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Thursday 5 March 2020
Grand Jury Indicts Illegal Alien Felon on Charge of Illegal Re-entryRead the Press Release
SPRINGFIELD, Ill. – The federal grand jury has returned an indictment that charges Javier Alva-Cuella, 37, of Mexico, with illegal re-entry to the United States after prior deportations. As alleged in the indictment, Alva-Cuella was deported following conviction in Muscogee County, Ga., for aggravated assault, home invasion, and possession of a firearm during the commission of a crime.
According to the indictment, Alva-Cuella, aka Javier Cuellar, was previously deported and removed from the U.S. on Sept. 23, 2019, and again on Dec. 30, 2019.
Alva-Cuella was arrested in Morgan County, Ill., on Feb. 10, 2020, and remains in the custody of the U.S. Marshals Service.
If convicted, Alva-Cuella faces a maximum statutory penalty of up to 20 years in prison for illegal re-entry following deportation with a prior qualifying conviction.
Assistant U.S. Attorney Tanner K. Jacobs is representing the government in the prosecution. U.S. Immigration and Customs Enforcement Homeland Security Investigations conducted the investigation.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Grand Jury Charges Decatur Man with Child Sex CrimesRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury has indicted Courtney Williams, 30, of Decatur, Ill., on charges of child sexual exploitation. Specifically, the indictment charges Williams with enticement of a minor, attempted sexual exploitation of children, and sex trafficking of children, specifically a child under the age of 14, to engage in a commercial sex act.
Williams was arrested on Feb. 7, 2020, and charged by criminal complaint. Williams made his initial appearance in federal court in Urbana on Feb. 10, and was ordered detained in the custody of the U.S. Marshals Service.
The indictment alleges that for the time period between Jan. 17 and Jan. 25, 2020, Williams used the internet and a cell phone to entice the minor to engage in sexual activity for which a person can be charged with a criminal offense, aggravated criminal sexual abuse.
According to the affidavit filed in support of the criminal complaint, Williams portrayed himself as a 17-year-old male while communicating online with the minor girl by Snapchat and text, including the TextNow application. During these communications, Williams solicited the girl to send him sexually explicit photos and to meet him to engage in sexual activity.
The affidavit alleges that Williams picked up the minor in his vehicle on the evening of Jan. 24, 2020, and took her to his residence where he gave her drugs which caused her to lose consciousness. While the minor girl was unconscious, Williams sexually assaulted her.
If convicted, for enticement of a minor, the penalty is 10 years to life in prison; for attempted sexual exploitation of a child, the penalty is 15 to 30 years in prison; and, for sex trafficking of children, Williams faces a penalty of 15 years to life in prison.
The government is represented by Assistant U.S. Attorney Elly M. Peirson in the prosecution. The charges are the result of investigation by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Decatur Police Department.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
This case is prosecuted as part of Project Safe Childhood, a nationwide Department of Justice initiative to combat child sexual exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Four Indicted for Attempting to Rob Capital One ATMRead the Press Release
NEW ORLEANS, LOUISIANA – THEODORE KEYS, age 40, a resident of New Orleans; TYRIK SCOTT, age 20, a resident of Chalmette; JUSTIN PIERCE, age 22, a resident of Slidell; and BRISHUN GARY, age 18, a resident of New Orleans, were indicted for conspiracy to commit bank larceny, announced U.S. Attorney Peter G. Strasser.
According to the indictment, on or about February 5, 2020, KEYS, SCOTT, PIERCE, and GARY attempted to break into an ATM located in the drive-through of a Capital One Bank using sledgehammers, crowbars, chains, and a truck. If convicted, the defendants face a maximum sentence of 5 years imprisonment, a $250,000 fine, one year of supervised release, and a $100 special assessment.
United States Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor of the General Crimes Unit.
Founder of Russian Bank Charged with Tax FraudRead the Press Release
The founder of a Russian bank was arrested last week in London in connection with an indictment charging him with filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney David L. Anderson for the Northern District of California, and Internal Revenue Service (IRS) Criminal Investigation, Special Agent in Charge Kareem Carter. The Sept. 26, 2019, indictment was unsealed today.
According to the indictment, Oleg Tinkov was the indirect majority shareholder of a branchless online bank that provided its customers with financial and bank services. The indictment alleges as a result of an initial public offering (IPO) on the London Stock Exchange in 2013, Tinkov beneficially owned more than $1 billion worth of the bank’s shares. The indictment further alleges that three days after the IPO, Tinkov renounced his U.S. citizenship – a taxable event requiring Tinkov to report to the IRS the constructive sale of his worldwide assets, report the gain on the constructive sale of those assets to the IRS, and pay tax on such gain to the IRS. Although Tinkov allegedly beneficially owned more than $1 billion of TCS shares at the time of his expatriation through a British Virgin Island structure, the indictment charges that Tinkov filed a false 2013 tax return with the IRS that reported income of less than $206,000, and a false 2013 Initial and Annual Expatriation Statement reporting that his net worth was $300,000.
If convicted, Tinkov faces a maximum sentence of three years in prison on each count. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Trial Attorney Christopher S. Strauss of the Tax Division and Assistant U.S. Attorneys Michelle J. Kane and Katherine Lloyd-Lovett , are prosecuting the case with the assistance of Katie Turner and Rebecca Shelton. The prosecution is the result of an investigation by IRS–Criminal Investigation. The Criminal Division’s Office of International Affairs of the Justice Department is assisting with the extradition.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Founder of Russian Bank Charged with Tax FraudRead the Press Release
OAKLAND – Oleg Tinkov, the founder of a Russian bank, was arrested in London in connection with an indictment charging him with filing false tax returns, announced U.S. Attorney David L. Anderson, Principle Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and Internal Revenue Service (IRS) Criminal Investigation, Special Agent in Charge Kareem Carter. The indictment issued Sept. 26, 2019, by a federal grand jury, was unsealed following yesterday’s arrest.
According to the indictment, Tinkov was the chairman and beneficial majority shareholder of Tinkoff Credit Systems (TCS), a branchless online bank that provided its customers with financial and bank services. On October 25, 2013, TCS held its initial public offering (“IPO”) on the London Stock Exchange. TCS’s per share price opened at $17.50. The indictment states s that of TCS’s IPO, Tinkov owned, through multiple British Virgin Islands entities, more than 92 million TCS shares, making him the beneficial owner of more than $1 billion worth of TCS shares. The indictment alleges that three days later, on October 28, 2013, Tinkov, a Russian national, renounced his U.S. citizenship. Tinkov’s decision to renounce his citizenship was a taxable event requiring him to report to the IRS the constructive sale of his worldwide assets, report the gain on the constructive sale of those assets to the IRS, and pay tax on such gain to the IRS. According to the indictment, despite knowing he beneficially owned more than $1 billion of TCS shares at the time of his expatriation, Tinkov filed a 2013 U.S. Individual Income Tax Return with the IRS that reported total income of less than $206,000. In addition, Tinkov filed a 2013 Initial and Annual Expatriation Statement reporting his net worth was $300,000. The indictment charges Tinkov with two counts of tax fraud, in violation of 26 U.S.C. § 7206(1).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of three years in prison and a fine of $250,000 for each count. He also faces a period of supervised release, restitution, and monetary penalties. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. The United States is seeking Tinkov’s extradition from the United Kingdom.
Assistant U.S. Attorneys Michelle J. Kane and Katherine Lloyd-Lovett and Trial Attorney Christopher Strauss of the U.S. Department of Justice Tax Division are prosecuting the case with the assistance of Katie Turner and Rebecca Shelton. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation. The Criminal Division’s Office of International Affairs of the Justice Department is assisting with the extradition.
Former Woodson Terrace Police Officer Indicted for Causing Bodily Injury to an IndividualRead the Press Release
St. Louis – A federal grand jury returned an indictment today against a Breckenridge Hills Police Officer (formerly of the Woodson Terrace Police Department) for his conduct in connection with the arrest and assault of an individual. Officer David W. Maas, Saint Louis, was charged with one count of Deprivation of Rights Under Color of Law.
According to the indictment, on April 14, 2019, Officer Maas while with the Woodson Terrance Police Department deprived the victim of his right to be free from unreasonable force. In so doing, Maas kicked and struck the victim while he was compliant and not posing a physical threat to anyone. This offense resulted in bodily injury to this individual.
"Law enforcement officers take an oath to serve and protect the public," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "When an officer betrays that oath, and instead uses his or her position to violate a person's constitutional rights, that officer must be held accountable. Our community, and our profession, deserve no less."
The charge Deprivation of Rights Under Color of Law carries a maximum penalty of ten years in prison, a fine of $250,000, or both imprisonment and a fine.
As is always the case, the charge in an indictment is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
The Federal Bureau of Investigation investigated this case.
Former Local Doctor Pleads Guilty to Illegally Prescribing Controlled SubstancesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that James T. Keefe, 39, of Florida, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiring to possess with intent to distribute, and to distribute, oxycodone, hydrocodone, and amphetamine. The charge carries a maximum penalty of 20 years in prison, and a fine of $1,000,000.
Assistant U.S. Attorneys Timothy C. Lynch and Joshua Violanti, who are handling the case, stated that the defendant was a New York State licensed physician who was previously employed as a contracted physician at the Erie County Medical Center (ECMC), Mercy Hospital of Buffalo, and the Monsignor Carr Institute. Between January 1, 2014, and February 23, 2018, Keefe conspired to divert, and diverted, Schedule II and Schedule IV controlled substances by issuing fraudulent prescriptions to his co-workers, friends, and drug-dealing and drug-using associates, including, co-defendants Benjamin Rivera, Laura Ricotta, Takeya Rainey, and Phousavath Luangrath. These prescriptions were issued without a legitimate medical purpose and outside the usual course of professional practice.
The defendant and co-defendant Rivera have been associates for several years. For nearly five years, Rivera sold cocaine to Keefe, who was active user of cocaine, Adderall, and prescription opiates. In January 2014, the defendant began issuing prescriptions in the names of Rivera and nine of Rivera’s relatives and associates to exchange for cocaine and for a share of the prescribed drugs. Neither Rivera nor any of his relatives or associates were patients of Keefe.
In April 2015, the defendant began issuing prescriptions to Rivera’s girlfriend, co-defendant Laura Ricotta. Keefe also used the names and personal information of six relatives and associates of Ricotta to issue fraudulent prescriptions. Neither Ricotta nor any of her relatives or associates were patients of the defendant. Keefe often drove Ricotta to a pharmacy to a pharmacy to fill the prescriptions, which the two then split.
In the summer of 2017, the defendant began issuing prescriptions to co-defendant Takeya Rainey. Rainey also provided the names of her relatives and associates to Keefe, none of whom were his patients. In exchange for the controlled substances, the defendant sometimes gave Rainey gift or Visa cash cards.
Beginning in January of 2017, Keefe and co-defendant Luangrath were involved in an intimate relationship. At some point, the defendant Luangrath agreed to allow the defendant to issue prescriptions in her name.
Between January 1, 2014, and February 23, 2018, the defendant issued 179 fraudulent prescriptions in his own name and the names of others, for Schedule II and Schedule IV controlled substances.
Rivera, Rainey, and Luangrath were previously convicted. Charges remain pending against Ricotta. The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
Sentencing is scheduled for July 31, 2020, before Judge Vilardo.
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Former International UAW President Charged with Embezzlement, Racketeering, and Tax EvasionRead the Press Release
Gary Jones, the former President of the international United Auto Workers union, was charged today in a Criminal Information with conspiring with other UAW officials to embezzle over $1 million of UAW dues money, to furthering racketeering activity, and to evading taxes announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Gary Jones, 62, of Canton, Michigan, is charged with conspiring to embezzle UAW dues money and conspiring to use a facility of interstate commerce to aid racketeering crimes between 2010 and September 2019. He is also charged with conspiring to defraud the United States by evading the payment of taxes on embezzled funds and causing the UAW to file false tax returns during the same period of time.
Between June 2018 and November 2019, Jones served as the President of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”). The UAW represents over 400,000 active members and over 580,000 retired members in more than 600 local unions across the United States. Prior to serving as UAW President, Jones was the Director of UAW Region 5 and a member of the UAW’s International Executive Board from October 2012 through June 2018. The UAW’s Region 5 is headquartered in Hazelwood, Missouri, and covers the tens of thousands of UAW members in Missouri and the sixteen states to the southwest, including California and Texas.
The Criminal Information charges that Jones conspired with at least six other senior UAW officials in a multiyear conspiracy to embezzle money from the UAW for the personal benefit of Jones and other senior UAW officials. Jones and other UAW officials concealed personal expenditures in the cost of UAW Region 5 conferences held in Palm Springs, California, Coronado, California, and Missouri. Between 2010 and 2018, Jones and other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with Region 5 leadership and training conferences. In truth, however, Jones and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators.
The Information charges that Jones and other senior UAW officials used UAW money to pay for personal expenses, including golf clubs, private villas, cigars, golfing apparel, green fees at golf courses, and high-end liquor and meals costing over $750,000 in UAW funds. For example, in just one of the years of the conspiracy, Jones is charged with ordering over $13,000 in cigars for the use of high-level UAW officials.
Besides using the UAW conferences to conceal the fraudulent use of UAW money for personal expenses, Jones is charged with assisting in a conspiracy to embezzle UAW funds from the UAW’s Midwest CAP. The UAW Midwest CAP is one of the UAW’s many Community Action Programs. Jones is charged with accepting over $60,000 in cash from co-conspirator Edward Robinson who cashed over $500,000 in fraudulent UAW Midwest CAP checks and embezzled money from the UAW Labor Employment Training Corporation.
