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30 July 2020
Former Prison Guard Sentenced to Prison for Smuggling ContrabandRead the Press Release
LITTLE ROCK—A Wynne man was sentenced today for his role in smuggling tobacco and cellular telephones into the Federal Correctional Complex in Forrest City where he worked as a guard. United States District Court Judge Kristine G. Baker sentenced Josue Duane Garza, 42, to 12 months and one day in federal prison. Cody Hiland, the United States Attorney for the Eastern District of Arkansas, announced today’s sentencing.
In June 2018, an inmate at the Federal Correctional Complex in Forrest City, Arkansas, informed prison officials that his family had been purchasing tobacco and cell phones and mailing them, along with cash, to Garza at a P.O. Box in Colt. The inmate reported that another inmate had started the scheme but had been transferred to another facility, leaving this inmate to take over the scheme.
Both inmates confirmed that their parents had purchased tobacco and cell phones, mailed them to Garza’s P.O. Box, and included cash. The parents received money orders and cash from other inmates’ families, who were paying for the inmates’ purchases. The inmates said they split the proceeds with Garza. In an interview, Garza admitted that he had conducted the scheme from October 2017 through July 2018 and received over $40,000. On August 23, 2019, Garza pleaded guilty to an Information charging him with Bribery of a Public Official.
“This defendant’s blatant contraband scheme was an abuse of his authority as a federal prison guard,” U.S. Attorney Hiland said. “Smuggling illicit cell phones into prison allows convicted felons to continue their criminal activity, even from inside the prison walls. Today’s sentence demonstrates that those who seek to profit from these underhanded dealings will soon find themselves among the inmates they formerly enabled.”
In addition to the prison term, Garza was sentenced to one year of supervised release following his imprisonment. The investigation was conducted by the Federal Bureau of Prisons, Department of Justice Office of Inspector General and U.S. Postal Inspection Service, and the case was prosecuted by Assistant United States Attorney Benecia Moore.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former Mexican Secretary of Public Security Genaro Garcia Luna Charged with Engaging in a Continuing Criminal EnterpriseRead the Press Release
A superseding indictment was returned today in federal court in Central Islip, New York, charging Genaro Garcia Luna, the former Secretary of Public Security in Mexico from 2006 to 2012, with engaging in a continuing criminal enterprise. Luis Cardenas Palomino and Ramon Pequeno Garcia, former high-ranking Mexican law enforcement officials who worked under Garcia Luna, are each charged with three counts of cocaine trafficking conspiracy. In exchange for multimillion-dollar bribes, the defendants allegedly permitted the Sinaloa Cartel to operate with impunity in Mexico. Garcia Luna was arrested on December 9, 2019 by federal agents in Dallas, Texas, and he is presently pending trial in the Eastern District of New York to face these charges. Cardenas Palomino and Pequeno Garcia are presently fugitives.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the superseding indictment.
"As alleged, for nearly two decades Garica Luna betrayed those he was sworn to protect by accepting bribes from members of the Sinaloa Cartel to facilitate their crimes and empower their criminal enterprise,” stated Acting United States Attorney DuCharme. “Through today’s superseding indictment, Garcia Luna and his co-conspirators will face justice for offenses involving the importation and the distribution of massive quantities of dangerous drugs into the United States.” Mr. DuCharme thanked the Drug Enforcement Administration (DEA) offices in New York and Houston for their work on the case.
As set forth in the superseding indictment and other court filings, from 2001 to 2012, while occupying high-ranking law enforcement positions in the Mexican government, Garcia Luna received millions of dollars in bribes from the Sinaloa Cartel in exchange for providing protection for its drug trafficking activities. From 2001 to 2005, Garcia Luna led Mexico’s Federal Investigation Agency, and from 2006 to 2012, he served as Mexico’s Secretary of Public Security, controlling Mexico’s Federal Police Force. Cardenas Palomino and Pequeno Garcia also were high-level Mexican law enforcement officials who worked under Garcia Luna during this time. They each received millions of dollars in bribes from the Sinaloa Cartel.
In exchange for the payment of bribes, between January 2001 and the present, the defendants abused their public positions by allowing the Sinaloa Cartel to obtain safe passage for its drug shipments, and by providing sensitive law enforcement information about investigations into the Cartel, and information about rival drug cartels, thereby facilitating the importation of multi‑ton quantities of cocaine and other drugs into the United States. For example, between 2002 and 2007, Garcia Luna allegedly aided at least six cocaine shipments totaling more than 50,000 kilos of cocaine. Additionally, the defendants placed other corrupt officials in positions of power in certain areas of Mexico controlled by the Sinaloa Cartel. On at least two occasions, the Cartel personally delivered bribe payments to Garcia Luna in briefcases containing millions of dollars.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
If convicted of the continuing criminal enterprise charge, Garcia Luna faces a mandatory minimum sentence of 20 years’ imprisonment and a maximum of life imprisonment. If convicted of a drug conspiracy charge, Cardenas Palomino and Pequeno Garcia each face a mandatory minimum sentence of 10 years’ imprisonment and a maximum of life imprisonment.
The investigation was led by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is based at the DEA’s New York Division and includes agents and officers of the DEA, New York City Police Department, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, United States Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
The government’s case is being prosecuted by the Eastern District’s International Narcotics and Money Laundering Section and Public Integrity Section. Assistant United States Attorneys Michael P. Robotti, Ryan Harris and Erin Reid are in charge of the prosecution.
The Defendants:
GENARO GARCIA LUNA
Age: 51
FloridaLUIS CARDENAS PALOMINO
Age: 51
MexicoRAMON PEQUENO GARCIA
Age: 53
MexicoE.D.N.Y. Docket No. 19-CR-576 (BMC)
Five Central Ohioans charged in conspiracy to kidnap Hilliard couple, impersonate law enforcementRead the Press Release
COLUMBUS, Ohio – A federal grand jury has indicted a victim’s ex-girlfriend and four of her associates for conspiring and attempting to kidnap her ex-boyfriend and his girlfriend. The indictment was filed today.
Denia I. Avila, 37, of Columbus, and co-conspirators allegedly impersonated federal law enforcement officers and used a Taser while attempting to kidnap the victims.
The four others charged include, Jessica E. Wise, 38, of Columbus; Ellis L. Ray, II, 19, of Canal Winchester; Michael K. Ousley, 43, of Columbus; and Jerry E. McCallister, Jr, 27, of Columbus.
According to court documents, the co-conspirators attempted to kidnap the two individuals on Nov. 25, 2019, and Dec. 4, 2019, near the victims’ residence in Hilliard.
An affidavit details that during the first attempt, two males wearing all black with black face masks approached the victims as they entered a vehicle around 5:30am. They Tased the male victim’s neck and attempted to remove him from his vehicle. The female victim screamed and the male victim was able to push the attacker back, causing both men to flee on foot.
In the second incident, also before 5:30 a.m., the female victim attempted to leave their residence in the male’s vehicle but was blocked in by the suspect’s vehicle.
It is alleged that two males – wearing black jackets with “Police” jacket patches and holding a photograph of the male victim – approached the truck yelling “Police, open the door.” They attempted to open the truck door, but the victim began honking her horn and drove over a curb to escape the area.
Detectives discovered two videos in which Avila and Wise discuss plans for kidnapping and injuring the victims. A Taser and leg shackles are shown in the videos. Throughout the videos, the two women allegedly discuss disposing of the victims’ vehicles, locking the male victim in a hotel room, leaving the female victim beaten in a remote location, and various ways to evade law enforcement.
In the videos, Avila allegedly states she knows the victims would be too fearful to go to the authorities because she helped smuggle the male victim back into the United States after he was deported, and therefore she knew he was here illegally.
Receipts show the co-conspirators also purchased “Immigration” patches. Avila’s work cell phone had a screenshot on “how ICE (Immigration and Customs Enforcement) makes arrests” and searches including “ICE Federal Agent Halloween Costume.”
“In what some might think is a plot line for a movie, these individuals allegedly devised an elaborate scheme involving the impersonation of federal law enforcement agents to kidnap someone,” said Vance Callender, HSI special agent in charge for Michigan and Ohio.
“Not only did the alleged perpetrators try and fail to kidnap the victim, they tried a second time and failed,” said Keith Barwick, ICE Office of Professional Responsibility special agent in charge. “The suspects left a wide trail of evidence that agents and detectives were able to collect, follow, and use to arrest multiple coconspirators.”
The five defendants were charged by criminal complaint on July 15.
Conspiracy to commit kidnapping is a federal crime punishable by up to life in prison. Attempted kidnapping is punishable by up to 20 years in prison. Conspiring to impersonate an Officer of the United States carries a maximum sentence of up to five years in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Keith Barwick, Special Agent in Charge, ICE Office of Professional Responsibility; and Hilliard Division of Police Chief Robert Fisher announced the charges. The Department of Homeland Security Office of Inspector General and ICE Office of Professional Responsibility also assisted in the case.
“The outcome of this case could have been very tragic without the exhaustive initial investigation by our detectives, and the ongoing and thorough collaboration with federal agencies,” said Hilliard Chief of Police Robert Fisher. “Hilliard citizens can feel reassured knowing the individuals who put this disturbing plan in place will be held accountable for their actions.”
Assistant United States Attorney Jessica W. Knight and Special Assistant United States Attorney Christopher N. St. Pierre 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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Federal grand jury indicts Ohio House Speaker enterprise in federal public corruption racketeering conspiracy involving $60 millionRead the Press Release
COLUMBUS, Ohio – A federal grand jury has indicted the Ohio Speaker of the House in a federal racketeering conspiracy involving approximately $60 million paid to a 501(c)(4) entity to pass and uphold a billion-dollar nuclear plant bailout. The 43-page indictment was returned on July 29 and filed today.
Larry Householder, 61, of Glenford, Ohio, four other individuals and 501(c)(4) entity Generation Now were previously charged by a criminal complaint that was unsealed on July 21.
It is alleged that the enterprise conspired to violate the racketeering statute through honest services wire fraud, receipt of millions of dollars in bribes and money laundering.
The four other individuals indicted include:
- Mathew Borges, 48, of Bexley, a lobbyist who previously served as chair of the Ohio Republican Party;
- Jeffrey Longstreth, 44, of Columbus, Householder’s longtime campaign and political strategist;
- Neil Clark, 67, of Columbus, a lobbyist who owns and operates Grant Street Consultants and previously served as budget director for the Ohio Republican Caucus; and
- Juan Cespedes, 40, of Columbus, a multi-client lobbyist.
Generation Now, a corporate entity registered as a 501(c)(4) social welfare organization, was also charged.
According to court documents, from March 2017 to March 2020, the enterprise received millions of dollars in exchange for Householder’s and the enterprise’s help in passing House Bill 6, a billion-dollar bailout that saved two failing, Ohio nuclear power plants from closing.
The defendants then also allegedly worked to corruptly ensure that HB 6 went into effect by defeating a ballot initiative to overturn the legislation. The Enterprise received approximately $60 million into Generation Now from an energy company and its affiliates during the relevant period.
As alleged, in February 2017, Longstreth incorporated Generation Now as a 501(c)(4) social welfare entity purporting to promote energy independence and economic development; however, the entity was secretly controlled by Householder. As Clark stated in a recorded conversation, “Generation Now is the Speaker’s (c)(4).” Pursuant to federal law, the names and addresses of contributors to 501(c)(4)s are not made available for public inspection.
In March 2017, Householder began receiving quarterly $250,000 payments from the related-energy companies into the bank account of Generation Now. The defendants allegedly spent millions of the company’s dollars to support Householder’s political bid to become Speaker, to support House candidates they believed would back Householder, and for their own personal benefit. When asked how much money was in Generation Now, Clark said, “it’s unlimited.”
The affidavit filed in support of the criminal complaint also alleges:
- In 2018, the enterprise spent energy company-to-Generation Now money on approximately 21 different state candidates – 15 (including Householder) in the primary, and six additional candidates in the general election. The Enterprise spent more than one million in fall 2018 alone to flood the airways with negative ads against enterprise opponents. Most of these candidates won the 2018 general election. All who won voted for Householder as Speaker.
- Money passed from the energy company through Generation Now was used to pay for Householder campaign staff, which would otherwise have been paid by Householder’s candidate committee, Friends of Larry Householder.
- Householder received more than $400,000 in personal benefits as a result of the payments into Generation Now, including funds to settle a personal lawsuit, to pay for costs associated with his residence in Florida, and to pay off thousands of dollars of credit card debt.
- The enterprise paid $15,000 to an individual to provide insider information about the ballot initiative and offered to pay signature collectors for the ballot initiative $2,500 cash and plane fare to stop gathering signatures.
“Dark money is a breeding ground for corruption. This investigation continues,” U.S. Attorney David M. DeVillers said.
The racketeering conspiracy as charged in this case is punishable by up to 20 years in prison.
The case is being investigated by the FBI. Deputy Criminal Chief Emily N. Glatfelter, Assistant United States Attorney Matthew C. Singer, as well as Assistant Deputy Criminal Chief Timothy Mangan and Assistant United States Attorney Megan Gaffney Painter, are representing the United States in this case.
If you have information related to the public corruption alleged in this case, please contact the FBI at 614-849-1777.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Federal Grand Jury Returns Indictment Charging Tennessee State Senator Katrina Robinson for Theft and Embezzlement Involving Government Programs and Wire FraudRead the Press Release
Memphis, TN – Tennessee State Senator Katrina Robinson, 39, has now been indicted for theft and embezzlement involving government programs and wire fraud. Robinson was previously charged in this matter by a federal criminal complaint that was unsealed on Wednesday, July 29, 2020. On Thursday, July 30, 2020, a federal grand jury in Memphis returned a 48-count indictment against Robinson, charging her with 24 counts of theft and embezzlement involving government programs, and 24 counts of wire fraud. D. Michael Dunavant, U.S. Attorney announced the indictment today.
According to the indictment, Katrina Robinson is the Director of The Healthcare Institute (THI), a provider of educational and training programs for jobs in the healthcare field. She is also a Tennessee State Senator, having been elected to represent the 33rd District in Shelby County in 2018.
Between 2015 and 2019, The Healthcare Institute received over $2.2 million in federal grants from the Health Resources and Services Administration (HRSA), an agency of the U.S. Department of Health and Human Services. During that same time period, Robinson stole in excess of $600,000 from THI by compensating herself in excess of what was allowed under the terms of the HRSA grant and by using Institute funds for payments and purchases for her own personal benefit and that of her immediate family.
