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Thursday 1 October 2020
Charleston Career Offender Sentenced to 10 Years in Prison for Selling Heroin Containing FentanylRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to 10 years in prison for a drug crime, announced United States Attorney Mike Stuart. David Ferguson, 48, previously pled guilty to the distribution of heroin. At sentencing, the Court found that because he had two prior felony offenses that were crimes of violence, Ferguson was a career offender.
“It’s 10 years in federal prison for this career offender,” said United States Attorney Mike Stuart. “From his history of violent crimes to his current conviction for selling fentanyl laced heroin, he earned this sentence. Our communities are safer as a result of putting repeat offenders like Ferguson behind bars.”
Ferguson sold heroin, that was later confirmed to contain fentanyl, to a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT) on November 5, 2018, in Charleston.
United States District Judge Joseph R. Goodwin imposed the sentence. The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Assistant United States Attorney Monica D. Coleman handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:18-cr-00294.
Follow us on Twitter: SDWVNews
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Bozeman doctor admits unlawful drug dispensing at weight loss clinicsRead the Press Release
BILLINGS – A Bozeman doctor today admitted charges that he illegally dispensed appetite suppressant drugs at two weight loss clinics in Bozeman and Billings, U.S. Attorney Kurt Alme said.
Dr. Ronald M. Buss, 71, pleaded guilty to an information charging him with two counts of unlawful dispensing and distribution of controlled substances by registrant, a misdemeanor. Buss faces a maximum one year in prison, a $100,000 fine and one year of supervised release on each count.
U.S. Magistrate Judge Timothy J. Cavan presided. Buss was released pending further proceedings. A sentencing date has not yet been set.
Court documents filed by the prosecution said that in 2009, Buss became the medical director for Go Figure, a weight loss clinic in Bozeman, and a year later became the director for Go Figure in Billings. Buss is registered with the Drug Enforcement Administration and is authorized to dispense controlled substances. His registration number has been used at the two Go Figure clinics for controlled substance prescriptions.
Go Figure has prescribed three types of weight loss drugs: Phendimetrazine and Benzphetamine, both Schedule III controlled substances, and Phentermine, a Schedule IV controlled substance. These drugs are amphetamine-based and intended for short-term use. The drugs also are indicated only for severely overweight or obese individuals and may be contraindicated for people with some health conditions.
In August 2016, the Billings DEA received information from a pharmacist that Go Figure was illegally dispensing these three controlled appetite suppressants from its clinic. In July 2016, Buss began pre-signing prescriptions for Go Figure staff to complete. Go Figure had no medically trained staff other than Buss. An employee at the Billings clinic told investigators Buss pre-signed prescriptions for new and current clients, and that staff would choose one of the three drugs, its strength, directions for use and complete the written prescription. Patients paid $50 per week to be weighed, have their blood pressure taken and receive a prescription for one week's worth of the selected drug.
At the Bozeman clinic, an employee told law enforcement that she was a "consultant," met with patients and prescribed controlled substances on blank, pre-signed prescriptions from Buss. Staff repeatedly questioned the practice but were continually assured Go Figure had special permission to do so and that it was legal. In addition, the employee said that from 2009 to 2016, the Bozeman clinic was dispensing the appetite suppressants directly from the clinic without issuing written prescriptions.
Clinic employees further said Buss did not meet many of the patients for months or years after they began taking the drugs. In some instances, Buss never saw the patients at all. Patients confirmed to DEA investigators that they rarely, if ever, met with Buss.
When interviewed, Buss admitted to investigators to pre-signing blank prescriptions and not seeing patients until after they started taking the drugs. Buss claimed that was only way to run the practice effectively.
Assistant U.S. Attorney Karla Painter is prosecuting the case, which was investigated by the Drug Enforcement Administration.
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Armed Drug Trafficker and Prior Felon Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Lorenzo Watson, 29, of Rochester, NY, pleaded guilty before U.S. District Judge David G. Larimer to possessing with intent to distribute cocaine, and possession of a firearm and ammunition by a felon. The charges carry a maximum penalty of 20 years in prison, and a fine of $1,000,000, or both.
Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that the defendant was arrested on September 26, 2019, after New York State Parole Officers went to his residence on Bauman Street in Rochester for a compliance check. Officers did not locate Watson at the residence, rather, they saw him walking on Bauman Street with his hands in his sweatshirt pockets. The officers approached Watson and searched him and found a pill bottle, which contained 40 small bags of a substance later identified as cocaine, and a handgun, in one of the sweatshirt pockets. The handgun, which had a defaced serial number, was loaded with eight rounds of ammunition. Officers also found $507.00 in United States currency in Watson’s pants pocket.
Watson was previously convicted in August of 2017, in Monroe County Court, of Attempted Criminal Possession of a Controlled Substance in the Fifth Degree and sentenced to serve two years in prison. In addition, the defendant was previously convicted in July of 2011, also in Monroe County Court, of Attempted Criminal Possession of a Weapon in the Second Degree and again sentenced to serve two years in prison. As a result of those convictions, the defendant is legally prohibited from possessing a firearm.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.
The plea is the result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci; the Rochester Police Department, under the direction of Acting Chief Mark Simmons; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for December 7, 2020, at 2:00 p.m. before Judge Larimer.
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Albuquerque man sentenced to prison on federal drug and firearm chargesRead the Press Release
ALBUQUERQUE, N.M. – Selmonio Davis, 44, of Albuquerque, was sentenced in federal court in Albuquerque on Sept. 25 to nine years in prison for possessing methamphetamine with intent to distribute, being a felon in possession of a firearm and ammunition and possessing a firearm in furtherance of a drug trafficking crime.
Davis pleaded guilty to these offenses on June 11. In the plea agreement, Davis admitted to illegally selling methamphetamine and heroin in five separate transactions from March 13, 2019, through May 30, 2019. A search warrant executed at Davis’ apartment following those transactions revealed his possession of methamphetamine, heroin, cocaine, and materials and drug paraphernalia used in the preparation for distribution of these narcotics. A Glock Model 26 semiautomatic handgun and ammunition was also located near the drugs.
Following his release from prison, Davis will serve three years of supervised release.
The Albuquerque office of the FBI along with the New Mexico State Police investigated this case. Assistant U.S. Attorney David P. Cowen prosecuted the case.
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Aggravated Felon Pleads Guilty to Federal Firearms Offense and Illegal Re-Entry After Previous DeportationRead the Press Release
Ocala, FL – Jose Merced Sanchez De La Torre (43) has pleaded guilty to illegal re-entry by a previously deported alien and unlawful possession of a firearm. He faces up to 30 years in federal prison. A sentencing date has not yet been set.
According to court documents, on August 31, 2020, the FBI received a tip that a residence in Ocala contained illegal aliens and firearms. The FBI requested the assistance of U.S. Customs and Border Protection (CBP). CBP researched the address and determined that one of the residents, Sanchez De La Torre, was an illegal alien from Mexico who had previously been deported from the United States in 2015, following federal convictions for an aggravated felony—unlawful possession of a firearm—and seven counts of structuring financial transactions. On September 8, 2020, Border Patrol agents, with help from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marion County Sheriff’s Office (MCSO), executed an arrest warrant at the residence. During a search of the residence, three firearms were located, including an AK-47 along with a large amount of ammunition. As both an illegal alien and a convicted felon, Sanchez De La Torre is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the FBI, CBP, ATF, and the MCSO. It is being prosecuted by Assistant United States Attorney Tyrie Boyer.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
4 Members of the Mount Vernon Goonies Street Gang Plead Guilty to the Murder of 13-Year-Old Innocent BystanderRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that DAVID HARDY, a/k/a “Mooka,” MARQUIS COLLIER, JERMAINE HUGHLEY, a/k/a “Blacks,” and SINCERE SAVOY, a/k/a “Bitty,” pled guilty to participating in the murder of Shamoya McKenzie, a 13-year-old innocent bystander. HARDY pled guilty today, COLLIER pled guilty on August 14, 2020, HUGHLEY pled guilty on September 10, 2020, and SAVOY pled guilty on September 1, 2020. All four defendants will be sentenced by United States District Judge Nelson S. Román, to whom the case is assigned.
Acting U.S. Attorney Audrey Strauss said: “On December 31, 2016, David Hardy, Marquis Collier, Jermaine Hughley, and Sincere Savoy shot at a rival gang member, injuring him and killing 13-year-old Shamoya McKenzie, cutting short her young and promising life. Now all four of them face significant time in prison for their participation in senseless gun violence.”
According to allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
Between 2007 and 2017, in the Southern District of New York and elsewhere, HARDY, COLLIER, HUGHLEY, and SAVOY were members of a racketeering enterprise known as the “Goonies.” In order to fund the enterprise, protect and expand its interests, and promote its standing, members and associates of the Goonies committed, conspired, attempted, and threatened to commit acts of violence, including murder, attempted murder, and robbery; they conspired to distribute and possess with the intent to distribute narcotics; and they obtained, possessed, and used firearms, including by brandishing and firing them.
The Goonies have been engaged in a long-standing and violent feud with several rival Mount Vernon street gangs, including, among others, the “Boss Playa Family,” the “Get Money Gangstas,” the “Gunnas,” and the “Much Better Gang,” among others. On December 31, 2016, HARDY, COLLIER, HUGHLEY, and SAVOY attempted to murder a rival gang member in broad daylight by firing multiple shots at him in the vicinity of Tecumseh Avenue and Third Street in Mount Vernon, New York. The rival gang member suffered gunshot wounds but survived. One of the bullets, however, missed the intended target and struck in the head and killed 13-year-old Shamoya McKenzie, who was in the front passenger seat of a car that happened to be driving past the shooting location.
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HARDY, 25, pled guilty to one count of using a firearm in connection with the murder of Shamoya McKenzie in aid of racketeering and one count of using a firearm in connection with an assault with a dangerous weapon in aid of racketeering for committing a separate shooting in furtherance of the Goonies. Together, the crimes carry a maximum penalty of life in prison, and a mandatory minimum sentence of 15 years in prison.
COLLIER, 28, pled guilty to one count of racketeering conspiracy and one count of discharging a firearm in connection with the murder of Shamoya McKenzie in aid of racketeering. Together, the crimes carry a maximum penalty of life in prison, and a mandatory minimum sentence of 10 years in prison.
HUGHLEY, 27, pled guilty to one count of racketeering conspiracy and one count of discharging a firearm in connection with the murder of Shamoya McKenzie in aid of racketeering. Together, the crimes carry a maximum penalty of life in prison, and a mandatory minimum sentence of 10 years in prison.
SAVOY, 23, pled guilty to one count of using a firearm in connection with the murder of Shamoya McKenzie in aid of racketeering, which carries a maximum penalty of life in prison, and a mandatory minimum sentence of five years in prison.
Ms. Strauss thanked the Westchester County District Attorney’s Office and praised the outstanding investigative work of the FBI’s Westchester County Safe Streets Task Force, which comprises agents and detectives from the FBI, Yonkers Police Department, Westchester County District Attorney’s Office, Westchester County Police Department, Peekskill Police Department, Mount Vernon Police Department, New York City Police Department, and U.S. Probation.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Anden Chow and Sarah Krissoff are in charge of the prosecution.
11 Union Officials Charged with Racketeering, Fraud, and Bribery OffensesRead the Press Release
Ilan Graff, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, and Timothy D. Sini, Suffolk County District Attorney, announced today the return of an indictment charging JAMES CAHILL, CHRISTOPHER KRAFT, PATRICK HILL, MATTHEW NORTON, WILLIAM BRIAN WANGERMAN, KEVIN MCCARRON, JEREMY SHEERAN, a/k/a “Max,” ANDREW MCKEON, and ROBERT EGAN with racketeering, fraud, and bribery offenses, in connection with their acceptance of payments in their roles as current and former union officials to corruptly influence labor-management relations in the construction industry. SCOTT ROCHE and ARTHUR GIPSON are charged with fraud and bribery offenses. The defendants are current and former union officials with Local 638 of the Enterprise Association of Steamfitters (“Local 638”) and Local Union 200 of the United Association of Journeyman and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada (“Local 200”). CAHILL is the president of the New York State Building and Construction Trades Council (the “NYS Trades Council”), which represents over 200,000 unionized construction workers, and a member of the executive council for the New York State American Federation of Labor and Congress of Industrial Organizations (the “NYS AFL-CIO”). As alleged, since in or around October 2018, the defendants agreed to accept dozens of bribes, totaling over $100,000, in exchange for which they used their authority to corruptly influence the construction industry at the expense of labor unions and their members.
All of the defendants were arrested yesterday afternoon or earlier today and will be presented this afternoon before United States Magistrate Judge Robert W. Lehrburger. The case is assigned to Chief United States District Judge Colleen McMahon.
Attorney for the United States Ilan Graff said: “As alleged, the defendants exploited their labor organization positions to line their own pockets. They did so at the expense of the unions and their members by accepting bribes to favor non-union employers and corruptly influence the construction trade. Today’s indictment reflects our commitment to rooting out corruption and bringing to justice those who abuse positions of power out of personal greed. We thank the Suffolk County District Attorney’s Office for their partnership in this case.”
Suffolk County District Attorney Timothy D. Sini said: “As alleged in today’s indictment, these union officials – who purported to be the ones looking out for workers and their rights – were in fact engaged in an enterprise of corruption at the expense of the hardworking men and women they claimed to represent. This was a complete betrayal of these unions and their membership. Our two-year wiretap investigation uncovered a shocking level of greed and corruption, and the investigation is very much ongoing. I want to thank the U.S. Attorney’s Office for the Southern District of New York for partnering with my office on this investigation and for working with us to hold these alleged bad actors accountable in federal court.”
According to the allegations in the Indictment:
JAMES CAHILL, CHRISTOPHER KRAFT, PATRICK HILL, MATTHEW NORTON, WILLIAM BRIAN WANGERMAN, KEVIN MCCARRON, JEREMY SHEERAN, a/k/a “Max,” ANDREW MCKEON, and ROBERT EGAN, are members of an enterprise (the “Enterprise”) comprising current and former officials of Local 638, a union with jurisdiction over pipe fitting in New York City and Long Island. The Enterprise was a criminal organization whose members agreed to engage in, among other activities, honest services fraud, receipts of bribes as labor union officials, and unlawful receipt of payments to labor organizations. Members of the Enterprise conspired to accept cash bribes, as well as bribes in the form of “loans” that were never repaid, free meals and drinks, free labor on personal property, and purchases of home appliances. Since in or around October 2018, the defendants accepted dozens of bribes, totaling over $100,000.
JAMES CAHILL was the leader of the Enterprise. In addition to being president of the NYS Trades Council and a member of the NYS AFL-CIO’s executive council, CAHILL is also a former business agent of Local 638, and a former international representative of the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada. As the Enterprise’s leader, CAHILL influenced Local 638’s elections and installed loyal associates into official positions within Local 638. CAHILL initiated several Local 638 officials into the Enterprise so they could accept bribes and expand their influence. For example, after CAHILL brought defendant PATRICK HILL into the Enterprise as a union official who would – and did – accept bribes, CAHILL told a non-union employer from whom CAHILL and HILL had received bribes (“Employer-1”): “Here’s the thing. I give you Paddy [HILL]. But if Paddy fucks up and does stupid things, you have to tell me . . . I got my guys, I got the guys who come to me, and you know that, and everyone knows who comes to me.” CAHILL told HILL, following HILL’s receipt of a bribe from Employer-1, “Welcome to the real world.” NORTON similarly stated in a meeting at which NORTON, CAHILL, and HILL received bribes: “The real world is the real world and there’s . . . always wiggle room as long as everyone . . . understands each other, and everyone’s taken care of.”
