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Wednesday 19 February 2020
Turlock Drug Dealers Sentenced to Prison for Methamphetamine DistributionRead the Press Release
FRESNO, Calif. — Turlock residents Joseph Wayne Attaway, 33, and Edmond Hormozi, 51, were sentenced today by U.S. District Judge Dale A. Drozd for methamphetamine trafficking, U.S. Attorney McGregor W. Scott announced.
Attaway was sentenced to 17 years in prison and Hormozi was sentenced to 10 and a half years in prison. On Oct. 31, 2019, a federal jury found Attaway and Hormozi guilty of one count of conspiracy to distribute and possess with intent to distribute methamphetamine and two counts of distribution of methamphetamine.
According to evidence presented at trial, Attaway and Hormozi were a source of methamphetamine supply for co-defendant Kasper Kasperian, 52, of Modesto, California. A confidential source working with the FBI purchased approximately 4 pounds of methamphetamine from Kasperian on two occasions. Agents saw Attaway and Hormozi meet with Kasperian immediately before and after each drug deal. Recorded meetings and intercepted communications revealed that Attaway and Hormozi would deliver several pounds of methamphetamine to Kasperian, and after Kasperian sold the drugs to the confidential source, Attaway and Hormozi would immediately collect the money from Kasperian.
Kasperian pleaded guilty and is scheduled to be sentenced on May 5.
This case is the product of an investigation by the Federal Bureau of Investigation, the Central Valley Gang Impact Team (CVGIT), the Modesto Police Department, the Turlock Police Department, the California Highway Patrol, the Stanislaus County Sheriff’s Office, and Stanislaus County Probation. Assistant U.S. Attorneys Melanie L. Alsworth and Geoffrey D. Wilson are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Troy Felon Admits Possessing a Loaded Firearm in Furtherance of Drug TraffickingRead the Press Release
ALBANY, NEW YORK – Dyshawn Fisher, age 25, of Troy, New York, pled guilty today to possessing and intending to distribute marijuana, possessing a firearm as a felon, and possessing a firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Fisher, who has a prior felony conviction for attempted burglary, admitted that on June 5, 2018, while distributing marijuana out of a residence in Troy, he fired multiple shots down the street in order to protect his marijuana distribution operation. Fisher further admitted to possessing the marijuana that was recovered from inside the residence, and that he intended to sell that marijuana.
Fisher faces at least 5 years and up to life in prison, a fine of up to $250,000, and a term of post-release supervision of up to 5 years, when he is sentenced by Senior United States District Judge Gary L. Sharpe on June 18, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Texas Businessman Sentenced to 70 Months in Prison for Role in Venezuela Bribery Scheme and Obstruction of JusticeRead the Press Release
A former procurement officer of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), was sentenced to 70 months in prison followed by three years of supervised release today for laundering the proceeds of a corrupt scheme to secure contracts from PDVSA through bribery, underreporting income on his tax return and obstructing the government’s investigation into bribes paid by the owner of U.S.-based companies to Venezuelan government officials in exchange for securing additional business with Citgo Petroleum Corporation, a Houston-based PDVSA subsidiary.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.
Alfonzo Eliezer Gravina Munoz (Gravina), 57, of Katy, Texas, was sentenced by U.S. District Judge Gray H. Miller of the Southern District of Texas. Judge Miller also ordered Gravina to pay restitution to the IRS in the amount of $214,849.21. Judge Miller previously entered a final order of forfeiture on May 17, 2017, after Gravina forfeited $590,446 in connection with this case. Gravina pleaded guilty on Dec. 10, 2015, to one count of conspiracy to commit money laundering and one count of making false statements in connection with a tax return. Based on his actions after entry of his guilty plea in 2015, Gravina was indicted on Nov. 15, 2018, on one count of conspiracy to obstruct an official proceeding, to which he pleaded guilty on Dec. 10, 2018.
According to admissions made in connection with Gravina’s December 2015 plea, Gravina accepted bribes from U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) while employed as a purchasing manager at PDVSA. This ensured that Shiera’s and Rincon’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. Gravina admitted that he accepted over $590,000 in bribes from 2007 to 2014. In order to conceal the corrupt payments, Rincon and Shiera transferred funds to Gravina from accounts they controlled outside of the United States to accounts in the names of Gravina’s associates and relatives. Gravina admitted that he did not report the bribe payments he received from Rincon, Shiera and others as income on his 2010 tax return, thus underreporting his income. Rincon and Shiera have also pleaded guilty and await sentencing.
After his plea in December 2015, Gravina met periodically with HSI agents to provide information regarding corruption at PDVSA. Gravina admitted that, during interviews with the government, he concealed facts about bribe payments to officials at Citgo Petroleum Corporation and, at the same time, he provided details about the government’s investigation to a subject of the investigation, including about the topics discussed during Gravina’s meetings with the government. This passing of information led to the destruction of evidence and to the subject’s attempt to flee the United States in July 2018.
