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Monday 5 October 2020
Drug Use and an Illegal Sawed-Off Shotgun Send Two to Federal PrisonRead the Press Release
Two Iowa men were sentenced to federal prison for firearms charges.
Christopher Anthony Craig, age 27, from Duncombe, Iowa, received the prison term after an August 18, 2020, guilty plea to one-count of Receipt and Possession of an Unregistered Firearm.
Deacon Smith-Downs, age 29, from Ogden, Iowa, received his prison term after a May 18, 2020, guilty plea to one-count of Possession of a Firearm by a Drug User and one count of Receipt and Possession of an Unregistered Firearm.
Evidence presented at the change of plea and sentencing hearings in this case revealed the following: Sometime between about September 1, 2018 and February 21, 2019, Smith-Downs and Craig were unlawful users of controlled substances and Smith-Downs acquired an illegal sawed-off shotgun. On or about February 20 and 21, 2019, the two men, and Smith-Downs’ wife, got high together and handled the shotgun. On or about February 21, 2019, Smith-Downs informed 911 that his wife had killed herself with the sawed-off shotgun. When law enforcement arrived they found the deceased woman, Smith-Downs, Craig, and the illegal shotgun. Smith-Downs eventually (during a subsequent interview) admitted to being a user of methamphetamine and marijuana and that he, his wife, and Craig had all handled the weapon within 12 hours of the fatal shooting.
On August 18, 2020, Craig was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Craig was sentenced to seven months’ imprisonment. He must also serve a twelve-month term of supervised release after the prison term. There is no parole in the federal system.
On September 22, 2020, Smith-Downs was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Smith-Downs was sentenced to 42 months’ imprisonment. He must also serve a 24-month term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Craig and Smith Downs are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was investigated by the Webster County Sheriff’s Office, Iowa Division of Criminal Investigation, and Boone County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-3048..
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Dominican National Sentenced for Drug ConspiracyRead the Press Release
BOSTON – A Dominican national who previously resided in Dorchester was sentenced today for drug crimes related to his role in a wide-ranging operation that distributed cocaine and fentanyl throughout Boston and Cape Cod.
Kelvin Chalas, a/k/a Jose Solivan, a/k/a “Keco,” 43, was sentenced by U.S. District Court Judge Richard G. Stearns to 41 months in prison and three years of supervised release. In September 2020, Chalas pleaded guilty to one count of conspiracy to distribute cocaine and fentanyl.
Chalas and his co-conspirators, James Ramirez and Alex and Kevin Fraga, were arrested in August 2017 and charged in connection with their roles in a drug ring that shipped large quantities of fentanyl, cocaine and heroin from Boston to Cape Cod, where it was redistributed. Chalas helped run a drug stash house for Ramirez, who collected the narcotics and took them to Cape Cod for distribution.
In June 2019, Alex Fraga was sentenced to 131 months in prison and five years of supervised release. In January 2020, Kevin Fraga was sentenced to 45 months in prison and five years of supervised release. In February 2020, Ramirez was sentenced to 66 months in prison and five years of supervised release.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Cape and Islands District Attorney Michael O’Keefe made the announcement today. The Brewster, Harwich, Sandwich, Mashpee, Chatham, Yarmouth and Barnstable Police Departments and the Barnstable County Sheriff’s Department provided assistance with the investigation. Assistant U.S. Attorneys Alathea Porter, Philip Cheng and Eric Rosen of Lelling’s Criminal Division prosecuted the case.
District Woman Sentenced to 30 Months for Defrauding Banks of up to $3.5 Million by Illegally Accessing AccountsRead the Press Release
WASHINGTON – Tricia Steele Boutros, a 41-year-old District of Columbia resident, was sentenced to 30 months’ imprisonment today in federal court in the District of Columbia for spearheading a three-year scheme to defraud financial institutions and account holders of approximately $3.5 million by illegally accessing bank accounts.
Boutros pled guilty to a criminal information charging her with bank fraud on May 1, 2020. According to court papers, Boutros frequently used an encrypted internet network, referred to as the “dark web,” that allowed her to conceal her identity and illicitly obtain login information for bank account holders. Boutros admitted to using the login information to access at least 30 different bank accounts from more than ten different financial institutions. Boutros admitted to transferring money from those accounts to accounts she controlled personally and through entities she established, including a law firm. Boutros also wrote fraudulent checks on some of the accounts she illegally accessed. Court papers state that Boutros made the fraudulent checks payable to herself, to entities she controlled, and to her creditors. Boutros further admitted that she used stolen identities and counterfeit identification documents to open bank accounts through which she facilitated the transfer of fraud proceeds for her benefit.
Court papers state that, in total, Boutros initiated or attempted to initiate at least $3.5 million in fraudulent transactions from the accounts that she illegally accessed. Some of those transfers were stopped before they were processed or were able to be reversed after the fraud was discovered. Boutros admitted to obtaining between $1.3 million and $2.2 million as a result of her fraud scheme.
Boutros was sentenced by the Honorable Amit Mehta of the U.S. District Court for the District of Columbia. Boutros was ordered to serve 30 months in prison followed by 60 months of supervised release. The Court will determine the amount of restitution owed, which will be at least $1.3 million, at a later date.
The Washington Field Office of the Federal Bureau of Investigation investigated the case. Assistant United States Attorney Elizabeth Aloi of the Fraud and Public Corruption Section is prosecuting the case. Former Assistant United States Attorneys Denise Simmonds and Anthony Saler also prosecuted the case.
Department of Justice Awards $5.8 Million in Grants to San Diego County Indian TribesRead the Press Release
Assistant U. S. Attorney KimThoa Hoang (619) 546-9397
NEWS RELEASE SUMMARY – October 2, 2020
SAN DIEGO – U.S. Attorney Robert Brewer announced today that the U.S. Department of Justice has awarded more than $5.8 million in grants to Native American tribes based in San Diego County to provide resources to crime victims, particularly victims of domestic violence and sexual assault.
Recipients include the Intertribal Court of Southern California, $1,428,927; the Pauma Band of Mission Indians, $900,000; San Pasqual Band of Mission Indians $900,000; Southern Indian Health Council, $614,433; and La Jolla Band of Luiseno Indians, $836,856 and $417,000. Additionally, this office previously announced that Valley Center-based Strong Hearted Native Women’s Coalition received a DOJ grant for $353,615 and the Pauma Band received $363,223.
“Violence against women has increased during the pandemic, making these funds more important than ever,” said U.S. Attorney Robert Brewer. “This is one way for the Department of Justice to make sure that Indian women are protected and their attackers brought to justice. The grants announced today will also significantly expand the Intertribal Court’s capacity to provide victim services to all tribal members.”
The Tribal Governments Program, Purpose Area 5 of the 2019 Coordinated Tribal Assistance Solicitation, was created in Title IX of the Violence Against Women Act of 2005 and amended by 34 U.S.C. 10452. The Tribal Governments Program is designed to fulfill the following goals of Title IX: (1) decreasing the incidence of violent crime against Indian women; (2) strengthening the capacity of Indian tribes to exercise their sovereign authority to respond to violent crimes committed against Indian women; and (3) ensuring that perpetrators of violent crimes committed against Indian women are held accountable for their criminal behavior.
The Pauma Band of Mission Indians is a federally recognized Tribe located in in San Diego County, California. With this funding, the Pauma Sexual Assault Response Team will: (1) increase tribal capacity to respond to domestic violence, dating violence, sexual assault, sex trafficking, and stalking crimes; (2) strengthen the tribal justice interventions, including tribal law enforcement and prosecution; (3) enhance services to victims; (4) work in cooperation with the community to develop education and prevention strategies; (5) provide legal assistance to victims in legal matters arising as a consequence of abuse or violence; (6) provide services to address the needs of youth who are victims of domestic violence, dating violence, sexual assault, sex trafficking, or stalking and the needs of youth and children exposed to domestic violence, dating violence, sexual assault, or stalking; and (7) develop and promote legislation and policies. The Pauma Band of Mission Indians has partnered with Strong Hearted Native Women’s Coalition to plan and implement this project.
The San Pasqual Band of Mission Indians is a federally recognized tribe located in San Diego County, California. With this funding, the San Pasqual Native Women’s Resource Center (NWRC) and the San Pasqual Public Safety Department will: (1) increase and improve tribal law enforcement response and follow-up to victims of domestic violence, dating violence, sexual assault, sex trafficking, and stalking by hiring a dedicated officer; (2) expand the capacity of the Native Women’s Resource Center to provide timely intervention and supportive services; and (3) provide community education and outreach regarding prevention and intervention resources for domestic violence and other crimes of violence against Indian women. The San Pasqual Band of Mission Indians has partnered with a community advisory committee and the Strong Hearted Native Women’s Coalition to plan and implement this project.
Southern Indian Health Council, Inc. (SIHC) is a tribal non-profit located in San Diego County, California. SIHC is a duly authorized designee of the Barona Band of Mission Indians, the Campo Band of Mission Indians, the Ewiiaapaayp Band of Kumeyaay Indians, the Jamul Indian Village of California, the La Posta Band of Diegueno Mission Indians, the Manzanita Band of the Kumeyaay Nation, and the Viejas Band of Capitan Grande Band of Mission Indians of the Viejas Reservation, all federally recognized tribes. The tribes individually have (1) authorized SIHC to submit an application on behalf of the tribe; and (2) stated its support for the project and its commitment to participate in the project upon receiving this funding. In general, SIHC provides medical, dental, and mental health care at four clinic locations in rural southeast San Diego County. SIHC has partnered with Strong Hearted Native Women’s Coalition to plan and implement this project. With this funding, SIHC will: (1) provide transitional housing assistance for victims of domestic violence, sexual assault, dating violence, stalking, or sex trafficking; (2) provide supervised visitation and safe visitation exchange; (3) increase tribal capacity to respond to domestic violence, dating violence, sexual assault, stalking, and sex trafficking, by providing training to tribal staff and partners; (4) provide civil legal assistance to victims with legal issues arising out of the violence they experienced; and (5) provide services to youth that are victims or exposed to domestic violence, sexual assault, or stalking.
The La Jolla Band of Luiseno Indians is a federally recognized tribe located in San Diego County, California. The La Jolla Band of Luiseno Indians’ Avellaka Program works to address violence against Indian women by providing 24/7 crisis intervention services, court advocacy and accompaniment, transitional housing assistance, and community awareness and education. With this funding, the Avellaka Program will: (1) increase and enhance tribal capacity to respond to domestic violence, dating violence, sexual assault, sex trafficking, and stalking crimes against Indian women; (2) work in cooperation with the community to develop education and prevention strategies; and (3) provide transitional housing for victims. The Avellaka Program has partnered with the La Jolla Native Women’s Advisory Committee to plan and implement this project.
Further, the Tribal Victim Services grant award will enable La Jolla to (1) hire a 1.0 FTE Advocate for Youth; 2) retain the services of a consultant to help develop a strategic plan and conduct evaluation activities for the project; 3) retain the services of a videographer to help youth document digital stories and create PSAs targeting youth victims of crime; and 4) support the development of a Native Children's Advocacy Committee.
Under its award, Intertribal Court of Southern California (ICSC), located in Valley Center, will expand victim services for member tribes of their consortium. ICSC will hire four victim services program staff (Family Services Manager, Youth Services Advocate, Adult Services Manager, and an Administrative Assistant) to expand services to child, adolescent, and adult victims of crime; renovate a portion of the ICSC building to serve as a private waiting area for victims awaiting court proceedings; purchase a mobile office to house the four victim services staff; and contract with American Indian Development Associates LLC to conduct a needs assessment, create a Victim Services Program strategic plan, and assist with a two-year formative program performance plan in Year 1 and 2.
For information of the Valley Center-based Strong Hearted Native Women’s Coalition grant please see https://www.justice.gov/usao-sdca/pr/department-justice-awards-1-million-grants-san-diego-county-organizations. For information on the first Pauma grant, please see https://www.justice.gov/usao-sdca/pr/us-doj-office-violence-against-women-awards-363223-pauma-band-mission-indians-support.
Defendant Sentenced to 83 Months for Maritime Smuggling Event that Resulted in the Deaths of Two AliensRead the Press Release
Assistant U.S. Attorneys Jill Streja and Seth Askins (619)546-8401
NEWS RELEASE SUMMARY – October 5, 2020
SAN DIEGO – Julio Cesar Murillo-Arce was sentenced in federal court today to 83 months in prison for his role as the captain of a panga boat that suffered engine trouble and capsized in February 2020, resulting in the deaths of two of the six smuggled aliens on board. Murillo-Arce pleaded guilty to four counts of alien smuggling in June 2020.
As reflected in court records, during the late hours of February 2 and early morning hours of February, Murillo-Arce piloted a panga boat with six illegal aliens aboard from Ensenada, Mexico, to United States territorial waters. At approximately 1:30 a.m., as the boat was approximately 150 yards offshore and beyond the breakers near Imperial Beach, it began experiencing severe engine trouble and eventually became inoperable in the rough seas.
Law enforcement personnel with the Joint Harbor Operations Center were able to observe the boat, and Border Patrol agents responded to the shore. Fearing capture, Murillo-Arce told the other individuals aboard not to identify him as the pilot of the boat and then dove into the water, abandoning them at their time of greatest need. Thereafter, a large wave capsized the boat, throwing all six smuggled aliens into the rough seas. Four eventually were able to make it to shore, but two – Ramon Ponce-Rodriguez and Modesto Rodriguez-Ballesteros – were unable to swim and drowned.
When this incident occurred, Murillo-Arce previously had been convicted of a maritime alien smuggling offense in 2019 in the Central District of California and was on supervised release.
U.S. District Court Judge Marilyn L. Huff sentenced Murillo-Arce to 78 months in federal prison for his criminal conduct in this case. When handing down the sentence, Judge Huff observed that this was a “tragic, tragic, tragic circumstance” and “one of the most egregious that the court has seen in many years of experience.” She noted that Murillo-Arce was not deterred by his prior conviction and stated, “These deaths should not have happened.” Judge Huff also imposed a 10-month sentence for Murillo-Arce’s violation of the terms of his supervised release and ran five months consecutive, for a total sentence of 83 months.
“This is yet another tragedy that never should have happened,” said U.S. Attorney Robert Brewer. “This defendant and others like him care only about their bank accounts and their own safety. Because of his callous disregard for the passengers he attempted to smuggle, two lives were lost.” U.S. Attorney Brewer commended Assistant U.S. Attorneys Jill Streja and Seth Askins, as well as the U.S. Border Patrol and the Joint Harbor Operations Command for their work on this case.
