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21 October 2020
Portland Man Accused of Civil DisorderRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Portland, Oregon man has been charged with Civil Disorder and Theft of Government Property during protest activities in Portland.
Jeffrey Richard Singer, 33, is charged in an two-count indictment with Civil Disorder in violation of Title 18 U.S.C. Section 231(a)(3) and, in a separate incident, Theft of Government Property in violation of Title 18 U.S.C. Section 641.
According to the court record, on the evening of October 4, 2020, Singer was one of a number of individuals protesting near the Portland City Hall in Downtown Portland. Singer charged at two officers with his shoulder lowered. He slammed into the officers, causing one of them to stagger backwards from the force of the impact and injuring that officer’s hands. After colliding with the officers, Singer was arrested.
In a separate incident on September 19, 2020, a group of individuals were protesting near the Gus Solomon Courthouse in downtown Portland. Singer is alleged to have stolen the U.S. flag from the Court’s flagpole.
Singer made his initial appearance in federal court today before U.S. Magistrate Judge Youlee Yim You. He was arraigned, pleaded not guilty, and ordered released pending a two-day jury trial scheduled to begin on December 22, 2020. While on release, he must abide by strict conditions, including a curfew from 8:30 p.m. until 6:00 a.m.
The Federal Bureau of Investigation investigated this case. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Plant City Man Pleads Guilty to Murder in Park, Next to Elementary SchoolRead the Press Release
Tampa, Florida – Wilmer Rosales, a/k/a “DoubleU,” (22, Plant City) has pleaded guilty to conspiring to traffic in controlled substances; conspiring to commit robbery; committing robbery; using a firearm and causing the first degree murder of Grant Urquhart in furtherance of the drug conspiracy; and possessing a firearm and ammunition as a convicted felon. Rosales faces up to life in federal prison. A sentencing date has not yet been set. Rosales’s co-defendant, Joel Sierra, a/k/a “Jojo,” (25, Plant City) is scheduled to plead guilty on November 12, 2020.
According to court documents, Rosales and Sierra lured Urquhart to Springhead Park, adjacent to an elementary school, in Plant City. Rosales and Sierra claimed they wanted to purchase marijuana from Urquhart, but they in fact planned to rob him. Rosales and other co-conspirators waited in nearby vehicles, armed—Rosales with a 7.62 mm rifle—while Sierra got into Urquhart’s vehicle for the robbery. Sierra robbed Urquhart of marijuana and money and then fled. When Urquhart chased Sierra, Rosales drove by and repeatedly fired the weapon at Urquhart, hitting him multiple times. Rosales and the other co-conspirators then left the scene. Rosales returned to the scene shortly after the shooting and again fired at Urquhart, who was lying on the ground while others were attempting to help him. Urquhart died from his gunshot wounds.
Prior to the murder, Rosales was previously convicted of possessing methamphetamine and possessing 20 grams or more of marijuana. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Natalie Hirt Adams.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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.
Pennsylvania Biofuel Company and Owners Sentenced on Environmental and Tax Crime Convictions Arising Out of Renewable Fuels FraudRead the Press Release
HARRISBURG – Two biofuel company owners were sentenced to prison for conspiracy and making false statements to the U.S. Environmental Protection Agency (EPA) and conspiracy to defraud the IRS and preparing a false tax claim announced U.S. Attorney David J. Freed for the Middle District of Pennsylvania, Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Jessica Taylor, Director of the EPA’s Criminal Enforcement Program, Chief Jim Lee, IRS Criminal Investigation, and Special Agent in Charge Michael J. Driscoll of the FBI's Philadelphia Field Office.
On October 20, 2020, U.S. District Judge John E. Jones III sentenced Ben Wootton, 55 of Savannah, Georgia, to 70 months and Race Miner, 51, of Marco Island, Florida, to 66 months, after a jury convicted both defendants and their company, Keystone Biofuels Inc. (Keystone), in April 2019. The company was originally located in Shiremanstown, Pennsylvania, and later in Camp Hill, Pennsylvania. Miner was the founder and chief executive officer of Keystone. Wootton was president of Keystone, and a former member of the National Biodiesel Board. The court ordered both men to pay restitution of $4,149,383.41 to the IRS and restitution of $5,076,376.07 to the Pennsylvania Department of Environmental Protection. Wootton and Miner will also have to serve a three-year term of supervised release after their term of imprisonment. Keystone was sentenced to five years’ probation and ordered to pay restitution of $4,149,383.41 to the IRS and restitution of $5,076,376.07 to the Pennsylvania Department of Environment Protection criminal fine.
“The EPA and IRS renewable fuels incentive programs are important components of the Congressional program to increase the use of biofuels to benefit the environment,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division. “Today’s sentences are a strong reminder that the federal government will not allow supposed “green” conmen to illegally take advantage of federal and state programs that are meant to offer financial incentives to enhance the environment and energy sustainability.”
“The complex fraud perpetrated by the defendants in this case struck directly at the heart of a government program that was specifically created to benefit the environment, business owners and the community at large,” said U.S. Attorney David J. Freed of the Middle District of Pennsylvania. “Encouraging companies to develop and provide for sale clean renewable fuels is truly a win-win proposition for everyone. Unfortunately, the defendants used this program to benefit only themselves. Today’s sentences send a clear message that my office, our federal partners and the United States Department of Justice will not tolerate renewable fuels fraud and related offenses.”
“The defendants defrauded the IRS and sought to profit from a system intended to protect the environment,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “The Tax Division will continue to aggressively investigate and prosecute with our partners such tax crimes.”
“Today’s sentencing demonstrates there are real penalties for those defrauding the Renewable Fuel Standard (RFS) program,” said Jessica Taylor, Director of the EPA’s criminal enforcement program. “With this action EPA and its enforcement partners are continuing to protect both the integrity of the RINs program and the American taxpayer.”
“Wootton and Miner actively engaged in a multimillion-dollar scheme designed to rob the government and line their own pockets. Today, they learned there is a steep price to be paid for such greed,” said Jim Lee, Chief, IRS Criminal Investigation (IRS-CI). “It is the partnerships between IRS-CI and other federal agencies like the EPA that allow cases like this to come to fruition, holding accountable those who seek to enrich themselves through fraudulent means.”
“The only green resource these two cared about was money, and they told lie after lie to perpetuate their fraud,” said Special Agent in Charge Michael J. Driscoll of the FBI's Philadelphia Field Office. “Fair warning to anyone else seeking to scam the U.S. government and taxpayers like this: the FBI and our partners stand ready to investigate and hold you accountable as well.”
Wootton, Miner, and Keystone falsely represented that they were able to produce a fuel meeting the requirements set by the American Society for Testing and Materials (ASTM) for biodiesel (a renewable fuel) and adopted by the EPA, and as such were entitled to create renewable fuel credits, known as RINs, based on each gallon of renewable fuel produced. The fuel and the RINs have financial value and could be sold and purchased by participants within the federal renewable fuels commercial system.
Wootton and Miner were also convicted of fraudulently claiming federal tax refunds based on IRS’s Biofuel Mixture Credit. The Biodiesel Mixture Credit is a type of “blender’s credit” for persons or businesses who mix biodiesel with diesel fuel and use or sell the mixture as a fuel. Wootton and Miner caused Keystone to fraudulently claim tax refunds based on non-qualifying fuel and, in at least some instances, non-existent or non-mixed fuel. In an attempt to hide their fraud scheme, the men created false corporate books and records and sham financial transactions to account for the nonexistent and non-qualifying fuel, and to create the appearance of legitimacy.
The prosecution of Wootton, Miner and Keystone is the first prosecution of a case under the federal renewable fuels program based on fuel that did not meet the program renewable fuel quality standards.
The case was prosecuted by Senior Litigation Counsel Howard P. Stewart of the Environment and Natural Resources Division’s Environmental Crimes Section, Assistant U.S. Attorney Geoffrey MacArthur, Special Assistant U.S. Attorney David Lastra, and Trial Attorneys Mark Kotila and Michael C. Vasiliadis of the Tax Division. EPA Region III Criminal Investigation Division, IRS Criminal Investigation and the FBI Philadelphia’s Harrisburg Resident Agency investigated the matter.
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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Pawtucket Man Indicted, Arraigned for Alleged Attempted Enticement of a MinorRead the Press Release
PROVIDENCE – A Pawtucket man was arraigned in federal court in Providence today on an indictment charging him with attempting to transfer obscene material to a minor and attempting to engage in prohibited sexual activity with a minor.
It is alleged that Tomy J. Fitton, 40, engaged in sexually explicit online chatroom conversations with a person he believed to be a 14 year-old girl and sent the girl multiple sexually explicit photographs. It is alleged that during the online chats, Fitton arranged to meet the girl at a specified location in Providence and to engage in illicit sexual activity.
The person Fitton was allegedly communicating with online was actually a member of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force. Fitton was arrested by members of the ICAC Task Force when he arrived at the Providence location.
It is alleged that a forensic examination of a cell phone belonging to Fitton revealed the chatroom conversations between Fitton and a member of the ICAC Task Force and the sexually explicit photographs he alleged sent to the person he believed to be a 14 year-old girl.
Fitton was ordered detained in federal custody following his arraignment today before U.S. District Court Magistrate Judge Patricia A. Sullivan on an indictment charging him with attempted enticement of a minor to engage in prohibited sexual activity and attempted transfer of obscene material to a minor, announced United States Attorney Aaron L. Weisman, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Michael S. Shea.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
If convicted as charged in the indictment, Fitton faces statutory penalties of between 10 years and life imprisonment and 5 years to lifetime supervised release.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The Rhode Island ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit along with detectives from the Warwick Police Department, Cranston Police Department, Newport Police Department, East Providence Police Department, Pawtucket Police Department, Bristol Police Department, North Kingstown Police Department, Portsmouth Police Department, and Homeland Security Investigations.
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Pascagoula Man Pleads Guilty Under Project EJECT to being a Convicted Felon Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – Lawrence Lavoy Jackson, 36, of Pascagoula, pled guilty today before U.S. District Judge Sul Ozerden, to being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 2, 2019, Moss Point Police officers encountered Jackson in a vehicle parked in front of a store in Jackson County. The vehicle was running, with the reverse lights on, and Jackson appeared to be asleep at the wheel of the vehicle. The police tapped on the window several times to get Jackson to respond. The officer had Jackson step out of the vehicle and found a 9 mm pistol in his waist band and 7 rounds of ammunition. Jackson had previous felony convictions and was prohibited from possessing a firearm.
On September 2, 2019, Jackson was indicted by a federal grand jury, charging him with illegally possessing a firearm as a convicted felon.
Jackson will be sentenced by Judge Ozerden on January 21, 2021, at 9:30 a.m. He faces a maximum penalty of not more than 10 years in prison and a $250,000 fine.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Moss Point Police Department. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Pain Clinic Owner Sentenced for Role in Operating Pill Mills in Tennessee and FloridaRead the Press Release
A pain clinic owner was sentenced today to over 33 years in prison for her role in operating several pill mills in Knoxville, Tennessee, and Hollywood, Florida.
Sylvia Hofstetter, 56, of Miami, Florida, was sentenced by U.S. District Judge Thomas A. Varlan. Judge Varlan also ordered the defendant to forfeit $3.6 million. Hofstetter was found guilty by a jury on Feb. 13, 2020, of Racketeer Influenced and Corrupt Organization (RICO) conspiracy, two counts of drug conspiracy, money laundering offenses, and maintaining drug-involved premises.
“This defendant reaped millions of dollars in personal profits by operating destructive opioid pill mills in multiple states, inflicting lasting harm on multiple communities,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This prosecution demonstrates the Department of Justice’s steadfast commitment to combatting the opioid crisis and holding responsible the unscrupulous individuals who seek to profit from it.”
“The Eastern District of Tennessee remains at the forefront in the battle against illegal pain clinics and the mass-prescribing of opioids,” said U.S. Attorney J. Douglas Overbey for the Eastern District of Tennessee. “Through the cooperation and hard work of our local, state, and federal agencies, we continue to pursue and prosecute those who seek to endanger our communities by illegally distributing prescription pain killers. Let this sentencing serve as a deterrent for those who seek to profit from fueling a tragic cycle of addiction and pain killer abuse.”
“The nation remains in the midst of a drug crisis that is often fueled by pill mills. Drug addiction destroys lives and devastates families,” said Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office. “The FBI will work tirelessly with our federal, state and local law enforcement partners to investigate, arrest and hold accountable those who use illegal means and criminal behavior to take advantage of others.”
The evidence at trial proved that the pill mills owned and operated by Hofstetter and her co-defendants distributed over 11 million tablets of oxycodone, oxymorphone, and morphine that generated over $21 million in revenue, with a corresponding street value of $360 million. The conspiracy involved four separate clinics in Tennessee, each of which the jury determined were drug-involved premises, i.e., pill mills. Before coming to Tennessee, Hofstetter worked at a pill mill in Hollywood, Florida, owned by three of her co-defendants. The evidence at trial demonstrated that, as law enforcement shut down hundreds of pill mills in South Florida during that time-period, Hofstetter and her co-defendants planned the move to East Tennessee where a large percentage of these clinics’ opioid-addicted customers lived.
Hofstetter’s role in Tennessee was to run the pill mills and ensure that patient volume remained high, thus guaranteeing enormous profits for Hofstetter and her co-defendants. Once in Tennessee, however, Hofstetter opened her own pill mills in secret from her Florida employers and went into competition against them. Hofstetter personally reaped over $4 million from her role in these offenses.
