Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 24 February 2020
Former Holyoke Teacher Pleads Guilty to Possession of Child PornographyRead the Press Release
BOSTON – A former Holyoke kindergarten teacher pleaded guilty on Friday, February 21st in federal court in Worcester to possession of child pornography.
Gregory Lisby, 40, of Worcester, pleaded guilty to one count of possession of child pornography. Lisby was arrested and charged on Sept. 13, 2019, and resigned the day before from his position as a kindergarten teacher for the Holyoke Public Schools.
Law enforcement discovered an image depicting child pornography that had been uploaded to a Microsoft OneDrive account that was determined to belong to Lisby. Approximately 180 images and 15 videos of child pornography were identified on the OneDrive. On Sept. 11, 2019, a search was executed at Lisby’s home where Lisby’s iPad and cellphone were recovered. On those devices, investigators found login credentials for the OneDrive account used to store the child pornography.
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. 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 Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Worcester, Holyoke, Northboro and Southboro Police Departments, along with the Massachusetts State Police provided assistance with the investigation. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Florida Department of Corrections Officer Convicted of Civil Rights Conspiracy to Assault Youthful OffendersRead the Press Release
Former Florida Department of Corrections officer, Terrance Reynolds, 30, was convicted Friday following a 14-day trial for conspiring to assault youthful offender inmates, announced the Department of Justice. The jury acquitted Reynolds of two counts of depriving the youthful offender inmates of their civil rights.
Evidence presented at trial established that on March 27, 2017, Reynolds and former Sergeant Brendan Butler, 30, conspired to physically assault and intimidate youthful offender inmates for being disruptive and disrespectful earlier that morning. Reynolds and Butler then instructed three of the inmates to exit their housing unit and took them into a mop closet. Once inside the mop closet, Reynolds and Butler assaulted one of the inmates with a stick, causing him bodily injury, while the other two inmates stood nearby. The following day, Reynolds and Butler assaulted one of the other inmates to punish him for being disrespectful. Inmates may be classified as youthful offenders by a court or the Department of Corrections, and are generally 24 years old or younger. Butler previously pleaded guilty to conspiring to violate the inmates’ civil rights.
“Corrections officers who use unjustified force against inmates in their custody violate the Constitution,” said Acting Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously investigating and prosecuting officers who break the public trust in this way.”
“In the Southern District of Florida, abuse by corrections officers will not be tolerated. Let this be a message to them: If you are an officer who violates the civil rights of those entrusted to your protection, my Office will prosecute you,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida.
“Former corrections officer Terrance Reynolds was found guilty of conspiring to assault youthful offender inmates. Such conduct violates the public’s trust in our institutions and officials,” said George L. Piro, Special Agent in Charge, FBI Miami. “I commend the professionalism and hard work of the Florida Department of Corrections Office of the Inspector General and the FBI’s Miami Area Corruption Task Force with this investigation.”
Reynolds faces a statutory maximum sentence of 10 years in prison.
This case was being investigated by the FBI’s Miami Area Corruption Task Force and the Florida Department of Corrections Office of the Inspector General. It was prosecuted by Assistant U.S. Attorneys Robert Senior and Brian Dobbins of the Southern District of Florida and Special Litigation Counsel Samantha Trepel of the Civil Rights Division.
Former Florida Department of Corrections Officer Convicted of Civil Rights Conspiracy to Assault Youthful OffendersRead the Press Release
MIAMI, Florida — Today, following a 14-day trial, a federal jury found former Florida Department of Corrections Officer Terrance Reynolds, 30, guilty of conspiring to assault youthful offender inmates, announced Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Eric S. Dreiband, Assistant Attorney General of the Justice Department’s Civil Rights Division, and George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Division. The jury acquitted Reynolds of two counts of depriving the youthful offender inmates of their civil rights.
According to the evidence presented at trial, on March 27, 2017, Reynolds and former Sergeant Brendan Butler, 30, conspired to physically assault and intimidate youthful offender inmates for being disruptive and disrespectful earlier that morning. Reynolds and Butler instructed three of the inmates to exit their housing unit and took them into a mop closet. Once inside the mop closet, Reynolds and Butler assaulted one of the inmates with a stick, causing him bodily injury, while the other two inmates stood nearby. The following day, Reynolds and Butler assaulted one of the other inmates to punish him for being disrespectful. Inmates may be classified as youthful offenders by a court or the Department of Corrections, and are generally twenty-four years old or younger. Butler previously pleaded guilty to conspiring to violate the inmates’ civil rights.
“In the Southern District of Florida, abuse by corrections officers will not be tolerated. If you are an officer who violates the civil rights of those entrusted to your protection, know this: My Office will prosecute you,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida.
“Corrections officers who use unjustified force against inmates in their custody violate the Constitution,” said Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously investigating and prosecuting officers who break the public trust in this way.”
“Former corrections officer Terrance Reynolds was found guilty of conspiring to assault youthful offender inmates. Such conduct violates the public’s trust in our institutions and officials,” said George L. Piro, Special Agent in Charge, FBI Miami. “I commend the professionalism and hard work of the Florida Department of Corrections Office of the Inspector General and the FBI’s Miami Area Corruption Task Force with this investigation.”
U.S. Attorney Fajardo Orshan and Acting Assistant Attorney General Gore also commended the investigative efforts of the FBI’s Miami Area Corruption Task Force and the Florida Department of Corrections, Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorneys Robert Senior and Brian Dobbins, of the Southern District of Florida, and Special Litigation Counsel Samantha Trepel, of the Justice Department’s Civil Rights Division.
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 at http://pacer.flsd.uscourts.gov
Former First Asst. McCracken Co. Commonwealth's Attorney Joins Paducah Branch United States Attorney's Office Full-TimeRead the Press Release
PADUCAH, Ky. – United States Attorney Russell Coleman announced today the full-time addition of Raymond Dykie McGee as an Assistant United States Attorney in the U.S. Attorney’s Paducah Branch Office.
“Adding a prosecutor of Dykie McGee’s quality to the Paducah Office shows that our commitment to the Purchase is not mere happy talk; instead backed up with action” said U.S. Attorney Russell Coleman “The feds will continue to collaborate with our state and local partners to better protect Western Kentucky families from drug trafficking, violent crime, and those that would prey on our kids and elderly Kentuckians.”
Mr. McGee joins two full-time Assistant United States Attorneys, a paralegal, and a legal assistant in the Paducah branch office, keeping U.S. Attorney Russell Coleman’s commitment of service to the Purchase and Pennyrile Regions. The addition of Mr. McGee will continue to strengthen working relationships with state prosecutors and local law enforcement agencies in the region. McGee previously served the office in a joint capacity as a Special Assistant United States Attorney while he prosecuted felony cases in state court as First Assistant Commonwealth’s Attorney for the 2nd Judicial Circuit (McCracken County).
“Dykie has been an invaluable asset to the Commonwealth’s Attorney’s Office, and while we’re sad to see him go we know he will also be a tremendous asset to the United States Attorney’s Office,” said Commonwealth’s Attorney Dan Boaz.
The allocation of prosecutorial resources in the Paducah Branch Office is closely-tied to a robust full-time federal law enforcement presence which includes the Bureau of Alcohol, Tobacco, and Firearms (ATF), the Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI). The welcome addition of Federal Bureau of Investigation (FBI) resources in the coming months will round out the federal law enforcement presence in the region.
McGee joins Assistant United States Attorney Seth Hancock, Branch Chief of the Paducah Office, and Assistant United States Attorney Leigh Ann Dycus in prosecuting federal cases in United States District Courts located in Paducah and Owensboro.
####
Former DMV Program Manager Admits to Bribery ConspiracyRead the Press Release
RICHMOND, Va. – A former Virginia Department of Motor Vehicles (DMV) employee pleaded guilty today to his role in a seven-year bribery conspiracy involving the DMV’s Virginia Rider Training Program (VRTP).
According to court documents, Bruce A. Biondo, 63, of Mechanicsville, was the former Program Manager of the VRTP, and worked for the DMV from 1988 until 2018.
Beginning in at least 2011 and continuing to March 2018, Biondo admitted he accepted bribes from outside contractors, including a $15,000 payment from the sham sale of a motorcycle in 2011, additional cash payments totaling over $74,000 between February 2014 and February 2018, and the use of a Ford F-450 pick-up truck for personal purposes. In exchange, Biondo agreed to perform and performed official actions to benefit the preferred VRTP contractors who provided the bribes.
Biondo pleaded guilty to conspiracy to commit honest services wire fraud through bribery and faces a maximum penalty of five years in prison when sentenced on July 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; Michael C. Westfall, Virginia State Inspector General; Colonel Gary T. Settle, Virginia State Police Superintendent; and Joseph Hill, DMV Assistant Commissioner for the Office of Enforcement and Compliance made the announcement after U.S. District Judge David J. Novak accepted the plea. Assistant U.S. Attorney David T. Maguire is prosecuting the case.
This case stems from a complaint received by Virginia DMV. The DMV’s Internal Audit Office and Law Enforcement Division conducted an investigation and found sufficient cause to refer the case to the Office of the State Inspector General and federal authorities.
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. 3:20-cr-18.
Federal Jury Convicts CBL/BFL Gang Member of Two Murders in Aid of Racketeering, and Multiple Other ChargesRead 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, following a six-week trial, a federal jury has convicted CBL/BFL Gang member Dalvon Curry, 23, of Buffalo, NY, of murder in aid of racketeering; racketeering and narcotics conspiracy; possession of firearms in furtherance of a crime of violence; and possession of firearms in furtherance of a drug trafficking crime. The charges carry a mandatory penalty of life in prison, and a $10,000,000 fine.
Assistant U.S. Attorneys Paul C. Parisi and Seth T. Molisani, and Christopher O. Taylor, of the Department of Justice Organized Crime and Gang Section, who handled the prosecution of the case, stated that the defendant is a member of the CBL/BFL Gang which stands for, among other things, “Cash Been Long” and “Brothers for Life.” Identified as a “shooter” in the gang, Curry shot and killed rival gang member Jaquan Sullivan on December 5, 2015. He also shot and killed Xavier Wimes on January 1, 2017.
“Today’s verdict brings to an end the reign of terror by the CBL/BFL Gang that has tormented the residents living in the Towne Gardens Housing Complex for more than a decade,” stated U.S. Attorney Kennedy. “These residents deserve to live without the daily fear of drug deals, gunfire, and violence. Let this investigation and prosecution serve as a warning to any other group of individuals who any be thinking about picking up where this group left off, we will track you down, we will arrest you, and we will prosecute you. Period.”
“For the FBI, community impact is our measure of success -- we need to improve the quality of life for the people who live and work in Buffalo,” said FBI Buffalo Special Agent-in-Charge Gary Loeffert. “We will continue to pursue violent gangs through sustained, proactive investigations and federal prosecutions. And we will continue to stay involved with our community partners in an effort to prevent violent crimes before they happen.”
The gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009 and operates primarily in the City of Buffalo at the Towne Gardens Housing Complex. The Towne Gardens served as a central hub for the gang with many members living within the housing complex, and many housing units used to store firearms and narcotics. Parking lots and business fronts adjacent to the Towne Gardens were utilized by members of the gang to distribute street level quantities of narcotics, including heroin, fentanyl, cocaine, crack cocaine, marijuana, and other controlled substances.
The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang. An attack on a member typically resulted in retaliation by all members of the gang. Members and associates also used social media, such as Facebook and Snapchat, to display gang affiliation, brandish firearms, display quantities of currency and narcotics, and show participation in violent acts. They also produced, sang, and appeared in music videos at locations in and around the gang's territory that promoted the enterprise and its activities.
In order to enforce the authority, members and associates maintained a ready supply of firearms. Certain members and associates carried and discharged firearms. These “enforcers” or “shooters,” retaliated with deadly force against threats of encroachment and violence, both actual and perceived, from rival gangs or individuals. CBL/BFL gang members also threatened witnesses who they suspected might testify or provide information to law enforcement about the crimes committed by the gang.Twelve other CBL/BFL Gang members and associates were previously convicted in this case, they include:
• Shawn Woods, a/k/a Pif;
• Michael Walker, a/k/a Yam;
• Mikel Lowe, a/k/a L-O;
• Aaron Mack, a/k/a Dean, a/k/a Deano;
• Shameris Washington, a/k/a GB;
• Maurice Rice, a/k/a Reese;
• Miquise Jones, a/k/a Scaife;
• Dajon Nettles, a/k/a Gucc;
• Larell Watkins, a/k/a 90-Ls;
• Larry Watkins, Jr.;
• Larquon Watkins, a/k/a 90; and
• Rashad Rose, a/k/a Gotti.The verdict is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major James Hall; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; the U.S. Marshals Service, under the direction of Marshal Charles Salina; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
Sentencing will be scheduled at a later date before U.S. District Judge Lawrence J. Vilardo, who presided over the trial of the case.
# # # #
Fayette County Woman Sentenced to Federal Prison for Wire FraudRead the Press Release
WVDEP Employee Made Over $61,000 in Fraudulent Purchases with State Credit Card
CHARLESTON, W.Va. – A Fayette County woman was sentenced to over one year of federal incarceration for the felony offense of wire fraud, announced United States Attorney Mike Stuart. Yvonne Dozier, 50, of Boomer, West Virginia, previously pled guilty to wire fraud on November 18, 2019. She was sentenced to one year and one day of incarceration and was also ordered to pay restitution to the West Virginia Department of Environmental Protection (WVDEP) in the amount of $61,731.72. Stuart praised the work of the United States Secret Service, the West Virginia State Auditor’s Office, and the WVDEP.