Gravina is the seventh defendant to be sentenced by Judge Miller as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Including Gravina, Rincon and Shiera, to date, the Justice Department has announced charges against 26 individuals, 20 of whom have pleaded guilty in connection with the investigation.
HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and IRS Criminal Investigation. Trial Attorneys Jeremy R. Sanders, Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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 Haskell Doak Willis, age 65, 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 August 26, 2019, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said 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 Bureau of Alcohol, Tobacco, Firearms and Explosives.
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 Shannon Henson represented the United States.
Thirty Indicted for Drug TraffickingRead the Press Release
DENVER – United States Attorney Jason R. Dunn, along with federal, state, and local partners, today announced that 30 defendants were indicted in two federal grand jury indictments for trafficking drugs, including methamphetamine, cocaine, heroin, and fentanyl. Of the 30 defendants indicted, 24 have been arrested and one is in state custody on a separate charge. Four others are in Mexico and one is at large in the United States. The FBI, Homeland Security Investigations, Immigrations and Customs Enforcement, Internal Revenue Service—Criminal Investigation, the Drug Enforcement Administration, the Douglas County Sheriff and the Aurora Police Department all joined in the announcement.
According to the indictments and other court documents, following an investigation that began in late 2018, agents seized approximately 400 pounds of methamphetamine, 5 pounds of heroin, 4 pounds of cocaine, and 15,000 fentanyl pills, which were disguised to look like prescription oxycodone.
The arrests included more than two dozen suspected members of a Mexican drug trafficking organization based in Denver, including one, Candelaria Vallejo-Gallo, who is being charged with operating a Continuing Criminal Enterprise (CCE), otherwise known as being charged as a Drug Kingpin. To be considered a Drug Kingpin, the individual has to violate the Controlled Substances Act as part of a series of related or ongoing violations. Additionally, the defendant must be an organizer, supervisor, or manager of at least five other persons connected in the same activity, and obtain substantial income or resources from the series of violations. If convicted of being a Drug Kingpin, Vallejo-Gallo faces not less than 20 years, and up to life in federal prison. Vallejo-Gallo is a Mexican national.
In addition to the drug trafficking charges, at least one defendant is charged with carrying a firearm in furtherance of the drug conspiracy.
“This is a very significant operation that took a massive amount of drugs and a large number of drug traffickers off our streets,” said United States Attorney Jason R. Dunn. “I want to commend the work of the FBI for their outstanding investigation, as well as for their tactical operation last week in apprehending this large number of defendants without incident. I also want to thank the other law enforcement agencies that participated in this operation and the arrests. Colorado’s law enforcement community is second to none in terms of our ability to work collaboratively to ensure that criminals are apprehended and that the best interests of the public are always our controlling objective.”
“The combined efforts of the FBI, Drug Enforcement Administration, Homeland Security Investigations, Immigration and Customs Enforcement, Internal Revenue Service, Douglas County Sheriff’s Office, Colorado State Patrol, Aurora PD, and a multitude of other law enforcement agencies resulted in the FBI OCDETF Strike Force Group taking a significant drug trafficking organization off the streets of Denver and Aurora,” said FBI Denver Special Agent in Charge Dean Phillips. “Thanks to these partnerships, our community and children are safer.”
"This indictment reflects the hard work of our special agents and law enforcement partners who worked diligently over the last year to investigate the Vallejo Drug Trafficking Organization and bring them to justice,” said Assistant Special Agent in Charge, Homeland Security Investigations, Denver, Stephanie Lord Eisert. “Homeland Security Investigations remains committed to targeting the flow of money which fuels transnational organized crime, and we will continue to aggressively pursue those that enable the flow of deadly narcotics into our communities."
“IRS-CI has and will continue to investigate drug traffickers by pursuing sophisticated, high profile, income tax, currency-related, and money laundering charges against these criminals,” said Acting Special Agent in Charge, Amanda Prestegard.
This investigation was handled by the FBI, the DEA, Homeland Security Investigations (HSI), Internal Revenue Service—Criminal Investigation, U.S. Immigration and Customs Enforcement, the Douglas County Sheriff, the Colorado State Patrol, and the Aurora Police Department.
The defendants are being prosecuted by Assistant U.S. Attorneys Cyrus Chung and Zachary Phillips.
The charges contained in the indictments are allegations and the defendants are presumed innocent unless or until proven guilty.
