Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 3 September 2020
U.S. Attorney Grant C. Jaquith Steps DownRead the Press Release
ALBANY, NEW YORK – United States Attorney Grant C. Jaquith announced his resignation upon his appointment as a Judge on the United States Court of Appeals for Veterans Claims after serving 31 years with the Department of Justice.
Jaquith stated, “It has been an honor and privilege to serve my country for 31 years in the U.S. Attorney’s Office for the Northern District of New York, striving to secure equal justice for all in criminal and civil cases. My years as a line prosecutor, supervisor, and U.S. Attorney have been full of meaning thanks to the agents, support staff, attorneys, supervisors, and judges I have had the good fortune to work with and learn from.”
“Grant Jaquith is the epitome of a selfless public servant who has dedicated his career to the Department of Justice,” said Attorney General William P. Barr. “He is a diligent and capable leader who has worked tirelessly to promote the rule of law. Law enforcement at all levels knew that they could count on him as a true partner, as did the communities in his district. His work has made the Northern District of New York a better and safer place.”
Mr. Jaquith took office as the 49th United States Attorney for the Northern District of New York on January 5, 2018. He had previously served as Acting United States Attorney, First Assistant United States Attorney (2010-2017), Chief of the Criminal Division (2006-2010), and Narcotics Chief and Chief of the Albany Office (1998-2006). During his tenure as United States Attorney, he served on three subcommittees of the Attorney General’s Advisory Committee – Border and Immigration, Native American Issues, and Servicemembers and Veterans Rights (as Vice-Chair and then Chair) – and the Attorney General’s Advisory Committee’s Healthcare Fraud Working Group.
In 2016, Mr. Jaquith received the Executive Office for U.S. Attorneys Director’s Award for Executive Achievement.
As United States Attorney, Jaquith emphasized several key areas. National security was his highest priority, and his office obtained convictions against foreign nationals Mojtahedzadeh, Tepper, and Biria, who worked together to unlawfully export gas turbine parts from the United States to Iran. His office also focused on economic espionage, obtaining a guilty plea to stealing GE trade secrets in Sui, and in Zheng and Zhang, Chinese foreign nationals will be tried on an indictment charging them with economic espionage and conspiring to steal trade secrets knowing and intending that those stolen trade secrets would be used to benefit the People’s Republic of China.
A related priority was border security, and Jaquith served on the Attorney General Advisory Committee’s Border and Immigration subcommittee. He also organized and led regular meetings of the U.S.-Canada Border Operations Leadership Team, which was created in 2015 to discuss cross-border law enforcement and prosecution issues.
He emphasized aggressive narcotics and gang prosecutions, with guilty pleas against international drug trafficking and money laundering organizations such as Haviaropoulos; a RICO case against the 110 Gang in Syracuse; methamphetamine cases throughout the district including Harris in Binghamton; and cutting-edge prosecutions of controlled substance analogues, Requena.
He aggressively addressed the opioid crisis through prosecution, education, and treatment. His office attacked the sources of supply in cases like Touchstone; held medical professionals responsible for illegal distributions, Mabry and Brown; and held dealers responsible when their poison killed, such as Boice, Burnell, Charo, Ebel, and Fillerup. He also participated in community meetings educating teens and their parents about the dangers of opioid and synthetic drug abuse. His office has presented 45 of those community events reaching more than 6,000 people.
In combatting financial fraud, U.S. Attorney Jaquith’s office prosecuted multi-million dollar fraudsters including Mann, which involved more than $100 million of loss related to MyPayrollHR.com; LaVigne ($10 million); Backis ($3.1 million), and Jergensen and Ghosh ($2.5 million).
U.S. Attorney Jaquith also emphasized justice for victims of violent crime. He was personally participating in the prosecution of a death penalty case against a man who is charged with the brutal murder of co-workers, Wood, and his office is prosecuting drug dealers for a cold-blooded murder, Leeper. His office obtained convictions and lengthy sentences against a college student who used a straw purchaser to buy a gun used to murder his father, Tan, and a man who caused severe injuries and burns with a bomb, Seppi. He also emphasized child exploitation cases, and his office obtained lengthy sentences for child predators in LaPorte, Decker, and Stroming. His office also prosecuted sextortion cases including Robinson.
U.S. Attorney Jaquith thanked his staff for their impressive work and emphasized what an honor it has been to work with attorneys and support staff who “demonstrate the highest ideals of public service every day through their unwavering, tireless, and humble commitment to the pursuit of justice.”
Jaquith also focused on Native American issues by serving on the AGAC’s Native American Issues Subcommittee and regularly consulting with the Oneida, Mohawk, Onondaga, and Cayuga nation leadership in the Northern District. His tribal liaison worked closely with tribal police agencies to address public safety needs in Indian Country. He said, “I very much respect the Native American tribes and their leadership in our district, and have been honored to work with them. Our efforts to maintain healthy relationships must never waver.”
Mr. Jaquith also emphasized civil work. The office’s Affirmative Civil Enforcement attorneys continued to obtain significant results including Northland Associates, Inc., Alutiiq Diversified Services LLC, and Mallinckrodt. He appointed a Civil Rights Coordinator who obtained a $450,000 settlement to resolve a complaint alleging that a landlord subjected former and potential tenants to sexual harassment, Waterbury. The office’s civil defensive AUSAs also did outstanding work defending the United States against claims.
Jaquith understood the value of crime prevention and community outreach. He led the office’s LEADership Project, a youth violence reduction program designed to help 5th grade students avoid the lure of gangs, drugs, violence, and vandalism; assigned attorneys to work in Reentry Courts; and participated in community events whenever he was invited. He was particularly proud of his work with the Albany Law Enforcement Resolution Team.
During his career, Mr. Jaquith personally prosecuted many significant cases. In United States v. Leon, Duell, Ramsey, and Fish, he obtained perjury convictions for lies witnesses told during an arson homicide investigation where a father and his three young children were killed and another child was seriously maimed. In United States v. Endo Pharmaceuticals, Inc., a pharmaceutical company paid $192.7 million to resolve criminal and civil liability arising from the marketing of a prescription drug not approved as safe and effective by the Food and Drug Administration. The resolution included a deferred prosecution agreement with significant corporate compliance provisions and a monetary penalty and forfeiture totaling $20.8 million in the Northern District of New York. In United States v. Holland and Kornak, he convicted both a research coordinator at the Stratton VA Medical Center in Albany for fraud causing a patient’s death in a cancer study and the chief of oncology who failed to ensure that accurate patient records were maintained. In United States v. Davidson, Parke, Lawrence, Morales, and Stewart, the defendants were convicted of murdering undercover drug task force officer Wallie Howard, Jr. at mid-day in a grocery store parking lot in downtown Syracuse as he attempted to purchase two kilograms of cocaine. Mr. Jaquith prosecuted several other drug trafficking organizations to trial convictions and significant sentences, including United States v. Murgas, et al, where 3 of the 12 defendants convicted were held accountable for the murders of a customer of the ring and his girlfriend; United States v. Blythe, et al, involving a conspiracy to import at least 100 kilograms of cocaine and 2,000 pounds of marijuana; and United States v. Carnell Donaldson, who led a continuing criminal enterprise comprised of 12 co-defendants that distributed about 4 kilograms of cocaine in Syracuse every 6 weeks. He also prosecuted criminal enterprises distributing kilograms of crack and cocaine led by Tyrone Hines (14 defendants) and Vyron Hargrett (15 defendants). In United States v. Walter J. Butler, the president of Service Employees International Union 200 was convicted at trial of racketeering, embezzlement, and fraud.
Mr. Jaquith served in the U.S. Army Judge Advocate General’s Corps from 1982-2011, rising to the rank of Colonel in 2004. His military awards include the Legion of Merit. Mr. Jaquith was an Army circuit judge from 2001-2010, presiding over courts-martial at forts throughout the continental United States and in Alaska, Germany, and Korea. In 2006, Mr. Jaquith spent three months on active duty as the trial judge at Fort Bragg, North Carolina.
Before joining the U.S. Attorney’s Office, Mr. Jaquith was in the litigation department of the law firm of Bond Schoeneck & King in Syracuse (1988-89) and a Judge Advocate on active duty in the U.S. Army (1982-88), where his work included administrative law, labor law, settlement of civil claims, legal assistance to soldiers, retirees, and their families, and criminal prosecutions. In 1984, he also taught Juvenile Law and Federal Income Taxation at Drury College. In 1982, he interned at the Public Defender’s Office in Gainesville, Florida.
Mr. Jaquith received his Juris Doctor from the University of Florida College of Law in 1982 and a Bachelor of Science (cum laude) in business administration/accounting from Presbyterian College, Clinton, South Carolina, in 1979, from which he was a Distinguished Military Graduate.
The Northern District of New York covers 32 counties in Northern and Central New York, covering an area of more than 30,000 square miles. The District includes 310 miles of the U.S. border with Canada and the Cayuga, Mohawk, Oneida and Onondaga Nations. The United States Attorney’s Office, with staffed offices in Albany, Binghamton, Plattsburgh, and Syracuse, has 50 attorneys and is responsible for conducting all criminal and civil litigation in the district involving the United States government.
U.S. Army major convicted on federal charge of producing child pornographyRead the Press Release
AUGUSTA, GA: A U.S. Army major assigned to the U.S. Army Cyber Command at Fort Gordon, Ga., has admitted to producing child pornography.
Jason Michael Musgrove, 40, of Grovetown, pled guilty in U.S. District Court to an Information charging him with Production of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a possible penalty of up to 30 years in prison along with substantial fines and restitution to victims in the case, followed by a period of supervised release.
There is no parole in the federal system.
At the time of his December 2019 arrest, Musgrove was an Integrated Threat Operations Officer with Top Secret/Sensitive Compartmentalized Information clearance, assigned to the Army Cyber Joint Headquarters at Fort Gordon.
According to court testimony and documents, Musgrove admitted using a hidden camera to film juvenile victims in a bathroom of his residence.
“We’re grateful to our FBI partners for their work in identifying and removing this threat to children. Their diligent and fast action in this case is inspiring,” said U.S. Attorney Christine. “There is no place in the Southern District where such a despicable predator will be allowed to hide from justice.”
“The production of child pornography is one of the most horrendous crimes we deal with in our society. It is even more concerning when the crime is allegedly committed by a member of our armed forces who is sworn to protect the United States,” said Special Agent in Charge Chris Hacker of the FBI Atlanta field office. “The FBI is committed to protecting our children and working with our law enforcement partners to identify and apprehend predators who carry out these appalling crimes.”
The investigation is being conducted by the FBI, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Two Missouri Men Charged with Firearms OffensesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that Michael M. Karmo (40) and Cody E. Smith (33) of Missouri have been charged by criminal complaint with illegal possession of firearms after being arrested on September 1, 2020, at a hotel in Pleasant Prairie, Wisconsin.
As alleged in the criminal complaint, on September 1, 2020, the Kenosha Police Department advised FBI that a law enforcement agency in Iowa had received a tip that Karmo and an unidentified male were in possession of firearms and traveling from Missouri to Kenosha, Wisconsin. FBI agents subsequently located and detained Karmo and Smith at a hotel in Pleasant Prairie, which is located near Kenosha. After receiving consent to search Karmo and Smith’s vehicle and hotel room, FBI agents recovered an Armory AR-15 assault rifle, a Mossberg 500 AB 12-Gauge shotgun, two handguns, a silencer, ammunition, body armor, a drone, and other materials. Karmo has prior felony convictions. Smith has a prior misdemeanor domestic battery conviction and acknowledged regular drug use. Consequently, both Karmo and Smith were prohibited from possessing firearms and ammunition on September 1, 2020.
The criminal complaint charges Karmo with violating 18 U.S.C. § 922(g)(1) (Felon in Possession of a Firearm). The criminal complaint charges Smith with violating 18 U.S.C. §§ 922(g)(1) and 2 (Aiding and Abetting a Felon’s Possession of Firearms); 18 U.S.C. § 922(g)(9) (Possession of Firearms and Ammunition by a Prohibited Person – Misdemeanor Domestic Violence); and 18 U.S.C. § 922(g)(3) (Possession of Firearms and Ammunition by a Prohibited Person – Unlawful User of a Controlled Substance). Each of these offenses carries a maximum penalty of 10 years in prison, a maximum fine of $250,000, and up to three years of supervision after release from prison.
This case was investigated by the FBI, with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Kenosha Police Department, the Village of Pleasant Prairie Police Department, the Kenosha County Sheriff’s Office, the Kenosha County District Attorney’s Office, and local law enforcement in the state of Iowa. It will be prosecuted by Assistant United States Attorneys Richard G. Frohling and Margaret B. Honrath.
A complaint is only a charge and is not evidence of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government must prove the defendant’s guilt beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
# # #
For further information contact:
Public Information Officer Kenneth Gales
(414) 297-1700
Follow us on Twitter
Trenton Man Sentenced to 160 Months in Prison for Participating in Heroin Trafficking ConspiracyRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 160 months in prison for his role in a large drug trafficking conspiracy that distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Craig Carpenito announced.
Omar Council, a/k/a “Stacks,” a/k/a “O,” a/k/a “Y-O,” a/k/a “Snow,” 41, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Judge Wolfson imposed the sentence today.
According to documents filed in this case and statements made in court:
In October 2018, Council and 25 other members of a drug trafficking conspiracy operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. On Aug. 8, 2019, a grand jury returned a 15-count second superseding indictment charging Council and eight other defendants, Jerome Roberts, a/k/a “Righteous,” a/k/a “Lee”; David Antonio, a/k/a “Papi,” a/k/a “Pop,” a/k/a “Victor Arias,” a/k/a “Santiago Ramirez”; Brian Phelps, a/k/a “B-Money,” a/k/a “B”; Timothy Wimbush, a/k/a “Young Money”; Taquan Williams, a/k/a “Trip”; Jubri West; Dennis Cheston, Jr., a/k/a “Beans”; and Wayne K. Bush with various crimes relating to the drug-trafficking conspiracy, including firearms charges against Phelps, Wimbush, Williams, West, and Cheston. To date, 23 defendants have pleaded guilty in connection with their participation in the conspiracy.
From as early as October 2017 to October 2018, the defendants and others engaged in a narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders – including over a cellular telephone used by Council – controlled purchases of heroin from Council and others, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Council was a significant drug distributor in and around Trenton. Council maintained close relationships with other conspirators, including Jakir Taylor, who obtained regular supplies of hundreds of “bricks” of heroin from defendant David Antonio, whom they referred to as “Papi.” Council obtained supplies of heroin directly from Taylor and others (including supplies of heroin originating from Antonio), and regularly re-distributed that heroin to others in and around Trenton.
In addition to the prison term, Judge Wolfson sentenced Council to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge George M. Crouch, Jr.; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s conviction and sentence. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the case.