“Dozier stole from the State of West Virginia for four years,” said United States Attorney Mike Stuart. “She was a trusted employee in state government who violated that trust by stealing from taxpayers. Our goal in prosecuting cases like this is not only to hold the offender accountable, but to make victims whole again through restitution. In this case, Dozier will be repaying the WVDEP in full for her fraudulent purchases.”
Dozier previously worked for the WVDEP as an accounting tech. She was assigned a West Virginia state purchasing card and was permitted to make authorized purchases on behalf of the WVDEP. These cards could not be used to make personal purchases. Dozier devised a scheme where she used the state purchasing card to make personal purchases and fraudulently wired credit card information. She then altered invoices and modified the state accounting software to adjust the purchases and make the fraudulent purchases appear as though they were legitimately made. From 2014 to 2018, Dozier made hundreds of unauthorized purchases, costing the state of West Virginia $61,753.72. Dozier gave a Mirandized statement to a Special Agent with the United States Secret Service, in which she admitted to misusing the state purchasing card to make personal purchases, alter invoices, and ultimately pass those expenses onto the State of West Virginia. The fraudulent purchases moved money in interstate commerce both from the actual purchase with the credit card and the State of West Virginia paying her Visa card expenses. Dozier used her state purchasing card to pay for personal expenses such as electric, insurance, cable, and cell phone bills, and vacation rental homes. Dozier no longer works for the State of West Virginia.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Erik S. Goes handled the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
Enrolled Member of the Eastern Band of Cherokee Indians Is Charged with Dealing Fentanyl That Resulted in an Overdose DeathRead the Press Release
ASHEVILLE, N.C. – A federal grand jury sitting in Charlotte returned a criminal bill of indictment on February 20, 2020, charging Shannon White, 42, an enrolled member of the Eastern Band of Cherokee Indians and resident of the Cherokee Indian Reservation, with distributing fentanyl that resulted in an overdose death, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. White appeared in federal court this morning, following her arrest by the DEA and the Swain County Sheriff’s Office.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville District Office, and the counties encompassing the Cherokee Indian Reservation, joins U.S. Attorney Murray in making today’s announcement.
The criminal bill of indictment alleges that on January 28, 2019, White did knowingly distribute a mixture or substance containing fentanyl, a Schedule II controlled substance, which resulted in the death of a victim identified in the indictment as J.F.
White had her initial appearance today in Asheville before U.S. Magistrate Judge W. Carleton Metcalf. The offense charged carries a mandatory minimum term of twenty years imprisonment, a maximum term of life imprisonment, and a $1,000,000 fine.
The charge contained in the indictment is an allegation. The defendant is innocent until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the DEA and the Swain County Sheriff’s Office for their investigation of this case. Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, is handling the prosecution.
Last month, U.S. Attorney Murray was joined by the U.S. Attorneys for the Middle and Eastern Districts of North Carolina and the District of South Carolina, in calling on Congress to issue a permanent ban on fentanyl and its analogues. Congress passed a 15-month extension on DEA’s existing ban on all variants of fentanyl, which President Trump signed into law on February 6, 2020. The current extension expires on May 6, 2021.
“While I am thankful that Congress extended the temporary ban on fentanyl and fentanyl-like analogues, I join law enforcement and prosecutors across the nation in calling for action to permanently outlaw this deadly substance and all its derivatives. Temporary bans are the equivalent of putting a Band-Aid on a gushing wound. We need a permanent fix. Fentanyl and fentanyl analogues kill people and devastate communities. These drugs belong in same legal category as heroin and other deadly substances,” said U.S. Attorney Murray.
U.S. Attorney Murray’s joint op-ed can be accessed here. More information about fentanyl and fentanyl analogues can be found here.
Eight-Time Convicted Felon Sentenced on Firearm and Counterfeit Currency ChargesRead the Press Release
United States Attorney Joe Kelly announced that Coldy D. Hackworth, age 30, of Council Bluffs, Iowa, was sentenced today in federal court in Omaha, Nebraska, for Passing Counterfeit Currency and for being a Felon in Possession of a Firearm. Senior United States District Court Judge Laurie Smith Camp sentenced Hackworth to 77 months’ imprisonment. There is no parole in the federal system. Upon his release, Hackworth will begin a 3-year term of supervised release. Hackworth was also ordered to pay $900 in restitution and a $200 special assessment.
On May 23, 2019, Hackworth made arrangements to purchase a 1995 Chevy Tahoe K1500 from the victim via LetGo.com. Hackworth met the victim and her husband at their home in Omaha and purchased the Tahoe using nine counterfeit $100 United States Federal Reserve Notes. The seller signed the title over and Hackworth drove the Chevy Tahoe away. On May 24, 2019, Hackworth registered the Chevy Tahoe in his name in the State of Iowa and his name is listed as the purchaser on the bill of sale for the Chevy Tahoe. The Chevy Tahoe was located by the Omaha Police Department on June 23, 2019, at an apartment complex in Omaha that Hackworth was known to periodically reside.
On June 19, 2019, officers with the Omaha Police Department were called to investigate a suspicious vehicle in Omaha. Upon arrival the officers located the vehicle and made contact with the vehicle’s occupants. Hackworth was the passenger of the vehicle. The driver of the vehicle admitted to being in possession of drug paraphernalia and, as a result, a search of the vehicle was conducted. During the search of the vehicle, officers located a loaded HiPoint C9 9mm handgun in a bag under the passenger seat. Hackworth informed officers “I know I’m a felon and I knew it was in there.” Hackworth later informed officers that there was $5,600 in counterfeit currency in the vehicle. This currency was located in a hidden compartment of the same bag that the firearm had been found in. On June 19, 2019, Hackworth was an eight-time convicted felon and was out on bond in state court pending sentencing for a Second Degree Assault conviction.
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.
This case was investigated by the Omaha Police Department, the United States Secret Service, and the FBI Greater Omaha Safe Streets Task Force.
Doctor Described as ‘Candy Man’ and ‘El Chapo of Opioids’ Admits Distributing Opioids to PatientsRead the Press Release
NEWARK, N.J. – A Bergen County doctor today admitted distributing opioids without a legitimate medical reason and falsifying medical records to cover it up, U.S. Attorney Craig Carpenito announced.
Robert Delagente, 45, of Oakland, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an indictment charging him with one count of conspiracy to distribute controlled dangerous substances, three counts of distribution of controlled dangerous substances, and one count of falsifying medical records.
“This defendant knowingly prescribed for his patients some of the most dangerous and addictive drugs available, sometimes with no more contact than a text message from the patient,” U.S. Attorney Carpenito said. “Many of these patients were dealing with pain and addiction, and instead of getting help from their doctor, they were drawn deeper into the cycle of drug abuse. His admission of guilt today ensures that he will be appropriately punished for this behavior.”
“Dr. Delagente sold his ethics, his medical license, and his moral compass,” FBI-Newark Special Agent in Charge Gregory W. Ehrie said. “There is no magic elixir for the pain caused by pill mill doctors. The cure is public awareness, victims who come forward and a determined fleet of FBI investigators who will arrest these unscrupulous practitioners when they run afoul of the law.”
According to documents filed in this case and statements made in court:
Beginning in May 2014, Delagente was a doctor at a medical practice called North Jersey Family Medicine (NJFM) in Oakland, New Jersey. He allegedly described himself in conversations pertaining to his prescribing of painkillers as the “Candy Man” and the “El Chapo of Opioids.” Delagente knowingly prescribed controlled substances, such as oxycodone, Percocet, Tylenol with codeine, and various benzodiazepines (alprazolam, diazepam, clonazepam, and temazepam), outside the ordinary course of professional practice and without a legitimate medical purpose. He ignored the inherent danger and medical risk of overdose, drug abuse, and death that can accompany prescriptions of highly addictive opioids, benzodiazepines, and muscle relaxers, both on their own and in combination with one another.
Delagente prescribed controlled substances without ever seeing the purported patient for a medical visit or even discussing with the patient the medical need for the prescription. He allowed patients to ask him for controlled substances via text message and would write a prescription for patients that he would leave at the front desk, without requiring an office visit or consultation of any kind. He allowed patients to dictate the strength and dosage of the controlled substances he prescribed for them. Delagente also prescribed the dangerous drug combination known as the “Holy Trinity,” comprised of opioids (usually oxycodone), benzodiazepines (usually alprazolam) and muscle relaxers (usually carisoprodol).
Delagente failed to monitor patients for addiction and ignored drug screening tests to determine whether certain patients were taking illicit drugs. In fact, Delagente prescribed controlled substances to patients he knew were addicted to opioids or other controlled substances. In one instance, an NJFM employee texted Delagente that a patient had gotten a babysitter and driven a long distance to get to the practice, but had been unable to see a doctor. Delagente responded: “Oh well … C’est la vie! Lol … He can wait for his oral heroin another day. Lol.”
One patient texted Delagente that the patient “probably can’t stop the pk’s,” referring to painkillers. The patient told Delagente that the patient “would need a plan to stop…not cold turkey.” A few days later, when the patient was having trouble obtaining pain medication, the patient wrote to Delagente that “If I go 4 days without [painkillers] I am in huge trouble.” In response, Delagente wrote “I will leave you a short supply RX [prescription] at the front to pick up.” Delagente then wrote the patient a prescription for 120 tablets of 30-milligram oxycodone for 30 days. Delagente at one point told this patient: “I’m literally sticking my neck out and can lose my medical license or [be] arrested for what I just did.”
Delagente also was charged with altering medical records of patients who received controlled substance prescriptions from him after law enforcement officials had subpoenaed the records in late April 2019.
Delagente faces a maximum penalty of 20 years in prison and a $1 million fine on each of the distribution of controlled dangerous substances charges. Delagente faces a maximum penalty of 20 years in prison and a $250,000 fine on the charge of falsifying medical records. Sentencing for Delagente is scheduled for June 10, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jason S. Gould of the Health Care Fraud Unit and Sean M. Sherman of the Opioids Unit in Newark.
DEA Announces Launch of Operation Crystal ShieldRead the Press Release
Attorney General William P. Barr and Drug Enforcement Administration Acting Administrator Uttam Dhillon announced on February 20, 2020, that the DEA will direct enforcement resources to methamphetamine “transportation hubs” — areas where methamphetamine is often trafficked in bulk and then distributed across the country. While continuing to focus on stopping drugs being smuggled across the border, DEA’s Operation Crystal Shield will ramp up enforcement to block their further distribution into America’s neighborhoods.
DEA has identified eight major methamphetamine transportation hubs where these efforts will be concentrated: Atlanta, Dallas, El Paso, Houston, Los Angeles, New Orleans, Phoenix, and St. Louis. Together, these DEA Field Divisions accounted for more than 75 percent of methamphetamine seized in the U.S. in 2019.
“While meth is not a new drug, it has seen a troubling resurgence over the past few years,” said Attorney General William P. Barr. “Manufactured mostly in Mexican labs and smuggled into the United States across the southwest border, meth is a drug that is both cheap and potent, creating a deadly combination. Just as the Trump Administration has acted swiftly to stem the tide of opioid fatalities, it will use every weapon in its arsenal – such as the DEA’s Operation Crystal Shield - to stop dangerous methamphetamine from reaching American neighborhoods and harming American families.”
“Illegal drugs are wreaking havoc on our communities. Finding and prosecuting those who sell this poison is a priority of my office,” said David C. Joseph, U.S. Attorney for the Western District of Louisiana. “We will continue to work with our law enforcement partners each day to disrupt drug trafficking networks, imprison their participants, and forfeit any proceeds to the United States. Make no mistake, crystal methamphetamine is a grave threat to the well-being of our citizens.”
Operation Crystal Shield builds on existing DEA initiatives that target major drug trafficking networks, including the Mexican cartels that are responsible for the overwhelming majority of methamphetamine trafficked into and within the United States. From FY 2017 to FY 2019, DEA domestic seizures of methamphetamine increased 127 percent from 49,507 pounds to 112,146 pounds. During the same time frame, the number of DEA arrests related to methamphetamine rose nearly twenty percent.
“For decades, methamphetamine has been a leading cause of violence and addiction – a drug threat that has never gone away,” said Acting Administrator Dhillon. “With a 22 percent increase in methamphetamine-related overdose deaths, now is the time to act, and DEA is leading the way with a surge of interdiction efforts and resources, targeting regional transportation hubs throughout the United States. By reducing the supply of meth, we reduce the violence, addiction, and death it spreads.”
DEA New Orleans Field Division Special Agent in Charge Brad L. Byerley said, “Methamphetamine destroys lives and is one of the primary drivers of violence across the nation, including here in our four-state region. Operation Crystal Shield will build on DEA’s ongoing efforts to hold meth dealers accountable. We will continue to seize their profits, shut down their distribution networks, and put dealers where they belong – behind bars. By continuing to target local distribution networks in this transportation hub, DEA and our federal, state and local law enforcement partners are working to reduce violent crime and improve the quality of life for the citizens in our area and beyond.”
The DEA New Orleans Field Division, which covers Louisiana, Mississippi, Alabama, and Arkansas, is seeing a significant increase in the amount of methamphetamine seized, up 58 percent in the last year.
Virtually all methamphetamine in the United States comes through major ports of entry along the Southwest Border and is transported by tractor trailers and personal vehicles along the nation’s highways to major transfer centers around the country. It is often found in poly-drug loads, alongside cocaine, heroin, and fentanyl.