Besides conspiring with other UAW officials to embezzle UAW funds, Jones is also charged with conspiring with UAW officials to defraud the United States by impeding the Internal Revenue Service in the collection of taxes from Jones and other UAW officials. The conspirators also caused the UAW to file false tax returns with the IRS.
Based on each of the two counts of conspiracy, Jones faces a maximum of five years in prison and a fine of up to $250,000.
A Criminal Information is only a charge and is not evidence of guilt.
Jones is the fourteenth defendant to be charged in connection with the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by FCA executives. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), and former senior UAW official Michael Grimes (28 moths). In addition, the following UAW officials have pleaded guilty and are awaiting sentencing: former UAW Vice President Joseph Ashton, former senior UAW official Jeffrey “Paycheck” Pietrzyk, former UAW Region 5 Director UAW Board member Vance Pearson, and former UAW Midwest CAP President Edward “Nick” Robinson.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“The charges today demonstrate our continuing progress towards restoring honest leadership for the over 400,000 men and women of the UAW,” said United States Attorney Matthew Schneider. “The union’s leaders must be dedicated to serving their members and not serving themselves.”
“An important mission of the Office of Inspector General is to investigate allegations of labor racketeering and corruption within labor unions. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
"While union corruption is not new, each instance slowly undermines the trust members have in their organization. In order for unions to be effective, their members must trust their leadership to do what is best for the entire union and not just for themselves. In this case, that trust has been broken over and over again," said SAC D'Antuono. "While today represents a significant development in this investigation, it does not represent its end. Our work on this case will continue until we are satisfied that everyone who should answer for these crimes is brought to justice."
“Honest and hardworking UAW members are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," Internal Revenue Service – Criminal Investigation Special Agent in Charge Sarah Kull said. "IRS-CI enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others”.
“Today’s information alleges an outrageous abuse of power and misuse of former President Gary Jones’ position of trust to enrich himself and other officers within the UAW at the expense of the UAW’s hardworking members,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “This information leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of union members.”
The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.
Former Biologist Admits to Stealing Hundreds of Thousands of Dollars from San Diego ZooRead the Press Release
Assistant U.S. Attorney Robert S. Huie (619) 546-7053
NEWS RELEASE SUMMARY – March 5, 2020
SAN DIEGO – Matthew John Anderson, a former San Diego Zoo biologist, pleaded guilty in federal court today, admitting he stole hundreds of thousands of dollars from the world-renowned institution.
Anderson worked for the zoo for over 17 years, starting as a research fellow and ultimately serving as the Director of Behavioral Biology for the zoo’s Institute for Conservation Research until the zoo terminated his employment in late 2017.
In his plea agreement, Anderson admitted that over the course of approximately eight years – from December 2008 to October 2016 – he worked to create false invoices in the names of various purported vendors which were presented to the zoo for payment. The zoo paid the invoices, in some cases sending money to accounts controlled by Anderson, and in others sending payments to third parties who kicked back the bulk of the payments to Anderson. Anderson admitted to creating 35 bogus invoices and stealing over $236,000 in total.
U.S. Attorney Robert Brewer praised the work of FBI agents and prosecutor Robert Huie. “We will hold accountable those who seek to steal and defraud, including all those who selfishly steal from our cherished San Diego institutions.”
“When an employee is elevated to a position of leadership, it is a sign of that company’s trust in the integrity and honesty of that person,” said FBI Special Agent in Charge Scott Brunner. “When an employee violates that trust and abuses their position to defraud and steal money for personal benefit, the FBI stands ready to hold them accountable.”
Sentencing is scheduled for June 8, 2020 at 9 a.m. before U.S. District Judge Larry Burns.
DEFENDANT Case No. 20-CR-0812-LAB
Matthew John Anderson Ramona, California Age: 49
SUMMARY OF CHARGES*
Theft or conversion concerning programs receiving federal funds – 18 U.S.C. § 666
Maximum penalty: Ten years in prison and $250,000 fine
AGENCIES
Federal Bureau of Investigation
Federal Jury Convicts Founder and Chairman of a Multinational Investment Company and a Company Consultant of Public Corruption and Bribery ChargesRead the Press Release
A federal jury sitting in Charlotte, North Carolina, has convicted the founder and chairman of a multinational investment company and a company consultant of public corruption and bribery charges, for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions.
Greg E. Lindberg, 49, of Durham, North Carolina, the founder and chairman of Eli Global LLC (Eli Global) and the owner of Global Bankers Insurance Group (GBIG), and Lindberg’s consultant, John D. Gray, 69, of Chapel Hill, North Carolina, were convicted of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds after an approximately three-week trial before U.S. District Judge Max O. Cogburn Jr. A third co-defendant, Eli Global executive John V. Palermo, 64, of Pittsboro, North Carolina, was acquitted by the jury. A fourth co-defendant, Robert Cannon Hayes, 74, of Concord, North Carolina, previously pleaded guilty to making false statements to the FBI.
“Greg Lindberg and John Gray undermined public confidence in our government by promising millions of dollars in campaign contributions in exchange for government decisions to benefit Lindberg’s business interests,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department is grateful for the assistance of the law-abiding public officials who reported the attempted bribes in this case, which allowed us to use all the tools at our disposal to investigate and root out this pernicious and greedy effort to corrupt North Carolina state government.”
“The defendants devised an elaborate plan to make a hefty campaign contribution to an elected official to secure favorable action. This was not a lapse in judgment. It was a deliberate bribery attempt and a clear violation of federal law,” said U.S. Attorney Andrew Murray for the Western District of North Carolina. “Public corruption is a threat to our way of life and if left unchecked it can tear apart the very fabric of our country. My office will continue to diligently ferret out public corruption schemes to protect the public and hold bad actors like these unscrupulous defendants accountable.”
“Greg Lindberg and John Gray plowed across the line from legal political donations to felonious bribery,” said Special Agent in Charge John Strong of the FBI’s Charlotte Field Office. “These men thought they could buy changes to North Carolina Department of Insurance personnel, policies, and procedures to benefit Lindberg's businesses. The FBI will work tirelessly to root out any and all forms of public corruption.”
According to filed court documents, witness testimony and evidence presented at trial, in January 2018, the elected Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) reported concerns to the FBI about political contributions and other requests made by Lindberg and Gray, and agreed to cooperate with the federal investigation that was initiated.
The evidence established that from April 2017 to August 2018, Lindberg, Gray and Hayes engaged in a bribery scheme involving independent expenditure accounts and improper campaign contributions for the purpose of causing the Commissioner to take official action favorable to Lindberg’s company, GBIG. Trial evidence further established that Lindberg and Gray gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value, in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing regulation and the periodic examination of GBIG.
According to trial evidence, Lindberg, Gray and the Commissioner held numerous in-person meetings at different locations, including in Statesville, North Carolina, and had telephonic and other communications with each other, and with Hayes, to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously. In order to conceal the bribery scheme, at the direction of Lindberg, two corporate entities were set-up to form an independent expenditure committee with the purpose of supporting the Commissioner’s re-election campaign, and Lindberg funded the entities with $1.5 million as promised to the Commissioner. In addition, at Lindberg and Gray’s direction, Hayes caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party of which Hayes was chairman, to the Commissioner’s re-election campaign.
According to admissions Hayes made in connection with his guilty plea, on or about Aug. 28, 2018, Hayes falsely stated to FBI agents that he had never spoken with the NCDOI Commissioner about personnel or personnel problems at NCDOI, or about Lindberg or Gray. Hayes further admitted that, at the time he made the materially false statements, Hayes knew that it was unlawful to lie to the FBI, and knew that his statements were false because Hayes had in fact spoken with the NCDOI Commissioner about Lindberg and Gray, and about Lindberg’s request that the Commissioner move certain personnel within NCDOI.
The FBI’s Charlotte field office investigated the case.
Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William Stetzer and Dana Washington of the U.S. Attorney’s Office for the Western District of North Carolina are in charge of the prosecution.
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.
Federal Jury Convicts Founder and Chairman of A Multinational Investment Company and A Company Consultant of Public Corruption and Bribery ChargesRead the Press Release
CHARLOTTE, N.C. – A federal jury sitting in Charlotte, North Carolina, has convicted the founder and chairman of a multinational investment company and a company consultant of public corruption and bribery charges, for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions.
Greg E. Lindberg, 49, of Durham, North Carolina, the founder and chairman of Eli Global LLC (Eli Global) and the owner of Global Bankers Insurance Group (GBIG), and Lindberg’s consultant, John D. Gray, 69, of Chapel Hill, North Carolina, were convicted of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds after an approximately three-week trial before U.S. District Judge Max O. Cogburn Jr. A third co-defendant, Eli Global executive John V. Palermo, 64, of Pittsboro, North Carolina, was acquitted by the jury. A fourth co-defendant, Robert Cannon Hayes, 74, of Concord, North Carolina, previously pleaded guilty to making false statements to the FBI.
“Greg Lindberg and John Gray undermined public confidence in our government by promising millions of dollars in campaign contributions in exchange for government decisions to benefit Lindberg’s business interests,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department is grateful for the assistance of the law-abiding public officials who reported the attempted bribes in this case, which allowed us to use all the tools at our disposal to investigate and root out this pernicious and greedy effort to corrupt North Carolina state government.”
“The defendants devised an elaborate plan to make a hefty campaign contribution to an elected official to secure favorable action. This was not a lapse in judgment. It was a deliberate bribery attempt and a clear violation of federal law,” said U.S. Attorney Andrew Murray for the Western District of North Carolina. “Public corruption is a threat to our way of life and if left unchecked it can tear apart the very fabric of our country. My office will continue to diligently ferret out public corruption schemes to protect the public and hold bad actors like these unscrupulous defendants accountable.”
“Greg Lindberg and John Gray plowed across the line from legal political donations to felonious bribery,” said Special Agent in Charge John Strong of the FBI’s Charlotte Field Office. “These men thought they could buy changes to North Carolina Department of Insurance personnel, policies, and procedures to benefit Lindberg's businesses. The FBI will work tirelessly to root out any and all forms of public corruption.”
According to filed court documents, witness testimony and evidence presented at trial, in January 2018, the elected Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) reported concerns to the FBI about political contributions and other requests made by Lindberg and Gray, and agreed to cooperate with the federal investigation that was initiated.
The evidence established that from April 2017 to August 2018, Lindberg, Gray and Hayes engaged in a bribery scheme involving independent expenditure accounts and improper campaign contributions for the purpose of causing the Commissioner to take official action favorable to Lindberg’s company, GBIG. Trial evidence further established that Lindberg and Gray gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value, in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing regulation and the periodic examination of GBIG.
According to trial evidence, Lindberg, Gray and the Commissioner held numerous in-person meetings at different locations, including in Statesville, North Carolina, and had telephonic and other communications with each other, and with Hayes, to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously. In order to conceal the bribery scheme, at the direction of Lindberg, two corporate entities were set-up to form an independent expenditure committee with the purpose of supporting the Commissioner’s re-election campaign, and Lindberg funded the entities with $1.5 million as promised to the Commissioner. In addition, at Lindberg and Gray’s direction, Hayes caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party of which Hayes was chairman, to the Commissioner’s re-election campaign.
According to admissions Hayes made in connection with his guilty plea, on or about Aug. 28, 2018, Hayes falsely stated to FBI agents that he had never spoken with the NCDOI Commissioner about personnel or personnel problems at NCDOI, or about Lindberg or Gray. Hayes further admitted that, at the time he made the materially false statements, Hayes knew that it was unlawful to lie to the FBI, and knew that his statements were false because Hayes had in fact spoken with the NCDOI Commissioner about Lindberg and Gray, and about Lindberg’s request that the Commissioner move certain personnel within NCDOI.
The FBI’s Charlotte field office investigated the case.
Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William Stetzer and Dana Washington of the U.S. Attorney’s Office for the Western District of North Carolina are in charge of the prosecution.
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.
Federal Inmate Sentenced to 21 More Months in Prison for Conspiring to Distribute Synthetic CannabinoidsRead the Press Release
PITTSBURGH – Nicholas Giammichele pleaded guilty and was sentenced to 21 months in prison for conspiring to distribute Schedule I synthetic cannabinoid controlled substances between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Giammichele, 35, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan also ordered Giammichele to serve six years of supervised release following his prison term. Giammichele was serving a prior federal prison sentence in Otisville, NY. when he committed the crime to which he pled guilty and for which he was sentenced. His 21-month prison sentence in this case was ordered to run consecutively to his prior prison sentence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Everett, Pa. Man Pleads to Multiple Counts Relating to Firearms Stolen from Federal FacilityRead the Press Release
JOHNSTOWN, Pa. – A resident of Everett, Pa., has pleaded guilty in federal court to various counts related to firearms stolen from the National Firearms and Ammunition Destruction Branch (NFAD), United States Attorney Scott W. Brady announced today.
