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Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 28 July 2020
U.S. Attorneys in Texas and Attorney General Paxton Partner to Warn Consumers of Fraudsters Selling Counterfeit, Mislabeled, and Non-Existent PPERead the Press Release
BEAUMONT, Texas - Today, U.S. Attorney Stephen J. Cox joined fellow U.S. Attorneys in Texas—Ryan K. Patrick in the Southern District, Erin Nealy Cox in the Northern District and John F. Bash in the Western District—and Attorney General Ken Paxton to inform the public about several fraudulent schemes involving masks, personal protection equipment (PPE), and other COVID-19 related equipment. They urge everyone to exercise increased due diligence and caution when dealing with new suppliers or vendors, especially when using a third-party broker.
As demand for PPE increases, scammers may advertise equipment they do not actually have in attempts to make a quick profit. These PPE products may be counterfeit and mislabeled, and some may not exist at all. Some fraudsters reach out directly to consumers and government entities through email or social media to push their products. Red flags that a seller may be engaging in a scam include:
- Unusual payment terms
- Last-minute price changes
- Last-minute excuses for delay in shipment
- Unexplained source of a large quantity of material
- Evidence of re-packaging or mislabeling
“Fraudsters that engage in the trafficking of counterfeit or non-existent PPE prey upon their fellow citizens at a time when they are at their most vulnerable, and, in so doing, deny front line medical professionals needed protective equipment,” said U.S. Attorney Stephen J. Cox. “One of my highest priorities is identifying these scammers, shutting down their operations, and bringing them to justice. The public deserves nothing less.”
There are ongoing federal and state prohibitions on charging exorbitant prices for PPE during this time of national emergency. Texans who believe they have encountered scams or price gouging should call the Office of the Attorney General’s toll-free complaint line at (800) 621-0508 or file a complaint online. For additional information on disaster scams, please visit our disaster scams website.
More information on unapproved or counterfeit PPE can be found at cdc.gov/niosh. You can also find information on the U.S. Food and Drug Administration website and the Environmental Protection Agency website. If you have information about PPE-related fraud, or about hoarding or price gouging of critical supplies, you can report it without leaving your home to the National Center for Disaster Fraud by calling the National Hotline at (866) 720-5721 or by submitting the NCDF Web Complaint Form.
#####U.S. Attorney McSwain Announces Fraudsters Thwarted from Stealing $44 Million of State Stimulus MoneyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that federal and state law enforcement, in collaboration with the Pennsylvania Department of Labor & Industry, and together with measures implemented by US Bank, have successfully prevented over $44 million from reaching criminals who attempted to steal Pandemic Unemployment Assistance (PUA) funds in Pennsylvania. The U.S. Department of Labor Office of Inspector General (DOL-OIG) utilized sophisticated data analytics to identify the fraudulent claims. The Department of Labor & Industry provided program assistance and data, and DOL-OIG was supported by the U.S. Attorney’s Office-led Coronavirus Working Group of federal and state law enforcement agencies in Southeastern Pennsylvania, including the U.S. Postal Inspection Service, the Federal Bureau of Investigation, the United States Secret Service, the Social Security Administration Office of Inspector General, and the Pennsylvania Office of Attorney General.
PUA is funded entirely by federal dollars under the CARES Act and the program is administered by the state. Data analytics enabled DOL-OIG and the other law enforcement agencies to trace clusters of fraudulent claims for PUA funds back to the same criminals. The Department of Labor & Industry then used the information to stop the payment of PUA funds to those criminals.
The outstanding work of law enforcement saved over $28 million in PUA funds that would have been paid to fraudsters by check or direct deposit. In addition, US Bank administers the Pennsylvania debit card program used to make some PUA payments. US Bank applied analytics to identify an additional $16 million in fraudulent claims, and those funds will be returned to the Pennsylvania Department of Treasury.
Many of the fraudsters stole identities of real Pennsylvanians to file their fraudulent claims. Law enforcement’s ability to track the fraud was greatly enhanced by Pennsylvanians who came forward and reported that they had received PUA funds but had never applied for them. Anyone who receives state unemployment compensation funds that they did not apply for, whether by check, direct deposit or debit card, are probably victims of identity theft. If you find yourself in that position, U.S. Attorney McSwain strongly encourages you to report it immediately to the Department of Labor & Industry and return the funds.
“Pandemic Unemployment Assistance funds are intended to help Pennsylvanians who lost their jobs because of the coronavirus,” said U.S. Attorney Bill McSwain. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. I want to commend the outstanding cooperation and coordination among federal and state agencies, and private banking institutions, that together achieved this remarkable success. The U.S. Attorney’s Office Coronavirus Working Group enables us to combine the tremendous resources and skill of federal and state law enforcement to do what it takes to bring these criminals to justice.”
“The ongoing work of this joint task force has prevented criminals from stealing tens of millions of dollars meant for out-of-work Pennsylvanians,” Attorney General Josh Shapiro said. “If you receive unemployment compensation you did not apply for, notify state officials right away. With your help we will take down these sophisticated scammers who are trying to use the COVID-19 pandemic for their own selfish, illegal, gain.”
“Criminals continue to exploit the Unemployment Insurance program for personal gain, and with selfish disregard for their fellow citizens. Fraud against the UI program distracts state workforce agencies from serving individuals in need of assistance, and siphons taxpayer funds from those who are qualified and eligible to receive UI benefits. The Office of Inspector General will continue to work closely with the U.S. Attorney’s Office, the Pennsylvania Department of Labor & Industry, and our many law enforcement partners, to see to it that these criminals are sought out and held accountable,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
U.S. Attorney McSwain and Acting Special Agent-in-Charge Pickle identified the following potentially fraudulent activities for Pennsylvanians to be alert to:
- You have not applied for unemployment benefits but you receive a PA Treasury check or direct deposit or a debit card issued by US Bank that you did not know about or apply for.
- You receive correspondence from the PA Department of Labor & Industry or the PA Department of Treasury about receiving unemployment assistance that you did not apply for.
- Someone comes to your home that you do not know and tells you that their unemployment assistance check or debit card was mistakenly mailed to you.
- Someone asks you to use your bank account to deposit their unemployment assistance.
- Someone, in person or electronically, tells you that you are entitled to unemployment assistance and requests personal identifying information from you.
- Someone offers to help you file for unemployment benefits for a fee.
- Someone claims to be from the government and asks for a fee or personal information to complete your PUA application.
If any of these suspicious activities happen to you, you should not assist or confront the fraudster. End the interaction immediately and report the activity to the Department of Labor & Industry on their Benefits Fraud Form available at dlisecureweb.pa.gov/FRTS/BenefitsFraud.aspx or call the PA Fraud Hotline at 1-800-692-7469.
U.S. Attorney Lelling Announces MOU with Special Inspector General for Pandemic Recovery Brian D. MillerRead the Press Release
BOSTON – United States Attorney Andrew E. Lelling announced today that the U.S. Attorney’s Office for the District of Massachusetts has entered into a Memorandum of Understanding (MOU) with Special Inspector General Brian D. Miller of the Office of the Special Inspector General for Pandemic Recovery (SIGPR), to investigate and prosecute fraud in the distribution of the massive relief package authorized by the CARES Act.
“It’s an unfortunate reality that a certain kind of criminal capitalizes on crises to take advantage of government programs,” said U.S. Attorney Lelling. “Since the outset of this pandemic, my office has worked with our law enforcement partners to disrupt fraudulent schemes targeting the government’s pandemic relief efforts. This partnership with SIGPR marks an important step in enhancing that effort.”
The MOU will allow the U.S. Attorney’s Office and SIGPR to enhance their cooperative efforts in investigating and prosecuting matters involving loans, loan guarantees and other investments made by the Secretary of the Treasury under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, while using criminal and civil resources efficiently.
“I am looking forward to working with United States Attorney Andy Lelling and his team in Boston,” said Special Inspector General Miller. “Identifying fraud and preventing any waste or abuse of the money provided under the CARES Act is a top priority for both of our offices, and we are determined to bring those who attempt to steal from American taxpayers to justice. This partnership, I am confident, will help to ensure the security and efficiency of the CARES Act funds.”
The MOU outlines four objectives: 1) to provide a coordinated response to CARES Act funding fraud, with an emphasis on organized criminal activity, as well as criminal and civil fraud affecting federal money, vulnerable victims, and fraud recidivists; 2) to speed up legal process, case intake, and prosecution of CARES Act-related fraud; 3) to link and associate isolated CARES Act-related complaints with larger schemes and related unlawful activity; and 4) to deter future CARES Act funding fraud by increasing awareness of successful criminal prosecutions and civil enforcement actions against individuals and companies involved in CARES-related financial fraud.
Assistant U.S. Attorneys from the Criminal Division and the Civil Division of the U.S. Attorney’s Office will serve as liaisons to the partnership with SIGPR. The District of Massachusetts will also provide other staffing support for these investigations.
Massachusetts residents who believe they are victims of fraud or other criminal activity related to the pandemic should contact the U.S. Attorney’s Office at [email protected] or call 1-888-221-6023. Members of the public can also contact the FBI’s Internet Crime Complaint Center (IC3) by visiting www.IC3.gov. If you or someone you know are in immediate danger, please call 911.
U.S. Attorney David J. Freed Recognizes the 30th Anniversary of the Americans with Disabilities ActRead the Press Release
Harrisburg - U.S. Attorney David J. Freed recognizes the 30th anniversary of the passage of the Americans with Disabilities Act of 1990 (ADA), which was signed into law by President George H.W. Bush on July 26, 1990. At the signing ceremony, President Bush stated the ADA “signals the end to the unjustified segregation and exclusion of persons with disabilities from the mainstream of American life.”
Thirty years later, the ADA is a transformative law that prohibits discrimination on the basis of disability in places of public accommodation, including all hotels, restaurants, retail stores, theaters, health care facilities, convention centers, parks, and places of recreation (Title III), in all activities of state and local governments (Title II), and in employment (Title I). The ADA empowers the Department of Justice to investigate, litigate, and resolve complaints of discrimination as well as authorizing the Government to conduct compliance reviews of covered entities.
According to United States Attorney David J. Freed, because of measures taken to enforce the ADA, the United States Attorney’s Office has worked with the Commonwealth and local governments, as well as area business to ensure compliance with the antidiscrimination provisions of the ADA. In particular, this Office has taken a leading role in the United States to ensure individuals with disabilities can exercise their right to vote in person at polling places in the Middle District of Pennsylvania.
"We remain committed to eliminating segregation and exclusion of persons with disabilities from the mainstream of American life," said US Attorney Freed. "This Office will continue to investigate and enforce the ADA to ensure that those with disabilities are free from barriers to vote, to attend school, to visit a place of public accommodation, and to participate in the democratic process at state and local government buildings.”
For more information about the ADA, please visit www.ADA.gov. Anyone who has experienced discrimination in violation of the ADA, should contact the Civil Rights coordinator of the U.S. Attorney’s Office for the Middle District of Pennsylvania by calling 717-614-4911 or emailing [email protected].
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U.s. Attorney John Anderson Appoints Denise Billy as the Missing and Murdered Indigenous Persons Coordinator for the District of New MexicoRead the Press Release
ALBUQERQUE, N.M. - U.S. Attorney John Anderson announced today the appointment of Denise Billy to serve as the Missing and Murdered Indigenous Persons (MMIP) Coordinator for the District of New Mexico. Ms. Billy will be the first MMIP Coordinator under a new Department of Justice (DOJ) initiative.
As the MMIP coordinator, Ms. Billy will gather reliable data to identify MMIP cases connected to New Mexico’s 22 Tribal Nations. She will also conduct outreach with tribal communities to assist in the creation and implementation of community action plans. Her duties will further include coordinating with tribal, local, state and federal law enforcement to develop protocols and procedures for responding to and addressing MMIP cases. Ms. Billy will serve tribal communities and victims throughout New Mexico and will seek to improve data collection as well as assist our tribal partners and advocacy groups.
“I am delighted that Ms. Billy is joining the U.S. Attorney’s Office as our first MMIP Coordinator,” said U.S. Attorney John C. Anderson. “Ms. Billy served in many law enforcement capacities for years, which I believe will suit her well in this new position. Developing national and local protocols to address the MMIP crisis is a priority for the Department of Justice and for the U.S. Attorney’s Office here in New Mexico. I have every confidence that Ms. Billy will make valuable contributions to this effort.”
