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Friday 28 February 2020
Mission Man Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on February 24, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Luke Joseph Burning Breast, age 36, was sentenced to 16 months in federal prison, followed by 2 years of supervised release, forfeiture of a firearm, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Burning Breast was indicted by a federal grand jury on August 14, 2019. He was convicted of the charge on December 10, 2019, following a two-day jury trial in Pierre, South Dakota.
The conviction stemmed from Burning Breast being previously convicted of Drug User in Possession of a Firearm, a felony, in U.S. District Court for the District of South Dakota in 2008. On April 9, 2019, in Rosebud, South Dakota, Burning Breast was at a residence when a heated altercation ensued between him and his domestic partner. Law enforcement was contacted and responded to the residence. At the scene, officers overheard Burning Breast say his rifle was placed outside during the argument. Upon questioning, Burning Breast affirmed the location of the rifle and acknowledged his prior felony conviction, but erroneously asserted the conviction was expunged. Officers found the rifle outside the residence as Burning Breast described. Burning Breast’s felony conviction had not been expunged and remained valid.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Michael Elmore prosecuted the case.
Burning Breast was immediately turned over to the custody of the U.S. Marshals Service.
Miami Resident Sentenced to 25 Years in Prison for Sex Trafficking a MinorRead the Press Release
Jim Lundi, 38, of Miami, was sentenced to a total of 300 months in prison by U.S. District Judge Robert N. Scola, Jr. after pleading guilty to sex trafficking a minor.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, and Alfredo Ramirez, Director, Miami-Dade Police Department (MDPD), made the announcement.
According to the court record, in November 2017, the defendant met the 16-year-old victim, who was homeless and addicted to drugs, and saw an opportunity. The victim began living with him in an abandoned house in Miami. Shortly thereafter, the defendant discussed going into “business” with the victim. The defendant taught the victim how to use websites such as Backpage to advertise sex for money. He took nude photographs of the victim and then posted them on various websites including Backpage and listed his phone number in the advertisements as the method of contact.The defendant communicated with potential customers who responded to the advertisements and set up dates for the victim. Before meeting with a customer, the defendant often told the victim, “condoms, money, don’t play games.” He set the prices for the commercial sex acts and kept all of the money. The defendant regularly beat the victim for not making enough money from commercial sex acts or for trying to keep some of the money that she had earned. He frequently only gave the victim small amounts of drugs at a time, knowing that she had a strong addiction, in order to maintain control over her.
Also according to the court record, sometime in January 2018, the defendant transported the victim to a motel in Hollywood, Florida, where they stayed for approximately two weeks. During this time, the victim engaged in commercial sex acts inside the motel room while the defendant hid in the closet. The defendant then took the victim back to Miami because he wanted to make more money. After returning to Miami, the victim escaped from the defendant after he beat her and dragged her down a street. The victim broke away from the defendant and ran into a nearby restaurant – scraped, battered, and without pants. A good samaritan called the police and the victim was transported to a hospital.
Following his release from prison, Lundi will be on supervised release for 25 years and must register as a sexual offender (Case No. 19cr20075).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and assistance from the FBI Behavioral Analysis Unit and Operational Technology Division, National Center for Missing and Exploited Children, and the Miami-Dade State Attorney’s Office.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI Miami Child Exploitation and Human Trafficking Task Force, MDPD, and all those who assisted in this matter. This case was prosecuted by Assistant U.S. Attorneys Jessica Kahn Obenauf and Rilwan Adeduntan.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican Citizen Sentenced in Major Drug Trafficking Ring for Methamphetamine and CocaineRead the Press Release
United States Attorney Joe Kelly announced that on February 28, 2020, Jose Ivan Contreras-Gomez, 30, of Mexico, was sentenced to 120 months’ imprisonment for Possession with Intent to Distribute 50 Grams or More of Methamphetamine and 500 grams or more of Cocaine by United States District Judge Robert F. Rossiter, Jr. There is no parole in the federal system. He was also sentenced to 5 years of supervised release following his release from prison. Contreras-Gomez is also subject to deportation and removal from the United States after serving his prison term.
On September 5, 2018, a confidential human source (CHS), equipped with audio and video recording devices, met with Contreras-Gomez and purchased 452.68 grams of methamphetamine. Law enforcement executed a search on Contreras-Gomez’s home and seized 2 kilos of cocaine, $11,215 in U.S. currency, a handgun, ammunition, scales and drug trafficking ledgers.
This case was part of the Greater Omaha Safe Streets Initiative and investigated by the Federal Bureau of Investigation and Omaha Police Department.
Metro Denver Carjacker/Gun Store Robber Sentenced to 8 Years in Federal PrisonRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Jonathan Estrada, age 21, of Denver was sentenced yesterday to serve 96 months (8 years) in federal prison followed by 3 years on supervised release for carjacking and robbery of two gun stores. Estrada appeared at the sentencing hearing in custody and was remanded at its conclusion. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Field Division joined in this announcement.
Estrada and others were involved in violent “smash and grab” burglaries of two gun stores, stealing at least 30 firearms.
According to the stipulated facts from the plea agreement, on September 19, 2017, Estrada and another person burglarized Reloader’s gun store in Arvada, Colorado, after throwing a rock through a glass window. They stole seventeen firearms and left in a stolen vehicle.
On the morning of December 26, 2017, Estrada committed an armed carjacking in Arvada, where he fired a shot at an individual, then stealing the victim’s 2008 BMW.
On January 18, 2018, the defendant and five others burglarized Murdoch’s gun store in Littleton. They entered the store after throwing a rock through a glass window. They spent 3 minutes in the store, stealing 13 AR-15 style firearms. That evening, the ATF executed a search warrant at Estrada’s address. Agents found evidence related to the September 19, 2017 and January 18, 2018 gun store burglaries, as well as the armed carjacking.
“Gun crime is a top priority for the Department of Justice and our office,” said U.S. Attorney Jason Dunn. “Seizing these weapons and putting this defendant in prison for 8 years will unquestionably make our communities safer.”
“The community is safer as a result of this investigation,” said ATF Denver Field Division Special Agent in Charge David Booth. “ATF will combat violent crime with every resource as its disposal.”
This case was investigated by the ATF. The defendant was prosecuted by Assistant U.S. Attorney Emily Treaster. The sentence was handed down by U.S. District Court Judge Robert E. Blackburn.
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. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Meriden Man Pleads Guilty to Federal Tax OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that DONALD CARIATI, JR., 44, of Meriden, waived his right to be indicted and pleaded guilty today in New Haven federal court to obstructing the IRS.
According to court documents and statements made in court today, Cariati owns and operates Cariati Developers Inc. (“CDI”), a snowplow and hauling business based in Wallingford. Between 2013 and 2017, Cariati paid several CDI employees with company checks asserting that they were independent contractors or subcontractors in order to evade the responsibility to withhold and pay over taxes to the IRS. However, Cariati and CDI failed to issue Forms 1099 to these “subcontractors” for particular years. Cariati also informed certain individuals that they were being paid off the books, meaning that their pay was not reported to the IRS.
In late 2015, the IRS began an audit of CDI. During the course of this audit, Cariati caused fraudulent invoices to be made available to an IRS revenue agent. The invoices were purported to have been created in 2013 and purported to substantiate that individuals were appropriately considered subcontractors.
The investigation also revealed that, in 2014, CDI paid an invoice related to products for Cariati’s cigarette boat. During the IRS audit, Cariati caused his accountant to provide to the IRS a false invoice to make it appear that the purchase was a business expense and not a personal expense.
As part of his plea agreement, Cariati agrees that the tax loss in this case is between $550,000 and $1.5 million.
Cariati pleaded guilty to one count of obstructing or impeding the due administration of the Internal Revenue laws, an offense that carries a maximum term of imprisonment of three years. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea on June 4, 2020.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Mental Health Clinic Owner Sentenced to 18 Months of Imprisonment After Making False Claims to Medicaid for Services Allegedly Provided to Deceased PatientsRead the Press Release
St. Louis, MO – Naim Muhammad, 56, of St. Charles, MO, was sentenced today to 18 months of imprisonment after previously pleading guilty to one count of making a false claim to Medicaid on November 18, 2019 before U.S. District Judge Audrey G. Fleissig. Mr. Muhammad was also ordered to pay $366,185 as restitution to the Missouri Medicaid program, a health care benefit program that provides medical items, benefits, and services to low income citizens of Missouri.
According to the plea agreement, Mr. Muhammad was the President of a business named Community Behavior Health (“CBH”). CBH maintained an office in the City of St. Louis, Missouri. Mr. Muhammad had no psychiatric training or license.
Mr. Muhammad billed the Missouri Medicaid program for mental health therapy services to a patient identified by her initials as W.W. Mr. Muhammad told Medicaid that a licensed provider with the initials D.P. had provided the therapy to W.W. on June 21, 2017. However, Mr. Muhammad’s statements were false and fraudulent in that patient W.W. was not treated by the licensed provider D.P. on June 21, 2017, the date of service shown in defendant’s therapy records for W.W. Mr. Muhammad’s statements were material to the Missouri Medicaid program because the program does not pay for services that are not actually provided to the patient, and does not pay for mental health services that are provided by unlicensed individuals.
The Indictment in this case further alleged that Mr. Muhammad repeatedly billed the Missouri Medicaid program for therapy services allegedly provided on dates when the patient was actually deceased, and therefore unable to receive any services. For example, patient W.W. died on June 8, 2017, before the alleged June 21, 2017 session that was billed to the Missouri Medicaid program.
“When individuals rig the Medicaid system for personal gain, it hurts those who legitimately require treatment and the taxpayers who pay into the system. I’m pleased that our Medicaid Fraud Control Unit and the U.S Attorney’s Office are able to work together to root out and prosecute this fraud” said Eric Schmitt, the Attorney General of Missouri.
This case was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office, with assistance from the Federal Bureau of Investigation and the Division of Professional Registration of the Missouri Department of Commerce and Insurance.
Manhattan U.S. Attorney Announces Guilty Plea of U.S. Accountant in Panama Papers InvestigationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York and Brian A. Benczkowski, Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced today that RICHARD GAFFEY, a/k/a “Dick Gaffey,” pled guilty today before U.S. District Judge Richard M. Berman to wire fraud, tax fraud, money laundering, aggravated identity theft, and other charges. GAFFEY, a resident of Massachusetts, is charged along with Harald Joachim von der Goltz, Ramses Owens, and Dirk Brauer in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (“Mossack Fonseca”), a Panamanian-based global law firm, and its related entities. Harald Joachim von der Goltz pled guilty to his role in the scheme on February 18, 2020.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Richard Gaffey went to extraordinary lengths to circumvent U.S. tax laws in order to maintain Harald Joachim von der Goltz’s wealth and hide it from the IRS. Using the specialized criminal services of global law firm Mossack Fonseca, Gaffey assisted others in violating U.S. tax laws for decades.”
Assistant Attorney General Brian A. Benczkowski said: “This defendant worked with the Mossack Fonseca law firm and exploited his role as an accountant to create fraudulent shell companies and defraud the United States of millions of dollars over decades. Today’s guilty plea reflects the Department’s commitment to prosecute financial professionals and other gatekeepers to the U.S. financial system who abuse the public’s trust.”
According to the allegations contained in the Indictments[1], other filings in this case, and statements during court proceedings, including GAFFEY’s guilty plea hearing:
Since at least 2000 through 2018, GAFFEY conspired with others to defraud the United States by concealing his clients’ assets and investments, and the income generated by those assets and investments, from the Internal Revenue Service (“IRS”) through fraudulent, deceitful, and dishonest means. During all relevant times, GAFFEY assisted U.S. taxpayers who were required to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts. GAFFEY helped those U.S. taxpayers evade their tax reporting obligations in a variety of ways, including by hiding the beneficial ownership of his clients’ offshore shell companies and setting up bank accounts for those shell companies. These shell companies and bank accounts made investments totaling tens of millions of dollars. For one U.S. taxpayer, GAFFEY advised how to covertly repatriate approximately $3 million to the United States by reporting to the IRS a fictitious company sale that never actually occurred to evade paying the full U.S. tax amount. GAFFEY was assisted in this scheme through the use of Mossack Fonseca, including Ramses Owens, a Panamanian lawyer who previously worked at Mossack Fonseca.
GAFFEY was the U.S. accountant for Harald Joachim von der Goltz. From 2000 until 2017, von der Goltz was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income. In furtherance of von der Goltz’s efforts to conceal his assets and income from the IRS, GAFFEY falsely claimed that von der Goltz’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and – unlike von der Goltz – was not a U.S. taxpayer. In support of this fraudulent scheme, GAFFEY submitted the name, date of birth, government passport number, address, and other means of identification of von der Goltz’s elderly mother to a U.S. bank in Manhattan.
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GAFFEY, 75, a U.S. citizen and resident of Medfield, Massachusetts, pled guilty to one count of conspiracy to commit tax evasion and to defraud the United States, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison; four counts of willful failure to file Reports of Foreign Bank and Financial Accounts, FINCEN Reports 114, each of which carries a maximum sentence of five years in prison; and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.