The government is represented by J. Brendan Day, Attorney-in-Charge of the U.S. Attorney’s Office’s Trenton Branch Office, and Assistant U.S. Attorney Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Tioga County Man Charged with Attempted Enticement of a ChildRead the Press Release
BINGHAMTON, NEW YORK – Jacob Gorman, age 39, of Waverly, New York, was arrested and charged with attempting to entice a child. Following his initial appearance in court on Friday, a detention hearing was held today and United States Magistrate Judge Miroslav Lovric ordered that Gorman be detained pending trial.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The criminal complaint alleges that between August 11, 2020 and August 27, 2020, Gorman exchanged text messages with an undercover FBI agent who was posing as the mother of a 9-year-old girl. In those messages, Gorman expressed an interest in meeting the child and engaging in sex acts with her. Gorman negotiated a price he was willing to pay to engage in sex acts with the child and on August 27, 2020, drove to a pre-determined location in Broome County to meet and have sex with the child. Gorman was then encountered by law enforcement and arrested. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, the defendant faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, a maximum fine of $250,000, and a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Gorman would also be required to register as a sex offender.
Anyone who wants to provide law enforcement with information about the defendant should contact the FBI Binghamton office at (607) 778-7240.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States 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 https://www.justice.gov/psc.
Three Peruvian Men Sentenced to Significant Terms of Incarceration for Overseeing Call Centers That Threatened and Defrauded Spanish-Speaking U.S. ConsumersRead the Press Release
Three Peruvian men have been sentenced to significant terms of incarceration for operating a large fraud and extortion scheme, the Department of Justice announced.
The three men managed and operated call centers based in Lima and Cajamarca, Peru, which used government impersonation, lies, and threats to steal money from thousands of Spanish-speaking victims in the United States.
Earlier today, U.S. District Judge Robert N. Scola sentenced Johnny Enso Hidalgo Marchan, 40, of Lima, Peru, to 100 months in federal prison for his role overseeing one of the Peruvian call centers. In sentencing Hidalgo, Judge Scola stated that it was “important to impose a significant sentence to deter people in other countries who think they can prey on people in the U.S. with impunity.” In June 2020, Judge Scola sentenced Francesco Guerra, 25, of Lima, Peru, to 90 months in federal prison, and, in March 2020, he sentenced Rodolfo Hermoza, 45, to 88 months in prison for their roles in the scheme. The three men were extradited from Peru in December 2019 and convicted of conspiring to commit mail fraud and wire fraud earlier this year.
“We are committed to pursuing transnational criminals who defraud U.S. consumers,” said Acting Assistant Attorney General Ethan P. Davis of the Justice Department’s Civil Division. “Disrupting transnational elder fraud schemes is an Agency Priority Goal for the Department of Justice. These prison sentences show that criminals responsible for threatening and defrauding U.S. consumers will be held to account.”
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Fajardo Orshan of the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from schemes, such as this one, is a top priority of this Office and the Department of Justice.”
“The U.S. Postal Inspection Service will continue to aggressively investigate and go after those who deprive citizens of their hard earned money through the use of threats and other abusive tactics. The results of this investigation are an example of this determination and the dedicated partnership established with the Department of Justice’s Consumer Protection Branch,” said Inspector in Charge Antonio Gomez.
As part of their guilty pleas, Hidalgo, Hermoza, and Guerra admitted that they falsely posed as attorneys affiliated with U.S. courts and government agencies in threatening victims with fines, detention, confiscation of property, deportation, and community-service requirements to obtain payments from the victims. U.S. consumers lost more than $1.5 million to the defendants’ fraud scheme.
In addition to prison time, each defendant was also ordered to serve three years’ supervised release following their terms of incarceration and to make restitution payments to victims of their scheme.
Hidalgo, Hermoza, and Guerra managed and operated Peruvian call centers that, in partnership with an entity in Miami, Florida, used Internet-based telephone calls to lie to and threaten Spanish-speaking victims in the United States. The callers often falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that court proceedings would be brought against them. In reality, the victims—many of whom were elderly—had never ordered or received the products.
The defendants and other call center employees claimed that the consumers could resolve the supposed debts and avoid threatened consequences if they immediately paid a “settlement fee.” Consumers who contested the settlement fees were told that failure to pay could lead to harmed credit, arrest, deportation, or seizure of property.
At Guerra’s June 2 sentencing, Judge Scola described the defendants’ crimes as a “very serious offense” and noted that they preyed on many vulnerable victims and caused lasting psychological and emotional damage to the victims of their scheme. Judge Scola stated that a significant sentence was necessary to promote respect for the law and to deter others from engaging in similar conduct.
In addition to Hidalgo, Hermoza, and Guerra, two other individuals previously were brought to justice in connection with this scheme. In 2014, charges were brought against Angeluz and Maria Luzula of Miami and Juan Alejandro Rodriguez Cuya of Lima, Peru. Luzula pleaded guilty to all counts against her midway through trial and was sentenced to 165 months in prison. Rodriguez Cuya was convicted following a two-week trial. U.S. District Court Judge Patricia A. Seitz sentenced Rodriguez Cuya to 210 months in prison. With today’s sentencing by Judge Scola, all five defendants who have been charged in connection with this large-scale fraud and extortion scheme have now been sentenced to substantial terms of imprisonment.
The case was prosecuted by Trial Attorneys Phil Toomajian and Joshua Rothman of the Department of Justice Civil Division’s Consumer Protection Branch. U.S. Postal Inspection Service’s Miami Division investigated the case. The Justice Department’s Office of International Affairs of the department’s Criminal Division, the U.S. Attorney’s Office of the Southern District of Florida, the Department of State Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. Later, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive and broad-based efforts to combat elder fraud seek to halt the billions of dollars senior lose to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch.
Supervisor at Long Island Drug Manufacturer Indicted for Theft of over a Million Dollars Worth of Medical ProductsRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Gregory Settino with theft of medical products and making a false statement to a federal agent. Settino was arrested today and arraigned this afternoon via teleconference before United States Magistrate Judge Arlene R. Lindsay. Settino was released on a $250,000 bond.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and Jeffrey Ebersole, Special Agent-in-Charge, Food and Drug Administration, Office of Criminal Investigations, New York Field Office (FDA-OCI), announced the arrest and charges.
“As alleged, Settino abused his supervisory position at a pharmaceuticals company to steal large quantities of equine drugs in order to enrich himself and without regard for how his sale of the medical products could potentially endanger the health of horses,” stated Acting United States Attorney DuCharme. “The defendant then allegedly compounded his criminal conduct by lying to an FDA Special Agent to minimize the scope of his thefts. Thanks to the combined efforts of the U.S. Attorney’s Office and the FDA, this illicit pipeline of stolen drugs to vets and horse trainers has been shut down.”
“The safety and effectiveness of veterinary drugs play a key role in maintaining the health of animals. When these drugs leave the legitimate supply chain, they can lose their effectiveness or become unsafe,” stated FDA-OCI Special Agent-in-Charge Ebersole. “We will continue to investigate and bring to justice those who endanger the health of animals.”
As set forth in court filings, Settino was the production supervisor of manufacturing at Luitpold Pharmaceuticals, Inc. in Shirley, New York. In January 2019, Luitpold was renamed American Regent. One of the products manufactured at Luitpold and American Regent was Adequan, an injectable equine drug administered to horses with degenerative joint disease and sold throughout the United States. Between 2012 and January 2020, Settino allegedly stole thousands of bottles of Adequan from Luitpold and American Regent valued at over $1 million, and sold those drugs to horse trainers and veterinarians at New York racetracks, including Belmont Park, for more than $600,000. Settino’s conduct endangered the health of horses because the drugs were not maintained, stored or transported in accordance with proper procedures for ensuring the safety, effectiveness and efficacy of the drugs. At times, Settino transported the drugs in shoeboxes stored in his car. At all times, the drugs were handled in violation of the FDA regulated supply chain.
On January 23, 2020, Settino was interviewed by an FDA Special Agent and allegedly falsely stated that he had stolen fewer than 100 bottles of Adequan from Luitpold and American Regent.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Settino faces up to 25 years in prison.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles P. Kelly is in charge of the prosecution.
The Defendant:
GREGORY SETTINO
Age: 58
Bethpage, New YorkE.D.N.Y. Docket No. 20-CR-340 (JS)
Springfield Man Sentenced to 17 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for receiving and distributing child pornography.
Marco Barraza, 28, was sentenced by U.S. District Judge Roseann Ketchmark to 17 years and six months in federal prison without parole. The court also sentenced Barraza to 20 years of supervised release following incarceration and ordered him to pay $39,000 in restitution to his victims. Barraza will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On Oct. 29, 2019, Barraza was found guilty at trial of one count of receiving and distributing child pornography.
Law enforcement investigators received two reports from the National Center for Missing and Exploited Children that Barraza had transmitted images of child pornography through chat sessions on his Tumblr account in September 2016. Officers executed a search warrant at Barraza’s residence on March 16, 2017, and seized numerous computer-related property, including three cell phones and two hard drives that had been removed from laptop computers. Those devices contained approximately 600 images of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Southwest Missouri Cybercrimes Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Springfield, Mo., Police Department, and the Barry County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Seven Defendants Arrested and Charged in Conspiracy to Possess and Carry Firearms in Furtherance of Drug TraffickingRead the Press Release
WASHINGTON – Seven men have been indicted on federal narcotics and firearms charges as part of an ongoing investigation into drug and firearms trafficking in Southeast Washington, D.C.
The charges were announced by Acting U.S. Attorney Michael R. Sherwin, Robert E. Bornstein, acting Special Agent in Charge of the FBI Washington Field Office Criminal Division, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Those indicted by the federal grand jury include: Terrance Phillips, 35, of Washington, D.C., Niko Culbreth, 28, of Washington, D.C.; Xavier Matthews, 20, of Washington, D.C.; Naseem Roach, 20, of Washington, D.C.; Victor Davis, 20, of Washington, D.C.; Trenton Robinson, 24, of District Heights, Maryland; Steven Phillips, Jr., 26, of Washington, D.C.
According to the indictment, the defendants were engaged in the distribution of marijuana, oxycodone, and codeine. Their drug distribution was centered on 10th Place Southeast and Wheeler Road Southeast, both of which connect Alabama Avenue Southeast and Mississippi Avenue Southeast in the Congress Heights neighborhood of the District of Columbia. The defendants also used, carried, and possessed firearms, to include privately made firearms (often referred to as “ghost guns”), to protect their illegal narcotics business, to include protecting their persons, their cash, their territory, and their narcotics and paraphernalia. The defendants purchased, or otherwise acquired, firearms—often utilizing controlled substances as currency—either from each other, or from other sources. The defendants also sold or traded firearms to each other, or to other sources, in order to acquire money to purchase drugs and/or other firearms.
The defendants are expected to make their initial appearances before the U.S. Magistrate Court today, September 3, 2020.
In addition to effecting their arrests, law enforcement agents from FBI, ATF, and MPD executed multiple search warrants throughout this investigation, yielding the seizure of one fully-automatic machine gun, six additional semi-automatic firearms, more than $19,500 in cash, approximately 200 grams of oxycodone, and narcotics paraphernalia.
“The U.S. Attorney’s Office is committed to investigating and prosecuting those who endanger the residents of the District of Columbia in pursuit of the illegal gun and drug trade.” said Acting U.S. Attorney Michael R. Sherwin.
“Violent drug traffickers prey on members of their own neighborhoods,” said Robert E. Bornstein, acting Special Agent in Charge of the FBI Washington Field Office Criminal Division. “This investigation and the resulting arrests demonstrate the strong partnership between the FBI and other Department of Justice law enforcement assets—including ATF, DEA, and the U.S. Marshals Service—and MPD to address violent crime within the District of Columbia. Together, we will continue to work tirelessly with our task force partners to remove dangerous narcotics and illicitly obtained firearms from circulation on the streets of our communities.”
“The arrests today of these seven individuals marks the continuation of a concerted effort by law enforcement to pursue these violent criminals,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “Given the staggering number of crimes committed by these individuals, it was imperative that they be brought to justice. We thank our local and federal law enforcement partners for their exceptional assistance in apprehending these criminals.”
An indictment and its contents are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was investigated by the FBI Washington Field Office's Cross Border Task Force, in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Washington DC Metropolitan Police Department. Additional assistance in this matter was provided by the United States Marshals Service and the Metropolitan Washington Airports Authority. The task force is comprised of Special Agents from the Washington and the Baltimore Field Offices, task force officers from the Capital Region, and United States Park Police.
In announcing the indictment, Acting U.S. Attorney Sherwin, acting Special Agent in Charge Bornstein, Special Agent in Charge Benedict, and Chief Newsham commended the work of those involved in the case. They also acknowledged the efforts of those who are handled the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys James B. Nelson and Kaitlin A. Vaillancourt of the Federal Major Crimes Section, and Paralegal Specialists Jennifer Saralino, Rommel Pachoca, Kim Hall, Candace Battle, and Teesha Tobias as well as Legal Assistants Emma Atlas, Peter Gaboton, LaToya Wade, and Kate Abrey.
Sentence of 21+ Years for Texas Man Who Ran Drug Ring in Kansas CityRead the Press Release
KANSAS CITY, KAN. – A Texas man who oversaw a drug ring in the Kansas City metro area was sentenced Wednesday to 262 months in federal prison, U.S. Attorney Stephen McAllister said.
Jorge Portillo-Uranga, 36, Teague, Texas, pleaded guilty to seven felony counts including conspiracy, possession with intent to distribute cocaine and using a telephone in furtherance of drug trafficking.
According to court documents, the Drug Enforcement Administration began an investigation in 2016 of a drug trafficking organization headed by Portillo-Uranga that was selling kilogram quantities of cocaine and marijuana to buyers in the Kansas City metro area. Portillo-Uranga managed the operation from his home in Teague, Texas. Investigators intercepted communications between Portillo-Uranga in Texas and other members of the organization as he directed their movements in obtaining cocaine and delivering it to Kansas City. In various conversations, Portillo-Uranga expressed his suspicions that some of the traffickers were skimming cocaine from the shipments.
McAllister commended the Drug Enforcement Administration, Assistant U.S. Attorney Trent Krug and Assistant U.S. Attorney David Zabel for their work on the case.
Seminole Man Sentenced to 48 Months Probation, $249,000 Restitution for Theft from Organization Receiving Federal FundsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Randall Pete Loftis, age 41, of Seminole, Oklahoma was sentenced to 4 years of probation and ordered to pay $249,000.00 in restitution for Theft From Organization Receiving Federal Program Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A). The charges arose from an investigation by the Seminole Police Department and the Department of Defense Office of Inspector General - Defense Criminal Investigative Service (“DCIS”).