“I am honored and delighted to be chosen to serve as the MMIP Coordinator for the District of New Mexico,” said Ms. Billy. “I look forward to continuing to serve tribal communities here in the heart of Indian Country. This issue is of utmost importance to me and to our Tribal Nations.”
“We are sad that she will be leaving the department, as she has been a valuable asset throughout her work here, but she is ideally qualified for this opportunity,” said Chief Sylvester Stanley of the Isleta Police Department. “While she is leaving as an employee, we are pleased that she will still be assisting us on several issues from her new position. I am confident that she will be an outstanding addition to the Office of the U.S. Attorney.”
Prior to joining the U.S. Attorney’s Office, Ms. Billy served as a Criminal Investigator for the Isleta Pueblo Department of Criminal Investigations. She has also served the Navajo Nation as a Patrol Officer and a Criminal Investigator. She has a bachelor’s degree from the University of Phoenix and is also working on a Master’s Degree in Law and Indigenous People’s Law from the University of Oklahoma. Ms. Billy is a member of the Navajo Nation.
On November 22, 2019, Attorney General William Barr launched a national strategy to address missing and murdered Native Americans. When establishing the MMIP Initiative, DOJ made an initial investment of $1.5 million to hire MMIP coordinators to serve with U.S. Attorneys’ Offices in 11 states, including New Mexico.
The strategy also calls for the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis and training to support local response efforts.
Two Men Charged in Violent KidnappingRead the Press Release
SPRINGFIELD, Mo. – Two men were charged in federal court today for kidnapping a woman who was rescued from her attackers at a Neosho, Missouri, hotel room.
Freddie Lewis Tilton, 47, of Joplin, Missouri, and Alvin Dale Boyer, 35, of Rogers, Arkansas, were charged in a criminal complaint filed in the U.S. District Court in Springfield, Mo. Tilton was arrested at a Joplin residence today. He was taken into custody after shooting at Newton County Sheriff’s deputies who were executing a state search warrant in an unrelated case. Officers responded with tear gas and there were no injuries.
Tilton has an initial court appearance on Wednesday, July 29. He remains in federal custody pending a detention hearing, which has not yet been scheduled. Boyer remains a fugitive.
Today’s federal criminal complaint alleges that Tilton and Boyer kidnapped the victim, identified in court documents as “S.T.,” on July 19, 2020.
According to an affidavit filed in support of the federal criminal complaint, an employee at Boonslick Lodge in Neosho, Missouri, called police at approximately 11:50 p.m. on July 19, 2020, to report that a woman was being choked and dragged into a room. A police officer knocked on the door of the room, and S.T., bloody and injured, opened the door and ran out of the room. Tilton had climbed out the back window and escaped.
S.T. told investigators she had arrived at the hotel to meet Boyer (who had rented the room) but found Tilton waiting for her. S.T. had separated from Tilton and had an order of protection against him. When she found Tilton in the room, she said, she tried to leave but was dragged back in by Tilton. She had a Walther 9mm handgun in her waistband but lost it during the struggle. Tilton picked up the handgun and used it to strike her. At one point, S.T. made it to the door but was dragged back inside by Tilton. Tilton had the handgun with him when he climbed out the hotel room window. Tilton attempted to climb down a vertical rain gutter, the affidavit says, but fell to the ground as the guttering broke then ran away.
Officers searched the hotel room and found numerous indications that a violent, physical struggle
had taken place inside the room, according to the affidavit, in addition to blood on the room floor and door. Inside the hotel room, officers found a chair with rope and zip ties attached, more nylon rope and zip ties, duct tape, a pair of pliers, a blowtorch and lighter fluid, drop cloths, a Taurus 9mm handgun, and a Kimber .223-caliber semi-automatic rifle.S.T. was transported to a hospital for treatment of her injuries.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Neosho, Mo., Police Department, the Newton County, Mo., Sheriff’s Department, and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Texas Man Sentenced to 12 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Shane Ellis Krum, age 37, of Gilmer, Texas, was sentenced to 144 months in federal prison followed by four years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
On or about December 26, 2017, in Hot Springs, Arkansas, a Garland County Sheriff’s Deputy conducted a traffic stop on a brown sedan for a traffic violation. As the vehicle stopped, the driver, later identified as Krum, got out and walked to a fence on the side of the road. Krum lit a cigarette, then turned and walked back to the vehicle and sat down in the driver’s seat. After learning that Krum had a search wavier on file, a search of his vehicle was conducted. During the search, Deputies located a loaded semi-automatic handgun under the driver’s seat. Deputies also searched the area Krum had been standing and located a backpack that contained a plastic bag of suspected methamphetamine, a plastic bag of suspected marijuana and drug paraphernalia.
The suspected methamphetamine was sent to the Arkansas Crime Laboratory where it was determined to be 50.7 grams of actual methamphetamine.
Krum was indicted by a federal grand jury in September of 2018, and entered a guilty plea in October of 2019.
This case was investigated by the Garland County Sheriff’s Department. Assistant United States Attorney’s Bryan Achorn and Candace Taylor prosecuted the case for the Western District of Arkansas.
Syracuse Man Sentenced to 60 Months as Felon Possessing FirearmsRead the Press Release
SYRACUSE, NEW YORK – Luis Matos, age 31, of Syracuse, was sentenced today to serve 60 months in federal prison for his possession of four (4) firearms as a convicted felon, announced United States Attorney Grant C. Jaquith, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Kenton Buckner, City of Syracuse Police Department (SPD). In addition to the 60-month prison sentence imposed today, Matos was also ordered to serve a three-year term of supervised release when he is released from incarceration.
In pleading guilty previously, Matos admitted that he was a convicted felon when he possessed three (3) rifles sold during an undercover ATF and SPD firearms purchase operation in Solvay, New York, on December 19, 2018. He further admitted that he possessed a fourth rifle sold during a second undercover purchase in Syracuse on January 14, 2019. Luis Matos was a previously convicted felon (Criminal Possession of a Controlled Substance in the Third Degree, a class B New York State felony from July 2018) and was on probation at the time he possessed the firearms in this case.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Syracuse Police Department-Special Investigations Division (SPD-SID). The case was prosecuted by Assistant U.S. Attorney Richard Southwick as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime
Spectro Scientific agrees to pay $1M to settle allegations related to Air Force’s Small Business Innovation and Research programRead the Press Release
DAYTON – The United States entered into a $1 million Settlement Agreement with a global oil and fuel analysis instruments company that was awarded three contracts through the United States Air Force Small Business Innovation Research (SBIR) program.
Spectro Scientific (Spectro) will pay $1,050,957 to resolve allegations that it violated the False Claims Act through its participation in the United States Air Force SBIR program based at Wright-Patterson AFB.
SBIR seeks to ensure that small businesses without access to capital receive an opportunity to develop new technology through federally-funded research and development. SBIR funding fosters small businesses with innovative ideas and provides the chance to grow their technology for future commercialization.
The SBIR program is reserved for small businesses with less than 500 employees and must not be majority owned by a single venture capital company.
Spectro repeatedly self-certified that it met the small business size requirements for eligibility to receive SBIR funding. Based on certain disclosures that Spectro later made about its ownership, the government conducted an investigation led by the Air Force Office of Special Investigations (AFOSI) into Spectro’s eligibility for its SBIR award.
The United States contends that Spectro became ineligible to participate in the SBIR program by virtue of an acquisition where it became majority owned by a single venture capital company at the time it was awarded and performed certain phases of the SBIR contract.
Specifically, Spectro was awarded contracts in 2012, 2014 and 2017 while the company was ineligible. The Massachusetts-based entity received funding from the Air Force Research Laboratory at Wright-Patterson AFB for exploratory applications of advanced oil analysis technology for use in the field.
“This office is committed to protecting taxpayer dollars and safeguarding the integrity of these programs so eligible companies receive a fair opportunity to contract with the Air Force,” said U.S. Attorney David M. DeVillers.
“One of the top investigative priorities of the Air Force Office of Special Investigations is to ensure the integrity of the Department of the Air Force’s procurement system, to include research and development programs,” said Paul W. Wachsmuth, Director, OSI Office of Procurement Fraud Investigations. “Any small business who seeks to participate in the SBIR program must do so with integrity.”
DeVillers was joined by the AFOSI Procurement Fraud Detachment 4 at Wright-Patterson AFB, and the Procurement Fraud Division of the Air Force Material Command Law Office, in announcing the settlement. Assistant United States Attorneys Brandi M. Stewart and Andrew M. Malek represented the United States in this matter.
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South Carolina Man Pleads Guilty to Federal Charges Relating to a String of Armed Carjacking OffensesRead the Press Release
Baltimore, Maryland – Quention Price, age 27, of Columbia, South Carolina, pleaded guilty today to two federal carjacking charges; to discharging a weapon during a crime of violence; and to using, carrying, and brandishing a firearm during a crime of violence, in connection with a carjacking and attempted carjacking committed on June 15, 2019, in the Inner Harbor area of downtown Baltimore.
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; and Commissioner Michael Harrison of the Baltimore Police Department.
United States Attorney Robert K. Hur stated, “We are committed to working with our law enforcement partners to get guns out of the hands of violent criminals and off of our streets. If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to his guilty plea, on the evening of June 15, 2019, Price stood in the middle of the street in Baltimore’s Inner Harbor region in front of a Honda Civic, forcing the vehicle to stop. Price approached the driver’s side door, telling the driver to “open the door” while pulling on the door handle. When the driver refused, Price became frustrated, walked to the front of the car, pulled out a handgun, and discharged two bullets in an attempt to take the vehicle. One of the bullets went through the front windshield of the car and lodged in the empty front passenger seat. The driver and his backseat passenger were able to get away in the car, successfully avoiding Price, who fled the scene.
As detailed in his plea agreement, while fleeing from the first carjacking, Price fired his weapon at a passing Subaru Outback station wagon. The bullet went through the hood of the vehicle, just below the front windshield. Price was then captured on surveillance video walking into the middle of Light Street where he approached multiple cars and brandished his gun while pulling on the car door handles. At approximately 11:00 p.m. Price approached a BMW 325i, climbed onto the hood of the vehicle and began striking the windshield with his gun, cracking the glass and punching a hole, all while screaming at the driver to “get out of the car.” Price then walked to the driver’s side, struck the driver in the face with the butt of his pistol through an open window, and pulled the victim out of the vehicle by her hair. After the driver and passenger had exited the car, Price drove the BMW northbound on Light Street towards the Inner Harbor, crashing the car a few blocks away. As a Baltimore Police officer responded, Price fell out of the car and moved toward the trunk, where he was immediately arrested. Officers recovered the gun, a .357 revolver, from behind the BMW, where Price was found when police arrived on the scene. The gun matched the description provided by the driver of the BMW and contained three spent shell casings in the cylinder, indicating that it had been fired three times. The driver and passenger of the BMW were brought to the scene and identified Price as the carjacker. Price was also subsequently heard on recorded jail calls admitting to carjacking vehicles and to firing his gun at the vehicles and their passengers.
Price and the government have agreed that, if the Court accepts the plea agreement, Price will be sentenced to 20 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for September 24, 2020 at 9:30 a.m.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael Goldsticker, who is prosecuting the case.
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Sex Traffickers Sentenced to Combined 81 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Six defendants have been sentenced to a combined 81 years in prison for their respective roles in the sex trafficking of a minor victim and an adult victim at multiple locations in Northern Virginia and Maryland in 2018 and 2019.
“Sex traffickers often prey upon the most vulnerable victims in our society and intentionally exploit those vulnerabilities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The damage inflicted upon children through this form of sexual exploitation is immeasurable. The victim—survivors are subject to multiple forms of mental, physical, and emotional trauma, the scars of which never fully fade. The minor victim in this case was particularly vulnerable, and her traffickers used fear, coercion, and control to abuse and exploit her entire being for profit. We will remain dogged in our pursuit of all those who perpetrate this modern day slavery.”
From April 2018 through Jan. 14, 2019, five of the defendants sex trafficked a minor victim throughout Virginia and Maryland. The minor was housed at multiple hotels in Alexandria and Fairfax for the purposes of commercial sex, and the defendants advertised the minor victim through various means, including prostitution advertisements online on Bedpage.com, CityXGuide.com, and Backpage.com (shortly before it was seized by the federal government). They also advertised the minor victim through the communications platform WhatsApp by sending her picture out to a list-serve of known customers. As a form of grooming, the male defendants engaged in sexual intercourse with the minor. As a form of enticement, the defendants permitted the minor to keep about 50 percent of the commercial sex proceeds while the defendants collected the remaining 50 percent.
