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Tuesday 22 September 2020
Businessman gets life sentence for long-term sex trafficking of young girlRead the Press Release
CORPUS CHRISTI, Texas – A 68-year-old aquaculture company owner has been ordered to federal prison following his conviction of sex trafficking of a minor female, announced U.S. Attorney Ryan K. Patrick.
A Corpus Christi federal jury deliberated for one day before convicting David Keith Wills, Oct. 8, 2019, following a 10-day trial. Wills, previously from Rockport and South Padre Island, is the founder and part owner of Global Blue Technologies. The jury convicted him on multiple counts of sex trafficking and enticement of a child as well as one count of conspiring to obstruct justice.
Today, U.S. District Judge Nelva Gonzales Ramos, who presided over the trial, ordered Wills to serve a life sentence. At the hearing, the court heard a statement from the minor victim detailing how Wills destroyed her childhood and caused her lifelong trauma. Judge Ramos further ordered Wills to pay $172,000 restitution to the victim and $85,000 in fines.
“For three years, this individual preyed on the innocence of our most vulnerable population relying on economic and psychological manipulation to control and silence his victim,” said Mark Dawson, special agent in charge of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston. “With today's sentencing we have removed this predator from the community and sent a resounding message that we are committed to working with our law enforcement partners to aggressively investigate and prosecute anyone who seeks to exploit our nation's children.”
At trial, the jury heard that from 2012 to 2015, Willis conspired with his mistress Maria Candelaria Losoya to traffic the minor female for sex beginning when she was just 10 years old. Losoya and Wills used their cell phones to arrange meetings at several different locations where Wills would sexually assault the girl. These included Wills and Losoya’s respective residences as well as hotels and motels in the greater Corpus Christi area.
Wills sexually assaulted the minor female multiple times until she reported it in April 2015.
During this time, Wills promised to pay the victim’s college tuition if he was allowed to sexually assault the young girl. He also reimbursed Losoya for gifts to the victim and expenditures she would otherwise not have been able to afford. These included an iPad, Bose headphones, flatscreen TV, Apple laptop, trampoline, swimming pool and a school trip to Washington D.C.
After the victim reported the abuse, Wills conspired with a friend to remove a laptop from his home, wanting to destroy it to prevent law enforcement from seizing and reviewing it.
Several witnesses testified at the trial including the minor victim, forensic interviewer, the nurse who first examined her, several state and federal law enforcement officers and an expert witness. An eyewitness also described seeing the victim at a Portland hotel where Wills and Losoya met in March 2014.
The jury also heard from multiple defense witnesses attesting to his character and successes, while attempting to contradict testimony Losoya and the victim gave.
HSI conducted the investigation with assistance of Brownsville Police Department and Texas Rangers.
Assistant U.S. Attorneys Zahra Jivani Fenelon, Richard Bennett and Stephanie Bauman prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Brother-Sister Duo Sentenced in Fraud CaseRead the Press Release
GREENSBORO, N.C. B Two siblings were sentenced in federal court for making false claims against the United States, making false statements to a bank, and aggravated identity theft, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
JAMES ERNEST GANDY, JR., age 36, of Dunn, NC, was sentenced by United States District Court Judge Catherine C. Eagles in Greensboro on Friday, September 18, 2020, to 51 months in prison and three years of supervised release. The Court also ordered JAMES GANDY to pay $129,017 in restitution, and a forfeiture money judgment in the amount of $62,088.19.
JAMIE VICTORIOUS GANDY, age 40, of Winston-Salem, NC, was sentenced today by Judge Eagles to 39 months in prison and three years of supervised release. The Court also ordered JAMIE GANDY to pay $139,254 in restitution, and a forfeiture money judgment in the amount of $62,088.19.
“Every taxpayer depends on the integrity of the tax system and the United States Attorney’s Office is committed to prosecuting tax fraud,” said United States Attorney Matt Martin. “I commend IRS-Criminal Investigation for uncovering and investigating this tax fraud scheme.”
“These defendants thought they had a clever scheme to thwart the IRS and steal from American taxpayers,” said Matthew D. Line, IRS Criminal Investigation Special Agent in Charge. “IRS-Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”
According to court documents, JAMIE GANDY worked as a supervisor at the Liberty Tax Services franchise store in Lexington, North Carolina. In this role, she both prepared returns and reviewed returns prepared by others. One of the services the Liberty Tax Store provided to customers was rapid refund loan products from Republic Bank and Trust Company (“Republic”). A customer could apply for a repaid refund loan, by which Republic would provide the refund to the customer in a short time period and then collect loan payment from the tax customer’s refund. Up to $1,300 of the repaid refund loan could be loaded onto a NetSpend card which would allow the customer quick access to cash from the refund loan. After JAMIE GANDY began to work as supervisor at the Liberty Tax Store, her brother, JAMES GANDY, began to appear at the Lexington Liberty Tax Store, purportedly to visit his sister. JAMES GANDY operated a business in Dunn, North Carolina providing shipping pallets.
The operator of the Lexington Liberty Tax Store focused on business development and relied on JAMIE GANDY and other preparers to prepare and file returns. After receiving complaints from customers that they had not received their tax refunds and observing other indicia of fraud, a company audit revealed that numerous fraudulent returns had been filed at the Lexington Liberty Tax Store, usually under the name of JAMIE GANDY.
Many of the fraudulent returns were filed without the taxpayer’s authority or knowledge. Some of these returns were filed in the name of employees of JAMES GANDY’s pallet business without their knowledge or consent. In these cases, the W-2 forms attached to the returns had been falsified to enlarge the taxpayer’s income. Other people sold their personal identifying information to JAMES GANDY in Dunn or in Greensboro. They were also unaware that returns had been filed in their names. For most of the fraudulent returns, JAMES GANDY provided the identifying information of the victims to JAMIE GANDY at the Lexington Liberty Tax Store. JAMIE GANDY then prepared and filed the false return. She then applied for a repaid refund loan from Republic in the name of the purported taxpayer, making use of the false tax return to induce Republic to load the initial repaid refund loan onto a NetSpend card. JAMES GANDY and JAMIE GANDY then used the NetSpend cards to convert the fraudulently obtained loan proceeds. For example, in one case JAMES GANDY used a NetSpend card from a fraudulent return filing to purchase a deluxe trampoline party for his family, followed by an overnight stay at the Grandover Resort in Greensboro.
The case was investigated by Internal Revenue Service-Criminal Investigation, and Assistant U.S. Attorney Frank J. Chut, Jr., prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Bridgeport Man Sentenced to 15 Years in Federal Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, DEWAYNE JOYNER, also known as “Weezy,” 36, of Bridgeport, was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer in New Haven to 180 months of imprisonment, followed by five years of supervised release, for distributing heroin.
According to the evidence presented during a trial earlier this year, during the summer of 2017, members of the ATF, DEA and Bridgeport Police Department, who were investigating narcotics trafficking in Bridgeport’s East End neighborhood, learned that Joyner was selling heroin. In September 2017, investigators conducted controlled purchases of heroin from Joyner. The investigation revealed that Joyner was staying at a hotel in Bridgeport, and was storing narcotics in his hotel room.
The investigation subsequently revealed that Joyner and others had stolen a large quantity of heroin during an armed home-invasion robbery on September 2, 2017. Joyner discharged two rounds from a handgun during the robbery.
Joyner was arrested on September 12, 2017. At the time of his arrest, a search of his person revealed a quantity of heroin, $1,326 in cash, four cellphones and his hotel room key. A search of the hotel room revealed more than 250 grams of heroin and items used to process and package narcotics for street sale.
On January 31, 2020, a jury found Joyner guilty of one count of possession with intent to distribute 100 grams or more of heroin, one count of possession with intent to distribute a quantity of heroin, and two counts of possession with intent to distribute, and distribution of, a quantity of heroin.
Joyner has been detained since his arrest.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Bridgeport Police Department. The DEA Task Force includes personnel from the DEA, Connecticut State Police and Norwalk, Stamford, Stratford, Milford, Bridgeport and Trumbull Police Departments.
This case was prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Sarala Nagala.
Bechtel & Aecom, U.S. Department of Energy (DOE) Contractors, Agree to Pay $57.75 Million to Resolve Claims of Time Charging Fraud at Doe’s Hanford Waste Treatment PlantRead the Press Release
Richland and Spokane, WA – Today, the United States Attorney’s Office for the Eastern District of Washington announced that major federal contractors Bechtel National Inc., Bechtel Corporation (Bechtel), AECOM Energy & Construction, Inc. (AECOM), and their subsidiary Waste Treatment Completion Company, LLC (WTCC), agreed to pay $57,750,000 to the U.S. Department of Justice (DOJ) to resolve claims that Bechtel and AECOM fraudulently overcharged the U.S. Department of Energy (DOE) in connection with its operation of the Hanford Waste Treatment Plant (WTP) project. The False Claims Act (FCA) claims arose from allegations that Bechtel and AECOM management were aware of and failed to prevent inflated labor hours being charged to DOE, and for falsely billing DOE for work not actually performed.
The WTP is located at DOE’s Hanford Site near Richland, Washington. Between 2001 and the present, DOE has paid billions of dollars to Bechtel and AECOM to have them design and construct the WTP, the purpose of which is to treat hundreds of millions of gallons of dangerous radioactive waste currently stored at the Hanford Site. To construct, operate, and maintain the WTP, Bechtel and AECOM employed hundreds of electricians, millwrights, pipefitters, and other skilled tradesmen known as “craft” workers.
As part of the settlement secured by the U.S. Attorney’s Office (USAO) for the Eastern District of Washington, Bechtel and AECOM admitted to a detailed Statement of Facts setting forth their actionable conduct. Between 2009 and 2019, Bechtel and AECOM admitted to overcharging DOE for unreasonable and unallowable idle time experienced by craft personnel. Bechtel and AECOM further admitted to failing to schedule and carry out adequate work to keep craft personnel sufficiently occupied and productive, resulting in excessive idle time. Bechtel and AECOM also admitted that Bechtel and AECOM management knew that craft personnel were experiencing idle time due to management’s failure to assign sufficient work, and that this idle time could, at times, last “several hours.” Finally, Bechtel and AECOM admitted that they improperly billed DOE labor costs for the unreasonable idle time and continued doing so for years, even after Bechtel and AECOM knew they were under investigation for the improper billing practices.
“Completing the WTP is not only critical to public safety and the environmental health of the Pacific Northwest, but is an urgent and critically important ongoing public health concern, which the DOE and the State of Washington have appropriately made a top priority,” said Joseph H. Harrington, First Assistant United States Attorney (FAUSA) for the Eastern District of Washington. “It is stunning that, for nearly a decade, Bechtel and AECOM chose to line their corporate pockets by diverting important taxpayer funds from this critically essential effort.”
Teri L. Donaldson, the Inspector General for the Office of Inspector General – Department of Energy (OIG - DOE) noted, “Bechtel National Inc., AECOM Energy & Construction Inc. and Waste Treatment Completion Company LLC, engaged in a massive scheme to submit tens of millions of dollars of false claims to the U.S. Government for unallowable and unjustified costs over a period of years – a pattern of conduct that continued even after U.S. authorities notified the defendants that these costs were unallowable.” Inspector General Donaldson added, “I would like to extend my deep gratitude to our dedicated colleagues at the U.S. Attorney’s Office for their excellent work in holding the defendants responsible for their continuing pattern of unacceptable and irresponsible conduct. Our colleagues at the U.S. Attorney’s Office worked tirelessly with Special Agents of the Office of Inspector General in putting the evidence together and building the strong case that led to this significant settlement.”
This is the second time that Bechtel and AECOM have been the subject of the DOJ’s fraud enforcement actions and have agreed to pay a large sum to resolve allegations of fraud and overcharging on the WTP project. In November 2016, the USAO announced that Bechtel and AECOM then agreed to pay $125 million to resolve claims that they knowingly violated quality standards at Hanford and used substandard materials in constructing portions of the WTP, and also improperly used federal funds to lobby Congress to, among other things, try to cut the DOE’s budget for independent oversight of work on the WTP.
As part of the settlement, Bechtel and AECOM also entered into a 3-year independent corporate monitor agreement, which requires Bechtel and AECOM to pay for a full-time independent monitor and assistant monitor selected by the USAO. These monitors will enjoy broad access to Bechtel’s and AECOM’s systems, meetings, personnel, and other information pertaining to labor charging. The monitors will also report directly to the United States. Bechtel and AECOM face additional liquidated damages of up to $10 million if they violate the terms of the monitoring agreement, provide false information, or fail to immediately correct any identified DOE contract issues.
Importantly, Bechtel and AECOM also agreed to fully cooperate and assist the United States in its ongoing investigation and enforcement efforts against individual officers and managers that facilitated or participated in the false labor billing practices. FAUSA Harrington added,
“Requiring Bechtel and AECOM to admit to their conduct and to subject themselves to independent monitoring reflects not only the seriousness of this matter, but the USAO’s commitment to holding repeat offenders accountable, whether they are multinational corporations or individuals.
I commend the agents of the DOE’s Office of Inspector General for their dedicated and tireless investigative work. The agents reviewed hundreds of thousands of documents, interviewed dozens of witnesses and copiously reviewed and catalogued hundreds of hours of video and audio recordings, to build a solid case for these extensive and false labor charge transactions. Their hard work, persistence, and professional skill made this complex and challenging case possible.
This Office will continue to work with its law enforcement partners to investigate and prosecute fraud, waste and abuse committed by contractors and individual wrongdoers at Hanford, to hold them accountable, and to safeguard public funds, and protect the critical work being done at Hanford.”
According to court documents, the false craft labor billing case began in late 2016 when four (4) whistleblowers, who were employed at the WTP, came forward with allegations of labor mischarging. In May 2017, these individuals, known as “Relators”, filed a qui tam complaint under seal in the U.S. District Court (EDWA). When a relator files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. In this case, according to court documents, the United States intervened in the action in February 2020, and that the United States, Bechtel, and AECOM reached this settlement following the United States’ intervention. Pursuant to the settlement agreement, the relators will receive $13,750,000 of the settlement amount. Another $25,789,039 of the settlement amount has been designated as restitution, meaning that it will be returned to DOE so that it is available for use in the ongoing Hanford efforts.
The settlement was the result of an investigation jointly conducted by the USAO and DOE OIG’s Western Field Office - Region 6, which is based in Richland. The USAO’s investigation and prosecution was handled by Special Assistant United States Attorney Frieda K. Zimmerman, and Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene, in the USAO’s Spokane Office.
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For those members of the press interested in obtaining more information about this settlement, the USAO will host a virtual press conference at 11 a.m. on Wednesday, September 23, 2020, via WebEx, where the USAO will provide additional information and respond to questions regarding this resolution. If you are interested in virtually attending or participating, and have not received an invitation, please contact Debra Doll at (509) 835-6317 or [email protected] for further information.
78._final_executed_bechtel_settlement_agreement_and_sof.pdf 9._compliance_and_monitoring_agreement.pdfAttorney General William P. Barr and U.S. Attorney Justin Herdman announce update on Operation LegendRead the Press Release
During a press conference in Milwaukee today, Attorney General William P. Barr and U.S. Attorney Justin Herdman announced updates on Operation Legend.
Since Operation Legend’s launch in July 2020, more than 3,500 arrests – including approximately 200 for homicide – have been made; more than 1,000 firearms have been seized; and nearly 19 kilos of heroin, more than 11 kilos of fentanyl (enough to deliver more than five million fatal doses), more than 94 kilos of methamphetamine, nearly 14 kilos of cocaine, and more than $6.5 million in drug proceeds have been seized.
Of the more than 3,500 individuals arrested, approximately 815 have been charged with federal offenses. More than 440 of those defendants have been charged with firearms offenses, while more than 300 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses.
In Cleveland, 72 defendants have been charged with federal crimes, including 42 defendants charged with narcotics-related offenses, 26 charged with firearms-related offenses and four with other violent crimes.
U.S. Attorney Justin Herdman released the following statement:
“Operation Legend continues to remove persons prohibited from possession of firearms or ammunition, such as convicted felons, persons with histories of domestic violence, and traffickers of illegal narcotics off the streets,” said U.S. Attorney Justin Herdman. “As long as drugs, violence, and illegal firearms continue to harm our community, we will use our collaborative law enforcement partnerships and any resources available under Operation Legend to fight back.”
The Attorney General launched Operation Legend on July 8, 2020, as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
Launched in Kansas City, MO. on July 8, 2020, the operation expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on August 6, 2020; and to Indianapolis on August 14, 2020. A breakdown of the federal charges in each district can be found here.
