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Friday 25 September 2020
Harris County Woman Convicted of Drug Trafficking ViolationsRead the Press Release
PLANO, Texas – A 38-year-old La Porte, Texas, woman has been convicted of federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Jennifer Lynn Culpepper was found guilty of conspiracy to possess with intent to manufacture and distribute methamphetamine, following a three-day jury trial before U.S. District Judge Sean Jordan.
According to information presented in court, in September 2019, DEA, Dallas Enforcement Group One, began investigating a drug trafficking organization operating out of Houston and Dallas, Texas. This organization was responsible for distributing multi-kilogram quantities of methamphetamine. Anthony Rae Ruiz agreed with others to transport approximately nine kilograms of methamphetamine from Houston to Dallas and meet at a gas station in McKinney. Members of DEA Enforcement Group One, the North Texas Criminal Interdiction Unit, and McKinney Police Department established surveillance at the location. Shortly after midnight on Sep. 19, 2019, Ruiz arrived at the gas station. Ruiz exited his vehicle, removed a duffel bag containing methamphetamine from the trunk, and placed it in his backseat.
While in route to a second location to complete the deal, a traffic stop was conducted on Ruiz’s vehicle. Officers encountered Ruiz and Jennifer Lynn Culpepper. A canine officer alerted to the presence of narcotics in the vehicle and police seized approximately 10 kilograms of methamphetamine from the car.
On Sep. 19, 2019, the U.S. Drug Enforcement Administration filed a criminal complaint against Ruiz and J Culpepper. The complaint charged them with conspiracy to possess with intent to distribute methamphetamine. On August 21, 2020, following a guilty plea, Ruiz was sentenced to 292 months in federal prison for his role in the conspiracy.
Under federal statutes, Culpepper faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the DEA Enforcement Group One, the North Texas Criminal Interdiction Unit, and the McKinney Police Department. The case was prosecuted by Assistant U.S. Attorneys from the Plano office. This case was prosecuted by Assistant U.S. Attorneys Ernest Gonzalez and Colleen Bloss.
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Hardin County Man Convicted of Conspiracy and Bank FraudRead the Press Release
Jackson, TN– Following a week-long trial with proper COVID-19 health and safety protocols, a federal jury has convicted Charles Ray Smith, 71, of Crump, Tenn., of defrauding three banks in Tennessee and Alabama. D. Michael Dunavant, U.S. Attorney announced the guilty verdict today.
According to information presented in court, Smith owned and operated several aggregate materials businesses in Tennessee, Alabama and Louisiana. From March 2009 until February 2012, Smith defrauded Central Bank in Savannah, Tenn., by depositing and directing others to deposit more than $116 million in fraudulent bank checks into his companies’ bank account. Smith also defrauded Wayne County Bank, in Waynesboro, Tenn., and First Metro Bank, in Muscle Shoals, Ala., by falsifying collateral to obtain loans. As a result, Smith stole more than $ 9.9 million from the victim banks.
The jury convicted Smith of all of the counts in the indictment, charging him with conspiracy to commit bank fraud, and seven counts of bank fraud.
The sentencing hearing is scheduled for January 5, 2021, before Chief U.S. District Judge S. Thomas Anderson, who also presided over the trial. Smith faces up to 30 years in prison for each count in the indictment, and a $1 million fine. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "The financial fraud committed by this defendant is massive, and had a significant negative impact on the shareholders, employees and customers of his bank victims. The U.S. Attorney’s Office places a high priority on protecting the security and integrity of transactions, deposits and assets of financial institutions, and this guilty verdict demonstrates that commitment. Smith has now been held accountable for his brazen crimes of dishonesty."
The case was investigated by the Federal Deposit Insurance Corporation, Office of Inspector General, and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Dean DeCandia and Matt Wilson prosecuted this case on behalf of the United States.
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Greenbrier County Man Sentenced to Federal Prison for Sex Offense Involving MinorRead the Press Release
BECKLEY, W.Va. – Matthew David Lambert, 26, of Renick, was sentenced to 100 months in federal prison for attempted receipt of child pornography. Upon release from prison, Lambert will serve a 25 year term of supervised release and be required to register as a sex offender.
“Each and every day my team works tirelessly to protect West Virginia’s children from predators like Lambert,” said United States Attorney Mike Stuart. “And we seek justice for all victims through prosecuting cases this.”
Lambert previously admitted that from on October 31 to November 1, 2019, he communicated via a social messaging application with a minor he believed to be a 14-year-old girl he understood to be located in Lewisburg. Despite knowing her age, Lambert repeatedly asked her to send him sexually explicit photographs of herself. When the purported minor refused, they agreed that they would meet at a hotel in Lewisburg, to engage in sexual activity, and Lambert would record a video of this sexual activity on his cell phone. On November 1, 2019, Lambert traveled to a hotel in Lewisburg in order to engage in sexual intercourse with the purported 14-year-old girl and was placed under arrest.
The investigation was conducted by the Federal Bureau of Investigation’s West Virginia Child Exploitation and Human Trafficking Task Force, which includes task force officers from the West Virginia State Police, the Kanawha County Sheriff’s Office, and the Ashland (Kentucky) Police Department, with additional assistance from the Greenbrier County Sheriff’s Office. Assistant United States Attorney Jennifer Rada Herrald handled the prosecution. United States District Judge Frank W. Volk imposed the sentence.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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.justice.gov/psc.
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. 5:19-cr-00295.
Follow us on Twitter: SDWVNews and USAttyStuart
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Greenbrier County Man Pleads Guilty to Breaking into United States Post OfficeRead the Press Release
Defendant stole a postal meter, money and stamps
BECKLEY, W.Va. – A Greenbrier County man entered a guilty plea to the felony offense of breaking into a United States Post Office, announced United States Attorney Mike Stuart. Matthew Riffle, 29, of Rupert, faces up to five years in prison and a $250,000 fine when he is sentenced on January 8, 2021. He also will be required to pay restitution to the United States Post Office.
“Riffle not only broke into a post office- he admitted he broke into two,” said United States Attorney Mike Stuart. “The security of our post offices is critical. In a season of massive amounts of ballots being delivered by mail, this case echoes the worries of many in the country as to post office and postal service security. I commend the tremendous work of the U. S. Postal Inspection Service and the Sheriff’s Departments of Greenbrier and Fayette counties.”
On two successive days, Riffle broke into two different United States Post Offices. On March 31, 2019, Riffle used a pry bar to break into the Springdale, Fayette County, United States Post Office. Once inside, he took a postage meter, mail, stamps and some cash. On the previous day, Riffle broke into the Smoot, Greenbrier County, United States Post Office and took some cash. Finally, on April 1, 2019, Riffle again attempted to break into the Smoot Post Office, but was not successful due to the installation of a new door lock and security mechanism. Riffle was arrested on April 2, 2019 by the Greenbrier County Sheriff’s Department. Riffle was advised of his Miranda rights and agreed to give a statement. He admitted to breaking into both of the post offices, and attempting to break into the Smoot Post Office a second time. Riffle stated that his goal was to take the postal machine that prints money orders, but he took the postage stamp meter by mistake. Law enforcement recovered a number of the stolen items from Riffle’s home, including the postage meter from the Springdale Post Office.
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. 5:20-cr-00064.
Follow us on Twitter: SDWVNews and USAttyStuart
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Georgia Man Sentenced to Prison for Running Ponzi SchemeRead the Press Release
A Georgia man has been sentenced to 60 months in prison followed by three years of supervised release for running a Ponzi scheme that ensnared over a hundred victims, and induced college students and others to part with money for his own personal benefit.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Charles Peeler of the Middle District of Georgia, and Special Agent in Charge Chris Hacker of the FBI’s Athens Field Office made the announcement.
Syed Arham Arbab, 23, of Atlanta, Georgia, was sentenced by U.S. District Judge C. Ashley Royal of the Middle District of Georgia. Judge Royal also ordered the defendant to pay $509,032.12 in restitution to his victims. Arbab pleaded guilty in October 2019 to one count of securities fraud.
As part of his guilty plea, Arbab admitted that from May 2018 through May 2019, while enrolled at the University of Georgia campus in Athens, Georgia, he solicited investors, many of whom were his fellow students, to invest in his entities, Artis Proficio Capital Management and Artis Proficio Capital Investments (collectively, APC), which he told investors were “hedge funds.” Arbab admitted that he convinced approximately 117 investors in Georgia and other states to invest funds with him and APC, and that he made material misrepresentations to those investors in order to induce them to invest and maintain their investments with him.
Arbab admitted that he made a number of misrepresentations in order to persuade victims to invest with him, including misrepresenting the funds’ returns, the number of investors, the total funds invested and the nature of the investment plays being made. He also admitted fabricating account statements. Victims invested approximately $1 million with Arbab in the course of his scheme, with Arbab falsely promising rates of returns as high as 22 percent or 56 percent, when his overall returns were nowhere near these amounts. Arbab offered some investors a seemingly risk-free “guarantee” on the first $15,000 invested, and the majority of investors, especially those who were students or younger professionals, invested less than this amount, believing that even if Arbab’s investment choices proved unsound or the market behaved unpredictably, they would still be paid back their entire principal investment.
Arbab admitted that knew he did not have the liquid capital to make good on these guarantees when he made them, but he did not disclose this to his investors. Further, when Arbab learned that some prospective investors were UGA football fans, he told them that a famous NFL player and UGA alumnus was an investor in the fund, when in fact the football player had never invested with APC. Arbab also misrepresented that he was an MBA candidate at UGA’s Terry College of Business. In fact, ARBAB had applied to and been rejected by UGA’s MBA program and was operating the fund primarily from his fraternity house as an undergraduate.
Arbab further admitted that he spent investor funds on personal expenses, including clothing, shoes, retail purchases, fine dining, alcoholic beverages, adult entertainment and interstate travel, including spending thousands of dollars gambling during three trips to Las Vegas in 2018 and 2019.
The FBI investigated the case. Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lyndie Freeman of the Middle District of Georgia’s Complex Frauds Unit are prosecuting the case. The Department of Justice appreciates the substantial assistance of the Enforcement Division of the Securities and Exchange Commission.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information here: https://www.justice.gov/criminal-fraud/victim-witness-program.
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.
Georgia Attorney Sentenced to More Than 12 Years for Attempting to Entice A Minor to Engage in Sexual Activity and Transmitting Obscene Material to A MinorRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Richard Franklin Jensen, III (34, Atlanta), a licensed attorney in Georgia, to 12 years and 7 months in federal prison for attempting to entice a minor to engage in sexual activity, and attempting to transfer obscene material to a minor. The court also ordered Jensen to forfeit the electronic devices he had used in the commission of the offenses.
Jensen had been found guilty by a jury on November 22, 2019. The court made a specific finding that Jensen obstructed justice when he lied under oath during the trial. The court also found that Jensen used his special skills as a trained attorney to fabricate a defense, claiming that he had been exercising his First Amendment rights and conducting research for a book he was writing while falsely implicating his former law professor in his crimes.
According to the evidence presented at trial, between May 23 and June 1, 2015, Jensen communicated on a social media website, via email, and over text messages with someone he believed to be a single mom looking for a man to sexually abuse her 12-year-old daughter. In reality, Jensen was talking to an undercover agent. During the conversations, Jensen told the “mom” that she had found the guy that she had been looking for, and that he was willing to travel from Atlanta to the Tampa Bay area to teach the child about sex and the “art of pleasing a man.” In addition to providing graphic details about the sexual abuse he wanted to perform on the child, Jensen asked the “mom” to prepare the child for the sexual encounter by breaking the child’s hymen in advance of his visit to Tampa.
Jensen planned to abuse the child over a period of time, stating that “it couldn’t be a one-time thing,” since girls her age form attachments to the person with whom they have their first sexual encounter. In his process of grooming the child, Jensen promised to buy “sexy big girl clothes and underwear,” complimented the child’s “sexy little body,” and wanted the mom to let the child watch pornography so the child could prepare for sex with Jensen.
Jensen also emailed and messaged the purported child, and graphically described the sexual abuse that he wished to engage in with the child. Jensen also sent multiple explicit pictures of himself to the mom to share with the child.
“Our communities are safer today with this child predator being put behind bars,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs.
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Francis D. Murray.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former University of Cincinnati basketball player ordered to pay more than quarter of a million dollars for failing to file taxesRead the Press Release
CINCINNATI – A former prominent college basketball player, who currently plays professionally overseas, was sentenced in U.S. District Court today for failing to file tax returns in the United States.
Yancy D. Gates, 31, of Cincinnati, was sentenced to one year of probation and ordered to pay nearly $270,000 in restitution to the IRS for failing to pay his taxes.
According to court documents, since 2012, Gates has played professional basketball for teams in Lithuania, Israel, China Germany and France.
Gates earned anywhere from $80,000 for his first season to $80,000 per month during the season he played in China. In addition to his salary, Gates’ employer teams provided him with all of his needs while living abroad, including his apartment, utilities, a car, health insurance, transportation, and several round trip flights he could use for himself or for family and friends.
During the offseason, Gates would return to the Southern District of Ohio to live.
Gates knew he was required to report his foreign earned income on a U.S. tax return, but has never filed a return nor reported any of his income from playing professional basketball.
Gates was charged by a bill of information in August 2019 pleaded guilty in January 2020 to two counts of willfully failing to file tax returns. His case was unsealed today.
Congress sets the maximum statutory sentence. Sentencing of the defendant is determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Bryant Jackson, Special Agent in Charge of the IRS-Criminal Investigation Cincinnati Field Office, announced the sentence imposed by U.S. Magistrate Judge Karen L. Litkovitz. Assistant United States Attorney Anthony Springer is representing the United States in this case.
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Former UGA Student Sentenced to Maximum Prison Term for Running A Ponzi Scheme from His Fraternity HouseRead the Press Release
Macon, GA -- A former University of Georgia undergraduate student who operated a Ponzi scheme which collected approximately $1 million in investments and defrauded 117 investors, including fellow students and their families, was sentenced to 60 months in prison this morning, the maximum prison sentence allowed under the law, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Syed Arham Arbab, 23, of Atlanta, was sentenced to 60 months in prison followed by three years of supervised release by United States District Judge C. Ashley Royal. In addition, Arbab was ordered to pay $509,032.12 in restitution. Arbab pleaded guilty on October 11, 2019 to a one-count information charging him with securities fraud. There is no parole in the federal system.
“Scammers who choose to operate in the Middle District of Georgia will be caught and prosecuted. Arbab preyed on unexperienced investors, including his own fellow students, by weaving a despicable web of lies to steal from people who trusted him. Arbab lied about pursuing a MBA, lied about having the support of a famous UGA grad, lied about the amount of capital he raised and lied about what he was doing with investors’ money. Arbab is not some sloppy bookkeeper. He never had the capital to back up the phony returns he promised investors. Arbab took other people’s money and spent it on lavish trips to Las Vegas, expensive clothing, fine dining, adult entertainment and luxuries for himself. His criminal actions have landed him in prison,” said U.S. Attorney Charlie Peeler. “I want to thank the FBI and the SEC for their help investigating this classic Ponzi scheme, and bringing a measure of justice to the 117 victims.”
"Arbab's lies and deceit to profit personally from the hard-earned money of investors, many of them fellow students, were unconscionable," said Chris Hacker, Special Agent in Charge of FBI Atlanta. "The victims will never recover their losses. It is a stark reminder to investors to be extremely careful where they entrust their money and be skeptical of offers that sound too good to be true."
Arbab admitted he spent investor funds on personal expenses, including clothing, shoes, retail purchases, fine dining, alcoholic beverages, adult entertainment and interstate travel, including spending thousands of dollars gambling during three trips to Las Vegas in 2018. Arbab’s illegal activities occurred between May 2018 through May 2019, while he was enrolled as an undergraduate student at the University of Georgia. Arbab solicited investors, many of whom were his fellow students, to invest in his entities, Artis Proficio Capital Management and Artis Proficio Capital Investments (collectively “APC”), which he told investors were “hedge funds.” Arbab admitted that he convinced approximately 117 investors in Georgia and other states to invest funds with him and APC.
Arbab made several misrepresentations in order to persuade victims to invest with him. The defendant fabricated account statements, misrepresenting the fund’s returns, the number of investors, and the total funds invested as well as the nature of the investment plays being made. Victims invested approximately $1 million with Arbab during his scheme, with Arbab falsely promising rates of returns as high as 22% or 56%, when his overall returns were nowhere near these amounts. Arbab offered some investors a seemingly risk-free “guarantee” on the first $15,000 invested, and the majority of investors, especially those who were students or younger professionals, invested less than this amount, believing that even if Arbab’s investment choices proved unsound or the market behaved unpredictably, they would still be paid back their entire principal investment. Arbab admitted that knew he did not have the liquid capital to make good on these guarantees when he made them, but he did not disclose this to his investors.
Arbab continued to deceive victims after he learned that some prospective investors were UGA football fans, telling them a famous NFL player and UGA alumnus was an investor in the fund, when in fact the football player had never invested with APC. Arbab also misrepresented that he was an MBA candidate at UGA’s Terry College of Business; in fact, he had applied to and been rejected by UGA’s MBA program and was operating the fund primarily from his fraternity house as an undergraduate.
Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lyndie Freeman of the Middle District of Georgia prosecuted the case for the Government. The criminal investigation was conducted by the FBI. The Department of Justice appreciates the substantial assistance of the Enforcement Division of the Securities and Exchange Commission.