CAHILL and the other members of the Enterprise used their positions of power with respect to Local 638 to receive bribes in exchange for taking actions favorable to non-union employers, and exercising corrupt influence within the construction trade, all to the detriment of Local 638 and the union members’ interests. For instance, in one meeting with Employer-1, CAHILL urged Employer-1, in sum and substance, not to sign with a union, but instead to “tell everyone to go fuck themselves” because “if you become union, you’ll have 12 fucking guys on your back.”
All 11 defendants are also charged with participating in conspiracies to commit honest services fraud and violate the Taft-Hartley Act, based on, among other things, their agreement to accept bribes in exchange for acquiescing in the bidding and performing of construction work with non-union labor for plumbing and pipe fitting projects that would otherwise have potentially been awarded to companies whose employees were represented by Local 638 or Local 200.
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A chart containing the names, charges, and maximum penalties for the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Graff praised the outstanding investigative work of the Special Agents within the U.S. Attorney’s Office for the Southern District of New York and Investigators with the Suffolk County District Attorney’s Office, and noted that the investigation is ongoing.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Jason Swergold, Danielle Sassoon, and Jun Xiang, and Special Assistant U.S. Attorney Laura de Oliveira, are in charge of the prosecution.
The charges in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Count
Charge
Defendants
Max. Penalty
Count One
Racketeering Conspiracy
18 U.S.C. § 1962(d)
JAMES CAHILL
CHRISTOPHER KRAFT
PATRICK HILL
MATTHEW NORTON
WILLIAM BRIAN WANGERMAN
KEVIN MCCARRON
JEREMY SHEERAN, a/k/a “Max”
ANDREW MCKEON
ROBERT EGAN
20 years’ imprisonment
Count Two
Honest Services Fraud Conspiracy
18 U.S.C. §§ 1343, 1346, and 1349
JAMES CAHILL
CHRISTOPHER KRAFT
PATRICK HILL
MATTHEW NORTON
WILLIAM BRIAN WANGERMAN
KEVIN MCCARRON
JEREMY SHEERAN, a/k/a “Max”
ANDREW MCKEON
ROBERT EGAN
SCOTT ROCHE
ARTHUR GIPSON
20 years’ imprisonment
Count Three
Conspiracy to Violate the Taft-Hartley Act
18 U.S.C. § 371
JAMES CAHILL
CHRISTOPHER KRAFT
PATRICK HILL
MATTHEW NORTON
WILLIAM BRIAN WANGERMAN
KEVIN MCCARRON
JEREMY SHEERAN, a/k/a “Max”
ANDREW MCKEON
ROBERT EGAN
SCOTT ROCHE
ARTHUR GIPSON
5 years’ imprisonment
As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Wednesday 30 September 2020
Wisconsin-Based Nonprofit to Pay $1.9 Million to Settle Allegations of False Claims and Kickbacks on Federal Contracts for Blind WorkersRead the Press Release
Industries for the Blind and Visually Impaired Inc. (IBI) has agreed to pay the United States $1,938,684.09 to resolve allegations that IBI violated the False Claims Act and the Anti-Kickback Act in connection with certain federal contracts set aside to employ blind workers, the Justice Department announced today.
IBI is a nonprofit corporation headquartered in West Allis, Wisconsin that receives set-aside contracts from federal agencies under the federal government’s AbilityOne Program. In exchange, IBI agrees to give jobs to workers who are blind or visually-impaired and comply with other contractual requirements.
The settlement resolves allegations that, between 2009 and 2018, IBI misrepresented to the U.S. AbilityOne Commission when requesting set-aside contracts for furniture design and installation services that it would maintain a 3:1 blind-to-sighted ratio of employees, and that furniture designers and sales representatives working for IBI took impermissible payments and gifts from manufacturers on certain contracts. It also resolves claims that IBI improperly subcontracted a set-aside contract for screen-printed clothing to an entity that did not generally use blind labor.
“AbilityOne contractors have a duty to follow the law and meet their important commitments to employ workers who are blind or severely disabled,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Civil Division. “This settlement demonstrates our continuing vigilance to ensure that those receiving set-aside contracts under the AbilityOne Program comply with the conditions of their awards.”
The AbilityOne Commission operates under the authority of the Javits-Wagner-O’Day Act (JWOD ACT), which was passed in 1971 to increase employment and training opportunities for persons who are blind or visually impaired, or who have disabilities so severe that they are otherwise unable to work at competitive employment. More than 400 companies participate in the AbilityOne Program and receive set-aside federal contracts in exchange for employing approximately 45,000 people who are blind or have severe disabilities.
“By its conduct, IBI thwarted the AbilityOne Program’s goal of increasing employment and training opportunities for persons who are blind or visually-impaired,” said U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin. “This settlement reflects our office’s continuing efforts to combat violations of the False Claims Act and protect federal programs.”
“We are committed to preserving the integrity of the AbilityOne program. False claims on the program exclude blind and significantly disabled workers from opportunities and hinders law-abiding AbilityOne contractors,” said Thomas K. Lehrich, Inspector General of the U.S. AbilityOne Commission. “Working with DOJ and our partners, the Office of Inspector General protects the confidence and public trust in the largest employment program in the nation of blind and significantly disabled workers.”
“The conduct at issue in this case undermined the core purpose of the AbilityOne program – to provide jobs for the blind and disabled," said Carol F. Ochoa, Inspector General for the General Services Administration (GSA). "This settlement reflects our commitment to protect the integrity of the program and hold companies accountable for attempts to subvert it.”
Among the allegations resolved by the settlement are claims asserted in a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The lawsuit was filed by Paul Inzeo, formerly a marketing manager at IBI, whose share has not yet been decided.
The settlement also resolves conduct that IBI investigated and disclosed to the United States concerning the receipt of gifts and money by its furniture designers and sales representatives that was not alleged in the whistleblower complaint. It received credit in the settlement for its disclosure, cooperation, and remediation efforts in connection with this conduct.
The settlement was the result of a coordinated effort among the U.S. Attorney’s Office for the Eastern District of Wisconsin and the Commercial Litigation Branch of the Justice Department’s Civil Division, with assistance from GSA’s Office of Inspector General, the U.S. Army Criminal Investigative Command, the Air Force Office of Special Investigations, the Defense Contract Audit Agency, the AbilityOne Office of the Inspector General, and the U.S. Department of the Interior Office of Inspector General.
The claims resolved by the settlement are allegations only, and there has been no determination of liability. The lawsuit resolved by the settlement is captioned United States ex rel. Inzeo v. Industries for the Blind, Inc., et al., No. 15-cv-996 (E.D. Wisc.).
Wisconsin Felon Charged with Illegally Possessing A Firearm, AmmunitionRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging GERALD SEAN CLARK, 49, with one count of being a felon in possession of a firearm and two counts of being a felon in possession of ammunition. CLARK will make his initial appearance in U.S. District Court at a later date.
According to allegations in the indictment, on July 10, 2020, CLARK was found to be in possession of a Ruger model LCP .380 handgun, a magazine containing 27 rounds of 7.62x39 semi-automatic rifle ammunition, and 23 rounds of Winchester .410 shotgun shells ammunition. Because CLARK has prior felony convictions, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minnesota State Patrol. 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. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Assistant U.S. Attorney Julie E. Allyn is prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
GERALD SEAN CLARK, 49
Superior, Wis.
Charges:
- Felon in possession of a firearm, 1 count
- Felon in possession of ammunition, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Wexford Man Charged with Possessing an Unregistered Homemade RifleRead the Press Release
PITTSBURGH, PA – A former resident of Wexford, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of an unregistered firearm, United States Attorney Scott W. Brady announced today.
The one-count Indictment named James Thompson, 47, as the sole defendant.
According to Indictment, which follows a Criminal Complaint that was filed on September 4, 2020, the defendant called the police to his residence on July 17, 2020, and stated that he had multiple weapons, including guns and knives. When police arrived on the scene, Thompson exited the residence with a loaded AR15 style rifle, wearing a bulletproof vest, and threatening the use the weapon. The defendant was taken into custody and law enforcement was able determine that the rifle was homemade and not registered in the National Firearms Registration and Transfer Record. The Court was further informed that law enforcement had previously responded to a domestic call at the defendant’s residence on December 9, 2019.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The defendant is being housed at a mental health facility pending the resolution of the case.
Assistant United States Attorney Nicole Vasquez Schmitt, who serves as the office’s Domestic Violence Coordinator, is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Northern Regional Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Waterloo Man Sentenced to Federal Prison for Unlawfully Possessing a Gun and MethamphetamineRead the Press Release
A Waterloo man who unlawfully possessed a firearm and possessed methamphetamine with the intent to distribute was sentenced on September 28, 2020, to almost four years in federal prison.
Corvelous Devontae Caston, age 30, from Waterloo, Iowa, received the prison term after a March 4, 2020 guilty plea to possession of a firearm by a prohibited person and possession with intent to distribute methamphetamine after having previously been convicted of a felony drug offense.
Information disclosed at sentencing showed that, on September 11, 2019, Caston was the backseat passenger of a car stopped by police. As officers approached the car, Caston opened his door and fled on foot. Officers pursued and eventually apprehended Caston. Officers recovered a loaded firearm with no serial number from Caston’s waistband and a mason jar containing a number of multi-colored pills that contained methamphetamine.
Caston was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Caston was sentenced to 46 months’ imprisonment. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system. Caston is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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.
The case was prosecuted by Special Assistant United States Attorney Dillan Edwards and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk Count Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-02072.
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Washington man pleads guilty to transporting a minor for sexRead the Press Release
ALBUQUERQUE, N.M. – Raheshi De Angelo Horace, 37, of Tacoma, Washington, pleaded guilty in federal court on Sept. 22 to a charge of transportation of a minor with intent to engage in criminal sexual activity. Horace remains in custody pending a sentencing hearing.
According to a criminal complaint, on March 6, Horace was sexually abusing an eight-year old victim when the victim’s mother entered the room and caught him. The mother immediately removed Horace from the residence and called 911. Horace met the mother in Tacoma, Washington, in 2016 before moving with the mother and her children to Arizona and later to New Mexico. In the plea agreement, Horace admitted to transporting the victim to New Mexico with the intent to engage in sexual activity.
By the terms of the plea agreement, Horace faces 20 years in prison followed by supervised release for life.
Homeland Security Investigations and the Hidalgo County Sheriff’s Office investigated this case. Assistant U.S. Attorney Marisa A. Ong is prosecuting the case.
Wareham Man Charged with Possession of Child PornographyRead the Press Release
BOSTON – A Wareham man was arrested and charged yesterday with possession of child pornography.
David St. Jacques, 56, was charged by criminal complaint with one count of possession of child pornography. Following an initial appearance yesterday, St. Jacques was detained pending a detention hearing scheduled for Oct. 5, 2020.
As alleged in the charging document, federal agents executed a search of St. Jacques’s residence yesterday morning and seized a computer, three phones, and one thumb drive. Agents discovered that St Jacques had allegedly destroyed at least two other drives and attempted to destroy one of his phones when agents arrived to execute the warrant. St. Jacques admitted to exchanging child pornography with other individuals on various chatting applications, and agents located child pornography during the on scene review of the devices that were still intact.
In March 2009, St. Jacques was convicted in Plymouth County Superior Court of several counts of dissemination and possession of child pornography.
Due to the prior felony conviction, St. Jacques faces a mandatory minimum sentence of 10 years and up to 20 years in prison, five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Virginia Man Sentenced to 180 Months in Prison for Attempted Production of Child Pornography and Traveling in Interstate Commerce for Illicit Sexual ConductRead the Press Release
Knoxville, Tenn. - Gregory Lynn McKnight, Jr., 28, of Clintwood, Virginia, was sentenced on September 29, 2020, by the Honorable R. Leon Jordan, Senior U.S. District Judge, to serve 180 months in federal prison for attempting to coerce a minor to engage in sexually explicit conduct for the purpose of producing child pornography and traveling in interstate commerce for the purpose of engaging in illicit sexual conduct with a minor. Following his imprisonment, McKnight will be supervised by the U.S. Probation Office for 15 years and will be required to register with the state sex offender registry in any state in which he lives, works, or attends school.
The investigation began after the parents of a minor female informed local a law enforcement agency that McKnight had contacted their daughter on social media and began sending messages of a sexual nature to her. During the undercover investigation, McKnight attempted to get the minor to send him sexually explicit depictions of her and to meet for sex. McKnight drove from Virginia to Tennessee for the purpose of having sex with the girl.
“This prosecution represents part of our efforts to work with law enforcement agencies to protect children from persons who try to groom children online for child pornography and other illicit purposes,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee. U.S. Attorney Overbey encourages parents to be vigilant concerning the online activities of their children. “These predators operate from the shadows of the internet, pretend to befriend young people, and then prey upon the minors’ vulnerability to induce them to send sexual images and videos, unbeknownst to their parents.”
The case was investigated by the Federal Bureau of Investigation, with assistance from Claiborne County Sheriff’s Office. Assistant U.S. Attorneys Matthew T. Morris and Jennifer Kolman represented the United States in Court.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit https://www.justice.gov/psc.
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Vestavia Hills Doctor Sentenced to 30 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
Birmingham, Ala. – A federal today yesterday sentenced a former Vestavia Hills doctor to 30 years in prison for producing and possessing child pornography, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Annemarie C. Axon sentenced RONALD TAI YOUNG MOON, JR., 56, of Vestavia Hills, Ala., who worked as a doctor at The Industrial Athlete clinic in Birmingham until his license was revoked earlier this year. Moon went to trial in February, and after four days of testimony a jury convicted Moon of possessing, producing, and attempting to produce child pornography.
Evidence at trial proved that between the mid-1990s and about 2012, Moon secretly recorded neighbors and guests in his own home, including girls as young as 12 years old. Some of those individuals were filmed naked, dressing, and undressing. The footage was located on VHS videotapes found in the defendant’s locked private office with other pornographic VHS tapes, steps away from a TV/VCR set that was working and plugged in. Evidence of multiple hidden-camera devices was also found in the defendant’s office.
In addition to thirty years in prison, following his release from prison, Moon was ordered to serve 5 years of supervised release and, by law, will also be required to register as a sex offender.
“Unfortunately, this sentence will not undo the harm suffered by Moon’s victims,” Escalona said. “However, understanding that the consequences of this conduct is severe might discourage other sexual predators from victimizing innocent children in this district.”
“I am proud of the effort put forth by my agents in order to ensure this defendant was brought to justice and will no longer be able to harm children,” Sharp said. “Moon serving the next 30 years in federal prison ensures there is one less predator victimizing the most innocent and vulnerable members of our community.”
Assistant U.S. Attorney John B. Ward and First Assistant U.S. Attorney Lloyd C. Peeples, III prosecuted the case for the United States. The United States Attorney also thanks members of the Drug Enforcement Administration and the Department of Health and Human Services Office of Inspector General for their valuable assistance in this investigation.
United States Files Injunction Action Against Nassau County for Environmental Violations at 48 FacilitiesRead the Press Release
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Peter D. Lopez, Regional Administrator of the U.S. Environmental Protection Agency (EPA), Region 2, announced today that the United States has filed a Consent Judgment resolving its claims against the County of Nassau (Nassau) for violating the Resource Conservation and Recovery Act (RCRA). The settlement addresses Nassau’s failure to comply with federal underground storage tank (UST) regulations and with an EPA administrative order at 48 of Nassau’s facilities. The Consent Judgment requires Nassau to install equipment to assure adequate leak detection across all county facilities. The settlement also requires Nassau to pay a civil penalty of $427,500.
