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23 July 2020
U.S. Attorney William M. McSwain Announces Election Fraud Charges Against Former U.S. Congressman and Philadelphia Political OperativeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that former U.S. Congressman Michael “Ozzie” Myers, 77, of Philadelphia, Pennsylvania, has been charged by Indictment with multiple counts, including conspiring to violate voting rights by fraudulently stuffing the ballot boxes for specific Democratic candidates in the 2014, 2015, and 2016 Pennsylvania primary elections, bribery of an election official, falsification of records, voting more than once in federal elections, and obstruction of justice. U.S. Attorney McSwain’s video statement providing additional details about this case is available on the Office website here: https://www.justice.gov/usao-edpa/video/us-attorney-william-m-mcswain-announces-indictment-former-congressman-election-fraud.
Specifically, Myers is alleged to have bribed the Judge of Elections for the 39th Ward, 36th Division in South Philadelphia, Domenick J. Demuro, in a fraudulent scheme over several years. Demuro, who was charged separately and pleaded guilty in May 2020, was responsible for overseeing the entire election process and all voter activities of his Division in accord with federal and state election laws.
The voting machines at each polling station, including in the 39th Ward, 36th Division, generate records in the form of a printed receipt documenting the use of each voting machine. This printed receipt, also known as the “results receipt,” shows the vote totals, and the Judge of Elections and other Election Board Officials at each polling place attest to the accuracy of machine results.
Myers is charged with bribing Demuro to illegally add votes for certain candidates of their mutual political party in primary elections. Some of these candidates were individuals running for judicial office whose campaigns had hired Myers, and others were candidates for various federal, state, and local elective offices that Myers favored for a variety of reasons. According to the Indictment, Myers would solicit payments from his clients in the form of cash or checks as “consulting fees,” and then use portions of these funds to pay Demuro and others to tamper with election results.
After receiving payments ranging from between $300 to $5,000 per election from Myers, Demuro would add fraudulent votes on the voting machine – also known as “ringing up” votes – for Myers’ clients and preferred candidates, thereby diluting the value of ballots cast by actual voters. At Myers’ direction, Demuro would add these fraudulent votes to the totals during Election Day, and then would later falsely certify that the voting machine results were accurate. Myers is also accused of directing Demuro to lie to investigators about the circumstances of the bribes and the ballot-stuffing scheme.
“Voting is the cornerstone of our democracy. If only one vote has been illegally rung up or fraudulently stuffed into a ballot box, the integrity of that entire election is undermined,” said U.S. Attorney McSwain. “Votes are not things to be purchased and democracy is not for sale. If you are a political consultant, Election Official, or work with the polling places in any way, I urge you to do your job honestly and faithfully. That is what the public deserves, it is what democracy demands, and it is what my Office will enforce.”
“Free and fair elections are the hallmark of our system of government,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The Department of Justice has zero tolerance for corruption of the electoral process, and we will spare no effort in investigating and prosecuting those who would seek an unfair advantage at the polls by bribing state and local officials responsible for ensuring the fairness of our elections.”
“Transparent and fair elections are integral to the proper functioning of our democracy,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Those who seek to corrupt the vote threaten the public’s trust in the process and must be brought to justice. The FBI is determined to protect the integrity of our electoral system.”
“These charges, announced today by the Justice Department, clearly illustrate allegations of absolute disregard for the sanctity of our electoral system,” said Captain Leo D. Hannon Jr., Director of the Special Investigations Division of the Pennsylvania State Police. “As disheartening as this conduct may be for the voting public in Philadelphia and elsewhere, the citizens we serve should be reassured by the fearless and tireless work of the attorneys, agents, and troopers tasked with the continuation of this active investigation. Particularly in the current atmosphere of impending elections, the Pennsylvania State Police prioritize investigations into allegations of voter fraud and public corruption.”
If convicted, the defendant faces a maximum possible sentence of 90 years in prison and two million dollars in fines.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorney Eric L. Gibson and Richard C. Pilger, Director of Elections Crimes Branch, Criminal Division, Public Integrity Section, U.S. Department of Justice.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Men Indicted for Fentanyl Trafficking Conspiracy in Placer County and Other Narcotics OffensesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment today against Steven Lawrence Robinson, 34, of Granite Bay, and Nathaniel Opondo Hubbert, 39, of Grass Valley, charging them with a conspiracy to possess and distribute fentanyl and other narcotics offenses, U.S. Attorney McGregor W. Scott announced.
According to court documents, between June 2 and June 24, Robinson and Hubbert conspired to distribute fentanyl. Additionally, Robinson is charged with two counts of possession with intent to distribute fentanyl. Hubbert is also charged with possession with intent to distribute methamphetamine and possession with intent to distribute heroin and fentanyl. According to the criminal complaint, the defendants are connected to at least one overdose of a victim who had to be given medical treatment after using drugs purchased from Hubbert.
This case is the product of an investigation by the Drug Enforcement Administration, the Lincoln Police Department, the Placer County District Attorney’s Office, the Placer County Sheriff’s Office, and the Roseville Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted of the conspiracy count or the counts of possession with intent to distribute fentanyl, or the count of possession with intent to distribute methamphetamine, the defendants face a minimum statutory penalty of five years in prison and a maximum of 40 years in prison and a $5 million fine. The count of possession with intent to distribute heroin and fentanyl carries a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Fresno County Residents Indicted for Firearms OffensesRead the Press Release
FRESNO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced that a federal grand jury in Fresno returned indictments in the following cases involving illegal firearms offenses.
Anthony Murillo, 37, of Fresno, was charged today with two counts of being a felon in possession of a firearm. According to court documents, on April 17, Murillo possessed a Kahr Arms 9 mm handgun, and on May 15, Murillo was found to be in possession of a Glock 17 handgun and a Mini Draco AK rifle. Among Murillo’s prior felony convictions, three are for being a felon in possession of a firearm. These prior felonies prohibit him from possessing a firearm.
This case is the product of an investigation by the Federal Bureau of Investigation, the Fresno County Sheriff’s Office and the Fresno Police Department.
Brandon Castillo, 36, of Laton, was charged today with one count of being a felon in possession of ammunition. According to court documents, on May 25, Castillo was found to be in possession of .223-caliber ammunition. Castillo has prior felony convictions for assault with a deadly weapon and for being a felon in possession, which prohibit him from possessing ammunition.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Selma Police Department. Assistant U.S. Attorney Stephanie M. Stokman is prosecuting both cases.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Two Associates of Monument Street Drug Trafficking Organizations in East Baltimore Plead Guilty to Federal Drug Distribution ChargesRead the Press Release
Baltimore, Maryland – Delshawn Harvey, age 41, and Keizye Collins, age 23, both of Baltimore Maryland, pleaded guilty on July 21, 2020, to federal drug distribution charges related to their participation in a conspiracy to distribute cocaine and/or fentanyl in the Monument Street area of East Baltimore. U.S. District Judge Ellen L. Hollander sentenced co-defendant, Christopher Redd, age 35, of Baltimore, yesterday to three years in federal prison for his role in the conspiracy.
The guilty pleas and sentence were announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“The Baltimore OCDETF Strike Force is a critical part of our strategy to make Baltimore safer by identifying and focusing on those groups responsible for the most violent crime in our city,” said U.S. Attorney Robert K. Hur. “The Monument Street area is one of the first areas the Strike Force has targeted and we anticipate that Strike Force cases will make these neighborhoods safer for the law-abiding citizens that live there.”
According to their guilty pleas, in July of 2018, Drug Enforcement Administration (“DEA”) Strike Force Group 1 began an investigation of the Monument Street corridor in East Baltimore, which is known to support a high volume of street-level drug distribution and acts of violence associated with the drug trafficking. During the investigation, law enforcement identified multiple street-level drug trafficking “shops,” with the two most prominent located in the 400 block of North Montford Avenue at Jefferson Street (“the Montford DTO”) and in the 2400 block of East Monument Street at Port Street (the “Out the Mud,” or “OTM DTO”).
As detailed in their plea agreements, Harvey supplied drugs to the Montford and OTM drug trafficking organizations, among others; Collins was a drug distributor for the OTM drug trafficking organization; and Redd was a wholesale drug customer of members of the conspiracy. Law enforcement overheard the defendants discussing the distribution of drugs, including powder and crack cocaine, heroin, and fentanyl, among others.
Law enforcement executed search warrants at residences associated with Harvey and his co-conspirators in January and May 2019, recovering more than two kilos of cocaine; drug paraphernalia, including digital scales, packaging materials, and money counters; more than $34,000 in cash, believed to be drug proceeds; and two semi-automatic pistols and ammunition, which Harvey admitted he possessed in connection to his drug trafficking activities. Harvey is prohibited from possessing firearms or ammunition as a result of a previous felony conviction.
Collins admitted that he distributed cocaine, fentanyl, and heroin to an undercover detective on at least four occasions, and provided the undercover detective his contact information for future drug transactions. In addition, in July 2018, Collins handed out free samples of heroin, referred to as “testers,” including to an undercover detective.
Throughout the course of their involvement, it was reasonably foreseeable to Harvey and Redd, and within the scope of the conspiracy that they or other members of the conspiracy would distribute more than five kilograms of cocaine, as well as quantities of cocaine base, heroin, and fentanyl during the course of and in furtherance of the conspiracy. It was reasonably foreseeable to Collins that he or other members of the conspiracy would distribute at least 400 grams of fentanyl, as well as quantities of cocaine, cocaine base, and heroin.
Collins faces a maximum of 20 years in prison for the drug conspiracy and for possession with intent to distribute cocaine. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Harvey and the government have agreed that, if the Court accepts the plea agreement, Harvey will be sentenced to 10 years in federal prison. Judge Hollander has scheduled sentencing for Harvey and Collins on September 24, 2020.
Of the 25 defendants indicted in this case, six—including Redd, Harvey, and Collins—have pleaded guilty. The remaining defendants have trial dates in October 2020, or in January or May 2021.
This case was investigated as part of the Baltimore Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, an initiative designed to combat violent crime in Baltimore. The mission of the Baltimore OCDETF Strike Force is to disrupt and dismantle the most violent gangs and drug trafficking organizations, and their financial infrastructure, in the Baltimore metropolitan area. In addition to the Maryland U.S. Attorney’s Office, members of the Strike Force include the Baltimore City State’s Attorney’s Office, DEA, FBI, Homeland Security Investigations, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Postal Inspection Service, the U.S. Marshals Service, the Washington/Baltimore HIDTA, the Maryland State Police, the Maryland Department of Public Safety and Correctional Services, the Maryland Transportation Authority Police, the Maryland National Guard, Baltimore County, Baltimore City, and Anne Arundel County Police Departments, and the Baltimore City Sheriff’s Office.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys LaRai Everett and James T. Wallner, who are prosecuting the case.
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Three Gang Members Charged Federally with Conspiracy to Commit Murder in Aid of Racketeering for Shooting in November that Killed FourRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against three members of the Mongolian Boys Society, charging them with conspiring to commit murder in aid of racketeering for acting as lookouts for a gang shooting that killed four, U.S. Attorney McGregor W. Scott announced.
According to court documents, Fresno residents Pao Vang, 30; Jhovanny Delgado, 19; and Johnny Xiong, 25, were members of the Mongolian Boys Society (MBS), a criminal organization active in Fresno and Visalia.
According to the indictment, on Nov. 17, 2019, members and associates of the MBS held a meeting and conspired to commit a retaliatory murder. They selected a target residence, chose shooters, provided them with guns, and drove to the target location. Vang, Delgado, and Xiong, who attended the meeting, were designated as lookouts. They positioned themselves on street corners near the target residence to report the presence of law enforcement to the shooters or other gang members. Subsequently, the MBS shooters killed four individuals and injured at least six others.
Vang, Delgado, and Xiong were charged by criminal complaint on Jan. 2 and have been detained in federal custody since that date.
Additionally, on Jan. 2, the Fresno County District Attorney’s Office filed a related felony complaint in the Fresno County Superior Court charging Ger Lee, 27; Anthony Montes, 27; Porge Kue, 26; and Billy Xiong, 25, with special circumstances murder, conspiracy to commit murder, multiple counts of attempted murder, as well as enhancements for personally using and discharging firearms in the commission of the offenses and for committing the crimes for the benefit of, at the direction of, or in association with a criminal street gang.
“Federal and local law enforcement are committed to stopping violent criminal organizations like this one,” said U.S. Attorney Scott. “We will continue to work with our state and federal partners to keep our communities safe from gang violence.”
“In conjunction with the ongoing criminal case in the Fresno County Superior Court, today’s news that a federal grand jury returned an indictment is a testament to the hard work of the Fresno Police Department and that of our federal partners,” said Fresno County District Attorney Lisa Smittcamp. “Collaboratively, we will do all we can to hold to account the perpetrators of this horrific offense and to seek justice for the victims and survivors.”
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the U.S. Marshals Service, the Fresno Police, the Fresno County District Attorney’s Office with assistance from the Fresno County Sheriff’s Office and the Clovis Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Third Defendant Arrested on Federal Arson Charges for Alleged Burning of Salt Lake City Police Patrol CarRead the Press Release
SALT LAKE CITY – A federal complaint unsealed this week charges a third individual with one count of arson for allegedly setting fire to a Salt Lake City Police Department vehicle during May 30, 2020, riots in Salt Lake City.