The Information alleged that from on or about December 19, 2011, until on or about August 9, 2016, in the Eastern District of Oklahoma, the defendant, Randall Pete Loftis, being an agent, employee, and officer of Enviro Systems, Inc., an organization which received in excess of $10,000 in federal benefits in each one year period from 2011 through 2016, embezzled, stole, obtained by fraud, and without authority knowingly converted to his use, property of a value of $5,000 or more, owned by, under the care of, and under the control of Enviro Systems, Inc.
United States Attorney Brian J. Kuester said, “The defendant over a period of years fraudulently used a company credit card to purchase items valued at nearly $250,000 for his personal enrichment. DCIS investigators and members of this office, after many years of investigation and working with Enviro Systems to identify the amount of loss, have successfully brought the defendant to justice. He is being held accountable and restitution has been ordered.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States.
Seafood Processor Pleads Guilty to Selling Foreign Crabmeat Falsely Labeled as Blue Crab from USARead the Press Release
A North Carolina man pleaded guilty today before U.S. District Judge James C. Dever III in the Eastern District of North Carolina on charges that his company, Garland F. Fulcher Seafood Company Inc. (Garland Fulcher), at his direction, falsely labeled hundreds of thousands dollars’ worth of foreign crabmeat as “Product of USA.”
According to information in the public record, Jeffrey A. Styron was the treasurer of the corporate board of officers for Garland Fulcher, a North Carolina company engaged in the business of purchasing, processing, packaging, transporting and selling seafood and seafood products, including crabmeat from domestically harvested blue crab.
As treasurer, Styron was responsible for overseeing the daily operations of the company’s crab-related business, which involved managing and directing employees of the company with respect to the processing, packaging, and labeling of crab meat. Styron pleaded guilty to a one-count information charging him with substituting foreign crabmeat for domestic blue crab and, as part of the plea, Styron admitted to falsely labeling crabmeat with a retail market value of at least $250,000 dollars, which was sold primarily to small seafood retailers and restaurants.
“Blue crabs are a classic American seafood product and a vital resource for coastal communities in North Carolina, Virginia, Maryland, and other parts of the United States,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “This investigation is part of the department’s mission to work with our law enforcement partners in the protection of Atlantic blue crab populations and other marine resources.”
“Seafood mislabeling is consumer fraud that undermines efforts of hardworking, honest fisherman and the free market by devaluing the price of domestic seafood,” said U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina. “In this case, the fraudulent scheme artificially deflated the cost of domestic blue crab and gave Styron and Garland Fulcher Seafood an unacceptable and unfair economic advantage over law-abiding competitors.”
“Seafood fraud undermines the economic viability of U.S. and global fisheries, deceives consumers, and threatens the health of those who consume tainted or misidentified seafood products,” said Chris Oliver, Assistant Administrator of the National Oceanic and Atmospheric Administration’s (NOAA) National Marine Fisheries Service. “This case is a great example of investigative cooperation by state and federal law enforcement to strengthen seafood fraud detection and safeguard the industry and consumers.”
As part of his guilty plea, Styron admitted that he and his company could not and did not process sufficient quantities of domestic blue crab to meet customer demands. To make up the shortfall, Styron and his company used foreign crabmeat to fulfill customer orders. During the periods when the company did not have a sufficient supply of domestic crab, Styron and Garland Fulcher purchased crabmeat (not live crabs) from South America and Asia.
As part of the guilty plea, Styron further admitted that beginning at least as early as Jan. 1, 2014, and continuing through Dec. 31, 2017, he directed company employees to repack foreign crabmeat into containers labeled “Product of USA,” which Garland Fulcher then sold to customers as “backfin,” “claw,” “lump,” “jumbo lump,” or “special,” domestically-harvested blue crab meat.
Styron is scheduled to be sentenced on Dec. 7.
This case was part of an ongoing effort by NOAA’s Office of Law Enforcement, in coordination with the Food and Drug Administration and the Department of Justice to detect, deter and prosecute those engaged in the false labeling of crabmeat.
This prosecution is being handled by the Environment and Natural Resources Division’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina. Senior Litigation Counsel Banumathi Rangarajan and Trial Attorney Gary N. Donner 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.
Seafood Processor Pleads Guilty to Selling Foreign Crabmeat Falsely Labeled as Blue Crab from USARead the Press Release
WASHINGTON – A North Carolina man pleaded guilty today before U.S. District Judge James C. Dever III in the Eastern District of North Carolina on charges that his company, Garland F. Fulcher Seafood Company Inc. (Garland Fulcher), at his direction, falsely labeled hundreds of thousands dollars’ worth of foreign crabmeat as “Product of USA.”
According to information in the public record, Jeffrey A. Styron was the treasurer of the corporate board of officers for Garland Fulcher, a North Carolina company engaged in the business of purchasing, processing, packaging, transporting and selling seafood and seafood products, including crabmeat from domestically harvested blue crab.
As treasurer, Styron was responsible for overseeing the daily operations of the company’s crab-related business, which involved managing and directing employees of the company with respect to the processing, packaging, and labeling of crab meat. Styron pleaded guilty to a one-count information charging him with substituting foreign crabmeat for domestic blue crab and, as part of the plea, Styron admitted to falsely labeling crabmeat with a retail market value of at least $250,000 dollars, which was sold primarily to small seafood retailers and restaurants.
“Blue crabs are a classic American seafood product and a vital resource for coastal communities in North Carolina, Virginia, Maryland, and other parts of the United States,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “This investigation is part of the department’s mission to work with our law enforcement partners in the protection of Atlantic blue crab populations and other marine resources.”
“Seafood mislabeling is consumer fraud that undermines efforts of hardworking, honest fisherman and the free market by devaluing the price of domestic seafood,” said U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina. “In this case, the fraudulent scheme artificially deflated the cost of domestic blue crab and gave Styron and Garland Fulcher Seafood an unacceptable and unfair economic advantage over law-abiding competitors.”
“Seafood fraud undermines the economic viability of U.S. and global fisheries, deceives consumers, and threatens the health of those who consume tainted or misidentified seafood products,” said Chris Oliver, Assistant Administrator of the National Oceanic and Atmospheric Administration’s (NOAA) National Marine Fisheries Service. “This case is a great example of investigative cooperation by state and federal law enforcement to strengthen seafood fraud detection and safeguard the industry and consumers.”
As part of his guilty plea, Styron admitted that he and his company could not and did not process sufficient quantities of domestic blue crab to meet customer demands. To make up the shortfall, Styron and his company used foreign crabmeat to fulfill customer orders. During the periods when the company did not have a sufficient supply of domestic crab, Styron and Garland Fulcher purchased crabmeat (not live crabs) from South America and Asia.
As part of the guilty plea, Styron further admitted that beginning at least as early as Jan. 1, 2014, and continuing through Dec. 31, 2017, he directed company employees to repack foreign crabmeat into containers labeled “Product of USA,” which Garland Fulcher then sold to customers as “backfin,” “claw,” “lump,” “jumbo lump,” or “special,” domestically-harvested blue crab meat.
Styron is scheduled to be sentenced on Dec. 7.
This case was part of an ongoing effort by NOAA’s Office of Law Enforcement, in coordination with the Food and Drug Administration and the Department of Justice to detect, deter and prosecute those engaged in the false labeling of crabmeat.
This prosecution is being handled by the Environment and Natural Resources Division’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina. Senior Litigation Counsel Banumathi Rangarajan and Trial Attorney Gary N. Donner 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.
Saratoga County Man Charged with Distribution of Child PornographyRead the Press Release
ALBANY, NEW YORK – Cameron Hennelly, age 30, currently of Halfmoon, New York and formerly of Amsterdam, New York, appeared in court yesterday on a charge of distributing child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
On August 28, 2020, Hennelly was charged by a criminal complaint with distributing child pornography. Hennelly appeared yesterday before United States Magistrate Judge Christian F. Hummel for a detention hearing and was ordered detained pending further proceedings. The complaint alleges that Hennelly used the Kik phone messaging application to distribute a video containing child pornography. The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted, Hennelly faces at least 5 and up to 20 years in prison, a mandatory term of supervised release of at least 5 years and up to life, mandatory registration as a sex offender, and a maximum fine of $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Ready-Mix Concrete Company and Individuals Indicted for Fixing Prices and Rigging Bids in Violation of Antitrust LawsRead the Press Release
A federal grand jury returned an indictment against one company and four individuals for their roles in a long-running conspiracy to fix prices, rig bids, and allocate markets for ready-mix concrete in the greater Savannah, Georgia area, the Department of Justice announced today.
The indictment, returned in the U.S. District Court in Savannah, charges Evans Concrete, LLC; James Clayton Pedrick; Gregory Hall Melton; John “David” Melton; and Timothy “Bo” Strickland with conspiring to fix prices, rig bids, and allocate markets for the sale of ready-mix concrete used in residential, commercial, and public projects. Pedrick is also charged with making false statements, and Strickland is charged with making false statements and perjury.
“The charges continue the division’s efforts to prosecute those who cheat the American consumer by driving up prices of the building blocks of commercial enterprise in the United States,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “With support from our law enforcement partners, the Antitrust Division will hold accountable anyone who cheats the system by depriving customers of competitive pricing, as well as individuals who lie to investigating agents.”
“Activities related to illegal price-fixing, bid rigging, and market allocation do not promote an environment conducive to open competition. When this occurs, the consumer is not guaranteed the best products at the lowest prices,” said Acting Special Agent in Charge Steven Stuller, U.S. Postal Service Office of Inspector General. “The U.S. Postal Service spends hundreds of millions of dollars on new construction, maintenance, and renovation of U.S. Postal Service facilities that require concrete and other construction materials. Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”
“The charges illustrate the FBI’s dedication and ongoing efforts with our partners to ensure that U.S. markets remain free and open,” said Acting Assistant Director in Charge, James A. Dawson, FBI Washington Field Office. “The company and individuals charged all had an alleged role in a long-running conspiracy to fix prices and rig bids. The FBI will continue to investigate those who try to cheat the system and profit at the expense of consumers.”
“The stability of our free market depends on fair play from competitors, and when competing companies collude and conspire to illegally enhance their profits, consumers and taxpayers are penalized with higher prices,” said U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “We applaud the actions of our law enforcement partners and the Department of Justice in helping to provide a level playing field for commerce in our district.”
Ready-mix concrete is a product comprised of ingredients including cement, aggregate (sand and gravel), water, and, at times, other additives. It is made on demand and, if necessary, delivered to work sites by concrete mixer trucks. Ready-mix concrete is purchased by do-it-yourself and commercial customers, as well as local, state, and federal governments, for use in various construction projects, including, but not limited to, sidewalks, driveways, bridges, tunnels, and roads.
According to the indictment, from as early as 2010 until approximately July 2016, the charged individuals, on behalf of their companies, participated in a conspiracy to fix prices, rig bids, and allocate markets for sales of ready-mix concrete. The conspirators submitted rigged bids and accepted payments for ready-mix concrete sold through contracts and on projects that were affected by the alleged conspiracy. In order to carry out the conspiracy, the conspirators used Pedrick as a conduit to exchange price-increase letters and other competitive information between the defendants and other co-conspirators for the purpose of coordinating price increases, rigging bids, and allocating jobs.
Timothy “Bo” Strickland was, at different times, owner, president, area manager, plant manager, and a salesperson for Evans. Gregory Melton was division manager of ready-mix concrete sales, and James Clayton Pedrick was a cement salesman, for a co-conspirator company. John David Melton was the general manager for another co-conspirator company. All of the defendants worked in the Savannah area.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a $100 million fine for corporations. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. The offenses of making false statements and perjury each carries a maximum penalty of 5 years in prison and a $250,000 fine.
The charges stem from an ongoing investigation by the Antitrust Division’s Washington Criminal II Section, the United States Postal Service Office of Inspector General, and the FBI’s Washington Field Office, with the assistance of the U.S. Attorney’s Office in Savannah, Georgia, and the Department of Transportation Office of the Inspector General. Anyone with information concerning price fixing, bid rigging, or other anticompetitive conduct should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Indictment: U.S. v. Evans Concrete LLC, et al
Reading, PA Woman Pleads Guilty to Sex Trafficking ChildrenRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Melissa Madera, 27, of Reading, PA pleaded guilty before United States District Court Judge Joseph F. Leeson, Jr. to multiple child exploitation and pornography offenses.
In August 2019, the defendant was charged by Indictment with two counts of sex trafficking minors, and one count each of distribution, receipt, and possession of child pornography. The charges stem from Madera’s trafficking of two children, 15-year-old and 17-year-old girls, from about August until October 2017. Madera forced the girls to engage in commercial sex for her own financial gain, and also plied the minors with drugs like Ecstasy and cocaine to ensure their compliance. Sometimes the girls would not make it to school the following day because they had been given so many drugs the previous night.
Madera also obtained a sexually explicit image of one of the girls and used it in a commercial sex trafficking website, advertising the minor for commercial sex acts using locations like the Quality Inn in Wyomissing, PA, and the Days Inn, Kleins’ Motel and Roadway Inn, all in Reading, PA. The defendant would rent two rooms at the hotel: one room was for the commercial sex acts and Madera would stay in the other after meeting the sex buyers and charging a fee of $200 per hour. After the 15-year-old’s mother reported her missing to the Reading Police Department in October 2017, Madera confronted the girl and assaulted her, stating “This is what you get for being a rat.”
“Sex trafficking is a serious problem in the Eastern District of Pennsylvania and we are committed to rooting it out,” said U.S. Attorney McSwain. “Here, Madera advertised children like objects to be sold online and gave them drugs so that they weren’t in their right minds. This is a parent’s worst nightmare.”
“Predators come in many different forms,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Make no mistake, Melissa Madera fits that bill. She has now admitted to selling minors for sex, drugging them to maintain control of their minds and bodies. Such despicable treatment does serious lasting harm. The FBI is committed to finding and freeing trafficking victims and holding their tormentors accountable.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
President of Consultant Firm Pleads Guilty to Employment Tax FraudRead the Press Release
A Richmond, Virginia, businessman pleaded guilty today to failing to collect, truthfully account for, and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia.
According to documents and information provided to the court, Rama Gogineni was president and director of Computech Services Inc., a technology consulting services firm in Richmond, Virginia. Gogineni was also responsible for collecting, truthfully accounting for, and paying over to the IRS Social Security, Medicare, and income taxes withheld from his employees’ wages. Beginning as early as 2007 and through 2015, Gogineni did not pay over more than $980,000 in employment taxes to the IRS. During this time, Gogineni entered into three separate installment agreements with the IRS committing to make the payments, but defaulted each time.