CASE NUMBERS: 20-cr-0028 and 20-cr-0025
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Steubenville man admits to drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Rashaan Donell Mukes, of Steubenville, Ohio, has admitted to his role in a cocaine, crack cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Mukes, age 34, pled guilty to one count of “Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base, Heroin, and Fentanyl.” Mukes admitted to working with others to distribute cocaine, crack cocaine, heroin and fentanyl in Hancock County and elsewhere from February 2018 to August 2019.Mukes 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. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James P. Mazzone presided.
State College Man Sentenced in West End Drug CaseRead the Press Release
PITTSBURGH - A resident of State College, PA, has been sentenced in federal court to time-served on his conviction for conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today. The defendant had been detained pretrial on this charge since June of 2018.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Charles Jones, 27, who has been incarcerated since June 20, 2018.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Charles Jones and his co-conspirators conspired to distribute quantities of heroin.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration along with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department for the investigation leading to the successful prosecution of Jones.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Schertz Man Indicted for Kidnapping, Child ExploitationRead the Press Release
In San Antonio, a 34-year-old Schertz, TX, resident waived his arraignment, thus pleading not guilty to charge involving kidnapping and child exploitation, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Yesterday, Kraig David Van Winkle filed a waiver of arraignment with the Court. In response, the Court filed an automatic plea of not guilty on behalf of the defendant to charges contained in a federal grand jury indictment returned on February 5, 2020, namely one count of transportation of a minor with intent to engage in criminal sexual activity and one count of interstate kidnapping of a minor.
According to court documents filed in this case, two weeks after meeting a 13-year-old child online, Van Winkle allegedly left Schertz on January 8, 2020, and traveled out of state to meet the child. He then kidnapped and transported the child back to his residence in Schertz with the intent of engaging in sexual activity. After the child was reported missing, tips from the public lead authorities to Van Winkle.
FBI personnel arrested Van Winkle at his residence on January 11, 2020, and rescued the child victim.
Upon conviction, Van Winkle faces up to 20 years in federal prison for the kidnapping charge and a minimum of ten years to life imprisonment for the transportation with intent to engage in sexual activity charge. Van Winkle remains in federal custody.
The San Antonio FBI Child Exploitation and Human Trafficking Task Force, which includes the San Antonio Police Department and the Bexar County Sheriff’s Office, investigated this case with assistance from FBI Little Rock and the Springdale Police Department in Springdale, Arkansas. Assistant U.S. Attorney Tracy Thompson is prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Saugus Woman Indicted for Wire Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A Saugus woman was indicted yesterday in connection with a scheme to defraud her elderly uncle of his life’s savings.
Jayne Carbone, 52, was indicted on four counts of wire fraud and four counts of aggravated identity theft. Carbone was arrested in December 2019.
According to the indictment, between approximately January 2017 and September 2018, Carbone stole over $400,000 from her elderly uncle, whose personal finances she managed. It is alleged that she fraudulently withdrew funds from his brokerage account and transferred funds from his personal checking account to bank accounts held by Carbone and members of her immediate family for personal use. To further and conceal the scheme, Carbone allegedly provided her uncle with falsified statements for his accounts reflecting inflated balances.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of aggravated identity theft carries a mandatory sentence of two years in prison to be consecutive to any other sentence imposed, up to one year of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Leslie A. Wright of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
San Gabriel Valley Man Agrees to Plead Guilty to Conspiracy and Tax Evasion Charges in $147 Million Mining and Digital Currency FraudRead the Press Release
LOS ANGELES – A Bradbury man has agreed to plead guilty to federal criminal charges that he falsely promised profits to more than 70,000 victim investors worldwide in a scheme where a multinational company issued a sham digital currency purportedly asset-backed by billions of dollars’ worth of amber and other precious gemstones.
Steve Chen, 62, a.k.a. “Li Chen” and “Boss,” agreed to plead guilty to one count of conspiracy to commit wire fraud and one count of tax evasion. The criminal information and plea agreement in this case was filed late Tuesday in United States District Court, and Chen is scheduled to make his first court appearance in this case on March 10.
According to his plea agreement, Chen was the owner and chief executive officer of U.S. Fine Investment Arts, Inc. (USFIA), and six other companies that used the same Arcadia address. From July 2013 until September 2015, Chen fraudulently promoted and solicited USFIA investments, and he ultimately obtained approximately $147 million from victim-investors.
Chen admitted in his plea agreement that he falsely promoted USFIA as a successful multi-level marketing company that extracted amber and other gemstones from non-existent mines it “owned” in the United States, the Dominican Republic, Argentina and Mexico. Investors were duped into buying USFIA investments in amounts ranging between $1,000 and $30,000 each, court documents state. These “packages” purportedly were comprised of amber and other gemstones, as well USFIA “points,” which could be converted to USFIA shares when the company had its IPO in the near future. Chen admitted that he never intended for USFIA to have an IPO.