Christopher Isidro Rojas, 28, of Salt Lake City was taken into custody Friday by members of the FBI’s Joint Terrorism Task Force (JTTF) as he left his apartment. Law enforcement officers executed a traffic stop after he got into a car.
The complaint alleges that on the afternoon of May 30, 2020, a peaceful protest in downtown Salt Lake City transitioned into acts of destruction and violence. Rioters near the Salt Lake City library overturned a Salt Lake City Police Department patrol car. Moments later, rioters set the patrol car on fire. Video footage from the event shows individuals using fire to damage and completely destroy the car. Federal authorities are charging the arson cases.
According to the complaint, video footage from the event shows an individual, later identified by police as Rojas. The complaint alleges Rojas used a cigarette lighter to help another man, holding white fabric, light the fabric on fire. Once the fabric begins to burn, the other man threw the burning fabric toward the overturned police car. According to the complaint, the burning cloth landed partially in the interior of the patrol car and partially on the street. Rojas is later recorded on video at the riot stating “I put the cop car on fire. It didn’t blow up.”
In the weeks after the riot, the Salt Lake City Police Department, according to the complaint, sought help from the public identifying the man who claimed to have “put the car on fire.” The FBI in Salt Lake City also offered a reward of up to $25,000 for information leading to the arrest and conviction of two arson suspects – up to $12,500 per suspect. Law enforcement officers received tips identifying Rojas.
Federal arson charges in the case are pending against Jackson Stuart Tamowski Patton, 26, and Latroi Devon Newbins, 28, both of Salt Lake City, who were charged earlier. Patton remains in custody. Although federal prosecutors requested Newbins be detained as well, he has been released from custody.
A complaint is not a finding of guilt. Individuals charged in a complaint are presumed innocent and entitled to a fair trial. The charge in the complaint has a potential sentence of 20 years in prison with a minimum-mandatory sentence of five years.
U.S. Attorney John W. Huber expressed appreciation for the coordinated effort local, state, and federal law enforcement agencies are providing as a part of the investigation. “Utah law enforcement has a strong history of working together. The investigation surrounding the burning of the patrol car is an excellent example of agencies playing to their strengths, giving us the tools we need to investigate and prosecute this criminal conduct.”
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office are prosecuting the case. Investigating agencies include members of the FBI’s JTTF, the Salt Lake City Police Department, the ATF and the Utah Department of Public Safety. U.S. Marshals, who are members of the JTTF, assisted with the arrest of Rojas.
Tennessee Woman Sentenced on Health Care Fraud ChargeRead the Press Release
ABINGDON, VIRGINIA. – A Strawberry Plains, Tennessee woman, who billed Virginia Medicaid for services that were not completed, was sentenced today in U.S. District Court in Abingdon to three years of probation, including three months of house arrest, and 200 hundred hours of community service, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Kathy Marie Patrick, 62, previously pleaded guilty to health care fraud. Patrick was also ordered to pay restitution to the Virginia Medicaid program in the amount of $30,968.
According to court documents, Patrick worked as a services facilitator for Virginia Medicaid from August 2012 through September 2019. Services facilitators are responsible for assisting individuals, who have chosen to receive care at home as an alternative to a nursing facility, by providing home visits, training, assessments, and other services on a regular basis.
Patrick admitted at her guilty plea hearing that on multiple occasions, she billed for training and home visits with Medicaid recipients that had not actually been completed. Some of these visits were alleged to have occurred while Patrick was working her other jobs at the Cumberland Mountain Community Services Board and, later, Dollywood.
The investigation of the case was conducted by the Office of the Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney and Assistant Attorney General Janine Myatt is prosecuting the case for the United States.
Tarrant County Man Sentenced for Attempting to Coerce and Entice a ChildRead the Press Release
PLANO, Texas – A 48-year-old Saginaw, Texas man has been sentenced to federal prison for attempted child coercion and enticement in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox and FBI Special Agent in Charge Matthew J. DeSarno today.
Adam Rene Rodriguez was found guilty by a jury on Oct. 18, 2019, of attempted coercion and enticement of a minor and was sentenced to 210 months in federal prison today by U.S. District Judge Sean D. Jordan.
According to information presented at trial, on May 3, 2019, Rodriguez was arrested by members of the FBI Dallas Field Office and the Plano Police Department when he traveled to Plano to engage in sex acts with an individual he believed to be a 14-year old child.
During the 4-day trial, jurors heard that an undercover agent entered a sexually-oriented messaging group that was run by Rodriguez. Between April 10, 2019 and May 3, 2019, Rodriguez engaged in continuing messages with the undercover persona, even after being repeatedly advised of the persona's age. In the messages, Rodriguez (as username "Texasarod") continued to ask for photos of the child, sent the child sexually explicit material, and offered to "train" the child to engage in various sex acts. Evidence presented to the jury also included messages in which Rodriguez instructed the child on how to conceal her online activities and avoid detection by her parents. The exchanges continued until May 3, 2019. On that day, Rodriguez drove to a pre-arranged meeting place with condoms in order to engage in illegal sex acts with the child. Rodriguez testified on his own behalf, contending that he believed that he was communicating with an adult who was role playing or fantasizing about pretending to be a child.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office and the Plano Police Department and prosecuted by Assistant U.S. Attorneys Marisa Miller and Lesley Brooks.
Sun Valley Man Indicted on Federal Narcotics Charges and Weapons Offenses, including Possession of Ghost Gun and Grenade LauncherRead the Press Release
LOS ANGELES – A San Fernando Valley man was arraigned this afternoon after being arrested Wednesday night on a series of weapons charges and a drug trafficking offense that alleges he possessed about 3.8 kilograms of heroin for sale.
Edmond Tumasyan, 35, of Sun Valley, pleaded not guilty to charges contained in an 11-count federal grand jury indictment that charges him with possession with intent to distribute heroin and the illegal possession of multiple firearms, including an AR-15-type rifle with no serial number (commonly referred to as a “ghost gun”), machine guns, handguns and silencers, many of them unregistered. The indictment also alleges that Tumasyan illegally possessed an unregistered 40mm grenade launcher.
Tumasyan was taken into custody Wednesday evening by members of the Eurasian Organized Crime Task Force without incident. At today’s arraignment, Tumasyan pleaded not guilty to the charges in the indictment and was ordered to stand trial on September 15.
The firearms seized from Tumasyan’s residence in 2019 were illegally possessed because some allegedly were used in furtherance of drug trafficking and because Tumasyan is a convicted felon, having been previously convicted of crimes involving burglary, false checks and narcotics.
The Task Force opened a federal case targeting Tumasyan in October 2019 following seizures made by the Glendale Police Department and the Los Angeles County Sheriff’s Department.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If he were to be convicted of the 11 charges in the indictment, Tumasyan would face a statutory maximum penalty of life in federal prison.
The case against Tumasyan is the result of an ongoing investigation by the Eurasian Organized Crime Task Force, which is made up of special agents with the FBI, IRS Criminal Investigation and the Department of Health and Human Services’ Office of Inspector General, as well as officers with the Los Angeles County Sheriff’s Department, the Glendale Police Department, and the California Department of Health Care Services.
This case is being prosecuted by Assistant United States Attorney Joseph D. Axelrad of the Violent and Organized Crime Section.
Stamford Man Sentenced to Federal Prison for Possessing, Selling FirearmRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KEVIN GENIS, 27, of Stamford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on May 28, 2019, law enforcement conducted a controlled purchase of a Century Arms International 7.62 caliber AK pistol and 10 rounds of ammunition from Genis for $900.
In November 2015, Genis was convicted in state court of three counts of possession with intent to sell narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Genis was on state probation at the time he illegally possessed and sold the firearm.
Genis has been detained since his arrest on June 27, 2019. On February 7, 2020, he pleaded guilty today one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stamford Police Department. The case was prosecuted by Assistant U.S. Attorneys Maria del Pilar Gonzalez and Brendan Keefe.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
St. Charles Man Pleads Guilty and Sentenced to Sixteen Months of Time Served for Threatening U.S. Senator Josh HawleyRead the Press Release
St. Louis, Missouri –United States District Judge Ronnie L. White sentenced Jeremy L. Cawthon, 38, of St. Charles, to 16 months of time already served for threatening U.S. Senator Josh Hawley through Facebook communications. Cawthon has been confined in the St. Louis County Jail for the past 16 months after being criminally charged on April 5, 2019.
According to the plea agreement, in March 2019 and April 2019, Cawthon sent numerous threats via Facebook to Senator Hawley’s account which were received in Washington D.C. Federal agents were able to trace the communications to Cawthon’s residence in St. Charles, Missouri.
This case was investigated by the Federal Bureau of Investigation, and was prosecuted by the United States Attorney’s Office.
Sixth Pharmaceutical Company Charged in Ongoing Criminal Antitrust InvestigationRead the Press Release
Taro Pharmaceuticals U.S.A., Inc. (Taro U.S.A.) has been charged for conspiring to fix prices, allocate customers, and rig bids for generic drugs, the Department of Justice announced today.
A two-count felony charge was filed today in the U.S. District Court for the Eastern District of Pennsylvania in Philadelphia, charging Taro U.S.A. with participating in two criminal antitrust conspiracies, each with a competing manufacturer of generic drugs and various executives.
The Antitrust Division also announced a deferred prosecution agreement (DPA) resolving the charges against Taro U.S.A., under which the company agreed to pay a $205,653,218 criminal penalty and admitted that its sales affected by the charged conspiracies exceeded $500 million. Under the DPA, Taro U.S.A. has agreed to cooperate fully with the Antitrust Division’s ongoing criminal investigation. As part of the agreement, the parties will file a joint motion, which is subject to approval by the Court, to defer for the term of the DPA any prosecution and trial of the charges filed against the defendant.
“Taro Pharmaceuticals U.S.A.’s unlawful conspiracies to raise the prices of critical drugs robbed consumers at pharmacy counters across America,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Today’s resolution marks another important step toward ensuring that competitively priced generic drugs are available to the millions of American consumers who rely on them.”
“During these difficult times, it is more important than ever that our pharmaceutical companies conduct business with the well-being of the consumer in mind,” said Acting Special Agent in Charge Steven Stuller, U.S. Postal Service Office of Inspector General. “When generic drug companies conspire to artificially increase prices, they do so to the detriment of many who depend on these medications to maintain good health. Along with the Department of Justice Antitrust Division and our partners at the Federal Bureau of Investigation, the USPS Office of Inspector General will remain committed to investigating those who would engage in this type of harmful conduct.”
“Today’s announcement demonstrates the FBI’s commitment to working with our partners to combat price-fixing and antitrust violations that ultimately harm the American public,” said Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office. “We will continue to pursue these investigations to call attention to this criminal activity in order to ultimately ensure a competitive market and access to generic drugs.”
“The charges filed today in the U.S. Court for the Eastern District of Pennsylvania are indicative of my Office’s ongoing efforts to investigate and charge companies and executives who fix the prices of generic pharmaceuticals,” said U.S. Attorney McSwain. “We and our partners at the Antitrust Division and other federal law enforcement agencies remain heavily focused on price-fixing and illegal market allocation in generic drugs. These charges and the related deferred prosecution agreement, subject to approval by the court, are yet another important accomplishment in that area.”
In the deferred prosecution agreement, Taro U.S.A. admitted to participating in two charged conspiracies between 2013 and 2015. Specifically, Count One charges Taro U.S.A. for its role in a conspiracy with Sandoz Inc., former Taro U.S.A. Vice President of Sales and Marketing Ara Aprahamian, and other individuals, from at least as early as March 2013 and continuing until at least December 2015. Count Two charges Taro U.S.A. for its role in a second conspiracy with a generic drug company based in Pennsylvania and other individuals, from at least as early as May 2013 and continuing until at least December 2015. According to the charge and DPA, Taro U.S.A. and its co-conspirators agreed to fix prices, allocate customers, and rig bids for numerous generic drugs, including medications used to prevent and control seizures and treat bipolar disorder, pain and arthritis, and various skin conditions.
This is the tenth case to be filed in the Antitrust Division’s ongoing investigation into the generic pharmaceutical industry. To date, five of the six companies charged - including Taro U.S.A's co-conspirator Sandoz Inc. - have admitted to their roles in antitrust consipriacies and resolved through DPAs under which they've collectively agreed to pay over $426 million in criminal penalties. In addition, four executives have been charged for their roles in fixing prices of generic drugs. Former Taro U.S.A. executive Ara Aprahamian was indicted in February 2020 and is awaiting trial. The other three executives have pleaded guilty, including a former senior executive at Sandoz Inc.
The charged offense carries a statutory maximum penalty of a $100 million fine per count for corporations, and the maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $100 million.
This case is the result of an ongoing federal antitrust investigation into price fixing, market allocation, bid rigging, and other anticompetitive conduct in the generic pharmaceutical industry, which is being conducted by the Antitrust Division with the assistance of the United States Postal Service Office of Inspector General, the FBI’s Washington and Philadelphia Field Offices, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Anyone with information on price fixing, market allocation, bid rigging, or other anticompetitive conduct related to the pharmaceutical industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Shelton Woman Sentenced to Prison for Embezzling $260K from EmployerRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BARBARA J. BUCHANAN, 60, of Shelton, was sentenced today by U.S. District Judge Janet Bond Arterton to 12 months and one day of imprisonment, followed by three years of supervised release, for embezzling more than $260,000 from her employer. Judge Arterton also ordered Buchanan to serve the first six months of supervised release in home confinement, and to perform 100 hours of community service.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, Buchanan was the payroll manager for a Connecticut company. Between approximately 2014 and September 2019, Buchanan made false entries and adjustments in the payroll system in order to wire company funds into her personal bank account. She also made false journal entries in the company’s tax records in an effort to hide her fraudulent activities. Through the scheme, Buchanan embezzled approximately $220,000 from the company.
