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26 June 2020
Assistant Chief of Cumberland Police Indicted for Civil Rights ViolationRead the Press Release
LONDON, Ky. - A federal grand jury has indicted, Kenny Ray Raleigh, 42, of Partridge, Ky., on one count of unreasonable force by a police officer acting under color of law and one count of obstruction of justice.
Count One of the indictment alleges that while acting as an Assistant Chief of Police for the Cumberland Police Department, Raleigh willfully deprived an arrestee of the right to be free from unreasonable seizures, which includes the right to be free from the use of unreasonable force by a police officer. Specifically, the indictment alleges that Raleigh assaulted the arrestee, striking him several times, resulting in bodily injury.
Count Two of the indictment alleges that Raleigh attempted to persuade a fellow police officer, with the intent to hinder, delay, and prevent the communication of information, from providing information to a federal law enforcement officer and judge regarding the offense. Specifically, the indictment alleges that Raleigh directed a fellow officer to charge the arrestee with resisting arrest in a citation, in an attempt to prevent communication of information about the unjustified use of force against the arrestee.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation (FBI).
Raleigh’s next appearance before the United States District Court in London will be a jury trial scheduled for August 25, 2020. As charged in the indictment, Count One carries a maximum penalty of 10 years in prison and Count Two carries a maximum penalty of 20 years.
Any indictment is an accusation only. A defendant is presumed innocent, and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Arlington Doctor Charged with Drug Distribution Conspiracy, FraudRead the Press Release
A federal grand jury has indicted three Arlington healthcare professionals for drug crimes and fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Clinton Battle, an Arlington physician, and Donna Green, his nurse practitioner, have been charged with conspiracy to distribute controlled substances. Dr. Battle and his medical assistant, Yajaira Lopez, have also been charged with conspiracy to commit mail fraud. His current practice, “Arlington Occupational & Medical Clinic,” is located on East Abram Street in Arlington.
According to the indictment, Dr. Battle, 67, routinely issued prescriptions for controlled substances – including hydrocodone, codeine, tramadol, Xanax, phentermine, and other controlled substances – allegedly without conducting a proper medical examination of his patients, knowing that the drugs would likely be diverted for illicit distribution. At times, Dr. Battle allegedly issued prescriptions for controlled substances without conducting any medical examination at all, sometimes telling office staff to issue prescriptions for whichever controlled substance the patient wanted.
In return for these phony prescriptions, Dr. Battle allegedly received multiple forms of remuneration – including illicit drugs.
Dr. Battle also allegedly allowed Ms. Green to use his DEA registration number and medical credentials to issue prescriptions for controlled substances, knowing that Ms. Green was not legally authorized to issue such prescriptions.
Meanwhile, Dr. Battle and Ms. Lopez allegedly worked together to submit falsified claims to health insurers, including the Texas Workers’ Compensation system. For example, they allegedly “up-coded” claims for medical procedures, billing for higher reimbursement levels than were authorized based on the medical service provided.
An indictment is merely an allegation of criminal conduct, not evidence. Defendants are presumed innocent until proven guilty in a court of law.
If convicted, Dr. Battle faces up to 15 years in federal prison. Ms. Green and Ms. Lopez face up to 10 and 5 years, respectively.
The Drug Enforcement Administration’s Dallas Field Division, the U.S. Department of Labor, the U.S. Postal Service, the IRS, and the Texas Department of Insurance conducted the investigation. Assistant U.S. Attorney Matthew Weybrecht is prosecuting the case.
Amarillo-Area Child Predator Sentenced to LifeRead the Press Release
A former sheriff’s deputy who preyed on children at his church has been sentenced to life in federal prison, announced U.S. Attorney Erin Nealy Cox.
Davin Seth Waters, 26, a former deputy with Parmer County, Texas Sheriff’s Office, was convicted in November 2019 for transportation of minors with intent to engage in criminal sexual activity.
“This life sentence confirms the important message that exploiting children in any form will not be tolerated,” said U.S. Attorney Nealy Cox. “While this sentence will not repair the pain and damage done to the victims, it will ensure that Mr. Waters will never have the opportunity to prey upon children of our community again.”
"Today's life sentence demonstrates the FBI's commitment to holding sexual predators accountable for their crimes and removes a dangerous threat from our community," said FBI Dallas Special Agent in Charge Matthew J. DeSarno. "We will continue working with our partners to ensure that children are protected from abuse and exploitation."
During a two hour sentencing on Thursday, the court heard how Mr. Waters lured minor victims into engaging in sex acts by leveraging positions of power and trust as a sheriff’s deputy, childcare volunteer, and Tae Kwon Do instructor. Many of Mr. Waters’ victims that he sexually abused were “afraid” of him because he was “big” and thought he might “hurt” them, according to court documents.
Authorities began investigating Mr. Waters following a report from a church member at Frist Baptist Church Texico, New Mexico that a fellow member, identified as Mr. Waters, had sexually abused a child. Mr. Waters who served in the children’s ministry as a volunteer, admitted to unlawfully touching a minor 8-year-old child on multiple occasions while in his capacity as a volunteer at the church.
Mr. Waters resided in Farwell, Texas and owned Tae Kwon Do (TKD) Studio in Bovina, Texas where he instructed many young students. Mr. Waters admitted that he engaged in illicit sexual conduct at his studio with a 13-year-old minor and a TKD student between the ages of 9 and 10-years-old.
According to court documents, Mr. Waters also drove two minors from New Mexico to the Farwell, Texas to spend the night. At his home, Mr. Waters preformed sexual acts on the 11-year-old and 10-year-old while also after giving the 10-year-old pills to induce unconsciousness.
Through the course of the investigation, agents determined that Mr. Waters sexually exploited and abused seven children in the greater Amarillo-area.
The FBI's Dallas Field Office, the Texas Rangers, and Curry County, New Mexico Sheriff’s Office conducted the investigation. Assistant United States Attorney Sean Taylor prosecuted the case. United States District Judge Matthew J. Kacsmaryk handed down the sentence.
This case was brought as part of Project Safe Childhood, a Justice Department initiative designed to combat the growing epidemic of child sexual exploitation and abuse nationwide. The initiative organizes 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.
Acting U.S. Attorney Announces Extradition of Belgian Man Charged in $8 Million Aircraft Part Fraud SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that STEFAN GILLIER, a/k/a “Stephan Gillier,” a/k/a “Stefan R.R. Gillier,” a/k/a “Roland Gillier,” a/k/a “Roland Van Gorp,” a Belgian citizen, was extradited today from Italy to the United States. GILLIER was arrested on May 26, 2019, for engaging in a scheme in which he and a co-conspirator fraudulently obtained millions of dollars’ worth of aircraft parts through two aircraft part dealerships that they operated, RTF International, Inc. (“RTF”), and UN Air Service, Inc. (“UAS”). GILLIER is expected be presented this afternoon in Manhattan federal court before Chief U.S. Magistrate Judge Gabriel W. Gorenstein. GILLIER’s case is assigned to U.S. District Judge Richard M. Berman.
Acting U.S. Attorney Audrey Strauss said: “As alleged, from 2004 until 2010, Stefan Gillier conspired to defraud manufacturers and distributors of aircraft parts out of millions of dollars’ worth of aircraft parts. Gillier and his co-conspirator allegedly effectuated the scheme through fraudulent companies, phony references, stop orders on checks after they had received valuable parts, lucrative resales, and transferring criminal proceeds from corporate bank accounts to personal bank accounts once a victim company got wise to the fraud. Thanks to our partner agencies here and abroad, Gillier now faces justice in an American court.”
According to the allegations in the Complaint and in the Indictment unsealed today:[1]
GILLIER and his co-conspirator (“CC-1”) were co-presidents of RTF, a Delaware corporation that was registered to do business in New York, which dealt in aircraft parts.[2] GILLIER ran the day-to-day business activities of RTF and was a signatory on RTF’s bank accounts. RTF began obtaining aircraft parts from Honeywell International, Inc. (“Honeywell”), in June 2004. Starting in 2005, RTF began increasing the number of parts it ordered from Honeywell, paying for them by check. RTF paid with checks written for amounts well above the cost of the parts, which created an apparent credit balance in RTF’s favor. RTF wrote approximately $16.6 million worth of checks to Honeywell, but stopped payment on approximately $15.8 million worth of them. As a result, RTF was able to obtain approximately $8 million worth of aircraft parts without paying for them, and RTF turned a profit when reselling those fraudulently obtained parts to customers for less than the price that Honeywell had charged RTF.
To execute the scheme, GILLIER signed checks to Honeywell on behalf of RTF, but repeatedly caused stop payment orders to be placed after Honeywell shipped the parts to RTF. When questioned by Honeywell’s employees about these stop payment orders, GILLIER, using an alias, falsely represented that the stop payment orders were the result of a misunderstanding with the bank and that he would check with RTF’s finance department. In fact, as GILLIER knew, he had issued the stop payment orders, and RTF did not have a finance department. In June 2006, when Honeywell began seeking civil relief against RTF, GILLIER caused various large transfers of fraud proceeds into other bank accounts – accounts that, by way of example, belonged either to GILLIER, his relative, or CC-1’s relatives.
After Honeywell discovered that it was being victimized by RTF, GILLIER and CC-1 continued their fraud scheme through a new corporate entity, UAS. (Despite its name, “UN Air Service, Inc.” had no relation to the United Nations.) CC-1 was the president and owner of UAS, a Delaware corporation that dealt in aircraft parts, which CC-1 ran out of an apartment in Manhattan. GILLIER helped CC-1 obtain the Manhattan apartment that was used to continue the fraud scheme by providing a reference for CC-1 (using an alias) and by paying CC-1’s initial rental fees. In 2006, UAS began obtaining aircraft parts from Pratt & Whitney Component Solutions, Inc. (“Pratt & Whitney”). Like RTF, UAS began stopping payment on checks it had written to Pratt & Whitney for the aircraft parts; like RTF, UAS sold those aircraft parts to third parties for less than the price that Pratt & Whitney had charged UAS.
GILLIER, 47, a citizen of Belgium, is charged with eight counts: (1) one count of conspiracy to commit mail fraud, wire fraud, interstate transportation of stolen property, and money laundering, which carries a maximum potential penalty of five years in prison; (2) one count of mail fraud, which carries a maximum potential penalty of 20 years in prison; (3) one count of wire fraud, which carries a maximum potential penalty of 20 years in prison; (4) one count of interstate transportation of stolen property, which carries a maximum potential penalty of 10 years in prison; and (5) and four counts of money laundering, each of which carries a maximum potential penalty of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of Homeland Security Investigations and the U.S. Department of Defense, Defense Criminal Investigative Service. She also thanked the Federal Bureau of Investigation, the U.S. Marshals Service, the U.S. Department of Commerce, law enforcement and prosecutorial authorities in Italy, including the Italian Ministry of Justice and Interpol Rome, Honeywell, and Pratt & Whitney for their assistance in this case. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Italy.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment, and the descriptions of them set forth below, constitute only allegations, and every fact described should be treated as an allegation. The defendant is presumed innocent unless and until proven guilty.
[2] CC-1 died in March 2010, a few weeks after being arrested in this case and released on bail.
24 Defendants Charged in Joint Federal and State Investigation of Two Violent Street Gangs on the West Side of ChicagoRead the Press Release
CHICAGO — Twenty-four individuals are facing federal charges following an investigation targeting two street gangs responsible for firearms offenses, narcotics trafficking, and violence on the West Side of Chicago.
During the investigation, dubbed “Operation Full Circle,” federal, state, and local law enforcement officers worked together to seize 34 firearms, more than 6.7 kilograms of heroin, more than 17 kilograms of cocaine, more than a kilogram of fentanyl, approximately 50 grams of crack cocaine, 200 pounds of marijuana, and more than $1.3 million in cash and jewelry allegedly purchased with narcotics trafficking proceeds. Much of the alleged firearms offenses, drug trafficking, and violence occurred in the Austin neighborhood on the West Side of Chicago.
The investigation was jointly conducted by the Organized Crime Drug Enforcement Task Force (OCDETF) and the Chicago High Intensity Drug Trafficking Task Force (HIDTA). The task forces are comprised of federal, state and local law enforcement agencies who work together to identify, disrupt and dismantle the most serious drug trafficking organizations.
“Operation Wicked Stones,” part of “Operation Full Circle,” focused on activities by alleged high-ranking members of both the Wicked Town faction of the Traveling Vice Lords and the Black P-Stone Nation street gangs. The indictments and a criminal complaint unsealed in U.S. District Court in Chicago allege federal firearms, narcotics, and money laundering offenses. The investigation also resulted in previously filed federal charges against three defendants for their alleged role in a murder-for-hire conspiracy. Many of the federal defendants were arrested Thursday, and detention hearings will be held next week in federal court in Chicago.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration; Kathy A. Enstrom, Special Agent in Charge of the Internal Revenue Service Criminal Investigation; Nicholas Roti, Executive Director of Chicago HIDTA; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office and the Cook County Sheriff’s Office. The government is represented by Assistant U.S. Attorneys John D. Mitchell and Grayson S. Walker and Special Assistant U.S. Attorney Maureen B. McCurry.
Seven federal defendants are charged in United States v. Harris, et al (20 CR 308). The complaint describes a drug trafficking organization in which the defendants worked together to distribute wholesale quantities of heroin and cocaine on the West Side of Chicago, and two of the seven defendants are also charged with firearms offenses. The defendants are: JAMES HARRIS, 51, of Berkley, PATRICK TURNER, 52, of Bellwood, GREGORY HOPKINS, 50, of Chicago, LARNELL PILLOW, 51, of Chicago, RICKEY GRIFFIN, 51, of South Holland, ERIC BERGER, 53, of Chicago, and REGINALD RICHMOND, 29, of Sunrise Terrace. According to the Complaint, in April 2020, HARRIS, wearing his Chicago Transit Authority work uniform, met with TURNER to acquire 322 grams of heroin. Federal and state law enforcement officers seized the heroin from HARRIS outside of TURNER’s residence, the complaint alleges. The complaint also alleges that during April 2020, law enforcement officers seized a firearm from GRIFFIN, who could not lawfully possess a firearm because of prior felony convictions.