“These sentencings underscore the FBI’s commitment to holding accountable those who prey upon innocent victims for their own greed,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “In full collaboration with our task force partners throughout the area, the FBI will continue to work tirelessly to stop criminals such as these, and prevent them from abusing children and vulnerable individuals while profiting from illicit acts. The FBI will remain focused on recovering victims and arresting the sex traffickers who exploit them, and we will not stop working to remove these offenders from the streets of our communities.”“Human traffickers treat human life like property, exploiting and extorting for profit,” said Raymond Villanueva, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C. “This case shows the callous greed traffickers exhibit, ensnaring children and forcing them into sexual exploitation. HSI is committed to investigating and seeking prosecution of human traffickers alongside our federal and local partners.”
“The actions of these defendants are quite frankly reprehensible as they've purposely preyed upon our most vulnerable and impressionable victims for far too long,” said Edwin C. Roessler Jr., Chief of Fairfax County Police. “From the onset of this investigation, federal prosecutors and agents teamed up with Fairfax County officers and detectives to methodically pursue justice for these young victims and worked to ensure no other families could be torn apart by the unspeakable conduct of our defendants.”
“The successful conclusion of this case was due, in part, to the collaborative efforts of law enforcement and prosecutors, in addition to, the courageousness of the victims,” said Jarad L. Phelps, Acting Chief of Police for Prince William County. “Sex trafficking targets our most vulnerable community members and it’s upon us all to report and investigate these matters efficiently to ensure the victims receive justice and begin the healing process. With each prosecution, a message is sent to sex traffickers that this type of exploitation will not be tolerated. We encourage any victim of trafficking to please come forward and take the brave step to stop this abuse.”
In January 2019, members of the conspiracy, including defendant Fatima Ventura Perez, recruited an adult victim to fly from Miami to Reagan National Airport to work in a brothel apartment in Laurel, Maryland. Ventura-Perez also sent out advertisements of the adult victim and the minor victim on her commercial sex customer listserve via WhatsApp, resulting in numerous men arriving at the apartment to have sex, with each victim being sexually exploited by over 50 men each. The minor victim and the adult victim were sold for sex out of that brothel apartment. On Jan. 14, 2019, law enforcement recovered both victims at the brothel apartment, which was leased by Ventura Perez.
Name, Age
Hometown
Charge(s)
Sentence
Elvis Pichardo Hernandez
Dominican Republic / Capitol Heights, MD
Sex trafficking of a minor
13 years
Jose David Reyes-Gonzalez
Dominican Republic / Laurel, MD
Sex trafficking of a minor
14 years
Daniel Palacios Rodriguez
Mexico / Greenbelt, MD
Two counts of sex trafficking of a minor
16 years
Alexandra Guzman-Beato
Dominican Republic / Silver Spring, MD
Sex trafficking of a minor
16 years
Juan Rufino Martinez-Dominguez
Dominican Republic / Newark, NJ
Sex trafficking of a minor
15 1/2 years
Fatima Ventura Perez
Dominican Republic / College Point, NY
Coercion and enticement
6 1/2 years
Assistant U.S. Attorney Maureen C. Cain prosecuted the case along with Special Assistant U.S. Attorney Gwendelynn Bills of the Justice Department’s Child Exploitation and Obscenity Section.
Significant assistance was provided by the Prince George’s County Police Department, Montgomery County Police Department, New York Police Department, Newark Police Department, FBI Baltimore Field Office, FBI New York Field Office, and FBI Newark Field Office.
This case was investigated by the FBI’s Washington Field Office’s Child Exploitation and Human Trafficking Task Force, composed of FBI agents and local, state and federal partners.
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. 1:19-cr-218.
Seventh Conspirator Pleads Guilty to Participation in the DC Solar Ponzi Scheme Involving $2.5B in Transactions and Nearly $1B in LossRead the Press Release
SACRAMENTO, Calif. — Alan Hansen, 49, of Vacaville, pleaded guilty Tuesday to his participation in a massive fraud scheme through DC Solar, a solar energy company in Benicia formerly owned and operated by Jeff and Paulette Carpoff, that defrauded investors of approximately $1 billion, U.S. Attorney McGregor W. Scott announced.
Those losses resulted from investment transactions in solar energy hardware valued at approximately $2.5 billion. Hansen also pleaded guilty to aiding and abetting money laundering. Hansen is the seventh person to plead guilty to federal criminal charges relating to the fraud scheme since October 2019. The Carpoffs pleaded guilty to their roles in the fraud conspiracy and other charges in January 2020.
According to court documents, between 2011 and 2018, DC Solar manufactured mobile solar generator units (MSG), solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the mobile solar generators and claimed that they were used to provide emergency power to cellphone towers and lighting at sporting and other events. The Carpoffs and their co-conspirators solicited investors by claiming that there were favorable federal tax benefits associated with investments in alternative energy. The conspirators pulled off their scheme by selling solar generators that did not exist to investors, making it appear that solar generators existed in locations that they did not, creating false financial statements, and obtaining false lease contracts, among other efforts to conceal the fraud. In reality, at least half of the approximately 17,000 solar generators claimed to have been manufactured by DC Solar did not exist and DC Solar paid early investors with funds contributed by later investors.
According to court documents, Hansen was an employee of a telecom company with which DC Solar had done business and executed certain contracts. In that role, Hansen accepted $1 million from co-conspirators at DC Solar to fraudulently sign a false contract those co‑conspirators later used to induce investments by victims. Thereafter, Hansen took a job at DC Solar at a significant pay increase and left his former employment. Later, as a DC Solar executive, Hansen and a co-conspirator agreed to share $20,000 to sign a false contract related to the earlier agreement, using a fake name. The conspirators also used that false contract to induce an investment by victims. Hansen was paid for signing the first false contract through a series of interstate wire transfers into an account he set up in the name of a consulting company. Hansen knew the money he was paid came from payments by DC Solar investors, and that DC Solar was deceiving them to induce those payments. Nevertheless, Hansen provided a co-conspirator with information to complete those wire transfers, intending to commit money laundering.
Joseph W. Bayliss, 44, of Martinez, and Ronald J. Roach, of Walnut Creek, each pleaded guilty to related charges on Oct. 22, 2019. Robert A. Karmann, 53, of Clayton, pleaded guilty to related charges on Dec. 17, 2019. Ryan Guidry, 53, of Pleasant Hill, pleaded guilty to related charges on Jan. 14. Jeff and Paulette Carpoff pleaded guilty to related charges on Jan. 24 and are scheduled for sentencing on Nov. 10. The investigation into the fraud remains ongoing.
This case is the product of an investigation by the Federal Bureau of Investigation, IRS‑Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorneys André M. Espinosa and Kevin C. Khasigian are prosecuting the case.
Hansen is scheduled to be sentenced by U.S. District Judge John A. Mendez on Nov. 3. Hansen faces a maximum statutory penalty of 15 years in prison. 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.
Seventeen Charged in Multi-State Drug Trafficking Ring in “Operation Clear Cut”Read the Press Release
Jackson, TN – Seventeen individuals have been charged in federal court with operating a multi-state drug trafficking organization in West Tennessee, Arkansas, and Mississippi. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the unsealing of the federal complaint today.
The following individuals were charged with one count of conspiracy to distribute methamphetamine and were arrested during a law enforcement takedown operation this week:
• David Bone, 54, of Dyer County
• Stacey Caksackkar, 52, of Crockett County
• Troy Chew, 45, of Blytheville, Arkansas
• Colby Criswell, 28, of Gibson County
• Thomas Dacus, 43, of Crockett County
• Stacy Edwards, 31, of Dyer County
• Jason Glisson, 42, of Dyer County
• Frederick Johnson, 36, of Meridian, Mississippi
• Crystal Lee, 37, of Crockett County
• Draper Lee, 39, of Crockett County
• Nicholas Grant Mealer, 21, of Crockett County
• Tammy Mealer, 50, of Crockett County
• Madison Middlebrook, 21, of Blytheville, Ark.
• Michael Newson, 35, of Senatobia, Miss.
• Shawn Sherry Overton, 45, of Dyer County
• Shawn Riley, 41, of Dyer County
• Ronald Solomon, 40, of Dyer CountyAdditionally, Draper Lee, Middlebrook, and Solomon were charged with being felons in possession of a firearm. The takedown was part of "Operation Clear Cut," a multi-agency federal task force responsible for curtailing organized crime and narcotics in West Tennessee. According to information from the criminal complaint, the organization was responsible for distributing more than 70 pounds of methamphetamine in West Tennessee and elsewhere. In addition to the seizure of narcotics, law enforcement seized more than $31,000 in U.S. currency and 8 firearms during the course of the investigation.
For count one, the defendants face possible sentences of up to 20 years in federal prison, followed by 6 years supervised release and a fine of $2 million. For those defendants charged with being felons in possession of a firearm, the additional possible sentence is up to 10 years in federal prison, followed by 3 years supervised release and a fine of $250,000. There is no parole in the federal system.
The case will be presented to a federal grand jury at a later date to consider an indictment against the suspects.
U.S. Attorney D. Michael Dunavant said, "West Tennessee is a major logistics hub for the country, and drug trafficking organizations transport and distribute large quantities of drugs into and throughout our communities. We must use every available resource to disrupt and dismantle these conspiracies, and hold them accountable for distributing poisonous illegal drugs that cause addiction, injury, and death. We commend the outstanding investigative work of our federal, state, and local law enforcement partners in this important case involving significant seizures of dangerous narcotics."
"The charges and arrests today were only possible due to the cooperation of local, state, and federal law enforcement agencies working together to identify and target drug traffickers in our ongoing mission to ensure the safety of our communities in the tri-state area," said Acting Special Agent in Charge Jermicha L. Fomby of the Memphis Field Office of the Federal Bureau of Investigation. "The FBI, with our fellow law enforcement partners, are committed to ensuring that there is no safe haven for criminal activity and that those who seek to sell drugs and engage in violence know that we are coming for them."
This case was investigated by the FBI Memphis Safe Streets Task Force, Jackson Resident Agency, Dyersburg Police Department, Tennessee Bureau of Investigation (TBI), and the Crockett County Sheriff’s Office. The Lexington Police Department, Tennessee Highway Patrol, 24th Judicial District Drug Task Force, Jackson Police Department, Selmer Police Department, Bolivar Police Department, Hardeman County Sheriff’s Office, Milan Police Department, and the West Tennessee Drug Task Force also participated in the arrest operation.
The charges and allegations contained in the complaint are merely accusations of criminal conduct, not evidence. Each charged defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt, and convicted through due process of law.
Assistant U.S. Attorney Matt Wilson is prosecuting this case on behalf of the government.
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Securities Trader Admits Market Manipulation Scheme that Netted More Than $17 Million in Illicit ProfitsRead the Press Release
NEWARK, N.J. – A New Jersey-based securities trader today admitted orchestrating a massive, long-running market manipulation scheme and tax fraud that netted more than $17 million in illegal profits between 2014 and 2016, U.S. Attorney Craig Carpenito announced.
Joseph Taub, 41, of Clifton, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to counts four and five of a superseding indictment charging him with securities fraud and conspiracy to defraud the United States.
According to documents filed in this case and statements made in court:
From 2014 to 2016, Taub and others conspired to manipulate the securities prices of numerous public companies by coordinating trading in dozens of brokerage accounts he secretly controlled. Taub used “straw accounts” that were held in the names of others to conduct much of his trading. Taub funded many of these straw accounts and used the straw account holders to conceal the scheme from regulators and law enforcement.
To manipulate securities prices, Taub engaged repeatedly in a series of contemporaneous transactions designed to artificially influence the market price of the securities of various publicly traded companies, and induce other market participants to trade in those securities based on the false impression that there was real market interest in the securities, using Run Based Manipulation and Order Based Manipulation.
Run Based Manipulation is a type of securities manipulation in which a manipulator takes either a long or a short position in a security, enters orders or trades in a manner designed to inflate or deflate the price of the security while attracting others to trade the security and finally reverse their position at the inflated or deflated price. A common feature of Run Based Manipulation is that the manipulator profits directly from the manipulated market by exploiting investors who bought at inflated prices or sold at depressed prices. Order Based Manipulation is a type of securities manipulation involving orders, sometimes but not always accompanied by trades, that are intended to give other market participants a false signal about the security’s demand or supply.