Attorney General William P. Barr Announces Updates on Operation Legend at Press Conference in MilwaukeeRead the Press Release
Charges Announced Against Twenty-Six Defendants Alleged to Operate a
Violent Drug Trafficking Organization in MilwaukeeAt a press conference in Milwaukee today, Attorney General William P. Barr announced updates on Operation Legend. He was joined by Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, who announced charges against 26 defendants who allegedly operated a violent drug trafficking organization in Milwaukee, with ties to the Northern and Central Districts of California.
Attorney General Barr explained that since Operation Legend’s launch in July 2020, more than 3,500 arrests—including approximately 200 for homicide—have been made; more than 1000 firearms have been seized; and nearly 19 kilos of heroin, more than 11 kilos of fentanyl (enough to deliver more than five million fatal doses), more than 94 kilos of methamphetamine, nearly 14 kilos of cocaine, and more than $6.5 million in drug proceeds have been seized.
Of the more than 3,500 individuals arrested, approximately 815 have been charged with federal offenses. More than 440 of those defendants have been charged with firearms offenses, while more than 300 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses.
In Milwaukee, 47 defendants have been charged with federal crimes as part of Operation Legend:
- 24 defendants have been charged with narcotics-related offenses;
- 19 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
As part of Operation Legend, U.S. Attorney Krueger further announced that in a criminal complaint unsealed today, 26 defendants have been charged with offenses related to a violent drug-trafficking organization that obtained multi-kilogram quantities of cocaine and marijuana from California for distribution in the Milwaukee area. As alleged, after distributing the drugs in the Milwaukee area, certain defendants shipped drug proceeds through the U.S. Postal Service to co-conspirators in California. Multiple defendants possessed and brandished firearms during the course of the drug trafficking conspiracy.
Included among the defendants is Louis R. Perez III, also known as “Eight Ball,” who is alleged to be a Mexican Posse gang member and the current leader of the nationwide drug trafficking organization. Several other Mexican Posse gang members have also been charged and arrested, including Manuel Soto and Antonio Rodriguez, who both allegedly distributed controlled substances in the Milwaukee area. Two California-based defendants, Julian Sanchez and Miguel Sarabia, are alleged to have supplied the drugs for distribution from California.
On September 22, 2020, federal, state, and local law enforcement officers executed arrest and search warrants related to this operation. Twenty-one of the defendants are now in custody. Law enforcement officers also executed over two dozen search warrants in Wisconsin and California, resulting in the recovery of at least 33 firearms, including a stolen Milwaukee Police Department firearm and a firearm with an obliterated serial number. As part of the operation, law enforcement also recovered over 700 grams of heroin from one location, as well as additional heroin, cocaine, and marijuana from other locations. Law enforcement also recovered approximately $170,000 in U.S. currency.
The following defendants are charged in the complaint:
Name
Age
Residence
Louis Rey PEREZ III
23
Milwaukee, WI
Xina YANG
22
Milwaukee, WI
Julian SANCHEZ
24
Costa Mesa, CA
Miguel SARABIA
45
Norwalk, CA
Gabriel MATTESON
22
La Mirada, CA
Louis Rey PEREZ, JR.
46
Milwaukee, WI
Manuel SOTO
28
Milwaukee, WI
Hauseng YANG
18
Milwaukee, WI
Antonio RODRIGUEZ
21
Milwaukee, WI
Hector ARENAS
27
Milwaukee, WI
Luis F. GOMEZ, JR.
19
Milwaukee, WI
Ivan J. GALAN
27
Milwaukee, WI
Jose A. ALVARADO
23
Milwaukee, WI
Esteban REYES
46
Milwaukee, WI
Kevin TAYLOR
28
Milwaukee, WI
Ma YANG
32
Milwaukee, WI
Mary YANG
29
Milwaukee, WI
Jasmine L. PEREZ
28
Milwaukee, WI
Michael BUB
33
Milwaukee, WI
Chong YANG
28
Milwaukee, WI
Michele M. HART
55
Milwaukee, WI
Mercedes HERBERT GONZALEZ
29
Milwaukee, WI
Azia YANG
18
Milwaukee, WI
Carina RODRIGUEZ
20
Milwaukee, WI
Ger YANG
20
Milwaukee, WI
Shayla A. KNUEPPEL
24
Milwaukee, WI
“We know that drug trafficking fuels gun violence, as traffickers maintain arsenals to enlarge their territory, protect their inventory, and intimidate others,” said U.S. Attorney Krueger. “That is why the Operation Legend strategy for Milwaukee includes joining federal, state, and local law enforcement resources to target violent drug traffickers. I commend the excellent partnerships that led to today’s charges.”
“The DEA is committed working with its local, state and federal law enforcement partners to keep the citizens of Milwaukee safe from drug trafficking and the violence that is always associated with it. Today’s arrests show the resolve of law enforcement to work together in order to identify, investigate, and prosecute individuals who profit from the national drug epidemic,” said DEA Milwaukee District Office Assistant Special Agent in Charge Paul E. Maxwell, Jr.
All defendants are charged in a conspiracy to distribute at least 5 kilograms of cocaine or 1000 kilograms of marijuana. If convicted, the defendants face a mandatory minimum of 10 years in prison and up to life in prison. Certain defendants are also charged in a conspiracy to launder money. The penalties for that offense include up to 20 years in prison. Certain defendants are charged with possession of a firearm in furtherance of drug trafficking. If convicted of those firearms charges, the defendants face a mandatory minimum of five years in prison and up to life in prison.
The defendants were charged based on a long-term investigation led by law enforcement agents and officers from the North Central High Intensity Drug Trafficking Area (HIDTA), the Wisconsin Department of Justice, Division of Criminal Investigations, the Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigation, the U.S. Postal Inspection Service, the Waukesha County Sheriff’s Office, the Milwaukee Police Department, and the Greenfield Police Department. Law enforcement resources allocated by Operation Legend contributed to the investigation and today’s enforcement operation. Assistant United States Attorney Elizabeth Monfils and Assistant United States Attorney Gail Hoffman are prosecuting the case.
The public is cautioned that a criminal complaint is merely a charge and the defendant is presumed innocent until and unless proven guilty.
# # #
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Public Information Officer Kenneth Gales 414-297-1700
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Attorney General William P. Barr Announces Updates on Operation LegendRead the Press Release
ST. LOUIS, MO -Attorney General William P. Barr announced, at a news conference in Milwaukee today, updates on Operation Legend.
Since Operation Legend’s launch in July 2020, more than 3,500 arrests – including approximately 200 for homicide – have been made; more than 1,000 firearms have been seized; and nearly 19 kilos of heroin, more than 11 kilos of fentanyl (enough to deliver more than five million fatal doses), more than 94 kilos of methamphetamine, nearly 14 kilos of cocaine, and more than $6.5 million in drug proceeds have been seized.
Of the more than 3,500 individuals arrested, approximately 815 have been charged with federal offenses. More than 440 of those defendants have been charged with firearms offenses, while more than 300 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses.
The Attorney General launched the operation as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime.
Breakdown of Operation Legend charges:
The initiative, which was first launched first in Kansas City, MO., on July 8, 2020, is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City. The operation was subsequently expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on August 6, 2020; and to Indianapolis on August 14, 2020. A breakdown of the federal charges in each district is below.
Kansas City, MO.
147 defendants have been charged with federal crimes outlined below.
- 54 defendants have been charged with narcotics-related offenses;
- 80 defendants have been charged with firearms-related offenses; and
- 13 defendants have been charged with other violent crimes.
Chicago, IL.
150 defendants have been charged with federal crimes outlined below.
- 37 defendants have been charged with narcotics-related offenses;
- 108 defendants have been charged with firearms-related offenses; and
- 5 defendants have been charged with other violent crimes.
Albuquerque, NM.
60 defendants have been charged with federal crimes outlined below.
- 23 defendants have been charged with narcotics-related offenses;
- 30 defendants have been charged with firearms-related offenses; and
- 7 defendants have been charged with other violent crimes.
Cleveland, OH.
72 defendants have been charged with federal crimes outlined below.
- 42 defendants have been charged with narcotics-related offenses;
- 26 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Detroit, MI.
65 defendants have been charged with federal offenses outlined below.
- 16 defendants have been charged with narcotics-related offenses;
- 46 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Milwaukee, WI.
47 defendants have been charged with federal crimes outlined below.
- 24 defendants have been charged with narcotics-related offenses;
- 19 defendants have been charged with firearms-related offenses; and
- 4 defendant has been charged with other violent crimes.
St. Louis, MO.
205 defendants have been charged with federal crimes.
- 93 defendants have been charged with narcotics-related offenses;
- 90 defendants have been charged with firearms-related offenses; and
- 22 defendants have been charged with other violent crimes.
Memphis, TN.
27 defendants have been charged with federal offenses.
- 10 defendants have been charged with narcotics-related offenses;
- 13 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Indianapolis, IN.
45 defendants have been charged with federal crimes outlined below.
- 7 defendants have been charged with narcotics-related offenses;
- 33 defendants have been charged with firearms-related offenses; and
- 5 defendants have been charged with other violent crimes.
Attorney General William P. Barr Announces Updates on Operation LeGend at Press Conference in MilwaukeeRead the Press Release
Charges Announced Against 26 Defendants Alleged to Operate a Violent Drug Trafficking Organization in Milwaukee
Memphis, TN – At a press conference in Milwaukee today, Attorney General William P. Barr announced updates on Operation LeGend. He was joined by Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, who announced charges against 26 defendants who allegedly operated a violent drug trafficking organization in Milwaukee. Law enforcement resources allocated by Operation LeGend contributed to the investigation and today’s enforcement operation.
Since Operation LeGend’s launch in July 2020, more than 3,500 arrests – including approximately 200 for homicide – have been made; more than 1,000 firearms have been seized; and nearly 19 kilos of heroin, more than 11 kilos of fentanyl (enough to deliver more than five million fatal doses), more than 94 kilos of methamphetamine, nearly 14 kilos of cocaine, and more than $6.5 million in drug proceeds have been seized.
Of the more than 3,500 individuals arrested, approximately 815 have been charged with federal offenses. More than 440 of those defendants have been charged with firearms offenses, while more than 300 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses.
The Attorney General launched the operation as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. A prime example of that partnership is the announcement made today by U.S. Attorney Krueger.
This morning, federal, state, and local law enforcement officers arrested 21 of the 26 defendants charged by criminal complaint with offenses related to a violent drug-trafficking organization that obtained multi-kilogram quantities of cocaine and marijuana
from California for distribution in the Milwaukee area. The officers also executed search warrants in both Milwaukee and California, resulting in the seizure of approximately 33 firearms, $170,000, and over 700 grams of heroin from one location, as well as additional heroin, cocaine, and marijuana from other locations.
Included among the defendants is Louis R. Perez III, also known as "Eight Ball," who is alleged to be a Mexican Posse gang member and the current leader of the nationwide drug trafficking organization. Several other Mexican Posse gang members have also been charged and arrested.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Breakdown of Operation LeGend charges:
The initiative, which was first launched first in Kansas City, MO., on July 8, 2020, is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City. The operation was subsequently expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020. A breakdown of the federal charges in each district is below.
Kansas City, MO.
147 defendants have been charged with federal crimes outlined below.
- 54 defendants have been charged with narcotics-related offenses;
- 80 defendants have been charged with firearms-related offenses; and
- 13 defendants have been charged with other violent crimes.
Chicago, Ill.
150 defendants have been charged with federal crimes outlined below.
- 37 defendants have been charged with narcotics-related offenses;
- 108 defendants have been charged with firearms-related offenses; and
- 5 defendants have been charged with other violent crimes.
Albuquerque, NM.
60 defendants have been charged with federal crimes outlined below.
- 23 defendants have been charged with narcotics-related offenses;
- 30 defendants have been charged with firearms-related offenses; and
- 7 defendants have been charged with other violent crimes.
Cleveland, OH.
72 defendants have been charged with federal crimes outlined below.
- 42 defendants have been charged with narcotics-related offenses;
- 26 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Detroit, MI.
65 defendants have been charged with federal offenses outlined below.
- 16 defendants have been charged with narcotics-related offenses;
- 46 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Milwaukee, WI.
47 defendants have been charged with federal crimes outlined below.
- 24 defendants have been charged with narcotics-related offenses;
- 19 defendants have been charged with firearms-related offenses; and
- 4 defendant has been charged with other violent crimes.
St. Louis, MO.
205 defendants have been charged with federal crimes.
- 93 defendants have been charged with narcotics-related offenses;
- 90 defendants have been charged with firearms-related offenses; and
- 22 defendants have been charged with other violent crimes.
Memphis, Tenn.
27 defendants have been charged with federal offenses.
- 10 defendants have been charged with narcotics-related offenses;
- 13 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Indianapolis, Indiana
45 defendants have been charged with federal crimes outlined below.
- 7 defendants have been charged with narcotics-related offenses;
- 33 defendants have been charged with firearms-related offenses; and
- 5 defendants have been charged with other violent crimes.
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Attorney General William P. Barr Announces Updates on Operation Legend at Press Conference in MilwaukeeRead the Press Release
At a press conference in Milwaukee today, Attorney General William P. Barr announced updates on Operation Legend. He was joined by Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, who announced charges against 26 defendants who allegedly operated a violent drug trafficking organization in Milwaukee. Law enforcement resources allocated by Operation Legend contributed to the investigation and today’s enforcement operation.
Since Operation Legend’s launch in July 2020, more than 3,500 arrests – including approximately 200 for homicide – have been made; more than 1,000 firearms have been seized; and nearly 19 kilos of heroin, more than 11 kilos of fentanyl (enough to deliver more than five million fatal doses), more than 94 kilos of methamphetamine, nearly 14 kilos of cocaine, and more than $6.5 million in drug proceeds have been seized.
Of the more than 3,500 individuals arrested, approximately 815 have been charged with federal offenses. More than 440 of those defendants have been charged with firearms offenses, while more than 300 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses.
The Attorney General launched the operation as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. A prime example of that partnership is the announcement made today by U.S. Attorney Krueger.
This morning, federal, state, and local law enforcement officers arrested 21 of the 26 defendants charged by criminal complaint with offenses related to a violent drug-trafficking organization that obtained multi-kilogram quantities of cocaine and marijuana from California for distribution in the Milwaukee area. The officers also executed search warrants in both Milwaukee and California, resulting in the seizure of approximately 33 firearms, $170,000, and over 700 grams of heroin from one location, as well as additional heroin, cocaine, and marijuana from other locations.
Included among the defendants is Louis R. Perez III, also known as “Eight Ball,” who is alleged to be a Mexican Posse gang member and the current leader of the nationwide drug trafficking organization. Several other Mexican Posse gang members have also been charged and arrested.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Breakdown of Operation Legend charges:
The initiative, which was first launched first in Kansas City, MO., on July 8, 2020, is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City. The operation was subsequently expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on August 6, 2020; and to Indianapolis on August 14, 2020. A breakdown of the federal charges in each district is below.
Kansas City, MO.
147 defendants have been charged with federal crimes outlined below.
- 54 defendants have been charged with narcotics-related offenses;
- 80 defendants have been charged with firearms-related offenses; and
- 13 defendants have been charged with other violent crimes.
Chicago, IL.
150 defendants have been charged with federal crimes outlined below.
- 37 defendants have been charged with narcotics-related offenses;
- 108 defendants have been charged with firearms-related offenses; and
- 5 defendants have been charged with other violent crimes.
Albuquerque, NM.
60 defendants have been charged with federal crimes outlined below.
- 23 defendants have been charged with narcotics-related offenses;
- 30 defendants have been charged with firearms-related offenses; and
- 7 defendants have been charged with other violent crimes.
Cleveland, OH.
72 defendants have been charged with federal crimes outlined below.
- 42 defendants have been charged with narcotics-related offenses;
- 26 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Detroit, MI.
65 defendants have been charged with federal offenses outlined below.
- 16 defendants have been charged with narcotics-related offenses;
- 46 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Milwaukee, WI.
47 defendants have been charged with federal crimes outlined below.
- 24 defendants have been charged with narcotics-related offenses;
- 19 defendants have been charged with firearms-related offenses; and
- 4 defendant has been charged with other violent crimes.
St. Louis, MO.
205 defendants have been charged with federal crimes.
- 93 defendants have been charged with narcotics-related offenses;
- 90 defendants have been charged with firearms-related offenses; and
- 22 defendants have been charged with other violent crimes.