GAFFEY is scheduled to be sentenced by Judge Berman on is June 29, 2020, at 11:00 a.m. Von der Goltz is scheduled to be sentenced by Judge Berman on June 24, 2020, at 11:00 a.m.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
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U.S. Attorney Berman praised the outstanding investigative work of IRS-Criminal Investigation and Homeland Security Investigations, and thanked the Justice Department’s Tax Division and the Federal Bureau of Investigation for their significant assistance in the investigation. Mr. Berman also thanked the Criminal Division’s Office of International Affairs as well as law enforcement partners in France, the United Kingdom, Panama, and Germany for their assistance in the case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit, working in partnership with the Money Laundering and Asset Recovery Section of the Criminal Division. Assistant United States Attorneys Eun Young Choi and Thane Rehn, along with Trial Attorneys Michael Parker and Parker Tobin of the Money Laundering and Asset Recovery Section, are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein constitute only allegations as to Owens and Brauer, and every fact described should be treated as an allegation.
Manager of Marijuana Cultivation Site in Shasta Trinity National Forest ArrestedRead the Press Release
SACRAMENTO, Calif. — Custodio Ibarra Nunez, 37, of Merced, was arrested pursuant to a federal arrest warrant today. On Jan. 30, 2020,a federal grand jury returned a three-count indictment against Nunez, charging him with conspiracy to cultivate marijuana, marijuana cultivation, and depredation of public lands in the Shasta-Trinity National Forest, U.S. Attorney McGregor W. Scott announced.
This indictment relates to the same conspiracy charged in U.S. v. Lopez Pena et al. (2:19-cr-123). According to court documents, between May 23 and July 8, 2019, Nunez was a manager in a conspiracy to cultivate over 4,000 marijuana plants south of Rays Peak in Shasta-Trinity National Forest with three other co-conspirators, including an uncharged 17-year-old minor. In addition to the cultivation charges, Nunez is charged with committing depredation of federal lands and resources.
This case is the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Office, the California Department of Fish and Wildlife, the Bureau of Land Management, the Trinity County District Attorney’s Office the Merced Area Gang and Narcotics Team, Merced County Sheriff’s Office, the Atwater Police Department, and the Redding Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted of either of the marijuana charges, Nunez faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a fine of up to $10 million. If convicted of damaging public lands, he faces a maximum penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Man Charged in Kidnapping and Death of Pennsylvania Woman Whose Body Was Found in Nevada DesertRead the Press Release
LAS VEGAS, Nev. – A Pennsylvania resident has been charged for allegedly kidnapping and killing a woman whom he led to believe was his girlfriend, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.
John Matthew Chapman, 40, was charged by criminal complaint in the District of Nevada on February 20, 2020 with one count of kidnapping resulting in death. Chapman is currently in state custody at Allegheny County jail in Pennsylvania, where he awaits his initial court appearance in federal court on the Nevada criminal complaint. The initial appearance is scheduled for March 2, 2020 in the Western District of Pennsylvania.
According to information contained in the criminal complaint, on November 14, 2019, the Bethel Park Police Department in Pennsylvania conducted a welfare check on the victim at the request of a friend. During the welfare check, neighbors stated that they had not seen the victim or her van in approximately two months, but they had recently observed a person whom they believed to be her boyfriend (Chapman) entering and leaving the victim’s residence. Inside the victim’s residence, officers found a fake CIA identification card with Chapman’s name and photograph, the victim’s cellular telephone, multiple zip ties, and a roll of duct tape.
A family member of the victim told investigators that she was communicating with the victim’s Facebook messenger account. Law enforcement determined that Chapman was pretending to be the victim, including responding to messages as the victim after her death.
On November 15, 2019, Chapman was arrested and interviewed by Bethel Park Police Department detectives. During the interview, Chapman admitted that in September 2019 he drove the victim from Bethel Park, Pennsylvania to Las Vegas, Nevada. He further admitted that he misled the victim to believe the trip was a vacation and they would potentially purchase a residence in Las Vegas. Chapman, however, had planned to kill the victim and had a “kill kit” ready before their departure to Nevada.
Chapman told investigators that he drove the victim out to the desert in Lincoln County, Nevada. Under the pretext of a photo shoot, he bound her hands and feet with plastic zip ties and affixed her to a signpost. He then applied duct tape to her mouth and nose, and watched her die from asphyxiation. After the victim’s body was later discovered, she was a “Jane Doe” unknown decedent until she was later positively identified by the Clark County Office of the Coroner/Medical Examiner through dental records.
The investigation revealed that Chapman returned to Pennsylvania afterwards, and continuously used the victim’s residence following her death and passed it off as his own.
If convicted, Chapman faces the maximum penalty of life in prison or death. A complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is the product of an investigation by the FBI. Assistant U.S. Attorneys Lisa Cartier-Giroux and Allison Reese are prosecuting the case.
The publicly filed criminal complaint can be found here.
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Leader of Mendota MS-13 Gang Pleads Guilty to Drug Trafficking and Assault with a Deadly WeaponRead the Press Release
FRESNO, Calif. —Denis Barrera-Palma, 25, of Mendota, pleaded guilty today to assault with a deadly weapon in aid of racketeering and conspiracy to distribute and to possess with intent to distribute methamphetamine, cocaine, and marijuana, U.S. Attorney McGregor W. Scott announced.
Barrera-Palma was the leader in Mendota of La Mara Salvatrucha (MS-13), a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking.
The investigation began after reports that MS-13 had established a presence in and around Mendota, a Central Valley town 35 miles west of Fresno. Investigators found evidence of broad criminal activity, including murder, assault, firearms possession and drug trafficking activity. In August 2018, 25 individuals associated with MS-13 were arrested on federal and state charges in connection with their gang activities, including assault with a dangerous weapon in aid of racketeering and conspiracy to distribute and possess with intent to distribute controlled substances.
According to court documents, on May 14, 2018, Barrera-Palma, along with others, assaulted another individual with a pipe in front of an elementary school in Mendota in order to gain entrance to, or maintain or increase his status within MS-13.
The investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Federal Bureau of Investigation, Homeland Security Investigations (HSI), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). Assistant U.S. Attorneys Ross Pearson, Kathleen Servatius, and Kimberly Sanchez are prosecuting this and related cases. Senior Deputy District Attorney Dennis Lewis is working with the team and prosecuting related cases in Fresno County Superior Court.
Four of Barrera-Palma’s co-defendants have pleaded guilty. On Jan. 27, Claudia Lizaola, 40, of San Bernardino, was sentenced to 10 years in prison for conspiracy to distribute methamphetamine. Other co-defendants are scheduled for trial on April 14. These remaining defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Barrera-Palma is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on July 10. Barrera-Palma faces a maximum statutory penalty of 40 years in prison and a $1.25 million fine. The actual sentence, however, will 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.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Lead defendant pleads guilty in Texas-to-Ohio heroin distribution ringRead the Press Release
DAYTON – Gene Talley, 48, of Dayton, pleaded guilty in U.S. District Court to conspiring to distribute more than 100 grams of heroin.
According to court documents, beginning in 2007, Talley would meet with an individual in Austin, Texas to obtain controlled substances, including heroin, to distribute in the Southern District of Ohio.
Talley also arranged for other individuals to collect the drugs and bring them to Ohio for distribution. In addition, he directed individuals to transport money back to the individual in Texas.
On three occasions, money intended for delivery in Texas was seized by law enforcement, including approximately: $99,000 seized by police in Austin, Texas in December 2012; $230,000 seized by police in Chicago in June 2015; and $240,000 seized by police in Winfield, Texas.
Talley pleaded guilty on Feb. 26 to conspiring to distribute more than 100 grams of heroin. A sentence of between 60 to 150 months in prison has been recommended for the Court’s consideration.
Four co-defendants have also pleaded guilty in connection to this case.
Brianna Reid pleaded guilty in federal court in Dayton today.
Adriauna Smith, Syreeta Scruggs and Kenneth Patterson each pleaded guilty in January or February and are scheduled to be sentenced during the week of May 18.
Congress sets the minimum and maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI); Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA) and the DEA’s Drug Task Force announced the pleas entered into before U.S. District Judge Walter H. Rice. Assistant United States Attorneys Amy M. Smith and Andrew J. Hunt are representing the United States in this case.
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Last of Five East Bay Contractors Sentenced in Mail Fraud SchemeRead the Press Release
OAKLAND – Kevin Laney was the last of five defendants sentenced for their respective roles in a mail fraud scheme, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable Yvonne Gonzalez Rogers, United States District Judge, sentenced Laney to the 25 months he had already served in prison for his role in the scheme.
Laney, 52, of Bozeman, Montana, pleaded guilty to the charge on August 15, 2019. Specifically, Laney admitted he conspired with Brian Federico, 54, of Tracy, Calif., to defraud Laney’s employer at the time, Matrix Service Company. The mail fraud scheme also was the subject of a two-week trial in September of 2019, at the conclusion of which a jury found Federico guilty of one count of mail fraud conspiracy and two counts of mail fraud.
According to documents submitted at trial, Matrix provides tank construction, maintenance and repair services to petrochemical companies. Federico was a project manager for Imperial Shotcrete, a company hired to perform concrete construction services as a subcontractor for Matrix. The evidence at trial showed that Matrix and the FBI uncovered a complex scheme that took place between 2007 and 2010, in Matrix’s Suisun City, Calif., office, where Laney worked as a Senior Project Manager.
As part of the scheme, Federico caused Matrix to pay fraudulent and inflated invoices to Imperial, with the proceeds of the scheme then being paid downstream to Laney and Federico. Federico created false and fraudulent invoices both by using the name and logo of a real company without its authorization, and by using bogus invoices from C.E.M.S., another company Federico controlled. Federico also instructed Laney and another Matrix Project Manager to submit fraudulent invoices from fake companies to Imperial, and persuaded his employer, Imperial, to pass those bogus charges onto Matrix for payment. Most of the funds that Matrix paid on the fraudulent invoices eventually were deposited into bank accounts that Federico controlled. Pursuant to his scheme, Federico defrauded Matrix of a total of $1,289,403, with more than $875,000 of the payments ultimately being deposited into bank accounts he controlled. After Matrix and the FBI uncovered the scheme, Matrix reimbursed its customers more than $1.3 million in charges they unwittingly passed on to their customers as a result of the fraud scheme.
Many of the fraudulent invoices Federico and Imperial submitted to Matrix were submitted for payment approval to Laney and another Matrix project manager, Brandon Hourmouzus. For his role in the scheme, Laney submitted fraudulent invoices totaling $1.01 million under the name of his fake company, Rogue Consultants, for work not performed. Those invoices were paid in full by Imperial, but only after it had successfully passed the costs onto Matrix, and been paid by Matrix. The scheme continued under a third Matrix Project Manager, Charles Burnette, who passed fake costs through Imperial and its owner, Miguel Ibarria, onto Matrix for payment
On December 6, 2012, a federal grand jury indicted Federico, Laney, and their co-defendants, charging each with various financial crimes related to the scheme. Hourmouzus, Burnette, and Ibbaria all pleaded guilty to conspiracy charges related to their respective role in the scheme. In addition, all three testified at Federico’s trial.
Federico, Laney and their co-defendants were sentenced as follows:
Defendant's Name Age/Residence Charge(s) Sentence Brian Federico54/Tracy, California
Conspiracy to Commit Fail Fraud, 18 U.S.C. § 1349
Mail Fraud,18 U.S.C. § 1341 (two counts)
Sentenced 1/24/20 to 60 months in prison, three years of supervised release, a $50,000 fine, a $300 special assessment, and $1,287,000 in restitution. Kevin Laney52/Bozeman, Montana
Conspiracy to Commit Mail Fraud, 18 U.S.C. § 1349
Sentenced 2/27/20 to time served of 25 months in prison, one year of supervised release, a $100 special assessment, and restitution to be determined. Brandon Hourmouzus45/Vacaville, California
Conspiracy to Commit Fail Fraud, 18 U.S.C. § 1349 Sentenced 10/08/2015 to three years and six months probation, $100 special assessment, and $196,410 restitution. Charles Burnette38/Aliso Viejo, California
Conspiracy to Commit Fail Fraud, 18 U.S.C. § 1349Sentenced 09/11/2014 to five years’ probation, $100 special assessment, and $145,149 restitution.
Miguel Ibarria60/Tracy California
Conspiracy to Commit Fail Fraud, 18 U.S.C. § 1349 Sentenced 12/15/15 to four years’ probation, and a $100 special assessment.Judge Gonzalez Rogers concluded that both Federico and Laney were deserving of sentencing enhancements for using sophisticated means to accomplish the illegal goals of the conspiracy. Federico also received a sentencing enhancement for being the leader organizer of the conspiracy, and Laney received a sentencing enhancement for abusing the trust of his employer, Matrix.
Judge Gonzalez-Rogers ordered the parties to return to Court on April 2, 2020, for a further hearing regarding restitution.
Assistant U.S. Attorneys Thomas R. Green and Jonathan U. Lee are prosecuting this case with the assistance of Jessica Rodriguez Gonzalez, Tina Rosenbaum, and Noble Hughes. This prosecution is the result of an investigation by the Federal Bureau of Investigation.
