Mississippi. The change comes in the wake of the departure of former Civil Division Chief Marc Perez, who accepted a position as the Investigative Counsel for the Office of Inspector General of the Environmental Protection Agency in Seattle, Washington.
“Angela has long been a respected leader in our office, and I am excited that she has accepted this new challenge of leading this important division in our office. Angela is well-respected by her peers locally and nationally, and her experience, intellect, and work ethic will be invaluable in leading our Civil Division to new heights. I also want to thank former Civil Chief Marc Perez for his service to this office, his fortitude in always striving for justice, and his hard work in making our Civil Division and our office better than he found it,” said U.S. Attorney Hurst.
Ms. Williams received her undergraduate degree from Tougaloo College and graduated with honors from the George Washington University School of Law in 2000. After graduating from law school, Ms. Williams served as a law clerk for Judge Eric Clay of the U.S. Court of Appeals for the Sixth Circuit, and later for U.S. District Judge Henry T. Wingate of the Southern District of Mississippi. In 2002, she began work for the law firm Arnold and Porter in Washington D.C., where she remained for 4 years before returning to Mississippi and joining the U.S. Attorney’s Office’s Civil Division in 2006 as an Assistant U.S. Attorney.
As an Assistant U.S. Attorney in the Civil Division, Ms. Williams has handled many large and complex affirmative and defensive cases on behalf of the United States. Since February 2016, she has served as the Civil Division’s Senior Litigation Counsel, and has also served as the Ethics Advisor for the office. In 2018, Ms. Williams received the Robert E. Hauberg Award for Distinguished Public Service, named in honor of the achievements of former U.S. Attorney for the Southern District of Mississippi Robert E. Hauberg, the longest serving United States Attorney in the history of our nation. The Award is given annually to an employee who has displayed superior achievement in their assigned duties and who has gone above and beyond the call of duty in some additional public service that makes a significant impact on the community.
The United States Attorney is the Chief Federal Law Enforcement Officer for the United States within his or her particular jurisdiction. There are 93 United States Attorneys stationed throughout the United States, Puerto Rico, the Virgin Islands, Guam, and the Northern Mariana Islands. United States Attorneys are appointed by, and serve at the discretion of, the President of the United States, with advice and consent of the United States Senate. United States Attorneys have three statutory responsibilities: (1) the prosecution of criminal cases brought by the Federal government; (2) the prosecution and defense of civil cases in which the United States is a party; and (3) the collection of debts owed the Federal government which are administratively uncollectible. The Southern District of Mississippi encompasses the lower 45 counties of the State of Mississippi and covers approximately 2 million Mississippians.
Two Plead Guilty to Federal Drug ChargesRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced today that two men pled guilty to federal drug charges before United States District Judge Robert C. Chambers.
“Operation S.O.S. has been a huge success,” said United States Attorney Mike Stuart. “We continue to hold opioid dealers accountable for the harm they inflicted on the Huntington community.”
Matthew Thomas, also known as “Rico Dolla,” and “PJ,” 29, of Huntington, pled guilty to an indictment charging him with three counts of distributing heroin and one count of possession with intent to distribute heroin and cocaine base. Thomas admitted that in May and June 2019 he sold heroin on three occasions to a confidential informant in Huntington. Thomas also admitted that on June 19, 2019, officers with the Huntington Police Department searched his residence and found approximately 30 grams of heroin and 8 grams of cocaine base. Officers also found a drug press. Thomas admitted he intended to sell the heroin and cocaine base. Thomas faces up to twenty years in federal prison on each charge when he is sentenced on February 16, 2021. The Huntington Police Department conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
Emmanuel Lee Whitfield, 25, of South Point, Ohio, pled guilty to one count of distribution of heroin. On March 7, 2019, law enforcement utilized a confidential informant to arrange a controlled buy of 5 grams of heroin from Whitfield. The purchase occurred near 5 Washington Court in Huntington. Whitfield faces a maximum of 20 years in prison when he is sentenced on February 22, 2021. The Huntington Police Department and the Violent Crime and Drug Task Force West conducted the investigation. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
These cases were prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 3:20-cr-00137 (Thomas) and 3:20-cr-00107 (Whitfield).