This sweeping prosecution, which has resulted in approximately 140 convictions so far, is the result of an investigation by the U.S. Attorney’s Office for the Eastern District of Tennessee, the Criminal Division’s Organized Crime and Gang Section (OCGS), and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. Other agencies provided invaluable assistance, including the Rome Attaché of the Justice Department’s Office of International Affairs, FBI’s liaison in Rome, FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the U.S. Department of Health and Human Services, the Tennessee Department of Health, and the Drug Enforcement Administration’s Knoxville Diversion Group.
The investigation that led to this prosecution, as described above, fall under the auspices of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Assistant U.S. Attorney Tracy L. Stone and Deputy Chief Attorney Kelly Pearson and Trial Attorney Damare Theriot of OCGS are prosecuting 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.
Pain Clinic Owner Sentenced for Role in Operating Pill Mills in Tennessee and FloridaRead the Press Release
KNOXVILLE, Tenn. – On October 21, 2020, defendant Sylvia Hofstetter, was sentenced today to 400 months in prison for her role in operating several pill mills in Knoxville, Tennessee and Hollywood, Florida.
Acting Assistant Attorney General Brian C. Rabbit of the Justice Department’s Criminal Division, U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee, and Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field office made the announcement.
Sylvia Hofstetter, 56, of Miami, Florida, was sentenced by United States District Judge Thomas A. Varlan. Judge Varlan also ordered the defendant to pay $3.6 million in forfeiture. Hofstetter was found guilty by a jury on February 13, 2020, of Racketeer Influenced and Corrupt Organization (RICO) conspiracy, two counts of drug conspiracy, money laundering offenses, and maintaining drug-involved premises.
The evidence at trial proved that the pill mills owned and operated by Hofstetter and her co-defendants distributed over 11 million tablets of oxycodone, oxymorphone, and morphine that generated over $21 million in revenue, with a corresponding street value of $360 million. The conspiracy involved four separate clinics in Tennessee, each of which the jury determined were drug-involved premises, i.e., pill mills. Before coming to Tennessee, Hofstetter worked at a pill mill in Hollywood, Florida owned by three of her co-defendants. The evidence at trial demonstrated that, as law enforcement shut down hundreds of pill mills in South Florida during that time-period, Hofstetter and her co-codefendants planned the move to East Tennessee where many of these clinics’ opioid-addicted customers lived.
Hofstetter’s role in Tennessee was to run the pill mills and ensure that patient volume remained high, thus guaranteeing enormous profits for Hofstetter and her co-defendants. Once in Tennessee, however, Hofstetter opened her own pill mills in secret from her Florida employers and went into competition against them. Hofstetter personally reaped over $4 million dollars from her role in these offenses.
“This defendant reaped millions of dollars in personal profits by operating destructive opioid pill mills in multiple states, inflicting lasting harm on multiple communities,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This prosecution demonstrates the Department of Justice’s steadfast commitment to combatting the opioid crisis and holding responsible the unscrupulous individuals who seek to profit from it.”
"The Eastern District of Tennessee remains at the forefront in the battle against illegal pain clinics and the mass-prescribing of opioids," said U.S. Attorney Overbey. "Through the cooperation and hard work of our local, state, and federal agencies, we continue to pursue and prosecute those who seek to endanger our communities by illegally distributing prescription pain killers. Let this sentencing serve as a deterrent for those who seek to profit from fueling a tragic cycle of addiction and pain killer abuse."
"The nation remains in the midst of a drug crisis that is often fueled by pill mills. Drug addiction destroys lives and devastates families. The FBI will work tirelessly with our federal, state and local law enforcement partners to investigate, arrest and hold accountable those who use illegal means and criminal behavior to take advantage of others," said FBI Special Agent in Charge, Joseph Carrico.
This sweeping prosecution, which has resulted in approximately 140 convictions so far, results from an investigation by the United States Attorney’s Office for the Eastern District of Tennessee, the Organized Crime and Gang Section, U.S. Department of Justice, and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. Other agencies provided invaluable assistance, including the Rome attaché of the Office of International Affairs, U.S. Department of Justice, FBI’s liaison in Rome, FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the United States Department of Health and Human Services, the Tennessee Department of Health, and the Drug Enforcement Administration’s Knoxville Diversion Group.
The investigation that led to this prosecution, as described above, fall under the auspices of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Assistant U.S. Attorney Tracy L. Stone, Deputy Chief Attorney Kelly Pearson, and Trial Attorney Damare Theriot, Organized Crime and Gang Section, U.S. Department of Justice, represented the United States in the prosecution of this case.
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Ohio woman admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Bailey N. Robinson, of Belmont, Ohio, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Robinson, age 20, pled guilty to one count of “Aiding and Abetting the Distribution of Methamphetamine.” Robinson admitted to helping to distribute methamphetamine in April 2020 in Marshall County.
Robinson faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Ohio Man Sentenced to 70 Months in PrisonRead the Press Release
FORT WAYNE-Julius Moore, age 37, of Van Wert, OH, was sentenced by United States District Judge Holly A. Brady after his plea of guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Moore was sentenced to 70 months in prison followed by 2 years of supervised release.
According to documents in this case, Moore having a previous felony conviction for domestic violence, possessed a firearm in August 2019. Specifically, while being subject to a protective order, Moore appeared at the complainant’s place of work, and confronted the individual while having a firearm visible on his person. He was later found to have possessed a second firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department and Allen County Sheriff’s Department. This case was handled by Assistant United States Attorney Stacey Speith.
Norwich Man Charged with Child Exploitation OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that, on October 5, 2020, a federal grand jury in New Haven returned an indictment charging WILLIAM MEIER, 38, of Norwich, with one count of use of the internet to attempt to persuade a minor to engage in sexual activity, and one count of attempted transfer of obscene materials to a minor.
The indictment alleges that, on August 5, 2020, Meier transferred an obscene image to a person that he believed was under the age of 16, and that he used a cellphone and an internet-based messaging application in an attempt to solicit illicit sex with a minor.
Meier appeared today via videoconference before U.S. Magistrate Judge Robert A. Richardson and pleaded not guilty to the charges. He has been detained since his arrest by the New London Police Department on related state charges on August 6, 2020.
If convicted of the charges, Meier faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the New London Police Department. The case is being prosecuted by Assistant U.S. Attorney Patrick J. Doherty.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Nine Individuals Face Federal Drug Trafficking Charges, Involved in Network Distributing Methamphetamine, HeroinRead the Press Release
SALT LAKE CITY – A status conference is set for Nov. 23, 2020, for nine individuals charged in what the indictment alleges were conspiracies to distribute methamphetamine and heroin in the Salt Lake Valley and Idaho. A federal grand jury returned a four-count indictment earlier this month. The investigation, led by DEA Metro Narcotics Task Force and IRS Criminal Investigation, started in March 2020.
The lead defendant in the case is Toulon Mattox, 41, of Taylorsville, who was arrested after a federal judge signed a complaint alleging the conspiracies. According to the indictment, Mattox has a previous conviction for conspiracy to distribute controlled substances in federal court in Idaho. He was sentenced to 33 months in federal prison and 60 months of supervised release in that case. He started his supervised release in October 2015 and moved to Utah. He filed a motion for early termination of his supervised release in November 2017, which was granted, according to a complaint filed in the case.
Mattox, according to the complaint, owned a restoration company that repairs and restores homes contaminated by methamphetamine. Mattox provided drugs to employees of his business, specifically methamphetamine, the complaint alleges.
Mattox is charged with conspiracy to distribute methamphetamine in the first count of the indictment. Also charged in that count are Lupe Gene Sandoval, 41, of West Valley City, Jerod B. Meyer, 34, of South Salt Lake City, Kelly Ann Cockrell, 43, of Salt Lake City, Michael Kermitt Nugent, 46, and James Walker Taylor, 46, both of Idaho Falls, Idaho, Fred James Schaffer, 56, of West Valley City, and Whitney Carter, 31, of Provo.
Mattox is charged with conspiracy to distribute heroin in the second count of the indictment. Sandoval, Meyer, Cockrell and Jose Armenta-Sanchez, 30, a citizen of Mexico living in Salt Lake City, are also named in that count.
Mattox, Taylor, and Carter are charged with conspiracy to commit money laundering in the third count of the indictment and Armenta-Sanchez is charged with possession of heroin with intent to distribute in the final count of the indictment.
Acting on a tip, the DEA Metro Narcotics Task Force initiated an investigation of Mattox and others in March 2020 using court-authorized investigative tools. Information shows Mattox had a source for drugs who resided in California and that many of Mattox’s drug customers lived in Idaho. The investigation resulted in the charges in the federal indictment, including the conspiracies to distribute methamphetamine and heroin. The charges allege that between April 2019 and September 28, 2020, the defendants conspired to distribute of up to 4 pounds of heroin and up to 17 pounds of methamphetamine.
Mattox has been detained pending resolution of the case. U.S. Magistrate Judge Daphne A. Oberg found that although he did well on supervision after his previous drug conviction, just 18 months after Mattox was released from supervision early, he apparently became involved in drug trafficking behavior as the ringleader of the conspiracy. Judge Oberg found him to be an unmanageable risk of danger to the community.
Magistrate Judge Oberg found Cockrell poses an unmanageable risk of danger to the community as well as a risk of nonappearance based on the significant number of times she has failed to appear in previous criminal cases.
Meyer did not contest detention at his initial appearance and Carter was released on conditions of supervised release. Sandoval had an initial appearance last week and Magistrate Judge Oberg found he posed a danger to the community and a risk of non-appearance and ordered him detained pending resolution of the case. Nugent, who was arrested in Idaho, has an initial appearance Thursday before Magistrate Judge Oberg. Armenta-Sanchez is scheduled for an arraignment and detention hearing on Oct. 28, 2020. Taylor and Schaffer have not appeared on the charges.
The potential maximum penalty for conspiracy to distribute methamphetamine is life in prison with a 10-year mandatory minimum. The potential maximum penalty for conspiracy to distribute heroin is 20 years in prison. Conspiracy to commit money laundering has a potential penalty of 20 years in prison. Possession of heroin with intent to distribute heroin carries a potential 40-year sentence with a five-year mandatory minimum.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorneys in the U.S. Attorney’s Office are prosecuting the case. Members of the DEA Metro Narcotics Task Force and special agents of IRS Criminal Investigation are conducting the investigation.
Nine Defendants Face Federal Charges in Alleged Racketeering Conspiracy to Smuggle Contraband into Maryland's Chesapeake Detention Facility in Exchange for BribesRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment charging nine defendants with a racketeering conspiracy at the Chesapeake Detention Facility (CDF), in Baltimore, Maryland. The indictment charges three correctional officers (COs), four detainees, and two outside “facilitators” for their roles in the conspiracy, which allegedly involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison. The indictment was returned on October 14, 2020, and made public today.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert Green of the Maryland Department of Public Safety and Correctional Services.
“Corrupt correctional officers endanger the lives of their co-workers and of the detainees entrusted to their care and supervision,” said United States Attorney Robert K. Hur. “They also endanger the entire community, as prisoners can use contraband cell phones to direct criminal activity outside prison walls. The United States Attorney’s Office will continue to work with our law enforcement partners to root out prison corruption and prosecute correctional officers who abuse their positions of trust to facilitate and engage in criminal behavior.”
“In a city like Baltimore where fighting crime is a top priority, we cannot and will not accept perpetuation of a cycle of illegal activity inside prison walls,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “Today’s indictment shows that no one in a position of public trust who carries out a criminal conspiracy is beyond the reach of the dedicated agents, officers and detectives from our federal, state, and local law enforcement partners.”
“The Department’s mission is to protect its employees, detainees and inmates, and the public. Any introduction of contraband or breach of integrity threatens that mission and will not be tolerated, which is precisely why we initiated the investigation and asked the U.S. Attorney to assist,” said Secretary Robert L. Green. “We are grateful for their partnership.”
According to the indictment, CDF is run by the Maryland Department of Public Safety and Correctional Services (DPSCS) pursuant to a contract with the United States Marshals Service (USMS) and used solely for the housing of federal pretrial detainees. CDF is a maximum-security prison that houses approximately 500 male and female detainees. There are six housing areas, or “pods” in CDF and in 2020, the facility has 198 correctional officers and other employees.
The indictments alleges that from at least 2016 through the date of the indictment, the COs smuggled contraband into CDF, including narcotics, cell phones, and tobacco. The indictment alleges that the narcotics smuggled into CDF included marijuana and synthetic cannabinoids (otherwise known as “K2”), and buprenorphine, commonly referred to as “Suboxone.” Detainees allegedly acted as both wholesalers and retailers of contraband and in the process made profits that far exceeded the profits that could be made by selling similar drugs on the street. For example, defendant detainees could purchase Suboxone strips for $8 each and sell them inside CDF for $75 each, or for a profit of more than 800 percent.