U.S. District Judge David Novak scheduled the sentencing for Feb. 10, 2021. At sentencing, Gogineni faces a maximum sentence of five years in prison as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Terwilliger thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd Ellinwood and Trial Attorney William Montague of the Tax Division and Assistant U.S. Attorney David McGuire, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Portland Man Charged with Civil Disorder After Targeting Police Officers with High-Powered LaserRead the Press Release
PORTLAND, Ore.—Hugo Ryan Berteau-Pavy, 26, of Portland, has been charged by criminal complaint with civil disorder, a felony, after targeting the eyes of multiple law enforcement officers with a high-powered laser during a June 13, 2020 civil disturbance in Portland.
According to court documents, at approximately 10:00 p.m. on June 13, 2020, a civil disturbance was declared when a crowd gathered around the Multnomah County Justice Center in downtown Portland. At approximately 10:50pm, local police began to clear the crowd. A Portland Police Bureau officer watching the crowd from the roof of the Justice Center observed two individuals, one later identified at Berteau-Pavy, standing in the middle of the street and repeatedly hitting several officers in the face with high-powered lasers.
The officer moved to a lower floor and was able to photograph Berteau-Pavy. The officer kept track of Berteau-Pavy as the crowd was dispersed. In the early morning hours of June 14, 2020, Berteau-Pavy joined a group of individuals marching from the Justice Center to Portland Mayor Ted Wheeler’s personal residence. Berteau-Pavy was observed shining a laser at the Mayor’s residence and at other homes in neighborhood. The officer who originally spotted Berteau-Pavy with the laser, tracked his location until Berteau-Pavy was contacted by other officers and taken into custody. Berteau-Pavy was later released by state authorities.
On September 2, 2020, FBI agents arrested Berteau-Pavy at his residence in southwest Portland without incident.
Berteau-Pavy made his first appearance in federal court today before a U.S. Magistrate Judge and was released pending further court proceedings. If convicted, Berteau-Pavy faces a maximum sentence of five years in federal prison.
This case was investigated by the FBI. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Pennsylvania Medicare Advantage Plan Provider Agrees to Pay $2.25M to Resolve Allegations of Inflated Plan BidsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Keystone Health Plan East, Inc. and QCC Insurance Company, Inc. (collectively referred to as “KHPE/QCC”), on behalf of parent company Independence Blue Cross, LLC (“IBC”), operator of Medicare Advantage plans, have agreed to pay a total of $2,250,000 plus interest to resolve False Claims Act allegations of incorrectly calculating anticipated plan costs, resulting in inflated Medicare Advantage plan bids to the Centers for Medicare and Medicaid Services (“CMS”).
IBC operates a number of Medicare Advantage plans for Medicare beneficiaries, and is reimbursed by CMS, which pays IBC’s subsidiaries KHPE/QCC. Medicare Advantage plans are also sometimes called “Part C” or “MA Plans,” and include bundled coverage for Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance), and usually Medicare prescription drugs (Part D). KHPE/QCC submits annual bids that include anticipated costs for each Medicare Advantage plan to be offered the following year. The government alleges that KHPE/QCC incorrectly calculated its actual prior costs in the financial plan bids submitted to CMS for contract years 2009 and 2010. The incorrect and inflated prior cost data resulted in higher base amounts in KHPE/QCC’s Medicare Advantage plan bids, causing CMS to pay inflated reimbursement to KHPE/QCC. The United States contends that these claims were false in light of defendant’s conduct.
This settlement resolved a lawsuit filed under the False Claims Act in the U.S. District Court for the Eastern District of Pennsylvania by an employee of IBC. Under the qui tam (or whistleblower) provisions of the False Claims Act, private citizens are permitted to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. The False Claims Act also permits the government to intervene and take over the lawsuit, which occurred in this case. The whistleblower in this case, Mr. Eric Johnson, will receive $499,438.05 as his share of the recovery.
“Investigating credible allegations of fraud against federal healthcare programs saves taxpayer dollars, especially in complex Medicare Advantage Part C cases such as this, when the alleged conduct has potential implications for Medicare beneficiaries and drives up the cost of Medicare Advantage plans,” said U.S. Attorney McSwain. “Medicare Advantage plan operators must know the CMS contracting rules, and the proper presentation of claims costs required by those programs, and abide by them.”
“Today’s settlement represents significant teamwork and shows our commitment to investigating all potential allegations of fraud against the Medicare Part C Programs, no matter how complex,” said Maureen R. Dixon, Special Agent in Charge of the Office of the Inspector General, Department of Health and Human Services. “We will continue to partner with the United States Attorney’s Office to evaluate allegations brought under the False Claims Act to ensure the integrity of Medicare programs.”
The government’s pursuit of these matters illustrates its emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services (“HHS”), at 1-800‑HHS‑TIPS (1-800-447-8477).
This matter was investigated by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, in conjunction with the U.S. Department of Health and Human Services Office of Inspector General. The lawsuit is captioned United States ex rel. Eric Johnson v. Independence Blue Cross, Civ. Action No. 10-CV-1520 (E.D. Pa.). Assistant U.S. Attorneys Viveca D. Parker and Eric D. Gill handled the case in the Eastern District of Pennsylvania, with assistance from auditor Dawn Wiggins.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Otsego County Woman Charged with Federal Program Theft for Stealing from School DistrictRead the Press Release
ALBANY, NEW YORK – Kristina Hand, age 47, of Morris, New York, was arrested today and charged with stealing thousands of dollars from her former employer, the Morris Central School District.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; New York State Comptroller Thomas P. DiNapoli; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Keith M. Corlett.
A criminal complaint alleges that Hand, as the Treasurer for the Morris Central School District in Otsego County, diverted and stole at least $22,315.33 in checks made payable to the school district in 2018 and 2019 – years in which the district annually received more than $10,000 in federal funding. The school district terminated Hand’s employment in February 2020, upon discovering the theft. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Hand appeared today before United States Magistrate Judge Daniel J. Stewart, and was released pending further proceedings. If convicted, she faces up to 10 years in prison, a maximum $250,000 fine, and up to 3 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI, New York State Police, and the Office of the New York State Comptroller, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Operation Pocket Dial Results in Eleven Drug Traffickers Charged for Conspiring to Distribute HeroinRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez, along with federal, state, and local law enforcement partners, announces several recent arrests in “Operation Pocket Dial” – a joint investigation targeting heroin and fentanyl distribution networks in Tampa and Kissimmee.
Three indictments were unsealed this week charging a total of 11 members of drug trafficking organizations with offenses related to the distribution of heroin and fentanyl. (See chart for details).
In December 2019, two additional defendants, Eric Manuel Robles Rivera (45/Orlando) and Eddie Quinones Santiago (38, Kissimmee), were charged as part of this investigation. Robles Rivera previously pleaded guilty to possessing heroin with the intent to distribute it and, in July 2020, he was sentenced to 33 months in federal prison. Quinones Santiago is scheduled for trial in October 2020.
According to the indictments just unsealed, between January 1, 2016, and continuing through August 27, 2020, the defendants conspired to distribute heroin and fentanyl in the Middle District of Florida. The defendants distributed heroin and fentanyl on multiple occasions, and the use of the heroin and fentanyl resulted in death and serious bodily injury.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This investigation is the result of a partnership between the United States Attorney’s Office, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Tampa Police Department, the Hillsborough County Sheriff’s Office, the Florida Highway Patrol, and the Hillsborough County Medical Examiner’s Office. It will be prosecuted by Assistant United States Attorney Michael Sinacore.
This investigation is the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. 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 illegal drug supply.
Name
(Age, Residence)
Charges
Maximum Penalties
William Franqui,
a/k/a “Gordo”
(35, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin and fentanyl resulting is serious bodily injury
Distribution of heroin (two counts)
Mandatory minimum of 10 years, up to life, in federal prison
Mandatory minimum 20 years, up to life, in federal prison
20 years in federal prison (per count)
Marie Rodriguez
(39, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin (two counts)
Mandatory minimum of 10 years, up to life, in federal prison
20 years in federal prison (per count)
Kevin Darnell Diaz Tirado
(27, Clearwater)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin (two counts)
Mandatory minimum 10 years, up to life, in federal prison
20 years in federal prison (per count)
Edgardo Colon Rosado
(28, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin (two counts)
Mandatory minimum of 10 years, up to life, in federal prison
20 years in federal prison (per count)
Jose Miriel Morales Sanchez
(29, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Mandatory minimum of 10 years, up to life, in federal prison
Orlando Muniz Escalera
(26, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin
Mandatory minimum of 10 years, up to life, in federal prison
20 years in federal prison (per count)
Leslie Pagan
(39, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin and fentanyl resulting in death
Distribution of heroin and fentanyl (eight counts)
Mandatory minimum of 10 years, up to life, in federal prison
Mandatory minimum of 20 years, up to life, in federal prison
20 years in federal prison (per count)
Jackylin Bonifacio
(36, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of heroin and fentanyl resulting in death
Mandatory minimum of 10 years, up to life, in federal prison
Mandatory minimum of 20 years, up to life, in federal prison
Steven Echevarria, a/k/a “Unca”
(34, Tampa)
Conspiracy to distribute, and possess with intent to distribute, one kilogram or more of heroin and fentanyl
Distribution of fentanyl
Mandatory minimum of 15 years, up to life, in federal prison
30 years in federal prison
Nathaniel Quiles, a/k/a “Chuleta”
(35, Kissimmee)
Conspiracy to distribute one hundred grams or more of heroin
Distribution of heroin
Mandatory minimum of 5 years, up to 40 years, in federal prison
20 years in federal prison
Kiara Marie Rivera Serrano
(29, Kissimmee)
Conspiracy to distribute one hundred grams or more of heroin
Distribution of heroin
Mandatory minimum of 5 years, up to 40 years, in federal prison
20 years in federal prison
Operation Legend: Update on Federal ChargesRead the Press Release
On July 8, 2020, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
Launched first in Kansas City, MO., on July 8, 2020, the operation was expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on August 6, 2020, and to Indianapolis on August 14, 2020.
Since the operation’s launch, through Monday, August 31, 2020, more than 2000 arrests – included 147 for homicide – have been made; more than 544 firearms have been seized; and more than seven kilos of fentanyl, 14 kilos of heroin, 12 kilos of cocaine, and 50 kilos of methamphetamine have been seized.
Of those individuals arrested, 476 have been charged with federal offenses. 249 of those defendants have been charged with firearms offenses, while 185 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses. The breakdown of federal charges is below.
Kansas City, MO.
99 defendants have been charged with federal crimes outlined below.
- 28 defendants have been charged with narcotics-related offenses;
- 60 defendants have been charged with firearms-related offenses; and
- 11 defendants have been charged with other violent crimes.
Chicago, Ill.
103 defendants have been charged with federal crimes outlined below.
- 27 defendants have been charged with narcotics-related offenses;
- 72 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Albuquerque, NM.
35 defendants have been charged with federal crimes outlined below.
- 15 defendants have been charged with narcotics-related offenses;
- 14 defendants have been charged with firearms-related offenses; and
- 6 defendants have been charged with other violent crimes.
Cleveland, OH.
54 defendants have been charged with federal crimes outlined below.
- 39 defendants have been charged with narcotics-related offenses;
- 13 defendants have been charged with firearms-related offenses; and
- 2 defendants have been charged with other violent crimes.
Detroit, MI.
41 defendants have been charged with federal offenses outlined below.
- 17 defendants have been charged with narcotics-related offenses;
- 21 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Milwaukee, WI.
15 defendants have been charged with federal crimes outlined below.
- 2 defendants have been charged with narcotics-related offenses;
- 12 defendants have been charged with firearms-related offenses; and
- 1 defendant has been charged with other violent crimes.
St. Louis, MO.
89 defendants have been charged with federal crimes.
- 44 defendants have been charged with narcotics-related offenses;
- 37 defendants have been charged with firearms-related offenses; and
- 8 defendants have been charged with other violent crimes.
Memphis, Tenn.
14 defendants have been charged with federal offenses.
- 3 defendants have been charged with narcotics-related offenses;
- 8 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Indianapolis, Indiana
26 defendants have been charged with federal crimes outlined below.
- 10 defendants have been charged with narcotics-related offenses;
- 12 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Operation Legend: Update on Federal ChargesRead the Press Release
DETROIT - On July 8, 2020, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
Launched first in Kansas City, MO., on July 8, 2020, the operation was expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on August 6, 2020, and to Indianapolis on August 14, 2020.
“Operation Legend is working, not only in Detroit but in other districts as well,” stated United States Attorney Matthew Schneider. “Operation Legend is proof that by working with our state and local law enforcement partners we are making our communities safer for the citizens of Detroit.”
Since the operation’s launch through Monday, August 31, 2020, more than 2000 arrests – included 147 for homicide – have been made; more than 544 firearms have been seized; and more than seven kilos of fentanyl, 14 kilos of heroin, 12 kilos of cocaine, and 50 kilos of methamphetamine have been seized.
Of those individuals arrested, 476 have been charged with federal offenses. Two hundred and forty-nine (249) of those defendants have been charged with firearms offenses, while 185 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses. The breakdown of federal charges is below.
Kansas City, MO.
99 defendants have been charged with federal crimes outlined below.
- 28 defendants have been charged with narcotics-related offenses;
- 60 defendants have been charged with firearms-related offenses; and
- 11 defendants have been charged with other violent crimes.
Chicago, Ill.
103 defendants have been charged with federal crimes outlined below.
- 27 defendants have been charged with narcotics-related offenses;
- 72 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Albuquerque, NM.
35 defendants have been charged with federal crimes outlined below.
- 15 defendants have been charged with narcotics-related offenses;
- 14 defendants have been charged with firearms-related offenses; and
- 6 defendants have been charged with other violent crimes.
Cleveland, OH.
54 defendants have been charged with federal crimes outlined below.
- 39 defendants have been charged with narcotics-related offenses;
- 13 defendants have been charged with firearms-related offenses; and
- 2 defendants have been charged with other violent crimes.
Detroit, MI.
41 defendants have been charged with federal offenses outlined below.
- 17 defendants have been charged with narcotics-related offenses;
- 21 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Milwaukee, WI.
15 defendants have been charged with federal crimes outlined below.
- 2 defendants have been charged with narcotics-related offenses;
- 12 defendants have been charged with firearms-related offenses; and
- 1 defendant has been charged with other violent crimes.
St. Louis, MO.
89 defendants have been charged with federal crimes.
- 44 defendants have been charged with narcotics-related offenses;
- 37 defendants have been charged with firearms-related offenses; and
- 8 defendants have been charged with other violent crimes.
Memphis, Tenn.
14 defendants have been charged with federal offenses.
- 3 defendants have been charged with narcotics-related offenses;
- 8 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Indianapolis, Indiana
26 defendants have been charged with federal crimes outlined below.