Follow us on Twitter: SDWVNews and USAttyStuart
###
Two Men Sentenced to Federal Prison as a Result of Investigation into Drug Trafficking Organization in Ville Platte, LouisianaRead the Press Release
LAFAYETTE, La. – Two men were sentenced today in United States District Court after an investigation into drug trafficking activities in the Ville Platte area, Acting United States Attorney Alexander C. Van Hook announced. Judge Robert R. Summerhays sentenced the two defendants as follows:
John Kirk Ortego, a/k/a “Kirk,” 52, of Ville Platte, Louisiana, was sentenced to 57 months (4 years, 9 months) in prison followed by 5 years of supervised release for conspiracy to distribute and possess with intent to distribute methamphetamine.
Jared Reed, a/k/a “J-Rat,” 40, of Ville Platte, Louisiana, and a co-defendant of Ortego, was sentenced to 42 months (3 years, 6 months) in prison followed by 4 years of supervised release for conspiracy to distribute and possess with intent to distribute methamphetamine.
Ortego and Reed are co-defendants in this case. Ortego pled guilty to the charge on January 22, 2020 and Reed pled guilty on February 14, 2020. Evidence introduced in court revealed that from January through June 2019, Ortego and Reed each purchased methamphetamine from one of their co-defendants in this case. Reed arranged the purchases using his cell phone. Both Ortego and Reed purchased the methamphetamine so that they could resell it for profit.
This prosecution is part of a larger investigation conducted by the Drug Enforcement Administration through its Southwest Louisiana HIDTA Task Force and Organized Crime and Drug Enforcement Task Forces. The Louisiana State Police Narcotics Division initiated the investigation, and Special Agents with DEA, as well as Task Force Officers assigned to the Southwest Louisiana HIDTA Task Force, completed the investigation. In addition to the above conviction and sentence, the investigation resulted in the dismantling of a drug trafficking organization in Ville Platte, Louisiana. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
# # #
Tucson Tax Return Preparer Sentenced to Prison for Role in Obtaining Fraudulent RefundsRead the Press Release
TUCSON, Ariz. – Last week, Adan Ramirez, 37, of Tucson, Arizona, was sentenced by U.S. District Judge Rosemary Marquez to six months in prison and ordered to pay $100,479 in restitution to the Internal Revenue Service (IRS).
Ramirez previously pleaded guilty to aiding and assisting the preparation of false tax returns. Ramirez presented fraudulent claims for wages, withholdings, dependents, Earned Income Credits (EIC), and Additional Child Tax Credits (ACTC) to obtain tax refunds.
The IRS Criminal Investigation division conducted the investigation in this case. The Financial Crimes Unit of the U.S. Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
Ramirez Indictment
CASE NUMBER: CR-19-01532
RELEASE NUMBER: 2020-102_Ramirez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Tucson Banker Sentenced to 40 Months in Prison for Defrauding 82-Year-Old CustomerRead the Press Release
TUCSON, Ariz. – On Friday, Jacob Roach, 38, was sentenced by U.S. District Court Judge Jennifer G. Zipps to 40 months in prison for using his position with a bank to defraud an 82-year old victim. Roach was also ordered to pay $1.25 million in restitution.
Roach was employed as a business relationship banker for a large bank in the Tucson area, where he fraudulently created a bank account in the victim’s name, and thereafter embezzled $1.25 million for his own use. Roach resigned from his position before the bank discovered the scheme.