Lancaster Man Arrested for Robberies in Massachusetts and New HampshireRead the Press Release
BOSTON – A Lancaster man was arrested yesterday and charged in connection with a series of unarmed robberies committed in Massachusetts and New Hampshire between November 2019 and February 2020.
Matthew Alden, 26, was charged in a criminal complaint with two counts of interference with commerce by threats or violence. Alden was arrested yesterday evening and detained pending a detention hearing set for March 5, 2020.
According to charging documents, on Feb. 4, 2020, Alden robbed a TD Bank on Main Street in Athol, Mass., and on Feb. 21, 2020, Alden allegedly robbed an Avidia Bank on Maple Avenue in Shrewsbury. During both robberies, Alden wore a black ski mask and black gloves and demanded cash from the bank tellers. Alden is allegedly connected to the eight other robberies listed below:
• Nov. 21, 2019: Enterprise Bank on Littleton Road in Westford;
• Dec. 2, 2019: TD Bank on Main Street in Athol;
• Dec. 11, 2019: Honey Farms on Leominster-Shirley Road in Lunenburg;
• Dec. 12, 2019: Cornerstone Bank on South Main Street in Leicester;
• Dec. 27, 2019: Avidia Savings Bank on Maple Street in Marlborough;
• Jan. 10, 2020: Metro Credit Union on Worcester Road in Framingham;
• Jan. 10, 2020: TD Bank on Central Street in Foxborough; and
• Feb. 13, 2020: Citizens Bank on North Eastern Boulevard in Nashua, N.H..
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 on each count. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistance was provided by the Massachusetts State Police and the Westford, Athol, Lunenberg, Leicester, Marlborough, Framingham, Foxborough, Shrewsbury, Clinton, Lancaster, Millbury and Nashua (N.H.) Police Departments. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kernersville Man Sentenced to Prison for Impersonating a Federal Law Enforcement OfficerRead the Press Release
GREENSBORO, N.C. - A Kernersville man was sentenced today in federal court in Greensboro for impersonating a Deputy United States Marshal, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
MICHAEL ROBERT KWASNIEWSKI, age 38, was sentenced to a total term of imprisonment of 16 months by Senior United States District Judge N. Carlton Tilley, Jr. In addition to prison time, KWASNIEWSKI was ordered to serve three years of supervised release and to pay a fine of $2,000 and a special assessment of $100.00. KWASNIEWSKI pleaded guilty on March 6, 2019.
On October 30, 2018, KWASNIEWSKI was indicted for impersonating a United States Marshal. He was released on November 8, 2018, pending trial and advised that the commission of a federal felony while on release could result in enhanced penalties. On December 10, 2018, KWASNIEWSKI entered a Kohl’s department store in Kernersville wearing a grey t-shirt with a United States Marshals Service (“USMS”) emblem on the front and had a USMS badge draped around his neck. He was also armed with a handgun on his right side. Over the course of several hours in the store that night, KWASNIEWSKI displayed the badge and repeatedly identified himself to store employees as a “U.S. Marshal.”
The case was investigated by the United States Marshals Service, the Kernersville Police Department, and the Winston-Salem Police Department. The case was prosecuted by Assistant United States Attorney Meredith C. Ruggles.
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Justice Department Settles with Tufts Medical Center to Better Ensure Equal Access to Individuals with DisabilitiesRead the Press Release
BOSTON – The U.S. Attorney’s Office has entered into a settlement agreement with Tufts Medical Center to ensure equal access for individuals with disabilities at its facilities in Boston.
The agreement resolves a compliance review under Title III of the Americans with Disabilities Act (ADA). Under the three-year Agreement, Tufts will:
- improve the hospital’s policies, practices and procedures for ensuring effective communication with patients and companions who are deaf or hard of hearing (including an assessment to determine appropriate Auxiliary Aids and Services, and providing qualified interpreters in a timely way);
- improve physical access to its facilities by removing barriers at public and common use areas;
- provide one or more accessible patient rooms on every medical department;
- provide sufficient accessible medical equipment to ensure individuals with disabilities have equal access to medical services (at least one of each type per clinical service); and
- Designate an ADA Compliance Officer and an Effective Communication Coordinator.
“This case is a reminder that we still need the basic protections provided by the ADA,” said U.S. Attorney Andrew Lelling. “This is especially true for the deaf and hard-of-hearing, who often receive too little support when trying to navigate the healthcare system. I commend Tufts for working with us to improve services for patients with disabilities, and we hope this agreement encourages other healthcare providers to review their ADA compliance.”
“No one with a disability should face unlawful barriers to accessing health care facilities or receiving medical treatment,” said the head of the Civil Rights Division, Assistant Attorney General Eric Dreiband. “This agreement reflects the Department’s continued commitment to enforcing the Americans with Disabilities Act to ensure equal access for individuals with disabilities to medical care, and we appreciate Tufts’ full cooperation with the Department throughout the investigation.”
The settlement agreement is posted here: https://www.ada.gov/tufts_medical_ctr_sa.html.
Assistant U.S. Attorney Gregory Dorchak of Lelling’s Civil Rights Unit handled the matter with Senior Trial Attorney Alyse Bass of the Justice Department’s Disability Rights Section.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Justice Department Settles with Tufts Medical Center to Better Ensure Equal Access for Individuals with DisabilitiesRead the Press Release
Today, the Justice Department and Tufts Medical Center entered into a settlement agreement to ensure equal access for individuals with disabilities at Tufts’ facilities in Boston, Massachusetts. The agreement resolves a compliance review under Title III of the Americans with Disabilities Act (ADA). Under the agreement, Tufts will:
- improve the hospital’s policies, practices, and procedures for ensuring effective communication with patients and companions who are deaf or hard of hearing;
- improve physical access to its facilities by removing barriers at public and common use areas;
- provide one or more accessible patient rooms for each medical service; and
- provide sufficient accessible medical equipment to enable individuals with disabilities to have equal access to medical services.
“No one with a disability should face unlawful barriers to accessing health care facilities or receiving medical treatment,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This agreement reflects the Department’s continued commitment to enforcing the Americans with Disabilities Act to ensure equal access for individuals with disabilities to medical care, and we appreciate Tufts’ full cooperation with the Department throughout the investigation.”
“This case is a reminder that we still need the basic protections provided by the ADA,” said U.S. Attorney Andrew Lelling. “This is especially true for the deaf and hard-of-hearing, who often receive too little support when trying to navigate the healthcare system. I commend Tufts for working with us to improve services for patients with disabilities, and we hope this agreement encourages other healthcare providers to review their ADA compliance.”
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
NOTE: The settlement agreement can be found here.
Justice Department Settles Disability-Based Housing Discrimination Lawsuits with Owners and Developers of 11 Apartment Complexes in Puerto RicoRead the Press Release
The Justice Department announced today that the owners and developers of 11 multi-family housing complexes in Puerto Rico, whose buildings include more than 650 rental units, have agreed to pay a combined $335,000 to resolve claims that they violated the Fair Housing Act and the Americans with Disabilities Act by building apartment complexes that were inaccessible to persons with disabilities. As part of the settlement, the companies also agreed to make substantial retrofits to remove accessibility barriers.
Two separate consent orders, which must still be approved by the U.S. District Court for the District of Puerto Rico, resolve the government’s lawsuits filed with the court along with the consent orders against Puerto Rico-based developers Fernando L. Sumaza & Co. Inc. and Star Management Corp. and their affiliated companies. Under the terms of the settlements, the defendants must take extensive corrective actions to make the complexes accessible to persons with disabilities. These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb ramps and walkways to allow persons with disabilities to access units from sidewalks and parking areas, replacing cabinets in bathrooms and kitchens to provide sufficient room for wheelchair users, and removing accessibility barriers in public and common use areas at the complexes. The defendants will pay a combined $325,000 to establish two settlement funds for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations. A $10,000 civil penalty also will be paid to the United States.
“The Fair Housing Act and Americans with Disabilities Act prohibit discrimination on the basis of disability and guarantee the rights of disabled individuals to access housing of their choice,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to aggressively enforce these laws to ensure that residential multi-family housing is built with the required accessible features.”
“Access to housing free from discrimination is a right afforded to all Americans and is crucial to the development of our communities,” said U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico. “This settlement is an example of our office’s continuing efforts to enforce anti-discrimination laws that protect those rights.”
The Consent Orders also require the defendants to receive training about the Fair Housing Act and Americans with Disabilities Act to ensure that all future multifamily housing construction complies with these laws and to provide periodic reports to the Justice Department.
The 11 complexes at issue, all of which were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program or other federal programs, are:
Fernando L. Sumaza & Co., Inc. Affiliated Properties
- La Inmaculada Elderly, San Juan, PR
- Marie Gardens, Cabo Rojo, PR
- San Cristobal, San Juan, PR
- San Fernando Elderly Center, Mayagüez, PR
- Virgen del Pozo, Sabana Grande, PR
Star Management Corp. Affiliated Properties
- Florida Elderly, Florida, PR
- Isabela Elderly, Isabela, PR
- Monserrate Elderly, PR
- Morovis Elderly, PR
- Patillas Elderly, Patillas, PR
- Sunrise Elderly, San Juan, PR
Those who are entitled to share in the settlement funds will be identified through a process established in the Consent Orders. Persons who believe they may have been harmed by the inaccessible conditions at any of these properties, either when they or someone associated with them lived there or considered living there, should contact the Justice Department. For Fernando L. Sumaza & Co., Inc. affiliated properties, call toll-free at 1-800-896-7743 mailbox #9996, or e-mail at [email protected]. For Star Management affiliated properties, call toll free at 1-800-896-7743 mailbox #3, or e-mail at [email protected].
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units, and units accessible to wheelchair users and others with disabilities. Enacted in 1990, the Americans with Disabilities Act requires, among other things, that places of public accommodation, such as rental offices at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Inland Empire Man Arrested on Indictment Alleging He Repeatedly Caused False Statements to Be Made in Bankruptcy Court PetitionsRead the Press Release
RIVERSIDE, California – A San Bernardino County man who worked as a bankruptcy petition preparer (BPP) was arrested today on federal criminal charges that allege he acted as an unlicensed attorney in bankruptcy cases, charged fees well over those permitted by law and then repeatedly lied to the United States Bankruptcy Court.
Richard Allen Mease, 62, of Victorville, was taken into custody this morning by special agents with the FBI. Mease is scheduled to be arraigned on an indictment this afternoon in United States District Court in Riverside.
The indictment, which was returned Wednesday by federal grand jury, charges Mease with four counts of making a false statement in a bankruptcy proceeding. The indictment alleges that, on at least four separate occasions, Mease concealed his identity as a BPP on bankruptcy petitions he prepared on behalf of clients.
Under applicable law and regulations, a BPP is permitted to charge fees of up to $200 to prepare and file a bankruptcy petition, but is not permitted to offer or provide legal advice.
Mease repeatedly violated these laws and regulations since at least September 2009, charging clients fees well over the legally permitted limit and acting as an unlicensed lawyer, the indictment alleges. In response to these violations, a bankruptcy court in 2011 barred him from acting as a BPP after he had charged a client more than $1,000 for BPP services and provided legal advice, according to the indictment. In 2013, the bankruptcy court issued another order holding Mease in contempt of court for continuing to prepare bankruptcy petitions in violation of the injunction.
But Mease allegedly continued to break the law and violate the court’s injunction against him. On four occasions between November 2016 and May 2018, Mease charged his clients multiple times over the amount permitted by law to prepare their bankruptcy petitions and caused false statements to be filed in their petitions, the indictment alleges.
For example, in November 2016, Mease allegedly charged one client $950 for BPP services. According to the indictment, Mease caused a false statement to be made under penalty of perjury in the bankruptcy petition which stated “No” to the question, “Did you pay or agree to pay someone who is not an attorney to help you fill out your bankruptcy forms?”
On another bankruptcy petition that contained a similar false statement, Mease charged his clients $1,550 in fees for BPP services, the indictment alleges.
If convicted of all charges, Mease would face a statutory maximum sentence of 20 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case was investigated by the FBI, which received substantial assistance from the Office of the United States Trustee.
This case is being prosecuted by Assistant United States Attorney Natasha Haney of the Riverside Branch Office.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 27 was:
Augustus Christopher Wolfback, 18, of Lodge Grass, on charges of assault by strangulation of a dating partner. If convicted of the most serious crime, Wolfback faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Wolfback was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 20-22.
Samuel Richard Bonko, 34, of Garryowen, on charges of failure to register as a sexual offender. If convicted of the most serious crime, Bonko faces a maximum 10 years in prison, a $250,000 fine and five years to life of supervised release. Bonko was detained pending further proceedings. The U.S. Marshals Service investigated the case. Pacer case reference. 19-79.
