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1 September 2020
Fort Thompson Man Sentenced for Assault and RobberyRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Assault with a Dangerous Weapon and Robbery was sentenced on August 31, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
AbuBarker Shabbaz-Evans, a/k/a Abu Barker Evans, age 25, was sentenced to 96 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Shabbaz-Evans was indicted by a federal grand jury on January 14, 2020. He pled guilty on June 16, 2020.
The convictions stem from two separate incidents. The first incident occurred on September 15, 2019, when Shabbaz-Evans pulled an individual out of a vehicle and repeatedly struck the victim about the head and face with a metal object shaped like a pistol and drove off in his vehicle. The victim suffered a slight fracture in his nose as a result of the assault.
The second incident occurred on January 1, 2020, when Shabbaz-Evans attempted to rob two individuals of pre-paid gasoline at the Crow Creek C-Store. In attempting to take the gasoline, Shabbaz-Evans showed a metal gun shaped object in his waistband and threatened the individuals if they did not give Shabbaz-Evans the gas. Onlookers intervened and prevented the robbery.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Shabbaz-Evans was immediately turned over to the custody of the U.S. Marshals Service.
Former Suburban Mayor and Cook County Commissioner Pleads Guilty to Federal Extortion and Tax ChargesRead the Press Release
CHICAGO — The former mayor of southwest suburban McCook, who also served as a Cook County Commissioner, pleaded guilty in federal court today to extortion conspiracy and tax charges.
JEFFREY R. TOBOLSKI admitted in a plea agreement that during his tenures as mayor and Cook County Commissioner he agreed to accept multiple extortion and bribe payments totaling more than $250,000. Tobolski admitted that he abused his elected positions in order to benefit individuals who paid him the money. One such arrangement cited in the plea agreement involved Tobolski scheming with a McCook police officer to accept cash payments from the owner of a McCook restaurant in exchange for Tobolski’s and the police officer’s permission to host events that involved the sale of alcohol.
Tobolski, 55, of McCook, pleaded guilty to one count of conspiracy to commit extortion, which is punishable by a maximum sentence of 20 years in federal prison, and one count of filing a false tax return, which is punishable by up to three years. U.S. District Judge Harry D. Leinenweber did not immediately set a sentencing date.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of IRS Criminal Investigation in Chicago. The government is represented by Assistant U.S. Attorneys Christopher J. Stetler and Tiffany A. Ardam.
In regard to the tax charge, Tobolski admitted in the plea agreement that he willfully underreported his income on his tax returns for the calendar years 2012 through 2018. The conduct caused total losses to the IRS of at least $56,268, and the Illinois Department of Revenue of at least $9,338, the plea agreement states.
Former Illinois Accountant Sentenced to More Than 16 Years in Prison for Misappropriating $77 Million from Individuals and Financial InstitutionsRead the Press Release
CHICAGO — A former Illinois accountant has been sentenced to more than 16 years in federal prison for misappropriating more than $77 million from individuals and financial institutions.
SULTAN ISSA, 47, of Hinsdale, pleaded guilty earlier this year to wire fraud affecting a financial institution. U.S. District Judge Andrea R. Wood imposed the 200-month sentence Monday in federal court in Chicago. Judge Wood also ordered Issa to pay more than $72 million in restitution to the victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorney Philip Fluhr.
Issa was a certified public accountant and the Chief Financial Officer of a group of partnerships, corporations, and trusts owned by a Chicago-area family. From 2010 to 2017, he embezzled at least $45 million of the family’s assets, including money Issa stole from a trust account that was set up to pay medical expenses for a family member suffering from an incapacitating illness. Issa also fraudulently obtained at least another $5.1 million from individuals in his personal capacity, claiming he would invest their money in legitimate opportunities, including a luxury auto dealership Issa owned in Burr Ridge.
Issa used fraud proceeds to cover personal expenses and to secure fraudulent loans from financial institutions totaling at least $83 million to acquire, among other things, 25 residential properties in Illinois, Montana, Michigan, and Cabo San Lucas, Mexico, two private aircraft, four yachts, approximately 60 firearms, and assorted watches, jewelry, and memorabilia.
Issa attempted to conceal the scheme by providing financial institutions with fraudulent loan documents and forging authorizations to gain control of funds belonging to the family-owned group. Issa also created false account statements and made Ponzi-type payments to individual investors.
Former Horry County IT Security Director Sentenced to Two Years in Federal Prison for Theft of More than $340,000 in Government FundsRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Terry Shawn Petrill, 48, of Myrtle Beach, was sentenced to two years in federal prison and ordered to pay back more than $340,000 after pleading guilty to theft of federal funds.
“Those who steal from our local governments are raiding the South Carolina taxpayers,” said U.S. Attorney McCoy. “This is unacceptable, and as this case shows we will seek prison time and restitution against those who engage in such theft. I appreciate the dedicated work of our law enforcement partners and government officials in Horry County who provided critical assistance in this case.”
Evidence presented to the court showed that beginning on June 11, 2015, through August 23, 2018, Petrill ordered forty-one Cisco 3850 network switches that were to be installed on the Horry County network. During this time period, Horry County received federal program funding. When the switches would arrive, Petrill advised that he would handle the installation. Petrill did not install the switches on the network and instead sold them to third parties and kept the proceeds for himself. Petrill sold several of the switches on eBay and other third-party websites. Petrill’s actions caused a loss to Horry County of $345,265.57. A spokesperson for Horry County noted that although the situation was unfortunate, the process worked, justice was served, and Horry County was thankful to their federal partners for their help in investigating and prosecuting the case.
Chief United States District Judge R. Bryan Harwell sentenced Petrill to 24 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the Federal Bureau of Investigation (FBI), assisted by the Horry County Police Department. Assistant United States Attorney Everett McMillian 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.
Foreign National Arrested at Pensacola International Airport Pleads Guilty to National Security OffensesRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Lawrence Keefe, of the Northern District of Florida, today announced that Colin Fisher, a citizen of the United Kingdom, pleaded guilty to federal charges of violating the International Emergency Economic Powers Act (“IEEPA”) and attempted smuggling in relation to exporting power generating equipment to Iran. Fisher was arrested by federal agents when he arrived in Pensacola from the United Arab Emirates earlier this month to consummate the illegal transaction and get equipment for a buyer in Iran.
Fisher, 45, admitted in United States District Court in Pensacola that from October 1, 2017, to August 7, 2020, he worked to violate the Iranian embargo by attempting to export a Solar Mars 90 S turbine core engine and parts from the United States for delivery to an end user in Iran. This included participating in fraudulent invoicing and using coded language with conspirators to communicate about the illegal transactions. Despite these efforts, law enforcement authorities discovered the plan and were able to seize the turbine before its transatlantic journey to the end user in Iran, a conspirator in Iran who is linked to an Iranian energy company. The intercepted turbine, which was valued at half a million dollars, could be used to provide needed energy to the oil fields of Iran.
“Exporting technology to Iran is prohibited for a very good reason, yet this defendant chose to put his own self-interest above global and national security,” U.S. Attorney Keefe said. “This case should send a clear signal that the United States cannot and will not look the other way when persons endanger the safety of our nation and its people. We will enforce these laws, which are vital to our national security, against those both within the United States and abroad.”
James Meharg, CEO and president of Turbine Resources International, LLC, in Pensacola, was previously convicted of conspiring with Fisher to export a large turbine and parts from the United States to an Iranian recipient in violation of the Iranian Transactions and Sanctions Regulations. Meharg is currently serving a 40-month sentence in federal prison.
“The commitment of the Bureau of Industry and Security to protect our nation’s security against terrorist procurement networks in State Sponsors of Terrorism countries such as Iran remains unwavering,” said P. Lee Smith, Performing the Non-exclusive Functions and Duties of the Assistant Secretary for Export Enforcement in the Department of Commerce’s Bureau of Industry and Security. “These continued efforts to bring all conspirators to justice are demonstrated in this most recent guilty plea.”
Assistant United States Attorney David L. Goldberg has prosecuted the case following a joint investigation by the United States Department of Commerce’s Bureau of Industry and Security along with the Federal Bureau of Investigation.
Fisher faces up to 20 years imprisonment for violating the International Emergency Economic Powers Act and up to 10 years imprisonment for attempted smuggling. A sentencing date has been set for November 10, 2020, at 9:00 a.m. at the United States Courthouse in Pensacola.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Factual Basis For Guilty Plea C. Fisher Press Release - Colin FisherFlorida man indicted on fraud charges involving nearly $5 MillionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Phillip W. Conley, of Jacksonville, Florida, is facing fraud charges, U.S. Attorney Bill Powell announced.
Conley, 38, was indicted by a federal grand jury sitting in Wheeling in August 2020 on six counts of “Mail Fraud” and one count of “Securities Fraud.” Conley is alleged to have schemed 18 individuals out of nearly $5 million from 2014 to 2019. The victims were from all over the United States, including West Virginia and Maryland.
Conley operated a company by the name of Alpax, LLC, portraying himself as an investment advisor living and working out of Morgantown and Kingwood, West Virginia, Washington, D.C., and Virginia. He is alleged to have developed a scheme to defraud investors by convincing the victims to give him and his companies money for him to invest for returns for the victims. The victims included churches, pastors, at least one parishioner, and his adoptive mother and step-father. He is accused of giving the victims a false sense of security by mailing them false dividend statements, claiming a positive rate of return for their investments. Conley allegedly fraudulently obtained approximately $5.2 million dollars from 18 victims, but invested little or none of that money and spent much of it on private jet flights, expensive meals, clothes, jewelry, housing and living expenses for himself, returning only about $210,000 to the victims.
Conley faces up to 20 years of incarceration and a fine of up to $1,000,000 for each of the mail fraud charges. He faces up to 20 years of incarceration and a fine of up to $5 million for the securities fraud charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The government is also seeking the forfeiture of any property purchased from the proceeds of the crimes, including a money judgment of at least $4,990,000.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The FBI investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Charges Accuse Man of “Straw Purchasing” Guns in Indiana on Behalf of Convicted Felon in ChicagoRead the Press Release
CHICAGO — A man has been charged with a federal firearm offense for allegedly “straw purchasing” guns in Indiana on behalf of a convicted felon in Chicago.
On three occasions this summer, BRIAN HAYWOOD purchased guns from stores in Hammond, Ind., and falsely certified on federal forms that he was the actual buyer, according to a criminal complaint filed in U.S. District Court in Chicago. In reality, Haywood purchased the guns on behalf of a convicted felon from Chicago whom Haywood knew was prohibited from legally purchasing firearms on his own, the complaint states. The felon directed Haywood to buy certain firearms that he wanted and then provided him with the purchase money and an additional fee of $250 per gun, according to the charges.
The complaint charges Haywood, 24, of Hammond, Ind., with one count of knowingly selling and disposing of a firearm to a convicted felon.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Albert Berry III.
“Straw purchasers play a grave role in enabling the unlawful possession of guns and the senseless violence that can follow,” said U.S. Attorney Lausch. “Our office is committed to working with our law enforcement partners to stop the flow of guns to individuals who cannot legally possess them.”
"Straw buyers undermine the rule of law, putting guns into the hands of convicted felons,” said FBI SAC Buie. “The FBI will never stop working with our partners to prevent gun-based violence and make our streets safer."
The case was brought under Operation Legend, a Department of Justice initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement to fight violent crime. As part of Operation Legend, Attorney General William P. Barr directed ATF, FBI, U.S. Marshals Service, and DEA to significantly increase resources in Chicago to help state and local officials fight violent crime, particularly firearm offenses.
The complaint describes three alleged straw purchases in Indiana this summer – on July 30, Aug. 5, and Aug. 20. Unbeknownst to Haywood, the felon from Chicago for whom Haywood bought the guns was surreptitiously cooperating with law enforcement.
The complaint also details a fourth firearm transaction, during which Haywood and another man – MARQUEES FRENCH, 24, of Hammond, Ind. – allegedly sold a semi-automatic handgun to the cooperating felon on the South Side of Chicago on Aug. 25, 2020. The transaction occurred in a retail store parking lot in the 9500 block of South Ashland Avenue, the complaint states. Law enforcement arrested Haywood and French after the deal was conducted and the pair was attempting to drive out of the parking lot, the complaint states.
French was charged with the same offense as Haywood.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the complaint is punishable by a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Ex-Airline Employee Pleads Guilty to Charge for Role in Scheme Where Fake Airline IDs Were Manufactured to Obtain Free FlightsRead the Press Release
LOS ANGELES – A former Mesa Airlines employee pleaded guilty today to a federal criminal charge that he schemed to manufacture counterfeit Mesa employee identification badges that were used to obtain free flights for himself and others on another airline.
Hubbard Bell, 32, of Houston, Texas, pleaded guilty via videoconference to one count of conspiracy to commit wire fraud.
According to his plea agreement, Bell worked at Mesa Airlines, a Phoenix-based regional airline, from June 2015 until October 2015. While a Mesa employee, Bell was provided access to free tickets as a job benefit. Mesa employees and their designated beneficiaries were permitted to use this benefit only while employed by Mesa Airlines.