- 10 defendants have been charged with narcotics-related offenses;
- 12 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
***
Operation Legend: Update on Federal ChargesRead the Press Release
ALBUQUERQUE, N.M. - On July 8, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
The operation was expanded to Albuquerque on July 22. Since the operation’s expansion through Monday, Aug. 31, 35 defendants have been charged with federal crimes. Among the charges brought under Operation Legend in Albuquerque to date are:
-8 defendants charged with conspiracy to distribute controlled substances
-9 defendants charged with distribution of controlled substances
-16 defendants charged with possession with intent to distribute a controlled substance
-10 defendants charged with being in possession of a firearm in furtherance of drug trafficking
-19 defendants charged with being a felon in possession of a firearm
-4 defendants charged with being in possession of a stolen firearm
-5 defendants charged with Hobbs Act violations
-1 defendant charged with carjacking
-1 defendant charged with re-entry of a removed alien
-2 defendants charged with brandishing of a firearm in furtherance of a violent crime
-1 defendant charged with discharging a firearm in furtherance of a violent crime
-1 defendant charged with brandishing a firearm in furtherance of a violent crime
-1 defendant charged with maintaining a drug-involved premises
“The goal of Operation Legend in Albuquerque is to achieve a sustained reduction in gun and other dangerous crimes,” said John C. Anderson, U.S. Attorney for the District of New Mexico. “By coordinating federal resources with state and local law enforcement, we’ve been able to identify, apprehend and prosecute individuals driving dangerous crime in the city. We can see from the charges brought under Operation Legend that we have been effective in meeting our objectives and we intend to continue this trend. I want to express my appreciation to our partnering agencies for their exceptional efforts to achieve our successes to date.”
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Northern District of Ohio. Operation Legend launched in Cleveland on July 29, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Richard Woodard
“This defendant is alleged to have been associated with a heroin overdose, is accused of drug trafficking and was found in possession of multiple, loaded firearms at his home, often in the presence of a child,” said U.S. Attorney Justin Herdman for the Northern District of Ohio. “This case is a great example of what Operation Legend was designed to do – identify those illegally in possession of a firearm, drugs, or otherwise committing acts of violence and get them out of our communities to protect innocent lives.”
Richard Woodard, 41, of Cleveland, Ohio, was charged on Aug. 7, 2020, with drug distribution and being a felon in possession of a firearm.
According to the criminal complaint, an FBI-led investigation into a heroin overdose death in the city of Cleveland led law enforcement to Woodard. On Aug. 7, 2020, agents conducted surveillance of Woodard and observed him complete a heroin transaction. Later that day, law enforcement arrested Woodard in a parking lot in Cleveland for the earlier transaction. During a subsequent search warrant execution at Woodard’s apartment, law enforcement seized 60 grams of heroin, four firearms (three of which were loaded and in plain view), approximately $12,000, several boxes of ammunition, and multiple items commonly used to process and package illegal narcotics.
Because of a previous felony conviction punishable by more than one year in prison, Woodard is prohibited from possessing firearms.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources into these cities to help state and local officials fight violent crime. Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with 476 defendants charged with federal crimes.
Onondaga County Man Indicted on False Statement ChargesRead the Press Release
SYRACUSE, NEW YORK – Chasib Hafedh Saadoon Al Fawadi, age 35, of Syracuse, was charged yesterday by indictment with making false statements in connection with his application to obtain a green card.
Acting United States Attorney Bacon stated: “As alleged in the indictment, Al Fawadi lied to U.S. authorities to conceal his membership in, and support of, an Iranian-backed militia that has carried out attacks in Iraq and Syria. National security is our number one priority. With our law enforcement partners, we will aggressively investigate and seek charges against immigration applicants who lie about their affiliation with violent, extremist organizations.”
Thomas F. Relford, FBI Special Agent in Charge of the Albany Field Office, stated: “The FBI works tirelessly to protect the American people from dangerous individuals seeking to cause harm. Mr. Al Fawadi’s alleged fraudulent actions could have resulted in a member of a violent, Iranian-backed militia becoming a United States citizen. The FBI will continue to work diligently with our local, state, and federal partners to ensure the safety of every American.”
According to the indictment, Al Fawadi, an Iraqi citizen, made false statements in connection with his application to become a lawful permanent resident. Specifically, the indictment alleges that he made false statements (1) on his United States Citizenship and Immigration Services (USCIS) Form I-485 for permanent residence; (2) to an official of the USCIS, a component of the Department of Homeland Security, during an interview conducted on April 9, 2019, in connection with his application for permanent residence; and (3) to another USCIS official on October 30, 2019.
As detailed in the indictment, Al Fawadi falsely answered questions where honest answers would have revealed that (1) he had been a member of and affiliated with Asa’ib Ahl al-Haq, an Iranian-backed Shiite militia and paramilitary organization and group whose members routinely used weapons against others and threatened to do so; (2) he had also assisted and provided material support to Asa’ib Ahl al-Haq knowing that it had engaged in and conspired to engage in sabotage, kidnapping, political assassination, hijacking, and other forms of terrorist activity; (3) he had received military, paramilitary and weapons training; and (4) he had traveled to Iran and Syria. By instead providing false answers, Al Fawadi attempted to conceal all of this information from the USCIS.
According to the indictment, on March 17, 2015, while in Turkey, Al Fawadi applied for classification as a refugee and to be admitted to the United States along with his family in large part on his claim that, while in Iraq, he was persecuted and threatened by Asa’ib Ahl al-Haq because he had refused to assist in the kidnappings of Sunni Muslims.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Al Fawadi faces up to 5 years in prison on each false statement charge, up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and Homeland Security Investigations, with assistance from the Onondaga County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Steven D. Clymer.
One Person Indicted, Second Person to Plead Guilty in COVID-19 Stimulus Fraud InvestigationRead the Press Release
PROVIDENCE – A Massachusetts man who failed to appear in federal court in Rhode Island and who allegedly faked his own death after being charged and arraigned on fraud and conspiracy charges for his alleged participation in a conspiracy to file bank loan applications fraudulently seeking more than a half-million dollars in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, has been indicted by a federal grand jury in Providence.
David Adler Staveley, a/k/a Kurt David Sanborn, a/k/a David Sanborn, 53, of Andover, MA, has been indicted on three counts of bank fraud and one count each of conspiracy to commit bank fraud, false statements to influence the SBA, aggravated identity theft, and failure to appear in court as required.
According to an information and plea agreement filed with the court, alleged co-conspirator David Andrew Butziger, 52, of Warwick RI, has agreed to plead guilty to conspiracy to commit bank fraud. A court date has not yet been scheduled.
It is alleged that Staveley and Butziger conspired to seek forgivable loans guaranteed by the SBA, claiming to have dozens of employees earning wages at four different business, three restaurants and an electronics business, entities when, in fact, there were no employees working for any of the businesses. Additionally, it is alleged that Staveley posed as his brother in real estate transactions.
It is alleged in the indictment that Staveley, following his arrest on May 5, 2020, and released by the court on unsecured bond with certain travel restrictions, violated the terms of pre-trial release when he traveled to Connecticut without the approval of the court or United States Probation. On May 11, 2020, the court ordered Staveley to home confinement with GPS monitoring. While awaiting a further court hearing on the pre-trial release violation, it is alleged that Staveley cut off his electronic monitoring bracelet and fled.
According to the indictment, in an effort to deceive law enforcement into believing that he had died, it is alleged that Staveley staged his suicide by, among other things, leaving suicide notes with associates and in his car, which he left unlocked and parked by the Atlantic Ocean. It is alleged that from May 26, 2020, to July 23, 2020, in an effort to avoid apprehension, Staveley traveled to various States using false identities and stolen license plates. He was apprehended by the United States Marshals Service in Alpharetta, Georgia on July 23, 2020.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
The indictment of Staveley and the filing of an information and plea agreement in the case against Butziger are announced by United States Attorney Aaron L. Weisman, Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office, and Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation Joleen Simpson.
A federal indictment and an information are merely accusations. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The Justice Department acknowledges and thanks the SBA Office of Inspector General and the FDIC, Office of Inspector General for their efforts investigating this mater.
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.
###
Omaha Man Sentenced for New Years’ Robbery SpreeRead the Press Release
United States Attorney Joe Kelly announced that Marcus D. Evans, 26, of Omaha, Nebraska, was sentenced today to 16 ½ years in prison by United States District Judge Robert F. Rossiter, Jr., following his convictions for two counts of robbery and one count of brandishing a firearm. In addition to his prison term, he will serve three years of supervised release following his release from prison. There is no parole in the federal system. Evans was also ordered to pay restitution of $280.00 to Buck’s Inc., $151.55 to Kwik Shop, and $1,000 to Phillip’s 66.
On January 1, 2019, at approximately 5:58 a.m., Christopher Collins, Marcus Evans and Ervin Smith, Jr., while wearing masks and gloves, robbed the Bucky’s at 2901 North 72nd Street, Omaha. Smith brandished a gun but Collins and Evans knew it was there and being used. Collins was shouting orders and ordered the employee to the ground. They left the store with cash, cigarettes and Nebraska lottery tickets.
On January 1, 2019, at approximately 6:16 a.m., Collins, Evans and Smith went into the Kwik Shop at 5929 North 72nd Street. A gun was threatened but never shown. The clerk was ordered to lay on the ground. They left the store with cigarettes, cigars, and Nebraska Lottery tickets.
On January 1, 2019, at approximately 6:31 a.m., Collins, Evans and Smith robbed the Phillip’s 66 at 5920 Sorenson Parkway, Omaha. Smith was carrying a firearm that Collins and Evans knew was there. As they were entering the store, a customer saw them enter with faces covered, laying a stick in the doorway, and had a hunch the store was going to be robbed. He went to his car and retrieved a firearm, which he was licensed to carry, and re-entered the store. He demanded Collins, Evans and Smith not to move. Smith passed Collins his gun and Collins fired several shots in the direction of the customer, before Collins, Evans and Smith left the store taking store money with them.
They were all caught within 24 hours. Evans was recognized by a former school employee at a location Evans attended. Smith was recognized by an Omaha Police Gang Unit officer. The officer also located a 2013 Facebook picture showing Evans and Smith together. On January 2, 2019, a traffic stop was done of a vehicle Smith was driving. Collins was a passenger. Collins had attempted to cash in one of the stolen lottery tickets and the clerk of that store recognized and was able to identify him.
Smith has pleaded guilty and is awaiting sentencing. Collins previously pleaded guilty and was sentenced to 18 years in prison.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation Great Plains Violent Crime Task Force, comprised of FBI agents, Omaha Police Department detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives
Okmulgee Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Derrick Leron Jordan, age 49, of Okmulgee, Oklahoma entered a guilty plea to Failure To Register As Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that from on or about December 14, 2018, until on or about March 24, 2020, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Oklahoma on or about April 22, 1999, for Rape First Degree and Oral Sodomy, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The charges arose from an investigation by the Okmulgee Police Department and the United States Marshals Service.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Courtney Jordan represented the United States at the change of plea hearing.
Ohio couple admits to drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anthony A. Shuster, Jr. and Amy S. Lambert-Shuster, both of Caldwell, Ohio, have admitted to drug and firearms charges, U.S. Attorney Bill Powell announced.
Anthony Shuster, also known as “Tiny,” 35, pled guilty to one count of “Distribution of More than 50 Grams of Methamphetamine.” Shuster admitted to selling more than 50 grams of methamphetamine, also known as “crystal meth” and “ice,” in January 2019 in Ritchie County.
Amy Lambert-Shuster, 41, pled guilty to one count of “Aiding and Abetting the Unlawful Transfer of a Machinegun.” Lambert-Shuster admitted to transferring a AR15-type firearm in January 2019 in Ritchie County.
Shuster faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Lambert-Shuster 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 Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
North Carolina Man Sentenced to 15 Months in Tax Fraud CaseRead the Press Release
GREENSBORO, N.C. – A Greensboro health care services provider was sentenced in federal court in Greensboro to 15 months in prison for tax offenses, announced U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina and Special Agent in Charge Matthew D. Line of the Internal Revenue Service-Criminal Investigation (IRS-CI).
JAVONDELL R. STALLINGS, 47, of Whitsett, N.C., was the chief executive officer of Step By Step Care, Inc. In October 2019, STALLINGS pled guilty to one count of filing a false tax return in violation Title 26, United States Code, Section 7206(1).
According to court documents, STALLINGS owned and operated Step By Step Care in Greensboro since 2005. Step By Step Care provided behavioral healthcare services and substance abuse treatment to patients. On or about March 24, 2013, STALLINGS submitted a materially false personal income tax return to the IRS for calendar year 2012.
On September 3, 2020, United States District Judge William L. Osteen, Jr., sentenced STALLINGS to 15 months in prison and one year of supervised release. During the sentencing hearing, Judge Osteen also found that STALLINGS failed to pay employment taxes between the end of 2012 and the end of 2014, and the Court considered that additional tax loss as relevant conduct when imposing a sentence. STALLINGS was ordered to pay $843,616 in restitution to the IRS.
The case was investigated by IRS-CI, and prosecuted by Assistant U.S. Attorney Tanner Kroeger.
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.
###
Nine Indicted in Connection with Identity Theft and Bank Fraud ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Nine men have been charged in a 13-count indictment for their roles in a wide-ranging bank fraud and identity theft scheme that affected hundreds of victims, including in Onondaga and Albany Counties.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; William F. Sweeney, Jr., Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); and Sheriff Robert L. Langley, Jr., of the Putnam County Sheriff’s Department.
The nine defendants are:
- TYRONE PARKER, JR. a/k/a “Ty,” a/k/a “Cheese,” a/k/a “Little Thigh,” age 21, of Fort Lauderdale, Florida;
- JOSHUA MALLORY, a/k/a “P,” a/k/a “Pudge,” age 35, of Fort Lauderdale;
- TYRONE PARKER, a/k/a “Tyron Parker,” a/k/a “Thigh,” age 39, of Fort Lauderdale;
- RANDALL TAYLOR, a/k/a “Gucci,” a/k/a “Guwop,” age 34, of Fort Lauderdale;
- CEDRIC LYNCH, a/k/a “City,” a/k/a “C,” age 35, of Orlando, Florida;
- TERRELL MCDONALD, a/k/a “Ruger,” a/k/a “Moon,” age 30, of Troy, New York;
- KEYSHAWN ARNOLD, a/k/a “Key,” age 23, of Schenectady, New York;
- ROBERT NATSON, a/k/a “Big Rob,” age 34, of Fort Lauderdale; and
- GARY GRIER, a/k/a “G,” age 34, of Fort Lauderdale.