Jordan Lee Larue, 26, of Billings, on charges of prohibited person in possession of a firearm and receipt of a firearm by person under indictment for felony. If convicted of the most serious crime, Larue faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Larue was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-147.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
Appearing on Feb. 25 were:
Brandon Thomas Houdashelt, 32, of Clyde Park, on charges of distribution of controlled substances causing death and possession with intent to distribute controlled substances. If convicted of the most serious crime, Houdashelt faces 20 years to life in prison, a $1 million fine and three years of supervised release. Houdashelt was detained pending further proceedings. The Drug Enforcement Administration investigated the case. Pacer case reference. 20-188.
James Robert Patterson, 21, of Billings, on charges of coercion and enticement. If convicted of the most serious crime, Patterson faces a minimum mandatory 10 years to life in prison, a $250,000 fine and five years to life of supervised release. Patterson was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 20-20.
Christopher Cleveland, 40, of Billings, on charges of prohibited person in possession of a firearm and possession of an unregistered firearm. If convicted of the most serious crime, Cleveland faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Cleveland was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-15.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
Appearing on criminal complaints on Feb. 25 were:
Maliyah Jae Chavez, 19, of Billings, on charges of possession of stolen firearms. If convicted of the most serious crime, Chavez faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Chavez was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-18.
Rodrigo Gomez, 18, of Billings, on charges of possession of stolen firearms. If convicted of the most serious crime, Gomez faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Gomez was detained pending further proceedings. Pacer case reference. 20-19.
These cases are part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illinois Man Sentenced for Production of Child PornographyRead the Press Release
WASHINGTON - A Bloomington, Illinois, man was sentenced today to 30 years in prison followed by lifetime supervised release for production and possession of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney John C. Milhiser of the Central District of Illinois. U.S. District Court Judge James E. Shadid pronounced the sentence.
Tyler Watson, 21, pleaded guilty to two counts of production of child pornography and one count of possession of child pornography before U.S. Magistrate Judge Jonathan E. Hawley on Aug. 19, 2019.
According to admissions made as part of his guilty plea, Watson came to the attention of the Bloomington Police Department while home on leave from active duty in the U.S. Navy. Information from an acquaintance of Watson’s led police officers to discover sexually explicit pictures Watson had taken of a 6-year-old boy on Watson’s cellphone, as well as other child pornography images. Watson was subsequently interrogated by the Naval Criminal Investigative Service (NCIS) and admitted to possessing, distributing and producing child pornography. A forensic examination of his electronic media subsequently revealed that he had communicated with and received sexually explicit images from other minors via the internet.
The investigation was conducted by the Bloomington Police Department and NCIS with assistance from the Criminal Division’s Child Exploitation and Obscenity Section’s (CEOS) High Tech Investigative Unit and the FBI. This case was prosecuted by CEOS Trial Attorney Nadia Prinz and Assistant U.S. Attorneys Paul Morris and Adam W. Ghrist of the Central District of Illinois.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc<http://www.justice.gov/psc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Illinois Man Sentenced for Production of Child PornographyRead the Press Release
A Bloomington, Illinois man was sentenced today to 30 years in prison followed by lifetime supervised release for production and possession of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney John C. Milhiser of the Central District of Illinois. U.S. District Court Judge James E. Shadid pronounced the sentence.
Tyler Watson, 21, pleaded guilty to two counts of production of child pornography and one count of possession of child pornography before U.S. Magistrate Judge Jonathan E. Hawley on Aug. 19, 2019.
According to admissions made as part of his guilty plea, Watson came to the attention of the Bloomington Police Department while home on leave from active duty in the U.S. Navy. Information from an acquaintance of Watson’s led police officers to discover sexually explicit pictures Watson had taken of a 6-year-old boy on Watson’s cellphone, as well as other child pornography images. Watson was subsequently interrogated by the Naval Criminal Investigative Service (NCIS) and admitted to possessing, distributing and producing child pornography. A forensic examination of his electronic media subsequently revealed that he had communicated with and received sexually explicit images from other minors via the internet.
The investigation was conducted by the Bloomington Police Department and NCIS with assistance from the Criminal Division’s Child Exploitation and Obscenity Section’s (CEOS) High Tech Investigative Unit and the FBI. This case was prosecuted by CEOS Trial Attorney Nadia Prinz and Assistant U.S. Attorneys Paul Morris and Adam W. Grist of the Central District of Illinois.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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.
Hyde Park Man Charged with Armed Bank RobberyRead the Press Release
BOSTON – A Hyde Park man was charged yesterday in federal court in Boston with bank robbery.
Paul Whooten, 56, was charged in a criminal complaint with one count of armed bank robbery. Whooten was detained following an initial appearance before U.S. District Court Magistrate Judge M. Page Kelley.
According to the charging documents, on Dec. 21, 2019, an individual wearing black clothing and a mask walked into a branch of Rockland Trust Bank in Hyde Park with what appeared to be a firearm. The robber pointed the firearm at the teller and said, “Give me all of your money.” The teller filled the robber’s bag with cash, and the robber fled the bank on foot. Bank surveillance cameras captured images of the robber wearing a long dark coat, black reflective jacket, a black knit hat, black sunglasses and gloves. A police officer stationed inside of the bank broadcast a description of the robber.
As alleged in the complaint, another police officer observed an individual matching the description of the robber walking down Truman Parkway. The officer issued verbal commands to the robber to drop the gun and get on the ground. The robber complied and was apprehended by law enforcement. A black rifle-type BB gun and bag of cash were recovered from the robber, who was identified as Whooten.
The charging statute provides for a sentence of up to 25years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Greene County man sentenced to prison for illegal possession of firearm silencer, missile warning systemRead the Press Release
DAYTON – A former military subcontractor was sentenced in U.S. District Court today to 33 months in prison and three years of supervised release for illegally possessing a firearm silencer and equipment that was property of the United States.
Joel Montgomery, 50, pleaded guilty to two counts in December 2019: possessing a silencer not registered to him and retaining United States property with a value of more than $1,000.
According to court documents, in June 2015, Montgomery possessed at his home a firearm silencer that was not registered to him in the National Firearms Registration and Transfer Record.
While executing another search warrant at his home in October 2015, agents discovered an AN/AAR-47 Missile Warning System and a Control Countermeasures Set Display Unit that were property of the United States.
Montgomery had previously been employed as a subcontractor on a local military base, and during that time, had gained access to the property of the United States. Upon the end of his employment contract, Montgomery did not return equipment valued at more than $1,000 and instead kept the equipment for his personal use.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorneys Brent G. Tabacchi and Dwight Keller are representing the United States in this case.
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Grand Jury Returns Indictment Charging Utah Resident with Tax Evasion, Assisting in Preparation of False DocumentsRead the Press Release
SALT LAKE CITY – A federal grand jury returned an indictment Thursday afternoon charging a Price, Utah, resident with one count of tax evasion and eight counts of aiding and assisting in the preparation of false/fraudulent documents. At the time of the alleged crimes, he lived in Draper and Bluffdale.
The indictment alleges James Cunningham attempted to evade payment of federal income taxes he and his spouse owed for calendar years 2000, 2001, and 2013 – an amount of approximately $450,000 in income tax, penalties, and interest. The charges allege Cunningham took several affirmative steps to evade paying taxes, including having a person identified in the indictment as M.C. open a personal bank account at Nevada Bank & Trust which he used for his own purposes. M.C. never used or accessed the account, according to the indictment.
Cunningham used the bank account to receive commissions he earned from his sale of insurance products. As an example, the indictment alleges a deposit of $3,874.50 was made around May 15, 2013. By depositing the money into an account he controlled but was not named on, Cunningham concealed his income from the United States. In another instance, the indictment alleges that in June 2014 Cunningham caused $99,999.99 of his commissions to be deposited into a bank account held by J.C.
The indictment also alleges Cunningham used other people to obtain insurance licenses so he could sell insurance products and earn income under other names. In one instance, according to the indictment, he had M.C. obtain a life insurance license. Cunningham, the indictment alleges, used M.C.’s license to earn commissions totaling $18,891.02. Cunningham also used and controlled bank accounts belonging to other people to receive commission income.
The eight counts of aiding or assisting in the preparation of false or fraudulent documents charge Cunningham with willfully aiding and assisting in the preparation and submission of several different tax forms that were submitted to the IRS. The indictment alleges the returns were materially false and fraudulent and that at the time of preparation and submission to the IRS, Cunningham knew the taxpayers were not entitled to claim deductions in the claimed amounts and that the reported income was false.
A summons will be issued to Cunningham to appear for an initial appearance on the charges. The tax evasion count carries a potential maximum penalty of five years in prison. Each of the eight counts of aiding and assisting a fraudulent tax return carries a three year maximum sentence.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The U.S. Attorney’s Office in Salt Lake City is prosecuting the case. IRS-Criminal Investigation special agents are conducting the investigation.
Geneva County Man Sentenced to More Than Nine Years in Prison for Federal Gun ChargesRead the Press Release
Montgomery, Alabama – On Wednesday, February 26, 2020, Jermaine Dale Jones, a 35-year-old man from Geneva County, Alabama, was sentenced to 112 months in prison for federal firearms charges, announced United States Attorney Louis V. Franklin, Sr. Following his prison sentence, Jones will be on supervised release for three years.
In November 2019, Jones pleaded guilty to charges of being a felon in possession of a firearm and possession of a firearm in connection with a drug trafficking crime. The charges arose out of two separate incidents.
According to court records, on May 20, 2018, officers in Enterprise, Alabama responded to a call about a man arguing with others and waving a firearm outside the window of a green Ford F-150 pickup truck near a local restaurant. When officers arrived at the location described by the caller, they observed two individuals sitting in a tan Chevy Tahoe. The officers approached the vehicle to speak to the occupants and saw the handle of a pistol next to Jones, who was in the passenger seat. Further investigation revealed there were two other firearms inside the vehicle and that Jones had purchased the weapons from the man who had been in the green F-150. Jones, who is a convicted felon, was indicted by a federal grand jury in February 2019 for being a felon in possession of a firearm.
On February 21, 2019, the United States Marshals Service and Gulf Coast Regional Fugitive Task Force officers went to Jones's residence in Geneva County to arrest him on the felon in possession of a firearm charge. During the arrest, officers saw marijuana and a handgun in plain view. A search warrant was obtained for the house and, during the search, drugs and additional firearms were found. Among the drugs seized were clonazepam, alprazolam, marijuana, hydrocodone, and methamphetamine hydrochloride. As a result of these discoveries, Jones was further charged with possession of a firearm in connection with a drug trafficking crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Enterprise Police Department, and the United States Marshals Service (USMS) investigated this case. Assistant United States Attorney Robert Nichols prosecuted this case.
Former UNF Student Sentenced to More Than 8 Years for Distributing Child Sex Abuse VideosRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Anthony Davis Stagnitta (23, St. Petersburg) to eight years and four months in federal prison for distributing child sex abuse videos over the internet. Stagnitta was also ordered to pay $132,415 in restitution to victims and to register as a sex offender.
Stagnitta had pleaded guilty on May 16, 2019.
According to court documents, in February 2018, agents from Homeland Security Investigations (HSI) began an investigation into the sexual exploitation of children that was occurring on a popular messaging application. The agents discovered that between November 24 and December 3, 2017, Stagnitta had engaged in online conversations with other users in a public group chat on the app and had discussed trading child pornography. On December 3, 2017, Stagnitta sent a video to the group that depicted the sadistic sexual abuse of an infant.
On April 30, 2018, HSI agents executed a federal search warrant at Stagnitta’s home in Jacksonville. During an interview, Stagnitta admitted that he had discussed child pornography using this app, had sent child sex abuse videos to others users via private messaging, and had posted videos in the group chats. Forensic analysis of Stagnitta’s cellphone revealed that it contained 2,904 images depicting children being sexually abused.
This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Atomwaffen Division Member Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – A white supremacist and former member of the Atomwaffen Division was sentenced today to one year in prison for possessing firearms while being an unlawful drug user and making a false statement in order to illegally purchase a firearm.
According to court documents, in October 2017, Andrew Jon Thomasberg, 21, of McLean, purchased a semiautomatic rifle and claimed to be the true purchaser. In fact, Thomasberg knew this statement was false and that he was purchasing the gun for a third party. He transferred that firearm to that third party after purchasing it. Thomasberg also possessed at least four firearms while unlawfully using controlled substances, including marijuana, psilocybin mushrooms, and opium.
According to court documents and testimony, Thomasberg, who has a prior criminal conviction for a dangerous firearms offense, was associated with white supremacist organizations, such as Vanguard America, Atomwaffen Division, and Patriot Front. In text message communications, while Thomasberg possessed firearms and was a regular drug user, he glorified racially motivated violence and referred to mass shooters as “saints.” Additionally, Thomasberg informed law enforcement that only one day before he was arrested, he had submitted an application to join Patriot Front. Patriot Front is “a white supremacist group whose members maintain that their ancestors conquered America and bequeathed it to them alone.”
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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Larissa Knapp, Special Agent in Charge, Counterterrorism, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Anthony W. Mariano and Assistant U.S. Attorney Ronald L. Walutes, Jr. prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-337.