The lawsuit and Consent Judgment were filed in United States District Court for the Eastern District of New York, in Central Islip, New York. Following a 30-day public comment period, the United States will review any comments and, if appropriate, request the District Court to enter and approve the Consent Judgment.
“The United States is pleased to announce this settlement with Nassau County that will help protect the health and safety of county residents and our groundwater, which may be jeopardized when underground storage tanks are not properly monitored,” stated Acting United States Attorney DuCharme. “The settlement enforces RCRA’s underground storage tank regulations at Nassau’s facilities, which are critical to mitigate the risk of spills and leaks. This Office will vigorously enforce RCRA against parties who illegally operate underground storage tanks and compromise the safety of our community.”
“Nassau County and EPA have worked out an agreement that will help ensure that underground storage tanks (USTs) will be properly monitored and regulated to protect human health and the environment,” said EPA Regional Administrator Lopez. “The judicial settlement requires the county to take multiple steps including implementing a centralized monitoring system. This judicial action settles the County’s non-compliance with a prior administrative settlement. Nassau County has cooperated with EPA and is now taking action to protect the integrity of the aquifer that provides drinking water to the county’s residents.”
Congress enacted RCRA in 1976 to address problems associated with municipal and industrial waste. One of RCRA’s primary goals is to protect the health and safety of the community and the environment from the potential hazards of waste disposal. The UST program was created under RCRA to help achieve RCRA’s goals by regulating USTs that contain hazardous substances and petroleum products. When USTs are properly operated and monitored, they are a safe and effective way to store petroleum products. However, when tanks are not properly safeguarded, they can endanger the health of the public and the environment by leaking petroleum or hazardous substances into the groundwater, contaminating soil and potentially triggering fires or explosions.
Prior to the present lawsuit, the EPA filed an administrative complaint against Nassau alleging that the county repeatedly failed to comply with UST safety requirements at 33 facilities between 2008 and 2010. The EPA and Nassau reached a settlement of these claims in a September 2012 administrative Consent Agreement and Final Order (CA/FO). However, Nassau failed to complete the injunctive work requirements in the CA/FO, leading to this judicial action.
Further, after entering into the CA/FO, from 2012 to 2017, Nassau continued to violate the UST regulations. Specifically, it did not: (i) conduct pipe tightness testing at 12 facilities, (ii) upgrade or close a steel UST at one facility, (iii) add secondary containment (or permanently close) the hazardous substance USTs at two facilities, (iv) install release detection equipment for the USTs at 17 facilities, (v) install release detection equipment for the USTs at 11 emergency generator facilities, (vi) install overfill prevention equipment for the USTs at 12 facilities and (vii) permanently close a UST that had been temporarily closed.
The Consent Judgment requires Nassau to fully comply with RCRA’s UST regulations. Specifically, the settlement requires Nassau to install and operate release detection equipment and overfill and spill prevention equipment, upgrade certain USTs and close certain USTs. The settlement also requires Nassau to install and operate a centralized monitoring system, which will enable Nassau to centrally monitor its USTs so that it can promptly detect and respond to any leaks or spills across its facilities.
The case is being handled by Assistant U.S. Attorneys Diane C. Leonardo and Matthew Silverman of the U.S. Attorney’s Office for the Eastern District of New York, working with Bruce Aber and William Sawyer of the Office of Regional Counsel, U.S. EPA Region 2, Claudia Gutierrez, UST Compliance Team Leader, Paul Sacker, Senior Enforcement Officer and Leonard Voo, RCRA Compliance Branch Chief, of the Enforcement and Compliance Assurance Division, U.S. EPA Region 2.
United States Files Housing Discrimination Lawsuit Against Staten Island Rental Agent and Real Estate AgencyRead the Press Release
WASHINGTON - The Department of Justice announced today that it has filed a lawsuit against Village Realty of Staten Island Ltd. and Denis Donovan, a sales and former rental agent at Village Realty, alleging discrimination against African Americans in violation of the Fair Housing Act when offering housing units for rent. The lawsuit is based on the results of testing conducted by the department’s Fair Housing Testing Program, in which individuals pose as renters to gather information about possible discriminatory practices.
The complaint, filed in the U.S. District Court for the Eastern District of New York, alleges that Donovan discriminated against prospective renters on the basis of race by treating African Americans who inquired about available rental units differently and less favorably than similarly-situated white persons. Donovan allegedly told African-American testers about fewer rental units than white testers, offered white testers rental discounts and opportunities to inspect units that were not offered to African-American testers, primarily offered African-American testers units in more integrated neighborhoods while offering white testers units in both overwhelmingly white and more integrated neighborhoods and made more encouraging comments to white testers about available rental units. The lawsuit alleges that Village Realty is legally responsible for Donovan’s alleged discrimination because Donovan worked as Village Realty’s rental agent.
“The U.S. Attorney’s Office has been, and always will be, dedicated to protecting the rights established by the Fair Housing Act, which demands that individuals and families of all races, colors and nationalities are treated fairly when they want to buy or rent a home. Today’s lawsuit reinforces this Office’s commitment to eliminating discrimination in housing,” stated Acting U.S. Attorney Seth D. DuCharme for the Eastern District of New York.
“Freedom for Americans means that people can live peacefully in our nation without regard to their race, ancestry, sex, and other protected traits. The United States and its laws forbid segregation in which people are judged, divided, and harmed because of the color of their skin. Race never should be a factor that determines where someone can live,” stated Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “No one should have their housing choices limited, whether by explicit refusals to rent on the basis of race, or more subtle differences in the way home seekers are treated when they ask about available properties. Whether obvious or less apparent, race discrimination in the rental housing market is intolerable. The Department of Justice is committed to enforcement of the Fair Housing Act to ensure that people have equal access to rental housing, and equal treatment when seeking rental housing, regardless of race, including by uncovering hidden discrimination through our Fair Housing Testing Program.”
The lawsuit seeks monetary damages to compensate victims, civil penalties against the defendants to vindicate the public interest, and a court order barring future discrimination.
This case is being handled by Eastern District of New York Assistant U.S. Attorney Rachel G. Balaban, along with Trial Attorney Katherine A. Raimondo of the Civil Rights Division’s Housing and Civil Enforcement Section.
Individuals who believe they may have experienced discrimination at Village Realty, or believe they may have information relevant to this case should contact the Department of Justice toll-free at 1-800-896-7743, by email at [email protected], or by submitting a report online.
The Justice Department’s Civil Rights Division enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the department’s fair housing enforcement can be found at www.justice.gov/fairhousing.
United States Attorney W. Stephen Muldrow Announces Initiative to Combat Violence Against Women and over $3.9 Million in Grant FundingRead the Press Release
SAN JUAN, Puerto Rico – In order to address the incidence of violent crimes against women, W. Stephen Muldrow, United States Attorney for the District of Puerto Rico, announced the creation of a working group comprised of state and federal agencies, non-profit organizations and higher learning institutions, to assess the threat and propose immediate and long-term measures to protect women against violence. The initiative will be led by the Public Affairs and Community Engagement Division, and encompasses a multi-pronged approach to prevent and prosecute gender based crimes in Puerto Rico. To be clear, we will prosecute those who commit such crimes to the fullest extent of the law.
Throughout the years, the U.S. Attorney’s Office has demonstrated its commitment to fight gender based violence, human trafficking, child exploitation, and other hate crimes based on an individual’s race, sex, gender orientation, nationality, and religion. Recent events in the District of Puerto Rico have raised concern in the community with regards to the safety of women and other vulnerable groups. We recognize that finding solutions to these issues requires a collaborative effort. In the coming weeks, we will reach out to all stakeholders to develop a multi-sector strategy to prevent and prosecute cases involving violence against women. An initiative to prosecute domestic violence gun crimes will be a component of these efforts.
Partnership for Domestic Violence Gun Prosecutions. This initiative is designed to combat domestic violence with the intent to prevent harm and loss of life before they occur. Under this initiative, and by working with federal, state and local law enforcement and nonprofit entities, the U.S. Attorney’s Office is making the investigation and prosecution of federal domestic violence crimes a priority. This initiative will also involve a campaign to put domestic abusers on notice of their prohibition to possessing firearms and train law enforcement on how to investigate federal domestic violence crimes. Local judges will be educated as to the impact of their orders on potential federal criminal prosecutions. Most importantly, we will bring awareness to the public, and to non-profit organizations that shelter and protect victims, on how to report domestic violence crimes to and work with federal authorities. In sum, this joint initiative will reduce domestic violence, save lives and assist victims.
Funding. In addition to the initiative for federal prosecution of domestic violence gun cases, the U.S. Justice Department’s Office on Violence Against Women (OVW) will direct over $3.9 million in grant funding to Puerto Rico to bolster efforts to curb domestic violence and sexual abuse. The grants include:
- Universidad del Sagrado Corazón: $299,962- Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus Program.
- Taller Salud, Incorporated (Loiza): $225,000- Grants to Enhance Culturally Specific Services for Victims of Sexual Assault, Domestic Violence, Dating Violence and Stalking Program.
- Hogar Nueva Mujer Santa Maria de la Merced, Incorporated: $750,000- Rural Sexual Assault, Domestic Violence, Dating Violence and Stalking Program.
- Office of the Women’s Advocate: $1,745,557- STOP Violence Against Women Formula Grant Program.
- Hogar Ruth Para Mujeres Maltratadas, Incorporated: $288,300- SASP Culturally Specific Solicitation (victims of sexual assault).
- Coordinadora Paz para la Mujer, PR Coalition Against Domestic Violence and Sexual Abuse: $243,619- State and Territorial Sexual Assault and Domestic Violence Coalitions Program
- Office of the Women’s Advocate: $418,575- Sexual Assault Services Formula Grant Program
“These grants will help victims escape abuse, seek justice, and rebuild their lives. For domestic violence victims, the added stressors of the pandemic can make a dangerous situation even worse,” said OVW Principal Deputy Director Laura Rogers. “Our grants in Puerto Rico are a timely contribution to approaches already underway to keep victims safe and hold offenders accountable for their crimes.” OVW’s current and forthcoming investments foster coordinated responses to violence against women, making resources available to local and tribal communities for investigation and prosecution, transitional housing, and culturally specific victim services, and training for professionals who respond to these crimes.
“Today, we are pledging to do even more to combat domestic violence. These grants will go a long way in making our homes, families and communities safer,” said U.S. Attorney Muldrow. “If we bring together law enforcement, victim advocates, our courts, attorneys, and the general public, we can effectively fight domestic violence, empower victims, and get them the help they so desperately need. We reiterate our commitment to collaborate with our state counterparts in the eradication of violence against women. Through prevention, prosecution, outreach and empowerment of victims we will end the cycle of violence against women. Our primary goal is simple: we will keep victims safe and hold offenders accountable.”
The Office of Justice Programs provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov.
The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
Anyone affected by abuse and wishes to seek support should please call the National Domestic Violence Hotline at 1-800-799-SAFE (7233) or text LOVEIS to 22522.
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Union City Man Sentenced to 17 Years for Distributing MethamphetamineRead the Press Release
Jackson, TN – Ryan Decker, 37, of Union City, TN, has been sentenced to 210 months in federal prison for conspiracy to distribute Methamphetamine. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, in 2018, the Weakley County Sheriff’s Department executed a search warrant at a residence on Maywood Drive in Martin, Tennessee. Officers recovered a small quantity of methamphetamine, along with four firearms. As a result, the investigation expanded to target multiple co-defendants, including Decker.
On August 1, 2018, Decker delivered two ounces of methamphetamine to an agreed upon location, and was taken into custody. Decker provided a Mirandized statement to officers admitting his involvement in the drug trafficking organization (DTO).
On June 17, 2019, a Federal Grand Jury sitting in the Jackson returned a four-count superseding indictment against Decker and the other members of the DTO: Rudy Powers, John Paul Henry, Daniel Nunez, Kwantrez Pitts, Nelson Urias and Jimmie Goodman for conspiracy to possess with the intent to distribute over 50 grams of actual methamphetamine. On August 24, 2020, Daniel Nunez was sentenced to 248 months in federal prison for his role in the drug trafficking conspiracy: https://www.justice.gov/usao-wdtn/pr/union-city-man-sentenced-20-years-federal-prison-meth-distribution-and-firearm
On September 29, 2020, Chief U.S. District Court Judge Thomas Anderson found that Decker was responsible for the distribution of over 50 kilograms of actual methamphetamine in furtherance of the conspiracy, and sentenced him to 210 months in federal prison followed by 5 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Methamphetamine continues to destroy individuals, families, and communities in West Tennessee, and we will continue to aggressively investigate, prosecute, and punish drug dealers to hold them accountable. With a long stint in prison like his poison-pushing partners, Decker will at last make the community safer by no longer being a part of it."
This case was investigated by the Weakley County Sheriff’s Department, the Tennessee Bureau of Investigation Drug Unit, Dyer County Sheriff’s Department and the 27th Judicial District Drug Task Force.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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U.S. Attorney Murray Announces $628,472 Grant to Support Offenders Returning to Communities in New HampshireRead the Press Release
CONCORD – U.S. Attorney Scott W. Murray today announced that New Hampshire will receive a $628,472 Department of Justice grant to reduce recidivism among adults and juvenile offenders returning to their communities in New Hampshire after confinement. The grant, awarded by the Department’s Office of Justice Programs, is 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.
“Those who are incarcerated for committing crimes must find ways to become productive members of society after they are released from prison,” said U.S. Attorney Murray. “Reentry programs can provide vital assistance to these offenders so that they can transition back into the community successfully and avoid further trouble with the law.”
In New Hampshire, the state Department of Justice has been awarded $628,472 under the Second Chance Act Addressing the Needs of Incarcerated Parents with Minor Children Program. This program supports the successful and safe transition of young fathers and mothers from confinement to their families and communities.
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
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U.S. Attorney Mike Hurst and Law Enforcement Partners Announce Expansion of “Project EJECT” to City of GulfportRead the Press Release
Gulfport, Miss. – Today, Mike Hurst, the United States Attorney for the Southern District of Mississippi, along with Gulfport Mayor Billy Hewes, Gulfport Police Chief Chris Ryle, the Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Kurt Theilhorn, Drug Enforcement Administration Resident Agent in Charge Chris Daniels, and other law enforcement agencies, announced the expansion of an initiative to combat violent crime called “Project EJECT” into the City of Gulfport.
Launched by the U.S. Attorney’s Office for the Southern District of Mississippi in December 2017 in the City of Jackson under the U.S. Department of Justice’s Project Safe Neighborhoods (“PSN”) initiative, Project EJECT is an enhanced violent crime reduction program that incorporates decades of experience in bringing various levels of law enforcement together with stakeholders in the community, with the overall goal of producing a long-term, meaningful reduction in and prevention of violent crime. Project EJECT stands for: “Empower Justice Expel Crime Together.”
Joined by law enforcement at the Gulfport Police Department, U.S. Attorney Hurst described the project as a multi-disciplinary, holistic approach that combines law enforcement arrests and prosecutions of violent criminals with prevention efforts, rehabilitation and reentry, educational initiatives, and improved communication.
“Project EJECT has been incredibly successful in every city where it has been deployed, and we are excited to partner with Gulfport to make this great city even safer. Through close collaboration among our federal and local prosecutors, prevention efforts for our young people, reentry services for recently-released offenders, and input from the community, we will be able to effectively prevent and reduce violent crime throughout our neighborhoods. The overarching goal is to make the City of Gulfport safer for everyone,” said U.S. Attorney Hurst.