Richard Adam Schreiber, 38, of Everett, Pa., pleaded guilty to five counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that between August 30, 2016 and March 4, 2019, Schreiber purchased multiple stolen firearms, firearm components and ammunition from Christopher Lee Yates. Yates was an employee of Allied Security and worked at NFAD, which was a facility used by ATF and other law enforcement agencies to have firearms and ammunition destroyed. The firearms at NFAD had been seized during criminal investigations or were retired by the agencies. The investigation by ATF began in February of 2019 when a firearm was seized in Philadelphia with different serial numbers, one of which was for a "slide" or firearm component that had purportedly been destroyed at NFAD. ATF learned that Yates stole in excess of 5 machineguns, 115 pistols and/or revolvers, 3,000 slides and ammunition. The Indictment further alleged that Schreiber then sold the firearms and components over the internet from his residence in Everett, Pa. During the investigation, ATF Agents seized 9 firearms from Yates, including a machinegun stolen from NFAD and an additional 11 firearms and rifles from individuals to whom Yates had sold the stolen weapons. ATF Agents also seized 101 firearms, 1,352 slides and 123,229 rounds of ammunition from Schreiber and an additional 28 firearms, including 3 machineguns, from individuals to whom Schreiber had sold the stolen weapons. Yates was charged with similar offenses in the Northern District of West Virginia, and was sentenced to 168 months in jail.
Judge Gibson scheduled sentencing for August 13, 2020 at 10:00 a.m. The law provides for a maximum total sentence of not more than 40 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Schreiber.
Essex County Father and Son Sentenced to Prison for Roles in $3.49 Million Food Stamps SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, father and son have been sentenced to prison for their roles in exchanging $3.49 million in Supplemental Nutrition Assistance Program (SNAP) benefits for cash, U.S. Attorney Craig Carpenito announced today.
Jose Perdomo, 35, of Newark, was sentenced today to 15 months of home detention and five years of probation. He previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of SNAP fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity.
His father, Juan Perdomo, 60, of Newark, was sentenced March 3, 2020, to 38 months in prison. He previously pleaded guilty to an information charging him with one count of SNAP fraud, one count of engaging in monetary transactions in property derived from SNAP fraud, and one count of aiding in the preparation of a materially false tax return. Judge Salas imposed the sentences in Newark federal court.
According to documents filed in this case and statements made in court:
From October 2015 to September 2018, Juan Perdomo ran M&R Supermarket, a business that was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp program. SNAP is administered by the U.S. Department of Agriculture. Retail food stores approved for participation may sell food in exchange for SNAP benefits, but may not exchange SNAP benefits for cash.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, to use to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in 11 “purchases” at M&R Supermarket, where Juan and Jose Perdomo exchanged money for SNAP benefits.
The bank account of M&R Supermarket showed numerous cash withdrawals in excess of $10,000 by Juan Perdomo as well as several cashed checks in excess of $10,000 by Jose Perdomo.
Jose and Juan Perdomo were each ordered to pay $4.8 million in restitution to the U.S. Department of Agriculture; Juan Perdomo was ordered to pay $400,099 in restitution to the IRS and was also sentenced to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael, and IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the sentencings.The government is represented by Assistant U.S. Attorney Samantha Fasanello of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Juan Perdomo: Brooke Barnett Esq., Newark
Jose Perdomo: John P. McGovern Esq., NewarkElizabeth City Felon Found with Handgun After Roadside Domestic Dispute SentencedRead the Press Release
RALEIGH — United States Attorney Robert J. Higdon, Jr., announced that today in federal court, United States District Judge James C. Dever, III, sentenced LEMEYON WALKER, 30, of Elizabeth City to 41 months’ imprisonment, followed by 3 years of supervised release. WALKER was named in a single-count Indictment on October 10, 2019, charging him with being a felon in possession of a firearm and ammunition. On November 15, 2019, he pled guilty to a Criminal Information that alleged the same charge.
According to the investigation, at around 2:30 a.m. on December 3, 2017, a Perquimans County Sheriff’s Office Deputy spotted a black Dodge Journey parked on the side of the highway. The car appeared to have been disabled, so the deputy stopped to conduct a welfare check.
He identified WALKER as the driver and a female passenger. WALKER stated that they had run out of gas and he was working on contacting someone to bring some more. WALKER’s hands were trembling and the deputy could smell burnt marijuana.
After a second deputy arrived, officers deployed a K-9, which alerted for the presence of drugs in the car. Deputies then conducted a search, finding a small built-in compartment on the rear passenger side floor. Inside, they found 51 rounds of Winchester .40 caliber ammunition. Elsewhere in the car, they found drug paraphernalia and a folded dollar bill that contained suspected cocaine.
When deputies asked WALKER and the passenger about who was responsible for the cocaine, WALKER stared at his passenger, seeming to suggest that she should accept responsibility. She responded angrily, yelling at him that he knew the drugs were not hers. She then blurted out, “that’s okay, he has a gun.” She told deputies the gun was either on his person or was placed under the hood when they broke down.
Within the engine bay of the car, deputies found a silver and black KAHR Firearms CW40 .40 caliber pistol, wrapped in a rag. WALKER and the passenger were arrested and transported to the station. While being processed, the passenger explained that she and WALKER had been fighting before the deputy had arrived. WALKER had struck her in the face, causing an abrasion on her left upper lip. He had then pulled out the handgun and fired a round outside the window to scare her.
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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Perquimans County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant United States Attorney Jake D. Pugh represented the government.
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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.
Department of Justice, Homeland Security and International Partners Announce Launch of Voluntary Principles to Counter Online Child Sexual Exploitation and AbuseRead the Press Release
The Justice Department and Homeland Security, along with government counterparts from Australia, Canada, New Zealand, and the United Kingdom, announced today the publication of Voluntary Principles to Counter Online Child Sexual Exploitation and Abuse. Developed in consultation with several leading technology companies, the 11 voluntary principles outline measures that companies in the technology industry can choose to implement to protect the children who use their platforms from sexual abuse online and to make their platforms more difficult for child sex offenders to exploit.
“Today marks a historic event,” said U.S. Attorney General William P. Barr. “For the first time, the Five Countries are collaborating with tech companies to protect children against online sexual exploitation. We hope the Voluntary Principles will spur collective action on the part of industry to stop one of the most horrendous crimes impacting some of the most vulnerable members of society.”
Online child sexual exploitation and abuse is a global crime that demands a global response. In an increasingly digital and borderless world, this crime has become easier to commit. Rapidly evolving technology and anonymizing tools allow offenders to continuously adapt and diversify their methods to conceal their activities from law enforcement. Not surprisingly, as a consequence, offenses are growing in scale and are becoming more extreme. These crimes have a devastating and lasting impact on victims and survivors.
“Nothing is of greater importance to the Trump Administration than ensuring the safety and security of Americans, especially the most vulnerable among us — our children,” said Acting Secretary for the U.S. Department of Homeland Security (DHS) Chad Wolf. “Combating online child sexual exploitation is a top priority for the department. ICE Homeland Security Investigations has one in 10 agents investigating child sexual exploitation at any given time and that is why DHS released its first Strategy to Combat Human Trafficking, the Importation of Goods Produced with Forced Labor, and Child Sexual Exploitation. I am confident the Voluntary Principles will help us move forward our goal of creating a world where children can grow up free from sexual exploitation. The Voluntary Principles set new norms across the private sector, incorporating child safety throughout a company’s operations and properly considering the needs of victim-survivors.”
“We cannot allow children to fall victim to predators who lurk in the shadows of the web,” said UK Security Minister James Brokenshire. “Through global collaboration and with enhanced action from the Five Countries, law enforcement agencies and tech companies, we will ensure that children are protected online.”
“It is imperative that we keep children safe from online sexual exploitation and abuse, and we can only accomplish that if we work together with other countries and across sectors,” said Canada’s Minister of Public Safety and Emergency Preparedness Bill Blair. “Today’s release of the Voluntary Principles represents a huge step forward and is the result of innovative cooperation between Five Eyes partners and industry stakeholders. For Canada, the principles directly align with our efforts guided by our National Strategy and continues to fulfill our commitment of protecting children from sexual exploitation of any kind.”
“When it comes to tackling child abuse committed on online platforms and services, the digital industry has a vital role to play,” said Australian Minister for Home Affairs Peter Dutton. “The Voluntary Principles will help industry optimize these efforts; they reflect Governments’ expectations of digital industry, and are scalable and practical to implement across various platforms — from search engines to gaming services to social media networking sites.”
“Those who engage in online child sexual exploitation work to get around current barriers and regulations, despite the best efforts and hard work of the digital industry,” said New Zealand Minister of Internal Affairs and Minister for Children Tracey Martin. “This is a global crime that demands a global response. Working with my colleagues from the Five Countries and the digital industry has ensured we have a set of principles that are robust, flexible, and most importantly, will create effective responses.”
At the Five Country Ministerial Digital Industry Roundtable on July 30, 2019 in London, the Five Country Ministers and senior representatives from Facebook, Google, Microsoft, Roblox, Snap and Twitter agreed “tackling [the online child sexual abuse] epidemic requires an immediate upscaling of the global response to ensure that all children across the globe are protected…and that there is no safe space online for offenders to operate.” As a result, the Five Countries developed the Voluntary Principles to Counter Online Child Sexual Exploitation and Abuse in consultation with the six companies and a broad range of experts from industry, civil society and academia.
The voluntary principles provide a common and consistent framework to guide the digital industry in its efforts to combat the proliferation of online child exploitation. The voluntary principles cover the following themes:
- Prevent child sexual abuse material;
- Target online grooming and preparatory behavior;
- Target livestreaming;
- Prevent searches of child sexual abuse material from surfacing;
- Adopt a specialized approach for children;
- Consider victim/survivor-led mechanisms; and
- Collaborate and respond to evolving threats.
These voluntary principles are built on existing industry efforts to combat these crimes. Some leading companies have dedicated significant resources to develop and deploy tools in the fight to protect children online and to detect, disrupt and identify offenders. Although significant progress has been made, there is much more to be done to strengthen existing efforts and enhance collective action.
These principles are intended to have sufficient flexibility to ensure effective implementation by industry actors. Some companies have already implemented measures similar to those outlined in these principles. Regardless of whether or not a company chooses to adopt these principles, existing laws and regulations in relevant jurisdictions continue to apply to all companies. Nothing in these principles overrides or is contrary to the need for companies to comply with the law.
The Five Country governments have partnered with the WePROTECT Global Alliance — an international body comprising government, industry and civil society members — to promote the Principles globally and drive collective industry action. The WePROTECT Global Alliance will also collate information about industry’s uptake of the Principles, connect subject matter experts to share best practices for implementation, and analyze the evolving threat environment to identify gaps in the global response. Five Country Governments will work closely with the WePROTECT Global Alliance to ensure the Principles remain fit-for-purpose for emerging trends and threats.
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.
Department of Justice Charges Unprecedented Number of Elder Fraud Defendants Nationwide and Launches HotlineRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale on March 3, 2020 to announce the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
In the Eastern District of Louisiana, six Mexican nationals were indicted on October 3, 2019 by a federal grand jury for one count of conspiracy to commit wire fraud. The indictment alleged that from at least January 1, 2016, to the present, the above defendants conspired together and with others to commit wire fraud in connection with a telemarketing scheme that targeted and victimized persons in the United States, Canada and South America. Of the U.S. victims, 40 out of 55 victims were 60 and older and the total estimated loss was at least $10,000,000.
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the Department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The Department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
“With the unwavering cooperation of our investigative partners, protecting older Americans from fraud and educating them and their caregivers about fraud prevention is a priority for our department,” said U.S. Attorney Strasser. “Elder fraud schemes target elderly, disabled and other vulnerable consumers, luring them into fraudulent ventures that affected victims nationwide and generate excessive losses which have a profound effect on our nation. We will hold perpetrators of elder fraud schemes accountable wherever they are. Our office reminds seniors and their caregivers to be vigilant for fraudulent schemes and if you are aware of or believe you are the victim of a health care fraud scheme, please contact law enforcement.”
“Through elaborate schemes and the promise to help better their lives, millions of dollars are defrauded from American citizens, in particular, the elderly community,” said Bryan A. Vorndran, FBI New Orleans Special Agent in Charge. “Just like the six defendants in this case, corrupt individuals continue to take advantage of vulnerable people and steal their life savings. Well, the money trail has ended for these defendants and it has led to their indictments. The FBI New Orleans Field Office, along with the U.S. Attorney’s Office – Eastern District of Louisiana remains committed to holding those accountable who attempt to swindle money from Americans.”
“The U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud schemes for many years,” said Inspector in Charge Adrian Gonzalez. “The number and variety of schemes that target our most vulnerable populations, including the elderly and disabled, are numerous…and the effects of those schemes are devastating to the victim and their families. The Inspection Service is committed to pursuing those who utilize the U.S. Mail to perpetrate these financial fraud schemes and bring them to justice.”
This https://www.justice.gov/civil/elder-fraud-sweeps-2020 interactive map provides information on the elder fraud cases highlighted by today’s sweep announcement.
Elder Fraud Hotline
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Launches a National Nursing Home InitiativeRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana joined Attorney General William P. Barr on March 3, 2020 to announce the Department of Justice’s National Nursing Home Initiative, which will coordinate and enhance civil and criminal efforts to pursue nursing homes that provide grossly substandard care to their residents.
This initiative is focusing on some of the worst nursing homes around the country and the Department has already initiated investigations into approximately thirty individual nursing facilities in nine states as part of this effort.
“Millions of seniors count on nursing homes to provide them with quality care, and to treat them with dignity and respect when they are most vulnerable,” said Attorney General William P. Barr. “Yet, all too often, we have found nursing home owners or operators who put profits over patients, leading to instances of gross abuse and neglect. This national initiative will bring to justice those owners and operators who have profited at the expense of their residents, and help to ensure residents receive the care to which they are entitled.”
