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Thursday 27 August 2020
New Jersey Electronic Health Records Company to Pay $500,000 to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – An electronic health records company based in Passaic County, New Jersey, has agreed to pay $500,000 to resolve allegations that a former subsidiary caused users to file false claims with the government, U.S. Attorney Craig Carpenito announced today.
Konica Minolta Healthcare Americas Inc., based in Wayne, New Jersey, has agreed to pay $500,000 to resolve False Claims Act allegations that its former subsidiary, Viztek LLC, caused users to submit false claims by misrepresenting the capabilities of its electronic health records (EHR) software.
According to documents filed in this case and the contentions of the United States contained in the settlement agreement:
The American Recovery and Reinvestment Act of 2009 established the Medicare & Medicaid EHR Incentive Program to encourage hospitals and eligible professionals – health care providers – to adopt and demonstrate their meaningful use of EHR technology. The U.S. Department of Health and Human Services (HHS) made incentive payments available to eligible professionals and hospitals that adopted certified EHR technology and met certain requirements relating to their use of the technology. To obtain certification for their product, companies that developed and marketed EHR technology were required to, among other things, demonstrate that their products satisfied certain HHS-adopted criteria.
The United States contends that Viztek fraudulently obtained certification for its product, known as “EXA EHR,” when it misrepresented to its certifying entity that the product complied with all applicable requirements for certification. Viztek knowingly caused eligible providers who used EXA EHR to falsely attest to compliance with the HHS requirements, which caused false claims for incentive payments to be submitted to the Medicare Program.
The allegations were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s settlement.
The government is represented by Assistant U.S. Attorneys Marihug P. Cedeño, of the U.S. Attorney’s Office’s Opioid Abuse Prevention and Enforcement Unit, and Nicole F. Mastropieri, of the Health Care Fraud Unit, in Newark.
The case is captioned United States ex rel. Leighsa Wilson v. Viztek Inc. et al. The claims settled by this settlement are allegations only, and there has been no determination of liability.
NDTX Round-Up: August 20-27Read the Press Release
GUILTY PLEA – CHUPEE ERNEST JOE
On August 20, Chupee Ernest Joe, 37, pled guilty to two counts of aiding and assisting in the preparation and presentation of false and fraudulent individual income tax returns. Mr. Joe operated an income tax preparation business located in Irving, Texas. From 2013 to 2016, he assisted in the preparation of fraudulent individual tax returns. Mr. Joe routinely falsified or inflated deductions and credits including education credits and unreimbursed employee business expenses to create inflated refunds. Mr. Joe faces up to 6 years in federal prison for his crimes. This case was investigated by IRS – Criminal Investigations. Assistant U.S. Attorney Christopher Stokes is prosecuting this case.
GUILTY PLEA – ROGELIO ALVARADO
On August 20, Rogelio Alvarado, 35, pled guilty to conspiracy to distribute a controlled substance. Mr. Alvarado purchased crack cocaine and cocaine from other co-conspirators which were his source of supply. Mr. Alvarado used a cellular phone to negotiate, discuss, and facilitate his drug transactions. Mr. Alvarado faces up to 20 years in federal prison for his crimes. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Phelesa Guy is prosecuting this case.
GUILTY PLEA – RASHID WALKER
On August 25, Rashid Walker, 48, plead guilty to conspiracy to distribute and possess with the intent to distribute a controlled substance. Mr. Walker purchased methamphetamine from a supplier to distribute into the community. On five separate occasions, Mr. Walker supplied an undercover agent posing as a narcotics buyer with methamphetamine. Mr. Walker faces up to 20 years in federal prison for his crimes. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Walt Junker is prosecuting this case.
SENTENCING – CHRISTOPHER LATHAM
On August 27, Christopher Latham, 46, was sentenced to 71 months in federal prison for six counts of wire fraud. Mr. Latham devised a scheme to defraud and obtain money from two victims. He misrepresented the ownership and control over an oil and gas lease by telling the victims that the lease was lucrative. Mr. Latham made lies and material omissions to obtain approximately $70,000 from the victims which he used for his personal use, including to pay off debt, gamble, and make cash withdrawals. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Fabio Leonardi is prosecuting this case.
Multi-Defendant Indictment ReturnedRead the Press Release
FORT WAYNE – Multiple individuals were charged with drug and firearms offenses by way of a 19 count Indictment, announced U.S. Attorney Kirsch.
According to the Indictment, Frederick Morgan II, Frederick Morgan Sr., Monica Duvalon, Larry Lamb, Sarah Waltz, Eddie Knox, and James Russell Jr., were each indicted on conspiracy to distribute methamphetamine, cocaine and fentanyl. The indictment alleges that the conspiracy to distribute controlled substances occurred between May 6, 2019 and August 26, 2020.
“Today’s drug and gun charges allege that many highly addictive controlled substances were flooding the streets of Northern Indiana, which increases the propensity for violence, particularly when firearms are present,” said US Attorney Thomas L. Kirsch II. “I commend the ATF and DEA along with all the other law enforcement agencies involved in this case for their hard work. We will continue to focus on these type of cases to keep our communities safe.”
In addition to the conspiracy charges, Morgan II was also charged with 15 counts of distributing controlled substances and 1 count of maintaining a drug involved premises. Duvalon was charged with 2 additional counts of distributing controlled substances. Morgan Sr. was charged with 2 additional counts of distributing controlled substances. Lamb was charged with 2 additional counts of distributing controlled substances, 1 count of possession of a firearm in furtherance of a drug trafficking crime, and 2 counts of providing a firearm to a felon. Waltz and Russell Jr. were charged with 1 additional count of distributing a controlled substance. Knox was charged with 5 additional counts of distributing a controlled substance and 1 count of maintaining a drug involved premises.
“The individuals arrested today, allegedly peddled poison into our communities,” said DEA Assistant Special Agent in Charge Michael Gannon. “This group is allegedly responsible for distributing large quantities of methamphetamine, fentanyl and crack cocaine throughout Fort Wayne area. Anytime we can take dangerous addictive drugs and firearms off the streets it is a big win! DEA is committed to working with our state, local and federal partners and arresting drug traffickers to keep our communities safe. DEA appreciates the exceptional work in this multi-jurisdictional investigation by all involved.”
“Working closely with our state, local and federal partners, ATF will continue to investigate felons in possession of firearms and those responsible for distributing narcotics in the Fort Wayne community,” remarked Special Agent in Charge Kristen de Tineo of the Alcohol, Tobacco, Firearms and Explosives Chicago Field Division. “When partnering with law enforcement agencies and the United States Attorney’s Office, we focus our resources and these charges illustrate the effectiveness of those relationships.”
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case is a result of a joint investigation conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, with the assistance of the US Marshals Service and multiple local law enforcement agencies, including the Indiana State Police, Allen County Sheriff’s Department, Allen County Drug Task Force, Adams County Sheriff’s Office, Huntington Police Department, Auburn Police Department, and the Fort Wayne Police Department. This case is being prosecuted by Assistant United States Attorneys Stacey R. Speith and Brent A. Ecenbarger.
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More Charges Brought Against Executive Director of NEAD and Former Chairman of the RHA, and A Co-defendantRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a fifth superseding indictment charging George Moses, 50, and Janis White, 58, both of Rochester, NY, with additional charges. Moses is facing additional charges of conspiracy to commit mail and wire fraud, mail fraud, wire fraud, and money laundering. White is facing additional charges of money laundering. Moses faces up to 20 years in prison if convicted, White up to 10 years.
Assistant U.S. Attorneys Richard A. Resnick and Melissa M. Marangola, who are handling the case, stated that the new charges set forth in the fifth superseding indictment, allege that between February and August 2018, defendant Moses conspired with co-defendant Shirley Boone to defraud the Dormitory Authority of the State of New York (DASNY). In June 2016, Moses, as Executive Director of the North East Area Development Association (NEAD), applied for a $125,000 grant for renovation of the Freedom Market, owned by Freedom Community Enterprise Inc., a subsidiary of NEAD. In August 2017, the grant was approved. Between February and July 2018, Moses and Boone tricked DASNY into believing that NEAD paid Freedom Community $45,000 for construction work which never occurred. As a result, DASNY reimbursed NEAD $45,000 to which it was not entitled.
The fifth superseding indictment also alleges that defendant White, who was the Executive Secretary for the Rochester Housing Authority (RHA), and Board Secretary for the Rochester Housing Charities (RHC), started a company called HJJ Property Development Inc. (HJJ Property) in March 2018. HJJ Property, listed as a heating and air conditioning business, was technically owned by White’s mother and stepfather, but controlled by White herself. At times, White prepared a fraudulent invoice from HJJ Property addressed to the RHC which made it appear that HJJ Property had provided services to the RHC. White emailed the fraudulent invoice to defendant Moses. RHC then paid HJJ Property the amount contained on the fraudulent invoice.
On other occasions, contractors provided the RHC with an estimate for services to be performed for the RHC or NEAD. Estimates were emailed to Moses who would email them to White. In turn, White prepared a fraudulent invoice from HJJ Property addressed to the RHC, which made it falsely appear that HJJ Property would be providing the services to the RHC that were actually going to be performed by another contractor. The amount requested to be paid on the HJJ Property fraudulent invoice would be more than what the other contractor had originally requested for such services. Moses then approved the payment of the fraudulent invoice by the RHC. The additional charges against White involve her conducting monetary transactions with the proceeds of the fraud to conceal that the proceeds came from fraudulent activity.
The fifth superseding indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Mission Man and Woman Indicted for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man and woman have been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Renae Jo Pacheco, a/k/a Renae Jo Hopkins, age 51, and Thomas Pacheco, Sr., age 29, were indicted on August 11, 2020. They appeared before U.S. Magistrate Judge Mark A. Moreno on August 24, 2020, and pled not guilty to their Indictments.
The maximum penalty upon conviction is a mandatory minimum 10 years, up to life in prison and/or a $10,000,000 fine, at least 5 years, up to a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictments allege that beginning at a time unknown but no later than on or about January 1, 2015, and continuing to on or about January 1, 2020, Hopkins and Pacheco, did knowingly and intentionally, combine, conspire, confederate, and agree with persons known and unknown, to knowingly and intentionally distribute and possess with intent to distribute 500 grams or more of methamphetamine on the Rosebud Sioux Indian Reservation.
The charges are merely accusations and Hopkins and Pacheco are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Hopkins was remanded to the custody of the U.S. Marshals Service pending trial. Pacheco was released pending trial. Trial dates have not been set.
Minnesota Man Sentenced to Federal Prison for Possession of a Firearm as a Felon and Possession of Methamphetamine with the Intent to DeliverRead the Press Release
A Minnesota man who was caught with nearly 14 ounces of high purity methamphetamine and a loaded handgun was sentenced August 25, 2020 to more than 13 years in federal prison.
Marcus Jones, age 32, from St. Paul, Minnesota received the prison term after a guilty plea to one count of possession with intent to deliver 50 grams or more of methamphetamine and one count of possession of a firearm by a felon.
In a plea agreement, Jones admitted that on December 12, 2019, knowing he was a felon, possessed a Jennings .25 caliber pistol and 50 grams or more of methamphetamine with the intent to deliver the methamphetamine.
On December 6, 2019 police conducted a traffic stop in Mason City, IA. The driver of the vehicle, Marcus Jones, fled on foot. Jones was not apprehended at that time but later was arrested on December 12, 2019 after again attempting to flee from police. At the time of his arrest, Jones had eight individually wrapped packages of ice methamphetamine that he intended to distribute, and a loaded pistol hidden in his center console.
Jones was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Jones was sentenced to 162 months’ imprisonment for possession with the intent to deliver methamphetamine and 120 months’ for possession of a firearm as a felon, to be served concurrently. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Jones is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Cerro Gordo Sheriff’s Office, Mason City Police Department, Iowa Department of Narcotics Enforcement, and the North Central Iowa Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-3058.
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Methamphetamine User Driving with Stolen Firearm Receives Federal Prison SentenceRead the Press Release
A methamphetamine user found with two firearms in his vehicle was sentenced August 26, 2020, to a term in federal prison.
Lukas Rick, age 24, from Center Point, Iowa, received the prison term after a February 6, 2020 guilty plea to possession of firearms by a drug user.
At the guilty plea, Rick admitted he was driving a car and in possession of both a .30-06 caliber Ithaca rifle and a 12 gauge Remington shotgun. At the time he possessed these guns, he was an unlawful user of methamphetamine. Law enforcement stopped Rick’s car because it was missing a license plate. Law enforcement subsequently discovered that the rifle in Rick’s possession was stolen.