As part of the investigation, three federal defendants were previously charged in United States v. Morgan et al. (19 CR 641). In that case, DESHAWN MORGAN, 37, of Chicago, DARIUS MURPHY, 20, of Chicago, and DEMOND BROWN, 26, of Chicago were charged by indictment for their alleged role in a murder-for-hire conspiracy in 2018 that resulted in the murder of an individual. All three defendants are in federal custody awaiting trial.
DONALD LEE, 47, of Chicago, is charged in three indictments unsealed in the U.S. District Court in Chicago. LEE and two other individuals—JAMAR SPENCER, 34, of Chicago, and TERRENCE JENKINS, 52, of Chicago—are charged with firearms offenses in United States v. Lee, et al. (20 CR 311). LEE and CREAVON CURRY, 25, of Chicago, are charged with firearms offenses in United States v. Lee, et al. (20 CR 310). LEE is also charged with firearms and narcotics offenses in United States v. Lee (20 CR 312).
Two other federal defendants and SPENCER are charged by indictment in United States v. Jones, et al. (20 CR 309). That indictment charges LARRY JONES, 39, of Broadview, MARSHA FOUNTAIN, 48, of Plainfield, and SPENCER with conspiracy to distribute heroin.
ENRIQUE FUENTES-ORTIZ, 45, of Chicago, is charged with firearms and narcotics offenses in United States v. Fuentes-Ortiz (20 CR 288).
As part of the investigation, three other federal defendants are charged in separate indictments with firearms offenses: DESHON GEORGE, 26, of Chicago (20 CR 289); DANTE DOCKETT, 42, of Chicago (18 CR 710); and DERRIUS BURNS, 27, of Chicago (19 CR 758).
DANIEL CERPA, 41, of Elmhurst, and WILFREDO GOMEZ, 48, of Chicago are charged in a fentanyl and heroin trafficking conspiracy in United States v. Cerpa, et al. (20 CR 295).
MARSHAW RANSON, 40, of Chicago, is charged with fentanyl trafficking, as well as money laundering offenses in United States v. Ranson (20 CR 309).
JESSE OCHOA, 38, of Chicago, is charged with narcotics offenses in United States v. Ochoa (20 CR 297).
The firearms, narcotics, and money laundering charges in the indictments and complaint carry maximum penalties of between 10 years and life imprisonment. The murder-for-hire charges carry a mandatory sentence of life in prison, while a sentence of death is also possible. Only the Attorney General of the United States has the authority to seek the death penalty. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Holding drug dealers and illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategies. Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district.
25 June 2020
“Compound King” and Wife Sentenced in $21 Million Health Care Fraud Scheme; Fugitive SoughtRead the Press Release
A Houston pharmacist and his wife were sentenced today for their roles in an approximately $21.8 million Department of Labor (DOL) - Office of Workers Compensation Programs and Federal Employees Compensation Act fraud scheme.
George Philip Tompkins, 75, of Houston, Texas, the self-proclaimed “Compound King” and former owner of Piney Point Pharmacy, was sentenced to 10 years in prison. Marene Kathryn Tompkins, 68, also of Houston, the former vice president of Piney Point Pharmacy, was sentenced to 30 days of home confinement and three years of supervised release. Both were sentenced by U.S. District Judge Sim Lake of the Southern District of Texas, who presided over the trial of George Thompkins and the guilty plea of Marene Tompkins. Judge Lake also ordered George Tompkins to pay $12,300,381.36 in restitution (and forfeiture) and Marene Tompkins to pay $950,745.10 in restitution (and forfeiture).
On March 10, 2020, after a six-day trial, George Tompkins was convicted by a jury of conspiracy to pay and receive kickbacks, conspiracy to commit health care fraud, conspiracy to commit money laundering, 11 counts of health care fraud, and three counts of wire fraud. Kathryn Tompkins pleaded guilty on Jan. 3, 2020, to one count of conspiracy to pay kickbacks.
According to the evidence at trial, George Tompkins and others billed the DOL approximately $21.8 million for medically unnecessary compound gels and creams that were predicated on illegal kickback payments. George Tompkins and Anoop Chaturvedi, 48, a legal permanent resident from India who remains a fugitive on related charges, created the scheme to generate compounded pain cream prescriptions and bill health care programs for injured state and federal employees. George Tompkins and Chaturvedi used separate entities—including George Tompkins’s company, Wellington Advisors—to receive and launder the proceeds of their crimes. Further evidence presented at trial showed that George Tompkins sought to disguise illicit kickback payments as legitimate “marketing” expenses and continued to ship patients compound gels and creams even after patients repeatedly complained they did not want them.
Marene Tompkins pleaded guilty before trial. As part of her guilty plea, she admitted that she conspired with her husband and others to pay illegal kickbacks as part of the scheme.
George and Marene Tompkins were charged in a superseding indictment in November 2018 along with Chaturvedi. Chaturvedi is considered a fugitive and a warrant remains outstanding for his arrest in connection with the charges. Anyone with information about his whereabouts is asked to contact the U.S. Postal Service - Office of Inspector General (USPS-OIG) at 1-888-877-7644.
A federal criminal indictment is merely an accusation. Chaturvedi is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
USPS-OIG, DOL-OIG, IRS-Criminal Investigation, U.S. Department of Homeland Security-OIG, and Department of Veterans Affairs-OIG, conducted the investigation. Assistant U.S. Attorney Julie Redlinger charged the case and, with Trial Attorneys Leslie Garthwaite and Devon Helfmeyer of the Criminal Division’s Fraud Section, provided substantial assistance in its prosecution. Trial Attorneys Drew Pennebaker and Sara Clingan of the Fraud Section tried the case and continue to prosecute it.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Yacht Owner Is Sentenced to 35 Years for Secretly Recording Nude Videos of MinorsRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that William Richard Hilliard, Jr., 51, a former resident of Cleveland County and Cherryville, N.C., currently residing in Gastonia, was sentenced to 35 years in prison for secretly recording nude videos of underage females aboard his yacht. In addition to the prison term imposed, Chief U.S. District Judge Martin Reidinger also ordered Hilliard to serve a lifetime of supervised release and to register as a sex offender upon his release from prison. Hilliard was also ordered to pay $88,476 as restitution to five victims and a $5,000 special assessment fee.
According to information contained in filed court documents and statements made in court, Hilliard was arrested on June 11, 2018, by Myrtle Beach, South Carolina law enforcement officers on charges of video voyeurism. Hilliard was the owner of a yacht called “Yachts O’ Trouble,” and he had been discovered secretly recording nude videos of unsuspecting females aboard his yacht, including minor and adult guests. Court records show that as a result of the events surrounding his arrest, the FBI coordinated an extensive multi-state and multi-agency investigation.
As Hilliard admitted in court documents, law enforcement discovered that, over the course of eight to ten years, Hilliard had secretly produced multiple secret recordings of at least 16 child victims at various locations in North Carolina, South Carolina, and Alabama, including aboard his yacht, in his homes, in various hotel rooms, and elsewhere. Court records also show that, at times, Hilliard produced secret recordings of victims he had hired as babysitters for his young children, and used multiple hidden devices to record his victims from different angles while they were using the shower and changing clothes. Some of the victims were as young as five years old. According to court records, also Hilliard engaged in sexual acts with one of the minor victims, which he secretly recorded.
On April 22, 2019, Hilliard pleaded guilty to sexual exploitation of a minor and possession of child pornography. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Murray thanked the FBI’s Charlotte Division, the Myrtle Beach Police Department, the Horry County Police Department, and the Cleveland County Sheriff’s Office for their investigation of this case with assistance from FBI Knoxville, FBI Birmingham, Homeland Security Investigations, the Cherryville Police Department and the Gastonia Police Department. The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Woman Indicted After Flying from Hawaii and Attempting to Smuggle Heroin into High Desert State PrisonRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against a Honolulu woman, charging her with conspiracy to distribute heroin, and two counts of possessing heroin with intent to distribute heroin, U.S. Attorney McGregor W. Scott announced.
According to court documents, between Oct. 24, 2019, and Nov. 16, 2019, Arlene‑Alena Keko Olani, 29, conspired with an inmate at High Desert State Prison to fly from Honolulu to Sacramento, rent a car, obtain heroin, and then try to surreptitiously pass the drugs to the inmate during a contact visit at the prison.
Investigators learned of the plot by listening to recorded prison calls and decoding the calls between Keko Olani and the inmate. When Keko Olani flew from Honolulu and landed in Sacramento on Nov. 15, investigators spotted her in the airport and identified the silver Toyota Camry she rented to carry out the smuggling operation. On Nov. 16, 2019, Keko Olani arrived at High Desert State Prison in Susanville. Investigators seized heroin she had hidden on her person. They also discovered additional heroin in her rental car parked in the prison parking lot.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation (CDCR), Lassen County Sheriff’s Office, Susanville Police Department, Lassen County District Attorney’s Office, and Sacramento County Sheriff’s Office. Assistant U.S. Attorney Jason Hitt is prosecuting the case.
Keko Olani made her initial appearance on March 11, and was ordered released on bond.
If convicted, Keko Olani faces 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Wilson County Man Sentenced to 15 years for Firearms OffensesRead the Press Release
RALEIGH, N.C. – A Wilson County man was sentenced today to 180 months in prison and 5 years of supervised release for firearms offenses related to drug dealing.
According to court documents, Kendrick Taiwan Taylor, 43, was initially charged with six counts: Counts One-Three charged distribution of crack, Count Four charged possession with intent to distribute crack, cocaine, and marijuana, Count Five charges felon in possession of a firearm, and Count Six charged possession of a firearm in furtherance of a drug trafficking crime. Taylor pled guilty to Counts Five and Six on January 8, 2020.
In January, 2019, the Wilson County Sherriff’s Office initiated a drug investigation into Taylor after learning he was selling crack from his residence in Elm City, NC. Investigators conducted several controlled purchases of crack from Taylor and, as a result, obtained a search warrant for Taylor’s home that was executed on March 20, 2019.
During the search of Taylor’s residence officers located over 1,200 grams of marijuana, more than 7 grams of cocaine, more than 9 grams of crack, over $16,000, 5 loaded rifles (two of which were assault-style rifles with high capacity magazines), 3 loaded handguns (one with an obliterated serial number), as well as drug paraphernalia; digital scales; and assorted ammunition.
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. ATF and Wilson County Sheriff’s Office investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
Related court documents and information are located 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-00155-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
Wetzel County woman sentenced for methamphetamine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Amber L. Brown, of New Martinsville, West Virginia, was sentenced today to 108 months incarceration for drug distribution in the northern panhandle of West Virginia, U.S. Attorney Bill Powell announced.
Brown, age 33, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances” in September 2019. Brown admitted to distributing methamphetamine in Wetzel County and elsewhere from July 2018 to June 2019.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Washington Man Sentenced for Role in Developing “Mirai” Successor BotnetsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Washington man has been sentenced to federal prison for his role in a long-running scheme in which he and his criminal associates developed distributed denial-of-service (DDoS) botnets. The defendant used the botnets to facilitate DDoS attacks, which occur when multiple computers acting in unison flood targeted computers with information to prevent them from being able to access the internet.
Kenneth Currin Schuchman, 22, of Vancouver, WA, was sentenced today by Chief U.S. District Judge Timothy M. Burgess to serve 13 months in prison, after previously pleading guilty to one count of fraud and related activity in connection with computers, in violation of the Computer Fraud & Abuse Act. As part of his sentence, Schuchman was also ordered to serve a term of 18 months of community confinement following his release from prison and a three year term of supervised release.
According to court documents, the botnets were initially based largely on the source code previously developed by other individuals to create the Mirai botnet; however, Schuchman and his criminal associates “Vamp” and “Drake” added additional features over time, so that the botnets grew more complex and effective. At various times, these successor botnets were known as “Satori,” “Okiru,” “Masuta,” and “Tsunami”/”Fbot.” While Schuchman and his criminal associates utilized these successor botnets to conduct DDoS attacks themselves, their primary focus was selling access to paying customers in order to generate illicit proceeds.
The investigation revealed that Schuchman had been engaging in criminal botnet activity since at least August 2017, ultimately compromising hundreds of thousands of devices worldwide, including devices in the District of Alaska. Schuchman continued to engage in criminal botnet activity, and violated several other conditions of his pretrial release, following his arrest in August 2018. The three defendants responsible for creating the Mirai botnet, the computer attack platform that inspired the successor botnets, were previously sentenced in September 2018.
“Cybercriminals depend on anonymity, but remain visible in the eyes of justice,” said U.S. Attorney Schroder. “Today’s sentencing should serve as a reminder that together with our law enforcement and private sector partners, we have the ability and resolve to find and bring to justice those that prey on Alaskans and victims across the United States.”
“Cyber-attacks pose serious harm to Alaskans, especially those in our more remote communities,” said Special Agent in Charge Robert W. Britt of the FBI's Anchorage Field Office. “The increasing number of Internet-connected devices presents challenges to our network security and our daily lives. The FBI Anchorage Field Office will continue to work tirelessly alongside our partners to combat those criminals who use these devices to cause damage globally, as well as right here in our own neighborhoods.”
In a recently unsealed indictment, Schuchman’s criminal associates Aaron Sterritt, a/k/a “Vamp,” or “Viktor” a national of the United Kingdom; and Logan Shwydiuk, a/k/a “Drake,” a Canadian national, have also been charged for their roles in developing and operating these botnets to conduct DDoS attacks, following an investigation by the FBI with the assistance of other law enforcement partners.
The FBI’s Anchorage Field Office conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Adam Alexander of the U.S. Attorney’s Office for the District of Alaska, and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section (CCIPS) of the Justice Department’s Criminal Division. The U.S. Attorney’s Offices for the Western District of Washington and the District of Oregon, and the FBI’s Portland Field Office and Vancouver, WA Resident Agency provided assistance and support during the investigation. Additional assistance was provided by Akamai, Cloudflare, Google, Oracle, Palo Alto Unit 42, Unit 221B, LLC and the University of Cambridge, among other partners.