Each of the defendants is charged with conspiracy to commit bank fraud and aggravated identity theft. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
As alleged in the indictment, the defendants were involved together in a fraud scheme known as “Felony Lane Gang.” Such schemes are characterized by members of the conspiracy using stolen identification from one victim to conduct fraudulent transactions using checks and credit cards stolen from another victim. The mobile identity theft ring traveled across the country breaking into cars, often targeting those parked by women at locations such as health and fitness centers, daycares, outdoor recreational parks, and dog parks. After committing these “smash-and-grab” vehicle thefts, members of the conspiracy stole debit cards, credit cards, check books, and photo identifications, which they later used to commit bank fraud, sometimes even years later. The leaders of the scheme recruited women, whom they often referred to as “faces,” to impersonate the smash-and-grab victims in drive-through bank lanes. The recruited check cashers were almost always suffering from an addiction to a controlled substance and were provided payment at least partially in narcotics.
The defendants were collectively involved in more than 700 smash-and-grab thefts and approximately 1,000 fraudulent bank transactions in the Northern District of New York and all over the country, with losses exceeding $1.5 million.
McDonald was arrested in Troy; Mallory, Parker, Lynch, and Grier were arrested in Florida; Taylor was arrested in Utah; and Parker, Jr. was arrested in Georgia. Arnold was in New York State custody on unrelated state charges and will come into federal custody at a later date.
If convicted of the charges set forth in the indictment, the defendants each face up to 30 years in prison, and a mandatory minimum sentence of 2 years on each aggravated identity theft count. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the FBI Westchester Resident Agency of the New York Field Office and the Putnam County Sheriff’s Department, with assistance from the FBI Field Offices in Albany, Miami, and Salt Lake City, and Resident Agencies in Savannah, Georgia, and Portland, Maine, and from the U.S. Attorney’s Office for the District of Maine, the Saratoga County District Attorney’s Office, and the Ulster County District Attorney’s Office. Additional assistance was provided by numerous law enforcement agencies, including, within New York, the New York State Police; Columbia County Sheriff's Office; Genesee County Sheriff’s Office; Monroe County Sheriff’s Office; Saratoga County Sheriff’s Office; Warren County Sheriff’s Office; and the police departments of the Town of Bethlehem; Glens Falls; Gloversville; Greenburgh; Greece; and Watervliet; and elsewhere, Connecticut State Police; Florida Department of Law Enforcement; Georgia State Patrol; Illinois State Police; Massachusetts State Police; Broward County, FL Sheriff’s Office; Northern York County, PA Regional Police; Southern Chester County, PA Regional Police; Utah County, UT Sheriff's Office; and the police departments of Auburn, MA; Bath, ME; Biddeford, ME; Bozeman, MT; Brunswick, ME; Caernarvon Township, PA; Chester Township, PA; Cinnaminson, NJ; Darien, CT; East Norriton Township, PA; Easthampton, MA; Greenwich, CT; Lower Moreland Township, PA; Manheim Township, PA; Portland, ME; Portsmouth, NH; Saco, ME; Salisbury, MA; Sanford, ME; Scarborough, ME; Somersworth, NH; South Portland, ME; St. George, UT; Syracuse, UT; Tinicum, PA; Towamencin, PA; Tewksbury, MA; Wakefield, MA; Yarmouth, ME; and York, ME.
The case is being prosecuted by Assistant U.S. Attorney Andrew D. Beaty.
Newport Optometry Practice Settles ADA ComplaintRead the Press Release
LEXINGTON, Ky. – The federal government and a Newport-based optometry practice have reached a settlement agreement under the Americans with Disabilities Act (ADA), to remove barriers to access for patients with disabilities.
The settlement results from an investigation that was initiated by a complaint from a patient, who was unable to enter exam rooms during her appointment at Opticare Vision Centers in Newport, Kentucky, because she was using a wheelchair. As part of the settlement, Opticare has agreed to construct a new exam room that will be accessible to patients using wheelchairs. The ADA prohibits places of public of accommodation, including the professional offices of health care providers, from discriminating against individuals with disabilities and requires them to remove architectural barriers to access.
“Investigations of ADA complaints are critical tools in preventing impediments to people’s access to public spaces, especially their access to healthcare services and facilities,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We will continue our efforts to protect proper access to public spaces, and we appreciate Opticare’s assistance in resolving this complaint and investigation.”
This matter was handled by Assistant United States Attorney Carrie Pond as part of the office’s civil rights program and the Department of Justice’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation, to target enforcement efforts on the critical area of health care for individuals with disabilities.
The year 2020 marks the 30th anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
The Department has a number of publications available to assist entities to comply with the ADA, including publications specific to health care providers, as well as publications about tax credits available for providing access. For more information on the ADA and to access these publications, visit www.ada.gov. For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line, at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email, by sending them to [email protected].
– END –
New York Hedge Fund Founder Arrested and Charged with Fraud, Extortion, and Obstruction of Justice in Connection with Neiman Marcus BankruptcyRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DANIEL KAMENSKY, the founder and manager of New York-based hedge fund Marble Ridge Capital (“Marble Ridge”), was charged in a Complaint in Manhattan federal court with securities fraud, wire fraud, extortion, and obstruction of justice. KAMENSKY’s alleged criminal acts occurred in connection with his scheme to pressure a rival bidder to abandon its higher bid for assets in connection with Neiman Marcus’s bankruptcy proceedings so that Marble Ridge could obtain those assets for a lower price. KAMENSKY then attempted to persuade the rival bidder to cover up the scheme. KAMENSKY was arrested today and is expected to be presented before Magistrate Judge James L. Cott this afternoon.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Daniel Kamensky disregarded his fiduciary responsibility to unsecured creditors of Neiman Marcus – and broke the law – when he attempted to coerce a competitor to withdraw a higher bid for assets of the bankruptcy estate. As further alleged, acknowledging the illegality of his actions, Kamensky then attempted to obstruct an investigation by trying to persuade the competitor to change his account of the coercion, telling the competitor that otherwise ‘this is going to the U.S. Attorney’s Office.’ As today’s charges show, Kamensky was right about that.”
FBI Assistant Director-in-Charge William F. Sweeney said: “As alleged, Kamensky intentionally violated his fiduciary duty as a member of the Official Committee of Unsecured Creditors in the Neiman Marcus bankruptcy by preventing the sale of securities to an investment bank so he could acquire the same securities at a significantly lower price for his own fund. In a conversation with an employee of the investment bank, Kamensky went as far as to say, ‘Maybe I should go to jail.’ Today, we’ve removed the ‘maybe,’ and forced him to answer for his conduct.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
DANIEL KAMENSKY was the principal of Marble Ridge, a hedge fund with assets under management of more than $1 billion that invested in securities in distressed situations, including bankruptcies. Prior to opening Marble Ridge, KAMENSKY worked for many years as a bankruptcy attorney at a well-known international law firm, and as a distressed debt investor at prominent financial institutions.
The Neiman Marcus Bankruptcy
Neiman Marcus, an American chain of luxury department stores with stores located across the United States, filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) in May 2020. At the outset of the bankruptcy, Marble Ridge, through KAMENSKY, applied to be on the Official Committee of Unsecured Creditors (the “Committee”) and was thereafter appointed to be a member of the Committee. As a member of the Committee, KAMENSKY had a fiduciary duty to represent the interests of all unsecured creditors as a group.
During the bankruptcy process, the Committee had negotiated with the owners of Neiman Marcus to obtain certain securities, known as MyTheresa Series B Shares (the “MYT Securities”), and ultimately, the Committee was successful in coming to a settlement to obtain 140 million shares of MYT Securities for the benefit of certain unsecured creditors of the bankruptcy estate. In July 2020, KAMENSKY was negotiating with the Committee for Marble Ridge to offer 20 cents per share to purchase MYT Securities from any unsecured creditor who preferred to receive cash, rather than MYT Securities, as part of that settlement.
KAMENSKY’s Fraudulent Scheme
On July 31, 2020, KAMENSKY learned that a diversified financial services company headquartered in New York, New York (the “Investment Bank”) had informed the Committee that it was interested in bidding a price between 30 and 40 cents per share – substantially higher than KAMENSKY’s bid – to purchase the MYT Securities from any unsecured creditor who was interested in receiving cash.
That afternoon, KAMENSKY sent messages to a senior trader at the Investment Bank (“IB Employee-1”) telling him not to place a bid, and followed those messages up with a phone call with IB Employee-1 and a senior analyst of the Investment Bank (“IB Employee-2,” and collectively the “Employees”). During that call, KAMENSKY asserted that Marble Ridge should have the exclusive right to purchase MYT Securities, and threatened to use his official role as co-chair of the Committee to prevent the Investment Bank from acquiring the MYT Securities. KAMENSKY also stated that Marble Ridge had been a client of the Investment Bank in the past but that if the Investment Bank moved forward with its bid, then Marble Ridge would cease doing business with the Investment Bank.
The Investment Bank thereafter decided to not make a bid to purchase MYT Securities, and informed the legal adviser to the Committee of its decision. The Investment Bank further told the legal adviser they made that decision because KAMENSKY – a client of the Investment Bank – had asked them not to.
Advisers to the Committee informed counsel for Marble Ridge of their call with the Employees, and after speaking with KAMENSKY, counsel for Marble Ridge falsely informed the advisers that KAMENSKY had not asked the Employees not to bid, but instead had told them to place a bid only if they were serious. Later that evening, KAMENSKY contacted IB Employee-1 and attempted to influence what IB Employee-1 would tell others, including the Committee and law enforcement, about KAMENSKY’s attempt to block the Investment Bank’s bid for the MYT Securities. KAMENSKY said at the outset of the call, in substance, “this conversation never happened.” During the call, KAMENSKY asked IB Employee-1 to falsely say that IB Employee-1 had been mistaken and that KAMENSKY had actually suggested that the Investment Bank bid only if it were serious, and made comments including the following: “Do you understand…I can go to jail?” “I pray you tell them that it was a huge misunderstanding, okay, and I’m going to invite you to bid and be part of the process.” “But I’m telling you…this is going to the U.S. Attorney’s Office. This is going to go to the court.” “[I]f you're going to continue to tell them what you just told me, I'm going to jail, okay? Because they're going to say that I abused my position as a fiduciary, which I probably did, right? Maybe I should go to jail. But I'm asking you not to put me in jail.”
During a subsequent interview with the Office of the United States Trustee, which was conducted under oath and in the presence of counsel, KAMENSKY stated that his calls to IB Employee-1 were a “terrible mistake” and “profound errors in lapses of judgment.”
After this series of events, Marble Ridge resigned from the Committee and has advised its investors that it intended to begin winding down operations and returning investor capital.
* * *
KAMENSKY, 47, of Roslyn, New York, is charged with one count of fraud in the offer or sale of securities, which carries a maximum sentence of five years in prison, one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of extortion and bribery in connection with a bankruptcy, which carries a maximum sentence of five years in prison, and one count of obstruction of justice, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the work of the FBI. Ms. Strauss further thanked the Office of United States Trustee and the Securities and Exchange Commission for their cooperation and assistance in this investigation. She added that the FBI’s investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper and Daniel Tracer are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
New Jersey Attorney Charged with Fraudulently Obtaining $9 Million in Loans Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
A New Jersey attorney was arrested today and charged with fraudulently obtaining approximately $9 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Craig Carpenito of the District of New Jersey.
Jae H. Choi, 48, a licensed attorney of Cliffside Park, New Jersey, was charged by criminal complaint, unsealed today upon his arrest, in the District of New Jersey with three counts of bank fraud and one count of money laundering.
The complaint alleges that Choi submitted three fraudulent PPP loan applications to three different lenders on behalf of three different businesses that purportedly provided educational services. The complaint also alleges that Choi fabricated the existence of hundreds of employees, manipulated bank and tax records, and falsified a driver’s license on the applications.
Choi allegedly falsely represented to the lenders that the companies controlled by him had hundreds of employees and paid over $3 million in monthly wages. Based on Choi’s alleged misrepresentations, each lender funded each of the three businesses with an approximately $3 million PPP loan. As a result, the complaint alleges that Choi received a total of nearly $9 million in federal COVID-19 emergency relief funds meant for distressed small businesses.
Choi allegedly used the fraudulently-obtained PPP loan proceeds to pay for numerous personal expenses, including to buy, among other things, a nearly one million-dollar residential home in Cresskill, New Jersey, to fund approximately $30,000 in remodeling and other improvements, and to invest millions more in the stock market through an account held in the name of his spouse.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by IRS – Criminal Investigation, the U.S. Postal Inspection Service, the Small Business Administration Office of the Inspector General, and the Social Security Administration – Office of the Inspector General. Trial Attorney Andrew Tyler and Assistant U.S. Attorney Andrew Macurdy of the District of New Jersey are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Multi-Convicted Felon with Stolen AR-15 Rifle Facing More Than 10 Years in Federal PrisonRead the Press Release
Ocala, Florida – Christopher Maurice McCallum, Jr. (28, Ocala) has pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. In a related case, McCallum also admitted to violations of his federal supervision for possessing the same firearm. He could receive an additional two years in federal prison for these violations. A sentencing date has not yet been set.
According to the plea agreement, on May 25, 2020, City of Ocala police officers responded to a shooting in a local neighborhood. The officers observed McCallum attempting to flee the area in a vehicle. McCallum was apprehended after a short pursuit after he abandoned the vehicle and tried to run on foot. Officers recovered a stolen AR-15 rifle, loaded with ammunition, from the driver’s side floorboard of the vehicle. McCallum, a multi-convicted felon, was on supervision for a federal weapons offense. As such, he is prohibited from possessing firearms or ammunition under federal law.
On June 7, 2020, officers again arrested McCallum on several outstanding federal warrants relating to this conduct. At the time of his arrest, McCallum had barricaded himself inside an apartment. A subsequent search of the apartment revealed two more loaded firearms—a stolen handgun and another AR-15 rifle—along with illegal drugs and paraphernalia.
This case was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Middlesex Man Charged with Conspiring with Brooklyn Men to Defraud New Jersey BanksRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man and two Brooklyn, New York, men were charged today with bank fraud and identity theft, U.S. Attorney Craig Carpenito announced.
Benjamin Rich, 40, of Edison, New Jersey, and Frank Ambrosio, 35, and Felix Alamo, 59, both of Brooklyn, are each charged by complaint with conspiracy to commit bank fraud and aggravated identity theft. Rich and Alamo are scheduled to appear today by videoconference before U.S. Magistrate Judge James B. Clark III. Ambrosio remains at large.
According to the documents filed in this case and statements made in court:
Rich, Ambrosio, and Alamo, and others, allegedly conspired to defraud banks across New Jersey, and elsewhere, by using the personal identification information (PII) of victims to open fraudulent bank accounts in order to deposit fraudulently obtained checks. Rich would obtain checks that were either stolen or counterfeited. He would then create sham businesses with names closely resembling those of the payees appearing on the stolen or counterfeited checks. For example, if defendant Rich obtained a check made payable to “ABC Corp.,” he would create a sham business called “ABC LLC.” Rich would later provide Ambrosio, Alamo, and other conspirators, with fraudulent identification documents bearing their photographs and the victims’ PII and business opening documents in order to open the fraudulent bank accounts for the sham businesses. The conspirators would deposit the fraudulently obtained or counterfeited checks into those fraudulent bank accounts and then withdraw the funds before anyone could detect the fraud.