Former Aledo Banker Sentenced to Five Years in Prison and Ordered to Pay $23.5 Million in RestitutionRead the Press Release
ROCK ISLAND, Ill. – U.S. Chief District Judge Sara Darrow today sentenced Dana Frye, former executive vice president and chief loan officer of the failed Country Bank of Aledo, Ill., to five years in prison, the maximum prison term for conspiring with others to make materially false statements to the Country Bank Board of Directors. Judge Darrow ordered Frye to immediately pay $23.5 million in restitution.
On Oct. 10, 2019, Frye admitted that he conspired with others to influence Country Bank to make loans to projects in which he held a personal financial interest, including the “Fyre Lake Project,” a development including a golf course and surrounding residential lots in Sherrard, Ill. Frye, 66, currently of Bettendorf, Iowa, helped found Country Bank and served as executive vice president and chief loan officer for Country Bank from its formation in March 2000 to Dec. 31, 2010. In October 2011, Country Bank failed and the Federal Deposit Insurance Corporation, as receiver, covered losses in excess of $70 million.
Frye held ownership in multiple companies that either directly participated in real estate developments or provided services to persons and entities engaged in developments. One company, known as Webgem, Inc., owned by Frye and his son, Andrew Frye, provided accounting and other services to developers. Dana Frye did not disclose to the bank board of directors his full interest in Webgem and allowed Webgem to receive proceeds from loans issued by Country Bank.
Andrew Frye pleaded guilty to a related misdemeanor offense concerning a loan he received from Country Bank and was sentenced to six months of probation and ordered to pay $15,375 in restitution. As a condition of their respective sentences, both Dana Frye and Andrew Frye are prohibited from ever working in the banking or financial industry again.
In May of 2009, Country Bank received $4.1 from the U.S. Government through the Department of Treasury’s Troubled Asset Relief Program known as TARP. On Oct. 14, 2011, Country Bank failed and the Federal Deposit Insurance Corporation took over as receiver. Other victims included Greenwoods State Bank, Burlington, Wis.; Blackhawk Bank & Trust, Milan, Ill.; and Citizens Bank of Mukwonago, Wis.
The FDIC Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) conducted the investigation. First Assistant U.S. Attorney Douglas J. Quivey and Assistant U.S. Attorney Douglas F. McMeyer prosecuted the case for the U.S. Attorney’s Office for the Central District of Illinois.
Felon Sentenced to Prison for Illegal Possession of a Pistol and AmmunitionRead the Press Release
PITTSBURGH, PA - A former resident of McKeesport, Pennsylvania, was sentenced in federal court to 30 months’ imprisonment and 3 years’ supervised release on his conviction of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Joy Flowers Conti imposed sentence on Eric Antoin Johnson, 23.
According to information presented to the court, on January 21, 2019, Johnson engaged in a text message conversation with a prospective employer relating to scheduling a job interview. Several hours after the scheduling-related texts, Johnson texted three photographs to the potential employer, which illustrated two different firearms. In one photo, Johnson was holding the firearm and pointing it at the camera. Law enforcement officials executed a search warrant at Johnson’s residence on January 29, 2019, and recovered an Intratec model AB10 9 millimeter pistol and 9 millimeter ammunition. Johnson was prohibited from possessing the firearm and ammunition due to prior convictions for robbery and assault, crimes punishable by more than one year in prison. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from lawfully possessing a firearm or ammunition.
Assistant United States Attorney Christy C. Wiegand prosecuted this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Findlay Township Police Department conducted the investigation that led to the successful prosecution of Johnson. The case was brought as part of Project Safe Neighborhoods. 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.
Federal Jury Convicts Two Brothers under Project EJECT of Drug Trafficking and Possessing Stolen Firearms in HattiesburgRead the Press Release
Hattiesburg, Miss. – Brothers Victor Smith, 43, and Michael Smith, 42, of Hattiesburg, were found guilty on Wednesday of possession of marijuana with the intent to distribute and possession of stolen firearms, announced U.S. Attorney Mike Hurst, Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi. The jury returned the verdict following a two-day trial before Senior U.S. District Judge Keith Starrett in Hattiesburg.
On August 25, 2016, Hattiesburg Police officers, supported by other law enforcement agencies, responded to a call for service at the Southern Village Apartments in Forrest County. Upon arrival, officers were directed to the Smith brothers’ apartment, where they found over half a pound of marijuana bagged for distribution, scales, and five firearms, two of which were stolen. On April 3, 2019, Victor Smith and Michael Smith were charged in a federal criminal indictment.
Victor and Michael Smith will be sentenced by Judge Starrett on June 10, 2020, beginning at 10:00 a.m. in Hattiesburg.
The case was investigated by the Hattiesburg Police Department, Bureau of Alcohol Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Andrew W. Eichner and Erin Chalk.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Federal Jury Convicts Lumberton Man for Drug and Gun CrimesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that in federal court this week, JAMES CALVIN BREEDEN, a 33-year-old resident of Lumberton, was convicted following a one-day trial before Senior United States District Judge James Earl Britt. The jury found BREEDEN guilty of Possession with the Intent to Distribute 28 Grams or more of Cocaine Base (Crack) and a Quantity of Cocaine, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Possession of a Firearm by a Convicted Felon. Sentencing is scheduled for the June 1, 2020 term of court in Raleigh. BREEDEN faces at least ten years’ and up to life imprisonment.
The evidence at trial showed that BREEDEN, who is a convicted felon, was the passenger of a vehicle stopped by officers with the Robeson County Sheriff’s Office as they were attempting to serve an outstanding warrant. When officer’s approached the vehicle, they observed BREEDEN in possession of a crown royal bag that contained approximately 80 grams of crack cocaine and 38 grams of cocaine. He also possessed loaded handgun inside of his waistband.
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 on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Robeson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) conducted investigation of this case. Assistant United States Attorneys Chad Rhoades and Erin Blondel handled the prosecution of this case for 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.
Federal Grand Jury Indicts Nigerian Nationals for Multiple Fraud Schemes against Dickinson, ND CompanyRead the Press Release
BISMARCK – U.S. Attorney Drew H. Wrigley announced that Federal Court documents were unsealed on February 10, 2020, revealing that the federal grand jury has indicted 1) Kolawole Bamidele Akande, a/k/a Patric Elis Ferguson 2) Olawale Sule a/k/a Brand King Mohamed; and 3) Babatope Joseph Aderinoye a/k/a Wilson Tidwell on charges of 1) Conspiracy to Commit Bank Fraud; 2) Conspiracy to Commit Wire Fraud; 3) Conspiracy to Commit Mail Fraud; 4) Conspiracy to Commit Money Laundering; 5) Mail Fraud; and 6) Money Laundering.
The Indictment alleges that the defendants participated in a complicated computer intrusion scheme targeting a Dickinson, ND company which was allegedly defrauded out of approximately $348,000.00. The Indictment alleges that the defendants fraudulently obtained checks from the Dickinson company through the mail and deposited these checks in fraudulently obtained accounts in financial institutions located within the State of Texas. Once the funds from these checks were available for withdrawal and transfer, the defendants is alleged to have withdrawn and transferred the funds to conceal and disguise their nature, location, source, and ownership.
"While the alleged financial scheme in this case is complex," said U.S. Attorney Drew Wrigley, "our investigative team has pieced this string of fraudulent acts together and we look forward to presenting our evidence in court."
Olawale Sule a/k/a Brand King Mohamed’s arraignment was held before United States Magistrate Judge Clare R. Hochhalter, on February 28, 2020, in Bismarck, North Dakota. Olawale Sule was previously arrested on December 18, 2019, under a separate indictment for money laundering. He had an initial appearance, identity hearing, and detention hearing, in Federal Court in the Northern District of Texas. The Court there ordered that the defendant be detained and that the United States Marshalls Service transport Olawale Sule to the District of North Dakota.
This case is being investigated by the Federal Bureau of Investigation; United States Postal Inspection Service; Homeland Security Investigations, and the United States Attorney’s Office in the Northern District and Eastern District of Texas, and is being prosecuted by Assistant United States Attorney Jonathan O’Konek
The Indictment in this case is not evidence of guilt. The defendants are presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
Employee sentenced to federal prison for defrauding former employerRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today Sandra M. Urich, 54, Indianapolis, was sentenced in federal court for her role in a scheme to steal over $770,000 from her Indianapolis-based employer. Urich was sentenced to 27 months in federal prison by U.S. District Court Judge James R. Sweeney II.
“Businesses must be able to trust their employees,” said Minkler. “This case should serve as a reminder that those who steal from their employer by exploiting that trust, must be, and will be, held accountable.”
For almost 20 years, Urich was a trusted employee who handled order processing and payments for an Indianapolis business that manufactured and distributed products throughout the United States.
In 2011, Urich began secretly diverting customers’ credit card payments to her personal bank accounts. After receiving a customers’ credit card order, Urich would process “refunds” for certain orders. Instead of refunding the money to the customer’s credit card account, she entered her personal debit card numbers so the money was “refunded” to her personal bank accounts.
Urich’s scheme went undetected until the company uncovered her fraud in 2019. Over several years, Urich had taken multiple steps to cover her tracks. For instance, while she ensured that customers actually received the products they ordered, she also erased any reference to the customers’ orders she stole in the company’s shipping and accounting systems.
She would offer discounts to customers if they paid for shipping costs, to avoid the company incurring shipping costs for stolen orders that had been erased from the system.
To avoid detection, she stole relatively small amounts at a time, often just a few hundred dollars, and used specific dollar figures so as to not raise suspicions with the banks and credit card companies.
In over seven years, Urich diverted customer credit card payments nearly 1,000 times, and stole $771,927.04, which she spent largely on personal meals, clothing, and vacations.
This case was investigated by the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department.
“Ms. Urich abused her position of trust for one reason – simple greed. The fraud scheme she perpetrated not only jeopardized her employer’s business and reputation, but unsuspecting customers whose money she pocketed over the years,” said Special Agent in Charge, Grant Mendenhall, FBI Indianapolis. “This sentence sends a clear message that such illegal practices will not be tolerated. The FBI and our law enforcement partners will continue to aggressively pursue individuals who steal from honest, hardworking Americans.”
According to Assistant United States Attorney Nick Linder, who prosecuted the case for the government, Urich was sentenced to 27 months imprisonment, ordered to pay $771,927.04 in restitution, and serve 2 years of supervised release.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, long-running fraud schemes. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1.
El Departamento de Justicia Resuelve Denuncias Motivadas por Discriminación en la Vivienda Basada en una Discapacidad con Propietarios y Promotores Inmobiliarions de 11 Complejos de Apartamentos en Puerto RicoRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que los propietarios y promotores inmobiliarios de 11 complejos de vivienda multifamiliares en Puerto Rico, cuyos edificios incluyen más de 650 unidades de alquiler, han acordado pagar un total combinado de $335.000 con el fin de resolver denuncias de que ellos habían vulnerado la ley de Vivienda Justa y la ley de Estadounidenses con Discapacidades al construir complejos de apartamentos que no eran accesibles para personas con discapacidades. Como parte del acuerdo, las compañías también acordaron realizar readaptaciones sustanciales para eliminar barreras a la accesibilidad.
Dos Órdenes de Consentimiento separadas, las cuales todavía necesitarían ser aprobadas por el Tribunal de Distrito de los EE. UU. para el Distrito de Puerto Rico, resuelven los pleitos que el Gobierno presentó ante el tribunal, junto con las Órdenes de Consentimiento contra los promotores inmobiliarios radicados en Puerto Rico, Fernando L. Sumaza & Co. Inc. y Star Management Corp. y sus empresas filiales. Conforme los términos de los acuerdos, los acusados deberán tomar medidas correctivas extensas para hacer que los complejos sean accesibles para personas con discapacidades. Estas medidas correctivas incluyen el reemplazo de porciones de la acera cuya inclinación es excesiva, la instalación de vías peatonales y rampas en las aceras con la inclinación apropiada para permitir a personas con discapacidades el acceso desde la acera y las zonas de estacionamiento a las viviendas, el reemplazo de los armarios en los baños y las cocinas para permitir suficiente espacio a personas en silla de ruedas y la eliminación de barreras a la accesibilidad en zonas públicas y de uso común en los complejos. Los acusados pagarán un total combinado de $325.000 para establecer dos fondos de indemnización para compensar a individuos con discapacidades que han sido afectados por las vulneraciones relacionadas con la accesibilidad. Por otra parte, se pagará una sanción civil de $10.000 a los Estados Unidos.
«La ley de Vivienda Justa y la ley de Estadounidenses con Discapacidades prohíben la discriminación por motivos de una discapacidad y garantizan los derechos de personas con una discapacidad a acceder a la vivienda de su elección», declaró Eric Dreiband, Fiscal General Auxiliar de la División de Derechos Civiles. «El Departamento de Justicia seguirá haciendo de manera agresiva que estas leyes se cumplan para asegurar que las viviendas residenciales multifamiliares se construyan con características accesibles».
«El acceso a una vivienda libre de discriminación es un derecho de todo estadounidense y es algo fundamental para el desarrollo de nuestras comunidades», afirmó el Fiscal Federal W. Stephen Muldrow del Distrito de Puerto Rico. «Este acuerdo es un ejemplo de los esfuerzos continuos de nuestra oficina por hacer cumplir las leyes antidiscriminatorias que protegen tales derechos».