Payments and purchases included a vehicle for her daughter; clothing, accessories, and hair and beauty products; expenses related to her wedding and honeymoon, and later, legal fees for her divorce; payments on her personal debts, including credit cards, store charge cards, student loans, and other personal loans; travel and entertainment for herself and her family; improvements to her personal residence; expenses related to a body aesthetics business she owned and a snow cone business operated by her children; and an event for her State Senate campaign.
If convicted, Robinson faces a possible sentence of up to 20 years in federal prison, 3 years supervised release, and a $250,000 fine. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Protection of the United States Treasury and federal grant programs against theft, fraud, waste, and abuse is a top priority of this office and the Department of Justice. We commend the FBI and the HHS-OIG for their diligent and thorough investigation in this case."
"Anyone who seeks to take advantage of government programs will be vigorously investigated by the FBI, regardless of who they are or any position they hold," said Acting Special Agent in Charge Jermicha L. Fomby of the Memphis Field Office of the Federal Bureau of Investigation. "The public should know that the FBI will continue to work diligently with our law enforcement partners to identify and investigate those who seek to exploit government programs and line their own pockets."
This case was investigated by the Federal Bureau of Investigation (FBI) and the U.S. Department of Health and Human Services –Office of the Inspector General (HHS-OIG).
Assistant U.S. Attorney Christopher E. Cotten is prosecuting this case on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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FBI Arrests San Antonio Man for Distribution of Child PornographyRead the Press Release
Today, federal authorities arrested 62–year-old Juan Benavidez of San Antonio and filed a federal criminal complaint charging him with distributing child pornography, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
FBI agents executed a search warrant today at the defendant’s address and seized his cell phone. A preliminary examination of the iPhone revealed the presence of multiple image files depicting minors engaged in sexually explicit activity as well as the use of the mobile messaging application named Kik to receive and distribute files depicting child pornography between April and June of this year.
Benavidez remains in federal custody pending a detention hearing anticipated for next week. Upon conviction, Benavidez faces between five and 20 years in federal prison.
The FBI’s San Antonio Crimes Against Children Task Force is investigating this case. Assistant U.S. Attorney Tracy Thompson is prosecuting this case on behalf of the government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the 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, 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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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.
Ennis pharmacist pleads guilty to opioid distributionRead the Press Release
MISSOULA – An Ennis pharmacist accused of diverting opioids today admitted to unlawfully dispensing an opioid and obtaining personal opioid prescriptions by fraud or forgery, U.S. Attorney Kurt Alme said.
Bradley John Stoick, 70, of Hailey, Idaho, pleaded guilty to dispensing a controlled substance by a practitioner and to acquiring or obtaining a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge. Stoick faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Stoick was released pending further proceedings. Sentencing was set for Nov. 19.
"It is critical that pharmacists and other licensed providers comply with the law when dispensing all drugs, especially opioids. When a health care professional, like Mr. Stoick, abuses his position to divert and steal opioids, he will be prosecuted," U.S. Attorney Alme said.
The prosecution said in court records that Stoick was the pharmacist-in-charge of Ennis Pharmacy in Ennis. In 2019, Drug Enforcement Administration investigators conducted a routine administrative inspection of Ennis Pharmacy and discovered numerous prescriptions for Stoick for Norco 10-325mg, a drug which contains Hydrocodone, a powerful opioid and a Schedule II controlled substance. Stoick filled those prescriptions for himself as the on-duty pharmacist. The doctor whose name and signature were on those prescriptions never saw Stoick as a patient and did not issue any of those prescriptions.
In addition, computer records at the pharmacy showed that Stoick altered a prescription for a friend. He modified the strength of the prescription from Norco 5-325mg up to Norco 10-325mg, which contains twice as much Hydrocodone. He also increased the amount of the prescription from 45 pills to 120 pills. Stoick then filled the prescription himself and mailed it to his friend in Utah.
In a separate civil case settled earlier this month, Ennis Pharmacy agreed to pay a $125,000 fine and make several changes to its operating procedures.
Assistant U.S. Attorney Michael A. Kakuk is prosecuting the case, which was investigated by the DEA.
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East Lake Man Convicted on Six Counts of VandalismRead the Press Release
RALEIGH, N.C. – Richard Gregory Perrot appeared in federal court before Chief United State District Judge Terrence W. Boyle, and was found guilty on 6 counts of vandalism to two separate motor vehicles. Perrot is awaiting sentencing, which is scheduled in Raleigh on September 14, 2020.
Perrot was arrested and charged with 4 counts of vandalism on August 11, 2019, after he vandalized a vehicle by puncturing its tires at Ramp 23 within Cape Hatteras National Seashore. Additionally, Perrot was charged with two counts of vandalism of a motor vehicle by puncturing tires in an incident at Coquina Beach on August 9, 2019. Each of these charges carries up to a 6 months’ imprisonment, a $5,000 fine, up to one-year supervised release, and /or up to 5 years’ probation.
According to the investigation, between July and August of 2019, U.S. Park Rangers responded to 18 separate incidents of vehicles having their tires slashed. In several incidents, Perrot and/or his vehicle were observed in the same parking lot as the vandalized vehicles.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief U.S. District Judge Terrence W. Boyle accepted the verdict. The U.S. National Park Service and the U.S. Fish and Wildlife Service investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.2:19-mj-01070-BO.
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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.
East Idaho Man Pleads Guilty to Knowingly and Fraudulently Concealing Assets in a Bankruptcy ProceedingRead the Press Release
POCATELLO - Andrew Welch, 46, of Idaho Falls, pleaded guilty to knowingly and fraudulently concealing assets in a bankruptcy proceeding and agreed to immediately forfeit $25,000 to the United States, U.S. Attorney Bart M. Davis announced today. Welch was indicted by a federal grand jury in Pocatello on August 27, 2019. Sentencing is set for October 14, 2020, before U.S. District Judge David C. Nye at the federal courthouse in Pocatello.
According to court records, Welch, a former pharmacist in Ketchum, Idaho, filed a voluntary Chapter 7 bankruptcy petition and supporting documents on April 3, 2014, and listed general unsecured debts totaling $273,840.88. Welch, however, signed the petition and supporting documents under the penalty of perjury, falsely stating he did not own any real property and that he only had personal property worth $13,564.60.
Welch knowingly and fraudulently failed to disclose in the bankruptcy petition and supporting documents the transfer of more than $250,000 of his own funds to an investment account held in the name of another individual. Those transfers occurred through cashier’s checks, cash deposits, wire transfers, and money orders between September 2012 and January 2015, and Welch made all the transfers to conceal such funds.
Welch also knowingly and fraudulently failed to disclose his purchase of real property in Idaho Falls for $123,500 in January 2012, or the ensuing fraudulent transfer of the real property to a second individual, who did not provide Welch with any value for the real property. In addition, Welch falsely testified under oath during the bankruptcy proceedings that he had no interest in the aforementioned investment account or real property, which in truth and fact, he did.
Welch faces up to five years in federal prison, a maximum fine of $250,000, and one year of supervised release.
This case was investigated by the Internal Revenue Service Criminal Investigation.
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Eagle Butte Woman Sentenced for LarcenyRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Larceny was sentenced on July 29, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Yesica Rose Lara, age 34, was sentenced to time served through July 29, 2020, 3 years of supervised release, restitution in the amount of $2,119.42, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Lara was indicted by a federal grand jury on March 9, 2020. She pled guilty on July 29, 2020.
The conviction stemmed from incidents that occurred between July 29, 2018, and September 11, 2018, when Lara did unlawfully forge checks from closed bank accounts, and passed and attempted to cash them at multiple locations in Eagle Butte.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Lara was immediately released.
Drug delivery man handed 27-year sentence for selling methRead the Press Release
HOUSTON – A 26-year-old man has been ordered to federal prison following his conviction of conspiring to possess with the intent to distribute meth in the Houston area, announced U.S. Attorney Ryan K. Patrick.
Carlos Solorio aka Christian Hernandez, Santa Rosa, California, pleaded guilty Dec. 13, 2019.
Today, U.S. District Judge Sim Lake handed Solorio a 324-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard about Solorio’s significant activity related to drug trafficking – distribution in the Houston area, maintenance of a property to distribute the narcotics and remitting funds to Mexico in support of cartel activity. In handing down the sentence, Judge Lake noted that Solorio came to Houston from California to distribute narcotics and that his conduct warranted the significant sentence.
In May 2018, authorities conducted an undercover operation to purchase meth from a suspected narcotics distributor. The agent ordered three kilograms of the narcotics which were expected to be delivered to the Spring Branch area of Houston just north of the Katy Tollway. Solorio delivered the drugs.
Law enforcement then followed him back to his stash house. They conducted a search which resulted in the location and seizure of approximately 80 kilograms of meth.
Solorio has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and High Intensity Drug Trafficking Areas task force conducted the investigation. Assistant U.S. Attorney Jason Corley prosecuted the case.
Dominican National Pleads Guilty to Distributing FentanylRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to distributing fentanyl.
Jose Guerrero-Soto, 26, pleaded guilty to one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl and one count of conspiracy to distribute and to possess with intent to distribute 40 grams of more of fentanyl. U.S. District Court Judge William G. Young scheduled sentencing for Oct. 21, 2020. Guerrero-Soto was initially charged by criminal complaint and has been in custody since Sept. 12, 2019.
With a companion, Guerrero-Soto sold over 40 grams of fentanyl to an undercover officer in Lawrence on Sept. 12, 2019.
The charging statutes provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Massachusetts Attorney General Maura Healey; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney James R. Drabick of Lelling’s Criminal Division is prosecuting the case.
Disaster and pandemic scams target Texas residentsRead the Press Release
HOUSTON – Authorities are warning Texans of potential fraud following the landfall of Hurricane Hanna while continuing to remind the public of coronavirus-related scams, announced U.S. Attorney Ryan K. Patrick.
As residents continue to deal with the issues surrounding COVID-19, some have the added burden of surviving in the aftermath of Hurricane Hanna which made landfall in South Texas along the Coastal Bend area over the weekend.
The U.S. Attorney’s Office works with a multitude of federal, state and local agencies to address the varied threats resulting from natural disasters such as Hurricane Hanna as well as scams related to national crises. These disasters often bring out the best in human compassion and spirit, but can also lead to unscrupulous individuals and organizations taking advantage of those in need of and/or providing government services. Examples of typical illegal activity include:
- Impersonation of federal law enforcement officials
- Identity theft
- Fraudulent claims to insurance companies and federal government
- Fraudulent activity related to donations and charitable giving
- Price gouging
- Theft, looting and other violent crime
“Along the Gulf Coast we are well practiced in disaster fraud,” said Patrick. “Anyone who lies, cheats or steals to receive federal benefits they would not otherwise get, will be prosecuted by my office.”
The added issues surrounding the coronavirus pandemic compounds the possible instances of fraud and other types of illegal activity. In addition to the economic payment scams previously reported, several other fraudulent schemes involve masks, personal protection equipment (PPE) and other COVID-19 related items. The public is reminded to exercise increased due diligence and caution when dealing with new suppliers or vendors, especially when using a third-party broker.
As demand for PPE increases, scammers may advertise equipment they do not actually have in attempts to make a quick profit. These PPE products may be counterfeit and mislabeled, and some may not exist at all. Some fraudsters reach out directly to consumers and government entities through email or social media to push their products. Red flags that a seller may be engaging in a scam include:
- Unusual payment terms
- Last-minute price changes
- Last-minute excuses for delay in shipment
- Unexplained source of a large quantity of material
- Evidence of re-packaging or mislabeling
Members of the public are encouraged to contact The National Center for Disaster Fraud (NCDF) to report all types of disaster and COVID-19 fraud. The Disaster Fraud Hotline is 1-866-720-5721 and is staffed by a live operator 24 hours a day, seven days a week. Members of the public can also see additional resources and information HERE, where they can also submit complaints of fraud, waste, abuse or mismanagement related to any man-made or natural disaster and criminal activity related to COVID-19.
In addition, Texans can contact the Office of the Attorney General’s toll-free complaint line at (800) 621-0508 or file a complaint online if they have encountered scams or price gouging. There are ongoing federal and state prohibitions on charging exorbitant prices for PPE during this time of national emergency.
The NCDF is the result of a partnership between the Department of Justice and various law enforcement and regulatory agencies to form a national coordinating agency within the Criminal Division of the Department of Justice to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud.
It was established in 2005 in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. It is the national coordinating agency for all man-made and natural disasters with Gulf Coast headquarters located in Baton Rouge, Louisiana. Since 2005, the NCDF has received over 100,000 complaints.
Defendants Who Orchestrated Straw Purchases of Firearms Sentenced to Prison TimeRead the Press Release
LYNCHBURG, VIRGINIA – Robert Joseph, a.k.a. Ruben Oakes, a convicted felon who conspired with, and directed, straw purchasers to obtain firearms that he would then deliver to a co-conspirator, Harold Gaines, in Maryland, was sentenced today in U.S. District Court here to 27 months in federal prison. United States Attorney Thomas T. Cullen and Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division made the announcement today.
Joseph, 51, previously pleaded guilty to conspiracy to illegally possess firearms and illegal possession of a firearm by a previously convicted felon. Harold Gaines, also previously pleaded guilty to one count of conspiracy to illegally possess firearms and was sentenced to 48 months in prison.
“Eradicating gun violence remains a top priority of this office and we will seek to prosecute all individuals who break federal gun laws, putting guns in the hands of felons,” said First Assistant United States Attorney Daniel P. Bubar. “This prosecution is a product of Project Guardian, and I am proud of the good work of our federal and state team.”
“This case epitomizes the danger of straw purchasing firearms, specifically, providing weapons to felons who clearly intend to use them in the commission of crimes,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “The sentences handed out to both the purchaser and receiver of these illicit firearms is a clear indication that the criminal straw purchasing of weapons will have consequences. We are grateful to U.S. Attorney Cullen and our law enforcement partners for this successful outcome.”