The charge of bank fraud carries a maximum of 30 years in prison and a maximum fine of $1 million, or twice the gain derived or loss caused by the offense, whichever is greater. The charge of aggravated identity theft carries a statutory minimum term of imprisonment of two years in prison, which must run consecutively to any other term of imprisonment imposed, and a fine of $250,000, or twice the gain derived or loss caused by the offense.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Frauds Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Medical Assistant Admits Role in Genetic Testing Kickback and Bribery SchemeRead the Press Release
TRENTON, N.J. – A Pennsylvania medical assistant today admitted participating in a conspiracy to receive bribes and kickbacks in exchange for ordering genetic tests, U.S. Attorney Craig Carpenito announced.
Amber Harris, 28, of Lake Ariel, Pennsylvania, pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to an information charging her with one count of conspiring to violate the anti-kickback statute.
Harris is the first of several defendants to plead guilty in long-running bribery and kickback schemes involving doctors and medical employees in the Scranton, Pennsylvania, area.
According to documents filed in this case and statements made in court:
Harris worked as a medical assistant for Yitzachok “Barry” Kurtzer, a primary care physician with offices in the Scranton area. From at least 2018, Kurtzer and his wife, Robin Kurtzer, accepted monthly cash kickbacks and bribes in exchange for collecting DNA samples from Medicare patients and sending them for genetic tests to clinical laboratories in New Jersey and Pennsylvania. The cash kickbacks ranged up to $5,000, and the Kurtzers typically accepted the cash in one of Kurtzer’s offices.
Even as the ongoing COVID-19 pandemic substantially reduced in-patient visits, the Kurtzers continued with their scheme. They went from receiving hand-delivered cash kickbacks and bribes to accepting payments by wire and through a cell phone money transfer app.
Harris and another employee, Shanelyn Kennedy, also participated in the scheme. They both helped collect the DNA swabs in exchange for also receiving kickbacks and bribes, both in cash and later using the money transfer app.
As a result of the scheme, Medicare paid $755,241 for genetic tests generated from Kurtzer’s practice.
The count of conspiracy to violate the federal anti-kickback statute is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for Jan. 5, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and U.S. Department of Health and Human Services, Office of Inspector General, Philadelphia Regional Office, under the direction of Special Agent in Charge Maureen R. Dixon, with the investigation leading to the charges. He also thanked the FBI Scranton Field Office, FBI Philadelphia Division and the Pennsylvania Attorney General’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit in the Criminal Division, Newark.
The charges against and allegations against the remaining defendants are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Marina del Rey Man Agrees to Plead Guilty to Wire Fraud Charge that His Forex Trading Business Instead Was $3.3 Million Ponzi SchemeRead the Press Release
LOS ANGELES – An accountant has agreed to plead guilty to a federal charge that he ran a $3.3 million Ponzi scheme that falsely promised generous returns for foreign exchange currency investors, and he facilitated the scheme in part with money he embezzled from his former employer, the Justice Department announced today.
Steven F. Brown, 52, of Marina del Rey, agreed to plead guilty to a one-count criminal information charging him with wire fraud. The criminal information and a related plea agreement were filed on August 28 in United States District Court in downtown Los Angeles, where Brown is scheduled to make his initial court appearance on September 15.
According to his plea agreement, Brown controlled and operated Alpha Trade Analytics, Inc., a financial consulting and investment company he largely ran out of his home. Neither Brown nor Alpha Trade was a registered broker or dealer in securities. Brown also served as the accountant for a non-profit organization providing dance and theater arts education to children and young adults in Los Angeles, and had access to its bank accounts.
From April 2014 to May 2018, Brown solicited investments in Alpha Trade, including from people he encountered through his position with his employer, and through his relationship with its executives and employees, which afforded him access to high-net-worth individuals.
To encourage those individuals to invest with Alpha Trade, Brown falsely promised that their investments would only be used for foreign exchange (Forex) currency trading and that they would receive guaranteed monthly payouts of around 10%. He also falsely represented that he had extensive experience in Forex investing, regularly made profitable trades, and achieved substantial and growing rates of return that exceeded the industry average.
Contrary to his representations to investors, Brown only used a small portion of the total amount invested in Alpha Trade for Forex trading, mostly in 2015. Instead, he routinely used investor funds for other purposes, including his rent, car payments, restaurant and retail expenses, and lulling payments to other investors, the plea agreement states.
In order to induce investors to maintain or supplement their investments with Alpha Trade and to conceal his scheme, Brown periodically provided investors with account statements that reflected fabricated investment returns that often showed steady, significant gains.
Brown admitted he made some of the promised recurring payouts and provided demanded refunds, not based on any Forex investment returns, but instead from money stolen from new investors and through funds he embezzled from the dance academy through unauthorized wire transfers, credit card advances, and cash withdrawals he was able to make by virtue of his position as the dance academy’s accountant.
In total, Brown caused losses of approximately $3,313,346 to more than 10 victims, including nearly $700,000 in losses to his former employer based on the money he embezzled from it, according to the plea agreement.
When Brown enters his guilty plea, he will face a statutory maximum sentence of 20 years in federal prison.
The Securities and Exchange Commission today announced a settlement agreement with Brown in relation to his Ponzi scheme.
The FBI investigated this matter.
This case is being prosecuted by Assistant United States Attorney Kristen A. Williams of the Major Frauds Section.
Man Tat Le Sentenced to 84 Months in Federal Prison for Distribution of MethamphetamineRead the Press Release
SALT LAKE CITY – Man Tat Le, aka Asian Le, pleaded guilty to distribution of methamphetamine Wednesday morning and was sentenced to 84 months in federal prison. U.S. District Judge Dale A. Kimball imposed the sentence.
Le, 45, of West Valley City, was charged with distribution of methamphetamine in January after law enforcement officers received information indicating Le was engaged in narcotics trafficking. Special agents of the Utah State Bureau of Investigation (SBI), in conjunction with the FBI’s Safe Street Task Force, conducted a controlled purchase of methamphetamine from Le on Jan. 22, 2020, utilizing a confident human source (CHS). Le sold the CHS approximately 3 ounces of methamphetamine.
Le was arrested in January after leading members of the law enforcement officers on a chase. A West Valley City police officer tried to pull Le over. Le sped away from the officer and a 20-minute chase began. He was taken into custody in Salt Lake City after officers spiked his tires, he crashed his car, and officers captured him as he attempted to flee the scene.
This is Le’s third federal conviction for possession of methamphetamine with intent to distribute. Previous convictions were in June 2012 and September 2018.
Le is affiliated with the Oriental Laotian Gang in Utah. Federal prosecutors, partnering with local, state, and federal law enforcement agencies and county attorneys in Utah, have filed 476 gang cases since January 2018. A substantial majority of these cases include multiple defendants.
“Far too many offenders cannot leave their criminal conduct behind and continue to negatively impact the peace and safety of Utah communities. This conviction and prison sentence will ensure a seven year respite from this offender’s reckless actions that orbit around gang affiliation and drug distribution,” U.S. Attorney John W. Huber said today. “He will be out of our state since there are no federal prisons in Utah, and there is zero chance of parole in the federal system.”
"The public shouldn't have to deal with violent offenders like Man Tat Le, who repeatedly brought dangerous drugs into our communities," said Special Agent in Charge Paul Haertel of the Salt Lake City FBI. "The purpose of the FBI's Safe Streets Task Force is to keep our communities safe from criminals like Le, who mistakenly believe they are above the law and won't face tough consequences for their crimes."
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office are prosecuting the case. Agents and officers with the FBI’s Safe Streets Task Force, Utah SBI, and West Valley City and Salt Lake City police departments are investigating the case.
Los Banos Man Sentenced for Poly-drug Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — Oscar Rene Marrot-Garcia, 27, of Los Banos, was sentenced today to 6.5 years in prison for conspiring to manufacture, to distribute and to possess with intent to distribute methamphetamine, cocaine, heroin, and marijuana, U.S. Attorney McGregor W. Scott announced.
His sentence follows his guilty plea earlier this year. In pleading guilty, Marrot-Garcia acknowledged that he rented a residence in a rural location in Madera for the purpose of manufacturing methamphetamine and storing large quantities of other drugs at an unoccupied residence in Madera. He also acknowledged that he assisted in packaging the drugs for distribution. According to his plea agreement, at the end of January 2019, detectives of the Madera County Sheriff’s Office Narcotic Enforcement Team (MADNET) executed a search warrant at the residence and found Marrot-Garcia along with Francisco Alcantar-Miranda, 31, and Jose Monge-Ponce, 31, both of Mexico. The detectives found over 10 pounds of methamphetamine in crystallized form and in liquid, 4 pounds of heroin, 1 pound of cocaine, and 25 pounds of marijuana. U.S. District Judge Dale A. Drozd also ordered Marrot-Garcia to forfeit a handgun and approximately $18,000 in cash, which officers located at the residence.
Alcantar-Miranda previously entered a guilty plea and was sentenced to 10 years in prison. Monge-Ponce is scheduled for a Status Conference on Nov. 30. The charges against Monge-Ponce are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by MADNET and the High Intensity Drug Trafficking Area (HIDTA) team, which consists of agents from Homeland Security Investigations, California Department of Justice, California Highway Patrol-Fresno, the Sheriffs’ Offices of Tulare and King Counties, and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Justice Department Reaches Settlement with City of San Antonio for Illegally Auctioning Servicemembers' VehiclesRead the Press Release
The Justice Department today announced that it has reached an agreement with the City of San Antonio, Texas to resolve allegations that the city violated the Servicemembers Civil Relief Act (SCRA) by auctioning or otherwise disposing of cars owned by protected servicemembers without first obtaining court orders.
Under the agreement, San Antonio must pay $47,000 to compensate two servicemembers who complained that the city unlawfully auctioned off their cars while they were in military service. The city must also establish a $150,000 settlement fund to compensate other servicemembers whose SCRA rights may have been violated and pay a $62,029 civil penalty to the U.S. Treasury.
The agreement, which is subject to court approval, resolves a suit filed today by the Department of Justice in the U.S. District Court for the Western District of Texas.
“Servicemembers who serve our country honorably should not have to come home to find that that their only means of transportation and its contents have been auctioned off to the highest bidder,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We are pleased that the city has worked cooperatively with the department to reach a settlement that will compensate all the servicemembers who lost their vehicles and will provide additional protections for the thousands of servicemembers stationed in and around San Antonio.”
“I am proud that our office was able to reach a settlement with the City of San Antonio to protect servicemembers who are deployed overseas,” said U.S. Attorney John Bash for the Western District of Texas. “When servicemembers are fighting for our country, they should not have to worry that their vehicles will be gone when they return home.”
The department launched its investigation after receiving a complaint from U.S. Air Force Staff Sergeant Paula Rangel, alleging that the city had towed and auctioned her vehicle while she was deployed to Afghanistan. After learning that her vehicle had been impounded at the city’s Growdon Road Vehicle Storage Facility, Staff Sergeant Rangel and her military legal assistance attorney called the facility on several occasions to try to arrange for the release of her vehicle. During these phone calls, they identified Staff Sergeant Rangel as an active duty servicemember who was deployed overseas. Despite these efforts, employees at the storage facility refused to release the vehicle to members of Staff Sergeant Rangel’s military unit and would not allow them to remove her personal property and military equipment from the vehicle. On Sept. 21, 2016, the city, through its contractual agent, UR Vehicle Management Solutions, sold the vehicle at auction for $6,600, without obtaining the court order required by the SCRA.
The department’s investigation revealed that between 2011 and 2019, San Antonio auctioned at least 227 vehicles registered to SCRA-protected servicemembers without obtaining the required court orders. In some cases, the city auctioned vehicles that listed the name of a military installation as a part of the registered owner’s address. The settlement requires San Antonio to adopt new procedures to investigate the military status of any registered owner prior to auctioning a vehicle. The city will also be required to obtain a court order or a valid SCRA waiver prior to auctioning a vehicle owned by a protected servicemember.
The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/.
Justice Department Issues Modernized Merger Remedies ManualRead the Press Release
The Department of Justice issued today the Merger Remedies Manual, which provides a framework for the Antitrust Division to structure and implement appropriate relief that preserves competition in merger cases. The Merger Remedies Manual updates the Antitrust Division’s 2004 Policy Guide to Merger Remedies.
“The modernized Merger Remedies Manual reflects our renewed focus on enforcing obligations in consent decrees and reaffirms the Division’s commitment to effective structural relief,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “It will provide greater transparency and predictability regarding the Division’s approach to remedying a proposed merger’s competitive harm.”
The Merger Remedies Manual is the first revision of the Antitrust Division’s remedies manual in nearly a decade and reflects important changes in the merger landscape over that time. The modernized document includes new sections explaining the approach that the division takes with consummated transactions and upfront buyers. In addition, the Merger Remedies Manual outlines certain “red flags” that in the division’s experience increase the risk that a remedy will not preserve competition effectively. Finally, the manual reflects important principles implemented in recent Antitrust Division consent decrees, such as when it may be appropriate to name the divestiture buyer as a party to the consent decree or when it may be appropriate that the divestiture include assets beyond the overlapping relevant markets.
The manual reflects the key elements of the Division’s approach to merger remedies.
Commitment to Effective Structural Relief. The Merger Remedies Manual emphasizes that structural remedies are strongly preferred in horizontal and vertical merger cases because they are clean and certain, effective, and avoid ongoing government regulation of the market. The manual also describes the limited circumstances in which conduct remedies may be appropriate: (1) to facilitate structural relief, or (2) if there are significant efficiencies that would be lost through a structural divestiture, if the conduct remedy would completely cure the competitive harm, and if it can be enforced effectively.
Renewed Focus on Enforcing Consent Decree Obligations. The principles outlined in the Merger Remedies Manual describe how the Antitrust Division will ensure that consent decrees are fully implemented. The manual describes several standard consent decree provisions designed to improve the effectiveness of consent decrees and the Antitrust Division’s ability to enforce them. In addition, the Manual highlights the role of the newly created Office of Decree Enforcement and Compliance, which oversees the Antitrust Division’s decree compliance efforts.
The Merger Remedies Manual also outlines the following key principles that apply to structuring and implementing remedies in all the Antitrust Division’s merger cases, both horizontal and vertical:
- Remedies must preserve competition.
- Remedies should not create ongoing government regulation of the market.
- Temporary relief should not be used to remedy persistent competitive harm.
- The remedy should preserve competition, not protect competitors.
