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Wednesday 30 September 2020
Execution Scheduled for Federal Death Row Inmate Convicted of Murdering a ChildRead the Press Release
Attorney General William P. Barr today directed the Federal Bureau of Prisons to schedule the execution of Orlando Cordia Hall, who was sentenced to death after kidnapping, raping, and murdering a 16-year-old girl in 1994.
In September 1994, Hall and several accomplices ran a marijuana trafficking operation out of Pine Bluff, Arkansas. After a failed drug transaction involving $4,700, Hall and his accomplices went to the Arlington, Texas, home of a man they believed had reneged on the deal. The man’s 16-year-old sister, Lisa Rene, answered the door. Although she was simply an innocent bystander, Hall and his accomplices kidnapped her at gunpoint, and Hall raped her in the car. Hall’s accomplices subsequently drove her to a motel in Arkansas, where they raped her several more times. Hall and his accomplices then took her to a park where they had dug a grave. There, they beat her over the head with a shovel, soaked her with gasoline, and buried her alive.
In October 1995, a jury in the U.S. District Court for the Northern District of Texas found Hall guilty of, among other offenses, kidnapping resulting in death, and unanimously recommended a death sentence, which the court imposed. Hall’s convictions and sentences were affirmed on appeal more than 20 years ago, and his initial round of collateral challenges failed nearly 15 years ago. In 2006, Hall received a preliminary injunction from a federal district court in Washington, D.C., based on his challenge to the then-existing federal lethal-injection protocol. That injunction was vacated by the district court on Sept. 20, 2020, making Hall the only child murderer on federal death row who is eligible for execution and not subject to a stay or injunction. Hall’s execution is scheduled for Nov. 19, 2020, at U.S. Penitentiary Terre Haute, Indiana.
Eugene Springfield Paramedic Charged with Conspiring to Distribute Controlled SubstancesRead the Press Release
EUGENE, Ore.—U.S. Attorney Billy J. Williams announced today that a Eugene Springfield Fire Department paramedic has been charged with illegally obtaining controlled substances from a local pharmacy and using them to drug and rape multiple female victims.
Edward Augustus Blake, 44, a resident of Cheshire, Oregon, has been charged by federal criminal complaint with conspiring to possess with intent to distribute fentanyl, morphine, ketamine, and midazolam. Blake had previously been charged in Lane County Circuit Court with first degree rape and sodomy, strangulation, causing another person to ingest a controlled substance, and unlawful delivery of a controlled substance.
According to court documents, as a paramedic, Blake had access to controlled substances from PeaceHealth pharmacy in Springfield, Oregon. Between January 2016 and September 2019, he took approximately 343 vials of the drugs from the pharmacy, but did not enter them into his ambulance’s inventory. Instead, Blake used the drugs to sexually assault at least three local women.
On September 11, 2019, Springfield Police Department officers responded to McKenzie Willamette Hospital after a female victim reported being sexually assaulted by a man claiming to be a Eugene Springfield firefighter. The female victim told officers that she began communicating with the man, later determined to be Blake, through Craigslist. Before they agreed to meet, Blake sent the victim pictures of various medical supplies including medications he claimed to have taken from the ambulance he worked on.
On September 10, 2019, Blake and the victim agreed to meet at a Springfield motel. Blake choked the victim from behind until she lost consciousness. The victim regained consciousness to find an intravenous (IV) needle in her arm. Blake then forced her to take several medications including fentanyl and sexually assaulted her while she was unconscious.
Investigators learned that Blake, using his Oregon driver’s license, rented rooms at the motel on 17 separate occasions. Law enforcement spoke with Blake who confirmed that he was employed as a Eugene Springfield firefighter and admitted he posted personal ads on Craigslist. He further admitted he had sexual intercourse with the victim and placed an IV in her arm.
As part of the investigation, detectives identified two additional victims who reported receiving controlled substances from Blake. One of the victims was hospitalized several times while she knew Blake. Each time she was hospitalized, Blake would show up at her hospital room and administer drugs to her through her IV. She recalled Blake telling her to sell the drugs, but warned her not to let anyone keep the vials, because they could be traced back to him.
Blake is in state custody pending trial in Lane County. In the coming weeks, he is expected to make his first appearance in federal court.
This case was investigated by the U.S. Drug Enforcement Administration with assistance from the FBI and the Springfield Police Department. It is being prosecuted by Joseph Huynh, Assistant U.S. Attorney for the District of Oregon.
Investigators are seeking the public’s help to identify additional potential victims who may have had contact with Blake. If you have any reason to believe you or someone you know may be a victim or have additional information about other potential crimes involving this defendant, please contact the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
District of New Jersey Announces Charges in Health Care Fraud Cases as Part of Nationwide Federal Law Enforcement EffortRead the Press Release
NEWARK, N.J. – Six individuals have been charged in New Jersey for their roles in a massive nationwide prescription medication and durable medical equipment telemedicine scheme, and three others admitted their roles in three other health care fraud cases. The announcements are part of a federal law enforcement effort to crack down on health care fraud nationwide.
U.S. Attorney Craig Carpenito, District of New Jersey, announced charges against six people: Mark Belter, 46, of North Ridgeville, Ohio; David C. Laughlin, Jr., 46, of Buckeye, Arizona; Stephen Luke, 52, of Phoenix, Arizona, were charged by complaint with conspiracy to violate the Anti-Kickback Statute. In a separate complaint, Ethan Welwart, 32, of North Brunswick, New Jersey; William “Ben” Welwart, 66, of Staten Island, New York; and Elan Yaish, 51, of Tel Aviv, Israel, also were charged with conspiracy to violate the Anti-Kickback Statute for their roles in the same scheme. Ethan Welwart, William Welwart, and Yaish had their initial appearances before U.S. Magistrate Judge James B. Clark III on Sept. 3, 2020, and Belter, Laughlin, and Luke had their initial appearances before U.S. Magistrate Judge Leda Dunn Wettre on Sept. 10, 2020.
Attorney for the United States Rachael A. Honig, District of New Jersey, announced guilty pleas from three defendants in three cases:
Andrew McCubbins, 39, of Draper, Utah, the owner of a telemedicine company, pleaded guilty by videoconference on Sept. 24, 2020, before U.S. District Judge Kevin McNulty to an information charging him with one count each of conspiring to commit wire fraud, conspiracy to commit health care fraud, and conspiring to defraud the United States in connection with a scheme to violate the Anti-Kickback Statute.
Christian Mohases, 38, of Santa Ana, California, pleaded guilty by videoconference on Sept. 24, 2020, before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiring to commit health care fraud and one count of conspiring to defraud the United States in connection with a scheme to violate the Anti-Kickback Statute.
Luis Roa, 51, of Santiago, Chile, pleaded guilty by videoconference on Sept. 24, 2020, before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiring to commit health care fraud and one count of conspiring to defraud the United States in connection with a scheme to violate the Anti-Kickback Statute.
The announcements are part of a nationwide federal law enforcement effort to combat telemedicine fraud, prescription fraud and durable medical equipment fraud. As part of this effort, the Department of Justice is announcing today the largest amount of alleged fraud loss ever charged – $4.5 billion in allegedly false and fraudulent claims submitted by more than 86 criminal defendants in 19 judicial districts around the country – related to nationwide schemes involving telemedicine: the use of telecommunications technology to provide health care services remotely.
Belter et al.
Beginning in January 2016 and continuing for more than three years, the six defendants exchanged kickbacks and bribes with each other and others. Belter, who owned and operated a marketing company in Ohio called Health Pain Solutions, identified Medicare beneficiaries and targeted them for specific prescription medications or durable medical equipment (DME) like braces. He then sent the beneficiaries’ information to Laughlin and Luke, who owned RediDoc. Belter paid Laughlin and Luke kickbacks for each signed prescription and doctor’s order for those beneficiaries that Laughlin and Luke collected from doctors under contract with RediDoc. Laughlin and Luke in turn paid those doctors kickbacks for each prescription and doctor’s order they signed. Laughlin and Luke transmitted the prescriptions to Apogee, a pharmacy owned and run by Ethan Welwart, William Welwart, and Yaish, and doctor’s orders to DME providers, who submitted claims for reimbursement to Medicare and other insurers. Ethan Welwart, William Welwart, and Yaish at Apogee subsequently paid Belter kickbacks from the reimbursements they received, in exchange for Belter’s actions in originating the beneficiaries’ claims.
After identifying target beneficiaries, Belter or his employees telephoned them, purportedly to obtain their medical history and consent to receive medications or DME. The purpose of these calls was so that Belter could record the conversations with the beneficiaries and convince them to try certain medications or DME. Belter had no medical licenses or training.
Belter purposely did not tell the beneficiaries what doctor would prescribe the medication or DME. The conspirators believed that the beneficiaries may not consent to receive medication or DME from an unknown doctor. In an email to William Welwart and another Apogee employee on Jan. 15, 2018, Belter wrote that, when he called beneficiaries, he did not provide specifics: “I think you might lose some people [beneficiaries] when you mention a Doctor name they have never heard of.”
After obtaining the beneficiary’s medical history and purported consent, Belter transmitted a beneficiary intake form, the recorded call, and a pre-filled prescription for medication or DME order to Laughlin and Luke at RediDoc. Under a contract, Belter paid Laughlin and Luke a fee of approximately $95 for each prescription that RediDoc obtained from one of its contracted doctors; $100 for each DME order; and $115 for a prescription and a DME order.
RediDoc recruited and contracted with doctors around the country to sign prescriptions and DME orders. RediDoc paid its contracted doctors anywhere from $7 to $30 per “consultation,” depending on whether they prescribed medication, DME, or both. For example, according to one RediDoc contract, RediDoc agreed to pay a doctor $15 per “consultation” by telephone with no prescription; $20 per “consultation” resulting in a medication prescription or DME order; and $30 per “consultation” resulting in a medication prescription and DME order. RediDoc had similar contracts with doctors across the country and paid them over $5.5 million during the scheme.
The defendants and other conspirators caused the submission of false and fraudulent claims to health care benefit programs, including Medicare, in excess of $100 million for prescription medication and DME.
The charge of conspiracy to violate the Anti-Kickback Statute is punishable by a potential penalty of five years in prison and a fine of $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater.
The government is represented in this case by Senior Trial Counsel Jason S. Gould and Assistant U.S. Attorneys Nicole Mastropieri and Hayden Brockett of the Health Care Fraud Unit in Newark, as well as Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
McCubbins
McCubbins owned and operated a telemedicine company based in Utah that purported to provide health care services through health care professionals to Medicare beneficiaries. McCubbins and others paid kickbacks and bribes to various parties in exchange for referrals and orders for medically unnecessary genetic cancer screening tests (CGX Tests) for Medicare beneficiaries, ultimately leading to approximately $89 million in Medicare payments.
In order to generate referrals of Medicare beneficiaries to the telemedicine company, McCubbins and others paid kickbacks and bribes to individuals operating call centers targeting Medicare beneficiaries for CGX Tests. Once the telemedicine company received the referrals, health care professionals acting on its behalf wrote medically unnecessary orders for CGX Tests for the Medicare beneficiaries. McCubbins bribed medical doctors, nurse practitioners, and physician assistants to prescribe the CGX Tests for Medicare beneficiaries. These health care professionals wrote medically unnecessary orders for CGX Tests without performing legitimate medical consultations and after only cursory telephonic interactions with the Medicare beneficiaries. In addition, the Telemedicine Company also bribed doctors to purportedly “supervise” nurses and other health care professionals in order to legitimize the their prescriptions for CGX Tests. In reality, however, the supervising physicians had no legitimate clinical or collaborative relationship with the health care professionals they claimed to supervise.
Mohases
Mohases and his conspirators owned and operated multiple call centers through which they obtained doctors’ orders for DME, namely orthotic braces, and patient referrals for genetic CGX tests for Medicare beneficiaries. Mohases and his conspirators provided these orders and referrals in exchange for bribes from certain companies that provided the braces and performed the CGX Tests, ultimately leading to approximately $8.5 million in Medicare payments for medically unnecessary DME and CGX Tests.
Mohases and his conspirators obtained the DME orders and CGX Test referrals through the use of marketing call centers and telemedicine companies. Mohases used telemedicine companies to generate DME orders that were medically unnecessary because they were generated without any legitimate physician-patient relationship and without complying Medicare’s telemedicine requirements. In order to conceal the kickback arrangements, Mohases and his conspirators entered into sham contracts that made it appear that they were providing legitimate services. Mohases generated false invoices to match the sham contracts and to conceal the kickback scheme.
Roa
Roa and his conspirators owned and operated multiple call centers through which they obtained doctors’ orders for DME, namely braces, and patient referrals for CGX tests for Medicare beneficiaries. Roa and his conspirators provided these orders and referrals in exchange for bribes from certain companies that provided the braces and performed the CGX tests, ultimately leading to approximately $6.9 million in Medicare payments for medically unnecessary DME and CGX tests.
Roa and his conspirators obtained the DME orders and CGX test referrals through the use of marketing call centers and telemedicine companies. Roa used telemedicine companies to generate DME orders that were medically unnecessary because they were generated without any legitimate physician-patient relationship and without complying with Medicare’s telemedicine requirements. In order to conceal the kickback arrangements, Roa and his conspirators entered into sham contracts that made it appear that they were providing legitimate services. Roa generated false invoices to match the sham contracts and to conceal the kickback scheme.
The charge of conspiracy to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greater. The charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greater. The charge of conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greater.
The government in the cases against McCubbins, Mohases and Roa is represented by Assistant U.S. Attorneys Sean M. Sherman, J. Stephen Ferketic, and Ryan O’Neill of the Opioid Abuse Prevention & Enforcement Unit, and Senior Trial Counsel Ward.
U.S. Attorney Carpenito and Attorney for the United States Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch. Jr. in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Scott J. Lampert; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the ongoing investigations.
Department of Justice Invests More than $295.8 Million in Grants to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
The Department of Justice today announced it has awarded more than $295.8 million to improve public safety, serve victims of crime and support youth programs in American Indian and Alaska Native communities.
“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.”
More than $103 million was awarded under the Justice Department’s Coordinated Tribal Assistance Solicitation (CTAS) to 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).
“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.”
“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 Office on Violence Against Women 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.”
“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.”