Bell admitted that, from February 2016 to November 2017, after Mesa terminated his employment, he conspired with others to sell the stolen and unauthorized information of Mesa employees, including their names, dates of hire, and employee identification numbers that were needed to book free flights on Spirit Airlines through Spirit’s web portal for themselves and others.
For example, on June 2, 2016, Bell received via email confidential Mesa employee information for dozens of Mesa Airlines workers based in Dallas and Houston.
For himself, Bell fraudulently obtained 34 free airline tickets, which allowed him to fly interstate, including into and out of Los Angeles International Airport, despite the fact Mesa Airlines no longer employed him. Bell also admitted he and his co-conspirators manufactured and sold fraudulent Mesa employee identification cards for use by the fraudulent travelers.
United States District Judge Michael W. Fitzgerald scheduled a December 7 sentencing hearing, at which time Bell will face a statutory maximum sentence of 20 years in federal prison.
The case’s other defendants – including Kamille Jemison, 28, a former Houston resident who subsequently relocated to the Beverly Grove district of Los Angeles, and Alphonso Lloyd, 27, of Houston – are expected to go to trial in this matter in the spring of 2021.
The case was investigated by the FBI, who received substantial assistance from the Federal Air Marshal Service and the Transportation Security Administration.
This case is being prosecuted by Assistant United States Attorneys Joseph D. Axelrad of the Violent and Organized Crime Section and Poonam G. Kumar of the Major Frauds Section.
Elkton Man Pleads Guilty to Making Threatening Interstate CommunicationsRead the Press Release
Baltimore, Maryland – Phillip Cline, Jr., age 39, of Elkton, Maryland, pleaded guilty today to making threatening interstate communications. Cline admitted that during a recorded phone conversation with an employee of an auto loan business, Cline threatened to physically harm the employee, whom he described using racial epithets.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Eric S. Dreiband of the U.S. Department of Justice’s Civil Rights Division; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to Cline’s publicly available plea agreement, on February 1, 2019, an employee of an auto loan business contacted Cline about what the business suspected to be a delinquent auto loan. During the call, which was recorded, Cline was clearly upset with the caller and unwilling to provide information verifying his identity. Ultimately, Cline, who was advised that the call was being recorded, used racial epithets to threaten the employee with physical harm. As detailed in the plea agreement, Cline stated to the employee during the telephone call that his “white power friends” will “hang your ass.”
Cline faces a maximum sentence of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Cline on October 5, 2020 at 10:00 a.m.
United States Attorney Robert K. Hur and Assistant Attorney General Eric S. Dreiband commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael Cunningham and Trial Attorney Anita Channapati of the Justice Department’s Civil Rights Division, who are prosecuting the case.
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Elkton Man Pleads Guilty to Making Threatening Interstate CommunicationsRead the Press Release
Phillip Cline, Jr., 39, of Elkton, Maryland, pleaded guilty today to making threatening interstate communications. Cline admitted that during a recorded phone conversation with an employee of an auto loan business, Cline threatened to physically harm the employee, whom he described using racial epithets.
The guilty plea was announced by Assistant Attorney General Eric S. Dreiband of the U.S. Department of Justice’s Civil Rights Division; U.S. Attorney for the District of Maryland Robert K. Hur; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation's Baltimore Field Office.
According to Cline’s publicly available plea agreement, on Feb. 1, 2019, an employee of an auto loan business contacted Cline about what the business suspected to be a delinquent auto loan. During the call, which was recorded, Cline was clearly upset with the caller and unwilling to provide information verifying his identity. Ultimately, Cline, who was advised that the call was being recorded, used racial epithets to threaten the employee with physical harm. As detailed in the plea agreement, Cline stated to the employee during the telephone call that his “white power friends” will “hang your ass.”
Cline faces a maximum sentence of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Cline on Oct. 10, 2020.
U.S. Attorney Robert K. Hur and Assistant Attorney General Eric S. Dreiband commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael Cunningham and Trial Attorney Anita Channapati of the Justice Department’s Civil Rights Division, who are prosecuting the case.
Eastern Oregon Medical Practice Employee Pleads Guilty to Tax Crimes, Bank FraudRead the Press Release
PORTLAND, Ore.—The former office manager and bookkeeper for a La Grande, Oregon medical practice pleaded guilty today for devising a scheme to defraud her employer, announced U.S. Attorney Billy J. Williams.
Anndrea D. Jacobs, 49, pleaded guilty to filing a false personal income tax return, falsely impersonating an IRS employee, aggravated identity theft, and bank fraud as a joint resolution for two criminal cases.
According to court documents, beginning on or about January 2011 and continuing until her termination in December 2015, Jacobs used her position and access to the medical practice’s finances to steal money from the practice by, among other means, writing business checks to herself or for her own benefit. Jacobs used the stolen funds to make payments on personal credit cards, and pay other personal expenses unrelated to the medical practice.
In an attempt to hide her illicit actions, Jacobs prepared and maintained false business financial records, overstating expenses and estimated tax payments. Further, without the knowledge or consent of the medical practice owner, she opened a business bank account in his name; deposited a business check payable to the Oregon Department of Revenue into her own personal account; gave the practice owner falsified property tax statements with total due balances of zero; and convinced the practice owner to grant her limited power of attorney to handle the practice’s pending IRS tax collection action.
In perhaps her most brazen attempt to conceal her embezzlement activity, Jacobs created a fictitious identity as an IRS Taxpayer Advocate, aka Linda Gibson; established a phone number and voicemail account for the fictitious identity; and purported to assist the medical practice owner with his IRS tax collection issues while impersonating “Linda Gibson.”
On September 12, 2018, a federal grand jury in Portland returned 15-count indictment charging Jacobs with wire fraud, filing false tax returns, aiding or assisting the preparation of false tax returns, falsely impersonating an employee of the U.S., and aggravated identity theft. On June 5, 2020, Jacobs’ pre-trial release was revoked for committing bank fraud. On June 9, 2020, Jacobs was indicted a second time for the new fraud. She remains in custody pending sentencing.
Under the terms of her plea agreement, Jacobs will join the U.S. Attorney’s Office in jointly recommending a four-year prison sentence followed by five years of supervised release. She will be sentenced on December 7, 2020 before U.S. District Court Judge Marco A. Hernandez.
Jacobs has also agreed to pay restitution in full to her victim as ordered by the court.
This case was investigated by IRS-Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration (TIGTA). It is being prosecuted by Donna Maddux and Ryan Bounds, Assistant U.S. Attorneys for the District of Oregon.
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.
Eagle Butte Woman Sentenced for Maintaining a Drug-Involved PremisesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Maintaining a Drug Involved Premises was sentenced on August 31, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Lena Marie Flying By, age 53, was sentenced to 3 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Flying By was indicted by a federal grand jury on March 10, 2020. She pled guilty to a Superseding Information on June 16, 2020.
The conviction stemmed from Flying By’s conduct between 2015 and 2020, wherein she used her residence near Eagle Butte, South Dakota, for herself and others to use and distribute marijuana.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trials Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Flying By was ordered to self-report to the custody of the U.S. Marshals Service no later than September 8, 2020.
Drug User Who Unlawfully Possessed a Firearm Sentenced to Federal PrisonRead the Press Release
A drug user who unlawfully possessed a rifle was sentenced September 10, 2020, to more than seven months in federal prison.
Isaiah Roy Mixon, age 21, from Spencer, Iowa, received the prison term after a guilty plea to possession of a firearm by a drug user.
Information provided at his detention, change of plea, and sentencing hearings revealed that on January 6, 2019, Spencer, Iowa police officers responded to a request for a welfare check of defendant at his residence. Mixon was found in possession of 12 grams of marijuana, packaging materials, grinders, recently opened odorless bags that had been mailed to him, $12,000 in cash, and a DPMS .223 rifle and ammunition.
Mixon was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Mixon was sentenced to 7 months’ 28 days imprisonment. He must also serve a 6-month term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Mixon is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Spencer, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4074.
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Convicted Felon Sentenced to Federal Prison after Throwing Guns Out of Car During Police ChaseRead the Press Release
A man who threw two guns out of a moving car while being chased by federal Marshals was sentenced today to more than three years in federal prison.
Jordan Lewis Holmes, age 24, from Marion, Iowa, received the prison term after a February 27, 2020 guilty plea to being a felon and drug user in possession of a firearm.
At the plea hearing, Holmes admitted that he possessed two nine-millimeter handguns in March 2019, and that at the time he was an unlawful marijuana user and a convicted felon. Court records reflect that in March 2019, the United States Marshals Service was seeking to arrest Holmes for a warrant issued due to a parole violation on a prior felony stolen weapon trafficking charge. Officers saw Holmes get into a vehicle and tried to initiate a traffic stop, at which time a chase ensued. During the chase, the vehicle in which Holmes was a passenger drove into a church parking lot and two nine-millimeter handguns were thrown from the window where Holmes was seated. At the end of the vehicle chase, the vehicle pulled into an apartment complex parking lot, and, without the vehicle coming to a stop, Holmes and the other three occupants of the vehicle fled on foot. Officers caught up to Holmes and arrested him shortly thereafter.
Officers later retrieved the handguns from the church parking lot. The serial numbers on both firearms had been defaced. Further investigation revealed that two days before the chase, Holmes posted a video of himself holding a handgun that resembled one of the handguns found in the parking lot. Evidence at a prior hearing showed that during a recorded phone call shortly after his arrest, Holmes told the other person that he had to get rid of his “size nine shoes,” indicating that Holmes had thrown the firearms from the moving vehicle.
Holmes was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Holmes was sentenced to 46 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Holmes is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Dan Chatham.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00124-CJW-MAR.
Follow us on Twitter @USAO_NDIA.
Colorado Man Sentenced to 11 Years in Prison for Moderating Disputes on Darknet Marketplace AlphabayRead the Press Release
FRESNO, Calif. — Bryan Connor Herrell, 26, of Aurora, Colorado, was sentenced today by United States District Court Judge Dale A. Drozd to 11 years in prison, U.S. Attorney McGregor W. Scott for the Eastern District of California and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division announced.
According to court documents, Herrell was a moderator on the AlphaBay marketplace, an illegal website that operated on the so-called darknet. On AlphaBay, vendors and purchasers engaged in hundreds of thousands of illicit transactions for guns, drugs, stolen identity information, credit card numbers and other illegal items. At the time, AlphaBay was the world’s largest online drug marketplace.
“This sentence of an AlphaBay employee demonstrates the collective efforts of law enforcement authorities in the United States and Europe to find and prosecute transnational criminal actors wherever they hide,” said Acting Assistant Attorney General Rabbitt. “The department will continue to work tirelessly to hold accountable criminals who use the Dark Web to facilitate illegal activity no matter where they may be located.”
“This sentence serves as further proof that criminals cannot hide behind technology to break the law,” said U.S. Attorney Scott. “Operating behind the veil of the darknet may seem to offer shelter from criminal investigations, but people should think twice before ordering or selling drugs online—you will be caught. This office will continue using all means available to pursue darknet-based crimes, particularly those involving fentanyl, opioids, and other dangerous drugs.”
“The FBI is committed to developing highly trained cyber investigators who work with our international partners and perpetually evolve to counter the threat darknet criminals pose. Cases like these exemplify how the FBI and our international partners are eliminating the false promise of anonymity dark marketplaces claim to provide and are successfully dismantling criminal organizations which prey upon communities through use of sophisticated computer code,” said Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office. “Herrell's sentence sends a clear message to criminals that the darknet is no safe haven for illegal transactions.”
As a moderator on AlphaBay, Herrell settled disputes between vendors and purchasers. He is also served as a scam watcher – providing a service dedicated to monitor attempts to defraud AlphaBay users. Herrell went by the monikers “Penissmith” and “Botah” and was paid in Bitcoin for his participation.
On June 1, 2017, a Fresno grand jury indicted the alleged founder of AlphaBay, Alexandre Cazes. On July 5, 2017, the Royal Thai Police, with assistance from the FBI and DEA, executed an arrest warrant for Alexandre Cazes at his residence in Bangkok, in connection with his alleged involvement with AlphaBay. At the time of his arrest, law enforcement discovered Cazes’s laptop open and in an unencrypted state. Agents and officers found several text files that identified the passwords/passkeys for the AlphaBay website, the AlphaBay servers, and other online identities associated with AlphaBay. The indictment against Cazes was dismissed as a result of his death. The investigation of AlphaBay and its former administrators continues.
This case was the product of an investigation by the Sacramento and Philadelphia Field offices of the Federal Bureau of Investigation. Assistant United States Attorneys Paul Hemesath and Grant B. Rabenn, and Senior Counsel Louisa K. Marion of the Department of Justice’s Computer Crime and Intellectual Property Section are prosecuting the case. The Philadelphia and Denver United States Attorney’s Offices provided substantial assistance.