Rick was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rick was sentenced to six months’ imprisonment and fined $100. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Rick was released on the bond previously set and is to surrender to the United States Marshal; Bureau of Prisons at a later date.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and investigated by the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-0114.
Follow us on Twitter @USAO_NDIA.
Member of New Bedford Chapter of Latin Kings Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former probationary member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.
Emanuel Lopez-Velez, a/k/a “King Manny,” 22, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Dec. 10, 2020. Lopez-Velez was arrested and charged in December 2019, at which time he was a probationary member of the New Bedford Chapter of the Latin Kings.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
As detailed during the plea hearing, Lopez-Velez admitted that on Sept. 30, 2019, he was one of multiple members of the Latin Kings who travelled to Ruth Street and McGurk Street in New Bedford in order to confront and rob rival gang members, and was provided with a firearm to do so by another member of the gang. The Latin Kings members approached one of the rival gang members, surrounded him, pointed a firearm at the victim and demanded the victim’s phone. During the gunpoint robbery, the victim ran from the Latin Kings, and Lopez-Velez was ordered by another to “get him.” Lopez-Velez chased the rival gang member and fired one shot, hitting the victim in the back. The victim fell to the ground and was transported to the hospital, where he was treated and ultimately survived the incident.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Lopez-Velez is the ninth defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
McLaughlin Woman Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on August 24, 2020, by U.S. District Judge Charles B. Kornmann.
Melissa Rose Decoteau, a/k/a Melissa Rose Bobtail Bear, age 35, was sentenced to 46 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Decoteau was indicted by a federal grand jury on July 16, 2019. She pled guilty on August 24, 2020.
The conviction stemmed from a conspiracy in 2018, wherein Decoteau conspired with others to distribute more than 50 grams of methamphetamine on the Standing Rock Sioux Indian Reservation in South Dakota.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Mobridge Police Department, the Bureau of Indian Affairs, and the Corson County Sheriff’s Office. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Decoteau was immediately remanded to the custody of the U.S. Marshals Service.
Manufacturing Broker Pleads Guilty in Conspiracy to Manufacture and Sell Counterfeit GoodsRead the Press Release
PROVIDENCE – A Brooklyn, NY, businessman appeared before a U.S. District Court judge in Providence, R.I., on Tuesday and admitted that he brokered the manufacturing of counterfeit clothing, apparel and gear manufactured in China and Pakistan that was shipped to wholesalers in the United States for distribution. Some of the counterfeit items were distributed to members of the United States military.
Bernard Klein, 39, admitted that he conspired with New York wholesaler Ramin Kohanbash, 50, and at least one other person, to arrange the mass production of goods in China and Pakistan that carried counterfeit markings and labels identical to genuine trademarks registered with the U.S. Patent and Trademark Office.
According to court documents, Klein was sent samples of genuine clothing, apparel, and gear by Kohanbash to be reproduced. Prior to the approval of mass production of the counterfeit goods, Klein emailed photographs of the goods, as well as hangtags and labels, to Kohanbash for approval. After making any changes ordered by Kohanbash, Klein facilitated the manufacturing of goods that contained counterfeit markings identical to genuine marks registered with the U.S. Patent and Trademark Office.
According to information presented to the court, Klein and Kohanbash instructed the manufacturers on how to fold and package the counterfeit goods, and to affix removable “Made in China” stickers in order to avoid problems when shipments were inspected by U.S. Customs.
Among the counterfeit items produced in China and Pakistan and shipped to Kohanbash in the United States for distribution were counterfeit FREE® hoods, counterfeit Polartec® fleece shirts, and Gen III Level 7 parkas bearing counterfeit Primaloft® hangtags.
According to information presented to the court, in August 2018, 60 counterfeit Polartec® fleece shirts were shipped to a business in North Kingstown, RI, and in October 2018, counterfeit parkas and trousers were shipped to the Rhode Island National Guard in East Greenwich, RI. The parkas contained counterfeit Primaloft® hangtags and labels. Both shipments were the result of controlled purchases as part of the investigation.
Appearing Tuesday before U.S. District Court Judge William E. Smith, Klein pleaded guilty to conspiracy to commit mail fraud, announced United States Attorney Aaron L. Weisman; Leigh-Alistair Barzey, Special Agent-in-Charge of Defense Criminal Investigative Service, Northeast Field Office; Special Agent in Charge Joseph P. Dattoria, General Services Administration Office of Inspector General, New England Regional Investigations Office; Resident Agent in Charge Michael D. Conner, Boston Fraud Resident Agency, US Army Criminal Investigation Command; Jason T. Hein, Special Agent in Charge, Air Force Office of Special Investigations, Office of Procurement Fraud Detachment 6, Joint Base Andrews, MD; Homeland Security Investigations Newark, NJ, Special Agent in Charge Jason J. Molina; and Troy Miller, Director of Customs and Border Protection, New York Field Office.
On June 13, 2019, Ramin Kohanbash pleaded guilty to conspiracy to commit wire fraud and trafficking in counterfeit goods. At the time of his guilty plea, Kohanbash admitted that among the items he and others arranged to counterfeit were 200 military parkas of a type used by U.S. Air Force personnel stationed in Afghanistan. These parkas were falsely represented to be genuine Multicam®, a fabric which incorporates specialized near-infrared management technology designed to make the wearer more difficult to detect with equipment such as night-vision goggles.
Klein is scheduled to be sentenced on December 4, 2020. Kohanbash is scheduled to be sentenced on January 22, 2021.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert, Zachary A. Cunha, and Lee H. Vilker.
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Man from Pinehill, New Mexico sentenced to 10 years for assault and firearms charges in Indian CountryRead the Press Release
ALBUQUERQUE – Harrington Alonzo, 34, of Pinehill, N.M., was sentenced Monday in federal court to 10 years of custody. In January, Alonzo pled guilty to charges of assault with a dangerous weapon in Indian Country, using and carrying a firearm during and in relation to a crime of violence, and possessing and discharging said firearm in furtherance of such crime.
According to Alonzo’s plea agreement, he committed this crime in Cibola County on April 24, 2019. Alonzo unlawfully assaulted a Navajo Nation police officer by shooting at the officer with a semiautomatic handgun. The officer was responding to a domestic dispute between Alonzo and his girlfriend. Alonzo is an enrolled member of the Navajo Nation where this crime occurred.
The case was investigated by the Gallup office of the Federal Bureau of Investigation with assistance from the Ramah Navajo Police Department and the Navajo Nation Police Department. Assistant U.S. Attorney Novaline D. Wilson prosecuted the case.
Man Sentenced to Prison for Trafficking Cocaine and Fentanyl AnalogueRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to over 12 years in prison for possession with intent to distribute cocaine.
According to court documents, Demond Mitchell, 32, was selling cocaine and other controlled substances on Grayson Street, in the area of East Ladies Mile Road. After observing Mitchell make a number of hand-to-hand transactions, police officers approached one of the customers, who dropped a small user-quantity of cocaine to the ground. Another police officer went to the area where Mitchell had put down a small black bag that Mitchell was utilizing. In the bag, the officers found over 41 grams of cocaine, including some packaged in little bag corners for distribution. The officers also recovered 2.79 grams of a mixture containing fentanyl and acetyl fentanyl, a potent and potentially deadly fentanyl analogue.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Olivia L. Norman 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. 3:19-cr-161.
Madison Tax Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Yvonne Spencer, 64, Madison, Wisconsin, pleaded guilty and was sentenced yesterday by U.S. District Judge William M. Conley to one year and one day in federal prison, followed by one year of supervised release, for filing false tax returns. She was also ordered to pay restitution to the IRS, although the Court noted that full repayment by the defendant was unlikely.
An IRS investigation in 2018 revealed that Spencer had prepared and filed tax returns containing materially false information on behalf of taxpayers. A survey of 79 tax returns filed by Spencer between 2013 and 2017 revealed that the IRS had paid out $292,872 in fraudulent tax refunds as a result of the false information. Spencer directed $48,000 of the fraudulent refunds to herself, and also collected tax preparation fees from some taxpayers. Spencer was able to generate the fraudulent refunds primarily by claiming business and educational expenses on behalf of taxpayers who did not in fact own businesses or attend school. She admitted at her guilty plea that she knew information on the tax returns was false.
At sentencing, Judge Conley considered Spencer’s age, health, family ties, lack of a criminal history, and her statement that she now understood the wrongfulness of her actions. However, in determining a prison sentence was nevertheless warranted, the judge recognized that she had used her status and skills as a tax preparer to steal a lot of money from the government over a long period of time. Judge Conley noted that the defendant’s conduct showed a disregard for the system of collecting taxes, taxes which fund the public programs used to care for others. While the judge considered a two-year prison sentence, he ultimately settled on a sentence of one year and one day, in light of the fact that COVID-19-related restrictions in prison made serving a sentence more difficult.
The charge against the defendant was the result of an investigation conducted by IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Meredith P. Duchemin.
Lawrence Man Sentenced to 45 Years in Prison for Operating Major Fentanyl Trafficking OrganizationRead the Press Release
Concord – United States Attorney Scott W. Murray announced that Sergio Martinez, 30, of Lawrence, Massachusetts, was sentenced to 45 years in federal prison for leading a continuing criminal enterprise and participating in a money laundering conspiracy based upon his role in operating a Lawrence-based fentanyl trafficking organization. Additionally, Martinez was ordered to forfeit $2,000,000 in cash, as well as three houses in Lawrence.
Martinez pleaded guilty on the sixth day of a jury trial. During the trial, which began on October 1, 2019, the government presented evidence that Martinez operated a fentanyl trafficking operation that employed numerous individuals to sell fentanyl to customers from various New England states, including New Hampshire. Testimony at trial showed that customers knew the Martinez organization by the name “Brian” and that most of the organization’s customers came from New Hampshire. Distributors knew to identify customers on the streets of Lawrence by their New Hampshire license plates.
Testimony at trial showed that the organization served three distinct sets of customers. The first group of customers, who ordered the smallest amounts of drugs, was served by various telephones (“small phones”) that were located in a specific residence and answered by dispatchers. This residence was referred to as “the base” and dispatchers staffed “the base” from 9:00 a.m. to 11:00 p.m. daily. Dispatchers took orders and directed customers to meet various distributors throughout the Merrimack Valley area, mostly in Lawrence or Haverhill, Massachusetts, but sometimes in Salem, New Hampshire. These phones usually received hundreds of calls daily from customers placing fentanyl orders. Street-level distributors were provided with 200-gram bags of fentanyl, which they sold for $30 per gram, generating $6,000 per bag of fentanyl sold. Distributors testified at trial that they sometimes had lines of 10 to 15 customers, most with New Hampshire license plates, waiting for them on the street.
A second set of customers was serviced by the so-called “big phone.” The big phone was reserved for customers who typically purchased from ten grams to 200 grams of fentanyl at a time, quantities which the purchasers would then distribute themselves. The defendant and his brother Raulin Martinez answered this telephone, took orders, and sent these customers to meet a different set of distributors. They promised these customers better and faster service than they received if they called the small phones. These phones received between approximately 50 and 100 calls daily.
A third, much smaller set of customers, who ordered particularly large quantities of fentanyl (usually one kilogram or more at a time) called the defendant directly to place orders. The organization would deliver directly to these individuals by sending a distributor, often in a taxi, to deliver to these customers at or near their residences.
Trial testimony showed that Martinez managed numerous individuals including between five and ten runners working each day, people who staffed “the base” answering telephones, and people who mixed and packaged the drugs in milling operations he operated at different locations in Lawrence. The jury was provided with evidence showing that investigators seized over 12 kilograms of fentanyl from the Martinez organization during the investigation. During one telephone call intercepted over a court-authorized wiretap and played at trial, Martinez spoke to a man who identified himself as a fentanyl supplier located in Sinaloa, Mexico. Martinez told him, “what I look for is quality for when I prepare it and give it to people. Because I’m one of those people that’s moving a lot here. I move between 15, to 30, to 35 kilos a month.” In other intercepted telephone calls played at trial, Martinez acknowledged the dangerous nature of the drug he distributed, noting that “what we give out is poison.”
Evidence at trial showed that Martinez received substantial income from his business and that he sent some of this money to the Dominican Republic. Drug runners testified that they provided the defendant with between $30,000 and $35,000 per day based on aggregate drug sales. On one occasion, the defendant was stopped by the police while transporting $400,494 in cash that he intended to send to the Dominican Republic. This money was seized by the Drug Enforcement Administration. The plea agreement includes a forfeiture of $2,000,000 including funds in two bank accounts in the Dominican Republic in Martinez’s name.