According to the indictment, although COs and other CDF employees were required to pass through security screening at the entrance to CDF, defendant COs were able to hide contraband on their persons, in their clothing, and in bags or containers of food. Further, COs took breaks during their shifts and returned to their cars to retrieve contraband. In other cases, the defendant COs avoided passing through the metal detector in the main lobby at CDF, enabling them to enter the facility and leave contraband in the lockers or in the Officer’s Dining Room, among other locations. Once the COs had the smuggled contraband inside the facility, they delivered it to: detainees in their cells; in private offices where detainees and staff interacted; in the hallways of detainee housing pods; and pre-arranged “stash” locations like janitorial carts or the laundry or property rooms within the jail. Detainees who were assigned jobs that enable them to move throughout the jail, also known as “working men,” took orders from fellow detainees, provided such orders to corrupt COs, and delivered contraband to other detainees on behalf of corrupt COs.
According to the indictments, the defendant detainees and facilitators paid the defendant COs for smuggled contraband using cash and electronic payment platforms, including Cash App. Some COs also engaged in sexual relations with detainees in exchange for smuggling contraband into CDF. The defendant detainees received payments from other detainees for contraband transactions via Cash App and other methods, often with the assistance of facilitators.
If convicted, each defendant faces a maximum sentence of 20 years in prison for the racketeering conspiracy.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the CDF investigation and have been full partners in this investigation.
United States Attorney Robert K. Hur commended the FBI and DPSCS for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Peter J. Martinez and Christina A. Hoffman, who are prosecuting the case.
CDF Indictment Defendants
Correctional Officers:
- Darren Parker, age 45, of Baltimore;
- Andre Davis, a/k/a 2Chainz, age 35, of Baltimore; and
- Talaia Youngblood, age 35, of Randallstown, Maryland.
Detainees:
- James Hair, a/k/a Mook, age 29;
- Donte Thomas, a/k/a Cruddy, age 33;
- Bernard Bey, a/k/a Tony Bey, age 50; and
- Andre Webb, a/k/a Arnie, age 33.
Facilitators:
- Lynette Carlest, age 48, of Baltimore; and
- Jasmine Coleman, age 28, of Baltimore.
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New Orleans Man Sentenced for Conspiracy to Distribute Drugs and Firearms OffensesRead the Press Release
NEW ORLEANS – The U.S. Attorney’s Office, Eastern District of Louisiana announced that on October 20, 2020, MICHAEL HOLMES, age 40, of New Orleans, was sentenced by United States District Judge Eldon E. Fallon after previously pleading guilty to drug and firearms offenses.
Specifically, HOLMES previously pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine, 100 grams or more of heroin, and a quantity of cocaine base, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 846; two counts of possessing a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i), and one count of possession with intent to distribute heroin, in violation of 21 U.S.C. § 841(a)(1) and 841(b)(1)(C).
According to court records, HOLMES and others conspired to distribute heroin, cocaine, and cocaine base in the New Orleans metropolitan area and elsewhere. Moreover, HOLMES possessed a Glock 27 .40 caliber pistol and a Sig Sauer P228 9mm semi-automatic pistol in furtherance of the drug trafficking conspiracy.
In total, Judge Fallon sentenced HOLMES to 180 months of imprisonment, 5 years of supervised release, and a $400 special assessment.
The U.S. Attorney’s Office praised the work of the Drug Enforcement Administration and Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Elizabeth Privitera and Jonathan L. Shih are in charge of the prosecution.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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New Orleans Man Charged with Transportation and Distribution of Files Depicting the Sexual Victimization of ChildrenRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that MICHAEL PAUL PERRILLOUX, age 42, a resident of New Orleans, Louisiana, was arrested on October 16, 2020 after previously being charged by a federal grand jury in a four-count Indictment with transportation and distribution of images and videos depicting the sexual exploitation of children, in violation of 18 U.S.C. ' 2252(a)(1) and 2252(a)(2). PERRILLOUX is charged with uploading such files to an online storage account on at least three dates between 2017 and 2018 (Counts 1 through 3). He is also charged with distributing such files in September 2018 (Count 4).
PERRILLOUX faces a mandatory minimum term of imprisonment of five (5) years and a maximum term of imprisonment of twenty (20) years for each count. PERRILLOUX also faces a lifetime of supervised release, a $250,000 fine, and can be required to register as a sex offender.
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.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= 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 www.projectsafechildhood.gov.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter, with support from the Orleans Parish Police Department. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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New Jersey Man Charged with Fraudulently Obtaining Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A Newark man made his initial appearance today on charges of engaging in fraud by illegally obtaining unemployment insurance benefits, U.S. Attorney Craig Carpenito announced today.
Jefferson Robert, 30, was arrested on Oct. 20, 2020, by inspectors of the U.S. Postal Inspection Service and special agents of the U.S. Department of Labor, Office of Inspector General, and the FBI. He is charged by complaint with one count of wire fraud and appeared by videoconference for his initial appearance today before U.S. Magistrate Judge James B. Clark III.
According to documents filed in this case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment (e.g., self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance (FPUC) that provided an additional $600 weekly benefit to those eligible for PUA and regular unemployment insurance benefits. The Washington State Employment Security Department (ESD) administered and managed the regular unemployment and PUA programs in the State of Washington.
On Aug. 6, 2019, Robert opened a bank account at Bank 1 in the name of “Johny Eto” using a fake United Kingdom passport. On May 8, 2020, an application was made to ESD for unemployment benefits in the name of an individual (Victim 1) using Victim 1’s personal identification information. On May 12, 2020, pursuant to instructions by the individual purporting to be Victim 1, the State of Washington sent a wire transfer into a bank account in the amount of $7,930.
This bank account received additional funds from a Business Enterprise Compromise scheme as well as IRS payments resulting from fraudulent activity. Between March 11, 2020, and May 1, 2020, a debit card associated with the bank account was used to purchase approximately 57 U.S. Postal Service money orders totaling $52,000. The “from” information on most of the money orders listed the name “Jefferson Robert” and an address in Newark. Records from New Jersey Motor Vehicle Commission reflect that Robert provided that address when obtaining a driver’s license.
Robert also used the fraudulent UK passport to open bank accounts at three other banks. These accounts were all frozen or closed due to suspicious activity. For example, on Sept. 19, 2019, a check payable to “Johny Eto” in the amount of $27,400 was deposited into one of those bank accounts. The check was drawn on an account in the name of an individual, who stated that he did not open the account and does not know either Johny Eto or Robert.
Robert and his conspirators caused losses of more than $500,000.
U.S. Attorney Carpenito credited inspectors of the United States Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, in Newark; special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka, in New York, and 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 arrest.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: [email protected].
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Nassau County Fire and Rescue Employee Arrested and Charged with Accessing with Intent to View Child Exploitation MaterialRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Robert Arthur Ginder (34, Callahan) has been charged by federal criminal complaint with access with intent to view child exploitation material. Ginder faces a maximum penalty of 20 years in federal prison and a potential life term of supervised release. Ginder has been detained pending a hearing scheduled for October 23, 2020.
According to the complaint, an investigation was initiated by law enforcement after they gained access to a cloud platform and a group chat where users were actively involved in the distribution of child exploitation material. Law enforcement observed that when one particular user joined the group chat, numerous image and video files depicting child exploitation material were shared between various members of the group.
Further investigation by Homeland Security Investigations identified Ginder’s residence as the source of the IP addresses that had been used by the account on the cloud platform. On October 20, 2020, HSI agents executed a search warrant at Ginder’s residence, and he was subsequently arrested.
A criminal complaint is only an allegation and every defendant is presumed innocent until proven guilty.
This case was investigated by Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Ashley Washington.
This is another case that was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Muscatine Woman Sentenced to Prison for False StatementsRead the Press Release
DAVENPORT, Iowa — On October 20, 2020, United States District Chief Judge John A. Jarvey sentenced Malinda Jean Sotelo, age 38, of Muscatine, to two months in prison for False Statements she made on tenant information forms for housing assistance announced United States Attorney Marc Krickbaum. Sotelo was ordered to serve three years of supervised release following her prison term and pay $32,110.00 in restitution as well as $100 to the Crime Victims’ Fund.
On June 17, 2020, Sotelo pleaded guilty to one count of False Statements. From 2012 through 2017, Sotelo received housing assistance through the United States Department of Housing and Urban Development (HUD). She also received food assistance (SNAP) and cash assistance through the Family Investment Program (FIP aka Temporary Assistance to Needy Families), which are benefit programs administered by the Iowa Department of Human Services. Sotelo falsified 15 forms used by the two agencies to determine her eligibility for benefits and the amounts she was entitled to receive. On these forms, Sotelo purposefully failed to include her significant other as a resident of her household, and she failed to report his income. Due to the false information provided on these forms, Sotelo received $32,110 in unentitled housing assistance, $11,017 in unentitled food assistance, and $15,022 in unentitled cash assistance.
This matter was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General, and the Iowa Department of Inspections and Appeals. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Minneapolis Resident Accused of Engaging in Multiple Acts of Vandalism and Violence Including Throwing Rocks at Police During Civil Disorder in PortlandRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Minneapolis, Minnesota resident has been charged with engaging in multiple acts of vandalism and violence including throwing rocks at police officers engaged in lawful crowd dispersal during a civil disorder event.
A federal grand jury in Portland has returned a one-count indictment charging Adrian Ruben De Los Rios, 32, with Civil Disorder.
According to court documents, in the evening of August 5, 2020, a group of individuals blocked traffic on SE 106th Avenue outside of Portland Police Bureau’s (PPB) East Precinct. By 9:40 p.m., people began tearing off the boards that were protecting the glass windows of East Precinct. An unlawful assembly was declared shortly before 10:00 p.m. and PPB made public address announcements telling the group to leave the area.
A PPB officer inside the East Precinct witnessed an individual, later identified as De Los Rios, throw several chunks of concrete at the building’s glass, and strike the building’s glass with a hammer. Afterward, the same officer observed De Los Rios at a fire that was in a trash can approximately one foot away from the front door of the East Precinct. De Los Rios was seen placing a 2x4 piece of lumber into the fire and leaning it up against the building. Other PPB officers reported viewing videos on the internet that depicted De Los Rios engaging in the above-mentioned acts. A PPB officer also reported viewing a video that showed De Los Rios placing a 2x4 piece of wood through the exterior door handles of the East Precinct and ramming the doors with what appeared to be a 4x4 piece of wood.
Later in the evening, as PPB officers were dispersing the crowd, a PPB officer witnessed De Los Rios throw multiple baseball-size rocks at police officers. On one occasion, De Los Rios threw a rock at the officer while holding additional rocks in his opposite hand. The officer was able to continually observe De Los Rios while PPB officers were dispersing the crowd. De Los Rios was located later and taken into custody, wearing the same clothing as earlier in the evening. A search incident to arrest revealed two baseball-size rocks inside De Los Rios’s backpack.
Adrian Ruben De Los Rios made an initial appearance in federal court today before U.S. Magistrate Judge Youlee Yim You, was arraigned, pleaded not guilty, and was ordered released pending a two-day jury trial scheduled to begin on December 22, 2020.
The FBI investigated this case. It is being prosecuted by Assistant U.S. Attorneys for the District of Oregon. An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Michigan man admits to meth chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Shook, of Detroit, Michigan, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Shook, age 32, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Shook admitted to having methamphetamine in August 2020 in Monongalia County.
Shook faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Miami Lawyer Charged with Bank RobberyRead the Press Release
Miami, Florida – Federal prosecutors have charged 41-year-old Miami lawyer Aaron Patrick Honaker with committing a series of bank robberies and attempted bank robberies in South Florida over the past three weeks.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and FBI Miami Special Agent in Charge George L. Piro made the announcement.
The criminal complaint charges Honaker with robbing $1050 from an Aventura bank on October 3, and robbing $800 from a Coral Gables bank on October 10. It also charges him with attempting to rob four banks in Coral Gables around that same time.
According to allegations in the complaint affidavit, Honaker followed a consistent approach during the six robbery attempts, two of which were successful: Honaker would enter each bank alone, walk up to a teller window, and ask the teller for assistance in making a withdrawal. Honaker would pass a note to the bank teller that contained hand-written instructions and warnings, such as “[d]on’t touch the alarm or call the police,” “empty all of your $50s and $100s and put it in an envelope,” and “[k]eep calm, and give me all the money in the drawer, I have a gun.” Honaker would take his note with him on the way out of the bank, says the affidavit.
FBI Miami issued law enforcement bulletins containing descriptions and bank surveillance images of the robber. According to the complaint, on October 20, officers spotted a man matching the FBI bulletin descriptions who appeared to be casing the area around a Coral Gables bank. Officers approached the man and identified him as Honaker.
At the time of his arrest, Honaker had a ball-point hammer tucked in his waistband and carried what appeared to be bank robbery demand notes and instructions on “how-to” commit bank robberies, says the affidavit. The affidavit also describes items that officers found inside Honaker’s backpack, including draft and final versions of two bank robbery notes.
Honaker had his initial appearance today before U.S. Magistrate Judge Alicia M. Otazo-Reyes. His pretrial detention hearing is set for Friday, October 23, at 11:00 a.m., in federal magistrate court in Miami.
FBI Miami investigated this case, with cooperation and assistance from Coral Gables Police Department and Aventura Police Department. Assistant United States Attorneys Michael Gilfarb, Lauren Astigarraga, and Christopher Hudock of the Southern District of Florida are prosecuting this case.
A criminal complaint is merely an accusation containing allegations. A defendant is presumed innocent unless and until found guilty in a court of law.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-mj-03861.
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Mexican nationals get significant sentences for trafficking methRead the Press Release
LAREDO, Texas - Two Mexican nationals have been ordered to federal prison for conspiring to possess with the intent to distribute approximately 14 kilograms of meth, announced U.S. Attorney Ryan K. Patrick.