“The key to having a safe city is strong partnerships. The City of Gulfport has a top-notch police force. Collaboration can only help strengthen our community policing efforts. We look forward to working with U.S. Attorney Mike Hurst’s office,” said Mayor Billy Hewes
"As violent crimes have increased within our community, I am committed to utilize every available resource to address this issue. It is with great pleasure that the Gulfport Police Department is able to partner with local, state and federal law enforcement agencies to bring the quality of life to our citizens which they so deserve, “ said Chris Ryle, Gulfport Chief of Police.
“ATF is proud to be a partner in Project EJECT. We have had success investigating armed violent offenders in other cities with Project EJECT, and will continue to do so in Gulfport,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “ATF remains committed to working with our law enforcement partners to remove the most violent criminals from our communities.”
“The men and women of DEA are proud to join with the US Attorney’s Office, the ATF and the Gulfport Police Department to make Project EJECT as successful in Gulfport, as it has been in multiple cities across Mississippi,” said Kevin J. Gaddy, Assistant Special Agent in Charge for the State of Mississippi.
The mission of PROJECT EJECT is to reduce violent crime and make Gulfport neighborhoods safer for all to enjoy. Part of the project will include discussions with the public and encouraging communities to help law enforcement in this effort, as well as communicating to the criminals that they will be prosecuted and punished for gun crimes and violent crimes. The Project will also seek to support locally-based efforts to stop violence and crimes before they occur and to help those whom have been punished to reenter society as law-abiding citizens.
Project EJECT is comprised of a number of federal law enforcement agencies, as well as task force officers from various state and local investigative agencies, who will interact regularly with the Gulfport Police Department and District Attorney’s Offices to identity and respond to violent crimes when they occur. Cases arising from these crimes will then be presented to the local District Attorney’s Offices and the U.S. Attorney’s Office for prosecution.
For the first time ever, the U.S. Attorney’s Office is specifically dedicating two Assistant United States Attorneys to prosecute violent crime in the City of Gulfport under this project.
Project EJECT follows a directive from former U.S. Attorney General Jeff Sessions to the U.S. Department of Justice to reinvigorate DOJ’s Project Safe Neighborhoods with the intent to reduce the rising tide of violent crime in America. Project EJECT is the Southern District of Mississippi’s PSN initiative specifically tailored to address violent crime in throughout the district.
In December 2018, at the 2018 Project Safe Neighborhoods (PSN) National Conference, Acting Attorney General Matthew Whitaker presented the U.S. Attorney’s Office for the Southern District of Mississippi and its law enforcement partners with the award for Outstanding Overall Partnership/Task Force for Project EJECT. Only 16 awards were given during the annual PSN National Conference, which recognize individuals and groups for their dedication and contribution to the success of PSN. Project EJECT was one of only two recognized as the best partnerships or task forces in the nation.
In expanding Project EJECT into Gulfport, the U.S. Attorney’s Office continues to lead the Project, with Assistant U.S. Attorneys Erica Rose and Jonathan Buckner in Gulfport serving as the primary prosecutors for violent cases under Project EJECT in Gulfport, long-time Assistant U.S. Attorney John Merynardie in Gulfport serving as a senior advisor and prosecutor, and Assistant U.S. Attorney Chris Wansley in Jackson serving as the Project Safe Neighborhoods Coordinator for the entire Southern District of Mississippi.
Project Safe Neighborhoods is an initiative by the U.S. Department of Justice to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
U.S. Attorney McSwain Announces Charges Against Delaware County Doctor and Medical Office Manager as Part of Nationwide Health Care Fraud TakedownRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that three individuals have been charged in the Eastern District of Pennsylvania in connection with a nationwide health care fraud takedown that charged 345 defendants across 51 federal districts, including more than 100 doctors, nurses and other licensed medical professionals. These defendants have been charged with submitting more than $6 billion in alleged fraudulent claims to federal health care programs and private insurers, connected to topics such as telemedicine, substance abuse treatment facilities, and illegal opioid distribution schemes. This is the largest health care fraud and opioid enforcement action in U.S. Department of Justice history.
The case charged in the Eastern District of Pennsylvania is summarized below:
Steven J. Valentino, 63, of Haverford, PA, Michele Miller, 51, of Swarthmore, PA, and Leah Afolabi, 46, of Missouri City, TX, a doctor, office manager and pharmacy owner, respectively, were charged with conspiracy to pay and receive health care kickbacks, and paying and receiving kickbacks. The charges stem from a multi-year scheme involving injured federal workers and Medicare beneficiaries wherein kickbacks were paid to induce the prescribing of medications that were filled by a Houston-based pharmacy. Specifically, Afolabi paid kickbacks to Valentino and Miller for the referral of prescriptions for medications written by Valentino to Department of Labor-Office Workers’ Compensation Program (DOL-OWCP) claimants and Medicare beneficiaries. DOL-OWCP and Medicare were billed approximately $2.5 million and paid out approximately $1.1 million during the course of this scheme.
“Doctors and medical professionals are supposed to put their patients’ needs first. When they don’t, and instead try to rip off the system, my Office will take forceful action in order to punish and deter wrongdoers,” said U.S. Attorney McSwain. “Moreover, these prosecutions safeguard federal tax dollars and therefore benefit all American taxpayers. We will continue to do all in our power to stop fraud, waste, and abuse within our federal health care programs.”
“Investigating alleged health care fraud offenses against U.S. Department of Labor programs is an important mission of the Office of Inspector General. We will continue to work diligently with our law enforcement partners to hold accountable those who seek to defraud DOL programs and siphon taxpayer funds for personal gain,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“The U.S. Postal Service spends billions of dollars per year in workers compensation-related costs, most of which are legitimate,” stated U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office. “However, when medical providers, pharmacies, and other organizations choose to flout the rules and profit illegally, special agents with the USPS OIG will work with our law enforcement partners to hold them responsible. To report fraud or other criminal activity involving the Postal Service, contact our special agents at www.uspsoig.govor 888-USPS-OIG.”
“Today’s arrests demonstrate our commitment to pursuing medical professionals who selfishly place their desire for profits above patients’ health care needs,” said Maureen Dixon, Special Agent in Charge, Office of the Inspector General U.S. Department of Health and Human Services. “We will continue to focus our efforts on fighting fraud, waste and abuse in vital federal health care programs and protecting their beneficiaries. To report Medicare or Medicaid fraud, please contact our hotline at 1-800-HHS-TIPS (1-800-447-8477).”
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with its Medicare Fraud Strike Force, as well as the U.S. Attorney’s Office for the Eastern District of Pennsylvania and 50 other U.S. Attorney’s Offices across the country.
The EDPA case was investigated by the Department of Labor Office of Inspector General, United States Postal Service Office of Inspector General and Department of Health and Human Services Office of Inspector General. It is being prosecuted by DOJ Trial Attorney Debra Jaroslawicz.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Brian T. Moran announces more than $17 million in grants to improve public safety and serve crime victims in tribal communities in Western WashingtonRead the Press Release
Seattle – U.S. Attorney Brian T. Moran today announced more than $17 million in Department of Justice grants to improve public safety, serve victims of crime, and support youth programs in tribal communities in the Western 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 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.”
“These grants support a number of important programs in tribal communities, such as community policing, juvenile justice programs, drug treatment programs and services to victims of domestic violence,” said U.S. Attorney Moran. “I’m pleased at the number of tribes in our community that successfully competed for these federal resources.”
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). 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 (OJP) ($41.5 million), Office on Violence Against Women (OVW) ($39.1 million), and Office of Community Oriented Policing Services (COPS) ($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.”
The following tribes in the Western District of Washington received funding under the CTAS program:
Lower Elwha Klallam - $1,431,557
Makah - $122,513
Nooksack - $197,634
Port Gamble S’Klallam - $1,798,712
Puyallup - $399,564
Quileute - $888,057
Skokomish -$669,661
Squaxin -$800,013
Tulalip - $897,977
A full listing of all the announced CTAS awards is available here.
The tribes receiving grants for victim services include:
Tulalip - $1,188,088
Lummi - $898,000
Squaxin - $497,709
Nisqually - $694,581
Nooksack -$505,795
Shoalwater Bay -$417,336
Jamestown S’Klallam -$417,336
Skokomish - $505,795
Suquamish- $694,696
Quinault -$3,000,000
Puyallup -$1,353,631
A full listing of all Tribal Victim Services Set-Aside Program awards is available here.
U.S. Attorney Announces Nearly $8 Million in Grants to Improve Public Safety, Serve Crime Victims in Native American CommunitiesRead the Press Release
U.S. Attorney Erica H. MacDonald today announced nearly $8 million in Department of Justice grants to improve public safety, serve victims of crime and support youth programs in tribal communities in Minnesota.
“Native American communities and especially Native American women and children experience disproportionately high rates of violence, including domestic abuse,” said United States Attorney Erica H. MacDonald. “These funds will directly support the victims of crime and work to improve public safety on reservations throughout Minnesota.”
“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.”
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). 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.”
CTAS Awards
Grantee
Amount Awarded
Fond du Lac Band of Lake Superior Chippewa
$640,529
Violence Against Women Tribal Governments Program (OVW)
$640,529
Mille Lacs Band of Ojibwe
$2,040767
Justice Systems and Alcohol and Substance Abuse (BJA)
$877,477
Violence Against Women Tribal Governments Program (OVW)
$734,898
Children’s Justice Act Partnerships for Indian Communities (OVC)
$428,392
Red Lake Band of Chippewa Indians
$1,679,522
Public Safety and Community Policing (COPS)
$854,787
Justice Systems and Alcohol and Substance Abuse (BJA)
$824,735
White Earth Reservation Tribal Council
$899,055
Violence Against Women Tribal Governments Program (OVW)
$899,055
Total Minnesota
$5,259,873
A full listing of all the announced CTAS awards is available here.
Tribal Victim Services Set-Aside Program
Grantee
Amount Awarded
Minnesota Lower Sioux Indian Community
$505,795
Minnesota White Earth Reservation tribal Council
$897,581
Minnesota Upper Sioux Community
$336,860
Minnesota Red Lake Band of Chippewa Indians
$898,003
Total Minnesota
$2,638,239
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.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.s. Attorney Kurt Alme Announces Awards of $9 Million in Grants to Improve Public Safety, Serve Crime Victims in Montana's Tribal CommunitiesRead the Press Release
BILLINGS— U.S. Attorney Kurt Alme today announced $9,061,668 in Department of Justice grants to improve public safety, serve victims of crime and support youth programs in tribal communities in Montana.
“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.”
"Our American Indian neighbors deserve to be safe. Methamphetamine, alcohol and now COVID-19 are causing significant violence in our tribal communities. We are very pleased that these funds are going directly to our tribal governments to enhance public safety and protect women and other victims of crime," U.S. Attorney Alme 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).
Montana tribes receiving CTAS grants totaling $5,024,552 are the Chippewa Cree Tribe of the Rocky Boy's Reservation, $683,864; Confederated Salish and Kootenai Tribes, $3,024,726; and the Fort Peck Assiniboine and Sioux Tribes, $1,315,962.
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.
Montana tribes receiving Tribal Victim Services Set-Aside Program grants totaling $4,037,116 are the Crow Tribe, $898,003; Fort Belknap Indian Community, $694,698; Chippewa Cree Tribe, $478,311; Blackfeet Tribe, $1,188,088; and the Fort Peck Assiniboine & Sioux Tribes, $778,016.
“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.
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U.s. Attorney Announces Federal Grant for Passamaquoddy Tribe to Address Violence Against WomenRead the Press Release
PORTLAND, Maine: U.S. Attorney Halsey B. Frank has announced $770,467 in Department of Justice grants to the Passamaquoddy Tribe at Indian Township to battle domestic violence.
“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.”
“Unfortunately, Maine is not immune from the scourge of domestic violence, and that includes our Native American populations,” U.S. Attorney Frank said. “My hope is that this funding will go a long way toward ensuring they have the resources they need to assist victims and bring those responsible for domestic violence to justice.”
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 (OJP) ($41.5 million), Office on Violence Against Women (OVW) ($39.1 million) and Office of Community Oriented Policing Services (COPS Office) ($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, OVW 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.
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.
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.
Two Men Charged in Social Media Account Takeover Schemes Involving Professional and Semi-Professional AthletesRead the Press Release
NEWARK, N.J. – Two men will appear in federal court to face charges that they were involved in the unauthorized takeover of social media and other personal online accounts belonging to professional and semi-professional athletes, U.S. Attorney Craig Carpenito announced today.
Trevontae Washington, 21, of Thibodaux, Louisiana, and Ronnie Magrehbi, 20, of Orlando, Florida, are each charged in separate criminal complaints with one count of conspiracy to commit wire fraud and one count of conspiracy to commit computer fraud and abuse. Washington is scheduled to appear today before U.S. Magistrate Judge Janis van Meerveld in the Eastern District of Louisiana. Magrehbi is scheduled to appear today before U.S. Magistrate Judge Gregory Kelly in the Middle District of Florida.
According to documents filed in this case and statements made in courts:
At various times between December 2017 and April 2019, Washington and Magrehbi took part in illegal schemes to gain access to social media and other personal online accounts belonging to professional and semi-professional athletes, including athletes employed by the National Football League (NFL) and the National Basketball Association (NBA).
Washington is alleged to have compromised accounts belonging to multiple NFL and NBA athletes. Washington phished for the athletes credentials, messaging them on platforms like Instagram with embedded links to what appeared to be legitimate social media log-in sites, but which, in fact, were used to steal the athletes’ user names and passwords. Once the athletes entered their credentials, Washington and others locked the athletes out of their accounts and used them to gain access to other accounts. Washington then sold access to the compromised accounts to others for amounts ranging from $500 to $1,000.
Magrehbi is alleged to have obtained access to accounts belonging to a professional football player, including an Instagram account and personal email account. Magrehbi extorted the player, demanding payment in return for restoring access to the accounts. The player sent funds on at least one occasion, portions of which were transferred to a personal bank account controlled by Magrehbi, but never regained access to his online accounts.
The wire fraud conspiracy charges carry a statutory maximum of 20 years in prison and a fine of up to $250,000. The computer fraud conspiracy charges carry a statutory maximum of five years in prison and a fine of up to $250,000.
U.S. Attorney Carpenito credited special agents of the U.S. Secret Service, under the direction of Special Agents in Charge Mark McKevitt in Newark, Caroline O’Brien-Buster in Orlando, and Leslie Pichon in New Orleans; members of the New Jersey Division of Criminal Justice Financial and Computer Crimes Bureau, under the direction of New Jersey Attorney General Gurbir S. Grewal, and members of the Thibodaux, Louisiana, Police Department.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrimes Unit in Newark.
The charges and allegations in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Kansas Tribes to Receive Federal Public Safety GrantsRead the Press Release
TOPEKA, KAN. – Two Kansas Indian tribes will receive a total of more than $2 million in Department of Justice grants for public safety, U.S. Attorney Stephen McAllister said today.
The Prairie Band Potawatomi will receive $841,082 from the Violence Against Women Tribal Governments Program and $694,698 from Tribal Victim Services Set-Aside Formula Program Awards.
The Iowa Tribe of Kansas and Nebraska will receive $505,757 from Tribal Victim Services Set-Aside Formula Program Awards.
“These funds will assist these important tribes and their leaders in Kansas in their efforts to protect and support the victims and survivors of violence, to hold violent actors responsible and to prevent future violence by addressing the causes of violence in their communities,” McAllister said.
The grants are part of a Justice Department announcement that it has awarded more than $295.8 million nationally to improve public safety, serve victims of crime and support youth programs in American Indian and Alaska Native communities.