Twenty four individuals have pleaded guilty and been sentenced in this conspiracy. Five additional individuals are awaiting sentencing. Three defendants remain fugitives. One defendant is awaiting trial.
In addition to these defendants, 13 New Hampshire-based individuals who obtained fentanyl from this organization have been charged with drug trafficking offenses. Twelve of those individuals have pleaded guilty and one is still awaiting trial.
“International fentanyl trafficking organizations have targeted New Hampshire as a profitable market for the sale of their deadly product,” said U.S. Attorney Murray. “The result has been disastrous for our citizens. Mr. Martinez ran a criminal enterprise that exploited the substance abuse proclivities of Granite Staters in order to obtain huge profits. In doing so, he enriched himself and funneled portions of the profits to parties outside of the United States. This 45-year sentence should send a strong message to fentanyl traffickers that those who choose to do business in New Hampshire will be held accountable for their conduct. I am grateful to the DEA and all of our federal, state, and local law enforcement partners whose hard work resulted in the successful prosecution of this high-level drug trafficker.”
“The State of New Hampshire is faced with a fentanyl crisis unlike ever before,” said DEA Special Agent in Charge Brian D. Boyle. “Those responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire need to be held accountable for their actions. Today’s significant sentence not only holds Mr. Martinez accountable for his crimes but serves as a warning to those traffickers who are coming from out of state to distribute this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
“Today’s sentencing sends a strong message: The Diplomatic Security Service is committed to making sure that those who are responsible for trafficking in deadly drugs face consequences for their criminal actions,” said Brian Papanu, Assistant Special Agent in Charge of the Boston Field Office of the U.S. Department of State's Diplomatic Security Service. “Diplomatic Security’s strong relationship with the U.S. Attorney’s Office and the Organized Crime Drug Enforcement Task Force continues to be essential in the pursuit of justice.”
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.
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Seth R. Aframe.
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Last remaining member of drug trafficking organization sentenced to federal prisonRead the Press Release
BRUNSWICK, GA – The final remaining defendant among two dozen people indicted for operating a drug distribution ring in south Georgia and northern Florida has been sentenced to federal prison.
Jose Salguero, 32, of Brunswick, Ga., was sentenced by U.S. District Court Judge Lisa Godbey Wood to 121 months in federal prison after pleading guilty to Possession with Intent to Distribute and to Distribute Cocaine, Methamphetamine, MDMA, and Marijuana, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Salguero will be required to serve three years of supervised release. There is no parole in the federal system.
“Along with his now-convicted and sentenced co-defendants, Jose Salguero was responsible for distributing significant amounts of recreational poison throughout a large area of south Georgia and beyond,” said U.S. Attorney Christine. “We are committed to coordinating with our law enforcement and prosecutorial partners to make our neighborhoods safer by eradicating these criminal drug dealers.”
According to court documents and in information shared in court proceedings, the federal, state and local investigation into violent gang and drug trafficking activities in the greater Glynn County area determined that Robert Johnson, 54, of Jacksonville, Fla., supplied Salguero and other members of the conspiracy with illegal narcotics that they in turn distributed throughout the area. Johnson, who has a prior federal conviction in federal court for drug trafficking, is serving a 78-month sentence in federal prison.
All of the defendants in the conspiracy have now been sentenced in U.S. District Court. Together they have more than 60 previous felony convictions in state court.
“Salguero is the last of more than 20 defendants, part of a major drug trafficking organization, to be sentenced for inflicting a scourge of drugs and crime in our communities,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI’s Safe Streets Gang Task Forces, comprised of federal, state and local law enforcement officers, remain committed to dismantling these types of criminal organizations.”
The case was investigated by the FBI and the Coastal Georgia Violent Gang Task Force, along with the Glynn County Police Department and the Brunswick Police Department, and was prosecuted for the United States by Assistant U.S. Attorney Jennifer Kirkland.
Kansas Man Sentenced for Dealing Meth with a GunRead the Press Release
United States Attorney Joe Kelly announced that Cody Rhyne, 32, of Hiawatha, Kansas, was sentenced August 26, 2020 by United States District Judge Brian C. Buescher for possession of methamphetamine with intent to distribute and use of a firearm in furtherance of drug trafficking. He received a sentence of 144 months with a three-year term of supervised release to follow. There is no parole in the federal system.
On or about December 4, 2019, Rhyne drove to the parking lot of a Shopko in Falls City, Nebraska, where he sold an informant half an ounce of methamphetamine. Officers followed Rhyne’s vehicle and activated the emergency lights and siren but Rhyne did not stop. Officers pursued Rhyne’s vehicle at speeds reaching 105 MPH. During the pursuit, Rhyne ran three stop signs, one traffic control device, turned in front of a semi, and was almost hit at the intersection of HWY#8 and HWY#75. After Rhyne’s Cadillac ran out of gas south of Humboldt, Nebraska, Rhyne fled on foot. He was taken into custody shortly thereafter.
In Rhyne’s vehicle officers found a Taurus 9 mm handgun, a loaded handgun magazine containing 9 mm hollow point rounds, digital scales, and six plastic bags containing a total of 299.734 grams of lab-confirmed methamphetamine mixture.
In a post-Miranda interview, Rhyne admitted that he sold ten grams of meth and a .22 caliber rifle to the informant and that he planned to sell more methamphetamine.
This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms as part of Project Safe Neighborhoods, which is a national initiative of the Department of Justice that was announced in 2001 to reduce and prevent violent crime and make the nation’s neighborhoods safer.
Joplin Man Sentenced to Life in Prison for the Sexual Exploitation of a 4-Year-Old ChildRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Missouri, man has been sentenced in federal court for the sexual exploitation of a 4-year-old child victim.
Anthony Leon Helsel, 32, was sentenced by U.S. District Judge M. Douglas Harpool on Tuesday, Aug. 25, to life in federal prison without parole.
On Sept. 24, 2019, Helsel pleaded guilty to one count of the sexual exploitation of a minor and one count of the sex trafficking of a minor.
The investigation began in September 2018 when law enforcement received two CyberTips that Helsel was offering a 4-year-old child for sex through the KIK application, and that Helsel had uploaded suspected child pornography to his Facebook account. In October 2018, Kentucky law enforcement provided information that Helsel also offered images of child pornography to an undercover law enforcement officer in Kentucky, as well as to other members of a KIK group.
Officers executed a search warrant at Helsel’s residence on Oct. 2, 2018. Helsel admitted that he had taken pornographic photos of the child victim, that he had been sending child pornography to others and receiving child pornography from them, and that he had talked to others about them having sex with the child victim. Helsel also admitted that he had shared videos of him sexually assaulting the child victim to multiple users on KIK.
According to court documents, Helsel created hundreds of images and videos of the child victim’s sexual abuse. He repeatedly sent images and videos of him sexually assaulting her to many other KIK users over the internet. Investigators also found images of child pornography produced by Helsel with a one-year-old infant.
At the time officers arrived at Helsel’s residence to execute the search warrant, he was conversing with another user on KIK, Gary McKinney of Joplin.
McKinney was sentenced on Feb. 26, 2020, to 15 years in federal prison without parole. McKinney, who pleaded guilty to receiving and distributing child pornography, was an officer with the Joplin Police Department for about seven years until May 20, 2006. He also worked for a short time as a police officer in Webb City, Missouri, and Duquesne, Missouri. He owned and operated Gary McKinney Plumbing Services at the time of his arrest.
According to court documents, the child victim reported that both Helsel and another individual sexually assaulted her.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the Joplin, Mo., Police 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."Jacksonville Pair Charged with Aggravated Identity Theft and FraudRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Charles Cornelius Smith (35, Jacksonville) and Zipporan Carmel Peters (31, Jacksonville) with two counts of aggravated identity theft, one count of conspiracy to commit bank fraud, and one count of false representation of a Social Security number. If convicted, each faces a maximum penalty of 30 years in federal prison for the conspiracy to commit bank fraud, up to 5 years’ imprisonment on the false representation of a Social Security number, and a 2-year mandatory minimum term of imprisonment on each aggravated identity theft count. Smith and Peters made their initial appearance in federal court today, and were detained until their arraignment hearing on September 1, 2020.
According to the indictment, Smith obtained the personal identification information of a victim, including the name, date of birth, and Social Security number. Using this information, Smith provided Peters with a counterfeit South Carolina driver license using the identity information of the victim, but with Peters’s photo on it. Smith then drove Peters to different branches of the Navy Federal Credit Union where Peters subsequently made various fraudulent transactions, using the victim’s identity.
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 case was investigated by United States Secret Service - Jacksonville Field Office, the Clay County Sheriff’s Office, the Orange Park Police Department, with assistance from the Jacksonville Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Hartford Man Sentenced to 9 Years in Federal Prison for Role in Heroin and Fentanyl Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FERNANDO TOLENTINO, Jr., also known as “Humacao,” 50, of Hartford was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 108 months of imprisonment, followed by four years of supervised release, for trafficking heroin and fentanyl.
According to court documents and statements made in court, in October 2016, the Drug Enforcement Administration’s Hartford Task Force began an investigation of an organization that was trafficking large quantities of heroin, fentanyl and other narcotics in Connecticut and western Massachusetts. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that members of the organization were receiving bulk quantities of heroin and fentanyl from out-of-state suppliers. They then stored, processed and packaged the heroin/fentanyl in multiple locations, including apartments located at 280 Collins Street in Hartford, and then distributed the drug in the Hartford area, and also the Springfield and Holyoke, Massachusetts area. A significant amount of drug trafficking activity occurred at the Neighborhood Supermarket, located at 316 Farmington Avenue in Hartford.
The investigation also revealed that the drug trafficking organization was using xylazine, a horse tranquilizer, as an additive to the heroin and fentanyl it distributed.
Fourteen individuals were charged with various narcotics, firearms and immigration offenses as a result of this investigation. During the investigation, law enforcement seized approximately 10 kilograms of heroin and fentanyl, much of which was packaged for resale in hundreds of thousands of bags. Seven firearms were also seized.
Tolentino lived in an apartment at 280 Collins Street, and he operated a drug and firearm stash location there used by the organization. He also regularly distributed heroin/fentanyl to customers and street-level distributors, and served as a “look out” for the organization.
Tolentino was arrested on June 29, 2017. On May 11, 2018, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
Tolentino, who was released on bond, was remanded to the custody of the U.S. Marshals Services at the conclusion of today’s sentencing.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the Federal Bureau of Investigation, U.S. Postal Inspection Service, U.S. Marshals Service and Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Gulfport Man Pleads Guilty to Possession of a Firearm by an Unlawful Drug UserRead the Press Release
Gulfport, Miss. – Johnathan Quarles, 25, of Gulfport, pled guilty today before U.S. District U.S. District Judge Sul Ozerden to one count of possession of a firearm by an unlawful user, announced U.S. Attorney Mike Hurst and Michelle Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On December 26, 2019, Biloxi Police officers executed a search warrant on a Biloxi residence. Just outside the residence, they observed Johnathan Quarles, who was seated in his vehicle. Quarles saw officers and threw a bag of marijuana out of the car window. When the officers spoke with Quarles, they observed an unsheathed .9mm in his pocket. Quarles is an active user of narcotics and therefore not permitted to be in possession of a firearm. He told officers that he smokes 3-4 ounces of weed a day and that he has smoked regularly since he was 13 years old.
Quarles will be sentenced by Judge Ozerden on November 30, 2020 at 9:30 a.m. and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Erica Rose.
Ghanaian National Is Sentenced to Prison for His Role in Financial Scams Targeting Older VictimsRead the Press Release
CHARLOTTE, N.C. – Suleman Alhassan, 38, a Ghanaian national residing in Charlotte, was sentenced today by U.S. District Judge Max O. Cogburn Jr. to 51 months in prison and one year of supervised release for his involvement in financial scams targeting older adults, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Cogburn ordered Alhassan to pay $1,127,989 as restitution, and to be deported upon completion of his prison term.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, join U.S. Attorney Murray in making today’s announcement.
“Alhassan preyed upon older victims by exploiting their vulnerabilities, including their human need for a personal connection and a loving relationship. Some of the victims were exploited repeatedly, until their well ran dry and they had no more money to give,” said U.S. Attorney Murray. “Investigating and prosecuting the full range of criminal activities that exploit America’s seniors is a priority for my office. It’s equally important that all of us look out for our elderly family and friends who may be targeted by scammers, as a watchful eye can make all the difference in keeping our loved ones safe, and preventing their financial and emotional devastation.”