“As the population of our nation ages, more and more American families rely on nursing homes to provide quality care to their loved ones,” said U.S. Attorney Peter G. Strasser. “Sadly, however, the instances of physical, psychological, or financial neglect have become more common. The implementation of The National Nursing Home Initiative provides another tool to ensure the welfare of our elderly family members that we have entrusted to the care of nursing homes. The ultimate goal of this worthy initiative is to root out those nursing homes that prey on both their elderly residents as well as the family of those residents.”
“The mission of the FBI is to protect the rights of all Americans, especially those who cannot protect themselves,” said Bryan A. Vorndran, FBI New Orleans Special Agent in Charge. “People housed in nursing homes rely on the support, attention, and care of the nursing home staff to fulfill their basic needs. Too often, we hear of situations of abuse by nursing home personnel to a family member or friend residing in an assisted living facility. We urge Americans to report this abuse and mistreatment, so we can bring justice to those who seek to defraud or abuse the most vulnerable members of our community.”
The department considers a number of factors in identifying the most problematic nursing homes. For example, the department looks for nursing homes that consistently fail to provide adequate nursing staff to care for their residents, fail to adhere to basic protocols of hygiene and infection control, fail to provide their residents with enough food to eat so that they become emaciated and weak, withhold pain medication, or use physical or chemical restraints to restrain or otherwise sedate their residents. These care failures cause residents to suffer in pain and to be exposed to the great indignities. Care failures cause residents to develop pressure sores down to the bone, to lie in their own waste for hours, to starve because they cannot reach the food on their trays and to remain unwashed for weeks at a time. Nursing homes that provide grossly substandard care also force vulnerable elderly residents who cannot leave the facilities to live in filthy and dangerous conditions where there are leaks in the roofs, mold is found growing and rodents found living in residents’ rooms. These are some of the actions and the inactions that the department intends to pursue.
The National Nursing Home Initiative reflects the department’s larger strategy and commitment to protecting our nation’s seniors, coordinated by the department’s Elder Justice Initiative in conjunction with the U.S. Attorneys’ Offices. The Elder Justice Initiative and the U.S. Attorneys’ Offices are essential to the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Initiative and the U.S. Attorneys’ Offices also support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources, and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
Dallas Stripper and White Supremacist Gang Member Convicted of Obstruction of JusticeRead the Press Release
TEXARKANA, Texas – A 28-year-old Dallas, Texas, man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Collin Garrett Hayden was found guilty by a jury of obstruction of justice on March 6, 2020 following a five-day trial before U.S. District Judge Robert W. Schroeder, III. Hayden pleaded guilty to possessing a weapon in jail before the trial began.
According to information presented in court, in 2016, law enforcement began working a drug trafficking investigation into methamphetamine trafficking from Dallas into East Texas. During the investigation, Hayden and his roommate were heard on an undercover recording offering to sell drugs to another individual. Further investigation revealed Hayden had been personally selling cocaine in the Dallas strip clubs in which he performed and had been supplying methamphetamine to a Shreveport, Louisiana, buyer who was traveling through East Texas to purchase from Hayden. When Hayden became aware of his pending federal charges, he turned on his roommate and threatened to use his association with a white supremacist group to have the roommate killed. While in custody at the Titus County jail, Hayden obtained a shank-type weapon and threatened to kill any guards who entered his cell in retaliation for a guard reporting Hayden had attempted to obtain a cell phone by bribe. Hayden was indicted by a federal grand jury on April 19, 2017, and charged with federal violations.
Under federal statutes, Hayden faces up to life 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
The case was investigated by the Mount Pleasant office of the Texas Department of Public Safety, Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok and Donald Carter.
DOJ Files Suit against Spine Device Manufacturer and Executives Alleging Kickbacks to Surgeons through Sham Consulting PaymentsRead the Press Release
The Justice Department announced today that the United States intervened and filed a complaint in two whistleblower cases filed under the False Claims Act against SpineFrontier, Inc. (SpineFrontier) and related entities and executives, alleging that the defendants paid kickbacks to spine surgeons to induce use of SpineFrontier surgical devices, in violation of the Anti-Kickback Statute (AKS). According to the United States’ complaint, the defendants paid spine surgeons over $8 million in sham “consulting” payments ostensibly for product evaluations, when in fact the payments were for use of SpineFrontier devices.
“Kickbacks undermine the integrity of federal health care programs and can result in unnecessary or harmful medical care,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will pursue unlawful kickback arrangements in whatever form they occur to ensure the integrity of the medical care received by federal program beneficiaries.”
According to the United States’ complaint, Dr. Kingsley Chin is the founder and Chief Executive Officer of SpineFrontier, a spine device manufacturer headquartered in Malden, Massachusetts, which sells spinal implant devices across the United States. Dr. Chin is also the founder and principal owner of KIC Management Group Inc. and KICVentures LLC, which own and operate SpineFrontier and Impartial Medical Experts LLC (IME), a purported consulting company. Vanessa Dudley, Dr. Chin’s wife, was IME’s sole employee. Adiya Humad is the Chief Financial Officer for KICVentures and SpineFrontier, and president of SpineFrontier.
The United States’ complaint alleges that from October 2013 through December 2018, the defendants used IME as an intermediary to funnel kickbacks to spine surgeons. Defendants allegedly created IME to shield themselves and spine surgeons from government scrutiny by creating a false impression that surgeons were consulting through an independent third-party entity. The United States contends that IME in reality has served only one client — SpineFrontier — and its sole purpose was to pay spine surgeons to use SpineFrontier’s medical devices. The Defendants generally paid “consulting” spine surgeons $500 for a cervical procedure, and $1,000 for a lumbar procedure — but only if the surgeon used SpineFrontier devices. The United States alleges that consulting spine surgeons often performed little or no work beyond implanting the devices—for which they were separately paid by insurers — and that the Defendants did not systematically collect or use feedback from consultants and paid them even when they had provided no feedback at all. Surgeons allegedly could “consult” on SpineFrontier devices in this manner an unlimited number of times so long as they continued using the SpineFrontier product in surgery.
The AKS prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, TRICARE, and other federally funded programs. The AKS is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives.
“Medical device companies that pay surgeons kickbacks, directly or indirectly, corrupt the market, damage the health care system, and jeopardize patient health and safety,” said U.S. Attorney Andrew E. Lelling of the District of Massachusetts. “We will pursue aggressively any organization or individual who fails to play by the rules.”
“Bribes paid to surgeons as sham medical consultants, as alleged in this case, cheat patients and taxpayers alike,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our law enforcement partners, we will continue to investigate kickback schemes that threaten the integrity of our federal health care system, no matter how those schemes are disguised.”
The lawsuits were originally filed under the qui tam or whistleblower provisions of the False Claims Act by Charles Birchall, Jr., a former employee of a KICVentures subsidiary; John Miller, a former sales manager at SpineFrontier; and Walter Bennett, a former sales representative at SpineFrontier. Under the Act, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. The Act permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the Act, the United States may recover three times the amount of its losses plus applicable penalties.
The lawsuits are being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts. Investigative support is being provided by the Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation.
The cases are captioned United States ex rel. Birchall, Jr. v. SpineFrontier, Inc. et al., No. 15cv12877 (D. Mass.) and United States ex rel. Doe v. SpineFrontier, Inc. et al., No. 15cv12908 (D. Mass.). The claims asserted in the government’s complaint are allegations only.
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.
Court Sentences Two Drug Smugglers Caught by the United States Coast Guard in International Waters with 800 Kilograms of CocaineRead the Press Release
On March 3, 2020 United States District Court Judge William H. Steele sentenced two drug smugglers, Jeison Cambindo-Barahona and Marino Caido-Cardenas, both Columbian nationals, to one hundred and thirty five months confinement for being caught smuggling 800 kilograms of cocaine in international waters off the coast of Panama. The two men previously plead guilty to the charge in November 2019.
According to documents filed in connection with their guilty pleas, the case arose when on July 18, 2019, while on routine patrol in the Eastern Pacific Ocean, the United States Coast Guard (USCG) Cutter Seneca deployed a helicopter which visually detected a target of interest go-fast vessel approximately 50 nautical miles south of the Azuero Peninsula in Panama. Subsequently, the Seneca launched a Zodiac style “Over the Horizon” vessel to assist in intercepting the go-fast vessel. Ultimately, the helicopter and the Over the Horizon vessel arrived on scene with the suspect go-fast vessel.
As the crew aboard the go-fast vessel observed law enforcement closing in on them, they attempted to outrun the USCG. USCG personnel observed the crewmembers aboard the go-fast vessel throwing bales of suspected contraband out of their boat into the water. Ultimately, the USCG used disabling fire on the vessel which caused the go-fast vessel to become dead in the water. This allowed the USCG boarding team on the Over the Horizon to gain positive control of the targeted go-fast vessel.
USCG Cutter Seneca recovered a total of 39 bales of contraband from the water and inside the vessel with an approximate weight of 800 kilograms. The cocaine had a wholesale value of nearly $32 million in the United States.
The suspect vessel yielded no flag flown, no vessel registration documents and no other indicia of nationality. Upon boarding the vessel the smugglers were identified as the defendants, Edward John Valencia-Riascos, Marino Caido-Cardenas, and Jeison Cambindo-Barahona. Valencia-Riascos is scheduled to be sentenced on March 25, 2020.
The case was prosecuted by Assistant United States Attorney George F. May. The case was investigated by the United States Coast Guard and the Department of Homeland Security, Homeland Security Investigations.
Council Bluffs Man Sentenced to over 10 Years in Prison for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on March 4, 2020, Ellis Dale Robinson, age 34, of Council Bluffs, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Possession of Child Pornography. Robinson was sentenced to 121 months in prison to be followed by a term of supervised release of seven years.
In September 2017, a Douglas County (Nebraska) Sheriff’s Deputy was working undercover with the Internet Crimes Against Children Task Force investigating users sharing child pornography on a peer-to-peer file sharing network. Based on information derived from the investigation, a search warrant was executed on Robinson’s residence and a laptop computer was seized. The forensic exam produced numerous links to the peer-to-peer file sharing networks, videos and photos of child erotica, and child pornography.
This case was investigated by the Douglas County Sheriff’s Department, Omaha FBI Child Exploitation Task Force, and the Iowa Division of Criminal Investigation - Internet Crimes Against Children Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Council Bluffs Man Sentenced to Prison for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on March 4, 2020, Shawn Morgal, age 55, of Council Bluffs, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Prohibited Person in Possession of a Firearm. Morgal was sentenced to 27 months in prison to be followed by a term of supervised release of three years.
On May 21, 2018, the Council Bluffs Police Department received a report of a theft from a local gun store. Morgal admitted to stealing a pistol from the gun store and later trading it in exchange for controlled substances.
This case was investigated by the Council Bluffs Police Department and the Bureau of Alcohol Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Council Bluffs Man Sentenced for Distributing MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on March 4, 2020, Dalton Lee Dukes, age 30, of Council Bluffs, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Conspiracy to Distribute Methamphetamine and Carrying a Firearm in Relation to a Drug Trafficking Crime. Duke was sentenced to 151 months in prison for distribution of methamphetamine, to be followed by an additional 60 months for carrying a firearm in relation to drug trafficking. Dukes will serve five years of supervised release after his prison term.
The sentencing was the result of an investigation originating in Cass County regarding the distribution of methamphetamine delivered from Omaha, Nebraska. The investigation revealed that Dukes was distributing methamphetamine in numerous locations throughout Southwest Iowa. After a confidential informant purchased methamphetamine from Dukes, he was arrested on February 15, 2019. At the time of his arrest, Dukes was found with money from drug sales and a loaded 9mm Taurus handgun.
Prior to being sentenced in this case, Dukes was charged with First Degree Murder in Douglas County, Nebraska and he is awaiting transfer to answer those charges.
This matter was investigated by the Cass County Sheriff’s Office, Southwest Iowa Narcotics Task Force, Omaha Police Department, and Iowa Division of Narcotics Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Circle K Agrees to Pay $248,000 to Resolve Alleged Violations of the Controlled Substances ActRead the Press Release
LEXINGTON, Ky. – Circle K, a Texas corporation that operates convenience stores nationwide, has agreed to resolve civil allegations that it violated the Controlled Substances Act (CSA), a federal law that requires retailers of pseudoephedrine to place the product so that customers do not have direct access to it and to keep a logbook of sales, agreeing to pay $248,000.
According to the CSA, retailers are required to place pseudoephedrine in places where the customer does not have direct access before the sale is made and to deliver the product directly into the custody of the purchaser. The CSA further requires Circle K to maintain a logbook of sales, including for each transaction: the name of the product, the quantity sold, the name and address of the purchaser, and the date and time of the transaction. The prospective purchaser must also present identification and sign the logbook to lawfully complete the transaction. Each logbook entry must be accessible and maintained for at least two years following the sale.
The United States alleged that, on November 1, 2018, Circle K Store #3253, located in London, Kentucky, knowingly or recklessly maintained “Pseudo Ephed Plus” in front of the retail sales counter; failed to deliver the product directly into the custody of a customer; failed to require a customer to present identification; and failed to require a customer to sign the logbook.
The United States further alleged that 48 Circle K stores negligently failed to maintain a logbook of “Pseudo Ephed Plus.”