Two Isis Members Charged with Material Support ViolationsRead the Press Release
Miami, Fl. -- Two United States citizens who were detained by the Syrian Democratic Forces (SDF) and recently transferred to the custody of the FBI have been charged with material support violations relating to their support for the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Emraan Ali, 53, a U.S. citizen born in Trinidad & Tobago, was charged in a complaint with providing and attempting to provide material support to ISIS, in violation of Title 18, United States Code, Section 2339B. Emraan Ali had his initial appearance today in federal court and his pre-trial detention hearing is scheduled on Friday, October 2, 2020 at 1:30 P.M. before U.S. Magistrate Judge Edwin G. Torres.
Jihad Ali, 19, a U.S. citizen born in New York, was charged in a complaint with conspiracy to provide material support to ISIS, in violation of Title 18, United States Code, Section 371. Jihad Ali had his initial appearance today in federal court and his pre-trial detention hearing is scheduled on Monday, October 5, 2020 at 1:30 P.M. before U.S. Magistrate Judge Chris M. McAliley.
According to the criminal complaints, in March 2015, Emraan Ali traveled to Syria with his family, including his son, Jihad Ali, to join ISIS. Both Emraan Ali and Jihad Ali received military and religious training and served as fighters in support of the terrorist organization. In addition to serving as a fighter, Emraan Ali served in various other roles in support of ISIS. Emraan and Jihad Ali finally surrendered to the SDF near Baghuz in March 2019, during the last sustained ISIS battles to maintain territory in Syria.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, John C. Demers, Assistant Attorney General for National Security, George Piro, Special Agent in Charge, FBI, Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
Ms. Fajardo Orshan and Assistant Attorney General Demers commended the investigative efforts of the FBI and the JTTF. The case is being prosecuted by Assistant U.S. Attorneys Rick Del Toro and Jonathan Kobrinski, with assistance from Trial Attorney Elisa Poteat of the National Security Division’s Counterterrorism Section.
A criminal complaint is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two ISIS Members Charged with Material Support ViolationsRead the Press Release
Two United States citizens who were detained by the Syrian Democratic Forces (SDF) and recently transferred to the custody of the FBI have been charged with material support violations relating to their support for the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
John C. Demers, Assistant Attorney General for National Security, Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George Piro, Special Agent in Charge, FBI, Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
Emraan Ali, 53, a U.S. citizen born in Trinidad & Tobago, was charged in a complaint with providing and attempting to provide material support to ISIS. Jihad Ali, 19, a U.S. citizen born in New York, was charged in a complaint with conspiracy to provide material support to ISIS. Both defendants had their initial appearances today in federal court in the Southern District of Florida before U.S. Magistrate Judge Edwin G. Torres.
According to the criminal complaints, in March 2015, Emraan Ali traveled to Syria with his family, including his son, Jihad Ali, to join ISIS. Both Emraan Ali and Jihad Ali received military and religious training and served as fighters in support of the terrorist organization. In addition to serving as a fighter, Emraan Ali served in various other roles in support of ISIS. Emraan and Jihad Ali finally surrendered to the SDF near Baghuz in March 2019, during the last sustained ISIS battles to maintain territory in Syria.
Assistant Attorney General Demers and Ms. Fajardo Orshan commended the investigative efforts of the FBI and the JTTF. The case is being prosecuted by Assistant U.S. Attorneys Rick Del Toro and Jonathan Kobrinski, with assistance from Trial Attorney Elisa Poteat of the National Security Division’s Counterterrorism Section.
A criminal complaint is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Two Doctors, Two Licensed Physical Therapists, a Pharmacist, and Four Pharmacy Owners and Operators Among Those Charged in Brooklyn as Part of National Health Care Fraud TakedownRead the Press Release
Fifteen individuals, including two doctors, two licensed physical therapists, a licensed clinical social worker, a pharmacist and four pharmacy owners and operators, have been charged for their participation in schemes that fraudulently billed the Medicare and Medicaid programs for more than $15 million. The charges filed in federal court in Brooklyn, New York are part of a nationwide health care fraud takedown led by the Medicare Fraud Strike Force, which resulted in criminal charges against more than 300 individuals for their alleged participation in health care fraud schemes involving approximately $6 billion in fraudulent claims.
The charges were announced by Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; Brian C. Rabbitt, Acting Assistant Attorney General of the Justice Department’s Criminal Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Scott Lampert, Special Agent-in- Charge, U.S. Department of Health and Human Services - Office of Inspector General, Office of Investigations, New York Regional Office (HHS-OIG); Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), Acting Medicaid Inspector General Erin E. Ives of New York State Office of the Medicaid Inspector General (OMIG) and Dermot F. Shea, Commissioner New York City Police Department (NYPD).
The results of the nationwide takedown were announced today Acting Assistant Attorney General Rabbitt; Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division; Deputy Inspector General Gary Cantrell of HHS-OIG; and Assistant Administrator Tim McDermott of the DEA.
“The defendants, many of them healthcare professionals, abused their positions by engaging in fraud in order to steal precious benefit funds that were meant to help the most vulnerable among us,” stated Acting United States Attorney DuCharme. “The U.S. Attorney’s Office for the Eastern District of New York is working arm-in-arm with our federal and local law enforcement partners to protect our community and our taxpayer-funded programs from the potential harm posed by corrupt healthcare professionals and those who aid them.”
“This nationwide enforcement operation is historic in both its size and scope, alleging billions of dollars in healthcare fraud across the country,” stated Acting Assistant Attorney General Rabbitt. “These cases hold accountable those medical professionals and others who have exploited health care benefit programs and patients for personal gain. The cooperative law enforcement actions announced today send a clear deterrent message and should leave no doubt about the department’s ongoing commitment to ensuring the safety of patients and the integrity of health care benefit programs, even amid a national health emergency.”
“As alleged today, the defendants took advantage of programs established for the benefit of those less fortunate, illegally profiting by ripping off the rest of the law abiding public,” stated FBI Assistant Director-in-Charge Sweeney. “This is not a victimless crime - health care fraud is a theft against all of us who contribute hard earned income and taxes into the system. While today’s charges are a victory for the public at large, and those who play by the rules, they also highlight a constant glaring problem. It is easy to illegally profit in the health care field, and the FBI’s New York office will continue to investigate and hold accountable those who break federal law while lining their own pockets.”
“Medical professionals who scheme to enrich themselves through health care fraud – such as Dr. Kalepu’s participation in a telefraud durable medical equipment scam -- undermine taxpayer-funded programs and drive up health care costs for everyone,” stated HHS-OIG Special Agent-in-Charge Lampert. “This takedown shows our commitment to collaborate with our law enforcement partners and effectively investigate such corrosive fraud schemes.”
“It is our duty to weed out those health care professionals who manipulate their position for profit,” stated DEA Special Agent-in-Charge Donovan. “DEA, and our law enforcement partners, are committed to safeguarding the integrity of our healthcare system and keeping Americans safe. I applaud all of our partners for their significant work in these investigations.”
“IRS-CI is proud to lend our financial expertise in this effort to uncover a wide web of criminal behavior that impacts our financial system and public trust,” stated IRS-CI Special Agent-in-Charge Larsen. “Both Diler and Hussnain are guilty of conspiring to participate in this broad scheme to steal from the United States taxpayers through both Medicare and Tax Fraud.”
“These arrests serve notice to those who attempt to exploit the Medicaid program for personal gain,” stated Acting Medicaid Inspector General Ives. “My office will continue to work closely with our law enforcement partners to root out fraud and hold wrongdoers fully accountable.”
“This sweeping set of federal charges highlights law enforcement’s combined efforts to protect innocent citizens and ensure integrity across our vital health systems,” stated NYPD Commissioner Shea. “I commend our NYPD investigators, and all of our partners, for their important work in these cases.”
Schemes charged in the Eastern District of New York, detailed in three indictments, five complaints and three criminal information, include the following:
United States v. Dalmacio Francisco and Michael Othman: The complaint charges Dr. Delmacio Francisco and Michael Othman with oxycodone distribution. The complaint alleges that Dr. Francisco, who operated two medical offices in Queens, provided large-quantity oxycodone scripts to “patients” – individuals he never actually evaluated – who were recruited by Othman in exchange for cash. Dr. Francisco also prescribed oxycodone in the names of two individuals who were incarcerated when the prescriptions were issued. During a search of Francisco’s home, DEA agents found $150,000 in bundled cash in a hidden lock box. Both defendants made their initial appearance by video before United States Magistrate Judge Steven M. Gold on May 20, 2020. The case is being prosecuted by Assistant United States Attorneys James McDonald and Elizabeth Macchiaverna of the U.S. Attorney’s Office for the Eastern District of New York.
United States v. Anand Kalepu: The information charges Anand Kalepu, a medical doctor, with conspiracy to commit health care fraud. The charges stem from Dr. Kalepu’s work with a telemedicine company through which he allegedly caused the submission of false and fraudulent claims for durable medical equipment (“DME”) to Medicare. Between 2018 and 2019 the amount billed to Medicare for Dr. Kalepu’s DME prescriptions was in excess of $1.3 million. Dr. Kalepu pleaded guilty to the information before United States District Judge Ann M. Donnelly at the federal courthouse in Brooklyn, and the guilty plea was unsealed on September 30, 2020. The case is being prosecuted by Trial Attorney Miriam Glaser Dauermann of the Criminal Division’s Fraud Section.
United States v. Mahmoud Elsanaa and Olga Popovych: The indictment charges Mahmoud Elsanaa, a licensed physical therapist and clinic owner, and Olga Popovych, the office manager of several physical therapy clinics controlled by Elsanaa, with one count of conspiracy to commit health care fraud (Elsanaa only) and one count of conspiracy to falsify medical records (Elsanaa and Popovych). The charges stem from the defendants’ alleged role in the operation of physical therapy clinics that billed Medicare and Medicaid for services that were unnecessary, procured by kickbacks, provided by unlicensed practitioners, or otherwise not provided as billed. Elsanaa and Popovych were arrested and arraigned before United States Magistrate Judge Lois Bloom on September 17, 2020. The case is being prosecuted by Trial Attorney Miriam Glaser Dauermann of the Criminal Division’s Fraud Section.
United States v. Mazen Abdel Magid: The complaint charges Mazen Abdel Magid, a licensed physical therapist and clinic owner and a business partner of Mahmoud Elsanaa, with one count of submitting false claims to Medicare. The charges stem from Abdel Magid’s alleged submission of claims to Medicare for physical therapy services purportedly provided at his physical therapy clinic when, in fact, he was overseas and could not have provided the services. Abdel Magid was arrested and made an initial appearance before United States Magistrate Judge Lois Bloom on September 17, 2020. The case is being prosecuted by Trial Attorney Miriam Glaser Dauermann of the Criminal Division’s Fraud Section.
United States v. Vladimir Geykhman: The indictment charges Vladimir Geykhman with one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. The charges stem from the defendant’s alleged role in falsifying physical evaluation records in support of claims submitted through no-fault automobile insurance policies and laundering the proceeds therefrom. Between March 2019 and August 2019, Geykhman was paid by New York State automobile insurance providers a total of approximately $1 million for claims that were based upon falsified patient records. Geykhman was arrested and arraigned before United States Magistrate Judge Lois Bloom on September 17, 2020. The case is being prosecuted by Miriam Glaser Dauermann of the Criminal Division’s Fraud Section.
United States v. Xuan Di Huang: The complaint charges Xuan Di Huang, also known as “Wendy Huang,” an owner and operator of Zhiqing Social Adult Day Care in Flushing, Queens, with aiding and abetting and a substantive violation of the Anti-Kickback Statute. The charges stem from a scheme in which Huang allegedly paid and offered to pay kickbacks to Medicaid beneficiaries for their attendance at Zhiqing Social Adult Day Care. Between August 2019 and March 2020, Huang, through Zhiqing Social Adult Day Care, billed approximately $3.2 million dollars to long term managed care plans for Medicaid beneficiaries. Huang was arrested and arraigned on August 27, 2020 before United States Magistrate Judge Lois Bloom. The case is being prosecuted by Assistant United States Attorney Elizabeth Macchiaverna of the U.S. Attorney’s Office for the Eastern District of New York.
United States v. Nisha Diler: The information charges Nisha Diler, a licensed pharmacist, with conspiracy to commit health care fraud and subscribing a false tax return. The charges stem from Diler’s role in a scheme to hold herself out as the supervising pharmacist at New Moon Pharmacy, when in fact she did not work at the pharmacy. Diler was paid kickbacks by Hussnain for her role in the scheme, which she then under-reported on her taxes. Between 2016 and 2019, Medicare and Medicaid reimbursed the pharmacy approximately $3 million for pharmaceutical claims submitted through New Moon Pharmacy. Diler pleaded guilty to the information before United States District Judge Rachel Kovner at the federal courthouse in Brooklyn on September 16, 2020. The case is being prosecuted by Trial Attorney Miriam Glaser Dauermann of the Criminal Division’s Fraud Section.
United States v. Harris Hussnain: The information charges Harris Hussnain with conspiracy to commit health care fraud, narcotics distribution and unlawful financial transactions. The charges stem from Hussnain’s ownership of a Queens pharmacy, New Moon Pharmacy, and dispensing of prescription medications, including large amounts of Oxycodone, when the pharmacy did not employ a full-time licensed pharmacist. Instead, Hussnain paid a co-conspirator, Nisha Diler, a licensed pharmacist, to hold herself out as the full-time pharmacist despite the fact that she visited the pharmacy only sporadically. Between 2016 and 2019 Medicare and Medicaid reimbursed New Moon Pharmacy approximately $3 million for pharmaceutical claims. Hussnain pleaded guilty to the information before United States District Judge Rachel Kovner at the federal courthouse in Brooklyn on September 29, 2020. The case is being prosecuted by Trial Attorney Miriam Glaser Dauermann of the Criminal Division’s Fraud Section.
United States v. Aleah Mohammed, Aripha Mohammed and Shejer El Maliki: A criminal complaint charges Aleah Mohammed, Aripha Mohammed and Shejer El Maliki, the owners and operators of the pharmacy Village Stardrugs Inc. in Queens, New York, with conspiracy to commit health care fraud. Additionally, Aleah Mohammed was charged with health care fraud and aggravated identity theft, and Aripha Mohammed and Shejer El Maliki were each charged with money laundering. The charges stem from their alleged roles in a scheme to submit claims through the pharmacy for medications that were not in fact prescribed as claimed, including claims for purportedly dispensing medications when the pharmacy was no longer licensed by the State of New York. From March 2019 to March 2020, Medicare Part D plans reimbursed the pharmacy approximately $1.5 million for pharmaceutical claims, $1.4 million of which was reimbursed when the pharmacy was no longer licensed. Aleah Mohammed, Aripha Mohammed and Shejer El Maliki were arrested and arraigned before United States Magistrate Judge Roanne L. Mann on September 23, 2020. The case is being prosecuted by Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section.
United States v. Gorgi Naumovski: The indictment charges Naumovski, the owner and operator of a durable medical equipment company Life Source Medical, Inc., in Greensboro, North Carolina, with one count of conspiracy to commit health care fraud. The charge stems from Naumovski’s alleged role in a scheme in which claims were submitted to Medicare for durable medical equipment, including orthotic braces, where the defendant and his co-conspirators paid bribes and kickbacks by purchasing doctors’ orders for the equipment, including equipment that was not medically necessary. Between April 2016 and December 2018, Life Source Medical billed Medicare approximately $4.1 million for claims for orthotics-related equipment and was paid approximately $1.8 million on those claims. Naumovski was arrested and arraigned before United States Magistrate Judge Reona J. Daly by video in Benton, Illinois on September 29, 2020. The case is being prosecuted by Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section.
The charges are allegations and the defendants are presumed innocent unless and until proven guilty.