Las Órdenes de Consentimiento también requieren que los acusados participen en una capacitación sobre la ley de Vivienda Justa y la ley de Estadounidenses con Discapacidades para garantizar que toda futura construcción de viviendas multifamiliares cumpla con estas leyes y para entregar informes periódicos al Departamento de Justicia.
Los 11 complejos en cuestión, todos de los que fueron construidos con el apoyo financiero del programa del gobierno federal de Crédito Fiscal para la Viviendas para Personas de Bajos Ingresos u otros programas federales, son:
Propiedades afiliadas a Fernando L. Sumaza & Co.
- La Inmaculada Elderly Center, San Juan, PR
- Marie Gardens, Cabo Rojo, PR
- San Cristobal, San Juan, PR
- San Fernando Elderly Center, Mayagüez, PR
- Virgen del Pozo, Sábana Grande, PR
Propiedades afiliadas a Star Management Corp.
- Florida Elderly Center, Florida, PR
- Isabela Elderly Center, Isabela, PR
- Monserrate Elderly Center, PR
- Morovis Elderly Center, PR
- Patillas Elderly Center, Patillas, PR
- Sunrise Elderly Center, San Juan, PR
Las personas que tengan derecho a recibir una parte de los fondos del acuerdo serán identificadas por medio de un proceso establecido en las Órdenes de Consentimiento. Aquellas personas que creen haber sufrido daños y perjuicios a causa de las condiciones inaccesibles de cualquiera de estas propiedades, ya sea cuando ellas o alguien asociado con ellas vivían allí o se planteaban vivir allí, deberían comunicarse con el Departamento de Justicia. Para propiedades afiliadas a Fernando L. Sumaza & Co., Inc. llame gratuitamente al 1-800-896-7743 buzón 6 o envíe un correo electrónico a [email protected]. Para propiedades afiliadas a Star Management, llame gratuitamente al 1-800-896-7743 buzón 9 o envíe un correo electrónico a [email protected].
La ley federal de Vivienda justa prohíbe la discriminación en la vivienda por motivos de discapacidad, raza, color de piel, religión, origen nacional, género, discapacidad o estado familiar. Entre otras cosas, la ley de Vivienda Justa requiere que toda vivienda multifamiliar construida después del 13 de marzo de 1991 disponga de las características básicas de accesibilidad, lo que incluye vías de acceso sin escaleras a todas las unidades de la planta baja y unidades accesibles a personas en silla de ruedas y a otras personas con discapacidades. Promulgada en el año 1990, la ley de Estadounidenses con Discapacidades requiere, entre otras cosas, que instalaciones públicas, tales como oficinas de alquiler en complejos de viviendas multifamiliares diseñados y construidos para una fecha de primera ocupación de los mismos posterior al 26 de enero de 1993, sean accesibles a personas con discapacidades.
La aplicación de la ley de Vivienda Justa es una prioridad de la División de Derechos Civiles. Para más información acerca de la División de Derechos Civiles y las leyes que hace cumplir, vaya a https://www.justice.gov/crt.
Eight Members of South Bay-Backed Drug Trafficking Organizations Charged in Federal IndictmentsRead the Press Release
SAN FRANCISCO – Eight defendants were indicted on narcotics trafficking charges, announced United States Attorney David L. Anderson, Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. The defendants were arrested on November 6, 2019, and February 11, 2020, in the areas of San Jose and Tracy, Calif. In addition to the two indictments—one filed on November 14, 2019, and the other filed February 21, 2020—four criminal complaints have been filed in this investigation.
According to the complaints, DEA and HSI have been engaged in an investigation since early 2019 into two South Bay-based drug trafficking organizations. The federal agencies used several tools—including a confidential source to conduct controlled purchases of methamphetamine and court-ordered telephonic communications intercepts—to gather evidence regarding certain targets. For example, one of the complaints describes how on May 5, 2019, a confidential source sought to purchase from Eleazar Garcia, aka Jr, three pounds of methamphetamine. According to that complaint, Garcia obtained the drugs in Mountain View from co-defendant Misael Barajas and then exchanged the drugs in Gilroy with the confidential source for $5,100. Garcia then arranged to have proceeds from the sale of the drugs delivered to Barajas. Similarly, one of the complaints describes how in August of 2019 a confidential source called Garcia to purchase two ounces of cocaine. On this occasion, Garcia allegedly arranged to obtain the drugs from co-defendant Miguel Gallardo Pacheco. According to one of the complaints, the confidential source met with Garcia and Gallardo in a BMW parked in a pre-determined location in San Jose. The confidential source allegedly entered the car, took the cocaine from the middle console of the car and handed $2,200 to Garcia. Garcia counted the money and gave it to Gallardo.
The complaints describe additional transactions involving the possession, sale, and distribution of methamphetamine and cocaine in October and November of 2019. Further, one of the complaints describes the November 6, 2019, arrest of co-defendant Omar Fernando Peralta Sanchez at which time federal agents retrieved 10 pounds of crystal methamphetamine and five gallons of liquid methamphetamine from his residence. In sum, the indictments charge the defendants with the following crimes:
Defendant Age/Residence Charges Maximum PenaltiesMisael Barajas
(charged in the Nov. 14, 2019, and Feb. 20, 2020, indictments)
31/Sunnyvale, Calif.21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(C) – Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
Maximum 20 years imprisonment; maximum $1 million fine
21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii) – Possession with Intent to Distribute and Distribution of 500 Grams and More of a Mixture Containing Methamphetamine [two counts] Not less than 10 years imprisonment and up to life; maximum $10 million fine 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(A)(viii), and (b)(1)(C) – Conspiracy to Distribute and Possess with Intent to Distribute 500 Grams and More of a Mixture Containing Methamphetamine, and Cocaine Not less than 10 years imprisonment and up to life; maximum $10 million fineDavid Pecina Garcia
(charged in the Feb. 20, 2020, indictment) 39/San Jose, Calif.21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(C) – Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
Maximum 20 years imprisonment; maximum $1 million fine
21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii) – Possession with Intent to Distribute and Distribution of 500 Grams and More of a Mixture Containing Methamphetamine Not less than 10 years imprisonment and up to life; maximum $10 million fineEleazar Garcia, aka Jr
(charged in the Feb. 20, 2020, indictment)
36/Tracy, Calif.21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(C) – Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
Maximum 20 years imprisonment; maximum $1 million fine
21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii) – Possession with Intent to Distribute and Distribution of 500 Grams and More of a Mixture Containing Methamphetamine Not less than 10 years imprisonment and up to life; maximum $10 million fine 21 U.S.C. § 841(a)(1) and (b)(1)(C) – Possession with Intent to Distribute and Distribution of Cocaine Maximum 20 years imprisonment; maximum $1 million fineEleazar Garcia, aka Senior
(charged in the Feb. 20, 2020, indictment) 68/Modesto, Calif.21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(C) – Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
Maximum 20 years imprisonment; maximum $1 million fineJesus Garcia-Cano, aka Chuche
(charged in the Feb. 20, 2020, indictment) 25/San Jose, Calif.21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(C) – Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
Maximum 20 years imprisonment; maximum $1 million fine
21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii) – Possession with Intent to Distribute and Distribution of 500 Grams and More of a Mixture Containing Methamphetamine Not less than 10 years imprisonment and up to life; maximum $10 million fineMiguel Gallardo Pacheco
(charged in the Feb. 20, 2020, indictment) 22/San Jose, Calif. 21 U.S.C. § 841(a)(1) and (b)(1)(C) – Possession with Intent to Distribute and Distribution of Cocaine Maximum 20 years imprisonment; maximum $1 million fineOctavio Paque
(charged in the Nov. 14, 2019, indictment) 35/San Jose, Calif. 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(A)(viii), and (b)(1)(C) – Conspiracy to Distribute and Possess with Intent to Distribute 500 Grams and More of a Mixture Containing Methamphetamine, and Cocaine Not less than 10 years imprisonment and up to life; maximum $10 million fineOmar Fernado Peralta Sanchez
(charged in the Nov. 14, 2019, indictment) 36/San Jose, Calif.21 U.S.C. §§ 846, 841(a)(1), (b)(1)(A)(viii), and (b)(1)(C) – Conspiracy to Distribute and Possess with Intent to Distribute 500 Grams and More of a Mixture Containing Methamphetamine, and Cocaine
Not less than 10 years imprisonment and up to life; maximum $10 million fine
21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii) – Possession with Intent to Distribute and Distribution of 500 Grams and More of a Mixture Containing Methamphetamine Maximum 20 years imprisonment; maximum $1 million fineThe indictments and complaints merely allege that crimes have been committed, and each defendant must be presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face maximum sentences and fines described in the table above. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Sarah Griswold is prosecuting these cases with the assistance of Laurie Worthen and Jessica Leung. These cases were investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Dominican National Illegally in the United States Sentenced to More Than Five Years in Federal Prison for Selling Heroin in Cecil County, MarylandRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Ivanovich Constanzo Mercedes-Soriano, a/k/a German Pena-Lopez, age 31, of Aberdeen, Maryland, to 63 months in federal prison, followed by one year of supervised release, for conspiring to distribute heroin and cocaine and for making a false claim to U.S. citizenship.
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 Colonel Woodrow W. Jones III, Acting Superintendent of the Maryland State Police (MSP).
According to his plea agreement, Mercedes-Soriano was born in the Dominican Republic and is illegally in the United States. At least as early as June 2017 and continuing until September 26, 2018, Mercedes-Soriano conspired with Elvin Solano-Pena, a/k/a Joseph Allen Fields, and Herme Soriano, a/k/a Miguel Urraca-Gonzalez, and others to distribute crack cocaine and 1000 grams or more of heroin to drug users that lived primarily in Cecil County, Maryland.
In July 16, 2018, Maryland State Police (MSP) developed information that drug users were using a designated phone number, referred to as the “dispatch phone,” to purchase drugs. On July 23, 2018, a drug user called the dispatch phone and spoke to a man who told the customer to meet him at a grocery store in Elkton. Mercedes-Soriano arrived in a black Honda Civic and sold the customer one gram of heroin and .4 grams of crack cocaine.
On August 3, 2018, the same drug user called the dispatch phone and spoke to Solano-Pena. After the call, Soriano arrived at the agreed meeting place and sold the customer .6 gram of heroin and .6 gram of crack cocaine. MSP stopped the vehicle; Soriano was driving, and MSP identified him as the man who sold the drugs. After searching the car, MSP recovered another .4 gram of heroin and $648 in cash, as well as a crack pipe and burnt cocaine. Soriano provided a false name at the time. MSP used social media to attempt to identify him and found pictures of Soriano with Mercedes-Soriano. The two men were later identified as brothers.
Mercedes-Soriano and Soriano were illegal aliens using fraudulently obtained driver’s licenses in their respective alias names. On September 6, 2018, both men were taken into custody by Immigration and Customs Enforcement (ICE) following a traffic stop of the black Honda Civic they were driving. Both men produced fraudulent documents and lied as to their identity, citizenship, and travel to the United States. Both Mercedes-Soriano and Soriano were interviewed by ICE officers after being advised of their rights in Spanish and falsely swore that they were U.S. citizens, born in Puerto Rico. In fact, both men are citizens of the Dominican Republic.
A towing company retrieved the black Honda Civic and stored it in Cecil County. The car was registered in the name of co-defendant Oscar Pilarte-Rivera, a close friend of Mercedes-Soriano, Solano-Pena, and Soriano. Pilarte-Rivera provided assistance to the drug dealers, among other things, by allowing them to use a car registered in his name, knowing the men were involved in drug trafficking. Pilarte claimed possession of the black Honda from police custody.
On September 25, 2018, Mercedes-Soriano called Pilarte-Rivera from jail. The call was in Spanish but Mercedes-Soriano indicated he had tried to call Pilarte-Rivera three times but that he had not answered the phone. The men discussed items in Mercedes-Soriano’s apartment that needed to be picked up. As a result, HSI obtained a federal search warrant for Mercedes-Soriano’s apartment on Stevens Circle in Aberdeen, Maryland and executed it on September 26, 2018. In addition to identity documents for Mercedes-Soriano and other records, law enforcement recovered drugs packaged for distribution. After laboratory testing, it was determined the drugs seized included approximately 160 grams of heroin, 222 grams of heroin and fentanyl, and approximately 32 grams of crack cocaine. The packaging tested positive for Mercedes-Soriano’s DNA.
In his plea agreement, Mercedes-Soriano admitted he sold between one and three kilograms of heroin. Mercedes-Soriano’s phone records reflect the frequency of calls with drug customers and corroborated their individual testimony about drug sales.
As part of his plea agreement and sentence, Mercedes-Soriano will be deported to the Dominican Republic upon his release from prison.
Pilarte-Rivara, Solano-Pena, and Soriano previously pleaded guilty to federal charges for their respective roles in the drug conspiracy and received sentences ranging from time served to four years in federal prison.