“As made evident by these events, organizations that use the Pacific Ocean to smuggle people have little regard for human life,” stated U.S. Border Patrol, San Diego Sector’s Acting Chief Patrol Agent Patricia McGurk-Daniel. “Border Patrol agents work relentlessly to pursue these smugglers and prevent these tragedies from occurring. The San Diego Sector is grateful for the U.S. Attorney’s Office’s tireless efforts in bringing them to justice.”
DEFENDANT Criminal Case No. 3:20-CR-761-H
Julio Cesar Murillo-Arce Age: 42 Residence: Mexico
SUMMARY OF CHARGES
8 U.S.C. § 1324(a)(1)(A)(i) and (B)(iv) – Attempted Bringing in Illegal Aliens Resulting in Death (2 counts)
Maximum Penalties: Death or Imprisonment for any term of years or for Life; $250,000 fine.
8 U.S.C. § 1324(a)(2)(B)(ii) – Attempting Bringing in Illegal Aliens for Financial Gain (2 counts)
Maximum Penalties: Mandatory Minimum three years; Maximum ten years; $250,000 fine
INVESTIGATING AGENCIES
United States Border Patrol
Joint Harbor Operations Command
D.C. Man Arrested and Charged with Robbing Three Banks in a Single DayRead the Press Release
WASHINGTON – Micheal Antonio Smith, 32, of Washington, D.C. has been arrested and charged via criminal complaint with robbing three different Wells Fargo Bank branches on Tuesday, September 29, 2020.
The charges were announced by Acting U.S. Attorney Michael R. Sherwin, Robert E. Bornstein, acting Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Smith robbed the Wells Fargo Bank located at 3200 Pennsylvania Avenue S.E. at approximately 12:18 p.m. At approximately 12:59 p.m., Smith then robbed the Wells Fargo Bank at 609 H Street N.E. Finally, at 2:23 p.m., Smith robbed the Wells Fargo Bank located at 1934 14th Street N.W. Smith was captured on surveillance video in all three banks, and also captured outside a bank after he had removed his hood and mask. Overall, Smith received more than $1,500 from the three robberies.
FBI agents, with assistance from MPD officers and detectives, were able to identify Smith and track his movements on September 29, 2020, and thereafter. Agents confirmed that Smith had fled Washington, D.C. to Philadelphia after the last robbery and, on October 3, 2020, Smith was arrested in Philadelphia with assistance from the Philadelphia Police Department. Smith will be transported back to Washington, D.C. by the United States Marshals Service to face trial.
“This investigation is a perfect example of the necessary synergy between law enforcement organizations,” noted Acting U.S. Attorney Sherwin. “Through good policing and coordinated efforts, law enforcement was able to remove a dangerous person from the streets.” Special Agent in Charge Bornstein further stated “Those intending to rob banks should take heed that the FBI and its local task force partners to include MPD, will take swift actions to identify, seek and arrest those responsible for these acts” said Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division. “This arrest is one of the many examples of the ways the FBI and our partners on the DC Violent Crime Task Force work together to swiftly take violent criminals off the streets before they act again.”
A criminal complaint is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter was investigated by the FBI Washington Field Office’s Violent Crime Task Force which is composed of FBI Special Agents, along with task force officers from the Metropolitan Police Department, the United States Capitol Police, the United States Marshal’s Service, the Court Services and Offender Supervision Agency, and the DHS Federal Protective Service. The task force is charged with identifying, investigating and removing the most egregious actors engaged in violent crimes within the District of Columbia. Investigative assistance in this matter was provided by the FBI – Philadelphia Field Office.
In announcing the charges, Acting U.S. Attorney Sherwin, acting Special Agent in Charge Bornstein, and Chief Newsham commended the work of those involved in the case. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys James B. Nelson and Jeffrey Poulin of the Federal Major Crimes Section, and Paralegal Specialist Teesha Tobias.
Chicago-Area Man Charged with Conducting Illegal Sports Gambling BusinessRead the Press Release
CHICAGO — A Chicago-area man has been charged in federal court with conducting an illegal sports gambling business in the city and suburbs.
GREGORY EMMETT PALOIAN conducted an illegal sports bookmaking business from 2015 to 2019, according to a criminal information filed Friday in U.S. District Court in Chicago. Paloian operated his business in Chicago, Elmwood Park, and Melrose Park, the information states.
The information charges Paloian, 66, of Elmwood Park, with one count of conducting an illegal gambling business. It seeks forfeiture from Paloian of $274,070 and a 2017 Audi automobile.
Arraignment is set for Oct. 7, 2020, at 10:15 a.m., before U.S. District Judge Joan Humphrey Lefkow in Chicago.
The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The government is represented by Assistant U.S. Attorneys Terry M. Kinney and Ankur Srivastava.
The public is reminded that a charge is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The gambling charge carries a maximum sentence of five years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
California Parent Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California man was sentenced today for using fraud and bribery to facilitate his child’s acceptance to Georgetown University.
Peter Dameris, 60, of Pacific Palisades, Calif., was sentenced by U.S. District Court Judge Richard G. Stearns to one day in prison (deemed served), three years of supervised release with 12 months of home confinement, and ordered to pay a fine of $95,000. In June 2020, Dameris pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
Dameris agreed with William “Rick” Singer to pay an amount, ultimately totaling $300,000, to Singer’s purported charity, the Key Worldwide Foundation (KWF), knowing that the money would be used to facilitate Dameris’s son’s purported recruitment to Georgetown University as a tennis player, even though he did not play tennis competitively.
Singer previously pleaded guilty and is cooperating with the government’s investigation.
Dameris is the 23rd parent to be sentenced in this 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; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Buhl Man Sentenced to over 10 Years for Distributing MethamphetamineRead the Press Release
BOISE - Terry Duane Whited, Jr., 36, of Buhl, Idaho, was sentenced in U.S. District Court to 130 months in prison for distribution of methamphetamine, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Whited to serve five years of supervised release following his prison sentence. Whited pleaded guilty to the charge on October 22, 2019.
According to court records, Whited was a methamphetamine dealer living in the Buhl area in 2018. On October 28, 2018, Whited distributed five pounds of methamphetamine to an individual living in Boise, for an agreed price of $4,000 per pound. This methamphetamine was later seized by law enforcement following a search warrant of a Boise residence. Whited has a criminal history that includes a prior felony conviction for eluding a police officer in which he was sentenced to prison.
This case was investigated by the Drug Enforcement Administration and Boise Police Department.
This indictment is the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. 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. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
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Brooklyn Man Sentenced to 20 Years in Prison for Conspiring to Sex Traffic Minor VictimsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced that ANTHONY YOUNG, a/k/a “Royalty,” was sentenced today to 20 years in prison for conspiring to sex traffic minor victims. YOUNG’s sentence was imposed by United States District Judge Sidney H. Stein, before whom he previously pled guilty to one count of conspiracy to sex traffic minor victims. As part of his plea, YOUNG acknowledged that he conspired to traffic two minor females.
Acting U.S. Attorney Audrey Strauss said: “In violation of federal criminal law, Anthony Young had sex with two minors and further sexually abused and exploited them by directing them to engage in commercial sex, keeping the proceeds for himself. For his callous and abusive conduct, Young has been sentenced to 20 years in prison.”
FBI Assistant Director William F. Sweeney Jr. said: “Luring children into the sex trade, and then physically abusing those children, is beyond contemptible. Now that Mr. Young is thankfully bound for a federal prison cell, he’ll no longer be able to abuse our most vulnerable population. Our FBI/NYPD Child Exploitation and Human Trafficking Task Force members do extremely difficult and emotionally draining work each day, but saving even one child from being victimized by a predator provides some light at the end of a very dark tunnel. Please call us at 1-800-CALL-FBI if you know anyone who may need our help.”
Commissioner Dermot Shea said: “Today’s sentencing underscores the importance of our work to stop anyone who would sexually abuse and exploit minors. I commend our FBI/NYPD Child Exploitation and Human Trafficking Task Force, and all of our law-enforcement partners, for working tirelessly to seek justice and for helping these victims get the services they need.”
According to the Indictment and other court documents filed in Manhattan federal court:
YOUNG worked with others to lure two minor females, who had not yet turned 16 years old, into the commercial sex trade on the pretense of romance. More than 10 years older than his victims, YOUNG had sex with them, took sexually suggestive pictures of them, advertised them for commercial sex, and told them how much they should charge for commercial sex acts. YOUNG arranged for his victims to be transported to various hotels to engage in commercial sex acts, and then he kept all the proceeds from these sex acts for himself.
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In addition to his prison sentence, YOUNG, 34, was sentenced to 10 years of supervised release.
Ms. Strauss praised the outstanding investigative work of the FBI and the New York City Police Department (“NYPD”), and in particular, the FBI-NYPD Child Exploitation and Human Trafficking Task Force. She also thanked the Kings County District Attorney’s Office, the New York City Department of Correction, and the New York City Human Resources Administration for their assistance in this matter.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Rushmi Bhaskaran and Sarah Mortazavi are in charge of the prosecution.
Bronx Man Indicted for Conspiracy to Distribute 30 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A grand jury indicted a Bronx, New York, man today for his role in a drug trafficking conspiracy, U.S. Attorney Craig Carpenito announced.
Raul A. Figueroa Santana, 48, was indicted on one count of conspiracy to distribute five kilograms or more of cocaine and one count of possession with intent to distribute five kilograms or more of cocaine. He and two co-defendants, Yohan E. De Jesus Osornio, 30, of Phelan, California, and Ronal Luiyi Hernandez Sepulveda, 30, of the Bronx, were charged by complaint on Nov. 16, 2019.
According to documents filed in this case and statements made in court:
Figueroa Santana was arrested on Nov. 15, 2019, in Newark after conducting a transaction involving 10 kilograms of cocaine. Law enforcement officers observed De Jesus Osornio, who had parked his tractor trailer on Passaic Street in Newark, enter a white Mazda before returning to the tractor trailer with a weighted-down bag. Law enforcement officers observed Hernandez Sepulveda and Figueroa Santana arrive in a black Mitsubishi. Law enforcement officers observed Hernandez Sepulveda approach the tractor trailer and walk back to the Mitsubishi with a bag, which Hernandez Sepulveda placed in the back of the Mitsubishi, where Figueroa Santana was waiting. After approaching and apprehending the defendants, law enforcement officers searched the bag and found 10 kilograms of cocaine, and found an additional 20 kilograms of cocaine and a large sum of cash in the tractor trailer.
De Jesus Osornio and Hernandez Sepulveda previously pleaded guilty. De Jesus Osornio was sentenced Sept. 30, 2020, to three years in prison. Hernandez Sepulveda pleaded guilty and is scheduled to be sentenced Dec. 2, 2020.
Both counts of the indictment carry maximum penalties of life imprisonment and a $10 million fine.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Susan A. Gibson, with investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office OCDETF/Narcotics Unit.
The charge and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bridgeport Police Chief and Personnel Director Plead Guilty to Rigging City’s Police Chief SearchRead the Press Release
Audrey Strauss, Acting United States Attorney for the Southern District of New York, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that ARMANDO J. PEREZ, the former Chief of Police of the City of Bridgeport, Connecticut (the “City”), and DAVID DUNN, the City’s former acting personnel director, pled guilty today to defrauding the City by rigging the 2018 police chief examination in order to ensure PEREZ would be selected for the position, and to making false statements to federal agents in the course of the investigation. PEREZ and DUNN pled guilty before U.S. District Judge Kari A. Dooley in Bridgeport federal court this morning.
Acting U.S. Attorney Audrey Strauss said: “As they have now admitted, former Chief Perez and former Personnel Director Dunn schemed to rig the purportedly impartial and objective search for a permanent police chief to ensure the position was awarded to Perez, and then repeatedly lied to federal agents in order to conceal their conduct. Today’s pleas are a significant step in ensuring that Bridgeport’s citizens and police officers have leaders with integrity who are committed to enforcing, not breaking, the law.”
According to the allegations contained in the Complaint, the Informations, publicly available information, court filings, and statements made during the plea proceedings:
The Scheme to Rig the City of Bridgeport’s Police Chief Exam
The charges arise from a criminal scheme to rig the City’s search for a new Bridgeport Police Department (“BPD”) chief in 2018. During the course of this scheme, PEREZ – who was serving as the acting BPD chief at the time – conspired with DUNN, who is and was at that time the City’s acting personnel director, to deceive the City by secretly rigging the supposedly independent search process for a new BPD chief to ensure that PEREZ was ranked as one of the top three candidates and could therefore be awarded a five-year contract to serve as the BPD chief.
More specifically, in or about February 2018, the City commenced a search to fill the position of permanent chief of police. Under the City’s Charter, the City was required to conduct an “open and competitive examination” to determine the top three scoring candidates for the position, from which the mayor could then choose. DUNN, in his role as the personnel director, oversaw the police chief examination process, and retained an outside consultant (“Consultant-1”) to assist with developing and carrying out the exam. DUNN and PEREZ then manipulated that examination process in multiple ways: DUNN stole confidential examination questions and related information developed by Consultant-1, and provided those materials to PEREZ, including by email; DUNN had Consultant-1 tailor the examination scoring criteria to favor PEREZ; PEREZ enlisted two BPD officers to secretly draft and write PEREZ’s written exam; and DUNN attempted to influence a panelist, tasked with ranking the candidates in the last stage of the exam, to ensure that PEREZ was scored as one of the top three candidates.
As a result of the scheme, the City was deceived into ranking PEREZ among the top three candidates, which rendered him eligible for the permanent police chief position. The mayor ultimately offered the position to PEREZ, and the City, under the assurance that PEREZ had been appointed in accordance with the City Charter, entered into a five-year contract with PEREZ, the terms of which included a payout to PEREZ for accrued leave.
False Statements by PEREZ and DUNN
PEREZ and DUNN were each voluntarily interviewed in connection with the FBI’s investigation. In an attempt to conceal their conduct, during those interviews they both lied to FBI agents about facts material to the criminal investigation. PEREZ provided false and misleading information about the assistance DUNN and others had provided him in connection with the examination process, including his requests to a BPD officer to sneak into headquarters to retrieve stolen confidential information provided by DUNN. DUNN falsely denied requesting an exam panelist ensure that PEREZ was scored as one of the top three candidates.
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PEREZ, 64, of Trumbull, Connecticut, and DUNN, 73, of Stratford, Connecticut, each pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum penalty of five years in prison; and one count of making false statements to federal investigators, which carries a maximum penalty of five years in prison.
PEREZ is scheduled to be sentenced by Judge Dooley on January 4, 2021, and DUNN is scheduled to be sentenced by Judge Dooley on January 11, 2021.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentences of PEREZ and DUNN will be determined by the Court.