The Defendants:
NISHA DILER
Age: 40
Hicksville, NYE.D.N.Y. Docket No.: 20-CR-279 (RPK)
HARRIS HUSSNAIN
Age: 40
Queens, NYE.D.N.Y. Docket No. 20-CR-280 (RPK)
VLADIMIR GEYKHMAN
Age: 43
BROOKLYN, NYE.D.N.Y. Docket No.: 20-CR-371 (AMD)
MAHMOUD ELSANAA
Age: 36
Wayne, NJPOPOVYCH, OLGA
Age: 37
Brooklyn, NYE.D.N.Y. Docket No.: 20-CR-373 (LDH)
MAGID, MAZEN ABDEL
Age: 37
Brooklyn, NYE.D.N.Y. Docket No.: 20-MJ- 812
DR. ANAND KALEPU
Age: 70
Cleveland, OHE.D.N.Y. Docket No. 19-CR-602
DR. DALMACIO FRANCISCO
Age: 75
Queens, NYMICHAEL OTHMAN
Age: 48
Queens, NYE.D.N.Y. Docket No.: 20-MJ-380
XUAN DI HUANG
Age: 59
Queens, NYE.D.N.Y. Docket No. 20-MJ-733
GORGI NAUMOVSKI
Age: 52
DuQuoin, IL.E.D.N.Y. Docket No.: 20-CR-384 (WFK)
ALEAH MOHAMMED (also known as “Abby”)
Age: 35
Queens, NYARIPHA MOHAMMED
Age: 33
Queens, NYSHEJER EL MALIKI (also known as “Shaggy”)
Age: 33
Queens, NYE.D.N.Y. Docket No. 20-MJ-851
Two Buffalo Men Indicted on Multiple Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Hector Cordero, 32, and Damien Cruz, 23, both of Buffalo, NY, with possessing with intent to distribute cocaine and marijuana, maintaining a drug involved premises, and possessing firearms in furtherance of drug trafficking offenses. The charges carry a mandatory minimum penalty of five years in prison and a maximum of life.
Assistant U.S. Attorney Charles E. Watkins, Jr., who is handling the case, stated that according to the indictment and a previously filed complaint, on September 16, 2020, investigators conducted a traffic stop of defendant Cordero’s vehicle and detained him pending the completion of a search warrant at his residence on Roanoke Parkway in Buffalo. Members of the FBI Buffalo Safe Streets Task Force and Lackawanna Police Department executed the search warrant and recovered over $30,000 in cash, a money counter, digital scales, large plastic bags containing white residue, and approximately a half pound of suspected marijuana. In addition, investigators located two mechanical presses, commonly used to shape cocaine into bricks, a safe containing approximately 60 ounces (approximately 1700 grams) of a white powdery substance, a handgun loaded with five rounds of ammunition, and four additional boxes of ammunition in a shed on the property. They also found a safe inside the shed.
Members of the FBI Buffalo Safe Streets Task Force, the Buffalo Police Department and the Lackawanna Police Department also executed a search warrant at 1042 Grant Street in Buffalo. During that search law enforcement officers located plastic bags containing suspected marijuana, other plastic bags containing a white powdery substance, and a mechanical press, similar to the devices located at the Roanoke Parkway residence. Investigators also located a second safe, which contained plastic bags with suspected marijuana and a white powdery substance, a digital scale and packaging with white residue, and the lower receiver of a handgun.
During the execution of the search warrant at 1042 Grant Street, investigators encountered defendant Cruz on the second floor, coming from the stairs that led to an attic. They observed that Cruz had dirt on his hands, feet, and one knee, and no shoes on his feet. Officers subsequently searched the attic and observed foot prints on the floor that lead to a small hole in the floor boards. Inside the hole was a handgun, with an extended magazine containing at least 16 rounds of ammunition. Small plastic bags containing a white powdery substance were also recovered.
The defendants were arraigned before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and detained.
The indictment is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the Lackawanna Police Department, under the direction of Chief Mark Packard; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Three Sentenced for Thefts Related to Cyber Intrusion at Sumter County School DistrictRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Josten Rakeem-Hassan Brown (28, Greenville, SC) to 20 months in federal prison for using an unauthorized access device (credit card). Two other defendants have also been sentenced in connection with the offense. Kenbee Omari Hughey (41, Detroit, MI) was sentenced in the Middle District of Florida to 15 months’ imprisonment by United States District Judge Roy B. Dalton, Jr. Dejon Romans Brown (22, Puyallup, WA) was sentenced in the Western District of Washington by United States District Judge Robert S. Lasnik.
According to court records, all three defendants agreed to purchase electronics using fraudulent credit cards issued to them under false names on behalf of the Sumter County School District in Bushnell, Florida. A Russian citizen used a malicious software program to gain access to the district’s computer network while the students and staff were gone for the winter break in 2018. After gaining access, the intruder had credit cards issued using the district’s bank account information and sent the cards to the defendants in California, Michigan, and South Carolina. The defendants then used the credit cards to purchase tens of thousands of dollars in electronic equipment, including cellphones and tablet computers. Following the fraudulent purchases, the defendants sent the electronics to another accomplice, who then resold the items in the United States and internationally.
As a result of these actions, the Sumter County School District suffered a budget shortfall of approximately $206,000 this year. Each of the defendants were ordered to pay restitution totaling $206,094.40. Josten Brown was ordered to pay $59,153.89, Hughey was ordered to pay $88,433.97, and Dejon Brown was ordered to pay $58,506.54.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
Three Men Plead Guilty to Healthcare Kickback ConspiraciesRead the Press Release
ALEXANDRIA, Va. – An attorney, pharmacist, and sales representative have each pleaded guilty to conspiracy to pay or receive health care kickbacks.
“Health care fraud harms us all and steals valuable resources from those who are in need,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Our office and our law enforcement partners will continue to devote its resources and time to uncovering and detecting health care fraud and those individuals who put their greed above the interests of the public good.”
According to court documents, Daniel Tyler Walker, 50, of Lewes, Delaware, Michael Beatty, 53, of Pasadena, Maryland, and Seth Myers, 52, of Crystal Lake, Illinois, pleaded guilty to engaging in a conspiracy where each defendant either paid or received money in an effort to induce or reward the referral of health care services payable by federal health care programs, including TRICARE, a health care program for uniformed service members, retirees, and their families, Medicare, and Medicaid. In total, the related conspiracies involved millions of dollars of health care kickback payments.
“These pleas demonstrate what happens when medical professionals and those around them betray the public’s trust in the medical system to satisfy their own greed,” said Robert E. Bornstein, Acting Special Agent in Charge of FBI Washington Field Office Criminal Division. “The abuse of the healthcare system can divert federal funds from where they are truly needed, which can put our most vulnerable citizens at risk. The FBI and its local, state and federal partners, are fully committed to identifying individuals who chose to prioritize their own interests in place of appropriate medical care for patients, and we will continue to work with our partners to bring them justice.”
According to court documents, Walker was a medical sales specialist for a pharmaceutical company headquartered in the Eastern District of Virginia. In connection with this role, Walker conspired with the owner of Royal Care Pharmacy to engage in a kickback scheme in which Walker received payments from Royal Care Pharmacy and its affiliate entities in exchange for referring and directing health care providers to have prescriptions for a drug manufactured by Walker's employer filled at Royal Care. Payments for those prescriptions were made in whole or in part under various federal health care programs, including TRICARE, Medicare, Virginia Medicaid, and Maryland Medicaid. Walker and his co-conspirators agreed that he would receive 25 percent of all net sales of the drug filled by Royal Care. During the conspiracy, Royal Care profited more than $1.2 million from the scheme, and in turn, Walker received at least $573,000 in kickbacks for his role in the fraud. As part of his plea agreement, Walker has agreed to forfeit $671,790 to the United States, which represents the proceeds that he received during the course of the conspiracy.
Walker pleaded guilty on Tuesday to conspiracy to solicit and receive health care kickbacks. He faces a maximum penalty of five years in prison when sentenced on Jan. 29, 2021.
“The Defense Criminal Investigative Service is committed to protecting the integrity of the U.S. military health care program to provide top quality medical care to America's Warfighters and their families, while ensuring that health care providers and facilities comply with Federal laws,” said Robert E. Craig Jr., Special Agent in Charge of the DCIS Mid-Atlantic Field Office. “Through joint investigations with our law enforcement partners, DCIS aggressively pursues criminal prosecutions and all available remedies to bring violators to justice. These guilty pleas demonstrate the effectiveness of our investigative efforts.”
According to court documents, Beatty was a pharmacist who practiced in Fallston, Maryland. Beatty, Seth Myers, and a physician who practiced in both Virginia and Maryland entered into a kickback arrangement in which Beatty agreed to pay a company controlled by the physician kickbacks in exchange for the physician referring prescriptions for very expensive compound drugs to Beatty and his pharmacy. Payments for these compound prescriptions were made in part by TRICARE. During the course of the conspiracy, TRICARE paid the co-conspirators a total of approximately $344,280. The pharmacy where Beatty worked made a net profit of approximately $295,782 from payments made by TRICARE for the compound prescriptions that were part of the kickback scheme. In turn, Beatty paid the physician controlled company approximately $147,891 in kickbacks.
“Compounded drugs can serve an important role for patients whose medical needs cannot be met by an FDA-approved drug product. Patients should always receive the medications they need to treat their condition, not medicines that bring financial benefits to the health care provider or pharmacist,” said Mark S. McCormack, Special Agent in Charge of FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice those who put profits above a patient’s health.”
Beatty also pleaded guilty on Tuesday to conspiracy to offer and pay health care kickbacks. He faces a maximum penalty of five years in prison when sentenced on Jan. 15, 2021.
According to court documents, Myers was a licensed attorney who worked with a physician that practiced in Virginia and Maryland. Myers conspired with the physician to solicit kickback payments from the owner of multiple northern Virginia-based pharmacies, including Royal Care Pharmacy, and Michael Beatty, a pharmacist, in exchange for the physician referring prescriptions for very expensive compound drugs to the pharmacies. Payments for these compound prescriptions were made in part by TRICARE. During the course of the conspiracy, TRICARE paid the pharmacies approximately $4.8 million. In turn, the pharmacies paid Myers and his physician co-conspirator approximately $2.6 million in kickback payments. As part of his plea agreement, Myers has agreed to forfeit $428,124 to the United States, which represents the proceeds that he received during the conspiracy.
Myers pleaded guilty today to conspiracy to solicit and receive health care kickbacks. He faces a maximum penalty of five years in prison when sentenced on Jan. 29, 2021.
The Office of Inspector General for the U.S. Office of Personnel Management, and the Office of Inspector General for the U.S. Department of Health and Human Services assisted in the investigation.
Assistant U.S. Attorneys Uzo Asonye, Monika Moore, Carina Cuellar, and Jamar K. Walker are prosecuting the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-234, 1:20-cr-209, and 1:20-cr-235.
Tenderloin Drug Dealer Accused of Trafficking Fentanyl That Killed One, Injured AnotherRead the Press Release
SAN FRANCISCO – Charges were unsealed today accusing a Tenderloin drug dealer of selling fentanyl that led to the overdose death of one individual and the hospitalization of another individual, announced United States Attorney David L. Anderson and Assistant Special Agent in Charge Toby Schwartz of the Drug Enforcement Administration. Additional facts regarding the investigation and charges can be found here: https://youtu.be/6Xy3vG9bwq4
According to the complaint, on May 18, 2020, the defendant, Celin David Doblado-Canaca, age 38, sold fentanyl that was packaged as cocaine near the corner of Golden Gate Avenue and Hyde Streets in San Francisco’s Tenderloin District. The drugs were taken to San Bruno, California, where the substance was ingested later that night by two individuals who believed they were using cocaine. The fentanyl killed one user and nearly killed another. The victims were discovered by a family member in the early hours of May 19, 2020.
“Fentanyl is pouring into our community from China and Mexico. Because it is incredibly powerful in even the smallest doses, fentanyl is being mixed with other drugs and marketed as other drugs. Many drug users who die of fentanyl overdoses never even know that they have been given fentanyl. The epicenter of this fentanyl disaster is the Tenderloin neighborhood in San Francisco,” said U.S. Attorney Anderson. “I feel strongly that the Tenderloin is a wonderful neighborhood, a diverse neighborhood, a relatively affordable neighborhood, a neighborhood of children and the elderly. However, the Tenderloin neighborhood is also home to an open-air drug market that is spreading death throughout the Bay Area. The drug dealing that is openly oppressing the Tenderloin is quietly undermining neighborhoods across San Francisco, Oakland, San Mateo, Sonoma, Marin County and elsewhere. What happens in the Tenderloin does not stay in the Tenderloin.”
“We know fentanyl is potent and fatal in the smallest amounts. We are increasingly seeing it mixed with other drugs or sold as something else. Unfortunately, the user often doesn’t know this until it is too late. It is truly a game of Russian roulette,” said DEA Assistant Special in Charge Schwartz. “Working with our local counterparts in these drug overdose cases is a priority for us. We want to send the message to all those who are distributing this poison in our community, we will find you and bring you to justice. I would like to acknowledge the outstanding efforts by officers from the San Bruno, South San Francisco, and San Francisco Police Departments for their partnership in this investigation.”
The complaint affidavit describes how investigators traced backwards from the scene of the overdose death in San Bruno to the Tenderloin, and ultimately identified Doblado-Canaca as the alleged source of the fentanyl. As part of their investigation, officers stopped and searched Doblado-Canaca when he entered a liquor store at the corner of Hyde and Turk Streets in San Francisco, where he was found to have more than a dozen small baggies of substances alleged to be fentanyl and heroin. The drugs and their packaging appeared to be organized for sale.
Doblado-Canaca was arrested in San Francisco on August 21, 2020, and made his initial appearance in federal court in San Francisco on August 25, 2020. Doblado-Canaca is currently being held in custody pending further proceedings. The case was unsealed today, on September 30, 2020, when Doblado-Canaca made an appearance before the Honorable Alex G. Tse, U.S. Magistrate Judge.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years, and a fine of $1,000,000, for each violation of Title 21, United States Code, Section 841(a)(1) and (b)(1)(C). 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.
This case was prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies. The case was investigated by the Drug Enforcement Administration, the San Bruno Police Department, the South San Francisco Police Department, and the San Francisco Police Department.
Storm Lake Man Pleads Guilty to Meth and Firearm ChargesRead the Press Release
A man who conspired to distribute methamphetamine while possessing firearms pled guilty September 16, 2020, in federal court in Sioux City.
Jacob Hernandez, 26, from Storm Lake, Iowa, was convicted of conspiracy to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime.
At the plea hearing, Hernandez admitted that from January 2020 through March 2020, he was involved in a conspiracy that distributed more than 4 pounds of methamphetamine in the Storm Lake and Fonda areas. In March 2020, law enforcement officers executed a search warrant at Hernandez’s residence. During the search, officers seized $5,010 cash on Hernandez, cell phone, torch lighter, and vape pen. Officers also searched Hernandez’s garage and found: a Kimber .45 caliber pistol and a 20 gauge shotgun; approximately 2 ounces of methamphetamine and 1.4 pounds of marijuana, 3 ounces of marijuana, drug ledgers, drug paraphernalia, various types of ammunition, vacuum seal bags, vacuum sealer, and two ballistic vests.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Hernandez will remain in custody pending sentencing. Hernandez faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment on the drug conviction. On the firearm conviction, Hernandez faces a mandatory minimum sentence of 5 years’ imprisonment, which must be served consecutive to any term of imprisonment imposed on the drug conviction and a possible maximum sentence of life imprisonment, a $250,000 file, and up to five years of supervised release.
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.