Memphis, TN.
27 defendants have been charged with federal offenses.
- 10 defendants have been charged with narcotics-related offenses;
- 13 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Indianapolis, IN.
45 defendants have been charged with federal crimes outlined below.
- 7 defendants have been charged with narcotics-related offenses;
- 33 defendants have been charged with firearms-related offenses; and
- 5 defendants have been charged with other violent crimes.
Atlantic County Woman Admits Soliciting Act of Violence Against Ex-BoyfriendRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, woman today admitted that she paid a man that she believed to be a hitman $4,000 in October 2018 to assault her ex-boyfriend, U.S. Attorney Craig Carpenito announced.
Diane Sylvia, 60, of Somers Point, New Jersey, pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging her with one count of solicitation to commit a crime of violence with the intent to seriously injure another.
According to documents filed in this case and statements made in court:
In September 2018, Sylvia, a licensed clinical social worker with a private mental health counseling practice in Linwood, New Jersey, asked one of her patients, whom she had reason to believe was formerly involved in organized crime, whether the patient could recommend someone to her so that she could have her ex-boyfriend assaulted. Ultimately, an undercover FBI agent, posing as a hitman, met with Sylvia. In recorded meetings in her office and in telephone conversations, Sylvia described how she wanted the purported hitman to punch her ex-boyfriend’s face and break his arm. She told the purported hitman that her ex-boyfriend had stolen money from her and was extorting her.
On Oct. 31, 2018, Sylvia met with the FBI undercover agent in her office and paid him $4,000 in cash to carry out the assault. The agent told Sylvia to get rid of the pre-paid cell phone that she was using to communicate with him. Sylvia asked the purported hitman if she should throw the phone off the Ocean City Bridge. After the meeting, Sylvia was arrested by FBI agents.
The charge of solicitation to commit an act of violence carries a maximum punishment of five years in prison and a fine of $125,000. Sentencing is scheduled for Jan. 27, 2021.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the Camden Division.
Atlantic County Man Admits Drug and Firearm OffensesRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted possessing large quantities of heroin, cocaine, and methamphetamine, along with a firearm, U.S. Attorney Craig Carpenito announced.
Joseph Brandenberger, 35, of Absecon, New Jersey, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with possessing with intent to distribute 100 grams or more of heroin, 500 grams or more of cocaine, and 50 grams or more of methamphetamine, and possessing a firearm as a previously convicted felon.
According to documents filed in this case and statements made in court:
Brandenberger was arrested following an investigation that revealed he was using a rented storage unit to conceal a large cache of drugs and a firearm. Upon execution of a search warrant at the location on June 18, 2019, investigators seized 507.6 grams of heroin, 524.3 grams of cocaine, and 107.2 grams of methamphetamine, along with $1,812 in cash and drug packaging material. Investigators also found a loaded Tech-9 9mm handgun. As a previously convicted felon, Brandenberger is prohibited by federal law from possessing a firearm or ammunition.
The count of possession of heroin, cocaine and methamphetamine with intent to distribute carries a minimum of five years in prison and a maximum of 40 years in prison, and a $5 million fine. The firearm count carries a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 26, 2020.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason Molina, Newark Division; and inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Damon Wood, with the investigation leading to today’s guilty plea. He also thanked special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson; and the Absecon Police Department, under the direction of Chief James R. Laughlin, for their assistance with the case.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Armed Career Criminal Sentenced to 20 Years for Illegally Possessing Firearm and NarcoticsRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Jimmy Ray Lightsey (40, Jacksonville) to 20 years in federal prison for possessing a firearm in furtherance of a drug trafficking crime, possessing controlled substances with the intent to distribute them, and possessing a firearm as a convicted felon. A jury found Lightsey guilty on January 23, 2020.
According to testimony presented at trial, on June 24, 2018, officers from the Jacksonville Sheriff’s Office arrested Lightsey for driving without a valid license. A 9mm pistol and a bag of marijuana were observed, in plain view, inside Lightsey’s car. A search of the vehicle revealed additional marijuana, cocaine, crack cocaine, and empty baggies used for packaging narcotics. The pistol was later determined to have been stolen from a home in Jacksonville approximately two weeks earlier. At the time of the incident, Lightsey had multiple prior felony convictions, including for the sale or delivery of cocaine and attempted armed robbery with a weapon.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorneys David B. Mesrobian and Beatriz Gonzalez.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Antiquities Dealers Arrested for Fraud SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in Manhattan federal court charging ERDAL DERE, the owner and operator of the Manhattan-based antiquities gallery Fortuna Fine Arts Ltd. (“Fortuna”), and his longtime business associate and co-conspirator, FAISAL KHAN, with engaging in a years-long scheme to defraud buyers and brokers in the antiquities market by using false provenances to offer and sell antiquities. DERE is also charged with aggravated identity theft for his misappropriation of the identities of deceased collectors who were falsely represented to be the prior owners of the antiquities.
Federal law enforcement agents arrested DERE this morning at his residence in New York, New York. KHAN was also arrested this morning at his residence in New Jersey. Both DERE and KHAN will be presented later today before U.S. Magistrate Judge Sarah Netburn.
Acting U.S. Attorney Audrey Strauss said: “The integrity of the legitimate market in antiquities rests on the accuracy of the provenance provided by antiquities dealers, which prevents the sale of stolen and looted antiquities that lack any legitimate provenance. As alleged, Erdal Dere and Faisal Khan compromised that integrity, and defrauded buyers and brokers of the antiquities they sold, by fabricating the provenance of those antiquities, and concealing their true history. Now, thanks to the FBI’s Art Crime Team, Dere and Khan are in custody and facing prosecution for their alleged crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “Antiquities and art allow us to see a piece of history from a world that existed hundreds and, in some cases, thousands of years ago. As alleged, the men who trafficked in fake documents and used dead people’s names to bolster their lies had no care for the precious items they sold and no regard for the people they defrauded. We are asking anyone who may have dealt with Mr. Dere or Mr. Khan to contact us at [email protected]. You may have been a victim of their alleged scheme.”
According to the allegations in the Indictment[1] unsealed today in Manhattan federal court:
From approximately 2015 through September 2020, DERE and KHAN engaged in a scheme to defraud buyers and brokers in the antiquities market by providing false information regarding the provenance of antiquities they offered for sale. Specifically, DERE and KHAN falsely claimed that various deceased collectors of antiquities were the prior owners of items being sold and offered for sale, in order to conceal the true provenance of the antiquities and the sources from which Fortuna had acquired them.
DERE communicated the false provenances featuring the names of deceased collectors to buyers and brokers. DERE also fabricated documents purporting to evidence the prior ownership of antiquities by the deceased collectors, and provided them to buyers and brokers, including to an auction house in New York, New York in connection with a December 2015 antiquities auction.
KHAN assisted Fortuna in finding buyers for items from its pre-existing inventory and acquired new items, primarily in Asia, that KHAN worked with Fortuna to sell to collectors in the United States and internationally. With KHAN’s knowledge, DERE provided false provenance information to potential buyers of items that KHAN had personally located and acquired, listing deceased collectors as the long-time owners of items which KHAN and DERE well knew had not been owned by those collectors.
* * *
DERE, 50, of New York, New York, was charged in the Indictment with wire fraud conspiracy, wire fraud, and aggravated identity theft. The wire fraud conspiracy charge carries a maximum prison term of 20 years. The wire fraud charge carries a maximum prison term of 20 years. The aggravated identity theft charge carries a mandatory sentence of two years in prison.
KHAN, 47, of Flanders, New Jersey, was charged in the Indictment with wire fraud conspiracy and wire fraud. The wire fraud conspiracy charge carries a maximum prison term of 20 years. The wire fraud charge carries a maximum prison term of 20 years.
The statutory maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge.
Ms. Strauss praised the investigative work of the FBI/NYPD Joint Major Theft Task Force/Art Crime Team. In addition, Ms. Strauss thanked authorities in Germany, Italy, the United Kingdom, Spain, and France, as well as the United States Justice Department’s Office of International Affairs of the Department’s Criminal Division, the FBI’s Legal Attaché in Frankfurt, Germany, and the New York City Police Department for their assistance.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Jessica Greenwood is in charge of the prosecution.
To report information related to this case, please contact the FBI’s Art Crime Team at [email protected].
The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Allentown Man and Former Fugitive Sentenced to Three Years for Stealing Stepfather’s Identity, Retirement SavingsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Erick Wandique, 26, of Allentown, Pennsylvania was sentenced to three years in prison, three years of supervised release, and was ordered to pay restitution in the amount of $87,657 and forfeiture in the same amount by United States District Court Judge Edward G. Smith for his scheme to impersonate, and steal from, his stepfather.
In March 2020, the defendant pleaded guilty to eight counts of wire fraud and one count of aggravated identity theft, after being charged with a nine-count Indictment in August 2016. The charges arose from Wandique’s electronic communications with Fidelity Investments in which he pretended to be his stepfather, Luis Flores, in order to authorize fraudulent bank transactions and debit purchases, resulting in the depletion of nearly all of Flores’ Fidelity retirement account.
From December 2014 through March 2015, Wandique went on a spending spree utilizing his stepfather’s retirement savings: withdrawing cash, making wire transfers of funds, arranging payments through the BillPay service for the account, making debit purchases at retail stores, and even taking his friends on a trip to California. After a family member confronted him about his inexplicable newfound income and spending, the defendant fled the United States by flying to Honduras, which does not have an extradition agreement with the United States. On August 25, 2019, the defendant was arrested after he attempted to reenter the United States on a flight to New Orleans, LA.
“It’s hard to imagine victimizing your own family, but Wandique took advantage of an opportunity to do just that,” said First Assistant U.S. Attorney Williams. “Here, the defendant drained his stepfather’s lifetime of savings – money earned to support himself in retirement – and when his family and the law caught on to him, Wandique fled the country. If you are charged in the Eastern District of Pennsylvania with a federal offense, we will find you and hold you accountable for your actions.”
“Mr. Wandique’s sentencing underscores the importance of vigilance against financial fraud schemes,” said Brian A. Michael, Special Agent in Charge of Homeland Security Investigations Philadelphia. “Even after Mr. Wandique fled from prosecution, Homeland Security Investigations worked closely with Interpol and international partners to ensure he was apprehended and brought to justice. Mr. Wandique will now be held accountable for swindling his family member.”
“Today’s sentencing is the culmination of years of collaboration between the Pennsylvania State Police and its federal law enforcement partners to seek justice for the victim in this case,” said Major Jeremy Richard, director of the Pennsylvania State Police Bureau of Criminal Investigation. “Despite occurring behind the anonymity of a computer, wire fraud and identity theft are serious crimes that can quickly erase a lifetime of savings from unsuspecting victims and devastated families.”
The case was investigated by the Department of Homeland Security Investigations, Customs and Border Protection, Interpol, and the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorney Christopher Diviny.
Alleged Southern California Narcotics Traffickers Among Those Charged in International Crackdown Targeting Dark-net DealersRead the Press Release
LOS ANGELES – As part of an international effort to disrupt narcotics trafficking on the dark-net, members of the Los Angeles Joint Criminal Opioid and Dark-net Enforcement (JCODE) Task Force today announced cases brought as a result of Operation DisrupTor. The cases charge members of a Southern California drug trafficking organization who allegedly distributed methamphetamine and other illicit narcotics to thousands of customers in at least 35 states and numerous countries around the world.
An alleged methamphetamine trafficker who was a key supplier to the Los Angeles-based organization is being sought after being charged last week with possession with the intent to distribute methamphetamine. Earlier this year, five other members of the narcotics ring were arrested on federal charges, and authorities made substantial seizures of narcotics and cryptocurrency.
Operation DisrupTor builds on the success of prior actions targeting dark-net vendors, including the takedown of Wall Street Market, which was one of the world’s largest dark web marketplaces. Following the Wall Street Market takedown in May 2019 and the filing of federal charges in Los Angeles against the administrators, law enforcement in the United States and Europe obtained intelligence that allowed them to identify dark-net drug traffickers.
“These online black market websites use a variety of technologies, including the Tor network and other encryption technologies, to ensure that communications and transactions are shielded from interception and monitoring,” according to court documents filed last week in Los Angeles. “A famous dark web marketplace, Wall Street Market, operated similar to legitimate commercial websites such as Amazon and eBay, but offered illicit goods and services” in exchange for virtual currencies, such as Bitcoin.
“Through the outstanding efforts of the JCODE Task Force, we have been able to unmask those hiding on the dark-net, bringing to justice a wide array of criminals, including those operating online marketplaces, laundering cryptocurrency, and spreading drugs around the world,” said United States Attorney Nick Hanna. “My prosecutors and their JCODE partners will continue to rein in illegal dark web activities by disrupting other traffickers and those who help them access their illicit cryptocurrency.”
“American citizens endure the unfortunate consequences of dark-web marketplaces where criminals get rich by exploiting those suffering through an opioid epidemic while evading law enforcement scrutiny,” said John F. Bennett, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This case and others should send a message that law enforcement has infiltrated the perceived anonymity of the dark-web and possesses the tools to identify and hold accountable individuals and groups responsible for illegal trafficking and the devastating toll it takes on humanity in the United States and abroad.”
“Together with our partners, HSI remains at the forefront of combating narcotics trafficking, financial crimes and illicit activities purveyed by online black markets,” said David A. Prince, Special Agent in Charge for Homeland Security Investigations (HSI) in Los Angeles. “We have proven, once again, that these illicit activities on the dark-net will not be tolerated in the United States. While criminal operators may continue to grow the reach of their businesses through these dark web marketplaces, the fact is that no matter how or where these crimes are committed, nothing is beyond the reach of the law.”
“Members of the Stealthgod crew have discovered that not even the dark-net could shield their criminal activities from the watchful eyes of Postal Inspectors and our law enforcement partners,” said Inspector in Charge Patricia Armstrong of the U.S. Postal Inspection Service, Los Angeles Division. “The alleged drug traffickers miscalculated when they chose to use the U.S. Mail to further their crimes, and they will face a very severe price.”
During Operation DisrupTor, the Los Angeles JCODE Task Force successfully dismantled a drug trafficking organization that used online monikers such as “Stealthgod” to sell methamphetamine and MDMA on multiple dark-net marketplaces, including Wall Street Market. Investigators have linked the crew to more than 18,000 illicit drug sales to customers around the world. During an operation earlier this year, members of JCODE executed search warrants that led to the seizure of more than 60 parcels containing narcotics that were ready to be shipped to more than 35 states around the nation.
Andres Bermudez, 37, of Palmdale, who allegedly was a key supplier of methamphetamine to the “Stealthgod” crew, was named in a criminal complaint filed on September 18. An affidavit in this case outlines how Bermudez allegedly supplied methamphetamine to the “Stealthgod” drug trafficking organization and details negotiations involving transactions of 30 pounds and 40 pounds of methamphetamine. Bermudez is currently a fugitive being sought by federal authorities.
During law enforcement actions in the City of Los Angeles in February, members of JCODE arrested five defendants allegedly at the center of the “Stealthgod” organization and seized approximately 120 pounds of methamphetamine, seven kilograms of MDMA (“ecstasy”), and five firearms (photo of seizure). The five defendants arrested on federal charges are:
- Teresa McGrath, 34, of Sunland-Tujunga, who allegedly delivered dozens of narcotics-laden packages to a post office in Sunland;
- Rane Melkom, 35, of Sunland-Tujunga, who shared a residence with McGrath where authorities seized more than 50 pounds of methamphetamine, nearly 15 pounds of MDMA, approximately 30,000 Adderall pills, cash, and three loaded handguns;
- Mark Chavez, 41, of downtown Los Angeles, whose bedroom yielded nearly 40 pounds of methamphetamine and two handguns during a search in February;
- Matthew Ick, 51, of downtown Los Angeles, who is linked in court papers to a narcotics shipment to the organization; and
- Thomas Olayvar, 43, of downtown Los Angeles, who allegedly was involved in the shipment of narcotics through the United States Postal Service.
McGrath has pleaded guilty to conspiracy to distribute methamphetamine and MDMA, possession of a firearm in furtherance of drug trafficking, and cryptocurrency money laundering, admitting that over the course of about six months she received approximately $161,916 in Bitcoin and helped disburse this money to her co-conspirators.
Chavez has pleaded guilty to conspiring to distribute methamphetamine and MDMA, as well as possessing a firearm in furtherance of drug trafficking.