Questions can be directed to Pamela Lightsey, Public Information Officer for the Middle District of Georgia, at (478) 621-2603, or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Former Teacher's Aide Pleads Guilty to Child Pornography Charges After Attempting to Have Sex with A Minor ChildRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christian Michael Stutes, 24, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to receipt and distribution of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that between April 12 and December 13, 2019, the defendant engaged in sexually explicit conversations via text message with an individual he believed to be the father of a 10-year-old male. The individual was actually an undercover FBI agent. During their conversations, Stutes discussed paying $150 to have sex with the 10-year-old male. On December 13, 2019, the defendant traveled to Brighton, NY, to meet and engage in commercial sex with the 10-year-old boy. Stutes was arrested by law enforcement officers at that time.
In addition, the defendant knowingly received and distributed images of child pornography. On the date of his arrest, Stutes possessed approximately 61 videos and 450 images of child pornography. Some of the images included prepubescent minors, as well depictions of violence.
At the time of his arrest, the defendant was employed as a teacher’s aide at a local child care facility, and was previously employed at various children’s camps.
The plea is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for December 18, 2020, at 11:00 a.m. before Judge Geraci. .
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Former Real Estate Attorney Sentenced to 66 Months in Prison for Defrauding Clients and LendersRead the Press Release
BOSTON – An former attorney was sentenced today in federal court in Springfield in connection with attempting to defraud and defrauding clients, investment firms and commercial lenders.
Phillip R. Williams, of Easthampton, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 66 months of in prison and three years of supervised release. In December 2019, Williams pleaded guilty to wire fraud, engaging in financial transactions greater than $10,000 of proceeds derived from criminal activity, money laundering and tax fraud.
In his capacity as an attorney, Williams maintained various bank accounts, including Lawyers’ Trust Accounts, at several banks. Williams was required to hold clients’ funds in the Lawyers’ Trust Accounts with the care required of a professional fiduciary, for the exclusive benefit of his clients.
In 2014, Williams engaged in numerous personal transactions with $453,695 belonging to two individuals who had transferred these funds into one of Williams’s Lawyer’s Trust Accounts for purposes of obtaining a bank loan. In April 2015, Williams failed to report the stolen money on his 2014 individual federal income tax return and in September 2015 Williams again failed to report the stolen money on his amended 2014 individual federal income tax return.
In addition, between April 14, 2015 and Nov. 1, 2017, Williams received $230,500 from a client in three checks to purchase land. Williams deposited these funds into his bank accounts, but instead of using those funds to purchase land for the client he engaged in various personal transactions with the money. In order to conceal those personal transactions, Williams sent e-mails to the client that falsely indicated he had used the money to purchase land from at least Nov. 28, 2018 to Dec. 3, 2018,
Between June 2, 2017 and Oct. 17, 2018, Williams fraudulently obtained loans in the name of the client and his company from two commercial lenders: ProBuilder Financial, LLC and Velocity Commercial Capital. For these loans, Williams falsely witnessed or notarized the forged signature of the client, who did not authorize or even know about the fraudulent loan applications. ProBuilder lent a total of $340,000 and Velocity lent a total of $334,000. Williams received four wire transfers of loan proceeds to his bank accounts totaling $379,888, which he spent for his own personal use. In February 2019, after ProBuilder sought repayment of its loans, Williams sent fraudulent e-mails attaching a mortgage on his home that bore the falsely notarized and forged signature of his ex-wife, a false pre-approval letter for a loan to his mother that bore the forged signature of a bank officer, and a false power of attorney that bore the forged signature of the client.
From Feb. 1, 2019 to March 31, 2019, Williams defrauded a private investment firm, Lore Investment Group, LLC, of approximately $1.1 million and attempted to defraud another private investment firm, Battles Capital Investments, of approximately $1.2 million, both concerning his purchase of a property in Saint Petersburg, Fla.
Between Jan. 16, 2019 and March 2, 2019, Williams attempted to defraud three other commercial lenders by obtaining loans (in the amounts of $1.365 million, $1.35 million, and $1.7 million), either on behalf of his client or himself, to purchase another property in Boston.
United States Attorney Andrew E. Lelling; Joleen Simpson, Acting Special Agent In Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
Former Rapides Parrish Corrections Officer Sentenced to 11 Months in Federal Prison for Assaulting InmateRead the Press Release
The Justice Department announced today that a former correctional officer with the Rapides Parish Sheriff’s Office (RPSO), Detention Center 1, in Alexandria, Louisiana, was sentenced today in federal court for assaulting an inmate detained at the facility.
Dominic Davidson, 27, was sentenced by U.S. District Court Judge Dee Drell to 11 months in federal prison, followed by one year of supervised release. Davidson previously pleaded guilty on June 11, 2020, to one misdemeanor count of violating the civil rights of an inmate in his custody.
“Physical, violent, and unjustified abuse by members of our law enforcement community is unlawful,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Justice Department is dedicated to ensuring that no one in this country is above the law and will continue to prosecute anyone who uses a position of power illegally to violate the civil rights of others.”
“Correctional officers have a sworn duty to ensure that inmates are protected, rather than abused,” said Acting U.S. Attorney Alexander C. Van Hook for the Western District of Louisiana. “The abuse of authority by this law enforcement officer and the violation of the inmate’s civil rights will not be tolerated. We will continue to pursue cases where this type of abuse and indiscretion occurs”
“Along with our partners, the FBI will aggressively investigate allegations wherein correctional officers abuse their position of power and authority over prisoners to deny them their constitutional right to be free from cruel and unusual punishment,” said FBI Special Agent in Charge Bryan Vorndran. “The law suffers the most when those in a position of trust abuses their power. The FBI is appreciative of its partnerships with the Rapides Sheriff's Office, the U.S. Attorney’s office of the Western District of Louisiana and the trial attorneys from the Department of Justice Civil Rights Division.”
According to plea documents and information presented in court, on June 14, 2018, while on duty as a correctional officer, Davidson entered the locked holding cell of pretrial detainee K.F. and began punching K.F. repeatedly in the face and body. Prior to Davidson entering the cell, K.F., who was completely naked and locked securely inside his cell, had been banging on the door in an attempt to get officers’ attention. In response to the banging, Davidson put on a pair of rubber gloves, unlocked and entered K.F.’s cell, pushed K.F. to the ground, and struck K.F. numerous times in the head and body. At no point before, during, or after the assault did K.F. pose a threat to himself or others.
This case was investigated by the FBI. Assistant U.S. Attorney Mary Mudrick of the Western District of Louisiana and Trial Attorneys Katherine DeVar and Thomas Johnson of the Civil Rights Division are prosecuting the case.
Former Rapides Parish Correctional Officer Sentenced for Assaulting InmateRead the Press Release
ALEXANDRIA, La. – A former correctional officer with the Rapides Parish Sheriff’s Office (RPSO), Detention Center 1, in Alexandria, Louisiana, was sentenced today in federal court for assaulting an inmate detained at the facility, Acting United States Attorney Alexander C. Van Hook announced.
Dominic Davidson, 27, was sentenced by United States District Judge Dee Drell to 11 months in federal prison, followed by one year of supervised release. Davidson previously pleaded guilty on June 11, 2020, to one misdemeanor count of violating the civil rights of an inmate in his custody.
According to plea documents and information presented in court, on June 14, 2018, while on duty as a correctional officer, Davidson entered the locked holding cell of pretrial detainee K.F. and began punching K.F. repeatedly in the face and body. Prior to Davidson entering the cell, K.F., who was completely naked and locked securely inside his cell, had been banging on the door in an attempt to get officers’ attention. In response to the banging, Davidson put on a pair of rubber gloves, unlocked and entered K.F.’s cell, pushed K.F. to the ground, and struck K.F. numerous times in the head and body. At no point before, during, or after the assault did K.F. pose a threat to himself or others.
“Physical, violent, and unjustified abuse by members of our law enforcement community is unlawful,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Justice Department is dedicated to ensuring that no one in this country is above the law and will continue to prosecute anyone who uses a position of power illegally to violate the civil rights of others.”
“Correctional officers have a sworn duty to ensure that inmates are protected, rather than abused. The abuse of authority by this law enforcement officer and the violation of the inmate’s civil rights will not be tolerated. We will continue to pursue cases where this type of abuse and indiscretion occurs,” stated Acting United States Attorney Alexander C. Van Hook.
SAC Bryan Vorndran stated, "Along with our partners, the FBI will aggressively investigate allegations wherein correctional officers abuse their position of power and authority over prisoners to deny them their constitutional right to be free from cruel and unusual punishment. The law suffers the most when those in a position of trust abuses their power. The FBI is appreciative of its partnerships with the Rapides Sheriff's Office, the US Attorney’s office of the Western District of Louisiana and the trial attorneys from the Department of Justice Civil Rights Division.”
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Mary Mudrick of the Western District of Louisiana and Trial Attorneys Katherine DeVar and Thomas Johnson of the Civil Rights Division prosecuted the case.
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Former Houston Independent School District Employee Pleads Guilty in College Admissions CaseRead the Press Release
BOSTON – A former employee of the Houston Independent School District pleaded guilty today in connection with her involvement in a scheme to use bribery and fraud to facilitate cheating on the ACT and SAT exams.
Niki D. Williams, 46, of Houston, Texas, pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud and honest services wire fraud and mail fraud. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 21, 2020. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, a fine, forfeiture in the amount of $20,000 and restitution.
Williams administered the SAT and ACT exams at the public high school in Houston where she worked. In exchange for bribe payments directed to her by co-conspirators William “Rick” Singer and Martin Fox, and in violation of her duty of honest services to the ACT and the College Board, Williams allowed another co-conspirator, Mark Riddell, to secretly take ACT and SAT tests in place of the children of Singer’s clients or to replace their exam answers with his own corrected answers. Williams then returned the falsified exams to the ACT and College Board for scoring.
Singer, Riddell and Fox previously pleaded guilty and are cooperating with the government’s investigation. Williams is the 41st defendant to plead guilty in this case.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Financial Planner Sentenced to Federal Prison for Investment Fraud and Failure to File Tax ReturnsRead the Press Release
PENSACOLA, FLORIDA – Former financial planner James A. Young III, 50, of Milton, was sentenced today to 51 months in federal prison after having pled guilty to wire fraud and failure to file tax returns. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
“The fact that so many of his victims were elderly and vulnerable makes Young’s actions particularly appalling,” said U.S. Attorney Keefe. “We will continue to work with our law enforcement partners and do everything within our power to combat elder abuse and financial fraud targeted at seniors.”
Between 2010 and 2014, while working as a financial planner, Young solicited his clients and others to invest money in false “side investments,” including real estate investments for property he did not own and investments in an oil and gas company with which he had no relationship. Young presented false documents to potential investors and falsely claimed that he was personally invested in order to convince them to invest. Almost all of Young’s victims were between the ages of 55 and 90. For those who agreed to invest, Young simply pocketed their money, which totaled over half a million dollars, for his own personal use. In some instances, Young used money obtained from investors to pay back other investors. He fraudulently claimed the funds represented returns or interest on their investments in order to keep the scheme going. Young also failed to file his federal tax returns for 2012, 2013, and 2014.
“We take seriously our charge to investigate tax crimes and financial fraud,” said Special Agent in Charge Brian Payne of IRS Criminal Investigation. “But we get a little added motivation when a crook’s victims are among the most vulnerable. Fraudsters beware: if you target our seniors, your plunders will only last so long before you attract the full force of federal, state, and local law enforcement working together to bring you to justice.”
“The significance of this fraud case, magnified by the sheer volume of victims, underscores once again the strength and effectiveness of our crime-fighting partnerships and shared mission to hold people responsible for financial rip-off schemes,” said Larry Ashley, Okaloosa County Sheriff.
As part of his sentence, Young was ordered to pay $402,207.71 in restitution to two dozen victims and $125,107.33 in restitution for unpaid taxes to the Internal Revenue Service. As a result of his crimes, the Securities and Exchange Commission barred Young from being involved in the securities industry, including associating with any broker, dealer, investment advisor, or transfer agent and participating in any offering of a penny stock.
Assistant United States Attorney Alicia H. Forbes prosecuted the case following a joint investigation by the Internal Revenue Service-Criminal Investigation and the Okaloosa County Sheriff’s Office. This case is part of the Department of Justice’s Elder Justice Initiative, which combats elder abuse and financial fraud targeted at seniors and is a key priority of the Department of Justice and the United States Attorney’s Office for the Northern District of Florida.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. YoungFormer Everton City Clerk Sentenced to 10 Years for Money-Laundering ConspiracyRead the Press Release
SPRINGFIELD, Mo. – The former city clerk in Everton, Missouri, has been sentenced in federal court for her role in a money-laundering conspiracy related to methamphetamine trafficking.
Kristy A. Conn, 46, of Everton, was sentenced by U.S. District Judge M. Douglas Harpool on Wednesday, Sept. 23, to 10 years in federal prison without parole.
“This defendant was placed in a position of trust and responsibility,” said U.S. Attorney Tim Garrison, “but chose to poison her community by enabling violent criminals to distribute large amounts of methamphetamine in southwest Missouri.”
“This sentencing shows there are consequences to criminal behavior,” said Adam Steiner, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “IRS-CI, the U.S. Attorney’s Office, and law enforcement partners will continue to unravel money laundering schemes such as what Mrs. Conn did.”
Conn pleaded guilty on Nov. 1, 2019, to conspiracy to commit money laundering. Conn admitted that she participated in the money-laundering conspiracy from June 20 to Dec. 6, 2017. During that time, Conn was the city clerk in Everton. Conn admitted that she directed Ginger L. Huerta, 41, of Halfway, Missouri, to send wire transfers of the proceeds from the distribution of methamphetamine to members of the drug-trafficking organization in California and Mexico.
The drug-trafficking organization was responsible for the distribution of more than 4.5 kilograms of methamphetamine in the Springfield, Missouri, area. Huerta pleaded guilty on Oct. 31, 2019, in a separate but related case, to her role in both the drug-trafficking and money-laundering conspiracies and awaits sentencing.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen and Special Assistant U.S. Attorney Jessica R. Keller. It was investigated by IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, the Dade County, Missouri, Sheriff’s Department, and the Oldham County, Texas, Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.Feds Charge Man for Placing Louisville Police Helicopter at RiskRead the Press Release
LOUISVILLE, Ky. – A man who pointed a laser pointer at a Louisville Metro Police Department helicopter blinding the pilots has been charged by federal criminal complaint, announced United States Attorney Russell Coleman. Following the temporary blindness from the beam of the laser pointer, the two officers immediately encountered headaches that impaired their ability to safely pilot the helicopter.
“Risk the safety of police or the public in violation of federal law in Louisville and expect swift and certain federal prosecution,” said U.S. Attorney Russell Coleman.
“Aiming a laser at aircraft is an incredibly dangerous act,” said FBI SAC Robert Brown. “Last night’s incidents threatened the safety of law enforcement who were dutifully protecting lawful protestors. The FBI will continue working with our partners to identify and investigate individuals who threaten the safety of our community.”
“Aiming a laser at our helicopter is not only illegal but it puts the lives of our officers in great danger,” said LMPD Chief Robert Schroeder. “We appreciate the support of our federal partners at the FBI and the US Attorney Russell Coleman.”
Manuel Martin Salazarleija Jr., 25, of Louisville, Kentucky, has been charged with aiming a laser at an Aircraft in violation of 18 United States Code, Section 39A.
According to the criminal complaint, on September 25, 2020, a Louisville Metro Police Department (LMPD) helicopter was performing surveillance of a vehicle fleeing the scene of a Walgreens burglary in Louisville, Kentucky. While conducting surveillance, at approximately 12:15 am, the two officers piloting the helicopter were temporarily blinded by a laser being pointed directly at the helicopter. Following the temporary blindness from the beam of the laser pointer, the two officers immediately encountered headaches that impaired their ability to safely pilot the helicopter.
Special Agents with the FBI were able to determine the exact location of the occurrence while on the ground. Salazarleija was located within a residence on East Kentucky Street, Louisville, Kentucky. The FBI agents interviewed Salazarleija regarding the incident. Salazarleija admitted to intentionally aiming the beam of the laser pointer at the LMPD helicopter while the aircraft was in flight. He said he was trying to disrupt the helicopter that he assumed was surveilling the protests in Louisville.
Salazarleija further admitted to dismantling the laser pointer and hiding it in a crawl space within his bedroom. Salazarleija shined the laser from his bedroom window located on the third floor of the residence on East Kentucky Street.
Helicopters operated by other law enforcement agencies and news station WLKY also reported being targeted by laser pointer beams while in flight over this area.
The charge carries a fine or imprisonment of not more than 5 years, or both.
The case is being investigated by the Louisville Metro Police Department and the Federal Bureau of Investigation.
A federal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a United States Magistrate Judge. The charge set forth in a complaint is merely an accusation and the defendant is presumed innocent until proven guilty.
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Federal jury finds two men guilty of felon in possession of firearms or ammunitionRead the Press Release
A federal grand jury in Cleveland and Akron this week returned separate guilty verdicts for two men charged with felon in possession of a firearm or ammunition. These are separate cases and are not related. They are the first federal jury trials held in the Northern District of Ohio since March of earlier this year.