According to court documents, Gaines paid Joseph to supply him with particular firearms and Joseph, in turn recruited, and directed, straw purchasers to obtain firearms from gun stores in the Western District of Virginia. Joseph then delivered the weapons to Gaines in Northern Virginia, Washington D.C., and Maryland. Gaines subsequently sold those weapons to others. Joseph obtained approximately 40 firearms for Gaines during the course of the conspiracy. Both Joseph and Gaines are convicted felons and are prohibited from legally possessing firearms.
The straw purchasers Joseph utilized, individuals whose lack of criminal history enabled them to purchase and possess firearms, were able to obtain the weapons on his behalf by falsely claiming on ATF Firearm Transaction Form that they were the actual transferee/buyer of the firearm(s) when in fact they were not. For their role in this offense, Jazzmine Irvin, Janika Barksdale, and Ashley Gunter each were convicted of conspiracy to make false statements on a firearms form. Irvin and Barksdale were sentenced to 45 days in prison and a period of home confinement thereafter. Gunter received a sentence of 45 days home confinement. All defendants in this conspiracy were also sentenced to a term of supervised release.
The investigation of the case was conducted by the Bureau of Alcohol Tobacco, Firearms, and Explosives, the Danville Police Department, and the Lynchburg Police Department. Assistant United States Attorney Coleman Adams prosecuted the case for the United States.
This case was brought as 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.
Danvers Man Sentenced for Possession of Child PornographyRead the Press Release
BOSTON – A Danvers man was sentenced today for possession of child pornography.
Joseph Corbett, 51, was sentenced by U.S. District Court Judge Richard G. Stearns to three years in prison and five years of supervised release. In March 2020, Corbett pleaded guilty to possession of child pornography.
During a search of Corbett’s home on June 14, 2019, an iPhone belonging to him was located. Corbett provided the iPhone’s passcode to authorities and an onsite forensic review revealed images and videos of child pornography. Further review of the iPhone revealed approximately 35 images and approximately seven videos of child pornography, including prepubescent minors. In addition, conversations between Corbett and others on the Kik Messenger application were located that included messages with attached images and videos of child pornography.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Danvers Police Chief Patrick M. Ambrose; and Essex County District Attorney Jonathan Blodgett made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Dallas Police Officer Charged with Child Sexual ExploitationRead the Press Release
A Dallas Police Officer has been charged with uploading sexually explicit images of children using the City of Dallas’ employee internet, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Daniel Lee Collins, a 35-year-old senior corporal assigned to DPD’s Auto Theft Unit, was charged via criminal complaint with one count of transportation of child pornography.
“Law enforcement officers take an oath to protect and serve,” said U.S. Attorney Erin Nealy Cox. “This defendant allegedly undermined that vow, preying upon our most vulnerable. The Department of Justice will not tolerate the exploitation of children – especially by our public servants.”
According to court documents, Mr. Collins allegedly uploaded sexually explicit photos of prepubescent girls to his various Google accounts via the City of Dallas’ internet network.
Google flagged the images – one uploaded on May 13 to an account tagged “Dan Collins” and two more uploaded on June 29 to an account tagged “John Smith” – to the National Center for Missing and Exploited Children, which filed a Cyber Tipline report with the Dallas Police Department. In the report, they noted that one of the profiles included a photo of a man in a police uniform, later determined to be Mr. Collins.
A Dallas IT specialist traced the IP addresses used for the uploads to the City of Dallas internet network. Investigators determined that the same Google accounts were also accessed from Mr. Collin’s residence.
In an interview with federal agents, Mr. Collins allegedly admitted to accessing the Google accounts and saving child pornography.
A complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Collins – who has been placed on administrative leave by the police department pending the results of an internal investigation – is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
Homeland Security Investigations’ Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney A. Saleem is prosecuting the case.
Crown Point Man Sentenced to 60 Months ImprisonmentRead the Press Release
HAMMOND-Leonardo Verduzco, 26, of Crown Point, Indiana, was sentenced by United States District Court Judge Theresa L. Springmann to 60 months in prison and 3 years of supervised release following his guilty plea to distribution of crack cocaine, announced U.S. Attorney Kirsch.
According to documents in the case, during the summer of 2019, law enforcement made purchases of crack cocaine, methamphetamine, and a firearm from Verduzco. During a subsequent search of Verduzco’s residence, law enforcement recovered drug packaging materials, empty gun cases, gun magazines, ammunition, and $11,240 in cash. In his plea agreement, Verduzco consented to forfeiture of the cash because it was connected or traceable to his drug crime, admitted responsibility for 28 grams of crack and 171 grams of methamphetamine as drug-involved conduct, and admitted that he had assisted another individual in illegally purchasing a firearm for him. Verduzco, who has prior misdemeanor convictions for battery, theft, and marijuana possession, was on probation at the time of this federal offense.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives/High Intensity Drug Trafficking Area Task Force and Schererville Police Department. The case was prosecuted by Northern District of Indiana Assistant U.S. Attorney Nicholas J. Padilla.
Covington Woman Charged with FEMA FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that KELLY GAUTHIER, age 48, a resident of Covington, Louisiana, was charged on July 28, 2020 with theft of government funds.
According to the Bill of Information, GAUTHIER filed an application with the Department of Homeland Security Federal Emergency Management Agency (FEMA) on or about March 14, 2016, following severe storms and flooding across Louisiana. GAUTHIER claimed that she needed assistance due to her ownership and occupancy of a home where she was living. In order to show her purported ownership of the home, GAUTHIER submitted fraudulent supporting documentation. GAUTHIER was issued a total of $29,075.56 in FEMA assistance, including assistance for home repairs, rental assistance, transportation, and personal property.
GAUTHIER is charged in the Bill of Information with one count of theft of government funds, in violation of Title 18, United States Code, Section 641. The maximum penalties that may be imposed upon conviction are up to ten years imprisonment; a fine of $250,000; up to three years of supervised release; and a $100 mandatory special assessment.
U.S. Attorney Peter G. Strasser praised the work of the Department of Homeland Security, Office of Inspector General, for its work in investigating this case. U.S. Attorney Strasser reiterated that a Bill of Information is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney Shirin Hakimzadeh.
Council Bluffs Man Sentenced to 40 Years in Prison for Child Pornography OffensesRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on Wednesday, July 29, 2020, United States District Court Judge Rebecca Goodgame Ebinger sentenced Michael Brandstrom, age 29, of Council Bluffs, to 480 months in prison. He was sentenced to 360 months imprisonment for Production of Child Pornography and 120 months to Possession of Child Pornography, to run consecutively. The federal sentence will be served concurrently with his prison sentence in Pottawattamie County State Court for Kidnapping in the Third Degree and Lascivious Acts with a Child. Brandstrom was ordered to serve fifteen years of supervised release to follow his prison term. He was also ordered to pay a $200 special assessment to the Crime Victims’ Fund and $10,500 in restitution to numerous victims.
The charges stem from an investigation initiated by local law enforcement after a mother reported her four-year-old child missing from their apartment in Council Bluffs on September 2, 2019. As Council Bluffs Police Officers searched the apartment complex, Brandstrom brought the missing child out to them. Brandstrom was nervous when questioned by the police, his story was not consistent as to why he did not contact police when he located the child, and the child’s shirt was inside out. Brandstrom had taken the child into his apartment without the consent of her mother and the child disclosed that Brandstrom took pictures of her in his bathroom.
A search warrant was executed on Brandstrom’s apartment and a laptop and two cellular phones were seized for forensic analysis. The analysis of the devices revealed a large number of child pornography images and videos, including those of the child he kidnapped. The analysis of the laptop computer also located communications Mr. Brandstrom had with children from another country where he attempted to sexually exploit them.
This investigation was conducted by the Council Bluffs Police Department and United States Secret Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa and the Pottawattamie County Attorney’s Office.
Columbia Man Sentenced to 15 Years for Illegal Firearms, Meth TraffickingRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man was sentenced in federal court today for illegally possessing firearms and methamphetamine.
Matthew Alan Eads, 38, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole. Eads was sentenced as an armed career criminal due to his prior felony convictions.
On Jan. 7, 2020, Eads pleaded guilty to being a felon in possession of a firearm, to possessing a firearm in furtherance of a drug-trafficking crime, and to possessing methamphetamine with the intent to distribute.
According to court documents, Eads was driving a 1997 Lincoln on March 39, 2018, when he ran a red light at the intersection of Paris Road and Brown Station Road in Columbia, causing a collision with a pick-up truck. Officers were called to the scene of the crash. An officer smelled marijuana while retrieving Eads’s proof of insurance from his vehicle, and Eads admitted he had a small amount of marijuana.
Officers searched Eads’s vehicle and found a gray backpack on the rear passenger seat that contained a Bersa .380-caliber semi-automatic handgun and a prescription bottle that contained methamphetamine. In the Lincoln’s trunk officers found a drawstring athletic bag that contained a Phoenix Arms .22-caliber semi-automatic handgun and two plastic baggies that contained approximately 12 grams of methamphetamine. Also inside this bag was a marijuana pipe, suspected THC wax, and two loaded magazines for the Bersa handgun.
Under federal law, it is illegal for anyone who has a prior felony conviction to be in possession of any firearm or ammunition. Eads has prior felony convictions for assault (injuring his victim with a utility knife), possessing cocaine with the intent to deliver, stealing, drug trafficking, and distributing psilocin (mushrooms – a controlled substance).
This case was prosecuted by Special Assistant U.S. Attorney Aaron M. Jolly. It was investigated by the Columbia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Clinton Township Man Charged with Robbery of a Pharmacy and Other OffensesRead the Press Release
A Clinton Township man was arraigned today on an indictment with robbing a pharmacy and other related offenses, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Steven M. D’Antuono, Special Agent in Charge of the FBI in Michigan and Chief Anne Moise, Hamtramck Police Department.
Charged was Marcus McBride, 27.
According to the charging documents, the Hoover Pharmacy, located at 2930 Holbrook Avenue, Hamtramck, Michigan, was robbed at gunpoint on June 10, 2020. Surveillance video from inside the pharmacy shows a man wearing a distinctive blue coat enter the pharmacy, produce a handgun, and demand pills. The suspect waved the firearm at the individuals located inside of the pharmacy and yelled, “Get down”. The suspect then approached the counter and pointed the firearm at the pharmacist and stated, “Give me 30’s and 40’s”. The pharmacist grabbed a box of medication which contained Oxycodone and Oxymorphone prescriptions and handed it to the suspect. The suspect took the box filled with medications and fled the pharmacy. Approximately 3,937 pills, with a street value of over $100,000, of oxycodone and other substances were taken during the robbery. Federal search warrants executed as part of this investigation produced a handgun, pills, cash, and a jacket which is similar to the one worn during the robbery. On the date of the robbery, MCBRIDE was wearing a MDOC GPS monitoring device. The GPS coordinates place him at the pharmacy at the approximate time of the robbery.
Chief Anne Moise stated, “I would like to thank the hardworking men and women of the Hamtramck Police Department, the Federal Bureau of Investigation and the United States Attorney's office for their hard work on this case. Our agency appreciates the great partnerships we have with our state and federal agencies."
In addition to the robbery and related drug and gun charges, McBride, along with co-defendant Patrick Johnson, were charged in connection with a previous narcotics trafficking incident that occurred near the Greyhound bus station in Detroit. McBride was in a vehicle driven by the co-defendant, and had unsuccessfully attempted to board a bus headed to Alabama with a large number of oxycodone pills.
The investigation of the case is being conducted by special agents and task force officers of the Federal Bureau of Investigation and officers with the Hamtramck Police Department. Assistant United States Attorneys Andrew Picek and Robert Moran are prosecuting this case for the United States.
An indictment is only a charge and is not evidence of guilt. The burden is on the government to show proof beyond a reasonable doubt.
Cass County, Texas, Attorney Indicted for Smuggling Methamphetamine into the Cass County JailRead the Press Release
TEXARKANA, Texas – A 49-year-old Cass County, Texas, man has been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Bryan Lee Simmons was indicted by a federal grand jury on March 18, 2020, and charged with conspiring to distribute methamphetamine and using a firearm during and in relation to drug trafficking. After his initial appearance before U.S. Magistrate Judge Roy S. Payne, he was ordered detained pending trial.
According to the indictment, from at least July 2019 and continuing to about August 2019, Simmons agreed with others to distribute methamphetamine. Specifically, on August 29, 2019, he possessed methamphetamine that he intended to distribute. During and in relation to those crimes, he possessed a pistol.
If convicted, Simmons faces a minimum of 5 years and as much as life in federal prison.
This case is being investigated by the Texas Department of Public Safety, Texas Rangers Division with assistance from the Cass County, Texas, District Attorney’s Office and the Cass County, Texas, Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Cartel Recruiter Pleads Guilty to Heroin and Meth Trafficking ConspiracyRead the Press Release
NORFOLK, Va. – A North Carolina woman was sentenced today to 10 years in prison for her role in a large heroin and meth trafficking conspiracy that originated in Sinaloa, Mexico.
According to court documents, Delia Marie Salinez, 31, of Greensboro, was a recruiter and drug courier operating out of the conspiracy’s North Carolina distribution point. In March 2019, Salinez and two of her recruits packaged and drove roughly a kilogram of heroin and a kilogram of pure methamphetamine to Virginia Beach, where they thought they were going to sell the drugs. Instead, they were arrested during a SWAT takedown operation and the drugs were seized.
The other two couriers, Maricella Williamson and Kenya Godinez-Camacho, were sentenced to 65 and 60 months in prison, respectively.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Anthony F. Zucaro, Jr., Interim Chief of Virginia Beach Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-131.
Camdenton Man Sentenced to 10 Years for Romance Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – A Camdenton, Missouri, man with a history of predatory financial crimes against women was sentenced in federal court today for a $78,000 fraud scheme in which he used his victim’s credit cards without authorization.
Ivan Joseph Stark, Jr., 48, was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole. The court also ordered Stark to pay restitution to his victim.
On Jan. 7, 2020, Stark pleaded guilty to one count of bank fraud and one count of aggravated identity theft.
Stark became romantically involved with his victim, identified in court documents as “C.H.,” after they met on a dating website. Stark, who used an alias and omitted details regarding his past prison sentence, obtained C.H.’s credit cards on March 1, 2018. Stark obtained the credit cards by falsely telling C.H. he intended to repair an electronic sign and sell the sign for a profit. Stark falsely claimed he already had a buyer for the sign. Stark promised to repay C.H. for purchases he made with C.H.’s credit cards using the proceeds from the sale of the sign. Stark also promised to split a portion of the proceeds of the sale with C.H. In reality, there was no electric sign or project to repair any sign.