McGrath and Chavez are scheduled to be sentenced next year, when each will face a mandatory minimum sentence of 15 years in federal prison.
Melkom, Ick, and Olayvar face various narcotics charges alleged in criminal informations. These defendants are currently scheduled to go on trial next year.
The cases stemming from the investigation into the “Stealthgod” organization are being prosecuted by Assistant United States Attorneys Puneet Kakkar and Keith Ellison of the International Narcotics, Money Laundering, and Racketeering Section.
As the investigation into the “Stealthgod” crew continued, the Los Angeles JCODE Task Force made additional seizures, including $1.6 million in cryptocurrency, three firearms, 11 pounds of methamphetamine and 14 pounds of pills pressed with methamphetamine.
In addition to the Operation DistrupTor cases related to “Stealthgod,” federal prosecutors in Los Angeles have filed cases against other alleged dark-net narcotics traffickers and those who help them convert bitcoin into fiat currency. For example:
· Kais Mohammad, 36, of Yorba Linda, is scheduled to plead guilty on Thursday to federal charges stemming from the operation of 17 Bitcoin kiosks across Southern California. In his plea agreement, Mohammad admitted that he knew that at least one of his clients was engaged in illicit activity on the dark web. This matter is being prosecuted by Assistant United States Attorney Puneet Kakkar.
· Earlier this year, three people linked to the online moniker “Aeirla” were sentenced to federal prison for conspiring to distribute methamphetamine and cocaine to customers who negotiated transactions on the dark-web. Those defendants are:
• Anh Pham, 49, of Hawaiian Gardens, was sentenced to 80 months in federal prison;
• Joseph Michael Gifford, 43, of La Crescenta, was sentenced to three years’ imprisonment; and
• Carlos Miguel Gallardo, 60, Hawaiian Gardens, was sentenced to serve 18 months in federal prison.
Pham sold pound quantities of methamphetamine on the dark-net, while Gifford and Gallardo packaged them – in toys, a beach ball, and boxes of Christmas cards and chocolates – and shipped them to customers nationwide. The “Aeirla” case was prosecuted by Assistant United States Attorney Christopher Kendall of the International Narcotics, Money Laundering, and Racketeering Section.
· Five defendants are scheduled to be tried in October 2021 in United States District Court in Los Angeles on various narcotics trafficking charges that allege they used the monikers “Drugpharmacist” and “RickandMortyShop” to sell cocaine, heroin, methamphetamine and crack cocaine on Wall Street Market and another dark-net marketplace called Dream. Members of the conspiracy allegedly shipped narcotics in small vials concealed inside stuffed animals. The defendants scheduled to go on trial are: Jerrell Eugene Anderson, 30, of Inglewood; Christopher Canion Van Holton, 33, of Valencia; Adan Sepulveda, 28, of Lancaster; Kenneth Lashawn Hadley, 33, of Lancaster; and Jackie Walter Burns, 22, of Lancaster. Anderson and Sepulveda face a charge of distribution of heroin resulting in death in relation to a shipment of heroin to a customer in Knoxville, Tennessee, who suffered a fatal overdose. This case is being prosecuted by Assistant United States Attorneys Khaldoun Shobaki and Lauren Restrepo of the Cyber and Intellectual Property Crimes Section.
· Kunal Kalra, 26, of Westwood, was sentenced in March to 18 months in federal prison after pleading guilty to federal narcotics and anti-money laundering charges related to his unlicensed money transmitting business that he used to exchange virtual currency for cash for dark-net vendors. This matter, which was prosecuted by Assistant United States Attorney Puneet Kakkar, was the first federal case in the nation charging an unlicensed money remitting business that used a Bitcoin kiosk.
· A father and his son who distributed methamphetamine on the dark-net using monikers such “Quartersandup,” “Tenderwoodcock,” “Colsandersdream,” and “colonelsanders” were sentenced to federal prison last year. William Glarner III, 65, of Huntington Beach, was convicted at trial and sentenced to 15 years. His son, William Glarner IV, 35, of Irvine, pleaded guilty and was sentenced to 10 years. This case was prosecuted by Assistant United States Attorneys Puneet Kakkar and Kathy Yu.
· Tyler Reeves, a 30-year-old Irvine man who sold narcotics on Wall Street Market under the moniker “Platinum45,” was sentenced last year to 10 years in federal prison. This matter was prosecuted by Assistant United States Attorney Puneet Kakkar.
Indictments and criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The “Stealthgod” cases are the result of an investigation by the Los Angeles JCODE Task Force, which is comprised of several federal agencies, including the FBI, Homeland Security Investigations and the United States Postal Inspection Service.
The Drug Enforcement Administration provided substantial support during the “Stealthgod” investigation. The Los Angeles Police Department and Los Angeles Sheriff’s Department also participated in the “Stealthgod” investigation. The United States Attorney’s Office for the Northern District of California also provided assistance.
The dark-net investigations discussed in this announcement were conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
Acting Manhattan U.S. Attorney Announces $11.5 Million Settlement with Biotech Testing Company for Fraudulent Billing and Kickback PracticesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS OIG”), and Leigh-Alistair Barzey, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Defense - Office of Inspector General’s Defense Criminal Investigative Service (“DCIS”), announced today an $11.5 million settlement of a False Claims Act case against BIO-REFERENCE LABORATORIES, INC. (“BRL”), a New Jersey-based biotechnology company that provides molecular and diagnostic tests. The settlement resolves claims that from 2009 to 2012, BRL fraudulently billed federal healthcare programs for testing conducted on hospital inpatients that should have been billed to the hospitals instead, and that BRL knowingly donated the cost of electronic medical records software to physicians’ offices throughout the country based solely on the volume of business generated by those practices, in violation of the False Claims Act and the federal Anti-Kickback Statute. Under the settlement approved by U.S. District Judge George B. Daniels, BRL will pay $11,500,960.00 to the United States to resolve the fraudulent billing and kickback claims. BRL also made extensive admissions regarding the company’s conduct.
Acting U.S. Attorney Audrey Strauss said: “Bio-Reference Labs received millions of dollars from federal healthcare programs through its fraudulent billing and kickback schemes. The company knowingly and recklessly billed the government for tests it should have billed to the hospitals instead, and provided kickbacks to doctors in order to induce them to order more tests. Our Office will continue to hold healthcare providers accountable when they engage in fraud and other illegal conduct.”
HHS Special Agent in Charge Scott Lampert said: “The irresponsible behavior by Bio-Reference Labs compromised the integrity of the Medicare program, and wasted millions of taxpayer dollars. Working with our law enforcement partners, HHS-OIG will continue to ensure that healthcare providers that do business with federally funded health care programs do so in an honest fashion.”
DCIS Special Agent in Charge Leigh-Alistair Barzey said: “Fraudulent billing and kickback schemes threaten the integrity of TRICARE, the Defense Department's healthcare system for military members and their families. Today’s settlement is the result of a joint effort and it demonstrates the DCIS’s ongoing commitment to work with the USAO-SDNY and HHS-OIG to investigate and prosecute companies that seek to fraudulently profit at the expense of federal health care plans.”
As alleged in the Complaint filed in Manhattan federal court:
Fraudulent Billing Practices & Kickback Scheme
From 2009 through 2012, BRL knowingly and willfully billed Medicare and Tricare for certain testing performed for hospital inpatients that should have been paid by the hospitals themselves. As a result, BRL received reimbursement from Medicare and Tricare for tests that the federally funded programs had already paid for, because hospitals receive payments for all items and services provided to the patient under the inpatient prospective payment system (“IPPS”), unless an exemption applies, which is inapplicable here.
In addition, in violation of the Anti-Kickback Statute, BRL knowingly and willfully offered and paid remuneration, in the form of a percentage of the cost of electronic medical records software, to physicians based on the volume of business generated by those physicians in order to induce them to use BRL’s services. The Anti-Kickback Statute prohibits medical service providers, such as testing facilities, from paying any remuneration to providers in order to induce them to refer medical services.
As part of the settlement approved today, BRL admitted, acknowledged, and accepted responsibility for the following conduct:
Inpatient Testing Claims
- From 2009 through 2012, BRL billed Medicare and Tricare for certain testing (i) listed on the Clinical Lab Fee Schedule (“CLFS”) and (ii) performed on beneficiaries who were hospital inpatients at the time of service.
- Specifically, from 2009-2012, approximately 2.51% of all of BRL’s Medicare and Tricare billing originating from hospitals consisted of testing performed on hospital inpatients and listed on the CLFS.
- For example, from 2009-2012, BRL did not bill Triad of Alabama/Flowers Hospital in Dothan, Alabama (“Triad”), for any inpatient testing. As a result, from 2009-2012, BRL improperly billed Medicare and Tricare for approximately 2.51% of all testing BRL performed for Triad and its associated pathology practices on behalf of Medicare or Tricare beneficiaries.
- In 2009, BRL’s requisition form – the form BRL provided to hospitals to order tests for their patients – did not contain any place for a hospital to indicate whether the patient was an inpatient or an outpatient. But as of at least January 2010, BRL management had a clear understanding of the necessity to bill hospitals – and not Medicare or Tricare – for testing performed on hospital inpatients and listed on the CLFS. Indeed, on January 27, 2010, the Director of Genpath Accounts Receivable wrote to management, “I’m afraid that we can end up billing Medicare for hospital patients.” Nevertheless, the requisition forms remained the same, and through at least 2012, BRL billed Medicare and Tricare for hospital inpatient testing listed on the CLFS.
Software Cost Donations- In addition, from 2009 through 2012, BRL provided a percentage of the cost of electronic medical records transition software (“EMR Software”) to physicians’ offices based on the volume of business generated by those offices.
- Specifically, from 2009 through 2012, BRL engaged in a practice – at the direction of its management – entitled the “3 to 1 calculation,” meaning that BRL conditioned the provision of payment for EMR Software to physicians’ offices on whether a physician’s office would generate revenue equal to three times the value of the EMR Software BRL provided.
- For example, on January 24, 2009, a BRL employee, in an email to BRL management, applied the 3 to 1 calculation to a particular physician’s office and suggested that BRL provide the payment for EMR Software, but noted, “You find the legal way to say that. I don’t feel they will make us put it in writing.”
- Similarly, on January 7, 2011, BRL management evaluated a BRL salesperson’s request for payment for EMR Software to a particular physician’s office, and directed that salesperson to “[b]uild volume to meet 3x rule.”
- During this timeframe, BRL provided payment for EMR Software based on this formula to 69 separate physicians’ offices.
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BRL agreed to pay a total of $11,500,960.00 to resolve these claims: $1,396,386 to resolve the Inpatient Testing Claims and $10,104,574 to resolve the Software Cost Donation claims. OPKO Health Inc. (“OPKO”), which merged with BRL in 2015, will serve as guarantor of BRL’s obligation to pay the settlement amount.
In connection with the filing of the lawsuit and settlement, the Government joined two private whistleblower lawsuits that had previously been filed under seal pursuant to the False Claims Act.
Ms. Strauss thanked HHS-OIG and DCIS for their assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Michael Byars and Ellen Blain are in charge of the case.
Monday 21 September 2020
Wolf Point man admits distributing meth on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS – A Wolf Point man accused of selling meth in a casino on the Fort Peck Indian Reservation admitted methamphetamine trafficking charges today, U.S.
Attorney Kurt Alme said.Chance Justin Redstone, also known as CJ Redstone, 35, pleaded guilty to distribution of meth. Redstone faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Judge Morris set sentencing for Jan. 14, 2021. Redstone was released.
The prosecution said in court documents that during investigations into drug trafficking on the Fort Peck Indian Reservation in 2018 and 2019, Redstone was identified by cooperating witnesses as a meth dealer. In April 2018, law enforcement arranged for a confidential source to buy meth from Redstone. Redstone and the confidential source met inside the Silver Wolf casino in Wolf Point where the confidential source bought meth from Redstone and then left the business. The meth purchased from Redstone totaled about 13 grams.
Assistant U.S. Attorney Cassady Adams is prosecuting the case, which was investigated by the FBI, Bureau of Indian Affairs, Fort Peck Tribes Department of Law and Justice, and the Drug Enforcement Administration.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Wisconsin Man Sentenced for Schemes that Defrauded Illinois Company of More Than $9 MillionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEVEN C. GOLD, 47, of Pleasant Prairie, Wisconsin, was sentenced today by U.S. District Judge Janet C. Hall to 36 months of imprisonment, followed by three years of supervised release, for participating in two separate schemes that defrauded his former employer of more than $9 million.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, Gold and John T. Finkle III were employed by JST, a supplier of electronic components based in Waukegan, Illinois. Finkle, of East Haven, was primarily employed in sales for JST and Gold operated the accounting and billing systems for the company. Between approximately February 2015 and December 2018, Finkle conspired with Kenneth Pedroli, and Gold, to defraud JST through a scheme involving purchases of electronic components that Pedroli made from JST for a business he operated in Islandia, New York. As part of the scheme, Finkle instructed Pedroli to place his orders and list prices at a fraction of JST’s published prices. After Pedroli’s orders were submitted to JST at the discounted prices, the products were shipped from JST to Pedroli. Finkle instructed Pedroli to pay only a portion of the invoiced price and to make the payments directly to Finkle, which Pedroli did. Finkle deposited the payments into his personal checking account, and provided a portion of the funds to Gold, who manipulated the accounting records of JST to make it appear that Pedroli had paid JST for the products he received.
JST was defrauded of $3,359,058.69 through this scheme.
During the investigation of the scheme involving Finkle and Pedroli, investigators uncovered an additional $6,060,151 that Gold had stolen from JST by accessing and manipulating JSTs accounting system. Gold used the stolen funds to pay for personal expenses that included vacations, online gambling, home improvement costs, furniture, clothes, restaurants, college tuition, and car payments. He also unlawfully transferred hundreds of thousands of dollars in JST funds to his wife’s company.
Judge Hall ordered Gold to pay restitution of $9,419,209.69
On February 21, 2020, Gold pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of wire fraud.
Gold, who is released on a $500,000 bond, is required to report to prison on December 2, 2020.
Finkle and Pedroli previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. On November 22, 2019, Finkle was sentenced to 24 months of imprisonment. On December 12, 2019, Pedroli was sentenced to three years of probation.
This investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Ray Miller of the District of Connecticut, and Assistant U.S. Attorney Jacqueline Stern of the Northern District of Illinois.
Wichita Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
WICHTA, KAN. – A Wichita man pleaded guilty today to drug and gun charges, U.S. Attorney Stephen McAllister said.
Luis M. Hernandez, 40, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of unlawful possession of firearms by an alien unlawfully in the United States.
According to court documents, investigators found 20 pounds of methamphetamine and 11 firearms when they served a search warrant at Hernandez’s residence in the 300 block of North Seneca.
Sentencing is set for Dec. 16. He could face a penalty of not less than 10 years in federal prison and a fine up to $10 million on the conspiracy count and up to 10 years and a fine up to $250,000 on the firearm charge. McAllister commended the Wichita Police Department, the FBI Safe Streets Task Force and Assistant U.S. Attorney Debra Barnett for their work on the case.
Weleetka Man Pleads Guilty to Abusive Sexual Contact in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kyle Elliott Leitka, age 31, of Weleetka, Oklahoma entered a guilty plea to Abusive Sexual Contact In Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153, 2244(b) and 2246(3), punishable by not more than 2 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about June 22, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, knowingly engaged and attempted to engage in abusive sexual contact with the victim.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States at the plea hearing.
UK National Sentenced to Prison for Role in “the Dark Overlord” Hacking GroupRead the Press Release
A United Kingdom national pleaded guilty today to conspiring to commit aggravated identity theft and computer fraud, and was sentenced to five years in federal prison.
U.S. District Judge Ronnie White for the Eastern District of Missouri sentenced Nathan Wyatt, 39, who participated in a computer hacking collective known as “The Dark Overlord,” which targeted victims in the St. Louis area beginning in 2016. Wyatt was extradited from the United Kingdom to the Eastern District of Missouri in December 2019. Judge White also ordered Wyatt to pay $1,467,048 in restitution.
“Nathan Wyatt used his technical skills to prey on Americans’ private data and exploited the sensitive nature of their medical and financial records for his own personal gain,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Today’s guilty plea and sentence demonstrate the department’s commitment to ensuring that hackers who seek to profit by illegally invading the privacy of Americans will be found and held accountable, no matter where they may be located.”