USFIA also offered other bonuses – including cash, travel, luxury cars, homes in the Los Angeles area, and EB-5 visas for immigrant investors – to investors who recruited other people to purchase these “packages,” Chen admitted.
Beginning in September 2014, Chen and others altered the promotion by substituting quantities of “Gem Coins” instead of points. They falsely promoted these “coins” as a legitimate digital currency backed by the company’s gemstone holdings. Chen also falsely represented that these “coins” already were in wide circulation in the jewelry and finance industries.
Chen also admitted that the company did not generate any significant revenue from its business operations, apart from sales of investment packages to victim-investors. The amber and other gemstones provided in the investment packages – including those displayed at USFIA’s Arcadia headquarters – were obtained from domestic and foreign commercial suppliers, assigned grossly inflated prices, and worth much less than what investors paid USFIA for them. Chen admitted that “Gem Coins” had no circulation in any industry, were not accepted by any merchants, and had no economic value.
“Mr. Chen’s promises to investors were as worthless as his non-existent mines and phony digital currency,” said United States Attorney Nick Hanna. “This case should remind all investors that trappings of success may convey legitimacy, but everyone should exercise extreme care when considering giving hard-earned money to any outfit promoting trendy products and extravagant profits.”
“Mr. Chen lured victim investors around the globe by creating a mirage made of fashionable cryptocurrency features and dynamic marketing tactics,” said Paul Delacourt, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The investing public should be aware that cryptocurrency schemes are more prevalent and more sophisticated than ever, but those who perpetrate them use the same tactics as con-artists always have - by convincing investors to risk their money in the bank based on false promises of imminent wealth.”
Chen also admitted to attempting to evade payment of federal income taxes. He reported gross income for 2014 was $138,015, when in fact his income for that year was approximately $4,816,193, upon which Chen owed $1,885,094 – before interest and penalties.
Once he pleads guilty, Chen will face a statutory maximum sentence of 10 years in federal prison.
“Steven Chen defrauded thousands of victims in order to fund his extravagant lifestyle. Chen funneled $4,816,193 of his ill-gotten gains to purchase homes and fund his gambling habit. Chen's criminal activity did not stop with stealing from his victims. Chen also defrauded the government of $1,885,094 in taxes. IRS-CI used its financial investigative expertise and critical law enforcement partnerships to untangle the web created by Chen and bring him to justice,” said Ryan L. Korner, Special Agent in Charge.
Leonard Stacy Johnson, 53, of Huntington Beach, who worked at Chen’s direction in promoting USFIA and Gem Coins, pleaded guilty in July 2019 to one count of tax evasion and one count of making a false statement on an immigration document. Johnson is scheduled to be sentenced on June 22.
The Securities and Exchange Commission successfully brought an enforcement action against Chen, USFIA, and 12 other Chen-controlled entities. A receiver has been appointed by a court in that matter, and maintains a website for victims at: http://usfiareceiver.com/
This matter was investigated by the FBI, IRS-Criminal Investigation, and Homeland Security Investigations.
This case is being prosecuted by Assistant United States Attorneys Richard E. Robinson and Katherine A. Rykken of the Major Frauds Section.
Sallisaw Woman Pleads Guilty to Misprision of A FelonyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Judith Gay Jackson, age 70, of Sallisaw, Oklahoma, entered a guilty plea to Misprision of a Felony, in violation of Title 18, United States Code, Section 4, punishable by not more than 3 years imprisonment, a fine up to $250,000.00 or both.
The Information alleged that between on or about October 9, 2018 and January 7, 2019, in the Eastern District of Oklahoma, the defendant, having knowledge of the actual commission of a felony cognizable by a court of the United States, did conceal the same by destroying a packet of counterfeit United States Federal Reserve Notes, and did not as soon as possible make known the same to some judge or other person in civil or military authority under the United States.
The charges arose from an investigation by the Sallisaw Police Department and the United States Secret Service.
The Honorable Kimberly E. West, 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 Clay Compton represented the United States.
Rochester Felon Pleads Guilty to Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert E. Tillard, 35, of Rochester, NY, pleaded guilty to being a felon in possession of a firearm, and to possessing marijuana with intent to distribute it, before Chief U.S. District Judge Frank P. Geraci, Jr. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that on February 25, 2017, Rochester Police officers, having observed a traffic violation, attempted to pull over the car Tillard was driving. The defendant eventually stopped the car on Flint Street, where he exited the car and ran. As Tillard ran from the police, he threw a 9mm handgun to the ground. Upon apprehending Tillard, the officers also discovered approximately 56 small plastic baggies of marijuana in his pocket.
In 2008, Tillard was convicted of a drug charge in Monroe County Court. As a result, he is legally prohibited from possessing a firearm.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary.
Sentencing is scheduled for May 26, 2020, at 3:00 p.m. before Chief Judge Geraci.