Buchanan also used a company American Express card to make approximately $40,000 in personal purchases.
Buchanan paid restitution of $260,202.52 prior to sentencing.
On March 11, 2020, Buchanan pleaded guilty to one count of wire fraud.
Buchanan, who is released on a $100,000 bond, is required to report to prison on December 1, 2020.
This investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Seven North Carolina Tax Preparers Charged with FraudRead the Press Release
WASHINGTON – A federal grand jury in Charlotte, North Carolina returned an indictment yesterday, charging three Charlotte tax preparers with conspiring to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and First Assistant U.S. Attorney William Stetzer for the Western District of North Carolina.
Four additional Charlotte tax preparers also named in yesterday’s indictment previously were charged with conspiring to defraud the United States in separate charging documents filed earlier this week.
According to the indictment, Joseph Octave owned and operated Kapital Financial Services, a tax return preparation business with two offices located in Charlotte, North Carolina. From 2014 through at least 2019, Octave and his employees, including Vonyeda Carson, Wendia Courtois, Whitney Vargas-Medrano, Melissa Greene, Natisha Holloman, and Kimberly Joline allegedly conspired to falsify clients’ tax returns by claiming deductions, business losses, American Opportunity credits, education credits, and earned income tax credits that the clients did not incur, in order to fraudulently increase refunds to be paid by the IRS. The indictment further charges that during some of these years, Carson and Courtois filed false tax returns in their own names.
Octave, Carson, and Courtois were charged in yesterday’s indictment. Joline, Holloman, Greene, and Vargas-Medrano were named in yesterday’s indictment but were separately charged by criminal informations filed on July 20, 2020.
If convicted, each defendant faces a maximum sentence of five years in prison on the conspiracy charge. Octave, Carson, and Courtois additionally face a maximum sentence of three years in prison on each count of aiding and assisting in the preparation of a false tax return. Carson and Courtois also face a maximum sentence of three years in prison for filing their own false tax returns. The defendants also face a period of supervised release, restitution, and monetary penalties.
An indictment or information merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and First Assistant U.S. Attorney Stetzer commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Brian Flanagan of the Tax Division and Assistant U.S. Attorney Caryn Finley, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Seven Charlotte Tax Return Preparers Are Charged for Conspiring to Defraud the IRSRead the Press Release
CHARLOTTE, N.C. – This week, the U.S. Attorney’s Office has charged seven Charlotte tax return preparers for conspiring to defraud the IRS.
Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join the U.S. Attorney’s Office in making today’s announcement.
A federal grand jury sitting in Charlotte returned a 20-count indictment yesterday, charging Joseph Octave, 47, Vonyeda Carson, 36, and Wendia Courtois, 44, all of Charlotte, with conspiring to defraud the United States, aiding and assisting in the preparation of false tax returns for their clients, and in some cases filing false personal tax returns. The indictment also identifies four other tax preparers who were charged earlier this week by criminal informations with conspiracy to defraud the United States. They are, Melissa Greene, 39, Natisha Holloman, 41, Kimberly Joline 30, and Whitney Vargas-Medrano, 31, also from Charlotte.
According to the filed charging documents, Joseph Octave owned and operated Kapital Financial Services, a tax return preparation business with two offices located in Charlotte. Since 2014, Octave and his employees, including Carson, Courtois, Vargas-Medrano, Greene, Holloman, and Joline conspired to defraud the United States by preparing and filing tax returns on behalf of clients that claimed fabricated and fraudulent items, including Schedule A deductions, Schedule C business income and losses, American Opportunity credits, education credits, and earned income tax credits. Octave, Greene, Joline, and Vargas-Medrano trained Kapital Financial Services employees to falsify federal income tax returns. The training material provided to employees included scripts and cheat sheets. The indictment further alleges that Carson and Courtois filed false personal tax returns.
If convicted, the defendants face a maximum sentence of five years in prison on the conspiracy charge. Octave, Carson, and Courtois face a maximum of three years in prison on each of the counts alleging they aided and assisted in the preparation of false income tax returns. Carson and Courtois face a maximum sentence of three years on each of the counts alleging they signed and filed their own false tax returns.
The indictments and informations merely allege that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
In making today’s announcement the U.S. Attorney’s Office and Principal Deputy Assistant General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation,
Assistant U.S. Attorney Caryn Finley and Trial Attorney Brian Flanagan of the Tax Division are prosecuting the case.
San Diego Laboratory Admits Fraudulent TRICARE Billing; Agrees to Pay $49 MillionRead the Press Release
Assistant U. S. Attorneys Valerie Chu and Paul Starita (619) 546-6750/7701
NEWS RELEASE SUMMARY – July 23, 2020
SAN DIEGO - San Diego-based clinical laboratory Progenity, Inc. admitted today that it submitted fraudulent bills to TRICARE, the Department of Defense health care benefit program that covers military service members and their dependents, and to the Federal Health Care Employee Benefits Program (FEHBP), for clinical tests that it knew were not covered or properly payable by either program.
In addition, Progenity, formerly known as Ascendant MDx, Inc., and previously headquartered in Carlsbad, California, admitted that it offered improper incentives to patients and doctors to use its laboratory services. To account for its fraud, Progenity has agreed to pay a total of $49 million in civil settlements in federal courts in the Southern District of California (SDCA) and the Southern District of New York (SDNY), as well as to multiple states.
Progenity offered noninvasive prenatal testing (“NIPT”) to pregnant women. NIPT refers to a category of genetic tests that screen for fetal chromosomal abnormalities, through analysis of fetal DNA present in a pregnant woman’s blood. This form of genetic testing, however, did not have FDA approval and was considered by TRICARE as a “laboratory-developed test.” As a result, TRICARE did not cover NIPT tests for its beneficiaries. Therefore, in order to get reimbursed by TRICARE, between April 1, 2013 and April 30, 2016, Progenity falsely and fraudulently used a medical billing code that TRICARE covered, but that Progenity knew did not accurately reflect that the NIPT test.
The U.S. Attorney’s Office for SDCA launched both a criminal probe into Progenity’s fraudulent billing practices and a civil investigation of the false claims Progenity had submitted to TRICARE and the FEHBP. Separately, SDNY initiated its own investigation into misconduct by Progenity relating to the improper incentives provided to patients and doctors to use its laboratory services. SDNY also coordinated with multiple state Attorneys General to investigate Progenity’s miscoding of NIPT to Medicaid programs in New York and several other states.
Progenity’s settlement agreement requires the company to pay $16.4 million to settle the SDCA civil matter, $19,449,316 to settle the SDNY civil matter, and $13,150,684 to settle the state civil allegations. The civil settlements were based on an ability-to-pay, payment-over-time basis, following an analysis of financial condition submissions made by Progenity. In light of Progenity’s remedial efforts, cooperation with the investigation, and payment of restitution to TRICARE and the FEHBP, the criminal investigation was resolved via a non-prosecution agreement, requiring that Progenity admit its misconduct and be subject to additional terms and conditions for up to a 24-month period.
U.S. Attorney Robert Brewer said, “San Diego is known for cutting-edge research and innovation, particularly in the biomedical sciences, that advances fields and improves people’s lives. But in the quest for advancement and profit, companies must still engage in honest and straightforward dealing, and provide the information that allows federal programs to determine whether to pay for new technologies.” Brewer commended the work of the attorneys from the criminal and civil divisions of the office and agents from the FBI and DCIS, who successfully conducted these parallel proceedings and brought to bear the full range of enforcement options to address Progenity’s misconduct.
“Fraudulent billing practices undermines the confidence in our healthcare system and in this case, cheated the TRICARE program serving the men, women and families of our military,” said Omer Meisel, Acting FBI Special Agent in Charge of the San Diego Field Office. “The FBI is committed to working with our partners and the public to stop fraud and ensure that healthcare dollars are used appropriately.”
“The settlement is a significant victory for the American public in that it returns ill-gotten proceeds to the U.S. Government and restores confidence in our healthcare system, including the U.S. military's TRICARE program,” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “As in this case, any unprincipled actions by healthcare providers that tarnish and possibly corrupt the integrity of the TRICARE program will be reviewed and vigorously investigated by DCIS and its law enforcement partners.”
“Fraudulent billing is a theft from the FEHBP and the American taxpayer,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, Office of Personnel Management OIG. “I congratulate our investigators and law enforcement partners on this successful outcome. The OPM OIG will always work hard to investigate suspected fraud and abuse of the FEHBP.”
“Protecting and providing top quality health care to service members, veterans and their families is our primary mission at TRICARE,” said Lt. Gen. Ronald Place, USA, director, Defense Health Agency. “We thank the investigators who uncovered this fraudulent billing by a company trying to profit from taking advantage of our men and women on the front lines. We will continue to work with law enforcement and other state and federal agencies to ensure health care providers are held accountable for participating in any fraudulent practices.”
This case was handled by Assistant U.S. Attorneys Valerie Chu, Paul Starita, and Beth Clukey on behalf of the Southern District of California.
DEFENDANT
Progenity, Inc.
San Diego, CA
AGENCIES
Federal Bureau of Investigation
Defense Criminal Investigative Services
Sacramento Federal Grand Jury Indicts Two from Redding and Vacaville for Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced that a federal grand jury in Sacramento returned indictments in the following cases involving illegal firearms offenses.
Michael James White, 37, of Redding, was charged today with being a felon in possession of a firearm. According to court documents, White was arrested on two separate occasions following traffic stops. On Aug. 10, 2019, officers stopped White’s vehicle for a traffic violation and subsequently found a Megastar .45-caliber handgun; and on Nov. 5, 2019, officers again stopped White’s vehicle following a traffic violation and found a Smith & Wesson .357 Magnum tucked into White’s waistband. White has several prior felony convictions—including prior convictions for illegally possessing firearms—that prohibit him from possessing firearms.
This case is the product of an investigation by the Shasta County District Attorney’s Office, the Redding Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.
Carlos Biviescas, 28, of Vacaville, was charged on July 9 with one count of being a felon in possession of ammunition. According to court documents, Biviescas has two prior felony convictions and is prohibited from possessing ammunition.
This case is the product of an investigation by the Vacaville Police Department, with special assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
These cases are also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Rutland Man Sentenced to 72 Months’ Imprisonment for Heroin and Cocaine Base Trafficking and Conspiring to Unlawfully Possess FirearmsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Terrance Chipp, 42, of Rutland was sentenced today by U.S. District Court Chief Judge Geoffrey Crawford to 72 months’ imprisonment and three years of supervised release, which follows the term of imprisonment.
Chipp previously pled guilty to possession with intent to distribute heroin and cocaine base, and conspiracy to unlawfully possess a firearm in furtherance of a drug trafficking offense. These offenses each carried a maximum of up to twenty years imprisonment.
U.S. Attorney Nolan stated that “the possession of firearms to protect drug trafficking activities greatly amplifies the already grave risk of harm to the community caused by heroin and crack cocaine distribution. The U.S. Attorney’s Office will continue to vigorously investigate and prosecute drug trafficking crimes involving firearms, working with our partners to deploy the necessary resources to the many hard-hit areas of southern Vermont.”
According to court records, on May 6, 2019, law enforcement executed a state search warrant at Chipp’s residence on Plain Street in Rutland. Inside a safe located in Chipp’s bedroom, law enforcement found about eight grams of heroin, two grams of cocaine base, a SCCY 9 mm pistol, and a loaded magazine. Inside Chipp’s dresser drawer, law enforcement found a Smith & Wesson .40 caliber pistol. Chipp intended to sell the seized controlled substances. In his plea agreement, Chipp admitted that he also traded drugs to another person for about 500 rounds of ammunition and that he “possessed firearms, in part, to protect his drug trafficking operations.”
The government argued in its sentencing memorandum that a long sentence was warranted because Chipp had begun trafficking drugs within a year after having served a three-year state sentence for heroin trafficking: “Three years of imprisonment did little to deter the defendant last time. This time, a sentence of substantially more than that is justified to protect the Rutland community from the defendant. . . . Specific deterrence and protecting the safety of the community are thus compelling factors here. The defendant’s high risk of recidivism is not theoretical but based on his long and frequent criminal history.”
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: www.psn.gov.prb .
This matter was investigated by the Vermont State Police Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigations (FBI), and the Rutland City Police Department. This case was prosecuted on behalf of the government by Assistant U.S. Attorney Joseph Perella. Chipp is represented by Federal Public Defender David McColgin of Burlington.
Robbins Pleads Guilty to Securities Fraud, Money Laundering, Convinced Victims to Invest Just over $10 Million in SchemeRead the Press Release
SALT LAKE CITY – Thomas Robbins, 65, of Heber City pleaded guilty to securities fraud and money laundering in U.S. District Court in Salt Lake City Wednesday afternoon, admitting he induced victims to invest in a fraudulent foreign currency day-trading business.
According to the plea agreement, as a part of his efforts to lull investors into a false sense of security about their investments, Robbins told them he had achieved high returns in his foreign day-trading business. In fact, Robbins lost millions of dollars and diverted investor money for his personal use and benefit. He solicited approximately 66 investors to invest around $10,354,700.69 in his scheme.