United States Attorney William D. Hyslop Issues Warning About the Use of Fentanyl as Fentanyl Dealer is Sentenced to Eighty-five Months in Federal Prison for Drug Trafficking and Firearm PossessionRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Francisco Salazar, Jr., age 30, of Yakima, Washington, was sentenced today after having pleaded guilty on February 26, 2020, to Possession with Intent to Distribute Fentanyl and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. United States District Judge Stanley A. Bastian sentenced Salazar to an 85-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
United States Attorney Hyslop said, “Fentanyl is the leading cause of overdose deaths in the United States. The community needs to know that an incredibly small amount of Fentanyl in a pill can kill you instantly. It is incredibly dangerous. When a person buys a pill from a drug dealer, they have no way of knowing whether they will drop dead from that first pill or not, and even if they cut the pill, they have no way of knowing how much Fentanyl is in the portion that they swallow. The United States Attorney’s Office for the Eastern District of Washington commends the outstanding work of the Yakima Police Department and the U.S. Drug Enforcement Administration in investigating this case. Together, we will continue to fight to take this incredibly dangerous drug off the streets, but every user must know they are gambling with their life in even swallowing one Fentanyl-laced pill.”
According to information disclosed during court proceedings, during an October 2018, controlled buy, the Yakima Police Department (YPD) purchased Fentanyl-laced pills from Salazar. Five days later they arrested Salazar and searched his vehicle and residence, where YPD officers found additional Fentanyl-laced pills, a firearm, and U.S. currency. Salazar was charged in state court and released pending trial.
Months later, while still on pretrial release on the state charge, Salazar continued selling Fentanyl in the community. In September 2019, YPD and the U.S. Drug Enforcement Administration (DEA) conducted a controlled buy of twenty-five Fentanyl-laced pills from Salazar. In October, 2019, DEA and YPD obtained warrants to search Salazar’s car and residence. During execution of the warrants, law enforcement agents found approximately 300 Fentanyl-laced pills, drug packaging, U.S. currency, and a loaded firearm.
This case was investigated by the Yakima Resident Office of the Drug Enforcement Administration, and the Yakima Police Department. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Two Defendants Sentenced in Multi-Million Dollar Health Care Fraud ConspiracyRead the Press Release
PITTSBURGH, Pa. – Two residents of Pittsburgh, Pennsylvania, were sentenced in federal court for conspiracy to defraud the Pennsylvania Medicaid program and health care fraud, United States Attorney Scott W. Brady announced today.
On June 24, 2020, United States District Judge Cathy Bissoon sentenced Larita Walls, 57, to five years of probation, including twelve months of home detention, and Tionne Street, 48, to three years of probation, including six months of home detention, for their roles in a years-long conspiracy. Walls and Street were also ordered to pay restitution to the Pennsylvania Medicaid program in the amounts of $56,738.28 and $31,181.61, respectively.
In connection with their guilty pleas, the defendants admitted that between 2011 and 2017 they were employees of Moriarty Consultants, Inc. (MCI), one of four related entities operating in the home health care industry. The other three entities were Activity Daily Living Services, Inc. (ADL), and Everyday People Staffing, Inc. (EPS). MCI, ADL, and CCI were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients ("consumers"), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. Between in and around January 2011 and in and around April 2017, MCI, ADL, and CCI, collectively, received more than $87,000,000 in Medicaid payments based on claims submitted for these services, with PAS payments accounting for more than $80,000,000 of the total amount.
During that time, Walls and Street admitted that they participated in a wide-ranging conspiracy to defraud the Pennsylvania Medicaid program for the purpose of obtaining millions of dollars in illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims, or for which there was insufficient or fabricated documentation to support the claims. As part of the conspiracy, Walls and Street admitted that they fabricated timesheets to reflect the provision of in-home PAS care that, in fact, they never provided to the consumers identified on the timesheets. Some of the fabricated care occurred while Street was, in fact, working for a different employer. Walls further admitted that she caused the submission of Medicaid claims in the name of "ghost" employees—close relatives—for PAS care that did not occur. Likewise, Walls admitted that she paid kickbacks to a consumer in exchange for the consumer’s participation in the fraudulent billing scheme. In total, Walls and Street admitted causing losses to the Pennsylvania Medicaid program in excess of $180,000 and $70,000, respectively.
To date, twelve defendants have pleaded guilty for their roles in the conspiracy.
Assistant United States Attorney Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants.
Two Baltimore County Men Facing Federal Extortion ChargesRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Clement Robert Mercaldo, Jr., age 61, of Timonium, Maryland and Stepfen Gerard Gaither, age 29, of Randallstown, Maryland, for collection of credit by extortionate means and for interstate communications with intent to extort. The criminal complaint was returned on June 16, 2020, and was unsealed at their initial appearance yesterday.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the affidavit filed in support of the criminal complaint, Mercaldo loaned money to a Baltimore County restaurant owner. The affidavit alleges that an arson and destruction of property at the restaurant owner’s residence, as well as numerous text message threats received by the restaurant owner and his business partner, are related to recent non-payments of this loan. Furthermore, evidence collected during the investigation indicates that Mercaldo hired Stepfen Gaither to collect money for these loans and assist with the arson and destruction of property. Mercaldo and Gaither allegedly also discussed and planned the murder of one or both of the victims.
Specifically, in June 2008, the restaurant owner obtained an “interest only” loan from Mercaldo to open a restaurant. The loan was repaid through monthly checks given to Mercaldo, and was fully repaid by 2011. Between 2010 and 2017, the restaurant owner took additional loans from Mercaldo, and Mercaldo insisted that the restaurant owner pay him in cash, weekly.
As detailed in the affidavit, the restaurant owner reduced his monthly payments to Mercaldo in March 2017, due to other outstanding debt. In February 2019, the restaurant owner again cut his monthly payment to Mercaldo. Shortly thereafter, the restaurant owner began receiving threatening phone calls and text messages regarding the debt.
On March 29, 2019, the Baltimore County Police Department received a report from the restaurant owner that his vehicle was vandalized while parked in front of his residence overnight. Initial investigation revealed that between 9:45 p.m. and 6:00 a.m., an unknown subject destroyed the vehicle’s front windshield, and used a cement garden statue to shatter the rear window.
On August 4, 2019 at 2:52 a.m., the restaurant owner called the Baltimore County Fire Department after he and his wife were awoken by smoke detectors and discovered a fire in the basement near the rear door. The fire had extended to the exterior first floor of the home. Based on the physical evidence at the residence, investigators believe that an unknown subject(s) started a fire by breaking the basement window, pouring an ignitable liquid inside and igniting the liquid. An estimated $50,000 of damage was caused to the dwelling, and the restaurant owner and his wife had to move out of the residence. There were no injuries to the residents or emergency responders.
The affidavit alleges that from March through September 2019, phone numbers associated with Mercaldo and Gaither used messaging and calling applications to call and text threatening messages to the restaurant owner and his business partner. These messages including several that took credit for the fire and threatened additional harm to the restaurant owner, his business partner, and their family members if the restaurant owner did not pay his debt. Text messages sent by Mercaldo and Gaither to each other between October 2019 and January 2020 indicated that Mercaldo solicited Gaither to kill the restaurant owner and his business partner and that Gaither conducted surveillance in furtherance of that plan.
If convicted, Mercaldo and Gaither face a maximum sentence of 20 years for both credit by extortionate means and for interstate communications with intent to extort. 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. At yesterday’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Charles B. Day ordered that Mercaldo and Gaither be detained pending a detention hearing scheduled for Friday, June 26, 2020 at 10 am, and 1:30 pm, respectively.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
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Twin Falls Man Sentenced to over 16 Years in Federal Prison for Sexual Exploitation of ChildrenRead the Press Release
BOISE – Bryan Lee Thieme, 39, of Twin Falls, was sentenced to 200 months in federal prison for sexual exploitation of children, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also imposed lifetime supervised release to follow Thieme’s prison sentence. Thieme pleaded guilty to the charge on August 21, 2019.
According to court records, on May 19, 2018, the Twin Falls Police Department responded to Thieme’s residence to investigate reports that minors were consuming alcohol at the residence. During the investigation, officers received information from minors at that location that Thieme had taken nude images of minors with his cellphone. Officers also learned Thieme was a registered sex offender on federal supervised release for a conviction of possession of matters of minors engaged in sexually explicit conduct, entered in the Southern District of California in 2015.
The United States Probation Office and Homeland Security Investigations (HSI) conducted an investigation into Thieme’s activities at his residence. They discovered Thieme had recently re-set his cell phone to the factory setting, erasing all of its contents. Twin Falls police officers obtained a search warrant for the contents of Thieme’s Google account. As a result, HSI agents discovered nude images of minors and two videos taken by Thieme with his cell phone, at his residence, on April 23, 2018, that depicted a minor engaged in sexually explicit conduct with an adult.
This case was investigated by Homeland Security Investigations, United States Probation Office, and Twin Falls Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Twelve Area Individuals Indicted in Gun CrimesRead the Press Release
DAVENPORT, Iowa – Twelve people, all of whom are felons, are facing 28 criminal charges as part of federal drug and gun investigations announced United States Attorney Marc Krickbaum. A Federal Grand Jury filed eleven Indictments and one Superseding Indictment earlier this month in United States District Court in Davenport, Iowa.
The investigations occurred in Scott and Des Moines Counties. The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
In addition to the above, 21 additional individuals have been federally charged with gun crimes out of the Davenport Divisional Office since January 1, 2020. During the same time period, 15 individuals have been sentenced for gun-related crimes, resulting in sentences up to 240 months of imprisonment, with the average imprisonment sentence being 101 months or roughly 8.5 years.
There is no parole in the federal system.“Prosecuting violent crime—especially gun crime—in places like Davenport and Burlington is our office’s top priority,” said United States Attorney Marc Krickbaum. “Our message is very simple. Put down the gun, or we will ask a judge to put you in federal prison.”
These cases are part of Project Guardian (PG) and Project Safe Neighborhoods (PSN), programs bringing together all levels of law enforcement and the communities they serve to reduce gun crime and make our neighborhoods safer for everyone. The cases were investigated by the Davenport Police Department, Burlington Police Department, Bettendorf Police Department, and the Scott County Sheriff’s Office. The cases are being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Several defendants have been arrested and are outlined below. The other cases remain sealed pending arrest.
DEFENDANTAlexander Jamica Hubbard
Case Number 3:20-cr-48
SUMMARY OF CHARGES
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(D) - Possession with Intent to Distribute a Controlled Substance Maximum Penalty is 10 years in custody
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
Title 18, U.S.C. § 924(c)(1)(A) – Possession of a Firearm in Furtherance of a Drug Trafficking Crime Maximum Penalty is life in custody; 25 year mandatory minimum (enhanced due to prior conviction)
DEFENDANT
Jermaine Allen Ford
Case Number 3:20-cr-22
SUMMARY OF CHARGES
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
Title 18, U.S.C. § 922(j) – Possession of a Stolen Firearm Maximum Penalty is 10 years in custody
Title 21, U.S.C. § 844(a) – Possession of a Controlled Substance Maximum Penalty is 1 year in custody
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(C) – Distribution of a Controlled Substance Maximum Penalty is 20 years in custody
DEFENDANT
Adam Brent Branton
Case Number 3:20-cr-53
SUMMARY OF CHARGES
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(A) –Distribution of a Controlled Substance Maximum Penalty is life in custody; 10 year mandatory minimum
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
DEFENDANT
David Christopher Westby
Case Number 3:20-cr-59
SUMMARY OF CHARGES
Title 18, U.S.C. § 841(a)(1), 841(b)(1)(C) – Possession With Intent to Distribute a Controlled Substance Maximum Penalty is 20 years in custody
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
Title 18, U.S.C. § 924(c)(1)(A) – Possess a Firearm During and in Relation to a Drug Trafficking Crime Maximum Penalty is life in custody; 5 year mandatory minimum
DEFENDANT
Vernon Lee Bellamy
Case Number 3:20-cr-60
SUMMARY OF CHARGES
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(C) – Possession With Intent to Distribute a Controlled Substance Maximum Penalty is 20 years in custody
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
DEFENDANT
Darius Antwone Sims
Case Number 3:20-cr-61
SUMMARY OF CHARGES
Title 18, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession with Intent to Distribute a Controlled Substance Maximum Penalty is life in custody; 10 year mandatory minimum
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
DEFENDANT
Nihjl Shaquielle Rahmhad HooverCase Number 3:20-cr-68
SUMMARY OF CHARGES
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm Maximum Penalty is 10 years in custody
Tipton County Armed Career Criminal Sentenced to over 17 Years in Federal PrisonRead the Press Release
MEMPHIS, TN -Maurice Nash, A/K/A "Monster," 47, of Atoka, TN has been sentenced to 210 months in federal prison for being a convicted felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on May 3, 2019, members of the Tipton County Sheriff’s Office, Tennessee Bureau of Investigation, Board of Probation and Parole and the Bureau of Alcohol, Tobacco, Firearms and Explosives, conducted a parole check at the residence of Maurice Nash and his brother Henry Nash in Atoka, Tennessee. Maurice was home. The parole check was part of "Operation Crime Driver", a joint federal, state and local law enforcement anti-violence initiative led by the District Attorney General’s Office for the 25th Judicial District, and conducted between February and May 2019, where law enforcement targeted offenders wanted on arrest warrants for violent criminal offenses in Tipton County, Tennessee.
Officers found a loaded .40 caliber handgun in a shoebox in the closet of the master bedroom. They also found $10,500 in $100 bills in a black pouch in a sleeve of a black jacket that hung beneath the firearm; and 90 suspected MDMA pills (that were ultimately determined by TBI drug chemistry lab testing to be methamphetamine), along with $180. Nash told police that everything in the house belonged to him. Officers also found 8 small marijuana plants in a planter behind the house that were between 1 and 3 inches tall.
A K-9 unit on scene indicated a positive alert on two vehicles at the residence. One of the vehicles was a Tahoe registered to Nash’s mother; however, it contained Nash’s ID and other documents confirming the Tahoe belonged to Nash. Police found 3 bags of compressed marijuana, each weighing about one pound, on the floor by the front passenger seat of the Tahoe. Police also found an unloaded rifle similar to a SKS on the floor behind the passenger seat in the Tahoe. Nash exercised his right to remain silent concerning the drugs and rifle found in the Tahoe.