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Ring leader of racketeering and money laundering conspiracy sentenced to 108 months in federal prisonRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, Saul Rodriguez-Soto, 39, Indianapolis, was sentenced to 108 months in federal prison, by U.S. District Judge James R. Sweeney, in the federal courthouse in Indianapolis, for charges of racketeering and money laundering.
“Bulls Auto Enterprise was a criminal organization whose leader used his business as a sanctuary to perpetrate an elaborate and interrelated scheme to launder money and affect interstate commerce,” said Minkler. “Our message to other businesses whose model is to operate and profit from the illegal drug trade is simple. We stand ready to enforce federal laws to shut your business down and move you to the Federal Bureau of Prisons.”
Saul Rodriguez-Soto operated SR Bulls Auto Sales LLC located at 2302 E. Washington Street, Indianapolis, Indiana; Bulls Auto Sales II Inc. located at 3919 W. Washington Street, Indianapolis, Indiana; and Chicago Auto Sales LLC located at 2233 E. Washington Street, Indianapolis, Indiana. Rodriguez-Soto, SR Bulls Auto Sales LLC, Bulls Auto Sales II Inc. and Chicago Auto Sales LLC were members and associates of the Bulls Auto Enterprise, a criminal organization whose members and associates engaged in money laundering and other criminal violations.
The objectives of Rodriguez-Soto and the Bulls Auto Enterprise included funding the business through, among other things, money laundering, attempted currency reporting violations, and currency reporting violations for financial gain. Rodriguez-Soto and the Bulls Auto Enterprise engaged in financial transactions with the proceeds of illegal drug trafficking. Specifically, drug traffickers would purchase vehicles from the Bulls Auto Enterprise using drug proceeds. Rodriguez-Soto concealed the ownership of those vehicles by titling the vehicles in another individual’s name and avoid the currency reporting requirements.
Rodriguez-Soto was the organizer and manager of the Bulls Auto Enterprise. Toward that end, he taught others in the enterprise to knowingly avoid the currency reporting requirements and to falsify the car sales paperwork on cars knowingly sold to drug traffickers, so as to conceal the actual purchaser of the car and to inaccurately reflect that there were liens on the cars sold to drug traffickers.
Others involved in the Bulls Auto Enterprise have already been sentenced or are a wanted fugitive.
- Alejandro Rodriguez Soto sentenced June 7th, 2019 to five months’ imprisonment and three years’ supervised release.
- Abel Rodriguez sentenced September 13th, 2019 to 18 months’ imprisonment and three years’ supervised release.
- Jasmin Kay Pottorff sentenced October 4th, 2018 to time served and three years’ supervised release.
- Octavio Mojica Gutierrez sentenced August 9th, 2019 to 92 months’ imprisonment and three years’ supervised release.
- Juan Rodriguez is a wanted fugitive.
This case was the result of an investigation by the Internal Revenue Service, Indianapolis Metropolitan Police Department, Indiana State Police, Homeland Security Investigations and the Federal Bureau of Investigation.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the distribution of their illegal drugs,” said Kathy Enstrom, IRS-CI Special Agent in Charge, Chicago Field Office. “Today’s sentencing reinforces that IRS Criminal Investigation is dedicated to finding individuals who are involved in these laundering schemes and holding them responsible. We would like to thank the United States Attorney’s Office and our law enforcement partners at Indianapolis Metropolitan Police Department, Indiana State Police, Homeland Security Investigations, and the Federal Bureau of Investigation for their hard work and cooperation in this investigation.”
“To disrupt the sale of illegal drugs, that often is the impetus for violence, the Indianapolis Metropolitan Police Department and our law enforcement partners will continue to use focused law enforcement strategies to identify and hold accountable those contributing to these types of criminal enterprises,” said Chief Randal Taylor. “Special thank you to IMPD's investigators and investigators from the Internal Revenue Service, Indiana State Police, Homeland Security Investigations, and the Federal Bureau of Investigations who worked tirelessly on the successful completion of this case.”
“I am extremely proud of the work our investigators conducted in collaboration with their colleagues from the FBI, IRS, Homeland Security Investigations and the Indianapolis Metropolitan Police Department,” said Indiana State Police Superintendent Doug Carter. “The results of this case re-iterate our continued commitment to suppress this type of criminal activity and ultimately hold those who perpetrate these crimes accountable for their actions.”
“With the sentencing of the leader of this group the message is loud and clear – if your business includes enabling drug traffickers to move their product and laundering their dirty money - the FBI and our law enforcement partners will aggressively work to identify you and ensure you pay the price for your fraudulent schemes,” said Special Agent in Charge Grant Mendenhall, FBI Indianapolis.