“This case presents a classic example of a Utah securities fraudster. Lie upon lie, he created an investment opportunity that drew in dozens of investors who ended up losing more than $10 million to Mr. Robbins – who is a swindler rather than a foreign currency day trader. For all intents and purposes, the money is gone and cannot be recovered for victims,” U.S. Attorney John W. Huber said today.
“We have no shortage of fraudsters in Utah waiting to take our money. While my partners and I can deliver justice to the offenders, as we are doing in this case, the key is to avoid victimization in the first place. I encourage everyone to apply healthy skepticism and due diligence before investing their nest eggs,” Huber said.
"Thomas Robbins did not learn his lesson from his past offenses,” said Special Agent in Charge Paul Haertel of the Salt Lake City FBI. “Unfortunately, that’s often the reality in cases like these. Fraudsters are master manipulators and have high rates of recidivism. The FBI and our partners will continue to go after those who steal people’s hard-earned money. Public education and awareness is key. When looking to invest, we urge the public to do their due diligence before investing. Please do things like checking federal court records and the state's White Collar Crime Offender Registry online at utfraud.com.”
“You have heard it before – if something sounds too good to be true, it probably is, and that is exactly what Thomas Robbins promised, something too good to be true. Mr. Robbins defrauded investors with false promises and tales of trading algorithms, all to obtain their cash and property,” said IRS-Criminal Investigation Special Agent Tara Sullivan. “This wasn’t the first time Mr. Robbins has done this. You should always check on anybody who is asking for your money for an investment and make sure you have an independent third party like an accountant, lawyer or financial advisor look over the opportunity.”
Robbins admitted that he made fraudulent representations in his communication with investors in the scheme. The false representations include telling them he had spent 11 years developing an algorithm for foreign currency trading which allowed him to average returns of 5 percent to 30 percent per month; representing to them that he worked for a bank in Germany around 2005 where he was on contract to help the bank develop algorithms for their traders to use; that he used more than 13 different brokerage firms in different countries to facilitate his foreign currency trading program; assuring them that his trading program was compliant with the laws of the Commodities Futures Trading Commission; and promising that people who invested with him would never lose more than 5 percent of the net equity in their trading account due to “stop loss” measures.
He made the false representations knowing he was not providing a legitimate investment; that he had lost nearly all of the investor money; and he was using a portion of the investor money on personal living expenses; and no significant investment returns were generated.
Robbins was charged with securities fraud and money laundering in a Felony Information filed earlier this month. Sentencing in the case is set for Nov. 30, 2020, at 2 p.m. before U.S. District Judge Dee Benson. The potential maximum sentence for securities fraud is 20 years in prison and a fine of $250,000. Money laundering carries a potential 10-year sentence and a fine of $250,000.
This is Robbins’ second federal conviction for a fraud scheme. He was sentenced to 60 months in federal prison in June 2011 and ordered to pay $2,462,207 in restitution to victim investors after pleading guilty to conspiracy in another investment fraud scheme.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office are prosecuting the case. Special agents of the FBI and IRS-Criminal Investigation are conducting the investigation.
Researchers Charged with Visa Fraud After Lying About Their Work for China’s People’s Liberation ArmyRead the Press Release
UPDATE
The government dismissed all charges alleged in the indictment described in the press release below.
Four individuals have recently been charged with visa fraud in connection with a scheme to lie about their status as members of the People’s Republic of China’s military forces, the People’s Liberation Army (PLA), while in the United States conducting research. Three of these individuals have been arrested and the Federal Bureau of Investigation (FBI) is seeking the fourth who is a fugitive from justice currently being harbored at the Chinese Consulate in San Francisco.
In addition to these arrests, the FBI has recently conducted additional interviews of visa holders suspected of having undeclared affiliation with the Chinese military in more than 25 American cities.
“These members of China’s People Liberation Army applied for research visas while hiding their true affiliation with the PLA,” said Assistant Attorney General for National Security John C. Demers. “This is another part of the Chinese Communist Party’s plan to take advantage of our open society and exploit academic institutions. We will continue to conduct this investigation together with the FBI.”
“The United States welcomes students, academics, and researchers from across the globe. Today’s announcement shows the extreme lengths to which the Chinese government has gone to infiltrate and exploit America’s benevolence," said John Brown, Executive Assistant Director of the FBI's National Security Branch. “In interviews with members of the Chinese People’s Liberation Army in over 25 cities across the U.S., the FBI uncovered a concerted effort to hide their true affiliation to take advantage of the United States and the American people.”
Each defendant has been charged with visa fraud, in violation of 18 U.S.C. § 1546(a). If convicted, each faces a maximum statutory penalty of 10 years in prison and a fine of $250,000. The allegations against each are as follows:
Xin WANG
According to a complaint that was unsealed in the Northern District of California, on June 8, 2020 and court documents filed June 11, Wang entered the United States on March 26, 2019, after receiving a J1 non-immigrant visa in December of 2018. Wang’s visa application stated that the purpose of his visit was to conduct scientific research at the University of California, San Francisco (UCSF). Wang is alleged to have made fraudulent statements on this visa application. Specifically, Wang stated that he had served as an Associate Professor in Medicine in the People’s Liberation Army (PLA), from September 1, 2002 through September 1, 2016.
In reality, when interviewed by officers of Customs and Border Protection (CBP) at LAX on June 7, Wang provided information that he was, in fact, still currently a “Level 9” technician in the PLA, employed by a military university lab. CBP officers also obtained information that this roughly corresponded with the rank of Major. According to court documents, Wang was still employed by the PLA while he was studying in the United States, and he made false statements about his military service in his visa application in order to increase the likelihood that he would receive his J1 visa.
Also according to court documents, Wang provided information to CBP that he had been instructed by his supervisor, the director of his military university lab in the PRC, to observe the layout of the UCSF lab and bring back information on how to replicate it in China. Wang similarly told his supervising UCSF professor that he had duplicated some of the work of that professor at the lab in China. Some of the work of the UCSF lab was funded by grants from the United States Department of Health and Human Services, National Institutes of Health (NIH).
Wang was arrested on June 7, and had his initial appearance on June 8. A grand jury in the Northern District of California returned an indictment on June 22.
Juan TANG
According to court documents unsealed in the Eastern District of California on July 20, Tang, a researcher at the University of California at Davis, applied for a non-immigrant J1 visa on or about Oct. 28, 2019. The visa was issued in November 2019, and Tang entered the United States on or about Dec. 27, 2019. Tang is alleged to have made fraudulent statements on her visa application. Specifically, to the question, “Have you ever served in the military,” Tang responded “No.”
In fact, Tang is a uniformed officer of the PLA Air Force (PLAAF). As set forth in the Complaint, the FBI found a photograph of Tang in a military uniform and references to Tang’s employment at the Air Force Military Medical University, which has also been known as the Fourth Military Medical University. The FBI interviewed Tang on June 20. Although Tang denied having been a member of the military, an additional photograph of Tang in a different PLA military uniform was found on electronic media seized pursuant to a search warrant.
The FBI is seeking to arrest Tang pursuant to an Arrest Warrant and Complaint that were filed on June 26, and unsealed on July 20. Tang has sought refuge at the Chinese consulate in San Francisco, where she remains.
Chen SONG
The allegations describing the crime appear in an affidavit supporting the complaint filed on July 17 and unsealed in the Northern District of California on July 20. According to the affidavit, Song, 38, a Chinese national, applied for a J1 nonimmigrant visa in November 2018. She entered the United States on Dec. 23, 2018. In her visa application, in response to the question, “Have you ever served in the military,” Song stated that she had served in the Chinese military only from Sept. 1, through June 30, 2011. She further stated that her employer was “Xi Diaoyutai Hospital.” Song described herself in her visa application as a neurologist who was coming to the U.S. to conduct research at Stanford University related to brain disease.
The affidavit alleges that these were lies, that Song was a member of the PLA when she entered and while she was in the United States, and that the hospital she listed on her visa as her employer was a cover for her true employer, the PLA. The affidavit identifies four research articles that she co-authored, which described her as affiliated with institutions subordinate to the PLA Air Force. Specifically, the articles list Song as affiliated with the Air Force General Hospital in Beijing and the Fourth Military Medical University. In addition, as of July 13, a Chinese health care website listed Song as an attending physician of the Department of Neurology of the PLA Air Force General Hospital, and included a photograph of Song wearing what appears to be a military uniform. Further, an article published in 2015 identifies Song as the doctor at the PLA Air Force hospital who performed the autopsy on the former chief physician of the MRI Department at the hospital.
Finally, according to the affidavit, a search of Song’s external hard drive, recovered pursuant to a court-authorized search warrant, found that, on June 21, Song had deleted a folder titled, in Chinese, “2018 Visiting School Important Information.” The search recovered deleted documents from this folder. The affidavit alleges that one of the recovered documents was a letter from Song to the Chinese Consulate in New York, explaining that she was extending her time in the United States for another year, and wrote that her stated employer, Beijing Xi Diaoyutai Hospital, is a false front, which is why she had obtained approval for her extension from the PLA Air Force and FMMU. The letter further allegedly explained that, as these Chinese military approval documents were classified, she could not transmit them online.
Song was arrested on July 18.
Kaikai ZHAO
According to a complaint filed in the Southern District of Indiana on July 17 and unsealed today, Zhao, a graduate student studying machine learning and artificial intelligence at Indiana University, applied for an F1 nonimmigrant visa in June 2018. In response to the question on the visa application, “Have you ever served in the military,” Zhao answered, “No.” As set forth in the Complaint, Zhao served in the National University of Defense Technology, the PLA’s premier institution for scientific research and education, which is directly subordinate to the PRC’s Central Military Commission. Zhao also attended the Aviation University of Air Force (AUAF), which is a Chinese military academy analogous to the U.S. Air Force Academy. AUAF students are active military service members who receive military training. In addition, the FBI located an online photograph of Zhao wearing a PLAAF uniform.
Zhao was arrested on July 18.
Remarks by United States Attorney William M. McSwain Regarding Election Fraud Charges Against Former U.S. Congressman and Philadelphia Political ConsultantRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain released a video on July 23, 2020, with his remarks concerning the criminal charges against former United States Congressman Michael “Ozzie” Myers. The video is available on the Office website here: https://www.justice.gov/usao-edpa/video/us-attorney-william-m-mcswain-announces-indictment-former-congressman-election-fraud. Below are U.S. Attorney McSwain’s remarks, as prepared for delivery.
*****
Good morning. I am here to announce that the U.S. Attorney’s Office has unsealed criminal charges against Michael “Ozzie” Myers, a political consultant and former United States Congressman in Philadelphia. Myers has been charged with eight counts: one count of conspiracy to deprive individuals of their civil rights; one count of conspiring to illegally vote in a federal election; two counts of violating the Travel Act, which forbids the use of any facility in interstate commerce (here, a cell phone) with the intent to promote certain illegal activity (here, bribery); two counts of falsification of records; one count of voting more than once in a federal election; and one count of obstruction of justice.
This prosecution has been a team effort, and before I get into a more detailed description of the allegations, there are several people that I want to recognize and thank. First, from the FBI, Mike Driscoll, who is the Special Agent in Charge of the FBI’s Philadelphia Field Office, as well as Special Agent Carmen DiMario, who is the lead investigator on the case. I want to thank the Public Integrity Section at the U.S. Department of Justice in Washington, and specifically Section Chief Corey Amundson, Deputy Chief John Keller, and the Director of the Election Crimes Branch of the Section, Richard Pilger. I also want to thank Assistant U.S. Attorney Richard Barrett, who is the Chief of our Public Corruption Unit at the U.S. Attorney’s Office, and Assistant U.S. Attorney Eric Gibson, who is the lead prosecutor on the case. And finally, I would like to thank the Pennsylvania State Police for their assistance in this investigation.
Our election system relies on the honesty and the integrity of those involved in the electoral process. If Election Officials are corrupt, the system is corrupt, which creates opportunities for election fraud and for the counting of fake votes. According to the Indictment, the election system in Philadelphia’s 39th Ward, 36th Division was corrupted by Ozzie Myers and his co-conspirators.
Myers held himself out as an effective and successful political operative capable of ensuring his clients' electoral success. Myers allegedly did so by working in a number of ways to exert influence and control over Philadelphia’s 39th Ward. According to the Indictment, Myers distributed cash payments and supported family, friends, and allies for elective office in the 39th Ward, and installed Ward Leaders, Judges of Elections, and Democratic State Committee Persons. Through the alleged scheme, Myers advanced his political and financial interests through fraudulent and corrupt means by engaging in a “ballot stuffing” scheme that enabled him to take credit for the electoral success of his Philadelphia-based clients and preferred candidates. This secured his standing in local party politics that enabled him to control and influence the 39th Ward, and influence the distribution of local patronage jobs.
I would like to take you to the 39th Ward, 36th Division to show you where the action happened. I have two photographs that I am going to share at this point to provide some context about the polling place involved. First, there is a picture of the outside of the polling place, which is adjacent to a bocce ball court. Here is that photo. Then, we go inside the polling place, with a picture of the actual machines on an election day.
As charged, Myers would solicit monetary payments from his clients in the form of cash or checks as “consulting fees.” Myers would then take portions of these funds and make payments to Election Board Officials in return for the officials tampering with the election results. Specifically, Myers gave directions and paid money to Dominick J. Demuro, Judge of Elections in Philadelphia’s 39th Ward, who would illegally add votes for certain Democratic candidates on the primary ballots in 2014, 2015, and 2016. These candidates were individuals running for judicial office whose campaigns had hired Myers, as well as other candidates for various federal, state, and local elective offices who were preferred by Myers for a variety of reasons.