Homeland Security Investigations, Tucson HIDTA Financial Task Force, conducted the investigation in this case. Assistant U.S. Attorney Wallace Kleindienst, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR19-1332-JGZ-BGM
RELEASE NUMBER: 2020-101_Roach# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Troy Man Sentenced to 125 Months for Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Jake Alexander Cruse, age 33, of Troy, New York, was sentenced today to serve 125 months in prison for distributing, transporting and receiving child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Cruse pled guilty on March 10, 2020. As part of his guilty plea, Cruse admitted that, between July and October 2018, he used phone-based messaging and file-sharing applications to trade child pornography with others. Cruse admitted to creating multiple fake social media accounts for the purposes of making money selling child pornography and trading for additional child pornography files. Cruse’s phone and various online accounts contained approximately 120 video files and 234 image files depicting the sexual exploitation of children.
United States District Judge Mae A. D’Agostino also sentenced Cruse to a 15-year term of supervised release, to begin following his term of imprisonment, and ordered him to pay $3,000 in restitution to one of the victims depicted in the materials he possessed. Cruse will also be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI’s Child Exploitation Task Force, with assistance from the New York State Police, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Tribal Law Enforcement Expert Hired to Coordinate Missing and Murdered Indigenous Persons Program in WashingtonRead the Press Release
Spokane- U.S. Attorneys William D. Hyslop and Brian T. Moran are pleased to announce the selection of David J. Rogers to serve as the program coordinator of the Missing and Murdered Indigenous Person program for the Department of Justice and the U.S. Attorney’s Offices in Washington State. David Rogers has an extensive career in law enforcement as a Police Chief, consultant, trainer, lecturer, and educator.
“I am so pleased to have David fill this important role, moving our state forward in investigations of missing persons cases involving our tribal communities,” said U.S. Attorney Moran. “As an enrolled member of the Nez Perce Tribe, with deep experience and contacts in Pacific Northwest tribal communities, he is ideally qualified to work with our tribal partners to increase safety and security in Indian Country.”
“The problem of missing persons and murders occurring within our tribal nations in Washington State and in other parts of the Country is real,” said U.S. Attorney Hyslop. “David Rogers has broad experience in Tribal law enforcement. He will be working exclusively on the issue of missing and murdered indigenous persons. I expect him to have frequent contact with Tribal leaders, law enforcement officers, and victim/witnesses within Indian Country in the State of Washington as we all work together to address this problem.”
For the past four years, David Rogers has run his own consulting firm, Tribal Public Safety Innovations LLC, involved in the training of tribal police and probation officers across the country. From 2013 to 2016, Chief Rogers served as Chief of Police for the Nez Perce Tribal Police in Lapwai, Idaho. As Tribal Police Chief, he was responsible for a 24-person department covering a 1,200 square-mile-area of jurisdiction. From 2003-2013, Chief Rogers was the Tribal Public Safety Manager at the Criminal Justice Center for Innovation at the National Criminal Justice Training Center in Wisconsin. In that role he developed and implemented training for law enforcement officers in tribal police forces across the country and served as Director of the National Indian Youth Police Academy introducing Native American youth to careers in the Criminal Justice field.
Prior to his position with the Criminal Justice Center for Innovation, Chief Rogers served as a program manager at the Western Community Policing Institute at Western Oregon University. While there, he was a key trainer on U.S. Department of Justice Community Oriented Policing programs for more than 200 tribal communities across the country. Early in his law enforcement career, Chief Rogers served on police forces in Clark County, Washington; Multnomah County, Oregon; Latah County, Idaho; and Columbia River Inter-Tribal Enforcement, Hood River, Oregon.
U.S. Attorney William Barr announced the Murdered and Missing Indigenous Person Initiative in November 2019, and the Western and Eastern Districts of Washington joined forces to hire a coordinator who could lead the initiative in all 29 tribal communities in Washington. As the MMIP coordinator, Chief Rogers will work closely with federal, tribal, state, and local agencies to develop common protocols and procedure for responding to reports of missing or murdered indigenous people. Chief Rogers will work closely with the Tribal Liaisons in both the Western and Eastern Districts of Washington, as well as state and local partners, working on the issue of missing and murdered indigenous persons.