“Federal jurors in Cleveland and Akron sent a strong message to those who illegally possess weapons or ammunition,” said U.S. Attorney Justin Herdman. “Both of these men have a long history of previous convictions for crimes of violence– including multiple domestic violence convictions. Statistics show that domestic violence offenders with a firearm are far more likely to potentially use it against their spouse or law enforcement. These verdicts are a victory for the victims of these offenders and for the cities of Akron and Cleveland. We have not let the COVID-19 pandemic reduce the timeliness and effectiveness of our law enforcement response, and we are pleased that the criminal justice system has been able to safely move forward with jury trials during this difficult time.”
A federal jury in Cleveland convicted Jaron R. Kirkland, age 35, of Akron, on Monday, September 21, on one count of felon in possession of firearm or ammunition.
According to the indictment in this matter, on or about May 31, 2019, Kirkland knowingly possessed a .380 caliber semi-automatic pistol and three rounds of ammunition for said firearm. Kirkland is prohibited from possessing a firearm after having been previously convicted of two separate felony domestic violence charges on June 18, 2015 and November 8, 2016, both in the Summit County Common Pleas Court.
Kirkland is scheduled to be sentenced on January 21, 2021, before Judge James S. Gwin. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Akron Police Department and was prosecuted by Assistant U.S. Attorneys Damoun Delaviz and Yasmine Makridis.
A separate federal jury in Akron convicted Ronald Mickel, age 41, of Lorain, on Tuesday, September 22, on one count of felon in possession of ammunition.
According to the indictment in this matter, on November 26, 2019, Mickel knowingly possessed 32 rounds of 9mm Luger ammunition. Mickel is prohibited from possessing a firearm or ammunition after having been previously convicted of felony aggravated robbery on June 18, 1999, felony domestic violence on May 27, 2014, felony domestic violence and intimidation of a victim on July 27, 2015, felony burglary on September 30, 2015, and felony domestic violence in January of 2019, in the Lorain County Common Pleas Court.
Mickel is scheduled to be sentenced on January 14, 2021 before Judge Sara Lioi. This case was investigated by ATF and Ohio Adult Parole Authority and was prosecuted by Assistant U.S. Attorneys John C. Hanley and Bryson Gillard.
Extradited Colombian National Sentenced in Manhattan Federal Court to 9 Years in Prison for Narcotics TraffickingRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Raymond P. Donovan, Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), Peter C. Fitzhugh, Special Agent in Charge of the New York Office of Homeland Security Investigations (“HSI”), Keith M. Corlett, Superintendent of the New York State Police (“NYSP”), and Dermot Shea, Police Commissioner of the City of New York (“NYPD”), announced that SANTIAGO LONDONO-VELEZ, a/k/a “Zack,” a/k/a “Carlos Avila,” a Colombian national, was sentenced today to 108 months[1] in prison for his participation in a Colombian drug trafficking organization that conspired to distribute significant quantities of heroin in the United States. On October 25, 2019, LONDONO-VELEZ pled guilty to a conspiracy to distribute and possess with intent to distribute heroin before U.S. District Judge P. Kevin Castel, who imposed today’s sentence. LONDONO-VELEZ’s co-defendant, Rolando Francisco Ossa-Calderon, was previously sentenced by Judge Castel to nine years in prison for his role in the conspiracy.
Acting Manhattan U.S. Attorney Audrey Strauss said: “Santiago Londono-Velez was responsible for the importation of multi-kilogram quantities of heroin and cocaine into the U.S. The prison sentence he received today is commensurate with his admitted crime.”
DEA Special Agent in Charge Raymond P. Donovan said: “Regional Priority Target Londono-Velez has found himself in the United States again, this trip with a visa based on justice. His sentencing underscores law enforcement’s commitment to stemming the flow of illegal drugs into the United States. I commend our law enforcement partners on their diligent efforts in this investigation and prosecution.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “With an extensive criminal history in the United States, Londono-Velez is again headed to prison for narcotics trafficking after moving cocaine and heroin through New York and Europe. It is with the incredible collaboration between federal and state law enforcement agencies that those criminals who move highly addictive drugs through our borders will face the consequences of their illicit acts.”
State Police Superintendent Keith M. Corlett said: “This investigation and today’s sentencing are evidence of the commitment we share with our law enforcement partners in keeping dangerous drugs off of our streets. This organization utilized ships to transport large quantities of dangerous drugs to the New York area and Europe. Great police work has stopped this enterprise and this career criminal. The State Police remain committed to partnering with other members of law enforcement to eliminate these types of operations and shutting down the distribution of illegal drugs.”
According to the Indictment and other filings in the case:
From at least in or about 2015 through in or about 2016, LONDONO-VELEZ was a member of a Colombian drug trafficking organization. LONDONO-VELEZ’s role in the organization was to coordinate the shipment of multi-kilogram loads of cocaine and heroin to the New York area and Europe via cargo containers on ships in which the narcotics were frequently concealed in loads of fresh produce. In one drug transaction that took place on November 3, 2015, LONDONO-VELEZ coordinated a delivery of six kilograms of heroin, which has a street value of more than $360,000, by his co-conspirator Ossa-Calderon to an undercover law enforcement officer in Queens, New York.
LONDONO-VELEZ was previously convicted twice in the United States for felony narcotics offenses. In 1995, he was sentenced in the U.S. District Court for the Middle District of Florida to 57 months in prison for a conspiracy to distribute approximately 47 kilograms of cocaine and deported to Colombia in 1999. After illegally reentering the United States in 2003, LONDONO-VELEZ was sentenced in New York State Supreme Court in Queens County to six years in prison for criminal possession of approximately 40 kilograms of cocaine in 2006. LONDONO-VELEZ was also convicted of illegal reentry in this District and deported to Colombia in 2011. In connection with the charges in this case, LONDONO-VELEZ was arrested in Colombia on August 8, 2018, and extradited to the United States on August 16, 2019.
* * *
In addition to the prison term, LONDONO-VELEZ, 50, was sentenced to five years of supervised release.
Ossa-Calderon, 42, of Elmont, New York, pled guilty to conspiracy to distribute and possess with intent to distribute heroin on March 13, 2018, and was sentenced by Judge Castel on June 12, 2018, to 108 months in prison and four years of supervised release.
Ms. Strauss praised the outstanding investigative work of the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force. The OCDETF New York Strike Force is a crime-fighting unit comprising federal, state, and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA, New York City Police Department, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
Ms. Strauss also thanked the DEA’s Bogota Country Office, the United States Marshals Service, and the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division, which provided significant assistance in securing the defendant’s extradition from Colombia.
The prosecution of his case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Sagar K. Ravi and Jilan J. Kamal are in charge of the prosecution.
[1] The 108-month sentence includes the 13 months LONDONO-VELEZ was incarcerated in Colombia pending extradition.
Dominican National Charged with Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national was indicted yesterday by a federal grand jury in Boston in connection with drug trafficking activities involving fentanyl and cocaine.
Jose Guerrero, 28, was indicted on two counts of distribution of and possession with intent to distribute fentanyl and oxycodone, three counts of distribution of and possession with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute 400 grams or more of fentanyl. Guerrero was previously charged by criminal complaint and arrested on Aug. 26, 2020. He has been in federal custody since his arrest.
According to charging documents, Guerrero made five separate sales of fentanyl and oxycodone powder and pills to an undercover law enforcement officer between June and August 2020 in the Saratoga Street area of Lawrence. Shortly after making his fifth sale to the undercover officer, Guerrero was arrested.
The charges of distribution of and possession with intent to distribute fentanyl and oxycodone carry a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The charges of distribution of and possession with intent to distribute 40 grams or more of fentanyl carry a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of possession with intent to distribute 400 grams or more of fentanyl carries a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division made the announcement. Valuable assistance was provided by the Lawrence Police Department. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doctor Pleads Guilty to Obstructing Telemedicine InvestigationRead the Press Release
LITTLE ROCK-A Dallas-area doctor pled guilty this afternoon to obstructing a federal health care investigation. Cody Hiland, United States Attorney for the Eastern District of Arkansas, Michael C. Mentavlos, Special Agent in Charge of the Defense Criminal Investigative Service Southwest Field Office, Patrick Roche, Acting Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General South Central Field Office, Miranda L. Bennett, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced Dr. Lorraine De Blanche, 56, pled guilty this afternoon before U.S. District Judge Brian S. Miller.
Patient complaints and a surge in claims for durable medical equipment (DME) and compounded prescription drugs triggered investigations into telemedicine fraud targeting federal insurers, including TRICARE, CHAMPVA, and Medicare. This prompted federal investigators to speak with medical providers linked to related DME claims and prescriptions.
In March 2019, Special Agents from DCIS and VA-OIG interviewed Dr. De Blanche about her work for telemedicine companies in 2015 and 2016, while she was practicing in Little Rock. During the interview she acknowledged working for the companies at issue but willfully misled agents about her telemedicine consultations. Dr. De Blanche reported she always evaluated patients by telephone before determining whether or not compounded prescription drugs or DME were needed. As Dr. De Blanche would later admit, however, on repeated occasions she ordered the products without first consulting patients.
U.S. Attorney Hiland stated “health care is a trillion-dollar industry. My office is committed to purging it of fraud. Serious consequences await those who hinder that task by misleading our partners in federal law enforcement.”
“The Defense Criminal Investigative Service is committed to ensuring that TRICARE, the U.S. military healthcare program, continues to provide safe and superior medical care to America’s Warfighters,” said DCIS SAC Mentavlos. “Fraudulent telemedicine schemes not only expose beneficiaries to potential harm, but also waste valuable taxpayer dollars.”
“CHAMPVA is a Department of Veterans Affairs health care benefit program for dependents of living veterans rated 100% disabled, for dependents of veterans whose death was service connected, and for dependents of veterans who were rated as 100% disabled when they died,” said VA-OIG ASAC Roche. “This guilty plea sends a clear message that there will be severe consequences for anyone who obstructs an investigation involving this important program.”
“When doctors knowingly mislead investigators who are working to uncover fraudulent activity, they violate the trust placed in them by patients, taxpayers, and the government,” said HHS-OIG SAC Bennett. “Along with our law enforcement partners, we will continue to protect the integrity of federal healthcare programs.”
“Each year, billions of dollars are lost and hundreds of lives are endangered in health care fraud schemes,” said FBI SAC Upchurch. “Dr. De Blanche willfully misled federal agents tasked with investigating one such scheme. Today’s guilty plea is the result of great work by our agents and partners at the DCIS, VA-OIG, and HHS-OIG.”
Obstructing federal health care investigations is punishable by up to five years’ imprisonment. Under the terms of her plea agreement, Dr. De Blanche agreed to forfeit over $33,000.00 in telemedicine proceeds and pay a $180,000.00 fine. She will be sentenced at a later date.
This case was investigated by DCIS, VA-OIG, HHS-OIG, and the FBI. Assistant United States Attorneys Alexander D. Morgan and Stephanie G. Mazzanti prosecuted the case for the United States.
Council Bluffs Man Sentenced to 10 Years in Prison for Gun OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - On September 24, 2020, United States District Court Senior Judge James E. Gritzner sentenced Kenneth Jay Still, age 71, of Council Bluffs, to 10 years in prison, the statutory maximum, for felon and domestic abuser in possession of a firearm, announced United States Attorney Marc Krickbaum. Still was ordered to serve three years of supervised release to follow his prison term and pay a $100 special assessment to the Crime Victims’ Fund. There is no parole in the federal system.
On October 7, 2018, Still shot and killed his 21-year-old step-son at close range with a 12- gauge shotgun. Still immediately fled the scene and disposed of the shotgun. He turned himself in to authorities the next day. Law enforcement was able to recover the shotgun several weeks later. Still pleaded guilty on June 16, 2020, in federal court to the gun charge.
This case was investigated by the Council Bluffs Police Department, Pottawattamie County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Sentenced for Unlawful Possession of Firearms and AmmunitionRead the Press Release
BOSTON – A North Brookfield man was sentenced today in federal court in Worcester for unlawfully possessing firearms and ammunition.
Seth Decoteau, 36, was sentenced by U.S. District Court Judge Timothy S. Hillman to 16 months in prison, three years of supervised release and ordered to pay restitution. In September 2019, Decoteau pleaded guilty to one count of possession of a firearm by a convicted felon and one count of possession of an unregistered firearm.
On June 8, 2018, police initially responded to a 911 call as a result of Decoteau making threats with a gun. Officers subsequently executed a search warrant at Decoteau’s North Brookfield residence and discovered a stockpile of weapons of nine guns, including two assault rifles, a ballistic vest, silencer, nine high-capacity magazines and more than 1,200 rounds of ammunition in his bedroom. Decoteau is prohibited from possessing three of the firearms found and the ammunition because of a prior felony conviction. Decoteau is also prohibited from possessing the short-barreled assault rifle and silencer because he did not follow national registration requirements.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and North Brookfield Police Chief of Police Mark Smith made the announcement. Assistant U.S. Attorneys Elysa Q. Wan of Lelling’s Criminal Division prosecuted the case.
Convicted Felon Sentenced to More Than Three Years in Federal Prison for Possessing A Firearm and AmmunitionRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II today sentenced Duvale Lamar Van Dyke (31, Ocala) to 37 months in federal prison for possession of a firearm and ammunition affecting commerce by a convicted felon. Van Dyke entered a guilty plea to the offense on June 17, 2020.
According to the plea agreement, on January 1, 2020, City of Ocala police officers stopped Van Dyke in his automobile because of an active warrant for his arrest. A search of Van Dyke’s automobile revealed a loaded firearm, a jar of marijuana, and body armor intended to protect against armor-piercing rifle rounds. Officers also located a .223 caliber rifle round in Van Dyke’s pants pocket. Van Dyke admitted that all of these items belonged to him. As a previously convicted felon, Van Dyke is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Ocala Police Department. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Chula Vista Couple Charged with Defrauding Pregnant Women and a California Medi-Cal ProgramRead the Press Release
NEWS RELEASE SUMMARY – September 24, 2020
SAN DIEGO – Melissa Alvarez Torres and Jose Luis Olmos Hernandez, a Chula Vista couple who operated what they claimed to be a private insurance sales company, made their initial appearances today in federal court on charges that they conspired to defraud hundreds of pregnant women and caused an estimated $1.6 million in losses to Medi-Cal, a government health care program.
According to a complaint unsealed this afternoon, from 2016 through the present Alvarez and Olmos conspired to defraud the Medi-Cal Access Program ("MCAP"), a health care program administered by the California Department of Health Care Services and funded by state and federal government funds. MCAP is a program designed to assist working, middle-income California families without adequate health insurance by covering maternity services and post-natal care for a low cost based on their income.
It is alleged in the complaint that Alvarez and Olmos marketed private "insurance" to pregnant Mexican nationals holding work or tourist visas. Through Facebook advertising under the name Seguros Americanos Embarazo ("American Pregnancy Insurance"), Alvarez and Olmos falsely claimed that their "insurance" product would permit these pregnant women to give birth legally in the United States, without jeopardizing their visas by using government services. They charged the pregnant women thousands of dollars apiece for the purported "insurance."
In reality, however, Alvarez and Olmos did not have private insurance to sell. Instead, they used the women’s personal identifying information to sign them up for MCAP benefits. As charged in the complaint, Alvarez and Olmos submitted hundreds of false applications and fraudulent supporting tax and employment documents to MCAP, pretending that the women were eligible for benefits when in fact they did not qualify—and did not consent to be signed up for the program. As a result, it is alleged that Alvarez and Olmos cost American taxpayers millions of dollars in health care costs on top of the hundreds of thousands in fees they collected from the women they defrauded.
Alvarez and Olmos were arrested on Wednesday morning as a result of a multiagency investigation initiated by the California Department of Health Care Services, pursuant to the Travel and Residency Enforcement Co-Op with the Social Security Administration and the United States Attorney’s Office for the Southern District of California, along with the Federal Bureau of Investigation.
"We will not tolerate criminals who try to profit and take advantage of important public health programs and vulnerable pregnant women," said U.S. Attorney Brewer. "We will continue to protect the American taxpayer and ensure the integrity of programs intended to help the needy by investigating and prosecuting those who would try to exploit them."
"We appreciate the crucial support our partners provided in this investigation to apprehend people preying on some of society’s most vulnerable members, and their assistance in protecting the integrity of the Medi-Cal program," said DHCS Director Will Lightbourne.
"Each and every day, FBI agents are working diligently to uncover fraud against the government," said FBI Special Agent in Charge Suzanne Turner. "In this case, investigators uncovered an alleged $1.6 million dollar loss from the California Medi-Cal Program as well as fraudulently obtained money from hundreds of pregnant women who thought they were purchasing legitimate insurance coverage for their health care needs. The viability of government healthcare programs depends on honest use of the programs for those in need. Therefore, the FBI remains steadfast in the important work of uncovering healthcare fraud in partnership with California’s Department of Health Care Services and other law enforcement agencies."
If you think you are a victim of Alvarez and Olmos, or purchased health insurance through Seguros Americanos Embarazo, please contact the California Department of Health Care Services at 1-800-822-6222.