After receiving payments from Myers ranging between $300 to $5,000 per election, Demuro would add fraudulent votes - also known as “ringing up” votes – for Myers’ clients and preferred candidates, thereby diluting the ballots cast by actual voters. Myers would relay instructions to Demuro over a cellphone regarding which candidates Demuro should “ring up” on Election Day. Demuro would add the fraudulent votes by literally standing in the voting booth and voting over and over, as fast as he could, when he thought the coast was clear.
Demuro would then falsely certify the Voting Machine results from the 39th Ward, 36th Division as valid. Myers is also charged with obstruction of justice for instructing Demuro about how best to avoid detection concerning these fraudulent votes. Myers allegedly paid Demuro at specific times to avoid campaign financial reporting requirements, and told Demuro to lie about the reason for those payments if he were ever asked.
These fraudulent votes added up. In May 2014, DeMuro stuffed the ballot box with 27 fraudulent ballots during the primary election. In May 2015, DeMuro padded the ballot box with 40 fraudulent votes; in 2016, it was 46 fraudulent votes. These numbers may sound relatively small, but they made up a significant percentage of the total votes cast at the polling place. In 2014, 118 total ballots were reported in the 36th Division of the 39th Ward. That means that the fraudulent votes accounted for over 22% of the total voting in that Division in 2014. In 2015, the fraud accounted for over 15% of the votes in the Division; in 2016, the fraud accounted for over 17% of the votes. And when it comes to these local elections, these numbers are not insignificant. Local elections can often be decided by hundreds, or at times, dozens of votes. These fraudulent votes had the potential to alter a local election’s final result.
But at the end of the day, the specific number of votes does not really matter. Voting is the cornerstone of our democracy. If only one vote has been illegally rung up or fraudulently stuffed into a ballot box, the integrity of that entire election is undermined. As President Lincoln once said, “Elections belong to the people.” The people. To each and every citizen, who has the right to cast one vote. Elections do not and will never belong to corrupt election officials who attempt to buy elections. Votes are not things to be purchased, and democracy is not for sale.
Demuro, who was charged earlier this year by my Office, has accepted responsibility for his crimes by pleading guilty to all charges and is currently awaiting sentencing. And this election fraud investigation is on-going. My Office is taking every possible step that we can to ensure the integrity of every election in the Eastern District of Pennsylvania in 2020. We will work day and night to make sure that every citizen’s civil rights are protected, whether that is through access to the polls or making every legitimate vote count. If you tamper with anyone’s right to vote or try to fix the results of any election in the Eastern District of Pennsylvania, my Office will hold you accountable. If you are a political consultant, Election Official, or work with the polling places in any way, I urge you to do your job honestly and faithfully. That is what the public deserves, it is what democracy demands, and it is what my Office will enforce. Thank you.
Project Safe Neighborhoods: Two Felons Appear in Federal Court for Gun Crimes in CharlestonRead the Press Release
CHARLESTON, W.Va. – Two men appeared in federal court this week for gun crimes committed in Charleston, according to United States Attorney Mike Stuart.
Christopher Reed, 29, of Ashland, Kentucky, was sentenced to 15 months in prison for being a felon in possession of a firearm. His prison term will be followed by three years of supervised release. Reed previously admitted that on February 3, 2019, he was operating a vehicle in Charleston when law enforcement officers stopped the vehicle for a traffic violation. A passenger in the vehicle was determined to have an outstanding arrest warrant from Detroit, Michigan for disarming a police officer. Officers searched the vehicle and discovered Reed had a loaded Jimenez Arms J.A. 25 pistol in the console of his vehicle. Reed admitted that he possessed the firearm and that he was a convicted felon. He had previously been convicted in 2013 in Detroit, Michigan for carrying a concealed weapon and in 2014 in Cabell County Circuit Court for conspiracy to possess with the intent to distribute a controlled substance. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Julie White and former Assistant United States Attorney Ryan Saunders handled the prosecution.
Jordan Kinney, 23, of Charleston, pled guilty to being a felon in possession of a firearm. Kinney admitted that on June 14, 2019, he was present at the Go-Mart on Washington Street West in Charleston, and possessed a loaded Taurus 9mm caliber handgun, which he used to shoot approximately six times at another individual. He then fled the location and discarded the handgun in the front yard of a residence a few blocks away. The following day officers with the Charleston Police Department responded to the residence and recovered the same handgun. Kinney was not allowed to possess the firearm because he had previously been convicted of robbery in the second degree. Kinney faces up to 10 years in prison when sentenced on October 19, 2020. The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Nowles H. Heinrich is handling the prosecution.
These cases are part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00108 (Reed) and Case No. 2:19-cr-00291 (Kinney).
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Project Guardian: Two Men Appear in Federal Court on Gun ChargesRead the Press Release
CHARLESTON, W.Va. – Two Project Guardian defendants appeared in federal court this week on gun charges, according to United States Attorney Mike Stuart.
Brashan Beverly, 32, of Dunbar, was sentenced to 37 months in prison for being a felon in possession of a firearm. Beverly previously admitted that on January 3, 2019, he possessed a SCCY, Model CPX-2, 9mm semi-automatic pistol in Tornado. At the time he possessed the firearm, he knew he was prohibited from possessing firearms because of a prior drug conviction. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kanawha County Sheriff’s Department and the Nitro Police Department conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams and former Assistant United States Attorney Ryan A. Saunders handled the prosecution.
Patrick Napier, 48, of Logan County, pled guilty to being a felon in possession of a firearm. Napier admitted that a United States Probation Officer who was conducting a home inspection found that he had a High Point .40 caliber rifle in his bedroom. At the time, Napier was still on supervised release as a result of his conviction for a federal drug crime. Napier faces up to 10 years in prison and three years of supervised release when he is sentenced on October 13, 2020. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Chris R. Arthur is handling the prosecution.
These cases are 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. The United States Attorney’s Office has prosecuted these cases with support from the Project Guardian partners noted above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00066 (Beverly) and Case No. 2:20-cr-00065 (Napier).
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President’s Commission on Law Enforcement and the Administration of Justice Concludes with Final Hearings on Respect for Law Enforcement and Rule of LawRead the Press Release
This week, the President’s Commission on Law Enforcement and the Administration of Justice held its final hearings, receiving testimony on respect for law enforcement and the rule of law. The hearings were conducted via teleconference and featured expert witnesses who provided testimony and answered questions from the commissioners.
On Tuesday, July 21, 2020, the commission heard from Michael Mukasey, the 81st U.S. Attorney General and a former U.S. District Court Judge, who provided an overview of the issues affecting respect for law enforcement and the rule of law. The first panel featured Rafael Mangual, Fellow & Deputy Director of Legal Policy for the Manhattan Institute; Gail Heriot, Professor of Law at the University of San Diego; and Jonathan Turley, J.B. & Maurice C. Shapiro Professor of Public Interest Law at the George Washington University Law School. The panelists spoke about various issues in law enforcement, such as race and technology, specifically biometrics. The hearing concluded with a panel featuring U.S. Attorneys William McSwain of the Eastern District of Pennsylvania; McGregor Scott of the Eastern District of California; and Nick Trutanich of the District of Nevada, where topics included experiences working in districts with progressive prosecutors.
On Wednesday, July 22, 2020, the commission heard first from Pinellas (Fla.) County Sheriff Robert Gualtieri, who offered an overview of the Marjory Stoneman Douglas High School public safety report. The following panel featured Kentucky Deputy Attorney General Barry Dunn; Arkansas Attorney General Leslie Rutledge; Stafford County (Va.) Commonwealth Attorney Eric Olsen; and Essex County (Mass.) District Attorney Jonathan Blodgett, who provided the commission with the state and local prosecutor’s perspective. Five members of law enforcement also provided testimony: Prince George’s County (Md.) Chief (retired) Hank Stawinski; Santa Barbara (Calif.) County Sheriff Bill Brown; National President of the Federal Law Enforcement Officers Association Lazaro “Larry” Cosme; Detroit Police Department Lieutenant Mark Young; and Houston Police Chief Art Acevedo. The hearing concluded with remarks from the 75th Attorney General of the United States Edwin Meese III, who shared his experiences working on the Lyndon B. Johnson’s historic law enforcement commission.
For more information on the commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice.
Audio recordings and transcripts of the hearings will be posted online once available.
Philadelphia man and two Berkeley County residents accused of firearms traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Philadelphia man and two Berkeley County residents were indicted this week on firearms charges, U.S. Attorney Bill Powell announced.
Marcellos Carey Edens, also known as “Camo,” Justin Arthur Davis, and Kristal Rayne Montieth are charged with one count of “Conspiracy” involving the illegal purchase and transfer of firearms from Berkeley County to Pennsylvania in December 2019. According to the indictment, Montieth, 24, of Martinsburg, West Virginia, purchased firearms, making false statements on the ATF form, at the request of Edens, 35, of Philadelphia, Pennsylvania. Davis, 37, of Martinsburg, West Virginia, is accused of transporting the firearms across state lines to Edens in Philadelphia.
Montieth is also facing two count of “False Statement During Purchase of Firearm.”
Edens, Montieth, and Davis each face up to five years of incarceration and a fine of up to $250,000 for the conspiracy. Montieth also faces up to 10 years of incarceration and a fine of up to $250,000 for each of the false statement counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The government is also seeking the forfeiture of several firearms and ammunition connected to this case.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms & Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacy Owners Sentenced to Prison for Conspiracy to Commit Health Care Fraud, Conspiracy to Commit Money Laundering and Tax Evasion in $200 Million Compounding Pharmacy SchemeRead the Press Release
Jackson, Miss. – Glenn Doyle Beach, 47, of Sumrall, Mississippi and Hope Thomley, 53, of Hattiesburg, Mississippi were sentenced today by U.S. District Judge Keith Starrett for conspiring to commit health care fraud and conspiring to commit money laundering and tax evasion. Judge Starrett also sentenced Howard “Randy” Thomley, 61, of Hattiesburg, Mississippi for conspiracy to commit health care fraud, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin, of the Federal Bureau of Investigation in Mississippi, Acting Special Agent in Charge Andrew M. Thornton of IRS Criminal Investigation (IRS-CI), Special Agent in Charge Cynthia Bruce of Defense Criminal Investigative Services (DCIS) Southeast Field Office, and Interim Director Steven Maxwell of the Mississippi Bureau of Narcotics (MBN).
Glenn Doyle Beach was sentenced to 156 months in federal prison followed by three years of supervised release; Hope Thomley was sentenced to 168 months in federal prison followed by three years of supervised release; and Randy Thomley was sentenced to 96 months in federal prison followed by three years of supervised release.
Beach was ordered to pay a monetary judgment of $9,109,872 along with restitution in the amount of $185,407,641.75. Hope Thomley was ordered to pay a monetary judgment of $29,249,018.51 along with restitution in the amount of $189,200,787.75. Randy Thomley was ordered to pay a monetary judgment of $3,651,173.19, along with the restitution in the amount of $3,651,173.19.
Beach and Thomley were both owners of Advantage Pharmacy in Hattiesburg, and Thomley also owned and operated a compound prescription distributor for Advantage Pharmacy. Beach and Hope Thomley were involved in a scheme to defraud health care benefit programs, including TRICARE, by dispensing, distributing, and marketing medications known as compounded medications, which ordinarily are medications that are specially combined or formulated to meet the individual needs of patients.
Through Advantage Pharmacy, Beach formulated and mass-produced compounded medications without regard to the individual needs of patients, but instead in order to increase reimbursements paid by the health care benefit programs. Hope Thomley had knowledge of Beach and other co-conspirators formulating the compounded prescriptions with the ultimate goal being to increase reimbursements. Hope Thomley benefited from that activity because her marketing company received nearly 50 percent of the reimbursements that Advantage Pharmacy obtained from compounded medications. Hope Thomley also obtained prescribers’ signatures on blank prescription forms and then filled out the forms in the names of her children and TRICARE beneficiaries that she and her husband, Randy Thomley, had recruited. From April 2012 through January 2016, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy and other pharmacies involved in the scheme at least $200 million.
Beach and Hope Thomley were also sentenced for their role in a money laundering and tax evasion scheme that was used to conceal the fraudulent proceeds of the compounded medications scheme and evade taxes.
Randy Thomley owned and operated a company called Advantage Marketing Professionals, which marketed medications for Advantage Pharmacy. For each prescription submitted to Advantage Pharmacy for compounded medications, he received a percentage of revenue. He recruited TRICARE beneficiaries and paid them a percentage of the revenue for each prescription in order to induce the beneficiaries to accept millions of dollars of compounded medications. Randy Thomley also filled out pre-signed prescriptions for the TRICARE beneficiaries, knowing that prescribers had not examined the beneficiaries.
The FBI, IRS-CI, DCIS and MBN investigated the case with assistance from U.S. Postal Service Office of Inspector General (OIG) and Office of Personnel Management OIG. Trial Attorneys Dustin M. Davis, Sara E. Porter, and Katherine E. Payerle of the Criminal Division’s Fraud Section, Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant United States Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi prosecuted the case.
Omro Man Sentenced to Federal Prison for Possessing Two Firearms as Convicted Felon, Including a Loaded Handgun Obtained in Trade for MethamphetamineRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 22, 2020, U.S. District Judge William C. Griesbach sentenced Colin H. Coffin (age: 26) to five years’ imprisonment and three years’ supervised release after Coffin pled guilty to two counts of Possessing a Firearm as a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1).