Nash’s mother told police that she did not know anything about the gun or drugs in the vehicle. She also acknowledged that her son Maurice had insurance for the Tahoe in his name. Nash was ultimately among 6 defendants from the first phase of Operation Crime Driver to be indicted in federal court in October, 2019 for various drug and gun offenses. https://www.justice.gov/usao-wdtn/pr/operation-crime-driver-targets-violent-criminals-tipton-county
On February 12, 2020, Nash pled guilty to being a convicted felon in possession of a firearm. Due to his extensive criminal history which included prior felony convictions for aggravated assault, reckless endangerment with a deadly weapon, and possession of MDMA, cocaine, and marijuana with intent to deliver, Nash was classified as an armed career criminal under federal law and was therefore subject to an enhanced, mandatory minimum sentence.
On June 25, 2020, U.S. District Court Judge Sheryl H. Lipman sentenced Nash to 210 months in federal prison followed by 3 years supervised release. Because Nash was on state parole release status at the time of this new arrest, this federal sentence will be served consecutively to the remainder of his state custodial sentence in the Tennessee Department of Correction as a result of parole revocation. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "This defendant has a long criminal history of felony convictions, and was on parole when he was found in possession of firearms and illegal narcotics. Nash has devoted his adult life to a career of repeated criminal conduct, and that prior history has finally caught up with him. ‘Monster’ was a real crime driver, but will no longer terrorize Tipton County. This sentence removing him from the community for more than 17 years is well-deserved, and will make Tipton County and West Tennessee a safer place."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Tipton County Sheriff's Office, Tennessee Bureau of Investigation (TBI) and the Tennessee Board of Probation and Parole.
Assistant U.S. Attorney P. Neal Oldham prosecuted this case on behalf of the government.
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Three Individuals Charged, Fourth Admits Guilt in $6 Million Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A federal grand jury has returned a 33-count indictment charging three individuals, including a doctor and an advanced practice nurse, with defrauding New Jersey state health benefits programs and other insurers out of more than $6 million by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced today. A fourth individual, a Mt. Laurel, New Jersey, doctor, pleaded guilty to signing four false prescriptions for patients he never met.
Brian Sokalsky, D.O., 42, of Margate, New Jersey, and Vincent Tornari, 46, of Linwood, New Jersey, were charged with conspiracy to commit health care fraud and wire fraud. Sokalsky was charged with a second conspiracy to commit health care fraud and wire fraud. Ashley Lyons-Valenti, 63, of Swedesboro, New Jersey, and Tornari were charged with a third conspiracy to bribe Lyons-Valenti and deprive her patients and employer of her honest services. Sokalsky and Tornari also were each charged with individual acts of health care fraud and wire fraud, and Lyons-Valenti was charged with individual acts of wire fraud and five false statement counts. Lyons-Valenti was also charged with obstruction of justice for tampering with a grand jury witness.
The cases are assigned to U.S. District Judge Robert B. Kugler in Camden. The indicted defendants are expected to appear today by videoconference before U.S. Magistrate Judge Joel Schneider.
According to the indictment:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
The conspirators recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from a Louisiana pharmacy, identified in the indictment as “Compounding Pharmacy 1,” and a Pennsylvania pharmacy, identified in the indictment as “Compounding Pharmacy 2.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the indictment as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, and other insurance plans. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey or the other insurance plans for the amounts paid.
In the first charged conspiracy, Matthew Tedesco, who previously pleaded guilty to conspiracy to commit health care fraud, had an arrangement with Sokalsky – if Tedesco sent new patients to Sokalsky’s medical practice, Sokalsky would prescribe Compounding Pharmacy 1 medications for the patients. Tedesco received a percentage of the amount that Compounding Pharmacy 1 received for prescriptions obtained by Tedesco and his associates. Tedesco and his conspirators recruited public employees and others covered by the Pharmacy Benefits Administrator to agree, in exchange for money, to obtain compounded medications from Compounding Pharmacy 1. Tedesco sent the recruited individuals to Sokalsky and often tipped him off that they were coming. Sokalsky prescribed Compounding Pharmacy 1 medications for the patients, including medications that patients did not need or discuss with him. Sokalsky profited by billing insurance for over 30 new patients.
The completed prescriptions were faxed to Compounding Pharmacy 1, which filled the prescriptions and billed the Pharmacy Benefits Administrator. The Pharmacy Benefits Administrator paid Compounding Pharmacy 1 over $5 million for compounded medications prescribed by Sokalsky.
The indictment charges Sokalsky and Tornari with a similar scheme to write fraudulent prescriptions for Compounding Pharmacy 2. Tornari’s company had an agreement with Compounding Pharmacy 2 to receive 50 percent of the insurance payment for prescriptions they arranged. Tornari then hired Mark Bruno to find patients who would agree to receive Compounding Pharmacy 2 medications in exchange for cash payments. Bruno pleaded guilty in 2019 to conspiracy to commit health care fraud for his participation in the scheme. Tornari had Sokalsky agree to write Compounding Pharmacy 2 prescriptions for new patients sent to him. Bruno found patients and sent them to Sokalsky, often after letting Sokalsky know that they were coming. Sokalsky wrote Compounding Pharmacy 2 prescriptions that the patients did not need or discuss with Sokalsky, sometimes without even seeing the patients. These prescriptions cost insurers over $500,000.
In a third charged scheme, Tornari hired Lyons-Valenti’s boyfriend and agreed to pay him commissions on each Compounding Pharmacy 2 prescription that Lyons-Valenti wrote. Lyons-Valenti then started writing Compounding Pharmacy 2 prescriptions and Tornari paid commissions to the boyfriend, who gave Lyons-Valenti half of the commission payments. Lyons-Valenti persuaded her workers and subordinates at her medical office to receive Compounding Pharmacy 2 prescription medications that they did not need, often without giving them a medical examination or recording the prescriptions in their medical records. Lyons-Valenti wrote Compounding Pharmacy 2 prescriptions for which insurance paid over $1.25 million and received over $90,000 in kickbacks in return.
In a fourth scheme, Lyons-Valenti signed five Compounding Pharmacy 1 prescriptions for Judd Holt, who previously pleaded guilty to conspiracy to commit health care fraud for his role in the scheme. On each of the five prescriptions, Lyons-Valenti falsely stated that she had examined the patient’s medical records, conducted a face-to-face examination of the patient, and determined that the prescribed medications were medically necessary, when in fact she had never met or examined any of the five patients.
Lyons-Valenti also was charged with witness tampering for making false and misleading statements to a co-worker who was a federal grand jury witness. Lyons-Valenti called and texted the witness before and after the witness talked to the FBI and before the witness was scheduled to testify in the grand jury. Lyons-Valenti told the witness to tell the FBI that Lyons-Valenti had examined the witness before prescribing medications for the witness, which was false. Lyons-Valenti also falsely told the witness that Lyons-Valenti had never received any money for writing the prescriptions.
The health care fraud and wire fraud conspiracy count with which defendants Sokalsky and Tornari are charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each health care fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The honest services conspiracy count and the false statement counts each carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The witness tampering charge carries a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense
Also today, Michael Goldis, D.O., 64, who had a medical practice in Stratford, New Jersey, pleaded guilty by videoconference before Judge Kugler to four counts of making false statements relating to health care matters. According to admissions made in court, Goldis signed four prescriptions for individuals who were not his patients at the request of Richard Zappala, who previously pleaded guilty to conspiracy to commit health care fraud. On each of the four prescriptions, Goldis falsely certified that he had examined the patient’s medical records, conducted a face-to-face examination of the patient, and determined that the prescribed medications were medically necessary, when in fact Goldis had never met or examined any of the four patients. Goldis admitted that he received $1,000 checks on the same days he signed two of the prescriptions and received a total of $4,700 from Zappala. The Pharmacy Benefits Administrator paid approximately $1 million for prescriptions Goldis signed at Zappala’s request.
Goldis was previously charged in an indictment with conspiracy to commit health care fraud and other offenses with Steven Monaco, Daniel Oswari, and Aaron Jones. Oswari pleaded guilty in December 2019 to fraud and kickback charges. The indictment remains pending against Monaco and Jones.
Goldis faces a maximum penalty on each count of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 6, 2020.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Douglas Korneski in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the indictment and guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Aimee Nason, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment and the indictment against Monaco and Jones are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three Defendants Each Sentenced to 46 Months for Trafficking Counterfeit DVDsRead the Press Release
COVINGTON, Ky. - Hongtao Zhu, 43, Hui Lin, 36, and He Lin, 33, were each sentenced to 46 months in federal prison on Wednesday, by U.S. District Judge David L. Bunning, for trafficking in counterfeit DVDs.
All three defendants pleaded guilty in October 2019, and admitted to conspiring to sell counterfeit DVDs, which were imported from China and sold via eBay, over a two year period. The DVDs appeared to be genuine Disney productions when, in fact, they were not.
As part of the judgment, the defendants will be required to pay $898,748.52 in restitution.
Under federal law, each of the defendants must serve 85 percent of their prison sentence and will be under the supervision of the U.S. Probation Office for five years, following their release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Christopher White, Assistant Inspector in Charge, Pittsburgh Division, Cincinnati Field Office, of the United States Postal Inspection Service, jointly made the announcement.
The investigation was directed by the U.S. Postal Inspection Service, with assistance provided by the Motion Picture Association. The United States was represented by Assistant U.S. Attorney Elaine Leonhard and former Assistant U.S. Attorney Laura K. Voorhees.
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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Texarkana Rapper “Band Aid” Convicted of Drug Trafficking ViolationsRead the Press Release
TEXARKANA, Texas – A 31-year-old Bowie County, Texas, man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Justin Rashad Young was found guilty of drug trafficking today, following a four-day jury trial before U.S. District Judge Robert W. Schroeder, III.
According to information presented in court, on June 28, 2017, Young and his fellow drug trafficker, Joshea Cardwell, a.k.a. “Too Tall,” were found in the Magnuson Hotel near North State Line Avenue in Texarkana, Texas, with more than 400 grams of methamphetamine, 1.6 kilograms of marijuana, drug distribution materials, and a Taurus 9 mm pistol. When officers arrived on the scene, Young slammed the hotel room door on one of the responding officers. Before that day, Young had been shot at the drug house he had been operating on Waterman Street in Texarkana. On another occasion, Young was found in possession of marijuana after he left a drug house. At trial, a cooperating witness described how Cardwell and Young had been working together for months to sell marijuana from California and methamphetamine. Young and Cardwell were indicted by a federal grand jury on Nov. 14, 2018, and again on July 24, 2019.
On June 4, 2020, Cardwell pleaded guilty to conspiring with Young to possess and distribute marijuana and methamphetamine and to possessing a firearm in furtherance of drug trafficking.
Under federal statutes, Young and Cardwell face up to 40 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Special Operations Division of the Texarkana Texas Police Department, the Texarkana office of the Texas Department of Public Safety, Criminal Investigation Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok and Lucas R. Machicek.
Stolen Credit Card Charges Lead to Federal Felony Charges for Centralia ManRead the Press Release
A federal grand jury for the Southern District of Illinois has returned an indictment charging
Danny Vaughn, 62, of Centralia, Illinois, with 15 felony counts, including mail fraud, wire fraud, and aggravated identity theft.According to the indictment, Vaughn purchased computers, cell phones, and gift cards from local retailers using credit cards associated with other people’s accounts. The indictment includes 12 wire fraud charges for separate credit card transactions adding up to over $20,000 – all made over the course of four days in November, 2018, using one victim’s account at Best Buy, Walmart, and
Peoples National Bank. Vaughn allegedly received copies of the victims’ credit cards from co-conspirators, along with packages containing other fraudulently acquired property. The indictment alleges that Vaughn shipped the fraudulently acquired items to addresses overseas, including Malaysia.Vaughn is due in federal court for his initial appearance on July 13 at 10:00 a.m. A trial date has not been set. Each of the 14 fraud charges is punishable by as much as 20 years in prison. The aggravated identity theft charge carries a mandatory sentence of two years imprisonment in addition to the punishment imposed for any other count.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by the United States Postal Inspection Service and the
Centralia Police Department.St. Thomas Airport Traveler Pleads Guilty to Causing a Firearm to be Present in a Federal FacilityRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Wayne Smith pled guilty yesterday to causing a firearm to be present in a federal facility. Sentencing has been scheduled for October 29, 2020.
According to court documents filed in the case, on March 21, 2020, Smith was a ticketed airline passenger at Cyril E. King airport. He checked luggage that contained a Ruger LCP pistol and magazine, without notifying the airline or the Transportation Safety Administration (TSA) that the luggage contained a firearm. The TSA subsequently discovered the firearm at the federal security checkpoint.
This case was investigated by Homeland Security Investigations and Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Adam Sleeper.
Springfield Man Sentenced to More Than 6 Years in Federal Prison for Trafficking HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JONATHAN VELEZ, also known as “Jay” and “King Jay,” 26, of Springfield, Massachusetts, was sentenced today by U.S. District Judge Victor A. Bolden to 78 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, in October 2016, the Drug Enforcement Administration’s Hartford Task Force began an investigation of an organization that was trafficking large quantities of heroin, fentanyl and other narcotics in Connecticut and western Massachusetts. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that members of the organization were receiving bulk quantities of heroin and fentanyl from out-of-state suppliers. They then stored, processed and packaged the heroin/fentanyl in multiple locations, including apartments located at 280 Collins Street in Hartford where some members of the organization also resided, and then distributed the drug in the Hartford area, and also the Springfield and Holyoke, Massachusetts area. A significant amount of drug trafficking activity occurred at the Neighborhood Supermarket, located at 316 Farmington Avenue in Hartford.
Fourteen individuals have been charged with various narcotics, firearms and immigration offenses as a result of this investigation. During the investigation, law enforcement seized approximately 10 kilograms of heroin and fentanyl, much of which was packaged for resale in hundreds of thousands of bags. Seven firearms were also seized.
Velez was intercepted numerous times on wiretaps discussing narcotics trafficking activity, and in April 2017, investigators made a controlled purchase of heroin from Velez in Springfield. The investigation also revealed that, although Velez was on Massachusetts state probation and prohibited from traveling outside of Massachusetts, he regularly traveled to Hartford to obtain large quantities of heroin from other members of the organization. For example, on June 3, 2017, Velez traveled to Hartford to purchase 200 grams of heroin in exchange for $13,000.