Colorado Man Sentenced to 11 Years in Prison for Moderating Disputes on Darknet Marketplace AlphaBayRead the Press Release
A Colorado man was sentenced today by U.S. District Court Judge Dale A. Drozd to 11 years in prison.
According to court documents, Bryan Connor Herrell, 26, of Aurora, Colorado, was a moderator on the AlphaBay marketplace, an illegal website that operated on the so-called darknet. On AlphaBay, vendors and purchasers engaged in hundreds of thousands of illicit transactions for guns, drugs, stolen identity information, credit card numbers and other illegal items. At the time, AlphaBay was the world’s largest online drug marketplace.
“This sentence of an AlphaBay employee demonstrates the collective efforts of law enforcement authorities in the United States and Europe to find and prosecute transnational criminal actors wherever they hide,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The department will continue to work tirelessly to hold accountable criminals who use the Dark Web to facilitate illegal activity no matter where they may be located.”
“This sentence serves as further proof that criminals cannot hide behind technology to break the law,” said U.S. Attorney McGregor Scott of the Eastern District of California. “Operating behind the veil of the darknet may seem to offer shelter from criminal investigations, but people should think twice before ordering or selling drugs online—you will be caught. This office will continue using all means available to pursue darknet-based crimes, particularly those involving fentanyl, opioids, and other dangerous drugs.”
“The FBI is committed to developing highly trained cyber investigators who work with our international partners and perpetually evolve to counter the threat darknet criminals pose. Cases like these exemplify how the FBI and our international partners are eliminating the false promise of anonymity dark marketplaces claim to provide and are successfully dismantling criminal organizations which prey upon communities through use of sophisticated computer code,” said Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office. “Herrell's sentence sends a clear message to criminals that the darknet is no safe haven for illegal transactions.”
As a moderator on AlphaBay, Herrell settled disputes between vendors and purchasers. He is also served as a scam watcher – providing a service dedicated to monitor attempts to defraud AlphaBay users. Herrell went by the monikers “Penissmith” and “Botah” and was paid in Bitcoin for his participation.
On June 1, 2017, a Fresno grand jury indicted the alleged founder of AlphaBay, Alexandre Cazes. On July 5, 2017, the Royal Thai Police, with assistance from the FBI and DEA, executed an arrest warrant for Alexandre Cazes at his residence in Bangkok, in connection with his alleged involvement with AlphaBay. At the time of his arrest, law enforcement discovered Cazes’s laptop open and in an unencrypted state. Agents and officers found several text files that identified the passwords/passkeys for the AlphaBay website, the AlphaBay servers, and other online identities associated with AlphaBay. The indictment against Cazes was dismissed as a result of his death. The investigation of AlphaBay and its former administrators continues.
The FBI’s Sacramento and Philadelphia Field Offices investigated this case. Senior Counsel Louisa K. Marion of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Paul Hemesath and Grant B. Rabenn are prosecuting the case. The Philadelphia and Denver U.S. Attorney’s Offices provided substantial assistance.
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.
Chinese Citizen Sentenced for Economic Espionage, Theft of Trade Secrets, and ConspiracyRead the Press Release
SAN JOSE – Hao Zhang was sentenced yesterday to eighteen months in prison and ordered to pay $476,835 in restitution following his conviction at trial on charges of economic espionage, theft of trade secrets, and conspiring to commit both offenses, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett
“I am gratified by a sentence that recognizes the seriousness of the offense,” said U.S. Attorney David L. Anderson for the Northern District of California. “Command-and-control countries cannot match the innovation of a free nation, and inevitably resort to theft. We will protect Silicon Valley. We will protect our intellectual property.”
“Hao Zhang committed these acts to benefit himself, his co-conspirators, and the government of China. This is not competition – this is economic espionage, theft, and conspiracy,” said FBI Special Agent in Charge Bennett. “The FBI will not allow American research and development to be stolen. We encourage companies to come to us both proactively and when suspicious activity is observed so that we can work together to protect American businesses and ensure our national economic security.”
Evidence admitted during the bench trial demonstrated that, from 2010 to 2015, Zhang conspired to and did steal trade secrets relating to Surface Acoustic Wave (“SAW”) and Bulk Acoustic Wave (“BAW”) filters, including Film Bulk Acoustic Resonators (“FBAR”), one type of BAW filter. These filters are commonly used as radio frequency (“RF”) filters for mobile phones and other devices for consumer and military applications. Zhang and his co-conspirator Wei Pang stole the trade secrets from two companies: Avago, a designer, developer, and global supplier of a broad range of analog, digital, mixed signal and optoelectronics components and subsystems with a focus in semiconductor design and processing, headquartered in San Jose, California, and Singapore; and Skyworks, an innovator of high performance analog semiconductors headquartered in Woburn, Massachusetts. U.S. District Judge Edward J. Davila found that Zhang committed economic espionage because he intended to start a new business in China using the stolen information and knew that the business would benefit instrumentalities of the People’s Republic of China, including Tianjin University (“TJU”).
Evidence introduced at trial further showed that, by October 2006, Zhang and his co-conspirators were formulating the plan to start a business in China to compete with Avago and Skyworks. In 2006, Zhang had graduated with a Ph.D. from the University of Southern California and taken a job at Skyworks while co-conspirator Wei Pang started working at Avago. Zhang and Pang illicitly shared trade secrets with each other and with co-conspirators in China while they worked for the U.S. companies. In 2009, Zhang and Pang obtained professorships at TJU based on their academic and professional experience and their commitment to start a Micro-Electro-Mechanical Systems (“MEMS”) lab at the university. TJU was aware of the trade secrets the defendants brought. With guidance from TJU, the defendants filed Chinese patent requests and created a shell company in the Cayman Islands they called Novana. Novana and a TJU subsidiary called MNMT created the new company, ROFS, as a joint venture to manufacture product realized from use of the trade secrets. Along the way, Zhang also obtained U.S. patents in his own name using trade secret information he knew was stolen from Avago.
Zhang, 41, of China, was charged in a superseding indictment by a federal grand jury on April 1, 2015.
The sentence was handed down by The Honorable Edward J. Davila, U.S. District Court Judge, following a four-day bench trial on one count of conspiracy to commit economic espionage, in violation of 18 U.S.C. § 1831(a)(5), one count of conspiracy to commit theft of trade secrets, in violation of 18 U.S.C. § 1832(a)(5), twelve counts of economic espionage and aid and abetting, in violation of 18 U.S.C. §§ 1831(a)(1)-(3) and 2, and twelve counts of theft of trade secrets and aiding and abetting, in violation of 18 U.S.C. §§ 1832(a)(1)-(3) and 2. Judge Davila also sentenced the defendant to a three year period of supervised release and ordered him to pay restitution to Avago and Skyworks. Zhang consented to the court-ordered forfeiture of the U.S. patents obtained with stolen Avago technology. The defendant will begin serving the sentence on October 22, 2020.
Michelle J. Kane and Susan Knight are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Jessica Rodriguez Gonzalez, Susan Kreider, and Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Chase Smothermon sentenced to 45 years for abducting, torturing and killing one victim, brutally beating a secondRead the Press Release
ALBUQUERQUE, N.M. – A federal judge sentenced Chase Smothermon, 32, of Albuquerque, New Mexico, to 45 years in prison for abducting and assaulting two men, one of whom was tortured, killed, and mutilated. Smothermon suspected the victims of stealing drugs and money from his home.
On Jan. 24, Smothermon pleaded guilty in federal court in Santa Fe, New Mexico. An indictment charged Smothermon, and two other residents of Albuquerque, Mariah Ferry, 22, and Jose Torrez, 48, with kidnapping, kidnapping resulting in death, and conspiracy to kidnap.
Smothermon, Ferry, Torrez and other co-conspirators plotted to retaliate against two victims they believed had stolen marijuana from Smothermon’s home, where he resided with Ferry. On Aug. 8, 2017, Torrez alerted Smothermon that the first victim, identified in records as J.S., was present at Torrez’s home. Ferry drove Smothermon to Torrez’s home where they brutally beat J.S. with a baseball bat and the butt of a gun.
Smothermon and his companions then put J.S. in the trunk of Ferry’s car and bound his hands, ankles and mouth with tape. Ferry and Smothermon drove J.S. to another home, where he died shortly after arriving. Ferry and Smothermon then mutilated J.S.’s body in a shed.
Later the same day, Smothermon contacted the second victim, identified in records as M.T., under a ruse that Smothermon wanted to buy marijuana from him. When M.T. arrived at Smothermon’s home, Smothermon, Ferry and others bound, gagged and assaulted him for hours. After several hours, two other people took M.T. to another location where they held him overnight before eventually releasing him. On Aug. 9, 2017, Ferry drove Smothermon and another person to a rural area where they buried J.S.’s body in a shallow grave.
“Mr. Smothermon’s guilty plea and lengthy sentencing in this case are an example of how drug trafficking leads to violence,” said DEA Special Agent in Charge Kyle W. Williamson. “DEA will continue to work closely with its law enforcement partners to investigate drug trafficking and associated violent crime in order to bring to justice those who threaten the safety of our communities.”
Ferry pleaded guilty on Feb. 13 to kidnapping and conspiracy to kidnap. On June 26, the court sentenced her to 30 years in prison followed by 5 years of supervised release. On Feb. 13, Torres pleaded guilty to conspiracy to kidnap and faces 14 years in prison.
The Drug Enforcement Administration and the Federal Bureau of Investigation investigated this case with assistance from the Albuquerque Police Department and Second Judicial District Attorney’s Office. The Narcotics section of the U.S. Attorney’s Office prosecuted the case.
Brazilian National Charged with Paying Bribes in Exchange for ContractsRead the Press Release
BOSTON – A Brazilian national was arrested today and charged in connection with paying bribes to receive contracts for work at a collegiate institution in New York.
Willian Borges, 28, who resides in Fort Lauderdale, Fla., was charged in an indictment unsealed today on one count of conspiracy and three counts of bribery concerning programs receiving federal funds. Borges will make an initial appearance tomorrow in U.S District Court for the Southern District of Florida.
According to the indictment, Borges was a principal of DWD Builders, a general contracting firm, from 2018 to 2019. Floyd Young held positions involving facility maintenance at a New York collegiate institution. It is alleged that Young steered contracts for construction, repair, maintenance, and other work for the collegiate institution to favored contractors, including Borges, who paid him bribes, typically in the amount of 15% of the contract. Borges allegedly paid bribes to Young in cash during face-to-face meetings. In addition, as Borges received payment for work done at the collegiate institution, he paid Young bribes on a periodic basis. Borges also allegedly inflated the amount of the invoices submitted to the collegiate institution in order to be repaid the cost of the bribe payment made to Young. On occasion, Young and Borges arranged for no-work invoices to be submitted to the collegiate institution and then split the payment.
Young pleaded guilty yesterday to conspiracy to receive bribes by agent of organization receiving federal funds, and is scheduled to be sentenced on Feb. 1, 2020.
Borges faces a maximum of five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss for Conspiracy. For each of the counts charging him with Receiving Bribes, Borges faces a maximum of 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Berea Man Pleads Guilty to Producing Child PornographyRead the Press Release
LEXINGTON, Ky. — A Berea, Ky., man, Larry Dale Foley, Jr., 48, pleaded guilty in federal court on Tuesday, before Chief U.S. District Judge Danny Reeves, to employing, using, persuading, inducing, enticing, and coercing a minor to engage in sexually explicit conduct for the purpose of producing child pornography.
According to Foley’s plea agreement and other court records, a tip submitted to the National Center for Missing and Exploited Children, from Tumblr, showed that a blog that Foley owned had distributed 46 images and two videos of child pornography. On January 6, 2020, law enforcement searched Foley’s residence and seized electronic devices that contained child pornography. Foley was arrested and has been held in federal custody since that time.
The devices seized were processed and showed that Foley had produced child pornography of himself and a female minor, in the form of videos and still images. In his guilty plea agreement, Foley admitted to knowing that the images and videos he created with the minor victim were produced using materials that were shared via computer and cell phone.
Foley was indicted in February 2020.
“Make no mistake, the production of child pornography is a violent crime, subjecting the victim to physical and emotional abuse when it is made and then continuing that abuse each and every time it is shared,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Protecting vulnerable victims from this type of unspeakable harm is of the highest priorities for law enforcement. I commend the outstanding investigative efforts of the FBI and the Berea Police Department that resulted in the defendant’s conviction.”
“The impact on children of being abused and exploited is life-long,” said James Robert Brown Jr., Special Agent in Charge, FBI, Louisville Field Office. “Those who prey on the vulnerability of children should know that the FBI and our law enforcement partners will never stop working to put them behind bars.”
U.S. Attorney Duncan, SAC Brown; and Chief Eric Scott, Berea Police Department, jointly announced the guilty plea.
The investigation was conducted by the FBI and the Berea Police Department. The United States was represented by Assistant U.S. Attorney David Marye.