“The U.S. Postal Inspection Service takes great pride in protecting the American public, especially our vulnerable older Americans. Those seeking to defraud and take advantage of our postal customers should know they will not go undetected and will be held accountable,” said Inspector-in-Charge Coke.
“This case makes clear that transnational scammers who believe they can avoid accountability for their crimes are mistaken,” said Special Agent in Charge Martinez. “HSI is committed to using its unique, cross-border investigative authorities to hold persons accountable who defraud senior citizens and other vulnerable persons. We’re appreciative of our partnership with the U.S. Attorney’s Office to successfully prosecute this case, and will continue to work with our federal, state and local partners to identify and stop financial crimes targeting vulnerable populations.”
According to filed documents and today’s sentencing hearing, beginning in or about March 2016, Alhassan conspired with other individuals in the United States and in Ghana to execute romance and precious metals scams that defrauded more than 20 older victims of over $1 million. According to court records, Alhassan and his co-conspirators operated the romance scheme by creating fake profiles and using fake identities on internet dating websites and other methods to target potential fraud victims, who were frequently elderly, with false promises of a romantic relationship.
According to court records, as part of the scheme, and in addition to developing fake romantic relationships with the victims, Alhassan and others falsely claimed to own large quantities of gold located in Ghana. The victims were induced to send money to Alhassan and others, purportedly to pay for expenses to ship the gold from Ghana to the United States and other countries, where it could be sold. As Alhassan previously admitted in court documents, he and his co-conspirators falsely told the victims that they would receive a share of the profits when the gold was brought and sold in the United States.
According to court records, Alhassan and his co-conspirators further induced victims to send funds under the guise of securing travel documents for the person with whom the victims believed to be in a romantic relationship. To convince victims to continue to send money, Alhassan and his co-conspirators invented fictitious obstacles, including problems with travel visas and customs related issues. The co-conspirators continued to call, text, and e-mail the victims and insist that more money was needed. Alhassan and his co-conspirators employed these tactics until the victims either ran out of money or discovered the fraudulent nature of the scheme.
Court records show that, in August 2017, Alhassan was stopped at the Charlotte airport with more than $130,000 in proceeds derived from the fraud. Alhassan continued to be involved in the scams even after law enforcement seized the funds, until he was arrested and charged federally for his role in the fraudulent scheme.
Alhassan is currently detained and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Murray commended the USPIS and HSI for their investigation of this case.
Assistant United States Attorney Jenny G. Sugar, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative
Georgia Man Indicted for Scheme to Steal Millions from the San Felipe Del Rio Consolidated School DistrictRead the Press Release
Donald Ray Lockard, age 66 of Douglasville, GA, made his initial appearance in federal court today in Del Rio on charges in connection with the alleged scheme to steal over $2 million from the San Felipe Del Rio Consolidated School District (SFDRCISD), announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Field Office.
A federal grand jury indictment charges Lockard with one count of conspiracy to commit wire fraud and three substantive counts of wire fraud. The indictment alleges that while doing business as DL Investments from August 2019 to February 2020, Lockard stole SFDRCISD funds and used them for his own personal benefit. According to the indictment, co-conspirators sent fraudulent emails to the comptroller of SFDRCISD claiming to be representatives of the financial institution to which SFDRCCISD made bi-annual bond payments. Those fraudulent emails resulted in the diversion of SFDRCISD bond payments to a different financial account established and controlled by Lockard. The indictment specifically identifies three separate fraudulent wire transfers to Lockard’s account on February 12, 2020, totaling $2,013,762.50. The indictment also includes a notice of criminal forfeiture in which the government is seeking to forfeit over $1.5 million seized from Lockard’s bank accounts. Lockard filed for Chapter 7 bankruptcy on May 10, 2016.
Each count upon conviction calls for up to 20 years in federal prison. Lockard remains on bond. No further court dates have been scheduled.
The FBI is conducting this ongoing investigation. Assistant U.S. Attorney Joshua Banister is prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Frederick Man Faces Federal Charges of Fraud Related to COVID-19Read the Press Release
Baltimore, Maryland – The United States Attorney’s Office for the District of Maryland has charged Marek Majtan, age 35, of Frederick, Maryland with committing a scheme to defraud to sell unregistered and misbranded pesticides. Majtan has been charged via criminal complaint with the following federal charges: mail fraud, in violation of 18 U.S.C. § 1341; and the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), in violation of 7 U.S.C. § 136j(a)(1)(A), 136j(a)(1)(E), and 136l(b)(1)(B). An initial appearance is set for September 11, 2020 at 2:15 p.m.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer Lynn of the Environmental Protection Agency-Criminal Investigation Division; and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.
“It is particularly egregious to seize on the ongoing pandemic to take advantage of the public,” said U.S. Attorney Robert K. Hur. “My office will continue to investigate and prosecute those who commit COVID-19 related frauds, especially those who endanger the public through their actions.”
“This case shows that consumers need to be cautious of products that make unsubstantiated claims of controlling viruses,” said Environmental Protection Agency (EPA) Special Agent in Charge Jennifer Lynn of EPA’s Criminal Investigation Division in Maryland. “EPA and our law enforcement partners continue to work to stop the sale of these illegal products. Consumers can help protect themselves by visiting epa.gov/coronavirus for a list of approved products.”
“Protecting American consumers from fraudsters taking advantage of a public health emergency is a top priority for the U.S. Postal Inspection Service. We continue to work with the U.S. Attorney’s Office and our partners at the Environmental Protection Agency- Criminal Investigations Division as part of the COVID-19 Anti-Fraud Task Force to bring those seeking to exploit people during this pandemic to justice, said Inspector in Charge Peter R. Rendina of the Washington Division of the U.S. Postal Inspection Service.”
According to the federal criminal complaint, Majtan is alleged to have committed multiple violations of the Federal Insecticide, Fungicide, Rodenticide Act (“FIFRA”) by fraudulently selling unregistered and misbranded pesticides. On April 8, 2020, in the midst of the COVID-19 pandemic, Majtan filed a trade name application with the Maryland State Department of Assessment and Taxation for “Capitol Cleaning Solutions” (CCS). It is further alleged that he purchased pesticides of unknown origin from a person he met on Facebook Marketplace and whose last name he did not know. He then repackaged the pesticides at his home, and created his own handmade label and application directions, using EPA registration information from a discontinued product. He then advertised on the internet that the product was “Compliant and Approved” by EPA and the CDC. He falsely claimed that the product “Kills 99.9% Bacterias & Viruses” and “Kills Covid 19 & Seasonal Flu,” in an effort to entice people to buy it.
Since May 19, 2020, it is alleged that Majtan sold disinfectant products on eBay without authorization from the EPA. In addition to selling CCS products on eBay, CCS appeared to market and sell products on a website, http://ccs-box.com, created by Majtan. He fraudulently claimed that the products were EPA-registered pesticides under FIFRA, that the products were registered with the Centers for Disease Control (CDC), and that these products were on FIFRA’s List N: Disinfectants for Use Against SARS-CoV-2. Neither CCS nor Majtan has obtained a company number from EPA as required prior to registering a pesticide. Neither CCS nor Majtan submitted an application for registering a pesticide to the EPA. CCS does not produce any pesticides registered by the EPA pursuant to FIFRA. The CCS website stated that 1,231 CCS product bottles had been sold, and the company has served 323 customers. Majtan admitted to Agents that he falsified those figures to entice buyers.
On May 20, 2020 EPA-CID and USPIS conducted an undercover purchase of two pesticides sold by CCS on eBay, that were delivered to FedEx. Based on the undercover purchase, federal law enforcement agents executed a search warrant at this particular FedEx and seized five additional packages sent by CCS with the undercover purchase intended for customers in Florida, Georgia, Massachusetts, and Illinois.
FIFRA requires that pesticides must display on labels the following information clearly and prominently: name, brand, and trademark under which the product is sold; name and address of the producer or registrant; product registration number and producing establishment's number. Additionally, pesticides must display labels containing a warning or caution statement necessary that, if complied with, is adequate to protect human health and the environment. Majtan failed to include any such labels or to display any such required information.
If convicted, Majtan faces a maximum sentence of 20 years in federal prison and a $250,000 fine for mail fraud, and up to 1 year in federal prison and a $25,000 fine for a violation of FIFRA. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the EPA-CID and the U.S. Postal Inspection Service, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sean R. Delaney and Lindsay Kaplan, who are prosecuting the case.
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Four Webster Groves Men Arrested for Conspiracy to Distribute Cocaine Base (Crack) and Related ChargesRead the Press Release
St. Louis, MO – During the afternoon of August 25, 2020, four Webster Groves men were arrested for a twenty-five count federal indictment for conspiracy to distribute cocaine base (crack) and related charges. Law enforcement officers arrested the following men, all of whom are from Webster Groves, Missouri:
Marcus Antonio Beasley, 33;
Kevin Melinek Ingram, Jr., 27;
Jason Marquis Ingram, 35; and
Steven Paul Wright, 39.
The defendants were presented in federal court yesterday for their initial appearances.
The indictment charges, among other things, that between October 2016 and July 2020, the defendants conspired to distribute and possess with the intent to distribute cocaine base (crack cocaine) and that they distributed cocaine base (crack cocaine).
The charges against Marcus Antonio Beasley and Kevin Menilek Ingram, Jr., are punishable by imprisonment of not less than five years and up forty years and a fine up to $5,000,000. The charges against Jason Marquis Ingram and Steven Paul Wright are punishable by up to twenty years imprisonment and a fine of up to $1,000,000.
This investigation was conducted by the Webster Groves Police Department, the St. Louis County Multi-Jurisdictional Drug Task Force, and the FBI.
The indictment is merely an accusation and the defendants are presumed innocent until proven guilty in a court of law.
Four Southwest Mississippi Men Charged with Federal Wildlife CrimesRead the Press Release
Jackson, Miss. – Kenneth R. Britt, Jr., 51, of Wesson, Tony Grant Smith, 26, of Wesson, Barney Leon Bairfield, III, 28, of Brookhaven, and Dustin Corey Treadway, 27, of Brookhaven, have been charged in a criminal indictment by a federal grand jury with killing in excess of the legal limit of Kansas and Nebraska wild turkeys while unlicensed in those states, and transporting the wild turkeys across state lines to Mississippi, announced U.S. Attorney Mike Hurst and Colonel Steve Adcock of the Mississippi Department of Wildlife, Fisheries, and Parks (MDWFP)
According to the indictment, in the spring of 2017 and 2018, the defendants traveled to Kansas and Nebraska and hunted wild turkeys, taking over 25 wild turkeys without the required hunting licenses and in excess of the limit of two per person per season, in violation of Kansas law. They returned to Mississippi with trophy spurs and beards of the illegally-killed turkeys. Under the federal Lacey Act, it is unlawful for any person to transport across state lines any wildlife taken in violation of state law.
The indictment also charges Kenneth R. Britt, Jr. with the federal felony of lying to a federal law enforcement officer, and Tony Grant Smith with killing red-shouldered hawks in violation of the Migratory Bird Treaty Act.
The defendants appeared for arraignment today before U.S. Magistrate Judge F. Keith Ball in Jackson. The case has been set for trial before Senior United States District Judge David C. Bramlette III on November 2, 2020.
If found guilty of all charges, Britt faces a total of 7 years in prison and a $450,000 fine; Smith faces a total of 2 years and 6 months in prison and a $215,000 fine; Bairfield faces a total of 3 years in prison and a $300,000 fine; and Treadway faces 1 year in prison and a $100,000 fine.
“The fine sportsmen and women of this state can rest assured that, nationwide, conservation enforcement agencies, along with Agents of the U.S. Fish and Wildlife Service, will continue working together to stop the thievery and abuse of our valuable natural resources,” said MDWFP Colonel Steve Adcock.
This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement and the Mississippi Department of Wildlife, Fisheries and Parks. It is being prosecuted by First Assistant United States Attorney Darren J. LaMarca.
The public is reminded that the indictment is merely an allegation of wrongdoing and the defendants are presumed innocent until proven guilty in a court of law.
Founder and CEO of Fresno Substance Abuse Treatment Center Pleads Guilty to Defrauding Health Insurance CarriersRead the Press Release
FRESNO, Calif. — Orlando Gillam, 46, of Fresno, pleaded guilty Thursday to mail fraud in connection with false claims he submitted to public and private health insurers, U.S. Attorney McGregor W. Scott announced.
According to court documents, Gillam is the founder and CEO of Dunamis Inc. Group Home, a nonprofit that provided services that included alcohol and drug treatment and counseling. Between January 2016 and January 2018, Gillam falsely billed insurers hundreds of thousands of dollars for alcohol and drug treatment and counseling, mental health treatment, and group and individual psychotherapy purportedly rendered to multiple individuals. Those individuals did not receive the services billed, and several of them were not Dunamis clients at all.