According to Assistant United States Attorney Michelle Brady, who prosecuted this case for the government, Rodriguez-Soto will serve 108 months imprisonment and three years of supervised release following his sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s commitment to prosecute organizations and individuals distributing cocaine, marijuana, and other controlled substances. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.3.
Pennsylvania Nursing Home Chain to Pay $15.5 Million to Settle False Claims Act Allegations of Inappropriate TherapyRead the Press Release
PITTSBURGH – United States Attorney Scott W. Brady announced today that Guardian Elder Care Holdings, Inc. and its related companies will pay $15,466,278 to settle claims that the skilled nursing home chain provided medically unnecessary rehabilitation therapy to residents in order to meet revenue goals, instead of clinical needs. Guardian Elder Care, headquartered in Brockway, operates more than 50 facilities throughout Pennsylvania—including locations in Allegheny, Beaver, Clearfield, Fayette, Indiana, Jefferson, McKean and Westmoreland counties— as well as Ohio and West Virginia.
The settlement resolves allegations in a whistleblower complaint filed in federal court in the Eastern District of Pennsylvania under the qui tam provisions of the False Claims Act. These provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The whistleblowers, Philippa Krauss and Julie White, will share approximately $2.8 million of the recovery between them. Guardian Elder Care formerly employed both of these whistleblowers.
The whistleblowers generally alleged that Guardian Elder Care pressured its rehabilitation therapists to provide services to meet financial targets and maximize revenue without regard to clinical need. For example, they alleged that certain patients suffered from dementia and did not need or want rehabilitation therapy, but Guardian Elder Care allegedly pressured therapists to provide those services anyway to meet revenue goals.
Other patients were allegedly dying and receiving hospice care—and therefore had no medical need for intensive therapy—but Guardian Elder Care allegedly pressured therapists to treat those patients, as well, in order to meet the same financial goals. Today’s announced settlement agreement resolves the allegations arising from Guardian Elder Care’s facilities management practices from January 2011 through December 2017.
Additionally, while the government was investigating these allegations, Guardian Elder Care voluntarily disclosed that it had employed two people who were excluded from federal healthcare programs. The settlement therefore encompasses claims that Guardian Elder Care inappropriately received payment for services provided through these excluded persons during their term of exclusion. The public can search the government’s database of excluded providers at the website: https://exclusions.oig.hhs.gov/.
"Billing federal healthcare programs for medically unnecessary rehabilitation services not only depletes these programs’ funds but also exploits our most vulnerable citizens," said United States Attorney Brady. "Our office will continue to aggressively pursue providers who take advantage of our seniors by putting financial gain ahead of patient care."
"Too much rehabilitation therapy can actually harm patients, just like giving them too many pills or too much medicine," said United States Attorney William M. McSwain of the Eastern District of Pennsylvania. "And of course it harms taxpayers who foot the bill for unnecessary treatment. We thank Ms. Krauss and Ms. White for their role in bringing this alleged scheme to light. We also commend Guardian Elder Care for telling us about its employment of the excluded providers. It is in their best interest for companies to make voluntary disclosures and emphasize compliance going forward, as my Office will take this sort of cooperation into consideration when determining an appropriate resolution."
“Seniors rely on the Medicare program to provide them with appropriate care, and to ensure that they are treated with dignity and respect,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department will not tolerate nursing home operators that put their own economic gain ahead of the needs of their residents, and will continue to hold accountable those operators who bill Medicare for unnecessary rehabilitation services.”
"Protecting our beneficiaries from unnecessary services is a priority and we will not tolerate companies putting financial gain ahead of quality of care," said Maureen R. Dixon, Special Agent in Charge, Office of the Inspector General-U.S. Department of Health and Human Services (HHS-OIG). "HHS-OIG will continue to work with our partners at the Department of Justice and OPM-OIG to root out fraud, waste and abuse in the Medicare and Medicaid programs."
OPM OIG Deputy Assistant Inspector General for Investigations Thomas W. South, Deputy Assistant Inspector General for Investigations said, "Subjecting vulnerable patients to unnecessary treatments for financial gain is unconscionable. First and foremost, OPM OIG prioritizes protecting Federal employees and their dependents from patient harm. I am proud that we were able to work with our law enforcement partners to hold Guardian Elder Care accountable for their unscrupulous behavior."
In addition to the nearly $15.5 million payment, Guardian agreed to enter into a chain-wide Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General. Such agreements promote compliance and protect vulnerable nursing home residents.
Assistant United States Attorney Rachael L. Mamula handled this case in the Western District of Pennsylvania working jointly with Assistant United States Attorneys Michael S. Macko and Scott W. Reid in the Eastern District of Pennsylvania and Susan Lynch, Senior Counsel for Elder Justice, of the Civil Fraud Section of the Department of Justice, and with investigative assistance from auditor Dawn Wiggins. The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, and the U.S. Office of Personnel Management Office of Inspector General.