Julio Cesar Salinas-Saucedo, 40, and his nephew Juan Manuel Lira-Salinas, 32, pleaded guilty Feb. 4.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Lira-Salinas to serve 168 months in federal prison for being a leader-organizer. Salinas-Saucedo received a 60-month sentence for his role in the scheme. Not U.S. citizens, both are expected to face removal proceedings following their terms of imprisonment.
In handing down the sentence, the court noted there was no thought to the people of the United States who would have been harmed by these drugs had their conspiracy been successful. The court also noted Lira-Salinas was the primary leader and organizer of the conspiracy.
On July 28 and July 30, 2017, authorities discovered two suspicious bags among the luggage of Turimex travel buses attempting to travel through the North Laredo Border Patrol checkpoint. The bags contained a total of eight bundles of meth.
The buses had departed the Laredo Turimex station and were bound for Houston.
The investigation led to Salinas-Saucedo and Lira-Salinas as the coordinators of the smuggling events. Both men provided drug-laden bags to couriers who were later arrested and convicted for trafficking meth.
They have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation jointly with assistance of Border Patrol and the Laredo Police Department’s Narcotics Unit. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Meth Dealer, Caught with 80+ Kilos of 100% Pure “Ice” During I-75 Traffic Stop, Pleads Guilty to Drug ChargeRead the Press Release
MACON, Ga. – A man arrested during a routine traffic stop on I-75 carrying more than 80 kilos of “ice” methamphetamine has pleaded guilty to possession with intent to distribute methamphetamine, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Miguel Angel Sanchez Alvarez, 24, of Ceres, California, pleaded guilty to one count of possession with intent to distribute methamphetamine before U.S. District Judge Mark Treadwell. Sanchez Alvarez faces a maximum sentence of life in prison and a $10,000,000 fine. Sanchez Alvarez will be sentenced at 10:00 a.m. on January 13, 2021.
According to the facts the Government entered in federal court, on January 31, 2019, a Lamar County deputy pulled Sanchez Alvarez over on I-75 for a traffic violation. The deputy immediately smelled marijuana emanating from the defendant’s vehicle. A legal search was conducted, and the deputy located a suitcase containing a substantial amount of methamphetamine. The deputy found more methamphetamine under the driver and passenger seats and inside of the vehicle’s trunk. In total, law enforcement recovered 86,903 grams of 100% pure d-Methamphetamine Hydrochloride, also known as “ice.”
“The defendant was pushing a massive amount of deadly ice methamphetamine into our communities, and he will soon face severe consequences for his decision—federal prison without parole,” said U.S. Attorney Charlie Peeler. “I want to thank our local, state and federal law enforcement partners for their efforts in this case.”
The case was investigated by the Lamar County Sheriff’s Office and the DEA. Assistant U.S. Attorney Steven Ouzts is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.McKeesport Felon Charged with Illegal Gun PossessionRead the Press Release
PITTSBURGH - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Jajuan Cash, age 24, as the sole defendant.
According to the Indictment, on October 17, 2020, Cash possessed a firearm, specifically a Glock semi-automatic pistol, knowing he had been previously convicted of Aggravated Assault, in the Court of Common Pleas of Allegheny County, on May 7, 2018. Federal law prohibits felons from possessing firearms.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. However, if it is determined that the defendant has three previous convictions for a violent felony or a serious drug offense, or both, then the term of imprisonment is not less than 15 years to a maximum of life imprisonment. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the Indictment in this case.
The case is being prosecution as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
McAlester Man Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stephen Jack Nelson, age 32, of McAlester, Oklahoma entered a guilty plea to Assault With A Dangerous Weapon With Intent To Commit Bodily Harm In Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151 and 1153, punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about May 26, 2020, within the Eastern District of Oklahoma, in Indian Country, Stephen Jack Nelson, an Indian, did assault T.N. with a dangerous weapon with intent to do bodily harm.
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.
Special Assistant United States Attorney David Youll represented the United States at the plea hearing.
Maryland Man Facing Federal Charge for Threatening Former Vice President Joe Biden and Senator Kamala HarrisRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed today charging James Dale Reed, age 42, of Frederick, Maryland, on the federal charge of threats against a major candidate for President or Vice President—specifically, former Vice President Joe Biden and Senator Kamala Harris. Reed is currently in state custody and a federal warrant has been lodged as a detainer to ensure his appearance in U.S. District Court at a future date.
The federal charge was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Bo Keane of the United States Secret Service - Baltimore Field Office.
United States Attorney for the District of Maryland Robert K. Hur stated, “We take these types of threats extremely seriously. Such threats to commit violence are illegal and have no place in our democracy, and we will hold accountable those who make them. We are grateful for the assistance of the City of Frederick Police Department and to citizens who provided tips that ultimately led to Mr. Reed’s arrest and these federal charges.”
According to the affidavit filed in support of the criminal complaint, on October 4, 2020, a letter threatening candidates for President and Vice President—specifically, former Vice President Joe Biden and Senator Kamala Harris—was left on the doorstep of a resident in Frederick in the early hours of the morning. The likeness of the subject delivering the letter was captured by a door camera. The resident did not know the subject but had several signs in the yard supporting the candidates threatened in the letter. The letter, which is included in full in the attached Complaint, contains the following passage:
“This is a warning to anyone reading this letter if you are a Biden/Harris supporter you will be targeted. We have a list of homes and addresses by your election signs. We are the ones with those scary guns, We are the ones your children have nightmares about…When We capture Grandpa Biden We will all severely beat him to the point of death as for Mrs. Harris she will be bent over and Anally raped by my rifle barrel. Then for the Grand end the [sic] both will be executed on National Television.”
“The right to vote and peacefully support the candidate of your choice are bedrocks of our democracy,” said U.S. Attorney Hur. “Conduct like this that threatens major candidates and fellow citizens only undermines our democracy and the principles upon which America was founded. We will not tolerate threatening conduct that seeks to intimidate, harass or dissuade Americans from exercising their right to vote.”
Investigators worked to identify the subject in the door camera video and after receiving a citizen tip, focused on Reed. An individual familiar with Reed viewed the door camera likeness and confirmed that person was Reed. On October 13, 2020, Reed was interviewed at his residence and denied leaving a threatening letter or being the individual in the door camera video that was shown to him. Two days later, Reed admitted writing and delivering the letter and was arrested.
If convicted, Reed faces a maximum sentence of five years in federal prison.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the U.S. Secret Service for its work in the investigation and thanked the Frederick Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys James G. Warwick and Cassie Mathias, who are prosecuting the case.
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Man Pleads Guilty to ATM Skimming Fraud that Targeted Navy FederalRead the Press Release
NEWPORT NEWS, Va. – A Romanian man who was extradited to the United States pleaded guilty today to an ATM skimming fraud scheme targeting Navy Federal Credit Union (NFCU) that resulted in hundreds of thousands of dollars in losses.
According to court documents, in 2014 and 2015, Aurel Eremia, 43, and several other conspirators engaged in widespread effort to install portable card reading devices (skimming devices) and micro camera equipment inside and over the mouth of NFCU ATMs card readers and keypads. Eremia and the conspirators used such devices to record and to acquire, without lawful authorization, the personal identification and financial information of NFCU customers.
Conspirators stored and transferred by electronic means the personal identification and financial information fraudulently obtained. Then, conspirators transferred and used the information to gain unauthorized access to bank and credit accounts belonging to NFCU customers by, among other things, re-encoding account numbers onto the magnetic strips of other cards, including gift cards. The re-encoded cards, in combination with the corresponding PINs, were used to make unauthorized withdrawals and transfers from the compromised NFCU accounts, in the Eastern District of Virginia and elsewhere. The conspiracy resulted in hundreds of thousands of dollars in losses and other conspirators have been convicted and sentenced.
Eremia pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft. He faces a maximum penalty of 30 years in prison on the conspiracy charge, and a mandatory consecutive term of 2 years in prison on the aggravated identity theft charge. Eremia is scheduled to be sentenced on March 4, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and Jerald W. Page, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea.
Assistant U.S. Attorneys Brian Samuels and Kaitlin Cooke are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-63.
Lumberton Man Sentenced to 14 Years Imprisonment for Firearms and Drug CrimesRead the Press Release
RALEIGH, N.C. – A Lumberton man was sentenced today to 168 months in prison for possessing with the intent to distribute cocaine and possessing multiple firearms as a convicted felon.
According to court documents, Jammie Smith, 37, possessed with the intent to distribute a quantity of cocaine and multiple firearms on February 8, 2018. As part of a drug investigation, law enforcement executed a search warrant at Smith’s home and recovered a .38 caliber handgun, 7.62 caliber rifle, a quantity of cocaine, digital scales, and other drug paraphernalia.
On September 12, 2019, a concerned citizen informed law enforcement that Smith was in possession of firearms and illegal drugs. Law enforcement observed Smith at the back of his mother’s residence. Behind the residence, near an air conditioning unit, law enforcement recovered a .380 caliber handgun, a stolen 9mm handgun, and a quantity of cocaine. At the time of the offenses, Smith was a convicted felon and prohibited from possessing firearms.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Lumberton Police Department investigated the case and Assistant U.S. Attorney Chad E. Rhoades prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-166-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Justice Department Announces Global Resolution of Criminal and Civil Investigations with Opioid Manufacturer Purdue Pharma and Civil Settlement with Members of the Sackler FamilyRead the Press Release
Today, the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP (Purdue), and a civil resolution of its civil investigation into individual shareholders from the Sackler family. The resolutions with Purdue are subject to the approval of the bankruptcy court.
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “With criminal guilty pleas, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”
“Today’s resolution is the result of years of hard work by the FBI and its partners to combat the opioid crisis in the U.S.,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Purdue, through greed and violation of the law, prioritized money over the health and well-being of patients. The FBI remains committed to holding companies accountable for their illegal and inexcusable activity and to seeking justice, on behalf of the victims, for those who contributed to the opioid crisis.”
“The opioid epidemic remains a significant public health challenge that impacts the lives of men and women across the country,” said Gary L. Cantrell Deputy Inspector General for Investigations at the U.S. Department of Health and Human Services’ Office of Inspector General. “Unfortunately, Purdue’s reckless actions and violation of the law senselessly risked patients’ health and well-being. With our law enforcement partners, we will continue to combat the opioid crisis, including holding the pharmaceutical industry and its executives accountable.”
“This resolution closes a particularly sad chapter in the ongoing battle against opioid addiction,” said Drug Enforcement Administration (DEA) Assistant Administrator Tim McDermott. “Purdue Pharma actively thwarted the United States’ efforts to ensure compliance and prevent diversion. The devastating ripple effect of Purdue’s actions left lives lost and others addicted. DEA will continue to work tirelessly with our partners and the pharmaceutical industry to address the damage that has been done, and bring an end to this epidemic that has gripped the nation for far too long.”
Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute. The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and, as further explained below, the department is willing to credit the value conferred by the company to State and local governments under the department’s anti-piling on and coordination policy. Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act. Separately, the Sackler family has agreed to pay $225 million in damages to resolve its civil False Claims Act liability.
The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.
While the global resolution with the company is subject to approval by the bankruptcy court in the Southern District of New York, one important condition in the resolution is that the company would cease to operate in its current form and would instead emerge from bankruptcy as a public benefit company (PBC) owned by a trust or similar entity designed for the benefit of the American public, to function entirely in the public interest. Indeed, not only will the PBC endeavor to deliver legitimate prescription drugs in a manner as safe as possible, but it will aim to donate, or provide steep discounts for, life-saving overdose rescue drugs and medically assisted treatment medications to communities, and the proceeds of the trust will be directed toward State and local opioid abatement programs. Based on the value that would be conferred to State and local governments through the PBC, the department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount. The department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC so that its public health goals can be best accomplished.
The Criminal Pleas
As part of the plea, Purdue will admit that from May 2007 through at least March 2017, Purdue conspired to defraud the United States by impeding the lawful function of the DEA by representing to the DEA that Purdue maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids and by reporting misleading information to the DEA to boost Purdue’s manufacturing quotas. The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion. The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.
In addition, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute. Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products. Similarly, from approximately April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.
The Civil Settlements
The department’s civil settlements resolve the United States’ claims as to both Purdue and its individual shareholders, members of the Sackler family.
The civil settlement with Purdue provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion. This settlement resolves allegations that from 2010 to 2018, Purdue caused false claims to be submitted to federal health care programs, specifically Medicare, Medicaid, TRICARE, the Federal Employees Health Benefits Program, and the Indian Health Service. The government alleged that Purdue promoted its opioid drugs to health care providers it knew were prescribing opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion. For example, Purdue learned that one doctor was known by patients as “the Candyman” and was prescribing “crazy dosing of OxyContin,” yet Purdue had sales representatives meet with the doctor more than 300 times. It also resolves the government’s allegations that Purdue engaged in three different kickback schemes to induce prescriptions of its opioids. First, Purdue paid certain doctors ostensibly to provide educational talks to other health care professionals and serve as consultants, but in reality to induce them to prescribe more OxyContin. Second, Purdue paid kickbacks to Practice Fusion, as described above. Third, Purdue entered into contracts with certain specialty pharmacies to fill prescriptions for Purdue’s opioid drugs that other pharmacies had rejected as potentially lacking medical necessity.