DEFENDANTS Case No. 20-mj-4076
MELISSA ALVAREZ TORRES Age 33 Chula Vista, CA
aka "Melissa Torres"
aka "Melissa A. Torres"
JOSE LUIS OLMOS HERNANDEZ Age 36 Chula Vista, CA
aka "Jose Luis Hernandez"
aka "Jose L. Hernandez"
aka "Jose Carlos"
aka "Carlos Garcia"
SUMMARY OF CHARGES
Conspiracy to Commit Health Care Fraud and Wire Fraud – Title 18, U.S.C., Section 1349
Maximum penalty: 20 years in custody and a $250,000 fine, or twice the pecuniary gain or twice the pecuniary loss, whichever is greater. Restitution is mandatory.
AGENCIES
State of California’s Department of Health Care Services
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Charlotte Man Is Charged with Insider TradingRead the Press Release
CHARLOTTE, N.C. – A criminal indictment in U.S. District Court charges Eric M. Hill, 44, of Charlotte, with insider trading, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. The indictment was returned by a grand jury last week and was unsealed this morning, following Hill’s initial court appearance.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, joins U.S. Attorney Murray in making today’s announcement.
The indictment alleges that between October 13, 2015, and October 26, 2015, Hill committed insider trading based on nonpublic information pertaining to a proposed acquisition of Piedmont Natural Gas Company, Inc. (Piedmont) by Duke Energy Corporation (Duke Energy). Stealing material, nonpublic inside information allows a trader to cheat and earn substantial profits by trading before such news becomes public, earning profits by trading again once the news becomes public and impacts the price of a stock.
According to allegations in the indictment, Hill misappropriated the nonpublic information from an employee of a consulting firm that provided services to Piedmont. The indictment alleges that Hill used the confidential information to conduct a series of securities transactions prior to and after the announcement of the acquisition of Piedmont by Duke Energy. The indictment further alleges that Hill took in over $380,000 as a result of his illegal insider trading activities.
Hill is charged with fraud in connection with the purchase and sale of securities, which carries a maximum prison term of 20 years and a $5 million fine. He is also charged with seven counts of securities fraud, which carry a maximum prison term of 25 years, and a fine of $250,000, per count.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In announcing the indictment, U.S. Attorney Murray commended the FBI for their investigation of this case. In a related matter, the Securities and Exchange Commission announced a separate civil action against Hill filed with the U.S. District Court in the Western District of North Carolina.
The prosecution for the government is handled by Assistant United States Attorneys Daniel Ryan and Graham Billings, of the U.S. Attorney’s Office in Charlotte.
California Man Sentenced for Trafficking Methamphetamine in Central IllinoisRead the Press Release
ROCK ISLAND, Ill. – Chief U.S. District Judge Sara Darrow has sentenced Gustavo R. Sandoval, of California, to 17 ½ years in prison for trafficking kilogram quantities of methamphetamine and marijuana to Knox County and the Quad-Cities area in 2018. Sandoval, 32, of Fillmore, Calif., was sentenced on Sept. 22, 2020. He has remained in law enforcement custody since his arrest on related state charges in October 2018.
In July 2019, Sandoval pleaded guilty to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. Sandoval’s co-defendant, Ryan D. Mehaffy, 32, of Maquon, Ill., was also sentenced on Sept. 22, to six years in prison.
According to court documents, the government presented evidence that Sandoval organized and led Mehaffy in a drug conspiracy involving shipments of kilograms of actual methamphetamine and marijuana from California to Central Illinois. Sandoval also traveled to Central Illinois on several occasions to threaten co-conspirators, collect debts, take drug orders, and to deliver drugs.
The Quad City Metropolitan Enforcement Group and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Alyssa A. Raya and Donald B. Allegro represented the government in the prosecution.
Boston Man Charged with Fentanyl Trafficking and Cocaine ConspiracyRead the Press Release
BOSTON – A Boston man was indicted yesterday by a federal grand jury in Boston in connection with drug trafficking activities involving fentanyl and cocaine.
Jovani Santiago, 29, was indicted on one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl, and one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Santiago was previously charged by complaint and arrested on Aug. 27, 2020. He has been in federal custody since his arrest.
According to charging documents, Santiago sold approximately 500 grams of fentanyl to a cooperating witness in a Roxbury apartment on Aug. 12, 2020. Additionally, it is alleged that Santiago conspired with others to distribute cocaine in Massachusetts and New York.
The charges of distribution of and possession with intent to distribute 400 grams or more of fentanyl and conspiracy to distribute with intent to distribute five kilograms or more of cocaine carry a mandatory minimum sentence of 10 years and up to life in prison, at least four years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Special assistance was provided by the Drug Enforcement Administration, New York Field Division and the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Belchertown Man Pleads Guilty to Federal Firearm OffensesRead the Press Release
BOSTON – A former federal firearm licensee pleaded guilty yesterday in federal court in Springfield to firearms charges.
Max T. Gaj, 29, of Belchertown, pleaded guilty to receipt and possession of unregistered firearms, receipt and possession of National Firearm Act (NFA) firearms not identified by serial number, making a firearm in violation of the NFA, selling firearms in violation of state and local laws, and making false entries in, failing to make appropriate entries in, and failing to properly maintain records as required. U.S. District Court Judge Mark D. Mastroianni scheduled sentencing for Jan. 21, 2021.
Gaj, who was a federal firearms licensee and part owner of Dark Horse Gunsmithing in South Hadley, received and possessed three firearms: a machinegun, a machinegun bearing no serial number and a shotgun. The firearms were not registered to him in the National Firearms Registration and Transfer Record, as required by the NFA. Gaj also made a machinegun in violation of the NFA.
In addition, Gaj sold two firearms, a Glock Model 17 pistol and a Glock Model 43 pistol in violation of state law. Gaj also made false entries, failed to make appropriate entries and failed to properly maintained records as required of a federal firearms licensee.
The charges of receipt and possession of unregistered firearms, receipt and possession of NFA firearms not identified by serial number, and making a firearm in violation of the NFA provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of selling firearms in violation of state and local laws provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of making false entries in, failing to make appropriate entries in, and failing to properly maintain records as required provides for a sentence of up to one year in prison, one year of supervised release and a fine of up to $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Assistant U.S. Attorney Catherine G. Curley of Lelling’s Springfield Branch Office is prosecuting the case.
Appleton Man Indicted for Distributing Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on September 15, 2020, a federal grand jury returned a two-count indictment against Casey Welk (age: 23) of Appleton, Wisconsin.
According to the indictment, in December of 2019, Welk knowingly distributed pornographic images of prepubescent children. Welk is charged with two counts of distribution of child pornography, contrary to Title 18, United States Code, Section 2252A(a)(2)(A). Each count carries a mandatory minimum sentence of five years and up to 20 years of incarceration in federal prison. Welk was arraigned on September 24, 2020 before the federal district court in Green Bay, Wisconsin.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Outagamie County Sheriff’s Office and will be prosecuted by Assistant United States Attorney Alexander E. Duros.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700
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Akron Man Sentenced to Prison for Gun CrimeRead the Press Release
CHARLESTON, W.Va. – An Akron, Ohio man has been sentenced for a gun crime, according to United States Attorney Mike Stuart. Devon Alexander, 30, was sentenced to 84 months in federal prison, to be followed by three years of supervised release. Alexander was convicted by a federal jury in December 2019 of being a felon in possession of a firearm.
“Akron- again. As I’ve said before, federal gun laws are straight-forward – persons convicted of felonies, whether they be federal or state offenses, are prohibited from possessing firearms,” said United States Attorney Mike Stuart. “I applaud the work of our law enforcement partners for getting another violent felon off the streets of Charleston.”
Alexander was previously indicted on a single count of being a felon in possession of a firearm due to previous convictions for tampering with evidence and having weapons under disability in Summit County, Ohio. At trial, evidence revealed that during a search of a house in Charleston in August of 2018, police witnessed Alexander toss a Citadel 1911 semi-automatic handgun into the yard while attempting to flee.
The investigation was the result of a joint effort by the Metro Drug Enforcement Network Team (MDENT), the Drug Enforcement Administration (DEA), the Kanawha County Sheriff’s Office, and the West Virginia Department of Corrections and Rehabilitation.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Monica Coleman and former Assistant United States Attorney Stefan Hasselblad handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:18-cr-00258.
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Addiction Recovery Physician Pays $530,000 to Resolve False Claims Act Allegations of Billing for Psychotherapy Rendered by Unlicensed or Unsupervised Providers and Other Improper BillingsRead the Press Release
KNOXVILLE, Tenn. – Addiction Recovery physician Dr. Chambless Johnston and his practice, East Tennessee Recovery, have paid $530,000 to resolve several allegations that they violated the False Claims Act. The allegations include billing for individual and group psychotherapy provided by unlicensed or unsupervised providers; upcoding Evaluation and Management office visits; and providing case management services not covered in the practice’s contract or improperly rendered in a group setting. The allegations challenged billings submitted to Medicare, and to Medicaid Programs -- TennCare and Virginia Medicaid, from 2017 through 2019.
Medicare, TennCare, and Virginia Medicaid only reimburse for services rendered and billed in compliance with their respective program requirements. The programs require that providers be properly licensed and, in some circumstances, supervised to conduct group and individual psychotherapy for patients. They reimburse for Evaluation and Management office visits when the services provided are coded at a level commensurate with the complexity of the visit and the severity of the patient’s presenting problems. TennCare only reimburses for case management services allowed under applicable contracts with managed care organizations and when provided in an individual, not a group, setting. The United States, the State of Tennessee, and the Commonwealth of Virginia alleged that Dr. Johnston and East Tennessee Recovery failed to comply with these requirements.
Under the False Claims Act, any person who presents false claims for payment to the United States is liable for three times the damages the government incurs as a result of the false claims and penalties ranging from $11,665 to $23,331 per violation.
“Many people in our district and throughout the country suffer from opioid addiction. Medicare covers important addiction recovery services,” said U.S. Attorney J. Douglas Overbey. “This settlement helps ensure that mandatory requirements for coverage and payment by government health care programs are appropriately followed.”
“With the need for addiction treatment services so great, our government health programs cannot afford to have these desperately needed funds used improperly,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “With our state and federal partners, we will relentlessly pursue those who misuse funds intended for these vital programs.”
“Defrauding our healthcare systems like Medicaid and Medicare waste millions of taxpayer dollars and individuals who do so must be held accountable,” said Virginia Attorney General Mark Herring. “I want to thank our local, state, and federal partners for their help in this case and I want to thank my Medicaid Fraud Control Unit for all of their hard work.”
This investigation was a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Tennessee; the Tennessee Attorney General’s Office; the Virginia Attorney General’s Office; the U.S. Department of Health and Human Services, Office of Inspector General; and the Tennessee Bureau of Investigation, Medicaid Fraud Control Division. It was prompted by a lawsuit filed by a former nurse practitioner at the practice, under the qui tam or “whistleblower” provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The relators share of the recovery in this case is $95,400.
The case is captioned United States, the State of Tennessee and the Commonwealth of Virginia ex rel. Jennifer Stuart Miller v. East Tennessee Recovery, PLLC, Chambless Rand Johnston, and Emmalea Johnston, Case No. 2:18cv171 (E.D. Tenn.).
L. Margaret Harker and Robert C. McConkey, Assistant United States Attorneys, represented the United States.
The claims settled by this agreement are allegations only; there has been no determination of liability.
###110 Gang Member Sentenced to 32 Years in PrisonRead the Press Release
SYRACUSE, NEW YORK - Anthony Hopper, age 33, of Syracuse, was sentenced today to serve 385 months (32 years and one month) in federal prison for violating the Racketeering Influenced Corrupt Organizations Act (RICO), announced Acting United States Attorney Antoinette T. Bacon, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Syracuse Police Chief Kenton Buckner. Senior United States District Judge Frederick J. Scullin, Jr., also ordered Hopper to serve a five (5) year term of supervised release following his term of incarceration.
Hopper was convicted in October 2019, following an eight-day trial. The RICO conviction included a finding by the trial jury that that Hopper was guilty of a murder. In imposing sentence today, the Court also found, by a preponderance of the evidence, that Hopper was responsible for a second murder. The other 13 men charged in the same indictment with Hopper have all pled guilty. Six have been sentenced to date.
During the trial, jurors heard testimony from members of the 110 Gang and others about the gang’s robberies, drug trafficking, and illegal possession of firearms. They also heard from witnesses who described how the 110 Gang retaliated against other Syracuse gangs for shootings and murders.
“Anthony Hopper led the 110 Gang through murders, shootings, robberies, assaults, intimidation, and drug dealing,” said Acting U.S. Attorney Antoinette T. Bacon. “Thanks to hundreds of hours of work by state, federal, and local law enforcement officers, Hopper has now been held accountable for his brutal actions and removed from the streets of Syracuse. Our resolve to make our community safe will never waver, and we will not rest until we finish our work”
"Anthony Hopper was a dangerously evil leader of the violent 110 Gang that wreaked havoc on Syracuse communities, causing residents to live in fear for far too long," said Thomas F. Relford, Special Agent in Charge of the Federal Bureau of Investigation's (FBI) Albany Field Office. "Today's sentence is indicative of the success that can be attained when federal, state, and local law enforcement agencies combine resources to remove violent organizations that threaten the safety and stability of our neighborhoods."
Syracuse Police Chief Kenton Buckner said, "The city of Syracuse and the Syracuse Police Department are appreciative of our relationship with the FBI. The sentencing in this case highlights the tireless efforts of law enforcement and federal prosecutors to apprehend individuals responsible for gang activity in our community. We will continue to do everything within our power to protect the citizens living in our city."
Previously sentenced 110 Gang RICO defendants:
- Damani Prince was sentenced to 78 months in prison; 3-year term of supervised release
- Rashawn Wynn was sentenced to 92 months in prison; 3-year term of supervised release
- Davon Sullivan was sentenced to 68 months in prison; 3-year term of supervised release
- Qualik Vaughn was sentenced to 68 months in prison; 3-year term of supervised release
- Jason Lebron was sentenced to 92 months in prison; 3-year term of supervised release
- Javon Peterson was sentenced to 98 months in prison, 3-year term of supervised release.
This case was investigated by the Federal Bureau of Investigation (FBI), the Syracuse Police Department, and the Gang Violence Task Force, which consists of members of the Syracuse Police, the FBI, the U.S. Drug Enforcement Administration (DEA), the U.S. Marshals Service, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New York State Police, the New York State Department of Corrections, the New York State Attorney General, and the Onondaga County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Kristen Grabowski
This case was brought as part of Project Safe Neighborhoods (PSN), 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.
Thursday 24 September 2020
Woman Who Helped a Man Get Dose of Heroin and Fentanyl that Caused His Death Sentenced to Federal PrisonRead the Press Release
A woman who helped a man obtain a fatal quantity of opioids and then delayed calling for help after he overdosed was sentenced on September 16, 2020, to four years in federal prison.
Jacqueline Margarett Birch, age 23, from Dubuque, Iowa, received the prison term after a May 7, 2020 guilty plea to aiding and abetting the distribution of a controlled substance.
Evidence at a prior hearing showed that Birch drove her boyfriend, Mateusz Syryjczyk, and another individual to a residence in Dubuque, Iowa, during the early morning of May 27, 2019. Birch and the other individual went into the residence, and returned a short time later with purported heroin they had purchased from a dealer inside the residence. The three then drove to a hotel in Dubuque, where they all used the purported heroin. The other individual began to overdose in the room. Birch and Syryjczyk did not immediately call 911, but, over the course of multiple hours, Birch occasionally performed CPR on the individual to restore some breathing function, though the person never regained consciousness. Court records reflect that Birch also occasionally kicked the individual when he stopped breathing. Eventually, Birch and Syryjczyk decided they needed to call 911, and Syryjczyk took the remaining drug paraphernalia from the room to prevent law enforcement from finding it. Birch and Syryjczyk also made false statements to the responding police officers about the cause of the individual’s condition. That individual was pronounced dead at the scene. An autopsy later determined the cause of death was use of heroin, fentanyl, and valeryl fentanyl. Syryjczyk previously pled guilty to misprision of a felony for his role in the incident, and was sentenced to 21 months in prison. Court documents also reflect that Birch had previously cleaned up an overdose death scene and lied to the police about it in Peosta, Iowa, in 2016.
Birch was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Birch was sentenced to 48 months’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Birch is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was investigated by the Dubuque Drug Task Force and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1041-CJW-MAR.
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West Michigan Drug Ring DismantledRead the Press Release
Final dealer convicted by a jury after three days of trial.
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that a 15-member drug trafficking operation has been dismantled following the conviction of the final defendant involved in the organization. On September 23, 2020, a jury in Kalamazoo convicted Luis Ayala-Vieyra of conspiring to distribute cocaine and two counts of distribution of cocaine after a three day trial. He faces up to twenty years in prison and will be sentenced by U.S. District Court Judge Paul L. Maloney in the next three to four months.
Luis Ayala-Vieyra was arrested in Grand Rapids in August 2019 during the takedown of the cocaine ring. His arrest followed a long term investigation into a group of drug dealers in the Grand Rapids area. Fourteen other defendants previously pleaded guilty.
The evidence at trial demonstrated that Luis Ayala-Vieyra and his brother, Inocencio Ayala-Vieyra, bought cocaine from a source of supply in Chicago, Illinois. They broke down the cocaine and distributed it to a network of retail dealers in the Grand Rapids area.
“Yesterday’s verdict is the culmination of the hard work of the Drug Enforcement Administration, local law enforcement, and the U.S. Attorney’s Office,” said U.S. Attorney Birge. “My office is committed to disrupting drug sales and dismantling drug trafficking organizations to keep Michigan communities safe.”