The case is being prosecuted by Assistant United States Attorney Mikala Steenholdt and was investigated by the Iowa Department of Narcotics Enforcement, Buena Vista County Sheriff’s Office, Clay County Sheriff’s Office, Sac County Sheriff’s Office, and the Iowa Division of Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3029. Follow us on Twitter @USAO_NDIA.
Statement Regarding Deputation of State and Local Law Enforcement OfficersRead the Press Release
PORTLAND, Ore.— Billy J. Williams, U.S. Attorney for the District of Oregon, and Russ Burger, U.S. Marshal for the District of Oregon, provide the below statement on ongoing violence in Portland:
The U.S. Marshal will not cancel the cross-deputation of local and state law enforcement officers. Law enforcement and law-abiding citizens of Portland have endured months of nightly criminal violence and destruction. Officers have been repeatedly assaulted with bottles, bats, sledgehammers, lasers, rocks, and other weapons of convenience. In addition, the public has seen repeated efforts by criminals to burn down public buildings. These violent, senseless, and criminal acts have no bearing on social justice. They only serve to exacerbate lawlessness in this city. Federal cross-deputation of Oregon State Police, Multnomah County Sheriff and Portland Police Bureau personnel underscores the importance of providing accountability and deterrence for these criminal acts. Importantly, the federal deputation supports front line law enforcement officers and their families in a way that they have not seen from City Hall. Portlanders, and Oregonians in general are sick of the boarded-up and dangerous conditions prevalent in downtown Portland due to a lack of leadership. We call upon citizens of this city and state to denounce violence, demand accountability, and work together to end the violence.
Billy J. Williams Russ Burger
United States Attorney United States Marshal
District of Oregon District of Oregon
Springfield Man Sentenced for Heroin ConspiracyRead the Press Release
BOSTON – A Springfield man was sentenced today in connection with his role in a large-scale drug conspiracy that trafficked dozens of kilos of heroin and fentanyl into Springfield from Bronx, N.Y. and the Dominican Republic.
Marcos Pena, 31, was sentenced by U.S. District Court Judge Mark G. Mastroianni to four years in prison and five years of supervised release. In June 2019, Pena pleaded guilty to one count of conspiring to distribute and possession with intent to distribute heroin and two counts of distribution of and possession with intent to distribute more than 100 grams of heroin.
Pena admitted to his part in the conspiracy, which included, amongst other roles, transporting tens of thousands of dollars at a time to sources of heroin in the Bronx and transporting multiple kilograms of heroin back to Springfield, where the heroin would then be packaged at Springfield-based heroin mills.
Pena also admitted to distributing heroin to a government witness on two separate occasions in February 2016. On Feb. 10, 2016, Pena and co-defendant Alberto Marte sold approximately 125 grams of heroin to the witness. Pena again sold 125 grams of heroin to the same witness on Feb. 24, 2016.
Marte pleaded guilty and was sentenced to 180 months in prison.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County District Attorney Anthony D. Gulluni; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Springfield Police Commissioner Cheryl Clapprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office prosecuted the case.
Seventeen Arrested in Connection with Jasper County Drug Trafficking and Firearms ViolationsRead the Press Release
BEAUMONT, Texas - U.S. Attorney Stephen J. Cox announced today that 17 individuals have been arrested in the Eastern District of Texas pursuant to a federal indictment which alleges drug trafficking and firearms violations.
A federal grand jury returned the indictment on Sep. 17, 2020, charging the following individuals with drug and gun crimes:
Jonathan Limbrick, 43, of Jasper, Texas;
Rhonda Monschelle Felder, 36, of Houston, Texas;
Deandre Romerus Limbrick, 44, of Jasper, Texas;
Terrence Neil Bronson, 51, of Jasper, Texas;
Don Raynard Larkin, 46, of Beaumont, Texas;
Cedrick Demond Hunt, 42, of Beaumont, Texas;
Dominic Devonte Limbrick, 26, of Jasper, Texas;
Crystal Michelle Carruth, 39, of Jasper, Texas
Alisha Nicole Cleveland, 31, of Vidor, Texas;
Corey Devond McQueen, 34, of Jasper, Texas;
James Parker, 48, of Jasper, Texas;
Ernest Houston, 60, of Jasper, Texas;
Curtis Brumley, 44, of Jasper, Texas;
Russell Limbrick, 36, of Jasper, Texas;
Calvin Jewan Bell, 36, of Jasper, Texas;
Shana Brooks, 39, of Brookeland, Texas; and
Thomas Hadnot, 41, of Kirbyville, Texas.
The defendants were arrested by a joint law enforcement task force today and will make initial appearances in federal court next week.
According to court documents, the defendants are charged with possession and conspiracy to possess a controlled substance, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by an unlawful user of a controlled substance. This joint DEA and ATF operation began in 2018 when agents learned of a Jasper, Texas-based methamphetamine trafficking organization allegedly distributing large amounts of methamphetamine throughout Southeast Texas.
This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Jasper Police Department, the Beaumont Police Department; the Texas Department of Public Safety; the U.S. Marshals Service; the Harris County Sheriff’s Office; the Jasper County District Attorney’s Office; the Vidor Police Department; the Jefferson County Sheriff’s Office; the Orange County Sheriff’s Office; and the Texas Parks and Wildlife Service. This case is being prosecuted by Assistant U.S. Attorney Russell James. OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Second Defendant Pleads Guilty in Newton Armed RobberyRead the Press Release
WICHITA, KAN. – A second defendant pleaded guilty today to an armed robbery at a convenience store in Newton, Stephen McAllister said.
Rico Montes, 28, Wichita, Kan., pleaded guilty to one count of robbery. In his plea, Montes admitted he and co-defendant Jorge Correa, 25, Wichita, robbed the EZ Trip at 100 S. Main in Newton, Kan., while another man waited in the car. Montes and Correa were armed when they entered the store.
Montes is set for sentencing Dec. 16. He could face a penalty of up to 20 years in federal prison and a fine up to $250,000.
Correa pleaded guilty last week and is set for sentencing Dec. 8. He admitted firing several shots during the robbery. No one was injured. A third defendant, Jeremiah Urias, 18, Wichita, who is alleged to have driven the getaway car, is set for a change of plea hearing Oct. 13.
McAllister commended the FBI, the Kansas Highway Patrol, the Newton Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
San Antonio Woman Sentenced to Federal Prison for Stealing over $973,000 from Her Former EmployerRead the Press Release
In San Antonio, a federal judge sentenced 46-year-old Rosalinda Fuentes to 45 months in federal prison for stealing more than $973,000 from her former employer, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Fuentes pay $973,760.98 in restitution to her former employer and be placed on supervised release for a period of one year after completing her prison term. Following today’s hearing, Judge Ezra remanded Fuentes into the custody of the U.S. Marshals Service to begin serving her prison term.
“This case involved a blatant fraud — so blatant that it’s hard to believe the defendant thought she would get away with it. I’m pleased that today justice prevailed,” stated U.S. Attorney Bash.
On December 30, 2019, Fuentes pleaded guilty to one count of wire fraud. By pleading guilty, Fuentes admitted that while processing employee payroll for MUY! Companies, LLC from 2014 to 2019, she implemented a scheme to steal money from the company. Fuentes used names of current and former employees to generate fraudulent pay checks and direct those unauthorized funds to bank accounts which she controlled. Furthermore, once the money had been deposited, Fuentes voided the fraudulent transactions from company records in an effort to conceal her scheme.
The FBI investigated this case with valuable assistance from the Texas Department of Public Safety. Assistant U.S. Attorney William F. Lewis, Jr., prosecuted the case on behalf of the government.
“The San Antonio FBI shares a close working relationship with the Texas Department of Public Safety, which provides a full-time, seasoned investigator to partner with us on significant financial fraud investigations. This case is yet another example of how this relationship benefits both of our agencies as well as the citizens of San Antonio,” said FBI Special Agent in Charge Combs.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Sex Offender Receives Extensive Sentence for Preying on ChildRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced CHARLES PATRICK JEFFERY, JR. to 360 months imprisonment followed by a lifetime of supervised release. Jeffery entered his plea of guilty to one count of aggravated sexual abuse of a child on July 1, 2020. Jeffery has been and will continue to be required to register as a sex offender. The court found that Jeffery had no ability to pay a fine, but he was ordered to pay $1 in restitution, the amount the victim requested, and a $100 special assessment.
“This case is an example of our ongoing efforts to protect the innocence of children,” said United States Attorney Mark A. Klaassen. “We take this responsibility as seriously as any other enforcement priority because of the vulnerability of these victims and the life-long impacts of abuse. We simply have to do everything we can to identify and stop this criminal behavior.”
The aggravated sexual abuse charge against Jeffery stemmed from his knowing sexual act with a child under the age of twelve between on or about November 18, 2015 and July 1, 2016 on the Wind River Indian Reservation, which the child did not disclose until 2018.
"The FBI remains committed to combating the exploitation and abuse of some of our nation's most vulnerable populations, especially children," stated Denver FBI Special Agent in Charge Michael Schneider. "We thank our partners at the Wyoming US Attorney's Office for the great prosecutorial work which resulted in Charles Jeffery Jr.'s conviction. This prosecution would not have been possible without the victim's courage in bringing forward these allegations and allowing the law enforcement community to pursue justice on their behalf."
Jeffery’s period of supervised release will run concurrent to his supervised release in an earlier case, docket number 16-CR-129-S, in which Jeffery was convicted of possession of child pornography on January 6, 2017.
Russian Hacker Sentenced to over 7 Years in Prison for Hacking into Three Bay Area Tech CompaniesRead the Press Release
SAN FRANCISCO – Yevgeniy Alexandrovich Nikulin was sentenced to 88 months in prison for hacking into LinkedIn, Dropbox, and the now-defunct social networking company formerly known as Formspring, announced United States Attorney David L. Anderson and FBI Special Agent in Charge John L. Bennett. The sentence was handed down by the Honorable William H. Alsup, U.S. District Judge.
The sentence follows a guilty verdict after a 6-day jury trial. A jury found that Nikulin, 32, of Russia, hacked into computers belonging to LinkedIn, Dropbox, and Formspring, damaged computers belonging to LinkedIn and Formspring by installing malware on them, stole and used the login credentials for employees at LinkedIn and Formspring, and sold and conspired with others to sell customer data he stole as a result of his hacks. Evidence at trial showed that Nikulin was located in Moscow when he hacked into a computer belonging to a Bay Area-based LinkedIn employee and installed malicious software on it, allowing him to control the computer remotely and to use the employee’s credentials to access LinkedIn’s corporate VPN. Once he had access to corporate systems, Nikulin stole a database containing LinkedIn users’ login information, including encrypted passwords. In addition, the evidence demonstrated that Nikulin was behind similar intrusions and thefts of data at Dropbox and at Formspring. The Court also found that Automattic, parent company of Wordpress.com, was the victim of an intrusion by defendant, although there was no evidence that defendant stole any customer credentials. Nikulin was arrested while traveling in the Czech Republic on October 5, 2016, and extradited to the United States to face trial on March 30, 2018.
When discussing the reasons for imposing the 88-month prison term, Judge Alsup made clear that he hoped the sentence would send a message to deter anyone, including persons living overseas, from engaging in similar conduct.
Nikulin’s trial began in March, but proceedings were suspended after just two days in light of the COVID-19 pandemic and ensuing closure of the federal courthouse. The trial resumed on July 7, 2020, with the defendant, the attorneys, and Judge Alsup wearing masks, and the courtroom configured to allow social distancing by all participants. Witnesses testified from behind a glass panel to allow testimony to be given while maintaining social distancing. The trial was broadcast via Zoom to allow the public to view the proceedings without entering the courthouse. Nikulin was convicted of selling stolen usernames and passwords, in violation of 18 U.S.C. § 1029(a)(2); installing malware on protected computers, in violation of 18 U.S.C. § 1030(a)(5); conspiracy, in violation of 18 U.S.C. § 371; computer intrusion, in violation of 18 U.S.C. § 1030(a)(2)(C); and aggravated identity theft, in violation of 18 U.S.C. § 1028A(1).
Nikulin has been in U.S. custody since his extradition from the Czech Republic and will begin serving his sentence immediately.
Assistant U.S. Attorneys Michelle J. Kane and Katherine Wawrzyniak are prosecuting the case with the assistance of Helen Yee, Jessica Rodriguez Gonzalez, and Kim Richardson. The prosecution is the result of an investigation by the Federal Bureau of Investigation, with the assistance of authorities in the Czech Republic, the U.S. Secret Service and the U.S. Department of Justice’s Criminal Division, Office of International Affairs.
Richmond Hill man admits concocting 'intricate scheme' to frame a former acquaintance for breach of privacy in health careRead the Press Release
SAVANNAH, GA: A Richmond Hill man has admitted that he created fake email addresses and concocted other information to falsely accuse a former acquaintance of committing violations of patient privacy.
Jeffrey Parker, 43, pled guilty in U.S. District Court to one count of False Statements, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a possible sentence of up to five years in federal prison.
“Jeffrey Parker tried to portray himself as a ‘whistleblower’ while attempting to frame a former acquaintance,” said U.S. Attorney Christine. “This fake complaint not only caused potential harm for an innocent victim, but it also unnecessarily diverted resources from federal investigators whose diligent work shredded his web of lies.”
As outlined in court documents, Parker admitted that he “engaged in an intricate scheme” in which he contacted the U.S. Department of Justice (DOJ) to claim that a former acquaintance had violated privacy provisions of the Health Insurance Portability and Accountability Act (HIPAA).
Parker created email addresses using the names of real individuals and pretended to be these individuals to make it appear as if the acquaintance committed a crime. He sent these communications to the hospital where the acquaintance worked, to the DOJ, and to the FBI. Parker then claimed to have received threatening messages in retaliation for acting as a whistleblower, prompting FBI agents to ensure his safety and quickly investigate his allegations. When an FBI agent interviewing Parker found inconsistencies in his story, Parker admitted concocting the scheme in an attempt to harm the former acquaintance.
“Many hours of investigative resources were wasted determining Parkers’ whistleblower claims were a scheme to damage a former acquaintance,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Now he will pay for his deliberate transgression and we can affirm that these types of actions will be exposed and punished.”
The case was investigated by the FBI, and is being prosecuted for the United States by Assistant U.S. Attorney J. Thomas Clarkson and Patrick Schwedler.
Renton, Washington, man who aided former Drainage Commissioner in scheme to defraud taxpayers pleads guilty to lying to FBIRead the Press Release
Seattle — A 63-year-old Renton, Washington, man pleaded guilty today in U.S. District Court in Seattle to lying to federal agents about a fraud scheme carried out by a former Drainage District Commissioner and his wife, announced U.S. Attorney Brian T. Moran. DARRELL N. WINSTON pleaded guilty to making a false statement and faces up to five years in prison when sentenced by U.S. District Judge Richard A. Jones on December 18, 2020.
According to the plea agreement, WINSTON repeatedly misled FBI agents about his agreement with and work for former Drainage District Commissioner Allan Thomas and his wife. WINSTON operated a business called City Biz and originally told agents he had submitted a bid and been hired by Thomas to clean some of the drainage ditches in the district. In fact, WINSTON and his company did little or no work, but were paid more than $50,000 by King County based on fake invoices. WINSTON paid most of the money back to Allan Thomas and his wife, and the two used the money for their own benefit. WINSTON lied to investigators on multiple occasions.
Last month, the grand jury returned a superseding indictment against Allan B. Thomas and Joan B. Thomas charging them with 15 federal crimes, including conspiracy, mail fraud, wire fraud, money laundering, and aggravated identity theft in connection with their six-year scheme to divert more than $400,000 in local tax dollars to their own use.