Foley is scheduled to be sentenced in December 2020. He faces a minimum of 15 years and a maximum of 30 years in prison. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Auto Dealership Owner and Finance Manager Plead Guilty in Fraud CaseRead the Press Release
ERIE, Pa. - A resident of Harborcreek, Pennsylvania and a resident of Fairview, Pennsylvania pleaded guilty in federal court to a charge of fraud conspiracy, United States Attorney Scott W. Brady announced today.
Andrew Gabler, 51, of Harborcreek, Pennsylvania and Chad Bednarski, 49, of Fairview, Pennsylvania pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that Andrew Gabler, as the owner of Lakeside Auto Sales and Lakeside Chevrolet, and Chad Bednarski, as the finance manager of Lakeside Chevrolet, engaged in the following illegal activity between January 2015 and January 2019:
- Gabler falsely indicated that customers made down payments and falsified and inflated the income of customers when submitting auto loan applications to financial institutions on behalf of customers;
- Gabler caused extended warranties to be sold to customers buying vehicles at Lakeside Auto Sales and Lakeside Chevrolet and deliberately failed to remit the paperwork and payments to the extended warranty company;
- Gabler and Bednarski falsely reported vehicle sales to General Motors for vehicles that had not been sold in order to obtain expiring incentive rebates, and;
- Gabler and Bednarski deliberately did not inform S&T Bank when Lakeside Auto Sales and Lakeside Chevrolet sold a vehicle that the dealerships had purchased utilizing S&T Bank’s floor plan financing in order to delay and attempt to avoid the dealerships’ required payment to S&T Bank for the sold vehicles which had been purchased using S&T Bank’s floor plan financing.
Judge Baxter scheduled sentencing for January 6, 2021 at 10:00 a.m. for Gabler and 1:30 p.m. for Bednarski. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Gabler and Bednarski on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Gabler and Bednarski.
Attorney General Barr Joins President Trump in Announcing $41 Million in Funding to Address Public Safety in WisconsinRead the Press Release
Attorney General William P. Barr joined President Trump today in a visit to Kenosha, Wisconsin, where the President announced $41 million in grant awards to the state of Wisconsin and local jurisdictions within the state to address a surge in community violence and ongoing civil unrest. Awards will support community-based crime-fighting initiatives, local victim service programs, and the hiring and training of law enforcement officers and prosecutors.
“Thanks to the efforts of federal law enforcement and the National Guard, working closely with our state and local partners, the streets of Kenosha have been restored from violent agitators who have abused their First Amendment rights to frighten citizens and fan the flames of disorder,” said Attorney General Barr. “As President Trump made abundantly clear today, this lawless behavior will not be allowed to stand and the federal government will provide the necessary resources to help state and local police officers who have worked hard to maintain peace and keep violence at bay. Today’s grant money will help to bolster community-based crime-fighting initiatives and provide much needed support to victims affected by the recent violence.”
President Trump and Attorney General Barr toured the city, meeting with local officials and community members to express their concern for those affected by the unrest. The President issued a stern warning to lawbreakers, saying that there would be no tolerance for violence and anarchy in this or any other city.
The grants announced today, from the Department’s Office of Justice Programs and Office of Community Oriented Policing Services, will support proven violence reduction efforts like Project Safe Neighborhoods, which enables federal, state and local agencies to coordinate enforcement activities in collaboration with community organizations. Grants will also help to hire police officers and prosecutors while allowing them to focus resources on the extraordinary public safety challenges their communities are facing. Funds will also support local organizations that provide services and support to victims affected by the recent violence and unrest.
Antitrust Division Seeks Public Comments on Updating Bank Merger Review AnalysisRead the Press Release
The Department of Justice’s Antitrust Division announced today that it is seeking public comments into whether the division should revise the 1995 Bank Merger Competitive Review guidelines (“Banking Guidelines”) to reflect emerging trends in the banking and financial services sector and modernize its approach to bank merger review under the antitrust laws. Today’s announcement is part-and-parcel of the division’s broader efforts and increased focus on protecting competition in the financial markets and follows the recent remarks and announcement by Assistant Attorney General for the Antitrust Division Makan Delrahim, concerning the realignment of commodities at the division.
“Innovative emerging technologies are disrupting traditional banking models and introducing new competitive elements to the financial sector,” said Assistant Attorney General Makan Delrahim. “As part of the division’s increased attention to modernizing our competitive analysis of financial services markets, we are examining whether the 1995 Banking Guidelines need updating to reflect our evolving economy.”
The federal antitrust laws generally apply to financial institutions in the same way as to other economic sectors. Special procedures, however, apply to the competitive review of bank mergers. The relevant bank regulatory agency must approve any bank merger application following a concurrent competitive review conducted by the division. Historically, the initial review of the large number of bank merger applications received annually by the division is done through a review process based on the Banking Guidelines using market shares, market concentration thresholds, and other market facts and conditions. The purpose of this process is to identify proposed mergers that do not have significantly adverse effects on competition and to allow them to proceed quickly. If a bank merger application raises potential competitive concerns, the division may open an investigation. In investigating the competitive effects of bank transactions, the Division applies the same federal antitrust laws and antitrust analysis that it applies to other industries, including the analytical framework set forth in the Department of Justice’s Horizontal Merger Guidelines. As set forth in the Federal Reserve and the division’s 2014 Frequently Asked Questions, the division’s review of bank mergers is “independent” from review by the Federal Reserve (and other bank regulators) and “a transaction that meets the Federal Reserve’s HHI delegation threshold still may raise concern in the division’s review.”
Although the division and the Federal Trade Commission revised their Horizontal Merger Guidelines in 2010, the Banking Guidelines have remained virtually unchanged since 1995.
PUBLIC COMMENTS
As part of its review, the division invites interested persons, including banks, other financial institutions, and industry stakeholders, to provide the division with information or comments relevant to whether the division should revise the Banking Guidelines or change the way it analyzes bank mergers to reflect modern trends in financial services and banking competition. In particular, the division seeks public comments on the issues found in the Antitrust Division Banking Guidelines Review - Public Comments Topics & Issues Guide. The division has and will continue to consult with the Federal Reserve and other banking agencies and will review and consider public comments before deciding on the most appropriate course of action.
Antitrust Division Banking Guidelines Review – Public Comments Topics & Issues Guide
Comments on the Banking Guidelines can be emailed to [email protected] and must be received no later than October 16, 2020.*
* The original version of this release stated the public comment period ended on October 1, 2020. The original 30 day comment period is now extended to 45 days.
Agents Seize $27 Million in U.S. Currency Inside Boxes Bound for St. ThomasRead the Press Release
SAN JUAN, Puerto Rico – On August 29, 2020, as a result of a joint investigation between U.S. Customs and Border Protection (CBP), the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Puerto Rico Police Department, and the United States Attorney’s Office for the District of Puerto Rico, CBP officers seized undeclared currency totaling at least 27 million dollars. The currency was found inside boxes bound for St. Thomas, U.S. Virgin Islands.
CBP officers at Pier 10 in San Juan conducted an outbound cargo inspection on board the Motor Vessel (MV) Norma H II Voyage 818. During that inspection, a CBP K-9 alerted on pallets containing home moving boxes destined for St. Thomas. CBP officers opened one of the boxes and discovered U.S. currency wrapped in vacuum-sealed packages. Further inspection of the pallets revealed a total of 34 cargo boxes containing additional undeclared currency. CBP seized the currency pursuant to bulk cash smuggling laws and based on the failure to declare the currency.
This is an ongoing collaborative investigation conducted by CBP, the DEA Caribbean Field Division, HSI San Juan, the Puerto Rico Police Bureau and the United States Attorney’s Office for the District of Puerto Rico.
“This seizure is a clear indication of the success of our joint investigative efforts,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “Puerto Rico’s geographical location, along with its status as a territory of the United States, makes it an ideal target for Transnational Criminal Organizations seeking to import narcotics into the Continental United States and facilitate the repatriation of their drug proceeds. To eradicate this threat, we will continue to aggressively attack their drug smuggling and money laundering operations – depriving them of their illegal merchandise, their profits, and a safe haven.”
“This is without a doubt a historic money seizure in the Caribbean Region. Most likely more than one Transnational Criminal Organization is involved and seriously bleeding at this very moment. We will not let our guard down, and we will continue our joint efforts between Federal and state agencies without rest. Inter-agency efforts have been excellent and we’ll continue to achieve great results,” stated DEA Caribbean Division Special Agent in Charge A.J. Collazo.
“Legal currency can be transported if properly declared under U.S. law. Transnational Criminal Organizations seek to conceal proceeds and move it as part of their criminal activities,” indicated Gregory Álvarez, CBP Director of Field Operations in Puerto Rico and the U.S. Virgin Islands. “We remain committed to working with other federal and local law enforcement partners to detect and deter smuggling attempts throughout the Caribbean.”
“In recent years, the smuggling of bulk currency has become a preferred method for drug trafficking organizations and other criminal enterprises to move illicit proceeds across our borders,” said Iván J. Arvelo, special agent in charge for HSI San Juan and the U.S. Virgin Islands. “This seizure is proof that HSI remains vigilant and that, along with our partners in the Caribbean Corridor Strike Force, we will continue using our robust investigative authorities to identify, investigate, and apprehend those involved in bulk cash smuggling,” added Arvelo.
In addition to the law enforcement partners described above, these successful efforts, including the drug and money seizures described below, would not be possible without the full support of the United States Coast Guard, Coast Guard Investigative Service (CGIS), the Federal Bureau of Investigation (FBI), CBP’s Caribbean Air and Marine Branch, Puerto Rico’s Joint Forces of Rapid Action (FURA), the United States Marshals Service (USMS), and JIATF-South.
RECENT MARITIME DRUG SEIZURES
August 27, 2020 590 kilos 4 defendants near Añasco, PR
August 24, 2020 225 kilos 3 defendants near Aruba
July 22, 2020 387 kilos 3 defendants near Añasco, PR
July 17, 2020 41 kilos 5 defendants near Añasco, PR
June 30, 2020 393 kilos 5 defendants Mona Passage
June 9, 2020 150 kilos 2 defendants Isla Saona, DR
OTHER RECENT MONEY SEIZURES
August 11, 2020 $ 150,000 CCSF/AirTAT LMMIA, PR
August 3, 2020 $ 298,010 DEA/DNCD/CCSF Samana, DR
June 29, 2020 $ 2,241,610 CCSF St. Thomas
June 10, 2020 $ 2,254,378 DEA/CBP Vieques, PR
The Caribbean Corridor Strike Force (CCSF) is a multi-agency OCDETF Strike Force operating in the District of Puerto Rico. CCSF signatory agencies include the DEA, HSI, FBI, CGIS, USMS, and the U.S. Attorney’s Office. Assistant U.S. Attorney Max Pérez Bouret is the Chief of the Transnational Organized Crime (TOC) Section and Assistant U.S. Attorney Vanessa Bonhomme is the Deputy Chief of the TOC Section and the Lead CCSF Prosecutor.
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Acting Assistant Attorney General Ethan P. Davis Announces Departure from Civil DivisionRead the Press Release
Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division announced his departure from the Department today, effective Sept. 7, 2020. Assistant Attorney General Jeffrey Bossert Clark of the Environment and Natural Resources Division will replace Mr. Davis.
“I want to thank Ethan for stepping up and leading the Civil Division these last few months,” said Attorney General William P. Barr. “Ethan is an outstanding lawyer – his work has been integral to the Civil Division’s successes over the past few years and I know his talents and leadership will be sorely missed. I also want to thank Jeff Clark, who has done a fantastic job leading the Department’s Environment and Natural Resources Division, for stepping in to lead the Civil Division after Ethan’s departure.”
“I am honored and humbled to have served alongside the dedicated lawyers and staff in the Civil Division,” said Acting Assistant Attorney General Ethan P. Davis. “Many of the most talented people in the federal government work in the Civil Division, and I am grateful to Attorney General Barr for giving me the opportunity to serve.”
Mr. Davis joined the Civil Division in 2017 as the Deputy Assistant Attorney General for the Consumer Protection Branch, where he oversaw civil and criminal enforcement actions designed to combat the opioid crisis and fraud on elderly Americans. Mr. Davis also served on the Deputy Attorney General’s Corporate Enforcement Working Group, which developed and implemented several significant policy reforms. After a year clerking for Justice Neil Gorsuch on the Supreme Court, he returned to the Justice Department as the Civil Division’s Principal Deputy Assistant Attorney General, and later the Acting Assistant Attorney General. In those roles, he supervised the Division’s civil defensive work, as well as implementation of the Division’s corporate enforcement policies, including the voluntary disclosure, cooperation, and remediation policies.
Under Acting Assistant Attorney General Davis’s leadership, the Civil Division has used every enforcement tool available to prevent wrongdoers from exploiting the COVID-19 crisis. In particular, Mr. Davis focused on the use of the False Claims Act (FCA) to address fraud and other illegal activity related to the COVID-19 stimulus programs, including the Paycheck Protection Program, the Main Street Credit Facility, and the provider relief fund. Mr. Davis also prioritized enforcement of the Food, Drug, and Cosmetic Act (FDCA) against fraudulent COVID-19 tests, treatments, purported cures, and other products. For example, in August 2020, the Civil Division, working with agency partners and the U.S. Attorney’s Office for the Middle District of Florida, obtained a Temporary Restraining Order against a defendant that operated hundreds of websites that fraudulently purported to sell products that became scarce during the pandemic, including hand sanitizer and disinfectant wipes.