“This verdict is a clear indication of the progress made by DEA and our state and local partners in the fight against drug trafficking,” said Keith Martin, Special Agent in Charge of the Detroit Field Division of the DEA. “We will continue to employ our combined resources to investigate and bring to justice those who disregard laws and distribute illicit drugs in Western Michigan communities.”
This case was investigated by the DEA, Kent Area Narcotics Enforcement Team, Metropolitan Enforcement Team, Grand Rapids Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was tried by Assistant U.S. Attorneys Jonathan Roth and Alexis Sanford.
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U.S. Attorney Mike Stuart Announces Results in Fight Against the Opioid Crisis Two Years After the Launch of Operation S.O.S.Read the Press Release
Cabell County Opioid-Related Overdose Deaths Decline by 52%
CHARLESTON, W.Va. – In July 2018, the Department of Justice announced the launch of Operation Synthetic Opioid Surge (S.O.S), a program aimed at reducing the supply of synthetic opioids in 10 high impact areas, including the Southern District of West Virginia, and identifying wholesale distribution networks and international and domestic suppliers. Under Operation S.O.S., the United States Attorneys in 10 districts with some of the highest drug overdose death rates in the country each designated a county where they would focus on prosecuting every readily available case involving fentanyl, fentanyl analogues, and other synthetic opioids, regardless of the drug quantity.
“The Justice Department’s commitment to fighting the opioids epidemic is stronger than ever, and we are using every tool in our arsenal to disrupt the supply of these drugs on our streets,” said Deputy Attorney General Jeffrey A. Rosen. “Operation SOS has had a significant positive impact on the communities where it is being employed. The Department will continue to build on these successes and work to stop the drug traffickers who so callously wreck lives.”
“Operation S.O.S. is saving lives,” said United States Attorney Mike Stuart. “We have made great strides in the fight against the opioid epidemic that once ravaged Cabell County. Through prosecution of fentanyl dealers, combined with efforts in prevention, intervention and treatment, a 52% reduction in opioid-related overdose deaths has been realized in the County from 2017 to 2019. I appreciate the support of the Attorney General, the Deputy Attorney General and the Justice Department in this most important operation.”
Operation S.O.S. has had a significant positive impact in Cabell County. In calendar year 2017, there were 184 opioid-related overdose deaths in the County, compared to 88 opioid-related overdose deaths in 2019 – a 52% reduction. Recent successful prosecutions include:
- A federal jury convicted Steven McCallister of distribution of fentanyl, possession with the intent to distribute fentanyl, being a felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking. Officers conducted a 50-gram purchase of heroin from McCallister, which then led to the execution of a search warrant at McCallister’s home. Officers seized over one kilogram of fentanyl and a firearm.
- Jason Chinn pled guilty to possession with intent to distribute heroin after officers seized 370 grams from his home. He also sold 45 grams of heroin to a confidential informant. As part of his plea agreement, Chinn agreed that he was responsible for the distribution of up to 3 kilograms of the drug. This week, Chinn was sentenced to 100 months in federal prison.
Nationally, since 2018, Operation SOS has resulted in approximately 750 defendants being charged in federal court, with 384 of those defendants charged thus far in FY 20. Most importantly, the districts participating in the program have seen a decline in opioid overdoses. From 2017 to 2019, most SOS counties reported a decline of 14% to 24%. One notable success was in the Western District of Pennsylvania, where the opioid overdose rates declined by nearly 45%.
The nine other participating districts and some of their successes are listed below:
- The Eastern District of California has reported 60 active Operation S.O.S. investigations. Recently, the USAO charged one sentence-enhanced “death resulting” prosecution. In February 2020, another investigation resulted in the seizure of over 20,000 fentanyl-laced counterfeit oxycodone pills.
- The Eastern District of Kentucky reported that an SOS investigation led to a residential search warrant and seizure of more than 1,300 grams of fentanyl, more than 500 grams of methamphetamine, $15,000 cash, two firearms, and paraphernalia used to traffic narcotics including a device for pressing fentanyl into a brick-like shape
- The District of Maine reported a July 2020 arrest of a defendant on charges of distributing counterfeit fentanyl pills marked as Percocet, in connection with a fatal fentanyl overdose that occurred in May 2020. In addition, a Maine man was sentenced in February 2020 to five years in prison for two counts of possession with intent to distribute fentanyl, in connection with an incident where the defendant was found in possession of fentanyl less than 24 hours after he was released on a state summons for possession of fentanyl.
- The District of New Hampshire reported the October 2019 arrest of a man on a warrant for distributing fentanyl. Manchester Police Detectives executed a search warrant on a local drug-house, where they located approximately 850 grams of methamphetamine and 56 grams of fentanyl, several assault-style rifles, a handgun, ammunition, scales, safes, cash, and cellphones.
- The Northern District of Ohio reported a 10-defendant wire case involving a drug trafficking organization (DTO) operating out of Elyria and Sandusky, Ohio. The DTO purchased kilogram quantities of cocaine and oxycodone pills. Co-conspirators would later cook the cocaine and sell it as crack to local dealers in Elyria. During the conspiracy, agents seized approximately ½ kilo of cocaine, 100 grams of crack, oxycodone pills, and five firearms.
- The Southern District of Ohio reported the arrest of an individual who had previously served a nine-year state prison sentence for drug trafficking. On October 22, 2019, after law enforcement observed activity consistent with drug transactions, including the delivery of what appeared to be a kilogram of narcotics by a courier, members of the FBI Safe Streets Task Force executed a search warrant at a residence in Dayton, Ohio, where they located three firearms, 1,205 grams of methamphetamine, 1,716 grams of fentanyl, 305 grams of heroin, drug processing equipment, and 12 cellular telephones. One of the recovered cellular telephones contained photographs of multiple kilograms of fentanyl and communications with a narcotics supplier. Through subsequent investigation, law enforcement recovered an additional 19.5 kilograms of fentanyl/carfentanil.
- The Western District of Pennsylvania prosecuted 98 SOS cases thus far in FY 2020. Particularly noteworthy among them is the prosecution of Lynell Guyton. Guyton was convicted by a jury of conspiracy to distribute 100 grams or more of cyclopropyl fentanyl and other charges, including firearms and money laundering violations. Guyton, who had been receiving shipments of fentanyl analogues from China, is both a Career Offender and an Armed Career Criminal. The case gained media attention when, during the execution of a search warrant in connection with the charges, the conspirators tipped over a table, sending cyclopropyl fentanyl into the air, sickening several law enforcement officers on the scene.
- The Eastern District of Tennessee reported multiple cases arising out of a single investigation involving a drug trafficking organization responsible for trafficking heroin and fentanyl from Michigan to various communities in the Eastern District of Tennessee. 29 defendants have been indicted on various charges, including drug trafficking conspiracy, overdose death enhancements, money-laundering conspiracy, and various firearms offenses. More than 5.5 kilograms of heroin and/or fentanyl and 11 firearms were seized during the investigation.
- The Northern District of West Virginia reported a July 21, 2020, forty-four count indictment against 12 defendants. During the nearly yearlong investigation, law enforcement officers seized more than 280 grams of cocaine base and more than 40 grams of fentanyl from one of the defendant’s residences in Harpers Ferry, West Virginia. Throughout the investigation, officers seized more than 280 grams of fentanyl, acetyl fentanyl, and heroin; more than 350 grams of cocaine base; more than one kilogram of liquid PCP; various amounts of cocaine; five firearms; and over $28,000.
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.
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U.S. Attorney Justin Herdman announces update on fight against the opioid crisis in Lorain County two years after launch of Operation S.O.S.Read the Press Release
In July 2018, the Department of Justice announced the launch of Operation Synthetic Opioid Surge (S.O.S), a program aimed at reducing the supply of synthetic opioids in 10 high impact areas, including Lorain County in the Northern District of Ohio, and identifying wholesale distribution networks and international and domestic suppliers.
Two years ago, under Operation S.O.S, the United States Attorneys in 10 districts with some of the highest drug overdose death rates in the country each designated a county where they would focus on prosecuting every readily available case involving fentanyl, fentanyl analogues, and other synthetic opioids, regardless of the drug quantity.
Over these two years, Operation S.O.S has resulted in approximately 750 defendants charged in federal court, with 384 of those defendants charged thus far in F.Y. 20. Most importantly, the districts participating in the program have seen a decline in opioid overdoses. From 2017 to 2019, most S.O.S counties reported a decline of 14% to 24%.
“The Justice Department’s commitment to fighting the opioids epidemic is stronger than ever, and we are using every tool in our arsenal to disrupt the supply of these drugs on our streets,” said Deputy Attorney General Jeffrey A. Rosen. “Operation S.O.S has had a significant positive impact on the communities where it is being employed. The Department will continue to build on these successes and work to stop the drug traffickers who so callously wreck lives.”
Since the launch of the operation in Northern Ohio, the U.S. Attorney’s Office has prosecuted 121 defendants from Lorain County for their involvement in the distribution of opioids. Approximately 22-percent of these defendants possessed a firearm when they committed their federal offense and about 23-percent of these defendants are classified as “career offenders”, in that they have two or more prior convictions for either drug trafficking or violent offense convictions. The average sentence for an S.O.S. defendant in the Northern District has been 70.4 months.
In Lorain County, opioid overdose deaths have decreased by 31% from 2017 to 2019.
“Drug dealers and other criminals have long targeted Lorain County as an area to exploit and sell their deadly product,” said U.S. Attorney Justin Herdman. “Since 2018, as part of Operation S.O.S, we have committed to assisting our state and local partners by federally prosecuting any fentanyl or opioid trafficking offense from Lorain County. These numbers should send a strong message – if you deal dope in Lorain County, you will face federal prosecution.”
Notably, in the Northern District as part of Operation S.O.S.:
- In July 2020, ten individuals were arrested and charged in a conspiracy to sell crack cocaine, cocaine and a mixture and substance containing a detectable amount of oxycodone throughout the Elyria area. Read more here.
- A “career offender” in Elyria was sentenced to more than 14 years in prison for drug trafficking. Read more here.
- In June of 2019, fifteen people indicted for their roles in a conspiracy to traffic fentanyl, heroin and crack cocaine in Lorain. Read more here.
U.S. Attorney J. Douglas Overbey Announces Results in Fight Against the Opioid Crisis Two Years After Launch of Operation S.O.S.Read the Press Release
In Knox County, Tennessee, one S.O.S. investigation resulted in the indictment of 29 defendants in a drug trafficking conspiracy involving the seizure of over 5.5 kilograms of heroin and fentanyl and 11 firearms.
KNOXVILLE, Tenn. – In July 2018, the Department of Justice announced the launch of Operation Synthetic Opioid Surge (S.O.S), a program aimed at reducing the supply of synthetic opioids in 10 high impact areas, including the Eastern District of Tennessee, and identifying wholesale distribution networks and international and domestic suppliers.
Under Operation SOS, the United States Attorneys in 10 districts with some of the highest drug overdose death rates in the country each designated a county where they would focus on prosecuting every readily available case involving fentanyl, fentanyl analogues, and other synthetic opioids, regardless of the drug quantity.
“The Justice Department’s commitment to fighting the opioids epidemic is stronger than ever, and we are using every tool in our arsenal to disrupt the supply of these drugs on our streets,” said Deputy Attorney General Jeffrey A. Rosen. “Operation SOS has had a significant positive impact on the communities where it is being employed. The Department will continue to build on these successes and work to stop the drug traffickers who so callously wreck lives.”
“The mortality rate for opioid related deaths continues to grow. This epidemic destroys families and communities and shatters far too many lives. Law enforcement remains dedicated to disrupting the networks engaging in the trafficking of these synthetic drugs. It requires collaboration and the promotion of effective prevention strategies to meet the challenges posed by illicit opioids. These cases serve as a reminder to those who seek to disrupt and harm our communities by perpetuating opioid abuse will be brought to justice,” said U.S. Attorney Overbey.
In the Eastern District of Tennessee, the United States Attorney’s Office is currently prosecuting 74 S.O.S. defendants and 10 overdose deaths, including multiple cases arising out of a single investigation involving a drug trafficking organization responsible for trafficking heroin and fentanyl from Michigan to various communities in the Eastern District of Tennessee. 29 defendants have been indicted on various charges, including drug trafficking conspiracy, overdose death enhancements, money-laundering conspiracy, and various firearms offenses. More than 5.5 kilograms of heroin and/or fentanyl and 11 firearms were seized during the investigation.
Nationally, since 2018, Operation SOS has resulted in approximately 750 defendants being charged in federal court, with 384 of those defendants charged thus far in FY 20. Most importantly, the districts participating in the program have seen a decline in opioid overdoses. From 2017 to 2019, most SOS counties reported a decline of 14% to 24%. One notable success was in the Western District of Pennsylvania, where the opioid overdose rates declined by nearly 45%.
The nine other participating districts and some of their successes are listed below:
- The Eastern District of California has reported 60 active Operation S.O.S. investigations. Recently, the USAO charged one sentence-enhanced “death resulting” prosecution. In February 2020, another investigation resulted in the seizure of over 20,000 fentanyl-laced counterfeit oxycodone pills.
- The Eastern District of Kentucky reported that an SOS investigation led to a residential search warrant and seizure of more than 1,300 grams of fentanyl, more than 500 grams of methamphetamine, $15,000 cash, two firearms, and paraphernalia used to traffic narcotics including a device for pressing fentanyl into a brick-like shape.
- The District of Maine reported a July 2020 arrest of a defendant on charges of distributing counterfeit fentanyl pills marked as Percocet, in connection with a fatal fentanyl overdose that occurred in May 2020. In addition, a Maine man was sentenced in February 2020 to five years in prison for two counts of possession with intent to distribute fentanyl, in connection with an incident where the defendant was found in possession of fentanyl less than 24 hours after he was released on a state summons for possession of fentanyl.
- The District of New Hampshire reported the October 2019 arrest of a man on a warrant for distributing fentanyl. Manchester Police Detectives executed a search warrant on a local drug-house, where they located approximately 850 grams of methamphetamine and 56 grams of fentanyl, several assault-style rifles, a handgun, ammunition, scales, safes, cash, and cellphones.
- The Northern District of Ohio reported a 10-defendant wire case involving a drug trafficking organization (DTO) operating out of Elyria and Sandusky, Ohio. The DTO purchased kilogram quantities of cocaine and oxycodone pills. Co-conspirators would later cook the cocaine and sell it as crack to local dealers in Elyria. During the conspiracy, agents seized approximately ½ kilo of cocaine, 100 grams of crack, oxycodone pills, and five firearms.
- The Southern District of Ohio reported the arrest of an individual who had previously served a nine-year state prison sentence for drug trafficking. On October 22, 2019, after law enforcement observed activity consistent with drug transactions, including the delivery of what appeared to be a kilogram of narcotics by a courier, members of the FBI Safe Streets Task Force executed a search warrant at a residence in Dayton, Ohio, where they located three firearms, 1,205 grams of methamphetamine, 1,716 grams of fentanyl, 305 grams of heroin, drug processing equipment, and 12 cellular telephones. One of the recovered cellular telephones contained photographs of multiple kilograms of fentanyl and communications with a narcotics supplier. Through subsequent investigation, law enforcement recovered an additional 19.5 kilograms of fentanyl/carfentanil.
- The Western District of Pennsylvania prosecuted 98 SOS cases thus far in FY 2020. Particularly noteworthy among them is the prosecution of Lynell Guyton. Guyton was convicted by a jury of conspiracy to distribute 100 grams or more of cyclopropyl fentanyl and other charges, including firearms and money laundering violations. Guyton, who had been receiving shipments of fentanyl analogues from China, is both a Career Offender and an Armed Career Criminal. The case gained media attention when, during the execution of a search warrant in connection with the charges, the conspirators tipped over a table, sending cyclopropyl fentanyl into the air, sickening several law enforcement officers on the scene.
- The Northern District of West Virginia reported a July 21, 2020, forty-four count indictment against 12 defendants. During the nearly yearlong investigation, law enforcement officers seized more than 280 grams of cocaine base and more than 40 grams of fentanyl from one of the defendant’s residences in Harpers Ferry, West Virginia. Throughout the investigation, officers seized more than 280 grams of fentanyl, acetyl fentanyl, and heroin; more than 350 grams of cocaine base; more than one kilogram of liquid PCP; various amounts of cocaine; five firearms; and over $28,000.
- The Southern District of West Virginia reported that after a three-day trial, a jury in the convicted Steven McCallister of distribution of fentanyl, possession intending to distribute fentanyl, being a felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking. Officers conducted a 50-gram purchase of heroin from McCallister, which then led to the execution of a search warrant at McCallister’s home. Officers seized over one kilogram of fentanyl and a firearm.
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U.S. Attorney J. Douglas Overbey Announces $150,000 in Department of Justice Grant Award to the County of FranklinRead the Press Release
KNOXVILLE, Tenn. – United States Attorney J. Douglas Overbey of the Eastern District of Tennessee announced today that $150,000 was awarded in Department of Justice grant to address reducing injury and death of missing individuals with dementia and developmental disabilities in the County of Franklin, Tennessee.
The Reducing Injury and Death of Missing Individuals with Dementia and Developmental Disabilities program supports local jurisdictions’ efforts to reduce the number of deaths and injuries of individuals with forms of dementia, such as Alzheimer’s disease or developmental disabilities, such as autism who, due to their condition, wander from safe environments.