Press contact for the U.S. Attorney’s Office Eastern District of Washington is Public Information Officer George J.C. Jacobs, III at (509) 353-2767.
Tri-Cities Man Extradited from Kazakhstan to the Eastern District of Washington in Order to Face Child Pornography ChargesRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Trent Drexel Howard, 49, of West Richland, Washington, made his initial appearance today in federal court following his extradition from Kazakhstan.
On June 18, 2019, a federal grand jury in Eastern Washington returned a four-count indictment charging Howard with distribution, receipt, attempted production, and possession of child pornography. A warrant was then issued for Howard’s arrest. On January 7, 2020, the grand jury returned a 15-count superseding indictment, adding additional charges of production and attempted production of child pornography involving 12 minor victims.
According to court documents, Howard was working in Kazakhstan when federal agents executed a search warrant at his residence in the United States and seized several electronic devices. Court documents further indicate that, after learning of the investigation, Howard stayed in Kazakhstan and was eventually arrested by Kazakhstan authorities on September 12, 2019. A Kazakh judge ordered Howard be detained pending an extradition request from the United States. According to the Department of Justice’s Office of International Affairs, Howard’s removal from Kazakhstan is the first extradition from that country by the United States.
United States Attorney Hyslop said, “The United States Attorney’s Office for the Eastern District of Washington is grateful to the Kazakhstan authorities for their assistance in bringing Howard back to the United States to face these charges. Likewise, the Justice Department’s Office of International Affairs provided significant assistance in securing defendant Howard’s extradition from Kazakhstan, as did State Department partners.”
Earl Camp, Acting FBI Special Agent in Charge, Seattle Field Office, said, “Thanks to our strong international partnerships, Mr. Howard will now face justice for allegedly exploiting multiple children. This case is an example of how the FBI will pursue justice beyond American borders and safeguard vulnerable members of our community.”
The crimes Howard is alleged to have committed are punishable by varying terms of imprisonment, including a mandatory minimum term of 15 years, a $250,000 fine for each count, and up to a life term of supervised release following any prison sentence.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc
For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case is being investigated by the Federal Bureau of Investigation’s Seattle Division, Tri-Cities Resident Agency, and the Southeast Regional Internet Crimes Against Children Task Force, with the assistance of the West Richland Police Department, and is being prosecuted by Ann Wick, an Assistant United States Attorney for the Eastern District of Washington.
howard_superseding_indictment.pdfTodd County Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Todd County, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on November 12, 2020, by U.S. Magistrate Judge Mark A. Moreno.
Tyler Reagle, age 37, was sentenced to two years of probation and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Reagle was indicted by a federal grand jury on January 22, 2020. He pled guilty on November 12, 2020.
The conviction stemmed from an incident that occurred on January 28, 2020, in Todd County, wherein Reagle assaulted his domestic partner.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Todd County Sheriff’s Office. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
The China Initiative: Year-in-Review (2019-20)Read the Press Release
On the two-year anniversary of the Attorney General’s China Initiative, the Department continues its significant focus on the Initiative’s goals and announced substantial progress during the past year in disrupting and deterring the wide range of national security threats posed by the policies and practices of the People’s Republic of China (PRC) government.
"In the last year, the Department has made incredible strides in countering the systemic efforts by the PRC to enhance its economic and military strength at America’s expense," said Attorney General William P. Barr. "While much work remains to be done, the Department is committed to holding to account those who would steal, or otherwise illicitly obtain, the U.S. intellectual capital that will propel the future."
"The Chinese Communist Party’s theft of sensitive information and technology isn't a rumor or a baseless accusation. It’s very real, and it’s part of a coordinated campaign by the Chinese government, which the China Initiative is helping to disrupt," said FBI Director Christopher Wray. "The FBI opens a new China-related counterintelligence case nearly every 10 hours and we’ll continue our aggressive efforts to counter China’s criminal activity."