Parents and children are encouraged to educate themselves about the dangers of drugs by visiting DEA’s interactive websites at www.JustThinkTwice.com, www.GetSmartAboutDrugs.com, and www.dea.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
# # #
Creston Man Sentenced to 188 Months in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Des Moines, Iowa—On February 24, 2020, Brandon Robert Fry, age 39, of Creston, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to 188 months in prison for Possession with Intent to Distribute Methamphetamine. Fry was ordered to serve five years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Fund.
Fry pleaded guilty to this offense on October 11, 2019. He admitted that he knowingly possessed over 500 grams of methamphetamine on June 4, 2019, which was found by law enforcement in a white Mercedes, in Creston. Fry admitted that he had intended to distribute the methamphetamine. At the time of this offense, Fry was on federal supervised release for a prior conviction of Felon in Possession of a Firearm.
This matter was investigated by the United States Probation Office, Des Moines Police Department, Iowa Division of Narcotics Enforcement, Creston Police Department, and the Mid-Iowa Narcotics Enforcement Task force. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
Career Offender Sentenced for Trafficking Crack CocaineRead the Press Release
PROVIDENCE – One of two men charged with delivering crack cocaine at the direction of an ACI inmate who ran a drug trafficking conspiracy from inside the state prison was sentenced today to five years in federal prison, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives Kelly D. Brady.
Gerald Price, 34, previously admitted to the court that, at the direction of ACI inmate James Gomes, 30, he delivered crack cocaine to a customer of Gomes who was not incarcerated. The drug deal was established during a telephone conference call between Gomes and Price, allegedly coordinated by Gomes’ mother, Lisa Ellis, 51, of Pawtucket.
According to information presented to the court, on June 22, 2018, Gomes telephoned his mother, who then allegedly conferenced Price into the call. During the 3-way conference call, Gomes advised Price that he had a buyer who wanted to buy crack cocaine. Price agreed to deliver the drugs on Gomes’ behalf and, at Gomes’ direction, provide the proceeds from the sale to Gomes’ mother.
Later that day, Price arranged with the buyer, an undercover officer, to meet at a location in Providence on June 26. The two men met as planned. Price provided the individual with more than 30 grams of crack cocaine in exchange for $1,920. Some of the proceeds from the sale of the drugs were allegedly provided to Ellis, who, after allegedly taking her share, deposited the remainder of the money in Gomes’ prison account.
Subsequently, Gomes asked Price to sell the same buyer a gun, and Price, after initially agreeing to make the sale, ultimately objected because he suspected that the buyer was an undercover police officer.
Price, previously convicted and incarcerated on several occasions on drug and firearm charges, pleaded guilty in U.S. District Court on November 8, 2019, to conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base, and distribution of 28 grams or more of cocaine base.
At sentencing today, U.S. District Court Chief Judge John J. McConnell, Jr., sentenced Price to 60 months in federal prison to be followed by four years’ supervised release.
Gomes, who pleaded guilty in federal court on October 15, 2019, to one count each of conspiracy to distribute 28 grams or more of cocaine base and distribution of 28 grams or more of cocaine base, and to three counts of distribution of cocaine base, is scheduled to be sentenced on March 19, 2020.
A second individual who admitted to delivering crack cocaine to customers of Gomes at Gomes’ request, Joshua Moore, 29, formerly of Pawtucket, was sentenced on November 21, 2019, to 60 months in federal prison to be followed by four years’ supervised release. Moore pleaded guilty on September 4, 2019, to conspiracy to distribute and possess with intent to distribute cocaine base, and to four counts of distribution of cocaine base.
Lisa Ellis, charged by way of indictment with one count of conspiracy to distribute and possess with intent to distribute cocaine base, and four counts of distribution of cocaine base, is awaiting trial in U.S. District Court.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF and the Rhode Island ATF Task Force.
###
Cambridge Woman Indicted for Stealing Social Security and Snap BenefitsRead the Press Release
BOSTON – A Cambridge woman was arrested on Friday, February 21st for stealing Social Security and Supplemental Nutrition Assistance Program benefits.
Phaedra M. Sheets, 45, was charged in an indictment with two counts of theft of public funds. Sheets pleaded not guilty before U.S. District Court Magistrate Judge M. Page Kelley.
According to the indictment, Sheets stole approximately $71,636 in Social Security benefits from December 2009 through September 2018. Sheets also stole approximately $13,923 in Supplemental Nutrition Assistance Program benefits, formerly known as food stamps.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent until and proven guilty beyond a reasonable doubt in a court of law.
Buckfield Man Sentenced to over Eight Years for Cocaine Trafficking OffenseRead the Press Release
Portland, Maine: A Buckfield man was sentenced today in federal court in Portland for possession with intent to distribute more than 500 grams of cocaine, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Nancy Torresen sentenced Joshua Morin, 33, to 100 months in prison and three years of supervised release. Morin pleaded guilty on June 24, 2019.
According to court records, on January 2, 2019, after a police pursuit, Morin crashed his car and then continued to flee officers on foot. After officers apprehended him, they recovered a large amount of cocaine from his person and from just outside the car he had been driving. Police also recovered $20,000 cash at the scene of the crash. The cocaine weighed approximately 1.6 kilograms, or about 3.5 pounds. Morin told the police that he distributed the cocaine in ounce and half-ounce quantities.
The Maine Drug Enforcement Agency, the Oxford County Sheriff’s Office, the Androscoggin County Sheriff’s Office, the Maine State Police, the Lewiston Police Department and the FBI investigated the case.
Bridgeport Man Sentenced to More Than 21 Years in Federal Prison for Violent Armed RobberiesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JACHIM BROWN, also known as “Ameer Edwards,” 29, of Bridgeport, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 260 months of imprisonment, followed by five years of supervised release, for committing several violent armed robberies in 2017 during which he shot and wounded two individuals.
According to court documents and statements made in court:
On September 27, 2017, Brown, wearing a mask and pointing a gun, entered Nikita’s Bar, located on Iranistan Avenue in Bridgeport, and pointed a gun at the only employee who was working at the time. Brown directed the employee to location behind the bar to retrieve a key to a safe. After the employee complied, Brown opened the safe and stole approximately $2,450. During this robbery, the car of Brown’s half-brother, Eric Chambers, can be seen on surveillance video driving past the entrance to the bar. Chambers had previously worked security at the bar.
In the early morning hours of November 9, 2017, Brown, again brandishing a gun, robbed an employee of Avenue Restaurant who was couriering approximately $2,000 in cash to Bishop’s Corner Café on Boston Avenue in Bridgeport. Surveillance video outside Bishop’s Corner again revealed Chambers’ car in close vicinity to the robbery. On November 13, 2017, the same employee, who had delegated his money courier responsibilities to another security guard after the November 9 robbery, was again confronted by Brown. When Brown realized that the employee did not have the cash, he shot the employee in the thigh.
On November 14, 2017, Brown, wearing a mask and brandishing a gun, entered the Bar Restaurant, located on Main Street in Stratford, and walked directly to a bin near the cash register that typically contained approximately 80 envelopes with cash payments for employees of the Bar Restaurant and other establishments. Brown grabbed the bin, pointed his gun at one employee’s head, and turned and fired at a second employee who had his hands raised, hitting the second employee in his stomach. Surveillance video revealed that Brown had been dropped off behind the restaurant by Chambers.
On November 16, 2017, at about 9:35 a.m., Bridgeport Police responded to a call of an armed robbery in progress at EbLens, located on Pequonnock Street in Bridgeport. After Brown exited the store, a Bridgeport Police officer chased him on foot. As Brown attempted to get into Chambers’ car, he turned and fired at the police officer. The officer returned fire, tackled Brown and placed him under arrest.
At the time of his arrest, Brown possessed a Raven P25 .25 ACP caliber handgun. Forensic analysis of the firearm revealed that it had also been used in the shootings of the two individuals on November 13 and 14.
Brown has been detained since his arrest. On May 29, 2019, he pleaded guilty to four counts of Hobbs Act robbery and one count of discharging a firearm during and in relation to a crime of violence.
On March 19, 2019, a jury found Chambers, 36, of Bridgeport, guilty of four counts of aiding and abetting in Hobbs Act robbery. He awaits sentencing.
This matter was investigated by the Federal Bureau of Investigation, Bridgeport Police Department and Stratford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale, Jocelyn Kaoutzanis and Peter Markle.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Boca Raton Man Arrested for Producing and Distributing Child PornographyRead the Press Release
West Palm Beach, Florida – Robert Solove, 28, of Boca Raton, Florida, was arrested and charged by federal criminal complaint with production, distribution, and possession of child pornography.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
According to court records, KiK username rsolove99 was observed posting images in an internet chat room of a young girl engaged in sexually explicit acts. The girl in the images appeared to be a female toddler. During a chat, rsolove99 said that he had taken the images of the female toddler. Investigation of the username led law enforcement to Solove and his residence. While executing a search warrant at Solove’s home on February 18, 2020, law enforcement officers observed a female toddler. The officers determined that the toddler needed medical attention and called for an ambulance to transport her to the hospital. Solove had two cellular telephones that contained videos of children who appeared to be under 12 engaged in sexually explicit acts. Federal agents arrested Solove for production, distribution, and possession of child pornography.
Solove’s pretrial detention hearing is set for 10:00 a.m. on March 26, 2020, in federal magistrate court in West Palm Beach, Florida.
U.S. Attorney Ariana Fajardo Orshan commended the investigation efforts of HSI and the Palm Beach County Sheriffs Office. Assistant U.S. Attorney Gregory Schiller is prosecuting this case. Anyone with information about this matter should contact Homeland Security Investigations by telephone at (866) 347-2423 (HSI Tipline Number) or on-line at www.ice.gov/webform/hsi-tip-form.
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.
A criminal complaint is an accusation and defendant is presumed innocent unless and until he is found guilty beyond a reasonable doubt.
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.
Baltimore Felon Sentenced to More Than 12 Years in Federal Prison for Two Armed RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Benjamin Fowlkes, age 35, of Baltimore, Maryland, to 150 months in federal prison, followed by three years of supervised release, for the armed robbery of a convenience store and the armed robbery of a bank. Judge Hollander also ordered Fowlkes to pay restitution of $13, 294.92.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, on November 26, 2018, shortly before 11 p.m., Fowlkes robbed a convenience store located in the 2700 block of West Franklin Street in Baltimore, displaying what appeared to be a silver semiautomatic handgun, but was in fact an air gun. Fowlkes ordered the store employees to open the cash register and give him the cash, which they did. Fowlkes then fled.
The next day, Fowlkes robbed a bank located in the 3600 block of Boston Street in Baltimore. Shortly after the bank opened, Fowlkes entered the bank and asked to open an account. Fowlkes was directed to a customer service employee in another part of the bank. Fowlkes pulled a yellow folder from a white mesh laundry bag, asked for a pen, and then wrote a note demanding money, which he passed to the employee. The employee advised that there was no money in the customer service area. Fowlkes took the note back, stated that he had a gun, and drew what appeared to be a silver semiautomatic handgun—but that was in fact an air gun—from the white mesh laundry bag. Fowlkes told the employee, who was on crutches, to get up slowly. The victim employee complied and walked to the teller area of the bank, where two other employees were working, to get the money Fowlkes demanded. Fowlkes followed her there. While in the teller area, Fowlkes again displayed the silver air gun and demanded money, and also demanded one of the tellers’ car keys. One employee handed over the keys to his car—a Hyundai Sonata—and another employee handed Fowlkes the cash from the teller drawers, which Fowlkes placed in the white mesh laundry bag. Fowlkes then escaped in the stolen Hyundai Sonata.
Fowlkes was arrested on November 29, 2018, after a Baltimore Police Officer in the Southwestern District determined that the tags on a Hyundai Sonata driven by Fowlkes had been stolen. When Fowlkes was pulled over, he was wearing the same zip-up hoodie worn during the robberies, and he had $2,021 in cash on him, which was stolen from the bank. A subsequent search warrant executed at his residence resulted in law enforcement recovering the white mesh laundry bag, yellow folder, and demand note used at the bank robbery, mail addressed to the owner of the Hyundai Sonata, which Fowlkes had taken from the stolen car, and the silver air gun used in connection with both robberies.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul A. Riley, who prosecuted the case.
# # #
Attorney charged with making false statement related to bribery caseRead the Press Release
BROWNSVILLE, Texas – A McAllen woman has been taken into custody following the return of an indictment alleging she made a false statement to authorities in a bribery investigation involving alien detainee roster lists, announced U.S. Attorney Ryan K. Patrick.
The grand jury returned the indictment under seal Feb. 18 against Cynthia Alanis, 27. She is expected to make her initial appearance before U.S. Magistrate Judge Ignacio Torteya III at 2 p.m. today.
The charge stems from a bribery investigation involving Benito Barrientez, 42, Lyford; Exy Adelaida Gomez, 42, Los Fresnos; and Damian Ortiz, 30, and her brother - McAllen attorney Roel Alanis, 39, both of Weslaco. They were charged with conspiracy to commit bribery and bribery in relation to obtaining alien detainee roster lists.
The indictment against Cynthia Alanis alleges she falsely stated she did not receive nor know of any alien detainee roster lists given to the Alanis law firm. However, the charges allege she had previously received detainee roster lists and also knew of such lists given to the law firm.
Barrientez and Ortiz were employed at the Willacy County Regional Detention Center as a classification clerk and a senior program director, respectively. Gomez was a corrections officer at the El Valle Detention Center. Both facilities are located in Raymondville.