The case was investigated by the Drug Enforcement Administration. Assistant United States Attorneys Mary Melton and Christine Corndorf represented the United States. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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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Chinese National Residing in Fresno Charged in Illegal Marijuana Grow OperationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Yunquan Jiang, 48, a Chinese national residing in Fresno, charging him with cultivating and possessing with intent to distribute over 1,000 marijuana plants inside his residence, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Feb. 7, narcotics detectives served a search warrant at a house on East White Avenue in Fresno. The living room, kitchen, bedrooms, and garage had been retrofitted with fluorescent grow lights suspended from the ceiling, charcoal air-filtration systems, ballasts, and numerous fans. Authorities discovered a total of 1,263 marijuana plants inside the home. Jiang, the sole occupant, was arrested for cultivation of marijuana and possession of marijuana for sale.
This case is the product of an investigation by the Drug Enforcement Administration and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Jiang faces a mandatory minimum prison sentence of 10 years in prison and up to life in prison and a fine of up to $10 million. 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.
Charleston Felon Sentenced to 60 Months Imprisonment for Possessing a Firearm in Furtherance of Cocaine and Crack Cocaine TraffickingRead the Press Release
Charleston, South Carolina --- Acting United States Attorney A. Lance Crick announced today that Ramone Baldwin, 25, of Charleston, was sentenced to five years in federal prison after pleading guilty to possession of a firearm in furtherance of a drug trafficking crime.
Evidence presented at the change of plea and sentencing hearings established that on November 13, 2018, Charleston Police Department officers attempted to stop a car driven by Baldwin for traffic violations. The car fled, and the driver threw a bag out of the window. The officers retrieved the bag, which contained cocaine, crack cocaine, pills, and a loaded Springfield XD40 pistol. Other officers located the car and Baldwin. Further investigation located pictures of Baldwin with guns and showed the methods Baldwin used to advertise the sale of his drugs. Baldwin, who has been in custody since his arrest, was prohibited from possessing a firearm due to his felony record.
United States District Judge Richard M. Gergel sentenced Baldwin to 60 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Charleston Police Department and the Drug Enforcement Administration. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorney Jamie Lea Schoen of the Charleston office prosecuted this case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Chappaqua Businessman Pleads Guilty in White Plains Federal Court to Tax EvasionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation ("IRS-CI"), announced that ANTONIO NIKC, a Chappaqua businessman, pled guilty to tax evasion for the calendar years 2010 through 2014. As part of his plea, NIKC agreed to pay $395,745 in restitution to the Internal Revenue Service (“IRS”). NIKC pled guilty on March 3 before U.S. Magistrate Judge Lisa Margaret Smith.
U.S. Attorney Geoffrey S. Berman said: “As he admitted, Antonio Nikc used family businesses to conceal his substantial income and prevent the IRS from calculating his tax due. While using the business accounts to fund his extravagant lifestyle, Nikc failed to file any personal income tax returns. Now Nikc awaits sentencing for his crime.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: "Our tax system is based on voluntary compliance and we will hold those accountable who fail to report their income out of greed. IRS-CI special agents will continue to pursue those who take advantage of our tax system."
According to the allegations contained in the Information to which NIKC pled guilty and statements made in court:
From 2010 to 2015, NIKC managed a number of family businesses that operate large rental buildings in New York and Connecticut. NIKC ran these businesses and managed his personal finances in a manner designed to conceal his sources of income and prevent the IRS from calculating or assessing his tax due. NIKC treated the business entities’ bank accounts as his own personal bank accounts, using them to pay for more than $1.5 million in personal expenses, including oceanside condominiums in Miami, marina fees for a boat docked in Miami, airline tickets, luxury car payments, college tuition and allowances for his children, and purchases at jewelry stores, clothing stores, and restaurants.
Despite earning and spending a substantial income, NIKC failed to file any personal federal income tax returns and failed to pay any taxes due and owing on the income he received. NIKC took various affirmative steps to evade the assessment of taxes on that income, including paying for personal expenses out of the family business accounts and intentionally maintaining few assets in his own name. Through this scheme, NIKC evaded $395,745 in federal income taxes.
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NIKC, 58, of Chappaqua, New York, pled guilty to one count of tax evasion, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. NIKC is scheduled to be sentenced by U.S. District Judge Nelson S. Román on June 5, 2020, at 11:00 a.m.
Mr. Berman praised the outstanding work of the Internal Revenue Service, Criminal Investigation, in this case.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Jim Ligtenberg is in charge of the prosecution.
Business Manager of Local Union and Trustee of Electrical Workers’ Retirement Plan Sentenced to Fifteen Months in Prison for Embezzlement and Wire FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Melvin Fishburn, 57, of Charleston, South Carolina was sentenced to 15 months imprisonment and three years’ supervised release by United States District Judge Edward G. Smith for stealing from the International Brotherhood of Electrical Workers, AFL-CIO, Local Union #743 (“IBEW Local 743”) and National Electrical Contractors Association Penn-Del-Jersey Chapter, Reading Division Retirement Plan (the “Retirement Plan”). He was also ordered to pay restitution of $81,413 and a special assessment of $800.
On July 17, 2019, Fishburn entered a guilty plea to an indictment charging him with four counts of embezzlement and four counts of wire fraud. Fishburn was the business manager for IBEW Local 743 and a trustee of the Retirement Plan. From July 2010 until June 2014, he stole $81,413 from the Retirement Plan and plan participants through an elaborate scheme by which he submitted disbursement requests from a shell entity he created for services that were never provided to, and expenses that were never incurred by, the Retirement Plan. Fishburn, in his capacity as trustee of the Retirement Plan, authorized the illegal payment of plan assets to the shell entity and had the checks mailed to a Post Office Box under his control.
“Fishburn abused his position of trust and betrayed union members to line his own pockets,” said U.S. Attorney McSwain. “That is reprehensible. He had a fiduciary duty under ERISA to take actions that benefit the Retirement Plan, but instead, he breached that duty in order to serve his own interests. My Office will aggressively pursue criminal conduct like this and will hold accountable those who deprive workers of benefits that are rightfully theirs.”
“Melvin Fishburn created a fictitious consulting company for the sole purpose of embezzling more than $80,000 from the IBEW Retirement Plan. Fishburn abused his position as a plan trustee in order to deprive hard-working union members of money set aside for their retirement. We will continue to work with the Employee Benefit Security Administration and our other law enforcement partners to protect the integrity of labor unions and their benefit plans,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“Prosecuting those who misuse funds from employee benefit plans is a vital aspect of EBSA’s mission to protect the rights of America’s workers,” said Michael Schloss, Employee Benefit Security Administration’s (EBSA) Regional Director in Philadelphia. “EBSA will continue to aggressively investigate such crimes on behalf of workers nationwide.”
The case was investigated by the United States Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud, as well as the Employee Benefits Security Administration. It is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Brockton Man Pleads Guilty to Federal Drug OffensesRead the Press Release
BOSTON – A Brockton man pleaded guilty yesterday in federal court in Boston to distributing fentanyl and cocaine.
Rayshawn DaCruz, 24, pleaded guilty to four counts of distribution of a controlled substance. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for June 25, 2020. DaCruz was arrested in Brockton and charged in May 2019.
On April 4, 2019, DaCruz sold a bag of cocaine and a bag of fentanyl to an undercover police officer in Stoughton. Then on April 16, May 2, and May 6, 2019, DaCruz sold various amounts of fentanyl to the same undercover officer in Brockton.
Each charge of distribution of a controlled substance provides for a sentence of up to 20 years in prison, a minimum of three years and up to life of supervised release and a fine up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Emanuel Gomes made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Billings meth dealer sentenced to prisonRead the Press Release
BILLINGS—A Billings man who admitted possessing methamphetamine for distribution was sentenced today to 48 months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Michael Alan McNulty, 55, pleaded guilty in October to possession with intent to distribute.
U.S. District Judge Susan P. Watters presided. Judge Watters also ordered McNulty to forfeit $5,895.
The prosecution said in court records that McNulty was arrested after law enforcement observed suspected drug sales occurring at several Billings residences. Officers followed a truck registered to McNulty as it left one residence and went to another residence, where McNulty and a female driver left the truck, entered the residence and left about 15 minutes later. The truck then went to another residence known to officers to be associated with illegal drug sales. McNulty entered that residence, left about five minutes later and got back into the truck, which drove away.
Officers stopped the truck after observing it make several traffic violations. McNulty consented to a search of the truck and officers found meth. McNulty also said he had a couple of ounces of meth on his person, which officers confirmed by searching him. In addition, McNulty admitted he had sold a gram of meth at the previous residence.
Assistant U.S. Attorney Karla Painter prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Berea Man Sentenced to 170 Months for Methamphetamine TraffickingRead the Press Release
LONDON, Ky. - A Berea, Kentucky man, Gary Lester Metcalf, 31, was sentenced in federal court on Thursday, to 170 months in prison, by U.S. District Court Judge Robert Wier, for conspiracy to distribute methamphetamine.
Metcalf previously admitted that between March 2018 and February 2019, he conspired with others to distribute 500 grams or more of methamphetamine in Pulaski, Laurel, Rockcastle, and Madison Counties. Metcalf admitted that he arranged the delivery of the methamphetamine from a supplier in Nevada, to a dealer in Eastern Kentucky, using the United States Postal Service. Metcalf would then arrange the collection and delivery of the proceeds from the distribution back to the Nevada-based dealer.
A local co-defendant, Billie Jean Lunceford, 50, of Eubank, Ky., pleaded guilty in December 2019 and is scheduled for sentencing on May 26, 2020.
Under federal law, Metcalf must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Brett R. Pritts, Acting Special Agent in Charge for DEA, Louisville Field Division; Chief Travis Davis, Broadhead Police Department; Sheriff Paul Hayes, Jackson County Sheriff’s Department; and Sheriff Greg Speck, Pulaski County Sheriff’s Department, jointly made the announcement.
The investigation was directed by the DE, Madison County Drug Task Force, Jackson County Sheriff’s Department, Pulaski County Sheriff’s Department, and Broadhead Police Department. 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.
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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Banksville Restaurant Owner Pleads Guilty to Fraud ChargeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that BARBARA MEYZEN, a/k/a “Bobbie Meyzen,” the owner and operator of La Cremaillere Restaurant in Banksville, New York, pled guilty to wire fraud in connection with her multi-year scheme to defraud the restaurant’s lenders, mortgagee, bankruptcy creditors, and customers. MEYZEN pled guilty before the Honorable Vincent L. Briccetti in White Plains federal court today.
U.S. Attorney Geoffrey S. Berman said: “Barbara Meyzen ran a renowned restaurant that served fine French food. As she admitted today, she also cooked the books and engaged in wholesale fraud, and deceived creditors, the bankruptcy trustee, and FBI agents. That is a recipe for federal prosecution and a potential prison sentence.”
According to the allegations in the Superseding Information to which MEYZEN pled guilty and other court documents:
MEYZEN has owned and operated the La Cremaillere Restaurant in Banksville, New York, since 1993. From August 2015 to July 2016, MEYZEN submitted applications for credit on behalf of La Cremaillere to at least nine lenders, factors, and financiers. In support of those applications, MEYZEN gave the potential lenders La Cremaillere’s bank statements that she had modified to change negative balances to positive balances; to remove references to checks returned for insufficient funds; and to reduce service fees. For example, MEYZEN modified one month’s statement to change a negative beginning balance of $32,865.57 to a positive beginning balance of $27,766.29; to change from negative to positive the negative ending balance for that month of $5,268.13; and to change service charges of $2,385.60 to $8.00. When one lender discovered that MEYZEN had altered the bank statements, MEYZEN created an email account in the name of one of the bank’s officers and sent the lender an email in which she, in the guise of the bank officer, told the lender that the statements were genuine.
MEYZEN also falsely represented to the same lender that the second mortgage on the restaurant’s property in Banksville had been discharged. She created a false satisfaction of mortgage on which she forged the signature of a representative of the restaurant’s second mortgagee, who is MEYZEN’s relative by marriage. MEYZEN filed the false satisfaction of mortgage with the Westchester County Clerk, paid the Clerk’s filing fee, and sent a copy of the filed satisfaction of mortgage to the lender. MEYZEN later denied filing the false satisfaction of mortgage or paying the filing fee when she was interviewed by special agents of the FBI. She told the FBI that she believed a loan broker with whom she had worked in the past, and whom she identified by name, had filed the false satisfaction of mortgage.
Throughout the summer of 2017, MEYZEN charged more than $80,000 in food and restaurant supplies to one of the restaurant’s customers who had left her credit card number on file at the restaurant. When the customer discovered the charges, MEYZEN claimed the charges were a mistake and repeatedly promised to resolve the problem. MEYZEN gave the customer two checks in a total amount of $32,000, but the checks bounced. When she was interviewed by the FBI, MEYZEN denied knowing anything about unauthorized charges to the customer’s credit card or ever speaking with the customer about the unauthorized charges. MEYZEN also denied giving the customer checks.