This case was supported by the Department of Justice’s Elder Justice and Nursing Home Initiative, which coordinates the Department’s activities combatting elder abuse, neglect, and financial exploitation, especially as they affect beneficiaries of Medicare, Medicaid, and other federal health care programs. For more information about the Department’s Elder Justice Initiative, see https://www.justice.gov/elderjustice/.
The case is docketed as United States ex rel. Krauss, et al. v. Guardian Elder Care Holdings, Inc., et al., Civil Action No. 3:15-cv-6850 (E.D. Pa.). There has been no determination of civil liability. The settled civil claims are allegations only.
Pennsylvania Nursing Home Chain to Pay $15.5 Million to Settle False Claims Act Allegations of Inappropriate TherapyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Guardian Elder Care Holdings, Inc., and its related companies will pay $15,466,278 to settle claims that the skilled nursing home chain provided medically unnecessary rehabilitation therapy to residents in order to meet revenue goals, instead of clinical needs. Guardian Elder Care operates more than fifty facilities throughout Pennsylvania—including locations in the Lehigh Valley, the Poconos, and Bucks County—as well as in Ohio and West Virginia.
The settlement resolves allegations in a whistleblower complaint filed in federal court in the Eastern District of Pennsylvania under the qui tam provisions of the False Claims Act. These provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The whistleblowers, Philippa Krauss and Julie White, will share approximately $2.8 million of the recovery between them. Guardian Elder Care formerly employed both of these whistleblowers.
The whistleblowers generally alleged that Guardian Elder Care pressured its rehabilitation therapists to provide services to meet financial targets and maximize revenue, without regard to clinical need. For example, they alleged that certain patients suffered from dementia and did not need or want rehabilitation therapy, but Guardian Elder Care allegedly pressured therapists to provide those services anyway to meet revenue goals.
Other patients were allegedly dying and receiving hospice care—and therefore had no medical need for intensive therapy—but Guardian Elder Care allegedly pressured therapists to treat those patients, as well, in order to meet the same financial goals. Today’s announced settlement agreement resolves the allegations arising from Guardian Elder Care’s facilities management practices from January 2011 through December 2017.
Additionally, while the government was investigating these allegations, Guardian Elder Care voluntarily disclosed that it had employed two people who were excluded from federal healthcare programs. The settlement therefore encompasses claims that Guardian Elder Care inappropriately received payment for services provided through these excluded persons during their term of exclusion. The public can search the government’s database of excluded providers on the website: http://exclusions.oig.hhs.gov/.
“Too much rehabilitation therapy can actually harm patients, just like giving them too many pills or too much medicine,” said U.S. Attorney McSwain. “And of course it harms taxpayers who foot the bill for unnecessary treatment. We thank Ms. Krauss and Ms. White for their role in bringing this alleged scheme to light. We also commend Guardian Elder Care for telling us about its employment of the excluded providers. It is in their best interest for companies to make voluntary disclosures and emphasize compliance going forward, as my Office will take this sort of cooperation into consideration when determining an appropriate resolution.”
“Seniors rely on the Medicare program to provide them with appropriate care, and to ensure that they are treated with dignity and respect,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department will not tolerate nursing home operators that put their own economic gain ahead of the needs of their residents, and will continue to hold accountable those operators who bill Medicare for unnecessary rehabilitation services.”
“Billing federal healthcare programs for medically unnecessary rehabilitation services not only depletes these programs’ funds but also exploits our most vulnerable citizens,” said U.S. Attorney Scott W. Brady of the Western District of Pennsylvania. “Our office will continue to aggressively pursue providers who take advantage of our seniors by putting financial gain ahead of patient care.”
“Protecting our beneficiaries from unnecessary services is a priority and we will not tolerate companies putting financial gain ahead of quality of care,” said Maureen R. Dixon, Special Agent in Charge, Office of the Inspector General-U.S. Department of Health and Human Services (HHS-OIG). “HHS-OIG will continue to work with our partners at the Department of Justice and OPM-OIG to root out fraud, waste and abuse in the Medicare and Medicaid programs.”
OPM OIG Deputy Assistant Inspector General for Investigations Thomas W. South, Deputy Assistant Inspector General for Investigations said: “Subjecting vulnerable patients to unnecessary treatments for financial gain is unconscionable. First and foremost, OPM OIG prioritizes protecting Federal employees and their dependents from patient harm. I am proud that we were able to work with our law enforcement partners to hold Guardian Elder Care accountable for their unscrupulous behavior.”
In addition to the nearly $15.5 million payment, Guardian agreed to enter into a chain-wide Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General. Such agreements promote compliance and protect vulnerable nursing home residents.