On September 8, 2019, Oshkosh Police Officers found Coffin passed out in his vehicle, which was parked illegally on a city street. Investigation revealed that Coffin was in possession of drug paraphernalia related to his methamphetamine use, and a 12-gauge shotgun with an obliterated serial number. Coffin had been previously convicted of multiple felonies and served time in state prison.
Then, on November 9, 2019—while on bail from the shotgun incident—Grand Chute Police Officers arrested Coffin for lying about his identity during a traffic stop. A search revealed that Coffin was carrying a loaded 9-mm handgun in his waistband. He admitted trading methamphetamine for the handgun, saying that he needed it for protection.
Possessing a firearm as a convicted felon is a felony punishable by up to ten years’ imprisonment, a $250,000 fine, and three years’ supervised release.
This case was investigated by the Oshkosh Police Department, Grand Chute Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For further information contact: Public Information Officer Kenneth Gales,
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Omaha Woman Sentenced to 74 Months in Prison for Distributing MethRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on Thursday, July 16, 2020, United States District Court Chief Judge John A. Jarvey sentenced Kimberly Ann Jacobsen, age 54, of Omaha, to 74 months in prison for distribution of methamphetamine. Jacobsen was ordered to serve a period of supervised release of four years to follow her prison term and pay a $100 special assessment to the Crime Victims' Fund. There is no parole in the federal system.
In October of 2019, Jacobsen sold 97 grams of methamphetamine in two undercover law enforcement operations. Jacobsen pleaded guilty to the offense on March 6, 2020. This is Jacobsen's second federal felony methamphetamine conviction.
This matter was investigated by the Council Bluffs Police Department, the Southwest Iowa Narcotics Task Force, and the Drug Enforcement Administration. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
Nigerian Citizen Sentenced to Federal Prison for Stealing over $260,000 from Dozens of Victims, Including the ElderlyRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Damilola Bamidele Isaac Samuel, 22, a Nigerian citizen, has been sentenced for using fraudulent ATM bank cards to steal $260,726.09 from over two dozen Regions Bank customers, including elderly victims.
On July 20, 2020, Chief U.S. District Judge S. Maurice Hicks Jr. ordered Samuel to serve 33 months in federal prison. Judge Hicks also sentenced Samuel, who pled guilty to conspiracy to commit bank fraud on December 10, 2019, to pay $276,790.39 in restitution. Following his release from prison, Damilola Samuel will be subject to deportation proceedings.
According to court documents, Samuel conspired with others to steal $260,726.09 from Regions Bank customers using fraudulently obtained ATM debit cards. Samuel carried out an account takeover scheme whereby he fraudulently set up accounts in legitimate bank customer’s names then transferred money from the customer’s legitimate account into those fraudulently created accounts. On multiple occasions, Samuel was captured on surveillance cameras utilizing ATM cards associated with the fraudulent checking accounts.
The U.S. Department of Homeland Security, U.S. Postal Inspection Service, and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors, including this case in the Western District of Louisiana.
The National Elder Fraud Hotline provides services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
For more information about DOJ’s efforts to prevent and combat elder abuse, please visit the Elder Justice Website at https://www.justice.gov/elderjustice. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.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.
Menominee Man Indicted for Aggravated Assault on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on July 21, 2020, a federal grand jury returned a one-count indictment against a man allegedly involved in an assault that resulted in injury to a tribal police officer. The indictment named Martin W. Penass a/k/a “Ap Hawpetoss” (age: 38) of Neopit, which is on the Menominee Indian Reservation.
The indictment charged Penass with Assault with a Dangerous Weapon in violation of 18 U.S.C. § 113(a)(3). If convicted, Penass faces a maximum of ten years in prison, up to a $250,000 fine, and up to three years of supervised release.
According to the indictment, on or about June 26, 2020, officers with the Menominee Tribal Police Department were investigating an incident involving Penass when Penass assaulted one of the officers with a knife, causing the officer to suffer cuts on his arm.
The Menominee Tribal Police Department investigated the case, which Assistant United States Attorney Andrew J. Maier will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For further information contact:
Public Information Officer Kenneth Gales, (414) 297-1700
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Man Who Sold Party Drugs He Bought on the Dark Web Sentenced to Federal PrisonRead the Press Release
A man who bought drugs on the dark web and sold them in eastern and central Iowa was sentenced July 21, 2020, to more than six years in federal prison.
Jack Arthur Stumberg, age 22, from Grundy Center, Iowa, received the prison term after a December 27, 2019 guilty plea to conspiring and possessing with intent to distribute LSD, MDMA, and psilocybin mushrooms.
Evidence at the sentencing showed that, between about 2016 and 2019, Stumberg ordered large quantities of the party drugs over the “dark web.” The drug packages were delivered to Stumberg through the mail, disguised to look like common household items. Stumberg then sold the drugs in various communities in Iowa. He also took the drugs to sell at various music festivals. The sentencing judge found that Stumberg recruited and directed the activities of an accomplice into the drug conspiracy.
Stumberg was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Stumberg was sentenced to 78 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Stumberg is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the United States Postal Service and Grundy County Sheriff’s Office and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00090-CJW-MAR.
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Man Sentenced for Theft of Military PropertyRead the Press Release
RALEIGH, N.C. – A Louisiana man was sentenced today to 25 months in prison and ordered to pay $250,000 in restitution to the United States Army for theft of property belonging to the United States military, and for aggravated identity theft.
According to court documents, Bryan Allen, 35, used his position as property book officer for the 4th Battalion, 3rd Special Forces Group at Ft. Bragg, North Carolina, to steal items, and then cover the thefts by decreasing the electronic inventory, which reduced the number of those items expected to be located in a physical inventory. On at least one occasion, Allen forged the signature of another soldier to cover his theft. The stolen property included 43 enhanced night vision goggles, a U.S. military sensitive item made to military specifications, which require “demilitarization” and disposal/destruction in accordance with Department of Defense policies.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. Defense Criminal Investigative Service, U.S. Army Criminal Investigative Division, and the Department of Homeland Security, Investigations investigated the case.
A copy of this press release is located on our website. 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. 5:19-CR-305-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.
Menomonee Falls, Wi, Doctor Sentenced for Illegal Opioid PrescribingRead the Press Release
United States Attorney Matthew D. Krueger announced today that Steven Kotsonis (38), a medical doctor of Menomonee Falls, Wisconsin, was sentenced in federal district court to 12 months and 1 day of confinement for unlawfully distributing Oxycodone outside of a professional medical practice and not for a legitimate medical purpose. The conviction resulted from Kotsonis executing a drug-trafficking conspiracy and pill mill operation, motivated by greed.
Over the course of approximately eight months, Kotsonis orchestrated and engaged in a conspiracy to illegally distribute narcotics by issuing illegitimate prescriptions, primarily for Oxycodone and other opioids, in exchange for cash. Kotsonis was the co-owner and operator of Compassionate Care Clinic (“CCC”). Kotsonis’s partner was his office manager and one of his patients. Even though Kotsonis’s partner was not a licensed health care provider and had no medical training, Kotsonis instructed her to write out the prescriptions and have Kotsonis sign them without Kotsonis actually seeing the patients. The investigation revealed that prescriptions were written for large quantities of Oxycodone, particularly Oxycodone 30mg (an average of 150-180 tablets per month). Individuals frequently obtained prescriptions at CCC without being examined or having their vitals (height, weight, blood pressure) taken during their visit. At least two CCC patients overdosed on Oxycodone and died.
“The opioid crisis continues to rage, with hundreds of overdoses occurring in Wisconsin this year,” said United States Attorney Krueger. “For many, the road to opioid addiction began with prescription drugs like the ones that Kotsonis dealt. To enrich himself, Kotsonis exploited individuals’ addictions and dealt drugs for cash. As indicated by the United States’ recommended sentence of four years in federal prison, Kotsonis deserves significant punishment. The Justice Department remains committed to holding accountable anyone who abuses their prescribing privileges.”
“Today’s sentencing demonstrates the value of local and federal law enforcement working alongside prosecutors to hold rogue practitioners accountable for their actions. Every day the men and women of DEA work to improve public health and safety and bring to justice those responsible for the illicit trade and diversion of DEA controlled substances,” remarked Drug Enforcement Administration Assistant Special Agent in Charge Paul E. Maxwell, Jr.
This case was prosecuted by Assistant United States Attorneys Matthew Jacobs and Laura S. Kwaterski.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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For further information contact:
Public Information Officer Kenneth Gales, (414) 297-1700
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Lincoln County Felon Sentenced to 30 Months for Possessing Firearms & AmmunitionRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that today Daniel E. Boldt, 46, Town of Corning, Wisconsin, pleaded guilty and was sentenced by U.S. District Judge William M. Conley to 30 months in federal prison for unlawfully possessing five firearms and ammunition, as a convicted felon.
On August 24, 2019, a citizen assisted a female who was walking on a county highway. She told the citizen that her boyfriend, Boldt, beat her up. The citizen drove the female to the hospital, where investigators interviewed her. Among other things, she said that Boldt was a felon and that he had guns.
Based on her account, law enforcement decided to arrest Boldt. Later that day, law enforcement stopped Boldt while he was driving. During the traffic stop Boldt raised a shotgun and did not comply with officers’ commands to drop it. As a result, a sheriff’s deputy shot Boldt in the shoulder. In addition to the shotgun, a 9mm handgun was also found in the vehicle.
Law enforcement subsequently executed a search warrant at Boldt’s residence and recovered a .32 caliber pistol, a .22 caliber rifle, a .22 caliber pistol and .22 caliber ammunition.
Boldt's prior felony convictions are a 1992 second degree sexual assault of a child under 16; a 1992 burglary of a building/dwelling; and a 1993 second degree sexual assault of a child under 16.
The charge against Boldt was the result of an investigation conducted by the Lincoln County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Lexington Woman Sentenced to 300 Months for Production of Child PornographyRead the Press Release
LEXINGTON, KY- A Lexington, Kentucky, woman, Paige Cagle, 26, was sentenced in federal court on Thursday to 300 months in prison, by U.S. District Judge Karen Caldwell, after previously admitting using a minor to engage in explicit conduct for the purpose of producing child pornography.
According to Cagle’s plea agreement, on March 1, 2019, officers were informed from a third party that he had received pornographic images from Cagle involving children. Cagle admitted to officers that on 4 to 5 occasions, she had sexually abused a minor child from the age of 9 months to approximately 1.5 years old. Cagle further admitted that she made two videos of the sexual abuse while in Joplin, Missouri, and three videos of the sexual abuse while in Clark County, Kentucky. Cagle admitted to sharing the videos she made with others via Dropbox. Cagle further admitted that she possessed additional images of child pornography, specifically images of female children ages 4 to 13 years of age, in her Dropbox account and admitted that she would give out her Dropbox password, so that others could upload images into her account.
Cagle pleaded guilty in January 2020.
“The defendant’s production of child pornography was particularly heinous, and the sentence imposed was well justified by the facts of this case,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky.
Under federal law, Cagle must serve 85 percent of her prison sentence and upon release from prison will be under the supervision of the U.S. Probation Office for life.
United States Attorney Duncan; Jerry Templet, Special Agent in Charge for Homeland Security Investigations; and Commissioner Rodney Brewer, Kentucky State Police, jointly announced the guilty plea.
The investigation was directed by Homeland Security Investigations and KSP. The United States was represented by Assistant U.S. Attorney Lauren Tanner Bradley.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Lexington Businessman Sentenced to 12 Months for Obstructing JusticeRead the Press Release
FRANKFORT, Ky. - A Versailles, Kentucky, man, Timothy Wayne Wellman, 66, was sentenced in federal court on Thursday, to 12 months and one day in federal prison, by U.S. District Judge Greg Van Tatenhove, after previously being convicted of 11 counts involving obstructing justice, aiding and abetting the obstruction of a federal grand jury, and aiding and abetting individuals in making false statements to the FBI.
According to testimony at trial, Wellman requested that multiple employees of CRM Companies (CRM) donate money to the campaigns of two city council members and then reimbursed them for their donation. He later asked the employees to give false information to the FBI, who was conducting an investigation into public corruption allegations, by encouraging the employees to lie about reasons for the reimbursement checks and, in some instances, asking them to create false documents (including ledgers and tax forms) to support their false stories.
Wellman was convicted in February 2020 after a five-day jury trial.
“A jury convicted the defendant of obstructing justice by counseling others to lie and create false documents, and hiding the truth from federal investigators and a federal grand jury,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Obstructing federal law enforcement and grand jury investigations undermines the foundation of our criminal justice system. We will continue to prioritize the investigation and prosecution of these important cases.”
Under federal law, Wellman must serve 85 percent of his prison sentence and upon his release will be under the supervision of the U.S. Probation Office for three years. In addition to his prison sentence, Wellman must also pay fine of $10,000.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Special Agent in Charge for the FBI, Louisville Field Office, jointly made the announcement.
The investigation was directed by the FBI. The United States was represented by Assistant U.S. Attorneys Erin Roth and Ken Taylor.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Leaders of Houston stash house ring head to prisonRead the Press Release
HOUSTON – Three men have been ordered to federal prison following their convictions for transporting and harboring illegal aliens in locked and boarded-up trailers in Houston, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) – Houston.