Stark obtained more than $78,000 through this scheme. One of the credit cards, for example, was used to make a $10,180 down payment on a 30-foot trailer from Flying A. Motorsports. Another credit card was used to make a $1,500 down payment on a Dodge Ram truck, which was made over the phone with another woman who purported to be the victim.
Stark opened a Square account under the name AVR Industries. Stark falsely represented to Square that AVR was a taxicab and limousine business, when in fact, no such business was in operation. Stark conducted approximately $43,000 in transactions through Square, using C.H.’s credit cards, to make payments to AVR. As a result of these transactions, $41,817 was deposited into Stark’s personal bank account.
Stark, without C.H.’s knowledge or consent, requested a credit limit increase on two of C.H.’s credit cards.
Stark ultimately charged one of C.H.’s credit cards to a balance above $43,000. Stark made an electronic payment from his personal account in the amount of $21,947, payable to C.H.’s credit card, knowing that his account contained insufficient funds to cover the payment. Before his unfunded payment was reversed, however, Stark made approximately $21,154 in charges to C.H.’s credit card. This resulted in a statement balance of $43,607, which was $21,607 over the card’s credit limit.
The government’s sentencing memorandum cites a history of predatory financial crimes against several more victims. Stark’s past relationships show a pattern of systematic victimization, the memorandum states, in which Stark deliberately chooses his victims, uses them, and leaves them financially ruined and emotionally traumatized.
According to court documents, Stark’s criminal history is staggering. From the age of 19, he has either been under supervision, an active warrant or incarcerated. His crimes have been almost exclusively financial and fraudulent in nature and have only escalated over time, despite periods of incarceration.
This case was prosecuted by Assistant U.S. Attorneys Ashley S. Turner and Lauren E. Kummerer. It was investigated by the FBI and the Camden County, Mo., Sheriff’s Department.
Cambridge Man Charged with Receipt and Possession of Child PornographyRead the Press Release
BOSTON – A Cambridge man was arrested today and charged with child pornography offenses.
Robert Wharton, 31, was charged in a criminal complaint with receiving and possessing child pornography. Following an initial appearance in federal court in Boston via videoconference, Wharton was detained pending a probable cause and detention hearing.
According to the charging documents, federal investigators developed evidence that a user of the Kik messaging application had electronically transmitted funds to another individual in exchange for access to internet links containing child pornography. The investigation revealed that those funds originated from Wharton and that Wharton resided at an apartment in Cambridge. Earlier today, during a search of Wharton’s apartment, Kik messages that Wharton had exchanged with the person to whom he had sent funds were discovered. In addition, various images and videos depicting naked children were found on Wharton’s phone, including a pornographic video that Wharton had received via the Telegram messaging application; this video depicts a young child performing oral sex on an adult.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a mandatory minimum of five years and up to life of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, a mandatory minimum of five years and up to life of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division made the announcement today. The Cambridge Police Department provided valuable assistance along with the Arlington, Newton and Revere Police Departments and the Massachusetts Department of Correction. Assistant United States Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bowie Man Sentenced to 18 Months in Federal Prison for False Use of a PassportRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel, III, today sentenced Arinze Michael Ozor, age 37, of Bowie, Maryland, a dual citizen of the United States and Nigeria, to 18 months in federal prison, followed by three years of supervised release, for forgery or false use of a passport, in connection with his use of false passports to open “drop accounts” for a money laundering conspiracy. Judge Hazel also ordered Ozor to pay restitution of $43,000.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Edwin Guard of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service (DSS).
According to his plea agreement, Ozor used at least two fraudulent passports as part of a money laundering conspiracy to open eight “drop accounts” to receive the proceeds from fraud schemes, including business e-mail compromise schemes and romance fraud schemes. The funds deposited to the accounts were largely disseminated to other entities as part of the conspiracy by Ozor and others.
Specifically, Ozor admitted that he used a Ghanaian passport in the name of Kelvin Green to open accounts at five banks between December 2017 and January 2018. Although the passport contained purported identifiers for Green, it contained Ozor’s photograph. When one of the banks froze the account due to suspicion of fraudulent activity, Ozor met with a banker to discuss regaining access to the account and presented the same Ghanaian passport in support of his request.
Ozor further admitted that from March 23, 2018 through May 1, 2018, he used a purported Beninese passport in the name of Jacob Hessou to open accounts at three additional banks. As with the Ghanaian passport, the Beninese passport contained purported identifiers for Hessou, but contained Ozor’s photograph.
The investigation found that Ozor does not have a validly issued passport from Ghana or Benin. In addition, the Kelvin Green Ghanaian passport number and the Jacob Hessou Beninese passport number were actually issued to other individuals by the respective governments and not to Green or Hessou.
More than $976,000 was involved in the money laundering conspiracy from the eight accounts opened by Ozor using the fraudulent passports.
United States Attorney Robert K. Hur commended the FBI and the DSS for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Elizabeth Wright, who prosecuted the case.
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Boston Man Charged with Assaulting Officers with a Firearm During June 1 Civil Disorder in BostonRead the Press Release
BOSTON – A Boston man was charged today with assaulting officers with a firearm during the civil disorder in Boston early in the morning of June 1, 2020.
John Boampong, 37, was charged by criminal complaint with one count each of assaulting a federal officer, interfering with a law enforcement officer during the commission of a civil disorder, and being a prohibited person under felony indictment in possession of a firearm and ammunition. Boampong is currently detained in state court and will make an initial appearance in federal court in Boston at a later date.
“The charges in this case – which involve someone legally barred from having a gun indiscriminately firing 11 rounds at a crowd of officers and civilians – are a good reminder of a simple rule: Protests, even disruptive ones, are legal. Destroying property and endangering lives is not. We will enforce that rule. This is also today’s reminder that what police officers really do every day is put themselves at risk to protect our communities,” said United State Attorney Andrew E. Lelling. “My thanks to the Boston Police for their professionalism, restraint and sacrifices during the recent period of unrest.”
“Shooting toward police officers who are there for no other reason than to protect the public is appalling, and it’s against the law. So is illegally carrying a loaded handgun. But we believe that’s exactly what John Boampong is alleged to have done. He incited panic, putting everyone—including civilians—in danger,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s charges should send a clear message: there will be serious consequences for violent instigators who are exploiting legitimate, peaceful protests and engaging in violations of federal law.”
“On May 31, 2020, while people were expressing their First Amendment rights, others unfortunately turned to violence directed toward our city, its residents, and my officers,” said Boston Police Commissioner William Gross. “I’m pleased to work in partnership with the Federal Bureau of Investigations and the United States Attorney's Office bringing federal charges against John Boampong. This sends a clear message that people committing violent crime in our city, against our residents, and my officers, will not be tolerated.”
“On June 3, 2020, my office charged Mr. Boampong with 21 counts of armed assault with intent to murder. Since that day, he has been removed from the community pursuant to a dangerousness hearing initiated by the Suffolk County DA's Office,” said DA Rachael Rollins. “Mr. Boampong’s behavior was egregious, violent and unacceptable and he will be held accountable. Any opportunity to work in collaboration with our federal partners to keep Suffolk County residents and the members of law enforcement that are sworn to protect and serve us, is welcomed by my office.”
According to court documents, on the evening of May 31, 2020 and continuing through the morning of June 1, 2020, what began as a peaceful demonstration in Boston’s Back Bay neighborhood devolved into widespread acts of violence, vandalism, looting and destruction of police property, including the burning of at least one police vehicle on Tremont Street. Some protestors threw rocks, bricks and commercially-available explosives, such as M-80s, at police officers. Numerous police officers were injured.
It is alleged that, on June 1, 2020 at approximately 3:00 am, Boampong was driving his car near the Arlington Street and Boylston Street intersection in front of a store that had been victimized by looting that evening. Police officers instructed Boampong and his passengers to leave the area. The occupants of Boampong’s car initially became verbally combative towards the officers and failed to leave the area as instructed. When Boampong reversed the car, officers told him to stop, as officers and another vehicle were in the way. Boampong kept driving in reverse until one officer knocked with his baton on Boampong’s car to get his attention.
Boampong then drove away, but soon returned to the area, parked on Providence Street, and allegedly shot at least 11 times toward officers, including a deputized federal officer. The officers took cover by bracing or ducking behind cars and others objects. Bullets broke through the windows of two apartments above ground level in a building behind some of the officers.
When officers eventually stopped Boampong’s car, they saw a Sig Sauer P230 9mm firearm lying on the floor of the front passenger-side floor mat, and a black holster underneath the driver’s seat, where Boampong had been sitting. The firearm was recovered, examined and revealed to have Boampong’s fingerprint on it.
At the time, Boampong was prohibited from possessing a firearm or ammunition because he faced pending state charges carrying potential sentences exceeding one year.
The charge of assaulting federal officers provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charges of interfering with law enforcement officers during a civil disorder and being a prohibited person in receipt of a firearm or ammunition provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Lelling, FBI Boston SAC Bonavolonta, Boston Police Commissioner Gross and Suffolk County District Attorney Rollins made the announcement today. Assistant U.S. Attorney John Dawley of Lelling’s Organized Crime and Gang Unit, and Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, are prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Armed Career Criminal Sentenced to 19 Years in Federal Prison for Illegally Possessing a Firearm and DrugsRead the Press Release
Memphis, TN – Levester Grayer, 42, has been sentenced to 235 months in federal prison for being an armed career criminal in possession of a firearm and possession of a controlled substance. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to the information presented in court, on October 3, 2016, Memphis Police Department dispatch received a call that Grayer, an individual wanted for outstanding warrants, was at the Corner Grocery in Memphis. Officers found him at that location and arrested him as he got into his car. As law enforcement searched the car they found 4 plastic bags containing crack cocaine, a small amount of marijuana and a loaded Tanfoglio 10mm caliber pistol. Grayer waived his Miranda rights and admitted to possessing the drugs and the firearm.
The United States charged Grayer with being a felon in possession of a firearm and possession of a controlled substance. On February 21, 2017, Grayer pleaded not guilty. On May 21, 2019, the case proceeded to trial, where he was convicted by a federal jury. His behavior at trial was so disruptive in the courtroom that the judge admonished the defendant numerous times, and he was ultimately ordered removed from the courtroom in handcuffs.
Grayer had 14 prior felony convictions, 11 of which were violent felonies, including kidnapping, aggravated assault and robbery. He also had two prior felony convictions for selling drugs and had been convicted of a misdemeanor crime of domestic violence at the time of his possession of the drugs and the possession of the firearm.
On July 23, 2020, U.S. District Court Judge Thomas L. Parker sentenced Grayer to 235 months in federal prison followed by 3 years of supervised release. At sentencing, Grayer was deemed to be an armed career criminal, which carries a 15 year mandatory minimum prison sentence. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, and in this case, the defendant was an armed career criminal who continued to possess a firearm despite his prior violent felony conviction history. Grayer has devoted his adult life to a career of criminal conduct, and that prior history has finally caught up with him. This sentence rightly removing him from our streets for 19 years will improve public safety for the citizens of Memphis."
This case was investigated by the Project Safe Neighborhoods Task Force. The Project Safe Neighborhoods (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Justice Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Assistant U.S. Attorney J.William Crow prosecuted this case on behalf of the government.
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Agency Village Man Charged with Six Counts of Aggravated Sexual Abuse of a Child and Six Counts of Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that an Agency Village, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Abusive Sexual Contact.
Kevin Lee Farmer, age 57, was indicted on July 20, 2020. He appeared before U.S. Magistrate Judge William D. Gerdes on July 30, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, life of supervised release, and up to $1,200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between April 1, 2016, and December 31, 2016, and between March 10, 2009, and March 10, 2012, Farmer knowingly engaged in, and attempted to engage in sexual acts with two children who had not attained the age of 12.
The Indictment also alleges that between June 29, 2015, and June 28, 2016, as well as between March 10, 2009, and March 9, 2012, and between July 1, 2017, and July 31, 2017, Farmer knowingly engaged in and attempted to engage in sexual contacts with four juvenile victims, by using force against them, as well as threatening and placing them in fear of their lives.
The charges are merely accusation and Farmer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Sisseton Wahpeton Oyate Tribal Police. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Farmer was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Aberdeen Man Charged with Being Felon in Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that an Aberdeen, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Darrell Two Hearts, age 40, was indicted on July 20, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 29, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 25, 2020, Two Hearts, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, and being an unlawful use of a controlled substance, knowingly possessed a firearm. Said firearm had been shipped and transported in interstate commerce.
The charge is merely an accusation and Two Hearts is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Aberdeen Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Two Hearts was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
29 July 2020
York County Man Sentenced to 30 Months’ Imprisonment for Conspiring to Steal Thousands of Dollars’ Worth of Postage StampsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Steven Williams, age 48, of York, Pennsylvania, was sentenced on July 28, 2020, to 30 months’ imprisonment followed by three years of supervised release, by Chief District Court Judge John E. Jones, III, for stealing government property and conspiring to commit that offense.
According to United States Attorney David J. Freed, Williams previously pleaded guilty to conspiring with other individuals to purchase thousands of dollars’ worth of postage stamps from post offices in the Middle District of Pennsylvania and elsewhere. Williams admitted that to purchase the stamps, he used personal checks, knowing that the funds in his bank account were insufficient to cover the cost of the stamps. As part of his plea agreement, Williams agreed to pay restitution to the U.S. Postal Service in the amount of $105,875.
The case was investigated by the United States Postal Inspection Service and the Northeastern Regional Police Department. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Wyoming Man Convicted of Making a Threat Against the PresidentRead the Press Release
United States Attorney Joe Kelly announced that Timothy Cessor, age 27, of Cheyenne, Wyoming, was convicted on July 29, 2020 of making a threat against the President of the United States following a three-day jury trial in federal court, in Omaha, Nebraska. United States District Judge Robert F. Rossiter, Jr. scheduled the sentencing for October 23, 2020. Cessor faces up to five years’ imprisonment.