During Mr. Davis’s tenure, the Civil Division also fought the opioid epidemic through actions under the FCA, the FDCA, and the Controlled Substances Act. The Civil Division pursued criminal and civil investigations into pharmaceutical companies, pharmacies, health care providers, and other entities for alleged unlawful activity related to the opioid crisis. In one matter, for example, the Civil Division and the U.S. Attorney’s Office for the District of Vermont reached a $145 million resolution with an electronic health records company for soliciting and receiving kickbacks from a major opioid company.
Additionally, under Mr. Davis’s leadership, the Civil Division also took aggressive steps to combat fraud on elderly Americans. The Civil Division prioritized using the FCA to pursue nursing homes that provide substandard care to residents, as well as other statutes against individuals and companies that use fraudulent robocalls to prey on American seniors. In August 2020, for example, the Civil Division and the U.S. Attorney’s Office for the Eastern District of New York successfully secured a permanent injunction barring two individuals and two companies that transmitted massive volumes of fraudulent robocalls from conveying any telephone calls into the U.S. telephone system.
31 August 2020
Wichita Man Sentenced to 8+ Years for Meth TraffickingRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced today to 100 months in federal prison for methamphetamine trafficking, U.S. Attorney Stephen McAllister said.
Myron L. Hite II, 43, Wichita, Kan., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted that when the Kansas Bureau of Investigation served a search warrant at his home in Wichita, they found more than half a pound of methamphetamine. They also found more than $14,000 in cash and two loaded firearms.
McAllister commended the KBI and Assistant U.S. Attorney Mona Furst for their work on the case.
Violent criminal sentenced to federal prison for multiple armed robberies, carjacking and home invasionRead the Press Release
SAVANNAH, GA: A Savannah man will spend 25 years in federal prison after sentencing for the violent robberies of two convenience stores, an armed home invasion, and car theft in 2018.
Brian Alexander Brooks, 23, of Savannah, was sentenced in U.S. District Court by Judge Lisa Godbey Wood to 300 months in prison for Interference with Commerce by Robbery; Using, Carrying and Discharging a Firearm During a Violent Crime; and Carjacking, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Brooks was order to pay $15,000 in restitution, and after completion of his prison sentence, he must serve five years of supervised release. There is no parole in the federal system.
“Brian Brooks is a violent, serial criminal who robbed and threatened innocent victims at gunpoint, stole a car, ran from police and fired shots to avoid apprehension,” said U.S. Attorney Christine. “Hard prison time will protect the community from further victimization by this violent predator.”
As spelled out in court proceedings and filings, the progressively escalating series of crimes for which Brooks is being incarcerated include:
- The July 12, 2018 robbery at gunpoint of the Murphy Express convenience store on Abercorn Street, in which Brooks pointed a pistol at the lone female clerk while demanding and receiving cash before fleeing;
- The July 15, 2018 robbery of the Parker’s convenience store on Abercorn Street, during which Brooks fired one round from a semi-automatic pistol into the ceiling to threaten the female clerk for taking too long in collecting cash from the register; and,
- A July 31, 2018 home invasion in Georgetown in which Brooks awakened and robbed a sleeping woman at gunpoint, then stole her car and led police on a chase through an apartment complex before crashing into a canal and firing shots during his escape from the vehicle. Brooks fled on foot but was apprehended days later with the assistance of the U.S. Marshal’s Service.
As a previously convicted felon, Brooks is prohibited from possessing a firearm.
“The only thing to be thankful for after Brooks’ reign of terror in July 2018 is that no one was killed, even though he showed a disregard for human life,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Once again it was our partnerships with federal and local law enforcement agencies that helped take this threat off our streets.”
The case was investigated by the FBI’s Southeast Georgia Violent Crimes Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the U.S. Marshal’s Service, the Savannah Police Department, and the Chatham County Police Department, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
United States Agrees with Power and Light Company to Resolve Alleged Violations of the Clean Air ActRead the Press Release
The United States announced today that Indianapolis Power & Light Company (IPL) has agreed to resolve alleged violations of the Clean Air Act and Indiana law by undertaking measures to improve its environmental compliance at the Petersburg Generating Station, in Pike County, Indiana. The State of Indiana is also a party to today’s agreement.
The settlement agreement resolves the claims under the Clean Air Act and related Indiana laws that the United States and Indiana have alleged against IPL in the complaint filed today in federal district court for the Southern District of Indiana.
The agreement, which is memorialized in a consent decree lodged today in the district court, requires IPL to reduce its plant’s emissions of nitrogen oxides (NOx), sulfur dioxide (SO2), particulate matter (PM) and sulfuric acid mist (H2SO4). IPL will install a pollution control device known as a Selective Non-Catalytic Reduction System (SNCR) on one of the plant’s coal-fired units, upgrade its sulfuric acid mitigation system, and continually operate all of its pollution control equipment to meet levels that will achieve reductions in NOx, SO2, PM and H2SO4 emissions.
The agreement recognizes that IPL may permanently retire two of its Petersburg units earlier than it had planned. Retirement of those units would result in emission reductions significantly greater than any reductions achieved by installing and operating the SNCR. Thus, IPL may forego installing that control device if it in fact retires the two units prior to July 1, 2023, the deadline under the consent decree by which IPL must install the SNCR.
Further, IPL will pay a total civil penalty of $1.525 million, of which $925,000 will go to the United States and $600,000 to the State of Indiana.
“The citizens of Indiana will breathe cleaner air, thanks to IPL’s agreement to significantly decrease its excess emissions,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill for the Justice Department’s Environment and Natural Resources Division. “We are pleased that our Indiana State counterparts have worked closely with our federal team to achieve this favorable result for the environment.”
“Working together with our state partners, EPA is helping to make the air cleaner in Indiana,” said EPA Region 5 Administrator Kurt Thiede. “This agreement will significantly reduce excess emissions of harmful air pollutants to protect public health and our environment.”
“Clean air is vital to Hoosiers’ long-term health, and IPL’s commitment to reducing the emissions from its Petersburg Generating Station is an environmentally conscious step in the right direction,” said Curtis Hill, Attorney General of Indiana.
Under the agreement, IPL will also undertake a project costing $5 million to mitigate the harm to the environment caused by the plant’s excess emissions over the years. IPL will submit a proposal to EPA and the State to construct and operate a system that will provide a new, non-emitting source of power at an on-site location known as the auxiliary electrical unit. The new source of power is expected to reduce emissions of SO2, NOx and PM from that unit.
In addition, at the request of Indiana, IPL will expend $325,000 to undertake a state-only environmentally beneficial project designed to restore and preserve some ecologically significant parcels of land near the plant.
Today’s settlement is subject to a 30-day public comment period following notification in the Federal Register and to final approval by the court. To view the consent decree or to submit a comment, visit the Department’s website at: www.justice.gov/enrd/Consent_Decrees.html.
For more information on this settlement: https://www.epa.gov/enforcement/indianapolis-power-light-settlement-information-sheet.
USVI Law Enforcement Agents and Members of the U.S. Attorney’s Office National OCDETF Award for Operation PY Beto Kilo and Drug Interdiction EffortsRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that federal and local Virgin Islands law enforcement officers, together with members of the Virgin Islands U.S. Attorney’s Office, have been selected as the recipients of a national award for an outstanding Organized Crime Drug Enforcement Task Force (OCDETF) investigation, Operation PY Beto Kilo. “This National OCDETF Award is an acknowledgement of the tremendous work of law enforcement and the U.S. Attorney’s Office to dismantle and disrupt transnational drug organizations. Together, we are apprehending the major drug dealers, the money-launderers, and the gun smugglers who threaten our way of life in the Territory. This success is just the start. Law enforcement is on the march. We will continue to arrest and prosecute narco-traffickers and seize their ill-gotten gains.” Shappert said. Law enforcement agency award recipients include: the Drug Enforcement Administration (DEA), U.S. Marshals Service (USMS), Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), U.S. Coast Guard (USGC), Transportation Security Administration (TSA), Bureau of Alcohol, Tobacco, Firearms and Explosive (ATF), U.S. Air Force (USAF), Virgin Islands National Guard (VING), Virgin Islands Police Department (VIPD), and the Virgin Islands U.S. Attorney’s Office (VI-USAO).
The Py Beto Kilo investigation focused on a sophisticated and structured drug trafficking organization that transported cocaine from Columbia through Venezuela on fishing vessels across the Caribbean Sea to an area 60 to 80 miles south of St. Croix. The drug trafficking organization, led by Jose Hodge in St. Croix, Omy Gutierrez-Calderon in Puerto Rico, and Sergio Quinones-Davila in Florida, operated with a high level of sophistication utilizing Venezuelan fishing fleets with established transportation routes to conduct mid-sea transfer. The organization sent decoy vessels ahead of the cocaine vessels. The cocaine vessels were equipped with a mechanism to sink the cocaine if a vessel were detected by law enforcement. Members of the organization communicated at sea using satellite telephones, Blackberries and Pin to Pin messaging. This mode of operation allowed the organization to engage in large-scale drug trafficking undetected for a number of years. Transporters from St. Croix and Puerto Rico, traveled in go-fast boats and met vessels at pre-determined GPS coordinates to conduct mid-sea transfers of cocaine. Members of the organization then transported the drugs to St. Croix and later transshipped them to Puerto Rico. A small quantity of drugs were distributed on St. Croix.
The investigation, led by Drug Enforcement Administration (DEA) on St. Croix, with assistance from other law enforcement agencies, identified 17 members of the organization: two (2) in South America, three (3) in St. Croix, ten (10) in Puerto Rico, and two (2) in Florida. The investigation also revealed that the organization smuggled approximately 50 to 100 kilograms of cocaine per shipment every few months. The cocaine sold for about $14,000 per kilogram on St. Croix, and $24,000 per kilogram on Puerto Rico. During the course of the investigation, approximately $1,500,000.00, 300 kilograms of cocaine and several firearms were seized from this organization.
In 2016, the United States Attorney’s Office secured an indictment charging fifteen (15) members of the organization with drug trafficking offenses. Six members were convicted on guilty pleas, charges were dismissed against two (2) defendants, and the remaining six members went to a trial in the spring of 2017. The original trial lasted eight (8) weeks and ended in a hung jury due to suspected jury tampering. All six remaining defendants were convicted after a second trial in the spring and summer of 2018 that also lasted eight weeks.
U.S Attorney Shappert noted that the OCDETF Program was established in 1982 to mount a comprehensive attack and reduce the supply of illegal drugs in the United States and to diminish the violence and other criminal activity associated with the drug trade. It is the centerpiece of the United States Attorney General’s strategy to reduce the availability of illicit narcotics. “OCDETF operates nationwide and combines the resources and the expertise of federal agencies, working in conjunction with their local partners, to target drug trafficking, gun smuggling, and money laundering organizations,” she said. “OCDETF agents, task force officers, and prosecutors handle complex investigations and prosecutions of the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the United States. OCDETF facilitates joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence information derived from numerous sources.” The OCDETF awards recognize outstanding investigations from each of the OCDETF partner agencies.
The OCDETF program provides federal resources to federal and other partner law enforcement agencies to mitigate financial obstacles hindering criminal investigations. These criminal investigations are conducted by multi-agencies in a collaborated effort. OCDETF’s provide assets needed to conduct thousands of criminal investigations, which traverse the United States, the territories, and in some instances span to criminal organizations operating in foreign countries.
In OCDETF’s coordinated attack against drug trafficking and money laundering organizations, OCDETF formulated the Consolidated Priority Organization Target (CPOT) list. The CPOT list is a multi-agency target list of “command and control” elements of the most prolific international drug trafficking and money laundering organizations. Through the combined efforts of law enforcement agencies operating under the OCDETF umbrella, CPOTs are targeted with the goal of disrupting or dismantling their operations.
OCDETF’s mission is straightforward: to arrest drug traffickers, dismantle and disrupt drug trafficking and money laundering organizations, reduce the illegal drug supply, seize assets, and bring criminals to the United States justice system or other competent jurisdictions.
U.S. DOJ’s Office on Violence Against Women Awards Center for Community Solutions $800,000 to Assist San Diego Domestic Violence VictimsRead the Press Release
NEWS RELEASE SUMMARY – August 31, 2020
SAN DIEGO – U.S. Attorney Robert Brewer announced today that the U.S. Department of Justice Office on Violence Against Women (OVW) has awarded $800,000 in grant funding to the Center for Community Solutions (CCS), which has three San Diego locations (in Mission Bay, Escondido and El Cajon) that provide legal services to survivors of sexual assault, stalking, domestic violence and dating violence.