Taub also admitted defrauding the United States by hiding from the brokerage firms and the IRS the identities of those who actually controlled the straw accounts and who reaped the majority of the profits from the scheme. As a result, the profits from the straw accounts were taxed at the lower tax rates applicable to the straw account holders instead of the higher tax rates applicable to Taub, which allowed Taub to avoid $394,424 in taxes.
The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine. The conspiracy to defraud the United States count carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Under the terms of the plea agreement, if accepted by the court, Taub will receive a sentence of 18 months in prison, will forfeit $17.1 million, and will be ordered to pay restitution in the amount of $394,424 to the IRS. Sentencing is scheduled for Dec. 1, 2020.
Sean Greenwald pleaded guilty to his role in the scheme on Feb. 21, 2018 and awaits sentencing.
The Department of Justice has also reached a settlement of its civil forfeiture case against assets acquired by Taub and his family using proceeds of the market manipulation scheme. Under the terms of the settlement, Taub and his family members agreed to forfeit all assets subject to the pending forfeiture complaint in which they have a potential interest. Taub is also required to cooperate with and assist the Justice Department in the orderly transfer, management and disposition of the relevant assets.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Joe Denahan in Newark, special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation. He also thanked the Securities and Exchange Commission’s New York Regional Office, under the direction of Marc P. Berger, for its assistance in this investigation.
The government is represented by Criminal Division Deputy Chief Daniel V. Shapiro; Senior Trial Counsel Catherine R. Murphy and Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark; and Unit Chief Sarah Devlin, of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit.
Rochester Man Who Fled Police with A Gun and Drugs Going to Prison for Five YearsRead 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 Timothy Feliciano, 34, of Rochester, NY, who was convicted of possession of a firearm in furtherance of drug trafficking, and possessing with intent to distribute crack cocaine, was sentenced to serve 60 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that on January 11, 2017, the defendant was apprehended after a foot chase with police on Thomas Street in Rochester. During the chase, Feliciano discarded his jackets. Officers recovered the jackets and found a .38 caliber revolver, approximately 1.7 grams of crack cocaine, a razor, small plastic baggies for packaging, and nine plastic vials of marijuana for sale, in the pockets.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.# # # #
Repeat Sex Offender Sentenced to 60 Years for Sexually Exploiting ChildrenRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Todd Joseph Simmerman (30, Titusville) to 60 years in federal prison for sexually exploiting two minors and committing the offenses while required to register as a sex offender. The court also ordered Simmerman to forfeit the electronic device he had used to commit the offenses.
Simmerman had pleaded guilty on January 27, 2020.
According to court documents, in 2013, Simmerman pleaded guilty to traveling to meet a child to engage in unlawful sexual conduct, after using a computer to lure a child, in violation of Florida law. As part of his sentence, he was required to register as a sex offender. Six months after completing his state sentence, Simmerman met a 15-year-old on Snapchat and enticed the child to engage in sexual activity. The child victim introduced Simmerman to a 15-year-old friend and Simmerman also preyed upon that child. Simmerman used his cellphone to record his sexually abusive encounters with both victims, which occurred over a period of about five months, until his arrest.
“This repeated child predator will spend the rest of his natural life in prison, thanks to HSI special agents and our partners at the Brevard County Sheriff’s Office,” said HSI Orlando Assistant Special Agent in Charge David J. Pezzutti. “While we cannot undo the damage of his horrible crimes, we hope that this sentence helps with the healing process for his victim.”
This case was investigated by Homeland Security Investigations and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Karen L. Gable.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Portland Man Charged in May 29, 2020 Arson at Justice CenterRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Edward Thomas Schinzing, 32, has been charged by criminal complaint with using fire to maliciously damage or destroy the Justice Center in downtown Portland on May 29, 2020.
Multnomah County and the City of Portland own the Justice Center building located at 1120 SW 3rd Avenue in Portland. The facility houses the Multnomah County Detention Center jail and the Portland Police Bureau headquarters.
According to court documents, Schinzing was marching with a group of protestors when he arrived at the front of the Justice Center shortly before 11:00 p.m. on May 29, 2020. A few minutes later, several people broke windows near the northwest corner of the Justice Center where the Corrections Records Office is located. They subsequently entered the secured office through the broken windows.
Three civilian Multnomah County employees were working inside the Corrections Records Office at the time and fled for safety as the windows were broken. Based on a preliminary review of publicly-available videos from YouTube, Twitter, surveillance cameras, and still photos posted online, about 30 individuals entered the Justice Center through the broken windows. The individuals spray-painted portions of the office; damaged computer and other office equipment, furniture, and interior windows; and started fires.
Among those who entered the Justice Center, Schinzing was identified by a comparison with a jail booking photo and a distinctive tattoo of his last name across his upper back. Schinzing spread a fire that started near the front of the office by lighting additional papers on fire and moving them into a drawer of a separate cubicle.
At about 11:08 p.m., the building’s fire sprinkler system activated and extinguished the fires. At about the same time, law enforcement officers secured that portion of the Justice Center. The Multnomah County Detention Center housed approximately 289 inmates at the time.
Schinzing made his first appearance in federal court today before a U.S. Magistrate Judge and was ordered detained pending further court proceedings. Arson is punishable by up to 20 years in prison with a mandatory minimum sentence of 5 years.
This case is being jointly investigated by the FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); U.S. Marshals Service; Portland Police Bureau; Multnomah County Sheriff’s Office; and Multnomah County District Attorney’s Office. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Criminal complaints are only accusations of a crime, and a defendant is presumed innocent unless and until proven guilty.
Schinzing marching with a crowd of demonstrators across the Burnside Bridge in Portland on May 29, 2020 Schinzing marching with a crowd of demonstrators in downtown Portland on May 29, 2020 Schinzing inside the Corrections Records Office on May 29, 2020 before the fire is ignited Close up of Schinzing inside the Corrections Records Office on May 29, 2020 before the fire is ignited Schinzing spreading the fire in the Corrections Records Office by moving flaming papers into separate cubicles on May 29, 2020 A demonstrator photographs the fire in the Corrections Records Office on May 29, 2020 Damage to the Corrections Records Office from fire on May 29, 2020 Damage to the Corrections Records Office from fire on May 29, 2020 Damage to the Corrections Records Office from fire on May 29, 2020 Damage to the Corrections Records Office from fire on May 29, 2020Pharmaceutical Company Agrees to Pay $3.5 Million to Resolve Allegations of Violating False Claims ActRead the Press Release
NEWARK, N.J. – Pacira Pharmaceuticals Inc. will pay $3.5 million to resolve allegations that it paid kickbacks to doctors in the form of bogus research grants to induce them to prescribe its analgesic EXPAREL, Attorney for the United States Rachael A. Honig announced today. The allegations arose from a whistleblower suit filed under the False Claims Act.
“Pacira tried to accelerate sales of its EXPAREL product through an illegal kickback scheme,” Attorney for the United States Honig said. “Pharmaceutical companies may not entice doctors to use their products by offering research grants in return for sales. Illegal inducements can distort medical decision-making, lead to the use of overpriced drugs, and drive up health care costs for everyone.”
“The payment of kickbacks or bribes in exchange for phony research and other grants, robs the government and every American,” FBI-Newark Acting Special Agent in Charge Joe Denahan said. “Today’s agreement by Pacira Pharmaceuticals Inc., to pay $3.5 million, should send a strong message to anyone thinking about participating in this type of illegal activity. The FBI remains committed to combating these types of schemes and bringing these perpetrators to justice.”
“Offering phony research grants in order to increase sales and fatten the bottom line is illegal and can be detrimental to the medical decision-making process,” Scott J. Lampert, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services, said. “We will continue to work with our law enforcement partners to safeguard our government health care programs and the taxpayers picking up the bill.”
According to documents filed in this case and the contentions of the United States contained in the settlement agreement:
From Dec. 1, 2012, through April 30, 2015, Pacira paid disguised kickbacks in the form of research and other grants to healthcare providers and institutions. Pacira intended these payments to induce sales of its newly-launched local analgesic, EXPAREL, to the targeted physicians and their respective hospitals. The research grants in question were typically initiated by Pacira sales representatives or marketing executives, who discussed internally their sales goals in connection with the grant. Pacira also required that EXPAREL be placed on formulary at the physician’s institution before awarding any research grant.
After awarding the grant money, Pacira expressed little interest in the proposed research. Pacira did not contractually require that the grant recipient adhere to the proposed research topic or achieve certain milestones before payment. In many cases, Pacira did not follow up with the grant recipient to ensure that the work was being performed, and in some cases, the grant recipient did no work at all. Pacira did not document why it needed the research or the fair market value of the proposal. Finally, Pacira executives coached grant recipients and other employees on how to avoid internal scrutiny of the grant payments.
Medicare and Medicaid do not pay for claims that include products tainted by illegal kickbacks. Pacira caused the submission of false claims by using these research grants to induce sales of EXPAREL, which it knew would be used in procedures reimbursed by Medicare and Medicaid.
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. As part of today’s resolution, the whistleblower—a pharmacist who brought the misconduct to the government’s attention—will receive approximately $520,000 of the recovery from the federal share of the settlement, plus approximately $118,000 from the state share of the settlement.
Attorney for the United States Honig credited special agents of the FBI, under the direction of Acting Special Agent in Charge Denahan in Newark; special agents of the HHS-OIG, under the direction of Special Agent in Charge Lampert, as well as special agents with the U.S. Attorney’s Office in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Andrew A. Caffrey, III, of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.
The case is captioned United States ex rel. Schneider v. Pacira Pharmaceuticals, Inc. (D.N.J.). The claims settled by this agreement are allegations only, and there have been no admissions of liability.
Orange County Heroin Dealer Sentenced to PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell today sentenced Eric Manuel Robles Rivera (45, Orlando) to 33 months in federal prison for possessing heroin with the intent to distribute it. Robles Rivera had pleaded guilty on April 23, 2020.
According to court documents, Robles Rivera was part of a drug trafficking organization (“DTO”) that was distributing heroin and other controlled substances in Orange County. During its investigation of the DTO, the Federal Bureau of Investigation learned that Robles Rivera kept heroin at a storage unit in a facility in Kissimmee, and that he had accessed the storage unit almost daily between June 2016 and March 2017. On March 9, 2017, investigators executed search warrants at locations associated with members of the DTO. Inside the storage unit that had been rented by Robles Rivera, investigators found more than 60 grams of heroin packaged in dozens of baggies.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. This investigation was conducted by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Tampa Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Michael Sinacore.
Orange County Felon Sentenced for Federal Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A 31-year-old Vidor, Texas man has been sentenced for federal violations in the Eastern District of Texas announced U.S. Attorney Stephen J. Cox today.
Taylor Graham Cozart pleaded guilty on Feb. 10, 2020, to being a felon in possession of a firearm and was sentenced to 100 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on July 30, 2019, law enforcement officers responded to a motorcycle accident on Interstate Highway 10 in Orange County, Texas. They determined that Cozart was the driver of the motorcycle, which was stolen, and after he was transported to a nearby hospital and the scene was cleared, officers located a backpack affixed to the motorcycle. The backpack contained a pistol, ammunition, $3,000 cash, methamphetamine, Xanax and Hydrocodone pills. Law enforcement also learned that Cozart was a convicted felon with three prior felony drug convictions. As a convicted felon, Cozart is prohibited from owning or possessing firearms or ammunition.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Texas Department of Public Safety, the Orange County Sheriff’s Office and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
North Dakota Woman Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Fort Yates, North Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on July 27, 2020, by U.S. District Judge Charles B. Kornmann.
Shanna Michelle Pleets, age 41, was sentenced to 60 months in federal prison, followed by 4 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Pleets was indicted by a federal grand jury on July 16, 2019. She pled guilty on April 16, 2020.
The conviction stemmed from a conspiracy in 2018, wherein Pleets 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.
Pleets was immediately remanded to the custody of the U.S. Marshals Service.
Nineteen indicted in cartel-connected drug trafficking conspiracyRead the Press Release
Seattle - Fifteen people were arrested today throughout the Puget Sound region and in California following an 18-month investigation of a drug trafficking organization tied to the CJNG cartel in Mexico, announced U.S. Attorney Brian T. Moran. The defendants arrested today made their initial appearance in U.S. District Court in Seattle.
“This cartel is known as a violent and prolific drug trafficking group. I commend the DEA-led task force for taking a bite out of its drug distribution and money laundering networks,” said U.S. Attorney Brian Moran. “Over the course of this investigation law enforcement seized more than 100 pounds of methamphetamine and ten pounds of heroin, and agents and officers continued their work despite the challenges posed by the COVID-19 pandemic.”