United States Attorney Robert K. Hur commended the HSI Baltimore and the Maryland State Police for their work in the investigation and thanked U.S. Immigration and Customs Enforcement’s Enforcement Removal Operations for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Sandra Wilkinson and Paul Riley, who prosecuted the case.
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Diversicare Health Services, Inc. Agrees to Pay $9.5 Million to Resolve False Claims Act AllegationsRead the Press Release
NASHVILLE, Tenn. – February 28, 2020 - Diversicare Health Services, Inc., has agreed to pay $9.5 million to resolve allegations that it violated the False Claims Act by knowingly submitting false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary, or skilled, the Department of Justice announced today. The settlement also resolves allegations that Diversicare submitted forged pre-admission evaluations of patient need for skilled nursing services to TennCare, the state of Tennessee’s Medicaid Program. Diversicare, based in Brentwood, Tennessee, provides skilled nursing and rehabilitation services at approximately 74 facilities across the country.
“Families expect that their loved ones will receive the necessary care to improve their health and quality of life when they entrust them to a facility for care,” said U.S. Attorney Don Cochran. “Companies who engage in a practice of cheating and exploiting public healthcare programs, while subjecting patients to unreasonable and unnecessary treatments in order to increase their profits, will pay a substantial penalty.”
“Today’s settlement demonstrates our commitment to protect patients by ensuring that the care provided to Medicare and Medicaid beneficiaries is dictated by their clinical needs and not by their providers’ financial interests,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Nursing home facilities must be held to account when they provide patients with unnecessary services that may adversely impact their well-being and waste taxpayer dollars.”
The government alleged that from January 1, 2010 through December 31, 2015, Diversicare’s corporate policies and practices were designed to place as many beneficiaries in the highest level of Medicare reimbursement—Ultra High—irrespective of the individual clinical needs of the patients. These profit-driven policies and practices resulted in the provision of unreasonable, unnecessary, and unskilled therapy to many beneficiaries in Diversicare’s skilled nursing facilities. The government alleged that Diversicare submitted claims for Ultra High therapy levels despite evidence that (1) the frequency and duration of physical or occupational therapy were not reasonable or necessary for the patient, (2) the intensity of the physical or occupational therapy was inappropriate for the patient and not reasonable or necessary, (3) services did not require the skills of a therapist to perform them, and (4) speech therapy was medically unnecessary. This included specific instances of improper co-treatment in order to achieve minute thresholds, repetitive and unskilled exercises that did not match plan of care goals to obtain additional minutes, engaging patients in activities contraindicated by underlying medical conditions, inflating Activities of Daily Living (ADL) scores and extending patient lengths of stay beyond what was medically indicated, billing for services that were not provided, using budgets, goals, and quotas to ensure Ultra High therapy was maximized, and threatening or undertaking adverse actions against employees if they failed to meet the budgets, goals, or quotas.
The government also alleged that Diversicare submitted forged, photocopied, or pre-signed physician signatures on pre-admission evaluation certifications required in the submission of claims to TennCare for nursing facility services rendered to TennCare beneficiaries at its associated Tennessee skilled nursing and rehabilitation facilities. TennCare is Tennessee’s Medicaid program jointly funded by the state of Tennessee and the federal government.
As part of the settlement, Diversicare entered into a five-year Corporate Integrity Agreement (CIA) with the HHS-OIG requiring, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The CIA requires training, auditing, and monitoring designed to address the conduct at issue in the case.
“This settlement sends a strong message to nursing home chains that provide medically unnecessary therapy services, as alleged in this case,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “We will aggressively investigate providers who waste taxpayer dollars and work to recover any money that has been overpaid.”
“We’re committed to playing a part in protecting the tax dollars used to support our most vulnerable residents,” said TBI Director David Rausch. “When companies take advantage of the Medicaid system, we all lose. We’re gratified by this settlement and hope it sends another strong message that, together, we will continue to pursue and prosecute those who profit in illegal ways.”
The settlement resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by former Diversicare employees. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The whistleblower reward in this case will be approximately $1.5 million.
The settlement was the result of a coordinated effort by the United States Attorney’s Office for the Middle District of Tennessee and the Civil Division of the Department of Justice; the Office of Inspector General of the Department of Health and Human Services;, the Tennessee Attorney General’s Office; and the Tennessee Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Sarah K. Bogni and Trial Attorney Yolanda Campbell.
The two qui tam cases are captioned as United States ex rel. Haggard v. Diversicare Mgmt. Services, Co. et al., 3:12-cv-00669 (M.D. Tenn) and United States ex rel. Fitzmorris v. Diversicare Health Services, Inc., No. 3:16-cv-03037 (M.D. Tenn). The claims resolved by the settlement are allegations only; there has been no determination of liability.
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Diversicare Health Services Inc. Agrees to Pay $9.5 Million to Resolve False Claims Act Allegations Relating to the Provision of Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
Diversicare Health Services Inc., has agreed to pay $9.5 million to resolve allegations that it violated the False Claims Act by knowingly submitting false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary, or skilled, the Department of Justice announced today.
The settlement also resolves allegations that Diversicare submitted forged pre-admission evaluations of patient need for skilled nursing services to TennCare, the state of Tennessee’s Medicaid Program. Diversicare, based in Brentwood, Tennessee, provides skilled nursing and rehabilitation services at approximately 74 facilities across the country.
“Today’s settlement demonstrates our commitment to protect patients and taxpayers by ensuring that the care provided to Medicare and Medicaid beneficiaries is dictated by their clinical needs and not by their providers’ financial interests,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Nursing home facilities provide important services to our vulnerable elderly population, and those facilities must be held to account when they provide patients with unnecessary services that may adversely impact their well-being and waste taxpayer dollars.”
“Families expect that their loved ones will receive the necessary care to improve their health and quality of life when they entrust them to a facility for care,” said U.S. Attorney Don Cochran for the Middle District of Tennessee. “Companies who engage in a practice of cheating and exploiting public healthcare programs, while subjecting patients to unreasonable and unnecessary treatments in order to increase their profits, will pay a substantial penalty.”
The government alleged that from Jan. 1, 2010, through Dec. 31, 2015, Diversicare’s corporate policies and practices were designed to place as many beneficiaries in the highest level of Medicare reimbursement — Ultra High — irrespective of the individual clinical needs of the patients. These profit-driven policies and practices resulted in the provision of unreasonable, unnecessary, and unskilled therapy to many beneficiaries in Diversicare’s skilled nursing facilities. The government alleged that Diversicare submitted claims for Ultra High therapy levels despite evidence that (1) the frequency and duration of physical or occupational therapy were not reasonable or necessary for the patient, (2) the intensity of the physical or occupational therapy was inappropriate for the patient and not reasonable or necessary, (3) services did not require the skills of a therapist to perform them, and (4) speech therapy was medically unnecessary. This included specific instances of improper co-treatment in order to achieve minute thresholds, repetitive and unskilled exercises that did not match plan of care goals to obtain additional minutes, engaging patients in activities contraindicated by underlying medical conditions, inflating ADL scores, extending patient lengths of stay beyond what was medically indicated, billing for services that were not provided, using budgets, goals, and quotas to ensure Ultra High therapy was maximized, and threatening or undertaking adverse actions against employees if they failed to meet the budgets, goals, or quotas.
The government also alleged that Diversicare submitted forged, photocopied, or pre-signed physician signatures on pre-admission evaluation certifications required in the submission of claims to TennCare for nursing facility services rendered to TennCare beneficiaries at its associated Tennessee skilled nursing and rehabilitation facilities. TennCare is Tennessee’s Medicaid program jointly funded by the state of Tennessee and the federal government.
As part of the settlement, Diversicare entered into a five-year Corporate Integrity Agreement (CIA) with the HHS-OIG requiring, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The CIA requires training, auditing, and monitoring designed to address the conduct at issue in the case.
“This settlement sends a strong message to nursing home chains that provide medically unnecessary therapy services, as alleged in this case,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “We will aggressively investigate providers who waste taxpayer dollars and work to recover any money that has been overpaid.”
“We’re committed to playing a part in protecting the tax dollars used to support our most vulnerable residents,” said Tennessee Bureau of Investigation Director David Rausch. “When companies take advantage of the Medicaid system, we all lose. We’re gratified by this settlement and hope it sends another strong message that, together, we will continue to pursue and prosecute those who profit in illegal ways.”
The settlement, which was based on the company’s ability to pay, resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Mary Haggard and Bryant Fitzmorris, former Diversicare employees. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. Ms. Haggard will receive approximately $1.4 million and Mr. Fitzmorris will receive approximately $145,350.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Middle District of Tennessee, the Office of Inspector General of the Department of Health and Human Services, and the Tennessee Bureau of Investigation.
The two qui tam cases are captioned United States ex rel. Haggard v. Diversicare Mgmt. Services, Co. et al., 3:12-cv-00669 (M.D. Tenn) and United States ex rel. Fitzmorris v. Diversicare Health Services, Inc., No. 3:16-cv-03037 (M.D. Tenn). The claims resolved by the settlement are allegations only; 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.
District Man Sentenced to 15 Years in Prison for the Murder of 79-Year-Old ManRead the Press Release
WASHINGTON – Malcolm Cunningham, 24, of Washington, D.C. was sentenced today by Judge Ronna Beck to 18 years’ incarceration, suspending all but 15 years of incarceration for the murder of his great grandmother’s common-law-husband, David Norwood, U.S. Attorney Timothy J. Shea announced. Cunningham previously pled guilty to one count of second degree murder while armed with a sentencing range of 12 to 18 years in prison.
The incident occurred on Easter Sunday 2017. Prior to the murder, Mr. Norwood and his wife (Cunningham’s great-grandmother) had allowed Cunningham to stay in their home for about a year. Two weeks before the murder, Mr. Norwood and Cunningham’s great grandmother finally kicked Cunningham out of the residence as a result of fights he was repeatedly having with other residents. On Easter morning, Cunningham snuck back into the residence where he found Mr. Norwood, alone. Cunningham argued with Mr. Norwood and then took a knife from the kitchen and stabbed him before fleeing the scene. Mr. Norwood remained in the home, injured, until family members found him hours later, unconscious and lying on the floor. A short time later Mr. Norwood died as a result of his injuries.
In announcing the sentence, U.S. Attorney Shea commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lornce Applewhite and Alesha Matthews-Yette and Victim Witness Specialist Marcia Rinker. Finally, U.S. Attorney Shea commended the work of Assistant U.S. Attorney Michael Liebman who prosecuted the case.
District Man Found Guilty of Nationwide PCP Trafficking Conspiracy and Firearms ChargesRead the Press Release
WASHINGTON – Lamont Alvester Johnson, 43, of Washington, D.C., has been found guilty after a jury trial of conspiring to traffic in large quantities of Phencyclidine (PCP), possessing with the intent to distribute large quantities of PCP, possessing a firearm after having previously been convicted of a felony, and possessing a firearm in furtherance of a drug trafficking offense, announced U.S. Attorney Timothy J. Shea, FBI Assistant Director Timothy Slater, ATF Special Agent in Charge Ashan Benedict, Metropolitan Police Department Chief Peter Newsham, U.S. Park Police Chief Gregory Monahan, United States Chief Marshal Lamont Ruffin, and Prince George’s County Police Chief Henry Stawinski.
Johnson was found guilty on February 27, 2020, following a trial in the United States District Court for the District of Columbia before the Honorable Thomas F. Hogan. Sentencing is scheduled for June 11, 2020. Johnson faces a mandatory sentence of life imprisonment in light of his extensive criminal record, including prior convictions for crimes of violence while armed and drug trafficking.
According to the government’s evidence, which included court-authorized wiretaps, search warrants, GPS trackers, and undercover purchases of narcotics, Johnson was the main supplier of PCP to a drug trafficking ring that was indicted in an eight-co-defendant, 55-count indictment. Johnson was supplied gallon-quantities of PCP from West Coast suppliers, and he redistributed the PCP to other wholesale-level PCP suppliers in the District of Columbia. The evidence established that Johnson used threats and intimidation in his PCP trafficking operation, including with an AR-15 assault rifle that was seized from him along with over a kilogram of PCP and related drug trafficking paraphernalia. During the investigation, federal law enforcement officers seized approximately 2.5 kilograms of PCP; ¼ kilogram of heroin; ½ kilogram of cocaine; 50 grams of crack cocaine base; assorted drug trafficking paraphernalia; and firearms, including Johnson’s AR-15 assault rifle, laser scopes, ammunition, and high-capacity magazines.
In announcing the verdicts, U.S. Attorney Shea, FBI Assistant Director Timothy Slater, ATF Special Agent in Charge Ashan Benedict, U.S. Park Police Chief Gregory Monahan, United States Chief Marshal Lamont Ruffin, Chief Peter Newsham of the Metropolitan Police Department, and Prince George’s County Police Chief Henry Stawinski commended the work of the many dedicated people who worked tireless hours on the case, including Special Agents from the FBI’s Washington Field Office and the ATF’s Washington Field Division, Deputy U.S. Marshals, and officers with the Metropolitan Police Department and the U.S. Park Police. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney George Eliopoulos and Assistant U.S. Attorney Nihar Mohanty, who prosecuted the case, as well as Paralegals Rommel Pachoca and Katie Thomas and Legal Assistants Emma Atlas and Kate Abrey.