Established in November 2018, the Initiative identified a number of goals for the Department, ranging from increased focus on the investigation and prosecution of trade secret theft and economic espionage, to better countering threats posed by Chinese foreign investment and supply chain vulnerabilities.
Prioritize investigations of economic espionage and trade secret theft
The Initiative prioritizes use of the Department’s core tool, criminal investigation and prosecution, to counter economic espionage and other forms of trade secret theft. In the past year, the Department charged three economic espionage cases (in which the trade secret theft was intended to benefit the Chinese government), bringing the total to five since the China Initiative was first announced. Overall, since the Initiative was announced, we have charged more than 10 cases in which the trade secret theft had some alleged nexus to China, and we obtained guilty pleas of three defendants in those cases over the past year.
To take one example, the Department announced the China Initiative on the same day that it unsealed criminal charges against United Microelectronics (UMC), the Chinese state-owned enterprise Fujian Jinhua, and several individual defendants, for economic espionage that victimized Micron Technology, Inc., a leading U.S. semiconductor company.
"The United Microelectronics case is a glaring example of the PRC’s ‘rob, replicate, and replace’ strategy, in which it robs a U.S. institution of its intellectual capital, replicates the stolen technology, and then endeavors to replace the U.S. institution on the Chinese and then the global market," said John Demers, Assistant Attorney General for National Security. "Thanks to the dedication and diligence of prosecutors and FBI agents, UMC pleaded guilty to criminal trade secret theft and agreed to pay a fine of $60 million, the second largest fine in a trade secret case, and to cooperate in the pending prosecution of its co-defendants."
The National Counterintelligence Task Force, co-led by the FBI, launched its first major campaign in 2020, devoted to protecting U.S. technology and research from the Chinese government and its proxies. This is a further step in the FBI’s and Department’s efforts to enlist all appropriate partners in ensuring integrity in government-funded programs and defeating economic espionage and theft of trade secrets.
Develop an enforcement strategy for non-traditional collectors
At the outset, the Department identified academia as one of our most vulnerable sectors, because its traditions of openness, and the importance of international exchanges to the free flow of ideas, leave it vulnerable to PRC exploitation. The Department has pursued a two-pronged strategy of raising awareness on campuses of the threats posed by China (and the importance of implementing a security program to detect them) and prosecuting researchers who have deliberately deceived authorities about their ties to China, which deprives institutions of the ability to screen for conflicts of interest and commitment, or otherwise exploited their access.
For example, the PRC has used talent programs to encourage the transfer of technical expertise from the United States, and elsewhere in the world, to benefit the PRC’s economic and military development. Talent recruits generally sign contracts with the PRC sponsor-entity that obligate them to produce scientific outputs; to publish the results of their work in the name of the PRC beneficiary; to allow the PRC beneficiary to assert intellectual property rights over their outputs; and to recruit other researchers into the programs, among other obligations.
In exchange, the talent recruits may receive lucrative compensation packages, prestigious titles, and custom-built laboratories.
“While membership in these talent programs is not per se illegal, and the research itself may not always be protected as a trade secret, we know the PRC uses these plans, such as the well-known Thousand Talents Program, as a vehicle to recruit individuals with access to U.S. government-funded research to work in the interest of the Chinese Communist Party,” said Adam S. Hickey, Deputy Assistant Attorney General, National Security Division.
The Initiative brings together resources from across the Department, including the National Security, Criminal, Tax, and the Civil Divisions to address this unique challenge fairly and effectively. In the past year, Department prosecutors have brought fraud, false statements, tax, smuggling and other charges against ten academics affiliated with research institutions across the country. To date, prosecutors have obtained convictions in three of those cases.
This year, the FBI and Department prosecutors also exposed six individuals, studying in the United States, found to be connected to People’s Liberation Army military institutes, who concealed their affiliations from the State Department when applying for research visas to study at U.S. universities. In one of those cases, the Department alleged that a PLA officer was being tasked by superiors in the PRC to obtain information that would benefit PLA operations. In another case, a PLA medical researcher stands accused of following orders to observe lab operations at a U.S. university, which received funding from the U.S. government, in order to replicate those operations in the PRC.