“The South Sound Streets are safer today with the removal of this violent criminal ring that pushed heroin, methamphetamine and fentanyl into our communities,” said DEA Special Agent in Charge Keith Weis. “Without question the critical partnership between local, state and federal law enforcement agencies made today’s effort possible and ultimately benefits the public’s safety.”
“The results of this operation are a clear example of what can be achieved through HSI’s partnership with state, local and federal law enforcement agencies,” said Eben Roberts, acting special agent in charge HSI Seattle.” I commend all of the agents, officers and analysts involved in this operation. Their dedication resulted in the removal of massive amounts of narcotics from our community, the disruption of an extremely dangerous supply chain and undoubtedly saved numerous lives.”
The indictment charges conspiracy, possession, attempted possession and distribution of methamphetamine and heroin, as well as a money laundering conspiracy. These are the nineteen defendants named in the grand jury indictment:
Alan GOMEZ MARENTES; 35, Los Angeles, California, and Tukwila, Washington
Juan Antonio GONZALEZ CARRILLO; 31, Gardena, California
Luis MAGANA RAMIREZ; 32, Fife, Washington
Jose Elias BARBOSA CEBALLOS; 35, Port Orchard, Washington
Jose Daniel ESPINOZA; 33, Renton, Washington
Estefhany COREA MENDOZA; 27, Burien, Washington
Adrian IZAZAGA MARTINEZ; 29, Kent, Washington
Jorge MONDRAGON; 24, Kent, Washington
Benjamin FUENTES; 28, Renton, Washington
Luis ZAVALZA SANCHEZ; 31, Seattle, Washington
Alysha Marie JONES; 27, Shelton, Washington
Armando FIERRO PONCE; 26, Renton, Washington
Amanda MEYER; 35, Kent, Washington
Michael WOOD; 45, Port Orchard, Washington
Luis CASTILLO BARRAGAN; 32, Kent, Washington
Efrain LUNA RODRIGUEZ; 21, Maywood, California
Julian PINEDA CASILLAS; 33, Victorville, California
Blanca MEDINA; 36, Los Angeles, California, and Tukwila, Washington
Ruth GOMEZ MARENTES; 34, Kent, Washington
In all, fifteen search warrants were served in the Puget Sound region, and four were served today in California. Today alone, agents seized: twenty pounds of methamphetamine, heroin, cocaine, 200 fentanyl pills, nine firearms, and more than $250,000 in cash. Previously, during the investigation, law enforcement seized more than 100 pounds of meth, various quantities of cocaine, heroin, 1500 fentanyl pills, and six firearms.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The investigation was conducted by the U.S. Drug Enforcement Administration’s (DEA) Tacoma Resident Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations, SeaTac Police Department, Thurston County Narcotics Team (TNT), the Federal Bureau of Investigation, and the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF). In addition, to the agencies listed above, these law enforcement agencies assisted in the investigation and/or with arrests and search warrants executed today: DEA Seattle Special Response Team, Valley Narcotics Enforcement Team, Valley SWAT, Pierce County SWAT, Pierce County Sheriff’s Office, Joint Narcotics Enforcement Team, Bremerton Special Operations Group, King County SWAT, King County Sheriff’s Office Metro, Burien Police Department, Auburn Special Investigations Unit, FBI Seattle, FBI SWAT, FBI Portland Tactical and TNET, which is comprised of Tacoma, Lakewood, Auburn, Kent, Bonney Lake and Puyallup Police Departments, the Pierce County Sheriff’s Office and the Washington State Department of Corrections. The investigation was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA).
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and Marci Ellsworth.
Limited images from this investigation are available from DEA Public Affairs Officer Jodie Underwood at [email protected].
gomez_marentes_et_al_indictment.pdfNew Haven Crack Distributor Sentenced to 5 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERIN JONES, also known as “Cree,” 43, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, law enforcement identified Jones and his girlfriend, Bianca Daniels, as crack cocaine suppliers in the Farnham Court area of New Haven. In November 2018 and March 2019, investigators made controlled purchases of crack from Jones and Daniels.
Jones and Daniels were arrested on related state charges on March 6, 2019. A search of their residence on that date revealed approximately 29 grams of crack and approximately 52 grams of powder cocaine.
On July 16, 2019, Jones pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base (“crack”).
Jones, who is released on a $50,000 bond, is required to report to prison on October 26.
Daniels pleaded guilty on July 15, 2019, and awaits sentencing.
This matter has been investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Maria del Pilar Gonzalez and Sarah P. Karwan.
Mitchell Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Mitchell, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
John Willard Arcoren, III, age 39, was indicted on July 16, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 27, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 14, 2020, Arcoren did forcibly assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved physical contact.
The charge is merely an accusation and Arcoren is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Arcoren was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Man Found Not Guilty of Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man was acquitted of Assault With a Dangerous Weapon and Assault Resulting In Serious Bodily Injury as a result of a federal jury trial in Pierre, South Dakota, beginning on Tuesday, July 21, 2020, and concluding on Wednesday, July 22, 2020.
Lorenzo Brave Hawk, Sr., age 35, was indicted by a federal grand jury on July 11, 2019.
The charges alleged that on November 9, 2018, Brave Hawk assaulted an individual with a metal baseball bat with the intent to do bodily harm and the alleged assault resulted in serious bodily injury.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The U.S. Attorney’s Office prosecuted the case.
Member of North Shore Latin Kings Chapter Pleads Guilty to Drug Distribution ChargesRead the Press Release
BOSTON – A member of the North Shore Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to drug distribution charges.
Henry Caribe a/k/a “King 40 Cal,” 29, pleaded guilty to conspiracy to distribute cocaine base. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Nov. 3, 2020. Caribe was charged in December 2019, at which time he was serving a state sentence.
During the plea proceedings, Caribe admitted to selling a cooperating witness over 70 grams of cocaine base, or “crack” cocaine, in a series of audio/video recorded sales that took place between January and March of 2015.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. 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.
The conspiracy charge provides for a sentence of up to 20 years in prison, a minimum of three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction 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.
Massachusetts Man Charged with Unemployment Insurance ScamRead the Press Release
BOSTON – A Melrose man was arrested today and charged in connection with his role in an unemployment insurance fraud scheme.
Alan Neal Scott, 68, was charged by criminal complaint with one count of mail fraud. Following an initial appearance today, Scott was detained pending a probable cause and detention hearing set for July 30, 2020.
According to charging documents, Scott allegedly submitted numerous fraudulent unemployment insurance claims with the Massachusetts Department of Unemployment Assistance (DUA). Scott submitted these claims using his own identity as well as the identities of various individuals – including individuals who were not eligible for unemployment benefits as they were incarcerated at the time of the claims and could not have been employed as reported. Moreover, the fraudulent claims all reported prior employment at a non-operational Massachusetts-based business also associated with Scott. The complaint alleges that as a result of these fraudulent claims, the DUA sent unemployment benefits funds to several addresses connected to Scott and that the funds were deposited into accounts controlled by Scott.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of not more than $250,000 or twice the gross gain or loss, whichever is greater, forfeiture and restitution. 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; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation, New York Regional Office; Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston; Joseph Cronin, Inspector in Charge of the United States Postal Inspection Service; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division made the announcement today. The Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit also provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial and Cyber Fraud Unit is prosecuting the case.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Sentenced to 15 Years for Large-Scale Drug Trafficking ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A North Carolina man was sentenced today to 15 years in prison for his role in a large-scale drug trafficking conspiracy rooted in Mexico, spanning the continental United States, and settling in Hampton.
According to court documents, Donald Lee Southerland, 49, pleaded guilty earlier this year to conspiracy to distribute and possession with intent to distribute cocaine, heroin, cocaine base and fentanyl. Over the course of approximately three to four years, Southerland is conservatively attributed with hundreds of thousands of U.S. dollars in drug proceeds as well as over 63 kilograms of heroin and more than 43 kilograms of marijuana among other significant quantities of illicit substances. Southerland’s biggest heroin customer lived in Hampton.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Cookout. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 28 HIDTAs, which include approximately 18 percent of all counties in the United States and 66 percent of the U.S. population.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington D.C.; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Colonel Gary T. Settle, Superintendent of Virginia State Police; Steve R. Drew, Chief of Newport News Police; Terry L. Sult, Chief of Hampton Police Division; Col. K.L. Wright, Chief of Chesapeake Police; and Hampton Commonwealth's Attorney Anton A. Bell made the announcement after sentencing by U.S. District Judge David J. Novak. Special Assistant U.S. Attorney Amy Cross and Assistant U.S. Attorneys Kevin Hudson and Peter Osyf are prosecuting this case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-47.
Milwaukee Man Indicted for Arson Causing Injury to a Firefighter at 40th & Lloyd IncidentRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on July 28, 2020, a federal grand jury indicted Joshua M. Lusk (age: 32) of Milwaukee, for arson and attempted arson, causing an injury to a Milwaukee Fire Department firefighter, in violation of Title 18, United States Code, Sections 844(i) and 2. The arson occurred at a residence located at 2120-2122 North 40th Street, in Milwaukee, Wisconsin.
If convicted of the arson and attempted arson causing injury to a firefighter, Lusk would face a mandatory minimum of seven years and a maximum of 20 years in prison. He also would face a fine of up to $250,000.
“As alleged in the indictment, Lusk engaged in senseless violence, attempting to destroy the home of innocent people,” said United States Attorney Krueger. “I commend the excellent work of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Milwaukee Police Department in investigating this matter. The Justice Department is committed to working with state and local authorities to ensure public safety in Milwaukee.”
“Our partnership with the Milwaukee Police Department and the United States Attorney’s Office continues to hold those responsible for violent crimes accountable for their actions,” remarked Special Agent in Charge Kristen deTineo of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) of the Chicago Field Division.
Milwaukee Police Chief Alfonso Morales remarked: “The Milwaukee Police Department would like to thank all law enforcement that worked tirelessly on this investigation. This is just one example of how having strong relationships with our local, state, and federal partners can have a positive impact on the members of the city of Milwaukee.”
The ATF and the Milwaukee Police Department investigated the case, which will be prosecuted by Assistant United States Attorney Christopher Ladwig.
A criminal indictment is merely a formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Lexington Man Sentenced to Six Years in Federal Prison on Firearms ChargeRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Demarcus Deon Booker, 34, of Lexington, was sentenced to six years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented in court established that on June 12, 2018, officers with the West Columbia Police Department responded to shots fired at a gas station in West Columbia. A 911 caller observed a person matching Booker’s description with a handgun tucked in his pants walking away from a silver vehicle. Officers located an unoccupied silver Chevrolet Cruz with bullet holes parked next to a building in close proximity to the gas station.
Officers searched the area and made contact with two individuals, one of whom was Booker, who were walking away from the gas station. Booker ultimately fled into the woods, where law enforcement officers located him after a short pursuit. Officers were able to determine that Booker and occupants of another vehicle exchanged gunfire, and Booker shot out of the passenger window of the silver Chevrolet Cruz. Booker had at least one firearm as he fled the scene, which officers were able to recover.
The evidence presented to the court showed that federal law prohibited Booker from possessing firearms and ammunition based upon multiple prior convictions, including a 2006 assault and battery of a high and aggravated nature, a 2012 possession with intent to distribute marijuana, and a 2012 possession with intent to distribute marijuana.
United States District Judge Mary G. Lewis sentenced Booker to 72 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Federal Bureau of Investigation (FBI), West Columbia Police Department, and Lexington County Sheriff’s Department. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Special Assistant United States Attorney Casey Rankin Smith of the Columbia office prosecuted the case.
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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.
Law Enforcement Searches a Dozen Locations and Arrests Multiple Individuals in Relation to Meth Trafficking ChargesRead the Press Release
On July 27 and July 28, 2020, law enforcement officers executed twelve search warrants in the Northern and Southern Districts of Iowa. Search warrants were executed in Waterloo, Cedar Falls, Roland, and Marshalltown, Iowa. As a result of the investigation and the execution of the search warrants, three people were charged with methamphetamine trafficking and arrested pursuant to arrest warrants issued in the Northern District of Iowa.
The Indictment alleges that, between on or about January 2019 and on or about July 2020, Bobbey Dean Robey, Travis Charles Werkmeister, and Genaro Aguilar Lemus conspired to distribute methamphetamine. All three appeared today in federal court in Cedar Rapids. If convicted, each faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment without the possibility of parole, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
As with any criminal case, a charge is merely an accusation and each defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Ashley Corkery and investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Task Force, the Mid-Iowa Drug Task Force, the Iowa Counter Drug Task Force, and the Central Iowa Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2034.