“At most stages of dementia, a person can become disoriented or confused of where they are. Dementia impairs judgment and problem-solving skills, and many caregivers struggle to manage how to best care for their loved ones. This funding will help provide much needed search tools to help agencies to locate vulnerable individuals who have wandered away from their communities,” said U.S. Attorney Overbey.
Kevin and Avonte’s Law, enacted in 2018, authorized BJA to support local efforts to address this public safety challenge by providing grants to health care agencies, law enforcement, and other public safety agencies, and, additionally for Category 1, nonprofit organizations that (1) implement locative technologies to track missing individuals, and/or (2) develop or operate programs to prevent wandering, increase individuals’ safety, and facilitate rescue.
The Partnership for Franklin County Prevention Coalition and its collaborative partners, the Department of Mental Health and Substance Abuse Services, Coffee County Circuit Courts; Coffee County District Attorney’s Office; Manchester Police Department; Franklin County Senior Citizen Center; and Franklin County Sheriff’s Office; and the Legal Aid of East Tennessee – Erlanger Health Law Partnership, will use this grant to fund law enforcement and public safety agencies to implement locative technologies to track missing individuals; and to such agencies and partnering nonprofit organizations to develop or operate programs to prevent wandering, increase individuals’ safety, and facilitate rescues.
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U.S. Attorney Duncan Announces Results in Fight Against the Opioid Crisis Two Years After Launch of Operation S.O.S.Read the Press Release
LEXINGTON, KY- In July 2018, the Department of Justice announced the launch of Operation Synthetic Opioid Surge (S.O.S), a program aimed at reducing the supply of synthetic opioids in 10 high impact areas, including the Eastern District of Kentucky, and identifying wholesale distribution networks and international and domestic suppliers.
Under Operation SOS, the United States Attorneys in 10 districts with some of the highest drug overdose death rates in the country each designated a county where they would focus on prosecuting every readily available case involving fentanyl, fentanyl analogues, and other synthetic opioids, regardless of the drug quantity.
“The Justice Department’s commitment to fighting the opioids epidemic is stronger than ever, and we are using every tool in our arsenal to disrupt the supply of these drugs on our streets,” said Deputy Attorney General Jeffrey A. Rosen. “Operation SOS has had a significant positive impact on the communities where it is being employed. The Department will continue to build on these successes and work to stop the drug traffickers who so callously wreck lives.”
“Operation SOS has helped us remove deadly fentanyl from Fayette County, almost certainly saving lives,” said U.S. Attorney Robert M. Duncan, Jr. “Yet, even with the progress made that has been made, we still recognize there is still more work to be done. Along with our federal, state, and local law enforcement partners, we remain committed to devoting all available tools to combat the drug crisis, including our focus on aggressively pursuing charges against fentanyl traffickers, conducting community outreach and education, and encouraging those who need help to seek treatment.”
According to the 2019 Overdose Fatality Report, released by the Kentucky Office of Drug Control Policy, five counties in the Eastern District of Kentucky had the highest OD death rate per capita in the Commonwealth. Opioids, including fentanyl and fentanyl analogues, accounted for the largest number of deaths. The largest decrease of overdose deaths occurred in Fayette County, where Operation SOS has been employed. Fayette County had 22 fewer Kentucky resident fatalities in 2019 compared to 2018.
Nationally, since 2018, Operation SOS has resulted in approximately 750 defendants being charged in federal court, with 384 of those defendants charged thus far in FY 20. Most importantly, the districts participating in the program have seen a decline in opioid overdoses. From 2017 to 2019, most SOS counties reported a decline of 14 percent to 24 percent. One notable success was in the Western District of Pennsylvania, where the opioid overdose rates declined by nearly 45 percent.
- The Eastern District of California has reported 60 active Operation S.O.S. investigations. Recently, the USAO charged one sentence-enhanced “death resulting” prosecution. In February 2020, another investigation resulted in the seizure of over 20,000 fentanyl-laced counterfeit oxycodone pills.
- The District of Maine reported a July 2020 arrest of a defendant on charges of distributing counterfeit fentanyl pills marked as Percocet, in connection with a fatal fentanyl overdose that occurred in May 2020. In addition, a Maine man was sentenced in February 2020 to five years in prison for two counts of possession with intent to distribute fentanyl, in connection with an incident where the defendant was found in possession of fentanyl less than 24 hours after he was released on a state summons for possession of fentanyl.
- The District of New Hampshire reported the October 2019 arrest of a man on a warrant for distributing fentanyl. Manchester Police Detectives executed a search warrant on a local drug-house, where they located approximately 850 grams of methamphetamine and 56 grams of fentanyl, several assault-style rifles, a handgun, ammunition, scales, safes, cash, and cellphones.
- The Northern District of Ohio reported a 10-defendant wire case involving a drug trafficking organization (DTO) operating out of Elyria and Sandusky, Ohio. The DTO purchased kilogram quantities of cocaine and oxycodone pills. Co-conspirators would later cook the cocaine and sell it as crack to local dealers in Elyria. During the conspiracy, agents seized approximately ½ kilo of cocaine, 100 grams of crack, oxycodone pills, and five firearms.
- The Southern District of Ohio reported the arrest of an individual who had previously served a nine-year state prison sentence for drug trafficking. On October 22, 2019, after law enforcement observed activity consistent with drug transactions, including the delivery of what appeared to be a kilogram of narcotics by a courier, members of the FBI Safe Streets Task Force executed a search warrant at a residence in Dayton, Ohio, where they located three firearms, 1,205 grams of methamphetamine, 1,716 grams of fentanyl, 305 grams of heroin, drug processing equipment, and 12 cellular telephones. One of the recovered cellular telephones contained photographs of multiple kilograms of fentanyl and communications with a narcotics supplier. Through subsequent investigation, law enforcement recovered an additional 19.5 kilograms of fentanyl/carfentanil.
- The Western District of Pennsylvania prosecuted 98 SOS cases thus far in FY 2020. Particularly noteworthy among them is the prosecution of Lynell Guyton. Guyton was convicted by a jury of conspiracy to distribute 100 grams or more of cyclopropyl fentanyl and other charges, including firearms and money laundering violations. Guyton, who had been receiving shipments of fentanyl analogues from China, is both a Career Offender and an Armed Career Criminal. The case gained media attention when, during the execution of a search warrant in connection with the charges, the conspirators tipped over a table, sending cyclopropyl fentanyl into the air, sickening several law enforcement officers on the scene.
- The Eastern District of Tennessee reported multiple cases arising out of a single investigation involving a drug trafficking organization responsible for trafficking heroin and fentanyl from Michigan to various communities in the Eastern District of Tennessee. 29 defendants have been indicted on various charges, including drug trafficking conspiracy, overdose death enhancements, money-laundering conspiracy, and various firearms offenses. More than 5.5 kilograms of heroin and/or fentanyl and 11 firearms were seized during the investigation.
- The Northern District of West Virginia reported a July 21, 2020, forty-four count indictment against 12 defendants. During the nearly yearlong investigation, law enforcement officers seized more than 280 grams of cocaine base and more than 40 grams of fentanyl from one of the defendant’s residences in Harpers Ferry, West Virginia. Throughout the investigation, officers seized more than 280 grams of fentanyl, acetyl fentanyl, and heroin; more than 350 grams of cocaine base; more than one kilogram of liquid PCP; various amounts of cocaine; five firearms; and over $28,000.
- The Southern District of West Virginia reported that after a three-day trial, a jury in the convicted Steven McCallister of distribution of fentanyl, possession with the intent to distribute fentanyl, being a felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking. Officers conducted a 50-gram purchase of heroin from McCallister, which then led to the execution of a search warrant at McCallister’s home. Officers seized over one kilogram of fentanyl and a firearm.
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U.S. Attorney DeVillers announces results in fight against opioid crisis 2 years after launch of operation S.O.S.Read the Press Release
DAYTON – In July 2018, the Department of Justice announced the launch of Operation Synthetic Opioid Surge (S.O.S), a program aimed at reducing the supply of synthetic opioids in 10 high impact areas, including the Southern District of Ohio, and identifying wholesale distribution networks and international and domestic suppliers.
Under Operation SOS, the United States Attorneys in 10 districts with some of the highest drug overdose death rates in the country each designated a county where they would focus on prosecuting every readily available case involving fentanyl, fentanyl analogues, and other synthetic opioids, regardless of the drug quantity.
“The Justice Department’s commitment to fighting the opioids epidemic is stronger than ever, and we are using every tool in our arsenal to disrupt the supply of these drugs on our streets,” said Deputy Attorney General Jeffrey A. Rosen. “Operation SOS has had a significant positive impact on the communities where it is being employed. The Department will continue to build on these successes and work to stop the drug traffickers who so callously wreck lives.”
In Dayton, 106 defendants have been charged in federal court since the initiative started, including approximately 50 defendants charged in FY2020.
One Dayton case – U.S. v. Marco Villa et al. – involved the lead defendant arranging for bulk amounts of fentanyl to be shipped from Mexico to his grandmother’s house in Dayton where it was picked up and kept at various places around the city. When federal agents questioned him on June 26, 2019, they seized 483 grams of fentanyl at his house. The defendant intended to accept another 256 grams that day.
Villa was sentenced on Sept. 9 to 150 months in prison.
U.S. v. Anthony Franklin, et al. involves an individual who had previously served a nine-year state prison sentence for drug trafficking. On Oct. 22, 2019, after law enforcement observed activity consistent with drug transactions, including the delivery of what appeared to be a kilogram of narcotics by a courier, members of the FBI Safe Streets Task Force executed a search warrant at a residence in Dayton, where they located three firearms, 1,205 grams of methamphetamine, 1,716 grams of fentanyl, 305 grams of heroin, drug processing equipment and 12 cell phones.
One of the recovered cell phones contained photographs of multiple kilograms of fentanyl and communications with a narcotics supplier. Through subsequent investigation, law enforcement recovered an additional 19.5 kilograms of fentanyl/carfentanil.
Another case involved defendant Robert Cartwright. On Oct. 9, 2019, members of the Dayton -based Regional Agencies Narcotics and Gun Enforcement Task Force (RANGE), working in conjunction with DEA Ft. Wayne, watched an Indiana-based distributor of heroin/fentanyl purchase approximately 100 grams of fentanyl from Cartwright in Dayton. On Oct. 17, 2019, RANGE executed a search warrant at Cartwright’s residence, and located 673.73 grams of fentanyl, a Glock 19, a Bushmaster AR-15 rifle, $42,424 in cash, and drug processing equipment, including a hydraulic press and press parts, and five digital scales.
Cartwright has pleaded guilty and is currently awaiting sentencing.
“Street drug dealers often mix or ‘cut’ their dope with fentanyl, a drug 50 times more powerful than pure heroin and so potent that a few grains the size of salt can kill a person,” said U.S. Attorney David M. DeVillers. “More than 230 people in Montgomery County have died from accidental illegal drug overdoses so far this year and statistically, it’s likely that many of the deaths can be tied to fentanyl.”
U.S. Attorney DeVillers commended the Assistant United States Attorneys and supporting staff of the Dayton U.S. Attorney’s Office for their efforts in prosecuting more than 100 fentanyl cases over the past two years.
Nationally, since 2018, Operation SOS has resulted in approximately 750 defendants being charged in federal court, with 384 of those defendants charged thus far in FY 20. Most importantly, the districts participating in the program have seen a decline in opioid overdoses. From 2017 to 2019, most SOS counties reported a decline of 14% to 24%. One notable success was in the Western District of Pennsylvania, where the opioid overdose rates declined by nearly 45%.
The nine other participating districts and some of their successes include:
- The Eastern District of California has reported 60 active Operation S.O.S. investigations. Recently, the USAO charged one sentence-enhanced “death resulting” prosecution. In February 2020, another investigation resulted in the seizure of over 20,000 fentanyl-laced counterfeit oxycodone pills.
- The Eastern District of Kentucky reported that an SOS investigation led to a residential search warrant and seizure of more than 1,300 grams of fentanyl, more than 500 grams of methamphetamine, $15,000 cash, two firearms, and paraphernalia used to traffic narcotics including a device for pressing fentanyl into a brick-like shape
- The District of Maine reported a July 2020 arrest of a defendant on charges of distributing counterfeit fentanyl pills marked as Percocet, in connection with a fatal fentanyl overdose that occurred in May 2020. In addition, a Maine man was sentenced in February 2020 to five years in prison for two counts of possession with intent to distribute fentanyl, in connection with an incident where the defendant was found in possession of fentanyl less than 24 hours after he was released on a state summons for possession of fentanyl.
- The District of New Hampshire reported the October 2019 arrest of a man on a warrant for distributing fentanyl. Manchester Police Detectives executed a search warrant on a local drug-house, where they located approximately 850 grams of methamphetamine and 56 grams of fentanyl, several assault-style rifles, a handgun, ammunition, scales, safes, cash, and cellphones.
- The Northern District of Ohio reported a 10-defendant wire case involving a drug trafficking organization (DTO) operating out of Elyria and Sandusky, Ohio. The DTO purchased kilogram quantities of cocaine and oxycodone pills. Co-conspirators would later cook the cocaine and sell it as crack to local dealers in Elyria. During the conspiracy, agents seized approximately ½ kilo of cocaine, 100 grams of crack, oxycodone pills, and five firearms.
- The Western District of Pennsylvania prosecuted 98 SOS cases thus far in FY 2020. Particularly noteworthy among them is the prosecution of Lynell Guyton. Guyton was convicted by a jury of conspiracy to distribute 100 grams or more of cyclopropyl fentanyl and other charges, including firearms and money laundering violations. Guyton, who had been receiving shipments of fentanyl analogues from China, is both a Career Offender and an Armed Career Criminal. The case gained media attention when, during the execution of a search warrant in connection with the charges, the conspirators tipped over a table, sending cyclopropyl fentanyl into the air, sickening several law enforcement officers on the scene.
- The Eastern District of Tennessee reported multiple cases arising out of a single investigation involving a drug trafficking organization responsible for trafficking heroin and fentanyl from Michigan to various communities in the Eastern District of Tennessee. 29 defendants have been indicted on various charges, including drug trafficking conspiracy, overdose death enhancements, money-laundering conspiracy, and various firearms offenses. More than 5.5 kilograms of heroin and/or fentanyl and 11 firearms were seized during the investigation.
- The Northern District of West Virginia reported a July 21, 2020, 44- count indictment against 12 defendants. During the nearly yearlong investigation, law enforcement officers seized more than 280 grams of cocaine base and more than 40 grams of fentanyl from one of the defendant’s residences in Harpers Ferry, West Virginia. Throughout the investigation, officers seized more than 280 grams of fentanyl, acetyl fentanyl, and heroin; more than 350 grams of cocaine base; more than one kilogram of liquid PCP; various amounts of cocaine; five firearms; and over $28,000.
- The Southern District of West Virginia reported that after a three-day trial, a jury convicted Steven McCallister of distribution of fentanyl, possession with the intent to distribute fentanyl, being a felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking. Officers conducted a 50-gram purchase of heroin from McCallister, which then led to the execution of a search warrant at McCallister’s home. Officers seized over one kilogram of fentanyl and a firearm.
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U.S. Attorney Brady Announces Results in Fight against the Opioid Crisis Two Years after Launch of Operation S.O.S.Read the Press Release
PITTSBURGH – In July 2018, the Department of Justice announced the launch of Operation Synthetic Opioid Surge (S.O.S), a program aimed at reducing the supply of synthetic opioids in 10 high impact areas, including the Western District of Pennsylvania, and identifying wholesale distribution networks and international and domestic suppliers.
Under Operation SOS, the United States Attorneys in 10 districts with some of the highest drug overdose death rates in the country each designated an area where they would focus on prosecuting every readily available case involving fentanyl, fentanyl analogues, and other synthetic opioids, regardless of the drug quantity.
"The Justice Department’s commitment to fighting the opioids epidemic is stronger than ever, and we are using every tool in our arsenal to disrupt the supply of these drugs on our streets," said Deputy Attorney General Jeffrey A. Rosen. "Operation SOS has had a significant positive impact on the communities where it is being employed. The Department will continue to build on these successes and work to stop the drug traffickers who so callously wreck lives."
"Under SOS, we have targeted the most significant and prolific synthetic opioid traffickers who are dealing the most harmful drugs that are killing our neighbors," said U.S. Attorney Brady. "By taking both the drugs and the traffickers off the streets, we are saving lives. That vital work continues."
The Western District of Pennsylvania has prosecuted 98 SOS cases thus far in FY 2020.
• Particularly noteworthy among them is the prosecution of Lynell Guyton. A federal jury in January convicted Guyton of conspiracy to distribute 100 grams or more of cyclopropyl fentanyl and other charges, including firearms and money laundering violations. Guyton, who had been receiving shipments of fentanyl analogues from China, is both a Career Offender and an Armed Career Criminal. The case gained media attention when, during the execution of a search warrant in connection with the charges, the conspirators tipped over a table, sending cyclopropyl fentanyl into the air, sickening 18 Pittsburgh SWAT team members on the scene.