This case is the product of an investigation by the Federal Bureau of Investigation, the Office of Personnel Management Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Vincente A. Tennerelli is prosecuting the case.
Gillam is scheduled to be sentenced on Nov. 20. He faces a maximum statutory penalty of 20 years in prison and a $$250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former International UAW President Charged with Conspiring to Embezzle Union FundsRead the Press Release
Dennis Williams, the former President of the international United Auto Workers union, was charged today in a Criminal Information with conspiring with other UAW officials to embezzle UAW funds announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Dennis Williams, 67, of Corona, California, is charged with conspiring with former UAW President Gary Jones and others to embezzle UAW dues money between 2010 and September 2019.
Between June 2014 and June 2018, Williams served as the President of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”). The UAW represents over 400,000 active members and over 580,000 retired members in more than 600 local unions across the United States. Prior to serving as UAW President, Williams was the Secretary-Treasurer of the UAW from June 2010 through June 2014.
The Criminal Information charges that Williams conspired with at least six other senior UAW officials in a multi-year conspiracy to embezzle money from the UAW for the personal benefit of Williams and other senior UAW officials. UAW officials concealed hundreds of thousands of dollars in personal expenditures in the cost of UAW conferences held in Palm Springs, California, Coronado, California, and Missouri. Between 2010 and 2018, former UAW President and co-defendant Gary Jones and other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with UAW leadership and training conferences. In truth, however, Williams and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators.
The Information charges that Williams and other senior UAW officials used UAW money to pay for personal expenses, including multi-month long stays at private villas in Palm Springs, cigars, golfing apparel, green fees at golf courses, and high-end liquor and meals. During the course of the conspiracy, while Williams was UAW President, co-conspirators Gary Jones, Vance Pearson, and others provided themselves and Williams with thousands of dollars in such personal items.
Based on the charge of conspiring to embezzle union funds, Williams faces a maximum of five years in prison and a fine of up to $250,000.
A Criminal Information is only a charge and is not evidence of guilt.
Williams is the fifteenth defendant to be charged in connection with the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by FCA executives. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), and former senior UAW official Michael Grimes (28 moths). In addition, the following UAW officials have pleaded guilty and are awaiting sentencing: former UAW President Gary Jones, former UAW Vice President Joseph Ashton, former senior UAW official Jeffrey “Paycheck” Pietrzyk, former UAW Region 5 Director UAW Board member Vance Pearson, and former UAW Midwest CAP President Edward “Nick” Robinson.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“The charges today are further steps forward in our relentless effort to ensure that the over 400,000 men and women of the UAW have honest and ethical leadership,” said United States Attorney Matthew Schneider. “The UAW’s members deserve leaders dedicated to serving the members and their families, not serving themselves.”
“An important mission of the Office of Inspector General is to investigate allegations relating to labor racketeering. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.”
"As an officer and president of the UAW, Dennis Williams' union members trusted him to advocate for them. Instead, he trampled on that trust and used his position and influence to advocate for his own personal benefit," said Special Agent in Charge D'Antuono."Today, Williams begins to face the consequences of his choice to break that trust and fiduciary responsibility."
“Today’s charges underscores our commitment to work in a collaborative effort with our law enforcement partners to rid the UAW of corrupt officials,” said Special Agent in Charge, Sarah Kull, of the Internal Revenue Service – Criminal Investigation, Detroit Field Office.
“Today’s information alleges a continuation of the outrageous abuse of power by former UAW top officers. Former UAW International President Dennis Williams misused his position of trust to enrich himself and other officers within the UAW at the expense of the UAW’s hardworking members,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “This information leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of union members.”
The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.
Former Bank Vice President Sentenced in Federal Court after Conspiring to Lie to His EmployerRead the Press Release
A former vice president of a bank who conspired to lie to the bank for years was sentenced today to three years of probation.
Dan Raduns, age 66, from Dubuque, Iowa, received the prison term after a July 1, 2019 guilty plea to one count of conspiracy to make a false statement to a financial institution.
Evidence and information disclosed during court hearings showed that between 2007 and 2009, Raduns worked as a vice president at a bank in Dubuque. During that time, he conspired with another person to lie to the bank about how money the bank was loaning to the other person was being used. Specifically, they lied about using the money to complete a particular construction project when, instead, it was being used elsewhere. Ultimately, the bank lost over $320,000 in loans made on the construction project.
Raduns was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Raudns was sentenced to three years’ probation. He was ordered to make $324,032.27 in restitution the victim bank.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 19-CR-1024.
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Former Baltimore Police Officer Pleads Guilty to Lying to Federal Law Enforcement Officer Regarding the Illegal Sale of Drugs Seized During A BPD InvestigationRead the Press Release
Baltimore, Maryland –Former Baltimore Police Officer Victor Rivera, age 48, of Nottingham, Maryland, pleaded guilty yesterday to making false statements to a federal law enforcement officer in connection with a scheme to sell three kilograms of cocaine seized during a Baltimore Police Department investigation.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
Victor Rivera joined the Baltimore Police Department (BPD) on July 11, 1994 and November 21, 1999, respectively. In February 2009, Rivera served on a squad with I.L., W.J., C.J., P.G., and K.G., that was supervised by W.K.
According to his plea agreement, prior to February 19, 2009, W.J. and C.J. told Rivera they had received information from a confidential informant about a large-scale narcotics trafficker operating out of a residence on the 1400 block of Ellamont Street, in Baltimore, Maryland. On February 19, 2009, Rivera, I.L., and other members of the squad were conducting surveillance at the residence of the alleged narcotics trafficker, an individual whose initials are T.M. Rivera and another member of his squad, W.K., followed a car from that residence to a nearby school where Rivera saw the driver throw something into a trash container. Once the driver left, Rivera and W.K. recovered the trash and found it to be empty kilogram drug wrappers. During this time other officers claimed to have followed a second individual who left the residence who threw trash from the car window, which was found to contain cocaine residue. Rivera, and other officers remained at the house until W.J. and C.J. obtained a search warrant from a Baltimore City District Court judge.
As detailed in his plea agreement, Rivera ultimately participated in the search of the residence. While no drugs were found in the house, officers found car keys, including a key that had the ability to activate an alarm in a vehicle remotely. A BPD officer activated the alarm and officers heard the alarm sound in a pickup truck that was parked nearby. Rivera learned that drugs were found in the truck. Other officers waited with the cocaine until a SWAT team arrived to provide protection during the transportation of the cocaine to BPD headquarters because it was such a large quantity. In order to transport the cocaine from the scene to BPD headquarters, it was loaded into a BPD surveillance van driven by K.G. After the cocaine was loaded into the surveillance van, officers followed the SWAT team to BPD headquarters to maintain chain-of-custody over the cocaine. Forty-one kilograms of cocaine were turned in to the BPD’s Evidence Control Unit on February 20, 2009. Later that day, a criminal complaint was filed in the United States District Court for the District of Maryland charging T.M. with possessing with intent to distribute five or more kilograms of cocaine.
Rivera discovered three additional kilograms of cocaine in the surveillance van that had been used to transport the cocaine to BPD. These kilograms of cocaine had come from the seizure from T.M.’s pickup truck on February 19 and 20, 2009, but had not been turned in to the BPD on February 20, 2009. Rather than turn this cocaine in to BPD, Rivera, and others agreed to sell the cocaine and split the proceeds from its sale.
Rivera sold the cocaine to a confidential informant of his, who trafficked in cocaine. The source sold the cocaine in Baltimore City. Rivera received the proceeds of the sale from his source and then shared them with other officers. Ultimately, Rivera received $20,000 in drug proceeds from the sale of the cocaine seized from T.M.’s pickup truck that had not been turned in to BPD.
On November 1, 2019, Rivera agreed to participate in a voluntary interview with FBI task force officers (“TFOs”). Rivera was told it was a crime to lie to the FBI TFOs interviewing him and he acknowledged he understood. In that interview, Rivera made a number of false statements and material omissions. An example being, the FBI TFO asking, “Did you ever hear of anybody taking any drugs or any money or anything like that from the incident?” to which Rivera replied, “No sir. No.”
Rivera faces a maximum sentence of 5 years imprisonment for making false statements to federal agents. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
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Final Mafia Member in 2017 Takedown Sentenced to Life in Prison for Murder, Racketeering, and Other CrimesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that STEVEN L. CREA, the Underboss of the Luchese Family, was sentenced today to life in prison, a $400,000 fine, and the forfeiture of $1 million following his conviction for the 2013 murder of Michael Meldish, conspiracy to commit racketeering, and other felonies. A jury convicted CREA and three co-defendants on November 15, 2019, following a six-week trial before U.S. District Judge Cathy Seibel, who also imposed today’s sentence.
Acting U.S. Attorney Audrey Strauss said: “Steven L. Crea – the Underboss of the Luchese Family – is the last of a dozen made men arrested in 2017 to be sentenced for his crimes. For his role in the 2013 murder of Michael Meldish and other crimes, Crea will now spend the rest of his life behind bars. Thanks to the outstanding investigative work of the FBI and NYPD, we continue our commitment to render La Cosa Nostra a thing of the past.”
According to the evidence presented at trial, the admissions of defendants who pled guilty, and other court documents:
STEVEN L. CREA was the Underboss, or second-in-command, of the Luchese Family of La Cosa Nostra, one of the “Five Families” that constitute the Mafia in the New York City area. From 2000 to his arrest in 2017, CREA helped lead the Luchese Family, which made millions of dollars in profit from crimes committed by the Family’s members and associates in New York City, Westchester, Long Island, New Jersey, and elsewhere. In 2013, CREA helped orchestrate the murder of Michael Meldish.
In May 2017, charges were filed against 12 members of the Luchese Family, including the Acting Boss, Underboss, Consigliere, four captains, and five soldiers, for their commission of a wide array of crimes with the Mafia from at least in or about 2000 up to and including in or about 2017. With the exception of one captain who died before his case was resolved, every Luchese Family member charged in this case either pled guilty or was convicted at trial. With CREA’s sentencing today, all have now been sentenced by Judge Seibel. Eight Mafia associates were also charged. All subsequently pled guilty or were convicted at trial, and seven have now been sentenced. The defendants were convicted of being leaders, members and associates of the Mafia, and committing crimes including the murder of Michael Meldish; three attempted murders – including the attempted murder of a former witness against the Mafia; multiple assaults; trafficking oxycodone, cocaine, and other drugs; extortion; millions of dollars in fraud against a public hospital in the Bronx; loansharking; operating illegal gambling businesses; and other crimes. A chart containing the ages, residency information, convictions, and sentences of the defendants is attached.
* * *
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation, the New York City Police Department, Homeland Security Investigations, the Waterfront Commission of New York Harbor, and the U.S. Bureau of Prisons.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Scott Hartman, Hagan Scotten, Jacqueline Kelly, Celia V. Cohen, and Alexandra N. Rothman are in charge of the prosecution.
DEFENDANT
AGE
CITY OF RESIDENCE
CHARGES OF CONVICTION
SENTENCE
Madonna, Matthew
84
Incarcerated
Racketeering conspiracy, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, aiding and abetting use of a firearm to commit murder
Life in prison
Crea, Steven L.
73
Crestwood, NY
Racketeering conspiracy, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, aiding and abetting use of a firearm to commit murder
Life in prison, $400,000 fine,
$1 million forfeiture
Londonio, Christopher
46
Incarcerated
Racketeering conspiracy, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, aiding and abetting use of a firearm to commit murder, conspiracy to distribute narcotics
Life in prisonCaldwell, Terrence
62
Incarcerated
Racketeering conspiracy, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, use of a firearm to commit murder, attempted murder in aid of racketeering, use of a firearm during a crime of violence
Life in prisonDatello, Joseph
69
Staten Island, NY
Racketeering conspiracy
168 months' imprisonment
Crea, Steven D.