Ms. Strauss praised the outstanding work of the FBI and the Special Agents of the U.S. Attorney’s Office.
The case is being prosecuted by the Office’s Public Corruption Unit and White Plains Division. Assistant U.S. Attorneys Eli J. Mark and Jeffrey C. Coffman, and Assistant U.S. Attorney Jonathan N. Francis of the U.S. Attorney’s Office for the District of Connecticut, are in charge of the prosecution.
Box Elder Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Box Elder, South Dakota, man was charged in federal district court with Receipt of Child Pornography and Possession of Child Pornography.
John Cody Klingman, age 29, was charged on September 17, 2020. Klingman appeared before U.S. Magistrate Judge Daneta Wollmann on September 23, 2020, and pleaded not guilty to the charges. The maximum penalty upon conviction is a mandatory minimum of 5 up to 20 years in federal prison and/or a $250,000 fine, up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Klingman receiving and possessing child pornography between October 2014 and October 2019. The charges are merely an accusation and Klingman is presumed innocent until and unless proven guilty.
The investigation is a joint effort between the South Dakota Division of Criminal Investigation, Department of Homeland Security, Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Klingman was released on conditions. A trial date has been set for December 1, 2020.
Box Elder Man Indicted for Sexual Exploitation of MinorRead the Press Release
United States Attorney Ron Parsons announced that Box Elder, South Dakota, man was charged in federal district court with Sexual Exploitation of a Minor, Attempted Enticement of a Minor, Distribution of Child Pornography, Receipt of Child Pornography, and Possession of Child Pornography.
Cody Allen Green, age 37, was charged on September 17, 2020. Green appeared before U.S. Magistrate Judge Daneta Wollmann on September 21, 2020, and pleaded not guilty to the charges. The maximum penalty upon conviction is a mandatory minimum of 15 up to 30 years in federal prison and/or a $250,000 fine, a mandatory minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Green sexually exploiting an underage female in March 2019 via Facebook messenger by producing images of child pornography. He remained in possession of the images thereafter. A search of Green’s devices found that he knowingly received, distributed, and possessed images depicting minors involved in sexually explicit conduct. The charges are merely an accusation and Green is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, Department of the Air Force Office of Special Investigations, the Rapid City Police Department, and the Pennington County Sheriff’s office Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Green was detained pending trial. A trial date has been set for November 24, 2020.
Boise Man Convicted of Health Care Fraud and Aggravated Identity TheftRead the Press Release
BOISE - Scott Alexander Laney, 38, of Boise, was convicted on October 5, 2020, by U.S. District Judge B. Lynn Winmill of health care fraud and aggravated identity theft following a bench trial, U.S. Attorney Bart M. Davis announced today. The bench trial ran from September 21 through September 25, with the Court announcing the verdict today.
During the five-day trial, the Court heard evidence that Laney executed a scheme to defraud Medicare and Idaho Medicaid in connection with the delivery and payment of urine drug screenings and committed aggravated identity theft. Laney worked as a sales representative in connection with two national companies that performed laboratory testing of urine drug samples. In that role, Laney setup fraudulent accounts using the names and identifying information of multiple nurse practitioners without authority. Laney’s misuse of the nurse practitioners’ information caused the payment of fraudulent health care claims that were not authorized by a medical provider and were not reasonable or medically necessary.
Laney faces up to 10 years in prison, a maximum fine of $250,000, and up to 3 years of supervised release on the health care fraud convictions. The aggravated identity theft charges carry a mandatory minimum of 2 years consecutive imprisonment to other charges, a maximum fine of $250,000, and up to 1 year of supervised release.
Sentencing is set for January 7, 2021, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
This case was investigated by the Health & Human Services, Office of Inspector General with assistance from the Payette Police Department.
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Baltimore Felon Sentenced to 12 Years in Federal Prison for the Robbery of a Gas Station OwnerRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Levon Verian Butts, age 29, of Baltimore, Maryland, to 12 years in federal prison, followed by three years of supervised release, for participating in the armed robbery of a gas station owner. The sentence was imposed on October 2, 2020. Butts has been detained since his arrest.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Ashan Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, on January 16, 2018, Butts and two co-conspirators robbed the owner of a gas station in the 10000 block of Reisterstown Road in Owings Mills, Maryland. As detailed in the plea agreement, Jesse James Elder was a frequent customer of the gas station and was friendly with the employees, including the owner. On January 16, 2018, Elder was at the gas station playing the lottery when the owner arrived. Shortly after his arrival, the owner placed $20,000, proceeds from the gas station, into a bank bag and left the store. As he was walking out, he stopped next to Elder’s vehicle, which was parked in the gas station lot, and began talking to Elder. While the owner and Elder were talking, Butts and Charvez Deonte Brooks approached from a neighboring parking lot and hid behind other parked cars. When the owner walked away from Elder’s vehicle, Butts and Brooks pushed the owner to the ground and grabbed the bank bag from his hand.
Butts and Brooks tried to run back to the adjacent parking lot. A bystander tripped Butts, causing him to run out of his shoes, which Butts left in the parking lot. Brooks dropped some of the money. Butts and Brooks got into co-conspirator Brooks’ silver Infiniti and fled the area. Elder drove around the owner, who was lying motionless in the parking lot, and left the gas station.
As a result of being pushed to the ground, the owner of the gas station hit his head on the pavement and was knocked unconscious. He was transported to the hospital, where he was diagnosed with multiple skull fractures, a cerebral hemorrhage, and remained in critical condition. He has not returned to normal function.
Baltimore County Police officers responded to the gas station and recovered the money that had been dropped by Brooks and Butts’ shoes from the gas station parking lot. They also recovered a .22-caliber handgun and additional money in the parking lot near where the Infiniti had been parked. DNA from the shoes matched Butts’ DNA.
Elder, age 45, of Owings Mills, previously pleaded guilty to conspiracy to commit a commercial robbery. Brooks, age 31, of Gwynn Oak, Maryland, was convicted of that charge after a five-day trial. Both defendants face a maximum sentence of 20 years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Ellen L. Hollander has not scheduled sentencing for Elder. Chief U.S. District Judge James K. Bredar has scheduled sentencing for Brooks on December 5, 2020 at 3:00 p.m. Elder and Brooks remain detained.
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 ATF and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Lauren E. Perry and Anatoly Smolkin, who are prosecuting the case.
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Baltimore Attorney Facing Federal Indictment for Attempted ExtortionRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Stephen L. Snyder, age 72, of Miami Beach, Florida, on the federal charges of attempted extortion and interstate travel and use of an interstate facility to carry on unlawful activity, also known as the Travel Act. Snyder was the senior partner at a Baltimore-based law firm specializing in plaintiff-side medical malpractice litigation.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to the eight-count indictment, between January and October 2018, Snyder attempted to obtain $25 million from the University of Maryland Medical System (UMMS) for himself, separate and apart from any claim by one of his clients, by using threats of economic and reputational harm to UMMS and its organ transplant program. Specifically, the indictment alleges that Snyder threatened that if UMMS did not pay him $25 million, Snyder would launch a public relations campaign against UMMS that alleged, among other things, that UMMS transplanted diseased organs into unsophisticated patients without informing them of the quality of the organs they were receiving in order to generate revenue. According to the indictment, Snyder told UMMS officials that the campaign would include: a front-page article in the Baltimore Sun; other national news stories; a press conference; advertisements on the Internet, including one that would run every time someone accessed the UMMS transplant site; and at least two videos Snyder produced and would air if his demand for a $25 million payment were not met.
Snyder allegedly demanded that UMMS disguise the $25 million payment as a sham consulting arrangement between Snyder and UMMS. Snyder also allegedly threatened that a lawyer (Lawyer 1) working for the insurance program insuring UMMS and its faculty physician groups would lose her job and threatened to harm the professional reputation of a UMMS doctor (Doctor 1) if they did not aid Snyder in obtaining the $25 million payment.
As detailed in the indictment, Snyder represented the spouse of a transplant patient who had died (Client 2). During a settlement conference that included the lawyer and doctor mentioned above, Snyder demanded a $25 million settlement for his client. In a later meeting, Snyder allegedly told UMMS representatives, including Lawyer 1 and Doctor 1, that the Client 2 case was “not worth that much money” and that Client 2’s case was worth between $3 and $5 million. Snyder confirmed several times that the $25 million would be a payment made just to him and would be in addition to the payment made to Client 2’s spouse to settle her case. When asked what he could do for $25 million, he told the UMMS representatives that he didn’t know, didn’t care, and could be “a janitor” at UMMS.
During both meetings, Snyder allegedly played videos that he had produced and said he would air if his demands were not met. The first video claimed that UMMS did not tell patients that organs UMMS transplanted were bad organs or that they accepted organs that other institutions rejected. The commercial said that Client 2 was told by the surgeon that transplanted his kidney that the surgeon would have transplanted the same organ into his own wife but wasn’t told that 250 other institutions had rejected the same kidney. The video showed images of Client 2 with necrotic fingertips and an amputated leg. The second video started with the words, in red, “PUBLIC SERVICE ANNOUNCEMENT” as well as an alert sound associated with emergency alerts. It then showed a text that Doctor 1 had sent Snyder on April 20, 2018, that read: “Sue and I just spoke. She understands on hook for fraud and punitive damages. Ball is in your court.” The video then showed pictures of several doctors which the video claimed had left UMMS or had been demoted and were no longer performing surgery. Doctor 1 was pictured with the words: “DEMOTED NO LONGER DOING SURGERY – relegated to executive work” next to his picture. After UMMS representatives advised Snyder that the video contained inaccuracies, such as the fact that the doctor had not been demoted and was still performing surgeries, Snyder responded, “then I’m wrong.”
If convicted, Snyder faces a maximum sentence of 20 years in federal prison for extortion and for each of seven counts of violating the Travel Act. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Snyder is expected to have an initial appearance in U.S. District Court in Baltimore, although no date has been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Matthew J. Phelps, who are prosecuting the case.
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Attorney General William P. Barr Announces the Appointment of Gregg N. Sofer as the U.S. Attorney for the Western District of TexasRead the Press Release
Attorney General William P. Barr announced today the appointment of Gregg N. Sofer as U.S. Attorney for the Western District of Texas, pursuant to 28 U.S.C. § 546, effective Oct. 10, 2020.
As U.S. Attorney, Sofer will be the chief federal law enforcement officer in the Western District of Texas. He will be in charge of one of the largest U.S. Attorney’s Offices in the United States, overseeing approximately 300 total staff, including 150 Assistant U.S. Attorneys, and covering 93,000 square miles in 68 counties, with divisional offices in Alpine, Austin, Del Rio, El Paso, Midland, San Antonio, and Waco. The Western District of Texas regularly prosecutes more criminal cases than any other district in the United States and serves approximately 6.5 million Texans.
“I am pleased to appoint Gregg N. Sofer as U.S. Attorney for the Western District of Texas,” said Attorney General William P. Barr. “He has served as an exceptional prosecutor for more than 29 years, devoting himself to the pursuit of justice and the protection of the citizens of this country. His leadership, integrity, and experience will greatly benefit the people of the Western District.”
“I am thrilled to be able to serve the people of my home state as the United States Attorney. I look forward to working with our state, local and federal law enforcement partners, for whom I have the utmost respect, as we continue to protect our communities and ensure that the rights of all of our citizens are safeguarded,” said Gregg N. Sofer. “I thank John F. Bash for his incredible leadership of the U.S. Attorney’s Office over the last three years. John is one of the finest lawyers I have ever met and I wish him the very best in the next chapter of his career.”
Prior to his appointment, Sofer served as Counselor to the Attorney General of the United States, where he handled criminal and national security matters, as well as crisis response. Before coming to Main Justice, Sofer served for 12 years in the U.S. Attorney’s Office for the Western District of Texas. As an Assistant U.S. Attorney and accomplished litigator, he handled national security, fraud, violent crime, and corruption cases, among others. In 2018, Sofer was promoted to Chief of the Criminal Division. In that role, he was responsible for the supervision of over 120 Assistant U.S. Attorneys and all aspects of the district’s criminal practice. His last trial in Austin, Texas, a RICO prosecution, resulted in a life sentence without parole for a man who attempted to assassinate a state court judge as she sat in her car with her family.
From 2003 to 2007, Sofer was a trial attorney in the National Security Division at Main Justice where he led the investigation and prosecution of international terrorism cases. He also served as the Director of the Office of Justice for Victims of Overseas Terrorism and Director of the National Gang Targeting Enforcement and Coordination Center.
Sofer started his legal career in the Manhattan District Attorney’s Office. Among a wide variety of cases, he prosecuted violent gang, murder and firearms trafficking cases for over 11 years, distinguishing himself as a skilled trial lawyer, indefatigable investigator, and fierce advocate for justice. Sofer earned his J.D. from New York University School of Law and his B.A. from Rutgers University.
Alameda Home Health Care Aide Charged with Credit Card Fraud in Scheme Targeting Elderly CoupleRead the Press Release
OAKLAND – A criminal complaint was unsealed today in federal court charging Heidi Suzanne Miller with credit card fraud in an alleged scheme to abuse her role as a home health care aide to use the credit cards and take over the financial accounts of an elderly couple in her care, announced United States Attorney David L. Anderson and Federal Bureau Investigation Special Agent in Charge John L. Bennett.
“Older Americans are at great risk from fraudsters,” said U.S. Attorney Anderson. “It is a priority of my Office to identify and prosecute individuals who take advantage of the elderly. In this matter, the exploitation of an elderly couple was even more shameful because the defendant had been hired to help the couple, not harm them.”
"It is particularly disturbing that someone who came into this elderly couple's home as a caregiver, instead capitalized on the couple's vulnerability for her own greed," said FBI Special Agent in Charge Bennett. "The FBI and our partners will continue to work every day to protect our elderly neighbors from fraud and abuse.”
According to the criminal complaint, in 2016, the son of an elderly Moraga, California couple hired Miller to care for his parents because they were suffering from early onset dementia. Within three days of beginning her employment, Miller allegedly began using the couple’s credit cards for her personal benefit. The complaint describs how Miller used checks and credit cards during the next three years to steal over $360,000 from the couple. Miller used the money to pay her living expenses and to maintain her lifestyle by, among other things, buying cars, clothing, and jewelry; taking a cruise and a trip to Disneyland; and caring for her family pets, including purchasing a “14-day dream dog package.” The elderly couple’s son discovered the fraud in 2019 after Miller’s employment ended. Also included in the list of alleged improper purchases was breast augmentation and liposuction. According to the criminal complaint, Miller obtained the plastic surgery and related procedures in January 2018 and paid for them using three credit cards issued to the elderly couple. Miller allegedly paid over $15,000 toward the approximately $26,000 cost of the plastic surgery procedures using the couple’s credit cards. The elderly couple’s son discovered the fraud after Miller’s employment ended.