In each of the cases, the defendants are accused of concealing their PLA affiliations in order to obtain visas that allowed them to travel to the United States. After the FBI conducted interviews this summer that led to charges in those cases and the State Department closed the PRC’s Houston Consulate, a large number of undeclared, PLA-affiliated Chinese researchers fled the United States.
Those six examples are just part of the interagency effort to protect academia and taxpayer-funded research. The FBI and Department have been collaborating with federal grant-making agencies, the Joint Committee on the Research Environment, the major academic associations, the Academic Security and Counter Exploitation working group, and other appropriate entities, as well as hundreds of individual universities nationwide.
Counter malicious cyber activity
The Department continues to expose and disrupt efforts by the PRC government to steal our intellectual property and our personally identifiable information (PII) through computer intrusions. During the past year, we charged hackers working for the People’s Liberation Army with the 2017 Equifax intrusion and others associated with the Ministry of State Security (MSS) in relation to global computer intrusion campaigns targeting biomedical companies conducting COVID-19-related research, engineering firms, and software makers. One such MSS case resulted in the arrest of two conspirators in Malaysia. Two of these cases highlighted China’s development into a safe harbor for criminal hackers who also work for the PRC. The Department disrupted these cyber threats in coordination with the private sector, using legal process to seize control of hacking infrastructure while the private sector removed other infrastructure from their platforms.
In May, the FBI, in conjunction with the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, also issued a public announcement to raise awareness of the threat to COVID-19 research by PRC-affiliated cyber actors and offer advice on better protecting that research from thefts.
Counter malign foreign influence
The Department has used the Foreign Agents Registration Act (“FARA”), which requires those acting to influence public policy and opinion on behalf of a foreign individual or entity, to improve transparency and expose China’s foreign influence efforts. Over the past year, the Department opened a record number of FARA investigations overall and doubled the number of new registrants and new foreign principals registering annually as of 2016. That includes obtaining a record number of registrations from Chinese media companies. The Department also notified a registered Chinese media company that its filings were deficient because they failed to fully disclose its activity in the United States and failed to properly label its informational materials. The media entity remedied those deficiencies shortly thereafter.
Through its outreach efforts to universities, the Department has highlighted the need to protect foreign students studying in the United States from coercive efforts by the Communist Party to censor the freedom of thought and expression that all students here should enjoy.
In late 2019, the FBI’s Foreign Influence Task Force formally established a new unit devoted specifically to understanding and defeating the malign foreign influence threat from the Chinese government and its proxies.
Counter foreign intelligence activities
The Department has achieved a number of successes in the last year in countering China’s foreign intelligence activities. China has been targeting former members of the U.S. intelligence community for recruitment, and the Department has been holding accountable individuals who succumb to their efforts. In November 2019, a former CIA case officer was sentenced to 19 years in prison for conspiring to deliver national defense information to the PRC. In August 2020, another former CIA officer who had been tasked by the PRC was arrested on the same charge — the fourth former intelligence officer charged in the last three years for similar conduct.
The Department is particularly focused on disrupting the PRC government from using career networking and social media sites to target Americans, as well as holding those accountable who hide behind fake profiles to co-opt individuals on behalf of the PRC. As one part of this effort, the FBI, in partnership with the National Counterintelligence and Security Center, created an educational film, "The Nevernight Connection," which was released online in September 2020 to educate the public about the Chinese intelligence services’ use of social media to spot and recruit persons of interest, especially current or former security clearance holders.
In March 2020, Xuehua (Edward) Peng was sentenced to 48 months in prison, and ordered to pay a $30,000 fine, for acting as an agent of the PRC’s Ministry of State Security (MSS) in connection with a scheme to conduct pickups known as “dead drops” and transport Secure Digital cards containing classified information from a source in the United States to the MSS operatives in China.