Evidence at trial established that on February 4, 2019, Cessor broke into his father’s gun safe in his home in Cheyenne, took a .40 caliber pistol and ammunition, and began driving east toward Washington, D.C., to kill the President of the United States. Cessor made a short cell phone video in which he declared that he “will not tolerate an incompetent white house.” Cessor set out to go to the White House to shoot the President. A few hours into the trip east, while Cessor was in Nebraska, he called his father and stated that he was going to “take care of Trump.” After speaking with his father, Cessor turned around and returned to Cheyenne and received treatment at a medical facility in Cheyenne. While at the medical facility, Cessor stated that he had begun driving to Washington to kill the President.
This case is part of the Department of Justice’s Project Guardian and Early Disruption initiatives. These initiatives seek to address threats to the public safety presented by individuals who would seek to acquire or use firearms to achieve violence and injure others. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
The case was investigated by the United States Secret Service and the Cheyenne Police Department in Wyoming.
West Seneca Man Charged with Selling MethRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Timothy J. Chowaniec, 62, of West Seneca, NY, was arrested and charged by complaint with possessing with the intent distribute, and distributing, five grams of more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, and a maximum of 40 years.
Assistant U.S. Attorney Charles E. Watkins, who is handling the case, stated that according to the complaint, on three separate occasions in January and February of 2020, an undercover investigator with the New York State Police purchased quantities of methamphetamine from the defendant near Chowaniec’s residence in West Seneca. On April 14, 2020, the DEA and United States Postal Inspection Service executed a search warrant on a parcel from California addressed to the defendant at his West Seneca residence. Located inside the parcel was a plastic sandwich bag containing approximately 3.7 ounces of suspected methamphetamine.
The complaint is the result of an investigation by the New York State Police, under the direction of Major James Hall; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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West Memphis Man Sentenced to More Than 20 Years in Prison for Methamphetamine ConspiracyRead the Press Release
LITTLE ROCK—A West Memphis man was sentenced today to 250 months in federal prison for his involvement in a methamphetamine conspiracy. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced that Karlen Ingram, 38, was sentenced as part of Operation Money Don’t Sleep, which targets drug trafficking in West Memphis and the surrounding areas.
In September 2015, the Drug Enforcement Administration (DEA) and West Memphis Police Department began investigating a drug trafficking organization in West Memphis. During this investigation, federal agents learned Ingram was a supplier of cocaine and crack cocaine for numerous individuals. In late 2015 and early 2016, agents made six controlled purchases of crack cocaine from Ingram, all of which occurred at his home.
After several court-authorized wiretaps of Ingram’s cell phones, agents intercepted multiple communications of Ingram conducting narcotics transactions and learned that he later shifted from primarily distributing cocaine to also dealing in methamphetamine. The investigation revealed that Ingram and his co-conspirators used the U.S. Postal Service to ship illegal narcotics, which continued through January 2017.
On July 11, 2017, a grand jury returned an indictment charging Ingram and others with one count of conspiracy to possess with intent to distribute and to distribute methamphetamine. Ingram pleaded guilty on October 2, 2019. Today, United States District Court Judge James M. Moody Jr. sentenced Ingram to more than 20 years in prison, followed by five years of supervised release. There is no parole in the federal system.
“This defendant and his co-conspirators conducted a high-level drug trafficking scheme that endangered our communities in Eastern Arkansas,” stated U.S. Attorney Hiland. “This lengthy sentence is a testament to the dedication of our law enforcement partners, with whom we share a tireless commitment to maintaining law and order in our state.”
Operation Money Don’t Sleep is an Organized Crime Drug Enforcement Task Force investigation that is being conducted by the DEA, the West Memphis Police Department and the U.S. Postal Inspection Service.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Utica Men Sentenced for Drug Trafficking ConspiracyRead the Press Release
UTICA, NEW YORK – Abner Peralta, age 31, and Luis Colon, age 35, both of Utica, were sentenced today after previously being found guilty after trial of drug trafficking charges. Peralta was sentenced to serve 60 months in federal prison, followed by a 4-year term of supervised release and forfeiture of $650.00. Colon was sentenced to time served. The sentences were announced 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.
Earlier this year, Peralta and Colon were found guilty after a five-day jury trial in federal court in Utica of conspiracy to distribute and to possess with intent to distribute cocaine in the Utica area from October 2016 to October 2017. The jury also found Peralta guilty of possession with intent to distribute of 28 grams or more of cocaine base (crack cocaine). The evidence at trial showed that Peralta and Colon conspired with each other and others to distribute cocaine in the Utica area and that Peralta, the head of the conspiracy, had access to kilogram-quantities of cocaine. The evidence also showed that Peralta maintained a drug “stash house” in Utica where he kept drugs and drug packaging materials. During the trial, a fingerprint analyst testified that he identified Peralta’s fingerprints on some of the drug packaging material seized from the stash location. The cocaine base Peralta possessed with the intent to distribute was found during a search warrant executed at this location in October 2017. The evidence at trial also included testimony that law enforcement officers searched Peralta’s house and found multiple items in the garage that tested positive for cocaine residue, including a digital scale.
This case was investigated by the United States Drug Enforcement Administration (DEA) with assistance from the New York State Police, Oneida County Sheriff’s Office, Rome Police Department, Utica Police Department, Cortland Police Department, Investigators from the Onondaga County District Attorney’s Office; U.S. Border Patrol; and Internal Revenue Service – Criminal Investigation (IRS-CI), and it was prosecuted by Assistant U.S. Attorneys Michael F. Perry & Thomas Sutcliffe.
University of Arkansas Professor Indicted for Wire Fraud and Passport FraudRead the Press Release
The Department of Justice announced today that Simon Saw-Teong Ang, 63, of Fayetteville, Arkansas, was indicted by a federal grand jury in the Western District of Arkansas on 42 counts of wire fraud and two counts of passport fraud.
“Transparency and integrity have long sustained the pursuit of knowledge on America’s campuses,” said Assistant Attorney General for National Security John C. Demers. “Mr. Ang is alleged to have demonstrated neither when he failed to disclose his financial and other ties to companies and institutions in China to the University of Arkansas and to U.S. government agencies, despite an obligation to do so. This is a hallmark of the China’s targeting of research and academic collaborations within the United States in order to obtain U.S. technology illegally. The Department of Justice will continue to work with colleges and universities to protect U.S. research and development from exploitation by foreign powers and will prosecute those who defraud the U.S. Government.”
“This case is the result of the tireless efforts of our Federal law enforcement partners at the FBI and the State Department,” stated Acting U.S. Attorney Fowlkes for the Western District of Arkansas. “The wire fraud in this case affected not only the University of Arkansas, but also several other important United States Government Agencies such as the National Aeronautics and Space Administration (NASA) and the United States Air Force. It is our sincere hope that this investigation sends a strong message to those who would attempt to defraud the Federal Government.”
“The significant federal charges leveled against Simon Ang demonstrate how real the PRC’s pervasive threat is to Arkansan innovation and businesses,” said FBI Little Rock Special Agent in Charge Diane Upchurch. “Our counterintelligence agents work tirelessly to protect our state’s economy from foreign adversaries. Throughout this investigation, we were proud to partner with the U.S. Air Force Office of Special Investigations, NASA’s Office of Inspector General, the Diplomatic Security Service and prosecutors from the U.S. Attorney’s Office of the Western District of Arkansas.”
Ang was a professor and researcher at the University of Arkansas in Fayetteville, Arkansas since 1988. At the University of Arkansas, Ang served as the Director of the High Density Electronics Center (HiDEC) until on or about May 8, 2020. During his employment with the University of Arkansas and as director of the HiDEC, Ang was the investigator and co-investigator for many grant contracts that were funded by United States Government Agencies. Annually, the University of Arkansas required Ang to disclose any conflicts of interest, including outside employment. Agents working with the FBI discovered that Ang received money and benefits from China and was closely associated with various companies based in China during the same time that he was receiving grants from various United States Government Agencies. The agents discovered that Ang did not disclose these conflicts of interest, even when specifically required to do so by the University of Arkansas and NASA, one of the agencies that awarded Ang and his research associates a Federal grant.
The indictment charges that beginning as early as June 9, 2013, and continuing to on or about May 8, 2020, in the Western District of Arkansas, and elsewhere, Ang, knowingly and willfully devised and intended to devise a scheme and artifice to defraud and to obtain money and property from unknowing United States Government Agencies, the University of Arkansas, and others by means of material false and fraudulent pretenses, representations and promises and the concealment of material facts for the purpose of obtaining money and intellectual property that he would not have received had the University of Arkansas and other government authorities known the facts involved in his scheme and artifice to defraud.
The indictment also charges Ang with two counts of making false statements on a passport renewal application. Specifically, the indictment states that on or about Aug. 5, 2019, in the Western District of Arkansas, Ang, willfully and knowingly made a false statements in an application for a passport with intent to induce and secure for his own use the issuance of a passport under the authority of the United States, contrary to the laws regulating the issuance of such passports and the rules prescribed pursuant to such laws, in that in such application the defendant stated that he was not known by any names other than “Simon Saw-Teong Ang,” which statement he knew to be false. The indictment also charges that Ang also listed immediate travel plans for a trip to Singapore with a departure date of Aug. 30, 2019 and a return date of Sept. 7, 2019, which statement he knew also to be false.
If convicted, Ang faces a statutory maximum punishment of 20 years in prison for each wire fraud count and 10 years in federal prison for each passport fraud count. If convicted, Ang’s sentence will be determined by the court after review of factors unique to this case, including Ang’s prior criminal record (if any), Ang’s role in the offense and the characteristics of the violations.
The FBI and the State Department’s Diplomatic Security Service (DSS) is investigating the case. Acting U.S. Attorney David Clay Fowlkes from the U.S. Attorney’s Office for the Western District of Arkansas and Trial Attorneys Michael Eaton and Ali Ahmad from the National Security Division are prosecuting the case.
An indictment is merely an accusation. An arrest warrant represents a finding of probable cause. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
University of Arkansas Professor Indicted for Wire Fraud and Passport FraudRead the Press Release
Fayetteville, Arkansas – Acting United States Attorney for the Western District of Arkansas David Clay Fowlkes, Assistant Attorney General for National Security John C. Demers, and FBI Special Agent in Charge Diane Upchurch of the FBI Little Rock Field Office, announced today that Simon Saw-Teong Ang, 63, of Fayetteville, Arkansas, was indicted by a federal grand jury in the Western District of Arkansas on forty-two counts of wire fraud and two counts of passport fraud.
“This case is the result of the tireless efforts of our Federal law enforcement partners at the FBI and the Diplomatic Security Service, stated Acting US Attorney Fowlkes.” “The wire fraud in this case affected not only the University of Arkansas, but also several other important United States Government Agencies such as the National Aeronautics and Space Administration (NASA) and the United States Air Force. It is our sincere hope that this investigation sends a strong message to those who would attempt to defraud the Federal Government.”
“Transparency and integrity have long sustained the pursuit of knowledge on America’s campuses,” said Assistant Attorney General for National Security John C. Demers. “Mr. Ang is alleged to have demonstrated neither when he failed to disclose his financial and other ties to companies and institutions in China to the University of Arkansas and to U.S. government agencies, despite an obligation to do so. This is a hallmark of the China’s targeting of research and academic collaborations within the United States in order to obtain U.S. technology illegally. The Department of Justice will continue to work with colleges and universities to protect U.S. research and development from exploitation by foreign powers and will prosecute those who defraud the U.S. Government.”
“The significant federal charges leveled against Simon Ang demonstrate how real the PRC’s pervasive threat is to Arkansan innovation and businesses,” said FBI Little Rock Special Agent in Charge Diane Upchurch. “Our counterintelligence agents work tirelessly to protect our state’s economy from foreign adversaries. Throughout this investigation, we were proud to partner with the U.S. Air Force Office of Special Investigations, NASA’s Office of Inspector General, the Diplomatic Security Service and prosecutors from the U.S. Attorney’s Office of the Western District of Arkansas.”
Ang was a professor and researcher at the University of Arkansas in Fayetteville, Arkansas since 1988. At the University of Arkansas, Ang served as the Director of the High Density Electronics Center (HiDEC) until on or about May 8, 2020. During his employment with the University of Arkansas and as director of the HiDEC, Ang was the investigator and co-investigator for many grant contracts that were funded by United States Government Agencies. Annually, the University of Arkansas required Ang to disclose any conflicts of interest, including outside employment. Agents working with the FBI discovered that Ang received money and benefits from China and was closely associated with various companies based in China during the same time that he was receiving grants from various United States Government Agencies. The agents discovered that Ang did not disclose these conflicts of interest, even when specifically required to do so by the University of Arkansas and NASA, one of the agencies that awarded Ang and his research associates a Federal grant.
The Indictment charges that beginning as early as June 9, 2013, and continuing to on or about May 8, 2020, in the Western District of Arkansas, and elsewhere, Ang, knowingly and willfully devised and intended to devise a scheme and artifice to defraud and to obtain money and property from unknowing United States Government Agencies, the University of Arkansas, and others by means of material false and fraudulent pretenses, representations and promises and the concealment of material facts for the purpose of obtaining money and intellectual property that he would not have received had the University of Arkansas and other government authorities known the facts involved in his scheme and artifice to defraud.
The Indictment also charges Ang with two counts of making false statements on a passport renewal application. Specifically, the Indictment states that on or about August 5, 2019, in the Western District of Arkansas, Ang, willfully and knowingly made a false statement in an application for a passport with intent to induce and secure for his own use the issuance of a passport contrary to the laws regulating the issuance of passports, in that Ang stated that he was not known by any names other than “Simon Saw-Teong Ang,” which he knew to be false. The Indictment also charges that Ang also listed immediate travel plans for a trip to Singapore with a departure date of August 30, 2019 and a return date of September 7, 2019, which he knew also to be false.
If convicted, Ang faces a statutory maximum punishment of 20 years in prison for each wire fraud count and 10 years in federal prison for each passport fraud count. If convicted, Ang’s sentence will be determined by the court after review of factors unique to this case, including Ang’s prior criminal record (if any), Ang’s role in the offense and the characteristics of the violations.
The FBI, the U.S. Department of State’s Diplomatic Security Service (DSS), NASA Office of Inspector General and Air Force Office of Special Investigations are investigating the case. Acting United States Attorney David Clay Fowlkes from the United States Attorney’s Office for the Western District of Arkansas and Trial Attorneys Michael Eaton and Ali Ahmad from the National Security Division are prosecuting the case.