The investigation further revealed that the drug trafficking organization was using xylazine, a horse tranquilizer, as an additive to the heroin and fentanyl it distributed. In June 2017, investigators intercepted a package containing 72 (100 mg) vials of xylazine that had been shipped from Puerto Rico to Velez’s residence.
Velez has been detained since his arrest on June 29, 2017. On that date, a search of his Springfield residence revealed approximately 116 grams of compressed heroin, numerous wax folds of heroin, and a loaded .38 caliber revolver.
On August 6, 2018, Velez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
Velez’s criminal history includes multiple criminal convictions, including three prior convictions for felony narcotics offenses.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the Federal Bureau of Investigation, U.S. Postal Inspection Service, U.S. Marshals Service and Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Springfield Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Springfield, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Trudell Smith, Jr., age 29, was indicted on August 14, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 24, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Smith was convicted of Aggravated Sexual Abuse/Juvenile Delinquency in February 2008. As a result of the conviction, he is required to register as a sex offender. The indictment alleges between May 27, 2019, and August 13, 2019, Smith, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Smith is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Smith was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Southern Illinois Man Indicted for Stealing Mail from Okawville and Collinsville ResidentsRead the Press Release
A federal grand jury for the Southern District of Illinois has returned an indictment charging Seth
W. Sorensen, 45, with one count of mail theft and four counts of possessing stolen mail.
According to the indictment, Sorensen stole mail out of a residential mailbox on R&R Drive in
Okawville. The indictment also charges Sorensen with possessing stolen mail addressed to a second
Okawville resident and three residents of Collinsville. All of the crimes charged allegedly occurred in February 2019.Sorensen is currently serving a three year sentence for an unrelated crime. His initial appearance and trial dates have not been set. Each charge carries up to five years in prison and a maximum fine of $250,000.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by the United States Postal Inspection Service, the
Collinsville Police Department, and the Okawville Police Department.Shane Allen Edgerly Sentenced for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on June 25, 2020, Shane Allen Edgerly, 44, of Milton, Vermont, was sentenced in United States District Court in Rutland to serve 87 months in prison after his guilty plea to one count of possession of child pornography. Chief U.S. District Judge Geoffrey W. Crawford also ordered Edgerly to serve a 10-year term of supervised release, and to pay a $100 special assessment.
According to court records, during 2017, Homeland Security Investigations (“HSI”) in Burlington received 22 “CyberTips” from the National Center for Missing and Exploited Children (NCMEC) indicating that an individual had uploaded suspected images of child pornography using Pinterest. NCMEC determined that the 22 CyberTips appeared to be related, due to a common IP Address and three e-mail accounts, all connected to Edgerly. The CyberTips referenced sexually explicit photographs of females who appeared to be under the age of 16, and in some instances approximately 8-10 years old. In July 2018, HSI received a new CyberTip originating from Rabbit, Inc. Rabbit, Inc. provided numerous images shared by Edgerly, using an email account, as well as a chat log memorializing communications between Edgerly and another Rabbit, Inc. user. The images included numerous pictures of prepubescent girls exposing their genitals. In October 2018, HSI, working in partnership with Vermont Attorney General’s Office investigators, obtained a search warrant for Edgerly’s residence. Before the search on October 4, 2018, Edgerly admitted to HSI and Vermont Attorney General’s Office investigators that he possessed and traded child pornography. In addition, during the search of Edgerly’s residence investigators found electronic devices holding over 800 images of suspected child pornography.
U.S. Attorney Nolan commended the efforts of Homeland Security Investigations and the Vermont Attorney General’s Office investigators. Assistant U.S. Attorneys William Darrow and Nikolas Kerest prosecuted Edgerly. Assistant Federal Public Defender Steven Barth represented Edgerly.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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.
Second Defendant Charged with Murder in New Indictment in Case of Man Found Dead in Pacific Ocean after Being Shot on a BoatRead the Press Release
SANTA ANA, California – With a new indictment issued by a federal grand jury this week, a man and woman from Orange County now both face charges of first-degree murder and conspiracy to commit murder in the slaying last year of a man whose body was found floating in the Pacific Ocean with gunshot and blunt force trauma wounds.
The grand jury on Wednesday returned a 10-count superseding indictment that adds a conspiracy count alleging that the two defendants plotted and were working together when the victim was lured onto a boat last fall with promises of an overnight lobster fishing trip. The body of the victim – who is identified in the indictment only as “T.D.” – was recovered from the Pacific Ocean several miles northwest of Oceanside on October 16, 2019.
While one defendant was previously charged with murder in this case, the superseding indictment adds a murder charge against Sheila Marie Ritze, 40, of San Juan Capistrano, a registered owner of the boat, who previously was accused of being an accessory after the fact (a charge not alleged in the superseding indictment). The alleged shooter – Hoang Xuan Le, also known as “Wayne” and “Wangsta,” 39, of Fountain Valley – was previously indicted on a charge of first-degree murder within the special maritime and territorial jurisdiction of the United States.
The superseding indictment now alleges that Le and Ritze conspired to commit the murder. The conspiracy count alleges that, on October 15, Le shot T.D., Le threw the victim overboard, and “defendants Le and Ritze left victim T.D. in the Pacific Ocean to die and went back to the Dana Point Marina.”
Le and Ritze, who pleaded not guilty earlier this year to charges in the original three-count indictment, are currently being held in federal custody without bond. They are scheduled to be arraigned on the new indictment on July 6 in United States District Court in Los Angeles.
In addition to the three charges related to the murder, the superseding indictment adds a series of narcotics charges against Le related to drug deals with an undercover operative during the investigation into the slaying. Le allegedly distributed cocaine on two occasions and distributed methamphetamine in two transactions.
The superseding indictment further charges Le with possessing methamphetamine and two firearms – a shotgun and an AR-15-type “ghost gun” – when he was arrested.
The final count in the indictment charges Ritze with lying to federal investigators during an interview after she was arrested. The indictment specifically alleges that Ritze falsely stated, among other things, that she had never met the victim prior to the October 15 boat trip.
Le and Ritze were arrested on December 19 after prosecutors filed a criminal complaint in the case being investigated by the FBI and the Coast Guard Investigative Service.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The first-degree murder charge against Le and Ritze carries a mandatory sentence of life without parole in federal prison. The conspiracy charge carries a maximum sentence of life without parole, as does the charge of discharging a firearm in furtherance of and during and in relation to a crime of violence. The narcotics-related offenses against Le could add decades to any sentence he receives if convicted.
This case is being prosecuted by Assistant United States Attorneys Greg Scally and Vibhav Mittal of the Santa Ana Branch Office.
Salyersville Man Sentenced to 120 Months for Armed Methamphetamine TraffickingRead the Press Release
PIKEVILLE, Ky. - A Salyersville, Ky., man, Tommy Joe Minix, 35, was sentenced to 120 months in federal prison on Thursday, by U.S. District Judge Karen Caldwell, for conspiracy to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to his plea agreement, on April 9, 2018, Minix arranged to sell approximately three ounces of methamphetamine,. Minix and Scott Linville, 28, of Lexington, Ky., travelled together to deliver the methamphetamine. Before the methamphetamine could be distribute, officers executed a traffic stop and found approximately 76 grams of methamphetamine, plastic bags, digital scales, and a pistol. A further search of Minix’s residence revealed four additional firearms and 37 grams of methamphetamine.
Linville received 60 months in prison for his role in the conspiracy.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Special Agent in Charge, FBI, Louisville Field Division, jointly made the announcement.
The investigation was directed by the FBI. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is 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. Click here for more information about Project Guardian.
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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Registered Sex Offender Sentenced to One-Year Jail Term for Violating Terms of Supervised ReleaseRead the Press Release
NEWARK, N.J. – A Monsey, New York, man who was previously convicted of assaulting a woman on a flight from Israel to Newark Liberty International Airport was sentenced today to additional prison time for violating the terms of his supervised release by sexually abusing a minor, U.S. Attorney Craig Carpenito announced.
Yoel Oberlander, 39, appeared by videoconference for a hearing before U.S. District Judge Esther Salas and pleaded guilty to violating the terms of his supervised release by committing another crime. He was sentenced today to 12 months in prison, representing time served, and an additional term of supervised release of two years, which includes a 12-month term of home detention with a GPS bracelet. He will be required to quarantine on house arrest for a period of 14 days once released from Essex County Jail.
On July 20, 2017, Oberlander was sentenced to 12 months in prison and three years of supervised release after pleading guilty to committing the offense of assault with the intent to stalk. On June 24, 2019, while serving his probationary term, Oberlander was arrested by the Ramapo Police Department in New York for picking up a minor victim in his car and assaulting the victim. Oberlander was charged by the Rockland County District Attorney with three misdemeanor offenses: sexual abuse in the third degree, forcible touching, and endangering the welfare of a child.
Oberlander is a registered sex offender; he was convicted in 2002 in New York for sexual abuse in the second degree, arising from his sexual assault of a minor. In his prior federal prosecution by this office, Oberlander was convicted of assaulting a 22-year old woman who was seated next to him on a May 2016 El Al flight from Tel Aviv to Newark by touching her in the area of her chest, upper thigh, and hand without her consent.
The government is represented by Assistant U.S. Attorneys Melissa M. Wangenheim and Adam Baker of the U.S. Attorney’s Criminal Division in Newark.
Peoria Street Gang Members Sentenced for RICO Gang Violence, MurderRead the Press Release
PEORIA, Ill. – Sentencing hearings have concluded for 13 members of the Peoria street gang known as “Bomb Squad” who were convicted in December 2019, for conspiring to operate as a criminal enterprise. The defendants were convicted of conspiring under the RICO statute (Racketeer Influenced and Corrupt Organizations Act), to commit murder, attempted murder, arson, drug trafficking and gun violence to protect itself, its members, and associates from rival gangs and to protect the standing and reputation of the gang from 2013 to 2018.
Evidence presented in court during seven weeks of trial and two weeks of sentencing hearings detailed the group’s use of deadly violence, including four murders, more than 20 shootings, and two residential arsons, to intimidate rival gangs, along with social media where the group brazenly touted and glorified its violence. Innocent people were tragically caught in the crossfire, including an 11-year-old girl who was struck and injured by a bullet that passed through the front of the home where she was asleep on a sofa, and the murder of a bystander, a Bradley University freshman, in April 2018, as a bullet passed through the head of a rival gang member and killed her.
Over the past two weeks, U.S. District Judge James E. Shadid presided in individual hearings to sentence each defendant for his respective role and activity in the conspiracy:
Eugene Haywood, 26
life plus 10 years
Raevaughn Rogers, 20
20 years
Torieuanno White, 26
40 years
Kenwan Crowe, 21
20 years
Ezra Johnson, 24
37 years
Mytrez Flora, 26
20 years
Lloyd Dotson, 29
35 years
Kentrevion Watkins, 21
19 years
Keith Gregory, 21
30 years
Andre Neal-Ford, 22
14 years
Jahlin Wilson, 23
29 years
Sherman Williams, 25
12 ½ years
Lance Washington, 24
28 years
“These sentences are appropriate and should send a message to others that violent, lawless behavior will not be tolerated,” said U.S. Attorney John Milhiser. “We will continue our efforts with federal, state and local partners to reduce violent crime by using all available resources, including federal RICO statutes that target dangerous groups in our communities. There is no higher priority than keeping our communities safe.” Milhiser commended the coordination and work of the ATF, Peoria Police Department, and the Illinois State Police to successfully prosecute these individuals. Milhiser also recognized U.S. Marshal Brendan Heffner and his team for their work and invaluable support throughout this case prosecution to provide safe apprehension of the defendants, and to maintain security throughout seven weeks of trial for 13 defendants.
“The severity of these sentences sends a strong message to these defendants that we will not tolerate their terrorizing the community with violence,” remarked ATF Special Agent in Charge Kristen deTineo of the Chicago Field Division. “We are grateful to our law enforcement partners and the U.S. Attorney’s Office for their commitment to this important investigation and prosecution.”
Peoria Chief of Police Loren Marion III stated: “We will not allow individuals or groups to take over neighborhoods in our community. It is our priority to keep our community safe and remove those who seek to terrorize and instill fear in our city. These sentences should serve as a warning to any group looking to take the place of the “Bomb Squad” members who are headed to prison. We will continue our efforts in working with federal and state law enforcement partners to bring dangerous criminals or enterprises to justice.”
Each of the defendants has remained in the custody of the U.S. Marshals Service since the charges were returned by the grand jury in June 2018. Each will be transferred to the federal Bureau of Prisons to serve his respective sentence.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department conducted the investigation with assistance from the Drug Enforcement Administration and Illinois State Police. Assistant U.S. Attorneys Ronald L. Hanna, Adam W. Ghrist, and Douglas F. McMeyer represented the government in the investigation and prosecution of the case in the Peoria Division, Central District of Illinois.
The charges are the result of an ongoing investigation by an Organized Crime Drug Enforcement Task Force (OCDETF), a partnership of federal, state and local law enforcement agencies working together to identify, disrupt and dismantle drug trafficking organizations and violent street gangs.
In addition, this case is prosecuted under Project Safe Neighborhoods (PSN), a federal program designed to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The program was reinvigorated in 2017 as part of the Department of Justice’s renewed focus to target each community’s most violent criminals.
Oshkosh Man Arrested on Federal Child Pornography Distribution ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on June 23, 2020, a federal grand jury handed down an indictment alleging that Martin E. McKeever (age: 51) of Oshkosh, Wisconsin, possessed and distributed child pornography in violation of Title 18, United States Code, Sections 2252A(a)(2)(A) and 2252A(a)(5)(B).
McKeever is charged with two counts of distributing child pornography. Each count carries a mandatory minimum sentence of five years and up to 20 years of incarceration in federal prison upon conviction. He faces an additional charge of possession of child pornography, which carries a sentence of up to ten years’ imprisonment.
McKeever was arraigned on June 25, 2020, at 11:30 a.m. before the federal district court in Green Bay, Wisconsin.
This case was investigated by the Federal Bureau of Investigation’s Milwaukee Office, the Sheboygan County Sheriff’s Office, and the Winnebago County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Public Information Officer Kenneth Gales 414-297-1700
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Okoboji Man to Federal Prison for Meth Conspiracy and Illegal Possession of AmmunitionRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed ammunition was sentenced June 25, 2020, to 7 years in federal prison.