An additional $113 million was awarded to 133 applicants under the Tribal Victim Services Set-Aside Program. This program, managed by OJP’s Office for Victims of Crime (OVC), is designed to help tribes develop, expand and improve services to victims of crime and promote other public safety initiatives.
In addition to the CTAS and Tribal Victim Services Set-Aside awards, the Office on Violence Against Women made 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 were made by OJP and the COPS Office. OJP’s Bureau of Justice Assistance (BJA) made six awards totaling more than $3.4 million to provide training and technical assistance to federally-recognized tribes and villages. OVC awarded more than $2.2 million to tribes to develop a workforce of direct victim service providers for American Indian and Alaska Native victims of crime in hard-to-staff positions and locations. OJP’s Office of Juvenile Justice and Delinquency Prevention awarded $16.1 million to address the needs of tribal youth, and its Office of Sex Offender Sentencing, Monitoring, Apprehending, and Tracking awarded nearly $7 million to implement the sex offender registration and notification provisions of the Adam Walsh Act.
BJA also awarded almost $1.9 million to 17 tribal communities to address the public safety challenges posed by the outbreak of COVID-19. Funding was made available from the Coronavirus Aid, Relief and Economic Security Act signed by President Trump in March. In addition, BJA awarded over $9.4 million to combat substance abuse in tribal communities, almost $4.3 million to help tribes reintegrate ex-offenders into their communities and $435,843 to tribal jurisdictions under the Justice Assistance Grant Program.
OJP’s National Institute of Justice made one award totaling $99,637 to fund tribal research to address the challenges of fighting crime and strengthening justice in Indian country and Alaska Native villages. The COPS office awarded nearly $800,000 to support tribal law enforcement agencies through training and technical assistance around community policing efforts.
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.
For more information on the Office of Justice Programs, please visit: https://www.ojp.gov/. For more information on the Office on Violence Against Women, please visit: https://www.justice.gov/ovw. For more information on the COPS Office, please visit: https://cops.usdoj.gov/.
Department of Justice Awards over $5 Million in Grants to Improve Public Safety and Serve Crime Victims in Western District of Michigan Tribal CommunitiesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that, as part of a national rollout, the Department of Justice awarded $5,174,318 in grants to improve public safety, serve victims of crime and support youth programs in tribal communities in the Western District of Michigan.
“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.”
“The Department of Justice has a special responsibility when it comes to helping federallyrecognized Tribes keep their communities safe,” explained U.S. Attorney Birge. “These resources underscore that commitment.”
A total of more than $103 million is being awarded to tribes across the country under the Justice Department’s Coordinated Tribal Assistance Solicitation. CTAS supports activities that enhance law enforcement and tribal justice practices, expand victim services and sustain crime prevention and intervention efforts. CTAS grants are administered by the Department’s Office of Justice Programs ($41.5 million), Office on Violence Against Women ($39.1 million) and Office of Community Oriented Policing Services ($22.5 million).
An additional $113 million is being awarded to 133 applicants nationwide under the Tribal Victim Services Set-Aside Program. This program, managed by OJP’s Office for Victims of Crime, is designed to help tribes develop, expand and improve services to victims of crime and promote other public safety initiatives.
“Public safety officials and victim service providers in Indian country face exceptional challenges, but they bring to their work an extraordinary array of skills and resources that enable them to meet and overcome any obstacle,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is proud to help fulfill Attorney General Barr's strong commitment – and the federal government's long-standing responsibility – to our tribal partners in the matter of their citizens' safety and wellbeing.”
In addition to the CTAS and Tribal Victim Services Set-Aside awards, the Office on Violence Against Women is making additional tribal awards of more than $31 million to support a wide range of efforts to address the crimes of domestic violence, dating violence, sexual assault, stalking and human trafficking.
“OVW’s funding supports Native American and Alaska Native communities as they work across their communities to prevent and respond to gender based violence,” said OVW Principal Deputy Director Laura L. Rogers. “These awards represent the strong commitment that OVW has made to help protect the most vulnerable members of tribal communities.”
Additional awards to support tribal public safety efforts are being made by OJP and the COPS Office. These grants will provide community policing training and other training and technical assistance. Awards will also address the needs of tribal youth, fund tribal reentry efforts, help tribes combat substance abuse and manage sex offenders, and support tribal research. In addition, funds support efforts in 17 tribal communities to address the challenges posed by the outbreak of COVID-19.
“Ensuring our nation’s tribal communities have the resources they need is paramount for the COPS Office and the Department of Justice,” said COPS Office Director Phil Keith. “These awards are a critical component to the overall public safety strategy for tribal law enforcement and the COPS Office is honored to provide vital resources to hire more sworn officer positions, advance tribal training and procure equipment needed to keep communities safe.”
The following tribes in the Western District of Michigan received funding:
. Bay Mills Indian Community $461,941
Public Safety and Community Policing (COPS)
. Keweenaw Bay Indian Community $900,000
Violence Against Women Tribal Governments Program (OVW)
. Lac Vieux Desert Band of Lake Superior Chippewa Indians $251,841
Violence Against Women Tribal Governments Program (OVW)
. Little River Band of Ottawa Indians $299,815
Tribal Youth Program (OJJDP)
. Little Traverse Bay Bands of Odawa Indians $416,033
Violence Against Women Tribal Governments Program (OVW)
. Nottawaseppi Huron Band of the Potawatomi $658,507
Public Safety and Community Policing (COPS)
. Sault Ste. Marie Tribe of Chippewa Indians $836,284
Violence Against Women Tribal Governments Program (OVW)
. The Grand Traverse Band of the Ottawa and Chippewa Indians $1,349,987
Justice Systems and Alcohol and Substance Abuse (BJA) - $899,897
Children’s Justice Act Partnership for Indian Communities (OVC) - $450,000A 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.
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Denver Man Pleads Guilty to Possession with Intent to Distribute Psilocybin MushroomsRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Kole Milner pleaded guilty to possession with intent to distribute psilocybin mushrooms. The guilty plea was tendered before U.S. District Court Judge R. Brooke Jackson on September 28, 2020. Milner will be sentenced on December 7, 2020. The Denver DEA joined in this announcement.
According to the stipulated facts contained in the defendant’s plea agreement, Milner had a sophisticated psilocybin mushroom cultivation operation in his Denver apartment. His bedroom had a large climate-controlled tent, equipped with lights, fans, humidification and de-humidification devices, and other equipment to aid in the cultivation of psilocybin mushrooms. Milner began to cultivate and distribute psilocybin mushrooms from his apartment in November of 2018. He conducted sales under the name "Happy Fox Edibles.” Milner promoted this name through the media and was the subject of several news articles and videos related to his cultivation and sale of psilocybin mushrooms.
“Psilocybin mushrooms are illegal and are a schedule 1 controlled substance,” said United States Attorney Jason Dunn. “Together with the Denver DEA, our office will ensure the law is enforced.”
This case was investigated by the Denver DEA. The defendant is being prosecuted by Assistant U.S. Attorney Conor Flanigan.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The defendant’s case number is 20-cr-224.
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.
Convicted felon sentenced to federal prison for trafficking firearmsRead the Press Release
ATLANTA - Wesley Joshua Smith has been sentenced to serve five years in federal prison after pleading guilty to aiding and abetting a separately charged accomplice who illegally obtained more than two dozen handguns that Smith trafficked domestically and internationally.
“Straw purchasing firearms is not a victimless crime,” said U.S. Attorney Byung J. “BJay” Pak. “Straw purchasers and the gunrunners who direct them help to fuel the illicit gun trade in Georgia and beyond – often with the firearms turning up only after another crime has been committed.”
“Mr. Smith put guns in the hands of criminals,” said Arthur Peralta, Special Agent in Charge of ATF in Atlanta. “Buying guns for people you don’t know, or for people who cannot buy them legally, is a federal crime and we will continue to investigate and arrest those individuals who are engaged in this activity.”
According to U.S. Attorney Pak, the charges and other information presented in court: Between December 2019 and February 2020, Smith paid an accomplice to purchase 28 pistols—always two or three at a time—from various licensed firearms dealers in the metropolitan Atlanta area. Smith was unable to purchase those firearms himself as a result of a 2013 conviction for an unrelated firearms offense in the state of Maryland, where he had previously resided.
At the time of each purchase, Smith’s accomplice completed paperwork in which he falsely claimed to be the actual buyer of the firearms when he knew that he was buying the guns for Smith, at Smith’s direction, and with Smith’s money. Within days and weeks of the firearm purchases by Smith and his accomplice, local police officers in Maryland, the District of Columbia, and Canada recovered nearly a half-dozen of these weapons from crime scenes.
On February 10, 2020, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives saw Smith accept a delivery of four, 9mm semiautomatic pistols and four, large capacity 30-round ammunition magazines. Agents arrested Smith after he tried to avoid apprehension by physically resisting an agent and attempting to flee.
Wesley Joshua Smith, a/k/a “Menace,” 34, of Atlanta, Georgia, was sentenced on September 21, 2020, to five years of imprisonment, to be followed by three years of supervised release by Chief U.S. District Judge Thomas W. Thrash, Jr.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Assistant U.S. Attorney Theodore S. Hertzberg prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
This case was also brought as part of Project Guardian, a national Department of Justice initiative to reduce gun violence and enforce federal firearms laws, including those related to firearms trafficking. More information about Project Guardian can be found at https://www.justice.gov/projectguardian.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Convicted Felon Pleads Guilty to Discharging A Firearm Near Fond Du Lac SchoolRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of SHELBY GENE BOSWELL, 28, to illegally possessing and discharging a firearm in a school zone. BOSWELL, who was initially charged on November 6, 2019, entered his guilty plea today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed with the court, on October 18, 2019, BOSWELL knowingly and with reckless disregard for the safety of others, discharged a firearm on the grounds of Fond du Lac Head Start which is within a distance of 1,000 feet of the grounds of Fond du Lac Ojibwe High School. Because he has prior felony convictions in Beltrami County, Carlton County, and in U.S. District Court for the District of Minnesota, BOSWELL is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minnesota Bureau of Criminal Apprehension, the Carlton County Sheriff’s Office, and the Fond du Lac Police Department. 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. Attorneys Andrew R. Winter and Bradley M. Endicott are prosecuting the case.
Defendant Information:
SHELBY GENE BOSWELL, 28
Fond du Lac, Minn.
Convicted:
- Felon in possession of a firearm, 1 count
- Discharge of a firearm in a school zone, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Chicago Man Sentenced to 10 Years for Conspiracy to Distribute Heroin in MemphisRead the Press Release
Memphis, TN – Leon Cooper, 51 has been sentenced to 120 months in federal prison for conspiracy to distribute more than 1 kilogram of heroin. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, in late 2015 the Shelby County Sheriff's Office and the Drug Enforcement Administration began an investigation into a group of drug traffickers in Memphis. Their investigation led to several individuals pooling their money together to buy kilograms of heroin from a source of supply in Chicago. The Memphis co-conspirators were arrested on March 5, 2016, with a kilogram of heroin in their possession and sentenced in late 2016.
As the investigation continued, officers and agents identified the drug supplier as a Jeffrey Brooks of Chicago, Illinois, who was charged and convicted as a co-defendant. Cooper was also identified as a member of the conspiracy, who helped the Memphis co-conspirators contact Brooks to request the heroin. The object of the conspiracy was to bring heroin to Memphis and distribute it in small amounts to users and addicts. During the course of the conspiracy, over 15 kilograms of heroin was trafficked between Chicago and Memphis.
On September 29, 2020, U.S. District Court Judge John T. Fowlkes Jr., sentenced Leon Cooper to 120 months in federal prison followed by 5 years supervised release. There is no parole in the federal system.
United States Attorney D. Michael Dunavant said: "Our nation and our district are suffering from the heroin and opioid epidemic, causing increases in drug trafficking, violence, addiction, and overdose deaths that are tearing our communities apart. We will not tolerate out-of-state poison pushers who threaten West Tennessee citizens for profit.
This Chicago trafficker brought large quantities of heroin into Memphis for resale, and will now reap a long prison sentence for his harmful crimes."
This case was investigated by the Shelby County Sheriff's Office and the Drug Enforcement Administration (DEA).
Special Assistant Joseph Griffith prosecuted this case on behalf of the United States. This case is part of the Heroin Initiative in collaboration with the Shelby County District Attorney's Office.
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Charleston Man Pleads Guilty to Escape ChargeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pled guilty to an escape charge, announced United States Attorney Mike Stuart. Douglas Wesley, 32, pled guilty to walking away from a halfway house earlier this year.
“When you do the crime, you must do the time – including your time in a halfway house,” said United States Attorney Mike Stuart. “Leaving and not returning to the Dismas Charities facility is a sure way to add more time to your sentence.”
Wesley admitted that in June of this year, he left Dismas Charities, Inc., a Bureau of Prisons residential reentry facility, without permission and did not return. He had been serving a sentence for a federal gun crime conviction and was transferred to Dismas to serve the remainder of the sentence.
Wesley faces up to five years imprisonment when sentenced on December 29, 2020.
The U.S. Marshals Service conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Negar M. Kordestani is handling 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. 2:20-cr-00131.
Follow us on Twitter: SDWVNews and USAttyStuart
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California Man Sentenced to 13 Years’ Imprisonment for Role in Interstate Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Crispin Fernandez, age 27, of Pacoima, California, was sentenced on September 30, 2020 to 13 years’ imprisonment and to serve 10 years on supervised release by U.S. District Court Judge Malachy E. Mannion for his participation in a heroin trafficking conspiracy that shipped more than a kilogram of heroin from California to Carbon County, Pennsylvania.
According to United States Attorney David J. Freed, Fernandez previously pleaded guilty to conspiracy to distribute more than a kilogram of heroin, which is equivalent to more than 40,000 retail bags of heroin, between July 2018 and November 2018.
The case was investigated by the Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Colorado Springs Man Sentenced to 5 Years in Federal Prison for Possession of a Firearm During a Drug Trafficking CrimeRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Jenaireo Wade of Colorado Springs was sentenced to serve 60 months (5 years) in federal prison followed by 3 years on supervised release for possession of a 9mm pistol during a drug trafficking crime. The Denver Division of the FBI joined in this announcement.