In October 2020, Jun Wei Yeo was sentenced to 14 months in prison for acting within the United States as an agent of the MSS recruiting Americans, including U.S. military and government employees with high-level clearances. Yeo concealed his MSS affiliation from his American targets and used career networking sites and a false consulting firm to lure them to write papers which he ultimately passed to his MSS handlers.
In October 2020, eight defendants were charged with conspiring to act in the United States as illegal agents of the PRC, six of whom also face related charges of conspiring to commit interstate and international stalking. According to the complaint, the defendants participated in an international campaign to threaten, harass, surveil and intimidate a resident of New Jersey and his family in order to force them to return to the PRC as part of an international effort by the PRC government known as "Operation Fox Hunt" and "Operation Skynet."
In furtherance of the operation, the PRC government targets Chinese individuals living in foreign countries that the PRC government alleges have committed crimes under PRC law and seeks to repatriate them to the PRC to face charges, rather than rely upon proper forms of international law enforcement cooperation.
Foreign investment reviews and telecommunications security
Beyond criminal enforcement, the Department worked to protect our national assets from national security risks posed by entities, subject to PRC influence, that seek to invest in U.S. companies or integrate into our supply chains.
In April, the Department assumed the permanent chair of the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector, established by the President through Executive Order (EO), in 2020. This organization, also known as "Team Telecom," is an interagency group that reviews telecommunications, submarine cable landing, wireless, broadcast license, and other applications referred by the Federal Communications Commission (FCC), to identify and address risks to national security and law enforcement. In the first 90 days after the Executive Order, the Department led Team Telecom to resolve more than half of the cases then pending review.
Team Telecom recommended that the FCC revoke and terminate the international telecommunications licenses held by the U.S. subsidiary of a PRC state-owned telecommunications company, China Telecom, the first revocation ever recommended by Team Telecom on national security grounds. Team Telecom also recommended that the FCC partially deny a submarine cable application, to the extent it sought a direct connection between the United States and Hong Kong.
Following the President’s 2019 Executive Order on Securing the Information and Communications Technology and Services Supply Chain, the Department has worked with the Commerce Department to develop regulations implementing the EO and has identified vulnerable areas of critical infrastructure that are ripe for investigation under the EO.
The Department also worked to implement the Foreign Investment Risk Review Modernization Act (FIRRMA), which improved the authorities of the Committee on Foreign Investment in the United States (CFIUS). During the previous year, the Department co-led a record number of significant CFIUS matters, on an annualized basis, including the investigation of the acquisition of a U.S. hotel management software company by a Chinese company, which the President prohibited, for just the sixth time in CFIUS history. Under FIRRMA, the FBI continued to provide analytical assistance to support CFIUS’s decision-making and identify high-risk non-notified transactions.
With its increased resources, NSD has played a significant role in CFIUS enforcement, leading the Committee to assess just the second penalty in its history, for failing to secure sensitive personal data in violation of a 2018 interim CFIUS order. NSD also dedicated personnel to identify transactions of concern that were not voluntarily filed with CFIUS and developed a program to identify bankruptcy cases that could implicate national security concerns. The bankruptcy program helps to protect U.S. assets from predatory acquisitions, including PRC acquisitions that could impact our national security, which is particularly important in light of the economic impact of COVID-19.
Education and outreach
The success of the China Initiative is not measured by criminal cases and administrative actions alone, however. Outreach to businesses and academia is critical to helping America’s national assets better protect themselves. For that reason, the Department disseminated outreach presentations for use by U.S. Attorneys in their Districts, which have been deployed at various events. The FBI sustained its engagement with the private sector through various programs, and it developed and disseminated an innovative Academia Field Guide to support focused outreach by its academic outreach coordinators in all 56 field offices. In the coming year, the Department, through the FBI and U.S. Attorneys’ Offices, will continue to expand our partnerships outside the federal government, because the support of the American people is critical to our success. All of our efforts are on their behalf.