“Addressing the many needs of women who are threatened by or subjected to violence is a top priority for the Department of Justice,” said U.S. Attorney Robert Brewer. “This award will help to ensure that all victims are able to access the assistance and support they need to seek the recourse and protection afforded by our legal system.”
The Legal Assistance for Victims Grant (LAV) Program, which is authorized by 34 U.S.C. § 20121, is designed to increase the availability of civil and criminal legal assistance programs for adult and youth victims of domestic violence, dating violence, sexual assault, and stalking who are seeking relief in legal matters relating to or arising out of that abuse or violence, at minimum or no cost to the victims. Eligible applicants are private nonprofit entities, Indian tribal governments and tribal organizations, territorial organizations, and publicly funded organizations not acting in a governmental capacity, such as law schools.
The $800,000 award to CCS will fund provision of comprehensive bilingual legal services to survivors of sexual assault, stalking, domestic violence, and dating violence. Funding from this award will enable the collaborative to support additional attorneys, provide legal assistance in nine areas of law, and serve additional clients. Founded in 1969, CCS served more than 17,000 adults and children last year to heal and prevent relationship and sexual violence. CCS operates the only rape crisis center in the city of San Diego along with a countywide 24-hour bilingual crisis helpline. The nonprofit agency also provides emergency domestic violence shelters, hospital and court accompaniment, as well as legal and counseling services for those affected by domestic violence, sexual assault and stalking. Individuals in need of help can reach CCS through its 24-hour, confidential hotline: 1-888-385-4657. In addition to providing services, CCS collaborates with community partners to offer prevention programs that promote healthy relationships and peaceful communities.
OVW currently administers 19 grant programs authorized by the Violence Against Women Act (VAWA) of 1994 and subsequent legislation. These grant programs are designed to develop the nation’s capacity to reduce domestic violence, dating violence, sexual assault, and stalking by strengthening services to victims and holding offenders accountable.
Two North Carolina Tax Preparers Indicted for False ReturnsRead the Press Release
WASHINGTON – A federal grand jury in Greensboro, North Carolina, returned an indictment today charging two tax preparers with conspiring to defraud the United States and assisting in the preparation of false client tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to the indictment, Karen Marie Jones owned Jones and Stone Taxes, a tax preparation business in Durham, North Carolina. From 2012 through 2017, Jones and Audrey Renatta Odom allegedly conspired to falsify clients’ tax returns by fabricating education expenses that clients did not incur, in an effort to increase refunds to be paid by the IRS. Jones, Odom, and others allegedly charged some clients up to $3,000 for preparing their return.
If convicted, Jones and Odom each face a maximum sentence of five years in prison for conspiracy and three years in prison on each count of aiding and assisting in the preparation of a false tax return. The defendants also face a period of supervised release, restitution, and monetary penalties.
An indictment or information merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation who conducted the investigation, and Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Two North Carolina Tax Preparers Indicted for False ReturnsRead the Press Release
A federal grand jury in Greensboro, North Carolina, returned an indictment today charging two tax preparers with conspiring to defraud the United States and assisting in the preparation of false client tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to the indictment, Karen Marie Jones owned Jones and Stone Taxes, a tax preparation business in Durham, North Carolina. From 2012 through 2017, Jones and Audrey Renatta Odom allegedly conspired to falsify clients’ tax returns by fabricating education expenses that clients did not incur, in an effort to increase refunds to be paid by the IRS. Jones, Odom, and others allegedly charged some clients up to $3,000 for preparing their return.
If convicted, Jones and Odom each face a maximum sentence of five years in prison for conspiracy and three years in prison on each count of aiding and assisting in the preparation of a false tax return. The defendants also face a period of supervised release, restitution, and monetary penalties.
An indictment or information merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation who conducted the investigation, and Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Troy Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
ALBANY, NEW YORK – Selvin Joiner, age 29, of Troy, New York, pled guilty today to distributing crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.
Joiner admitted that on June 28, 2020, he sold approximately 26 grams of cocaine base (a/k/a crack cocaine) to a buyer in Troy.
Joiner faces up to 20 years in prison, a term of post-imprisonment supervised release of at least 3 years, and a fine of up to $1 million, when he is sentenced by Senior United States District Judge Fredrick J. Scullin, Jr. on December 9, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and its Capital District Drug Enforcement Task Force, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
Statement from the U.S. Attorney's Office for the District of Columbia in Response to Mayor Muriel Bowser's Press Conference TodayRead the Press Release
WASHINGTON – Over the past year, the United States Attorney’s Office for the District of Columbia has charged more than 9,500 cases, which include more than 2,500 felony cases. Specifically, with regard to the spike in protest-related violence throughout the District this summer, the Office aggressively charged 121 criminal cases from May 28, 2020 to August 1, 2020. These cases included assault and battery on local police officers and federal agents, arson cases, and the destruction of both private and government property. Most recently, over this past weekend alone, the Office brought criminal charges against five individuals linked to protest-related violence – two of those cases involved assaults on police officers.
Mayor Muriel Bowser’s public statement today related to the United States Attorney’s Office reluctant to prosecute “68 outstanding arrest warrants” is patently false and serves no purpose other than to pass blame and foster innuendo. Since the protests began, this Office has never turned down a single case for prosecution in which there was sufficient evidence to support probable cause.
The Office remains committed to keeping the community safe, but also holds true to the rule of law and constitutional protections for all citizens.
Six Indicted in Money Laundering Schemes Tied to Nigerian ScamsRead the Press Release
PROVIDENCE – A federal grand jury in Providence has returned a superseding indictment charging six individuals with allegedly laundering millions of dollars gained through multi-faceted fraud schemes run out of Nigeria, primarily targeting elderly U.S. citizens.
It is alleged that dozens of victims were befriended by scammers feigning romantic intentions through online social media platforms and dating sites. Scammers used the relationships and trust they built to convince victims to provide them with money to assist with business ventures or debt.
Other victims were allegedly convinced by Nigerian scammers that they had won a sweepstakes, but that upfront cash payments were required to release the funds to the winner. Yet other victims were allegedly scammed by paying rent to individuals who purported to own property they in fact did not own or control. In addition, other victims were scammed into paying fraudulent shipping costs for items sold online.
“Elder fraud is an international crime that finds its victims wherever they live. Federal, state, and local law enforcement has made it a priority to do whatever it takes to track down and hold accountable fraudsters, particularly those who target our vulnerable populations, no matter where they are,” said United States Attorney Aaron L. Weisman. “As in this investigation, often times victims first reach out to their local police departments to report they have been swindled. Led by the FBI and US Postal Inspection Service, nearly two-dozen law enforcement agencies worked together to identify this group of fraudsters and to hold them responsible for their selfish, reprehensible actions preying on one of our most vulnerable population.”
“These individuals are accused of conspiring to scam dozens of unsuspecting victims all over the country, including right here in the Ocean State, out of millions of dollars, using a variety of fraudulent schemes that we traced right back to Nigeria,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Every day, the FBI and our law enforcement partners are working hard to put these fraudsters out of business. This case should serve as a reminder to view every contact with a stranger with skepticism and don’t trust anyone calling, texting or emailing with a deal that sounds too good to be true.”
An FBI investigation, with substantial assistance from U.S. Postal Inspection Service, and the Tallmadge, Ohio, and Moscow, Idaho, Police Departments, determined that victims were instructed by scammers in Nigeria to wire cash to bank accounts or to mail payments in the form of cash or money orders to various mailing addresses controlled by scammers in Rhode Island. It is alleged that to conceal the source and location of the funds, members of the conspiracy moved the money through multiple banks and businesses in Rhode Island and Idaho, and elsewhere. Much of the proceeds were eventually sent on to Nigeria. Members of the conspiracy also used ill-gotten cash to purchase vehicles that were shipped to Nigeria.
The grand jury returned a superseding indictment on Friday charging Adetunji Abudu, 34, and Olabode Shaba, 33, of North Providence; Dotun Olawale Alonge, 44, and Oladipupu Shodipo, 41, of Providence; Samson Ikotun, 33, of East Providence; and Oluwaseyi Akintola, 35, of Moscow, Idaho with money laundering conspiracy and money laundering.
Oladipupu Shodipo was arrested this morning and appeared before U.S. District Court in Providence. He was released on unsecured bond.
Samson Ikotun, previously charged with conspiracy and money laundering, is detained in federal custody while awaiting trial. He is scheduled to be arraigned on the superseding indictment on September 9, 2020.
Olabode Shaba, previously charged with conspiracy and money laundering, is currently on home detention awaiting trial. He is scheduled to be arraigned on the superseding indictment on September 2, 2020.
Arrest warrants have been issued for Abudu, Alonge, and Akintola.
The ongoing investigation and return of a superseding indictment in this matter are announced by United States Attorney Aaron Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, Inspector in Charge of the U.S. Postal Inspection Service Joseph W. Cronin, Tallmadge, Ohio, Police Chief Ronald Williams, and Moscow, Idaho, Police Chief James Fry.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant U.S. Attorney John P. McAdams.
United States Attorney Aaron Weisman and FBI Boston Division Special Agent in Charge Joseph R. Bonavolonta thank United States Customs and Border Patrol; United States Secret Service; Rhode Island State Police; Providence, North Providence, East Providence, and Johnston, RI, Police Departments; Seekonk, Newton, Norfolk, and Hull, MA, Police Departments; New York State Police; Murphysboro, IL, Police Department; Greybull, WY, Police Department; Grand Island, NE, Police Department; Boca Raton, FL, Police Department; Lake County, FL, Sheriff’s Office; Brecknock Township, PA, Police Department; East Ridge, TN, Police Department; and San Angelo, TX, Police Department for their assistance in this investigation.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. If you are a victim or know a victim of elder fraud, you can call 1-877-FTC-HELP or go to ftc.gov/complaint. For downloadable Elder Abuse Prevention resources and for information about community outreach programs in Rhode Island, visit the United States Attorney’s Office’s Elder Justice Initiative web page at https://www.justice.gov/usao-ri/elder-justice
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Schenectady Man Pleads Guilty to Crack Cocaine DistributionRead the Press Release
ALBANY, NEW YORK – Robert J. Chaires, age 40, of Schenectady, New York, pled guilty today to twice distributing crack cocaine in 2017.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Chaires admitted that on January 20, 2017 and again on March 2, 2017, he sold more than 28 grams of cocaine base (a/k/a crack cocaine) to a buyer in Schenectady.
Chaires faces at least 10 years and up to life in prison when he is sentenced by Senior United States District Judge Frederick J. Scullin, Jr. on December 8, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Saratoga County Drug Dealer Sentenced to 20 Years for Fentanyl Overdose DeathRead the Press Release
ALBANY, NEW YORK – Steven M. Boice, age 30, was sentenced today to 20 years in prison for distributing furanyl fentanyl that caused an overdose death in Saratoga County in February 2017.
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 November 2019, Boice admitted that he sold controlled substances, including furanyl fentanyl, from his residence in Saratoga Springs, New York.
Early on February 3, 2017, he sold approximately 50 small envelopes, each containing furanyl fentanyl, to B.L., a Saratoga County man who overdosed and died that same day. Boice has also admitted that when B.L. arrived at his house on February 3, B.L. seemed incoherent, but Boice sold him drugs anyway. B.L. ingested some of the fentanyl while at Boice’s residence and fell down while leaving. Boice and his roommate put B.L. on their back porch in the cold air and sat with him for approximately 45 minutes, slapping him to keep him awake. B.L. “snapped back into it,” according to Boice, and left Boice’s residence. B.L. died at home later on February 3 after ingesting more fentanyl sold to him by Boice. (The roommate died months later, also due to a drug overdose.)
United States Attorney Grant C. Jaquith stated: “Steven Boice did not care whether his customers lived or died. Today’s sentence holds him responsible for the avoidable and senseless death of a young man, and the daily pain and suffering of that man’s wife and parents. Heroin and fentanyl dealers should take notice that they are accountable for the overdoses of their customers, and that a 20-year prison term could be in their future.”
DEA Special Agent in Charge Ray Donovan stated: “Too many lives were changed because of a drug transaction in Saratoga Springs. This investigation traced a drug overdose to a local drug trafficker whose actions caused a man’s death, a family’s loss, and a 20-year prison sentence. This case also emphasizes the consequences of drug trafficking and reminds traffickers that law enforcement won’t rest until those responsible are brought to justice.”
Saratoga Springs Police Chief Shane Crooks stated: “Today, thanks to the hard work of all agencies involved, Steven Boice was held accountable for his actions. While this does not remove the pain that the family of B.L. has gone through, I can only hope that it will help bring them some closure.”
On February 10, 2017 – a week after B.L.’s death – law enforcement executed a search warrant on Boice’s residence in downtown Saratoga Springs, and found furanyl fentanyl packaged for sale and 2 firearms. Boice admitted to possessing a total of 363 green-colored envelopes containing furanyl fentanyl.
Boice also admitted to possessing 2 firearms to protect his drugs and drug proceeds. When law enforcement entered his house on February 10, 2017, Boice had a loaded Mossberg Maverick shotgun, leaning against a wall of his bedroom and directly next to the door, and a loaded DPMS Panther Arms .223-5.56 mm semi-automatic rifle, under his bed.
Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release, to begin after Boice’s release from prison.
This case was investigated by the DEA and its Capital District Drug Enforcement Task Force; the Saratoga Springs Police Department; and the New York State Police. The Saratoga County District Attorney’s Office assisted in the investigation.
This case was prosecuted by Assistant U.S. Attorney Michael Barnett.
San Jose Man Sentenced to Ten Years in Prison for Possession of Child PornographyRead the Press Release
SAN JOSE – James Gould, Jr. was sentenced today to 10 years in prison, and ordered to pay $12,000 in restitution for possession of child pornography, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Gould pleaded guilty on February 3, 2020, to Possession of Child Pornography. According to the plea agreement, Gould admitted that on June 15, 2019, while on supervised release from a prior child pornography conviction, a probation officer conducted a random inspection of Gould’s cell phone, revealing that it had child pornography images on it. As a result, a search was conducted of Gould’s residence, located in San Jose, California. In his bedroom were 26 electronic devices capable of accessing the internet or processing or storing data, which Gould was prohibited from possessing as part of his supervised release conditions. As part of his plea agreement, Gould further admitted that on one of his devices he possessed 556 child pornography images and 169 child pornography videos. The images and videos that Gould possessed depicted infants and toddlers engaged in sexually explicit conduct, including sadistic or masochistic conduct and sexual abuse or exploitation of an infant or toddler.
Gould, 32, of San Jose, was charged by an Information filed on January 30, 2020. He was charged with Possession of Child Pornography.
The sentence was handed down by The Honorable Edward J. Davila, U.S. District Court Judge, following a guilty plea on one count of Possession of Child Pornography in violation of 18 U.S.C. § 2252(a)(4)(B). Judge Davila also sentenced the defendant to an 8 year period of supervised release. The defendant has been in continuous custody since his initial appearance on the related supervised release violation (CR 12-00464 EJD) on June 27, 2019.
Chinhayi Cadet is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Jessica Leung. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Randolph County woman indicted on methamphetamine, fentanyl, and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Patricia Ann Mahoney, of Elkins, West Virginia, is facing drug and firearms charges, U.S. Attorney Bill Powell announced.
Mahoney, 50, was indicted on four counts of “Distribution of Methamphetamine,” one count of “Distribution of Fentanyl,” one count of “ Distribution of More Than Five Grams of Methamphetamine,” and one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Mahoney is accused of selling methamphetamine and fentanyl in April 2019 and February 2020 in Randolph County. She is also accused of having a .22 caliber pistol with her during a drug sale in February 2020.
Mahoney faces up to 20 years of incarceration and a fine of up to $1,000,000 for each of the distribution charges. She faces at least five years and up to 40 years of incarceration and a fine of up to $5 million for the distribution of more than five grams of meth charge. Mahoney faces at least five years of incarceration and a fine of up to $250,000 for the possession of a firearm in furtherance of a drug crime charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Randolph County woman indicted on methamphetamine and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Tara Lynn Leary, of Valley Head, West Virginia, is facing drug and firearms charges, U.S. Attorney Bill Powell announced.
Leary, 30, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams of Methamphetamine,” one count of “Possession with Intent to Distribute More Than Fifty Grams of Methamphetamine,” one count of “ Distribution of More Than Five Grams of Methamphetamine,” and one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Leary is accused of distributing more than 50 grams of methamphetamine from August 2019 to March 2020 in Randolph County. She is also accused of having a .380 caliber postil with her during one drug trafficking crime in January 2020.
Leary faces not less than 10 years and up to life incarceration and a fine of up to $10,000,000 for each of the conspiracy and possession of meth charges. She faces at least five years and up to 40 years of incarceration and a fine of up to $5 million for the distribution of more than five grams of meth charge. Leary faces at least five years of incarceration and a fine of up to $250,000 for the possession of a firearm charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Randolph County residents indicted on methamphetamine and heroin chargesRead the Press Release
ELKINS, WEST VIRGINIA – Jesse David Tolson and Melissa Ann Slayton, both of Elkins, West Virginia, are facing drug charges, U.S. Attorney Bill Powell announced.
Tolson, 34, and Slayton, 35, were each indicted on one count of “Conspiracy to Distribute More Than 50 Grams of Methamphetamine.” Tolson was also indicted on two counts of “Possession with Intent to Distribute More Than Fifty Grams of Methamphetamine” and one count of “Possession with Intent to Distribute Heroin.” Slayton is also facing one count of “Possession with Intent to Distribute More Than Five Grams of Methamphetamine.”
The two are accused of having more than 50 grams of methamphetamine in November and December 2019 in Randolph County. Tolson is also accused of having heroin in November 2019 in Randolph County.
Tolson faces at least 10 years and up to life incarceration and a fine of up to $10 million for each of the methamphetamine charges. He faces up to 20 years of incarceration and a fine of up to $1,000,000 for the heroin charge. Slayton faces at least 10 years and up to life incarceration and a fine of up to $10 million for the conspiracy charge. She faces at least five years and up to 40 years of incarceration for the possession charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Randolph County man indicted on methamphetamine and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Joshua Derek Raines, of Elkins, West Virginia, is facing drug and firearms charges, U.S. Attorney Bill Powell announced.
Raines, 37, was indicted on one count of “Conspiracy to Distribute at Least Fifty Grams of Methamphetamine,” one count of “Possession with Intent to Distribute at Least Fifty Grams of Methamphetamine,” and one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Raines is accused of having at least 50 grams of methamphetamine in August 2019 in Randolph County. He is also accused of having a .40 caliber pistol during a drug trafficking crime in August 2019.
Raines faces not less than 10 years and up to life incarceration and a fine of up to $10,000,000 for each of the conspiracy and possession of meth charges. Raines faces at least five years of incarceration and a fine of up to $250,000 for the possession of a firearm charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Randolph County man indicted on methamphetamine and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Casey Warren Lang, of Huttonsville, West Virginia, is facing drug and firearms charges, U.S. Attorney Bill Powell announced.
Lang, 29, was indicted on one count of “Possession with Intent to Distribute at Least Fifty Grams of Methamphetamine,” and one count of “Unlawful Possession of Firearm.” Lang, a person prohibited from having firearms because of a prior conviction, is accused of having at least 50 grams of methamphetamine and 13 firearms in June 2019 in Randolph County.
Lang faces not less than 10 years and up to life incarceration and a fine of up to $10,000,000 for the meth charge. He faces up to 10 years of incarceration and a fine of up to $250,000 for the firearms charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mountain Region Drug & Violent Crimes Task Force, and the Randolph County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Raleigh County Man Sentenced for Sex Offense Involving MinorRead the Press Release
BECKLEY, W.Va. – A Raleigh County man was sentenced to federal prison for a sex crime involving a minor, announced United States Attorney Mike Stuart. Gary Wayne Lilly, 40, of Josephine, was sentenced to 46 months in prison for traveling in interstate commerce with the intent to engage in illicit sexual activity with a minor. Upon release from prison, Lilly will serve a term of supervised release of 10 years and will be required to register as a sex offender.
“The depravity of these types of cases is difficult to fathom,” said United States Attorney Mike Stuart. “But make no mistake, my office protects children. It is my top priority to hold these predators accountable.”
Lilly previously admitted that beginning in late May 2019 he communicated via a social messaging application and telephone with a minor he believed to be a 13-year-old girl in Bluefield. During the conversations, Lilly discussed meeting the minor female to engage in oral sex and sexual intercourse. On June 1, 2019, Lilly traveled from Josephine to Bluefield, Virginia, to meet the purported 13-year-old minor. Lilly stopped in Princeton on his way to Bluefield, Virginia in order to purchase condoms.
The investigation was conducted by the FBI Violent Crimes Against Children Task Force and the Mercer County Sheriff’s Office. United States District Judge Frank Volk imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald handled the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:19-cr-00161.
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Plainview Man Charged with Assisting a Meth Trafficker’s Prison EscapeRead the Press Release
A Plainview man was charged today with assisting a meth trafficker’s prison escape, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Juan Anthony Cordero, 25, was arrested by United States Marshals Service’s North Texas Fugitive Task Force (NTFTF) on Saturday. He made his initial appearance in court today.
According to a criminal complaint unsealed today, Mr. Cordero spoke with Mark Lucio, a prisoner in federal custody at the Bailey County Jail to allegedly plan and assist with his escape. Mr. Lucio was in federal custody following his June 3rd guilty plea for possession to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime.
On August 28, Mr. Cordero was seen on a video call with Mr. Lucio allegedly discussing the details of a prison escape that was to occur the next day. Mr. Cordero and Mr. Lucio allegedly discussed the time for the escape and the vehicle Mr. Cordero would be driving.
On the morning of August 29, Mr. Lucio called Mr. Cordero minutes before the planned prison escape was to take place to advise Mr. Cordero with last minute instructions. Mr. Lucio made his escape through a sally port door at the Bailey County Jail and ran to Mr. Cordero’s car and they fled the area together.
Shortly after the escape, the Hale County Sheriff’s Office was notified by the NTFTF to be on the lookout for Cordero’s vehicle. Deputies with the Hale County Sheriff’s Office located Cordero’s car at a residence in Plainview, Texas. NTFTF members, along with deputies with the Hale County Sheriff’s Office and the Texas Department of Public Safety made contact with Mr. Cordero at the residence.
Following an interview with NTFTF officers, Mr. Cordero admitted to helping Mr. Lucio escape from the Bailey County Jail. Mr. Cordero allegedly said that he also gave Mr. Lucio a 9mm pistol and he dropped Mr. Lucio off at a residence in Abernathy, Texas. NTFTF members found Mr. Lucio at that residence and took him into custody without incident.
A criminal complaint is formal accusations of criminal conduct, not evidence. The defendant is presumed innocent unless and until proven guilty in a court of law.
If convicted of the charged offense, Mr. Cordero faces up to 5 years in federal prison.
The United States Marshal Service, Texas Department of Public Safety, Bailey County Sheriff’s Office, and Hale County Sheriff’s Office are investigating this case. Assistant U.S. Attorney Jeffrey Haag is prosecuting this case.
Pendleton County man indicted on methamphetamine and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Cody Alan Grapes, of Riverton, West Virginia, is facing drug and firearms charges, U.S. Attorney Bill Powell announced.
Grapes, 31, was indicted on one count of “Possession with Intent to Distribute Methamphetamine,” one count of “Unlawful Possession of a Firearm,” and one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Grapes, who was previously convicted of a felony and prohibited from having a gun, is accused of having methamphetamine and a 5.56 mm rifle n November 2019 in Grant County.
Grapes faces up to 20 years of incarceration and a fine of up to $1,000,000 for the drug charge. He faces up to 10 years of incarceration and a fine of up to $250,000 for the unlawful possession charge. Grapes faces at least five years of incarceration and a fine of up to $250,000 for the possession of a firearm in furtherance of a drug crime charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Pair allegedly involved in deadly police chase indicted on federal drug, gun chargesRead the Press Release
CINCINNATI – A federal grand jury has charged the two individuals allegedly involved in an Aug. 7 chase through Cincinnati that resulted in the deaths of two bystanders in Newport, Ky. The indictment was returned Aug. 26 and unsealed today.
Mason Meyer, 28, and Kirsten Johnson, 22, both of Cincinnati, are charged federally with possessing with intent to distribute methamphetamine and possessing firearms in furtherance of a drug trafficking crime.
Meyer is also charged with illegally possessing a firearm as a convicted felon. In Campbell County, Ky., Meyer is charged with two counts of murder, endangerment, and fleeing and evading.
According to court documents, officials with the ATF, Cincinnati Police and the Northern Kentucky Drug Strike Force were surveilling Meyer in Cincinnati on Aug. 7 when Meyer drove away.
Cincinnati Police officers attempted to stop Meyer when he fled, causing a police chase through Cincinnati and into Covington and Newport, Ky.
Local court documents detail that Meyer’s vehicle struck and killed a couple dining on the patio of Press on Monmouth in Newport, Ky. Two other pedestrians were struck and suffered minor injuries.
At the time of the chase, the federal indictment alleges Meyer and Johnson possessed 50 grams or more of methamphetamine, two loaded handguns and a loaded rifle.
The methamphetamine charge in this case is punishable by five to 40 years in prison. Possessing firearms in furtherance of a drug trafficking crime is punishable by a minimum of five years in prison. Possessing a firearm as a convicted felon carries a potential maximum punishment of 10 years in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Cincinnati Police Chief Eliot K. Isaac and agencies with the Northern Kentucky Drug Strike Force announced the charges. Assistant United States Attorneys Timothy D. Oakley and Jennifer K. Weinhold are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Owner of Japanese Fishing Vessel Charged with Unlawful Trafficking of Shark FinsRead the Press Release
Hamada Suisan Co. Ltd., the owner of a Japanese-flagged fishing vessel, was charged in federal court with aiding and abetting the attempted export of shark fins out of Hawaii in violation of the Lacey Act, the Department of Justice announced today.