According to the stipulated facts contained in Wade’s plea agreement, on November 1, 2018, Colorado Springs Police Department (CSPD) Officers and agents from the FBI were investigating the robbery of a Colorado Springs bank and, while surveilling a local building thought to be related to the robbery, saw Wade go back and forth between his car and the building several times. Wade then left the property and was stopped by police and detained. A search of Wade found $6,000 in cash, which was seized as potential evidence related to the bank robbery. Wade was then released, only to show up again later that day at the same building under surveillance. When officers attempted to contact Wade in the parking lot and ordered him to stop, Wade fled on foot. Following a short pursuit, officers arrested Wade and searched him, this time finding a 9mm semi-automatic pistol, nearly 300 hundred illegal opioid pills, and more cash. Wade was subsequently charged with being a felon in possession of a firearm, as well as with drug trafficking offenses, and ultimately pleaded guilty to possessing a firearm during a drug trafficking crime.
“Thanks to the solid work of our law enforcement partners and the prosecutors in our office, another armed criminal has been taken off the streets through the use of federal crime gun sentencing,” said U.S. Attorney Jason Dunn. “These prosecutions are a critical and straight-forward tool in getting the worst criminals out of our communities quickly, and we are happy to use them anytime our local partners ask for our help.”
“The FBI and Colorado Springs Police Department worked in close collaboration to identify and effectively disrupt an interstate criminal conspiracy, and put an end to a series of dangerous robberies,” stated Denver FBI SAC Michael Schneider. “This law enforcement partnership and diligent pursuit of justice resulted in a favorable outcome for the affected communities.”
Wade was prosecuted by Assistant U.S. Attorney Jason St. Julien. The sentence was pronounced by U.S. District Court Judge R. Brooke Jackson on September 28, 2020. The case was investigated by the FBI and the CSPD.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The defendant’s case number is 19-cr-221.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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.
Butler County Man Pleads Guilty to Gun ChargeRead the Press Release
A man who illegally possessed a gun pled guilty September 24, 2020, in federal court in Sioux City.
Michael Limkemann, 35, Clarksville, IA, was convicted of illegal possession of a firearm as a felon and user of controlled substances. Limkemann was previously convicted of felony drug and weapons crimes which made it illegal for him to possess a gun.
At the plea hearing, Limkemann admitted that sometime in either May or September 2019, Limkemann had given a .22 rifle to another drug user. Limkemann further admitted to possessing the .22 rifle while he was a user of methamphetamine and marijuana.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Limkemann remains in custody of the United States Marshal pending sentencing. Limkemann faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and not more than 3 years of supervised release following any imprisonment.
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 Special Assistant United States Attorney Patrick T. Greenwood and was investigated by Clarksville Police Department, Butler County Sheriff’s Department and the Bureau of Alcohol, Tobacco and Firearms Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3010. Follow us on Twitter @USAO_NDIA.
Brazilian National Pleads Guilty to Firearm TraffickingRead the Press Release
BOSTON – A Brazilian national, who previously resided in Malden, pleaded guilty today to immigration and firearms crimes.
Vanderlei Rodrigues DeAraujo, a/k/a Neneco, 43, pleaded guilty to one count of dealing in firearms without a license, two counts of being an alien in possession of a firearm and ammunition and one count of illegal reentry of a previously deported alien. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 21, 2021. De Araujo was arrested in May 2019 and has been in custody since.
De Araujo, a citizen and national of Brazil, was deported to Brazil on Aug. 18, 2011. Sometime after his 2011 removal, De Araujo illegally reentered the United States and took up residence in Malden using the name “Neneco.” Between Sept. 6, 2018 and Jan. 28, 2019, De Araujo illegally negotiated with and sold firearms and ammunition to a third party. In May 2019, De Araujo was arrested, and his fingerprints were found to match prints in his Alien file as a previously deported alien.
The charge of engaging in the business of dealing in firearms without a license carries a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of being an alien in possession of firearm and ammunition carries a sentence of up to 10 years in prison, three years supervised release and a fine of up to $250,000. The charge of unlawful reentry of a previously deported alien carries a sentence of up to two years in prison, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office, made announcement today. Valuable assistance was provided by Homeland Security Investigations in Boston, the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division and the Malden Police Department. Assistant U.S. Attorneys Kenneth G. Shine, Evan Gotlob and Lindsey Weinstein of Lelling’s Criminal Division are prosecuting the case.
Box Elder man sentenced to 10 years in prison for sex with minor girl on Rocky Boy's Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder man who admitted having sex with a minor girl and to recording the activity on his cell phone was sentenced today to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Christopher Brown, 32, pleaded guilty in June to possession of child pornography and to sexual abuse of a minor.
Chief U.S. District Judge Brian M. Morris presided.
"The defendant not only subjected this child to repeated sexual abuse for his own gratification, but he also filmed the act of exploiting the child for his own gratification. The sentence in this case should serve as a warning that those who traumatize our children will be prosecuted to the full extent of the law," U.S. Attorney Alme said.
The prosecution said in court documents that from July 2018 to January 2020, Brown had sex with a minor girl on the Rocky Boy's Indian Reservation. On Jan. 2, 2020, Brown video recorded himself having sex with the victim and kept that video on his cell phone. Brown began messaging the victim on social media when she was 11 years old.
In an interview with the FBI, Brown admitted he had been in a sexual relationship with the victim since 2018 and had had intercourse with her six times. Brown also admitted to making a video of a recent sexual encounter with the victim and that the video was on his cell phone.
Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI and Chippewa Cree Law Enforcement Services.
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Bartholomew County man sentenced to 30 years in federal prison for sexual exploitation of a childRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Levi Alexander Walters, 28, Westport, Ind., was sentenced to 30 years in federal prison for three counts of sexual exploitation of a child.
“To uncover evidence that a man you trusted, entered your child’s bedroom, and preyed upon her innocence while she tried to sleep is every parent’s worst nightmare,” said Minkler. “Bringing that perpetrator to justice is an essential part of restoring that child’s belief that there are still good adults who will protect her.”
The investigation into Walters’ conduct began when the child victim’s mother called police to report that she found videos on Walters’ phone, showing Walters engaged in sexual conduct with her child, who was younger than 10 years old. Deputies from the Bartholomew County Sheriff’s Office responded to the victim’s residence and were met with a very volatile situation. Walters had obtained two firearms and threatened to commit suicide after the child’s mother found evidence of the abuse and began calling police. The deputies were able to place Walters in custody, ensuring the immediate safety of the victim and her mother.
The Indiana State Police Cyber Crime Unit were requested to conduct an examination of Walters’ cell phone. The examination revealed numerous videos and images depicting the sexual exploitation of a minor.
This case was investigated by the Federal Bureau of Investigation, the Bartholomew County Sheriff’s Department, and the Indiana State Police.
“This type of behavior will not be condoned in Bartholomew County,” said Bartholomew County Sheriff’s Chief Deputy Major Chris Lane. “Our focus is always on the victim in these types of cases; we want to always be sure they get the justice and the compassion they deserve.”
“Indiana State Police investigators work diligently every day, all across Indiana, and in close collaboration with its law enforcement partners, to bring to justice those who seek to perpetuate the victimization of children”, said Indiana State Police Superintendent Douglas G. Carter.
“This sentence should put child predators around the state on notice that the FBI and our law enforcement partners do not tolerate child exploitation in Indiana,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “We will use every technique in our arsenal to unmask you and hold you accountable for your criminal activity.”
According to Assistant United States Attorney Kristina Korobov, who prosecuted this case for the government, said Chief Judge Jane Magnus-Stinson also sentenced Walters to an additional 15 years of supervised release following his federal prison sentence, and ordered him to pay over $10,000 in restitution to the minor victim.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to target, investigate, and prosecute those who exploit and harm children or other vulnerable victims. (See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 4.1 and 4.2)
Baltimore Man Facing Federal Indictment for Illegal Possession of A FirearmRead the Press Release
Baltimore, Maryland – A federal grand jury yesterday returned an indictment charging Brandon Goforth, age 36, of Baltimore, Maryland, with possession of a firearm and ammunition by a prohibited person. A federal complaint was filed on September 25, 2020.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division and Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the complaint, on November 27, 2019, a Sergeant in the Baltimore Police Department was conducting a business check at a business located in Baltimore City. While inside the establishment, the Sergeant heard several gunshots coming from down the street, and exited the establishment to investigate. Brandon Goforth was seen firing a handgun toward a crowd of people standing on the corner of North Avenue and Mount Street in Baltimore’s Penn North neighborhood. Goforth continued firing the gun towards the crowd while running westbound on North Avenue, then placed the handgun inside his right coat pocket while running into an alley.
Once officers located Goforth, the Sergeant positively identified him as the individual that had fired a handgun into a crowd of people. At the time of the shooting, Goforth had been wearing a black, grey, and green jacket. Officers located the jacket, also containing 20 baggies of marijuana, in an adjacent yard. Officers also recovered a black hat, a face mask, and a pistol loaded with five rounds of ammunition along the retraced route.
Goforth was previously convicted of a felony offense and is therefore prohibited from possessing a firearm.
The United States Attorney’s Office and our law enforcement partners are continuing our efforts to address the gun violence plaguing the Baltimore area by using federal statutes prohibiting felons from possessing firearms. These types of reactive gun cases are part of the Exile program. Maryland EXILE is part of Project Safe Neighborhoods (“PSN”), our violent-crime reduction strategy. The United States Attorney’s Office, through the use of Project Safe Neighborhoods and Project Guardian, will continue to pursue felons with guns who constitute a clear and present danger to the safety and welfare of the citizens of Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the ATF and BPD for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney LaRai Everett, who is prosecuting the case.
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Acton Investment Advisor Pleads Guilty to Stealing More than $3.7 Million of Clients’ FundsRead the Press Release
BOSTON – An Acton man pleaded guilty today in connection with a long-running scheme to steal money from clients of his investment advisor business, in which he fraudulently obtained more than $3.7 million from more than 20 clients.
Gerald Allan Eaton, 51, pleaded guilty to one count of wire fraud, one count of mail fraud and one count of aggravated identity theft. U.S. District Judge Douglas P. Woodlock scheduled sentencing for Jan. 26, 2021.
Eaton was a certified financial planner, doing business under the name Heritage Financial Group, with an office in Acton. In that capacity, Eaton invested his clients’ funds in securities and various insurance products, including life insurance policies and annuities. From at least 1999 through October 2019, Eaton stole millions of dollars from clients’ accounts. He did so primarily by selling securities, insurance policies and annuities in clients’ accounts, and causing the proceeds to be sent to accounts he owned or controlled.
As part of his scheme, Eaton forged clients’ signatures on checks and documents, or caused clients to sign documents by falsely representing that the proceeds of transactions would be used for the clients’ benefit. Eaton also falsely represented to the brokerage firm with which he was affiliated, and to insurance companies, that the transactions he requested on his clients’ behalf were for the benefit of those clients. In fact, Eaton caused proceeds to be sent to his own credit card accounts to pay his personal and family expenses, and to his home equity line of credit. In order to avoid detection, Eaton defrauded clients he knew were unlikely to notice what he had done, either because they were elderly or in poor mental or physical condition.
The charges of mail and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a $250,000 fine or twice the gross gain/loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, one year of supervised release, a fine of $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
In a parallel action, the Securities and Exchange Commission (SEC) entered an order barring Eaton from the securities industry based on the same conduct.
United States Attorney Andrew E. Lelling and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U. S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities, Financial & Cyber Fraud Unit, prosecuted the case.
22-Year Old Felon-In-Possession Sentenced to 92 MonthsRead the Press Release
GREENSBORO, N.C. – A Winston-Salem man was sentenced on September 29, 2020, by United States District Court Judge Catherine C. Eagles to 92 months in prison and three years of supervised release for a firearm offense, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
DARRIAN SYLVESTER SCOTT, JR., age 22, was charged with possession of a firearm by a felon. He pleaded guilty to the charge on May 15, 2020.
According to court documents, on January 7, 2020, Winston-Salem Police Department (WSPD) officers conducting routine patrol in an unmarked police vehicle in the area of Piedmont Circle initiated a traffic stop on a vehicle driven by SCOTT, JR. He tried to flee, first driving the car over a curb and through grass toward apartment buildings. He then got out of the vehicle while it was still moving and fled on foot. The car continued in drive until it struck an apartment building on East Twenty-Ninth Street. WSPD officers chased and apprehended SCOTT, JR., then returned to the vehicle where they observed a firearm in plain view wedged between the driver’s seat and middle console. The firearm – a Glock, model 22, 40 caliber, with an extended magazine -- was loaded with 24 rounds of .40 caliber ammunition. SCOTT, JR. was previously convicted of Common Law Robbery with an offense date of 10/09/2016, and given an active sentence of 10-21 months. SCOTT, JR. was also convicted of Possession of a Stolen Motor Vehicle with an offense date of 08/28/2017, and given an active sentence of 11-23 months.
“We will continue to join with our local law enforcement partners to aggressively investigate and prosecute gun crime,” said U.S. Attorney Matt Martin. “I commend the Winston- Salem Police Department and ATF for excellent work 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.
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Tuesday 29 September 2020
Yuba County Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — John Maasen, 64, of Olivehurst, was sentenced today by U.S. District Judge John A. Mendez to 10 years in prison for possession of child pornography, U.S. Attorney McGregor W. Scott announced.
Maasen pleaded guilty in June 2020, and according to the plea agreement, on Jan. 16, 2019, Maasen knowingly possessed visual depictions of minors engaged in sexually explicit conduct.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Shea J. Kenny and Amy S. Hitchcock prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
White River Man Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a White River, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Anthony Black Wolf, age 33, was indicted on September 9, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 28, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 12, 2020, in Mellette County, South Dakota, Black Wolf assaulted an individual with an axe with the intent to do bodily harm, and the assault resulted in serious bodily injury.
The charges are merely accusations and Black Wolf is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Black Wolf was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Western PA Drug Trafficking Organization Based in New Castle DismantledRead the Press Release
PITTSBURGH – Thirteen members of a drug trafficking organization were indicted by a federal grand jury for trafficking significant quantities of cocaine and fentanyl, United States Attorney Scott W. Brady announced today.
"Mexican cartels present a clear and present danger to the safety and well-being of our western Pennsylvania communities," said U.S. Attorney Brady. "Our success in dismantling such a broad-reaching drug trafficking network is due to strong local, state and federal coordination, and the leadership of Lawrence County DA Joshua Lamancusa and Mercer County DA Peter Acker. Together, we remain committed to keep these drugs – and the violence and public health challenges they bring – out of our neighborhoods and communities."