Meyzen Family Realty Associates, LLC, which owns the real property from which the restaurant operates, filed for bankruptcy in the U.S. Bankruptcy Court in White Plains in September 2018. La Cremaillere Restaurant Corp., which operates the restaurant, filed for bankruptcy in April 2019. MEYZEN is a part owner of both entities. In May 2019, MEYZEN misled the office of the United States Trustee, which oversees bankruptcy cases, about insurance coverage on the restaurant property. MEYZEN caused her bankruptcy counsel to give the United States Trustee and an attorney for Meyzen Family Realty’s largest creditor documents indicating that the property was insured when, in fact, the insurance coverage had been canceled months earlier for nonpayment. MEYZEN knew that the coverage had been canceled because her insurance broker had communicated with her several times about the cancellation of the policies. In June 2019, MEYZEN falsely testified under oath in a deposition conducted by the United States Trustee that she was not aware that the insurance had been canceled when she caused her attorney to turn the documents over to the United States Trustee.
Two days after La Cremaillere filed for bankruptcy in April 2019, MEYZEN opened a bank account in her name and diverted more than $40,000 of the restaurant’s credit card receipts to that account. MEYZEN used a portion of that money to make payments to a food distributor and to an in-home nursing service. This account was closed on May 1, 2019. On May 7, 2019, MEYZEN opened an account in the name of Honey Bee Farm, LLC, at another bank and diverted La Cremaillere’s credit card receipts, as well as $20,000 in advances on La Cremaillere’s future credit card revenue, to that account. MEYZEN used a portion of that money to make a payment on Meyzen Family Realty’s mortgage and to pay food distributors, two wine wholesalers, a commercial trash service, a tableware and china company, and an employee of La Cremaillere.
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MEYZEN, 57, of Redding, Connecticut, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of MEYZEN will be determined by a judge. MEYZEN is scheduled to be sentenced by Judge Briccetti on June 24, 2020.
Mr. Berman praised the outstanding investigative work of the FBI and the Office of Internal Affairs, New York State Department of Taxation and Finance.
The prosecution of this case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
Baltimore Drug Dealer Sentenced to More Than Four Years in Federal Prison – Rented an Apartment Within 1,000 Feet of an Elementary School to Store and Distribute DrugsRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Tyrell Daronte Curry, a/k/a “Mike,” age 28, of Baltimore, Maryland, to 51 months in federal prison, followed by four years of supervised release for conspiracy to distribute and possess with intent to distribute controlled substances.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; and Chief Melissa R. Hyatt of the Baltimore County Police Department (BCPD).
United States Attorney Robert K. Hur stated, “We absolutely will not tolerate drugs dealing near our schools. We are committed to working with our law enforcement partners to remove gun-toting drug dealers from our communities, in order to reduce violent crime.”
According to his guilty plea, from December 2018 to February 2019, Curry distributed fentanyl, heroin, and cocaine. On January 3 and again on February 6, 2019, Curry sold an undercover Baltimore County Police officer a “pack” of heroin—each containing 25 gel capsules—for $200 per pack.
On February 22, 2019, law enforcement executed a search warrant at an apartment in Parkville, Maryland, which was rented by Curry, and was within 1,000 feet of a Baltimore County elementary school. Curry and his co-defendant, Deandre Laquan Jones, used the apartment to distribute fentanyl, heroin, and cocaine. From the apartment, law enforcement recovered two baggies containing a total of approximately 345 grams of fentanyl, cutting agents, digital scales, two kilogram presses, and bags of packaging materials. In addition, officers found mail and other documents in the names of Curry and Jones, and two empty .40-caliber extended magazines, from which the BCPD Forensic Services Section recovered a latent print of Jones’ left thumb. In the living room, officers located a coffee table that had been custom-manufactured to contain a hidden compartment secured by a wireless lock. Investigators later learned that the table had been purchased by, and shipped to, Deandre Jones at the Parkville apartment. When the hidden compartment in the table was opened, law enforcement recovered plastic bags containing 16 grams of fentanyl, 175 grams of heroin, 185 grams of crack cocaine, and 173 grams of powder cocaine, as well as a .410-caliber handgun and 19 rounds of .410-caliber ammunition.
That same day, BCPD officers executed a search warrant at Curry’s residence and recovered a total of $17,820 in cash, sandwich bags holding a total of 46 capsules of heroin, three cell phones, and a box containing .357-caliber ammunition, which was found in the mattress. Curry admitted that the cash was furnished or intended to be furnished in exchange for controlled substance, or was proceeds from the sale of controlled substances.
A subsequent forensic examination of the cell phones recovered messages between Jones and Curry relating to drug trafficking, including discussions about the Parkville apartment, potential customers, sources of supply, possible police surveillance, and ammunition.
Deandre Laquan Jones, a/k/a “Cuz,” age 27, of Towson, Maryland previously pleaded guilty to possession with intent to distribute controlled substances, possession with intent to distribute drugs near a school, and to being a felon in possession of firearms. U.S. District Judge George L. Russell, III has scheduled sentencing for Jones on April 30, 2020 at 9:30 a.m.
United States Attorney Robert K. Hur commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Christopher J. Romano, who are prosecuting the case.
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2 Texas men face federal charges after violently attacking federal officerRead the Press Release
LAREDO, Texas – Two men from Irving are set to appear in court for assaulting Customs and Border Protection (CBP) officers, announced U.S. Attorney Ryan K. Patrick.
The Laredo grand jury returned the indictment Feb. 25 against Juan Alfredo Crisencio Martinez, 20, and Jaythan Trevonne Phillips, 20. They are set to appear before U.S. Magistrate Judge Diana Song Quiroga at 1 p.m. today.
They are all charged with forcible assault on an officer Feb. 8.
The incident began after they applied for admission into the United States at the Juarez-Lincoln International Bridge in Laredo, according to the charges. A CBP officer allegedly began to conduct an immigration inspection and asked them to exit the vehicle. They refused, according to the allegations.
The charges allege authorities swarmed the lane to apprehend the occupants. At that time, Martinez allegedly reached for the officer’s belt from inside the vehicle. He also opened the driver’s side door in order to prevent a responding officer from assisting, according to the allegations.
Law enforcement allegedly had to physically carry Phillips to the secondary inspection area.
Martinez continued to resist, according to the allegations. Law enforcement allegedly had to deploy a Taser in order to subdue him.
The charges allege the incident significantly impacted the port’s daily operation, because officers from passenger booths, secondary inspection and bus operations had to assist. Most of the travel lanes were closed until they could resolve the incident, according to the allegations. The bus traffic was allegedly backed up into the Mexico side of the bridge which caused stalls and ultimately delayed dozens of passengers.
If convicted, Martinez and Phillips face up to 20 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from CBP. Assistant U.S. Attorney Yoona Lim is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.13 Members of Bronx Drug Crew Charged with Distributing Cocaine and Crack CocaineRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Raymond P. Donovan, Special Agent in Charge of the New York Office of the Drug Enforcement Administration (“DEA”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of an Indictment charging EDWARD ABREU, ALICIA ARIAS, LUIS FRIAS, TIMOTHY WALLACE, a/k/a “Larry,” DEREK LIVINGSTON, a/k/a “Wiz,” CHARKEEM PAYNE, a/k/a “Lite,” CAROL LANE, TRACEY SMITH, a/k/a “Trey,” HERMAN STEWARD, TASHA BURNETT, a/k/a “Dutchis,” TYRISS GWYNN, EDGAR MONTES, a/k/a “E,” and FERNANDO DISLA, a/k/a “Lolo,” with participating in a conspiracy to distribute cocaine and crack cocaine. Eight defendants were taken into custody today and will be presented this afternoon before United States Magistrate Judge Kevin Nathaniel Fox. Four defendants were previously presented after being taken into custody and one defendant remains at large. The case is assigned to United States District Judge Denise L. Cote.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, the defendants in this case brought cocaine and crack into our communities for well over a year. Thanks to the extraordinary work of the NYPD and DEA, the defendants will now face justice in federal court.”
DEA Special Agent in Charge Ray Donovan said: “The Gunna Ave gang’s alleged drug trafficking operations encouraged drug abuse and drove crime and violence in the community where they live. Our partnership with the NYPD and U.S. Attorney’s Office focuses on disrupting drug trafficking organizations at all levels of distribution, as evidenced in this investigation.”
NYPD Commissioner Dermot Shea said: “I commend our investigators, together with our federal partners, for the great work throughout this investigation. The men and women of the NYPD work each day to eradicate illegal drugs from our City and ensure safety across every neighborhood.”
As alleged in the Indictment unsealed today in Manhattan federal court[1] and in statements on the record in court:
EDWARD ABREU, ALICIA ARIAS, LUIS FRIAS, TIMOTHY WALLACE, a/k/a “Larry,” DEREK LIVINGSTON, a/k/a “Wiz,” CHARKEEM PAYNE, a/k/a “Lite,” CAROL LANE, TRACEY SMITH, a/k/a “Trey,” HERMAN STEWARD, TASHA BURNETT, a/k/a “Dutchis,” TYRISS GWYNN, EDGAR MONTES, a/k/a “E,” and FERNANDO DISLA, a/k/a “Lolo,” were members of a drug trafficking organization (the “DTO”) that distributed cocaine and crack cocaine within the Bronx, including in the vicinity of East 167th Street and Sheridan Avenue from at least in or about January 2019 through March 2020. LIVINGSTON is also charged with having used and possessed a firearm in furtherance of the charged drug trafficking conspiracy and being a felon in possession of a firearm.
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A chart containing the names, charges, and maximum penalties for the defendants is set forth below. 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.
Mr. Berman praised the outstanding investigative work of the DEA and NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Thomas John Wright is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Narcotics conspiracy
21 U.S.C. § 846
EDWARD ABREU, 44,
ALICIA ARIAS, 36,
LUIS FRIAS, 40,
TIMOTHY WALLACE, 32,
a/k/a “Larry,”
DEREK LIVINGSTON, 32,
a/k/a “Wiz,”
CHARKEEM PAYNE, 32,
a/k/a “Lite,”
CAROL LANE, 52, and
TRACEY SMITH, 52,
a/k/a “Trey”
HERMAN STEWARD, 62,
TASHA BURNETT, 44,
a/k/a “Dutchis,”
EDGAR MONTES, 40,
a/k/a “E,” and
FERNANDO DISLA, 33,
a/k/a “Lolo”
TYRISS GWYNN, 34,
Life in prison
Mandatory minimum of 10 years in prison
40 years in prison
Mandatory minimum of 5 years in prison
20 years in prison
2
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crime
18 U.S.C. § 924(c)
DEREK LIVINGSTON,
a/k/a “Wiz”
Life in prison
Mandatory minimum of 5 years in prison
3
Felon in possession of a firearm
18 U.S.C. § 922(g)
DEREK LIVINGSTON,
a/k/a “Wiz”
10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Wednesday 4 March 2020
Wellsville Man Pleads Guilty to Being A Felon in Possession of FirearmsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jason E. Slocum, 44, of Wellsville, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to being a felon in possession of firearms. The charge carries a maximum penalty of 10 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Misha A. Coulson, who is handling the case, stated that on October 1, 2018, a 911 caller reported a domestic dispute at the defendant’s residence on Williams Avenue in Wellsville. Upon arrival, Wellsville police officers found a female sitting inside a vehicle, in the driveway of the residence, smoking a cigarette. She was determined to be a resident of the residence. The woman reported she and Slocum, who have a child together, started arguing that morning. During the argument, the defendant damaged her cellphone and other items around the house. Following the argument, the woman went outside and Slocum locked her out of the house, which prevented her from entering the residence again. The woman also advised officers that her autistic son was still inside with the defendant.
Officers then conducted a room by room safety sweep of the residence to ensure there were not any additional people present in the residence. During that sweep, officers discovered an AK-style rifle in the closet of Slocum’s bedroom.
Subsequently, officers executed a search warrant of the residence and recovered several firearms, including an AK-style semi-automatic rifle, and ammunition. The defendant was previously convicted in 1996 of Attempted Burglary in Allegany County Court, and is legally prohibited from possessing a gun.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the Wellsville Police Department, under the direction of Chief Steven Mattison.Sentencing is scheduled for June 8, 2020, at 9:00 a.m. before Judge Skretny.
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Wallingford Man Admits Downloading Child Pornography from the InternetRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERIC RUNDSTROM, 45, of Wallingford, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of receipt and possession of child pornography.
According to court documents and statements made in court, an FBI investigation revealed that Rundstrom had accessed an online website to connect with others interested in collecting and sharing images and videos depicting the sexual abuse of children. Investigators discovered a link to an online file hosting account associated with Rundstrom where hundreds of images and videos of child pornography had been stored, including images of adult males sexually abusing prepubescent females.
Rundstrom was arrested on a federal criminal complaint on February 14, 2019.
Judge Arterton scheduled sentencing for June 3, 2020, at which time Rundstrom faces a maximum term of imprisonment of 20 years. Rundstrom is released on a $25,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
USP Lewisburg Inmate Charged with MurderRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Lorenzo Scott, age 47, an inmate at the United States Penitentiary at Lewisburg (USP Lewisburg), was indicted by a federal grand jury for murder, assault with intent to commit murder and assault with intent to commit serious bodily injury
According to United States Attorney David J. Freed, the indictment alleges that Scott was an inmate at USP Lewisburg on March 25, 2015, when he assaulted his cellmate and repeatedly struck, stomped and inflicted blunt force trauma to the cellmate’s head, neck and face resulting in life threatening injuries. The cellmate later died as a result of the injuries.
The case was investigated by the FBI. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The charges carry a maximum sentence under federal law of up to life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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U.S. Attorney's Office for the Northern District of Georgia participates in unprecedented elder fraud sweepRead the Press Release
ATLANTA – U.S. Attorney Byung J. “BJay” Pak joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale to announce the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
“Combating fraud perpetrated upon elderly Americans is a top priority of my office and the Department of Justice,” said U.S. Attorney Byung J. “BJay” Pak. “Would-be criminals who prey upon elder U.S. residents and engage in such abhorrent conduct will be subject to criminal prosecution.”