“The Dark Overlord has victimized innumerable employers in the United States, many of them repeatedly, said U.S Attorney Jeff Jensen of the Eastern District of Missouri. “I am grateful to the victims who came forward despite ransom threats and to the prosecutors and agents who were the first to catch and punish a member of The Dark Overlord in the United States.”
“Cyber hackers mistakenly believe they can hide behind a keyboard,” said Special Agent in Charge Richard Quinn of the FBI’s St. Louis Field Office. “In this case, the FBI demonstrated once again that it will impose consequences on cyber criminals no matter how long it takes or where they are located.”
Wyatt admitted that, beginning in 2016, he was a member of The Dark Overlord, a hacking group that was responsible for remotely accessing the computer networks of multiple U.S. companies without authorization. Victims in the Eastern District of Missouri included healthcare providers, accounting firms, and others. Wyatt admitted that The Dark Overlord co-conspirators acted by obtaining sensitive data from victim companies, including patient medical records and personal identifying information, and then threatening to release the companies’ stolen data unless the companies paid a ransom of between $75,000 and $350,000 in bitcoin.
Wyatt further admitted that he participated in the conspiracy by creating, validating, and maintaining communication, payment, and virtual private network accounts that were used in the course of the scheme to, among other things, send threatening and extortionate messages to victims within the Eastern District of Missouri.
The investigation was conducted by the FBI’s St. Louis Field Office. Support was also provided by the FBI’s Atlanta Field Office. The Justice Department’s Office of International Affairs coordinated the extradition of Wyatt. The department thanks law enforcement authorities in the United Kingdom, including the Metropolitan Police Service, for their substantial assistance in the investigation.
Senior Counsel Laura-Kate Bernstein of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Gwendolyn Carroll prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Taxpayer in Panama Papers Investigation Sentenced to PrisonRead the Press Release
A former U.S. resident and taxpayer was sentenced in the Southern District of New York to four years in prison for wire fraud, tax fraud, money laundering, false statements, and other charges.
Harald Joachim von der Goltz, aka H.J von der Goltz, Johan von der Goltz, Jochen von der Goltz, Tica, and Tika, 83, of Needham, Massachusetts, and Key Biscayne, Florida, pleaded guilty to one count of conspiracy to commit tax evasion; 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 two counts of false statements before U.S. District Judge Richard M. Berman. In addition to the prison term, Judge Berman ordered von der Goltz to serve three years of supervised release, to pay forfeiture in the amount of $5,373,609 and restitution in the amount of $3,448,848, and to pay a fine in the amount of $30,000.
Von der Goltz was charged along with Ramses Owens, Dirk Brauer, and Richard Gaffey, aka Dick Gaffey, in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (Mossack Fonseca), a Panamanian-based global law firm, and its related entities. Von der Goltz previously pleaded guilty to the charges, and was sentenced today by U.S. District Judge Richard M. Berman.
“Harald Joachim von der Goltz sought to conceal his considerable wealth through a sham foreign foundation and various shell companies. But his decades-long scheme to evade his tax obligations and defraud the U.S. government came to an end today thanks to the tireless efforts of U.S. law enforcement,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “No matter how complicated the scheme, the U.S. government will bring to justice those who attempt to evade their tax obligations under the law. In particular, I would like to recognize the outstanding work of the Internal Revenue Service in this case.”
“Harald Joachim von der Goltz, a one-time U.S. resident, previously admitted to an elaborate scheme to evade millions in taxes owed to the IRS,” said Acting U.S. Attorney Audrey Strauss of the Southern District of New York. “Von der Goltz was abetted by the specialized criminal services of the law firm Mossack Fonseca to conceal income and assets in shell companies and off-shore bank accounts. Now von der Goltz has been sentenced to four years in federal prison for his conduct.”
According to the allegations contained in the indictments, other filings in this case, and statements during court proceedings, including von der Goltz’s guilty plea and sentencing hearings:
Since at least 2000 through 2017, von der Goltz conspired with others to conceal his 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, 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, including income and capital gains generated in domestic and foreign bank accounts. Nevertheless, von der Goltz evaded his tax reporting obligations by setting up a series of shell companies and bank accounts, and hiding his beneficial ownership of the shell companies and bank accounts from the IRS. These shell companies and bank accounts made investments totaling tens of millions of dollars.
Von der Goltz was assisted in this scheme through the use of Mossack Fonseca, including Owens, a Panamanian lawyer who previously worked at Mossack Fonseca, and by Gaffey, a partner at a U.S.-based accounting firm. Specifically, in furtherance of von der Goltz’s efforts to conceal his assets and income from the IRS, von der Goltz engaged the services of Mossack Fonseca, including Owens, to create a sham foundation and shell companies formed under the laws of Panama and the British Virgin Islands to conceal from the IRS and others the ownership by von der Goltz of accounts established at overseas banks, as well as the income generated in those accounts. Von der Goltz, Gaffey, and Owens also 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.
Gaffey previously pled guilty and is scheduled to be sentenced by Judge Berman on Sept. 24, 2020, at 10:30 a.m. EDT. 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, and thanked the Justice Department’s Tax Division and the FBI for their significant assistance in the investigation. The Justice Department’s Office of International Affairs 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. Taxpayer in Panama Papers Investigation Sentenced to 4 Years 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 HARALD JOACHIM VON DER GOLTZ, a/k/a “H.J. von der Goltz,” a/k/a “Johan von der Goltz,” a/k/a “Jochen von der Goltz,” a/k/a “Tica,” a/k/a “Tika,” was sentenced in Manhattan federal court to 48 months in prison for wire fraud, tax fraud, money laundering, false statements, and other charges. VON DER GOLTZ, a former U.S. resident and taxpayer, was charged along with Ramses Owens, Dirk Brauer, and Richard Gaffey, a/k/a “Dick Gaffey,” in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (“Mossack Fonseca”), a Panamanian-based global law firm, and its related entities. VON DER GOLTZ previously pleaded guilty to the charges, and was sentenced today by U.S. District Judge Richard M. Berman.
Acting U.S. Attorney Audrey Strauss said: “Harald Joachim von der Goltz, a one-time U.S. resident, previously admitted to an elaborate scheme to evade millions in taxes owed to the IRS. Von der Goltz was abetted by the specialized criminal services of the law firm Mossack Fonseca to conceal income and assets in shell companies and off-shore bank accounts. Now von der Goltz has been sentenced to four years in federal prison for his conduct.”
Acting Assistant Attorney General Brian C. Rabbitt said: “Harald Joachim von der Goltz sought to conceal his considerable wealth through a sham foreign foundation and various shell companies. But his decades-long scheme to evade his tax obligations and defraud the U.S. government came to an end today thanks to the tireless efforts of U.S. law enforcement. No matter how complicated the scheme, the U.S. government will bring to justice those who attempt to evade their tax obligations under the law. In particular, I would like to recognize the outstanding work of the Internal Revenue Service in this case.”
According to the allegations contained in the Indictments[1], other filings in this case, and statements during court proceedings, including VON DER GOLTZ’s guilty plea and sentencing hearings:
Since at least 2000 through 2017, VON DER GOLTZ conspired with others to conceal his 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, 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, including income and capital gains generated in domestic and foreign bank accounts. Nevertheless, VON DER GOLTZ evaded his tax reporting obligations by setting up a series of shell companies and bank accounts, and hiding his beneficial ownership of the shell companies and bank accounts from the IRS. These shell companies and bank accounts made investments totaling tens of millions of dollars. VON DER GOLTZ was assisted in this scheme through the use of Mossack Fonseca, including Ramses Owens, a Panamanian lawyer who previously worked at Mossack Fonseca, and by Richard Gaffey, a partner at a U.S.-based accounting firm. Specifically, in furtherance of VON DER GOLTZ’s efforts to conceal his assets and income from the IRS, VON DER GOLTZ engaged the services of Mossack Fonseca, including Owens, to create a sham foundation and shell companies formed under the laws of Panama and the British Virgin Islands to conceal from the IRS and others the ownership by VON DER GOLTZ of accounts established at overseas banks, as well as the income generated in those accounts. VON DER GOLTZ, Gaffey, and Owens also 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.
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VON DER GOLTZ, 83, of Needham, Massachusetts, and Key Biscayne, Florida, pled guilty to one count of conspiracy to commit tax evasion; 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 two counts of false statements. In addition to the prison term, Judge Berman ordered VON DER GOLTZ to serve three years of supervised release, to pay forfeiture in the amount of $5,373,609 and restitution in the amount of $3,448,848, and to pay a fine in the amount of $30,000.
Gaffey previously pled guilty and is scheduled to be sentenced by Judge Berman on September 24, 2020, at 10:30 a.m. Owens and Brauer remain at large.
* * *
Ms. Strauss praised the outstanding investigative work of IRS, Criminal Investigation, and Homeland Security Investigations, 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.
Twelve charged in multi-year mortgage fraud schemeRead the Press Release
ATLANTA – Twelve defendants have been charged in a mortgage fraud scheme allegedly spanning more than four years and resulting in the approval of more than 100 mortgages based on fabricated documents and false information. Many of the loans are insured by the Federal Housing Administration (FHA) resulting in claims being paid for mortgages that have gone through loan modification.
“These defendants allegedly used their knowledge of the real estate lending process to manipulate the system for their own benefit,” said U.S. Attorney Byung J. “BJay” Pak. “Mortgage fraudsters threaten the soundness of the real estate market in our community. We will investigate and charge anyone who takes advantage of our mortgage lending system for their own personal gain.”
“These charges represent the government's commitment toward combating such alleged criminal activity,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We will steadfastly protect American citizens and the real estate market from predators who drag down our economy by deceit to line their own pockets.”
"What we have here is a group of mortgage industry professionals that have allegedly perpetrated a sophisticated mortgage fraud for profit scheme that was designed to enrich themselves at the expense of a federal housing program,” said Wyatt Achord, Special Agent in Charge, Office of the Inspector General, U.S. Department of Housing and Urban Development. “The efforts that brought forward these charges demonstrate that when law enforcement is made aware of such schemes, we will commit the necessary resources to make sure that fraudsters are brought to justice.”
“As charged, the defendants engaged in a multiyear scheme to defraud Fannie Mae and Freddie Mac. The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) will investigate and hold accountable those who seek to victimize these Government Sponsored Entities supervised and regulated by FHFA”, said FHFA-OIG Special Agent in-Charge Edwin Bonano.
According to U.S. Attorney Pak, the indictment, and other information presented in court: The defendants participated in a scheme in which homebuyers and real estate agents submitted fraudulent loan applications to induce mortgage lenders to fund mortgages. Listing agents Eric Hill and Robert Kelske represented a major nationwide homebuilder, and helped more than 100 homebuyers who were looking to buy a home, but who were unqualified to obtain a mortgage, commit fraud. The agents instructed the homebuyers as to what type of assets they needed to claim to have in the bank, and what type of employment and income they needed to submit in their mortgage applications.
Hill and Kelske then coordinated with multiple document fabricators, including defendants Fawziyyah Connor and Stephanie Hogan, who altered the homebuyers’ bank statements to inflate the their assets and to create bank entries reflecting false direct deposits from an employer selected by the real estate agent. The document fabricators also generated fake earnings statements that matched the direct deposit entries to make it appear that the homebuyer was employed, and earning income, from a fake employer. Other participants in the scheme then acted as employment verifiers and responded to phone calls or emails from lenders to falsely verify the homebuyers’ employment. Defendants Jerod Little, Renee Little, Maurice Lawson, Todd Taylor, Paige McDaniel and Donald Fontenot acted as employment verifiers. Hill and Kelske coordinated the creation and submission of the false information so that the lies to the lenders were consistent.
In another aspect of the scheme, real estate agents Anthony Richard and Cephus Chapman falsely claimed to represent homebuyers as their selling agents in order to receive commissions from the home sales. In reality, these real estate agents had never even met the homebuyers they claimed to represent. To avoid detection, the agents often notified closing attorneys that they would not be available for the home closing, and sent wire instructions for the receipt of their commissions. When these purported selling agents received their unearned commissions, they kicked back the majority of the commissions to Hill or Kelske for enabling them to be added to the deal, keeping a small share for their role in the scheme.
The following defendants have been charged as part of these conspiracies:
• Eric Hill, 50, of Tyrone, Georgia (charged by Information)
• Robert Kelske, 52, of Smyrna, Georgia
• Fawziyyah Connor, 41, of Tyrone, Georgia
• Stephanie Hogan, 57, of Norcross, Georgia
• Jerod Little, 42, of McDonough, Georgia
• Renee Little, 33, of McDonough, Georgia
• Maurice Lawson, 36, of Powder Springs, Georgia
• Todd Taylor, 54, of Fairburn, Georgia
• Paige McDaniel, 49, of Stockbridge, Georgia
• Donald Fontenot, 52, of Locust Grove, Georgia (charged by Information)
• Anthony Richard, 44, of Locust Grove, Georgia
• Cephus Chapman, 49, of Warner Robins, Georgia
Members of the public are reminded that the indictment and informations only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, Department of Housing and Urban Development Office of Inspector General, and Federal Housing Finance Agency Office of Inspector General.
Assistant U.S. Attorney Alison Prout is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Traffic stop leads to firearm charges in Operation Legend caseRead the Press Release
ALBUQUERQUE, N.M. – Jose Gamboa, 38, of Albuquerque made an appearance Sept. 18 in federal court, charged with being a felon in possession of a firearm and ammunition. A detention hearing is scheduled for Sept. 22.
According to a criminal complaint, on Aug. 5, Gamboa allegedly possessed firearm and ammunition while driving in Albuquerque. Gamboa allegedly purchased the gun illegally “on the streets” for $450 knowing he could not lawfully possess it because of prior convictions. Gamboa was convicted in 2008 for importation of marijuana.
If convicted, Gamboa faces up to 10 years in prison. A criminal complaint is only an accusation. A defendant is presumed innocent unless and until proven guilty.
The FBI Violent Crime Task Force and the Bernalillo County Sheriff’s Office investigated this case as part of the Department of Justice's Operation Legend, a coordinated federal and local law enforcement initiative to fight gun and dangerous crime. Assistant U.S. Attorney David M. Walsh is prosecuting the case.
Topeka Woman Sentenced for Identity TheftRead the Press Release
TOPEKA, KAN. – A Topeka woman was sentenced to 38 months in federal prison today for identity theft, U.S. Attorney Stephen McAllister said. In addition, she was ordered to pay approximately $47,668 in in restitution.
Danielle Hutchens, 47, Topeka, Kan., pleaded guilty to one count of aggravated identity theft and one count of conspiracy to commit bank and wire fraud. In her plea, she admitted she and a co-defendant stole mail and used the information to create counterfeit checks and counterfeit identity cards. They passed counterfeit checks at retailers including Walmart stores in Overland Park, Kan., and Olathe, Kan.
McAllister commended the U.S. Postal Service, the Overland Park Police Department and Assistant U.S. Attorney Skip Jacobs for their work on the case.
Texas Man Sentenced for Armed Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 18, 2020, Justin Wade Lynch, age 44, originally of Texas, was sentenced to 84 months’ imprisonment by United States District Court Judge Malachy E. Mannion for armed bank robbery.
According to United States Attorney David J. Freed, Lynch admitted that, on October 30, 2012, he robbed Penn Security Bank & Trust in Peckville, Lackawanna County, Pennsylvania. Lynch brandished a firearm during the robbery, and stole $12,470.
Lynch has been incarcerated since 2013 in Texas on an unrelated armed robbery conviction. The 84 month federal sentence will run concurrent with the remainder of the Texas sentence. Lynch was ordered to serve three years of supervised release after his prison term, and to pay full restitution.
The case was investigated by the Blakely Police Department, the Pennsylvania State Police, and the U.S. Federal Bureau of Investigation (FBI), and was prosecuted by Assistant U.S. Attorney Sean A. Camoni.
This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Supervisor of Drug Testing Facility Who Took Bribes to Falsify over 100 Drug Tests Sentenced to over Four Years in Federal PrisonRead the Press Release
LAS VEGAS, Nev. — Billy Joe West, 57, of Las Vegas, was sentenced today to four years and nine months in federal prison for soliciting and accepting bribes from convicted felons on federal supervised release in exchange for concealing their positive and missed drug tests, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada.
“In addition to violating federal law, the defendant’s breach of the public’s trust subverted the recovery and rehabilitation of many individuals undergoing court-ordered substance abuse treatment,” said U.S. Attorney Trutanich. “This reinforces why employees of federal contractors must put the public interest over their self interests.”