Clermont Man Sentenced to Federal Prison for Downloading Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung today sentenced Sean Ferraresi (34, Clermont) to 10 years and 1 month in federal prison for receipt of child pornography. The court also ordered Ferraresi to forfeit the computers he had used to download and store child pornography.
Ferraresi had pleaded guilty on December 13, 2019.
According to court documents, Ferraresi had downloaded thousands of files depicting the sexual abuse of children. In addition, after Ferraresi was arrested, law enforcement officers discovered sexually explicit text messages between Ferraresi and children, including conversations in which Ferraresi solicited nude images from or sent nude images to children.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Colin P. McDonell.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Chicago Drug Dealer Sentenced to Life in Prison for Distribution of Heroin Resulting in DeathRead the Press Release
United States Attorney Ron Parsons announced that a Chicago, Illinois, man was sentenced to life in prison by U.S. District Judge Karen E. Schreier.
Maurice Bellafonta Cathey, a/k/a “Short,” age 39, was convicted of two counts of Conspiracy to Distribute a Controlled Substance, one count of Distribution of a Controlled Substance Resulting in Death, and two counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury in a November 2019 trial.
On February 24, 2020, U.S. District Court Judge Karen E. Schreier sentenced Cathey to 30 years in federal prison on each conspiracy count and life in prison for the death and serious bodily injury counts, all to run concurrently. Cathey was also ordered to pay $500 to the Federal Crime Victims Fund.
On January 5, 2018, first responders reported to a fatal overdose of a 22-year-old man at an apartment in Sioux Falls, South Dakota. The victim was unresponsive and attempts to revive him were unsuccessful. A friend of the victim who was with him said that the victim had injected himself with heroin. The victim obtained heroin from his friend that had been distributed by Cathey. Minnehaha County Coroner Dr. Kenneth Snell ruled that the victim’s cause of death was heroin and cyclopropyl fentanyl toxicity.
On February 9, 2018, first responders were dispatched to a fast food restaurant on South Minnesota Avenue for a report of cardiac arrest, where they found a 20-year-old woman who was unconscious and not breathing due to a heroin overdose. The victim was revived by first responders with Narcan. Cathey sold the heroin to the victim minutes before her overdose.
On April 23, 2018, first responders were dispatched to an overdose call at an apartment in Sioux Falls. First responders encountered a 24-year-old man who had overdosed on heroin laced with tramadol, 4-ANPP, and fentanyl, ultimately distributed by Cathey and his co-conspirator, Corrod Phillips. The victim was unconscious and not breathing when first responders arrived, but was revived by Narcan.
On May 16, 2018, a 23-year-old man overdosed on heroin in the bathroom of a grocery store in Sioux Falls. First responders found him unconscious and breathing poorly, and were able to awaken him with Narcan. The victim said he purchased the heroin from Phillips less than an hour before his overdose.
Testimony at trial revealed that multiple other overdoses, including at least one additional death, were caused by heroin distributed by Cathey and Phillips.
The Sioux Falls Area Drug Task Force executed multiple search warrants during the investigation at residences connected to Cathey and Phillips. During the execution of these warrants, SFADTF members located dozens of bindles of crack cocaine and heroin, thousands of dollars in U.S. Currency, and numerous items of drug distribution paraphernalia.
“The sentencing of this career felon to life in prison brings a fitting end to one of the saddest chapters in the history of Sioux Falls,” said U.S. Attorney Parsons. “But the story of how our community came together to defeat the opioid crisis is not yet finished, and we all have much more work to do.”
This case was investigated by the Drug Enforcement Administration, the Sioux Falls Area Drug Task Force, the Sioux Falls Police Department, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Cathey was immediately turned over to the custody of the U.S. Marshals Service. Corrod Phillips awaits sentencing.
Cary Man Sentenced to More Than 5 Years Imprisonment on Child Pornography ChargesRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that yesterday, Chief United States District Judge Terrence W. Boyle, sentenced CHRISTOPHER THOMAS WARD, 37, of Cary, NC to 70 months imprisonment, followed by a ten year term of supervised release. WARD pled guilty pursuant to a plea agreement on September 25, 2019 to one count of receipt of child pornography.
A 2017 investigation into a file sharing network identified WARD’s IP address as advertising known child pornography files, which were directly downloaded from WARD’s IP address on multiple dates. Law enforcement identified WARD’s residence, and a search warrant was obtained. Investigators executed the search warrant on December 15, 2017 and seized numerous electronic devices.
WARD agreed to speak with investigators and, during the interview, admitted to searching for, downloading and storing child pornography. A forensic review of the seized devices determined that WARD had amassed hundreds of thousands of files containing child pornography images and videos.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
The Cary Police Department (CPD), Cary, North Carolina, and Homeland Security Investigations (HSI) conducted the investigation of this case. Assistant United States Attorney Bryan M. Stephany 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.
Bunch Man Sentenced to 80 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Robbie Lee Holmes, age 31, of Bunch, Oklahoma, was sentenced to 80 months’ imprisonment, and 5 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Section 846. The charges arose from an investigation by the Tahlequah Police Department, the Cherokee County Sheriff’s Office, the Sequoyah County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Superseding Indictment alleged that beginning in or about September 2017, and continuing up to and including the date of the Superseding Indictment, within the Eastern District of Oklahoma and elsewhere, the Defendant knowingly and intentionally conspired and agreed with others to possess with intent to distribute and distribute methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Hundreds of people die every year in Oklahoma as a result of methamphetamine. That is why local, state, tribal and federal law enforcement agencies continue to diligently pursue drug trafficking organizations responsible for delivery and distribution of this deadly drug in Oklahoma and throughout the country. Because of successful multi-agency investigations like this one, we continue to identify the distribution networks and organizations that deliver the drugs and the tragic outcomes that follow.”
”The availability of illegal drugs and guns lends to increased violent crime in our communities,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “ATF is committed to disrupting that cycle through collaborative investigations like this.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Shannon Henson represented the United States.Buffalo Woman Pleads Guilty for Her Role in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Catherine Ramos, 31, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to possess with intent to distribute cocaine. The charge carries a maximum possible sentence of 20 years imprisonment and a fine of $1,000,000.
Assistant U.S. Attorney Misha A. Coulson, who is handling the case, stated that beginning in May, 2017 through October, 2017, the defendant conspired with others to possess with intent to distribute cocaine. Specifically, Ramos also sold cocaine to an undercover police officer.
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 June 5, 2020, at 12:30 p.m. before Judge Arcara.
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Buffalo Man Sentenced for Distribution of CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY - U.S. Attorney James P. Kennedy, Jr. announced today that Daniel Paul, 65, of Buffalo, New York, who was convicted of distribution of crack cocaine, was sentenced to serve 120 months in prison and 6 years of supervised release by United States District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Meghan Tokash, who prosecuted the case, stated that in May of 2017, Paul sold 3.32 grams of crack cocaine to an undercover police officer at a location on Thatcher Street in the city of Buffalo. A life-long drug dealer and career criminal offender under the United States Sentencing Guidelines, Paul’s sentence is in part a reflection of his two prior felony convictions in Erie County court from 2004 for Attempted Criminal Sale of a Controlled Substance 3rd and in 2010 for Attempted Criminal Sale of a Controlled Substance 4th. When announcing Paul’s sentence, Judge Arcara noted the defendant’s age and declining health, however stressed the need to protect the public from those who deal drugs.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the New York State Police, under the direction of Major Edward Kennedy.
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Brooklyn Center Felon Sentenced to 10 Years in Prison for Illegal Possession of Multiple Firearms and DrugsRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of HURIAH KAREEM BLEDSOE, 40, to 120 months in prison for illegally possessing five firearms and quantities of marijuana, methamphetamine, cocaine, and heroin. BLEDSOE, who pleaded guilty on October 15, 2019, was sentenced today before Judge Susan Richard Nelson in U.S. District Court in St. Paul, Minnesota.
United States Attorney Erica H. MacDonald said, “Mr. Bledsoe, a convicted felon with an extremely violent criminal history, was in possession of multiple firearms, hundreds of rounds of ammunition, and a variety of dangerous drugs – all in the presence of young children. His actions showed no regard for the safety of those children or the broader community.”
According to the defendant’s guilty plea and documents filed in court, on January 2, 2019, and January 6, 2019, law enforcement received complaints from two separate callers stating that BLEDSOE was staying at the Extended Stay Hotel in Brooklyn Center, Minnesota, and he had guns in the hotel room. The callers also stated that there were minors in the hotel room.
According to the defendant’s guilty plea and documents filed in court, law enforcement obtained search warrants for BLEDSOE’s hotel room and on January 17, 2019, law enforcement executed the warrants and seized five firearms, namely, a North American Arms, model NAA-.22LR, .22LR caliber revolver, a Stoeger, model M3500, 12-gauge short-barreled shotgun, a Ruger, model SR40, .40 caliber semi-automatic handgun, an Imperial Metal Products, model 8, .22 caliber revolver, and a Ceska Zbrojsvka, model 50, 7.65 caliber semi-automatic handgun. Law enforcement also seized hundreds of rounds of ammunition, several high-capacity gun magazines, body armor, a digital scale, $2,320 in cash, and quantities of marijuana, methamphetamine, cocaine, and heroin.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brooklyn Center Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Assistant United States Attorneys Emily A. Polachek and Thomas M. Hollenhorst prosecuted the case.
Defendant Information:
HURIAH KAREEM BLEDSOE, 40
Brooklyn Center, Minn.
Convicted:
- Possession with the intent to distribute controlled substances, 1 count
- Felon in possession of firearms, 1 count
Sentenced:
- 120 months in prison
- Three years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Bloomsburg Man Charged with Impeding A Federal OfficerRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Scott Hemingway, age 63, of Bloomsburg, Pennsylvania, was indicted on February 27, 2020, by a federal grand jury on one charge of impeding a federal officer.
According to United States Attorney David J. Freed, the indictment alleges that on March 29, 2018, in Columbia County, Hemingway did strike and cause physical contact with a mail carrier.
The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Alisan V. Martin is prosecuting the case.
Indictments 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 maximum penalty under federal law for each offense is 8 years of imprisonment, a $250,000 fine, and a 3 year term of supervised release. 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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Biotech Officer Sentenced for Securities Fraud and Obstruction of SEC ProceedingRead the Press Release
BOSTON – The former Vice President of Investor Relations for PixarBio Corp., a Boston-based biotech company, was sentenced yesterday on securities fraud charges in connection with a scheme to manipulate trading in the company’s shares and obstruction of proceedings before the Securities and Exchange Commission (SEC).
Kenneth Stromsland, 48, of Rumson, N.J., was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to six months in home detention, three years of supervised release during which time he must complete 200 hours of community service per year, and ordered to pay a fine of $60,000 and forfeiture of $25,700. In September 2018, Stromsland pleaded guilty to one count of securities fraud through manipulative trading, one count of obstructing an agency proceeding and agreed to cooperate with the government. In April 2018, Stromsland was charged with co-defendant Frank Reynolds, the former chief executive officer of PixarBio. Reynolds was convicted by a federal jury in October 2019, and sentenced on Feb. 18, 2020, to seven years in prison.
Stromsland admitted that beginning in or about November 2016, he engaged in manipulative trades in PixarBio stock that simulated market interest in the stock and artificially pushed up the trading price. These trades included orders to buy at a price much higher than the price of the preceding market transaction.
Stromsland also admitted that during a 2017 SEC investigation into manipulative trading in PixarBio’s stock, he testified falsely before the SEC. In his testimony on three different days, Stromsland falsely denied that he had purchased shares of PixarBio to affect the share price and falsely denied that he had been instructed to do so by PixarBio’s then Chief Executive Officer.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission Office of Inspector General, made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and Leslie A. Wright of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Auburn Man Convicted of Possessing Firearm after Domestic Violence ConvictionRead the Press Release
Portland, Maine: An Auburn man was convicted yesterday following a two-day jury trial of possessing a firearm after being convicted of a misdemeanor crime of domestic violence, U.S. Attorney Halsey B. Frank announced.
According to court records and evidence presented at trial, in June 2010, Willie Richard Minor, 59, was convicted of Assault in Maine Superior Court. The victim of the assault was his wife at the time. As a result of that conviction, Minor was prohibited from possessing firearms. In November 2016, Minor admitted to having a gun in an interview with the Auburn Police Department. The police subsequently recovered the gun he had described.
Minor was originally convicted and sentenced on the federal charge after a trial in December 2017. While the case was pending on appeal, the Supreme Court of the United States issued a decision, Rehaif v. United States, that changed what the government is required to prove in certain federal firearm possession cases. As a result, the parties agreed to have the original conviction vacated, and the case was remanded for a new trial. At the second trial, the government was required to prove not only that Minor had been convicted of assaulting his wife, but also that he knew he had been so convicted and was aware of certain details of the conviction.
Minor faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Auburn Police Department, the Mechanic Falls Police Department, the Maine State Police Crime Laboratory and the FBI investigated the case.