Over the past year, the U.S. Attorney’s Office for the Northern District of Georgia has prosecuted numerous defendants who scammed thousands of Americans, including elder victims, out of over $12 million.
This interactive map provides state by state information on the elder fraud cases and education and prevention community outreach efforts highlighted by the sweep announcement.
Elder Fraud Hotline
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the FBI Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Transnational Elder Fraud Strike Force
This office is one of six districts on the Department of Justice Transnational Elder Fraud Strike Force. The Transnational Elder Fraud Strike Force prosecuted more than one quarter of the defendants charged as part of the announced sweep. Established in June 2019, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Prosecutors in Strike Force districts brought cases against more than 140 sweep defendants. FBI and the Postal Inspection Service served as lead agencies in the Strike Force and committed substantial investigative resources to pursuing elder fraud cases as part of Strike Force efforts. The Strike Force has held dozens of meetings with industry, victim groups, and law enforcement at the federal, state, and local levels to identify the most harmful schemes victimizing American seniors and to bolster preventive measures against further losses.
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
Northern District of Georgia Elder Fraud Cases
Elder fraud prosecutions in this district over the past year included romance, retirement, impersonating the Internal Revenue Service, grandparent, timeshare, and investment fraud.
In 2019, our office prosecuted individuals involved in romance and retirement scams that target the elderly. Romance scams are a type of online fraud in which victims are targeted by individuals posing as potential paramours. The fraudsters create fake online dating profiles (often with photographs of attractive men or women) and use these fake personas to express a romantic interest in the victims in order to trick them into sending money to them or their co-conspirators under false pretenses. Romance scams frequently target vulnerable individuals who possess significant financial assets, such as retired widows or widowers.
- In United States v. Alonge, et al., two defendants pled guilty based upon their involvement in a Nigeria-based romance scam that tricked victims into sending over $1.8 million. Both defendants were sentenced to ten years in prison and ordered to pay restitution in the amount of $1,835,279.00.
- In United States v. Adara, et al., one defendant pleaded guilty based upon his involvement in a Nigeria-based romance scam.
- In United States v. Oye, et al., three defendants pled guilty for their involvement in a West African organized crime group that laundered millions of dollars on behalf of various sophisticated fraud schemes, including romance and retirement fraud schemes. One defendant was sentenced to two years, three months in prison in January 2020.
- In United States v. Odus, et al., two defendants pled guilty and one was sentenced to 18 months incarceration for laundering funds on behalf of a West African group engaging in romance and retirement fund fraud.
- In United States v. MgBodile, the defendant was indicted for his alleged involvement in a romance scam that defrauded a Virginia woman out of more than $6.5 million.
We also prosecuted a number of cases in 2019 involving India-based centers that scammed U.S. residents, including the elderly. Criminal India-based call centers seek to profit by exploiting U.S. residents through various phone scams, including the impersonation of government officials. The call center operators threaten potential victims with arrest, imprisonment, or fines if they do not pay supposed taxes, penalties, or fees. If the victims agree to pay, the call centers then turn to a network of U.S.-based co-conspirators to liquidate and launder the extorted funds.
- In United States v. Excellent Solutions BPO, et al., eight defendants pled guilty and were subsequently sentenced in January 2020 to up to four years and nine months for their involvement in an India-based IRS impersonation scam that victimized thousands of United States residents and resulted in over $3.7 million in losses.
- In United States v. Charania, the defendant was sentenced to one year and four months imprisonment based on his involvement in an India-based call center scam that victimized over 340 people in the U.S., resulting in over $200,000 in losses.
- In United States v. Patel, the defendant was indicted for allegedly using fake identifications to retrieve over $150,000 from over 160 victims of India-based tele-fraud. He pleaded guilty to wire fraud on March 4, 2020.
- In United States v. Thakur, the defendant was indicted for his alleged involvement in an India-based call center scam that victimized approximately 288 people across the U.S., resulting in over $330,000 in losses.
In 2019, Cecilio Nemencio Rodriguez-Rivas was prosecuted for a wire fraud conspiracy in which he and others engaged in a grandparent scam. As part of the scam, co-conspirators of Rodriguez-Rivas made fraudulent telephone calls to elder victims purporting to be the victim’s grandchild. The callers pretended that they were in need of emergency funds, which Rodriguez-Rivas received in Georgia. Rodriguez-Rivas pled guilty and was sentenced to one year and one month in prison.
Also in 2019, our office indicted James Torchia, the CEO of a Georgia company named Credit Nation. Torchia allegedly ran a fraud scheme that caused investors, many of whom were elderly, to spend over $40 million on his company’s promissory notes. Torchia allegedly stole investors’ money by misrepresenting the security of their investments, and how he would use their money.
Katherine Craig was indicted in 2020 on federal charges of mail fraud. Craig allegedly embezzled over $1.7 million dollars from a company she was managing and defrauded over 1000 timeshare owners, most of whom were elderly retirees. Craig operated the timeshare resort where she worked without casualty insurance, even though the Lease Agreements required the resort to maintain casualty insurance. Over the years, the buildings at the resort deteriorated through storm damage and neglect and by early 2016, the resort was in such bad shape that Craig was not allowing any timeshare owners to vacation there anymore.
In addition to prosecuting cases involving elder victims, our office holds quarterly meetings for the Transnational Elder Fraud Strike Force. These quarterly meetings bring together federal, state, and local partners to discuss the latest scams targeting elder Americans, share investigative techniques, and coordinate in the investigation and prosecution of these transnational scams.
The charges are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
We engage in community outreach to educate local law enforcement and residents about how they can assist in the fight against, and protect themselves from, fraud schemes that target elder Americans. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney's Office Reaches Agreement with DeSoto Parish to Increase Accessibility Pursuant to the Americans with Disabilities ActRead the Press Release
SHREVEPORT, La. – United States Attorney for the Western District of Louisiana David C. Joseph announced the signing of an agreement with DeSoto Parish to improve access to all aspects of civic life for persons with disabilities. The agreement is part of the Department of Justice’s Project Civic Access (PCA), a wide-ranging effort to ensure that parishes/counties, cities, towns, and villages comply with the Americans with Disabilities Act (ADA) by working to eliminate barriers that may prevent people with disabilities from participating fully in community and civic life.
DeSoto Parish has worked cooperatively with the Department of Justice and, in signing the settlement, has made significant progress in meeting ADA requirements. Under the settlement agreement, DeSoto Parish will remove barriers to accessibility in buildings, such as government office buildings providing services to its citizens, courthouses, sheriff’s offices, and detention centers. The agreement also requires DeSoto Parish to:
- make physical modifications of facilities to improve accessibility, such as accessible parking, accessible routes into and through the facilities, accessible restrooms, and the provision of services at alternate, accessible locations;
- train staff regarding the requirements of the ADA and appropriate ways of ensuring program access;
- ensure effective communication to individuals with disabilities, including individuals who are deaf or hard of hearing or blind or have low vision; and
- post and publish the identity and functions of the Parish ADA Coordinator, as well as the Parish’s ADA Grievance Procedure Policy.
“The U.S. Attorney’s Office for the Western District of Louisiana stands firm in its commitment to advance the goals of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities,” said U.S. Attorney Joseph. “Our office will continue to support the rights of individuals with disabilities to access civic life.”
Assistant U.S. Attorney Karen J. King handled the case. For more information about the ADA, the agreement and the PCA initiative, individuals may access the ADA web page at: www.ada.gov/civicac.htm or call the toll-free ADA Information Line at: 800-514-0301 or 800-514-0383 (TTY).
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- make physical modifications of facilities to improve accessibility, such as accessible parking, accessible routes into and through the facilities, accessible restrooms, and the provision of services at alternate, accessible locations;
Two Bank Insiders and A Third Man Arrested in Bank Bribery and Money Laundering ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Peter C. Fitzhugh, Special Agent in Charge of the New York Office of Homeland Security Investigations (“HSI”), announced today the arrest of HERODE CHANCY and MICHAEL ALBARELLA, who are both employed as managers at a Manhattan branch of a national bank (“Bank-1”), and ADEDAYO ILLORI for engaging in a scheme to fraudulently obtain business loans and to launder the proceeds of that scheme using a bank account opened with a stolen identity. CHANCY, ALBARELLA, and ILORI were arrested in the New York metropolitan area and are expected to be presented before U.S. Magistrate Judge Kevin Nathaniel Fox in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “Bank employees, Herode Chancy and Michael Albarella, and another individual, Adedayo Illori, allegedly engaged in a scheme to use a stolen identity to secure over $1 million in illegal loans. Furthermore, the defendants allegedly offered the underwriter of the fraudulent loans – who unbeknownst to them was an undercover law enforcement officer – a commission to carry out their scheme. The defendants stated that they wanted to ‘bust out’ the ill-gotten loans, but ironically find themselves busted for serious federal crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “The three subjects in this fraud scheme allegedly thought they could ‘bust out’ of a loan, and steal millions of dollars that wasn’t theirs. But they got caught, and now they’ll have even more trouble ‘busting out’ of their next destination, a federal prison. I want to commend the work done by our law enforcement partners and the FBI New York Joint Organized Crime Task Force, who do all they can to protect the public from fraudsters who use insiders to aid and hide their theft.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “Driven by greed, Chancy and Albarella, allegedly abused their positions as bank officials to perpetrate this loan ‘bust out’ scheme. By allegedly conspiring with Ilori, the three men were responsible for fraudulently obtaining in excess of $1 million in loans while victimizing the lending institution. Utilizing the expertise of HSI New York’s El Dorado Financial Crimes Task Force along with our law enforcement partners, this trio was arrested and will have to face criminal charges including money laundering, wire fraud, identity theft and bank bribery.”
As alleged in the Complaint unsealed in Manhattan federal court[1]:
From at least in or about March 2019 up to and including at least in or about March 2020, CHANCY and ILORI conspired to obtain business loans fraudulently from a third-party commercial lender with the intent to “bust out,” that is, not repay, the loans. CHANCY and ILORI submitted eight fraudulent business loan applications for a total of $1,025,000 in business loans in furtherance of this scam. The business loan applications submitted by CHANCY and ILORI included doctored bank statements and listed the identities of other persons as the loan applicants. CHANCY and ILORI also opened bank accounts using the identities of those other persons in order to receive the loan payments from the third-party commercial lender. CHANCY and ILORI believed that the underwriter for the third-party commercial lender was participating in the scheme and agreed to pay the underwriter a “commission” for the underwriter’s role in the scheme. In reality, however, the underwriter was an undercover law enforcement officer.
To effect their illegal scheme, CHANCY and ILORI conspired with bank insider ALBARELLA to launder approximately $1 million of the expected proceeds of the loan scheme. ALBARELLA opened a bank account at Bank-1 using a stolen identity in order to launder the proceeds of the loan scheme, and ALBARELLA accepted a $10,000 bribe in order to open the bank account.
* * *
CHANCY, 40, and ILORI, 42, are charged with: (1) conspiracy to commit wire fraud, (2) wire fraud, (3) aggravated identity theft, and (4) conspiracy to commit money laundering. ALBARELLA, 34, is charged with: (1) conspiracy to commit money laundering, and (2) bank bribery.
Wire fraud and conspiracy to commit wire fraud, in violation of 18 U.S.C. §§ 1343 and 1349, carries a maximum of 20 years in prison. Aggravated identity theft, in violation of 18 U.S.C. § 1028A, carries a mandatory term of two years in prison, to be served consecutively to any other term of imprisonment. Conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h), carries a maximum term of 20 years in prison. Bank bribery, in violation of 18 U.S.C. § 215, carries a maximum term of 30 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Berman praised the outstanding investigative work of the FBI and HSI.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Tara M. La Morte and Cecilia E. Vogel are in charge of the prosecution.
The allegations in the Complaint 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 Complaint and the description of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegation.
Temple Man Sentenced to 40 Years in Federal Prison for Production and Possession of Child PornographyRead the Press Release
In Waco this morning, a federal judge sentenced 51–year–old Shozo “Sho” Tanaka to 40 years in federal prison for producing and possessing child pornography, announced U.S. Attorney John F. Bash, FBI San Antonio Division Special Agent in Charge Christopher Combs and Temple Police Chief Jim Tobin.
In addition to the prison term, U.S. District Judge Alan Albright ordered that Tanaka pay a $10,000 assessment under the Justice for Victims of Trafficking Act and be placed on supervised release for the remainder of his life after completing his prison term.
“The 40-year sentence imposed in this case is a just punishment for the unconscionable abuse of a child. Our office does nothing more important than prosecuting predators to make sure they can never hurt children again,” stated U.S. Attorney Bash.
On August 6, 2019, Tanaka pleaded guilty to one count of production of child pornography and one count possession of child pornography. According to court records, from August 2014 to June 2018, Tanaka coerced a minor to engage in sexually explicit conduct for the purpose of producing visual images of such activity. On November 19, 2018, officers with the Temple Police Department executed a search warrant at the defendant’s address. At that location, authorities seized numerous electronic items and storage devices. A subsequent forensics review of the seized materials revealed numerous videos that contained video footage of the minor victim being sexually assaulted by the defendant. Tanaka has remained in custody since November 19, 2018.