West pleaded guilty on June 1, 2020, to one count of prevention of communication of supervised release and probation violation. In addition to the term of imprisonment, U.S. District Judge Jennifer A. Dorsey sentenced West to three years of supervised release.
According to court documents and West’s admissions, his scheme caused over 100 false records to be made and reported to the U.S. Probation Office. West was a supervisor at WestCare Nevada, Inc., a federally contracted drug testing facility that conducted, among other services, court-ordered urinalysis drug testing of supervisees who are on federal probation and supervised release. West’s responsibilities included administering urinalysis drug testing.
Between June 21, 2018, and March 19, 2020, West misused his position as a supervisor and misled U.S. Probation Officers through a scheme to solicit and accept bribes from supervisees, in exchange for reporting false negative drug tests to the U.S. Probation Office. As a result of those false negative reports, probation officers were deceived into believing that certain supervisees were complying with court-ordered terms of their supervised release. But the supervisees had in fact violated terms of their supervised release by either missing mandatory drug tests or testing positive for controlled substances. Following West’s arrest in March 2020, the number of “no-shows” and positive drug test results that WestCare reported to the U.S. Probation Office increased.
This case was the product of an investigation by the FBI. Assistant U.S. Attorney Jessica Oliva prosecuted the case.
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Stilwell Man Pleads Guilty to Aggravated Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Billy Ray Flynn, age 65, of Stilwell, Oklahoma entered a guilty plea to Aggravated Sexual Abuse In Indian Country, in violation of Title 18, United States Code, Sections 1153, 2241(a)(1) and 2246(2)(A), punishable by not more than life imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about January 31, 2020, in the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did knowingly use force against J.F. and cause his penis to penetrate the vulva of J.F., thereby causing J.F. to engage in a sexual act against her will.
The charges arose from an investigation by the Cherokee Nation Marshal Service and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Courtney Jordan represented the United States.
South Bend, Indiana Man Sentenced to 60 Months in PrisonRead the Press Release
SOUTH BEND –Jeffrey Burnside, 32, of South Bend, Indiana, was sentenced to 60 months in prison by United States District Court Judge Damon R. Leichty upon his plea of guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
According to documents in this case, during the night of March 28-29, 2020, police evicted several individuals, including Burnside, from a hotel in Mishawaka. During the eviction process, police found methamphetamine as well as two handguns. Later that night, Burnside tried to book another hotel room, hid from police, and then ran from police. Officers caught Burnside and checked his hiding place, where they found a loaded handgun and half an ounce of methamphetamine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Mishawaka Police Department. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
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South Bend, Indiana Man Sentenced to 60 Months in PrisonRead the Press Release
SOUTH BEND –Bradley O’Donnell, 28, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty upon his plea of guilty to possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
O’Donnell was sentenced to 60 months in prison followed by 3 years of supervised release.
According to documents in this case, on the night of March 28 into the morning of March 29, 2020, Mr. O’Donnell was distributing methamphetamine and had a loaded handgun with him while doing so. Police later found Mr. O’Donnell with 120 grams of methamphetamine and the handgun. Mr. O’Donnell has previously been convicted of three felony offenses.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Mishawaka Police Department. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
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Slidell Couple Indicted for Conspiracy to Commit Mail Fraud and Mail FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that on September 19, 2020, WILLIAM LEWIS, age 41, and JILL LEWIS, age 40, residents of Slidell, Louisiana, were charged in a two-count Indictment for conspiracy to commit mail fraud and mail fraud, in violation of Title 18, United States Code, Sections 371 and 1341, and Title 28, United States Code, Section 2461(c).
According to Court documents, beginning on or before January 31, 2014 through in or around January 2016, the defendants conspired to submit numerous false insurance claims for reimbursement to the United States Postal Service (“USPS”), causing the USPS to mail checks to WILLIAM and JILL LEWIS for approximately $42,000. For example, WILLIAM and JILL LEWIS falsely represented to the USPS that they had sent expensive jewelry and other items through the mail and that the USPS lost the items. In connection with the false claims, WILLIAM and JILL LEWIS submitted forged invoices from retailers to the USPS to support the reimbursement amounts. The false claims and forged documents caused the USPS to send the reimbursement checks to the defendants through the mail.
In addition, according to Court documents, on or about September 29, 2015, the defendants submitted a false claim to the USPS, fraudulently representing that WILLIAM LEWIS purchased an Omega watch in the amount of approximately $4,999 and that the USPS lost the watch in the mail. This false and fraudulent claim for reimbursement caused the USPS to send a $4,999 reimbursement check to WILLIAM LEWIS that he deposited in his bank account.
If convicted, the defendants face up to 20 years of imprisonment, a fine up to $250,000, and restitution to the USPS in the amount of approximately $42,000.
U.S. Attorney Peter G. Strasser praised the work of the United States Postal Service, Office of Inspector General, for its work in investigating this case. U.S. Attorney Strasser reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney Sharan E. Lieberman.
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Seven Charged with Trafficking Heroin and Crack in New HavenRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced the unsealing of an indictment charging seven individuals with New Haven-area narcotics trafficking and related offenses.
On September 9, 2020, a federal grand jury in New Haven returned an indictment charging the following individuals with conspiring to distribute heroin and crack cocaine:
MICHAEL SMITH, also known as “Head,” 34, of New Haven
KEILAH BORIA, 39, of New Haven
ERNEST HOLCOMB, also known as “Ern,” 32, of North Branford
JONATHAN DUARTE, 35, of New Haven
CHAWN BATTLE, 47, of New Haven
ALEX REYES, 33, of New Haven
ALEXIS VIERA, 32, of New Haven
As alleged in court documents and statements made in court, in 2019, the DEA New Haven Task Force began an investigation into a New Haven-based drug trafficking network headed by Michael Smith. The investigation revealed that Smith, Duarte, Reyes and Holcomb were distributing heroin and crack cocaine throughout the New Haven area. During the investigation, Viera was identified as a supplier of crack to Smith’s organization, and Battle was identified as customer who bought heroin from the organization and sold the drug to his own customers. The investigation also revealed that Boria maintained bank accounts that Smith used to launder the cash proceeds of his drug trafficking activity, and that Smith spent some of the drug proceeds to pay for rental cars that he used to transport narcotics, and to travel to meet his drug customers.It is further alleged that on December 19, 2019, Smith possessed a firearm and used the firearm in a drug-related shooting.
If convicted of conspiring to distribute heroin and cocaine base (“crack”), based on the type and quantity of drug attributable to each defendant, Smith, Boria and Duarte face a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and Holcomb, Battle, Reyes and Viera face a maximum term of imprisonment of 20 years.
The indictment also charges Smith with one count of possession with intent to distribute, and distribution of heroin, an offense that carries a maximum term of imprisonment of 20 years, and one count of use of a firearm during and in relation to, and in furtherance of, a drug trafficking crime, an offense that carries a mandatory term of imprisonment of at least 10 years.
The indictment also charges Smith and Boria with one count of conspiracy to launder monetary instruments, an offense that carries a maximum term of imprisonment of 20 years.
Smith has been detained since his arrest on state charges on December 23, 2019. The other six defendants were arrested on September 16, 2020, after the indictment was returned.
Smith, Duarte, Battle and Viera are detained, and Boria, Holcomb and Reyes are released pending trial.
U.S. Attorney Durham noted that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the DEA New Haven Task Force, the Internal Revenue Service – Criminal Investigation Division, and the New Haven, West Haven, Hamden, East Haven, North Haven, Ansonia, Meriden and Derby Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and John T. Pierpont, Jr.
SIX ELN Members and Associates Charged with Narco-Terrorism and International Cocaine Distribution ConspiracyRead the Press Release
HOUSTON – A total of three Colombian nationals associated with the National Liberation Army (Ejército de Liberación Nacional aka ELN), a paramilitary group designated as a foreign terrorist organization, have been taken into Colombian custody at the request of the United States on charges alleging a 20-year international drug conspiracy.
“When my predecessor visited Colombia last year, he said to approximately 100 Colombian National police officers that he was directing all U.S. Department of Justice (DOJ) components stationed at the U.S. Embassy, to include FBI, Drug Enforcement Administration (DEA) and our DOJ Attaches, to make cases against ELN a top priority,” said Attorney General William Barr. “These enforcement efforts against six ELN members including federal criminal charges against ELN leader Wilver Villegas-Palomino reaffirms our commitment in dismantling and disrupting this narco-terrorist group. The United States and Colombia have a shared mission of combatting narco-trafficking and narco-terrorism and the long-standing cooperation and teamwork between U.S. and Colombian law enforcement is stronger in addressing transnational crime and weakening foreign terrorist organizations.”
“Colombia is an excellent law enforcement partner,” said U.S. Attorney Ryan K. Patrick. “They made a commitment to work with the United States combatting ELN’s narco-terrorism. With major cities acting as drug trafficking hubs, the Southern District of Texas is uniquely situated in continuing our prosecution of these cases and working with our Colombian colleagues.”
Colombian authorities arrested Yamit Picon-Rodriguez aka Choncha, 36, Jose Gabriel Alvarez-Ortiz aka Alex, 26, and Henry Trigos-Celon aka Moncho Picada, 43, based on a provisional arrest request of the United States.
Suspected ELN leader Villegas-Palomino aka Carlos El Puerco, 38, is also charged and considered a fugitive as are Jaime Miguel Picon-Rodriguez aka Chencho and Jairo, 38, and Diomedes Barbosa-Montaño aka El Burro, 38. A warrant remains outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the FBI at 1-800-CALL-FBI or submit tips online at tips.fbi.gov.
A federal grand jury in Houston returned the three-count indictment Feb. 12. All six defendants are charged with distribution of a controlled substance, knowing or intending to provide anything of pecuniary value to a person or organization that engages in terrorism or terrorist activity (narco-terrorism), participating in an international cocaine distribution conspiracy and international cocaine distribution.
According to the indictment, Villegas-Palomino and his co-defendants were involved in an ongoing 20-year conspiracy to distribute cocaine from Colombia to the United States knowing or intending to provide pecuniary support to the ELN.
In early 2019, Villegas-Palomino, Picon-Rodriguez, Trigos-Celon, Barbosa-Montaño and Alvarez-Ortiz also allegedly participated in distributing approximately 30 kilograms of cocaine in Colombia having reasonable cause to believe it would be imported into the United States.
“The success of Operation Catatumbo Lightning was a direct result of the outstanding collaboration between the FBI and many of our law enforcement and military partners both here in the United States and in Colombia,” said FBI Director Christopher Wray. “These arrests should serve as a warning that the FBI will relentlessly target and disrupt any narco-terrorist activity that threatens the health and safety of the American people and our international community.”
“As alleged, for decades, ELN produced and exported tons of cocaine to the U.S., using communities in America to fund their terrorist activities,” said DEA Acting Administrator Timothy J. Shea. “These enforcement actions have dealt a major blow to the ELN and are a true testament to the power of partnerships. DEA remains dedicated to our partners around the globe in the shared mission of bringing narco-terrorists to justice.”
On Oct. 8, 1997, the State Department officially designated ELN as a foreign terrorist organization. It continues to operate as one of the largest narco-terrorism organizations in the world. The U.S. Department of State through its Narcotics Rewards Program, is offering up to a $5 million reward for information leading to the arrest and/or conviction of Villegas-Palomino.
The Houston Divisions of the FBI and DEA conducted the investigation as part of the Organized Crime Drug Enforcement Task Force (OCDETF). FBI and DEA agents in Bogota provided substantial support as did DOJ’s multi-agency Special Operations Division, including assigned attorneys from the Narcotic and Dangerous Drug Section and National Security Division as well as the Office of International Affairs with the cooperation of Colombian authorities. Houston Police Department, U.S. Southern Command and international partners including the Colombian Army, National Police, National Prosecutor's Office and Technical Body of Investigation also provided assistance.
OCDETF brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. Its principal mission is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz of the Southern District of Texas are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
certified.indictment.eln_.pdf palomino_wanted_english.pdf palomino_wanted_spanish.pdf diomedes_barbosa-montano.pdf jaime_miguel_picon-rodriguez.pdfRome Man Charged with Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – Michael Mayhew, age 55, of Rome, New York, appeared today in federal court before United States Magistrate Judge Therese Wiley Dancks on charges that he sexually exploited a child. The defendant was ordered detained without bail pending a hearing on September 24, 2020.The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The criminal complaint alleges that in December 2018, Mayhew took several sexually explicit photographs of a 6-year-old child using his cellular telephone. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, the defendant faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, a maximum fine of $250,000, and a term of supervised release of between five years and life. He will also be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the Federal Bureau of Investigation (FBI), Oneida County Sherriff’s Office, Rome Police Department, Oneida County District Attorney’s Office, New York State Police, United States Air Force Office of Special Investigations and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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 https://www.justice.gov/psc.
Rhode Island Man Sentenced to 17 Years in Prison for Somerville Armed Bank RobberyRead the Press Release
BOSTON – A Rhode Island man was sentenced today in federal court in Boston for the May 1, 2019 armed bank robbery in Somerville that resulted in shots fired.
Daniel Rosado, 32, of Providence, R.I., was sentenced by U.S. District Court Judge Leo T. Sorokin to 17 years in prison and five years of supervised release. In February 2020, Rosado pleaded guilty to one count of armed bank robbery, one count of brandishing and discharging a firearm during a crime of violence and one count of being a felon in possession of a firearm. Rosado was arrested and charged on May 23, 2019, and has been in custody since.
“As Rosado was robbing a Somerville bank at gunpoint, a passing police officer entered the bank, exchanged gunfire with Rosado, and chased him out the door. Good police work later led to his arrest and conviction,” said U.S. Attorney Andrew E. Lelling. “This is today’s reminder of what police officers actually do each day: they risk their lives to keep us safe.”
“For his own greed and selfishness, Daniel Rosado robbed a bank, shot at a police officer, and terrorized innocent bystanders at gunpoint. Had he not been identified and arrested by the FBI’s Violent Crimes Task Force, this convicted felon would still pose a significant threat to public safety. Our communities are now safer with him behind bars,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
On May 1, 2019, a man, later identified as Rosado, entered the Middlesex Federal Savings Bank in Somerville, brandished a handgun, fired a shot into the ceiling, and pointed the firearm at customers and bank employees. Rosado yelled: “Get down!,” “Everybody on the ground!,” “Second Drawer,” “Hurry Up!” and “Give me money or I’ll shoot!” Customers and bank employees laid on the floor, while the robber approached a teller window, threw a backpack at the teller and demanded money.
While the teller filled the backpack with money, a customer exited the bank and flagged down a marked police cruiser. The police officer entered the bank, pointed his gun at the robber and ordered him to freeze. In response, Rosado faced the officer, pointed his gun in the officer’s direction and fired one shot. The officer shot back. During the exchange of gunfire, Rosado exited the bank and the officer chased after him on foot.
As Rosado fled down College Avenue in Somerville, a bystander, noticing that Rosado was being pursued by a police officer, attempted to tackle Rosado, which caused Rosado to drop his backpack. Rosado kept running, and witnesses eventually lost sight of him. A Webley revolver loaded with four unfired rounds of ammunition, two cartridge casings and more than $500 was recovered from the backpack.
Further investigation, including forensic analysis of the backpack, linked the DNA profile found on the backpack to Rosado. A subsequent review of Rosado’s driver’s license photo matched the images of the robber captured on video surveillance at the bank.
According to court records, Rosado has prior felony convictions, including negligent operation of a motor vehicle, larceny from a person and witness intimidation and assault by means of a dangerous weapon. Due to these prior convictions, Rosado is prohibited from possessing a firearm or ammunition.
U.S Attorney Lelling; Boston FBI SAC Bonavolonta; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Somerville Police Chief David Fallon made the announcement today. Valuable assistance was provided by the United States Attorney’s Office for the District of Rhode Island and the Providence (R.I.) Police Department. Assistant U.S. Attorneys Kenneth G. Shine and Lindsey E. Weinstein of Lelling’s Criminal Division prosecuted the case.
Raleigh County Pharmacist Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
BECKLEY, W.Va. – Natalie P. Cochran, 39, of Daniels, pled guilty in federal court today to fraud charges, announced United States Attorney Mike Stuart. Cochran, a Raleigh County pharmacist and owner of two companies in Beckley - Technology Management Solutions (TMS) and Tactical Solutions Group (TSG) - pled guilty to wire fraud and money laundering. Pursuant to her plea agreement, Cochran also agreed to pay nearly $2.6 million in restitution to her victims and to forfeit her interest to the United States in the assets she obtained through her fraudulent activities, including two pieces of real property, a 1965 Shelby Cobra, multiple vehicles, pieces of jewelry, and nearly $45,000 seized from her business’ bank account.