Under a separate civil settlement, individual members of the Sackler family will pay the United States $225 million arising from the alleged conduct of Dr. Richard Sackler, David Sackler, Mortimer D.A. Sackler, Dr. Kathe Sackler, and Jonathan Sackler (the Named Sacklers). This settlement resolves allegations that, in 2012, the Named Sacklers knew that the legitimate market for Purdue’s opioids had contracted. Nevertheless, they requested that Purdue executives recapture lost sales and increase Purdue’s share of the opioid market. The Named Sacklers then approved a new marketing program beginning in 2013 called “Evolve to Excellence,” through which Purdue sales representatives intensified their marketing of OxyContin to extreme, high-volume prescribers who were already writing “25 times as many OxyContin scripts” as their peers, causing health care providers to prescribe opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion.
The civil settlement also resolves the government’s allegations that from approximately 2008 to 2018, at the Named Sacklers’ request, Purdue transferred assets into Sackler family holding companies and trusts that were made to hinder future creditors, and/or were otherwise voidable as fraudulent transfers.
Today’s resolution does not resolve claims that states may have against Purdue or members of the Sackler family, nor does it impede the debtors’ ability to recover any fraudulent transfers.
Today’s announcement was made by Deputy Attorney General Jeffrey A. Rosen; Acting Assistant Attorney General of the Civil Division Jeffrey Clark; U.S. Attorney for the District of Vermont Christina Nolan; and First Assistant U.S. Attorney for the District of New Jersey Rachael Honig. The criminal investigation was conducted by the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the FBI’s Washington, D.C. and Newark Field Offices, with assistance by DEA. The civil settlements were handled by the Fraud Section of the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, with assistance from the Department of Health and Human Services, Office of General Counsel and Office of Counsel to the Inspector General; the Defense Health Agency; and the Office of Personnel Management. The Purdue bankruptcy matter is being handled by the U.S. Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
Justice Department Announces Global Resolution of Criminal and Civil Investigations with Opioid Manufacturer Purdue Pharma and Civil Settlement with Members of the Sackler FamilyRead the Press Release
Today, the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP (Purdue), and a civil resolution of its civil investigation into individual shareholders from the Sackler family. The resolutions with Purdue are subject to the approval of the bankruptcy court.
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “With criminal guilty pleas, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”
“Today’s resolution is the result of years of hard work by the FBI and its partners to combat the opioid crisis in the U.S.,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Purdue, through greed and violation of the law, prioritized money over the health and well-being of patients. The FBI remains committed to holding companies accountable for their illegal and inexcusable activity and to seeking justice, on behalf of the victims, for those who contributed to the opioid crisis.”
“The opioid epidemic remains a significant public health challenge that impacts the lives of men and women across the country,” said Gary L. Cantrell Deputy Inspector General for Investigations at the U.S. Department of Health and Human Services’ Office of Inspector General. “Unfortunately, Purdue’s reckless actions and violation of the law senselessly risked patients’ health and well-being. With our law enforcement partners, we will continue to combat the opioid crisis, including holding the pharmaceutical industry and its executives accountable.”
“This resolution closes a particularly sad chapter in the ongoing battle against opioid addiction,” said Drug Enforcement Administration (DEA) Assistant Administrator Tim McDermott. “Purdue Pharma actively thwarted the United States’ efforts to ensure compliance and prevent diversion. The devastating ripple effect of Purdue’s actions left lives lost and others addicted. DEA will continue to work tirelessly with our partners and the pharmaceutical industry to address the damage that has been done, and bring an end to this epidemic that has gripped the nation for far too long.”
Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute. The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and, as further explained below, the department is willing to credit the value conferred by the company to State and local governments under the department’s anti-piling on and coordination policy. Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act. Separately, the Sackler family has agreed to pay $225 million in damages to resolve its civil False Claims Act liability.
The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.
While the global resolution with the company is subject to approval by the bankruptcy court in the Southern District of New York, one important condition in the resolution is that the company would cease to operate in its current form and would instead emerge from bankruptcy as a public benefit company (PBC) owned by a trust or similar entity designed for the benefit of the American public, to function entirely in the public interest. Indeed, not only will the PBC endeavor to deliver legitimate prescription drugs in a manner as safe as possible, but it will aim to donate, or provide steep discounts for, life-saving overdose rescue drugs and medically assisted treatment medications to communities, and the proceeds of the trust will be directed toward State and local opioid abatement programs. Based on the value that would be conferred to State and local governments through the PBC, the department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount. The department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC so that its public health goals can be best accomplished.
The Criminal Pleas
As part of the plea, Purdue will admit that from May 2007 through at least March 2017, Purdue conspired to defraud the United States by impeding the lawful function of the DEA by representing to the DEA that Purdue maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids and by reporting misleading information to the DEA to boost Purdue’s manufacturing quotas. The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion. The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.
In addition, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute. Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products. Similarly, from approximately April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.
The Civil Settlements
The department’s civil settlements resolve the United States’ claims as to both Purdue and its individual shareholders, members of the Sackler family.
The civil settlement with Purdue provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion. This settlement resolves allegations that from 2010 to 2018, Purdue caused false claims to be submitted to federal health care programs, specifically Medicare, Medicaid, TRICARE, the Federal Employees Health Benefits Program, and the Indian Health Service. The government alleged that Purdue promoted its opioid drugs to health care providers it knew were prescribing opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion. For example, Purdue learned that one doctor was known by patients as “the Candyman” and was prescribing “crazy dosing of OxyContin,” yet Purdue had sales representatives meet with the doctor more than 300 times. It also resolves the government’s allegations that Purdue engaged in three different kickback schemes to induce prescriptions of its opioids. First, Purdue paid certain doctors ostensibly to provide educational talks to other health care professionals and serve as consultants, but in reality to induce them to prescribe more OxyContin. Second, Purdue paid kickbacks to Practice Fusion, as described above. Third, Purdue entered into contracts with certain specialty pharmacies to fill prescriptions for Purdue’s opioid drugs that other pharmacies had rejected as potentially lacking medical necessity.
Under a separate civil settlement, individual members of the Sackler family will pay the United States $225 million arising from the alleged conduct of Dr. Richard Sackler, David Sackler, Mortimer D.A. Sackler, Dr. Kathe Sackler, and Jonathan Sackler (the Named Sacklers). This settlement resolves allegations that, in 2012, the Named Sacklers knew that the legitimate market for Purdue’s opioids had contracted. Nevertheless, they requested that Purdue executives recapture lost sales and increase Purdue’s share of the opioid market. The Named Sacklers then approved a new marketing program beginning in 2013 called “Evolve to Excellence,” through which Purdue sales representatives intensified their marketing of OxyContin to extreme, high-volume prescribers who were already writing “25 times as many OxyContin scripts” as their peers, causing health care providers to prescribe opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion.
The civil settlement also resolves the government’s allegations that from approximately 2008 to 2018, at the Named Sacklers’ request, Purdue transferred assets into Sackler family holding companies and trusts that were made to hinder future creditors, and/or were otherwise voidable as fraudulent transfers.
Today’s resolution does not resolve claims that states may have against Purdue or members of the Sackler family, nor does it impede the debtors’ ability to recover any fraudulent transfers.
Today’s announcement was made by Deputy Attorney General Jeffrey A. Rosen; Acting Assistant Attorney General of the Civil Division Jeffrey Clark; U.S. Attorney for the District of Vermont Christina Nolan; and First Assistant U.S. Attorney for the District of New Jersey Rachael Honig. The criminal investigation was conducted by the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the FBI’s Washington, D.C. and Newark Field Offices, with assistance by the DEA and the U.S. Attorney’s Office for the Northern District of Ohio. The civil settlements were handled by the Fraud Section of the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, with assistance from the Department of Health and Human Services, Office of General Counsel and Office of Counsel to the Inspector General; the Defense Health Agency; and the Office of Personnel Management. The Purdue bankruptcy matter is being handled by the U.S. Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
Justice Department Announces Global Resolution of Criminal and Civil Investigations with Opioid Manufacturer Purdue Pharma and Civil Settlement with Members of the Sackler FamilyRead the Press Release
Today, the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP (Purdue), and a civil resolution of its civil investigation into individual shareholders from the Sackler family. The resolutions with Purdue are subject to the approval of the bankruptcy court.
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “With criminal guilty pleas, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”
“Today’s resolution is the result of years of hard work by the FBI and its partners to combat the opioid crisis in the U.S.,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Purdue, through greed and violation of the law, prioritized money over the health and well-being of patients. The FBI remains committed to holding companies accountable for their illegal and inexcusable activity and to seeking justice, on behalf of the victims, for those who contributed to the opioid crisis.”
“The opioid epidemic remains a significant public health challenge that impacts the lives of men and women across the country,” said Gary L. Cantrell Deputy Inspector General for Investigations at the U.S. Department of Health and Human Services’ Office of Inspector General. “Unfortunately, Purdue’s reckless actions and violation of the law senselessly risked patients’ health and well-being. With our law enforcement partners, we will continue to combat the opioid crisis, including holding the pharmaceutical industry and its executives accountable.”
“This resolution closes a particularly sad chapter in the ongoing battle against opioid addiction,” said Drug Enforcement Administration (DEA) Assistant Administrator Tim McDermott. “Purdue Pharma actively thwarted the United States’ efforts to ensure compliance and prevent diversion. The devastating ripple effect of Purdue’s actions left lives lost and others addicted. DEA will continue to work tirelessly with our partners and the pharmaceutical industry to address the damage that has been done, and bring an end to this epidemic that has gripped the nation for far too long.”
Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute. The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and, as further explained below, the department is willing to credit the value conferred by the company to State and local governments under the department’s anti-piling on and coordination policy. Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act. Separately, the Sackler family has agreed to pay $225 million in damages to resolve its civil False Claims Act liability.
The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.
While the global resolution with the company is subject to approval by the bankruptcy court in the Southern District of New York, one important condition in the resolution is that the company would cease to operate in its current form and would instead emerge from bankruptcy as a public benefit company (PBC) owned by a trust or similar entity designed for the benefit of the American public, to function entirely in the public interest. Indeed, not only will the PBC endeavor to deliver legitimate prescription drugs in a manner as safe as possible, but it will aim to donate, or provide steep discounts for, life-saving overdose rescue drugs and medically assisted treatment medications to communities, and the proceeds of the trust will be directed toward State and local opioid abatement programs. Based on the value that would be conferred to State and local governments through the PBC, the department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount. The department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC so that its public health goals can be best accomplished.
The Criminal Pleas
As part of the plea, Purdue will admit that from May 2007 through at least March 2017, Purdue conspired to defraud the United States by impeding the lawful function of the DEA by representing to the DEA that Purdue maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids and by reporting misleading information to the DEA to boost Purdue’s manufacturing quotas. The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion. The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.
In addition, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute. Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products. Similarly, from approximately April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.
The Civil Settlements
The department’s civil settlements resolve the United States’ claims as to both Purdue and its individual shareholders, members of the Sackler family.
The civil settlement with Purdue provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion. This settlement resolves allegations that from 2010 to 2018, Purdue caused false claims to be submitted to federal health care programs, specifically Medicare, Medicaid, TRICARE, the Federal Employees Health Benefits Program, and the Indian Health Service. The government alleged that Purdue promoted its opioid drugs to health care providers it knew were prescribing opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion. For example, Purdue learned that one doctor was known by patients as “the Candyman” and was prescribing “crazy dosing of OxyContin,” yet Purdue had sales representatives meet with the doctor more than 300 times. It also resolves the government’s allegations that Purdue engaged in three different kickback schemes to induce prescriptions of its opioids. First, Purdue paid certain doctors ostensibly to provide educational talks to other health care professionals and serve as consultants, but in reality to induce them to prescribe more OxyContin. Second, Purdue paid kickbacks to Practice Fusion, as described above. Third, Purdue entered into contracts with certain specialty pharmacies to fill prescriptions for Purdue’s opioid drugs that other pharmacies had rejected as potentially lacking medical necessity.
Under a separate civil settlement, individual members of the Sackler family will pay the United States $225 million arising from the alleged conduct of Dr. Richard Sackler, David Sackler, Mortimer D.A. Sackler, Dr. Kathe Sackler, and Jonathan Sackler (the Named Sacklers). This settlement resolves allegations that, in 2012, the Named Sacklers knew that the legitimate market for Purdue’s opioids had contracted. Nevertheless, they requested that Purdue executives recapture lost sales and increase Purdue’s share of the opioid market. The Named Sacklers then approved a new marketing program beginning in 2013 called “Evolve to Excellence,” through which Purdue sales representatives intensified their marketing of OxyContin to extreme, high-volume prescribers who were already writing “25 times as many OxyContin scripts” as their peers, causing health care providers to prescribe opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion.
The civil settlement also resolves the government’s allegations that from approximately 2008 to 2018, at the Named Sacklers’ request, Purdue transferred assets into Sackler family holding companies and trusts that were made to hinder future creditors, and/or were otherwise voidable as fraudulent transfers.
Today’s resolution does not resolve claims that states may have against Purdue or members of the Sackler family, nor does it impede the debtors’ ability to recover any fraudulent transfers.