• Last autumn, we charged two people following eight drug overdoses in Pittsburgh and West Mifflin. According to the indictment and a criminal complaint filed in the case, on September 22, 2019, Peter Rene Sanchez Montalvo distributed fentanyl and acetyl fentanyl at a party in an apartment located on Tunnel Boulevard on Pittsburgh’s South Side. The indictment alleges that the distribution resulted in the deaths of R.M., J.P., and J.S., as well as serious bodily injury to F.M., G.G., and P.R. A separate, but related, indictment and criminal complaint alleges that on September 23, 2019, Derek Omar Smith possessed with intent to distribute fentanyl and acetyl fentanyl. At 3:15 a.m., West Mifflin Police were dispatched to a suspected overdose on Bowes Avenue in West Mifflin. Upon arrival they located two individuals who had overdosed, and who medics were able to revive with naloxone.
• The charges in Tyric Allen, et al. arose out of an FBI OCDETF wiretap investigation, which targeted a violent street gang, known as the Shot Boyz, in Pittsburgh. Twenty-six targets (21 from Allegheny County and five from Westmoreland County) were indicted on charges of selling large quantities of fentanyl in the City of Pittsburgh, surrounding neighborhoods, and in Latrobe, PA.
• Finally, last week a criminal complaint was filed charging Yarelis Mary Garcia Corretjer, of Philadelphia, PA, and Reyelin Manuel Abreu Vasquez, of the Dominican Republic, with possessing approximately 400 bricks of suspected fentanyl during a traffic stop by Pennsylvania State Police troopers.
Nationally, since 2018, Operation SOS has resulted in approximately 750 defendants being charged in federal court, with 384 of those defendants charged thus far in FY 20. Most importantly, the districts participating in the program have seen a decline in opioid overdoses. From 2017 to 2019, most SOS counties reported a decline of 14% to 24%. One notable success was in the Western District of Pennsylvania, where the opioid overdose rates declined by nearly 45%.
The nine other participating SOS districts and some of their successes are listed below:
• The Eastern District of California has reported 60 active Operation S.O.S. investigations. Recently, the USAO charged one sentence-enhanced "death resulting" prosecution. In February 2020, another investigation resulted in the seizure of over 20,000 fentanyl-laced counterfeit oxycodone pills.
• The Eastern District of Kentucky reported that an SOS investigation led to a residential search warrant and seizure of more than 1,300 grams of fentanyl, more than 500 grams of methamphetamine, $15,000 cash, two firearms, and paraphernalia used to traffic narcotics including a device for pressing fentanyl into a brick-like shape
• The District of Maine reported a July 2020 arrest of a defendant on charges of distributing counterfeit fentanyl pills marked as Percocet, in connection with a fatal fentanyl overdose that occurred in May 2020. In addition, a Maine man was sentenced in February 2020 to five years in prison for two counts of possession with intent to distribute fentanyl, in connection with an incident where the defendant was found in possession of fentanyl less than 24 hours after he was released on a state summons for possession of fentanyl.
• The District of New Hampshire reported the October 2019 arrest of a man on a warrant for distributing fentanyl. Manchester Police Detectives executed a search warrant on a local drug-house, where they located approximately 850 grams of methamphetamine and 56 grams of fentanyl, several assault-style rifles, a handgun, ammunition, scales, safes, cash, and cellphones.
• The Northern District of Ohio reported a 10-defendant wire case involving a drug trafficking organization (DTO) operating out of Elyria and Sandusky, Ohio. The DTO purchased kilogram quantities of cocaine and oxycodone pills. Co-conspirators would later cook the cocaine and sell it as crack to local dealers in Elyria. During the conspiracy, agents seized approximately ½ kilo of cocaine, 100 grams of crack, oxycodone pills, and five firearms.
• The Southern District of Ohio reported the arrest of an individual who had previously served a nine-year state prison sentence for drug trafficking. On October 22, 2019, after law enforcement observed activity consistent with drug transactions, including the delivery of what appeared to be a kilogram of narcotics by a courier, members of the FBI Safe Streets Task Force executed a search warrant at a residence in Dayton, Ohio, where they located three firearms, 1,205 grams of methamphetamine, 1,716 grams of fentanyl, 305 grams of heroin, drug processing equipment, and 12 cellular telephones. One of the recovered cellular telephones contained photographs of multiple kilograms of fentanyl and communications with a narcotics supplier. Through subsequent investigation, law enforcement recovered an additional 19.5 kilograms of fentanyl/carfentanil.
• The Eastern District of Tennessee reported multiple cases arising out of a single investigation involving a drug trafficking organization responsible for trafficking heroin and fentanyl from Michigan to various communities in the Eastern District of Tennessee. 29 defendants have been indicted on various charges, including drug trafficking conspiracy, overdose death enhancements, money-laundering conspiracy, and various firearms offenses. More than 5.5 kilograms of heroin and/or fentanyl and 11 firearms were seized during the investigation.
• The Northern District of West Virginia reported a July 21, 2020, forty-four count indictment against 12 defendants. During the nearly yearlong investigation, law enforcement officers seized more than 280 grams of cocaine base and more than 40 grams of fentanyl from one of the defendant’s residences in Harpers Ferry, West Virginia. Throughout the investigation, officers seized more than 280 grams of fentanyl, acetyl fentanyl, and heroin; more than 350 grams of cocaine base; more than one kilogram of liquid PCP; various amounts of cocaine; five firearms; and over $28,000.
• The Southern District of West Virginia reported that after a three-day trial, a jury in the convicted Steven McCallister of distribution of fentanyl, possession with the intent to distribute fentanyl, being a felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking. Officers conducted a 50-gram purchase of heroin from McCallister, which then led to the execution of a search warrant at McCallister’s home. Officers seized over one kilogram of fentanyl and a firearm.
U.S. Attorney Bill Powell announces results in fight against the opioid crisis two years after launch of Operation S.O.S.Read the Press Release
MARTINSBURG, WEST VIRGINIA – In July 2018, the Department of Justice announced the launch of Operation Synthetic Opioid Surge (S.O.S), a program aimed at reducing the supply of synthetic opioids in 10 high impact areas, including the Northern District of West Virginia, and identifying wholesale distribution networks and international and domestic suppliers.
Under Operation SOS, the United States Attorneys in 10 districts with some of the highest drug overdose death rates in the country each designated a county where they would focus on prosecuting every readily available case involving fentanyl, fentanyl analogues, and other synthetic opioids, regardless of the drug quantity.
“The Justice Department’s commitment to fighting the opioids epidemic is stronger than ever, and we are using every tool in our arsenal to disrupt the supply of these drugs on our streets,” said Deputy Attorney General Jeffrey A. Rosen. “Operation SOS has had a significant positive impact on the communities where it is being employed. The Department will continue to build on these successes and work to stop the drug traffickers who so callously wreck lives.”
In the Northern District of West Virginia, Berkeley County, which sees the highest overdose death rate in the district, is a designated SOS area. As an example of the good work Operation SOS fuels, U.S. Attorney Bill Powell of the Northern District of West Virginia announced on July 21, 2020, a 44-count indictment against 12 defendants. During the nearly year-long investigation, law enforcement officers seized more than 280 grams of cocaine base and more than 40 grams of fentanyl from one of the defendant’s residences in Harpers Ferry, West Virginia. Throughout the investigation, officers seized more than 280 grams of fentanyl, acetyl fentanyl, and heroin; more than 350 grams of cocaine base; more than one kilogram of liquid PCP; various amounts of cocaine; five firearms; and over $28,000.
“The Northern District of West Virginia has been especially hard hit by opioid trafficking. Berkeley County was designated as a S.O.S impact area and we were consequently provided additional resources, including an additional prosecutor, to confront the problem. These resources have paved the way for considerable prosecutions and the removing of considerable fentanyl, guns and other drugs from our communities. Those responsible were prosecuted and lives have been saved as a result,” said Powell.In the Northern District of West Virginia, Operation SOS has initiated 64 investigations with 99 defendants being charged in federal court since its inception in 2018. Thus far in 2020, investigators have seized over 2 pounds of fentanyl in Berkeley County. That is enough fentanyl to kill 1.3 million people.
Nationally, since 2018, Operation SOS has resulted in approximately 750 defendants being charged in federal court, with 384 of those defendants charged thus far in FY 20. Most importantly, the districts participating in the program have seen a decline in opioid overdoses. From 2017 to 2019, most SOS counties reported a decline of 14% to 24%. One notable success was in the Western District of Pennsylvania, where the opioid overdose rates declined by nearly 45%.
The nine other participating districts and some of their successes are listed below:
• The Eastern District of California has reported 60 active Operation S.O.S. investigations. Recently, the USAO charged one sentence-enhanced “death resulting” prosecution. In February 2020, another investigation resulted in the seizure of over 20,000 fentanyl-laced counterfeit oxycodone pills.
• The Eastern District of Kentucky reported that an SOS investigation led to a residential search warrant and seizure of more than 1,300 grams of fentanyl, more than 500 grams of methamphetamine, $15,000 cash, two firearms, and paraphernalia used to traffic narcotics including a device for pressing fentanyl into a brick-like shape
• The District of Maine reported a July 2020 arrest of a defendant on charges of distributing counterfeit fentanyl pills marked as Percocet, in connection with a fatal fentanyl overdose that occurred in May 2020. In addition, a Maine man was sentenced in February 2020 to five years in prison for two counts of possession with intent to distribute fentanyl, in connection with an incident where the defendant was found in possession of fentanyl less than 24 hours after he was released on a state summons for possession of fentanyl.
• The District of New Hampshire reported the October 2019 arrest of a man on a warrant for distributing fentanyl. Manchester Police Detectives executed a search warrant on a local drug-house, where they located approximately 850 grams of methamphetamine and 56 grams of fentanyl, several assault-style rifles, a handgun, ammunition, scales, safes, cash, and cellphones.
• The Northern District of Ohio reported a 10-defendant wire case involving a drug trafficking organization (DTO) operating out of Elyria and Sandusky, Ohio. The DTO purchased kilogram quantities of cocaine and oxycodone pills. Co-conspirators would later cook the cocaine and sell it as crack to local dealers in Elyria. During the conspiracy, agents seized approximately ½ kilo of cocaine, 100 grams of crack, oxycodone pills, and five firearms.
• The Southern District of Ohio reported the arrest of an individual who had previously served a nine-year state prison sentence for drug trafficking. On October 22, 2019, after law enforcement observed activity consistent with drug transactions, including the delivery of what appeared to be a kilogram of narcotics by a courier, members of the FBI Safe Streets Task Force executed a search warrant at a residence in Dayton, Ohio, where they located three firearms, 1,205 grams of methamphetamine, 1,716 grams of fentanyl, 305 grams of heroin, drug processing equipment, and 12 cellular telephones. One of the recovered cellular telephones contained photographs of multiple kilograms of fentanyl and communications with a narcotics supplier. Through subsequent investigation, law enforcement recovered an additional 19.5 kilograms of fentanyl/carfentanil.
• The Western District of Pennsylvania prosecuted 98 SOS cases thus far in FY 2020. Particularly noteworthy among them is the prosecution of Lynell Guyton. Guyton was convicted by a jury of conspiracy to distribute 100 grams or more of cyclopropyl fentanyl and other charges, including firearms and money laundering violations. Guyton, who had been receiving shipments of fentanyl analogues from China, is both a Career Offender and an Armed Career Criminal. The case gained media attention when, during the execution of a search warrant in connection with the charges, the conspirators tipped over a table, sending cyclopropyl fentanyl into the air, sickening several law enforcement officers on the scene.
• The Eastern District of Tennessee reported multiple cases arising out of a single investigation involving a drug trafficking organization responsible for trafficking heroin and fentanyl from Michigan to various communities in the Eastern District of Tennessee. 29 defendants have been indicted on various charges, including drug trafficking conspiracy, overdose death enhancements, money-laundering conspiracy, and various firearms offenses. More than 5.5 kilograms of heroin and/or fentanyl and 11 firearms were seized during the investigation.
• The Southern District of West Virginia reported that after a three-day trial, a jury in the convicted Steven McCallister of distribution of fentanyl, possession with the intent to distribute fentanyl, being a felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking. Officers conducted a 50-gram purchase of heroin from McCallister, which then led to the execution of a search warrant at McCallister’s home. Officers seized over one kilogram of fentanyl and a firearm.
U.S. Accountant in Panama Papers Investigation Sentenced to PrisonRead the Press Release
A U.S. accountant was sentenced in the Southern District of New York to 39 months in prison for wire fraud, tax fraud, money laundering, aggravated identity theft, and other charges, announced Acting Assistant Attorney General Brian C. Rabbitt and Acting U.S. Attorney Audrey Strauss of the Southern District of New York.
Richard Gaffey, aka Dick Gaffey, 76, a U.S. citizen and resident of Medfield, Massachusetts, pleaded guilty to one count of conspiracy to commit tax evasion and to defraud the United States; one count of wire fraud; one count of money laundering conspiracy; four counts of willful failure to file Reports of Foreign Bank and Financial Accounts, FinCEN Reports 114; and one count of aggravated identity theft. In addition to 39 months’ imprisonment, U.S. District Judge Richard M. Berman ordered Gaffey to serve three years of supervised release, to pay forfeiture in the amount of a sum of $5,373,609 and restitution in the amount of $3,459,315, and to pay a fine in the amount of $ 25,000.
Gaffey was charged along with Harald Joachim von der Goltz, Ramses Owens, and Dirk Brauer in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (Mossack Fonseca), a Panama-based global law firm, and its related entities. Gaffey previously pled guilty to the charges, and was sentenced today by U.S. District Judge Richard M. Berman.
According to the allegations contained in the indictments, other filings in this case, and statements during court proceedings, including Gaffey’s guilty plea and sentencing hearings:
Since at least 2000 through 2018, Gaffey conspired with others to defraud the United States by concealing his clients’ assets and investments, and the income generated by those assets and investments, from the IRS through fraudulent, deceitful, and dishonest means. During all relevant times, Gaffey assisted U.S. taxpayers who were required to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts.
Gaffey helped those U.S. taxpayers evade their tax reporting obligations in a variety of ways, including by hiding the beneficial ownership of his clients’ offshore shell companies and setting up bank accounts for those shell companies. These shell companies and bank accounts made investments totaling tens of millions of dollars. For one U.S. taxpayer, Gaffey advised how to covertly repatriate approximately $3 million to the United States by reporting to the IRS a fictitious company sale that never actually occurred to evade paying the full U.S. tax amount. Gaffey was assisted in this scheme through the use of Mossack Fonseca, including Ramses Owens, a Panamanian lawyer who previously worked at Mossack Fonseca.
Gaffey was the U.S. accountant for Harald Joachim von der Goltz. From 2000 until 2017, von der Goltz was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income. In furtherance of von der Goltz’s efforts to conceal his assets and income from the IRS, Gaffey falsely claimed that von der Goltz’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and – unlike von der Goltz – was not a U.S. taxpayer. In support of this fraudulent scheme, Gaffey submitted the name, date of birth, government passport number, address, and other means of identification of von der Goltz’s elderly mother to a U.S. bank in Manhattan.
Von der Goltz was previously sentenced by Judge Berman principally to 48 months’ imprisonment. Owens and Brauer remain at large.
The Justice Department praised the outstanding investigative work of IRS-Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Justice Department’s Tax Division and Office of International Affairs, the FBI, and law enforcement partners in France, the United Kingdom, and Germany provided significant assistance.
This case is being prosecuted by Trial Attorney Michael Parker of the Criminal Division’s Money Laundering and Asset Recovery Section of the Justice Department and Assistant U.S. Attorneys Eun Young Choi and Thane Rehn of the Manhattan U.S. Attorney’s Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit, with substantial support from previous co-counsel, Trial Attorney Parker Tobin of the Tax Division.
The charges as to Owens and Brauer are merely accusations, and they are 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.
U.S. Accountant in Panama Papers Investigation Sentenced to 39 Months in PrisonRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Brian C. Rabbitt, Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced today that RICHARD GAFFEY, a/k/a “Dick Gaffey,” was sentenced in Manhattan federal court to 39 months in prison for wire fraud, tax fraud, money laundering, aggravated identity theft, and other charges. GAFFEY, a resident of Massachusetts, was charged along with Harald Joachim von der Goltz, Ramses Owens, and Dirk Brauer in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (“Mossack Fonseca”), a Panama-based global law firm, and its related entities. GAFFEY previously pled guilty to the charges, and was sentenced today by U.S. District Judge Richard M. Berman.
Acting U.S. Attorney Audrey Strauss said: “Richard Gaffey was a tax accountant who specialized in sheltering his clients’ assets and income, aiding and abetting their evasion of their U.S. tax obligations. Now, after nearly two decades of felonious hide-and-seek, Gaffey has been sentenced to prison for his crimes.”
According to the allegations contained in the Indictments,[1] other filings in this case, and statements during court proceedings, including GAFFEY’s guilty plea and sentencing hearings:
Since at least 2000 through 2018, GAFFEY conspired with others to defraud the United States by concealing his clients’ assets and investments, and the income generated by those assets and investments, from the Internal Revenue Service (“IRS”) through fraudulent, deceitful, and dishonest means. During all relevant times, GAFFEY assisted U.S. taxpayers who were required to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts. GAFFEY helped those U.S. taxpayers evade their tax reporting obligations in a variety of ways, including by hiding the beneficial ownership of his clients’ offshore shell companies and setting up bank accounts for those shell companies. These shell companies and bank accounts made investments totaling tens of millions of dollars. For one U.S. taxpayer, GAFFEY advised how to covertly repatriate approximately $3 million to the United States by reporting to the IRS a fictitious company sale that never actually occurred to evade paying the full U.S. tax amount. GAFFEY was assisted in this scheme through the use of Mossack Fonseca, including Ramses Owens, a Panamanian lawyer who previously worked at Mossack Fonseca.