“Today, Natalie Cochran admitted and pled guilty of committing the federal crimes of wire fraud and money laundering,” said United States Attorney Mike Stuart. “In terms of this agreement, trust me, this is a difficult day for Natalie Cochran. Not only could she be sentenced to more than 11 years in prison, Cochran agreed to forfeiture of a substantial amount of cash and assets. Cochran also waived her right to appeal. Cochran pled guilty. I am pleased that this agreement results in the goal I have in every case - justice for victims and taxpayers.”
Cochran admitted that from approximately June 2017 through at least August 22, 2019, she knowingly defrauded and took money and property from individuals, a financial institution and several other companies. She induced them to invest in TMS and TSG and in phony government contracts by making false misrepresentations regarding her and her companies’ experience and purported success as government contractors. Cochran further admitted that she convinced at least 11 people to invest approximately $2.5 million in alleged government contracts. The investors paid through personal checks, cashier’s checks and wire transfers. She also convinced an investor to send $511,920 through a wire transfer from North Carolina. She further admitted she never invested the money she received but put it into her personal and business bank accounts for personal purposes unrelated to the investments. Cochran admitted to using investor funds to make numerous purchases over $10,000, including withdrawing more than $37,500 to purchase a 1965 Shelby Cobra. She also admitted to knowing that at least one of her investors suffered a financial hardship as a result of her scheme. In order to keep up appearances, Cochran admitted to using some investors’ funds to pay other investors a partial return on their investment.
Cochran faces up to 135 months in prison when sentenced on January 4, 2021.
The West Virginia State Police, the United States Secret Service, and the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG) conducted the investigation. United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorneys Kathleen Robeson and Greg McVey are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:19-cr-00247.
Follow us on Twitter: SDWVNews and USAttyStuart
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Queens Man Charged in Insider Trading SchemeRead the Press Release
A criminal complaint was unsealed earlier today in federal court in Brooklyn charging Yinghang Yang with securities fraud for his role in an insider trading scheme. Yang and a co-conspirator allegedly executed a series of securities transactions based on nonpublic information stolen from Yang’s employer, which resulted in profits of more than $900,000. Yang was arrested this afternoon and is scheduled to make his initial appearance tomorrow via videoconference before United States Magistrate Judge Roanne L. Mann.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charge and arrest.
“Yang abused the trust placed in him by his employer and allegedly broke the law by trading on, and profiting from, nonpublic information that he stole from his employer,” stated Acting United States Attorney DuCharme. “As today’s arrest demonstrates, we are committed to protecting the integrity of our financial markets from dishonest profiteers.” Mr. DuCharme thanked the Securities and Exchange Commission, New York Regional Office (SEC), for their significant cooperation and assistance during the investigation.
“It’s a plain and simple fact—those who base trading decisions on proprietary information they shouldn’t have access to are not only engaging in unfair business practices, they’re breaking the law. As we allege, Yinghang Yang did just that. His arrest today once again highlights the FBI’s ongoing efforts to uphold the integrity of our financial markets,” stated FBI Assistant Director-in-Charge Sweeney.
According to the complaint, since September 2018, Yang has been employed by a publicly traded company (“the Company”) that specializes in financial information and analytics. The Company publishes several market indices, including American stock market indices based on the market capitalizations of groups of companies with shares listed on the New York Stock Exchange (NYSE) or the NASDAQ Stock Market (NASDAQ). Yang’s job at the Company includes managing American stock market indices with more than $60 billion in asset value tracking.
Between April 2019 and October 2019, Yang and a co-conspirator allegedly executed securities transactions in the co-conspirator’s brokerage account based, in whole or in part, on nonpublic information obtained by Yang through his employment at the Company, about issuers that were to be added or subtracted from market indexes published by the Company. For example, on October 2, 2019, beginning at 2:47 p.m., the co-conspirator’s brokerage account entered orders to buy call options of Cleveland Cliffs (CLF), a publicly traded mining company. The same day, at 5:15 p.m., the Company announced the addition of CLF to one of its indices effective prior to the open of trading on October 8, 2019. The co-conspirator’s brokerage account subsequently sold the CLF call options on October 3, 2019, realizing a gain of approximately $155,029. This sequence was followed in 13 additional transactions in the co-conspirator’s brokerage account during the charged conspiracy.
In total, the securities transactions engaged in by the co-conspirator’s brokerage account during the relevant time period generated more than $900,000 in profits, some of which were transferred to three different bank accounts held by Yang. Funds from those accounts were then used by Yang for personal expenses, including credit card payments, repayment of student loans and trading activity in Yang’s own brokerage account.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Yang faces up to 20 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alixandra Smith and Lindsay K. Gerdes are in charge of the prosecution, with assistance from Assistant United States Attorney Brian Morris of the Office’s Asset Forfeiture Section.
The Defendant:
YINGHANG YANG (also known as “James Yang”)
Age: 27
Flushing, QueensE.D.N.Y. Docket No. 20-MJ-820
Puerto Rican Man Pleads Guilty to Federal Cocaine OffenseRead the Press Release
BOSTON – A Puerto Rican man pleaded guilty today to his role in a cocaine conspiracy.
William Torres, a/k/a Poro, 34, of Tao Baja, P.R., pleaded guilty to conspiracy to distribute 500 grams or more of cocaine before U.S. District Court Judge Timothy Hillman, who scheduled sentencing for Jan. 19, 2020. In April 2019, Torres was charged and arrested in San Juan, P.R.
A federal investigation revealed that, around October 2018, Torres made arrangements for his associate, Melvin Burgos, to obtain a kilogram of cocaine from Julio Rivera. Torres provided Burgos with Rivera’s number, and on Nov. 1, 2018, Burgos and Rivera met at a storage facility in Worcester. Police subsequently stopped the men and inside the vehicle driven by Burgos they found approximately 900 grams of cocaine. Inside Rivera’s vehicle, law enforcement found a phone that had been used to contact Torres.
Burgos and Rivera were arrested on state charges that day and have since been charged in federal court in Worcester. Burgos pleaded guilty to conspiracy and possession with intent to distribute 500 grams or more of cocaine and is scheduled to be sentenced on Feb. 8, 2021. Rivera has pleaded not guilty and is awaiting trial.
Torres faces a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Portage Man Sentenced to 9 Years for Madison Bank RobberiesRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Ramon Howard, 37, Portage, Wisconsin, was sentenced Friday, September 18, by U.S. District Judge William Conley to nine years in federal prison for three bank robberies. Howard pleaded guilty to these charges on June 25, 2020.
Over the course of two weeks in September 2019, Howard robbed a bank and two credit unions in Madison, Wisconsin. He robbed the Associated Bank on East Towne Boulevard on September 13, the Summit Credit Union on Thierer Road on September 16, and the UW Credit Union on Northport Drive on September 26.
After the September 26 robbery, Howard and his co-defendant Antonio Rowe fled in a vehicle. Rowe drove at high speeds through residential neighborhoods, striking other vehicles and eventually crashing on East Washington Avenue. Howard and Rowe both fled on foot but were apprehended by Madison police. Howard was in possession of the stolen cash.
When sentencing Howard to nine years in prison for these bank robberies, Judge Conley noted that Howard has spent his adult life incarcerated or under supervision. At age 15, Howard was prosecuted as an adult for robbing and assaulting an elderly man. Judge Conley said that Howard frightened and traumatized the bank tellers, particularly in the last robbery where Howard threatened to kill them. Judge Conley remarked that these were serious offenses and that Howard would be held accountable for this “indefensible conduct.” In his allocution, Howard thanked the police department for how they handled his arrest, saying that it could have ended much worse.
Antonio Rowe has pleaded guilty to committing the September 13 and September 26 robberies with Howard, and to robbing the BMO Harris Bank on Sherman Avenue on September 10, 2019. Rowe will be sentenced by Judge Conley on October 20.
The charges against Howard and Rowe were the result of an investigation conducted by the Madison Police Department and Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Corey C. Stephan.
Parkersburg Man Sentenced to Seven Years in Prison for Firearm and Methamphetamine ChargesRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man was sentenced to federal prison today as a result of federal charges related to the trafficking of methamphetamine and the possession of a firearm while involved in drug trafficking, announced United States Attorney Mike Stuart. James Daniel Canty, 60, was sentenced to 84 months in prison for possession with intent to distribute methamphetamine and using and carrying a firearm during and in relation to a drug trafficking crime. Canty will serve four years of supervised release following his release from prison.
“At the age of 60, Canty will be going to federal prison for seven years,” said United States Attorney Mike Stuart. “He has led a life a crime, receiving the first of his eight felony convictions at age 19. I commend the Parkersburg Police Department and ATF for getting this repeat offender, his meth and gun off the streets.”
Canty previously admitted that on November 30, 2019, following a traffic stop by members of the Parkersburg Police Department on Plum Street near Jefferson Elementary School in Parkersburg, he was found to be in possession of approximately 55 grams of methamphetamine as well as a .loaded 25 caliber semi-automatic pistol with an obliterated serial number and a box of .25 caliber ammunition. Further investigation revealed that Canty had another two ounces of methamphetamine hidden in the vehicle. Canty further admitted that he intended to distribute the methamphetamine that he possessed, and that he possessed the firearm for the purpose of protecting himself and the methamphetamine that he was carrying. Canty has a long criminal history, which includes six prior felony convictions. The sentence imposed today is the result of Canty’s 7th and 8th felony convictions. The United States sought a strong sentence of imprisonment in this case due not only to the offense conduct, but also the lifetime of criminal activity engaged in by Canty. That criminal activity began when Canty received his first felony conviction in 1979 at the age of 19.
The Parkersburg Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the Project Guardian partners listed above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00023 and 2:20-cr-00081.
Follow us on Twitter: SDWVNews and USAttyStuart
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Operation Legend: Case of the Day Tennessee: Three Memphis Men Charged with Stealing 32 FirearmsRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Western District of Tennessee. Operation Legend launched in Memphis on Aug. 6, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Kendrick Monger, Corey Groves, and Martez Banks
On Sept. 10, 2020, a federal grand jury returned a two-count indictment against three Memphis men for conspiracy and theft of firearms from a federally licensed firearms dealer.
“The proliferation of stolen firearms on the streets of Memphis contributes to the increased frequency and severity of shooting incidents and violent crime in our neighborhoods,” said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee. “Under Operation LeGend, we are surging federal resources to assist local law enforcement, and we are committed in our resolve to reduce violent crime by aggressively prosecuting federal firearms offenses. This indictment does just that.”
According to the indictment, on Aug. 2, 2020, Kendrick, Monger, 24; Corey Groves, 25; and Martez Banks, 25, all of Memphis, stole 32 firearms from the Shoot Point Blank gun range, a federally licensed firearms dealer in Memphis.
If convicted, the defendants each face up to 10 years in prison. There is no parole in the federal system.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
Since its inception, Operation Legend has yielded more than 2,000 local, state, and federal arrests, with more than 592 defendants charged with federal crimes.President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Western District of Tennessee. Operation Legend launched in Memphis on Aug. 6, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Kendrick Monger, Corey Groves, and Martez Banks
On Sept. 10, 2020, a federal grand jury returned a two-count indictment against three Memphis men for conspiracy and theft of firearms from a federally licensed firearms dealer.
“The proliferation of stolen firearms on the streets of Memphis contributes to the increased frequency and severity of shooting incidents and violent crime in our neighborhoods,” said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee. “Under Operation LeGend, we are surging federal resources to assist local law enforcement, and we are committed in our resolve to reduce violent crime by aggressively prosecuting federal firearms offenses. This indictment does just that.”
According to the indictment, on Aug. 2, 2020, Kendrick, Monger, 24; Corey Groves, 25; and Martez Banks, 25, all of Memphis, stole 32 firearms from the Shoot Point Blank gun range, a federally licensed firearms dealer in Memphis.
If convicted, the defendants each face up to 10 years in prison. There is no parole in the federal system.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
Since its inception, Operation Legend has yielded more than 2,000 local, state, and federal arrests, with more than 592 defendants charged with federal crimes.President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Okmulgee Man Pleads Guilty to Carrying A Firearm During and in Relation to A Crime of ViolenceRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jatavier Bradford, age 17, of Okmulgee, Oklahoma entered a guilty plea to Carrying A Firearm During And In Relation To A Crime Of Violence, punishable by not less than 5 years imprisonment, a fine up to $250,000.00, or both. Bradford, who will be 18 next month, entered a plea of guilty after being transferred to adult status in court.
The Information alleged that on or about July 7, 2020, in the Eastern District of Oklahoma within the territorial boundaries of the Muscogee (Creek) Nation reservation, the defendant, JATAVIER BRADFORD did carry a firearm, that is, a Taurus Model PT111, 9mm S/N TCY95849, during and in relation to a crime of violence for which he may be prosecuted in a court of the United States, in violation of Title 18 U.S.C. § 924(c)(1)(A)(i).
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney David Youll represented the United States at the plea hearing.
Northwest Louisiana Human Trafficking Task Force Announces "Project R.I.S.K."Read the Press Release
SHREVEPORT, La. – The Northwest Louisiana Human Trafficking Task Force is comprised of federal, state, and local law enforcement agencies and non-governmental organizations, and was formed in an effort to promote enhanced collaboration between all agencies involved in combatting human trafficking cases in our area. This Task Force has launched a campaign to fight sexual predator cases called “Project R.I.S.K.,” Acting United States Attorney Alexander C. Van Hook announced.
Members of the Task Force have noticed a disturbing trend in the rise of sexual predator cases in the Western District of Louisiana. Because of this trend, the Task Force has launched “Project R.I.S.K.” (Reliable Internet Safety for Kids).
Since March 2020, the coronavirus pandemic has pushed our youth to be on the internet more than ever before. Today, the internet not only entertains and connects our youth with their peers, but a vast majority of them are using the internet for virtual schooling. The Louisiana Attorney General’s Office has reported a 200% increase in online sexual predator cases since the beginning of the pandemic. This increase in internet activity allows more opportunity for predators to interact with our youth. As we see in all cases, predators will also adapt to their changing environments.
The Task Force has created a Public Service Announcement (PSA) to launch Project R.I.S.K. and contains messages from leaders of area law enforcement agencies providing advice to help prevent predators from victimizing children.
Leaders advise all guardians, including parents, teachers, and custodians, to place ALL devices such as computers, laptops, tablets, and smart phones in common areas. Smart phones, even those with no service, allow the same access to predators as a computer or other device. Guardians need to know what apps are on these devices and also know their children’s passwords. Project R.I.S.K. also encourages all guardians to engage in their children’s activities.
All agencies in this Task Force share a united front to eliminate all human trafficking type cases; however, to be more successful, they need assistance from the public. Many parents and guardians want to protect their children but may not know where to look for reliable internet safety information. Project R.I.S.K. is designed to assist with that. The Project R.I.S.K. PSA will provide reliable information and the law enforcement agencies involved in this Task Force can help as well. Members of the Task Force will be available to meet with citizens, local government officials, community organizations, school boards, churches, and other groups to discuss Project R.I.S.K. and internet safety.
The members of the Northwest Louisiana Human Trafficking Task Force are:
Law Enforcement Members
Bossier City Marshal’s Office
Bossier City Police Department
Bossier Parish Sheriff’s Office
Caddo Parish Sheriff’s Office
Child Exploitation and Human Trafficking Task Force (FBI-Shreveport Field Office)
Claiborne Parish Sheriff’s Office
DeSoto Parish Sheriff’s Office
Federal Bureau of Investigations, Shreveport Field Office
Greenwood Police Department
Homeland Security Investigations, Shreveport Field Office
Internet Crimes Against Children Task Force
Louisiana Alcohol Tobacco Commission
Louisiana State Police
Office of Special Investigations, Barksdale Air Force Base
Sabine Parish Sherriff’s Office
Shreveport Police Department
United States Department of Labor, Office of Inspector General
United States Department of State
United States Marshal Service, Western District of Louisiana
Webster Parish Sheriff’s Office
Prosecutorial Members
United States Attorney’s Office (Western District of Louisiana)
Caddo Parish District Attorney’s Office
Bossier/Webster Parish District Attorney’s Office
For further information regarding Project R.I.S.K., contact any of the members above or Assistant United States Attorney Earl Campbell at 318-676-3600.