The indictment alleges Barrientes, Ortiz and Gomez obtained alien detainee roster lists from the El Valle Detention Center and the Port Isabel Detention Center-Los Fresnos while employed in their respective capacities.
The lists were then allegedly provided to Roel Alanis, an attorney with a practice in in the Rio Grande Valley. Roel Alanis then allegedly paid money to the employees in return for receiving the lists which contained names, dates of birth, country of origin and A-numbers of alien detainees. The charges allege Roel Alanis would visit the illegal aliens for the purpose of hiring his law firm as their attorney in immigration proceedings. Alternatively, he would instruct his sister or others to do so, according to the charges.
If convicted, Cynthia Alanis faces up to five years in federal prison and a possible $250,000 maximum fine.
Barrientez and Ortiz have pleaded guilty and are set for sentencing April 29.
Immigration and Customs Enforcement (ICE) - Office of Professional Responsibility conducted the investigation with assistance from the Department of Homeland Security - Office of the Inspector General and ICE's Homeland Security Investigations. Assistant U.S. Attorney Oscar Ponce is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.|
A defendant is presumed innocent unless convicted through due process of law.Ansonia Man Sentenced to More Than 3 Years in Federal Prison for Distributing Fentanyl and CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KENTWAN ROBINSON, also known as Thomas Robinson, 27, of Ansonia, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 37 months of imprisonment, followed by three years of supervised release, for distributing fentanyl and crack cocaine.
According to court documents and statements made in court, in November 2018, the Drug Enforcement Administration received information that Robinson was distributing fentanyl in the Bridgeport area. On three occasions between November 2018 and January 2019, investigators conducted controlled purchases of fentanyl from Robinson at various locations. During one of the transactions, Robinson also sold a quantity of crack cocaine.
Robinson was arrested at his Ansonia residence on February 6, 2019. At the time of his arrest, he possessed approximately 10 grams of fentanyl that he intended to distribute and approximately $1,800 in cash.
Robinson has been detained since his arrest. On July 31, 2019, he pleaded guilty to two counts of distribution of fentanyl, one count of distribution of fentanyl and cocaine base (“crack”), and one count of possession with intent to distribute fentanyl.
Robinson’s criminal history includes convictions for drug, larceny and weapons offenses. He also has charges pending in Ohio after it is alleged that, on December 28, 2018, he drove his car from Ohio State Police at a high rate of speed. After the car crashed, Robinson attempted to flee on foot before he was apprehended. A search of the car revealed a loaded 9mm handgun with an extended magazine and a “selector switch,” a device used to convert a semi-automatic pistol to a rapid-fire automatic weapon.
This matter was investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Bridgeport Police Department. The Task Force includes personnel from the DEA, Connecticut State Police and Norwalk, Stamford, Stratford, Milford, Bridgeport and Trumbull Police Departments. The case was prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Aiken County Man Sentenced to 24 Years in Federal Prison for Drug ConspiracyRead the Press Release
Columbia, South Carolina ---- Acting United States Attorney A. Lance Crick announced today that Brian William Rose of Aiken County was sentenced in federal court for his involvement in a methamphetamine and heroin conspiracy and being a felon in possession of a firearm.
United States District Judge J. Michelle Childs of Columbia sentenced Rose to 24 years in federal prison followed by 5 years of supervised release on the drug conspiracy and a concurrent 10 years in prison followed by 3 years of supervised release for possessing a firearm as a felon. There is no parole in the federal system.
Co-defendants Ricardo Dunbar, James Clinton Gunter, Jr., Joseph Price Langford, and Scott Dylan Green, also of Aiken County, were previously sentenced for their involvement in the conspiracy.
Evidence presented to the court when Rose pleaded guilty established that the Drug Enforcement Administration initiated an investigation into the narcotics distribution activities of co-defendants Kenneth Evans and Eddie Brockington. Evans is an inmate in the South Carolina Department of Corrections and Brockington is an inmate in the Georgia Department of Corrections. Through controlled purchases and other investigative techniques, agents learned that members of the conspiracy purchased and distributed large amounts of methamphetamine and/or heroin for Evans and Brockington. Some of the individuals charged were responsible for transporting multi-kilogram amounts of methamphetamine and heroin into South Carolina and then distributing the drugs throughout the state. Brockington and Evans have pleaded guilty to the conspiracy charge against them and are awaiting sentencing.
The case was investigated by agents of the Drug Enforcement Administration and the Aiken County Sheriff's Office. Assistant United States Attorney William K. Witherspoon of the Columbia office prosecuted the case.
#####
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.
Accounts Payable Clerk Indicted for FraudRead the Press Release
PROVIDENCE – An accounts payable clerk employed by a Providence small business that sells gifts and home décor items was arraigned in U.S. District Court in Providence today on charges he allegedly misappropriated approximately $302,000 of company funds for his own personal use and for use by an acquaintance.
Grant Devillez, 35, of Dayville, Conn., was arraigned on an indictment charging him with ten counts of wire fraud, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
It is alleged that for nearly three years beginning in October 2015, Devillez was responsible for preparing lists of proposed vendor payments, and after receiving approval from the company’s owner to make the payments, he was provided a bank access code by the owner to make those payments by electronic wire transfers.
It is alleged that Devillez made a partial payment or no payment at all to some vendors, transferring the balance of approved funds from his employer’s business bank account to his own bank accounts or to an account owned by another person. It is alleged that after making the unauthorized transfers, Devillez falsified records to reflect that full payment had been made to the vendors.
It is alleged that Devillez misappropriated approximately $302,000.
Devillez, arrested today by FBI agents who investigated the matter, was arraigned before U.S. District Court Magistrate Judge Patricia A. Sullivan and released on unsecured bond and GPS monitoring.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Wire fraud is punishable by statutory maximum penalties of 20 years imprisonment, a fine of twice the gross/gain loss, and 3 years’ supervised release.
The case is being prosecuted by Assistant United States Attorney Denise M. Barton.
###
Friday 21 February 2020
York Man Sentenced to 230 Months’ Imprisonment for Robbery and Firearms ConvictionsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Johnson, age 52, of York, Pennsylvania, was sentenced on February 20, 2020, by Senior U.S. District Court Judge Sylvia H. Rambo to 230 months’ imprisonment for his convictions on Hobbs Act robbery and firearms convictions.
According to U.S. Attorney David J. Freed, Johnson and his co-conspirator robbed and shot the victim in the head on Girard Avenue, York, on January 9, 2016. During the investigation, law enforcement officers recovered the gun used to shoot the victim, a stolen Smith and Wesson 9mm caliber semiautomatic pistol, from Johnson’s co-conspirator during her arrest on January 13, 2016. Johnson was convicted on all charges after a two-day jury trial in May 2019.
Testimony established that the victim remained in a comatose state for at least four months following the shooting. The victim required three brain surgeries and other life-saving medical interventions to repair the damage caused by Johnson and his co-conspirator.
Based on Johnson’s conviction for discharging a firearm during a crime of violence, Johnson was sentenced to an enhanced penalty requiring a mandatory minimum of 10 years’ imprisonment, which was ordered to be served consecutively to the 110 month sentence imposed for the Hobbs Act robbery conviction. Judge Rambo ordered that the federal sentence will be served after any other sentence imposed by the York County Court of Common Pleas on several charges against Johnson that are still pending there.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant United States Attorney William A. Behe prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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.
# # #
Woonsocket Man Admits to Possessing 50,000 Images of Child PornographyRead the Press Release
PROVIDENCE – A Woonsocket man arrested by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) task force in February 2019, today admitted in federal court to having been in possession of more than 50,000 images and 200 videos of child pornography at the time of his arrest.
Appearing today before U.S. District Court Judge Mary S. McElroy, Jason Muschiano, 39, pled guilty to possession of child pornography, announced United States Attorney Aaron L. Weisman, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
According to information presented to the court, during the month of November 2018, members of the ICAC task force conducted an online child exploitation investigation involving the use of peer-to-peer networks. Detectives observed an IP address they later determined belonged to Muschiano sharing files of suspected child pornography.
On February 14, 2019, members of the ICAC task force executed a court-authorized search of Muschiano’s residence. During the search, Muschiano admitted to law enforcement that he had downloaded and viewed child pornography depicting toddlers ages three, four, and five years old.
A full forensic review of digital storage devices seized from Muschiano’s residence revealed over 50,000 images and 200 videos depicting child pornography.
Muschiano is scheduled to be sentenced on May 22, 2020.
Possession of child pornography is punishable by statutory penalties of up to 20 years imprisonment; a term of supervised release of life; and a $5,000 special assessment.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
###
Wisconsin Resident Admits Role in Schemes that Defrauded Illinois Company of More Than $9 MillionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEVEN C. GOLD, 47, of Pleasant Prairie, Wisconsin, pleaded guilty today in Bridgeport federal court to fraud and conspiracy offenses stemming from his participation in two separate scheme that defrauded his Illinois-based company of more than $9 million.
According to court documents and statements made in court, Gold and John T. Finkle III were employed by JST, a supplier of electronic components based in Waukegan, Illinois. Finkle, of East Haven, was primarily employed in sales for JST and Gold operated the accounting and billing systems for the company. Between approximately February 2015 and December 2018, Finkle conspired with Kenneth Pedroli, and Gold, to defraud JST through a scheme involving purchases of electronic components that Pedroli made from JST for a business he operated in Islandia, New York. As part of the scheme, Finkle instructed Pedroli to place his orders and list prices at a fraction of JST’s published prices. After Pedroli’s orders were submitted to JST at the discounted prices, the products were shipped from JST to Pedroli. Finkle instructed Pedroli to pay only a portion of the invoiced price and to make the payments directly to Finkle, which Pedroli did. Finkle deposited the payments into his personal checking account, and provided a portion of the funds to Gold, who manipulated the accounting records of JST to make it appear that Pedroli had paid JST for the products he received.
JST was defrauded of $3,359,058.69 through this scheme.
During the investigation of the scheme involving Finkle and Pedroli, investigators uncovered an additional $6,060,151 that Gold had stolen from JST by accessing and manipulating JSTs accounting system. Gold used the stolen funds to pay for personal expenses that included vacations, online gambling, home improvement costs, furniture, clothes, restaurants, college tuition, and car payments. He also unlawfully transferred hundreds of thousands of dollars in JST funds to his wife’s company.
Gold pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of wire fraud. Both offenses carry a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Janet C. Hall on May 20, 2020.
Gold is released on a $500,000 bond pending sentencing.
Finkle and Pedroli previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. On November 22, 2019, Finkle was sentenced to 24 months of imprisonment and, on December 12, 2019, Pedroli was sentenced to three years of probation.
This investigation has been conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ray Miller of the District of Connecticut, and Assistant U.S. Attorney Jacqueline Stern of the Northern District of Illinois.
Wheeling woman sentenced for role in cocaine and heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Tiffany Sells, of Wheeling, West Virginia, was sentenced today to 21 months incarceration for her role in a cocaine and heroin distribution operation, U.S. Attorney Bill Powell announced.
Sells, age 38, pled guilty to one count of “Distribution of Cocaine Base within 1,000 feet of a Protected Location” in July 2019. Sells admitted to selling cocaine near Jensen Playground on Wheeling Island in July 2018.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The investigation was led by the Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative. The task force is comprised of the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department. Those assisting in the arrests are the United States Marshal Service; Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Martins Ferry, Ohio Police Department; and the Columbus, Ohio Police Department.
U.S. District Judge John Preston Bailey presided.
West Tennessee Psychiatrist Found Guilty of Unlawfully Distributing OpioidsRead the Press Release
First Trial Guilty Verdict for ARPO Strike Force
Memphis, TN – A federal jury found a west Tennessee doctor guilty today for unlawfully distributing opioids to purported patients and to others who were never his patients. The defendant was charged in an April 2019 indictment as part of the first Appalachian Regional Prescription Opioid (ARPO) Strike Force Takedown, and this was the first trial guilty verdict for the ARPO Strike Force.
Following an eight-day trial, Richard Farmer, M.D., 83, of Memphis, Tennessee, a licensed psychiatrist, was found guilty of three counts of distribution of controlled substances outside the scope of professional practice and without a legitimate medical purpose. Sentencing is scheduled for May 22 by U.S. District Judge Thomas L. Parker of the Western District of Tennessee, who presided over the trial.
"The Department of Justice will not relent in its pursuit of those responsible for fueling the opioid epidemic in the Appalachian region," said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. "Today’s verdict, which shows that our efforts are yielding tangible results, is a credit to the hard work of the Criminal Division’s ARPO Strike Force and our U.S. Attorney’s Office and law enforcement partners."
"Opioid misuse and abuse is an insidious epidemic, created in large part by the over-prescribing and diversion of potent opioids," said U.S. Attorney D. Michael Dunavant of the Western District of Tennessee. "This guilty verdict demonstrates our resolve to aggressively prosecute medical personnel who misuse their positions of trust to exploit the very people coming to them for help."
"Doctors who take advantage of patients suffering from addiction are no different than street corner drug dealers," said Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration’s (DEA) Louisville Division Office. "I am proud of the dedicated men and women of DEA who worked tirelessly to bring Dr. Farmer to justice."
According to the evidence presented at trial, Farmer prescribed opioids to three sisters with whom he had ongoing sexual contact during the time he was prescribing. The evidence showed that between July 2016 and January 2019, Farmer prescribed over 1,200 pills, even though the three sisters showed clear signs of addiction. The evidence further showed that he kept almost no patient files on these women, and that he also wrote opioid prescriptions for the women’s friends and neighbors without any office visits.