"McKnight and his associates are alleged to have distributed five kilograms or more of cocaine and over forty grams of illicit fentanyl across Western Pennsylvania. These are both dangerous drugs, however, illicit fentanyl has caused thousands of overdose deaths across our region," said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. "This investigation was successful due to our working relationship with our law enforcement partners such as HSI, IRS-CID, USPS-OIG, PSP, the Pennsylvania Office of Attorney General, the New Castle Police Department, and the Lawrence County Drug Task Force."
"Today we recognize the culmination of local, state and federal agencies working together toward one common goal – the dismantling of a serious drug ring," said Pennsylvania Attorney General Josh Shapiro. "This coordinated effort resulted in the arrests of 12 subjects and seizures that included almost 100,000 doses of heroin and significant doses of cocaine, fentanyl, and more. This operation will have lasting positive impact in Pennsylvania, particularly Lawrence and Mercer counties."
"Yesterday’s operation was the culmination of months of federal, state and local collaborative policing efforts," said Lawrence County District Attorney Joshua Lamancusa. "Dozens of law enforcement officers and prosecutors from western Pennsylvania spent hundreds of hours investigating and preparing this case. It was through their tireless efforts and steadfast dedication to duty that Pennsylvania is a safer place today."
"Mercer County has a significant drug trafficking and overdose problem, which is not only local in scope but intercounty, interstate and apparently international, said Mercer County District Attorney Peter Acker. "As District Attorney of Mercer County I am extremely grateful for the support of the U.S. Attorney Scott Brady and his staff in Pittsburgh, the U.S. Drug Enforcement Administration, the PA Office of Attorney General Bureau of Narcotics Investigation, the Lawrence County District Attorney's Drug Task Force, the Mercer County Critical Incident Response Team and all our other partners who coordinate our efforts to attack our drug problems. Yesterday's arrests in Farrell and New Castle demonstrate the effectiveness of our coordinated efforts and they will not be the last."
The Indictment, returned on September 22 and unsealed yesterday, charges the following individuals with conspiring to distribute and possess with intent to distribute five kilograms or more of cocaine, in the Western District of Pennsylvania and elsewhere, from in and around March of 2019, and continuing until in and around September of 2020:
• Bruce McKnight. 53, of Columbus, OH;
• Norberto Castillo-Lopez, 31, of Mexico;
• Jossian Ayala-Ruberte, 39, of Kissimmee, FL;
• Luis Mattei-Albizu, 39, of Columbus, OH;
• Nathaniel McKnight, 28 of New Castle, PA;
• Michael Talbert, 41, of Farrell, PA;
• Tony McKnight, 55, of New Castle, PA;
• Trevor Austin, 46, of Sharon, PA;
• Thomas Pierce, Jr., 48, of Farrell, PA;
• Thomas Jones, 44, of Farrell, PA;
• Romondo Oatis, 46, of Farrell, PA;
• Darnell Latham, 51, of New Castle, PA; and
• Brandon Jetter, 39, of McKeesport, PA.
The Indictment also charges Defendants Bruce McKnight and his nephew, Nathaniel McKnight, with conspiring to distribute and possess with intent to distribute forty grams or more of fentanyl, in the Western District of Pennsylvania and elsewhere, from in and around March of 2020, and continuing until in and around September of 2020.
The law provides for a maximum total sentence of not less than ten years to a maximum of life imprisonment, a fine of up to $10,000,000, or both, as to each charged Defendant. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The DEA in Pittsburgh, PA led the multi-agency investigation that included members of the DEA, Columbus, OH; DEA, Harrisburg, PA; Homeland Security Investigations (HSI), Pittsburgh, PA; HSI, Orlando, FL; Internal Revenue Service-Criminal Investigation; United States Postal Service – Office of Inspector General, Eastern Area Field Office; Pennsylvania Office of the Attorney General; Pennsylvania State Police; Lawrence County Drug Task Force – Special Investigations Unit; and the New Castle Police Department.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Reaches Agreement to Protect New Orleans Waterways and Lake PontchartrainRead the Press Release
WASHINGTON – Today, the U.S. Environmental Protection Agency (EPA) and the Department of Justice announced a settlement with the Churchill Downs Louisiana Horseracing Company LLC, d/b/a Fair Grounds Corporation (Fair Grounds) that will resolve years of Clean Water Act (CWA) violations at its New Orleans racetrack.
Under the settlement, Fair Grounds will eliminate unauthorized discharges of manure, urine and process wastewater through operational changes and construction projects at an estimated cost of $5,600,000. The company also will pay a civil penalty of $2,790,000, the largest ever paid by a concentrated animal feeding operation in a CWA matter.
“We are pleased to announce an agreement with Churchill Downs to address years of Clean Water Act violations at its Fair Grounds Racetrack in New Orleans,” said Principal Deputy Assistant Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division. “This consent decree will stop the flow of untreated process wastewater into the local sewer system, which leads to local waters used for fishing and ultimately Lake Pontchartrain, in a way that recognizes the challenges presented by the racetrack’s urban location.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana (EDLA). “The U.S. Attorney’s Office, EDLA is committed to continue working with its federal partners to investigate and hold entities accountable when they neglect their professional and legal obligations and threaten the environment, which places the public and the ecosystem in Southeastern Louisiana at risk,”
“This consent decree will halt discharges of manure, urine, and contaminated wastewater from the Fair Grounds racetrack into the London Avenue Canal, which flows into Lake Pontchartrain,” said Susan Bodine, EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance. “As a result, we are protecting opportunities by the community to use these waters for fishing and other recreational activities.”
The United States’ complaint alleges that Fair Grounds violated the CWA, including the terms and conditions of its Louisiana Pollutant Discharge Elimination System (LPDES) permit issued pursuant to Section 402 of the CWA. Specifically, the complaint alleges that, since at least 2012, Fair Grounds has regularly discharged untreated process wastewater into the New Orleans municipal separate storm sewer system, leading to the London Avenue Canal, Lake Pontchartrain, the Mississippi River, and ultimately to the Gulf of Mexico. Fair Grounds’ permit prohibits any discharge unless there is a significant rain event (i.e., when 10 inches of rain falls in 24 hours).
In violation of their permit, Fair Grounds has discharged wastewater after as little as a half-inch of rain, as well as in dry weather. The complaint alleges that unauthorized discharges of contaminated wastewater occurred more than 250 times between 2012 and 2018. The untreated wastewater contains manure, urine, horse wash water, and other biological materials that are “pollutants” as defined by the CWA, the facility’s permit, and the applicable EPA and Louisiana Department of Environmental Quality (LDEQ) regulations.
Fair Grounds is a horse racing facility located in New Orleans, Louisiana and is surrounded by residential neighborhoods that are considered environmental justice communities. The London Avenue Canal flows through neighborhoods that have been designated as opportunity zones.
The Fair Grounds’ New Orleans racetrack is a large CAFO, and during a typical horseracing season, Fair Grounds stables as many as 1,800 horses or more at one time. The facility includes a 38.8-acre production area that includes stables, horse stall barns and receiving barns, horse wash racks, horse walkways, manure storage areas, and storage areas for raw materials. The facility also includes a one-mile dirt racetrack and a 7/8-mile turf racetrack, the infield area, the grandstand, the casino, and associated parking areas.
As part of the settlement, Fair Grounds will implement best management practices and construction projects designed to eliminate unauthorized discharges and ensure compliance with its permit and the CWA. Fair Grounds will also perform site-specific sampling, monitoring and hydraulic modeling to help the company and EPA determine whether the remedial actions required by the consent decree are successful in eliminating unauthorized discharges. Furthermore, the consent decree includes a provision requiring Fair Grounds to implement additional remedial measures if these measures do not successfully eliminate unauthorized discharges.
This case is precedential because it includes the highest civil penalty ever collected by the EPA in a CWA enforcement action against a CAFO. In addition, this case is part of EPA’s National Compliance Initiative for Reducing Significant Noncompliance with National Pollutant Discharge Elimination System Permits.
The settlement was lodged today in the U.S. District Court for the Eastern District of Louisiana and is subject to a 30-day public comment period. The penalty is due within 30 days of the effective date of the consent decree.
For more information about this settlement please visit: https://www.epa.gov/enforcement/churchill-downs-louisiana-horseracing-company-llc-clean-water-act-settlement
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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.
United States Reaches Agreement to Protect New Orleans Waterways and Lake PontchartrainRead the Press Release
Today, the U.S. Environmental Protection Agency (EPA) and the Department of Justice announced a settlement with the Churchill Downs Louisiana Horseracing Company LLC, d/b/a Fair Grounds Corporation (Fair Grounds) that will resolve years of Clean Water Act (CWA) violations at its New Orleans racetrack.
Under the settlement, Fair Grounds will eliminate unauthorized discharges of manure, urine and process wastewater through operational changes and construction projects at an estimated cost of $5,600,000. The company also will pay a civil penalty of $2,790,000, the largest ever paid by a concentrated animal feeding operation in a CWA matter.
“We are pleased to announce an agreement with Churchill Downs to address years of Clean Water Act violations at its Fair Grounds Racetrack in New Orleans,” said Principal Deputy Assistant Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division. “This consent decree will stop the flow of untreated process wastewater into the local sewer system, which leads to local waters used for fishing and ultimately Lake Pontchartrain, in a way that recognizes the challenges presented by the racetrack’s urban location.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana (EDLA). “The U.S. Attorney’s Office, EDLA is committed to continue working with its federal partners to investigate and hold entities accountable when they neglect their professional and legal obligations and threaten the environment, which places the public and the ecosystem in Southeastern Louisiana at risk,”
“This consent decree will halt discharges of manure, urine, and contaminated wastewater from the Fair Grounds racetrack into the London Avenue Canal, which flows into Lake Pontchartrain,” said Susan Bodine, EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance. “As a result, we are protecting opportunities by the community to use these waters for fishing and other recreational activities.”
The United States’ complaint alleges that Fair Grounds violated the CWA, including the terms and conditions of its Louisiana Pollutant Discharge Elimination System (LPDES) permit issued pursuant to Section 402 of the CWA. Specifically, the complaint alleges that, since at least 2012, Fair Grounds has regularly discharged untreated process wastewater into the New Orleans municipal separate storm sewer system, leading to the London Avenue Canal, Lake Pontchartrain, the Mississippi River, and ultimately to the Gulf of Mexico. Fair Grounds’ permit prohibits any discharge unless there is a significant rain event (i.e., when 10 inches of rain falls in 24 hours).
In violation of their permit, Fair Grounds has discharged wastewater after as little as a half-inch of rain, as well as in dry weather. The complaint alleges that unauthorized discharges of contaminated wastewater occurred more than 250 times between 2012 and 2018. The untreated wastewater contains manure, urine, horse wash water, and other biological materials that are “pollutants” as defined by the CWA, the facility’s permit, and the applicable EPA and Louisiana Department of Environmental Quality (LDEQ) regulations.
Fair Grounds is a horse racing facility located in New Orleans, Louisiana and is surrounded by residential neighborhoods that are considered environmental justice communities. The London Avenue Canal flows through neighborhoods that have been designated as opportunity zones.
The Fair Grounds’ New Orleans racetrack is a large CAFO, and during a typical horse racing season, Fair Grounds stables as many as 1,800 horses or more at one time. The facility includes a 38.8-acre production area that includes stables, horse stall barns and receiving barns, horse wash racks, horse walkways, manure storage areas, and storage areas for raw materials. The facility also includes a one-mile dirt racetrack and a 7/8-mile turf racetrack, the infield area, the grandstand, the casino, and associated parking areas.
As part of the settlement, Fair Grounds will implement best management practices and construction projects designed to eliminate unauthorized discharges and ensure compliance with its permit and the CWA. Fair Grounds will also perform site-specific sampling, monitoring and hydraulic modeling to help the company and EPA determine whether the remedial actions required by the consent decree are successful in eliminating unauthorized discharges. Furthermore, the consent decree includes a provision requiring Fair Grounds to implement additional remedial measures if these measures do not successfully eliminate unauthorized discharges.
This case is precedential because it includes the highest civil penalty ever collected by the EPA in a CWA enforcement action against a CAFO. In addition, this case is part of EPA’s National Compliance Initiative for Reducing Significant Noncompliance with National Pollutant Discharge Elimination System Permits.
The settlement was lodged today in the U.S. District Court for the Eastern District of Louisiana and is subject to a 30-day public comment period. The penalty is due within 30 days of the effective date of the consent decree.
For more information about this settlement please visit: https://www.epa.gov/enforcement/churchill-downs-louisiana-horseracing-company-llc-clean-water-act-settlement
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Robert J. Higdon, Jr. Announces $1,083,465.00 Awards to Combat Human Trafficking in North CarolinaRead the Press Release
RALEIGH, N.C. – U.S. Attorney Robert J. Higdon, Jr. for the Eastern District of North Carolina today announced that the First Fruit Ministries received a $500,000 grant from the Department of Justice’s Office of Justice Programs, through its component, Office for Victims of Crime (OVC). In addition, the Research Triangle Institute received a grant of $583,465 from the component, National Institute of Justice (NIJ), to fund efforts that combat human trafficking and provide vital services to trafficking victims throughout the United States.
“The scourge of human trafficking is the modern-day equivalent of slavery, brutally depriving victims of basic human rights and essential physical needs as it erodes their sense of dignity and self-worth,” said Attorney General William P. Barr. “The Department of Justice is relentless in its fight against the perpetrators of these heinous crimes. Working with state and local law enforcement and community victim service providers, we will continue to bring these criminals to justice and deliver critical aid to survivors.”
“Human trafficking -a form of modern day slavery- debases and demeans some of our most vulnerable citizens,” remarked U.S. Attorney Higdon. “And fighting this horrible practice, in whatever form, goes to the heart of why law enforcement exists and why we daily work to improve the quality of life for all the people of the Eastern District.”
Nationally, the Office for Victims of Crime (OVC) awarded over $97.4 million to state, local and tribal jurisdictions, service providers and task forces all over the country, while OJP’s National Institute of Justice awarded the remaining $3.5 million to support research and evaluation on human trafficking.
“Human trafficking is a massive global enterprise with roots in cities and communities here in America and across the world,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is using all the resources at its disposal to help our state, local and tribal partners uncover and eradicate trafficking operations and help victims open the door to a new life.”