Today’s announcement was made by Deputy Attorney General Jeffrey A. Rosen; Acting Assistant Attorney General of the Civil Division Jeffrey Clark; U.S. Attorney for the District of Vermont Christina Nolan; and First Assistant U.S. Attorney for the District of New Jersey Rachael Honig. The criminal investigation was conducted by the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the FBI’s Washington, D.C. and Newark Field Offices, with assistance by DEA. The civil settlements were handled by the Fraud Section of the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, with assistance from the Department of Health and Human Services, Office of General Counsel and Office of Counsel to the Inspector General; the Defense Health Agency; and the Office of Personnel Management. The Purdue bankruptcy matter is being handled by the U.S. Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
Justice Department Announces Global Resolution of Criminal and Civil Investigations with Opioid Manufacturer Purdue Pharma and Civil Settlement with Members of the Sackler FamilyRead the Press Release
NEWARK, N.J. – Today, the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP (Purdue) and a civil resolution of its civil investigation into individual shareholders from the Sackler family. The resolutions with Purdue are subject to the approval of the bankruptcy court.
“For years, Purdue placed profits over patient safety by marketing and selling its dangerous opioid products to healthcare providers that it had good reason to believe were diverting those opioids to abusers,” Attorney for the United States Rachael A. Honig, District of New Jersey, said. “Purdue deceived the DEA about its measures to prevent such diversion, and it used that deception to gain higher limits on the amount of its products it was legally permitted to sell. Purdue also paid kickbacks to providers to encourage them to prescribe even more of Purdue’s products. Purdue is in bankruptcy now, but it still must be held responsible for these actions. The resolution we announce today does just that.”
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” Deputy Attorney General Jeffrey A. Rosen said. “With criminal guilty pleas, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”
“Purdue’s expansive criminal conduct included paying a kickback in exchange for designing medical software to influence unwitting physicians,” Christina E. Nolan, United States Attorney for the District of Vermont, said. “Purdue’s drug marketers paid to invade the sanctity of the physician-patient relationship so that it could influence medical decisions and increase prescriptions of its most potent opioids. As it is now prepared to plead guilty for a second time to conduct involving unlawful marketing of highly addictive opioid pills, this resolution will serve as a reminder that the company put profits before people during the height of the opioid crisis.”
Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute. The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and, as further explained below, the Department is willing to credit the value conferred by the company to State and local governments under the Department’s anti-piling on and coordination policy. Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act. Separately, the Sackler family has agreed to pay $225 million in damages to resolve its civil False Claims Act liability.
The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.
While the global resolution with the company is subject to approval by the bankruptcy court in the Southern District of New York, one important condition in the resolution is that the company would cease to operate in its current form and would instead emerge from bankruptcy as a public benefit company (PBC) owned by a trust or similar entity designed for the benefit of the American public, to function entirely in the public interest. Indeed, not only will the PBC endeavor to deliver legitimate prescription drugs in a manner as safe as possible, but it will aim to donate, or provide steep discounts for, life-saving overdose rescue drugs and medically assisted treatment medications to communities, and the proceeds of the trust will be directed toward State and local opioid abatement programs. Based on the value that would be conferred to State and local governments through the PBC, the Department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount. The Department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC so that its public health goals can be best accomplished.
The Criminal Pleas
As part of the plea, Purdue will admit that from May 2007 through at least March 2017, Purdue conspired to defraud the United States by impeding the lawful function of the Drug Enforcement Administration (DEA) by representing to the DEA that Purdue maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids and by reporting misleading information to the DEA to boost Purdue’s manufacturing quotas. The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion. The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.
In addition, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute. Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products. Similarly, from approximately April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.
The Civil Settlements
The Department’s civil settlements resolve the United States’ claims as to both Purdue and its individual shareholders, members of the Sackler family.
The civil settlement with Purdue provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion. This settlement resolves allegations that from 2010 to 2018, Purdue caused false claims to be submitted to federal health care programs, specifically Medicare, Medicaid, TRICARE, the Federal Employees Health Benefits Program, and the Indian Health Service. The government alleged that Purdue promoted its opioid drugs to health care providers it knew were prescribing opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion. For example, Purdue learned that one doctor was known by patients as “the Candyman” and was prescribing “crazy dosing of OxyContin,” yet Purdue had sales representatives meet with the doctor more than 300 times. It also resolves the government’s allegations that Purdue engaged in three different kickback schemes to induce prescriptions of its opioids. First, Purdue paid certain doctors ostensibly to provide educational talks to other health care professionals and serve as consultants, but in reality to induce them to prescribe more OxyContin. Second, Purdue paid kickbacks to Practice Fusion, as described above. Third, Purdue entered into contracts with certain specialty pharmacies to fill prescriptions for Purdue’s opioid drugs that other pharmacies had rejected as potentially lacking medical necessity.
Under a separate civil settlement, individual members of the Sackler family will pay the United States $225 million arising from the alleged conduct of Dr. Richard Sackler, David Sackler, Mortimer D.A. Sackler, Dr. Kathe Sackler, and Jonathan Sackler (the Named Sacklers). This settlement resolves allegations that, in 2012, the Named Sacklers knew that the legitimate market for Purdue’s opioids had contracted. Nevertheless, they requested that Purdue executives recapture lost sales and increase Purdue’s share of the opioid market. The Named Sacklers then approved a new marketing program beginning in 2013 called “Evolve to Excellence,” through which Purdue sales representatives intensified their marketing of OxyContin to extreme, high-volume prescribers who were already writing “25 times as many OxyContin scripts” as their peers, causing health care providers to prescribe opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion.
The civil settlement also resolves the government’s allegations that from approximately 2008 to 2018, at the Named Sacklers’ request, Purdue transferred assets into Sackler family holding companies and trusts that were made to hinder future creditors, and/or were otherwise voidable as fraudulent transfers.
Today’s resolution does not resolve claims that States may have against Purdue or members of the Sackler family, nor does it impede the Debtors’ ability to recover any fraudulent transfers.
Today’s announcement was made by Deputy Attorney General Rosen; Acting Assistant Attorney General of the Civil Division Clark; United States Attorney for the District of Vermont Nolan; and First Assistant U.S. Attorney for the District of New Jersey Honig. The criminal investigation was conducted by the United States Attorney’s Offices for the Districts of New Jersey and Vermont, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the Federal Bureau of Investigation’s Washington, DC and Newark Field Offices, with assistance by DEA. The civil settlements were handled by the Fraud Section of the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the United States Attorney’s Offices for the Districts of New Jersey and Vermont, with assistance from the Department of Health and Human Services, Office of General Counsel and Office of Counsel to the Inspector General; the Defense Health Agency; and the Office of Personnel Management. The Purdue bankruptcy matter is being handled by the United States Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section.
The government is represented in the District of New Jersey by Deputy Chief of the Criminal Division Nicholas Grippo, Chief of the Health Care Fraud Unit Lee M. Cortes Jr., Chief of the Opioids Unit Melissa Wangenheim, and assistant U.S. Attorneys Stephen Ferketic, Sean Sherman, Marihug P. Cedeño and Nicole Mastropieri.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
Jackson Man Sentenced under Project EJECT for Illegally Possessing FirearmsRead the Press Release
Jackson, Miss. – Dallas Smith, 59, of Jackson, was sentenced today by U.S. District Carlton W. Reeves to time-served, or 14 months, and 3 years of supervised release for illegally possessing firearms, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michele Sutphin with the Federal Bureau of Investigation. Smith was also sentenced to pay a fine of $1,000.
On September 11, 2017, officers with the Jackson Police Department were dispatched to an apartment complex on a shooting complaint. Based upon the statements of eyewitnesses, they stopped a vehicle in which Dallas Smith was a passenger. Upon questioning, Smith admitted to possessing the pistol and rifle found in the vehicle. Smith also admitted to discharging the firearms at the apartment complex.
Smith has a forgery conviction in Madison County and a grand larceny conviction in Rankin County, and it is illegal for him to possess a firearm. He pled guilty before Judge Reeves on January 22, 2020.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lynn Murray.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Justice Department Announces Global Resolution of Criminal and Civil Investigations with Opioid Manufacturer Purdue PharmaRead the Press Release
Today, the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP. The resolutions with Purdue are subject to the approval of the bankruptcy court.
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “With criminal convictions, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”
“Purdue’s expansive criminal conduct included paying a kickback in exchange for designing medical software to influence unwitting physicians,” said Christina E. Nolan, United States Attorney for the District of Vermont. “Purdue’s drug marketers paid to invade the sanctity of the physician-patient relationship so that it could influence medical decisions and increase prescriptions of its most potent opioids. As a Purdue entity is now prepared to plead guilty for a second time to conduct involving unlawful marketing of highly addictive opioid pills, this resolution will serve as a reminder that the company put profits before people during the height of the opioid crisis.”
“For years, Purdue placed profits over patient safety by marketing and selling its dangerous opioid products to healthcare providers that it had good reason to believe were diverting those opioids to abusers,” Attorney for the United States Rachael A. Honig, District of New Jersey, said. “Purdue deceived the DEA about its measures to prevent such diversion, and it used that deception to gain higher limits on the amount of its products it was legally permitted to sell. Purdue also paid kickbacks to providers to encourage them to prescribe even more of Purdue’s products. Purdue is in bankruptcy now, but it still must be held responsible for these actions. The resolution we announce today does just that.”
Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute. The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and the Department is willing to credit the value conferred by the company to State and local governments under the Department’s anti-piling on and coordination policy. Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act.
In connection with the District of Vermont investigations, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute. This is the first prosecution in history charging a pharmaceutical company for conspiring with an electronic health records (EHR) company to influence physician prescribing.
From approximately April 2016 through December 2016, Purdue made payments to Practice Fusion, Inc., an EHR company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products—OxyContin, Butrans, and Hysingla. Purdue and Practice Fusion conspired to create clinical decision support (CDS) alerts embedded in medical software to increase extended release opioid (ERO) prescriptions. Purdue’s drug marketers financed the alerts that were presented to physicians as impartial clinical alerts—when in reality they were merely part of a clandestine unlawful marketing scheme. Purdue’s internal marketing documents described the key performance indicator of the program as: “Increase in ERO prescribing.”
As part of the resolution, Purdue will be required to create and host a public and permanent document repository containing documents relating to the charges and alleged civil violations. The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases. Today’s resolution does not resolve claims that states may have against Purdue nor does it impede the Debtors’ ability to recover fraudulent transfers.
The District of Vermont’s investigation was handled by Assistant United States Attorneys Michael P. Drescher and Owen C.J. Foster. The investigation was supported by the HHS Office of Inspector General and the Federal Bureau of Investigation’s field office in Washington, DC, and New York. Vermont Health Care Fraud Investigators George Thabault and Richard Lewis provided significant and critical investigative resources to the Vermont-based team. The District of Vermont worked in close partnership with its colleagues in the District of New Jersey, including Assistant United States Attorneys J. Stephen Ferketic, Sean M. Sherman, Nicholas P. Grippo, and Melissa Wangenheim, Nicole F. Mastropieri, and Marihug P. Cedeno, Consumer Protection Branch Trial Attorneys Gabriel H. Scannapieco, Kara M. Traster, Maryann N. McGuire, Rachel E. Baron, Michael L. Collyer, and Hilary Perkins, and Civil Frauds Trial Attorneys Kristen M. Murphy, Albert P. Mayer, Claire L. Norsetter, Kelley Hauser, Christelle Klovers, and Alicia Bentley. The Purdue bankruptcy matter is being handled by the United States Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section. Purdue is represented by Patrick Fitzgerald of the law firm Skadden, Arps, Slate, Meagher & Flom LLP, and Jeffrey Bucholtz of the law firm King & Spalding.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
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
Inmate at FCI-Hazelton Pleads Guilty to Money Laundering ConspiracyRead the Press Release
PITTSBURGH – Lamar Middleton pled guilty to conspiring to launder drug trafficking proceeds between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Middleton, age 33, pled guilty before United States District Judge J. Nicholas Ranjan. Judge Ranjan scheduled sentencing to occur on February 23, 2021, at 10:00 a.m. Middleton was serving a federal prison sentence at FCI-Hazelton in West Virginia when he committed the crime to which he pled guilty.
The law provides for a maximum sentence of up to 20 years in prison and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Indictment: Man Stole 22 Firearms During Burglary at Kansas PawnshopRead the Press Release
KANSAS CITY, KAN. – A Kansas man was indicted today on federal charges that he stole 22 firearms from a pawnshop in Overland Park, U.S. Attorney Stephen McAllister said.
Darrin Taylor, 54, who is homeless and has been living in Overland Park, is charged with one count of theft from a federally licensed firearms dealer. Taylor is alleged to have burglarized Penguin Pawn & Gun at 10229 West 75th Street in Overland Park, Kan., and taken the guns.
If convicted, he could face a penalty of up to 10 years in federal prison and a fine up to $250,000. The Overland Park Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
OTHER INDICTMENTS
James Pugh, 58, Lawrence, Kan., is charged with one count of bank robbery. The indictment alleges that on Jan. 21, 2020, he robbed the Landmark Bank at 2710 Iowa St. in Lawrence, Kan.
If convicted, he could face up to 20 years in federal prison and a fine up to $250,000. The Lawrence Police Department and the FBI investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Amber Dawn Johnson, 26, Hobbs, N.M., and Angel Estrada, 34, Hobbs, N.M., were charged with one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute cocaine. The defendants are alleged to have transported 38 pounds of methamphetamine and 39 pounds of cocaine to Kansas.