- The risk of a failed remedy should fall on the merging parties, not on consumers.
- The remedy must be enforceable.
The Merger Remedies Manual is the culmination of a process first announced by Assistant Attorney General Delrahim in September 2018, when the division withdrew the 2011 Policy Guide to Merger Remedies and announced that the 2004 Policy Guide to Merger Remedies would be in effect pending the release of an updated policy.
Ithaca Man Sentenced to Five Years of Probation for Filing a False Tax ReturnRead the Press Release
SYRACUSE, NEW YORK – William Harrell, age 58, of Ithaca, New York, was sentenced yesterday to five years of probation for filing a false tax return, announced Acting United States Attorney Antoinette T. Bacon and Jonathan D. Larsen, Special Agent in Charge of Internal Revenue Service-Criminal Investigation, New York Field Office.
As part of his previous guilty plea, Harrell admitted that in October 2016, he filed a tax return for the year 2015 in which he knowingly and willfully underreported revenue he received through his construction and remodeling business. Harrell also admitted to underreporting revenue for the years 2012-14, and 2016. Harrell failed to report approximately $3,994,866 in income, as result of which he avoided paying $422,843 in federal incomes taxes.
The court also ordered Harrell to pay restitution to the IRS in the amount of $907,669.75, which included unpaid taxes, interest, and penalties.
This case was investigated by Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.
Investigation into Theft at Winnfield Firearms Store Leads to Guilty Plea in Federal CourtRead the Press Release
ALEXANDRIA, La. – Acting United States Attorney Alexander C. Van Hook announced that a Winnfield man pleaded guilty today to stealing firearms from a local store.
Joe Louis Anderson, 53, of Winnfield, Louisiana, pleaded guilty before United States District Judge Dee D. Drell to one count of theft of firearms from a federal firearms dealer. Evidence introduced at the hearing established that during the early morning hours of July 25, 2019, Anderson unlawfully entered the Governor’s Affair store and stole five firearms from the firearm display case. The store had surveillance video of Anderson stealing the firearms and leaving the store with them.
Anderson has a lengthy criminal history, with previous convictions for second degree burglary and possession of stolen vehicle (1991); possession of stolen vehicle and larceny (1992); second degree burglary and knowingly concealing stolen property (1995); larceny of an automobile (1997); and possession of contraband in penal institution (1998).
Anderson faces 10 years in prison, not more than three years of supervised release and a $250,000 fine. The court set the sentencing date for December 4, 2020 at 11:00.
The ATF and Winnfield Police Department investigated the case. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
# # #
International money laundering, drug trafficking and illegal wildlife trade operation dismantledRead the Press Release
Operation Apex imageSAVANNAH, GA: An international conspiracy that profited from drug trafficking and the illegal wildlife trade and conspired to hide the illegal nature of the proceeds has been shut down in a multi-agency law enforcement operation.
Initiated by the U.S. Fish and Wildlife Service and the U.S. Drug Enforcement Administration, Operation Apex brought together multiple agencies under the umbrella of the Organized Crime Drug Task Forces (OCDETF) to target two businesses, in Florida and California, and a dozen individual defendants whose activities included international trade in illegal wildlife products, trafficking in marijuana, and a money laundering conspiracy to disguise the massive proceeds of the unlawful activities that spanned at least a 10-year period, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
Following the unsealing of an indictment in U.S. District Court for the Southern District of Georgia, agents from the U.S. Fish and Wildlife Service (USFWS), the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), and the U.S. Marshals Service arrested 12 defendants and conducted 22 federal search warrants from coast to coast, including the Southern District of Georgia, the Northern District of Georgia, the Northern District of Florida, the Eastern District of Michigan, the Central District of California, and the Northern District of California.
“Fearless and aggressive law enforcement brought an end to this sprawling, transnational conspiracy. In the end, the size of the conspiracy was overwhelmed by a coordinated law enforcement effort to infiltrate, document and dismantle it,” said U.S. Attorney Christine. “United with our partner agencies, we have shut down an operation that fed a seemingly insatiable overseas appetite for illegally traded wildlife, and seized ill-gotten assets derived from that despicable criminal enterprise.”
The indictment in Operation Apex charges 12 defendants and two businesses with Mail and Wire Fraud Conspiracy; Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances; and Money Laundering Conspiracy. The charges carry potential penalties of up to life in federal prison, where there is no parole.
As alleged in the 37-page indictment, conspirators in multiple locations in the United States, including the Southern District of Georgia, and in Hong Kong, Mexico, Canada, and elsewhere, were involved in the Wu transnational criminal organization that engaged in wildlife trafficking, shark finning, drug trafficking and money laundering.
The indictment alleges that the conspiracy began as early as 2010 as members of the conspiracy submitted false documents and used sham businesses and dozens of bank accounts to hide proceeds from the illegal activities. The indictment states that members of the conspiracy would deposit bulk cash from illegal activities, including wildlife trafficking and drug trafficking, into third-party business accounts that dealt in gold, precious metals, and jewels, to hide the illegal activities. Conspirators also deposited millions of dollars from illegal activities into third-party business accounts located in the United States, Mexico, and Hong Kong, in an effort to hide the illegal profits.
Shark finning is the barbaric practice of catching sharks at sea, cutting off their fins and throwing the injured shark back into the ocean to die. Shark finning is aimed at supporting the demand for shark fin soup, an Asian delicacy. Certain species of sharks are protected wildlife under federal and state law to ensure their continued sustainability.
During the arrests of the defendants and searches of their homes and workplaces, agents seized more than $3.9 million in multiple bank accounts; approximately $3 million in gold, silver, and other precious metals, along with $1 million in diamonds; approximately 18,000 marijuana plants and 34.5 pounds of processed marijuana; multiple firearms; and documented the harvest of more than six tons of shark fins. Agents also seized 18 totoaba fish bladders, a delicacy in Asia harvested illegally from an endangered species. Defendants charged in the case are:
- Serendipity Solutions LLC, of San Bruno, Calif.;
- Phoenix Fisheries LLC, of Southport, Fla.;
- Terry Xing Zhao Wu, 45, of Burlingame, Calif.;
- Natalie Ye Man Chan Wu, 38, of Burlingame, Calif.;
- Woonjin Lam, 43, of San Francisco;
- Anthony Wu, 24, of San Francisco;
- Billy Chen, 61, of Walnut, Calif.;
- Ying Le Pang, 47, of San Lorenzo, Calif.;
- Mark Leon Harrison, 59, of Southport, Fla.;
- Heather Huong Ngoc Luu, 46, of Westminster, Calif.;
- Lam Phuoc Quang, 47, of Pasadena, Calif,;
- Kevin Chinh Nguyen, 40, of Tucker, Ga.;
- Elias Samuel Castellanos, 54, of Scottsdale, Ariz., and,
- Terry Louis Shook, 56, of Grosse Pointe Park, Mich.
“The Trump Administration believes in law enforcement and tackling wildlife trafficking. By successfully dismantling this criminal operation, we are unveiling the true nature of criminal syndicates, in which species like sharks and totoaba are the silent victims,” said Aurelia Skipwith, Director of the U.S. Fish and Wildlife Service. “I applaud and thank our partners at the U.S. Department of Justice, U.S. Drug Enforcement Administration, U.S. Marshals Service, U.S. Postal Inspection Service and Homeland Security Investigations for their assistance with this case. Together, we will continue to protect imperiled species for future generations.
“Removing dangerous drugs from the streets and hitting drug traffickers in their ‘pockets’ are both integral parts of dismantling sophisticated drug distribution networks, as was the case in this investigation,” said the Special Agent in Charge of DEA’s Atlanta Field Division Robert J. Murphy. “Their money is their lifeline and without it, their drug distribution activities cannot survive. This investigation was a success because of the investigative efforts by a collection of federal, state and local law enforcement agencies and the subsequent prosecution by the U.S. Attorney’s Office.”
“Transnational criminal organizations continue to pose a significant threat to national and international security,” said Christopher Kennally, Savannah CBP Area Port Director. “Our officers’ expertise, along with the utilization of available tools, and valuable partnerships resulted in the arrest of these criminals. Our communities can feel safer knowing that the men and women of CBP are securing their borders.”
“It’s a sad day when not even the sharks in the ocean are safe from the greed of criminal organizations,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta is a proud to have been a part of this operation and to work alongside our federal, state, and local partners to protect our communities and oceans.”
“The United States Postal Inspection Service stands ready and committed to assist its local, state and federal law enforcement partners in any type of investigation,” said USPIS-Miami Division Inspector in Charge Antonio Gomez. “This case highlights the great working relationships between all of the involved agencies, and serves as a reminder that criminal activity involving the mail will be identified and prosecuted to the fullest extent of the law.”
An indictment is only a charge and is not evidence of a crime. Defendants are presumed innocent unless and until convicted in a court of law.
Operation Apex is an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
Agencies conducting the investigation include the U.S. Fish and Wildlife Service Special Investigations Unit, the U.S. Drug Enforcement Administration, the U.S. Marshals Service, the U.S. Postal Inspection Service, Customs and Border Protection, and Homeland Security Investigations, in conjunction with state and local agencies including the Georgia Department of Natural Resources.
The case is being prosecuted for the United States by Assistant U.S. Attorneys E. Greg Gilluly Jr., Tania Groover, Xavier Cunningham, and Joshua Bearden, with assistance from Trial Attorney Joseph Palazzo and the Money Laundering and Asset Recovery Section of the U.S. Department of Justice.
Idaho Falls Man Sentenced to over Five Years in Federal Prison for Possession of Child PornographyRead the Press Release
POCATELLO – Arnulfo Gonzales-Torres, 23, of Idaho Falls, was sentenced in U.S. District Court to 63 months in federal prison for possession of child pornography, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Gonzales-Torres to serve 15 years of supervised release following his prison sentence. Gonzales-Torres pleaded guilty to the charge on February 25, 2020.
According to court records, between May and July 2019, a detective with the Idaho Internet Crimes Against Children (ICAC) Task Force downloaded several files of child pornography that were made available by Gonzales-Torres’ computer via a peer-to-peer network. Law enforcement obtained a search warrant for Gonzales-Torres’ Idaho Falls residence. ICAC Task Force members executed the search warrant and seized a desktop computer from Gonzales-Torres’ residence. A forensic examination of this device revealed approximately 1,251 images and 15 videos of child pornography. Gonzales-Torres admitted to detectives that he had downloaded and viewed child pornography through a peer-to-peer network and had stored child pornography on his computer.
Chief Judge Nye also ordered Gonzales-Torres to pay $6,000 in restitution to the victims in the images that he possessed. As a result of his conviction, Gonzales-Torres will be required to register as a sex offender.
This case was investigated by the Idaho Internet Crimes Against Children Task Force, with assistance from Homeland Security Investigations in Idaho Falls, Idaho Falls Police Department, Rexburg Police Department, and Bonneville County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
# # #
Guatemalan Man Illegally Entered U.S. 14 Times in 20 YearsRead the Press Release
RICHMOND, Va. – A Guatemalan man was sentenced today to 21 months in prison for illegal reentry of an immigrant after a felony conviction.
“Over the past 22 years, Diego Tino-Calvo has illegally entered the United States at least 14 times, and has been convicted of multiple drunk driving offenses,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This recidivist behavior reflects a blatant disregard for our nation’s laws and borders, and represents a clear threat to public safety. The Department of Justice is committed to prioritizing criminal immigration enforcement, and this case reflects that continuing commitment.”
According to court documents, Diego Tino-Calvo, 45, first illegally entered the United States more than 20 years ago in 1998. Since then, Tino-Calvo illegally reentered the country at least 14 times. He has twice been convicted of illegal reentry of an immigrant in two separate federal courts. First, here in the Eastern District in 2011, and then later, in the District of Arizona in 2017. While in the United States, Tino-Calvo was convicted of multiple other crimes including several instances of Driving While Intoxicated. Tino-Calvo most recently came to the attention of immigration officials after he was arrested in November 2019 for Driving While Intoxicated in Richmond.
“Tino-Calvo is an illegal alien who has proven that he’s a public safety threat to communities across the country, as he repeatedly got behind the wheel while intoxicated,” said Matthew Munroe, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations Washington, D.C. “ICE will reinstate his prior order of removal and return him to his home country upon completion of his prison sentence.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew Munroe, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Katherine Lee Martin prosecuted 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. 3:20-cr-1.
Greenfield Man Sentenced to 85 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Ira Weeks, 40, of Greenfield, was sentenced to 85 months in federal prison for participating in a conspiracy to distribute fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Weeks conspired with others to distribute and possess with the intent to distribute fentanyl. Weeks obtained the fentanyl from a source of supply in Methuen, Massachusetts. As part of the investigation, in December 2017 the Drug Enforcement Administration (“DEA”) intercepted phone communications between Weeks and his co-conspirator wife in which the couple ordered quantities of fentanyl from their Methuen drug source. DEA subsequently surveilled Weeks in Methuen meeting with the drug source on approximately four occasions. The DEA and the New Hampshire State Police arranged to conduct motor vehicle stops on Week’s vehicle after observing him meet with his drug source. These stops resulted in the seizure of over 175 grams of fentanyl.
Weeks previously pleaded guilty on May 27, 2020. His wife, Shelley Weeks, was also indicted in the conspiracy. She pleaded guilty on March 26, 2020 and is awaiting sentencing.
“Interstate fentanyl traffickers make a deadly drug available for sale in our state,” said U.S. Attorney Murray. “The results have been disastrous. The substantial prison sentence imposed in this case should serve as a warning to those would choose to involve themselves in this dangerous business.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “Illegal drug distribution ravages the very foundations of our families and communities so every time we take fentanyl off the streets, lives are saved. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
This matter was investigated by the DEA with assistance from the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
Agencies participating in this investigation are part of the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. 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 organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
###
Gilmer County man sentenced to 14 years for role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Waitman Larry Frederick, of Glenville, West Virginia, was sentenced today to 168 months of incarceration for his role in a drug distribution operation, U.S. Attorney Bill Powell announced.
Frederick, also known as “Cornbread,” age 43, pled guilty to one count of “Conspiracy to Distribute Methamphetamine,” one count of “Aiding and Abetting Possession with Intent to Distribute 50 Grams or More of Methamphetamine ,” one count of “Aiding and Abetting Maintaining Drug-Involved Premises ,” and one count of “Unlawful Possession of a Firearm” in November 2019.
Frederick admitted to working with others to distribute large quantities of crystal methamphetamine, also known as “ice,” from July 2018 to November 2018 in Gilmer County and elsewhere. Frederick also admitted to operating a residence located at 18 East Main Street, Apartment C in Glenville for the purpose of distributing the drug. He also was illegally in possession of 10 different firearms.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
Senior U.S. District Judge Irene M. Keeley presided.