Miller is charged with credit card fraud, in violation of 18 U.S.C. § 1029(a)(5).
A criminal complaint merely alleges that crimes have been committed, and Miller is presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the charge, Miller faces a maximum sentence of 15 years’ imprisonment, up to three years of supervised release, a fine of $250,000, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Miller made her initial appearance today before Chief U.S. Magistrate Judge Joseph C. Spero. Magistrate Judge Spero ordered Miller released on a $100,000 bond and subjected to certain travel restrictions during the pendency of the case. Miller’s next court appearance is set for November 18, 2020, before U.S. Magistrate Judge Jacqueline Scott Corley, for a status hearing.
The Special Prosecutions Section of the U.S. Attorney’s Office is prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Moraga Police Department, and the Contra Costa County District Attorney’s Office.
Saturday 3 October 2020
Lincoln Woman Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Tayler Marie Sovereign 23, of Lincoln, was sentenced on October 2, 2020, by Chief United States District Judge John M. Gerrard to 10 years in federal prison for possession with the intent to distribute 50 grams or more of methamphetamine, actual (pure). Following the prison term, Sovereign will serve five years on supervised release. There is no parole in the federal system.
On April 30, 2019, Sovereign was the passenger in a car that was stopped for a traffic violation in Lincoln. A Lincoln Police Department canine indicated to the odor of narcotics. When told of this, Sovereign claimed anything found in the car belonged to her. During a search, officers found five baggies of methamphetamine. Two of the bags contained a total of at least 160 grams of methamphetamine, actual, (more than 5 ½ ounces). Also found were multiple sandwich baggies and a digital scale. Sovereign told officers she bought the methamphetamine the day before and sold small amounts of it after buying it.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Friday 2 October 2020
Winston-Salem Man Suspected in Drive-by Shooting is Sentenced to 108 Months for Gun CrimeRead the Press Release
GREENSBORO, N.C. - A Winston-Salem man was sentenced today by United States District Court Judge William L. Osteen, Jr., to 108 months in prison and three years of supervised release for a firearm offense, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
SHAMMOHD JAMEIL BALLAH, age 22, was charged with possession of a firearm by a felon. He pleaded guilty to the charge on June 3, 2020.
According to court documents, on November 4, 2019, Winston-Salem Police Department (WSPD) officers investigating a report of a drive-by shooting at a residence on Bethabara Road found shell casings strewn about the ground in front of the property, as well as numerous holes on the exterior of the residence. Eleven spent shell casings - eight 7.62mm and three 9mm - were located at the scene. Based on witness interviews, BALLAH was developed as a suspect. BALLAH was on state probation at the time and court-ordered GPS monitoring location data placed him in the area of the shooting at the time it occurred. WSPD officers tracked BALLAH to his apartment complex the following day and found him outside in a vehicle which contained a Cugir pistol, model Micro Draco, 7.62x39mm caliber. BALLAH was previously convicted of Possession of a Stolen Firearm with an offense date of January 17, 2016, and was sentenced to 6-17 months.
Another 22-year-old from Winston-Salem, DARRIAN SYLVESTER SCOTT, JR., was sentenced earlier this week on a charge of felon in possession of a firearm. SCOTT, JR. was sentenced on September 29, 2020, to 92 months in prison by United States District Court Judge Catherine C. Eagles.
“We will continue to support our federal and local law enforcement partners and aggressively prosecute gun crime,” said U.S. Attorney Matt Martin. “Every neighborhood should be safe from gun violence.”
The BALLAH case was investigated by the FBI Safe Streets Task Force and the Winston-Salem Police Department. The SCOTT case was investigated by WSPD and the ATF.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Wilkes-Barre Individuals Sentenced for Running Methamphetamine LaboratoryRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 1, 2020, Mark Heath, age 41, and Amy Casey, age 42, both of Wilkes-Barre, Pennsylvania, were sentenced by United States District Court Judge Malachy E. Mannion for methamphetamine offenses. Heath was sentenced to 84 months’ imprisonment and four years of supervised release. Casey received a time served sentence of 10 months’ imprisonment, and two years of supervised release.
According to United States Attorney David J. Freed, Heath pleaded guilty to conspiring to manufacture and distribute 50 grams or more of crystal methamphetamine in Pennsylvania between approximately May 2017 and June 2017. The evidence established that Heath manufactured methamphetamine in a Wilkes-Barre, Pennsylvania residence. Casey pleaded guilty to maintaining a drug premises, for permitting and assisting Heath and others in running the methamphetamine laboratory in her residence, in exchange for free methamphetamine. In pronouncing both sentences, Judge Mannion highlighted that the crimes jeopardized the safety of several children living in the residence, for which the defendants received sentencing enhancements.
Two other defendants were convicted in connection with this investigation:
(1) Shawn Melleski, formerly of Wilkes-Barre Pennsylvania, pleaded guilty to a methamphetamine conspiracy and was sentenced to 46 months’ imprisonment and three years of supervised release; and
(2) Michael Laury, formerly of Wilkes-Barre Pennsylvania, was convicted at trial of a methamphetamine conspiracy, managing a drug premises, and for providing false statements to law enforcement. Laury awaits sentencing.
The matter was investigated by the FBI, the Pennsylvania State Police, and the Wilkes-Barre Police Department. Assistant United States Attorneys Phillip J. Caraballo and Jeffrey St John are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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United States Attorney William D. Hyslop Announces Award of $839,263 to the Kalispel Indian Community in a Grant to Be Used to Improve Public Safety, Serve Crime Victims and Support Its Youth Programs in the Eastern District of WashingtonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced today that, of the Department of Justice grants awarded this week to improve public safety, serve victims of crime and support youth programs in tribal communities, the Kalispel Indian Community and the Kalispel Reservation Public Safety and Community Policing program has been awarded $839,263 to support its efforts here in the Eastern District of Washington.
“American Indian and Alaska Native communities experience rates of violent crime and domestic abuse that are among the highest in the nation,” said Attorney General William P. Barr. “The awards announced underscore the Department of Justice’s deep commitment to improving public safety in tribal communities throughout the United States. This administration will continue to work closely with our tribal partners to guarantee that they have the resources they need to combat violence and bring criminals to justice.”
United States Attorney Hyslop said, “I’m very pleased that the Kalispel Indian Community has been awarded an $839,263 grant. These funds will provide substantial assistance to be used to expand and improve services to victims of crime and to promote other public safety initiatives.”
A total of more than $103 million is being awarded to tribes across the country under the Justice Department’s Coordinated Tribal Assistance Solicitation. CTAS supports activities that enhance law enforcement and tribal justice practices, expand victim services and sustain crime prevention and intervention efforts. CTAS grants are administered by the Department’s Office of Justice Programs ($41.5 million), Office on Violence Against Women ($39.1 million) and Office of Community Oriented Policing Services ($22.5 million).
An additional $113 million is being awarded to 133 applicants nationwide under the Tribal Victim Services Set-Aside Program. This program, managed by OJP’s Office for Victims of Crime, is designed to help tribes develop, expand and improve services to victims of crime and promote other public safety initiatives.
“Public safety officials and victim service providers in Indian country face exceptional challenges, but they bring to their work an extraordinary array of skills and resources that enable them to meet and overcome any obstacle,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is proud to help fulfill Attorney General Barr's strong commitment – and the federal government's long-standing responsibility – to our tribal partners in the matter of their citizens' safety and wellbeing.”
In addition to the CTAS and Tribal Victim Services Set-Aside awards, the Office on Violence Against Women is making additional tribal awards of more than $31 million to support a wide range of efforts to address the crimes of domestic violence, dating violence, sexual assault, stalking and human trafficking.
“OVW’s funding supports Native American and Alaska Native communities as they work across their communities to prevent and respond to gender based violence,” said OVW Principal Deputy Director Laura L. Rogers. “These awards represent the strong commitment that OVW has made to help protect the most vulnerable members of tribal communities.”
Additional awards to support tribal public safety efforts are being made by OJP and the COPS Office. These grants will provide community policing training and other training and technical assistance. Awards will also address the needs of tribal youth, fund tribal reentry efforts, help tribes combat substance abuse and manage sex offenders, and support tribal research. In addition, funds support efforts in 17 tribal communities to address the challenges posed by the outbreak of COVID-19.
“Ensuring our nation’s tribal communities have the resources they need is paramount for the COPS Office and the Department of Justice,” said COPS Office Director Phil Keith. “These awards are a critical component to the overall public safety strategy for tribal law enforcement and the COPS Office is honored to provide vital resources to hire more sworn officer positions, advance tribal training and procure equipment needed to keep communities safe.”
A full listing of all the announced CTAS awards is available here.
A full listing of all Tribal Victim Services Set-Aside Program awards is available here.
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.
United States Attorney William D. Hyslop Announces $1,495,962 to Support Offenders Returning to Communities in the Eastern District of WashingtonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, today announced $1,495,962 in Department of Justice grants to be used to help reduce recidivism among adults and juvenile offenders returning after confinement to their communities here in the Eastern District of Washington. The grants, awarded by the Department’s Office of Justice Programs, are part of more than $92 million in funding to support reentry efforts throughout the United States.
These awards represent President Trump’s commitment to assisting people in America’s prisons and detention facilities who have earned the opportunity to take their places back in society.
“Former offenders are ultimately responsible for their own successes and failures, but our criminal and juvenile justice systems have an important role to play in preparing them for the obstacles that lie before them,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “I’m very pleased to make these resources available to help them get back on their feet and contribute to the prosperity of their communities and the betterment of our nation.”
The reentry and recidivism reduction grants awarded will help communities develop and implement comprehensive strategies to address the challenges posed by reentry and recidivism; support reentry services for detained juveniles and incarcerated parents with children under the age of 18; and support research and evaluation programs to advance understanding about reoffending.
United States Attorney Hyslop said, “The United States Attorney’s Office for the Eastern District of Washington will use all available resources and strategies to reduce crime. One of the strategies to reduce recidivism is to provide services to offenders that promote successful reintegration into society, including education and employment opportunities, and the ability to be productive, law-abiding citizens, upon their release. This grant funding will help accomplish that.”
The following organizations received funding:
• HopeSource (Kittitas County) – receiving $749,994
• Washington State Department of Corrections (Eastern/Western Washington) – receiving $745,968
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/reentryfactsheet.pdf
More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
U.S. Attorney's Office Announces Partnership with Special Inspector General for Pandemic RecoveryRead the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich and Special Inspector General for Pandemic Recovery Brian D. Miller announced today that the U.S. Attorney’s Office for the District of Nevada has entered into a Memorandum of Understanding (MOU) with the Office of the Special Inspector General for Pandemic Recovery (SIGPR).
“This partnership with SIGPR will help our district continue to carry out the critical work of stopping those who would take advantage of the $2.2 trillion CARES Act,” said U.S. Attorney Trutanich. “We look forward to working closely with SIGPR to, among other things, prosecute fraudsters who are preying on vulnerable individuals during these difficult times and hold accountable fraudulent profiteers.”
“This relationship is a critical step in protecting taxpayer dollars,” said Special Inspector General for Pandemic Recovery Brian D. Miller. “We join U.S. Attorney Nicholas Trutanich and his team to fight fraud, waste, and abuse involving taxpayer dollars appropriated by Congress in response to the pandemic. We will hold accountable and bring to justice those who improperly take or use such money, which is meant to support the Nation’s economic health and recovery.”
The purpose and mission of the MOU is to develop a cooperative effort to investigate and prosecute matters involving the making, purchase, management, and sale of loans, loan guarantees, and other investments made by the Secretary of the Treasury under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, and the management by the Secretary of the Treasury of any program established under the CARES Act, in order to achieve just results while using all criminal and civil resources efficiently.
The MOU outlines four objectives: (1) To provide a coordinated response to CARES Act funding fraud, with an emphasis on organized criminal activity, as well as criminal and civil fraud affecting federal money, vulnerable victims, and fraud recidivists; (2) To facilitate legal process, case intake, and swift prosecution of CARES Act-related fraud; (3) To link and associate isolated CARES Act-related complaints with larger schemes and related unlawful activity; and (4) To deter future CARES Act funding fraud through an enhanced awareness of successful criminal prosecution and civil enforcement against individuals and companies involved in CARES-related financial fraud.
Two Assistant U.S. Attorneys — one from the Criminal Division and one from the Civil Division — will serve as liaisons to the partnership between SIGPR and the U.S. Attorney’s Office. These AUSAs will be direct points of contact for case-related inquiries from SIGPR.
The MOU also calls for the U.S. Attorney’s Office to create a streamlined, accelerated process for SIGPR investigations to obtain needed preliminary legal process, including grand jury subpoenas and court orders, subpoenas, and civil investigative demands.
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U.S. Attorney Jason Dunn Announces $2.6 Million in Grants to Southern Ute Indian TribeRead the Press Release
DENVER – U.S. Attorney Jason Dunn today announced $2.6 million in Department of Justice grants to improve public safety, serve victims of crime and support youth programs to the Southern Ute Indian Tribe in Colorado.
“When it comes to violent crime, the gap between Indian Country and the rest of America is staggering, which is why the Justice Department is dedicated to not only vigorously prosecuting violent crimes committed on tribal lands, but also funding programs that support victims and promote public safety,” U.S. Attorney Dunn said.
A total of more than $103 million is being awarded to tribes across the country under the Justice Department’s Coordinated Tribal Assistance Solicitation. CTAS supports activities that enhance law enforcement and tribal justice practices, expand victim services and sustain crime prevention and intervention efforts. CTAS grants are administered by the Department’s Office of Justice Programs ($41.5 million), Office on Violence Against Women ($39.1 million) and Office of Community Oriented Policing Services ($22.5 million).
“American Indian and Alaska Native communities experience rates of violent crime and domestic abuse that are among the highest in the nation,” said Attorney General William P. Barr. “The awards announced today underscore the Department of Justice’s deep commitment to improving public safety in tribal communities throughout the United States. This administration will continue to work closely with our tribal partners to guarantee that they have the resources they need to combat violence and bring criminals to justice.”
An additional $113 million is being awarded to 133 applicants nationwide under the Tribal Victim Services Set-Aside Program. This program, managed by OJP’s Office for Victims of Crime, is designed to help tribes develop, expand and improve services to victims of crime and promote other public safety initiatives.
“Public safety officials and victim service providers in Indian country face exceptional challenges, but they bring to their work an extraordinary array of skills and resources that enable them to meet and overcome any obstacle,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is proud to help fulfill Attorney General Barr's strong commitment – and the federal government's long-standing responsibility – to our tribal partners in the matter of their citizens' safety and wellbeing.”