According to court records, on July 16, 2020, the Kansas Highway Patrol stopped two vehicles traveling together near milepost 102 in Chase County, Kan. A trooper found the drugs in one of the cars.
If convicted, the defendants could face a penalty of not less than 10 years in federal prison and a fine up to $10 million on each count. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Cody Justice, 31, Kansas City, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm by a felon. The crimes are alleged to have occurred Sept. 17, 2020, in Wyandotte County, Kan.
If convicted, he could face not less than five years and not more than 40 years in federal prison and a fine up to $5 million on the drug charge, not less than five years and not more than 40 years and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking, and up to 10 years and a fine up to $250,000 on the other firearm charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Michael E. Thomas, 54, is charged with escaping from federal custody at the Grossman Residential Reentry Center in Leavenworth, Kan. The crime is alleged to have occurred March 10, 2020.
If convicted, he could face up to five years in federal prison and a fine up to $250,000. The U.S. Marshal Service investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
IRS Agent Charged with Cocaine DistributionRead the Press Release
NEWARK, N.J. – An IRS supervisory revenue agent was arrested today on charges of conspiracy to distribute cocaine, U.S. Attorney Craig Carpenito announced.
Michael Shelli, 41, of Albany, New York, was arrested at his home by agents of the Drug Enforcement Administration (DEA). He is charged by complaint with one count of conspiracy to distribute five kilograms or more of cocaine and appeared by videoconference today before U.S. Magistrate Judge James B. Clark III and was released on $100,000 unsecured bond.
According to the complaint:
Since March 2020, officials of the DEA have been investigating a drug trafficking organization (DTO) operating in New Jersey and elsewhere. In April 2020, law enforcement identified a residence in Saddle Brook, New Jersey, as a location from which members of the DTO were dealing cocaine. The investigation revealed that Shelli had a courier pick up cocaine from the residence and deliver it to his residence in Albany. Shelli would then repackage the cocaine for sale in the area.
The conspiracy to distribute cocaine charge is punishable by a maximum penalty of life in prison and a fine of up to $10 million.
U.S. Attorney Carpenito credited special agents of the DEA-New York Division and DEA-Albany District Office, under the direction of Special Agent in Charge Raymond Donovan; the U.S. Attorney’s Office for the Northern District of New York, under the direction of Acting U.S. Attorney Antoinette T. Bacon; the office of the Treasury Inspector General for Tax Administration, under the direction of William Kalb; the New York State Police, under the direction of Superintendent Keith M. Corlett; officers of Troop K, Danbury, Connecticut, Police Department, under the direction of Chief Patrick Ridenhour; officers of the Hasbrouck Heights Police Department, under the direction of Chief Michael J. Colaneri; and officers of the Saddle Brook Police Department, under the direction of Chief Robert Kugler, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Naazneen Khan of the U.S. Attorney’s Office Organized Crimes and Gangs Unit in Newark.
Homeless Men Charged with 4 Armed Robberies over 2 Days in August 2020Read the Press Release
PITTSBURGH, PA - Two homeless residents of Pittsburgh, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of robbery, United States Attorney Scott W. Brady announced today.
The four-count Indictment named Elijah Sayon and Rexford Wright, both 23.
According to Indictment, on August 3, 2020, Sayon and Wright robbed a Sunoco gas station on Donner Avenue in Monessen, PA and a Marathon gas station on State Route 51 North in North Belle Vernon, PA. The Indictment further alleges that on August 4, 2020, Sayon and Wright robbed a GetGo on Steubenville Pike in Kennedy Township, PA and a 7-Eleven on Dry Run Road in Monongahela, PA. All four robberies were at gunpoint.
The law provides for a maximum total sentence of not more than 80 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Allegheny County Police Department, Monessen Police Department, and the Monongahela City Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Heroin and Methamphetamine Dealer Who Sold Drugs that Caused Overdose Death Sentenced to 25 YearsRead the Press Release
PLANO, Texas – A 40-year-old Garland, Texas man has been sentenced for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Michael David Miranda pleaded guilty on July 7, 2020, to conspiracy to distribute and possession with intent to distribute methamphetamine and heroin resulting in death and serious bodily injury. Miranda was sentenced to 300 months in federal prison today by U.S. District Judge Sean D. Jordan.
According to information presented in court, beginning in approximately January 2016 and continuing through July 2020, Miranda, also known as “Buddha”, engaged in a conspiracy to manufacture, distribute and possess with the intent to manufacture and distribute methamphetamine and heroin, and in doing so, he caused serious bodily injury to JS and death to BB, individuals who had overdosed on the heroin sold to them by the defendant. Specifically, on January 16, 2019, officers with the Denton Police Department were dispatched to Medical City Hospital in Denton, Texas, regarding a foreign substance being injected into JS, a patient who was being treated in the Intensive Care Unit. Denton PD narcotics detectives were able to establish through hospital surveillance videos that Miranda had entered and then exited JS’s room just prior to hospital staff finding JS unresponsive and not breathing. Hospital staff reported finding a syringe in JS’s IV line. Medical personnel were forced to resuscitate JS with a dose of Narcan, a medicine which counteracts the affects of a heroin overdose. Detectives were later able to establish that Miranda had injected the heroin into JS’s IV line at JS’s request. JS admitted to Detectives to purchasing heroin from Miranda on a regular basis since approximately 2016.
On January 23, 2019, Denton PD narcotics detectives utilized a confidential informant to conduct a buy-bust operation on Miranda. The CI contacted Miranda and asked to purchase heroin. Miranda agreed to meet the CI at the agreed upon location. Once Miranda arrived, officers were able to take him into custody. They found heroin and methamphetamine in his possession.
On January 25, 2019, Detectives interviewed Miranda and he admitted to selling heroin and methamphetamine and that he had brought heroin to JS while she was in the hospital on January 16th. Miranda was able to make bond on his charges and was released from the Denton County Jail.
On October 26, 2019, officers with the Denton Police Department were dispatched to a residence in Denton, Texas, regarding a deceased person. Upon arrival, officers and medics found BB deceased in his bedroom. BB was surrounded by drug paraphernalia, indicating BB had possibly over-dosed on drugs. On January 30, 2020 the Tarrant County Medical Examiner's Office performed an autopsy and determined BB's cause of death was an overdose of an acute mixture of drugs, including heroin, methadone and methamphetamine. Denton PD narcotics detectives were able to establish that Miranda had sold BB the heroin which had caused BB to overdose and die.
On December 10, 2019, Denton PD narcotics detectives utilized a confidential informant to conduct a buy-bust operation on Miranda. The CI contacted Miranda and asked to purchase heroin. Miranda agreed to meet the CI at the agreed upon location. Once Miranda arrived, officers were able to take him into custody. They discovered more heroin in his possession.
Miranda was indicted by a federal grand jury on November 13, 2019, and charged with federal drug trafficking violations.
This case was investigated by the Denton Police Department and the Tarrant County Medical Examiner’s Office and prosecuted by Assistant U.S. Attorney Matthew T. Johnson.
Hercules, California Woman Sentenced to 3 Years of Probation, with 8 Months of Home Confinement, for Her Role in Business Email Compromise Targeting Convent, Louisiana CompanyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that SONOVAH JUDITH HILLMAN, age 29, a resident of Hercules, California, was sentenced today by United States District Judge Jane Triche Milazzo to three years of probation, with eight months of home confinement, after previously pleading guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1343 and 1349. Judge Milazzo also ordered HILLMAN to pay restitution in the amount of $92,007.85 to the victim.
According to court documents, the charges to which HILLMAN pleaded guilty stemmed from her role as a “money mule” in a scheme to victimize Company A, a floating crane and stevedore company headquartered in Convent, Louisiana. HILLMAN and her co-conspirator(s) engaged in a “business email compromise” (BEC) scheme. They accomplished their scheme by obtaining access without authorization to the email accounts of one or more employees of Company A for the purpose of obtaining private data, including usernames, passwords, bank account information, and the content of email accounts through a “phishing” scam. After gaining access to an email account of a Company A employee, the co-conspirator(s) arranged to have emails in the account forwarded to a separate email account under their control. Thereafter, HILLMAN’s co-conspirators registered a domain name similar to Company A’s domain (for example, “Company A” instead of “Company A”) and, pretending to be representatives of Company A, sent emails to Company A’s customers, including Company B. The false emails stated that there had been an audit of Company A’s bank accounts and that Company A’s customers should remit funds owed to Company A to a new bank account.
On about May 10, 2017, HILLMAN’s co-conspirators contacted one of Company A’s customers (Company B) via email and, pretending to be employees of Company A, instructed that Company B should remit funds owed to Company A, approximately $92,007.85, to a Bank of America account that belonged to HILLMAN. After Company B sent the funds to HILLMAN’s account, HILLMAN engaged in a series of transactions over the next five days to transfer the money to others, withdraw over $40,000 in cash, and spend ill-gotten money on personal items, including vacations and airline flights.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security – Homeland Security Investigations and the United States Coast Guard Investigative Service. Assistant United States Attorney Jordan Ginsberg, supervisor of the Public Corruption Unit, was in charge of the prosecution.
Hancock County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Michael Martino, of Weirton, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Martino, age 39, pled guilty to one count of “Receipt of Unregistered Firearm.” Martino admitted to receiving a machine gun that wasn’t registered to him in April 2019 in Hancock County.
Martino faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Department of Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Guilty Plea: 11+ Pounds of Pure Meth Hidden in VehicleRead the Press Release
WICHITA, KAN. – A man from Arizona pleaded guilty today to driving 11.5 pounds of pure methamphetamine from Phoenix to Kansas, U.S. Attorney Stephen McAllister said.
Sergio Martinez-Carlos, 22, Monahan, Ariz., pleaded guilty to one count of interstate travel in furtherance of drug trafficking. In his plea, he admitted the Kingman County Sheriff’s Office stopped him and discovered the drugs hidden in his vehicle.
Sentencing is set for Jan. 19, 2021. He could face up to five years in federal prison and a fine up to $250,000. McAllister commended the Kingman County Sheriff’s Office, the Drug Enforcement Administration and Special Assistant U.S. Attorney Katherine Andrusak for their work on the case.
Guatemalan man sentenced for role in immigration event leading to deathRead the Press Release
LAREDO, Texas – A 33-year-old man is now headed to federal prison after admitting to transporting aliens resulting in death, announced U.S. Attorney Ryan K. Patrick.
Luis Morales-Melendez, a Guatemalan national who illegally entered the United States himself, pleaded guilty Dec. 2, 2019.
Today, U.S. District Judge Marina Garcia Marmolejo handed him a 48-month sentence. Not a U.S. citizen, Morales-Melendez is expected to face removal proceedings following the sentence. At the hearing, the court noted that while there’s no indication Morales-Melendez intended for the death to happen, he was still responsible for their safety as they crossed the river.
“Illegally entering the U.S. is not only a crime, it can be life threatening,” said chief Matthew Hudak of Border Patrol (BP)– Laredo Sector. “The harsh terrain and conditions along the border are inherently dangerous, and are made worse by the callous and reckless actions of smugglers that put lives at risk. The heartless actions of Morales-Mendez last year needlessly cost someone their life. This case is another unfortunate reminder that no one should but their life, or the life of a family member, in the hands of a criminal organization or human smugglers.”
"The tragic loss of life in this case is an example of the very real risks people face when they put their lives in the hands of smugglers," said Special Agent in Charge Shane Folden Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - San Antonio. "Those responsible for illegally moving people into and through our country place personal profit ahead of public safety. Driven by greed, they have little regard for the health and well-being of their human cargo, which can be a deadly combination.”
On Aug. 22, 2019, authorities encountered 12 individuals near Zebra Creek in Laredo. The investigation determined they were all undocumented aliens who had illegally entered the country by crossing the Rio Grande river. Several identified Morales-Melendez as the guide who led them into the United States.
Another man had been a part of the group, but had died along the way. The investigation revealed the victim had been struggling in the water, but Morales-Melendez did not offer aid or use a rope to help him. Morales-Melendez denied hearing anyone call for help. While some lifejackets were available, there were not enough for everyone. The victim’s body was recovered on the Mexican side of the river the following day.
Morales-Melendez admitted to illegally entering the United States with the group and acting as the foot guide on the American side of the river. As part of his plea, Morales-Mendez acknowledged receiving a discount on his smuggling fee in exchange for acting as the foot guide once the group crossed into the United States.
BP initiated the investigation in conjunction with HSI. Assistant U.S. Attorney Michael Bukiewicz is prosecuting the case.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Madison Man Charged with Drug Crimes Involving Methamphetamine
Melvin P. Potts, 33, Madison, Wisconsin, is charged with six counts of distributing methamphetamine in July through September 2020. The indictment alleges that one of the distributions involved 50 grams or more of methamphetamine. The indictment also charges that on September 15, 2020, Potts possessed 50 grams or more of methamphetamine for distribution.
If convicted, Potts faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on the two counts alleging distribution or possession with intent to distribute 50 grams or more of methamphetamine, and a maximum penalty of 20 years on each of the other five counts. The charges against him are the result of an investigation by the Dane County Narcotics Task Force. Assistant U.S. Attorney Zachary Corey is handling the prosecution.
Madison Man Charged with Distributing Methamphetamine & Possessing Methamphetamine for Distribution
Timothy Savannah, 28, Madison, Wisconsin, is charged with distributing methamphetamine on September 1, 2020, and with possessing 50 grams or more of methamphetamine with the intent to distribute on September 10, 2020.