Albino Vargas-Hernandez, 49, a Mexican citizen who resided in Houston, and Rene Camacho, 47, Houston, pleaded guilty Dec. 12, 2019, to conspiracy to transport and harbor illegal aliens. A third man – Mexican national Hiram Lamarca-Gonzalez, 22, who also resided in Houston - entered his guilty plea Dec. 4, 2019.
Today, U.S. District Judge Alfred H. Bennett handed Camacho a 36-month sentence to be immediately followed by two years of supervised release. Vargas-Hernandez and Lamarca were previously sentenced to 42 and 36 months, respectively. At the hearings, the court heard evidence as to the extensive nature of the smuggling venture which included multiple drivers to smuggle aliens, money transmitters and smuggling ledgers documenting over $1.4 million in smuggling proceeds. While imposing the sentences, Judge Bennett noted this was a serious large-scale smuggling operation. Not U.S. citizens, Vargas and Lamarca are expected to face removal proceedings following their incarceration.
At Camacho’s sentencing, the court also received evidence about a residence in North Houston purchased using $130,000 in proceeds from the conspiracy. Judge Bennett ordered the residence forfeited to the United States. Previous forfeitures include $224,774.86 in cash and cashier’s checks.
“These three individuals operated a vast human smuggling network that preyed on the desperation of foreign nationals hoping to get into the United States,” said Dawson. “In just the last year, they are responsible for smuggling more than 1,000 people into the country. With today’s sentencing, we have sent a resounding message that HSI is committed to aggressively target human smugglers and smuggling organizations who seek to undermine our nation’s immigration laws and victimize people for profit.”.
The investigation revealed that from approximately July 9, 2018, through on or about Aug. 22, 2018, multiple suspected aliens had arrived and departed trailers in Houston, which were locked and had boards on the windows. On several occasions, Vargas left his residence, picked up illegal aliens from the stash house and delivered them to others.
Law enforcement obtained search warrants on the Vargas residence as well as the stash houses. During that time, authorities found Vargas and Camacho inside one of the trailers along with 12 undocumented aliens. The aliens identified Vargas and Camacho as leaders of the smuggling organization, in charge of documenting alien information in ledgers and collecting payments for the those smuggled into the country. They also recovered multiple firearms, “pollo” lists (alien smuggling ledgers keeping track of alien and payment information), money service wire receipts and approximately $224,000 in cash.
Authorities also arrested Lamarca for guarding the aliens at the stash house.
Vargas and Lamarca have been and will remain in custody. Camacho was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney (AUSA) Richard Bennett prosecuted the case. AUSA Stephanie Bauman handled the forfeiture matters.
Keshena Man Indicted after Prohibited Possession of Firearms, Pointing Firearm at Tribal Police OfficerRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on July 21, 2020, a federal grand jury returned a three-count indictment against a man allegedly involved in firearms offenses during an incident at a residence on the Menominee Indian Reservation. The indictment charged Lowell V. Reed (age: 44) of Keshena as follows:
COUNT
CHARGE
PENALTY
One
Felon in Possession of a Firearm, 18 USC §§ 922(g)(1) and 924(a)(2)
Up to 10 years in prison.
Two
Assault with a Dangerous Weapon, 18 USC §§ 113(a)(3) and 1153(a)
Up to 10 years in prison
Three
Brandishing a Firearm During a Crime of Violence, 18 USC § 924(c)
Mandatory minimum 7 consecutive years in prison, up to life in prison.
If convicted, Reed faces the imposition of fines and a term of supervised release in addition to the imprisonment listed above.
According to the indictment, on or about June 26, 2020, Reed possessed two firearms at a residence on the Menominee Indian Reservation, despite knowing he was prohibited from doing so. During an incident that day, he allegedly pointed a shotgun at a tribal police officer.
This case is being prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
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://go.usa.gov/xpBrs
The Menominee Tribal Police Department investigated the case, which Assistant United States Attorney Andrew J. Maier will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Public Information Officer Kenneth Gales, (414) 297-1700
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Justice Department Settles Immigration-Related Discrimination Claims Against Law Firm and Legal Staffing AgencyRead the Press Release
The Department of Justice announced today that it reached a settlement with Arnold & Porter Kaye Scholer LLP (Arnold & Porter), a national law firm, and Law Resources Inc. (Law Resources), a Washington, D.C.-based legal staffing company, resolving claims that the companies engaged in hiring discrimination based on citizenship status.
The settlement resolves claims that Law Resources, at Arnold & Porter’s direction, screened out U.S. citizens with dual citizenship and non-U.S. citizens with work authorization from a document review project because of their citizenship status, in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA). The settlement also resolves claims that Law Resources retaliated against an affected worker when she objected to the citizenship status restriction.
“The United States of America is the land of opportunity, and the United States government remains committed fully to the fundamental principle that in this country, all people authorized by law to work should be able to pursue happiness by earning a living without suffering the indignity of discrimination because of where they came from. Our law protects this ideal in many ways, including by prohibiting unlawful citizenship status restrictions in hiring,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We look forward to working with Law Resources and Arnold & Porter to ensure their hiring procedures fully comply with the Immigration and Nationality Act’s prohibition against citizenship status discrimination in employment.”
The department began its investigation after a U.S. citizen with dual citizenship filed a discrimination complaint against Law Resources, which led the department to open an independent investigation of Arnold & Porter.
Under the INA’s anti-discrimination provision, it is generally unlawful for employers to discriminate in hiring because of citizenship status unless required by a law or government contract. The department determined that neither Arnold & Porter nor Law Resources had a legal basis for the citizenship hiring restrictions. The INA’s anti-discrimination provision also prohibits employers from retaliating against workers because they opposed unlawful employer conduct or conduct that they reasonably believed was unlawful discrimination.
The investigations concluded that Arnold & Porter and Law Resources implemented a policy of excluding dual citizens and work-authorized non-U.S. citizens when recruiting and hiring temporary employees to staff an Arnold & Porter document review project in the fall of 2018. In its investigation, the department found that Arnold & Porter improperly interpreted the requirements of the International Traffic in Arms Regulations. The investigations also concluded that after the complainant objected to the citizenship status restriction, Law Resources separately retaliated against her by placing her on a list of people not to be hired in the future.
Under the terms of the settlement agreement, Arnold & Porter and Law Resources will pay a civil penalty of $56,500 for the citizenship status discrimination claims. Law Resources will separately pay an additional civil penalty of $3,000 and offer $11,875 in back pay to the affected worker to resolve the retaliation claim. The companies will jointly offer a $55,000 back-pay fund to other affected workers, train relevant employees about the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring for two years.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. Members of the public can also report possible civil rights violations through the Civil Rights Division’s reporting portal.
Justice Department Reaches Settlement with Bank of America to Resolve Claims of Disability Discrimination and Compensate VictimsRead the Press Release
The Department of Justice and the U.S. Attorney’s Office for the Eastern District of New York today filed a civil complaint and proposed settlement agreement to resolve claims that Bank of America, N.A. (Bank) engaged in a pattern or practice of discrimination on the basis of disability, in violation of the Fair Housing Act. The settlement agreement is subject to approval by the federal district court.
The department alleges in its complaint that for several years beginning in January 2010, the Bank maintained a policy of denying mortgage and home equity loans to adults with disabilities who were under legal guardianships or conservatorships. The Bank changed this policy in 2016 for mortgage loans and in 2017 for home equity loans.
“No one in this free country should be denied access to the American dream merely because of a disability. The unalienable right to pursue happiness extends to all people, including those with disabilities, and purchasing a home is one way many people exercise this right,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act prohibits banks from denying mortgage loans and other housing-related credit to people because of their disabilities, and this department will hold accountable those lenders who engage in such illegal conduct. Today’s settlement provides compensation to victims of unlawful discrimination and requires Bank of America to apply non-discriminatory policies in deciding which applicants will receive loans.”
“This settlement ensures that Bank of America will no longer discriminate against people with disabilities when issuing mortgage and home equity loans, and compensates the victims for their losses,” said Seth D. DuCharme, Acting U.S. Attorney for the Eastern District of New York. “Our Office is committed to standing up for the rights of individuals with disabilities and taking action when necessary to vindicate those rights.”
The Bank has ended its practice of denying mortgage and home equity loans to adults with disabilities under guardianships or conservatorships. The terms of the settlement require the Bank to pay $4,000 per loan to eligible loan applicants who were affected by the Bank’s prior discriminatory policies, and we anticipate that the payments will total approximately $300,000. The settlement also requires the Bank to maintain the new, non-discriminatory loan underwriting policies and train its employees on the new policies. In addition, the Bank must monitor its loan processing and underwriting activities to ensure compliance with the Fair Housing Act.
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Lending discrimination can be reported to the Civil Rights Division at https://civilrights.justice.gov.
Justice Department Alleges Excessive Force in Alabama’s Prisons for Men Violates the ConstitutionRead the Press Release
WASHINGTON – The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama today concluded that there is reasonable cause to believe that the conditions at Alabama’s prisons for men violate the Eighth Amendment of the Constitution. Specifically, the department concluded that there is reasonable cause to believe that prisoners are subjected to excessive force at the hands of prison staff.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the facility with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees prisoners the right not to be subjected to excessive force and to be housed in reasonably safe conditions,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to believe that there is a pattern or practice of using excessive force against prisoners in Alabama’s prisons for men. The Justice Department hopes to work with Alabama to resolve the department’s concerns.”
“I am proud of the work being done to protect the constitutional rights of Alabama prisoners” said Acting U.S. Attorney for the Northern District of Alabama Lloyd Peeples. “Systemic constitutional violations such as these cannot be ignored and require a comprehensive approach to addressing these problems. We continue to be committed to ensuring that the state implements meaningful reform to meet its constitutional obligations.”
“The results of the investigation into excessive force issues within Alabama’s prisons is distressing and continues to require real and immediate attention,” said U.S. Attorney for the Middle District of Alabama Louis Franklin. “We are hopeful that our continued work with State officials can ensure that the Department of Corrections abides by its constitutional obligations.”
“While we recognized the challenges of correcting systemic constitutional deficiencies in Alabama prisons that have existed for decades, now is the time for significant reform. The three U.S. Attorneys in Alabama are committed to a just resolution of this matter,” said U.S. Attorney for the Southern District of Alabama Richard Moore.
In April 2019, the department notified Alabama that the Alabama Department of Corrections fails to (1) protect prisoners from physical harm and sexual abuse at the hands of other prisoners; and (2) maintain facilities that are sanitary, safe, or secure. The department is in negotiations with the State of Alabama in an attempt to reach agreement on the remedies for the constitutional deficiencies identified in the April 2019 Notice Letter.
The Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama initiated the investigation in October 2016 under CRIPA, which authorizes the department to take action when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
The department will be following up to work with the state in an effort to find mutually agreeable settlement terms to address the issues outlined in the report, which can be found here: Use of Force CRIPA Notice Letter (2020) and Cover Letter to Use of Force CRIPA Notice (2020).
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the Department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Alleges Excessive Force in Alabama’s Prisons for Men Violates the ConstitutionRead the Press Release
WASHINGTON – The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama today concluded that there is reasonable cause to believe that the conditions at Alabama’s prisons for men violate the Eighth Amendment of the Constitution. Specifically, the department concluded that there is reasonable cause to believe that prisoners are subjected to excessive force at the hands of prison staff.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the facility with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees prisoners the right not to be subjected to excessive force and to be housed in reasonably safe conditions,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to believe that there is a pattern or practice of using excessive force against prisoners in Alabama’s prisons for men. The Justice Department hopes to work with Alabama to resolve the department’s concerns.”
“I am proud of the work being done to protect the constitutional rights of Alabama prisoners” said Acting U.S. Attorney for the Northern District of Alabama Lloyd Peeples. “Systemic constitutional violations such as these cannot be ignored and require a comprehensive approach to addressing these problems. We continue to be committed to ensuring that the state implements meaningful reform to meet its constitutional obligations.”
“The results of the investigation into excessive force issues within Alabama’s prisons is distressing and continues to require real and immediate attention,” said U.S. Attorney for the Middle District of Alabama Louis Franklin. “We are hopeful that our continued work with State officials can ensure that the Department of Corrections abides by its constitutional obligations.”
“While we recognized the challenges of correcting systemic constitutional deficiencies in Alabama prisons that have existed for decades, now is the time for significant reform. The three U.S. Attorneys in Alabama are committed to a just resolution of this matter,” said U.S. Attorney for the Southern District of Alabama Richard Moore.
In April 2019, the department notified Alabama that the Alabama Department of Corrections fails to (1) protect prisoners from physical harm and sexual abuse at the hands of other prisoners; and (2) maintain facilities that are sanitary, safe, or secure. The department is in negotiations with the State of Alabama in an attempt to reach agreement on the remedies for the constitutional deficiencies identified in the April 2019 Notice Letter.
The Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama initiated the investigation in October 2016 under CRIPA, which authorizes the department to take action when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
The department will be following up to work with the state in an effort to find mutually agreeable settlement terms to address the issues outlined in the report, which can be found here: Use of Force CRIPA Notice Letter (2020) and Cover Letter to Use of Force CRIPA Notice (2020).
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the Department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Alleges Excessive Force in Alabama’s Prisons for Men Violates the ConstitutionRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama today concluded that there is reasonable cause to believe that the conditions at Alabama’s prisons for men violate the Eighth Amendment of the Constitution. Specifically, the department concluded that there is reasonable cause to believe that prisoners are subjected to excessive force at the hands of prison staff.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the facility with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees prisoners the right not to be subjected to excessive force and to be housed in reasonably safe conditions,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to believe that there is a pattern or practice of using excessive force against prisoners in Alabama’s prisons for men. The Justice Department hopes to work with Alabama to resolve the department’s concerns.”