In addition to the CTAS and Tribal Victim Services Set-Aside awards, the Office on Violence Against Women is making additional tribal awards of more than $31 million to support a wide range of efforts to address the crimes of domestic violence, dating violence, sexual assault, stalking and human trafficking.
“OVW’s funding supports Native American and Alaska Native communities as they work across their communities to prevent and respond to gender based violence,” said OVW Principal Deputy Director Laura L. Rogers. “These awards represent the strong commitment that OVW has made to help protect the most vulnerable members of tribal communities.”
Additional awards to support tribal public safety efforts are being made by OJP and the COPS Office. These grants will provide community policing training and other training and technical assistance. Awards will also address the needs of tribal youth, fund tribal reentry efforts, help tribes combat substance abuse and manage sex offenders, and support tribal research. In addition, funds support efforts in 17 tribal communities to address the challenges posed by the outbreak of COVID-19.
“Ensuring our nation’s tribal communities have the resources they need is paramount for the COPS Office and the Department of Justice,” said COPS Office Director Phil Keith. “These awards are a critical component to the overall public safety strategy for tribal law enforcement and the COPS Office is honored to provide vital resources to hire more sworn officer positions, advance tribal training and procure equipment needed to keep communities safe.”
A full listing of all the announced CTAS awards is available here.
A full listing of all Tribal Victim Services Set-Aside Program awards is available here.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney J. Douglas Overbey Announces Award of $2.2 Million in Grant Support for Offenders Returning to Communities in East TennesseeRead the Press Release
KNOXVILLE, Tenn. – U.S. Attorney J. Douglas Overbey today announced $2.2 million in Department of Justice grants to the Hamilton County Sheriff’s Office to reduce recidivism among adults and juvenile offenders returning to their communities in the Eastern District of Tennessee after confinement. The grants, awarded by the Department’s Office of Justice Programs, are part of more than $92 million in funding to support reentry efforts throughout the United States.
“Former offenders are ultimately responsible for their own successes and failures, but our criminal and juvenile justice systems have an important role to play in preparing them for the obstacles that lay before them,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “I’m very pleased to make these resources available to help them get back on their feet and contribute to the prosperity of their communities and the betterment of our nation.”
The reentry and recidivism reduction grants awarded will help communities develop and implement comprehensive strategies to address the challenges posed by reentry and recidivism; support reentry services for detained juveniles and incarcerated parents with children under the age of 18; and support research and evaluation programs to advance understanding about re-offending.
“Our office’s main function is the prosecution of serious and violent offenders,” said U.S. Attorney Overbey. “Prosecutions alone will not ensure public safety over the long term. Our office has increased its involvement in community-based crime prevention through our Project Safe Neighborhoods strategies. Lowering recidivism is a complex matter and involves a variety of factors like treating addiction, mental health and providing access to employment. Our office will continue to increase our capacity to assist in prevention and reentry of East Tennesseans.”
For a complete list of grant award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/reentryfactsheet.pdf. More information about OJP and its components can be found at www.ojp.gov.
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Two members of notorious videogame piracy group “Team Xecuter” in custodyRead the Press Release
Seattle — Two leaders of one of the world’s most notorious videogame piracy groups, Team Xecuter, have been arrested and are in custody facing charges filed in U.S. District Court in Seattle.
MAX LOUARN, 48, a French national of Avignon, France, YUANNING CHEN, 35, a Chinese national of Shenzhen, China, and GARY BOWSER, 51, a Canadian national of Santo Domingo, Dominican Republic, were charged in a federal indictment unsealed today. The indictment alleges the defendants were leaders of a criminal enterprise that developed and sold illegal devices that hacked popular videogame consoles so they could be used to play unauthorized, or pirated, copies of videogames. The enterprise targeted popular consoles such as the Nintendo Switch, the Nintendo 3DS, the Nintendo Entertainment System Classic Edition, the Sony PlayStation Classic, and the Microsoft Xbox.
“These defendants were allegedly leaders of a notorious international criminal group that reaped illegal profits for years by pirating video game technology of U.S. companies,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “These arrests show that the department will hold accountable hackers who seek to commandeer and exploit the intellectual property of American companies for financial gain, no matter where they may be located.”
“These defendants lined their pockets by stealing and selling the intellectual property of other video-game developers–even going so far as to make customers pay a licensing fee to play stolen games,” said U.S. Attorney Brian Moran. “This conduct doesn’t just harm billion-dollar companies, it hijacks the hard work of individuals working to advance in the video-game industry.”
“Theft of intellectual property hurts U.S. industry, game developers, and exploits legitimate gaming customers. All of which threaten the legitimacy of the commercial video game industry,” said Eben Roberts, Acting Special Agent in Charge, Homeland Security Investigations, Seattle. “We are committed to working with our international partners to find criminals like these who steal copyrighted material and bring cyber criminals to justice.”
“Imagine if something you invented was stolen from you and then marketed and sold to customers around the world. That is exactly what Team Xecutor was doing,” said Raymond Duda, FBI Special Agent in Charge Seattle. “This is a perfect example of why the FBI has made the prevention of the theft of intellectual property a priority. These arrests should send a message to would-be pirates that the FBI does not consider these crimes to be a game.”
According to court documents, the Team Xecuter criminal enterprise is comprised of over a dozen individual members located around the world. These members include developers who exploit vulnerabilities in videogame consoles and design circumvention devices; website designers who create the various websites that promote the enterprise’s devices; suppliers who manufacture the devices; and resellers around the world who sell and distribute the devices. The indictment alleges that due to the illegal nature of its business, Team Xecuter continuously sought to evade enforcement efforts by victim companies, financial institutions, and law enforcement. Notably, Team Xecuter attempted to protect its overall business by using a wide variety of brands, websites, and distribution channels, according to the indictment. From approximately June 2013 through August 2020, Team Xecuter used a variety of product names for its devices, such as the Gateway 3DS, the Stargate, the TrueBlue Mini, the Classic2Magic, and the SX line of devices that included the SX OS, the SX Pro, the SX Lite, and the SX Core.
According to the indictment, Team Xecuter at times cloaked its illegal activity with a purported desire to support gaming enthusiasts who wanted to design their own videogames for noncommercial use. However, the overwhelming demand and use for the enterprise’s devices was to play pirated videogames. To support this illegal activity, Team Xecuter allegedly helped create and support online libraries of pirated videogames for its customers, and several of the enterprise’s devices came preloaded with numerous pirated videogames. According to the indictment, Team Xecuter was so brazen that it even required customers to purchase a “license” to unlock the full features of its custom firmware, the SX OS, in order to enable the ability to play pirated videogames.
In September 2020, LOUARN and BOWSER were arrested abroad in connection with the charges in this case. The United States will seek LOUARN’s extradition to stand trial in the United States. BOWSER was arrested and deported from the Dominican Republic and appeared today in federal court in New Jersey.
Each defendant is charged with 11 felony counts, including conspiracy to commit wire fraud, wire fraud, conspiracy to circumvent technological measures and to traffic in circumvention devices, trafficking in circumvention devices, and conspiracy to commit money laundering.
Conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering are each punishable by up to 20 years in prison. Conspiracy and trafficking in circumvention devices are each punishable by up to 5 years in prison.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated jointly by the Federal Bureau of Investigation and Homeland Security Investigations.
This case is being prosecuted by Assistant U.S. Attorneys Francis Franze-Nakamura and Brian Werner of the Western District of Washington, and Senior Counsel Frank Lin of the Justice Department’s Computer Crime and Intellectual Property Section, with significant and ongoing assistance from the Justice Department’s Office of International Affairs. The Department appreciates the significant cooperation and assistance provided by its foreign government counterparts and the Government of the Dominican Republic, and Interpol Dominicana.
louarn_et_al_indictment.pdfTwo Men Found Guilty of Hobbs Act Robbery of Cell Phone StoreRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of RONALD JERMAINE JACKSON, 36, and WILLIAM CHARLES GRAHAM, 37, on Hobbs Act robbery and firearms charges. Following a three-day bench trial, U.S. District Judge Susan Richard Nelson found both JACKSON and GRAHAM guilty on all counts.
As proven at trial, on April 30, 2019, JACKSON and GRAHAM entered a T-Mobile reseller store in Brooklyn Park Minnesota, disguised in wigs, dust masks, and reflective vests. JACKSON was armed with an Accu-Tek AT380 .380 caliber semi-automatic pistol and GRAHAM was armed with a BB gun that resembled a real handgun. JACKSON and GRAHAM forced two employees at gunpoint into a back room. GRAHAM used zip ties to restrain the employees while JACKSON filled mesh bags with cell phones. JACKSON and GRAHAM fled the store with more than 70 cell phones and other devices. Officers with the Brooklyn Park Police Department responded almost immediately to the robbery and were able to locate and apprehend JACKSON and GRAHAM in the parking lot of a nearby business.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Brooklyn Park Police Department, Champlin Police Department, and Osseo Police Department, and Hennepin County Sheriff’s Office. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
Assistant U.S. Attorneys Amber M. Brennan and Justin A. Wesley tried the case.
Defendant Information:
RONALD JERMAINE JACKSON, 36
Plymouth, Minn.
Convicted:
- Hobbs Act robbery, 1 count
- Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
WILLIAM CHARLES GRAHAM, 37
Minneapolis, Minn.
Convicted:
- Hobbs Act robbery, 1 count
- Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two Members of Notorious Videogame Piracy Group “Team Xecuter” in CustodyRead the Press Release
Two leaders of one of the world’s most notorious videogame piracy groups, Team Xecuter, have been arrested and are in custody facing charges filed in U.S. District Court in Seattle.
Max Louarn, 48, a French national of Avignon, France, Yuanning Chen, 35, a Chinese national of Shenzhen, China, and Gary Bowser, 51, a Canadian national of Santo Domingo, Dominican Republic, were charged in a federal indictment unsealed today. The indictment alleges the defendants were leaders of a criminal enterprise that developed and sold illegal devices that hacked popular videogame consoles so they could be used to play unauthorized, or pirated, copies of videogames. The enterprise targeted popular consoles such as the Nintendo Switch, the Nintendo 3DS, the Nintendo Entertainment System Classic Edition, the Sony PlayStation Classic, and the Microsoft Xbox.
“These defendants were allegedly leaders of a notorious international criminal group that reaped illegal profits for years by pirating video game technology of U.S. companies,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “These arrests show that the department will hold accountable hackers who seek to commandeer and exploit the intellectual property of American companies for financial gain, no matter where they may be located.”
“These defendants lined their pockets by stealing and selling the work of other video-game developers – even going so far as to make customers pay a licensing fee to play stolen games,” said U.S. Attorney Brian Moran for the Western District of Washington. “This conduct doesn’t just harm billion dollar companies, it hijacks the hard work of individuals working to advance in the video-game industry.”
“Theft of intellectual property hurts U.S. industry, game developers and exploits legitimate gaming customers, all of which threaten the legitimacy of the commercial video game industry,” said Acting Special Agent in Charge Eben Roberts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Seattle. “We are committed to working with our international partners to find criminals like these who steal copyrighted material and bring cyber criminals to justice.”
“Imagine if something you invented was stolen from you and then marketed and sold to customers around the world. That is exactly what Team Xecuter was doing,” said Special Agent in Charge Raymond Duda of the FBI’s Seattle Field Office. “This is a perfect example of why the FBI has made the prevention of the theft of intellectual property a priority. These arrests should send a message to would-be pirates that the FBI does not consider these crimes to be a game.”
According to court documents, the Team Xecuter criminal enterprise is comprised of over a dozen individual members located around the world. These members include developers who exploit vulnerabilities in videogame consoles and design circumvention devices; website designers who create the various websites that promote the enterprise’s devices; suppliers who manufacture the devices; and resellers around the world who sell and distribute the devices.
The indictment alleges that due to the illegal nature of its business, Team Xecuter continuously sought to evade enforcement efforts by victim companies, financial institutions, and law enforcement. Notably, Team Xecuter attempted to protect its overall business by using a wide variety of brands, websites, and distribution channels, according to the indictment. From approximately June 2013 through August 2020, Team Xecuter used a variety of product names for its devices, such as the Gateway 3DS, the Stargate, the TrueBlue Mini, the Classic2Magic, and the SX line of devices that included the SX OS, the SX Pro, the SX Lite, and the SX Core.
According to the indictment, Team Xecuter at times cloaked its illegal activity with a purported desire to support gaming enthusiasts who wanted to design their own videogames for noncommercial use. However, the overwhelming demand and use for the enterprise’s devices was to play pirated videogames. To support this illegal activity, Team Xecuter allegedly helped create and support online libraries of pirated videogames for its customers, and several of the enterprise’s devices came preloaded with numerous pirated videogames. According to the indictment, Team Xecuter was so brazen that it even required customers to purchase a “license” to unlock the full features of its custom firmware, the SX OS, in order to enable the ability to play pirated videogames.
In September 2020, Louarn and Bowser were arrested abroad in connection with the charges in this case. The United States will seek Louarn’s extradition to stand trial in the United States. Bowser was arrested and deported from the Dominican Republic, and appeared today in federal court, in New Jersey.
Each defendant is charged with 11 felony counts, including conspiracy to commit wire fraud, wire fraud, conspiracy to circumvent technological measures and to traffic in circumvention devices, trafficking in circumvention devices, and conspiracy to commit money laundering.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated jointly by the FBI and HSI.
This case is being prosecuted by Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section Assistant U.S. Attorneys Francis Franze-Nakamura and Brian Werner of the Western District of Washington, with significant and ongoing assistance from the Justice Department’s Office of International Affairs. The department appreciates the significant cooperation and assistance provided by its foreign government counterparts and the Government of the Dominican Republic, and Interpol Dominicana.
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.
Twelve San Antonio-Based Texas Mexican Mafia Members and Associates Arrested -- Indicted on Federal Drug Trafficking ChargesRead the Press Release
In San Antonio, federal, state and local authorities have arrested twelve Texas Mexican Mafia (TMM) members and associates on federal drug charges in connection with a methamphetamine/heroin/cocaine trafficking operation in the San Antonio area, announced U.S. Attorney John F. Bash; Drug Enforcement Administration (DEA) Special Agent in Charge Steven S. Whipple, Houston Division; San Antonio Police Chief William McManus; and, Bexar County Sheriff Javier Salazar.
A federal grand jury this week returned an eight–count indictment against all twelve defendants (listed below) -- ten who were arrested today and two who were already in custody prior to today. Charges alleged in the indictment include: conspiracy to distribute a controlled substance; possession with intent to distribute a controlled substance; and, possession of a firearm by a convicted felon.