48
New Rochelle, NY
Racketeering conspiracy, conspiracy to commit murder in aid of racketeering, attempted assault with a deadly weapon in aid of racketeering
156 months' imprisonment, $50,000 fine
Bruno, Vincent
36
Incarcerated
Attempted murder in aid of racketeering, racketeering conspiracy
136 months' imprisonment
Vaughan, Brian
54
Matawan, NJ
Racketeering conspiracy
84 months' imprisonment
O’Connor, Richard
66
Staten Island, NY
Conspiracy to distribute narcotics
72 months' imprisonment
Garcia, Carmine
Deceased
Hawthorne, NJ
Racketeering conspiracy, conspiracy to commit assault in aid of racketeering
60 months' imprisonment, $250,000 fine
DiNapoli, Joseph
84
Bronx, NY
Racketeering conspiracy
52 months' imprisonment, $250,000 fine
Castelucci, John
60
Staten Island, NY
Racketeering conspiracy
37 months' imprisonment, $150,000 fine
Maffucci, James
72
New York, NY
Extortion, Extortionate extension of credit
37 months' imprisonment
Corso, Tindaro
59
Staten Island, NY
Racketeering conspiracy
30 months' imprisonment, $10,000 fine
Venice, Joseph
59
Yonkers, NY
Racketeering conspiracy
18 months' imprisonment, $10,000 fine
Cassano, Paul
41
Yonkers, NY
Conspiracy to commit assault in aid of racketeering
18 months' imprisonment
Camilli, Robert
63
Briarcliff Manor, NY
Extortionate extension of credit
One year supervised release; $35,000 fine
Incatasciato, John
45
Elmsford, NY
Extortionate collection of credit
Two years' supervised release; 100 hours' community service
Federal Inmate Sentenced for Conspiring to Launder Drug Trafficking ProceedsRead the Press Release
PITTSBURGH – Donnell Steward was sentenced to 24 months in prison for conspiring to launder drug trafficking proceeds between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Steward, age 51, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan directed that the prison sentence be served consecutively to the prison sentence Steward was serving at the time of the crime. Judge Ranjan also directed that Steward serve one year of supervised release following his prison sentence.
Steward was incarcerated at the federal prison at Otisville, New York, when he conspired to launder the proceeds of his distribution of Schedule I synthetic cannabinoid controlled substances. Such substances have caused severe illness and deaths throughout the United States in recent years. Steward was incarcerated as a result of several prior convictions in the District of Columbia for assault with a deadly weapon, possession of a firearm during a crime of violence, and armed robbery.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
Federal Court holds Florida Tax Return Preparer in ContemptRead the Press Release
A federal court in Miami, Florida, held that Jessyca Bernard has violated a permanent injunction entered against her on June 25, 2018, which barred her from preparing tax returns for others.
Bernard admitted in documents filed with the court that the United States gathered sufficient evidence demonstrating that she violated the injunction by directly or indirectly preparing 438 tax returns for others, using her husband’s name, Dave Moulton, to conceal her involvement. Bernard agreed to pay the United States $79,000 as reimbursement of its investigative expenses and disgorgement of fees she received from refunds claimed on returns she prepared in violation of the injunction. The investigation was undertaken by the Tax Division as part of its effort to monitor the conduct of return preparers who have been enjoined from preparing returns, and hold those who have continued to do so accountable for violating that ban.
The U.S. District Court for the Southern District of Florida ordered Bernard to pay these amounts and barred her from working at or maintaining any interest in any entity that offers tax preparation services.
The injunction barring Bernard from preparing tax returns remains in effect, and the court authorized the United States to continue to monitor her compliance with its orders.
“Fraudulent tax return preparers abuse our nation’s tax laws and take advantage of those customers who pay them to file a correct tax return,” said Richard Zuckerman, Principal Deputy Assistant Attorney General for the Tax Division. “We are committed to working with our IRS partners to root out these perpetrators, particularly those who continue to violate the law even after being ordered by a court to cease their activities.”
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fairfield Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Antonio Tawan Bankhead, 32, of Fairfield, was sentenced Thursday by U.S. District Judge Troy L. Nunley to three years and 10 months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
Bankhead was convicted of the same crime in Sacramento federal court in 2015. He violated his federal probation in that case when he committed this new offense.
According to court documents, on the evening of Oct. 11, 2019, police responded to the area of Laurel Creek Park to a report of a potential robbery involving three individuals, one of whom had a gun. As police arrived, Bankhead ignored commands to stop and began to walk away. As more police arrived and tried to cut off his path, Bankhead changed direction and started to sprint, climbing over a fence onto a baseball field. After a pursuit by officers and a police dog, Bankhead was caught in the bushes of a house across from the park, and a gun and phone he had been carrying were found on the baseball field, which was fenced in and closed to the public. The gun, a Glock Model 19 9 mm pistol, had a 30-round extended magazine, and was loaded with 30 live 9 mm rounds and one round in the chamber. Bankhead cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses.
This case was the product of an investigation by the Fairfield Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. Assistant U.S. Attorney Christopher S. Hales prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Fairbault Man Charged with Illegally Possessing A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging ANDREW ALBERT COMEAUX, 37, with one count of possession of a firearm by a felon. COMEAUX, who is in custody on state charges in Rice County, made his first appearance today before Magistrate Judge Becky R. Thorson, in U.S District Court in St. Paul, Minnesota. A detention and arraignment hearing is currently scheduled for August 31, 2020, at 3:00 pm.
According to allegations in the indictment and documents filed with the court, on June 15, 2020, multiple law enforcement agencies executed a search warrant at COMEAUX’s residence. During the search, law enforcement found a .22 caliber rifle and a Mosin-Nagant 7.62x54R caliber rifle. Because COMEAUX has a prior felony conviction in Le Sueur County and multiple prior felony convictions in Blue Earth County, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms, the South Central Drug Task Force, the Cannon River Drug Task Force, Rice and Steel County Sheriff’s Offices, the Faribault and Owatonna Police Departments, Metro SWAT, and the St. Paul Bomb Squad, with coordination from the Rice County Attorney’s Office. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Assistant U.S. Attorney Alexander D. Chiquoine is prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
ANDREW ALBERT COMEAUX, 37
Fairbault, Minn.
Charges:
- Felon in possession of a firearm, 1 count
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Dupree Man Indicted on Cattle Conversion ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Conversion of Mortgaged or Pledged Property.
Daris William LaPlante, age 51, was indicted on August 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 25, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is five years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 19, 2016, and December 27, 2019, LaPlante, with intent to defraud, did knowingly sell cattle mortgaged and pledged by LaPlante to the Farm Service Agency, an agency within the U.S. Department of Agriculture, without the permission and consent of the Farm Service Agency, having a value over $1,000. LaPlante sold these cattle at several auction houses throughout South Dakota and kept the proceeds for himself.
The charge is merely an accusation and LaPlante is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Department of Agriculture, Office of Inspector General. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
LaPlante was released on bond pending trial. A trial date has not been set.
Driving Park man charged with dealing fentanyl that resulted in overdose deathRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Diamondo Valdez Butler, 39, of Columbus, with dealing fentanyl that resulted in an overdose death. Butler was arrested last night by authorities with the DEA and Gahanna Division of Police.
According to the indictment, on April 1, 2020, Butler distributed fentanyl that resulted in the death of a Gahanna man.
Butler, also known as “Yellow,” allegedly sold $70 worth of fentanyl to a friend of the deceased at a gas station on Cleveland Ave. The friend and the deceased traveled to the gas station together and each contributed $35 towards the purchase. The fentanyl was divided half to the deceased and half to the friend. The deceased used the fentanyl at his home in Gahanna and was discovered unresponsive the next morning. The coroner’s report indicates the cause of death was fentanyl intoxication.
Butler allegedly distributed fentanyl multiple other times in April and August.
He is charged in a nine-count indictment that was returned on Aug. 25.
“Fentanyl trafficking is like playing Russian Roulette,” said U.S. Attorney David M. DeVillers. Any given dose can kill someone, and if it does, that trafficker will face a minimum of 20 years in prison.”
Distributing narcotics that result in death or serious bodily injury is a federal crime punishable by 20 years up to life in prison.
“These charges are a reminder of the lethality of fentanyl,” said DEA Special Agent in Charge Keith Martin. “The DEA continues to prioritize investigating drug dealing that results in death.”
David M. DeVillers, United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Gahanna Division of Police Chief Jeffrey Spence announced the charges. Assistant United States Attorney Timothy D. Prichard is representing the United States in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Dominican National Pleads Guilty to Unlawful Re-Entry Following Alleged Involvement in Overdose DeathRead the Press Release
BOSTON – A Dominican national pleaded guilty today to unlawful re-entry of a deported alien. After reentering the United States within months of being removed, the defendant was charged with a heroin-related offense and was in possession of a phone that had been used in a drug transaction with an individual who died of an apparent overdose.
Joel Perez Matos, 35, who resided in Boston, pleaded guilty to unlawfully re-entering the United States after being deported. Perez Matos will be sentenced by U.S. District Court Judge Indira Talwani on Nov. 19, 2020. He has been detained since his arrest in April 2020 and will be subject to deportation following his sentence.
Perez Matos unlawfully re-entered the United States after being deported in December 2019. He had previously been removed in February 2016, and had unlawfully returned to the United States later that year.
On March 22, 2020, within a few months of having been removed from the United States, Perez Matos was arrested by local law enforcement in Stow and charged with a heroin-related offense. At the time of his arrest, Perez Matos was in possession of a cell phone that had been used the previous day to set up a drug transaction with a Massachusetts resident. On March 22, 2020, that resident died of an apparent drug overdose. When arrested, Perez Matos presented police with an out-of-state driver’s license in a fake name.
Perez Matos faces a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Todd Lyons, Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement today. The Stow Police Department also provided valuable assistance. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
Defendant Sentenced to One Year in Prison in Public Corruption CaseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced today that Chief United States District Judge Kristi K. DuBose sentenced defendant James Antuan Blackman, 33, of Mobile, Alabama, to imprisonment for one year and one day for theft concerning programs receiving federal funds and money laundering. As part of the sentence, the judge ordered that Blackman undergo three years of supervised release after finishing his term of imprisonment, pay a $200 mandatory special assessment, and pay $200,000 in restitution to the City of Prichard.
On December 18, 2019, a federal grand jury for the Southern District of Alabama returned an 18-count indictment against Blackman, charging him with theft concerning programs receiving federal funds, wire fraud, and money laundering. On February 19, 2020, Blackman pleaded guilty before the Court to one count of theft concerning programs receiving federal funds and one count of money laundering.
Blackman admitted to the following facts as part of his guilty plea. From around November 2016 to around January 16, 2018, Blackman was the Chief of Staff and Administrative Assistant to the Mayor of Prichard, Alabama. In that position, Blackman was an agent of the City of Prichard, Alabama, a local government that received over $10,000 under a federal program involving federal assistance during each year material to the indictment. From around November 2016 to around January 2018, Blackman used his position with the City of Prichard to enrich himself by diverting to his personal benefit approximately $200,000 in money and property belonging to the City of Prichard. Blackman enriched himself in several ways. He falsified invoices to the City of Prichard. He took and deposited for himself checks payable to the City of Prichard, and checks payable to other entities in the care, custody and control of the City of Prichard. Blackman also used his position with the City of Prichard to divert ownership of real property located on Outlaw Road, Herndon Avenue, and Stoval Street from the City of Prichard for his personal benefit. Finally, Blackman laundered money by causing a wire transfer of approximately $39,200.36 in criminal proceeds to be sent from a Regions Bank account that he controlled to a title company to facilitate the purchase of real property.
The Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation investigated the case with assistance from the Investigations Team of the Mobile County District Attorney’s Office. Assistant United States Attorneys George Martin and Sinan Kalayoglu prosecuted the case.
Dayton man sentenced to prison for role in Texas-to-Ohio heroin distribution ringRead the Press Release
DAYTON – Gene Talley, 48 of Dayton, was sentenced in U.S. District Court in Dayton today to to 100 months in prison as the lead defendant in a Texas-to-Ohio heroin operation. He pleaded guilty in February to conspiring to distribute more than 100 grams of heroin.
According to court documents, beginning in or about 2007, Talley met with another individual in Austin, Texas who agreed to provide controlled substances, including heroin, to Talley for distribution in the Southern District of Ohio.
As part of the scheme, Talley arranged for other individuals to collect the drugs and bring them to Ohio, and sent money back to the supplier through couriers. On three occasions, law enforcement intercepted the money, including: approximately $99,000 seized by police in Austin, Texas in December 2012; approximately $230,000 seized by police in Chicago in June 2015; and approximately $240,000 seized by police in Winfield, Texas. The seized money was Talley’s payment for multiple kilograms of heroin.
Four others charged as part of the scheme include Brianna Reid, Adriauna Smith, Syreeta Scruggs and Kenneth Patterson.
Congress sets the minimum and maximum statutory sentence. Sentencing of the defendant is determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI); Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA) and the DEA’s Drug Task Force announced the sentence imposed by U.S. District Judge Walter H. Rice. Assistant United States Attorneys Amy M. Smith and Andrew J. Hunt represented the United States in this case.