“I am proud of the work being done to protect the constitutional rights of Alabama prisoners” said Acting U.S. Attorney for the Northern District of Alabama Lloyd Peeples. “Systemic constitutional violations such as these cannot be ignored and require a comprehensive approach to addressing these problems. We continue to be committed to ensuring that the state implements meaningful reform to meet its constitutional obligations.”
“The results of the investigation into excessive force issues within Alabama’s prisons is distressing and continues to require real and immediate attention,” said U.S. Attorney for the Middle District of Alabama Louis Franklin. “We are hopeful that our continued work with State officials can ensure that the Department of Corrections abides by its constitutional obligations.”
“While we recognized the challenges of correcting systemic constitutional deficiencies in Alabama prisons that have existed for decades, now is the time for significant reform. The three U.S. Attorneys in Alabama are committed to a just resolution of this matter,” said U.S. Attorney for the Southern District of Alabama Richard Moore.In April 2019, the department notified Alabama that the Alabama Department of Corrections fails to (1) protect prisoners from physical harm and sexual abuse at the hands of other prisoners; and (2) maintain facilities that are sanitary, safe, or secure. The department is in negotiations with the State of Alabama in an attempt to reach agreement on the remedies for the constitutional deficiencies identified in the April 2019 Notice Letter.
The Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama initiated the investigation in October 2016 under CRIPA, which authorizes the department to take action when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
The department will be following up to work with the state in an effort to find mutually agreeable settlement terms to address the issues outlined in the report, which can be found here: Use of Force CRIPA Notice Letter (2020) and Cover Letter to Use of Force CRIPA Notice (2020).
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the Department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Jacksonville Man Indicted for Production of Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Richard Earl Jenkins, Jr. (43, Jacksonville) with three counts of production of child pornography. If convicted, Jenkins faces a minimum mandatory term of 15 years, and up to 30 years, in federal prison for each count.
According to the indictment, between October 2015 and March 2019, Jenkins produced child pornography.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office and Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Ashley Washington.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Internal Revenue Service Wrapped up the 'Dirty Dozen' List of Tax Scams for 2020; IRS Criminal Investigation and U.S. Attorney's Office Urge Taxpayers to Watch Out for These Tax ScamsRead the Press Release
The Internal Revenue Service wrapped up its annual ‘Dirty Dozen’ list of tax scams with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments. The Internal Revenue Service Criminal Investigation division and the U.S. Attorney’s Office for the Eastern District of Missouri urge taxpayers to be vigilant to these tax scams.
This year, the Dirty Dozen focuses on scams that target taxpayers. The criminals behind these bogus schemes view everyone as potentially easy prey.
“Fraud schemes harm everyone, especially those which defraud the IRS and members of our community,” said Adam Steiner, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “As we stand ready to investigate anyone who would put a taxpayer at risk for a quick profit, we urge everyone to watch out for these tax scams all the time.”
Tax scams tend to rise during tax season or during times of crisis. “This years’ list of tax scams should serve as a stark reminder to everyone to be vigilant to these threats during the current pandemic and its aftermath,” said U.S. Attorney Jeff Jensen for the Eastern District of Missouri. “Please safeguard your personal and financial information, and refrain from engaging potential scammers online or on the phone.”
Taxpayers are encouraged to review the ‘Dirty Dozen’ list in a special section on IRS.gov and be on the lookout for these scams throughout the year.
For official information year round, taxpayers can visit IRS.gov
Indianapolis check scam leader sentenced to 134 monthsRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Frank Powell a/k/a “Bread”, 29, Indianapolis, Ind., was sentenced to 134 months in federal prison for orchestrating a large-scale fraud ring, bank fraud, and aggravated identity theft.
“Mr. Powell’s career of lies, deceit and fraud are over,” said Minkler. “Nothing says that louder than the sound of a federal prison door slamming shut on a 12 year sentence. This prosecution should remind those out there who defraud local businesses and banks – particularly those with lengthy criminal histories of theft, fraud, and deception – that they will face real consequences.”
From 2017 through April 2018, Powell and others presented and used fraudulent checks at Indianapolis Kroger stores and in at least 12 other states, to purchase gift cards and merchandise. Powell recruited and trained over 20 “runners” to cash checks at Kroger stores nationwide, including co-conspirators Javonte Wright, Anthony Duerson, and Antionne Brewster.
Powell printed the fraudulent checks and distributed them to the “runners”, and received a cut of the profits. The scope of this retail scheme was far-reaching, touching on at least 12 states with more than 5,000 fraudulent checks, resulting in losses exceeding $300,000.
In addition to the retail scheme, Powell attempted to defraud a local bank and car dealership when he tried to obtain financing to purchase a Cadillac Escalade using the identity of another person. Without the knowledge or authorization of the victim, Powell used a fraudulent Illinois driver’s license along with the name, address and social security number of the victim during the loan application process, which was ultimately stopped by the dealership.
Co-conspirators Wright and Duerson were previously sentenced to 30 months and 24 months respectively. Co-conspirator Brewster has not yet been sentenced.
This case was investigated by the Federal Bureau of Investigation, Fishers Police Department, Hamilton County Prosecutor’s Office, Carmel Police Department, Johnson County Sheriff’s Department, Indianapolis Metropolitan Police Department, U.S. Postal Inspection Service, and Kroger’s Organized Retail Crime Investigators, Central Division.
"This sentence should send a clear message to anyone contemplating financial fraud, or any criminal activity, that the FBI will aggressively investigate those committing illegal acts and bring those activities to a grinding halt,” said Special Agent in Charge Paul Keenan, FBI Indianapolis. “It also highlights the strong relationships we have with our law enforcement partners in pursuit of those who take advantage of others through their illegal and criminal behavior.”
Kroger praised its lead investigator for his “tenacious efforts” to help stop this group. Spokesman Eric Halvorson said, “Kroger is pleased with the outcome of the case and appreciates the hard work of law enforcement officers and prosecutors. Their diligence in combatting fraud and theft is an important strategy to help keep prices low for our customers.”
According to Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case for the government, Powell must also serve five years of supervised release following his sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution sentencing demonstrates the office’s firm commitment to partner with federal and local law enforcement agencies to prosecute complex and large-scale fraud schemes that undermine faith in the markets, as well as to prosecute sophisticated identity fraud organizations. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 4.5 and 5.1)
Hattiesburg Man Pleads Guilty under Project EJECT to Trafficking MethamphetamineRead the Press Release
Hattiesburg, Miss. – Amos Blanks, 40, of Hattiesburg, pled guilty today before Senior U.S. District Judge Keith Starrett to possessing methamphetamine with the intent to distribute, announced U.S. Attorney Mike Hurst, Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (“DEA”), and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On February 11, 2019, Blanks distributed approximately 224 grams of methamphetamine to another drug dealer, who then sold the drugs to an individual. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be 98% pure.
Blanks was indicted for this offense on January 15, 2020. He will be sentenced by Judge Starrett on November 18, 2020 at 9:30 a.m.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Harrah Man Indicted for Two Murders That Occurred Within the External Boundaries of the Yakama NationRead the Press Release
Spokane, Washington – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that a Federal grand jury returned an Indictment on July 21, 2020, charging Edward Charles Robinson, Jr. with two counts of first degree murder, and one count of assault with a dangerous weapon. FBI agents arrested Robinson today and the United States will seek his detention pending a trial.
According to allegations in the Indictment, Robinson stabbed two people to death, and attacked a third person with a knife. The crimes occurred within the external boundaries of the Yakama Nation. As to each count of first degree murder, if convicted, Robinson faces a mandatory minimum sentence of life imprisonment, a fine of up to $250,000, a special assessment of $100.00, and restitution obligations. As to the assault with a dangerous weapon, if convicted, Robinson faces a maximum penalty of up to ten years imprisonment, a fine of up to $250,000, and no more than three years supervised release, a special penalty assessment of $100.00, and restitution obligations.
United States Attorney William D. Hyslop said, “Violent crime occurring within the external boundaries of the Yakama Nation is exceedingly concerning. The tragic and horrific death of the two residents here is intolerable. We will prosecute Mr. Robinson for his alleged responsibility and we will seek justice for the victims’ families and their loved ones.”
FBI Assistant Special Agent in Charge Mark Nichols said, “The details of this case can only be described as senseless and disturbing. While the prosecution of this individual will not bring back the victims, it will hopefully provide some level of comfort for the families and the community as a whole.”
The charges contained in the Indictment are merely allegations. Robinson is presumed innocent, as is any defendant in a criminal case, until proven guilty beyond a reasonable doubt in a court of law.
The charges contained in the Indictment are the result of an investigation by the Federal Bureau of Investigation, the Yakama Nation Police Department, the Yakima County Sheriff’s Office, Yakima County Emergency Management, and the Washington State Patrol. The case is being prosecuted by Richard Barker and Tom Hanlon, Assistant United States Attorneys for the Eastern District of Washington.
Harlan Man Sentenced to Prison for Drug User in Possession of a Firearm ChargeRead the Press Release
COUNCIL BLUFFS, Iowa – United States Attorney Marc Krickbaum announced on Tuesday, July 14, 2020, United States District Court Judge Rebecca Goodgame Ebinger sentenced Blake Edward Cooper, age 51, of Harlan, to 60 months in prison after he pleaded guilty to drug user in possession of a firearm. Cooper was ordered to serve a period of supervised release of three years to follow his prison term and pay a $100 special assessment to the Crime Victims’ Fund. There is no parole in the federal system.
On July 29, 2019, the Shelby County Sheriff’s Office was advised that Cooper made threats to kill law enforcement officers and innocent civilians. Specifically, Cooper sent a text message to a person he knew, which read:
There gonna come for me: I bet this week. Collateral damage is key to whether or not people get informed as to how rigged the whole family law system is. It’s sad to say, but I need as much collateral damage as possible. If a cop gets shot -in the leg while serving a warrant, that’s local news. If 6 cops get killed, 4 wounded and several innocent civilians get killed or severely wounded, then it becomes national news. And that’s the only way anything is ever gonna get stuff changed. And now that my whole plan had to be revealed to you, you will be an accessory.
Cooper also sent the same person a photo of a box along with the following message: “Package came today; 50lbs of -ammonia nitrate. Google that.” In addition, Cooper sent an order confirmation email showing that he purchased 50 pounds of ammonium nitrate on July 25, 2019. Law enforcement executed a search warrant at Cooper’s residence on July 30, 2019. They found 21 firearms, ammunition, 50 pounds of ammonium nitrate, and materials that could be used to make an explosive device. They also found methamphetamine and drug paraphernalia. Cooper admitted to being a regular user of methamphetamine.
This investigation was conducted by the Iowa State Fire Marshal, Shelby County Sheriff’s Office, and the Bureau for Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.German Citizen Charged with Orchestrating Mail Fraud Scheme Defrauding Elderly and Vulnerable Victims of over $10 MillionRead the Press Release
NEWARK, N.J.– A federal grand jury today indicted a German man with orchestrating a massive mail fraud scheme targeting elderly and otherwise vulnerable victims with false and fraudulent psychic solicitations, U.S. Attorney Craig Carpenito announced.
Georg Ingenbleek, 54, a citizen of Germany, is charged with two counts of mail fraud, four counts of money laundering, and one count of obstruction of justice. Ingenbleek was associated with and used a company, Regency Direct Marketing AG, located in Switzerland, for his mass mailing campaigns.
According to the Indictment:
From at least 2011 through 2016, Ingenbleek created numerous direct mail solicitations supposedly from world-renowned psychics, falsely and fraudulently claiming that the recipients were being contacted because they had been the subject of specific visions by the psychics, including visions that the recipients were going to receive large sums of money and good fortune. Many of the letters falsely promised that the psychic services or objects being offered were free of charge. In fact, the letters were mass-produced using software and information provided by Ingenbleek to a direct mail marketing services company, Company-1, located in Piscataway, New Jersey, that Ingenbleek retained to print and mail the solicitations.
Ingenbleek directed a second company, Company-2, to send fraudulent billing notices to the same victims which stated that the victims owed money for psychic services, which in many cases had been offered free of charge. The fraudulent billing notices were labeled “collection notices” and “invoices,” falsely representing that the victims owed late payment fees, and falsely stating that a psychic or astrology organization would refer the victim to a “collection agency” and take legal action if the recipient did not send a check, usually for $20 to $50. Through his fraudulent psychic mailing campaign, Ingenbleek obtained more than $10 million dollars from the victims.
In September 2016, Ingenbleek directed representatives of Company-1 and Company-2 to destroy all materials related to his fraudulent psychic mailings in response to federal criminal investigations into his conduct and the conduct of other participants in the scheme. In one email, dated Sept. 23, 2016, Ingenbleek told a representative of Company-2, “You cannot wait! I advise you urgently to get rid of the material! Use your own car, rent a truck, start today, work all weekend.”
The mail fraud and obstruction counts each carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The money laundering counts each carry a maximum potential penalty of 20 years in prison and a $500,000 fine, or twice the value of the money instrument or funds involved in the transportation, transmission, or transfer of funds.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and special agents of HSI New York, under the direction of Special Agent in Charge Peter C. Fitzhugh, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit and Special Assistant U.S. Attorney Benjamin Teich.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.