Savannah faces a maximum of 20 years in federal prison on the distribution charge, and a mandatory minimum of five years and a maximum of 40 years on the charge of possessing 50 grams or more of methamphetamine for distribution. The charges against him are the result of an investigation by the Sauk County Sheriff’s Office and the Drug Enforcement Administration. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Two Charged with Arson of Commercial Buildings in Madison
Anessa Renee Fierro, 27, and Willie Tremaine Johnson, 45, both of Madison, Wisconsin, are charged in a two-count indictment with attempting to damage and destroy by fire two commercial buildings in Madison on August 25, 2020. Fierro and Johnson were charged with these offenses in criminal complaints filed in U.S. District Court in Madison on September 22. Federal law requires that criminal charges filed by complaint be presented to a grand jury for indictment.
If convicted, Fierro and Johnson face a mandatory minimum penalty of five years and a maximum of 20 years in federal prison on each count. The charges against them are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison Police Department. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Madison Man Charged with City-County Building Arson
Marquon Clark, 26, Madison, Wisconsin, is charged with attempting to damage and destroy by fire the City-County Building in Madison on June 24, 2020. Clark was charged with this offense in a criminal complaint filed in U.S. District Court in Madison on October 5. Federal law requires that a criminal charge filed by complaint be presented to a grand jury for indictment.
If convicted, Clark faces a mandatory minimum penalty of five years and a maximum of 20 years in federal prison. The charge against him is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Dane County Sheriff’s Office; Madison Police Department; and Madison Fire Investigation Team.
Barron County Man Charged with Embezzlement from Casino
Leva Oustigoff, Jr., 58, Cumberland, Wisconsin, is charged with eight counts of embezzling money from the Turtle Lake Casino operated by the St. Croix Chippewa Indians of Wisconsin, while an employee of the casino. The dates and amounts of the alleged embezzlements are:
- December 18, 2015 – approximately $9,500;
- April 4, 2016 – approximately $7,500;
- April 29, 2016 – approximately $1,799;
- September 13, 2017 – approximately $8,599;
- October 19, 2017 – approximately $8,599;
- October 25, 2017 – approximately $20,000;
- November 27, 2017 – approximately $8,000; and
- January 18, 2018 – approximately $8,637.
If convicted, Oustigoff faces a maximum penalty of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with the cooperation of the St. Croix Tribe. Assistant U.S. Attorney Diane Schlipper is handling the investigation.
Employee of U.S. Postal Service Charged with Misappropriating Funds & False Entries in Official Records
Cammy J. Gillett, 44, Cameron, Wisconsin, is charged with misappropriating postal funds from March 2019 through July 2020. The indictment alleges that while an employee of the U.S. Postal Service, she converted to her own use more than $1,000 in U.S. Postal money orders. The indictment also charges her with making false entries in the record of Postal money order sales.
If convicted, Gillett faces a maximum penalty of 10 years in federal prison on each count. The charges against her are the result of an investigation by the U.S. Postal Service, Office of Inspector General. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Mexican Citizen Charged with Illegally Reentering U.S. & Failing to Register as Sex Offender
Jose David Saldana-Ramirez, 37, a citizen of Mexico found in Columbia County, Wisconsin, is charged in a superseding indictment with illegally reentering the United States after previously being deported, and failing to register under the Sex Offender Registration and Notification Act. Saldana-Ramirez was charged previously in an indictment returned by the grand jury on August 19, 2020, with the immigration offense only. The superseding indictment alleges that he was found in the United States on July 26, 2020, and that he failed to register as a sex offender from July 2017 to November 2019.
If convicted, Saldana-Ramirez faces a maximum penalty of 20 years in federal prison on the illegal reentry charge, and 10 years in federal prison on the failure to register as a sex offender charge. The charges against him are the result of an investigation by U.S. Immigration & Customs Enforcement. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
Forrest County Man Convicted under Project EJECT for Trafficking MethamphetamineRead the Press Release
Hattiesburg, Miss. – Oliver McNair, 29, of Hattiesburg, pled guilty today before Senior U.S. District Judge Keith Starrett to possessing methamphetamine with the intent to distribute, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On August 31, 2019, McNair was found in possession of over 60 grams of methamphetamine in Petal. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be approximately 97% pure.
McNair was indicted for this offense on January 15, 2020. He will be sentenced by Judge Starrett on January 21, 2021 at 10:15 a.m.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Forrest County Sheriff’s Office investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Former VA Hospice Nurse Pleads Guilty to Diverting and Tampering with Morphine Meant for Dying VeteransRead the Press Release
BOSTON – A Tewksbury woman pleaded guilty today to charges of diverting morphine while she employed as a nurse in the hospice unit at the Veterans Affairs (VA) Medical Center campus in Bedford.
Kathleen Noftle, 55, pleaded guilty to one count of tampering with a consumer product and one count of obtaining a controlled substance by misrepresentation, fraud, deception and subterfuge. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 24, 2021. Noftle was arrested and charged in September 2019.
On Jan. 13, 14 and 15, 2017, Noftle used her position as a nurse to obtain doses of morphine that were meant to be given to the veterans under her care in the hospice unit. Noftle admitted that she mixed water from the sink with a portion of the liquid morphine doses, and then administered the diluted medication to patients orally. Noftle then ingested a diluted amount of the remaining drug.
The charge of tampering with a consumer product provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of obtaining a controlled substance by misrepresentation, fraud, deception and subterfuge provides for a sentence of up to four years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney William B. Brady of Lelling’s Health Care Fraud Unit is prosecuting the case.
Former Schuylkill County Clerk of Courts Sentenced for Mail Fraud and Falsification of RecordsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Steven M. Lukach, Jr., age 70, of Nesquehoning, Pennsylvania, was sentenced on October 20, 2020, to 27 months’ imprisonment by U.S. District Court Judge Robert D. Mariani for mail fraud and falsification of records.
According to United States Attorney David J. Freed, Lukach served as the Clerk of Courts for Schuylkill County for approximately 27 years. In 2013-2014, county auditors with the Controller’s Office began an in depth examination of the Clerk’s Office and discovered misappropriation of funds by Lukach. An FBI investigation ensued and while the audit was going on, Lukach interfered with the audit by stealing mail that was sent to banks, forged records and sent the fake bank records to the Controller’s Office. Lukach did so in an effort to conceal that he was taking funds from various accounts for his own personal purposes, such as paying a family member’s credit card bill, paying for meals, making car payments, and other personal expenses. The total funds misappropriated was $40,000.
Judge Mariani found that Lukach’s criminal conduct was two-fold. One involved theft and the other involved obstruction of justice. Judge Mariani characterized the theft as an abuse of power and trust given to him by the people of Schuylkill County and the Commonwealth of Pennsylvania. The judge noted that his crimes were not a one-off event but pervasive theft over years from many different aspects of the criminal justice system, including stealing from funds due to be paid as restitution to crime victims, fines and cost due to be paid to county and state, and bail funds due to be returned to those properly posted the funds. His obstruction was described by the judge as simply bold. Judge Mariani indicated that the sentence of 27 months in prison was enough to deter yet punish his wrongdoing.
Judge Mariani ordered Lukach to pay $15,927 in restitution and to surrender to the Bureau of Prisons on November 17, 2020.
The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant U.S. Attorney Michael Consiglio prosecuted the case.
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Former Private Security Company Employee in Orange County Pleads Guilty to Impersonating a Federal Law Enforcement AgentRead the Press Release
LOS ANGELES – A former private security employee at an Orange County retirement community pleaded guilty today a felony charge for pretending to be a federal agent.
Donovan Pham Nguyen, 34, of Orange, pleaded guilty this afternoon to one count of impersonation of a federal officer.
According to his plea agreement, Nguyen began working at the retirement community’s private security company in 2015. While employed there, Nguyen falsely told his coworkers that he was a special agent with Homeland Security Investigations (HSI). On different occasions, Nguyen used that falsely assumed title to conduct traffic stops of his coworkers and search them, neither of which he was permitted to do as part of his actual job.
Nguyen admitted in his plea agreement that, in May 2019, he falsely claimed to be a special agent with HSI to the U.S. Department of State’s Diplomatic Security Service (DSS) as DSS agents were preparing to execute an arrest warrant on the premises of Nguyen’s job site.
He further admitted that he falsely told a Riverside County District Attorney’s Office employee in June that he was an HSI special agent, and then discussed a pending investigation – including HSI’s involvement – with the employee.
United States District Judge Dolly M. Gee has scheduled a February 3 sentencing hearing, at which time Nguyen will face a statutory maximum sentence of three years in federal prison.
This matter was investigated by HSI and U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility. The Riverside County District Attorney’s Office, DSS, and the Orange Police Department provided assistance.
This case is being prosecuted by Assistant United States Attorneys John A. Balla of the Riverside Branch Office and Jerry C. Yang, Chief of the Riverside Branch Office.
Former Police Officer Sentenced to 8 Years for Distribution and Possession of Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Matthew Enhoffer (35, St. Petersburg), a former police officer with the St. Petersburg Police Department, to 8 years and 1 month in federal prison for distribution and possession of child pornography. The court also ordered Enhoffer to pay a $10,000 special assessment pursuant to the Justice for Victims Trafficking Act of 2015. The court will determine restitution to the victims at a later date.
Enhoffer had pleaded guilty on February 11, 2020.
According to court documents, agents from Homeland Security Investigations (HSI) received a CyberTip from the National Center for Missing and Exploited Children that an individual had distributed child pornography on a web-based social media application. The investigation led agents to Enhoffer’s residence.
On September 11, 2019, HSI agents executed a search warrant at Enhoffer’s home and seized several electronic devices. An examination of Enhoffer’s devices revealed that he possessed a total of approximately 390 child pornographic images, 7 child pornographic videos, and 290 child erotic images. The images and videos depicted the sexual abuse of young children. A forensic analysis of Enhoffer’s laptop also revealed that he had distributed child sex abuse material to another individual via the internet in June and July 2018.
“It is especially disheartening when a law enforcement officer becomes the criminal but no person is above the law,” said Acting Deputy Special Agent in Charge Micah C. McCombs. “Thanks to HSI special agents and outstanding support from the St. Petersburg Police Department, this child predator will be held accountable for his crimes.”
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Loan Officer Sentenced for Defrauding Credit UnionRead the Press Release
BOSTON – A former commercial loan officer for a federal credit union in Greenfield was sentenced on Monday, Oct. 19, 2020, in federal court in Springfield for defrauding the credit union and committing tax fraud.
Michael Dicenzo, 67, of Pittsfield, was sentenced by U.S. District Judge Mark G. Mastroianni to three years of supervised release. Dicenzo previously pleaded guilty to four counts of receipt of money through transactions of a credit union with intent to defraud the credit union, four counts of tax fraud and one count of false statements to federal officials.
As a senior commercial loan officer at a credit union in Greenfield, Dicenzo fraudulently obtained a series of loans, totaling approximately $4 million, for a local businessman in exchange for a total of approximately $133,773 in kickbacks. Dicenzo also misappropriated money from two charities whose accounts he supervised. In addition, Dicenzo failed to report this illegally obtained income in his personal income tax returns for years 2006, 2007, 2008 and 2009. Lastly, Dicenzo lied to investigators during an interview on March 26, 2010, by telling them, among other things, that the kickbacks from the businessman were legitimate payments for work that his wife performed for the businesses.
United States Attorney Andrew E. Lelling and Joleen Simpson, Acting Special Agent In Charge of the Internal Revenue Service’s Criminal Investigations; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office prosecuted the case.
Former Jefferson County Man Sentenced for Sexual Exploitation CrimesRead the Press Release
SYRACUSE, NEW YORK - Logan Decker, 28, of Sioux Falls, South Dakota, was sentenced in federal court today to serve 528 months (44 years) in federal prison for his part in the sexual exploitation of a two-year-old child, announced Acting United States Attorney Antoinette T. Bacon, Thomas F. Relford, Special Agent-in-Charge, Federal Bureau of Investigation (FBI), Albany Field Office, and New York State Police Superintendent Keith Corlett.
In December 2019, Decker, who formerly lived in Jefferson County, pled guilty to all counts of a seven-count indictment, admitting that he conspired with his wife, Amber Decker, to sexually exploit the two-year-old for the purpose of producing images and videos of the abuse. Decker also admitted that on several occasions in July and August 2018, while he was living in Sioux Falls South Dakota and his wife was in Jefferson County, he demanded that his wife sexually abuse the child and upload video files of the abuse to a cloud storage account for him to view. Recovered text messages revealed that Logan Decker was also planning a trip to New York, and that he and his wife discussed the continued abuse of the two-year-old, as well as the abuse of two other children, once Logan Decker arrived. However, before that trip could happen both of the Deckers were arrested after a family member saw some of the disturbing texts on Amber Decker’s phone and called the police.
United States District Judge David N. Hurd also imposed a term of supervised release of 25 years to follow Decker’s term of incarceration, at which time he will also be required to register as a sex offender.
Amber Decker pled guilty to the same offenses, and was sentenced in August to serve 22 years in federal prison for her role in the offenses.
This case was investigated by the Federal Bureau of Investigation (FBI), Syracuse Resident Agency, the New York State Police, the Jefferson County Sheriff’s Office, and the Sioux Falls, South Dakota Police Department, and prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
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), and is designed to marshal 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.