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New York City Police Department Officer Charged with Acting as an Illegal Agent of the People’s Republic of ChinaRead the Press Release
UPDATE
The charges described in the press release below were dismissed by the Court on January 19, 2023. See No. 20-CR-442 (EK), ECF No. 140.
BROOKLYN, NY – A criminal complaint was unsealed today in federal court in Brooklyn charging Baimadajie Angwang, a New York City Police Department officer and United States Army reservist, with acting as an illegal agent of the People’s Republic of China (PRC) as well as committing wire fraud, making false statements and obstructing an official proceeding. Angwang was arrested today and will make his initial appearance this afternoon before United States Magistrate Judge Roanne L. Mann.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; John C. Demers, Assistant Attorney General for National Security; Alan E. Kohler, Jr., Assistant Director of the Federal Bureau of Investigation (FBI) Counterintelligence Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest and charges.
“The defendant allegedly violated his sworn oath to serve the New York City community and defend the Constitution against all enemies by reporting to PRC government officials about the activities of Chinese citizens in the New York area and developing intelligence sources within the Tibetan community in the United States,” stated Acting United States Attorney DuCharme. “This Office, together with our law enforcement partners, remains vigilant in rooting out any attempts at foreign influence though criminal activity taken on behalf of a foreign power in whatever form they may take.”
“State and local officials should be aware that they are not immune to the threat of Chinese espionage,” said Assistant Attorney General for National Security John C. Demers. “According to the allegations, the Chinese government recruited and directed a U.S. citizen and member of our nation’s largest law enforcement department to further its intelligence gathering and repression of Chinese abroad. Our police departments provide for our public safety and are often the first line of defense against the national security threats our country faces. We will continue to work with our state and local partners to protect our nation’s great police departments.”
“The defendant allegedly violated the trust of his community and the New York City Police Department on behalf of a foreign power, the People’s Republic of China. This type of conduct simply cannot be tolerated,” stated FBI Assistant Director Kohler. “This case serves as yet another reminder that China represents the biggest counterintelligence threat to the United States and that the FBI and our partners will be aggressive in investigating and stopping such activities within our nation.”
“This is the definition of an insider threat - as alleged, Mr. Angwang operated on behalf of a foreign government; lied to gain his clearance, and used his position as an NYPD police officer to aid the Chinese government's subversive and illegal attempts to recruit intelligence sources,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI is committed to stopping hostile foreign governments from infiltrating our institutions, and we will we not tolerate the behavior of those who willingly violate their oath to the United States, and covertly work against their fellow citizens. We want to thank the NYPD for its extraordinary partnership on this investigation.”
“As alleged in this federal complaint, Baimadajie Angwang violated every oath he took in this country. One to the United States, another to the U.S. Army, and a third to this Police Department,” stated NYPD Commissioner Shea. “From the earliest stages of this investigation, the NYPD’s Intelligence and Internal Affairs bureaus worked closely with the FBI’s Counterintelligence Division to make sure this individual would be brought to justice.”
According to the publicly filed complaint and the government’s detention memorandum, Angwang, an ethnic Tibetan native of the PRC and naturalized U.S. citizen, is assigned to the NYPD’s community affairs unit where he serves as a liaison to the community served by the 111th Precinct.
Since at least 2014, Angwang allegedly acted at the direction and control of officials at the PRC Consulate in New York City. Specifically, Angwang reported on the activities of Chinese citizens in the New York area, spotted and assessed potential intelligence sources within the Tibetan community in New York and elsewhere, and provided PRC officials with access to senior NYPD officials through invitations to official events. One of the PRC Consular officials at whose direction Angwang acted worked for the China Association for Preservation and Development of Tibetan Culture, a division of the PRC’s United Front Work Department. This Department is responsible for, among other things, neutralizing potential opponents of the PRC and co-opting ethnic Chinese individuals living outside the PRC.
Angwang is also charged with committing wire fraud, making material false statements and obstructing an official proceeding. As part of his employment with the U.S. Army Reserve, Angwang maintained a “SECRET”-level security clearance. According to court documents, in 2019, Angwang completed and electronically submitted an SF-86C form for a background investigation. On the form, Angwang lied by denying that he had contacts with a foreign government or its consulate and by denying that he had close and continuing contacts with foreign nationals, including his family members who live in the PRC, some of whom are affiliated with the People’s Liberation Army.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Angwang faces a maximum sentence of 55 years’ imprisonment.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Michael T. Keilty is in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
BAIMADAJIE ANGWANG
Age: 33
Williston Park, New YorkE.D.N.Y. Docket No. 20-MJ-837
New York City Police Department Officer Charged with Acting as an Illegal Agent of the People’s Republic of ChinaRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Baimadajie Angwang, 33, a New York City Police Department officer and United States Army reservist, with acting as an illegal agent of the People’s Republic of China (PRC) as well as committing wire fraud, making false statements and obstructing an official proceeding. Angwang was arrested earlier today in Williston Park, New York, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Peggy Kuo at the United States Courthouse in Brooklyn, New York.
“State and local officials should be aware that they are not immune to the threat of Chinese espionage,” said Assistant Attorney General for National Security John C. Demers. “According to the allegations, the Chinese government recruited and directed a U.S. citizen and member of our nation’s largest law enforcement department to further its intelligence gathering and repression of Chinese abroad. Our police departments provide for our public safety and are often the first line of defense against the national security threats our country faces. We will continue to work with our state and local partners to protect our nation’s great police departments.”
“The defendant is charged with violating his sworn oath as a New York City police officer to protect and serve the citizens of New York by instead reporting to PRC government officials about the activities of Chinese citizens in the New York area and developing intelligence sources within the Tibetan community in the United States,” stated Acting United States Attorney Seth D. DuCharme. “Today’s arrest shows that no one – especially one sworn to uphold the law – is immune from prosecution for illegal acts on behalf of foreign governments.”
“The defendant allegedly violated the trust of his community and the New York City Police Department on behalf of a foreign power, the People’s Republic of China. This type of conduct simply cannot be tolerated,” said Alan E. Kohler, Jr., Assistant Director of the FBI’s Counterintelligence Division. “This case serves as yet another reminder that China represents the biggest counterintelligence threat to the United States and that the FBI and our partners will be aggressive in investigating and stopping such activities within our nation.”
“This is the definition of an insider threat - as alleged, Angwang operated on behalf of a foreign government; lied to gain his clearance, and used his position as an NYPD police officer to aid the Chinese government's subversive and illegal attempts to recruit intelligence sources,” stated FBI Assistant Director-in-Charge of the New York Field Office William F. Sweeney. “The FBI is committed to stopping hostile foreign governments from infiltrating our institutions, and we will we not tolerate the behavior of those who willingly violate their oath to the United States, and covertly work against their fellow citizens. We want to thank the NYPD for its extraordinary partnership on this investigation.”
“As alleged in this federal complaint, Baimadajie Angwang violated every oath he took in this country. One to the United States, another to the U.S. Army, and a third to this Police Department,” stated NYPD Commissioner Dermot F. Shea. “From the earliest stages of this investigation, the NYPD’s Intelligence and Internal Affairs bureaus worked closely with the FBI’s Counterintelligence Division to make sure this individual would be brought to justice.”
According to the publicly filed complaint and detention memorandum, Angwang, an ethnic Tibetan native of the PRC and naturalized U.S. citizen who resides in Williston Park, New York, is assigned to NYPD’s community affairs unit where, among other things, he serves as a liaison to the community served by the 111th Precinct.
Since at least 2014, Angwang acted at the direction and control of officials at the PRC Consulate in New York City. Specifically, Angwang reported on the activities of Chinese citizens in the New York area, spotted and assessed potential intelligence sources within the Tibetan community in New York and elsewhere, and provided PRC officials with access to senior NYPD officials through invitations to official events. One of the PRC Consular officials at whose direction Angwang acted worked for the “China Association for Preservation and Development of Tibetan Culture,” a division of the PRC’s United Front Work Department. This Department is responsible for, among other things, neutralizing potential opponents of the PRC and co-opting ethnic Chinese individuals living outside the PRC.
According to court documents, Angwang was explicit about his motivations, telling his PRC official handler that was wanted to get promoted within the NYPD so that he could assist the PRC and bring “glory to China.” In addition, Angwang told his handler that the handler’s superiors in Beijing “should be happy . . . because you have stretched your reach into the police.”
In addition to acting as an illegal agent of the PRC, Angwang is also charged with committing wire fraud, making material false statements and obstructing an official proceeding. As part of his employment with the U.S. Army Reserve, Angwang maintained a “SECRET”-level security clearance. According to court documents, in 2019, Angwang completed and electronically submitted an SF-86C form for a background investigation. On the form, Angwang lied by denying that he had contacts with a foreign government or its consulate and by denying that he had close and continuing contacts with foreign nationals, including his family members who live in the PRC, some of whom were affiliated with the People’s Liberation Army.
The charges in the complaint are merely allegations and the defendant is presumed innocent unless and until proven guilty. If convicted, Angwang faces a maximum sentence of 55 years’ imprisonment.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorney Michael T. Keilty is in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
New Orleans Man Charged in Federal Court for Hobbs Act Robberies, Possession, and Brandishing of a Firearm during a Crime of ViolenceRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JARRELL FOX, (“FOX”) age 29, of New Orleans, was charged on September 18, 2020 in an eight-count Indictment with four Hobbs Act Robberies, in violation of Title 18, United States Code, Section 1951(a), three counts of Brandishing a Firearm During a Crime of Violence in violation of Title 18, United States Code, Section 924(c)(1)(a)(ii), and one count of Possession of a Firearm During a Crime of Violence in violation of Title 18, United States Code, Section 924(c)(1)(a)(i).
The federal indictment alleges that FOX committed the armed robberies of four businesses located in the New Orleans East and Mid-City areas of New Orleans while either brandishing or possessing a firearm.
If convicted of the Hobbs Act Robbery violations, FOX faces a maximum term of imprisonment of 20 years, a fine of up to $250,000.00, a period of up to 3 years supervised release, and a mandatory special assessment (”MSA”) of $100.00. If convicted of Brandishing a Firearm During a Crime of Violence, FOX faces a mandatory consecutive sentence of 7 years to life imprisonment, up to a $250,000.00 fine, up to 5 years supervised release, and a $100 MSA. If convicted of Possessing a Firearm During a Crime of Violence, FOX faces a mandatory consecutive sentence of 5 years to life imprisonment, up to a $250,000.00 fine, up to 5 years supervised release, and a $100 MSA. Any sentence imposed regarding the firearm offenses will run consecutive to the sentence imposed for the violation of the Hobbs Act Robbery offenses.
U. S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.
This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
New Orleans Man Charged in Federal Court for Hobbs Act Robberies and Possession and Brandishing of a Firearm during a Crime of ViolenceRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JARRELL FOX, (“FOX”) age 29, of New Orleans, was charged in an eight-count Indictment with four Hobbs Act Robberies, in violation of Title 18, United States Code, Section 1951(a), three counts of Brandishing a Firearm During a Crime of Violence in violation of Title 18, United States Code, Section 924(c)(1)(a)(ii), and one count of Possession of a Firearm During a Crime of Violence in violation of Title 18, United States Code, Section 924(c)(1)(a)(i).
The federal indictment alleges that FOX committed the armed robberies of four businesses located in the New Orleans East and Mid-City areas of New Orleans while either brandishing or possessing a firearm.
If convicted of the Hobbs Act Robbery violations, FOX faces a maximum term of imprisonment of 20 years, a fine of up to $250,000.00, a period of up to 3 years supervised release, and a mandatory special assessment (”MSA”) of $100.00. If convicted of Brandishing a Firearm During a Crime of Violence, FOX faces a mandatory consecutive sentence of 7 years to life imprisonment, up to a $250,000.00 fine, up to 5 years supervised release, and a $100 MSA. If convicted of Possessing a Firearm During a Crime of Violence, FOX faces a mandatory consecutive sentence of 5 years to life imprisonment, up to a $250,000.00 fine, up to 5 years supervised release, and a $100 MSA. Any sentence imposed regarding the firearm offenses will run consecutive to the sentence imposed for the violation of the Hobbs Act Robbery offenses.
U. S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.
This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Neurosurgeon Medical Practice Director to Pay over $1 Million to Resolve False Claims Act Liability Arising from Billing of P-Stim DevicesRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that neurosurgeon Sagi M. Kuznits, practice director Pnina Kuznits, and Neurosurgical Care LLC (collectively, “Kuznits”), have agreed to pay $1,017,375.03 to resolve liability under the False Claims Act for the alleged improper billing of electro-acupuncture devices called Stivax and/or P-Stim and a memory-loss device called eVox.
From February 2017 through July 2018, Kuznits billed Medicare, TRICARE, and the Federal Employees Health Benefit Program for the implantation of neuro-stimulators – a surgical procedure which usually requires an operating room and which is reimbursed by federal healthcare programs – when in fact the only procedures performed had been the non-surgical application of P-Stim and Stivax by a physician assistant. P-Stim and Stivax are applied with an adhesive and insertion of a limited number of needles, and they do not involve surgery, anesthesia, or take place in an operating room. Federal healthcare programs do not reimburse for devices such as P-Stim or Stivax, whether they are characterized as an electro-acupuncture device or as an implantable neuro-stimulator. Other brand names for this device include NeuroStim, ANSiStim, E-Pulse, and NSS-2 Bridge.
In addition, Kuznits billed Medicare for a physician assistant’s application of an “eVox” device. Manufactured by Evoke Neuroscience, Inc., eVox consists of a cap with electrodes that are placed on the head and connected to a laptop by wires, purporting to measure certain “biomarkers” to assist in treatment of memory loss. Kuznits submitted claims to Medicare for payment using a combination of six reimbursable codes apparently in an effort to maximize reimbursement. The United States alleges that Medicare does not reimburse for eVox as billed, and especially not when one diagnostic test is mis-billed under multiple codes as if it were multiple different tests.
“Dr. Kuznits, as a surgeon, should have known better. P-Stim is clearly not surgery and should not be billed using the surgical codes improperly pushed by marketers,” said First Assistant U.S. Attorney Williams. “Dr. Kuznits failed to do his own independent due diligence which would have shown that he could not bill federal healthcare programs for P-Stim. Instead, he chose to take the money based on the self-serving representations of those selling the product that Medicare would pay for it.”
Now, in addition to this settlement, Dr. Kuznits is suing those marketers. See Neurosurgical Care, LLC v. Doc Solutions LLC, Civil Case No. 19-5751 (E.D. Pa.). “As this settlement shows,” continued First Assistant U.S. Attorney Williams, “if a marketer pushes a healthcare scheme like P-Stim that sounds too good to be true, it likely is – and you shouldn’t do it.”
This is the third electro-acupuncture device settlement announced in this District as part of an ongoing investigation. In recent months, other jurisdictions including the Southern District of Texas and the Middle District of Tennessee have also taken action to hold providers accountable. See https://www.justice.gov/usao-sdtx/pr/pain-doctor-pays-settle-allegations-deceptive-medicare-billing; https://www.justice.gov/usao-sdtx/pr/pain-doctor-pays-settle-allegations-deceptive-medicare-billing);https://www.justice.gov/usao-mdtn/pr/united-states-and-tennessee-file-suit-against-comprehensive-pain-specialists-and); https://www.tn.gov/attorneygeneral/news/2020/6/10/pr20-27.html#:~:text=Nashville%2D%20Tennessee%20Attorney%20General%20Herbert,Tennessee%20Medicaid%20False%20Claims%20Act.
“We continue to work closely with our partners at CMS’s Center for Program Integrity, the Department of Health and Human Services Office of Inspector General, other federal healthcare programs, state partners, and sister U.S. Attorney’s Offices around the country to hold accountable any other providers who inappropriately billed this device and any product distributors or marketers who may have devised or carried out such a billing scheme,” stated First Assistant U.S. Attorney Williams.
“Every dollar saved is critical to the sustainability of our Medicare program and the needs of our beneficiaries,” said Centers for Medicare and Medicaid Services Administrator Seema Verma. “We thank our partners at the Department of Justice and Department of Health and Human Services Office of Inspector General for working hard with us to identify, investigate, and eliminate waste, fraud and abuse in our federal healthcare programs.”
“Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG, CMS’s Center for Program Integrity, and the U.S. Attorney’s Office will continue to evaluate and pursue inaccurate billings of P-Stim and similar devices.”
The settled civil claims are allegations only. There has been no determination of civil liability. This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Matthew E. K. Howatt, Civil Chief Gregory B. David, and Auditor Dawn Wiggins.