Grants awarded under fiscal year (FY) 2020 OVC programs aim to enhance the quality and quantity of services available to survivors of human trafficking. Specific programs:
- The Enhanced Collaborative Model Task Force to Combat Human Trafficking program awards over $22.7 million total. OVC awards over $17.7 million to 27 programs to support the effectiveness of collaborative and multidisciplinary task forces to combat human trafficking. The purpose of this program is to develop and strengthen programs for victims of human trafficking, including enhancing the capacity of law enforcement and other stakeholders to identify victims and provide justice for those victims through the investigation and prosecution of their traffickers. OVC also awards nearly $5 million in grants to three organizations for training and technical assistance for the task forces.
- The Housing Assistance Grants for Victims of Human Trafficking program awards over $35.1 million total to 73 organizations to provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grants will also provide funding to help victims locate permanent housing, secure employment and receive occupational training and counseling.
- The Improving Outcomes for Child and Youth Victims of Human Trafficking program awards over $4.2 million total to four recipients to integrate human trafficking policy and programming at the state or tribal level. This program will enhance coordinated, multidisciplinary and statewide approaches to at-risk populations to improve outcomes for children and youth who are victims of human trafficking.
- The Preventing Trafficking of Girls program awards $1.8 million total to four organizations, including a training and technical assistance provider, to support prevention and early intervention services, including mentoring and other direct support services for girls who are at risk of or are victims of sex trafficking.
- The Services for Minor Victims of Sex Trafficking program gives over $6.8 million to four recipients to develop, expand and strengthen assistance programs for minor victims of sex trafficking. Under this program, the funded states, tribes, and units of local government will provide (directly and through partnerships) an array of services that minor victims of human trafficking often require to address their need for safety, security, and healing.
- The Services for Minor Victims of Labor Trafficking program awards nearly $2 million total to three organizations to develop, expand, or strengthen victim service programs for minor victims of labor trafficking whose victimization occurred when they were under the age of 18.
- The Services for Victims of Human Trafficking program awards more than $23.6 million to 43 organizations to support services specific to victims of human trafficking.
- The Specialized Training and Technical Assistance on Housing for Victims of Human Trafficking program awards $643,163 total to deliver specialized training and technical assistance to victim service organizations to enhance their ability to provide appropriate housing for victims of human trafficking.
- OVC awards the Promoting Employment Opportunities for Survivors of Trafficking Training and Technical Assistance Project continuation funding in the amount of $300,000 to increase access to quality educational and employment opportunities for survivors of human trafficking.
Grants awarded under FY 2020 NIJ programs aim to understand law enforcement practices with regard to preventing and responding to victims of trafficking. Specific programs:
- The Research and Evaluation of Trafficking in Persons program awards over $2.5 million total to four organizations to build upon research and evaluation efforts to better understand, prevent and respond to trafficking in persons in the United States.
- The Research on Law Enforcement Responses to Sex Trafficking of Minors program awards nearly $1 million to understand how law enforcement practices with regard to preventing and responding to the sex trafficking of minors have evolved since passage of the Victims of Trafficking and Violence Protection Act of 2000. NIJ was specifically interested in understanding how widely law enforcement agencies have adopted practices based on the perspective that the minor is a victim rather than a delinquent and the challenges that agencies have faced in adopting such practices.
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/ovchumantraffickingfactsheet.pdf. More information about OJP and its components can be found at www.ojp.gov.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
A copy of this press release is located on our website.
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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.
- The Enhanced Collaborative Model Task Force to Combat Human Trafficking program awards over $22.7 million total. OVC awards over $17.7 million to 27 programs to support the effectiveness of collaborative and multidisciplinary task forces to combat human trafficking. The purpose of this program is to develop and strengthen programs for victims of human trafficking, including enhancing the capacity of law enforcement and other stakeholders to identify victims and provide justice for those victims through the investigation and prosecution of their traffickers. OVC also awards nearly $5 million in grants to three organizations for training and technical assistance for the task forces.
U.S. Attorney Mike Hurst, ATF, Hattiesburg Police Department, Forrest County Sheriff’s Office, and Mississippi Bureau of Narcotics and Others Announce Significant Operation in Pine Belt Under Project EjectRead the Press Release
Hattiesburg, Miss. – This week, federal, state and local law enforcement in the Pine Belt executed arrest warrants in and around Hattiesburg and Forrest County, including a number of individuals indicted and arrested on federal criminal charges.
Over the past year, under the U.S. Attorney’s Office’s Project EJECT and led by Assistant U.S. Attorney Andrew W. Eichner, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), the Hattiesburg Police Department, the Lamar County Sheriff’s Office, Drug Enforcement Administration (“DEA”), Federal Bureau of Investigation (FBI), the Forrest County Sheriff’s Office, the Mississippi Bureau of Narcotics and others have focused investigations on career criminal offenders, armed narcotics traffickers, and documented gang members in and around Hattiesburg and throughout Forrest County. These investigations involved controlled purchases of illegal narcotics, targeted follow ups and interviews driven by and based upon intelligence and evidence gathered, and coordination amongst prosecutors and officers to prioritize and marshal resources towards the worst criminal offenders throughout the Pine Belt.
“Under Project EJECT, we are taking drug dealers and violent criminals off our streets and making our communities safer. Today’s announcement of the indictment and arrest of 7 prominent drug dealers in the Pine Belt is a result of the important work that these brave men and women in law enforcement have been doing to clean up our streets, make our neighborhoods safe, and protect our citizens. I want to thank our agents, officers, deputies and prosecutors for their hard work in bringing these criminals to justice,” said U.S. Attorney Hurst.
”ATF remains committed to working with our law enforcement partners to remove violent drug dealers from our communities,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “We are proud to be a member of Project EJECT and will continue to do our part to help reduce firearm violence.”
“U.S. Attorney, Mike Hurst, you and your staff have been a tremendous asset in our crime reduction plan. Through Project EJECT you have helped us remove some of the most violent offenders from the streets of Hattiesburg. I want to thank, U.S. Attorney Mike Hurst and staff, by combining our resources as a team, it provides us an avenue for continued success in our fight against crime,” said Hattiesburg Police Department Chief Anthony Parker.
“Today’s arrests are a culmination of hard work, collaboration, and cooperation between multiple agencies to make our communities safer. Crime and drugs have no jurisdictional boundaries and coordinated efforts and information sharing always produces superior results. I want to personally thank all of the agencies involved for a successful operation,” said Charlie Sims, Forrest County Sherriff.
“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."
This collaborative effort has resulted in the indictment by the U.S. Attorney’s Office of 7 defendants on federal drug charges, one of whom has already pled guilty.
- In January 2020, Shane Ware trafficked over 200 grams of methamphetamine with 100% purity into Hattiesburg.
- On two separate occasions in January 2020, Bradford Mark sold almost half a kilogram of methamphetamine with purity levels ranging up to almost 90%.
- In February 2020, Alfred Richards sold over 100 grams of methamphetamine in Hattiesburg with 99% purity.
- On two separate occasions in February 2020, Demetric Evans sold a total of over 200 grams of methamphetamine with 100% purity.
- On two separate occasions in March 2020, Kevin Taylor trafficked almost half a kilogram of methamphetamine into Hattiesburg, which was 99% pure, extremely deadly.
- Earlier this year, Amos Blanks was indicted federal for having trafficked meth in Hattiesburg in 2017 and 2019. Mr. Blanks pled guilty to one count of methamphetamine trafficking on July 23, 2020 and will be sentenced before Senior U.S. District Judge Keith Starrett on November 18, 2020 at 9:30 am.
- Georgio R. Scott was indicted for being a felon in possession of ammunition.
These cases are a part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
U.S. Attorney Maria Chapa Lopez Announces over $2.8 Million in Awards to Combat Human Trafficking in Middle District of FloridaRead the Press Release
Tampa, FL – U.S. Attorney Maria Chapa Lopez today announced that the Middle District of Florida has received $2,879,856 from the Department of Justice’s Office of Justice Programs, through its component, Office for Victims of Crime (OVC), to fund efforts that combat human trafficking and provide vital services to trafficking victims throughout the United States.
“The scourge of human trafficking is the modern-day equivalent of slavery, brutally depriving victims of basic human rights and essential physical needs as it erodes their sense of dignity and self-worth,” said Attorney General William P. Barr. “The Department of Justice is relentless in its fight against the perpetrators of these heinous crimes. Working with state and local law enforcement and community victim service providers, we will continue to bring these criminals to justice and deliver critical aid to survivors.”
“These awards will assist our partners as they continue the critically important work of rescuing, recovering, and assisting victims of the heinous crime of human trafficking reclaim their lives,” said U.S. Attorney Maria Chapa Lopez. “We will continue to aggressively go after the perpetrators of these horrible crimes and support our partners and the victims, in every way possible.”
Nationally, the Office for Victims of Crime (OVC) awarded over $97.4 million to state, local and tribal jurisdictions, service providers and task forces all over the country, while OJP’s National Institute of Justice awarded the remaining $3.5 million to support research and evaluation on human trafficking. Awards were made to the following recipients to support efforts that combat human trafficking and/or provide services for human trafficking survivors:
Catholic Charities, Diocese of Venice, Inc. $500,000 Citrus Health Network, Inc. $499,995 United Way of Pasco County, Inc. $498,000 Goodwill Industries – Suncoast, Inc. $349,895 Latisha’s Home Foundation Florida, LLC $350,000 Living Above the Noise, Inc. $681,966“Human trafficking is a massive global enterprise with roots in cities and communities here in America and across the world,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is using all the resources at its disposal to help our state, local and tribal partners uncover and eradicate trafficking operations and help victims open the door to a new life.”
Grants awarded under fiscal year (FY) 2020 OVC programs aim to enhance the quality and quantity of services available to survivors of human trafficking. Specific programs:
- The Enhanced Collaborative Model Task Force to Combat Human Trafficking program awards over $22.7 million total. OVC awards over $17.7 million to 27 programs to support the effectiveness of collaborative and multidisciplinary task forces to combat human trafficking. The purpose of this program is to develop and strengthen programs for victims of human trafficking, including enhancing the capacity of law enforcement and other stakeholders to identify victims and provide justice for those victims through the investigation and prosecution of their traffickers. OVC also awards nearly $5 million in grants to three organizations for training and technical assistance for the task forces.
- The Housing Assistance Grants for Victims of Human Trafficking program awards over $35.1 million total to 73 organizations to provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grants will also provide funding to help victims locate permanent housing, secure employment and receive occupational training and counseling.
- The Improving Outcomes for Child and Youth Victims of Human Trafficking program awards over $4.2 million total to four recipients to integrate human trafficking policy and programming at the state or tribal level. This program will enhance coordinated, multidisciplinary and statewide approaches to at-risk populations to improve outcomes for children and youth who are victims of human trafficking.
- The Preventing Trafficking of Girls program awards $1.8 million total to four organizations, including a training and technical assistance provider, to support prevention and early intervention services, including mentoring and other direct support services for girls who are at risk of or are victims of sex trafficking.
- The Services for Minor Victims of Sex Trafficking program gives over $6.8 million to four recipients to develop, expand and strengthen assistance programs for minor victims of sex trafficking. Under this program, the funded states, tribes, and units of local government will provide (directly and through partnerships) an array of services that minor victims of human trafficking often require to address their need for safety, security, and healing.
- The Services for Minor Victims of Labor Trafficking program awards nearly $2 million total to three organizations to develop, expand, or strengthen victim service programs for minor victims of labor trafficking whose victimization occurred when they were under the age of 18.
- The Services for Victims of Human Trafficking program awards more than $23.6 million to 43 organizations to support services specific to victims of human trafficking.
- The Specialized Training and Technical Assistance on Housing for Victims of Human Trafficking program awards $643,163 total to deliver specialized training and technical assistance to victim service organizations to enhance their ability to provide appropriate housing for victims of human trafficking.
- OVC awards the Promoting Employment Opportunities for Survivors of Trafficking Training and Technical Assistance Project continuation funding in the amount of $300,000 to increase access to quality educational and employment opportunities for survivors of human trafficking.
Grants awarded under FY 2020 NIJ programs aim to understand law enforcement practices with regard to preventing and responding to victims of trafficking. Specific programs:
- The Research and Evaluation of Trafficking in Persons program awards over $2.5 million total to four organizations to build upon research and evaluation efforts to better understand, prevent and respond to trafficking in persons in the United States.
- The Research on Law Enforcement Responses to Sex Trafficking of Minors program awards nearly $1 million to understand how law enforcement practices with regard to preventing and responding to the sex trafficking of minors have evolved since passage of the Victims of Trafficking and Violence Protection Act of 2000. NIJ was specifically interested in understanding how widely law enforcement agencies have adopted practices based on the perspective that the minor is a victim rather than a delinquent and the challenges that agencies have faced in adopting such practices.
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/ovchumantraffickingfactsheet.pdf. More information about OJP and its components can be found at www.ojp.gov.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Two Puerto Rico Natives Apprehended at St. Thomas Hotel, Charged with Possession with Intent to Distribute 30 Kilograms of CocaineRead the Press Release
St. Thomas, USVI – Rafael Velez-Lopez, 24, and Emanuel Campbell Camacho, 29, of Vieques, PR, appeared today before Magistrate Judge Ruth Miller for preliminary and detention hearings after being taken into custody by Drug Enforcement Administration (DEA) at the Windward Passage Hotel last Friday. Velez-Lopez and Camacho were charged with Possession with Intent to Distribute Cocaine, United States Attorney Gretchen C.F. Shappert announced. At the conclusion of the hearing, Magistrate Judge Miller detained Velez-Lopez and Camacho pending formal charges in this case.
According to court records, on Tuesday, September 22, 2020, DEA agents received intelligence concerning two unidentified males who had recently traveled by commercial flight from Puerto Rico to St. Thomas, and were driving a purple Jeep Wrangler. The first individual was described as a light-skin Puerto Rican male with blonde, shoulder length hair, and was later identified as Emanuel Campbell Camacho. The second individual was described as a Puerto Rican male with multiple tattoos on his arms, and was later identified as Carlos Rafael Velez-Lopez.