The Attorney General commends the professionals throughout the Department, including those who work at Main Justice, the FBI, and U.S. Attorney’s Offices around the country, who are committed to meeting the goals of the China Initiative and encourage them to redouble their efforts in the upcoming year.
All defendants, in the cases mentioned herein, are presumed innocent until proven guilty beyond a reasonable doubt.
Stratford Man Sentenced to 37 Months in Federal Prison for Distributing Heroin, Possessing Destructive DevicesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JESSE PAPCUN, also known as “Steve,” 32, formerly of Stratford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 37 months of imprisonment, followed by three years of supervised release, for distributing heroin and possessing unregistered destructive devices.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation has included the use of court-authorized wiretaps, controlled purchases of narcotics, physical and video surveillance, and the execution of multiple search and seizure warrants. The investigation revealed that Antonio Small, Evan Sheffield, Louis McDowell, Christopher Rodriguez, Anthony Small and others were distributing large quantities of heroin, fentanyl and crack cocaine. The investigation further revealed that the co-conspirators were using Sheffield’s residence on Poplar Street in Bridgeport to store, process and package narcotics for street sale, and that they kept a firearm at his residence. Papcun regularly received distribution quantities of heroin and fentanyl from Small and others and sold the drug to his own customers.
Papcun was arrested on November 6, 2018. On that date, a search of a safe in Papcun’s residence revealed narcotics, items used to process and package drugs for street sale, and two destructive devices.
On January 9, 2020, Papcun pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, heroin, and one count of possession of an unregistered destructive device.
Papcun, who is released on a $100,000 bond, is required to report to prison on January 7, 2021.
Antonio Small, Sheffield, McDowell, Rodriguez and Anthony Small have pleaded guilty. On October 27, 2020, Judge Thompson sentenced Sheffield to 97 months of imprisonment. Antonio Small, McDowell, Rodriguez and Anthony Small await sentencing.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty.
St. Francis Woman Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman has been indicted by a federal grand jury for Involuntary Manslaughter.
Diana Swift, age 31, was indicted on November 10, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on November 13, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to eight years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on September 14, 2020, in Todd County, South Dakota, Swift killed a woman by operating a motor vehicle in a grossly negligent manner.
The charge is merely an accusation and Swift is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Swift was released on bond pending trial. A trial date has not been set.
St. Croix Man Arrested on Charges of Conspiracy and Attempted Possession of Methamphetamine and Marijuana with Intent to DistributeRead the Press Release
St. Thomas, USVI- United States Attorney Gretchen C.F. Shappert announced today that Jason Lee Current, 43, of St. Croix, appeared before Magistrate Judge George W. Cannon for an Initial Appearance after his arrest by Homeland Security Investigations Special Agents on the charges of Conspiracy to Possess a Controlled Substance with Intent to Distribute and Attempted Possession of Controlled Substance with Intent to Distribute.
According to court documents, on November 5, 2020, Custom and Border Protection officers in San Juan, PR, intercepted a mail parcel that contained 120 grams of Methamphetamine and 341 grams of Marijuana. The package was mailed from California and addressed to Current. On November 10, 2020, the parcel was prepared by law enforcement for a controlled pickup. The controlled substances were replaced with representative facsimiles (sham), and the parcel was outfitted with a tracking device. That same day, Current picked up the parcel at a postal facility. Law enforcement surveillance monitored the pick-up, but the defendant eluded the tailing vehicles after detecting the tracking device. The defendant was subsequently taken into custody on November 13, 2020.
Current has an outstanding felony warrant from the state of Hawaii for failure to appear. As a result, the Government moved to detain Current pending his trial in this matter. A Detention Hearing is set for November 19, 2020.
The case was investigated by the Homeland Security Investigations, Customs and Border Protection, and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Daniel H. Huston.
United States Attorney Gretchen C.F. Shappert reminds the public that an arrest warrant is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.