The DEA, along with the Shelby County Sheriff’s Office and the Jackson Police Department, investigated the case.
Trial Attorney Jillian Willis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee are prosecuting the case.
The Fraud Section leads the ARPO Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. There have thus far been 24 guilty pleas as a result of the ARPO Strike Force’s efforts.
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.
West Tennessee Psychiatrist Found Guilty of Unlawfully Distributing OpioidsRead the Press Release
A federal jury found a west Tennessee doctor guilty today for unlawfully distributing opioids to purported patients and to others who were never his patients. The defendant was charged in an April 2019 indictment as part of the first Appalachian Regional Prescription Opioid (ARPO) Strike Force Takedown, and this was the first trial guilty verdict for the ARPO Strike Force.
Following an eight-day trial, Richard Farmer, M.D., 83, of Memphis, Tennessee, a licensed psychiatrist, was found guilty of three counts of distribution of controlled substances outside the scope of professional practice and without a legitimate medical purpose. Sentencing is scheduled for May 22 by U.S. District Judge Thomas L. Parker of the Western District of Tennessee, who presided over the trial.
“The Department of Justice will not relent in its pursuit of those responsible for fueling the opioid epidemic in the Appalachian region,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s verdict, which shows that our efforts are yielding tangible results, is a credit to the hard work of the Criminal Division’s ARPO Strike Force and our U.S. Attorney’s Office and law enforcement partners.”
“Opioid misuse and abuse is an insidious epidemic, created in large part by the over-prescribing and diversion of potent opioids,” said U.S. Attorney D. Michael Dunavant of the Western District of Tennessee. “This guilty verdict demonstrates our resolve to aggressively prosecute medical personnel who misuse their positions of trust to exploit the very people coming to them for help.”
“Doctors who take advantage of patients suffering from addiction are no different than street corner drug dealers,” said Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration’s (DEA) Louisville Division Office. “I am proud of the dedicated men and women of DEA who worked tirelessly to bring Dr. Farmer to justice.”
According to the evidence presented at trial, Farmer prescribed opioids to three sisters with whom he had ongoing sexual contact during the time he was prescribing. The evidence showed that between July 2016 and January 2019, Farmer prescribed over 1,200 pills, even though the three sisters showed clear signs of addiction. The evidence further showed that he kept almost no patient files on these women, and that he also wrote opioid prescriptions for the women’s friends and neighbors without any office visits.
The DEA, along with the Shelby County Sheriff’s Office and the Jackson Police Department, investigated the case.
Trial Attorney Jillian Willis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee are prosecuting the case.
The Fraud Section leads the ARPO Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. There have thus far been 24 guilty pleas as a result of the ARPO Strike Force’s efforts.
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.
Wells Fargo Agrees to Pay $3 Billion to Resolve Criminal and Civil Investigations into Sales Practices Involving the Opening of Millions of Accounts without Customer AuthorizationRead the Press Release
Wells Fargo & Company and its subsidiary, Wells Fargo Bank, N.A., have agreed to pay $3 billion to resolve their potential criminal and civil liability stemming from a practice between 2002 and 2016 of pressuring employees to meet unrealistic sales goals that led thousands of employees to provide millions of accounts or products to customers under false pretenses or without consent, often by creating false records or misusing customers’ identities, the Department of Justice announced today.
As part of the agreements with the United States Attorney’s Offices for the Central District of California and the Western District of North Carolina, the Commercial Litigation Branch of the Civil Division, and the Securities and Exchange Commission, Wells Fargo admitted that it collected millions of dollars in fees and interest to which the Company was not entitled, harmed the credit ratings of certain customers, and unlawfully misused customers’ sensitive personal information, including customers’ means of identification.
“When companies cheat to compete, they harm customers and other competitors,” said Deputy Assistant Attorney General Michael D. Granston of the Department of Justice’s Civil Division. “This settlement holds Wells Fargo accountable for tolerating fraudulent conduct that is remarkable both for its duration and scope, and for its blatant disregard of customer’s private information. The Civil Division will continue to use all available tools to protect the American public from fraud and abuse, including misconduct by or against their financial institutions.”
“Our settlement with Wells Fargo, and the $3 billion monetary penalty imposed on the bank, go far beyond ‘the cost of doing business.’ They are appropriate given the staggering size, scope and duration of Wells Fargo’s illicit conduct, which spanned well over a decade,” said U.S. Attorney Andrew Murray for the Western District of North Carolina. “When a reputable institution like Wells Fargo caves to the pernicious forces of greed, and puts its own interests ahead of those of the customers it claims to serve, my office will not sit idle. Today’s announcement should serve as a stark reminder that no institution is too big, too powerful, or too well-known to be held accountable and face enforcement action for its wrongdoings.”
“This case illustrates a complete failure of leadership at multiple levels within the Bank. Simply put, Wells Fargo traded its hard-earned reputation for short-term profits, and harmed untold numbers of customers along the way,” said U.S. Attorney Nick Hanna for the Central District of California. “We are hopeful that this $3 billion penalty, along with the personnel and structural changes at the Bank, will ensure that such conduct will not reoccur.”
“Our office is committed to bringing to justice those who deliberately falsify and fabricate bank records in order to deceive regulators and the public,” said Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection. “I commend our agent and our law enforcement partners for their hard work and persistence that led to today’s announcement.”
“Today’s multi-billion-dollar penalty holds Wells Fargo accountable for its unlawful sales practices and pressure tactics in which it deceived millions of clients, thus causing substantial hardship for the very individuals who placed their trust in the institution,” said Inspector General Jay N. Lerner Federal Deposit Insurance Corporation. “The FDIC Office of Inspector General is committed to working with our law enforcement partners in order to investigate such financial crimes that harm customers and investors, and undermine the integrity of the banking sector.”
The criminal investigation into false bank records and identity theft is being resolved with a deferred prosecution agreement in which Wells Fargo will not be prosecuted during the three-year term of the agreement if it abides by certain conditions, including continuing to cooperate with further government investigations. Wells Fargo also entered a civil settlement agreement under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) based on Wells Fargo’s creation of false bank records. FIRREA authorizes the federal government to seek civil penalties against financial institutions that violate various predicate criminal offenses, including false bank records. Wells Fargo also agreed to the SEC instituting a cease-and-desist proceeding finding violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The $3 billion payment resolves all three matters, and includes a $500 million civil penalty to be distributed by the SEC to investors.
The 16-page statement of facts accompanying the deferred prosecution agreement and civil settlement agreement outlines a course of conduct over 15 years at Well Fargo’s Community Bank, which was then the largest operating segment of Wells Fargo, consistently generating more than half of the company’s revenue. The statement of facts outlines top Community Bank leaders’ knowledge of the conduct. As part of the statement of facts, Wells Fargo admitted the following:
Beginning in 1998, Wells Fargo increased its focus on sales volume and reliance on annual sales growth. A core part of this sales model was the “cross-sell strategy” to sell existing customers additional financial products. It was “the foundation of our business model,” according to Wells Fargo. In its 2012 Vision and Values statement, Wells Fargo stated: “We start with what the customer needs – not with what we want to sell them.”
But, in contrast to Wells Fargo’s public statements and disclosures about needs-based selling, the Community Bank implemented a volume-based sales model in which employees were directed and pressured to sell large volumes of products to existing customers, often with little regard to actual customer need or expected use. The Community Bank’s onerous sales goals and accompanying management pressure led thousands of its employees to engage in unlawful conduct – including fraud, identity theft and the falsification of bank records – and unethical practices to sell product of no or little value to the customer.
Many of these practices were referred to within Wells Fargo as “gaming.” Gaming strategies varied widely, but included using existing customers’ identities – without their consent – to open checking and savings, debit card, credit card, bill pay and global remittance accounts. From 2002 to 2016, gaming practices included forging customer signatures to open accounts without authorization, creating PINs to activate unauthorized debit cards, moving money from millions of customer accounts to unauthorized accounts in a practice known internally as “simulated funding,” opening credit cards and bill pay products without authorization, altering customers’ true contact information to prevent customers from learning of unauthorized accounts and prevent Wells Fargo employees from reaching customers to conduct customer satisfaction surveys, and encouraging customers to open accounts they neither wanted or needed.
The top managers of the Community Bank were aware of the unlawful and unethical gaming practices as early as 2002, and they knew that the conduct was increasing due to onerous sales goals and pressure from management to meet these goals. One internal investigator in 2004 called the problem a “growing plague.” The following year, another internal investigator said the problem was “spiraling out of control.” Even after senior managers in the Community Bank directly called into question the implementation of the cross-sell strategy, Community Bank senior leadership refused to alter the sales model, which contained unrealistic sales goals and a focus on low-quality secondary accounts.
Despite knowledge of the illegal sales practices, Community Bank senior leadership failed to take sufficient action to prevent and reduce the incidence of such practices. Senior leadership of the Community Bank minimized the problems to Wells Fargo management and its board of directors, by casting the problem as driven by individual misconduct instead of the sales model itself. Community Bank senior leadership viewed negative sales quality and integrity as a necessary byproduct of the increased sales and as merely the cost of doing business.
* * *
The government’s decision to enter into the deferred prosecution agreement and civil settlement took into account a number of factors, including Wells Fargo’s extensive cooperation and substantial assistance with the government’s investigations; Wells Fargo’s admission of wrongdoing; its continued cooperation in the investigations; its prior settlements in a series of regulatory and civil actions; and remedial actions, including significant changes in Wells Fargo’s management and its board of directors, an enhanced compliance program, and significant work to identify and compensate customers who may have been victims. The deferred prosecution agreement will be in effect for three years.
The global settlement also reflects coordination between the Department of Justice and the SEC to ensure a resolution that appropriately addresses the severity of the defendants’ conduct while avoiding the imposition of fines and penalties that are unnecessarily duplicative.
The deferred prosecution agreement was handled by the United States Attorney’s Offices in Los Angeles and Charlotte, with investigative support from the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation - Office of Inspector General, the Federal Housing Finance Agency - Office of Inspector General, the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, and the United States Postal Inspection Service.
The civil settlement agreement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office in Los Angeles.
Wells Fargo Agrees to Pay $3 Billion to Resolve Criminal and Civil Investigations into Sales Practices Involving the Opening of Millions of Accounts Without Customer AuthorizationRead the Press Release
CIVIL SETTLEMENT AGREEMENT DEFERRED PROSECUTION AGREEMENTLOS ANGELES – Wells Fargo & Co. and its subsidiary, Wells Fargo Bank, N.A., have agreed to pay $3 billion to resolve three separate matters stemming from a years-long practice of pressuring employees to meet unrealistic sales goals – which led thousands of employees to provide millions of accounts or products to customers under false pretenses or without consent, often by creating false records or misusing customers’ identities, the Department of Justice announced today.
As part of the agreements with the United States Attorney’s Offices for the Central District of California and the Western District of North Carolina, the Justice Department’s Civil Division, and the Securities and Exchange Commission, Wells Fargo admitted that it collected millions of dollars in fees and interest to which the company was not entitled, harmed the credit ratings of certain customers, and unlawfully misused customers’ sensitive personal information.
“This case illustrates a complete failure of leadership at multiple levels within the bank. Simply put, Wells Fargo traded its hard-earned reputation for short-term profits, and harmed untold numbers of customers along the way,” said United States Attorney Nick Hanna. “We are hopeful that this $3 billion penalty, along with the personnel and structural changes at the bank, will ensure that such conduct will not reoccur.”
The criminal investigation into false bank records and identity theft is being resolved with a deferred prosecution agreement in which Wells Fargo will not be prosecuted during the three-year term of the agreement if it abides by certain conditions, including continuing to cooperate with ongoing investigations. Wells Fargo also entered a civil settlement agreement under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) based on Wells Fargo’s creation of false bank records. Wells Fargo also agreed to the SEC instituting a cease-and-desist proceeding finding violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The $3 billion payment resolves all three matters, and includes a $500 million civil penalty to be distributed by the SEC to investors.
“When companies cheat to compete, they harm customers and other competitors,” said Deputy Assistant Attorney General Michael D. Granston of the Department of Justice’s Civil Division. “This settlement holds Wells Fargo accountable for tolerating fraudulent conduct that is remarkable both for its duration and scope, and for its blatant disregard of customers’ private information. The Civil Division will continue to use all available tools to protect the American public from fraud and abuse, including misconduct by or against their financial institutions.”
“Our settlement with Wells Fargo, and the $3 billion monetary penalty imposed on the bank, go far beyond ‘the cost of doing business.’ They are appropriate given the staggering size, scope and duration of Wells Fargo’s illicit conduct, which spanned well over a decade,” said Andrew Murray, the United States Attorney for the Western District of North Carolina. “When a reputable institution like Wells Fargo caves to the pernicious forces of greed, and puts its own interests ahead of those of the customers it claims to serve, my office will not sit idle. Today’s announcement should serve as a stark reminder that no institution is too big, too powerful, or too well known to be held accountable and face enforcement action for its wrongdoings.”
The 16-page statement of facts accompanying the deferred prosecution agreement and civil settlement agreement outlines a course of conduct over 15 years at Well Fargo’s Community Bank, which was then the largest operating segment of Wells Fargo, consistently generating more than half of the company’s revenue. The statement of facts outlines top Community Bank leaders’ knowledge of the conduct. As part of the statement of facts, Wells Fargo admitted the following:
Beginning in 1998, Wells Fargo increased its focus on sales volume and reliance on annual sales growth. A core part of this sales model was the “cross-sell strategy” to sell existing customers additional financial products. It was “the foundation of our business model,” according to Wells Fargo. In its 2012 Vision and Values statement, Wells Fargo stated: “We start with what the customer needs – not with what we want to sell them.”