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Convicted Felon Is Sentenced to Seven Years for Illegally Possessing A FirearmRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced that Jamien Markee Marshall, 31, of Charlotte, was ordered to serve seven years in prison and three years of supervised release for illegally possessing a firearm. U.S. District Judge Max O. Cogburn Jr. handed down the sentence today, which included sentencing guideline enhancements for Marshall’s two prior armed robbery convictions and the obliterated serial number on the firearm.
According to filed court documents and the sentencing hearing, on March 26, 2019, Charlotte-Mecklenburg Police Department (CMPD) officers patrolling L.C. Coleman Park in Charlotte observed Marshall’s parked vehicle. When officers approached Marshall, who was sitting in the driver’s seat, Marshall informed the officers that there was a firearm in the vehicle. The officers observed the firearm in between the driver’s seat and the center console. Over the course of the investigation, officers determined that the firearm was loaded and the serial number had been rubbed off the gun. On March 2, 2020, Marshall pleaded guilty to possession of a firearm by a felon. Marshall has two prior Robbery with a Dangerous Weapon convictions in Mecklenburg County, and he is prohibited from possessing a firearm or ammunition.
Marshall is in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon the designation of a federal facility.
The investigation was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and CMPD. Assistant United States Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Commercial Flooring Contractor Agrees to Plead Guilty to Bid RiggingRead the Press Release
Vortex Commercial Flooring Inc., a Chicago-area commercial flooring contractor, has been charged for its role in a long-running antitrust conspiracy to rig bids and fix prices for commercial flooring services and products sold in the United States, the Department of Justice announced.
Vortex has agreed to plead guilty and pay at least $1.4 million in fines and restitution for its role in the conspiracy and to cooperate in the Division’s ongoing investigation. This is the second corporate guilty plea in this investigation. Four flooring executives, including two from Vortex, have pleaded guilty as well.
According to a one-count superseding felony charge filed today in the U.S. District Court in Chicago, Vortex and its previously charged executives engaged in a conspiracy to suppress and eliminate competition in the commercial flooring market by agreeing with other individuals and companies to submit complementary bids so that the designated company would win the contract. Vortex participated in the conspiracy from at least as early as 2009 until at least June 2017.
“Vortex is the largest flooring corporation charged to date in the Justice Department’s ongoing investigation of Chicago-area commercial flooring contractors,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The conduct cheated public institutions, including public schools, and the defendant has agreed to pay restitution to the victims. The Antitrust Division will continue its efforts to make whole victims of criminal conspiracies.”
“Vortex ultimately cheated innocent businesses and communities out of the competitive pricing necessary to complete flooring projects,” said Special Agent in Charge Emmerson Buie, Jr., FBI Chicago. “This charge exemplifies the FBI’s commitment to working with its government partners to hold contractors accountable when they attempt to profit at their community’s expense.”
A violation of the Sherman Act carries a statutory maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into bid rigging, price fixing, and other anticompetitive conduct in the commercial flooring industry being conducted by the Antitrust Division’s Chicago Office and the FBI’s Chicago Field Division. Anyone with information on bid rigging, price fixing, or other anticompetitive conduct related to the commercial flooring industry should contact the Antitrust Division’s Chicago Office at 312-984-7200 or visit www.justice.gov/atr/contact/newcase.html.
Child Sex Tourist Sentenced to 15 Years in Federal Prison for Child Pornography and Child Exploitation CrimesRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Dennis Michael Hogan, age 60, of Deer Park, Washington, was sentenced today to a 15-year term of imprisonment for Online Enticement of a Minor Girl to Engage in Production of Child Pornography and Attempted Illicit Sexual Conduct in Foreign Places. Following Hogan’s guilty plea on February 18, 2020, United States District Judge Rosanna Malouf Peterson sentenced him at the top of the proposed range, to be followed by a lifetime of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Hogan repeatedly used social media accounts and the Internet to reach out to minor girls in the Philippines. His minor victims ranged in age from 12 to 17, and each victim told Hogan how old she was. Hogan offered his victims as little as $19 for extremely graphic sexual images that the girls took of themselves and one another to send to him. Hogan also sent child pornography to his minor victims to groom them and show them the kinds of images he liked.
As Judge Peterson noted, Hogan’s conduct far exceeded producing and collecting child pornography. The Court found that in addition to the online recruitment of minor victims, Hogan repeatedly traveled to the Philippines and engaged in illicit sexual conduct with his minor victims. He made painstakingly detailed arrangements of date, time, hotel, city, and how to avoid having his victims’ identifications checked by the hotels to verify their ages. Seven minor victims were identified in the case, but based on Hogan’s online communications, there may have been many more.
Federal child exploitation investigators from Homeland Security Investigations (“HSI”) learned about Hogan’s conduct through the CyberTip Program, when Facebook alerted law enforcement to the transfer of Hogan’s child pornography images. HSI executed a federal search warrant at Hogan’s home in Deer Park and seized numerous devices and communications.
But even after HSI raided his home, Hogan continued to engage in sexual communications with at least one minor female in the Philippines. HSI agents learned that the Federal Bureau of Investigation (“FBI”) in Minnesota had identified Hogan as a target in a completely independent investigation into sexual abuse of minor Filipina girls. HSI and FBI worked closely to coordinate the parallel investigations. From the evidence in the separate FBI case, HSI investigators learned that one of Hogan’s victims even sent him an image of her birth certificate to prove that she was a minor. HSI agents also saw that after the raid, Hogan specifically instructed his minor victim to engage in live sex chats online, because Facebook had informed law enforcement when he previously received images and videos of child pornography.
United States Attorney Hyslop said, “It is a priority of the United States Attorney’s Office to protect all children, not just American kids or those who live in Eastern Washington. The Internet has largely erased state, national, and international boundaries when it comes to adults who seek out children for sex. If predators in the Eastern District use the Internet to abuse children anywhere, they should know that federal agents are actively looking for them. We are deeply committed to investigating, prosecuting, and stopping child sexual abuse, including child sex tourism, to the fullest extent possible. The lengthy sentence imposed today sends a strong message that this conduct will not be tolerated, wherever the victims happen to live. I commend the outstanding investigative efforts by the Spokane Office of HSI, and the unwavering support and resources of the FBI, the Philippine National Police, the United States Embassy in Manila, and the United States Consulate in Cebu City. This was truly a global case that brought together the best of American investigatory resources and relied on national and international cooperation to protect children.”
“Today’s sentencing of Dennis Hogan makes it very clear, we will not tolerate child exploitation and those who perpetrate crimes against children,” Acting Special Agent in Charge of Homeland Security Investigations Seattle Eben Roberts said. “We work with our local, national and international partners to investigate and prosecute these crimes by using every available resource to pursue the guilty and protect the innocent.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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 information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the Spokane Office of HSI, and Special Agents Rodney Weekes (Ret.) and Shannon Hart in cooperation with the Federal Bureau of Investigation. This case was prosecuted by David M. Herzog, an Assistant United States Attorney for the Eastern District of Washington.
Career Criminal Sentenced to 15 Years in Prison for Methamphetamine TraffickingRead the Press Release
Gulfport, Miss – Elbert James Carter, 38, of Bay St. Louis, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr. to 180 months in prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA). Judge Guirola also ordered Carter to pay a $3,500 fine.
Beginning in late 2017, DEA agents received information that Carter was involved in distributing methamphetamine in the McClain, Mississippi area. On June 21, 2018, an individual purchased 54.9 grams of methamphetamine from Carter for $1,000. The DEA Crime lab determined that the methamphetamine was 100% pure. On July 11, 2018, an individual purchased methamphetamine from Carter for $1,000. The DEA crime lab determined the methamphetamine weighed 52.5 grams and was 98% pure.
Carter was charged in a federal criminal indictment and pled guilty to possession with intent to distribute methamphetamine before Judge Guirola on January 28, 2020. Carter has two prior felony drug convictions and was sentenced as a career offender.
The case was investigated by the DEA and prosecuted by Assistant United States Attorney Shundral H. Cole.
Canadian Woman Found Guilty of Trafficking CocaineRead the Press Release
United States Attorney Ron Parsons announced that Bethlehem Shah, age 22, of Winnipeg, Manitoba, Canada, was found guilty of Conspiracy to Distribute Cocaine as a result of a federal jury trial in Rapid City, South Dakota. The verdict was returned on August 21, 2020.
The charges carry a minimum of at least 10 years and not more than life imprisonment and/or a $10,000,000 fine, at least 5 years up to life supervised release, a $100 assessment to the Federal Crime Victims Fund, and restitution.
Shah was indicted by a federal grand jury on August 14, 2018.
On August 1, 2018, a co-conspirator was stopped by a South Dakota Highway Patrol Trooper, near Spearfish, South Dakota. During a search of the vehicle, the Trooper located approximately 40 kilograms, or 88 pounds, of cocaine. Defendant Shah was set to meet the co-conspirator in Fargo, North Dakota, where Shah would pick up the cocaine and transport it across the border into Canada. Through a series of consensually recorded phone calls to Shah by the co-conspirator and law enforcement, Shah then traveled to Spearfish believing she was going to pick up the cocaine. Instead, Shah was arrested.
“I want to congratulate the South Dakota Highway Patrol, the DEA, and the entire UNET team for this significant interdiction, investigation, and conviction,” said U.S. Attorney Parsons. “As drug trafficking networks continue to become more brazen and sophisticated, all of our law enforcement agencies are joining together to meet the challenge.”
This case was investigated by the Drug Enforcement Agency, the South Dakota Highway Patrol, and the local Unified Narcotics Enforcement Team. Assistant U.S. Attorneys Gina Nelson and Megan Poppen prosecuted the case.
A presentence investigation was ordered and a sentencing date is pending. The defendant was remanded to the custody of the U.S. Marshals Service.
California Mother and Son Arrested for Operating A $5 Million Mortgage Modification FraudRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service (“USPIS”), announced today that EVA CHRISTINE RODRIGUEZ and SERGIO LORENZO RODRIGUEZ, mother and son, of Orange County, California, were arrested and charged with wire fraud offenses in connection with a fraudulent foreclosure rescue scheme that took in more than $5 million in prohibited advance fees from thousands of financially distressed homeowners.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Eva Christine Rodriguez and Sergio Lorenzo Rodriguez preyed on vulnerable homeowners at risk of foreclosure by making false and misleading promises that they knew they would not or could not keep. They allegedly continued to do so even after they were barred from the debt relief industry by a federal court in California. They now face serious criminal charges.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Loan Modification Scams are a cruel fraud targeting very desperate homeowners faced with losing their homes. While a loan modification may appear to be a lifeline, these scams often become a nightmare. This is allegedly what happened to victims who did business with Eva and Sergio Rodriguez. Postal Inspectors remain on alert for fraud scams targeting consumers, bringing fraudsters to justice worldwide.”
According to the Complaint[1] unsealed today in Manhattan federal court:
From approximately March 2014 through April 2018, EVA CHRISTINE RODRIGUEZ and SERGIO LORENZO RODRIGUEZ (the “Defendants”) owned and/or managed a series of mortgage modification companies through which they perpetrated a scheme to defraud and attempt to defraud financially distressed consumers who were facing or were at imminent risk of foreclosure through deceptive marketing practices. Those companies were National Servicing Center, American Home Servicing Center, National Advocacy Center, National Advocacy Group, and Capital Home Advocacy Center (collectively, the “Companies”). Among other ways, the Defendants charged desperate homeowners thousands of dollars in prohibited advance fees by tricking them into believing that they had been pre-approved by their lender or servicer for a mortgage modification; falsely represented prohibited advance fees to be closing costs or other non-prohibited costs; fraudulently claimed that the Companies achieved success rates of 95 percent or higher for mortgage modifications; and made empty promises of a no-risk money back guarantee. As a result of their intentional misrepresentations, and misrepresentations that they encouraged their subordinates to make, the Defendants induced thousands of homeowners to pay an aggregate of more than $5 million in prohibited advance fees to the Companies, including a large number of consumers who were ultimately denied mortgage modifications or who received modification offers that were less favorable than they had been led to expect at the time they paid advance fees.
In February 2018, the Federal Trade Commission brought a civil lawsuit against EVA CHRISTINE RODRIGUEZ and SERGIO LORENZO RODRIGUEZ, among others, in federal court in Santa Ana, California. That civil action resulted first in a temporary restraining order and then a permanent injunction barring EVA CHRISTINE RODRIGUEZ and SERGIO LORENZO RODRIGUEZ from marketing and selling all debt relief products and services. As alleged in the Complaint, the Defendants flouted those judicial orders by having a relative create another mortgage modification company named 1st Premier Asset Solutions, which the Defendants operated using aliases and some of the same deceptive practices.