An Indictment is merely an accusation. An arrest warrant represents a finding of probable cause. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
United States Files Complaint to Forfeit More Than $6.5 Million in Cryptocurrency Stolen in Banana Fund Ponzi SchemeRead the Press Release
WASHINGTON - The United States has filed a complaint to forfeit approximately 482 bitcoins and 1,721,868 tether (collectively worth approximately $6.5 million), announced the Acting U.S. Attorney for the District of Columbia Michael R. Sherwin and Special Agent in Charge of the United States Secret Service San Francisco Field Office Thomas Edwards.
The complaint alleges that the administrator of the “Banana Fund” marketed the company to potential investors as a platform for startups to post business proposals and receive crowdfunding in virtual currency. Based on the administrator’s representations, his victims sent him investment contributions; however, the Banana Fund never became operational. Instead, the administrator invested the victims’ capital for his own gain. After admitting that the Banana Fund was unsuccessful, he told his victims that he would return their contributions. When he failed to do so, the U.S. authorities seized the remaining victim funds, which amounted to more than $6.5 million in bitcoins and tether.
“The complaint in this case demonstrates our commitment to protecting people here and abroad from ever-evolving Ponzi schemes,” said Acting U.S. Attorney Sherwin. “Today’s complaint ensures that funds will be returned to victims of the scheme. This office has prioritized investigating and prosecuting the illicit use of virtual currency to launder criminal enterprises such as the Banana Fund.”
“Today’s cybercriminals rely on sophisticated techniques in order to prey on victims, often masquerading as legitimate businesses, “ said Thomas Edwards, Special Agent in Charge of the United States Secret Service’s San Francisco Field Office. “The complaint demonstrates that the Secret Service will continue to hold foreign and domestic criminals accountable, to include crooked cryptocurrency schemes that attempt to defraud American citizens. The swift actions taken by the Secret Service, the U.S. Attorney’s Office and the Department of Justice’s Computer Crime and Intellectual Property Section prevented the subject from liquidating the remaining illegally obtained funds for personal gains - and will permit us to return the reserves to the victims. This investigation is a testament to the strong partnership between the Secret Service, U.S. Attorney’s Office and the Department of Justice’s Computer Crime and Intellectual Property Section.”
The civil forfeiture complaint was filed on July 29, 2020, in the U.S. District Court for the District of Columbia. According to the complaint, between December 2016 and March 2018, the administrator for the Banana Fund solicited investments by representing his company as a platform for entrepreneurs to bring their business concepts and crowdsource ideas. Each entrepreneur’s project would be funded by the crowd during an initial token offering, with a percentage of the capital raised going to the Banana Fund. The administrator amassed over 500 bitcoins. Although the administrator claimed to be working toward opening the Banana Fund for business, he laundered the funds and made tens of thousands of virtual currency trades as part of a self-enrichment scheme.
According to the complaint, in January 2018, the administrator informed his investors that the Banana Fund had failed and promised to refund their contributions. He also claimed that he was in the process of transferring all funds to stablecoins, such as tether. Shortly thereafter, he withdrew approximately 100 bitcoins from his victims’ investments so that he could purchase a house for his personal use. He never returned any of the funds to his investors. After victim investors complained that the Banana Fund had turned out to be a fraud, USSS began an investigation.
While soliciting investments, the administrator announced publicly that investor funds had reached 557 bitcoins and approximately 1.73 million tether. After tracing the victims’ investment funds to a particular virtual currency account, USSS investigators were able to locate 482 bitcoins and 1,721,868 tether. As a result, USSS executed a seizure warrant on those funds and commenced this action to begin returning these funds to the administrator’s victims.
USSS has set up a dedicated email account for Banana Fund victims to contact law enforcement at [email protected]. Further information about filing a claim may be found at www.forfeiture.gov.
The claims made in the complaint are only allegations and do not constitute a determination of liability.
The Secret Service San Francisco Field Office is investigating the case. Assistant U.S Attorneys Zia M. Faruqui and Jessi Brooks, and Trial Attorneys Jessica Peck and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section are litigating the case, with assistance from Paralegal Specialist Elizabeth Swienc. The U.S. Attorney’s Office for the Northern District of California in San Francisco provided significant assistance.
United States Attorney McSwain Announces 2019 Affirmative Civil Enforcement Achievements and Ongoing 2020 Efforts Resulting in Recoveries of over $260 MillionRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced affirmative civil enforcement (ACE) achievements in 2019 by the Civil Division of the United States Attorney’s Office for the Eastern District of Pennsylvania, and its ongoing efforts in the first half of 2020 to stop fraud, waste, and abuse against the government. The number of affirmative civil enforcement settlements rose to an all-time high in 2019, solidifying the Office’s Civil Division as one of the busiest and most productive in the nation.
The Office’s Civil Division recovered over $260 million in settlements and judgments from civil cases involving fraud against the government in 2019 and the first half of 2020. These matters originated from qui tam, or whistleblower, filings under the False Claims Act (FCA), referrals from agency partnerships, and proactive efforts including data analytics. In 2019, the Civil Division also opened a record-setting number of ACE investigations into alleged fraud against the government, Controlled Substances Act violations, and civil rights violations. Much of the Office’s affirmative success came from a renewed focus on generating and supporting investigations using data analytics, which helps to identify fraud trends.
“This past year’s results reflect creative and groundbreaking resolutions across a variety of programs that appropriately address violations by health care providers, government contractors, and federal grant recipients, while encouraging those same entities and their employees to come forward and self-disclose when they are aware of non-compliance with federal laws,” said U.S. Attorney McSwain. “In our District, we have one of the most sophisticated whistleblower bars in the country. We thank those whistleblowers and their counsel who have brought allegations of fraud to our attention. The willingness of whistleblowers, or relators, to come forward and shed light on claims of fraud resulted in the return of millions of dollars to the federal government programs that were defrauded.”
U.S. Attorney McSwain continued, “We also thank our federal enforcement partners for their dedication in the matters summarized below, including: the United States Department of Health and Human Services, Office of the Inspector General; the Defense Investigative Service, Office of the Inspector General; the Department of Veterans Affairs; the Drug Enforcement Administration; the United States Office of Personnel Management, Office of the Inspector General; and the United States Postal Inspection Service. My Office would not have achieved the level of success it did without the benefit of their dedication and expertise.”
“Our Civil Division’s affirmative achievements show that we will fight fraud and hold companies and individuals accountable, no matter the methods, schemes, or amounts at play,” U.S. Attorney McSwain said. “I look forward to ongoing ACE success and continued enforcement in the areas of health care fraud, grant fraud, Controlled Substances Act enforcement, and civil rights enforcement.”
Below are some of the case highlights from 2019 and thus far in 2020.
2019 ACE Achievements Spanned Multiple Enforcement Areas
FCA Healthcare Fraud Settlements
Pentec Health. Pentec Health, a provider of compounded infusion drugs and nutritional supplements for use by patients with end-stage renal disease, paid $17 million to resolve allegations that, from 2007 to 2018, it billed Medicare and other federal healthcare programs for excessive amounts of product wasted during the compounding of its nutritional supplement Proplete for dialysis patients, and routinely waived patient copayments and deductible obligations in order to induce prescriptions and use of Proplete. Along with this settlement, Pentec executed a Corporate Integrity Agreement with the Department of Health and Human Services, Office of Inspector General. https://www.justice.gov/usao-edpa/pr/pentec-health-inc-pay-17-million-settle-false-claims-act-allegations
Mallinckrodt/Questcor Pharmaceuticals. Mallinckrodt ARD LLC (formerly known as Mallinckrodt ARD, Inc. and previously Questcor Pharmaceuticals, Inc.) paid $15.4 million to resolve claims that Questcor paid illegal kickbacks to doctors from 2009 through 2013 in the form of lavish dinners and entertainment, to induce prescriptions of the company’s drug, H.P. Acthar Gel, for the treatment of complications from multiple sclerosis. The company allegedly paid kickbacks to induce referrals from health care providers in violation of the Anti-Kickback Statute and to induce the submission of false claims to Medicare. https://www.justice.gov/usao-edpa/pr/drug-maker-mallinckrodt-agrees-pay-154-million-resolve-false-claims-act-allegations
Heritage Pharmaceuticals. Generic drug manufacturer Heritage Pharmaceuticals paid $7.1 million to resolve allegations that from 2012 to 2015, it engaged in a scheme to artificially inflate generic drug prices and other anti-competitive behavior, causing a loss to Medicare, Medicaid, and the Department of Defense’s Tricare program beneficiaries, as well as the Department of Veterans Affairs. Separately, Heritage entered into a three-year deferred prosecution agreement with the Antitrust Division with regard to a criminal charge that the company conspired to suppress and eliminate competition by allocating customers, rigging bids, and fixing and maintaining prices in violation of the Sherman Act. https://www.justice.gov/usao-edpa/pr/heritage-pharmaceuticals-pays-over-7-million-resolve-civil-false-claims-act-allegations
Controlled Substances Act Enforcement
Spiro Kassis, M.D. Dr. Kassis paid $1.4 million, committed to never obtaining a controlled substance registration, and consented to a 15-year exclusion from Medicare and Medicaid to resolve allegations that he improperly prescribed Schedule II controlled substances to patients between 2014 and 2017.
In a parallel criminal proceeding, Kassis pled guilty to 14 counts of illegal distribution of controlled substances. According to the criminal charges, Kassis, who claimed to be a specialist in psychiatry and addiction medicine, operated medical offices in East Norriton Township, PA and Scranton, PA and used his offices to operate a prescription “pill mill” where he sold medically unnecessary prescriptions for opioids such as oxycodone for approximately $200 cash each.
This opioid settlement, the first of its kind in this Office, simultaneously resolved all three aspects of liability – under the Controlled Substances Act, FCA, and forfeiture statutes – in a single civil settlement agreement. https://www.justice.gov/usao-edpa/pr/montgomery-county-doctor-agrees-pay-14-million-resolve-allegations-improper-opioid
FCA Procurement and Grant Fraud Settlements
Drexel University. Drexel agreed to pay the United States $189,062 to resolve potential FCA liability for a former professor’s use of grant funds to fund trips to “gentlemen’s clubs,” sports bars, and other improper purchases. The government’s investigation began in 2017 after Drexel voluntarily disclosed the improper charges to eight federal grants for energy and naval technology related research that it received from the Department of the Navy, the Department of Energy, and the National Science Foundation. https://www.justice.gov/usao-edpa/pr/drexel-university-pay-189062-resolve-potential-false-claims-liability
Ambu. Ambu, a provider of medical supplies, paid $3.3 million to resolve allegations that it submitted false claims for manufactured products in China and Malaysia for sale to United States government agencies in violation of the Trade Agreements Act (“TAA”). The TAA requires that products sold to government agencies must come only from countries with which the United States has a trade agreement. https://www.justice.gov/usao-edpa/pr/defense-contractor-pay-33m-resolve-false-claims-act-allegations
Our Lady of Lourdes. Our Lady of Lourdes Health Foundation and two related Our Lady of Lourdes companies paid $1,143,881 to resolve claims arising from Lourdes’ administration of community service grants funded through the Corporation for National and Community Service (CNCS)’s Senior Corps program. Specifically, the fraud affected the Foster Grandparent Program, which places seniors in school and community settings to serve alongside youth with exceptional needs, and the Senior Companion Program, which places seniors in community and residential settings to assist other seniors who have difficulty with tasks of daily living. These programs provide small hourly stipends to the volunteers performing these services, who must clear criminal history checks to ensure their suitability for service. Lourdes allegedly either failed to perform these criminal history checks or failed to keep records of doing so for 46 individuals. When a monitoring visit was scheduled in 2017, Lourdes employees cut-and-pasted other background checks in an attempt to conceal this failure from CNCS officials. https://www.justice.gov/usao-edpa/pr/our-lady-lourdes-agrees-pay-over-11m-resolve-claims-it-failed-perform-background-checks
Civil Rights Settlements
Thomas Jefferson University Hospital. Thomas Jefferson University Hospitals, Inc., and Outpatient Imaging Affiliates, LLC, the owners and operators of Jefferson Outpatient Imaging and Radiology (“Jefferson Outpatient”), resolved allegations that Jefferson Outpatient violated the Americans with Disabilities Act (ADA) by denying full and equal access to services based on an individual’s disability and use of a wheelchair. Under the ADA, facilities like Jefferson Outpatient, as a place of public accommodation, must provide outpatient and radiology services to members of the general public. In response to allegations that it failed to provide access to DEXA bone density scans to individuals with disabilities at its facilities in the greater Philadelphia area, Jefferson Outpatient agreed to comply with its obligations under the ADA, provide employee training, pay compensatory damages to the complainant, adopt and incorporate a non-discrimination policy into its existing policies, and post the policy in conspicuous locations in all of its offices and on its website. https://www.justice.gov/usao-edpa/pr/eastern-district-pennsylvania-reaches-settlement-agreement-thomas-jefferson-university
ACE Achievements Continue in 2020, Despite Coronavirus Pandemic
The coronavirus pandemic has not impeded the Office’s continued work in the civil enforcement area, as resolutions of significant FCA matters have continued into 2020:
In February 2020, Guardian Elder Care Holdings, Inc., and its related companies, paid over $15 million to settle claims that the skilled nursing home chain provided medically unnecessary rehabilitation therapy to residents in order to meet revenue goals. Guardian Elder Care operates more than fifty facilities throughout Pennsylvania – including locations in the Lehigh Valley, the Poconos, and Bucks County – as well as in Ohio and West Virginia. https://www.justice.gov/usao-edpa/pr/pennsylvania-nursing-home-chain-pay-155-million-settle-false-claims-act-allegations
In April 2020, Logan Laboratories, Inc. and two former executives, Michael T. Doyle and Christopher Utz Toepke, agreed to pay $41 million to resolve alleged FCA violations for billing federal health care programs for medically unnecessary urine drug testing. https://www.justice.gov/usao-edpa/pr/florida-based-laboratory-pain-clinic-and-two-former-executives-agree-pay-41-million
In July 2020, Universal Health Services, Inc. and UHS of Delaware, Inc. (UHS), headquartered in King of Prussia, PA, agreed to pay $117 million to resolve alleged FCA violations for billing for medically unnecessary inpatient behavioral health services and for failing to provide adequate and appropriate services for adults and children admitted to UHS psychiatric and behavioral treatment facilities nationwide. https://www.justice.gov/usao-edpa/pr/universal-health-services-inc-pay-117-million-settle-false-claims-act-allegations
As the year continues to unfold, the Office’s Civil Division is prepared to fight any coronavirus-related fraud through the enforcement of the FCA. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided $2 trillion in federal funds to fight the ongoing health and economic crisis caused by the coronavirus and was the largest economic stimulus package in U.S. history. It provided $349 billion in loans for small businesses, $130 billion in relief for hospitals and medical suppliers, and $500 billion in assistance to other businesses, states, and municipalities. Unfortunately, there are unscrupulous actors who are attempting to take advantage of these financial outlays by committing fraud, especially when there is so much money at stake.