After two days of surveillance, on September 24, 2020, DEA agents tracked Velez-Lopez and Camacho to the Windward Passage Hotel as the vehicle they were occupying entered the gated parking area of the hotel. Later, at approximately 7:15 p.m., Camacho was observed leaning into the passenger side of the vehicle, and moments later, he was observed carrying a large, heavily weighted duffle type bag into the hotel courtyard. As he proceeded into the courtyard of the Windward Passage Hotel, agents observed Camacho carrying the weighted duffle bag up the stairs leading to the second floor level of the hotel. As the agents approached Camacho, they saw Lopez-Velez near the top of the stairs, sitting on a bench with a cell phone in his hands. Both Camacho and Lopez-Velez were taken into custody. Agents later discovered 30 brick-shaped objects in the black duffle bag that Camacho was carrying. A sample taken from one of the bricks tested positive for the presence of cocaine.
This case is being investigated by DEA and is being prosecuted by Assistant United States Attorney Delia L. Smith. United States Attorney Shappert reminds the public that a complaint is merely a charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Two Defendants Agree to Plead Guilty to Multi-Million Dollar Medicare Fraud SchemeRead the Press Release
BOSTON – A Colorado woman and a Florida woman have agreed to plead guilty in connection with a multi-million dollar Medicare fraud scheme.
Jessica Jones, 30, of Louisville Colo., and Elizabeth Putulin, 30, of Coconut Creek, Fla., were each charged by Information with one count of conspiracy to commit health care fraud. Plea hearings have not yet been scheduled by the Court.
According to charging documents, Jones and Putulin conspired with Juan Camilo Perez Buitrag to submit more than $109 million in false and fraudulent claims for durable medical equipment (DME) such as arm, back, knee and shoulder braces. Perez was charged in July 2020 and has agreed to plead guilty. A plea hearing for Perez is scheduled for Oct. 5, 2020.
It is alleged that the Jones and Putulin helped Perez manufacture and submit false and fraudulent Medicare claims by establishing shell companies in more than a dozen different states, including Massachusetts. Perez directed employees, including Jones and Putulin, to list his mother, wife and yacht captain as corporate directors and to use fictitious names when registering the shell companies as DME providers. At Perez’s request, Jones and Putulin allegedly purchased Medicare patient data from foreign and domestic call centers that targeted elderly patients, and instructed call centers to contact the Medicare beneficiaries with an offer of ankle, arm, back, knee and/or shoulder braces “at little to no cost.” Perez then submitted Medicare claims for those patients without obtaining a prescriber’s order to ensure that the braces were medically necessary. It is further alleged that he submitted blatantly fraudulent claims, including claims for deceased patients and repeat claims for the same patient and the same DME. Perez failed to provide any DME for more than $7.5 million in claims. When Perez did provide DME to patients, he typically billed insurance policies more than 12 times the average price of the DME that he provided to the patient.
Jones and Putulin further facilitated the fraud by answering frequent phone calls from Medicare patients who received DME that they did not request, want or need. Jones and Putulin also responded to insurance companies’ requests for prescriber’s orders and medical records, which they were unable to provide.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Johnnie Sharp Jr., Special Agent in Charge of the Federal Bureau of Investigation, Birmingham Field Division; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Boston Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
Todd County Man Sentenced for Failure to Register as Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Todd County, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 28, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Edward Zane Roubideaux, Jr., age 30, was sentenced to 21 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Roubideaux was indicted by a federal grand jury on December 10, 2019. He pled guilty on July 20, 2020.
Roubideaux was convicted of Abuse of a Minor in May 2008. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. Between August 15, 2019, and September 19, 2019, Roubideaux failed to register and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Roubideaux was immediately turned over to the custody of the U.S. Marshals Service.
Thailand National Indicted for Defrauding New Jersey Company in Purchase of Personal Protective EquipmentRead the Press Release
NEWARK, N.J. – A Thailand national was indicted today for defrauding a New Jersey company in its purchase of COVID-19 personal protective equipment (PPE) intended for combating the COVID-19 virus, U.S. Attorney Craig Carpenito announced.
The defendant, known only by the alias “Dang Chanchai,” is charged with nine counts of wire fraud for defrauding the victim company of approximately $1.5 million.
According to the indictment:
From at least March 2020 through May 2020, Chanchai knowingly and intentionally devised a scheme to defraud the victim company by means of materially false and fraudulent pretenses, making false representations about his ability to provide 3M Company (3M) N95 respirator and surgical masks through an entity Chanchai identified as UTE Group Company Limited (UTE).
Chanchai falsely represented himself and UTE as a distributor of 3M N95 masks. On March 17, 2020, Chanchai sent the victim company a contract that falsely represented that UTE could and would supply 10 million N95 masks. The victim company agreed to purchase from Chanchai and UTE approximately 1 million 3M N95 masks for ultimate delivery to health care providers in Europe.
From April 20, 2020, through April 30, 2020, Chanchai sent the victim company fake documents purporting to be from 3M, including a fake purchase order from 3M showing the order by UTE of the masks purchased by victim company. The fake documents also included false representations about the status of the production of the masks, as well as requests for payments to satisfy the order. Based on the fake 3M documents, the company ordered 300,000 additional masks. Chanchai provided the company with two more fake 3M documents, confirming the new order and falsely representing that the new order would be ready for pick-up on May 13, 2020.
Based on Chanchai’s misrepresentations, the victim company wired payments totaling $1,494,306 to UTE. Chanchai and UTE did not provide a single 3M N95 mask to the company and ceased communicating with the company after receiving the final payment under the agreement.
The wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross pecuniary gain or loss from the offense, whichever is greater.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.
Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by U.S. Attorney Carpenito, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs. The Secretary of Health and Human Services has issued a Notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices.
Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: [email protected]
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Springfield Man Sentenced to 20 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man has been sentenced in federal court for his role in a conspiracy to distribute large amounts of methamphetamine.
Ronald A. Stone, 52, was sentenced by U.S. District Judge Stephen R. Bough on Friday, Sept. 25, to 20 years in federal prison without parole.
On May 16, 2019, Stone pleaded guilty to participating in a conspiracy to distribute methamphetamine in Greene County, Missouri, from March 30 to Aug. 30, 2017. Stone also pleaded guilty to possessing methamphetamine to distribute and to possessing firearms in furtherance of drug trafficking.
Springfield police officers executed a search warrant at Stone’s residence on March 30, 2017, and seized a Hi Point 9mm semi-automatic pistol, a Crown Royal bag that contained rounds of 9mm ammunition, and 7.61 grams of methamphetamine.
Officers executed another search warrant at Stone’s residence on Aug. 19, 2017, and seized a distributive amount of methamphetamine, a loaded Taurus .39-caliber revolver, a loaded Vega .45-caliber semi-automatic pistol, and $5,661.
On Aug. 29, 2017, a confidential informant reported that Stone was preparing to travel to the Kansas City area to buy methamphetamine. DEA agents conducted surveillance of Stone as he traveled to Peculiar, Missouri, where he met an unknown man in a Denny’s parking lot. During his return trip to Springfield, Missouri State Highway Patrol troopers stopped the vehicle and conducted a search. They seized three large bags that contained a total of approximately 6.8 pounds of methamphetamine.
Stone is the second defendant to be sentenced in this case. Co-defendant Carol A. Hardy, also known as Carol A. Johnson, 51, also pleaded guilty to her role in the drug-trafficking conspiracy and was sentenced on Dec. 14, 2018, to 20 years in federal prison without parole. Law enforcement officers executed a search warrant at Hardy’s residence and found 1.766 kilograms of methamphetamine in a safe on the floor of a bedroom closet.
Co-defendant Richard G. Wacker, 61, pleaded guilty to his role in the drug-trafficking conspiracy and awaits sentencing. Wacker admitted that he traveled to Kansas City on several occasions to purchase a half-pound of methamphetamine. After making two trips with Stone, according to Wacker’s plea agreement, Stone began making the trips to Kansas City without Wacker every two to three days. Stone purchased two pounds on each trip, one pound for himself and one pound for Wacker.
Two days after Stone’s arrest, Wacker drove from Kansas City to Oklahoma City, where he purchased five kilograms of methamphetamine for $45,000. Wacker admitted that he had traveled to Oklahoma City to purchase five kilograms of methamphetamine on two earlier occasions.
Wacker also admitted that he distributed pound quantities of methamphetamine to co-defendant Herbert R. Dinger, 65, of Springfield. Dinger pleaded guilty to his role in the drug-trafficking conspiracy and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Josephine L. Stockard. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol and the Springfield, Mo., Police Department.South Florida Lawyer Charged with Fraud Related to 1 Global Capital Investment SchemeRead the Press Release
Miami, Fl. -- A Florida attorney and former outside counsel for 1 Global Capital LLC (1 Global), has been charged today with conspiring to commit wire fraud and securities fraud in connection with an investment fraud scheme that, as alleged, impacted more than 3,600 investors in 42 different states, and involved him personally and fraudulently raising more than $100 million from investors.
Ariana Fajardo Orshan, United States Attorney, Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami Field Office, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation (FDIC) Office of Inspector General, made the announcement.
Andrew Dale Ledbetter, 78, of Fort Lauderdale, Florida, is charged in an information with conspiracy to commit wire fraud and securities fraud. The case is assigned to U.S. District Judge Darrin P. Gayles of the Southern District of Florida.
According to the allegations in the information, 1 Global was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans with high interest rates to small businesses, termed merchant cash advance loans (MCAs). To fund these loans, 1 Global obtained funds from investors nationwide, offering short-term investment contracts that promised to “place” the investors’ money onto MCAs. The investors would supposedly receive a proportionate share of the principal and interest payments as the loans were repaid. 1 Global raised money using investment advisors and other intermediaries, with promises to these advisors of significant commissions. In many cases, according to court documents, the commissions were not fully disclosed to investors. Ledbetter was an attorney licensed in the State of Florida who worked at Law Firm #1 and acted in a fundraising capacity at 1 Global beginning in or around 2015.
Substantial questions arose during the operation of the business as to whether 1 Global was offering or selling a security and whether the investment offering was required to be registered with the U.S. Securities and Exchange Commission. These questions were raised by investors, investment advisors, and regulators. Ledbetter and Jan Douglas Atlas, a partner at Law Firm #1 who also acted as outside counsel for 1 Global, knew that if 1 Global’s investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and to continue to operate without substantial additional expenses and reporting requirements. Such a classification would undermine the profits and fees that Ledbetter and other principals at 1 Global would be able to obtain from 1 Global’s operations.
The information alleges that at the request of 1 Global’s principals, Atlas authored two opinion letters in 2016 containing false information that Atlas knew would be used by 1 Global to operate the business unlawfully. The opinion letters falsely described the duration of the investment, among other things, omitting the automatic renewal aspect and that the investment was being targeted toward retail, non-sophisticated investors (such as IRA account holders). According to the information, Ledbetter used and relied on Atlas’s opinion letters to continue to raise money illegally, knowing that the opinion letters falsely described the investment opportunity and were thus misleading. Ledbetter cited and used the false letters in numerous pitches and communications to investment advisors and investors.
According to the information, Ledbetter was personally involved in raising more than $100 million in investor funds that went to 1 Global, through his own pitches as well as through investment advisors he attracted to 1 Global. Over the years, Ledbetter received approximately $3 million from 1 Global, the majority of which was for commissions. Ledbetter routinely held himself out to investors and investment advisers as outside counsel to 1 Global, and also personally vouched for 1 Global in pitches and marketing materials. However, Ledbetter did not disclose the commissions that he received from 1 Global to investors, according to the information. Ledbetter also made misrepresentations to investors regarding the involvement of an outside auditing firm.
A number of individuals have entered guilty pleas in connection with the 1 Global fraud scheme. Alan G. Heide, the former 1 Global chief financial officer, was charged via information and sentenced to 60 months, in Case No. 19-60231-CR-RKA. Atlas, former outside counsel for 1 Global, was charged via information, pleaded guilty, and is awaiting sentencing in Case No. 19-60258-RKA, currently scheduled for Nov. 17, 2020. Steven Schwartz, a former director of 1 Global, was charged via information, pleaded guilty, and is awaiting sentencing in Case No. 20-60003-RKA, currently scheduled for Nov. 13, 2020. Information about the related cases can be found here: https://www.justice.gov/criminal-vns/case/1Global-Capital.
In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Ledbetter. In related cases, the SEC previously has filed civil fraud actions, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (Sothern District of Florida) SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (Southern District of Florida), and SEC v. Jan Atlas, Case No. 19-62303-WPD (Southern District of Florida). The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (Southern District of Florida), remains pending.
A criminal information is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law
This case was investigated by the FBI’s Miami Field Office, IRS-CI, and FDIC-OIG. Special Assistant U.S. Attorney Elizabeth Young, of the Southern District of Florida, and Deputy Chief Jerrob Duffy, Principal Assistant Deputy Chief Lisa H. Miller, and Assistant Chief L. Rush Atkinson, of the Criminal Division’s Fraud Section, are prosecuting this case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture. The SEC’s Miami Regional Office is also thanked for their contributions.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case no.: 20-cr-60103.
South Florida Lawyer Charged with Fraud Related to 1 Global Capital Investment SchemeRead the Press Release
A Florida attorney and former outside counsel for 1 Global Capital LLC (1 Global), has been charged today with conspiring to commit wire fraud and securities fraud in connection with an investment fraud scheme that as alleged impacted more than 3,600 investors in 42 different states, and involved him personally and fraudulently raising more than $100 million from investors.
Andrew Dale Ledbetter, 78, of Fort Lauderdale, Florida, is charged in an information with conspiracy to commit wire fraud and securities fraud. The case is assigned to U.S. District Judge Darrin P. Gayles of the Southern District of Florida.
According to the allegations in the information, 1 Global was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans with high interest rates to small businesses, termed merchant cash advance loans (MCAs). To fund these loans, 1 Global obtained funds from investors nationwide, offering short-term investment contracts that promised to “place” the investors’ money onto MCAs. The investors would supposedly receive a proportionate share of the principal and interest payments as the loans were repaid. 1 Global raised money using investment advisors and other intermediaries, with promises to these advisors of significant commissions. In many cases, according to court documents, the commissions were not fully disclosed to investors. Ledbetter was an attorney licensed in the State of Florida who worked at Law Firm #1 and acted in a fundraising capacity at 1 Global beginning in or around 2015.
Substantial questions arose during the operation of the business as to whether 1 Global was offering or selling a security and whether the investment offering was required to be registered with the U.S. Securities and Exchange Commission. These questions were raised by investors, investment advisors, and regulators. Ledbetter and Jan Douglas Atlas, a partner at Law Firm #1 who also acted as outside counsel for 1 Global, knew that if 1 Global’s investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and to continue to operate without substantial additional expenses and reporting requirements. Such a classification would undermine the profits and fees that Ledbetter and other principals at 1 Global would be able to obtain from 1 Global’s operations.