GAFFEY was the U.S. accountant for Harald Joachim von der Goltz. From 2000 until 2017, von der Goltz was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income. In furtherance of von der Goltz’s efforts to conceal his assets and income from the IRS, GAFFEY falsely claimed that von der Goltz’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and – unlike von der Goltz – was not a U.S. taxpayer. In support of this fraudulent scheme, GAFFEY submitted the name, date of birth, government passport number, address, and other means of identification of von der Goltz’s elderly mother to a U.S. bank in Manhattan.
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GAFFEY, 76, a U.S. citizen and resident of Medfield, Massachusetts, pled guilty to one count of conspiracy to commit tax evasion and to defraud the United States; one count of wire fraud; one count of money laundering conspiracy; four counts of willful failure to file Reports of Foreign Bank and Financial Accounts, FINCEN Reports 114; and one count of aggravated identity theft. In addition to the prison term, Judge Berman ordered GAFFEY to serve three years of supervised release, to pay forfeiture in the amount of a sum of $5,373,609 and restitution in the amount of $3,459,315, and to pay a fine in the amount of $ 25,000.
Harald von der Goltz was sentenced by Judge Berman on September 21, 2020, principally to 48 months in prison. Owens and Brauer remain at large.
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Ms. Strauss praised the outstanding investigative work of IRS-CI and HSI, and thanked the Justice Department’s Tax Division and the Federal Bureau of Investigation for their significant assistance in the investigation. Ms. Strauss also thanked the U.S. Justice Department’s Office of International Affairs of the Department’s Criminal Division and law enforcement partners in France, the United Kingdom, and Germany for their assistance in the case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit, working in partnership with the Money Laundering and Asset Recovery Section of the Criminal Division. Assistant United States Attorneys Eun Young Choi and Thane Rehn, along with Trial Attorney Michael Parker of the Money Laundering and Asset Recovery Section, are in charge of the prosecution.
The charges as to Owens and Brauer are merely accusations, and they are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein constitute only allegations as to Owens and Brauer, and every fact described should be treated as an allegation.
Two Men Charged in South Florida Federal Court with Kidnapping and Torturing Cuban MigrantsRead the Press Release
Miami, Fl. – Two men have made their initial appearances in the Southern District of Florida on charges that they participated in an alien smuggling ring that involved kidnapping and torturing Cuban nationals and extorting victims’ family members for money.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, and Anthony Salisbury, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI) Miami Field Office, made the announcement.
The criminal complaint affidavits filed in the Southern District of Florida against Reynaldo Marquez Crespo, 41, and Jancer Sergio Ramos Valdes, 33, allege the following: Defendants tricked their victims into believing that they were going to smuggle them from Cuba into the United States. Instead, Crespo, Valdes, and their co-conspirators transported the victims by boat to Merida, Mexico, locked them in a house, and held them captive for ransom. Crespo, Valdes, and others commanded each victim to provide contact information for a family member who could pay a $10,000 ransom. The men contacted the victims’ relatives, some of whom were located in Miami, and threatened to torture, starve, and kill the victims if the relatives refused to pay. If a victim’s relative was able to pay the ransom, Crespo, Valdes, and others released the victim and sent that person by bus to the Mexican-United States border with instructions to seek political asylum. When victims’ relatives could not pay, those migrants were beaten, threatened with knives and firearms, and shocked with stun guns, according to the complaint affidavits.
Valdes was arrested in Connecticut, where a federal magistrate judge ordered him detained pending trial. Crespo was arrested in Texas. Both defendants were brought to Miami to face their charges. Yesterday, they made their initial appearances in the Southern District of Florida before U.S. Magistrate Judge Jonathan Goodman. Crespo’s pretrial detention hearing is set for September 28, 2020, at 1:00 p.m., in federal magistrate court in Miami.
These charges are the result of ongoing efforts of the Operation Sisyphus Task Force, a multi-agency partnership established by the Organized Crime Drug Enforcement Task Forces (OCDETF) Priority Transnational Organized Crime Program. The Operation Sisyphus Task Force was formed to combat Caribbean based organized crime and includes the U.S. Attorney’s Office for the Southern District of Florida, FBI Miami and HSI Miami. In recent years, the Operation Sisyphus Task Force has targeted organizations utilizing coercion and extortion to compel migrants and their families to make payments for the release of loved ones.
Operation Sisyphus is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. 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.
FBI Miami and HSI Miami investigated this matter. Assistant United States Attorney Quinshawna Landon is prosecuting the case. Assistant United States Attorneys Adrienne Rosen and Annika Miranda are handling asset forfeiture.
If you believe you are a victim of migrant coercion or extortion or know someone who is, you are encouraged to call 1-800-CALLFBI (225-5324). You may also call 1-866-347-2423 or visit https://www.ice.gov/tipline. Help is available in English, Spanish, and additional languages.
A criminal complaint is an accusation and the statements it contains and referred to here are allegations. 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, under case nos. 20-mj-3346 and 20-mj-3347.
Two Former Postal Service Employees Indicted on Federal ChargesRead the Press Release
SHREVEPORT, La. – A federal grand jury returned indictments yesterday charging two former United States Postal Service employees, Acting United States Attorney Alexander C. Van Hook announced.
Shinice Jordan, 32, of Shreveport, Louisiana, has been charged with one count of theft of mail matter and one count of delay or destruction of mail. According to the indictment, on July 23, 2019, Jordan, who worked as a Letter Carrier with the U.S. Postal Service, stole a Walmart gift card from a letter which had been entrusted to her to deliver. It is further alleged that on that same date, Jordan delayed the opening of the letter which was intended to be delivered by her as an employee of the U.S. Postal Service.
Sedarius Howard, 33, of Shreveport, Louisiana, has been charged with one count of delay or destruction of mail. The indictment alleges that on March 16, 2020, while working as a Letter Carrier with the U.S. Postal Service, Howard destroyed or delayed delivery of mail that was his duty as an employee to deliver.
If convicted, both Jordan and Howard face up to 5 years in prison, a $250,000 fine, or both.
The United States Postal Service-Office of Inspector General conducted the investigations. Assistant U.S. Attorney Robert F. Moody is prosecuting the cases.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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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.
Two Defendants Plead Guilty to Conspiracy to Use Forged Passports and Identification Cards in Widespread English Proficiency Exam Scheme Benefiting Chinese Nationals Seeking Student VisasRead the Press Release
WASHINGTON – Yixin Ren, 36, of Brooklyn, NY, and Yishan Lin, 35, of Queens, NY, pled guilty today before U.S. District Court Judge Timothy J. Kelly to one count of conspiracy to use false, forged, and counterfeited documents, in violation of 18 U.S.C. § 371, in connection with a scheme where Chinese nationals fraudulently obtained student visas by hiring people with fake Chinese passports to take an English proficiency test in their names.
The United States requires foreign citizens who wish to enter the United States on a temporary basis to study at a college or university to first obtain an F-1 student visa. To obtain a student visa, foreign citizens must first apply to study at a school that has been authorized by the Student and Exchange Visitor Program (SEVP) to enroll foreign students. In the United States, many SEVP-certified schools require foreign citizens whose first language is not English to certify proficiency in English by achieving a particular score on the TOEFL or other English proficiency examination.
When the foreign national goes to a TOEFL testing location, the test taker must present an original, non-expired, government-issued identification document recognized by their home country. As described in the indictment and the plea agreement, the defendants conspired to use counterfeit People’s Republic of China passports and national identification cards to impersonate at least 50 different Chinese nationals at various TOEFL testing locations internationally, including in the District of Columbia.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin for the District of Columbia, and Special Agent in Charge Raymond Villanueva of the HSI Washington Field Office.
The charge of conspiracy to use false, forged, and counterfeited documents carries a statutory maximum penalty of five years in prison. Sentencing has been scheduled before the Honorable Timothy J. Kelly on December 11, 2020.
This case was investigated by Homeland Security Investigations’ Washington Field Office, with assistance from the U.S. Citizenship and Immigration Service’s Fraud Detection National Security Section and the U.S. Treasury Office of the Inspector General. The Educational Testing Service, which administers the TOEFL exam, has also provided assistance during the investigation.
This matter is being prosecuted by Assistant United States Attorney Jessi Camille Brooks of the National Security Section, with assistance from Paralegal Specialist Jorge Casillas. Special thanks go to former Assistant United States Attorney Jeff Pearlman and former Special Assistant United States Attorney Elizabeth Dewar.
Town of Brookhaven Agrees to Settle Federal Complaint by Complying with Clean Air Act RequirementsRead the Press Release
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Pete D. Lopez, Regional Administrator of the United States Environmental Protection Agency, Region 2 (EPA), announced today that the United States filed suit under the Clean Air Act (CAA) against the Town of Brookhaven (the Town) to address its longstanding failure to properly monitor and control noxious landfill gas emissions. The parties agreed to enter into a Consent Judgment, also filed today with the court, which requires the Town to perform injunctive relief that will bring its landfill into compliance with the CAA. Under the agreement, the Town will install and operate systems that reduce and monitor landfill gases, including sulfur dioxide, hydrogen sulfide and methane. The settlement also requires the Town to pay a civil penalty of $249,166.
The lawsuit and Consent Judgment were filed in the United States District Court for the Eastern District of New York, in Central Islip, New York. Following a 30-day public comment period, the United States will review any comments and, if appropriate, ask the court to enter the Consent Judgment.
“The United States brought this action to ensure that the Town of Brookhaven meets its obligation to protect air quality by properly operating systems that reduce potentially harmful landfill gas emissions. The resolution in this case protects air quality by preventing excess emissions of sulfur dioxide, hydrogen sulfide and methane. This Office will vigorously and faithfully enforce the rule of law to protect our community and our precious natural environment,” stated Acting United States Attorney DuCharme.
“The Town of Brookhaven, EPA and the Department of Justice have worked out an agreement that will ensure that hydrogen sulfide and other landfill gas emissions emanating from the Brookhaven landfill are properly monitored, detected, and controlled,” stated EPA Regional Administrator Lopez. “Putting these safeguards in place is essential to protecting human health and the environment. We look forward to our continued engagement on this issue.”
The CAA was passed by Congress in 1970 to protect public health and the environment through the regulation of air emissions from both stationary and mobile sources. The law requires the EPA to establish national ambient air quality standards (NAAQS) and imposes limitations on air pollutant emissions. State and local governments are required to adopt federally enforceable plans to meet these standards.
The Town of Brookhaven, the largest town in Suffolk County, owns and operates the Brookhaven Landfill and the Brookhaven Landfill Gas Recovery Facility. The landfill accepts municipal waste from the Town as well as other municipalities throughout Long Island. Waste is deposited at the Landfill into various Cells, which are equipped with gas collection and control systems (GCCS). Gas generated from Cells 5 and 6 contain high levels of hydrogen sulfide, which is combusted by an enclosed flare and oxidized into sulfur dioxide. The Town also operates a system called the SulfaTreat System, to reduce hydrogen sulfide concentration in the gas upstream of the flare, thereby reducing the sulfur dioxide emissions from the flare.
Since 2005, the Town’s facilities have violated the CAA and its implementing regulations related to landfill air pollutant emissions, as well as the Town’s Title V operating permit for its landfill. For example, the Town failed to: maintain proper temperatures in the landfill (which poses a risk for underground fires); properly monitor surface methane emissions; and continuously operate the SulfaTreat system, which reduces sulfur dioxide emissions from its flare. Some of these violations contributed to excessive sulfur dioxide in the ambient air surrounding the facility. In addition to its foul odor, sulfur dioxide can pose a danger to human, animal and plant health.
The settlement requires the Town to perform injunctive relief to bring its landfill facilities back into compliance with CAA. As such, the Town must maintain and operate the facilities and associated air pollution control equipment in a manner consistent with sound practices for minimizing emissions. Compliance with the CAA will require the Town to: properly operate the GCCS system, continuously operate the SulfaTreat system to reduce hydrogen sulfide concentrations from the landfill gas which will result in lower levels of sulfur dioxide emissions, install and operate a continuous hydrogen sulfide monitoring system, design and install a new taller flare to better disperse emissions, conduct monthly methane surface monitoring, and survey and correct any areas of high temperature in the landfill. The Town has also agreed to install 350 solar panels, expected to generate 129 kilowatts of electricity, as a means to further reduce the Town’s air emissions profile.
The civil negotiations and settlement were handled by Assistant U.S. Attorneys Diane C. Leonardo and Matthew Silverman, working with Liliana Villatora and Damaris Urdaz, Regional Counsel’s Office, U.S. EPA Region 2, and Gaetano LaVigna, Chief, Stationary Source Compliance Section, Air Compliance Branch, U.S. EPA Region 2.
Three California Men Sentenced for Scheme to Manipulate Stock Prices of Two Public CompaniesRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Chip Hackley, 49, of Hermosa Beach, CA, and George Matin, 51, of Los Angeles, CA, were each sentenced to 15 months in prison, to be followed by two years of supervised release, by United States District Court Judge Paul S. Diamond for conspiracy, wire fraud, and securities fraud. Previously, on September 16, 2020, Judge Diamond sentenced their co-conspirator, Harold Minsky, 81, of Northridge, CA, to one year and one day in prison, to be followed by the same term of supervised release.
Minsky, Matin, and Hackley conspired to manipulate the stock price and trading volume of public companies. As part of this conspiracy, Minsky and Matin attempted to manipulate the stock of two public companies: WGE Holdings Corp. (ticker symbol WGE), a gold mining business, and Holy Grail (ticker symbol HGRL), which produced and sold hemp and Cannabidiol (“CBD”) products. Hackley joined the scheme later, participating only in the manipulation of HGRL.
The conspirators planned to manipulate the stock of these companies by establishing control over both their restricted and free trading shares and coordinating the issuance of press releases with the stock promotions in order to give the false impression of market interest in the stock. As part of this conspiracy, they also agreed to engage in prearranged stock trades and to bribe purchasers to buy the stock.
In attempting to manipulate the stock of both WGE and HGRL, Minsky and Matin intended to generate approximately $9 million in illegal proceeds for themselves and their co-conspirators, and to cause corresponding losses to the conspiracy’s victims. With respect to HGRL, Hackley intended to generate approximately $4 million in illegal proceeds.
Minsky, Matin, and Hackley were charged by separate Informations, each charging conspiracy, wire fraud, and securities fraud. Minsky pleaded guilty on May 2, 2019, Hackley on May 15, 2019, and Matin on October 10, 2019.
“Innocent individuals who try to legitimately invest and save money for the future are the ones who lose big when greedy fraudsters like Minsky, Matin and Hackley manipulate the markets with pump and dump stock schemes,” said First Assistant U.S. Attorney Williams. “Market manipulation also causes our economy to take a hit because the public cannot trust that the markets are free and fair. Thanks to the excellent work of the FBI, SEC, and prosecutors from this Office, these defendants’ days of profiting off of others’ misfortune are over.”
The case is being investigated by the Federal Bureau of Investigation, with the assistance of the Securities and Exchange Commission. It is being prosecuted by Assistant United States Attorney Patrick J. Murray.
Syracuse Man Sentenced to More than Eight Years for Membership in 110 GangRead the Press Release
SYRACUSE, NEW YORK – Javon Peterson, age 39, of Syracuse, was sentenced today to serve 98 months in federal prison based on his previous guilty plea for violating the Racketeering Influenced Corrupt Organizations Act (RICO), announced Acting United States Attorney Antoinette T. Bacon, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Chief Kenton Buckner, City of Syracuse Police Department.
In imposing sentence, United States District Judge Frederick J. Scullin, Jr. also ordered Peterson to serve three years of supervised release following his term of imprisonment. As part of his guilty plea in the case, Peterson admitted that he was a member of the 110 Gang operating in the city of Syracuse. Peterson further admitted that he repeatedly distributed crack cocaine in 110 Gang territory. During sentencing today, the Court found that 110 Gang members regularly possessed and used firearms to facilitate their drug trafficking, that the defendant was aware of such use, and that he personally possessed a firearm in connection with the offense.
Peterson was one of 14 defendants charged in the case for violating RICO based on their membership in the 110 Gang. The other 13 men have all pled guilty or been convicted at trial. Five of the co-defendants were previously sentenced:
- Damani Prince was sentenced to 78 months in prison; 3 year term of supervised release
- Rashawn Wynn was sentenced to 92 months in prison; 3 year term of supervised release
- Davon Sullivan was sentenced to 68 months in prison; 3 year term of supervised release
- Qualik Vaughn was sentenced to 68 months in prison; 3 year term of supervised release
- Jason Lebron was sentenced to 92 months in prison, 3 year term of supervised release
The remaining defendants in the case await sentencing.
This case was investigated by the Federal Bureau of Investigation (FBI), the Syracuse Police Department, and the Gang Violence Task Force, which consists of members of the Syracuse Police, the FBI, the U.S. Drug Enforcement Administration (DEA), the U.S. Marshals Service, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New York State Police, the New York State Department of Corrections, the New York State Attorney General, and the Onondaga County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Kristen Grabowski.
This case was brought as part of Project Safe Neighborhoods (PSN), 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.