Attorney General Barr has directed the Department of Justice to prioritize fraud schemes arising out of the coronavirus pandemic. If there are federal funds involved in any coronavirus-related fraud in the Eastern District of Pennsylvania, whether through Medicare, Medicaid, defense contracting, or other government contracts, this Office will dedicate resources to holding companies and individuals appropriately accountable. The FCA remains an extremely powerful tool to combat fraud on the government.
“During this difficult time, protecting our communities from fraudsters who prey on federal programs and federal taxpayers is paramount,” said U.S. Attorney McSwain. “Previous experience has shown that there are people who will seek to illegally profit from disasters. But my Office is committed to using all of the criminal and civil tools at our disposal to protect federal programs.”
United States Attorney Matthew Krueger’s Remarks Regarding Operation Legend’s Expansion to MilwaukeeRead the Press Release
Following are remarks from United States Attorney Matthew Krueger as prepared for a press conference to announce the expansion of Operation Legend to Milwaukee to reduce violent crime.
“Good morning. We’re here to announce a good thing for Milwaukee—specifically, the expansion of Operation Legend to address violent crime. Here with me are some of our key partners, including Robert Hughes, the Special Agent-in-Charge for FBI Milwaukee; Brian Kolar, Assistant Special Agent-in-Charge for the ATF; Paul Maxwell, Assistant Special Agent-in-Charge for the DEA; Thomas Conlon, Acting United States Marshal; Milwaukee County Sheriff Earnell Lucas; and Acting Assistant Chief Paul Formolo of the Milwaukee Police Department.
In the last week, there has been substantial discussion about Operation Legend so I hope to explain clearly what Operation Legend is, and what it is not.
First, what it is. Operation Legend is an initiative to address violent crime. Through Operation Legend, federal law enforcement resources, both funding and investigators, are brought to work in coordination with state and local law enforcement officials to address firearms offenses, violent individuals, and violent drug trafficking organizations.
These resources will help address a spike in violent crime. In December 2019, the Attorney General identified Milwaukee and six other cities as having violent crime rates that were significantly higher than the national average. He announced the initiative then named Operation Relentless Pursuit. Its first phase ran from January to April this year and focused on the apprehension of violent fugitives. The United States Marshal’s Service led that effort in coordination the Milwaukee Police Department as well as these federal agencies.
The operation resulted in the arrest of 96 individuals wanted for violent offenses, including homicide, robbery, aggravated assault, and forcible sexual assault. It also provided support for operations that dismantled violent drug trafficking organizations, such as Operation Island Hopper and the charges against the Buffam Meinecke Boys that we announced earlier this year. The second phase of Operation Relentless Pursuit was intended to begin in the spring of 2020, but it was delayed because of the COVID-19 pandemic.
Since then, Milwaukee has only suffered a greater increase in violent crime. As of yesterday, there already have been 97 homicides in 2020, compared to 52 homicides at this time last year. That’s an 85% increase—45 additional lives lost this year. Those lives are precious. They are sons and daughters, whose families are grieving. Non-fatal shootings in the city also are up 64%.
Milwaukee is not alone in this trend. Other major cities have also seen a spike in violent crime this year, including Kansas City. Early in the morning of June 29, a four-year-old named LeGend Taliferro was shot and killed while he slept in his bed. And so the Department of Justice is continuing what it started in Operation Relentless Pursuit, now under the banner of Operation Legend. It began in Kansas City, which was one of the seven original Relentless Pursuit cities, but with additional federal resources. It was expanded to Albuquerque and Chicago, which was not originally in Relentless Pursuit. And now today, we’re announcing it for Milwaukee, Detroit, and Cleveland.
For Milwaukee, Operation Legend entails bringing to Milwaukee 25 to 30 federal investigators from these four Justice Department agencies: the FBI, DEA, ATF, and United States Marshals Service. In Milwaukee, no personnel from the Department of Homeland Security will participate in Operation Legend.
These investigators from the FBI, DEA, ATF, and U.S. Marshals Service will join the work already underway by existing joint federal, state and local task forces focused on combatting violent crime. Ten of those federal investigators are already assigned to work in Milwaukee temporarily to provide immediate assistance. The others will be assigned over the coming year to Milwaukee permanently to provide long-term assistance. This is a long-term commitment, a sustained effort, to make Milwaukee a safer place to live.
The task forces supplemented by Operation Legend address firearms offenses. This means working directly with the Milwaukee Police Department to analyze the firearms and ballistics used in homicides and other shootings. This also means investigating those who traffick in illegal firearms—those who sell guns to the shooters. And it means prosecuting those who possess firearms illegally. For example, a significant number of homicides involve domestic violence. Under federal law—but not state law, it is a felony to possess a firearm if you are under a domestic violence restraining order or have a misdemeanor domestic violence conviction.
The task forces will also address violent drug trafficking organizations because we know that drug traffickers are often involved in firearms violence, as they protect their illegal activity and rob or war with their competitors.
The case of Earnest Moffett is an example of the type of important work that task forces are continuing to undertake as part of Operation Legend. One week ago, task force agents from the FBI and MPD arrested Earnest Moffett on a criminal complaint that charged him with four counts related to his distribution of cocaine, heroin, methamphetamine, and marijuana. When executing a search warrant at Moffett’s residence in connection with the arrest, task force agents recovered a loaded pistol, an assault-style rifle with a loaded magazine, a second loaded magazine, a distribution quantity of marijuana, and over $31,000 in cash. According to public records, Moffett has multiple prior felony convictions, including convictions for cocaine distribution, escape, and possession of a firearm by a convicted felon. This is the type of case that will be investigated and prosecuted as part of Operation Legend.
All of those cases will be conducted by federal investigators working side-by-side with state and local law enforcement agencies, as they always do. In this way, Operation Legend is simply an enhancement of the existing law enforcement partnerships, to increase solid, proven crime reduction methods.
Operation Legend also is bringing more than $12 million in funding to support state and local law enforcement partners in this effort to help Milwaukee. Specifically, through the Bureau of Justice Assistance, the Department of Justice will make available $1.9 million in funding to support Operation Legend’s violent crime reduction efforts in Milwaukee. The Justice Department’s COPS Office also has made $10.2 million available to the Police Departments of Milwaukee, Wauwatosa, and Cudahy to fund the hiring of 29 officers to facilitate their assigning of experienced officers to task forces.
The Department has also provided assistance through the Joint Law Enforcement Operations fund to assist reimbursement of local law enforcement serving as federal task force officers with the FBI, ATF, DEA, and U.S. Marshals Service. ATF also has provided $100,000 to help agencies in the Milwaukee area defray costs associated with installing or maintaining shot detection technology.
I have spent the last week speaking with state and local leaders about Operation Legend, and similar questions arise. So, let me clarify what Operation Legend is not.
First, Operation Legend is not aimed at protest activity or civil disturbances. Operation Legend differs from the federal operation in Portland. In Portland, Customs and Border Patrol agents, working with the Federal Protective Service, were deployed to protect the Federal Courthouse, which had been repeatedly damaged. That is an entirely different mission from investigating violent crime.
That is why Portland is not on the list of Operation Legend cities. You will not see federal agents massing on Milwaukee’s streets. Just like all the other Deputy U.S. Marshals and FBI, DEA, and ATF agents who have worked in Milwaukee for decades, the additional agents will investigate crime.
Second, Operation Legend is not aimed at flooding certain neighborhoods. This not a patrol operation, nor is it aimed at maximizing the number of arrests. Rather, the work of these task forces will be specifically targeted at offenders whose criminal activities pose a danger to the community. A relatively small number of individuals cause most of Milwaukee’s violence. They are the focus of Operation Legend.
Third, Operation Legend is not the full solution to Milwaukee’s violence. Law enforcement is one piece of the puzzle. To ensure that Milwaukee is a safe, vibrant city for all of its residents, we also need efforts to prevent violence, and to help make quality housing, schools, and job opportunities available to Milwaukee residents, including those returning from incarceration. But make no mistake, well-funded, well-trained, and collaborative law enforcement is an absolutely essential corner piece of the puzzle.
From talking to colleagues around the country, I can say that Milwaukee, and the entire State, is exceptional for its cooperative, professional law enforcement agencies. No one agency can handle all that is asked of it alone. That is why we have a long-standing tradition of federal, state, county, and local partnerships, including to confront the unacceptable levels of violent crime in Milwaukee. Operation Legend should be welcomed by all because it enhances these partnerships, for the good of Milwaukee.
Finally, and perhaps most importantly, we want to address the murder of Qunyonce Louis-Moore. Qunyonce Louis-More was just 16-years-old when she was shot and killed by unknown individuals in Milwaukee a few weeks ago, on June 30, 2020. SAC Hughes will provide more details on a reward that FBI is offering for information related to her death. I spoke with Ms. Louis-Moore’s mother and grandmother recently. They are grieving, and they want whoever killed Qunyonce brought to justice. Of course, nothing will heal the sense of loss that Ms. Louis-Moore’s family feels. Every life lost in Milwaukee to violent crime is a tragedy. There have been nearly 100 tragedies so far this year in Milwaukee, and hundreds more individuals injured by firearms. Leaders at all levels in Wisconsin—federal, state, county, and local—should be working together, reaching across divides, to stop firearm violence in Milwaukee. Operation Legend will bring much-needed support to those efforts.
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U.S. Attorney’s Office Commemorates 30th Anniversary of the Americans with Disabilities ActRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La. – This week marks the 30thAnniversary of the Americans with Disabilities Act (the ADA). The ADA was signed into law on July 26, 1990, and is the nation’s preeminent civil rights law for providing access and equal opportunity for people with disabilities. The U.S. Attorney’s Office for the Western District of Louisiana is proud to play a critical role in enforcing the ADA to help eliminate discrimination against people with disabilities, U.S. Attorney David C. Joseph said today.
“Since its passage 30 years ago, the ADA has been instrumental in ensuring equal access and opportunity to individuals with disabilities,” said U.S. Attorney Joseph. “The United States Attorney’s Office for the Western District of Louisiana will continue to diligently enforce the ADA to remedy discrimination and ensure compliance. Our friends, family, and neighbors with disabilities must be afforded full access to the rights, privileges, and opportunities we all enjoy as Americans.”
In recent years the U.S. Attorney’s Office has investigated and resolved a number of ADA cases, including:
Ensuring Barrier-Free Access to Health Care Facilities: The U.S. Attorney’s Office has successfully resolved multiple matters to ensure that medical providers are using effective means of communication with patients, including qualified sign language interpreters provided at no cost to the patient, including Tri-State Physical Therapy Bossier and Acadiana Family Physicians.
Ensuring Equal Access for Children with Disabilities in Summer Camp Settings: The U.S. Attorney’s Office has conducted outreach to public and private camps within the Western District to ensure that the camps provide reasonable modifications of their policies and practices when necessary to enable campers with disabilities to participate fully in camp programs. https://www.justice.gov/usao-wdla/pr/summer-camps-must-reasonably-accommodate-children-disabilities
Ensuring Equal Access to Local Government Services: The U.S. Attorney’s Office has successfully resolved complaints with the Parish of DeSoto to ensure that people with disabilities can access local governmental services and facilities. https://www.justice.gov/usao-wdla/pr/us-attorneys-office-reaches-agreement-desoto-parish-increase-accessibility-pursuant
Ensuring Physical Access to Places of Public Accommodation: The U.S. Attorney’s Office has also resolved multiple matters to ensure physical access to public places to accommodate those with mobility disabilities.
The promise of the ADA is its wide-ranging efforts to eliminate disability discrimination across the range of services, programs, and activities that most Americans take for granted, but were largely inaccessible to individuals with disabilities prior to the law’s enactment. Whether in employment, areas of civic life, or in the day-to-day activities and access to goods and services that we all enjoy – the ADA ensures that individuals with disabilities enjoy the same opportunities as all Americans to participate in everything this nation has to offer.
Over the past 30 years, the United States has undertaken the challenge of changing perceptions about disability, tearing down barriers to equality, and altering the systems that have historically excluded people with disabilities. The Justice Department commemorates the many ways that the ADA has transformed society—by replacing exclusion with access, segregation with integration, and limitations with self-determination.
For more information about the ADA, call the Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
To file a complaint with the Department, please visit the Civil Rights Division’s portal at https://civilrights.justice.gov/report/.
For more information about the 30th Anniversary of the ADA, please visit www.ada.gov.# # #
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.
- U.S. Attorney describes USAO’s long history and crucial role in fighting violent crime in Albuquerque; says that derogatory and inflammatory rhetoric about brave men and women in law enforcement has no place in debate about violent crime
U.S. Attorney Justin Herdman announces Operation Legend in ClevelandRead the Press Release
United States Attorney Justin Herdman announced today that Operation Legend, a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime, will be expanding into the city of Cleveland.
“Today we are announcing that Operation Legend has come to Cleveland,” said U.S. Attorney Justin Herdman. “Operation Legend is the best of what we do every day. It’s federal, state and local law enforcement partnerships – working side-by-side, on long-term investigative efforts to deliver safety and security for the residents of Cleveland. I want to thank Mayor Jackson and Police Chief Calvin Williams for their partnership as well as the various federal and state agencies that make this initiative possible.”
“The City of Cleveland will continue to partner with federal law enforcement agencies to combat violent crime in our neighborhoods within the realm of constitutional policing,” said Mayor Jackson. “Residents and their families have a right to feel safe and be safe in their own communities. Coordinated efforts between local, state and federal law enforcement agencies will allow us to more effectively address and reduce violent crimes in Cleveland neighborhoods to build a safer Cleveland for all.”