The indictment alleges that the defendants are responsible for distributing controlled substances from July 2020 to September 23, 2020.
During today’s arrests, authorities seized a total of 15 firearms, approximately 20 kilograms of suspected methamphetamine, quantities of cocaine and an undetermined amount of U.S. currency. Prior to today, this operation has resulted in the seizure of approximately 20 kilograms of methamphetamine, two kilograms of heroin and 18 firearms.
The defendants, with the exception of Vonallman, face lengthy mandatory federal prison terms upon conviction. All of the defendants remain in custody awaiting detention hearings in federal court beginning next week.
“The arrests made as part of Operation Last Dance in San Antonio and the surrounding areas conclude a comprehensive investigation by DEA and our law enforcement partners into the criminal activities of violent local street gangs to include members of the Mexican Mafia, Texas Syndicate, and their criminal associates,” said DEA Special Agent in Charge Steven S. Whipple, Houston Field Division. “This investigation reflects DEA’s commitment to make sure communities across Texas are safe and prevent gang members involved in drug distribution and other violent criminal activity from establishing a foothold in our neighborhoods.”
This indictment resulted from an Texas Anti-Gang Center (TAG) investigation conducted by San Antonio TAG member agencies including the DEA, FBI, San Antonio Police Department’s Gang Unit, Bexar County Sheriff’s Department, Bexar County District Attorney’s Office, Texas Department of Public Safety (DPS), Texas Department of Criminal Justice-Office of Inspector General, Homeland Security Investigations (HSI), U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The purpose of the TAG Center in San Antonio is to provide a one-stop information sharing environment for federal, state and local law enforcement to combat and target gang violence in and around San Antonio. The goal is to disrupt the command and control of criminal gangs through prevention, intervention and suppression of their unlawful enterprises.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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Name, Age, Residence, Statutory sentence
Donald Trevino (aka “Fluffy”, “D”, “Uno”, “Gordo”), 32, San Antonio, 25 years to life imprisonment
Rodolfo Villalobos (aka “Fluffy”, “Chubs”, “Oro”), 38, San Antonio, 15 years to life imprisonment
David Botello (aka “Torito”, “Bully”, “Bullyman”), 50, San Antonio, 15 years to life imprisonment
David Cortez Jr. (aka “Tazmanian”, “Taz”), 29, San Antonio, 10 years to life imprisonment
Moses Chavez (aka “Moe”, “Mighty Mouse”), 40, San Antonio, 10 years to life imprisonment
**Nicholas Neaves (aka “Snoopster”, “Snoop”), 25, San Antonio, 10 years to life imprisonment
Richard Agueros, III (aka “Herc”), 36, San Antonio, 10 years to life imprisonment
Robert Arzola Jr., 41, San Antonio, 10 years to life imprisonment
**Luz Del Carmen Velarde-Campos (aka “Prima”), 33, San Antonio, 10 years to life imprisonment
Aaron Muniz (aka “Primo”), 36, San Antonio, 10 years to life imprisonment
Isabel Hernandez-Garcia, 35, San Antonio, 0 years to life imprisonment
Joseph Lloyd Vonallman (aka “Jv”), 36, San Antonio, up to 20 years imprisonment** Already in custody prior to today
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.
Troy Father and Son Indicted for Heroin TraffickingRead the Press Release
ALBANY, NEW YORK – Carlos Leon, age 62, and his son Jose Leon Roldan, age 41, both of Troy, New York, appeared in court this week on a charge of conspiring to distribute 1 kilogram or more of heroin.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and Rensselaer County Sheriff Pat Russo.
The indictment also charges that on March 30, 2020, Carlos Leon possessed and intended to distribute quantities of heroin, cocaine and oxycodone, and unlawfully possessed a Ruger handgun and Glock handgun as a felon. The charges in the indictment are merely accusations. Each defendant is presumed innocent unless and until proven guilty.
A third man, Mario Figueroa-Portalatin, age 42, of Troy, pled guilty on August 11, 2020 to conspiring to distribute 1 kilogram or more of heroin.
Carlos Leon, who has been in custody since March 30, was arraigned yesterday on the indictment. Jose Leon Roldan appeared today before United States Magistrate Judge Christian F. Hummel, and was ordered detained pending a hearing on Monday. On the drug conspiracy charge, each man faces at least 10 years and up to life in prison, as well as post-release supervision of at least 5 years and up to life. Carlos Leon also faces up to 20 years in prison on the drug possession charge, and up to 10 years in prison on the firearms charge. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
A separate indictment charges Anthony Leon, age 34, of Watervliet, New York, with distributing cocaine on February 26, 2020, and possessing and intending to distribute cocaine on March 30. Anthony Leon is the son of Carlos Leon, and the brother of Jose Leon Roldan. The charges in the indictment are merely accusations. Anthony Leon is presumed innocent unless and until proven guilty. Anthony Leon faces up to 20 years in prison if convicted. He appeared today before Judge Hummel and was ordered detained pending a hearing on Monday.
These cases are being investigated by DEA Albany, the Rensselaer County Sheriff’s Office, and the Watervliet Police Department, and are being prosecuted by Assistant U.S. Attorney Michael Barnett.
Three Defendants Charged in Multi-Million Dollar Medicare Fraud SchemeRead the Press Release
BOSTON – Three individuals were charged today in connection with a multi-million dollar Medicare fraud scheme, bringing the total number of defendants to six.
Nathan LaParl, 34, of Boca Raton, Fla., and Talia Alexandre, 30, of Palm Springs, Fla., were each charged by Information with one count of receiving kickbacks in connection with a federal health care program. LaParl and Stefanie Hirsch, 51, of Los Angeles, Calif., were also charged by Information with violating the HIPAA statute.
According to charging documents, LaParl and Alexandre sold Medicare patients’ personal and medical data to Juan Camilo Perez Buitrago. LaParl and Alexandre worked with foreign call centers to contact Medicare patients to ask if they were interested in durable medical equipment (DME) such as arm, back, knee and shoulder braces “at little to no cost.” The call centers collected demographic and insurance information from Medicare patients, which LaParl and Alexandre sold to Perez. Together, LaParl and Alexandre received more than $1.6 million from Perez for the patient data. Perez Buitrago used that patient data to submit more than $109 million in false and fraudulent claims, submitting claims for DME that was not prescribed, not necessary, and, in many instances, never requested or received.
To perpetuate the scheme, LaParl checked Medicare patients’ insurance eligibility by improperly accessing a patient eligibility tool provided by Hirsch. Hirsch owned EI Medical, Inc., a Medicare-enrolled wheelchair and scooter repair company that qualified for access to a health care clearinghouse that contains Medicare patients’ personal, medical and insurance information. Hirsch improperly gave LaParl access to that clearinghouse and charged him about $0.25 per patient eligibility check. Using Hirsch’s credentials, LaParl accessed the personal and medical data of more than 350,000 patients.
Perez was charged in July 2020 and is scheduled to plead guilty on Oct.5, 2020. Two other defendants, Jessica Jones and Elizabeth Putulin, were charged on Sept. 29, 2020 and have agreed to plead guilty.
United States Attorney Andrew E. Lelling; Johnnie Sharp Jr., Special Agent in Charge of the Federal Bureau of Investigation, Birmingham Field Division; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Boston Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
Third Jacksonville Woman Pleads Guilty in Scheme to Defraud Retail MerchantsRead the Press Release
Jacksonville, Florida – Sierra Marvette Townsend (33, Jacksonville) has pleaded guilty to conspiracy to commit wire fraud. She faces a maximum penalty of 20 years in federal prison and payment of restitution to her victims. A sentencing date has not yet been set.
According to court documents, Townsend and others traveled to north Florida, Georgia, and South Carolina to commit fraud involving HomeGoods, TJ Maxx, and Marshalls. Over the course of multiple years, Townsend used five different identities when making fraudulent returns at these stores. These fraudulent returns resulted in the stores issuing gift cards to Townsend and others worth thousands of dollars. After obtaining the store gift cards, Townsend and others typically sold or pawned them.
On February 18, 2020, co-defendant Katrina Monique Morris (39, Jacksonville) pleaded guilty to conspiracy to commit wire fraud. On July 30, 2020, co-defendant Lashundra Monyett Gibbs (38, Jacksonville) pleaded guilty to conspiracy to commit wire fraud. Morris and Gibbs are both scheduled to be sentenced on December 2, 2020.
This case was investigated by the United States Secret Service - Jacksonville Field Office, with assistance from the Altamonte Springs Police Department. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
The Department of Justice Files Statement of Interest in Capitol Hill Baptist Church's Effort to Practice Its Faith During COVID-19Read the Press Release
WASHINGTON - The Department of Justice today filed a statement of interest in federal district court in Washington, D.C., arguing the Constitution and federal law require the District of Columbia to accommodate Capitol Hill Baptist Church’s effort to hold worship services outdoors, at least to the same extent the District of Columbia allows other forms of outdoor First Amendment activity, such as peaceful protests.
The statement of interest was filed in Capitol Hill Baptist Church v. Bowser, a case challenging the District of Columbia’s refusal to allow outdoor worship because of the city’s COVID-19 restrictions. The suit challenges the permit denial under the Free Speech and Free Exercise Clause of the First Amendment, and the Religious Freedom Restoration Act (RFRA). The suit alleges that while places of worship are limited to 100 people at outdoor worship services, these limits do not apply to, among other things, outdoor protests and rallies accommodating thousands.
“The right to free exercise of religion and the right to protest are both enshrined in the First Amendment of the Constitution. We are a nation dedicated to freedom of conscience and freedom of expression. The District of Columbia has, unfortunately, neglected these rights,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division. “The Department of Justice is committed to defending both of these fundamental freedoms and in supporting all Americans' rights to worship as they choose.”
“One of the most foundational rights protected by the Bill of Rights is the free exercise of religion,” said Acting U.S. Attorney Michael Sherwin for the District of Columbia. “The Department of Justice is committed to upholding all the civil rights protected under the First Amendment, be it peaceable assembly in protest or practicing faith.”
Capitol Hill Baptist Church is a church of more than 850 members with a strong religious conviction that it should meet in person as a complete body for worship each Sunday. It therefore sought a permit to hold worship outdoors in excess of the 100-person limit, which the city denied.
The United States’ brief explains there is no Constitutional or statutory basis for allowing protests and rallies attended by thousands of people, but silencing religious worship. The brief also explains the city bears a high burden of proof to justify its actions under the First Amendment and RFRA because its actions impose a “substantial burden” on religious exercise, as the church has shown here.
The statement of interest is part of Attorney General William P. Barr's initiative, announced April 27, directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review governmental policies around the country to ensure that civil liberties are protected during the COVID-19 pandemic.
Texas man sentenced to prison for trafficking marijuana, cocaine and possessing firearmsRead the Press Release
MISSOULA — A Texas resident to admitted to drug trafficking and firearms crimes after a traffic stop near Bozeman led to a trooper finding marijuana, cocaine and guns in his vehicle was sentenced today to five and one half years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Anthony Jacob Lugo, 32, of Halingen, Texas, pleaded guilty in January to possession with intent to distribute marijuana and cocaine and possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Dana L. Christensen presided. Lugo was detained.
In court records filed in the case, the prosecution said a Montana Highway Patrol trooper pulled over Lugo's pickup truck on Interstate 90 near Bozeman on Aug. 28, 2017. The trooper detected a strong odor of raw marijuana coming from the cab. When the trooper had Lugo step out of the vehicle, he saw a pistol in a holster on the driver's seat. A K9 drug dog indicated on the truck, which was seized pending a search warrant.
During a search of the truck, law enforcement found jars of marijuana and cocaine, a drug ledger, a loaded .45-caliber pistol and a short-barreled rifle. Lugo admitted to owning the firearms.
Assistant U.S. Attorney Tim Racicot and former Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by Missouri River Drug Task Force and the Montana Highway Patrol.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Tazewell Man to Serve 36 Months in Prison for His Role in Money Laundering ConspiracyRead the Press Release
ABINGDON, Va. – John Howard “Junior” Boothe, Jr., the owner of C & A Trucking, was sentenced in U.S. District Court in Abingdon to 36 months in federal prison after having previously pled guilty to conspiring to commit money laundering. Acting United States Attorney Daniel P. Bubar made the announcement today.
According to evidence presented at court hearings, Boothe, 53, of Tazewell, Va., was part of a conspiracy involving Larry Wayne Price, Jr., in which Boothe laundered over $6 million of Price’s fraudulently obtained proceeds through his company. Boothe submitted false invoices as part of the scheme. Larry Wayne Price, Jr., has pled guilty in United States District Court in Montana and is awaiting sentencing.
The investigation of the case was conducted by the Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, Tazewell County Sheriff’s Office, and Russell County Sheriff’s Office. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Statement from Assistant Attorney General Eric Dreiband and Michigan U.S. Attorneys on Michigan Supreme Court Ruling Striking Down Governor Whitmer’s Pandemic-Related OrdersRead the Press Release
Assistant Attorney General for Civil Rights Eric Dreiband, U.S. Attorney Matthew Schneider for the Eastern District of Michigan, and U.S. Attorney Andrew Birge for the Western District of Michigan issued the following statements:
“Today’s decision by the Michigan Supreme Court is a victory for all Michiganders and the rule of law,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The United States Constitution guarantees a republican form of government to every state in our free country. The Constitution does not permit any public official unlawfully to restrict our liberty. All public officials must respect the right of the people to govern themselves at all times, especially during a crisis.”
“On June 23, we wrote to Governor Whitmer and urged her to work cooperatively with the Michigan Legislature to reopen Michigan safely and address the multitude of concerns that Michiganders have had about the restrictions on their liberties,” said United States Attorney Matthew Schneider. “The best solutions for preserving our liberties and keeping us safe involve listening to the people of Michigan, and this decision by the Michigan Supreme Court upholding the rule of law now allows that to happen.”
“While the Governor has had the public’s health interests at heart, this decision underscores the importance of a legislature to the legitimacy of restrictions on liberty,” said United States Attorney Andrew Birge. “I urge the Governor and Michigan legislators to work together going forward in responding to this pandemic so that we stay safe and free.”
Background
On June 23, 2020, Assistant Attorney General Dreiband, U.S. Attorney Schneider, and Birge wrote to Governor Whitmer to express their concerns about the Governor’s restrictions on the civil rights and liberties of the People of Michigan as part of her response to the COVID-19 pandemic: “We write in the spirit of constructive cooperation to suggest greater cooperation with the Michigan legislature. Michiganders have raised numerous good-faith concerns about the orders you have issued—about whether they are authorized under state law, infringe on constitutional rights, or draw arbitrary and irrational distinctions among authorized and unauthorized economic activities. Working with the state legislature to reopen Michigan safely will relieve the public of concerns about the EMA and ensure greater representation of the people in matters that have serious consequences for their liberty. Such cooperation may also help identify any potential constitutional concerns with existing and any future orders. Further, and perhaps most importantly, working with the state legislature will affirm that Michigan and its public officials remain committed to the ‘Republican Form of Government’ mandated by the United States Constitution. U.S. Const., Art. IV, §4.”