Cole Rongved, 26, from Okoboji, Iowa, pled guilty on October 17, 2019, to one count of conspiring to distribute methamphetamine and one count of illegally possessing ammunition, being subject to an order of protection in the Iowa District Court for Dickinson County.
At the plea and sentencing hearings, evidence showed that Rongved was involved in a conspiracy from May 2018 through January 2019 that distributed at least 1500 grams of methamphetamine in the Dickinson County, Iowa area. Rongved admitted that he and two associates acquired over two pounds of methamphetamine from a source in Council Bluffs for later distribution in the Lakes area. During search warrants executed at Rongved’s residence, law enforcement located and seized over 1000 rounds of ammunition, over 5 pounds of marijuana, 37 doses of LSD, 4 grams of methamphetamine, over 2 pounds of psilocybin mushrooms, nearly $38,000 in cash, and other items of drug trafficking and drug paraphernalia.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Rongved was sentenced to 84 months’ imprisonment and must serve a term of 4 years of supervised release following the imprisonment. There is no parole in the federal system. Rongved remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Dickinson County Sheriff’s Office, Palo County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4025. Follow us on Twitter @USAO_NDIA.
Ohio man sentenced for cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Mustafa Ali Vaughn, of Canal Winchester, Ohio, was sentenced today to 63 months incarceration for drug distribution, U.S. Attorney Bill Powell announced.
Vaughn, also known as “Moose” and “Fargo,” age 38, pled guilty to one count of “Distribution of Cocaine Base within 1000 feet of a Protected Location” in December 2019. Vaughn admitted to selling cocaine near Luau Manor in Ohio County in May 2019.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Ohio Man Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – An Ohio man has pled guilty to a federal drug charge, announced United States Attorney Mike Stuart. Robert Lamar Bates-Porter, 33, of Columbus, Ohio, pled guilty to possession with intent to distribute more than 400 grams of fentanyl.
“After serving five years in prison for his previous federal conviction, Bates-Porter didn’t even wait for his term of supervised release to end before picking up where he left off as a drug dealer,” said United States Attorney Mike Stuart. “Now he will be returning to federal prison where I hope he sets his sights on a different line of work upon release.”
During the late summer of 2019, the Washington County, Ohio Major Crimes Task Force (MCTF) was investigating a drug trafficking organization that was bringing fentanyl and heroin from Columbus, Ohio to be distributed in and around Marietta, Ohio and Parkersburg, West Virginia. MCTF joined forces with the Parkersburg Narcotics Task Force (PNTF) to investigate the organization. Investigators identified Bates-Porter as a key member of the organization. In September 2019, Bates-Porter ordered a package of drugs to be delivered to a residence on Roselynne Avenue in Parkersburg. The package was delivered on September 12, 2019. Bates-Porter drove from Columbus to Parkersburg and arrived at Roselynne Avenue after midnight on September 13, 2019. Shortly thereafter, PNTF personnel executed a search warrant at the residence where they found Bates-Porter in the basement preparing to open the drug package. Officers seized the package which contained a kilogram of fentanyl. Later the same day, police in Columbus, Ohio executed a search warrant at Bates-Porter’s residence where they seized approximately 260 grams of heroin, 94 grams of cocaine, and a small quantity of a mixture of heroin and fentanyl.
At the time of his arrest, Bates-Porter was on federal supervised release for a 2014 conviction in the Southern District of West Virginia for possession of a firearm in furtherance of drug trafficking. At the plea hearing, he admitted that he took possession of the package and intended to distribute the drugs inside which he claimed to believe was heroin.
In addition to facing 10 years to life in prison for the fentanyl charge, Bates-Porter also faces up to five years for violating the terms of his supervised release when he is sentenced on September 23, 2020.
The Washington County Major Crimes Task Force, the Parkersburg Narcotics Task Force, the United States Postal Inspection Service, and the Columbus, Ohio Police Department conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Joshua Hanks handled the prosecution.
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Ohio County woman sentenced for methamphetamine chargeRead the Press Release
WHEELING, WEST VIRGINIA –Tiffany Markle, of Wheeling, West Virginia, was sentenced today to 120 months incarceration for a drug charge, U.S. Attorney Bill Powell announced.
Markle, age 33, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Methamphetamine” in July 2019. Markle admitted to distributing methamphetamine in Marshall and Ohio Counties from July 2018 to February 2019. The government is also seeking the forfeiture of the Markles’ residence at 36 Fernwood Avenue in Wheeling.
Assistant U.S. Attorney Robert H. McWilliams, Jr., prosecuted the case on behalf of the government. The Marshall County Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Novartis Hellas S.A.C.I. and Alcon Pte Ltd Agree to Pay over $233 Million Combined to Resolve Criminal FCPA CasesRead the Press Release
Novartis Hellas S.A.C.I. (Novartis Greece), a subsidiary of Novartis AG, a Switzerland-based global pharmaceutical company, and Alcon Pte Ltd, a former subsidiary of Novartis AG and current subsidiary of Alcon Inc., a multinational eye care company, have agreed to pay a combined total of more than $233 million in criminal monetary penalties to resolve the department’s investigation into violations of the Foreign Corrupt Practices Act (FCPA).
The resolutions arise out of a Novartis Greece scheme to bribe employees of state-owned and state-controlled hospitals and clinics in Greece and to falsely record improper payments relating to the corrupt scheme and similar conduct, and an Alcon Pte Ltd scheme to make and falsely record improper payments in Vietnam. Novartis AG has also agreed to pay over $112 million to the U.S. Securities and Exchange Commission (SEC) in a related matter.
Novartis Greece entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of New Jersey in connection with a criminal information filed today in the District of New Jersey charging Novartis Greece with one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of conspiracy to violate the books and records provision of the FCPA. Pursuant to the deferred prosecution agreement, Novartis Greece has committed to pay a total criminal monetary penalty of $225 million.
Alcon Pte Ltd, a subsidiary of Novartis AG at the time of the misconduct, separately entered into a deferred prosecution agreement in connection with a criminal information filed today in the District of New Jersey charging Alcon Pte Ltd with conspiracy to violate the books and records provision of the FCPA. Pursuant to the deferred prosecution agreement, Alcon Pte Ltd has committed to pay a total criminal monetary penalty of approximately $8.9 million.
“Novartis AG’s subsidiaries profited from bribes that induced medical professionals, hospitals, and clinics to prescribe Novartis-branded pharmaceuticals and use Alcon surgical products, and they falsified their books and records to conceal those bribes,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The resolutions announced today reflect the paramount importance of effective compliance programs and the department’s commitment to holding companies accountable when they fall short.”
“The agreement we’re announcing today shows that there will be a heavy price paid by companies that violate our laws, whether at home or overseas,” said U.S. Attorney Craig Carpenito for the District of New Jersey. “Just as importantly, it includes a framework for compliance reforms that should ensure that these companies conduct their business legally moving forward.”
“The FBI is committed to fighting any corrupt acts that adversely impact our economy, our citizenry, or our way of life,” said Acting Special Agent in Charge Douglas Korneski of the FBI’s Newark Field Office. “I say this to every company doing business on the stock exchange – if you think you can ignore the rules or make up your own, if your business model includes bribery or a quid pro quo, you can count the days until we show up on your company's doorstep. We will protect our citizens, our economy, our way of life, and bring to justice anyone who breaks the law.”
According to its admissions, between 2012 and 2015, Novartis Greece conspired with others to violate the FCPA by engaging in a scheme to bribe employees of state-owned and state-controlled hospitals and clinics in Greece in order to increase the sale of Novartis-branded pharmaceutical products. Specifically, Novartis Greece paid for employees of state-owned and state-controlled hospitals and clinics to travel to international medical congresses, including events held in the United States, as a means to bribe these officials in exchange for increasing the number of prescriptions they wrote for Lucentis, a prescription drug that Novartis Greece sold. In furtherance of the scheme, Novartis Greece employees traveled to the United States, and, while located in the United States, facilitated the provision of the improper benefits to publicly-employed Greek health care providers.
In connection with the resolution, Novartis Greece also admitted that between 2009 and 2010, Novartis Greece made improper payments to health care providers in connection with an epidemiological study that was intended to increase sales of certain Novartis-branded prescription drugs. The epidemiological study was used as a vehicle to make improper payments to the health care providers in order to increase sales of certain Novartis-branded prescription drugs, and Novartis Greece employees recognized that many participating health care providers believed that they were being paid in exchange for writing prescriptions of Novartis products and not for providing data as part of a clinical study.
In furtherance of both schemes, Novartis Greece, through its employees and agents, knowingly and willfully conspired with others to cause Novartis AG to mischaracterize and falsely record improper payments related to the international medical congresses and the epidemiological study in Novartis AG’s books, records, and accounts.
According to its admissions, from 2011 through 2014, Alcon Pte Ltd knowingly and willfully conspired with others to cause Novartis AG to maintain false books, records and accounts, as a result of a scheme to bribe employees of state-owned and state-controlled hospitals and clinics in Vietnam. Specifically, the false books and records resulted from a scheme in which Alcon employees in Vietnam made corrupt payments through a third-party distributor to employees of state-owned and state-controlled hospitals and clinics in Vietnam in order to increase sales of intraocular lenses. Intraocular lenses are artificial replacement lenses that are implanted in the eye as part of a treatment for a variety of ailments such as cataracts. Alcon employees in Vietnam, reimbursed the distributor for up to 50 percent of the cost of the corrupt payments, and these reimbursements were falsely recorded as, among other things, consulting expenses, marketing expenses, and human resource expenses.
As part of the agreement with Novartis Greece, Novartis Greece agreed to continue to cooperate with the U.S. government in any ongoing or future criminal investigations concerning Novartis Greece, its executives, employees, or agents. In addition, under the agreement, Novartis Greece and its parent company, Novartis AG, agreed to enhance their compliance programs and to report to the government on the implementation of their enhanced compliance programs.
As part of the agreement with Alcon Pte Ltd, Alcon Pte Ltd agreed to continue to cooperate with the government in any ongoing or future criminal investigations concerning Alcon Pte Ltd, its executives, employees, or agents. In addition, under the agreement, Alcon Pte Ltd and its parent company, Alcon Inc., agreed to enhance their compliance programs and to report to the government on the implementation of their enhanced compliance programs.
The government reached these resolutions with Novartis Greece and Alcon Pte Ltd based on a number of factors, including the failure to timely disclose the conduct that triggered the investigations; the nature and seriousness of the offenses, which spanned multiple years and involved high level employees; the lack of an effective compliance and ethics program at the time of the misconduct; and credit for each company’s respective cooperation. The companies also engaged in remedial measures, including terminating and disciplining individuals who orchestrated the misconduct, adopting heightened controls and anti-corruption protocols, and significantly increasing the resources devoted to compliance.
The criminal monetary penalty for Novartis Greece reflects a 25 percent reduction off a point near the midpoint of the U.S. Sentencing Guidelines range because, although Novartis Greece fully cooperated and remediated, its parent company Novartis AG was involved in similar conduct for which it previously reached a resolution with the SEC in March 2016.
The criminal monetary penalty for Alcon Pte Ltd reflects a 25 percent reduction off the bottom of the U.S. Sentencing Guidelines fine range because of Alcon Pte Ltd’s full cooperation with the government’s investigation.
In a related matter with the SEC, Novartis AG agreed to pay the SEC disgorgement and prejudgment interest totaling approximately $112 million for the conduct in Greece and Vietnam, as well as additional conduct.
The FBI’s Garrett Mountain, New Jersey Field Office is investigating the case. Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section and Senior Trial Counsel Bernard J. Cooney and Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Health Care Fraud Unit are prosecuting the case.
The department appreciates the assistance of the Criminal Division’s Office of International Affairs and the significant cooperation provided by the SEC in this case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
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.
Novartis AG and Subsidiaries to Pay $345 Million to Resolve Foreign Corrupt Practices Act CasesRead the Press Release
NEWARK, N.J. – Switzerland-based global pharmaceutical company Novartis AG and a current and former subsidiary will pay $345 million in criminal and regulatory penalties to resolve violations of the Foreign Corrupt Practices Act (FCPA), U.S. Attorney Craig Carpenito, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and FBI Acting Special Agent in Charge Douglas Korneski, Newark Field Office, announced today.
Novartis Hellas S.A.C.I. (Novartis Greece), a subsidiary of Novartis AG, and Alcon Pte Ltd, a former subsidiary of Novartis AG and current subsidiary of Alcon Inc., a multinational eye care company, have agreed to pay $233 million in criminal penalties to resolve the Department’s investigation into FCPA violations. The resolutions arise out of a Novartis Greece scheme to bribe employees of state-owned and state-controlled hospitals and clinics in Greece and to falsely record improper payments relating to the corrupt scheme and similar conduct, and an Alcon Pte Ltd scheme to make and falsely record improper payments in Vietnam. Novartis AG has also agreed to pay $112 million to the U.S. Securities and Exchange Commission (SEC) in a related matter.
Novartis Greece entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of New Jersey in connection with a criminal information filed today in the District of New Jersey charging Novartis Greece with one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of conspiracy to violate the books and records provision of the FCPA. Pursuant to the deferred prosecution agreement, Novartis Greece has committed to pay a criminal penalty of $225 million.
Alcon Pte Ltd, a subsidiary of Novartis AG at the time of the misconduct, separately entered into a deferred prosecution agreement in connection with a criminal information filed today in the District of New Jersey charging Alcon Pte Ltd with conspiracy to violate the books and records provision of the FCPA. Pursuant to the deferred prosecution agreement, Alcon Pte Ltd has committed to pay a criminal penalty of approximately $8.9 million.
“The agreement we’re announcing today shows that there will be a heavy price paid by companies that violate our laws, whether at home or overseas,” U.S. Attorney Carpenito said. “Just as importantly, it includes a framework for compliance reforms that should ensure that these companies conduct their business legally moving forward.”
“Novartis AG’s subsidiaries profited from bribes that induced medical professionals, hospitals, and clinics to prescribe Novartis-branded pharmaceuticals and use Alcon surgical products, and they falsified their books and records to conceal those bribes,” Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division said. “The resolutions announced today reflect the paramount importance of effective compliance programs and the department’s commitment to holding companies accountable when they fall short.”