Follow us on Twitter @USAO_NDIA.
Justice Department Settles Disability-Based Housing Discrimination Lawsuit with Owners and Developers of 82 Apartment Complexes in 13 StatesRead the Press Release
The Department of Justice and the U.S. Attorney’s Office for the Southern District of Ohio announced today that the owners, developers and builders of 82 multi-family housing complexes have agreed to make extensive modifications to their properties and pay $475,000 to resolve claims that they violated the Fair Housing Act and the Americans with Disabilities Act by designing and constructing apartment complexes that are inaccessible to persons with disabilities.
This agreement resolves one of the largest housing accessibility lawsuits that the Justice Department has filed. The housing complexes at issue are located in Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas and West Virginia, and contain more than 3,000 units that are required to have accessible features.
Today’s settlement, which must still be approved by the U.S. District Court for the Southern District of Ohio, resolves the government’s lawsuit, filed in May 2019, against Ohio-based Miller-Valentine Operations Inc. and its affiliated companies. Under the terms of the settlement, the defendants must take extensive corrective actions to make the complexes accessible to persons with disabilities. These include replacing excessively sloped portions of sidewalks, installing properly sloped curb ramps and walkways to allow persons with disabilities to access units from sidewalks and parking areas, providing sufficient room for wheelchair users in bathrooms and kitchens, and removing accessibility barriers in public and common use areas at the complexes. The defendants will pay $400,000 to establish a settlement fund to compensate individuals with disabilities who were harmed by the accessibility violations and $75,000 in civil penalties to the government to vindicate the public interest.
The settlement also requires the defendants to receive training about the Fair Housing Act and the Americans with Disabilities Act, to take steps to ensure that their future multifamily housing construction complies with these laws, and to provide periodic reports to the Justice Department.
“For nearly three decades, federal law has mandated that new multifamily housing be accessible to people with disabilities,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “And yet, after all these years, some in the housing industry continue to ignore their legal obligations by building inaccessible properties that deny individuals with disabilities the opportunity to live in and enjoy housing on equal terms with non-disabled tenants. There simply is no excuse for these violations of longstanding federal law. This lawsuit and its resolution should send an unmistakable message that this Department will work tirelessly to pursue those who deny individuals with disabilities their federally protected right to accessible housing.”
“Today’s settlement, if approved by the court, will achieve two major goals,” said David M. DeVillers, U.S. Attorney for the Southern District of Ohio. “It will correct actions taken in the past that limited access to housing for people with disabilities and at the same time put steps in place to prevent this from happening in the future.”
The complexes at issue, many of which were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program or other federal programs, are:
Illinois
- Twin Lakes Senior Villas, Rantoul, IL
Indiana
- Honey Creek, Greenwood, IN
- Mill Pond, Muncie, IN
- Summit Pointe, Lawrenceburg, IN
- Waterbury Apartments, Decatur, IN
Iowa
- Meadow Vista Senior Villas, Altoona, IA
Kansas
- Galena Estates, Galena, KS
Kentucky
- Weaver Farm Apartments, Florence, KY
Missouri
- Hampshire Landing, Joplin, MO
North Carolina
- Madison Place Senior, Gastonia, NC
- Pinecrest Apartments, Walkertown, NC
- River Crossing, Charlotte, NC
- The Enclave at Winston-Salem, Winston-Salem, NC
- The Landings at Steele Creek I, Charlotte, NC
- The Landings at Steele Creek II, Charlotte, NC
- Twin Cedars I, Hickory, NC
- Twin Cedars II, Hickory, NC
- Villas at Twin Cedars, Hickory, NC
Ohio
- Aspen Grove Apartments, Middletown, OH
- Bent Tree Apartments I, Piqua, OH
- Bent Tree Apartments II, Piqua, OH
- Breckenridge Apartments, Findlay, OH
- Bridge Street Landing, Chillicothe, OH
- Brookdale Trillium Crossing, Columbus, OH
- Brookstone Apartments, Bellefontaine, OH
- Carriage Trails Senior Villas, Huber Heights, OH
- Cedar Trail, Bellbrook, OH
- Cedar Wood Apartments, Mansfield, OH
- Cobblegate Square Apartments, Moraine, OH
- Deerfield Crossing, Lebanon, OH
- Eagles Point Apartments, Kenton, OH
- Faith Community Housing, Crestline, OH
- Fox Run, Trotwood, OH
- Glen Arbors Apartments, Napoleon, OH
- Harbour Cove Apartments, Cincinnati, OH
- Harmony Senior Village, Williamsburg, OH
- Holly Hills Apartments, Jackson, OH
- Hoover Place, Dayton, OH
- Hunter’s Oak Apartments, Greenville, OH
- Indian Trace I, Oxford, OH
- Indian Trace II, Oxford, OH
- Lake Towne Senior, Walbridge, OH
- Lofts at Hoover, Dayton, OH
- Lofts at One West High Street, Oxford, OH
- Lyons Place I, Dayton, OH
- Lyons Place II, Dayton, OH
- Mallard Glen, Amelia, OH
- Mallard Landing, Marion, OH
- Meadow Creek Apartments, Bryan, OH
- Meadow View South, Springboro, OH
- Oak Wood Apartments, Lexington, OH
- Pheasant Run Senior, Dayton, OH
- Pine Ridge, Logan, OH
- Quail Run Apartments, Van Wert, OH
- Queen Esther’s Village, Canton, OH
- Riverside Landing at Delaware Place, Delaware, OH
- Riverview Bluffs, New Richmond, OH
- Sandhurst, Zanesville, OH
- Scioto Woods I, Chillicothe, OH
- Scioto Woods II, Chillicothe, OH
- Siena Village Senior Living, Dayton, OH
- St. Bernard Commons, St. Bernard, OH
- St. Rita’s Senior Housing, Garfield Heights, OH
- Stone Creek Apartments, Moraine, OH
- Sycamore Creek Apartments, Sidney, OH
- Timber Glen II, Batavia, OH
- Timber Ridge Apartments, Dayton, OH
- Timberlake Apartments, Vandalia, OH
- Walnut Run Senior Villas, Cortland, OH
- Waterstone Landing, Perrysburg, OH
- Whitehouse Square Senior Villas, Whitehouse, OH
- Wind Ridge Apartments, Tipp City, OH
- Windsor Place, Beavercreek, OH
- Wright Place Apartments, Xenia, OH
Oklahoma
- Fairway Breeze Apartments, El Reno, OK
- Reserve at Spencer, Spencer, OK
Pennsylvania
- Allegheny Pointe, Apollo, PA
- Walkers Ridge Apartments, Greensburg, PA
Texas
- Gallatin Park Apartments, Gallatin, TX
- Oak Ridge Apartments, Nolanville, TX
- Silversage Point at Western Center, Fort Worth, TX
West Virginia
- Reserve at Oak Spring, Clarksburg, WV
Persons who believe they or someone they know may have been harmed by the inaccessible conditions at any of these properties, either when they or someone associated with them lived there or considered living there, should contact the Justice Department toll-free at 1-833-591-0295 or by e-mail at [email protected].
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units, and units accessible to wheelchair users and others with disabilities. Enacted in 1990, the Americans with Disabilities Act requires, among other things, that places of public accommodation, such as rental offices at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Justice Department Secures $150,000 in Lost Wages and Damages for Victim of Racial Discrimination in Case Against Brevard County, FloridaRead the Press Release
Justice Department today announced that it has reached a settlement with Brevard County, Florida, resolving its race discrimination lawsuit against the county.
The suit alleged that the county violated Title VII of the Civil Rights Act of 1964 when it fired Deidre Jackson, an African-American communications specialist in its Space Coast Tourism Office. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, national origin, sex, and religion.
“No one should suffer the indignity of losing her job because of the color of her skin. To that end, the Department of Justice will vigorously enforce Title VII of the Civil Rights Act of 1964 so that state and local governments do not close the doors of equal employment opportunity to anyone because of race,” said Assistant Attorney General for the Civil Rights Division, Eric S. Dreiband. “The Justice Department was established 150 years ago with a founding charge to protect civil rights and this settlement reinforces our continuing commitment to eradicate the scourge of racial discrimination in the government.”
“Racial discrimination, in the workplace or elsewhere, is unacceptable and undermines the very tenets and ideals of a civilized, modern society,” stated the U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “Our nation’s greatest achievements have been because of our diversity, not in spite of it.”
According to the department’s complaint filed in the U.S. District Court for the Middle District of Florida, Jackson had an excellent work history including positive evaluations and no disciplinary actions throughout her eight years of employment with the county. According to the allegations contained in the complaint, however, shortly after a new director was appointed as manager of the office in 2014, Jackson’s work came under unjustified scrutiny not applied to other co-workers performing similar duties. That director fired Jackson in April 2015, six months after he was hired.
The director never expressed any concern about Jackson’s work performance prior to terminating her employment. As the complaint alleges, he told Jackson that she did not fit his vision of the office without further explanation. After her firing, the director replaced Jackson with two white employees. Around that same time, the complaint alleges, the only other minority employee in the tourism office was forced to resign. The departure of the two minority employees resulted in an all-white tourism office.
Under the terms of the settlement agreement, the county will pay Jackson $150,000 for lost wages and compensatory damages. The settlement agreement also requires the county to provide its supervisors and managers with training on its anti-discrimination policies and on the types of conduct in the workplace that constitute unlawful employment practice under Title VII.
The Tampa Field Office, which is part of the Miami District Office of the Equal Employment Opportunity Commission (EEOC), investigated and attempted to resolve Jackson’s charge of discrimination before referring it to the Department of Justice as an enforcement action. More information about the EEOC’s jurisdiction is available on its website at www.eeoc.gov.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
Justice Department Issues Business Review Letter to Avanci for Proposed Licensing Platform to Advance 5G Technology for Interconnected AutomobilesRead the Press Release
The Department of Justice’s Antitrust Division announced today that it has completed its review of Avanci’s new Platform for licensing “Fifth Generation” (5G) telecommunications technology in the automotive industry. As part of its review, the Division interviewed a broad range of stakeholders, including automakers, automotive suppliers, potential licensors, and others, and considered letters issued to other patent pools in similar emergent technologies. The Department has concluded that, on balance, and based on the representations in Avanci’s letter request, Avanci’s proposed 5G Platform is unlikely to harm competition.
“The Avanci 5G Platform may pave the way for new connectivity to be incorporated efficiently into vehicles that will enhance the safety and functionality of cars across the United States,” said Assistant Attorney General Makan Delrahim. “The 5G Platform can facilitate the licensing of potentially thousands of cellular standard essential patents that Avanci has said it will provide access to at rates that are fair, reasonable, and nondiscriminatory (FRAND). We also are pleased that Avanci has put in place safeguards that can help the Platform avoid harming competition.”
According to the Department’s business review letter, Avanci’s 5G Platform may make licensing standard essential patents related to vehicle connectivity more efficient by providing automakers with a “one stop shop” for licensing 5G technology. The Platform also has the potential to reduce patent infringement and ensure that patent owners who have made significant contributions to the development of 5G “Release 15” specifications are compensated for their innovation. Avanci represents that the Platform will charge FRAND rates for the patented technologies, with input from both licensors and licensees.
In addition, Avanci has incorporated a number of safeguards into its 5G Platform that can help protect competition, including licensing only technically essential patents; providing for independent evaluation of essential patents; permitting licensing outside the Platform, including in other fields of use, bilateral or multi-lateral licensing by pool members, and the formation of other pools at levels of the automotive supply chain; and by including mechanisms to prevent the sharing of competitively sensitive information. The Department’s review found that the Platform’s essentiality review may help automakers license the patents they actually need to make connected vehicles. In addition, the Platform license includes “Have Made” rights that creates new access to cellular standard essential patents for licensed automakers’ third-party component suppliers, permitting them to make non-infringing components for 5G connected vehicles. The Department made no assessment of whether Avanci’s licensing model, focused on automakers, ultimately will be successful in the automotive industry, which typically relies on suppliers to secure patent licenses.
Under the Department of Justice’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the Antitrust Division currently intends to challenge the action under the antitrust laws based on the information provided. The Department’s conclusions in this business review apply only to Avanci’s 5G Platform. They are not applicable to any other agreements or initiatives relating to standards or arrangements for the licensing of 5G-related patents. The Department reserves the right to challenge the proposed action under the antitrust laws if the actual operation of the proposed conduct proves to be anticompetitive in purpose or effect.