Operation Legend is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early on the morning of June 29 in Kansas City. The operation was first launched on July 8 in Kansas City, Missouri, and expanded on July 22, 2020, to Chicago and Albuquerque. Today, the expansion of Operation Legend was announced in Cleveland, Detroit, and Milwaukee.
As part of Operation Legend, Attorney General Barr directed the FBI, U.S. Marshals Service, DEA, and ATF to significantly increase resources into Cleveland, Detroit, and Milwaukee in the coming weeks to help state and local officials fight high levels of violent crime, particularly gun violence. Cleveland is currently experiencing a significant increase in violent crime, with homicides up more than 13% and shootings up over 35% over 2019.
“We, the US Marshals, have a long-standing partnership with the Cleveland Division of Police, the Cuyahoga County Sheriffs Department, Ohio State Highway Patrol and the Ohio Adult Parole in apprehending violent fugitives,” said Assistant Chief of the U.S. Marshals, Assistant Chief Brian Fitzgibbon. “Operation Legend will build upon these strong relationships and strengthen our commitment to protect and serve the citizens of the City of Cleveland and surrounding areas.”
During a press conference to announce the expansion of Operation Legend, FBI Special Agent in Charge Eric Smith announced that as part of the initiative, a reward of up to $25,000 would be made available for information leading to the identification and arrest of the individual responsible for the carjacking and homicide of Eric Hakizimana.
"Someone knows who shot and killed 17-year-old Eric Hakizimana,” said FBI Special Agent in Charge Eric Smith. “The community and law enforcement must continue to work together to hold murderers accountable for taking our loved ones away. Operation Legend allows the FBI to offer a $25,000 reward for information leading to the successful identification and prosecution of the shooter. The FBI will continue to work collaboratively with our partners on all violent crime matters to ensure a safer community."
In the city of Cleveland, the Department of Justice will supplement state and local law enforcement agencies by sending more than 25 federal investigators from the FBI, DEA, and ATF to the city. Under the leadership of U.S. Attorney Justin Herdman, these investigators will complement the work already underway by existing joint federal, state and local task forces focused on combatting violent gangs, gun crime, and drug trafficking organizations.
The Bureau of Justice Assistance will make available $1 million to support Operation Legend’s violent crime reduction efforts in Cleveland, and the COPS Office has also made almost $8 million available to fund the hiring of 30 Cleveland Police officers, five Ohio State Highway Patrol troopers, and four Adult Parole Authority officers.
The Department of Justice has also provided assistance through the Joint Law Enforcement Operations (JLEO) fund to assist reimbursement of local law enforcement serving as federal task force officers with FBI, ATF, DEA, and the U.S. Marshals Service. Each Operation Legend city will receive $100,000 from ATF to help local agencies defray costs associated with installing or maintaining shot detection technology.
Two Rochester Men Sentenced for Food Stamp FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Hicham Khallad, 47, and Karim Euchi, 47, both of Rochester, NY, who were convicted of food stamp fraud, were sentenced by Chief U.S. District Judge Frank P. Geraci, Jr. Khallad was sentenced to a term of imprisonment of 45 days, and three years of supervised release. Euchi, an employee of Khallad, received a sentence of two years’ probation. The defendants were also ordered to pay $74,500 in restitution to the United States Department of Agriculture.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that the Supplemental Nutrition Assistance Program (SNAP), uses federal tax dollars to help low-income individuals purchase food. Eligible individuals are given a debit card containing their SNAP benefits, from which they can make food purchases at authorized food stores. A business that accepts SNAP benefits must be authorized to do so and can only accept SNAP benefits in connection with the sale of eligible food products. It is unlawful for any store to accept SNAP benefits for non-food items, such as cigarettes, beer, or cash.
Between May 2018 and February 2019, Khallad and Euchi operated the Joseph Market at 900 Joseph Avenue in Rochester. During that time, the defendants fraudulently accepted SNAP benefits from customers in exchange for non-food items, such as cigarettes. Khallad and Euchi also purchased food stamp benefits for less than their full value for cash, resulting in a profit for the defendants. In so doing, Khallad and Euchi caused the United States Government to deposit money into the Joseph Market’s bank accounts for food that was never purchased.
The sentencing is the result of an investigation by the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent-in Charge Bethanne M. Dinkins, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Monroe County Department of Social Services, under the direction of Commissioner Corinda Crossdale.
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Two Buffalo Men Arrested, Charged with Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Juan Padua, 32, and Michael Vasquez, 24, both of Buffalo, NY, were arrested and charged by criminal complaint with conspiring to possess with intent to distribute 500 grams or more of cocaine. The charge carries a minimum penalty of five years in prison, and a maximum of 40 years.
Assistant U.S. Attorney Charles E. Watkins, who is handling the case, stated that according to the complaint, the U.S. Postal Inspection Service (USPIS) intercepted a U.S. Postal Service Priority Express Mail parcel shipped from Puerto Rico and addressed to an apartment in which defendant Padua resided. The box was turned over the Buffalo Office of the Drug Enforcement Administration.
On July 22, 2020, investigators executed a federal search warrant on the box, which contained toys, coloring books, paper plates, napkins, and a Nickelodeon slime box. The slime box, which was wrapped in red wrapping paper with multi-colored stars and Spanish writing, contained a large, white, brick-like substance that was comprised of a loosely packed white powder. Field tests indicated the presence of both cocaine and fentanyl.
On July 23, 2020, a transmitting device was installed in the parcel and a controlled delivery was conducted. A short time later, investigators received a tone indicating that the parcel was opened. Investigators then executed a search warrant at the apartment in which Padua resided. The parcel was found in the rafters in the attic. Additional search efforts led to the recovery of the USPIS transmitting device, which was broken and recovered from the roof top of the rear porch at the premises. The defendants were taken into custody.
The defendants made an initial appearance before U.S. Magistrate Judge Michael J. Roemer. Vasquez was released on conditions, Padua is being held pending a detention hearing.
The complaint is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Troy Man Sentenced to 78 Months for Distributing and Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Kurtis Walter, age 27, of Troy, New York, was sentenced today to serve 78 months in prison for distribution and receipt of child pornography, announced United States Attorney Grant C. Jaquith, and Thomas F. Relford, Special Agent in Charge of the FBI Albany Field Office.
United States District Court Judge Mae A. D’Agostino also sentenced Walter to 15 years of supervised release, to begin following his term of imprisonment. Walter will also be required to register as a sex offender upon his release from prison.
Walter pled guilty on January 23, 2020. At that time, he admitted that in November 2017, he used a laptop computer equipped with an Internet-based instant messaging and file-sharing application to distribute child pornography. He also admitted to using the same laptop to search for and download child pornography, which he accessed through sites located on the Internet’s so-called dark web. Walter’s laptop and external devices contained approximately 98 video files and 2,349 image files depicting child pornography.
This case was investigated by the FBI, with assistance from the New York State Police, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon. This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Tennessee State Senator Katrina Robinson Charged in Criminal Complaint for Theft and Embezzlement Involving Government Programs and Wire FraudRead the Press Release
Memphis, TN – Tennessee State Senator Katrina Robinson, 39, has been federally charged with theft and embezzlement involving government programs and wire fraud. D. Michael Dunavant, U.S. Attorney announced the unsealing of the criminal complaint today.
According to the information presented in the complaint, Katrina Robinson is the Director of The Healthcare Institute (THI), a provider of educational and training programs for jobs in the healthcare field. She is also a Tennessee State Senator, having been elected to represent the 33rd District in Shelby County in 2018.
Between 2015 and 2019, The Healthcare Institute received over $2.2 million in federal grants from the Health Resources and Services Administration (HRSA), an agency of the U.S. Department of Health and Human Services. During that same time period, Robinson stole in excess of $600,000 from THI by compensating herself in excess of what was allowed under the terms of the HRSA grant and by using Institute funds for payments and purchases for her own personal benefit and that of her immediate family.
Payments and purchases included a vehicle for her daughter; clothing, accessories, and hair and beauty products; expenses related to her wedding and honeymoon, and later, legal fees for her divorce; payments on her personal debts, including credit cards, store charge cards, student loans, and other personal loans; travel and entertainment for herself and her family; improvements to her personal residence; expenses related to a body aesthetics business she owned and a snow cone business operated by her children; and an event for her State Senate campaign.
If convicted, Robinson faces a possible sentence of up to 20 years in federal prison, 3 years supervised release, and a $250,000 fine. There is no parole in the federal system.
The case will be presented to a federal grand jury at a later date to consider an indictment against the defendant.
U.S. Attorney D. Michael Dunavant said: "Protection of the United States Treasury and federal grant programs against theft, fraud, waste, and abuse is a top priority of this office and the Department of Justice. We commend the FBI and the HHS-OIG for their diligent and thorough investigation in this case."
"Anyone who seeks to take advantage of government programs will be vigorously investigated by the FBI, regardless of who they are or any position they hold," said Acting Special Agent in Charge Jermicha L. Fomby of the Memphis Field Office of the Federal Bureau of Investigation. "The public should know that the FBI will continue to work diligently with our law enforcement partners to identify and investigate those who seek to exploit government programs and line their own pockets."
This case was investigated by the Federal Bureau of Investigation (FBI) and the U.S. Department of Health and Human Services –Office of the Inspector General (HHS-OIG).
The charges and allegations contained in the complaint are merely accusations of criminal conduct, not evidence. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt, and convicted through due process of law.
Assistant U.S. Attorney Christopher E. Cotten is prosecuting this case on behalf of the government.
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Tahlequah Man Pleads Guilty to Possession of Firearm and Ammunition, Threatening Federal Official's Family MemberRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Hurley Dewayne Pitts, age 46, of Tahlequah, Oklahoma entered a guilty plea to Felon In Possession Of Firearm & Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both; and to Influencing Federal Official By Threatening Family Member, in violation of Title 18, United States Code, Sections 115(a)(1)(A) and 115(b)(4), punishable by 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about January 18, 2020, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The Indictment further alleged that on or about February 22, 2020, within the Eastern District of Oklahoma, the defendant, did threaten to assault, kidnap, and murder the immediate family members of T.C., a Task Force Officer for the Federal Bureau of Investigation, with intent to impede, intimidate, and interfere with T.C. while he was engaged in the performance of his official duties, and to retaliate against T.C. on account of the performance of his official duties.
The charges arose from an investigation by the Tahlequah Police Department and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States at the change of plea hearing.
Statement of AAG Makan Delrahim Thanking Participants in Workshop on Competition in the Licensing of Public Performance Rights in the Music IndustryRead the Press Release
On Wednesday July 29, the Justice Department’s Antitrust Division concluded its two-day virtual workshop on competition in the licensing of public performance rights in the music industry.
“I want to thank our panelists and keynote songwriters for participating in this important workshop on the ASCAP and BMI consent decrees,” said Assistant Attorney General Makan Delrahim. “Watching and listening to them over the last two days, I was struck by how many talented people with very different backgrounds the workshop brought together. Songwriters, lawyers, economists, and CEOs obviously have very different skill sets. Yet all the participants were exceptional, talented, and insightful.”
“This diverse representation underscores the free market principles that the Antitrust Division defends. The ability to succeed as an entrepreneur, as an innovator, as a songwriter, or as another creative professional is the economic freedom promised by competitive markets. That freedom is what the attorneys and economists at the Antitrust Division devote themselves to upholding.”
“This week’s proceedings underscored that liberty in free markets is important to our country, and it’s important to the music industry. As the Antitrust Division considers the appropriate path forward, we will strive to find the one that best supports this critical industry.”
The participants in the event included:
- LeAnn Rimes
- Pharrell Williams
- Jon Bon Jovi
- David Israelite, President and CEO, National Music Publishers’ Association (NMPA)
- Michelle Lewis, Executive Director, Songwriters of North America (SONA)
- Elizabeth Matthews, CEO, American Society of Composers, Authors, and Publishers (ASCAP)
- Michael O’Neill, President and CEO, Broadcast Music Inc. (BMI)
- The Honorable Gordon Smith, President and CEO, National Association of Broadcasters (NAB)
- Jackie Brenneman, General Counsel, National Association of Theatre Owners
- Ted Cohen, Managing Partner, TAG Strategic
- David Kokakis, Chief Counsel, Universal Music Publishing Group
- Janet McHugh, Executive Director, TV Music License Committee
- Mike Steinberg, Executive Vice President of Creative and Licensing, BMI
- Danielle Aguirre, Executive Vice President and General Counsel, NMPA
- Jordan Bromley, Board Member, Music Artists Coalition
- Bart Herbison, Executive Director, Nashville Songwriters Association International
- Clara Kim, Executive Vice President and General Counsel, Business and Legal Affairs, ASCAP
- Jack Kugell, Board Member, SONA
- John Bodnovich, Executive Director, American Beverage Licensees
- Peter Brodsky, General Counsel and Executive Vice President, Business Affairs, Sony/ATV Music Publishing
- Rick Kaplan, General Counsel and Executive Vice President, Legal and Regulatory Affairs, NAB
- Stuart Rosen, Senior Vice President and General Counsel, BMI
- Tres Williams, Executive Vice President, Business Affairs, iHeartMedia, Inc.
- Adam B. Jaffe, Brandeis University
- Kevin M. Murphy, University of Chicago
A transcript and video of the proceedings will be available in the coming days on the workshop page, located at https://www.justice.gov/atr/events/public-workshop-competition-licensing-music-public-performance-rights. Assistant Attorney General Makan Delrahim’s opening statement is available at here.
Schuylkill County Man Sentenced to 30 Months’ Imprisonment for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carlos Correa, age 32, of Shenandoah, Pennsylvania, was sentenced on July 23, 2020, by U.S. District Court Judge Robert D. Mariani to 30 months’ imprisonment for his participation in a heroin trafficking conspiracy in Schuylkill and Luzerne Counties.
According to United States Attorney David J. Freed, Correa previously pleaded guilty to conspiracy to distribute more than 100 grams of heroin, which is equivalent to more than 4,000 retail bags of heroin. The drug conspiracy operated in the Shenandoah area of Schuylkill County and the Hazleton area of Luzerne County during 2012 through 2015.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Shenandoah Police. Assistant U.S. Attorneys Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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