“The FBI is committed to fighting any corrupt acts that adversely impact our economy, our citizenry, or our way of life,” Acting Special Agent in Charge Douglas Korneski said. “I say this to every company doing business on the stock exchange – if you think you can ignore the rules or make up your own, if your business model includes bribery or a quid pro quo, you can count the days until we show up on your company's doorstep. We will protect our citizens, our economy, our way of life, and bring to justice anyone who breaks the law.”
According to its admissions:
Between 2012 and 2015, Novartis Greece conspired with others to violate the FCPA by engaging in a scheme to bribe employees of state-owned and state-controlled hospitals and clinics in Greece in order to increase the sale of Novartis-branded pharmaceutical products. Novartis Greece paid for those employees to travel to international medical congresses, including events held in the United States, as a means to bribe these officials in exchange for increasing the number of prescriptions they wrote for Lucentis, a prescription drug that Novartis Greece sold. Novartis Greece employees traveled to the United States facilitated the provision of the improper benefits to publicly employed Greek health care providers.
Novartis Greece also admitted that between 2009 and 2010, Novartis Greece made improper payments to health care providers in connection with an epidemiological study that was intended to increase sales of certain Novartis-branded prescription drugs. The epidemiological study was used as a vehicle to make improper payments to the health care providers in order to increase sales of certain Novartis-branded prescription drugs, and Novartis Greece employees recognized that many participating health care providers believed that they were being paid in exchange for writing prescriptions of Novartis products and not for providing data as part of a clinical study.
Novartis Greece, through its employees and agents, knowingly and willfully conspired with others to cause Novartis AG to mischaracterize and falsely record improper payments related to the international medical congresses and the epidemiological study in Novartis AG’s books, records, and accounts.
From 2011 through 2014, Alcon Pte Ltd knowingly and willfully conspired with others to cause Novartis AG to maintain false books, records and accounts, as a result of a scheme to bribe employees of state-owned and state-controlled hospitals and clinics in Vietnam. The false books and records resulted from a scheme in which Alcon Pte Ltd made corrupt payments through a third-party distributor to employees of state-owned and state-controlled hospitals and clinics in Vietnam in order to increase sales of intraocular lenses. Intraocular lenses are artificial replacement lenses that are implanted in the eye as part of a treatment for a variety of ailments, such as cataracts. Alcon employees in Vietnam, with the approval of executives and employees of Alcon Pte Ltd, reimbursed the distributor for up to 50 percent of the cost of the corrupt payments, and these reimbursements were falsely recorded as, among other things, consulting expenses, marketing expenses, and human resource expenses.
As part of the agreement, Novartis Greece agreed to continue to cooperate with the government in any ongoing or future criminal investigations concerning Novartis Greece, its executives, employees, or agents. Novartis Greece and its parent company, Novartis AG, agreed to enhance their compliance programs and to report to the government on the implementation of their enhanced compliance programs.
Alcon Pte Ltd agreed to continue to cooperate with the government in any ongoing or future criminal investigations concerning Alcon Pte Ltd, its executives, employees, or agents. Alcon Pte Ltd and its parent company, Alcon Inc., agreed to enhance their compliance programs and to report to the government on the implementation of their enhanced compliance programs.
The government reached these resolutions with Novartis Greece and Alcon Pte Ltd based on a number of factors, including: the failure to timely disclose the conduct that triggered the investigations; the nature and seriousness of the offenses, which spanned multiple years and involved high level employees; the lack of an effective compliance and ethics program at the time of the misconduct; and credit for each company’s respective cooperation. The companies also engaged in remedial measures, including terminating and disciplining individuals who orchestrated the misconduct, adopting heightened controls and anti-corruption protocols, and significantly increasing the resources devoted to compliance.
The criminal penalty for Novartis Greece reflects a 25 percent reduction off a point near the midpoint of the U.S. Sentencing Guidelines range because, although Novartis Greece fully cooperated and remediated, its parent company Novartis AG was involved in similar conduct for which it previously reached a resolution with the SEC in March 2016.
The criminal penalty for Alcon Pte Ltd reflects a 25 percent reduction off the bottom of the U.S. Sentencing Guidelines fine range because of Alcon Pte Ltd’s full cooperation with the government’s investigation.
In a related matter with the SEC, Novartis AG agreed to pay the SEC disgorgement and prejudgment interest of $112 million for the conduct in Greece and Vietnam, as well as additional conduct.
The government is represented by Senior Trial Counsel Bernard J. Cooney and Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Health Care Fraud Unit, District of New Jersey, and Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section.
The FBI’s Garrett Mountain, New Jersey Field Office is investigating the case. The Department appreciates the assistance of the FBI Legal Attaché in Athens, Greece, the Office of International Affairs and the significant cooperation provided by the SEC in this case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
North Central Iowa Methamphetamine Dealer Sentenced to Federal PrisonRead the Press Release
A Lakota, Iowa methamphetamine dealer was sentenced today to 14 years in federal prison.
Christopher Paul Hanson, age 30, from Lakota, IA received the prison term after a guilty plea to conspiracy to distribute at least 1,500 grams of pure methamphetamine and possession of a firearm by a drug user.
In a plea agreement, Hanson admitted to distributing at least 1,500 grams of pure methamphetamine in and around North Central Iowa. In September 2018, a vehicle was stopped and in the vehicle was approximately ten pounds of methamphetamine, part of which was packaged for delivery to Hanson for re-distribution. On September 26, 2018, Hanson’s residence was searched pursuant to a search warrant. Law enforcement seized drug paraphernalia, drug packaging materials, drug ledgers, marijuana, methamphetamine, and guns, including a rifle and a pistol, along with ammunition for both guns.
Hanson was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hanson was sentenced to 168 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.
Hanson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Iowa Division of Narcotics Enforcement, Kossuth County Sheriff’s Office, and the North Central Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3057.
Follow us on Twitter @USAO_NDIA.
North Carolina Based Cartel Manager Pleads Guilty to Heroin and Methamphetamine Trafficking ConspiracyRead the Press Release
NORFOLK, Va. – A High Point, North Carolina woman pleaded guilty today to her role in an international drug-trafficking organization.
According to court documents, Vanessa Garcia, 34, was the manager of a Mexican-based drug cartel’s North Carolina distribution point for heroin and methamphetamine. She maintained a drug premises in High Point, where she stored wholesale amounts of drugs and recruited and supervised co-conspirators who trafficked the drugs and drug proceeds to communities outside the state, including to Hampton Roads. Three of her co-conspirators were arrested in Virginia Beach in possession of roughly one kilogram of heroin and one kilogram of methamphetamine, which they had transported from Garcia’s stash house at her direction. Garcia was arrested late last year in Detroit with 700 grams of heroin in her possession. After pleading guilty and being sentenced there, she was transferred to federal custody here to face this conspiracy charge.
Garcia pleaded guilty to conspiring to distribute and possess with intent to distribute one kilogram or more of heroin and 50 grams or more of methamphetamine. Garcia faces a mandatory minimum penalty of ten years and a maximum of life in prison when sentenced on Oct. 26, 2020. 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.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF), Operation Fallen Angel. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Anthony F. Zucaro, Jr., Interim Chief of Virginia Beach Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney William B. Jackson is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-22.
New Orleans Man Sentenced in Credit Card Fraud ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ANTOINE NARCISSE, age 24, a resident of New Orleans, was sentenced today to 18 months in prison by U.S. District Judge Barry W. Ashe for conspiracy to commit access device fraud.
According to court documents, NARCISSE and the other defendants engaged in a scheme to obtain merchandise and cash from stores through fraud. The defendants obtained stolen credit and debit card information, encoded it onto cards, and then used that information to purchase items at stores. The defendants would then return the items at a different store of the same chain, but they would deceive store workers in order to have the chargeback credited to their own own bank accounts. Court documents also detail how NARCISSE took flights with two other co-conspirators to perform fraudulent credit card transactions in various cities in the United States, including Portland, Oregon; Milwaukee, Wisconsin; and Cincinnati, Ohio. NARCISSE was also arrested in Minnetonka, Minnesota, and Franklin, Tennessee, while committing credit card fraud.
In addition to the sentence of 18 months in prison, NARCISSE was sentenced to two years of supervised release.
U.S. Attorney Strasser praised the agencies that contributed to this conviction, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, U.S. Postal Inspection Service, Louisiana Attorney General’s Office, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Louisiana State Police, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John The Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, Internal Revenue Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. U.S. Attorney Strasser also thanked the Franklin (TN) Police Department, the Mobile Police Department, the Gulfport Police Department, the Minnetonka (MN) Police Department, the Jefferson Parish District Attorney’s Office, and the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorneys Matthew R. Payne and K. Paige O’Hale are in charge of the prosecution.
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New Jersey Man Arrested for Receiving Child Pornography and Concealing Objects to Impede FBI InvestigationRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was charged today with allegedly receiving files depicting child sexual abuse and concealing objects to impede the FBI’s investigation, U.S. Attorney Craig Carpenito announced.
Charles F. Browne, 52, of South River, New Jersey, is charged by complaint with one count of receiving child pornography and one count of concealing an object to impede a federal investigation. He is scheduled to appear today by videoconference before U.S. Magistrate Judge Joseph A. Dickson.
According to documents filed in this case and statements made in court:
In September 2017, Dropbox Inc. noticed that child pornography had been uploaded to a Dropbox account with the screen name “Charles Browne” and an email address containing the term “cbrowne.” The FBI obtained the files that were uploaded to the Dropbox account, which included prepubescent child sexual abuse and a resume for Browne.
On April 8, 2019, law enforcement approached Browne, as he left his then-residence in Tom’s River, New Jersey, to interview him about an ongoing investigation. Subsequent to the interview, he disposed of items in the Kettle Creek, a coastal waterway.
On April 12, 2019, the Ocean County Sherriff’s Office deployed a drone at the end of the Pier and located an object of interest. FBI divers were deployed and recovered an iPad and iPhone, both of which had been previously registered with Browne’s Apple iCloud account.
Further review of the recovered devices indicated they had been at Brown’s residence and near a body of water north of Bay Terrace Road. One had been at the location where his care was pulled over. The recovered iPad contained videos depicting prepubescent child sexual abuse and emails to and from accounts linked to Browne.
The count of receipt of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and fine of $250,000. The count of concealing objects to impede a federal investigation count carries a maximum penalty of 20 years in prison and a fine of $250,000.
U.S. Attorney Carpenito credited special agents with the FBI Newark Child Exploitation Human Trafficking Task Force, under the direction of Acting Special Agent in Charge Douglas Korneski, with the investigation leading to today’s charges. He also thanked the FBI New York Underwater Search & Evidence Response Team, under the direction of Assistant Director in Charge William Sweeney, the FBI Laboratory Division, under the direction of Assistant Director G. Clayton Grigg, the Middlesex County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Kuberiet, the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, the Monmouth County Sheriff’s Office, under the direction of Sheriff Shaun Golden, the Ocean County Sheriff’s Office, under the direction of Sheriff Michael G. Mastronardy, the Toms River Police Department, under the direction of Chief Mitchell Little, and the South River Police Department, under the direction of Chief Mark Tinitigan, for their assistance in this investigation.
The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the U.S. Attorney’s Office’s Cybercrime Unit in Newark, New Jersey.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New Haven Man Sentenced to 30 Months in Federal Prison for Drug and Gun OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JESUS SEGUINOT, also known as “Chuchi,” 30, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 30 months of imprisonment, followed by three years of supervised release, for drug distribution and gun possession offenses.
According to court documents and statements made in court, on March 16, 2018, New Haven Police officers executed a state search warrant at Seguinot’s apartment on Congress Avenue and seized approximately 65 grams of cocaine, approximately 114 grams of marijuana, other items used to process and package drugs for distribution, and $5,480 in cash. Seguinot was arrested on state charges at that time.
On April 20, 2018, Stamford Police officers arrested Seguinot in Stamford after they found him in possession approximately 80 grams of cocaine and crack cocaine, a quantity of marijuana, a digital scale, drug packaging materials, and $1,613 in cash.
On May 17, 2018, a search of Seguinot’s new residence on Stevens Street in New Haven revealed approximately 20 grams of crack cocaine, drug packaging materials, a scale with white residue, a .38 caliber bullet on his bedroom nightstand, and a loaded .38 Special Taurus revolver with an obliterated serial number. He was arrested on state charges on May 26, 2018.
Prior to May 2018, Seguinot had been convicted in state court of felony drug, weapon and other offenses. 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.
On July 22, 2018, Seguinot sold a quantity of cocaine to another individual for $20 on Liberty Street in New Haven. He was arrested on state charges on July 27, 2018.
Seguinot has been detained since his federal arrest on April 11, 2019. On November 14, 2019, he pleaded guilty to one count of possession with intent to distribute cocaine, and one count of possession of a firearm by a convicted felon.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, New Haven Police Department and Stamford Police Department. The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
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.
NDTX Roundup: June 13-20Read the Press Release
GUILTY PLEA – DALTON HARRIS
On June 16, Dalton Harris, 21, pled guilty to making a false statement to a firearms dealer. Harris visited a local firearms deal to purchase a Ruger AR-556 rifle. To purchase the rifle, Harris made fictitious statements intended to deceive the firearms dealer into believing that he was the actual transferee or buyer of the firearm. Harris faces up to 57 months in federal custody for his crimes. This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and is prosecuted by Assistant U.S. Attorney Rebekah Ricketts.
GUILTY PLEA – JESSE KLU
On June 16, Jesse Klu, 33, pled guilty to possession with intent to use unlawfully five or more false identification documents. During a search warrant executed at Klu’s residence, agents discovered multiple passports and driver’s licenses all displaying Klu’s photograph, each counterfeit and not lawfully issued by the purported government entity. Klu admits to using the counterfeit identification to establish accounts at United States financial institutions. He faces up to 5 years in federal custody for his crimes. This case was investigated by Diplomatic Security Services and Department of Homeland Security and is prosecuted by Assistant U.S. Attorney Gregory Martin.