Copies of the business review request and the Department’s response are available on the Antitrust Division’s website at https://www.justice.gov/atr/business-review-letters-and-request-letters, as well as in a file maintained by the Antitrust Documents Group of the Antitrust Division. After a 30-day waiting period, any documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure. Supporting documents in the file will be maintained for a period of one year, and copies will be available upon request to the FOIA/Privacy Act Unit, Antitrust Documents Group at [email protected].
Jury convicts man of sexually abusing minor girls in Lodge GrassRead the Press Release
BILLINGS – A federal jury on Monday convicted a Moiese man accused of sexually abusing minor girls in Lodge Grass on the Crow Indian Reservation, U.S. Attorney Kurt Alme said.
After a two-day trial, the jury found Jack Preston Coversup, 57, guilty of sexual abuse of a minor and abusive sexual contact.
Coversup faces a maximum 15 years in prison, a $250,000 fine and five years to life of supervised release for sexual abuse of a minor, and a maximum of life in prison, a $250,000 fine and five years to life of supervised release for abusive sexual contact.
U.S. District Judge Susan P. Watters presided and set sentencing for Dec. 10. Coversup was detained pending further proceedings.
"A jury held Mr. Coversup accountable for molesting minor victims over a period of months. Children must be protected from sexual predators, and we will prosecute offenders to the full extent of the law. I want to thank Assistant U.S. Attorneys Tom Godfrey and Lori Suek and the FBI for their hard work in investigating and prosecuting this case," U.S. Attorney Alme said.
During trial, the prosecution presented evidence that Coversup had sexually molested three minor girls in a Lodge Grass residence from about December 2015 to February 2016. The victims were under the age of 16. Coversup sexually molested the victims by touching their bodies over and under their clothing.
Assistant U.S. Attorneys Tom Godfrey and Lori Suek prosecuted the case, which was investigated by the FBI.
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Jury Convicts South Carolina Man for Credit Card FraudRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte convicted Robert Nathaniel Johnson, III, 35, of Lancaster, South Carolina today for credit card fraud, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. presided over the trial.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and evidence presented at trial, from September 29 to October 20, 2018, Johnson and his co-defendant, Charles Vincent Brown, used a stolen credit card number to create counterfeit credit cards, which they then used to purchase more than $250,000 of merchandise, including electronics, sneakers, clothing and gaming equipment. Trial evidence established that the defendants obtained the credit card of an individual identified as Victim #1, and re-encoded the stolen credit card number onto counterfeit credit cards bearing the defendants’ names and the names of other co-conspirators. According to evidence presented at trial, Johnson and others used the counterfeit credit cards at multiple retail stores, including at Best Buy, Foot Action, Foot Locker, and Neiman Marcus. Johnson specifically used the counterfeit credit cards to buy more than $10,000 in sneakers and apparel.
The jury convicted Johnson of conspiracy to commit access device fraud, which carries a maximum prison sentence of five years, and access device fraud, which carries a maximum sentence of 10 years in prison. A sentencing date for Johnson has not been set. On November 4, 2019, Brown pleaded guilty to conspiracy to commit access device fraud and is currently awaiting sentencing.
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Secret Service for their investigation of this case.
Assistant U.S. Attorneys Caryn Finley and Stephanie Spaugh, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Jefferson Davis County Man Pleads Guilty to Heroin and Firearm OffensesRead the Press Release
Hattiesburg, Mississippi – Adonis Edwards, 31, of Carson, Mississippi, pled guilty today before U.S. District Judge Keith Starrett to possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA).
On January 29, 2020, a federal grand jury indicted Edwards for the sale of heroin and a Smith & Wesson .357 revolver.
Edwards will be sentenced on November 18, 2020 by Judge Starrett, and faces a maximum penalty of 20 years in prison and a $1,000,000 fine.
The case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Shundral Cole.
Individual Arrested for Brooklyn Bank RobberyRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Eric Adjei with the robbery of a Chase Bank in Brooklyn on July 21, 2020. Adjei was arrested today and was ordered detained pending trial by United States Magistrate Judge Robert M. Levy.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the arrest.
“As alleged, the defendant threatened a bank teller in the course of a robbery here in Brooklyn,” stated Acting United States Attorney DuCharme. “Our Office remains committed to protecting our financial institutions and the employees and customers who rely on them to safeguard their money, and anyone who robs a bank in this district will face justice.” Mr. DuCharme thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for the diligent work that led to the apprehension of the defendant.
According to court filings, on July 21, 2020, at approximately 5:40 p.m., Adjei entered the Chase Bank at 401 Flatbush Avenue. Adjei approached the teller window and stated, “I have a gun in my bag, give me $3,000.” Adjei was wearing a surgical mask, a blue cloth over a green cap, and a distinctive black and white horizontally striped shirt. NYPD officers located Adjei after recovering surveillance video of him in a subway station, with his surgical mask pulled down.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Matthew R. Galeotti is in charge of the prosecution.
The Defendant:
ERIC ADJEI
Age: 47
New York, New YorkE.D.N.Y. Docket No. 20-MJ-578
Hattiesburg Man Sentenced for Conspiracy to Commit Health Care Fraud and Money Laundering in $200 Million Compounding Pharmacy SchemeRead the Press Release
Jackson, Miss. – Jason May, 41, of Hattiesburg, was sentenced yesterday by U.S. District Judge Keith Starrett to 12 months and one day in prison, followed by three years of supervised release, for conspiring to commit health care fraud and money laundering, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle Sutphin, of the Federal Bureau of Investigation in Mississippi, Acting Special Agent in Charge Andrew M. Thornton of IRS Criminal Investigations (IRS-CI), Special Agent in Charge Cynthia Bruce of Defense Criminal Investigative Services (DCIS) Southeast Field Office, and Interim Director Steven Maxwell of the Mississippi Bureau of Narcotics (MBN).
May was also ordered to pay restitution in the amount of $182,503,946.75.
From December 2011 until January 2016, May was the pharmacist-in-charge and co-owner of Advantage Pharmacy, a Hattiesburg-based pharmacy. Beginning in late 2012, May conspired with others to select formulas for compounded medications, not based on scientific evaluations of efficacy or individualized patient needs, but rather, to maximize reimbursement from TRICARE and other health care benefit programs. Then he and his co-conspirators mass-produced the compounded medications at Advantage Pharmacy and agreed to waive copayments for the compounded medications to induce TRICARE beneficiaries and others to accept the costly product.
The FBI, IRS-CI, DCIS and MBN investigated the case with assistance from U.S. Postal Service Office of Inspector General (OIG) and Office of Personnel Management OIG. Trial Attorneys Dustin M. Davis, Sara E. Porter, and Katherine E. Payerle of the Criminal Division’s Fraud Section, Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant United States Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi prosecuted the case.
Harvard University Professor Charged with Tax OffensesRead the Press Release
BOSTON – The former Chair of Harvard University’s Chemistry and Chemical Biology Department was charged today in a superseding indictment with tax offenses for failing to report income he received from Wuhan University of Technology (WUT) in Wuhan, China.
Dr. Charles Lieber, 61, was indicted by a federal grand jury in Boston on two counts of making and subscribing a false income tax return and two counts of failing to file reports of foreign bank and financial accounts (FBAR) with the Internal Revenue Service (IRS). In June 2020, Lieber was indicted on two counts of making false statements to federal authorities. Lieber was arrested on Jan. 28, 2020.
The superseding indictment alleges that Lieber served as the Principal Investigator of the Lieber Research Group at Harvard University, which received more than $15 million in federal research grants between 2008 and 2019. Unbeknownst to his employer, Harvard University, Lieber allegedly became a “Strategic Scientist” at WUT and, later, a contractual participant in China’s Thousand Talents Plan from at least 2012 through 2015. China’s Thousand Talents Plan is one of the most prominent Chinese talent recruitment plans designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.
Under the terms of Lieber’s three-year Thousand Talents contract, WUT allegedly paid Lieber a salary of up to $50,000 per month, living expenses of up to $150,000 and awarded him more than $1.5 million to establish a research lab at WUT. It is alleged that in 2018 and 2019, Lieber lied to federal authorities about his involvement in the Thousand Talents Plan and his affiliation with WUT.
According to the superseding indictment, in tax years 2013 and 2014, Lieber earned income from WUT in the form of salary and other payments made to him pursuant to the Strategic Scientist and Thousand Talents Contracts, which he did not disclose to the IRS on his federal income tax returns. The superseding indictment also alleges that Lieber, together with WUT officials, opened a bank account at a Chinese bank during a trip to Wuhan in 2012. Thereafter, between at least 2013 and 2015, WUT periodically deposited portions of Lieber’s salary into that account. U.S. taxpayers are required to report the existence of any foreign bank account that holds more than $10,000 at any time during a given year by the filing an FBAR with the IRS. Lieber allegedly failed to file FBARs for the years 2014 and 2015.
The charge of making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of making and subscribing false income tax returns provides for a sentence of up to three years in prison, one year of supervised release and a $100,000 fine. The charge of failing to file an FBAR provides for a sentence of up to five 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; Assistant Attorney General for National Security John C. Demers; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Philip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made this announcement. Assistant U.S. Attorney Jason Casey of Lelling’s National Security Unit is prosecuting this case with the assistance of Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Harvard University Professor Charged with Tax OffensesRead the Press Release
The former Chair of Harvard University’s Chemistry and Chemical Biology Department was charged today in a superseding indictment with tax offenses for failing to report income he received from Wuhan University of Technology (WUT) in Wuhan, China.
Dr. Charles Lieber, 61, was indicted by a federal grand jury in Boston on two counts of making and subscribing a false income tax return and two counts of failing to file reports of foreign bank and financial accounts (FBAR) with the Internal Revenue Service (IRS). In June 2020, Lieber was indicted on two counts of making false statements to federal authorities. Lieber was arrested on Jan. 28, 2020.
The superseding indictment alleges that Lieber served as the Principal Investigator of the Lieber Research Group at Harvard University, which received more than $15 million in federal research grants between 2008 and 2019. Unbeknownst to his employer, Harvard University, Lieber allegedly became a “Strategic Scientist” at WUT and, later, a contractual participant in China’s Thousand Talents Plan from at least 2012 through 2015. China’s Thousand Talents Plan is one of the most prominent Chinese talent recruitment plans designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.
Under the terms of Lieber’s three-year Thousand Talents contract, WUT allegedly paid Lieber a salary of up to $50,000 per month, living expenses of up to $150,000 and awarded him more than $1.5 million to establish a research lab at WUT. It is alleged that in 2018 and 2019, Lieber lied to federal authorities about his involvement in the Thousand Talents Plan and his affiliation with WUT.
According to the superseding indictment, in tax years 2013 and 2014, Lieber earned income from WUT in the form of salary and other payments made to him pursuant to the Strategic Scientist and Thousand Talents Contracts, which he did not disclose to the IRS on his federal income tax returns. The superseding indictment also alleges that Lieber, together with WUT officials, opened a bank account at a Chinese bank during a trip to Wuhan in 2012. Thereafter, between at least 2013 and 2015, WUT periodically deposited portions of Lieber’s salary into that account. U.S. taxpayers are required to report the existence of any foreign bank account that holds more than $10,000 at any time during a given year by the filing an FBAR with the IRS. Lieber allegedly failed to file FBARs for the years 2014 and 2015.
The charge of making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of making and subscribing false income tax returns provides for a sentence of up to three years in prison, one year of supervised release and a $100,000 fine. The charge of failing to file an FBAR provides for a sentence of up to five 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.
Assistant Attorney General for National Security John C. Demers; U.S. Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Philip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made this announcement. Assistant U.S. Attorney Jason Casey of Lelling’s National Security Unit is prosecuting this case with the assistance of Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Gary Man Sentenced to 120 Months in PrisonRead the Press Release
HAMMOND-Kristopher Meacham, 29, of Gary, Indiana, was sentenced by United States District Court Judge Theresa L. Springmann following his plea of guilty to transporting a minor with intent to engage in criminal sexual activity, announced U.S. Attorney Kirsch.
Meacham was sentenced to 120 months in prison followed by 15 years of supervised release. He was also ordered to pay $10,000 in restitution to the victim of his offense.