But, in contrast to Wells Fargo’s public statements and disclosures about needs-based selling, the Community Bank implemented a volume-based sales model in which employees were directed and pressured to sell large volumes of products to existing customers, often with little regard to actual customer need or expected use. The Community Bank’s onerous sales goals and accompanying management pressure led thousands of its employees to engage in unlawful conduct – including fraud, identity theft and the falsification of bank records – and unethical practices to sell products of no or little value to the customer.
Many of these practices were referred to within Wells Fargo as “gaming.” Gaming strategies varied widely, but included using existing customers’ identities – without their consent – to open checking and savings, debit card, credit card, bill pay and global remittance accounts. From 2002 to 2016, gaming practices included forging customer signatures to open accounts without authorization, creating PINs to activate unauthorized debit cards, moving money from millions of customer accounts to unauthorized accounts in a practice known internally as “simulated funding,” opening credit cards and bill pay products without authorization, altering customers’ true contact information to prevent customers from learning of unauthorized accounts and prevent Wells Fargo employees from reaching customers to conduct customer satisfaction surveys, and encouraging customers to open accounts they neither wanted or needed.
The top managers of the Community Bank were aware of the unlawful and unethical gaming practices as early as 2002, and they knew that the conduct was increasing due to onerous sales goals and pressure from management to meet these goals. One internal investigator in 2004 called the problem a “growing plague.” The following year, another internal investigator said the problem was “spiraling out of control.” Even after senior managers in the Community Bank directly called into question the implementation of the cross-sell strategy, Community Bank senior leadership refused to alter the sales model, which contained unrealistic sales goals and a focus on low-quality secondary accounts.
Despite knowledge of the illegal sales practices, Community Bank senior leadership failed to take sufficient action to prevent and reduce the incidence of such practices. Senior leadership of the Community Bank minimized the problems to Wells Fargo management and its board of directors, by casting the problem as driven by individual misconduct instead of the sales model itself. Community Bank senior leadership viewed negative sales quality and integrity as a necessary byproduct of the increased sales and as merely the cost of doing business.
“Our office is committed to bringing to justice those who deliberately falsify and fabricate bank records in order to deceive regulators and the public,” said Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection. “I commend our agent and our law enforcement partners for their hard work and persistence that led to today’s announcement.”
“Today’s multi-billion-dollar penalty holds Wells Fargo accountable for its unlawful sales practices and pressure tactics in which it deceived millions of clients, thus causing substantial hardship for the very individuals who placed their trust in the institution,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation. “The FDIC Office of Inspector General is committed to working with our law enforcement partners in order to investigate such financial crimes that harm customers and investors, and undermine the integrity of the banking sector.”
“Since 2016, FBI San Francisco has prioritized our criminal investigation into the unlawful practices by Wells Fargo. Trust in our banks and financial institutions is fundamental to the security and stability of the U.S. economy,” said FBI San Francisco Special Agent in Charge John F. Bennett. “The FBI has dedicated significant resources to uncovering the truth and ensuring the protection of American consumers.”
“The United States Postal Inspection Service has a long history of successfully investigating complex fraud cases,” stated San Francisco Division Inspector in Charge Rafael E. Nuñez. “Anyone or any organization engaging in deceptive practices should know they will not go undetected and will be held accountable. The collaborative investigative work on this case conducted by Postal Inspectors, our law enforcement partners, and the United States Attorney’s Offices illustrates our efforts to protect consumers.”
The government’s decision to enter into the deferred prosecution agreement and civil settlement took into account a number of factors, including Wells Fargo’s extensive cooperation and substantial assistance with the government’s investigations; Wells Fargo’s admission of wrongdoing; its continued cooperation with investigators; its prior settlements in a series of regulatory and civil actions; and remedial actions, including significant changes in Wells Fargo’s management and its board of directors, an enhanced compliance program, and significant work to identify and compensate customers who may have been victims. The deferred prosecution agreement will be in effect for three years.
The global settlement also reflects coordination between the Department of Justice and the SEC to ensure a resolution that appropriately addresses the severity of the defendants’ conduct while avoiding the imposition of fines and penalties that are unnecessarily duplicative.
The deferred prosecution agreement was handled by the United States Attorney’s Offices in Los Angeles and Charlotte, with investigative support from the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation - Office of Inspector General, the Federal Housing Finance Agency - Office of Inspector General, the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, and the United States Postal Inspection Service.
This matter was prosecuted by Assistant United States Attorneys Alexander B. Schwab and Carolyn S. Small of the Major Frauds Section, along with Special Assistant United States Attorneys Benjamin S. Kingsley and Thomas D. Stout, and Assistant United States Attorney Daniel S. Ryan of the Western District of North Carolina.
The civil settlement agreement was the result of a coordinated effort between the U.S. Attorney’s Offices in Los Angeles and Charlotte, and the Commercial Litigation Branch in the Civil Division of the Department of Justice. Special Assistant United States Attorney Ellen M. London and Assistant United States Attorneys Abraham C. Meltzer of the Civil Fraud Section and David M. Harris, chief of the Civil Division, along with DOJ Senior Litigation Counsel Jamie Yavelberg and DOJ Trial Attorney Mary Chris Dobbie represented the United States in the civil matter.
Wells Fargo Agrees to Pay $3 Billion to Resolve Criminal and Civil Investigations into Sales Practices Involving the Opening of Millions of Accounts Without Customer AuthorizationRead the Press Release
CHARLOTTE, N.C. - Wells Fargo & Company and its subsidiary, Wells Fargo Bank, N.A., have agreed to pay $3 billion to resolve their potential criminal and civil liability stemming from a practice between 2002 and 2016 of pressuring employees to meet unrealistic sales goals that led thousands of employees to provide millions of accounts or products to customers under false pretenses or without consent, often by creating false records or misusing customers’ identities, the Department of Justice announced today.
As part of the agreements with the United States Attorney’s Offices for the Western District of North Carolina and the Central District of California, the Commercial Litigation Branch of the Civil Division, and the Securities and Exchange Commission, Wells Fargo admitted that it collected millions of dollars in fees and interest to which the Company was not entitled, harmed the credit ratings of certain customers, and unlawfully misused customers’ sensitive personal information, including customers’ means of identification.
"When companies cheat to compete, they harm customers and other competitors," said Deputy Assistant Attorney General Michael D. Granston of the Department of Justice’s Civil Division. "This settlement holds Wells Fargo accountable for tolerating fraudulent conduct that is remarkable both for its duration and scope, and for its blatant disregard of customer’s private information. The Civil Division will continue to use all available tools to protect the American public from fraud and abuse, including misconduct by or against their financial institutions."
"Our settlement with Wells Fargo, and the $3 billion monetary penalty imposed on the bank, go far beyond ‘the cost of doing business.’ They are appropriate given the staggering size, scope and duration of Wells Fargo’s illicit conduct, which spanned well over a decade," said U.S. Attorney Andrew Murray for the Western District of North Carolina. "When a reputable institution like Wells Fargo caves to the pernicious forces of greed, and puts its own interests ahead of those of the customers it claims to serve, my office will not sit idle. Today’s
announcement should serve as a stark reminder that no institution is too big, too powerful, or too well-known to be held accountable and face enforcement action for its wrongdoings."
"This case illustrates a complete failure of leadership at multiple levels within the Bank. Simply put, Wells Fargo traded its hard-earned reputation for short-term profits, and harmed untold numbers of customers along the way," said U.S. Attorney Nick Hanna for the Central District of California. "We are hopeful that this $3 billion penalty, along with the personnel and structural changes at the Bank, will ensure that such conduct will not reoccur."
"Our office is committed to bringing to justice those who deliberately falsify and fabricate bank records in order to deceive regulators and the public," said Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection. "I commend our agent and our law enforcement partners for their hard work and persistence that led to today’s announcement."
"Today’s multi-billion-dollar penalty holds Wells Fargo accountable for its unlawful sales practices and pressure tactics in which it deceived millions of clients, thus causing substantial hardship for the very individuals who placed their trust in the institution," said Inspector General Jay N. Lerner Federal Deposit Insurance Corporation. "The FDIC Office of Inspector General is committed to working with our law enforcement partners in order to investigate such financial crimes that harm customers and investors, and undermine the integrity of the banking sector."
The criminal investigation into false bank records and identity theft is being resolved with a deferred prosecution agreement in which Wells Fargo will not be prosecuted during the three-year term of the agreement if it abides by certain conditions, including continuing to cooperate with further government investigations. Wells Fargo also entered a civil settlement agreement under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) based on Wells Fargo’s creation of false bank records. FIRREA authorizes the federal government to seek civil penalties against financial institutions that violate various predicate criminal offenses, including false bank records. Wells Fargo also agreed to the SEC instituting a cease-and-desist proceeding finding violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The $3 billion payment resolves all three matters, and includes a $500 million civil penalty to be distributed by the SEC to investors.
The 16-page statement of facts accompanying the deferred prosecution agreement and civil settlement agreement outlines a course of conduct over 15 years at Well Fargo’s Community Bank, which was then the largest operating segment of Wells Fargo, consistently generating more than half of the company’s revenue. The statement of facts outlines top Community Bank leaders’ knowledge of the conduct. As part of the statement of facts, Wells Fargo admitted the following:
Beginning in 1998, Wells Fargo increased its focus on sales volume and reliance on annual sales growth. A core part of this sales model was the "cross-sell strategy" to sell existing customers additional financial products. It was "the foundation of our business model," according to Wells Fargo. In its 2012 Vision and Values statement, Wells Fargo stated: "We start with what the customer needs – not with what we want to sell them."
But, in contrast to Wells Fargo’s public statements and disclosures about needs-based selling, the Community Bank implemented a volume-based sales model in which employees were directed and pressured to sell large volumes of products to existing customers, often with little regard to actual customer need or expected use. The Community Bank’s onerous sales goals and accompanying management pressure led thousands of its employees to engage in unlawful conduct – including fraud, identity theft and the falsification of bank records – and unethical practices to sell product of no or little value to the customer.
Many of these practices were referred to within Wells Fargo as "gaming." Gaming strategies varied widely, but included using existing customers’ identities – without their consent – to open checking and savings, debit card, credit card, bill pay and global remittance accounts. From 2002 to 2016, gaming practices included forging customer signatures to open accounts without authorization, creating PINs to activate unauthorized debit cards, moving money from millions of customer accounts to unauthorized accounts in a practice known internally as "simulated funding," opening credit cards and bill pay products without authorization, altering customers’ true contact information to prevent customers from learning of unauthorized accounts and prevent Wells Fargo employees from reaching customers to conduct customer satisfaction surveys, and encouraging customers to open accounts they neither wanted or needed.
The top managers of the Community Bank were aware of the unlawful and unethical gaming practices as early as 2002, and they knew that the conduct was increasing due to onerous sales goals and pressure from management to meet these goals. One internal investigator in 2004 called the problem a "growing plague." The following year, another internal investigator said the problem was "spiraling out of control." Even after senior managers in the Community Bank directly called into question the implementation of the cross-sell strategy, Community Bank senior leadership refused to alter the sales model, which contained unrealistic sales goals and a focus on low-quality secondary accounts.
Despite knowledge of the illegal sales practices, Community Bank senior leadership failed to take sufficient action to prevent and reduce the incidence of such practices. Senior leadership of the Community Bank minimized the problems to Wells Fargo management and its board of directors, by casting the problem as driven by individual misconduct instead of the sales model itself. Community Bank senior leadership viewed negative sales quality and integrity as a necessary byproduct of the increased sales and as merely the cost of doing business.
* * *
The government’s decision to enter into the deferred prosecution agreement and civil settlement took into account a number of factors, including Wells Fargo’s extensive cooperation and substantial assistance with the government’s investigations; Wells Fargo’s admission of wrongdoing; its continued cooperation in the investigations; its prior settlements in a series of regulatory and civil actions; and remedial actions, including significant changes in Wells Fargo’s management and its board of directors, an enhanced compliance program, and significant work to identify and compensate customers who may have been victims. The deferred prosecution agreement will be in effect for three years.
The global settlement also reflects coordination between the Department of Justice and the SEC to ensure a resolution that appropriately addresses the severity of the defendants’ conduct while avoiding the imposition of fines and penalties that are unnecessarily duplicative.
The deferred prosecution agreement was handled by the United States Attorney’s Offices in Charlotte and Los Angeles, with investigative support from the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation - Office of Inspector General, the Federal Housing Finance Agency - Office of Inspector General, the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, and the United States Postal Inspection Service.
The civil settlement agreement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office in Los Angeles.
# # #
Versailles Man Sentenced to 120 Months for Armed Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky. – A Versailles, Kentucky man, Danny Wayne Bedwell, 29, was sentenced to 120 months in federal prison on Friday, by Chief United States District Judge Danny C. Reeves, after previously pleading guilty to trafficking methamphetamine and possession of a firearm in furtherance of drug trafficking.
Bedwell previously admitted that on March 7, 2018, he trafficked crystal methamphetamine, to a cooperating witness for law enforcement. According to the plea agreement, Bedwell admitted that on April 27, 2018, law enforcement found heroin, methamphetamine, and a loaded .380 pistol. Bedwell further admitted to law enforcement that he had been distributing methamphetamine and the drugs from his house.