On May 29, 2020, the Department of Justice filed a statement of interest in a Michigan federal court in support of a lawsuit filed by seven businesses challenging the restrictions imposed by Governor Gretchen Whitmer in response to the COVID-19 pandemic. That statement of interest explained that the governor’s COVID-19 orders, however well-intentioned, raised constitutional concerns by imposing what appeared to be arbitrary and unreasonable limits on how and ultimately whether certain businesses could operate in Michigan relative to other similarly situated businesses. The statement of interest also explained that the federal Constitution provides for a cohesive national economy for all 50 states and all Americans and that the governor’s COVID-19 orders may be unduly interfering with interstate commerce.
Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, and Assistant Attorney General Dreiband, are overseeing the Justice Department’s effort to monitor state and local policies relating to the COVID-19 pandemic.
The federal case is Signature Sotheby’s International Realty, Inc., et al. v. Whitmer, No. 1:20-00360 and additional information about the department’s May 29 statement of interest can be found here: https://www.justice.gov/opa/pr/department-justice-files-statement-interest-support-businesses-suffering-arbitrary-and
South Carolina Man Sentenced to 36 Months for Mail Fraud Conspiracy, Theft from Employee Benefit Plans, and Unlawful Storage of Hazardous WasteRead the Press Release
LEXINGTON, Ky. - A South Carolina man, Aaron Micah Jamison, 45, who formerly resided in Lexington, was sentenced in federal court on Thursday, September 24, to 36 months in prison, by Chief U.S. District Judge Danny Reeves, for theft from an employee benefits plan, conspiracy to commit mail fraud, and unlawful storage of hazardous waste.
According to his plea agreement, Jamison was the CEO of Micah Group, LLC, which offered construction and remediation services to the energy and environmental sectors. Jamison admitted that from March 4, 2016 to October 30, 2016, he knowingly failed to remit employees’ 401(k) contributions that had been withheld from their paychecks, totaling over $30,000.00, and diverted them for his personal use and the use of his businesses. Jamison also admitted that from April 2, 2017 through April 28, 2017, he failed to remit withheld pre-tax health contributions of the Micah Group’s employees to its health insurer, totaling $4,843.73.
The Micah Group also performed abandonment of ground water monitoring wells at numerous sites around the state of Kentucky, including gas stations, convenience stores, and other private property, and sought payment for such work from the Kentucky Energy and Environment Cabinet. On multiple occasions, Jamison admitted to signing documents falsely representing that the wells had been properly abandoned in order to bring income to the Micah Group and to ensure that him and other employees were paid. At sentencing, the court determined that between 2013 and 2017, the false representations made by Jamison and his co-conspirators caused approximately $640,000 in loss to the state.
Finally, Jamison admitted to unlawfully storing hazardous waste at Micah Group’s premises at various points in time between January 2016 and December 2017.
Jamison pleaded guilty in January 2020.
“The defendant stole from his employees and lied to state authorities to further his own interests,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “His conduct not only financially harmed his employees, and caused the state to spend money to clean up his mess, but he also potentially put the public at risk by failing to properly monitor ground water wells and store hazardous materials. I commend the cooperation and work of the investigative agencies involved, as their efforts helped hold the defendant accountable for his actions.”
"The defendant was paid to transport hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA). Mr. Jamison chose to illegally store the hazardous waste and place the public, and environment at risk” said Special Agent in Charge Charles Carfagno of the EPA’s Criminal Investigation Division in Atlanta, GA.
"Criminal acts like this directly impact participants in employee benefit plans by compromising their hard-earned benefits and eroding confidence in those chosen to manage their trust. The U.S. Department of Labor’s Employee Benefits Security Administration is committed to ensuring the integrity of employee benefit programs,” said Employee Benefits Security Administration Regional Director Joe Rivers, in Cincinnati, Ohio.
Under federal law, Jamison must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for 3 years. In addition, Jamison was ordered to pay $640,638.31 in restitution.
U.S. Attorney Duncan, SAC Carfagno, and Director Rivers made the announcement.
The investigation was pursued by the United States Secret Service, Environmental Protection Agency-Criminal Investigation Division and Office of Inspector General, and the United States Department of Labor with assistance by the Kentucky Energy and Environment Cabinet. The United States was represented by Assistant U.S. Attorneys Emily Greenfield and Kate Anderson.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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South Bend, Indiana Man Sentenced to 7 Years in PrisonRead the Press Release
SOUTH BEND –On October 1, 2020, Cody Miller, 28, of South Bend, Indiana was sentenced by United States District Court Judge Damon R. Leichty upon his plea of guilty of possession with intent to distribute more than 50 grams of methamphetamine, announced U.S. Attorney Kirsch.
Mr. Miller was sentenced to 84 months in prison followed by 4 years of supervised release.
According to documents filed in this case, on July 24, 2019, agents executed a federal search warrant on Mr. Miller’s residence where he possessed approximately 160 grams of methamphetamine that he intended to sell.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with the assistance of the Indiana State Police, Mishawaka Police Department, and Elkhart County Intelligence and Covert Enforcement. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
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Significant prison sentence wraps up prosecutions in massive south Georgia drug trafficking schemeRead the Press Release
BRUNSWICK, GA: A convicted drug trafficker was sentenced to more than 15 years in federal prison Friday, wrapping up a federal prosecution that indicted 36 defendants in a major coast-to-coast narcotics distribution network.
Lashadre Smith, a/k/a “Shafa,” a/k/a “Shaffa Billythekid Smith,” 30, of Waycross, Ga., was sentenced to 190 months in prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Smith also must serve five years of supervised release after completion of his prison terms. There is no parole in the federal system.
The final defendant, Phillip Johnson, a/k/a “Gunplay,” 29, of Waycross, awaits sentencing after pleading guilty to Conspiracy to Possess with Intent to Distribute Five Grams or More of Methamphetamine. The remaining defendants in the investigation previously pled guilty and were sentenced to prison terms of up to 268 months.
“Not only did this wide-ranging investigation and prosecution shut down major meth distributors in the Waycross area and beyond, it also has removed from the streets three dozen criminals and gang members with a sickening total of nearly 70 felony convictions on their substantial records,” said U.S. Attorney Christine. “The many law enforcement agencies who risk their lives to protect our communities from such career criminals deserve our gratitude and unwavering support.”
The defendants, identified during a year-long undercover investigation, were named in two separate federal indictments in August 2017, alleging a conspiracy that spread from Georgia, to Florida, and to California to import methamphetamine and other drugs into the south Georgia area. Led by the FBI, the joint federal and local investigation into violent gang and drug trafficking activities in Ware, Pierce and Glynn counties led to the seizure of kilos of methamphetamine along with quantities of cocaine and marijuana, thousands of dollars in cash and multiple firearms.
“After nearly a year-long investigation and two years of court procedures we can assure citizens of Waycross and south Georgia counties, they are much safer because these criminals and their drugs are off their streets,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The success could not have been achieved without our federal, state and local partners who are part of the FBI’s Coastal Georgia Safe Streets Violent Gang Task Force.”
Also involved in the investigation were the Waycross Police Department and the Ware County Sheriff’s Office, with assistance from the Glynn County Police Department, the Brunswick Police Department, the Blackshear Police Department, the U. S. Marshals Service, the U.S. Probation Office and the Georgia Department of Community Supervision.
The cases were prosecuted for the United States by Assistant U.S. Attorney Jennifer Kirkland and Assistant U.S. Attorney and Organized Crime Drug Task Force (OCDETF) Coordinator Marcela C. Mateo.
Serial sex offender sentenced to 25 years for operating a child pornography chat groupRead the Press Release
GAINESVILLE, Ga. - Terence Dewayne Dixon has been sentenced for running an online chat group that he named “House of 1000 Littles.” The chat group was dedicated to sharing child pornography and discussing child molestation. At the time, Dixon had already been convicted in 2001 of the aggravated sexual assault of a nine-year-old child.
“Dixon disseminated horrific images of child pornography to members of his online chat group,” said U.S. Attorney Byung J. “BJay” Pak. “He also encouraged others to share child pornography that fueled a demand for the violent exploitation of children. This lengthy prison sentence serves as some recompense for the irreparable harm he caused to so many children and their families.”
“The monsters that visited this site and found pleasure in exploiting innocent children now have one less place to sow their evil seeds and one less organizer to help them do it. Dixon’s sentencing is warning to those who revel in and peddle this filth,“ said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta and its state and local partners are hunting down these criminals that look to steal the innocence of our youth.”
“For this defendant to take the images of innocent children and pass them around in order to exploit them and use them to arouse in a sexual nature is absolutely despicable. The GBI is committed to working with our partners to stop this criminal behavior and protect our young ones,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Pak, the charges and other information presented in court: As early as November 2017, Terence Dixon created an online chat group and named it “House of 1000 Littles.” Members of Dixon’s group discussed how they were sexually aroused by children and sent one another links to child pornography files on a daily basis until October 2018.
On a single day in January 2018, for example, Dixon shared 21 links containing child pornography with the group. On another date, in February 2018, he bragged that his shared link contained 5,000 videos of child pornography. Investigators identified the majority of his chat group living all across the United States, including in the states of California, Georgia, Illinois, Louisiana, Michigan, New York, Ohio, and Tennessee.
Terence Dewayne Dixon, also known as “Devilman Crybaby”, 38, of Houston, Texas, has been sentenced to 25 years in prison to be followed by a lifetime of supervised release. He was ordered to pay $12,000 in restitution. He must also register as a sex offender upon release. Dixon was convicted of conspiracy to advertise child pornography on July 23, 2020, after he pleaded guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Georgia Bureau of Investigation.
Assistant U.S. Attorney Jennifer Keen prosecuted the case.
This case was brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Saratoga County Man Charged with Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Daniel Porrazzo, a/k/a “lickndipinu,” age 51, of Stillwater, New York, was arraigned today on an indictment charging him with possession of child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
According to the indictment, on or about June 2, 2016, Porrazzo possessed multiple images of child pornography on two laptop computers. The child pornography included depictions of the sexual abuse of children under age 12. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Porrazzo faces a maximum term of imprisonment of 20 years, a mandatory term of supervised release of 5 years and up to life, and a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Porazzo would also have to register as a sex offender.
Porrazzo is detained pending a detention hearing scheduled before United States Magistrate Judge Christian F. Hummel on Monday, October 5, 2020.
This case is being investigated by HSI and is being prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s’ offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
San Mateo Resident Charged with Receipt of Child PornographyRead the Press Release
SAN FRANCISCO – Adrian Kyle Benjamin made an initial appearance today in federal court on a criminal complaint for receipt of child pornography, announced David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. Benjamin made his initial appearance in federal court today before U.S. Magistrate Judge Kandis A. Westmore.
According to the complaint filed September 30, 2020, and unsealed today, between July 2018 and December 2019, Benjamin, 24, of San Mateo, solicited and received sexually explicit videos constituting child pornography from at least three female minor victims between the ages of 14 and 15. In March 2020, FBI executed a search warrant at Benjamin’s residence and found sexually explicit videos of each of the three minor victims saved on Benjamin’s hard drive in folders labeled with each victim’s name. Benjamin was aware of the minor victims’ ages and engaged in enticement and grooming techniques to solicit child pornography from at least one of the victims.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law. Benjamin is charged with receipt of child pornography, in violation of 18 U.S.C. § 2252(a)(2). If convicted of the charge, Benjamin faces a maximum statutory sentence of 20 years in prison, a lifetime of supervised release, and a $250,000 fine. The charge also carries a mandatory minimum sentence of five years in prison and five years of supervised release.
Benjamin’s next court appearance is scheduled for October 8, 2020, at 10:30, before U.S. Magistrate Judge Nathanael Cousins, for a detention hearing.
Assistant U.S. Attorneys Molly K. Priedeman and Mohit Gourisaria are prosecuting the case with the assistance of Alexa Leisure. The prosecution is the result of an investigation by the FBI.
San Diego Laboratory Phamatech Agrees to Pay $3 Million to Settle Fraudulent Medicare Billing CaseRead the Press Release
Assistant U. S. Attorney Paul Starita (619) 546-7701
NEWS RELEASE SUMMARY – September --, 2020
San Diego – San Diego-based Phamatech, Inc. and its CEO and founder, Tuan Pham, have agreed to pay $3,043,484 to resolve allegations that they violated the False Claims Act by submitting false claims to Medicare for laboratory drug-testing services. Phamatech is a medical technology company that manufactures diagnostic devices and provides laboratory testing including for drugs and alcohol.
The United States alleged that Phamatech improperly paid a medical clinic to induce it to refer orders for laboratory drug-testing to Phamatech and consequently received government reimbursement for those tests in violation of the federal Anti-Kickback Statute and the False Claims Act. Specifically, the United States alleged that Phamatech paid kickbacks to Imperial Valley Wellness (“IVW”), a medical practice group, to induce IVW to order laboratory testing for its patients enrolled in Medicare. For about two years, Phamatech allegedly paid IVW a per-specimen fee in exchange for IVW’s referral of urine samples from Medicare beneficiaries. The government further alleged that many of the samples that IVW referred to Phamatech for testing under this arrangement were not medically necessary and therefore not lawfully eligible for Medicare reimbursement.
“We are committed to protecting the integrity of the Medicare program and ensuring accountability under the False Claims Act. This settlement meets these goals,” said U.S. Attorney Robert Brewer. Brewer praised Assistant U.S. Attorney Paul Starita and federal agents from FBI and Health and Human Services, Office of Inspector General, for their excellent work on this case.
“Paying to secure business increases costs—ultimately, leaving taxpayers to pick up the bill,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “With our law enforcement partners, we will continue pursuing potential threats to our health programs.”
“The FBI is committed to rooting out fraud within the healthcare industry and works with the U.S. Attorney’s Office and law enforcement partners to find a just result in each case,” said FBI SAC Suzanne Turner. “We urge anyone with information about suspected healthcare fraud to contact their local FBI Field Office.”
The False Claims Act allegations being resolved were originally brought in a lawsuit filed by a former employee of Phamatech, John Polanco, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of fraud against the government to bring suit on behalf of the government and to share in any recovery. Mr. Polanco will receive $517,392 from the settlement proceeds.