According to documents in the case, Mr. Meacham met a 14 year-old girl from Chicago in January 2018 in Gary, Indiana. The two communicated over social media, and during the communications Meacham told the girl he was 19 years old and arranged to meet her. In March of 2018, he drove to Chicago, picked up the 14 year-old and drove her to his home in Gary where he engaged in sexual acts with the child until she escaped the following day and was recovered by police.
This case is the result of the investigative efforts of the Federal Bureau of Investigation GRIT Task Force. The case was prosecuted by Northern District of Indiana Assistant U.S. Attorney Jill R. Koster.
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Four Alabama Corrections Officers Indicted for Using Excessive Force and Obstruction of JusticeRead the Press Release
BIRMINGHAM, Ala. - A federal grand jury returned an indictment today charging four officers at the Alabama Department of Corrections with federal civil rights and obstruction of justice offenses. Sergeant Keith Finch and Corrections Officers Jordan Thomas and Kevin Blaylock are charged with deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242. Officer Thomas and Sergeant Orlanda Walker are charged with obstruction of justice, in violation of Title 18, United States Code, Section 1519.
The indictment alleges that, on Sept. 12, 2018, Finch, Thomas, and Blaylock used excessive force to punish a prisoner who ran out of his cell in the Bibb Correctional Facility in Brent, Alabama. After two officers took the prisoner to the ground, the prisoner curled up in a fetal position and was surrounded by multiple officers. Finch, Thomas, and Blaylock then kicked the prisoner and hit him multiple times with their batons. As a result of this unjustified use of force, the prisoner sustained bodily injury. Officer Thomas and his supervisor, Sergeant Orlanda Walker, then obstructed justice by filing false reports that claimed “all force ceased” once the prisoner was on the ground.
If convicted, Finch, Thomas, and Blaylock face a maximum sentence of 10 years in prison for the civil rights charges. Thomas and Walker face up to 20 years in prison for the obstruction charges. The officers also face a maximum of three years of supervised release and a fine of up to $250,000.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless proven guilty.
These cases were investigated by the FBI, and are being prosecuted by Civil Rights Division Trial Attorney Michael J. Songer and Assistant U.S. Attorney Catherine Crosby Long of the Northern District of Alabama’s Birmingham Office.
Four Alabama Corrections Officers Indicted for Using Excessive Force and Obstruction of JusticeRead the Press Release
A federal grand jury returned an indictment today charging four officers at the Alabama Department of Corrections with federal civil rights and obstruction of justice offenses.
Sergeant Keith Finch and corrections officers Jordan Thomas and Kevin Blaylock are charged with deprivation of rights under color of law, in violation of Title 18, U.S. Code, Section 242. Thomas and Sergeant Orlanda Walker are charged with obstruction of justice, in violation of Title 18, U.S. Code, Section 1519.
The indictment alleges that, on Sept. 12, 2018, Finch, Thomas, and Blaylock used excessive force to punish a prisoner who ran out of his cell in the Bibb Correctional Facility in Brent, Alabama. After two officers took the prisoner to the ground, the prisoner curled up in a fetal position and was surrounded by multiple officers. Finch, Thomas, and Blaylock then kicked the prisoner and hit him multiple times with their batons. As a result of this unjustified use of force, the prisoner sustained bodily injury. Thomas and his supervisor, Walker, then obstructed justice by filing false reports that claimed “all force ceased” once the prisoner was on the ground.
If convicted, Finch, Thomas, and Blaylock face a maximum sentence of 10 years in prison for the civil rights charges. Thomas and Walker face up to 20 years in prison for the obstruction charges. The officers also face a maximum of three years of supervised release and a fine of up to $250,000.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless proven guilty.
These cases were investigated by the FBI with the assistance of the Alabama Department of Correction’s Law Enforcement Services Division, and are being prosecuted by Civil Rights Division Trial Attorney Michael J. Songer and Assistant U.S. Attorney Catherine Crosby Long of the Northern District of Alabama’s Birmingham Office.
Fort Thompson Man Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on July 27, 2020, by U.S. District Judge Roberto A. Lange.
Benjamin Big Eagle, a/k/a Benji Big Eagle, age 33, was sentenced to 12 months in federal prison, followed by 3 years of supervised release, a $500 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Big Eagle was indicted by a federal grand jury on November 14, 2018. He pled guilty on April 24, 2020.
The conviction stemmed from his involvement in a methamphetamine distribution conspiracy that started in 2012 and continued through 2017. Big Eagle sold small amounts of methamphetamine on the Crow Creek and Lower Brule Indian Reservations in South Dakota.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Indian Affairs, and the South Dakota Highway Patrol. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Big Eagle was immediately remanded to the custody of the U.S. Marshals Service.
Former Saratoga Race Course Worker Sentenced to 65 Months for Methamphetamine TraffickingRead the Press Release
ALBANY, NEW YORK – Francisco Alarcon Badillo, age 29 and a citizen of Mexico, was sentenced on Friday to 65 months in prison for selling crystal methamphetamine while employed as a worker at the Saratoga Race Course.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, New York Division, U.S. Drug Enforcement Administration (DEA); and Saratoga Springs Police Department Chief Shane Crooks.
In pleading guilty in January, Badillo admitted that he sold crystal methamphetamine from May 2019 to August 2019, while residing at and working on the grounds of the Saratoga Race Course in Saratoga Springs, New York. Badillo admitted to hiding the drugs in various locations within the Race Course property, including his dorm room. He admitted to selling more than 400 grams of crystal methamphetamine.
This case was investigated by the DEA and its Capital District Drug Enforcement Task Force, and the Saratoga Springs Police Department, with assistance from the New York Racing Association. The case was prosecuted by Assistant U.S. Attorney Michael Barnett.
Former Real Estate Attorney and Wife Indicted on Mortgage Fraud and Tax ChargesRead the Press Release
BOSTON – A former Massachusetts attorney and his wife were indicted today in federal court in Boston in connection with various mortgage fraud schemes.
Barry Wayne Plunkett Jr., 60, and Nancy Plunkett, 55, both of Hyannis Port, were indicted on five counts of bank fraud and one count of aggravated identity theft. Barry Wayne Plunkett Jr. was also charged with one count of tax evasion.
According to the indictment, until he was disbarred in October 2017, Barry Wayne Plunkett Jr. owned and operated the Plunkett Law Firm where his wife, Nancy Plunkett, was his office assistant and paralegal.
The indictment alleges that the defendants engaged in several bank fraud schemes. In one scheme, from September 2012 to July 2016, the defendants defrauded six mortgage lenders and 14 homeowners for whom the Plunkett Law Firm handled the closings for new mortgage loans to refinance residential properties. The defendants informed the mortgage lenders that pre-existing mortgages were paid off from the new loan proceeds when, in fact, the Plunketts intentionally failed to pay off the prior liens and instead converted more than $900,000 in payoff funds for their own purposes.
In other bank fraud schemes – between April 2015 and March 2018 – it is alleged that the Plunketts fraudulently used various names, entities and false documents to obtain three successive mortgage loans on their home in Hyannis Port in amounts of $412,000, $470,000 and $1.2 million. The defendants pledged as collateral a property in Hyannis Port that was held in a family trust for which Barry Wayne Plunkett Jr. was one of three beneficiaries. Both defendants participated in providing false documents to the lenders, including false title reports and other records to falsely represent that the property was free and clear of existing mortgage liens and forged documents in the names of other people. The defendants also allegedly made misrepresentations to a lender that Nancy Plunkett was a single woman living in Wellesley who was purchasing the property in her maiden name as a business investment when, in fact, the defendants had been married since 2014 and the property was their residence.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $250,000. The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory two-year sentence to be served consecutively to any other sentence imposed. 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; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Victor A. Wild of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Former BBG Contracting Officer Pleads Guilty to Conspiracy to Commit Bribery and Honest Services Wire FraudRead the Press Release
A former contracting officer with the Broadcasting Board of Governors (BBG) (now known as the U.S. Agency for Global Media) pleaded guilty today to conspiring to engage in a bribery scheme.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Special Agent in Charge Marc Meyer of the U.S. Department of State Office of Inspector General and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Diane D. Sturgis, 61, of Glassboro, New Jersey, pleaded guilty to one count of conspiracy to defraud the United States through bribery and wire fraud before U.S. District Judge Liam O’Grady of the Eastern District of Virginia. Sentencing is scheduled for Nov. 17.
According to court documents, Sturgis served as a contracting officer for the BBG’s International Broadcast Bureau, Office of Contracts until September 2017. Sturgis, among other things, supervised several contracts awarded to a Virginia information technology and data management firm, including a blanket purchase agreement. In September 2014, the BBG and the Department of Defense used the firm’s blanket purchase agreement to issue a task order that subsequently served as a vehicle for procuring millions of dollars in services from the firm. In November 2014, Sturgis and the firm’s owner used the same task order to fill several contracting positions in Sturgis’ office in exchange for initial payments totaling at least $330,000. Sturgis and the firm’s owner agreed that the firm would nominally hire Sturgis’ relative to fill one of these positions in exchange for preferential treatment and the performance of official acts benefitting the firm.
Between December 2014 and June 2015, the firm issued four payments to Sturgis’ relative totaling $30,000. The relative performed no consulting work in exchange for these payments; instead, Sturgis prepared the periodic consulting reports and accompanying invoices for the relative and instructed the relative to save the periodic reports and invoices on the relative’s computer and then submit the invoices for payment. The firm sought approval for payments from the BBG, which Sturgis authorized and approved.
The Department of State, Office of Inspector General and the FBI investigated the case. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section is prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Florida Man Who Used Covid-Relief Money to Buy Lamborghini Sports Car Charged in Miami Federal CourtRead the Press Release
Miami, Fl. -- A Florida man was arrested and charged with fraudulently obtaining $3.9 million in Paycheck Protection Program (PPP) loans and using those funds, in part, to purchase a sports car for himself. Authorities seized a $318,000 Lamborghini Huracan and $3.4 million from bank accounts at the time of arrest.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG), Office of Investigation’s Atlanta Regional Office, Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service’s (USPIS) Miami Division, Special Agent in Charge Kevin A. Kupperbusch of the U.S. Small Business Administration (SBA)-OIG, Investigations Division, Eastern Regional Office, Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (CI) Miami Office, and Acting Special Agent in Charge Stephen Donnelly of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection-OIG, Eastern Region, made the announcement.
David T. Hines, 29, of Miami, Florida, was charged by criminal complaint in the Southern District of Florida with one count of bank fraud, one count of making false statements to a financial institution and one count of engaging in transactions in unlawful proceeds.
The complaint alleges that Hines sought approximately $13.5 million in PPP loans through applications to an insured financial institution on behalf of different companies. The complaint alleges that Hines caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ respective payroll expenses. The financial institution approved and funded approximately $3.9 million in loans.
The complaint further alleges that within days of receiving the PPP funds, Hines purchased a 2020 Lamborghini Huracan sports car for approximately $318,000, which he registered jointly in his name and the name of one of his companies. In the days and weeks following the disbursement of PPP funds, the complaint alleges that Hines did not make payroll payments that he claimed on his loan applications. He did, however, make purchases at luxury retailers and resorts in Miami Beach.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commends FDIC-OIG, USPIS, IRS-CI, the SBA-OIG, the Board of Governors of the Federal Reserve System, and the Bureau of Consumer Financial Protection-OIG for their work on this investigation. Assistant U.S. Attorney Michael Berger of the Southern District of Florida and Trial Attorney Emily Scruggs of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-mj-03237-JB.
Felon with Prior Drug and Domestic Violence Convictions Sentenced for Illegally Possessing a FirearmRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to time served of approximately 33.5 months, and three years of supervised release on his conviction of federal firearms violations, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Kellan Hanner, age 29.
According to information presented to the court, on November 1, 2017, two Pittsburgh Police Officers were on patrol in the Hill District assisting in a call for a foot pursuit for a male with a firearm. The officers observed a group of three males, and noticed that one of them, later identified as Hanner, appeared to have a large weighted object in the front pocket of his hooded sweatshirt. The court was further informed that Hanner fled when the police officers attempted to question him, and that officers witnessed the defendant throwing a firearm into a sewer. The firearm was later recovered. When apprehended by law enforcement, Hanner resisted arrest and also reached towards and pull at the officer’s firearm. Hanner has a prior felony conviction for conspiracy to possess with intent to deliver heroin and prior misdemeanor crime of domestic violence, and as such, is prohibited from lawfully possessing a firearm or ammunition under federal law.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Hanner. This case was brought under Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.