The FBI and Temple Police Department investigated this case. Assistant U.S. Attorney Greg Gloff prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Surry Man Sentenced for Trafficking in Counterfeit Pills Containing CarfentanilRead the Press Release
Bangor, Maine: A Surry man was sentenced yesterday in federal court in Bangor for holding for sale counterfeit drugs, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Adam Fitzherbert, 55, to two years in prison and three years of supervised release. Fitzherbert pleaded guilty on September 3, 2019.
According to court records, on February 6, 2018, Fitzherbert was arrested at his residence in Surry while agents were executing a search warrant there. While executing the warrant, agents from the U.S. Food and Drug Administration recovered 91 counterfeit Oxycodone HCL pills from Fitzherbert’s bedroom that were later found to contain carfentanil. Fitzherbert admitted purchasing the pills through a “dark web” marketplace.
“The opioid epidemic that has resulted in overdoses and deaths is a national public health crisis. Those who contribute to that crisis by illicitly distributing opioids, whether online or through conventional drug distribution methods, will be brought to justice,” said Special Agent in Charge Jeffrey J. Ebersole, FDA Office of Criminal Investigations’ New York Field Office. “The FDA is fully committed to disrupting and dismantling networks engaged in the manufacturing and sale of illicit opioids and counterfeit prescription drugs. We will continue to pursue and bring to justice those who threaten the health and safety of Americans by distributing dangerous products.”
FDA’s Office of Criminal Investigations, the Maine Drug Enforcement Agency, the Maine State Police, the Hancock County Sheriff’s Office and the Ellsworth Police Department investigated the case. The U.S. Attorney’s Office prosecuted the case as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Sports Bettor Charged with Threatening Tampa Bay Rays Players and Other Professional AthletesRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the filing of a criminal complaint charging Benjamin Tucker Patz (23, New York, New York), a/k/a “Parlay Patz,” with transmitting threats in interstate or foreign commerce. If convicted, Patz faces a maximum penalty of five years in federal prison.
According to the
complaint , in 2019, Patz made numerous threats to carry out violence against professional athletes and/or their family members via Instagram messages, using anonymous accounts. In many of the messages, Patz threatened to enter the athletes’ homes and behead them or their family members. Some of Patz’s threats also contained derogatory terms and racial slurs directed at those individuals.On July 20, 2019, the Tampa Bay Rays lost a home game to the Chicago White Sox. That same day, four baseball players for the Tampa Bay Rays, as well as a baseball player for the Chicago White Sox, received Instagram direct messages from Patz in which he threatened to carry out acts of violence against them. Patz made the following threats to the Tampa Bay Rays players:
- “I will enter your home while you sleep…And sever your neck open…I will kill your entire family…Everyone you love will soon cease…I will cut up your family…Dismember the[m] alive”;
- “Your family’s necks will be severed open with a dull knife!...Your family will die!”;
- “Unfortunately 0-5 against the Chicago White Sox isn’t going to cut it. Because of your sins, I will have to behead you and your family”; and
- “Your family will be beheaded.”
Patz, who resides in both New York and California and goes by the moniker “Parlay Patz,” had recently won more than $1 million by wagering on sports events.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and is part of the Bureau’s Integrity in Sport and Gaming Initiative, which is designed to tackle illegal sports gambling and combat threats of influence from criminal enterprises. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.
South Carolina Man Pleads Guilty to Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky. - A Blacksburg, South Carolina man, Joe Barlow Owens, 44, pleaded guilty in federal court Tuesday, before U.S. District Judge Claria Horn Boom, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.
Owens admitted that on February 25, 2019, in Knox County, he knowingly possessed with intent to distribute more than 50 grams of methamphetamine, and also possessed a firearm in furtherance of this drug trafficking crime. According to his guilty plea agreement, law enforcement officials searched the defendant’s vehicle and found the methamphetamine, cash, and a loaded firearm, that Owens admitted was to protect his drugs and drug proceeds. Owens also admitted that he knew he had a prior felony conviction, for possession with intent to distribute methamphetamine..
Owens was indicted in July 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Brett R. Pritts, Acting Special Agent in Charge for DEA, Louisville Field Division; jointly announced the guilty plea.
The investigation was conducted by the DEA. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
Owens’ sentencing date is TBD. He faces a sentence of not less than 15 years, up to life imprisonment, and a maximum fine of $20 million for the drug offense, and a consecutive sentence of not less than 5 years for the firearm offense. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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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Saint Louis Alderman Larry Arnowitz Indicted for Using Campaign Funds for His Own Personal Use and ExpensesRead the Press Release
St. Louis, MO –Larry Arnowitz, 66, of St. Louis, Missouri, was indicted by a federal grand jury on one count of mail fraud related to his illegal use of campaign funds for his personal use and expenses.
According to the Indictment, Arnowitz serves as the Alderman for the 12th Ward of the City of St. Louis, having first been elected during 2011. Arnowitz maintains his political campaign account under the name “Friends of Larry Arnowitz.” Numerous individuals and organizations have contributed to the Friends of Larry Arnowitz based upon representations that their political donations would be properly and legally used for campaign and reelection purposes. From June, 2015 through February, 2019, Arnowitz instead used donated campaign funds for personal expenses, unrelated to any legitimate campaign or reelection purpose. Arnowitz used funds from the Friends of Larry Arnowitz campaign account to make payments towards his personal residential mortgage and for other personal expenses, and he made substantial cash withdrawals from the account for his own personal use and expenses. In order to conceal his fraud, Arnowitz filed false reports with the Missouri Ethics Commission, which reports failed to identify the many cash withdrawals from the Friends of Larry Arnowitz campaign account, and which failed to identify payments made directly from the Friends of Larry Arnowitz campaign account which were made for his own personal use, unrelated to any campaign or reelection purpose. As one example, on February 13, 2019, Arnowitz withdrew $5,000 from his Friends of Larry Arnowitz campaign account in the form of a cashier’s check, which he then mailed to Ocwen Financial Services in partial payment of his personal residential mortgage. United States Attorney Jeff Jensen stated, “Alderman Arnowitz abused the trust of many individuals and organizations that contributed to his political campaign fund for several years. This type of corruption by our elected officials will not be tolerated, and federal law enforcement will continue to investigate and prosecute these types of criminal schemes in order to insure the integrity of our political processes.” "Rooting out public corruption is a top priority for the FBI because of the abuse of public trust," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "When citizens donate money to an election campaign, they are supporting a candidate to represent them, not to pay for their personal expenses."
If convicted, Arnowitz faces a maximum penalty of 20 years in prison and a $250,000 fine. Restitution is also mandatory. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Repeat Offender Pleads Guilty in Federal Court to Baltimore County Cocaine Distribution ConspiracyRead the Press Release
Baltimore, Maryland – Rondell Ronald Hackett, Jr., age 34, of Middle River, Maryland, pleaded guilty today to the federal charge of conspiracy to distribute and possess with intent to distribute cocaine. At the time of his arrest, Hackett was on supervised release for a previous federal drug conviction.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Colonel Woodrow W. Jones III, Acting Superintendent of the Maryland State Police.
According to Hackett’s plea agreement, HSI and the Baltimore County Police Department were investigating a drug trafficking organization in Baltimore County. Hackett was identified as a member of the organization, along with Tony Lee Bauer, Aaron Kenith Waller, Gary Gaines-Hidalgo, Adrian Gilberto Herrera-Diaz, and Carlos Alejandro Castro-Castro. In December 2017, Gaines arranged to purchase kilograms of cocaine for $26,500/kilogram from a confidential source (CS), who was working with law enforcement. Thereafter, Gaines arranged to resell the cocaine to Herrera for $28,000/kilogram. Gaines and Castro arranged to have 10 kilograms of cocaine delivered to them in Baltimore.
As detailed in his plea, on January 26, 2018, Gaines and Castro entered the United States from Mexico, then traveled to Baltimore. Gaines and Castro agreed to sell three kilograms of cocaine to Herrera, Bauer, and Waller, with additional sales of kilograms of cocaine to follow the initial purchase. Gaines agreed to meet the CS in the parking lot of a Baltimore hotel, and told Herrera, Bauer, and Waller to also meet him there.
Three cars arrived at the agreed-upon location, one driven by the CS. Hackett drove one vehicle with Herrera in the front passenger seat and Gaines in the driver’s side rear passenger seat. Waller drove the third vehicle, with Bauer in the front seat and Castro in the rear passenger seat. Bauer, Herrera, and Gaines exited their vehicles and met with the CS. The CS then opened the trunk of his car, which contained two kilogram-shaped packages, one of powder cocaine and one kilogram of “sham,” or fake narcotics. Gaines placed his hand in the bag containing the packages and members of HSI and the MSP Tactical Team approached. Hackett and Waller attempted to drive away, but were stopped. In Hackett’s car, a loaded 9mm semi-automatic pistol was recovered from the center console and a loaded .45-caliber semi-automatic pistol was recovered from the rear passenger-side floor of the vehicle. On the rear seat was a vinyl bank bag containing bank-banded cash and a white bag containing cash. A search of Bauer also recovered banded-up amounts of cash. In all, law enforcement recovered $129,583 in cash from the defendants, their vehicles, and their residences.
As part of his plea agreement, Hackett will be required to forfeit the two loaded firearms and $129,583 in cash recovered after the arrests of Hackett and his co-defendants, and four vehicles, including a Range Rover, a Mercedes Benz, a Cadillac Escalade, and a Cadillac CTS.
Hackett and the government have agreed that, if the Court accepts the plea agreement, Hackett will be sentenced to between 10 and 15 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for June 26, 2020 at 9:30 a.m.
Gary Gaines-Hidalgo, age 28, and Carlos A. Castro-Castro, age 36, both of Baja California, Mexico, pleaded guilty to the drug conspiracy and were each sentenced to 37 months in federal prison. Tony Lee Bauer, age 37, of Baltimore, Maryland, previously pleaded guilty to the drug conspiracy and to possession of a firearm in furtherance of a drug trafficking crime and Aaron Kenith Waller, age 52, of Crofton, Maryland, previously pleaded guilty to the drug conspiracy. Both are awaiting sentencing.
The final defendant, Adrian Herrera-Diaz, age 29, of Baltimore County, absconded in March 2018 while on home detention with electronic monitoring. Herrera-Diaz was arrested in Georgia in August 2019 and returned to Maryland, where he is scheduled for trial on March 30, 2020. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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. Project Safe Neighborhoods (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.
United States Attorney Robert K. Hur commended HSI Baltimore, the Baltimore County Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher Romano and Derek E. Hines, who are prosecuting the case.
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Reno Man Sentenced to 18 Months in Prison for Threatening to Shoot Bank ManagerRead the Press Release
RENO, Nev. – A Reno resident was sentenced today to 18 months in prison and three years of supervised release for making phone calls in which he threatened to shoot a bank manager, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
In November 2019, a jury convicted Robert Liesse of two counts of interstate communications containing a threat to injure another person. U.S. District Judge Howard D. McKibben presided over the three-day jury trial and today’s sentencing hearing.
According to court documents, Liesse, 54, made two phone calls to Bank of America call centers on July 26 and 27, 2018, threatening to shoot a bank manager. Liesse, who was adamant that he was not joking, told the manager specific details of how and when he planned to carry out his threats. For example, Lisesse repeatedly made threats such as: “I want the money available tomorrow or that guy is not going to see his family. I’m telling you right now. I have a nine millimeter, sixteen rounds in it.” Further, he slipped threatening and derogatory notes under a bank door and threatened three different bank call center operators. He also took a BB gun resembling a real pistol to the bank and pointed it toward security cameras.
The case is a product of an investigation by the FBI and the Reno Police Department. Assistant U.S. Attorneys Andolyn Johnson and James Keller prosecuted the case.
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Rehoboth Beach Man Sentenced to 111 Months in Federal Prison for Gun and Drug ChargesRead the Press Release
WILMINGTON, Del. – Chief U.S. District Judge Leonard P. Stark sentenced Michael Henry, a 40 year-old Rehoboth Beach resident, to 111 months in prison for possessing cocaine with the intent to distribute it, as well as possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, Henry was on probation following a 2017 State of Delaware sexual assault conviction. Because Henry had been twice convicted of federal gun-possession charges, he was prohibited from possessing any firearm.
On February 12, 2019, Henry’s state probation officers learned that Henry was violating his probation by carrying a gun and selling drugs. On the basis of that information, the probation officers searched Henry’s vehicle and residence. As they were conducting the search, law enforcement located Henry hiding underneath a mattress. Dispersed throughout the residence and vehicle, the officers discovered more than 333 grams of cocaine, 14 grams of marijuana, digital scales used to weigh drugs, and several “trap” soda cans—cans with a hidden compartment used to conceal contraband. Concealed between the box springs and the mattress where Henry was hiding, the officers found a loaded 9 mm handgun. Henry confessed that he had been selling the drugs since October 2018.
David C. Weiss, U.S. Attorney for the District of Delaware, commented on the sentence: “Despite having been convicted twice of federal gun charges, and despite being on active probation, this defendant chose to deal drugs while illegally possessing a firearm. Defendant couldn’t hide his person; couldn’t hide his drugs; and couldn’t hide his gun. The message is clear—if you possess a gun and sell drugs we will find you and you will go to jail for a long time.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Delaware State Police, and the Delaware Department of Probation and Parole participated in the investigation. Assistant U.S. Attorney Christopher R. Howland prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:19-cr-00068-LPS.