The investigation was conducted by the U.S. Attorney’s Office for the Southern District of California, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. This case is captioned United States, et al., ex rel. John Polanco v. Phamatech, Inc. and Tuan Pham, 16CV1835-L-NLS, and the matter was handled by Assistant U.S. Attorney Paul Starita of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
DEFENDANTS
Phamatech, Inc. San Diego, CA
Tuan Pham San Diego, CA
AGENCIES
Federal Bureau of Investigation
Health and Human Services, Office of Inspector General
Statement from Assistant Attorney General Eric Dreiband and Michigan U.s. Attorneys on Michigan Supreme Court Ruling Striking Down Governor Whitmer’s Pandemic-Related OrdersRead the Press Release
WASHINGTON - Assistant Attorney General for Civil Rights Eric Dreiband, U.S. Attorney Matthew Schneider for the Eastern District of Michigan, and U.S. Attorney Andrew Birge for the Western District of Michigan issued the following statements:
“Today’s decision by the Michigan Supreme Court is a victory for all Michiganders and the rule of law,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The United States Constitution guarantees a republican form of government to every state in our free country. The Constitution does not permit any public official unlawfully to restrict our liberty. All public officials must respect the right of the people to govern themselves at all times, especially during a crisis.”
“On June 23, we wrote to Governor Whitmer and urged her to work cooperatively with the Michigan Legislature to reopen Michigan safely and address the multitude of concerns that Michiganders have had about the restrictions on their liberties,” said United States Attorney Matthew Schneider. “The best solutions for preserving our liberties and keeping us safe involve listening to the people of Michigan, and this decision by the Michigan Supreme Court upholding the rule of law now allows that to happen.”
“While the Governor has had the public’s health interests at heart, this decision underscores the importance of a legislature to the legitimacy of restrictions on liberty,” said United States Attorney Andrew Birge. “I urge the Governor and Michigan legislators to work together going forward in responding to this pandemic so that we stay safe and free.”
Background
On June 23, 2020, Assistant Attorney General Dreiband, U.S. Attorney Schneider, and Birge wrote to Governor Whitmer to express their concerns about the Governor’s restrictions on the civil rights and liberties of the People of Michigan as part of her response to the COVID-19 pandemic: “We write in the spirit of constructive cooperation to suggest greater cooperation with the Michigan legislature. Michiganders have raised numerous good-faith concerns about the orders you have issued—about whether they are authorized under state law, infringe on constitutional rights, or draw arbitrary and irrational distinctions among authorized and unauthorized economic activities. Working with the state legislature to reopen Michigan safely will relieve the public of concerns about the EMA and ensure greater representation of the people in matters that have serious consequences for their liberty. Such cooperation may also help identify any potential constitutional concerns with existing and any future orders. Further, and perhaps most importantly, working with the state legislature will affirm that Michigan and its public officials remain committed to the ‘Republican Form of Government’ mandated by the United States Constitution. U.S. Const., Art. IV, §4.”
On May 29, 2020, the Department of Justice filed a statement of interest in a Michigan federal court in support of a lawsuit filed by seven businesses challenging the restrictions imposed by Governor Gretchen Whitmer in response to the COVID-19 pandemic. That statement of interest explained that the governor’s COVID-19 orders, however well-intentioned, raised constitutional concerns by imposing what appeared to be arbitrary and unreasonable limits on how and ultimately whether certain businesses could operate in Michigan relative to other similarly situated businesses. The statement of interest also explained that the federal Constitution provides for a cohesive national economy for all 50 states and all Americans and that the governor’s COVID-19 orders may be unduly interfering with interstate commerce.
Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, and Assistant Attorney General Dreiband, are overseeing the Justice Department’s effort to monitor state and local policies relating to the COVID-19 pandemic.
The federal case is Signature Sotheby’s International Realty, Inc., et al. v. Whitmer, No. 1:20-00360 and additional information about the department’s May 29 statement of interest can be found here: https://www.justice.gov/opa/pr/department-justice-files-statement-interest-support-businesses-suffering-arbitrary-and
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Richland Business Owner Sentenced to More Than 28 Years in Federal Prison for Falsifying Human Clinical Research TrialsRead the Press Release
Richland – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Sami Anwar, age 41, of Richland, Washington, was sentenced today by Senior District Judge Edward F. Shea to a 340-month term of imprisonment for falsifying human clinical research trials in connection with a fraud scheme directed by Mr. Anwar.
After a three-week jury trial in Richland in November 2019 before Judge Shea, a federal jury found Mr. Anwar guilty of 47 counts of wire fraud, mail fraud, conspiracy, fraudulently obtaining controlled substances, and furnishing false material information to the Drug Enforcement Administration.
According to court documents and evidence presented during the trial and at sentencing, between 2013 and 2018 Sami Anwar directed and carried out a conspiracy to have his companies fraudulently pose as legitimate human clinical research trial sites and provide of false clinical research trial data regarding drug safety and drug efficacy to dozens of drug companies and, through them, the Food and Drug Administration (FDA). The false clinical research data that Sami Anwar injected into the public health system included safety data on dozens of different drugs and medicines designed to treat a wide variety of diseases and conditions including, but not limited to, heart disease, diabetes, asthma, pediatric illnesses, adolescent smoking, cirrhosis, scabies, depression, and opioid addiction to name just a few, according the evidence presented at trial. The evidence at trial indicated that Sami Anwar and his companies received over $5.6 million dollars from the fraud.
United States Attorney Hyslop said, “Every day, Americans rely on the data from clinical research trials to keep us safe from deadly diseases and dangerous side effects. The ongoing COVID-19 pandemic, and the vital ongoing clinical trials currently being conducted with regard to therapeutic treatments and vaccines, remind us every day how critical clinical research trials are and how important it is that that they be conducted honestly and reliably. Injecting fraudulent and corrupt data into the system is an egregious breach of the trust and faith that we all place in those who perform these vitally important trials.” Hyslop continued, “Based on the evidence presented at sentencing, and the jury’s unanimous verdict at trial, Mr. Anwar profited from his blatant disregard for patient safety by running his fraudulent enterprise through fear and intimidation.”
According to court documents and the evidence presented at trial and at sentencing, Sami Anwar, who is not a licensed medical doctor, would pose as a doctor and forge the signatures of the doctors he employed. In addition, over a dozen former employees of Sami Anwar testified that he directly instructed them to assist him in committing the fraud including falsifying medical records and data to admit dozens of ineligible research subjects; falsifying research data including electrocardiograms and vital signs, obtaining blood specimens from Sami Anwar’s employees or stealing them from unwitting medical patients of his medical center, disposing of study medications by shooting them down the drain and then falsely recording them as having been properly injected as required, dangerously hoarding opioids intended to be dispensed to study subjects, and fabricating required subject diary entries.
According to the evidence presented at trial and at sentencing, Sami Anwar not only directed the fraud but engaged in threats, retaliation, and intimidation in order to hide his crimes from drug companies, the FDA, which regulates human clinical trials in the United States, and law enforcement. According to evidence presented at trial and at sentencing, numerous former employees of Sami Anwar testified that Anwar filed false police reports, made false allegations to the Washington State Department of Health, the FDA, threatened them at their homes, at their places of work, slashed their tires, and stalked them in order to prevent them from cooperating with the authorities.
In sentencing Mr. Anwar above the recommended sentencing guideline range, Judge Shea remarked that “the extent of the fraud is astounding” and noted that Mr. Anwar’s conduct “endangered countless lives.” Judge Shea further stated that Mr. Anwar’s “greed knew no limit” and that he was “a vengeful human being who sought to punish anyone who threatened [his] scheme.”
Mr. Anwar and his companies were also ordered to pay $1,890,550.10 in restitution to the victims of the fraud, to forfeit $5,648,786.69 as proceeds of the fraud, and to pay special penalty assessments of $24,300. Mr. Anwar was also sentenced to three years of supervised release following completion of his custodial sentence, with special conditions to protect his victims and former employees.
Mr. Hyslop further stated “I wish to especially commend the excellent work done by the investigative personnel with the Seattle and Spokane resident offices of the Drug Enforcement Administration’s Diversion Group. Their exceptional investigative work made this result possible. We will continue to work with our law enforcement partners to ensure that those who continue to abuse this trust and undermine our health care system are brought to justice.”
“Justifiably, Sami Anwar will be sitting behind bars for a very long time, thinking about his despicable actions that betrayed the American public and all the healthcare heroes who conduct lifesaving clinical trials every day,” stated Acting Special Agent in Charge Cam Strahm. “I commend the hard work of the DEA Diversion Investigators who stopped Anwar from further injecting fraudulent data into the public health system. This investigative action in Eastern Washington is part of a strategy in addressing illicit opioid access and diversion, currently endangering our communities.”
This case was investigated by the Drug Enforcement Administration, Diversion Group’s Seattle Field Division and Spokane District Office. The case was prosecuted by Dan Fruchter, Tyler H.L. Tornabene, and Brian Donovan, Assistant United States Attorneys for the Eastern District of Washington. The case caption is No. 4:18-cr-5064-EFS (E.D. Wash.).
Registered Nurse Pleads Guilty to Drug DiversionRead the Press Release
BOSTON – A Dighton registered nurse pleaded guilty today in federal court in Boston to drug tampering.
Marietta Strickland, 61, pleaded guilty to one count of tampering with a consumer product, specifically the Schedule II controlled substance oxycodone, which is used for pain relief. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 19, 2021. Strickland was charged by Information in June 2020.
While working as a registered nurse at Dighton Care and Rehabilitation Center, Strickland tampered with three blister card packages of oxycodone prescribed to an 89-year-old hospice patient who suffered from Alzheimer’s disease, severe dementia and breast cancer. To avoid detection, Strickland replaced the stolen oxycodone pills with other prescription drugs disguised to look like oxycodone. As a result of Strickland’s tampering, the victim was deprived of her prescribed oxycodone for a month and ingested at least 77 unnecessary prescription tablets.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Acting Commissioner Margaret Cooke, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Elysa Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
Ponte Vedra Man Pleads Guilty to Multiple Counts of Wire Fraud for Investment SchemeRead the Press Release
Jacksonville, Florida – Robert H. Hendricks (64, Ponte Vedra) has pleaded guilty to four counts of wire fraud. He faces a maximum penalty of 20 years in federal prison for each count. Hendricks has agreed to pay at least $2,682,924.34 in restitution to his victims. A sentencing date has not yet been set.
According to the
plea agreement , Hendricks was a licensed real estate broker in the Middle District of Florida. Hendricks told two of his victims, a husband and wife, who were his longtime friends, that he had been successful with commercial property development and needed money for another commercial property deal in central Florida. In October 2014, the husband paid Hendricks $300,000 as an investment into two commercial property ventures. Hendricks never used the funds for an investment. Instead, he used the funds for his personal benefit.On March 21, 2016, Hendricks received a wire transfer of $200,000 from another victim, who was also a friend. He told the victim that Wawa, a chain of convenience stores and gas stations, was establishing locations in Jacksonville and offered the victim a deal for four to five stores. The victim believed that three of the five locations were completed based, in part, on a contract from Hendricks that referenced a Wawa store at the St. Johns Town Center (SJTC), and other representations made by Hendricks. However, the store at the SJTC had already been built at the time of the investment. Hendricks was not involved in that Wawa project or any other Wawa deal involving the SJTC.
On April 18, 2016, Hendricks received a wire transfer of $490,000 from a lender for a property he had obtained from a longtime friend through misrepresentations. The victim agreed to temporarily transfer the property to Hendricks to enable him to pay for cleanup and obtain special insurance, but Hendricks did not need to pay for any cleanup and no special insurance was required. Instead, once the property was placed in Hendricks’s name, he obtained a $500,000 mortgage for his benefit, which he failed to repay and the property was awarded to the lender at auction.
On February 13, 2017, Hendricks received a wire transfer of $388,962.17 from a victim for a commercial property venture. Hendricks falsely claimed he had an interest in an LLC that owned a Home Depot and the victim could invest in it. However, the LLC was merely an LLC incorporated by Hendricks to further his fraudulent Home Depot investment scheme, and he did not own an interest in the LLC that owned the Home Depot.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ashley Washington.
Plattsburgh Man Charged with Role in International KidnappingRead the Press Release
PLATTSBURGH, NEW YORK – Graigory Brown, age 50, of Plattsburgh, was charged yesterday with conspiring to kidnap an elderly couple from Moira, New York, and transport them across the border to Canada. The husband and wife were kidnapped on September 27, and safely rescued two days later in Canada.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Keith M. Corlett.
Brown appeared today before United States Magistrate Judge Gary L. Favro, and was ordered detained pending a detention hearing on October 6, 2020.
According to the complaint, on September 27, 2020, Brown and his co-conspirators forcibly entered the victims’ Franklin County home and kidnapped them. The victims were driven to Snye, Quebec, where they were put in a boat, taken to mainland Canada, and then transported to Quebec’s eastern townships where they were held for several days. While the victims were in Canada, Brown’s co-conspirators communicated ransom demands to one of the victims’ children. Officers from the Surete du Quebec rescued the victims from a house in Magog, Quebec, on September 29, 2020. Four of Brown’s alleged co-conspirators have been charged in Canada with crimes related to the kidnapping.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Acting United States Attorney Antoinette T. Bacon stated: “According to the complaint, Brown and his co-conspirators put an elderly couple through a terrifying ordeal. I would like to thank our law enforcement partners, including the FBI, New York State Police, Surete du Quebec, and Akwesasne Mohawk Police, for bringing them home safely. We will continue to work together on both sides of the border to secure justice in this case and hold accountable all those involved in this horrific crime.”
FBI Special Agent in Charge Thomas F. Relford stated: “Mr. Brown’s alleged actions put an innocent couple in harm’s way during a truly terrifying situation. Through swift coordination with our law enforcement partners at NYS Police, Suerte du Quebec, and the Akwesasne Mohawk Police, we were able to bring the victims home safely and ensure justice will be served for those responsible for this despicable act.”
State Police Superintendent Keith M. Corlett stated: “I commend the work of our own members and our law enforcement partners for moving quickly to rescue the victims and track down those responsible for this disturbing crime. We will continue our close collaboration on this case, and we will not rest until all of those involved have been brought to justice.”
The charge filed against Brown carries a maximum sentence of life in prison, a fine of up to $250,000, and a 5-year term of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI, New York State Police, Suerte du Quebec, Akwesasne Mohawk Police, Royal Canadian Mounted Police, Homeland Security Investigations, the Drug Enforcement Administration, and the Office of Franklin County District Attorney Craig Carriero. and is being prosecuted by Assistant U.S. Attorneys Douglas G. Collyer and Katherine Kopita.