Bedwell pleaded guilty in November 2019.
Under federal law, Bedwell must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Louisville Field Division; Tommy Estevan, Acting Special Agent in Charge, Alcohol, Tobacco, Firearms, and Explosives (ATF), Louisville Field Division, jointly made the announcement.
The investigation was conducted by ATF and DEA. The United States was represented by Assistant U.S. Attorney Roger West.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is 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. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
— END —
Union County Man Convicted of Firearms Offense in Connection with ShootingRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man previously convicted of multiple felonies was found guilty in federal court of being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced today.
Jarrell L. Daniels, 29, of Elizabeth, New Jersey, was convicted after a two and a half-day trial before U.S. District Judge Kevin McNulty in Newark federal court of one count of being a felon in possession of a semi-automatic submachine gun with a high capacity magazine and multiple rounds of ammunition. The jury deliberated less than two hours before delivering the guilty verdict on Feb. 20, 2020.
According to documents filed in this case and the evidence at trial:
On the morning of April 9, 2018, Daniels was walking down Irvington Avenue in Elizabeth, carrying a loaded .45 caliber Masterpiece Arms ACP submachine gun, with 30 additional rounds of ammunition in an extended magazine. Daniels was wearing a disguise, as well as latex gloves. He came upon his victim and opened fire, shooting at his victim 16 times, but none of the shots struck the victim. As he fled the scene, Daniels dropped his head covering and later stashed the gun and other items of clothing in a nearby trashcan. DNA on these items, as well as surveillance footage and ballistics evidence, ultimately enabled the authorities to identify Daniels as the shooter.
The count on which Daniels was convicted is punishable by a maximum of 10 years in prison and a fine of up to $250,000. Sentencing has not yet been scheduled.
U.S. Attorney Carpenito credited law enforcement officers of the Elizabeth Police Department, under the direction of Police Chief John Brennan, Jr.; the Union County Sheriff’s Office, under the direction of Sheriff Peter Corvelli; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson; and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Lyndsay V. Ruotolo, with the investigation leading to the guilty verdict.
The government was represented by Assistant U.S. Attorneys Vera Varshavsky and Sammi Malek of the Criminal Division of the U.S. Attorney’s Office in Newark.
Defense counsel: Peter Willis Esq. and Maximillian Novel Esq., Jersey City, New Jersey
U.S. Attorney's Office Sponsors 17th Annual Project Safe Neighborhoods Logo ContestRead the Press Release
COLUMBIA, South Carolina ---- The United States Attorney's Office is sponsoring the 17th Annual Project Safe Neighborhoods (PSN) Logo Contest. The statewide contest welcomes students to illustrate how we can help prevent gun violence in our schools by designing a logo for use on upcoming PSN publications.
The contest is open to all South Carolina grade school students and entries will be categorized into four grade divisions: K-2, 3-5, 6-8, and 9-12 grades. A winner will be selected from each of the four divisions, and each division winner will receive $50. An overall winning logo or meme will be chosen from the four division winners and will receive an additional $50 for a total of $100.
The winning entries will be selected by “The Insiders,” a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state encouraging children and promoting community awareness of the consequences of juvenile crime. The South Carolina Law Enforcement Officers’ Association Foundation will be providing the awards to the winners.
Entries should be consistent with the theme “Preventing Gun Violence in Our Schools.” The deadline for submissions is March 27, 2020. If your student is interested in participating, contact your local school as contest information has been sent to all South Carolina schools. Applications and contest rules may also be found on our website at https://www.justice.gov/usao-sc/programs/ceasefire/project-sentry/contest-winners/contest-rules.
PSN focuses on reducing violent crime in our communities through enforcement, re-entry, and prevention initiatives. The annual logo contest is an important prevention initiative that has proven to be an effective way to engage our students in meaningful conversation about preventing gun crimes amongst our young people and ensuring a safe learning atmosphere for our children. For more information on the contest and to view winning logos from previous years, please visit
http://www.justice.gov/usao/sc/programs/logowinners.html.
#####
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Issues Statement on Sheriff’s Compliance with Subpoenas Seeking Jail RecordsRead the Press Release
Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – February 21, 2020
SAN DIEGO – The San Diego Sheriff’s Department has complied with two of four immigration subpoenas issued last Friday by U.S. Immigration and Customs Enforcement. These subpoenas sought information about multiple illegal aliens with extensive criminal records and history of illegal entry into the United States. Currently, the individuals are facing additional charges, which include sexual assault of a minor, spousal abuse and false imprisonment, drug possession, assault, and spousal battery.
U.S. Attorney Robert Brewer issued the following statement: “We appreciate the Sheriff’s Department’s compliance with the ICE enforcement subpoenas. We are particularly grateful for the strong working relationships among federal and local law enforcement agencies in the Southern District of California. The sharing of information by law enforcement is crucial to protecting the public and the effective enforcement of our laws.”
There were four subpoenas issued last week; the Sheriff’s Department complied with the first two, which were due this week. The remaining two are due next week.
Tyndall Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Tyndall, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Jose Eduardo Rodriguez, age 44, was indicted on February 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 14, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Rodriguez was convicted of Fourth Degree Rape in July 1998. As a result of this conviction, he is required to register as a sex offender. It is alleged between August 18, 2019, and December 26, 2019, Rodriguez, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Rodriguez is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Rodriguez was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Treasurer of Multiple Political Action Committees Sentenced for Filing False Reports with the FECRead the Press Release
A Virginia political consultant who served as the treasurer of multiple Political Action Committees (PACs) was sentenced today to one year and a day in prison followed by two years of supervised release for lying to the Federal Election Commission (FEC) about approximately $32,500 in payments of Political Action Committee (PAC) money that he directed to himself and a close friend.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
U.S. District Judge Liam O’Grady sentenced Scott B. Mackenzie, 66, today after Mackenzie’s Oct. 22, 2019 conviction. Judge O’Grady also ordered Mackenzie to pay $172,000 in restitution.
From 2011 through 2018, Mackenzie was the treasurer of approximately 52 PACs, including Conservative StrikeForce, Conservative Majority Fund, Tea Party Majority Fund and Conservative Majority SuperFund. In that role, Mackenzie was responsible for complying with campaign finance laws and regulations and filing accurate disclosure reports with the FEC that detailed the PACs’ true income and expenditures.
Person A was a resident of Winchester, Virginia, who had a personal relationship with Mackenzie and with whom Mackenzie shared a joint bank account. Between October 2011 and June 2014, Mackenzie caused approximately $32,500 in payments to Person A from bank accounts belonging to Conservative StrikeForce, Conservative Majority Fund and Conservative Majority SuperFund. Mackenzie falsely reported to the FEC that Person A received these payments for work that Person A had purportedly provided to Conservative StrikeForce and Conservative Majority Fund. In fact, as Mackenzie knew, Person A—an umbrella retailer with no experience in political fundraising—did not provide any of the purported services to these PACs. The funds were deposited into the bank account that Mackenzie shared with Person A.
In addition, Mackenzie made false statements to the FEC to conceal the unlawful use of funds raised by Conservative Majority Fund and Tea Party Majority Fund to pay at least $172,200 in legal fees that Conservative StrikeForce and affiliated companies had incurred from defending a civil lawsuit brought by a former gubernatorial candidate for Virginia.
Finally, Mackenzie admitted that he participated in a scheme to use conduits (also known as straw donors) to contribute to candidates running for federal public office. Mackenzie used conduits to make these contributions in order to evade limits that federal law placed on individual campaign contributions, as well as prohibitions against corporate contributions.
The FBI’s Washington Field Office investigated the case. Trial Attorneys Bill Gullotta and John Taddei of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Kimberly R. Pedersen of the Eastern District of Virginia are prosecuting the case. Former PIN trial attorney Molly Gaston provided significant assistance in the case.
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.
Texas Couple Sentenced to Combined 140 Years in Child Exploitation CaseRead the Press Release
A husband and wife from Big Spring, Texas, were sentenced today to a combined 140 years in prison for crimes against multiple children.
U.S Attorney Erin Nealy Cox of the Northern District of Texas and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division made the announcement. Homeland Security Investigations was the lead investigative agency.
Christopher James Regan, 38, a former shipping logistics manager, was sentenced to 90 years in prison after pleading guilty in October 2019 to conspiracy to produce child pornography and two counts of producing child pornography. Tanya Marie Regan, 35, was sentenced to 50 years in prison after her October 2019 guilty plea to conspiracy to produce child pornography and possession of prepubescent child pornography. The sentences, which were imposed by U.S. District Judge Mark T. Pittman of the Northern District of Texas, also included lifetime terms of supervised release for both defendants.
According to court documents, Christopher and Tanya Regan sexually abused and produced child pornography of multiple children, and they possessed and distributed child pornography to one another as well. The Regans also engaged in graphic discussions about the sexual abuse of children over several online platforms.
“These heinous crimes were conducted by sexual predators who posed a serious danger to children,” said United States Attorney Erin Nealy Cox. “I commend the swift and dedicated work of law enforcement, and am glad we were able to serve justice for the victims.”
“This is one of the most despicable cases of child exploitation and abuses of trust I have seen in my law-enforcement career,” said Ryan L. Spradlin, Special Agent in Charge of HSI Dallas. “Even the most hardened criminal would likely take exception to this kind of heinous behavior. No sentence is long enough for these two individuals, and it sends a clear message to others who sexually exploit vulnerable children: We will come after you and hold you accountable for your reprehensible actions.”
In plea papers, the pair admitted that at Christopher Regan’s direction, Tanya Regan repeatedly videotaped herself sexually abusing children for Christopher Regan’s sexual gratification.
When law enforcement seized electronics from the home, several graphic videos had been deleted, but were still stored in the recycle bin or on unalloted space on various SD cards. Undeleted videos were stored in a computer folder titled “users\tanya_000\pictures\privatevids\minor.”
HSI’s office in San Angelo, Texas, the Howard County Sheriff’s Office and the High Technology Investigative Unit within the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) investigated the case. Substantial assistance was provide by the HSI offices in Lubbock and Tyler, Texas, Tom Green County Sheriff’s Office, Texas Department of Public Safety, and the National Center for Mission and Exploited Children. Trial Attorney Kyle P. Reynolds of CEOS and Assistant U.S. Attorneys Ann Howey and Jeffrey R. Haag prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and 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.
###
Tahlequah Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Troy Gene Duchesne, age 29, of Tahlequah, Oklahoma, entered a guilty plea to Felon in Possession of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The Indictment alleged that on or about September 26, 2019, within the Eastern District of Oklahoma, the defendant, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Tahlequah Police Department and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Ben Gifford represented the United States.
South Carolina man indicted on meth chargeRead the Press Release
ELKINS, WEST VIRGINIA – Todd Michael Hensley, of Anderson, South Carolina, was indicted this week on a methamphetamine distribution charge, U.S. Attorney Bill Powell announced.
Hensley, age 47, is charged with one count of “Possession with Intent to Distribute Methamphetamine.” Hensley is accused of distributing methamphetamine in January 2020 in Marshall County.
The indictment also calls for the forfeiture of 15 firearms, including three AK47s, nearly 300 rounds of ammunition, $9,000 in cash, and an IPhone XR.
Hensley faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Sioux Falls Man Charged for Possession of Firearm by Prohibited PersonRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of possession of firearm by prohibited person was sentenced on February 14, 2020, by U.S. District Judge Karen E. Schrerer.
Peyton Michael Ledbetter, age 22, was sentenced to 87 months in federal prison, followed by 3 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Ledbetter was indicted for felon in possession of a firearm by a federal grand jury on December 4, 2018. He pled guilty on October 22, 2019.
Law enforcement stopped the vehicle in which Ledbetter was driving on September 30, 2018, in Sioux Falls. During a search of his person and vehicle, law enforcement located a Winchester brand, 9xl9 mm Luger caliber round of ammunition, a Winchester brand 9xl9mm Luger caliber cartridge case, and a TulAmmo brand .380 AUTO caliber cartridge case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of 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
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Ledbetter was immediately turned over to the custody of the U.S. Marshals Service.
Sicangu Village Man Indicted for Aggravated Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Sicangu Village, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse.
Conrad Good Voice, Jr., age 24, was indicted on February 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 19, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 4, 2018, in Todd County, South Dakota, Good Voice knowingly engaged in a sexual act with the minor victim, by the use of force.
The charge is merely an accusation and Good Voice is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Good Voice was released on bond pending trial. A trial date has not been set.
Sexual Predator Sentenced to More Than 16 Years for Possessing Depictions of Child Sex AbuseRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Richard Allan Griffin (59, Middleburg) to 16 years and 8 months in federal prison, followed by a life term of supervised release, for possessing images depicting the sexual abuse of children. The court also ordered Griffin to forfeit a cellphone and pay a $10,000 fine.
Griffin had pleaded guilty on October 29, 2019.
According to court documents, Griffin’s employer contacted law enforcement after discovering child sexual abuse materials on Griffin’s computer. The employer also turned over Griffin’s company issued cellphone to law enforcement. A forensic review of the phone revealed at least 25 images depicting children being sexually exploited, including images of children in bathing suits, underwear, and various stages of undress. It also contained images showing small children posing in a sexually suggestive manner. At least 10 of the images were classified as child pornography.