The information alleges that at the request of 1 Global’s principals, Atlas authored two opinion letters in 2016 containing false information that Atlas knew would be used by 1 Global to operate the business unlawfully. The opinion letters falsely described the duration of the investment, among other things, omitting the automatic renewal aspect and that the investment was being targeted toward retail, non-sophisticated investors (such as IRA account holders). According to the information, Ledbetter used and relied on Atlas’s opinion letters to continue to raise money illegally, knowing that the opinion letters falsely described the investment opportunity and were thus misleading. Ledbetter cited and used the false letters in numerous pitches and communications to investment advisors and investors.
According to the information, Ledbetter was personally involved in raising more than $100 million in investor funds that went to 1 Global, through his own pitches as well as through investment advisors he attracted to 1 Global. Over the years, Ledbetter received approximately $3 million from 1 Global, the majority of which was for commissions. Ledbetter routinely held himself out to investors and investment advisers as outside counsel to 1 Global, and also personally vouched for 1 Global in pitches and marketing materials. However, Ledbetter did not disclose the commissions that he received from 1 Global to investors, according to the information. Ledbetter also made misrepresentations to investors regarding the involvement of an outside auditing firm.
A number of individuals have entered guilty pleas in connection with the 1 Global fraud scheme. Alan G. Heide, the former 1 Global chief financial officer, was charged via information and sentenced to 60 months, in Case No. 19-60231-CR-RKA. Atlas, former outside counsel for 1 Global, was charged via information, pleaded guilty, and is awaiting sentencing in Case No. 19-60258-RKA, currently scheduled for Nov. 17, 2020. Steven Schwartz, a former director of 1 Global, was charged via information, pleaded guilty, and is awaiting sentencing in Case No. 20-60003-RKA, currently scheduled for Nov. 13, 2020. Information about the related cases can be found here: https://www.justice.gov/criminal-vns/case/1Global-Capital.
In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Ledbetter. In related cases, the SEC previously has filed civil fraud actions, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (Sothern District of Florida) SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (Southern District of Florida), and SEC v. Jan Atlas, Case No. 19-62303-WPD (Southern District of Florida). The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (Southern District of Florida), remains pending.
A criminal information is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI’s Miami Field Office, IRS-CI, and FDIC-OIG. Deputy Chief Jerrob Duffy, Principal Assistant Deputy Chief Lisa H. Miller, and Assistant Chief L. Rush Atkinson of the Criminal Division’s Fraud Section, and Special Assistant U.S. Attorney Elizabeth Young are prosecuting the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to the matter. The SEC’s Miami Regional Office is also thanked for their contributions.
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.
Santa Cruz Man Charged with Federal Hate Crime for Attempting to Stab Black ManRead the Press Release
SAN FRANCISCO – Ole Hougen has been charged with a federal hate crime for attacking a black man with a knife on a street in Santa Cruz, announced U.S. Attorney David L. Anderson, Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, and FBI Special Agent in Charge John L. Bennett.
Hougen, 44, of Santa Cruz, Calif., was charged by criminal complaint with willfully attempting to cause bodily injury by using a dangerous weapon because of a person’s actual or perceived race and color. According to the affidavit in support of the criminal complaint, Hougen confronted a 29-year-old black man who was crossing a street in Santa Cruz. Hougen took out a nine-inch knife and slashed at the man’s head, chest, and stomach multiple times while yelling racial slurs at him. At the time of the attack, Hougen was on probation for state convictions involving a racially-motivated assault on a different black man in 2018. The complaint also describes two additional racially-motivated assaults against black men committed by Hougen in 2014 and 2018.
Hougen is charged with violating Title 18, United States Code, Section 249. The charge in the complaint is merely an allegation and the defendant is presumed innocent unless proven guilty in a court of law. Hougen faces a maximum penalty of 10 years in prison if convicted.
Assistant United States Attorney Marissa Harris and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case on behalf of the government. The FBI conducted the investigation with the assistance of the Santa Cruz Police Department.
San Gabriel Valley Woman Faces Federal Charges of Running Sex Trafficking Operation that Targeted Immigrant WomenRead the Press Release
LOS ANGELES – A federal grand jury today returned a superseding indictment that charges a San Gabriel Valley woman with sex trafficking five immigrant women by hiring them to work at massage parlors and forcing them to engage in commercial sex acts.
Mei Xing, 59, a.k.a. “Xing Mei,” “Anna,” and “Boss,” of San Gabriel, is charged with five counts of sex trafficking by force, fraud, or coercion. Xing previously was indicted on June 12 on one count of sex trafficking, and today’s charging document adds four additional victims.
According to the superseding indictment, from July 2016 to October 2018, Xing ran a sex trafficking operation that targeted immigrant women. An affidavit previously filed in this case alleges that Xing owned and operated several massage parlors in the San Gabriel Valley cities of El Monte and South El Monte.
The victims reported that Xing pressured them into performing commercial sex acts at the massage parlors, court papers state. Xing allegedly coerced victims by all manner of threats, including threating to report their prostitution to police, threatening to expose their immigration status, and implicitly threatening to have them murdered. Xing allegedly told the victims she could make good on her threats because of her relationships with the government, the police, and the criminal underworld, according to court documents.
Xing has been in federal custody since her arrest in this matter in April. She is expected to be arraigned on the superseding indictment in the coming weeks. A December 15 trial date previously was set in this case by United States District Judge Otis D. Wright II.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Xing would face a mandatory minimum sentence of 15 years in federal prison for each count and a statutory maximum sentence of life imprisonment.
The investigation was conducted by the Los Angeles Regional Human Trafficking Task Force, which included agents with the FBI and deputies with the Los Angeles County Sheriff’s Department.
This case is being prosecuted by Assistant United States Attorneys Damaris Diaz and Scott M. Lara of the Violent and Organized Crime Section.
SNM gang member pleads guilty to federal racketeering chargeRead the Press Release
ALBUQUERQUE, N.M. – Jonathan “Baby G” Gomez, a member of the Syndicato de Nuevo Mexico prison gang, pleaded guilty on Sept. 25 to a racketeer influenced and corrupt organization (RICO) indictment.
The indictment, to which Gomez pleaded guilty, details various acts and communications since 2002 in which Gomez participated in relation to his membership in the organization. As described in the indictment, those communications discussed gang business, including illicit activities, and coordinated acts of violence, some of which were facilitated, directed or ordered by Gomez.
Gomez faces 15 to 20 years in prison. The court has not set a date for the sentencing hearing.
The FBI and the New Mexico Department of Corrections investigated this case. The Las Cruces office of the U.S. Attorney’s Office for the District of New Mexico is prosecuting the case.
Rewards Offered for Capture of Three Former Venezuelan Officials Charged in Miami Federal Court with Drug Trafficking and Other CrimesRead the Press Release
Miami, Fl. – Rewards are being offered for information leading to the arrest or conviction of three former Venezuelan officials who for years have failed to personally appear in the Southern District of Florida to face publicly-filed federal drug trafficking charges.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, and Acting Special Agent in Charge Keith Weis of the U.S. Drug Enforcement Administration (DEA) Miami Field Office, made the announcement.
Pedro Luis Martin-Olivares, 53, the former Chief of Economic Intelligence of the Venezuelan Intelligence Service (Servicio Bolivariano de Inteligencia Nacional (SEBIN)), was indicted in April 2015 by a federal grand jury sitting in Miami. Martin-Olivares is charged with distributing more than five kilograms of cocaine knowing that it would be unlawfully imported into the United States, possessing with the intent to distribute more than five kilograms of cocaine on board an aircraft registered in the United States, and conspiring with others to import more than five kilograms of cocaine. (Case No. 15-cr-20299).
Rodolfo McTurk-Mora, 58, the former head of Interpol in Venezuela, was indicted in April 2013, by a Miami federal grand jury. McTurk-Mora is charged with conspiring to import more than five kilograms of cocaine into the United States and with conspiring with others to corrupt and impede the South Florida federal prosecution of (now-convicted) narcotics trafficker Jaime Alberto Marin Zamora by delaying and preventing Marin Zamora’s extradition from Venezuela to the United States. According to allegations in court records, through his official position as the head of Interpol, McTurk-Mora solicited bribes from traffickers arrested in Venezuela to prevent their extradition to the United States. (Case No. 13-cr-20930).
Jesus Alfredo Itriago, 62, the former Chief of Counter-narcotics of a main criminal investigative agency in Venezuela (Cuerpo de Investigaciones Científicas, Penales y Criminálisticas (CICPC)), was indicted on January 31, 2013, by a federal grand jury sitting in Miami on a charge of conspiring with others to import more than five kilograms of cocaine into the United States. (Case No. 13-cr-20050).
The U.S. Department of State, through its Narcotics Rewards Program, is offering rewards for information leading to the arrest and/or conviction of each defendant as follows: up to $10 million for Martin-Olivares, up to $5 million for McTurk-Mora, and up to $5 million for Itriago.
“Corrupt Venezuelan officials who lined their pockets by protecting drug traffickers from detection and arrest enabled the entry of enormous amounts of dangerous drugs into the U.S., threatening the well-being of our nation,” said U.S. Attorney Fajardo Orshan. “Whether they are former or current Venezuelan officials, whether they committed their crimes years ago or yesterday, whether we catch them tomorrow, months, or years from now, I promise one thing: The Department of Justice and its law enforcement partners will not rest until these criminals are brought to justice in the U.S.”
“The walls are closing in for Martin-Olivares, McTurk-Mora, and Itriago, all of whom face significant drug trafficking charges in the Southern District of Florida.” said DEA Miami Field Division Acting Special Agent in Charge Keith Weis. “The rewards for information leading to their whereabouts and capture will add another significant level of pressure used by our investigators and prosecutors tasked with bringing them to justice.”
DEA Miami investigated these cases. The International Narcotics and Money Laundering Unit of the U.S. Attorney’s Office for the Southern District of Florida is prosecuting them.
These were Organized Crime Drug Enforcement Task Force (OCDETF) investigations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
In March of this year, the Department of Justice announced drug trafficking, corruption, narco-terrorism, and other criminal charges against Nicolas Maduro Moros and 14 Current and Former Venezuelan Officials, including charges filed by prosecutors in the Southern District of Florida. See press release: https://www.justice.gov/usao-sdfl/pr/nicol-s-maduro-moros-and-14-current-and-former-venezuelan-officials-charged-narco
Anyone with information that may lead to the arrest and/or conviction of these fugitives can email the DEA at [email protected], or message the DEA at 1-202-681-8187 using text messages, WhatsApp, or Signal. Government officials and employees are not eligible for rewards.
An indictment is an accusation. A defendant is presumed innocent unless and until found guilty.
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.
Red Lake Man Sentenced to 192 Months in Prison for Second Degree MurderRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of JEREMIAH KINGBIRD, 39, to 192 months in prison for second degree murder. KINGBIRD, who pleaded guilty on October 8, 2019, was sentenced today before Judge Susan Richard Nelson in U.S. District Court in St. Paul, Minnesota.
“Addressing MMIP cases is a top priority for the U.S. Attorney’s Office and for the Department of Justice,” said U.S. Attorney Erica H. MacDonald. “In this particular case, Mr. Kingbird subjected his wife to extreme physical violence before leaving her on the side of a road, exposed to below freezing temperatures. The disproportionally high rates of violence that plague Native American women is unacceptable. Today’s sentence represents justice for the victim and our commitment to putting an end to the staggering MMIP issue.”
According to the defendant’s guilty plea and documents filed in court, during the early morning hours of January 6, 2019, following a night of drinking, KINGBIRD and the victim, KINGBIRD’s wife, were traveling in a motor vehicle to their home in Ponemah, Minnesota, when KINGBIRD and the victim began to argue and engage in a physical altercation. While driving, KINGBIRD struck the victim in her head, used his hand to strangle her, and then left her on the road near Highway 1 and Old Ponemah Road in Redby.
According to the defendant’s guilty plea and documents filed in court, law enforcement found the victim, hours later, lying face down in the snow; she had severe injuries to her head and neck and was having difficulty breathing. The victim was transported to the Red Lake IHS Hospital where hospital staff were unsuccessful in reviving her. During a search of KINGBIRD’s vehicle, law enforcement observed blood on the front passenger window of the vehicle. KINGBIRD admitted to violently assaulting the victim and leaving her outside in the elements.
On November 22, 2019, Attorney General William P. Barr launched a national strategy to address missing and murdered Native Americans. When establishing the Missing and Murdered Indigenous Persons (MMIP) Initiative the Department of Justice made an initial investment of $1.5 million to hire 11 MMIP coordinators in 11 states to serve with all U.S. Attorney’s offices in those states, and others who require assistance. In addition to Minnesota, Alaska, Arizona, Montana, Oklahoma, Michigan, Utah, Nevada, Oregon, New Mexico, and Washington state were selected.
This case was the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
This case was prosecuted by Special Assistant U.S. Attorney Gina L. Allery and Assistant U.S. Attorney Deidre Y. Aanstad.
Defendant Information:
JEREMIAH KINGBIRD, 39
Ponemah, Minn.
Convicted:
- Murder in the second degree, 1 count
Sentenced:
- 192 months in prison
- 5 years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Recompensas Ofrecidas por la Captura de Tres Ex-Funcionarios Venezolanos Acusados en el Tribunal Federal de Miami por Narcotráfico y otros CrímenesRead the Press Release
Miami, Fl. – Recompensas están siendo ofrecidas por información que lleve al arresto o convicción de tres ex-funcionarios Venezolanos quienes durante años no han cumplido con asistir en persona a sus comparecencias iniciales en el Distrito Sur de Florida para enfrentar los cargos federales de narcotráfico presentados públicamente.
La Fiscal Federal Ariana Fajardo Orshan del Distrito Sur de Florida, y el Agente Especial a Cargo Interino Keith Weis de la Sucursal de Miami de la Administración para el Control de Drogas (DEA, por sus siglas en Inglés), hicieron el anuncio.