The charge arose from the November 2018 discovery of approximately 962 shark fins, weighing approximately 190 pounds, from the checked luggage of fisherman working aboard the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20 (Kyoshin Maru). The Kyoshin Maru had engaged in longline tuna fishing in the southern Pacific Ocean for approximately one year prior, utilizing a crew of officers who were Japanese nationals and fishermen who were Indonesian nationals. In the course of the voyage, crew members harvested fins from approximately 300 sharks.
On or about Nov. 6, 2018, the Kyoshin Maru traveled near Hawaii, and its Indonesian crew members legally entered the United States in order to board return flights departing from Honolulu International Airport. During routine screening, Transportation Security Administration officers discovered the shark fins in 10 of the fishermen’s checked luggage. The U.S. Fish and Wildlife Service seized the shark fins, which it later determined were worth as much as $57,850 on the black market.
Some of the shark fins were from oceanic whitetip sharks, which are listed as threatened species under the Endangered Species Act and are protected under the Convention on International Trade in Endangered Species (CITES), an international convention with over 180 parties, including the United States, Japan, and Indonesia. According to the National Oceanic and Atmospheric Administration, the oceanic whitetip shark has declined by approximately 80-95 percent across the Pacific Ocean since the mid-1990s. Other fins were from silky sharks and bigeye thresher sharks, which are also protected under the CITES Convention.
“Shark finning is a cruel practice, prohibited by federal law, numerous states, including Hawaii, and multilateral bodies to which both the United States and Japan belong,” said Assistant Attorney General Jeffrey B. Clark for the Environment and Natural Resources Division. “The charge filed today reflects the United States’ serious commitment to enforcing these bans and ending this practice.”
“Shark finning is inhumane, intolerable, and takes a very real toll on our precious ocean ecosystem," said U.S. Attorney Kenji M. Price for the District of Hawaii. “My office is committed to combatting this cruel practice by prosecuting to the fullest extent of the law anyone found to be trafficking in these types of shark fins.”
The charge filed today accuses Hamada Suisan Co. Ltd., of unlawfully trafficking shark fins. U.S. laws prohibit, within U.S. jurisdiction: the removal of any fins of any shark at sea; the possession of such fins aboard a fishing vessel that are not attached to the corresponding carcass, and; the transfer or landing of any such detached fin. Some of these laws implement U.S. obligations under international conventions. In addition, the laws of the State of Hawaii make it unlawful for any person to possess, sell, offer for sale, trade, or distribute shark fins. Due in part to the over-harvest of sharks, some species of shark — including three species found among the fins at issue in this case — are protected under the CITES Convention.
The charge in the Information is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from: the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Homeland Security Investigations; U.S. Customs and Border Protection; the U.S. Postal Inspection Service, and; the U.S. Coast Guard. It is being prosecuted by Assistant U.S. Attorney Marc A. Wallenstein, U.S. Attorney’s Office for the District of Hawaii, and Senior Counsel for Wildlife Programs Elinor Colbourn, Environmental Crimes Section, and the U.S. Department of Justice. The prosecution team is coordinating with the U.S. Department of State on this matter.
Owner of Japanese Fishing Vessel Charged with Unlawful Trafficking of Shark FinsRead the Press Release
HONOLULU – Hamada Suisan Co. Ltd., the owner of a Japanese-flagged fishing vessel, was charged in federal court today with aiding and abetting the attempted export of shark fins out of Hawaii in violation of the Lacey Act.
The charge arose from the November 2018 discovery of approximately 962 shark fins weighing approximately 190 pounds from the checked luggage of fisherman working aboard the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20 (“Kyoshin Maru”). The Kyoshin Maru had engaged in longline tuna fishing in the southern Pacific Ocean for approximately one year prior, utilizing a crew of officers who were Japanese nationals and fishermen who were Indonesian nationals. In the course of the voyage, crew members harvested fins from approximately 300 sharks.
On or about November 6, 2018, the Kyoshin Maru traveled near Hawaii, and its Indonesian crew members legally entered the United States in order to board return flights departing from Honolulu International Airport. During routine screening, Transportation Security Administration officers discovered the shark fins in 10 of the fishermen’s checked luggage. The U.S. Fish and Wildlife Service seized the shark fins, which it later determined were worth as much as $57,850 on the black market.
Some of the shark fins were from oceanic whitetip sharks, which are listed as threatened species under the Endangered Species Act and are protected under the Convention on International Trade in Endangered Species (CITES), an international convention with over 180 parties, including the United States, Japan and Indonesia. According to the National Oceanic and Atmospheric Administration, the oceanic white tip shark has declined by approximately 80-95% across the Pacific Ocean since the mid-1990s. Other fins were from silky sharks and bigeye thresher sharks, which are also protected under the CITES Convention.
The charge filed today accuses Hamada Suisan Co. Ltd., of unlawfully trafficking shark fins. The charge in the Information is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In announcing the charge, U.S. Attorney for the District of Hawaii, Kenji M. Price stated: “Shark finning is inhumane, intolerable, and takes a very real toll on our precious ocean ecosystem. My office is committed to combatting this cruel practice by prosecuting to the fullest extent of the law anyone found to be trafficking in these types of shark fins.”
“Shark finning is a cruel practice, prohibited by federal law, numerous states, including Hawaii, and multilateral bodies to which both the United States and Japan belong,” said Assistant Attorney General Jeffrey B. Clark for the Environment and Natural Resources Division. “The charge filed today reflects the United States’ serious commitment to enforcing these bans and ending this practice.”
United States laws prohibit, within U.S. jurisdiction: the removal of any fins of any shark at sea; the possession of such fins aboard a fishing vessel that are not attached to the corresponding carcass; and the transfer or landing of any such detached fin. Some of these laws implement U.S. obligations under international conventions. In addition, the laws of the State of Hawaii make it unlawful for any person to possess, sell, offer for sale, trade, or distribute shark fins. Due in part to the over-harvest of sharks, some species of shark—including three species found among the fins at issue in this case—are protected under the CITES Convention.
This case is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from: the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Homeland Security Investigations; U.S. Customs and Border Protection; the U.S. Postal Inspection Service; and the U.S. Coast Guard. It is being prosecuted by Assistant U.S. Attorney Marc A. Wallenstein, U.S. Attorney’s Office for the District of Hawaii, and Senior Counsel for Wildlife Programs Elinor Colbourn, Environmental Crimes Section, and the U.S. Department of Justice. The prosecution team is coordinating with the U.S. Department of State on this matter.
Opioid Manufacturer Indivior’s Former Global Medical Director Pleads Guilty in Connection with Drug Safety ClaimsRead the Press Release
ABINGDON, VIRGINIA – Timothy Baxter, the former global medical director of Indivior, pleaded guilty today in U.S. District Court in Abingdon to a one-count misdemeanor information charging him with causing the introduction into interstate commerce of the opioid drug Suboxone Film, which was misbranded in violation of the Federal Food, Drug, and Cosmetic Act. Indivior’s former chief executive officer, Shaun Thaxter, recently pleaded guilty to a similar charge.
Baxter was the top medical executive of Indivior (formerly known as Reckitt Benckiser Pharmaceuticals) from 2000 until he left the company in May 2016. Indivior and one of its subsidiaries have agreed to pay $600 million to resolve their criminal and civil liability, with the subsidiary pleading guilty to making false statements relating to health care matters. Indivior’s former parent company, Reckitt Benckiser Group, previously paid $1.4 billion to resolve its liability.
Suboxone Film is a drug approved for use by recovering opioid addicts to avoid or reduce withdrawal symptoms while they undergo drug-addiction treatment. Suboxone and its active ingredient, buprenorphine, are powerful and addictive opioids.
According to court documents, Baxter admitted that an Indivior employee he supervised sent inaccurate drug-safety information to the Massachusetts Medicaid agency, MassHealth, in 2012. More specifically:
- Baxter was familiar with the issue of unintended pediatric exposure – meaning children taking drugs by accident – and worked on it over several years.
- In 2012, Indivior had a contractor collect data on unintended pediatric exposure to buprenorphine drugs, with Baxter approving the project.
- In October 2012, an Indivior medical affairs manager who Baxter supervised met with MassHealth, and urged it to expand its coverage of Suboxone Film. In connection with the meeting, the medical affairs manager asked Indivior’s contractor for data on unintended pediatric exposure for data on Massachusetts. The contractor sent the data to the medical affairs manager. The data showed that other buprenorphine drugs – not Suboxone Film – had the lowest rate of unintended pediatric exposure in Massachusetts. But the medical affairs manager changed the data to make it appear that Suboxone Film had the lowest rate of unintended pediatric exposure in Massachusetts, and emailed the altered, inaccurate data to MassHealth. The medical affairs manager forwarded the email to Baxter, stating, “I hope this helps us get some movement” on expanding MassHealth coverage of Suboxone Film.
- Then in November 2012, the medical affairs manager emailed MassHealth an incomplete graph that intentionally omitted more data on unintended pediatric exposure that was arguably unfavorable to Suboxone Film. Baxter did not receive the email; but in another context, Baxter approved of using a similarly incomplete graph.
- Then, the following quarter, the medical affairs manager received still more data showing that other buprenorphine drugs had lower rates of unintended pediatric exposure than Suboxone Film in Massachusetts. The medical affairs manager withheld the data from MassHealth, and later stated in a speech at an Indivior corporate conference that her rationale was “don’t ask, don’t tell.”
- In December 2012, MassHealth announced that it would expand coverage of Suboxone Film for patients with children under the age of six.
- With Baxter’s approval, Indivior sent a correction letter to MassHealth in December 2015. By that time, the company had come under government investigation.
“Pharmaceutical company executives have a responsibility to ensure that their products are truthfully marketed, especially when those products are addictive opioids,” said Deputy Assistant Attorney General Daniel J. Feith of the Civil Division’s Consumer Protection Branch. “The Department of Justice will vigilantly protect public health by investigating and pursuing conduct associated with false and misleading drug claims.”
“Health care providers and insurers rely on pharmaceutical manufacturers for honesty and accuracy when they provide information, which is particularly crucial when a company markets a powerful opioid,” First Assistant Daniel Bubar said today. “Timothy Baxter failed to ensure Indivior provided accurate information to a major insurance provider. This is especially troubling, given Baxter’s long-time role as global medical director for the company. I am again proud of the extensive efforts of the investigative team, which shows we will not tolerate companies or executives who break the law by placing profits over honesty.”
“The opioid crisis has devastated families and communities across Virginia and around the country,” said Virginia Attorney General Mark Herring. “Opioid manufacturers and their executive leadership capitalized off of the opioid epidemic to sell more product, putting profits over safety. I am proud of the work my Medicaid Fraud Control Unit has done on these important cases and I want to thank our local, state and federal partners for their continued partnership.”
“Opioid addiction and abuse is a serious public health crisis and addressing it is one the FDA’s highest priorities. Providing misleading information about drugs used to treat opioid addiction could ultimately exacerbate the problem by making these treatments more difficult to obtain,” said Catherine Hermsen, Assistant Commissioner of the FDA’s Office of Criminal Investigations. “We will continue to work with the Department of Justice to investigate and hold accountable those who devise and participate in fraud schemes to the detriment of the public health.”
“The multiple Indivior prosecutions illustrate the hard work and dedication of investigators who focused on the case,” said Elton Malone, Assistant Inspector General for Investigations with the Office of Inspector General of the U.S. Department of Health and Human Services. “This resolution is emblematic of law enforcement’s continued focus on this opioid epidemic, and serves as a warning to those who would flout the law.”
“The Postal Service spends billions of dollars per year on health care related costs for its employees. It is the responsibility of special agents with the USPS OIG to ensure those dollars are paid to providers that follow the rules and regulations, and don’t try to cheat the government,” said U.S. Postal Service Office of Inspector General (USPS OIG) Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office. “When we discover someone is trying to obtain money they are not entitled to, we will aggressively pursue them in coordination with our law enforcement partners, and seek their criminal prosecution when appropriate. This case should serve notice to other pharmaceutical providers that we are watching you, and we will find you if you try to cheat.”
The case against Baxter is being prosecuted by attorneys from the U.S. Attorney’s Office for the Western District of Virginia, Virginia Attorney General’s Office, and the Department of Justice Civil Division’s Commercial Litigation Branch and Consumer Protection Branch, including Albert P. Mayer, Randy Ramseyer, Kristin L. Gray, Joseph S. Hall, Janine M. Myatt, Garth W. Huston, Carol Wallack, Jill P. Furman, Charles J. Biro, and Matthew J. Lash. The investigation of Baxter was handled by the FDA’s Office of Criminal Investigations; the Virginia Medicaid Fraud Control Unit; the United States Postal Service- Office of Inspector General; and the U.S. Department of Health and Human Services - Office of Inspector General. Assistance was provided by representatives of the FDA’s Office of Chief Counsel.
- Baxter was familiar with the issue of unintended pediatric exposure – meaning children taking drugs by accident – and worked on it over several years.