EVA CHRISTINE RODRIGUEZ and SERGIO LORENZO RODRIGUEZ will be presented in federal court in Santa Ana later today.
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EVA CHRISTINE RODRIGUEZ, 65, of Laguna Hills, California, and SERGIO LORENZO LAWRENCE, 46, of Laguna Niguel, California, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud. Each count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the investigative work of the USPIS and thanked the Federal Trade Commission and the United States Trustee for Region 5 for their assistance.
This case is being handled by the Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sarah Lai is in charge of the prosecution.
If you believe you are a potential victim of this fraud, please contact Postal Inspector Brandy King-Gonzalez of the USPIS at [email protected], or (212) 330-5252.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegation.
Bridger Man Charged with Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a Bridger, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child, Sexual Abuse of a Minor, and Abusive Sexual Contact of a Child.
Bennett Belt, age 47, was indicted on August 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 25, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, a mandatory minimum of 5 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on multiple instances between July 2003 and September 2017, in Ziebach County, South Dakota, Belt knowingly engaged in and attempted to engage in abusive sexual acts with minor victims.
The charges are merely accusations and Belt is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Belt was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Brandon Woman Charged with 16 Counts of Wire FraudRead the Press Release
United States Attorney Ron Parsons announced that a Brandon, South Dakota, woman has been indicted by a federal grand jury for Wire Fraud.
Sheila Verbrugge, age 50, was indicted on August 17, 2020. She appeared before U.S. Magistrate Judge Veronica L. Duffy on August 25, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and up to $1,600 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on beginning in approximately January 2010, and continuing through April 8, 2020, Verbrugge devised and intended to devise a scheme and artifice to defraud and to obtain money and property from others by means of false and fraudulent pretenses, representations, and promises, to unjustly enrich herself by obtaining fraudulent funds.
From approximately 2006 through on or about April 8, 2020, Verbrugge was the billing and payroll clerk for Blachowske Truck Line, Inc. (“Blachowske”), located in Brandon. In this capacity, her duties included managing Blachowske’s T-Chek account. T-Chek is a system used by Blachowske to pay for various job-related expenses incurred by Blachowske’s truck drivers, such as fuel and truck maintenance. Each week, T-Chek emailed an invoice to Blachowske for that week’s charges. Blachowske then paid the invoice electronically using an automated clearing house (“ACH”) payment.
On multiple occasions during the relevant time period, Verbrugge falsely and fraudulently issued T-Cheks payable to herself, deposited them into her personal bank account, and then used the funds for her own purposes. She disguised her theft by altering the weekly T-Chek report and deleting her name and location and replaced it with names of Blachowske truck drivers and locations she knew to be associated with those truck drivers. Because of the false information entered, Blachowske paid the T-Chek invoices.
The charges are merely accusations and Verbrugge is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Brandon Police Department. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Verbrugge was released on bond pending trial. A trial date has not been set.
Bloomingdale Township Highway Commissioner Charged in Federal Indictment with Pocketing KickbacksRead the Press Release
CHICAGO — The Commissioner of the Bloomingdale Township Road District received kickbacks from the owner of an excavation company in exchange for approving hundreds of thousands of dollars in invoices for purported road work, most of which was never performed, according to an indictment returned in federal court in Chicago.
The indictment accuses Commissioner ROBERT CZERNEK of receiving more than $280,000 in kickbacks from DEBRA FAZIO, the owner of Bloomingdale-based Bulldog Earth Movers Inc. (“BEM”), and MARIO GIANNINI, a BEM employee. In exchange for the secret kickbacks, Czernek used his official position to approve and cause the approval for payment of stone delivery, dump leveling, and storm sewer invoices submitted by BEM to Bloomingdale Township, the indictment states. Czernek approved the invoices knowing that much of the work and services had not actually been performed by BEM, the indictment states. The fraud scheme spanned eight years and resulted in Bloomingdale Township issuing checks totaling more than $700,000 to BEM, the indictment states.
The 20-count indictment was returned Wednesday. It charges Czernek, 69, Fazio, 63, and Giannini, 58, all of Bloomingdale, with 14 counts of honest services wire fraud. Fazio is also charged with six counts of money laundering. Arraignments in U.S. District Court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the DuPage County State’s Attorney’s Office. The government is represented by Assistant U.S. Attorney Christopher V. Parente.
According to the indictment, Czernek would leave handwritten notes for Giannini hidden in various secluded places on Bloomingdale Township Highway Department property. The notes included a description of work purportedly performed by BEM and the number of hours that BEM purportedly spent on the work, the indictment states. Fazio would later submit invoices to Bloomingdale Township that repeated virtually verbatim the wording used by Czernek in the notes, the indictment states.
The indictment seeks forfeiture from the defendants of several items allegedly criminally derived from the charged offenses, including a 1981 Corvette and 2014 Lexus RX350 held by Czernek, and several pieces of large excavation equipment purchased by BEM during the scheme.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each fraud count in the indictment is punishable by up to 20 years in prison, while the maximum sentence for each count of money laundering is ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Baltimore Man Pleads Guilty to Federal Firearm and Armed Bank Robbery ChargesRead the Press Release
Baltimore, Maryland – David Gollahon, age 58, of Baltimore, Maryland, pleaded guilty today to the federal charges of armed bank robbery and brandishing of a firearm during a crime of violence.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department (BPD); and Chief Melissa R. Hyatt of the Baltimore County Police Department (BCPD).
According the his plea agreement, on January 23, 2019 and February 1, 2019, Gollahon and his co-Defendant Richard Tingler committed two armed bank robberies in Baltimore, Maryland and, in connection with both robberies, co-Defendant Richard Adams served as the getaway driver. During each of the robberies, Gollahon and Tingler each brandished a firearm and threatened victim bank employees.
Specifically, on January 23, 2019, Adams drove Tingler and Gollahon in a gray Hyundai Accent car to the area of the PNC Bank, located in Baltimore, Maryland. Tingler and Gollahon each had a firearm.
After entering the bank, Tingler, wearing a black ski mask, gray gloves, and a camouflage jacket, carrying a loaded black firearm and black leather duffle bag, and Gollahon, wearing a black ski mask and a gray hooded sweatshirt, carrying a loaded black firearm, told everyone to put their hands up. Tingler approached the victim teller, pointed his firearm at her and demanded $100 dollar bills and “loose bills” from the bottom drawer of the till. Meanwhile, Gollahon held the other bank employees and customers at gunpoint in the lobby area of the bank. He told the bank employees and customers, “don’t move.”
The victim teller complied with Tingler’s demand for cash and handed over $7,531.00 U.S. dollars. Tingler and Gollahon then fled the bank on foot. As they ran through a parking lot, they accidentally dropped $5,584 in cash. They then got into the gray Hyundai Accent car driven by Adams, and drove away
On February 1, 2019, Adams drove Tingler and Gollahon in a 2006 Chevy Monte Carlo to a M&T Bank, in Baltimore, Maryland. Tingler and Gollahon each had the same firearm they had used in connection with the January 23, 2019 robbery of the PNC Bank.
After entering the bank, Tingler, wearing a black beanie, gray gloves, and the same camouflage jacket, carrying a loaded black firearm, and Gollahon, wearing a dark colored hoodie, tan jacket colored jacket, and black gloves, carrying a loaded black firearm, approached the teller window. Tingler pointed his firearm at the teller, and demanded $100 bills. The victim teller complied and handed over cash from the till, but Tingler continued to demand more money. At the same time, Gollahon approached the teller line with his firearm pointed in the direction of the tellers and bank customers.
In response to the demands for more cash, the victim teller and a co-worker went to the bank’s vault and removed $40,000 in cash. They provided that cash to Tingler and Gollahon, who ultimately were given $43,802.00 in cash total. In addition to the cash, the victim teller also provided a GPS tracker, which was activated.
Tingler and Gollahon then fled the bank and got into the 2006 Chevy Monte Carlo driven by Adams. Adams drove the Monte Carlo away from the bank. Law enforcement received GPS information concerning the location of the GPS tracker taken from the bank, which they relayed to BPD.
BPD officers stopped the vehicle and, when the vehicle was stopped, the GPS tracker became stationary. Adams, Tingler, and Gollahon were ordered out of the vehicle and arrested. At the time of his arrest, Gollahon had the same firearm he used during the robbery on his person. All were transported to the BPD Citywide Robbery Office.
Law enforcement searched Adams’ 2006 Monte Carlo car and a blue backpack containing $43,802.00 in cash, the GPS tracker taken during the robbery, and the firearm carried by Tingler during both bank robberies.
Later that day, law enforcement searched Adams’ residence in Essex, Maryland and seized Gollahon’s gray hooded sweatshirt and the black leather duffel bag carried by Tingler during the January 23, 2019 robbery.
If the Court accepts the parties’ plea agreement, Gollahon will be sentenced to between 12 and 15 years imprisonment for armed bank robbery and for brandishing of a firearm during a crime of violence. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for December 10, 2020 at 9:30 a.m.
United States Attorney Robert K. Hur commended FBI, BPD, and BCPD for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Paul Riley and Daniel Loveland, Jr., who are prosecuting the case.
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Baltimore Man Pleads Guilty to Federal Drug Conspiracy ChargeRead the Press Release
Baltimore, Maryland – Donte Bennett, a/k/a Tay, age 27, of Baltimore, Maryland pleaded guilty today to participating in a drug conspiracy that operated in and around the Baltimore metropolitan area, distributing heroin, fentanyl, cocaine, and crack cocaine in Maryland and surrounding states.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Chief Marcus Jones of the Montgomery County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
“Donte Bennett was part of a supply chain that distributed opioids—including deadly fentanyl—throughout Maryland and in Virginia, West Virginia, and Pennsylvania,” said U.S. Attorney Robert K. Hur. “Bennett knew that the drugs he sold caused overdoses, but still distributed heroin/fentanyl to his own father—who died as a result. Drugs—especially opioids—are killing thousands of Marylanders a year. Federal, state, and local law enforcement are working together to reduce overdose deaths from fentanyl and from all opioids. Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution and federal time.”
According to his guilty plea, from October 2018 through at least January 2019, Bennett was a street-level distributor in a Drug Trafficking Organization (DTO) that distributed heroin, fentanyl, cocaine, and crack cocaine in Maryland, Virginia, West Virginia, and Pennsylvania. The DTO frequently sold over 100 grams of heroin mixed with fentanyl on a daily basis. Customers of the DTO believed they were purchasing heroin, but the DTO adulterated all heroin it sold with fentanyl. Bennett and other street-level distributors in the DTO worked in shifts to ensure continuous availability and shared phones they used to communicate with DTO leadership and customers.
As detailed in the plea agreement, Bennett and his co-conspirators were aware that the drugs they distributed caused overdoses. In fact, law enforcement overheard Bennett discussing with a member of the organization on one occasion how drug customers were falling asleep or passing out from using the DTO’s drugs. On November 10, 2018, Bennett sold approximately 7.5 grams of heroin/fentanyl to a drug distributor from Virginia. The drug distributor then gave a portion of this heroin/fentanyl to a customer, who shared a portion of the heroin/fentanyl with a second individual. The customer and the second individual both overdosed after using the heroin/fentanyl. They were administered Naloxone and admitted to a local hospital.
Bennett admitted that on November 18, 2018, he gave his father a user-sized quantity of heroin/fentanyl that he obtained from the DTO. Two days later, Bennett’s father died from an overdose resulting from a mixture of heroin and cocaine. Later that day, Bennett called a member of the DTO and reported that he believed his father died from the DTO’s drugs.
During the course of his participation in the conspiracy, Bennett distributed more than one kilogram of heroin.
Bennett faces a maximum of 20 years in federal prison for the drug distribution conspiracy. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Paul W. Grimm has scheduled sentencing January 19, 2020 at 10 a.m.
United States Attorney Robert K. Hur commended the FBI, the DEA, the Montgomery County and the Baltimore Police Department for their work in the investigation. Mr. Hur commended the U.S. Postal Inspection Service; the City of Rockville Police Department; the Baltimore County, Howard County, and Montgomery County Police Departments; the Frederick County Sheriff’s Office; the Maryland State Police; the West Virginia State Police; the Virginia State Police; the Warren County (VA) Sheriff’s Department; the Winchester (VA) and Front Royal (VA) Police Departments; and the Frederick County and Howard County State’s Attorney’s Offices. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Michael Goldsticker, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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