Pedro Luis Martin-Olivares, 53, el ex-Jefe de la Inteligencia Económica del Servicio de Inteligencia de Venezuela (Servicio Bolivariano de Inteligencia Nacional (SEBIN)), fue enjuiciado en Abril de 2015 por un gran jurado federal en Miami. Martin-Olivares fue acusado de distribuir más de cinco kilogramos de cocaína sabiendo que iban a ser importados ilegalmente a los Estados Unidos, poseer con la intención de distribuir más de cinco kilogramos de cocaína a bordo de un avión registrado en los Estados Unidos, y conspirar con otros para importar más de cinco kilogramos de cocaína. (Número de caso 15-cr-20299).
Rodolfo McTurk-Mora, 58, el ex-Jefe de la Interpol en Venezuela, fue enjuiciado en Abril de 2013, por un gran jurado federal en Miami. McTurk-Mora es acusado de conspirar para importar más de cinco kilogramos de cocaína en los Estados Unidos y de conspirar con otros para corromper e impedir el enjuiciamiento federal en el Sur de Florida del (ahora convicto) narcotraficante Jaime Alberto Marín Zamora retrasando e impidiendo la extradición de Marín Zamora de Venezuela a los Estados Unidos. Conforme con las alegaciones en los registros de la corte, haciendo uso de su posición como jefe de la Interpol, McTurk-Mora solicitó sobornos de traficantes arrestados en Venezuela para impedir su extradición a los Estados Unidos. (Número de caso 13-cr-20930).
Jesús Alfredo Itriago, 62, el ex-Jefe de Antinarcóticos de la agencia principal de investigación criminal en Venezuela (Cuerpo de Investigaciones Científicas, Penales y Criminálisticas (CICPC)), fue enjuiciado el 31 de Enero de 2013, por un gran jurado federal en Miami por cargos de conspirar con otros para importar más de cinco kilogramos de cocaína a los Estados Unidos. (Número de caso 13-cr-20050).
El Departamento de Estado de los Estados Unidos, a través del Programa de Recompensas de Narcóticos, está ofreciendo recompensas por información que lleve al arresto y/o la convicción de cada uno de los acusados del siguiente modo: hasta $10 millones por Martin-Olivares, hasta $5 millones por McTurk-Mora, y hasta $5 millones por Itriago.
“Codiciosos y corruptos funcionarios venezolanos quienes han aceptado sobornos por proteger narcotraficantes de ser descubiertos y arrestados, han permitido la entrada de enormes cantidades de peligrosas drogas a los Estados Unidos, amenazando el bienestar de nuestra nación,” dijo la Fiscal Federal Fajardo Orshan. “Ya sean ex-funcionarios o funcionarios Venezolanos actuales, ya sea que hayan cometido los crímenes años atrás o el día de ayer, ya sea que los arrestemos mañana, en meses, o en años, yo les prometo una cosa: El Departamento de Justicia y sus agencias asociadas no descansarán hasta que la justicia Americana recaiga en estos criminales.”
“Las paredes se están cerrando para Marin-Olivares, McTurk-Mora, y Itriago, quienes enfrentan cargos de narcotráfico significativos en el Distrito Federal del Sur,” dijo el Agente Especial a Cargo Interino Keith Weis de la Sucursal de Miami de la Administración para el Control de Drogas. “Las recompensas por información que lleve a su paradero y captura agregará otro nivel de presión significativo usado por nuestros investigadores y abogados fiscales encargados de que la justicia recaiga en ellos.”
DEA Miami investigó el caso. La Unidad Internacional de Narcóticos y Lavado de Dinero de la Oficina del Fiscal Federal del Distrito Sur de Florida está enjuiciandolo.
En Marzo de este año, el Departamento de Justicia anunció narcotráfico, corrupción, narcoterrorismo, y otros cargos criminals en contra de Nicolás Maduro Moros y de 14 Ex-funcionarios y funcionarios actuales Venezolanos, incluyendo cargos presentados por abogados fiscales en el Distrito Sur de Florida. Véase el comunicado de prensa: https://www.justice.gov/usao-sdfl/pr/nicol-s-maduro-moros-and-14-current-and-former-venezuelan-officials-charged-narco
Cualquier persona que tenga información que lleve al arresto y/o convicción de estos fugivitivos pueden enviar un correo electrónico a [email protected], o enviar un mensaje a la DEA a 1-202-681-8187 via mensaje de texto, WhatsApp, o Signal. Funcionarios y empleados del gobierno no son elegibles para recibir recompensas.
Una denuncia criminal contiene alegaciones. Todo acusado es considerado inocente hasta que se demuestre su culpabilidad.
Usted puede encontrar información y documentos legales relacionados a este comunicado de prensa en la página web del Tribunal Federal del Distrito Sur de Florida, www.flsd.uscourts.gov o en http://pacer.flsd.uscourts.gov
Randolph County woman admits to meth distributionRead the Press Release
ELKINS, WEST VIRGINIA – Kerri Marie Hamrick-Satterfield, of Elkins, West Virginia, has admitted to methamphetamine distribution, U.S. Attorney Bill Powell announced.
Hamrick-Satterfield, 32, pled guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Hamrick-Satterfield admitted to having more than five grams of methamphetamine in March 2018 in Barbour County.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force and the Philippi Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Randolph County man admits to meth distribution and firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joshua Jesse White, of Montrose, West Virginia, has admitted to drug and firearms charges, U.S. Attorney Bill Powell announced.
White, 39, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Possession of a Firearm in Furtherance of a Drug Crime.” White admitted to having more than 5 grams of methamphetamine, also known as “ice” and “crystal meth” in October 2018 in Randolph County. White also admitted to having a .22 caliber revolver with him during the drug crime.
White faces at least five years and up to 40 years incarceration and a fine of up to $5,000,000 for the drug count and at least five years and up to life incarceration and a fine of up to $250,000 for the firearms count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Parmelee Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on September 28, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Justin Whiting, age 20, was sentenced to 6 months in federal prison, followed by 6 months of home confinement, 30 months of supervised release, forfeiture of firearm, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Whiting was indicted by a federal grand jury on January 14, 2020. He pled guilty on July 23, 2020.
The conviction stemmed from an incident that occurred on December 5, 2019, in St. Francis, South Dakota. On that date, Rosebud Sioux Falls Law Enforcement Services responded to a call for service from St. Francis Indian School regarding Whiting. The investigation revealed that Whiting had brought a handgun to school and that he was addicted to, and an unlawful user of, marijuana.
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 its 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 local communities to develop effective, locally-based strategies to reduce 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. 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: https://www.justice.gov/projectguardian.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Whiting was immediately turned over to the custody of the U.S. Marshals Service.
Owner of Medical Laboratory Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
SHREVEPORT, La. – A Shreveport business owner was sentenced today to 40 months (3 years, 4 months) in prison for filing false tax returns, announced Acting United States Attorney Alexander C. Van Hook and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents and information provided to the court, Robert Clifton Poimboeuf, 58, was part owner of D&G Holdings, LLC, a medical laboratory in the Shreveport area. From 2011 through 2015, Poimboeuf filed false tax returns that underreported gross receipts earned from his business. Poimboeuf concealed from his tax return preparers at least two bank accounts reflecting income earned, and falsely characterized business receipts as non-taxable loans. As a result of these actions, Poimboeuf caused a tax loss of more than $1.9 million to the Internal Revenue Service (IRS).
In addition to the term of imprisonment, United States District Judge S. Maurice Hicks, Jr. ordered Poimboeuf to one year of supervised release and to pay restitution to the IRS in the amount of $1,904,477.
Acting United States Attorney Van Hook and Principal Deputy Assistant Attorney General Zuckerman thanked special agents of the IRS-Criminal Investigation who conducted the investigation, and Trial Attorney Kevin Schneider of the Tax Division, who assisted Acting United States Attorney Van Hook in the prosecution of the case.
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Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Northern District of Illinois. Operation Legend launched in Chicago on July 22, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
A federal grand jury indicted a man on carjacking and firearm charges for allegedly stealing a vehicle at gunpoint in Chicago.
“Our office will use every available federal resource to vigorously pursue and prosecute violent carjackers,” said John R. Lausch, Jr., U.S. Attorney for the Northern District of Illinois. “We are committed to working with our state and local law enforcement partners to aggressively fight violent crime and protect Chicago’s neighborhoods from gun offenders.”
Elias Quinones-Figueroa, 19, of Chicago, was charged with one count of carjacking and one count of brandishing a firearm during a crime of violence.
According to court documents unsealed Friday, Sept. 25, 2020, on May 27, 2020, Quinones-Figueroa forcibly took a 2008 Chevrolet Tahoe sport-utility vehicle from a victim in the West Town neighborhood of Chicago. It is alleged Quinones-Figueroa brandished a handgun during the carjacking.
The carjacking charge is punishable by up to 25 years in federal prison, while the firearm charge carries a mandatory minimum sentence of seven years, which must run consecutive to any sentence imposed on the carjacking charge.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
Since its inception, Operation Legend has yielded more than 3,500 local, state, and federal arrests, with more than 800 defendants charged with federal crimes.President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Oklahoma City Attorney Pleads Guilty to Unlawfully Possessing a Firearm While Subject to Victim Protective OrderRead the Press Release
OKLAHOMA CITY – Oklahoma City attorney Keegan Kelley Harroz, 37, has pleaded guilty today in federal court to one count of being a prohibited person unlawfully in possession of a firearm, announced U.S. Attorney Timothy J. Downing. Specifically, Harroz admitted that, on or about August 4, 2019, she possessed a firearm in violation of federal law because she was subject to a state-court victim protective order at the time she possessed the firearm.
At sentencing, Harroz faces a maximum penalty of ten years in prison, three years of supervised release, and a $250,000.00 fine. As part of the plea agreement in this case, the parties agreed that a sentencing range of 24 to 30 months’ imprisonment would be an appropriate disposition of the case. Sentencing will take place in approximately 90 days.
This case is a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, with assistance from the United States Marshals Service, along with other law enforcement partners. Assistant U.S. Attorneys Matthew P. Anderson, Jacquelyn M. Hutzell, and Danielle M. Connolly are prosecuting the case.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. The case is also part of "Operation 922," the district’s local implementation of Project Safe Neighborhoods and Project Guardian. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Ohio man admits to his role in drug conspiracy involving heroin, fentanyl, “crack” cocaine, and meth in WheelingRead the Press Release
WHEELING, WEST VIRGINIA – Michael Moon, of Toledo, Ohio, has admitted to his role in a drug conspiracy, U.S. Attorney Bill Powell announced.
Moon, also known as “Meezy,” 25, pled guilty today to one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 feet of a Protected Location.” Moon admitted to working with others to selling methamphetamine near Madison Elementary School in Wheeling on February 14, 2020.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. Magistrate Judge James P. Mazzone presided.
North Tonawanda Man Charged with COVID-19 Relief FraudRead 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 Michael Kornaker, 50, of North Tonawanda, NY, was charged by criminal complaint with wire fraud in relation to a national emergency, and aggravated identity theft. The charges carry a minimum penalty of two years in prison, a maximum penalty of 30 years, and a $1,000,000 fine.
Assistant U.S. Attorney Douglas A. C. Penrose, who is handling the case, stated that according to the complaint, the defendant was recently released from prison following a 2017 federal conviction on mail fraud and tax evasion charges, and was on supervised release. Kornaker fraudulently applied for an Economic Injury Disaster Loan (EIDL) through the U.S. Small Business Administration (SBA) between June and August 2020. The EIDL program provides funds to small businesses or private, non-profit organizations that suffer substantial economic injury as a result of a declared disaster, including the COVID-19 pandemic. The defendant applied for and was granted $60,500 using the name and personal information of another person, without that person’s permission.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr., and was detained.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Internal Revenue Service Criminal Investigation, under the direction of Special Agent-in-Charge Jonathan D. Larsen.
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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North Carolina Man Charged with Fraudulently Seeking over $6 Million in COVID Relief FundsRead the Press Release
A North Carolina man was charged with fraudulently seeking over $6 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Robert J. Higdon Jr. of the Eastern District of North Carolina.
Tristan Bishop Pan, 38, of Garner, is charged with wire fraud, bank fraud, and engaging in unlawful monetary transactions.
The indictment, unsealed today, alleges that Pan perpetrated a scheme to submit fraudulent PPP loan applications to federally insured banks. The Small Business Administration (SBA) guarantees PPP loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. According to the allegations, Pan submitted numerous fraudulent PPP loan applications, including on behalf of entities named Pan Insurance Agency, White Walker, Khaleesi, and The Night’s Watch. The indictment alleges that, in support of the fraudulent PPP loan applications, Pan made false statements about the companies’ employees and payroll expenses. The PPP loan applications were supported by fake documents, including falsified tax filings, according to the indictment. Pan allegedly submitted fourteen PPP loan applications seeking over $6.1 million and received more than $1.7 million in benefits following approval of the Pan Insurance Agency and White Walker PPP loan applications. The government was able to seize some of the allegedly fraudulent loan benefits.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal indictment is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration, the Federal Deposit Insurance Corporation Office of Inspector General, and the FBI, with the assistance of the Small Business Administration Office of Inspector General. Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Ethan A. Ontjes and John Harris are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
New York Man Sentenced for Fraud Conspiracy and ID TheftRead the Press Release
ALEXANDRIA, Va. – A New York man was sentenced today to 66 months in prison for his role in acquiring and using thousands of stolen payment card numbers, as well as other personal information.
According to court documents, from at least June 2016 through at least June 2019, Vladimir Michel, 34, of Brooklyn, and his co-conspirators committed various acts of fraud that resulted in at least $2.7 million in intended losses. One of the primary ways that Michel and his co-conspirators defrauded others was by obtaining and using thousands of stolen payment card numbers. Michel and his co-conspirators acquired and shared this account information by accessing illicit websites and using email and instant messaging platforms.
Michel and members of the conspiracy monetized the stolen payment cards they acquired by using the account information to purchase high-end merchandise and then re-sell it. For purchases at retail stores, the conspirators sometimes loaded the stolen payment card information into smartphones and paid for merchandise with their smartphones’ contactless payment features. Michel and his co-conspirators conducted fraudulent transactions across the United States, including at a number of retail stores in the Eastern District of Virginia.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Charles “Andy” Penn, Acting Chief of Police, Arlington County Police Department, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorneys Alexander P. Berrang and Nathaniel Smith III prosecuted the case. Former Assistant U.S. Attorney Laura Fong also provided significant assistance in this prosecution.
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. 1:19-cr-276.