Griffin is a registered sexual predator and has four prior sex offenses involving children. In 1996, in Lee County, he was convicted of two counts of attempted capital sexual battery on a person less than 12 years of age (a first degree felony), and a lewd/lascivious act (a felony in the second degree). Griffin was also convicted of cruelty to a child in Chatham County, Georgia, for performing sexual acts upon a child under the age of 8. In 1990, Griffin was convicted of indecent exposure in Charleston County, South Carolina, after he exposed himself to a 15-year-old girl and offered to pay the child for sex. In 1992, in Chatham County, Georgia, Griffin was convicted of child molestation and loitering for sex after exposing himself to a child under the age of 14 and asking the child for sex.
“This convicted sexual predator did not learn his lesson the first time,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Now, as a result of the hard work of HSI special agents and our partners with the Clay County Sheriff’s Office Internet Crimes Against Children unit, this predator will no longer be a threat to our community.”
This case was investigated by Homeland Security Investigations and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
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.
Santa Monica Man Arrested on Federal Charges of Staging Cyber-attacks on Computer System of Congressional CandidateRead the Press Release
LOS ANGELES – FBI agents this morning arrested a Santa Monica man on federal charges stemming from a series of distributed denial-of-service – or DDoS – attacks on a website for a candidate who was campaigning for a California congressional seat.
Arthur Jan Dam, 32, was taken into custody this morning pursuant to a criminal complaint filed Wednesday that charges him with one count of intentionally damaging and attempting to damage a protected computer.
Dam allegedly staged four cyber-attacks in April and May of 2018 that took down the candidate’s website for a total of 21 hours. “The victim reported suffering losses, including website downtime, a reduction in campaign donations, and time spent by campaign staff and others conducting critical incident response,” according to the affidavit in support of the criminal complaint. The victim further reported spending $27,000 to $30,000 to respond to the attacks, and the candidate believes the attacks contributed to the loss in the primary election in June 2018.
“Law enforcement at all levels has pledged to ensure the integrity of every election,” said United States Attorney Nick Hanna. “We will not tolerate interference with computer systems associated with candidates or voting. Cases like this demonstrate our commitment to preserving our democratic system.”
“Today’s arrest shows the FBI’s commitment to hold accountable anyone who interferes with an American’s right to vote or who deprives a candidate the right to compete fairly in an election,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “As part of our mission to defend the democratic process, the FBI is equipped with the expertise to respond to allegations of election interference; whether by fraud, intimidation or – as in this case – cyber intrusions.”
The investigation outlined in the affidavit found that the cyber-attacks all originated from one Amazon Web Services (AWS) account, which Dam controlled, and the four attacks corresponded to logins into that AWS account from either Dam’s residence or his workplace. Furthermore, Dam had conducted “extensive research” on both the victim and cyber-attacks, the complaint alleges.
DDoS attacks typically are accomplished by flooding the targeted computer with superfluous requests in an attempt to overload systems and prevent some or all legitimate requests from being fulfilled. After the third cyber-attack, the victim increased cybersecurity measures and retained a website security company, but that was not enough to prevent a final disruption to the campaign’s website just one week before the primary election.
Dam was married to a woman who was employed by another candidate – and the eventual winner – in the congressional race, according to the complaint. The FBI has not uncovered any evidence that the winning candidate or Dam’s wife orchestrated or were involved in the series of cyber-attacks.
Dam was arrested this morning after surrendering to FBI agents at the United States Courthouse in downtown Los Angeles. Dam is expected to make his initial court appearance this afternoon.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If he were to be convicted of the charge of intentionally damaging and attempting to damage a protected computer, Dam would face a statutory maximum sentence of 10 years in federal prison.
The FBI investigated this case.
This matter is being prosecuted by Assistant United States Attorneys Cameron L. Schroeder and Joseph B. Woodring of the Cyber and Intellectual Property Crimes Section.
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Richard Peneaux, age 26, was indicted on February 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 19, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Peneaux was convicted of Sexual Abuse of a Minor in March of 2014. As a result of this conviction, he is required to register as a sex offender. It is alleged between December 22, 2019, and January 7, 2020, Peneaux, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Peneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Peneaux was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Raeford Men Sentenced for Drug Trafficking and Illegal Gun PossessionRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that United States District Judge Louise W. Flanagan sentenced ANTONIO DWAYNE EVANS, 33, of Raeford, NC to 158 months imprisonment followed by 4 years of supervised release.
EVANS and his brother, Sammy Durane Evans, Jr., were named in a six-count Indictment on July 18, 2018. On June 19, 2019, ANTONIO EVANS pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute 28 Grams or More of Cocaine Base (Crack), a Quantity of Cocaine, a Quantity of Marijuana, and a Quantity of Heroin; Possession With Intent to Distribute 28 Grams or More of Cocaine Base (Crack), a Quantity of Cocaine, a Quantity of Marijuana, and a Quantity of Heroin, and Aiding and Abetting; and Possession of a Firearm by a Felon.
From January 2018 to May 2, 2018, the Fayetteville Police Department and the Federal Bureau of Investigation conducted an investigation into the drug trafficking activities of brothers Sammy Durane Evans, Jr., and ANTONIO DWAYNE EVANS.
During the course of the investigation, law enforcement received information that Sammy Evans and ANTONIO EVANS regularly sold crack cocaine, cocaine, and marijuana from two parked vehicles in the driveway of a residence located on Amanda Circle in Fayetteville. It was also beloved that the Evans brothers stored their drugs and weapons in the vehicles while selling at the residence.
On May 2, 2018, physical surveillance was established on the Amanda Circle residence, where investigators observed vehicles parked in front of the residence. Surveillance verified several individuals coming and going from the residence and vehicles.
ANTONIO EVANS was seen meeting with various individuals, and going back and forth between two parked vehicles. After one transaction, officers stopped a vehicle leaving the residence and subsequently recovered marijuana. The driver admitted that the marijuana had been purchased from the residence.
Following the traffic stop, law enforcement officials executed a search warrant at the Amanda Circle residence. As officers approached the property, an individual fled the residence, but was apprehended after a brief foot chase.
Officers recovered a bag containing cocaine and marijuana in the surrounding area. The individual stated that he lived at the house, and when officers searched his room, they located 2.9 grams of cocaine, 14.7 grams of marijuana, a rifle magazine, 13 rounds of 7.62 ammunition, sandwich bags, 2 cell phones, and $4,992 in U.S. currency.
Sammy Evans and ANTONIO EVANS were then located outside the residence. Sammy Evans also attempted to run, but he was apprehended after a short foot pursuit.
Officers recovered a high capacity magazine, a loaded 9mm firearm, and 17 rounds of 9mm ammunition from Sammy Evans’s vehicle; ANTONIO EVANS possessed a key to that vehicle.
Also recovered from the Evans brothers, including from their vehicles and the immediate area, were 2 gun holsters, 49.2 grams of crack cocaine, 285.8 grams of cocaine, 6.3 grams of heroin, 100.7 grams of marijuana, 236 dosage units of opiates (2.48 grams of oxycodone), 71 dosage units of Alprazolam (a Schedule IV drug), 12.5 grams of MDMA, and a total of $2,708 in U.S. currency.
Based on the investigation, ANTONIO EVANS was held responsible for 6.3 grams of heroin, 12.5 grams of MDMA, 71 dosage units of Alprazolam (Schedule IV drug), 89.85 grams of crack cocaine, 2.48 grams of oxycodone, 1,062.98 grams of cocaine, and 101.2 grams of marijuana.
Additionally, he is a convicted felon, possessed a firearm in connection with his drug-trafficking activities, and maintained a premise for the purpose of manufacturing or distributing a controlled substance.
Previously, on April 11, 2019, Sammy Evans was sentenced to 63 months imprisonment and 5 years of supervised release for Conspiracy to Distribute and Possess with Intent to Distribute 500 Grams or More of Cocaine, 28 Grams or More of Cocaine Base (Crack), a Quantity of Marijuana, and a Quantity of Heroin and Possession with Intent to Distribute 28 Grams or More of Cocaine Base (Crack), a Quantity of Cocaine, a Quantity of Marijuana, and a Quantity of Heroin and Aiding and Abetting.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. 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. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Fayetteville Police Department and the Federal Bureau of Investigation investigated this case. Assistant United States Attorney Scott A. Lemmon prosecuted this case for the government.
Portland Man Sentenced to Prison for Filing False Federal Income Tax ReturnRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Mark Edward Staggs, 64, a resident of Portland, has been sentenced to six months in federal prison and two years’ supervised release for filing a false federal income tax return in 2011. Staggs was also ordered to pay more than $142,000 in restitution to the IRS.
According to court documents, from 2009 through 2019, Staggs owned a used office furniture business in the Portland area. During this time, he received all of his gross income from several large clients in Oregon and California, who paid him with checks. Staggs would travel from Oregon to California to cash the checks at a check cashing service in San Jose, California. His use of a false social security number prompted the check cashing service to file Currency Transaction Reports (CTRs) with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
Staggs kept the cash he received and never deposited it into his business bank account or recorded it in his business records. When the check cashing service began refusing Staggs’ checks, he enlisted two acquaintances to cash the checks on his behalf. Staggs encouraged these acquaintances to lie if anyone questioned them about his scheme. In total, between 2010 and 2013, Staggs failed to report nearly $500,000 of income, resulting in tax loss of $142,583.
On April 9, 2019, Staggs pleaded guilty to one count of filing a false federal income tax return before U.S. District Court Judge Michael H. Simon.
This case was investigated by IRS-Criminal Investigation (IRS-CI) and prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
The U.S. Attorney’s Office and IRS-CI remind Oregonians that tax day is Wednesday, April 15, 2020. For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit: https://www.irs.gov/help-resources.
Pittsburgh Felon Pleads Guilty to Drug and Gun ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of narcotics distribution and firearms possession, in violation of federal law, United States Attorney Scott W. Brady announced today.
Joseph T. Gale, Jr., age 29, pleaded guilty to three counts before United States District Judge J. Nicholas Ranjan.
In connection with the guilty plea, the court was advised that on November 5, 2018, Gale possessed a .45 caliber semi-automatic Springfield Armory pistol and .45 caliber ammunition, knowing that he had been previously convicted of a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits a felon from possessing a firearm. The court was also advised that on the same date, Gale possessed with intent to distribute a quantity of fentanyl and a quantity of cocaine.
Judge Ranjan scheduled sentencing for June 15, 2020 at 9:30 a.m. The law provides for a total sentence of not more than seventy years in prison, a fine of $4,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Drug Enforcement Administration (DEA) and the Ohio Township Police Department conducted the investigation that led to the prosecution of Gale. This case was brought as part of Project Safe Neighborhoods (PSN). 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.
Philadelphia Labor-Leasing Company Owner Sentenced to Prison for Tax FraudRead the Press Release
PHILADELPHIA – Deputy United States Attorney Louis D. Lappen announced that Charlie Kien, 45, of King of Prussia, PA, was sentenced to six months’ imprisonment, three years’ supervised release, and ordered to pay a $10,000 fine by United States District Court Judge Mark A. Kearney for multiple charges of tax fraud.
The defendant pleaded guilty in October 2019 to charges of failing to pay employment taxes and filing false tax returns in connection with the operation of his former Philadelphia-based labor leasing company, CK’s Business Services. The company had contracts to provide temporary employees to two local businesses: a flag manufacturer and military bandage manufacturer. In preparing and filing IRS Form 941 for both of these contracts, Kien failed to account for the correct number of the company’s employees and wages paid, and also failed to file IRS Form W-2 for the unclaimed employees.
Further, the defendant paid many of his employees in cash – failing to collect and pay employment taxes to the IRS. For the tax years 2010 through 2012, the total amount of lost employment tax (employer and employee) was approximately $565,872. Kien also filed false personal income tax returns: for tax years 2010 through 2012, he failed to pay approximately $474,059 in taxes.
“Knowingly falsifying documents to avoid reporting income to the IRS is a crime,” said Deputy U.S. Attorney Lappen. “Dishonest business owners like the defendant use a variety of methods to cheat the government and all honest taxpayers. Our Office will continue to work with our federal partners to hold accountable those who commit tax fraud.”
The case was investigated by the Internal Revenue Service, Criminal Investigations Service, and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
Paterson Man Indicted for Sale of Narcotics that Resulted in Overdose DeathRead the Press Release
NEWARK, N.J. – A federal grand jury has indicted a Paterson, New Jersey, man for distributing a quantity of heroin and fentanyl that led to the overdose death of a New Jersey resident, U.S. Attorney Craig Carpenito announced.
Wyzier Peterson, 22, was also charged with two additional sales of heroin and fentanyl, as well as with conspiring to distribute at least 40 grams of fentanyl and at least 100 grams of heroin. The defendant was previously charged by complaint.
According to documents filed in this case and statements made in court:
Peterson and his conspirators are all members and associates of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement officers determined that from September 2018 through July 3, 2019, Peterson and his conspirators conspired to distribute narcotics, to include heroin and fentanyl.
The count of conspiracy to distribute at least 100 grams of heroin and 40 grams of fentanyl carries a maximum penalty of 40 years in prison and a fine of at least $5 million. The counts of distribution of heroin and fentanyl carry a maximum of 20 years in prison and a fine of $1 million. The count of distribution of heroin and fentanyl, which led to the death of another person, carries a maximum of life imprisonment.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; officers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Police Director Jerry Speziale; officers of the Jefferson Township Police Department, under the direction of Chief Sean Conrad; detectives of the Passaic County Prosecutor’s Office, under the direction of Camelia M. Valdes; and detectives of the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric Knapp; with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the U.S. Attorney’s Office’s OCDETF/Narcotics Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.