GUILTY PLEA – MONEE WILLIAMS
On June 18, Monee Williams, 34, pled guilty to conspiracy to transport stolen money, securities, and goods in interstate commerce. Williams worked at a national alarm company where she had access to the alarm codes of customers. Williams unlawfully provided the alarm codes of small businesses her co-conspirators in exchange for money. Her co-conspirators used the alarm codes to break into the businesses to steal cash and other items of value. The losses caused by the burglaries was valued at more than $550,000. Williams faces up to 5 years in federal custody for her crimes. This case was investigated by the Federal Bureau of Investigation and is prosecuted by Assistant U.S. Attorney Ryan Raybould.
GUILTY PLEA – GEOVANNI AARON LUNA
On June 18, Geovanni Aaron Luna, 22, pled guilty to possession of an unregistered firearm silencer. Luna was pulled over in Garland, Texas for a traffic offense. During the traffic stop, troopers uncovered a homemade silencer created from a modified fuel filter with an aluminum tube and threaded adapter to fit his .22 caliber pistol. Luna admitted that the silencer was not registered to in the National Firearms Registration and Transfer Record. Luna faces up to 10 years in federal custody for his crimes. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Texas Department of Public Safety and is prosecuted by Assistant U.S. Attorney Abe McGlothin.
GUILTY PLEA – TIFFANY LANE
On June 18, Tiffany Lane, 44, pled guilty to destruction of mail. While an employee of the United States Postal Services, Lane began stealing mail by targeting credit cards from customers on the routes she worked. Lane admitted to providing the credit cards to another unauthorized individual after stealing them from her mail route. Lane faces up to 5 years in federal custody for her crimes. This case was investigated by the United States Postal Service Office of the Inspector General and was prosecuted by Assistant U.S. Attorney Jennifer Bray.
Mountaintop Man Sentenced to 169 Months’ Imprisonment for Money Laundering ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jonathan Jacome, age 30, of Mountain Top, Pennsylvania, was sentenced on June 23, 2020, to 169 months’ imprisonment by United States District Court Judge Robert D. Mariani for money laundering conspiracy.
According to United States Attorney David J. Freed, Jacome was a leader and organizer in a sophisticated scheme that used stolen identities to file fraudulent tax returns in 2011 and 2012, and obtained over $7.7 million in fraudulent federal tax refunds. Jacome opened three check cashing businesses in Luzerne County solely to carry out the fraud scheme, and through which he processed the fraudulently obtained Treasury checks. Jacome pleaded guilty pursuant to a plea agreement with the government to a single count of money laundering conspiracy. As part of that agreement, Jacome admitted that he committed the underlying crimes of theft of public money, wire fraud, and bank fraud.
Jacome also conspired with others to present false testimony to a federal grand jury investigating the scheme. The fabricated testimony was intended to hide the fact that Jacome used stolen funds to purchase a house in Mountaintop, and to otherwise shield Jacome from criminal liability. Jacome’s sentence reflected an enhancement for the obstruction.
Judge Mariani cited the widespread scope of the criminal activity, the degree of dishonesty involved during the scheme and after, and the extensive and intricate efforts to conceal the crimes in imposing the 169-month sentence. Jacome was also ordered to pay over $7.7 million in restitution and must forfeit certain properties acquired with stolen funds.
The case was investigated by the U.S. Internal Revenue Service and the Hazelton City Police Department. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
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Mission Man Indicted on Meth, Gun, and Child Abuse ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine, Possession of a Firearm by a Prohibited Person, and Child Abuse.
Colt Shaw, age 30, was indicted on March 9, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 22, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in federal prison and/or a $5,000,000 fine, at least 4 years of supervised release, and $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at time unknown but no later than on or about January 1, 2019, and continuing to on or about March 9, 2020, Shaw conspired to distribute 50 grams or more of methamphetamine on and around the Rosebud Sioux Indian reservation. Further, on or about November 9, 2019, and July 7, 2019, Shaw, knowing he was an unlawful user of and addicted to a controlled substance, knowingly possessed several firearms. Finally, on or about July 7, 2019, Shaw abused, exposed, tortured, tormented, and cruelly punished a child who had not attained the age of seven.
The charges are merely accusations and Shaw is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017, as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Shaw was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Middletown Used Car Dealer Sentenced to 27 Months in Federal Prison for Defrauding LendersRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GEORGE HAJATI, 41, of Cromwell, was sentenced today by U.S. District Judge Robert N. Chatigny to 27 months of imprisonment, followed by five years of supervised release, for operating an auto loan fraud scheme while he was on federal supervised release from a prior federal conviction. Judge Chatigny also ordered Hajati to serve the first six months of his supervised release in home confinement, and to perform 120 hours of community service.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, Hajati owned and operated a used car dealership located at 1075 Newfield Street in Middletown known as Car Nation, LLC, Car Nation CT, LLC, and Middletown Motorcars. In connection with automobile loan applications for multiple borrowers, Hajati, and employees at his direction, submitted documents and statements to victim lenders that falsely represented the borrower’s employment, salary, sources of income, and the fact and amount of a down payment. The false documents included fictitious or altered borrower pay stubs and income verification letters purportedly from the Social Security Administration. Hajati falsely indicated that borrowers made salaries they did not make, worked at jobs they did not work, received income from the Social Security Administration they did not receive, and made down payments they did not make. In some instances, the borrower was not aware of, and did not consent to, Hajati using his or her personal identifying information to obtain automobile loans in these ways.
Between approximately April 2016 and July 2019, Hajati defrauded victim lenders of $654,952.56 through this scheme. Hajati is required to pay full restitution.
Hajati was arrested on a federal criminal complaint on July 2, 2019. On December 20, he pleaded guilty to one count of wire fraud.
Hajati was previously convicted of federal conspiracy and fraud offenses related to a Hartford-area mortgage fraud scheme that defrauded various lenders of more than $1 million. In August 2015, Hajati was sentenced in Hartford federal court to 12 months and one day of imprisonment, followed by three years of supervised release. He was released from federal prison in August 2016, and was on supervised release at the time of the auto loan fraud.
Hajati’s supervised release hearing is scheduled for June 29, at which time he faces a maximum additional sentence of two years of imprisonment.
Hajati who is released on a $560,000 bond, is required to report to prison on September 25, 2020.
This matter is being investigated by the Federal Bureau of Investigation and the Social Security Administration Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys David T. Huang and Conor M. Reardon.
Mexican National Sentenced for Illegally Entering the U.S. for the Seventh TimeRead the Press Release
KANSAS CITY, Mo. – A Mexican national who was arrested for drunk driving after illegally entering the United States for the seventh time was sentenced in federal court today.
Martin Triana-Perez, 38, was sentenced by U.S. District Judge Brian C. Wimes to three years in federal prison without parole.
On Oct. 9, 2019, Triana-Perez pleaded guilty to illegally reentering the United States after deportation subsequent to a felony conviction.
Triana-Perez was arrested by Kansas City police officers on Aug. 19, 2019, for driving while intoxicated. Officers responded to a report that Triana-Perez and another person were in a parked vehicle, creating a disturbance at the park. When officers arrived they saw open containers of alcohol in Triana-Perez’s vehicle and instructed them to leave the park on foot. A short time later they saw Triana-Perez driving the vehicle and conducted a traffic stop. This was Triana-Perez’s third drunk driving arrest.
Triana-Perez, who has been deported from the United States six times prior to this case, has four prior felony convictions for illegally reentering the United States.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Members of the Mac Baller Brims Gang Charged with MurderRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), Peter C. Fitzhugh, Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Raymond P. Donovan, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), today announced a Superseding Indictment in United States v. Lawrence, et al. 19 Cr. 761 (JPO). In the initial indictment, unsealed on October 24, 2019, 13 defendants were charged in connection with the activities of the Mac Baller Brims gang that operated in and around the Mount Hope section of the Bronx between 2017 and 2019. In the Superseding Indictment, defendants DERRICK CASADO, a/k/a “Big Bank,” a/k/a “Papa D,” and CARLOS ROSARIO, a/k/a “Baby Bottle,” a/k/a “Carlito,” a/k/a “Barlito,” a/k/a “Barlos,” are charged with offenses relating an October 5, 2019 robbery in Manhattan, during which ROSARIO shot and killed Jonathan Rodriguez, 27. A racketeering conspiracy charge was added against defendant JUAN TEJEDA, a/k/a “Gotti.” The case is proceeding before U.S. District Judge J. Paul Oetken.
Acting U.S. Attorney Audrey Strauss said: “As charged in the Superseding Indictment, Carlos Rosario and Derrick Casado were responsible for the murder of Jonathan Rodriguez. This is one of many acts of violence alleged to have been committed by members and associates of the Mac Baller Brims gang. Thanks to the outstanding work of our law enforcement partners at the NYPD, HSI, and DEA, Rosario and Casado now face federal charges for murder.”
Police Commissioner Dermot Shea said: “Today’s indictment reflects our continued focus on keeping criminal gangs off the city’s streets. I thank our NYPD detectives, agents, and prosecutors for their sustained work on this case.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “Members of the Mac Baller Brims allegedly brandished firearms and fired those guns in order to preserve their territory and protect their illicit business. As alleged, in this case, gang members Derrick Casado and Carlos Rosario are charged with murder, after having shot and killed Jonathan Rodriguez in a Manhattan robbery. HSI New York’s strong partnerships with the NYPD and DEA, and the continued collaboration in criminal investigations, has led to the arrest of these two individuals and they will now face the consequences for their alleged deadly act.”
DEA Special Agent in Charge Raymond P. Donovan said: “With many acts of violence alleged to be committed by members of the Mac Baller Brims Gang – none were as savage as the murder of Jonathan Rodriguez. Gang violence threatens the safety of New Yorkers and puts communities in the crosshairs of drug trafficking and drug-related crime. I applaud our partners at the US Attorney’s Office, the NYPD, and HSI for their diligent work.”
According to the allegations in the Superseding Indictment[1]:
The Mac Baller Brims was a criminal enterprise, and its members and associates committed numerous acts of violence, including shootings, in and around the Bronx. They engaged in such acts to preserve and protect their power, territory, and profits, and to promote and enhance the gang and its criminal activities. Members of the gang also enriched themselves by committing robberies and by selling drugs, such as crack cocaine, heroin, fentanyl, cocaine, oxycodone, and marijuana, including in New York and in Maine. While conducting their drug business, members and associates of the gang used, carried, and possessed firearms, and members of the gang brandished and fired those guns on multiple occasions since 2017.
On October 5, 2019, CASADO and ROSARIO robbed two victims in the vicinity of 20 East 116th Street in New York, New York, and in the course of that robbery and the immediate flight therefrom, ROSARIO shot and killed a third victim, Jonathan Rodriguez. The Superseding Indictment charges CASADO and ROSARIO with one count of assault in aid of racketeering, and aiding and abetting the same; one count of brandishing a firearm, and aiding and abetting the same; one count of murder in aid of racketeering, and aiding and abetting the same; and one count of murder through use of a firearm, and aiding and abetting the same. CASADO and ROSARIO face a maximum sentence of life in prison.
In addition, the Superseding Indictment charges JUAN TEJEDA with conspiring to conduct and participate in the conduct and affairs of the Mac Ballers enterprise through a pattern of racketeering activity. The maximum sentence for this charge is life in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding work of the NYPD, HSI, and DEA on this investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Frank Balsamello and Jamie Bagliebter are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Mechanicsburg Man Sentenced to Two Years’ Probation for Depositing over A Million Dollars in Cash to Avoid Bank Reporting RequirementsRead the Press Release
HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kenneth Hoffman, age 57, of Mechanicsburg, Pennsylvania,
was sentenced on June 23, 2020, by United States District Court Judge Christopher C. Conner to two years’ probation and to pay a $9,700 fine for structuring cash deposits.
According to United States Attorney David J. Freed, between 2014 and 2017, Hoffman deposited over $2 million in cash into various bank accounts which were just below $10,000 to avoid having his cash deposits reported to federal authorities.
Judge Conner recognized the remedial steps Hoffman took since the IRS began their investigation in 2017. When the IRS initiated the case, Hoffman worked closely with outside professionals to reform his business practices. In addition, he has filed amended returns with appropriate taxing authorities to remedy prior deficiencies.
The case was investigated by the Internal Revenue Service. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
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Manchester Man Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD – Eddil Ortez, 26, of Manchester, pleaded guilty in federal court to attempted possession of fentanyl and cocaine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, beginning around December of 2017, a drug organization in Lawrence, Massachusetts maintained a series of telephone numbers to receive orders and distribute controlled substances, primarily fentanyl and crack cocaine. In early 2019, law enforcement officers began conducting judicially-authorized interception of communications occurring over a phone number used by the organization.
On June 19, 2019, law enforcement officers executed search warrants at locations known to be used by the organization, arrested the person believed to have been operating the phone, and seized the phone. To further identify and arrest those who were distributing drugs, the officers, pretending to be members of the drug organization, used the seized phone to communicate with individuals who were obtaining drugs from the organization.
During the evening of June 20, 2019, messages were exchanged between the seized phone and a phone belonging to Ortez. Ortez attempted to order quantities of crack cocaine and fentanyl from the organization. Ortez was directed to a parking lot in Nashua. After he provided the description of his car and his clothing, he was told to leave the drug money in the center console of the car. Investigating officers observed the car identified by Ortez arrive at the agreed-upon time for the deal. Ortez then left the car and walked toward a retail store. The officers sent a message to Ortez saying “you are all set.” Ortez returned to the car and was arrested. Ortez was in possession of the telephone that was used to arrange the drug deal.
Ortez will be sentenced on October 1, 2020.
“Interstate trafficking organizations make fentanyl, cocaine, and other dangerous drugs available for purchase in New Hampshire,” said U.S. Attorney Murray. “The results have been disastrous. Federal law enforcement agencies are working closely with all of our state and local partners to stop this deadly trade. Traffickers should be aware that they will be caught and prosecuted.”
This matter was investigated by the Drug Enforcement Administration, Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Massachusetts State Police, Methuen Police Department, Andover, Massachusetts Police Department, Essex County Sheriff’s Office, New Hampshire State Police, Manchester Police Department, Nashua Police Department, Salem Police Department, Rockingham County Sheriff’s Office, Hudson Police Department, and the Goffstown Police Department. The case was prosecuted by Assistant U.S. Attorney Seth Aframe.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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