Allan B. Thomas served as Commissioner for Drainage District 5 in King County for more than 35 years. As a Commissioner, Thomas was involved in estimating the costs of drainage maintenance for the district so that the county auditor could set and assess the appropriate taxes. The Commissioners then authorized payment to service providers who were supposed to do maintenance work on the drainage system.
As early as 2012, Joann Thomas set up a joint bank account with Allan Thomas’ son from a previous marriage. The account was a business account for a company called A C Services. Over the next six years, Allan Thomas had $413,323 of local tax dollars paid to A C Services claiming it was for drainage ditch maintenance. However, financial records indicate that over the six years, shortly after the tax dollars were deposited into the A C Services account, the money was quickly transferred to other accounts belonging to the Thomases, or was used to pay their expenses for such things as hay, mortgage payments, or property taxes. More than $70,000 was withdrawn as cash.
In 2018, after the couple became aware of an investigation into their conduct, they began funneling the tax dollars through WINSTON’s company, City Biz.
In all, the indictment alleges the THOMASES defrauded taxpayers of $468,165.
The charges contained in the Thomas indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Mail fraud, wire fraud, and money laundering are punishable by up to 20 years in prison. Conspiracy is punishable by five years in prison. Aggravated identity theft is punishable by two years in prison to follow any sentence imposed on other counts of conviction.
The FBI and IRS - Criminal Investigation are leading the investigation with assistance from the Enumclaw Police Department. The Enumclaw City Attorney initiated the review of the district finances. The Washington State Auditor’s Office also conducted an audit of the district in 2019. The King County Prosecuting Attorney’s Office, in consultation with the U.S. Attorney’s Office, determined the case was appropriate for federal prosecution.
The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Andrew Friedman.
Plant City Man Sentenced to over Three Years for Making Threats Against Plant City Police OfficersRead the Press Release
Tampa, Florida – U.S. District Judge Mary Scriven today sentenced James Alexander (26, Plant City) to 37 months in federal prison for making online threats to harm two officers from the Plant City Police Department. Alexander had pleaded guilty on June 17, 2020.
According to court documents, beginning in October 2017, Alexander posted threats directed at law enforcement on various Facebook pages online. Between May and June 2018, Alexander sent direct threats to one Plant City Police officer threatening to harm to him. Alexander also sent direct messages to a family member of this officer, threatening to harm the officer. As a result of these threats, the officer obtained a permanent injunction against Alexander and moved his family out of their home of nine years to another location that was kept confidential.
Following the entry of the permanent injunction, Alexander began targeting a second officer from the Plant City Police Department, sending him direct messages on Facebook, saying, in part: “You are going to die this year.” As a result, this officer feared for his safety and that of his family, compelling him to frequently change his routine and routes to various locations, for fear of being followed.
This case was investigated by the Federal Bureau of Investigation and the Plant City Police Department. It was prosecuted by Assistant United States Attorney Candace Garcia Rich.
Philadelphia Man Convicted at Trial of Illegal Firearms Possession While on State ParoleRead the Press Release
PHILADELPHIA –United States Attorney William M. McSwain announced that Steven Mack, 31, of Philadelphia, PA was convicted today at trial of possession of a firearm and ammunition by a convicted felon, arising from an incident during which state parole agents caught Mack with the firearm and ammunition shortly after he was released from prison.
Mack was paroled after serving the low end of a state sentence for robbing multiple women at gunpoint and stealing their possessions. On September 9, 2019, while he was under the supervision of the Pennsylvania Parole Board, agents visited Mack at his residence and observed five different types of ammunition and a loaded revolver. The agents arrested Mack on the spot.
“The crime of being a felon in possession of a firearm is a very serious offense – particularly in a city like Philadelphia, where gun violence is running rampant,” said U.S. Attorney McSwain. “Mack has repeatedly demonstrated his disrespect for the law and the conditions for his parole. The answer to Philadelphia’s violent crime crisis is to get recidivists like Mack off of the streets and have them serve an appropriate sentence, which is exactly what will happen now that he has been convicted in the federal system in which there is no opportunity for parole.”
“The outcome of this prosecution is sending a positive message to the community on ATF’s commitment to keeping the public safe from firearms violence,” said John Schmidt, acting Special Agent in Charge of ATF’s Philadelphia Field Division. “ATF is determined to continue our collaborative efforts with our law enforcement partners in our plight to ensure Philadelphia neighborhoods can be free of violence.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Philadelphia Police Department, and the Pennsylvania Parole Board, and is being prosecuted by Assistant United States Attorneys Sara A. Solow and Derek E. Hines.
Pass Christian Man Pleads Guilty to Trafficking over 100 Pounds of Pure MethamphetamineRead the Press Release
Gulfport, Miss – Aaron Conrad Whavers, 50, of Pass Christian, pled guilty today before Senior U.S. District Judge Louis Guirola, Jr. to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle A. Sutphin of the Federal Bureau of Investigation and Mississippi Bureau of Narcotics Director Steve Maxwell.
“I commend our federal and state partners for their incredible work in catching this drug dealer and seizing these massive quantities of illegal drugs, saving countless lives in the process. We will continue this important work with our partners in battling the scourge of meth, fentanyl and other illegal narcotics that destroy lives, tear apart families, and kill our people every single day,” said U.S. Attorney Hurst.
“Working in partnership with local, state, and federal authorities to improve the quality of life for the citizens of Mississippi is a priority for MBN,” said Colonel Steven Maxwell, Director of the Mississippi Bureau of Narcotics. “Thus, the removal of drug traffickers and violent offenders from our businesses and residential communities is imperative."
"Partnerships between law enforcement agencies is essential to identify, investigate and prosecute the illegal distribution of narcotics," said FBI Special Agent in Charge Sutphin. "Criminal activity has no place in our society, and law enforcement throughout Mississippi will continue working together to make our communities safer."
Whavers was arrested November 4, 2019, at his home in Pass Christian following an investigation into methamphetamine trafficking from California to Mississippi. Starting in July 2019, during an investigation by Mississippi Bureau of Narcotics and FBI Safe Streets Task Force, agents seized approximately 3 kilograms of pure methamphetamine in Pascagoula. In August, agents purchased approximately 3 kilograms of pure methamphetamine in Pass Christian. In November, agents learned the source of supply had traveled to Mississippi from California at which time they executed search warrants on Whavers’ home and a tractor trailer. They recovered over 37 kilograms of methamphetamine, 988 grams of fentanyl and a hand gun. The DEA lab confirmed most of the methamphetamine was 100% pure.
Whavers faces not less than 10 years or up to life in prison. He further faces fines up to $10,000,000 and at least 5 years of supervised release. Sentencing is set for January 5, 2021, at 1:30 PM.
The Federal Bureau of Investigation Safe Streets Task Force and the Mississippi Bureau of Narcotics investigated the case. The FBI Safe Streets Task Force is a Gulf Coast High Intensity Drug Trafficking Area (HIDTA) initiative and receives funding from the Office of National Drug Control Policy in Washington, D.C. It is made up of Special Agents from the FBI and law enforcement officers from the Pascagoula, Moss Point, Gautier and Ocean Springs Police Departments, Jackson County Sheriff's Office, MBN, and U.S. Border Patrol. The case is being prosecuted by Assistant United States Attorney Annette Williams.
Ohio Man Pleads Guilty to Paying Co-Conspirator to Illegally Dump Drums of Hazardous WasteRead the Press Release
An Ohio man pleaded guilty in the Southern District of Ohio before U.S. District Judge Edmund A. Sargus Jr. to conspiring to illegally transport and dispose of hazardous waste at several area apartment complexes.
According to court documents, in October 2018, Khaled Ebrigit, 54, of Columbus, Ohio, paid and directed Martin Eldridge, 41, of Williamsport, Ohio, to dump drums of hazardous waste near dumpsters at several apartment complexes throughout Columbus.
Ebrigit knew the material was hazardous and did not have a permit to dispose of it.
In total, six 55-gallon drums and 64 10-gallon drums were dumped at six residential apartment complexes in Columbus. Many of the drums were labeled with brightly colored warning labels with symbols and written statements indicating “flammable” and “irritating,” and with a detailed listing of hazards and precautions including but not limited to “[h]ighly flammable,” “[i]rritating to eyes,” and “[t]ake precautionary measures against static discharges.” Many of the drums were leaking.
As a result of the dumping, the Ohio Environmental Protection Agency (EPA), Franklin County Sheriff’s Office, Columbus Fire Department and Columbus Division of Police responded to reports of illegal dumping and cleaned the various sites.
As part of his plea, Ebrigit agreed to pay at least $30,000 in restitution.
Specifically, Ebrigit pleaded guilty to one count each of conspiring to illegally transport hazardous material, transporting hazardous material and disposing of hazardous material.
Eldridge pleaded guilty in December 2019 to the same three crimes.
The U.S. EPA Criminal Enforcement Program, Ohio EPA, and Franklin County Sheriff’s office investigated the case.
Trial Attorney Adam C. Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section, Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio, and Special Assistant U.S. Attorney Heather Robinson from Franklin County Prosecutor Ron O’Brien’s office are representing the United States in this case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Offshore Internet Sports Betting Company Agrees to Forfeit over $46.8 Million in Proceeds to Resolve Criminal InvestigationRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that the internet sports betting company, 5D Holdings Ltd. (operating under the unincorporated brand name, “5Dimes”) and Laura Varela, have agreed to forfeit more than $46.8 million in gambling proceeds as part of a settlement agreement in a criminal investigation into 5Dimes’ sports betting operation based in Costa Rica that allowed American gamblers to place bets, primarily through its website www.5Dimes.eu, in violation of U.S. law. Beginning in at least 2011, 5Dimes accepted wagers from and made payouts to U.S. bettors, and transferred more than $46.8 million in proceeds earned from its illegal gambling activities in such a manner as to attempt to hide the nature, location, source, and control of the funds.
5Dimes was previously owned and operated by Varela’s husband, William Sean Creighton, a U.S. citizen who moved to Costa Rica, where he created and operated 5Dimes in violation of U.S. law. From at least 2011 until approximately September 24, 2018, Creighton exercised full and exclusive control over 5Dimes, although he hid his control over the company by utilizing an alias and operating the business through several shell companies. In September 2018, Creighton was kidnapped and subsequently murdered. Over a year later, Creighton’s remains were discovered and positively identified in Costa Rica; Creighton’s death has been ruled a homicide by Costa Rican authorities.
Beginning in approximately May 2016, the United States Attorney’s Office for the Eastern District of Pennsylvania, in conjunction with the Department of Homeland Security Investigations (“HSI”), began investigating Creighton and 5Dimes for possible violations of federal criminal laws including, but not limited to, illegal gambling, money laundering, wire fraud, and other related offenses. During Creighton’s lifetime, Varela, a Costa Rican citizen, was never employed as a manager at 5Dimes, nor did she exercise any control over the operations of 5Dimes. Following Creighton’s death, Varela assumed responsibility for 5Dimes assets, but did not exercise day-to-day authority over the operations of 5Dimes. Varela subsequently took control of 5Dimes and sought to resolve the federal investigation and change the operations of the company in a manner that complies with U.S. law. In order to resolve the federal investigation of 5Dimes (which continued after Creighton’s kidnapping), Varela and 5Dimes have entered into a settlement agreement with the EDPA in which they have agreed to forfeit more than $46.8 million and acknowledged that those funds are the proceeds of various unlawful gambling-related offenses.
Creighton’s operation of 5Dimes in violation of U.S. law involved the use of third-party payment processors (or “TPPPs”) to accept payments from the U.S.-based bettors. These TPPPs processed credit card transactions for 5Dimes, and charged the customers’ credit cards on behalf of 5Dimes, thereby concealing the true nature of the charges from the credit card companies that otherwise would not have processed the payments had 5Dimes attempted to process the charges directly. Once the TPPPs received the betting funds from the U.S. customers’ credit cards, the funds were transferred to bank accounts in the names of shell companies controlled and operated by Creighton until his disappearance and death. Creighton also laundered 5Dimes’ unlawful gambling proceeds in various additional ways, including through bulk cash transportation and the purchase of gold bars, gold coins, and expensive collectible sports cards.
During the investigation, HSI seized approximately $3,376,189 in cash and other assets belonging to Creighton, including a 1948 George Mikan rookie basketball card, which Creighton purchased for over $400,000 (which at the time was the most expensive basketball card ever sold, and which now resides at the Smithsonian Institute), and a 1970 Pete Maravich rookie basketball card, as well as over $715,000 worth of rare coins. As part of the settlement agreement, 5Dimes and Varela have agreed to forfeit these seized assets, and have agreed to help in the collection and forfeiture of additional assets totaling more than $26,000,000. Further, 5Dimes and Varela have agreed to forfeit approximately $2,000,000 that was seized in Costa Rica by Costa Rican law enforcement, and to pay and consent to the forfeiture of an additional $15,000,000 of the proceeds of the criminal conduct.
All told, pursuant to the terms of the settlement agreement, 5Dimes and Varela have agreed to forfeit a total of $46,817,880.60, which they agree constitutes proceeds that are traceable to transactions in violation of Title 18, United States Code, Sections 1343 (wire fraud), 1084 (illegal transmission of gambling information), 371 (conspiracy to commit wire fraud), and were involved in transactions in violation of Title 18, United States Code, Section 1956 (money laundering). Varela has fully cooperated with the investigation and has worked with EDPA to identify criminal assets associated with 5Dimes, has overseen the implementation of compliance procedures, and has reorganized the corporate structure of the company into a streamlined, transparent corporate structure, and caused 5Dimes to cease violating U.S. law.
Pursuant to the terms of the settlement agreement, the United States Attorney’s Office for the Eastern District of Pennsylvania has agreed to not criminally prosecute 5Dimes or Varela for any crimes committed prior to September 30, 2020 (except for criminal tax violations, if any, as to which EDPA does not make any agreement), and will not file a civil action relating to the conduct described in the settlement agreement.
“The settlement agreement announced today is a victory for the United States in ceasing the illegal activity of a company that was being investigated for a multitude of crimes, including a sophisticated money laundering operation,” said U.S. Attorney McSwain. “It is also a testament to the dedication of the investigators and prosecutors who doggedly pursued this case even after the primary target was kidnapped and murdered. As the Office has done with a variety of criminal and civil matters, we will use every tool at our disposal to hold individuals and businesses accountable and ensure their compliance with federal law.”
“Through our 5Dimes investigation, Homeland Security Investigations illuminated a massive global network of criminals whose profession was to launder proceeds for drug cartels, kleptocratic regimes, illegal mining operations, and fraudsters,” said Brian A. Michael, Special Agent in Charge, HSI Philadelphia. “Today’s announcement of the global settlement agreement and significant monetary seizures demonstrates HSI’s commitment with our partners to deny criminal organizations the financial proceeds of their illicit activities.”
“Transnational Criminal Organizations are concerned with one priority: making and hiding money. This investigation demonstrates the sophisticated efforts of the actors to secrete their ill-gotten gains, in this case, from gambling. The scheme is just as viable for laundering drug proceeds, those from weapons or human trafficking, or other illegal activities,” said Jeremiah A. Daley, Executive Director of the Liberty Mid-Atlantic High Intensity Drug Trafficking Area (HIDTA). “We are proud to support HSI in pursuing all forms of money laundering from any source.”
The case was investigated by the Department of Homeland Security, Homeland Security Investigations with support from the Liberty Mid-Atlantic HIDTA, the Philadelphia Police Department, and the Pennsylvania State Police. The criminal investigation and settlement was handled for the Eastern District of Pennsylvania by Assistant United States Attorneys Michael S. Lowe and Maria M. Carrillo.