Assistant United States Attorneys Michael S. Macko and Scott W. Reid handled the case in the Eastern District of Pennsylvania, with assistance from auditor Dawn Wiggins, and worked jointly with Assistant U.S. Attorney Rachael L. Mamula of the Western District of Pennsylvania and Susan Lynch, Senior Counsel for Elder Justice, of the Civil Fraud Section of the Department of Justice. The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, and the U.S. Office of Personnel Management Office of Inspector General.
This case was supported by the Department of Justice’s Elder Justice and Nursing Home Initiative, which coordinates the Department’s activities combatting elder abuse, neglect, and financial exploitation, especially as they affect beneficiaries of Medicare, Medicaid, and other federal health care programs. The case was also a product of the Elder Justice Task Force of the United States Attorney’s Office for the Eastern District of Pennsylvania that launched four years ago. For more information about the Department’s Elder Justice Initiative and the Elder Justice Task Force, see https://www.justice.gov/elderjustice/.
The case is docketed as United States ex rel. Krauss v. Guardian Elder Care Holdings, Inc., et al., Civil Action No. 3:15-cv-6850 (E.D. Pa.). There has been no determination of civil liability. The settled civil claims are allegations only.
Paving Company Owner Charged with Tax FraudRead the Press Release
BOSTON – The owner of a Chelmsford paving company was charged today with a payroll tax scheme resulting in a $300,000 tax loss.
Robert W. Joyce, 59, of Carlisle, was charged with one count of willful failure to collect and pay over taxes. A plea hearing has not yet been scheduled.
It is alleged that for tax years 2012 through at least 2014, Joyce paid a portion of the wages to employees of his two companies, Allied Paving and Allied Equipment, “under the table.” He did so by paying them from his own personal bank account, rather than through the business accounts. In doing so, Joyce did not collect, account for, or pay the IRS the income withholding and FICA taxes that he, as the employer, was required to. Joyce also allegedly caused Allied Paving and Allied Equipment to file false returns with the IRS which underreported the actual wages he paid his employees, as well as the employment taxes due to the IRS. In total, Joyce caused a loss to the IRS of at least $331,060.
The charging statute provides for a sentence of up to five 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 and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Sandra S. Bower and Sara Miron Bloom of Lelling’s Criminal Division are prosecuting the case.
Newberry Gang Member Detained on Federal Gun ChargeRead the Press Release
Greenville, South Carolina --- Acting United States Attorney A. Lance Crick announced today that Zachary Shakur Stephens, age 26, of Newberry, was arrested for being a felon in possession of a firearm and ammunition and has been detained following a hearing in federal court in Greenville.
The United States Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) secured a federal arrest warrant pursuant to a criminal complaint alleging Stephens had unlawfully possessed a firearm and ammunition. ATF, with the assistance of the Newberry County Sheriff’s Office and the South Carolina Law Enforcement Division, arrested Stephens the same day. He appeared in court for a preliminary hearing and to address the issue of bond. Stephens was ordered detained without bond pending resolution of the federal charge against him.
During the hearing, an ATF special agent informed the court that Stephens was involved in a traffic stop on October 31, 2019, and found to be in possession of a loaded firearm. Federal law prohibits Stephens from possessing firearms and ammunition due to a prior felony conviction for strong arm robbery. Stephens told investigators with the Newberry County Sheriff’s Office that he was a member of a gang and he carried a gun to protect himself from rival gang members living in Newberry County. At the time of the traffic stop, Stephens was out on bond for a state court weapons charge from August 2019 that also involved the possession of marijuana with intent to distribute.
As a result of the federal charge, Stephens faces a maximum term of imprisonment of 10 years. The offense listed in the arrest warrant is merely an allegation, and Stephens is presumed innocent unless and until proven guilty.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) initiative, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorney Justin Holloway of the Greenville office is prosecuting the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
New Canaan Man Sentenced to Prison for Role in Compound Prescription Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KWASI GYAMBIBI, 41, of New Canaan, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months of imprisonment, followed by one year of supervised release, for health care fraud.
According to court documents, statements made in court and the evidence presented during his trial last year, Advantage Pharmacy was a compounding pharmacy located in Hattiesburg, Mississippi. As a compounding pharmacy, Advantage created compound prescription drugs specifically tailored for individual patients who had a medical need for a compound drug, by mixing together individual ingredients in the exact strength and dosage prescribed by the health care provider to meet the unique needs of a patient. One tube of a compound drug cream prepared and dispensed by Advantage Pharmacy typically cost health care benefit programs thousands of dollars, and some individual tubes of cream cost more than $11,000 for a one-month supply. Gyambibi’s wife, Kakra Gyambibi is a physician who worked as a hospitalist at Stamford Hospital, and Kwasi Gyambibi acted as, and eventually became, a sales representative for Advantage Pharmacy.
In 2014 and 2015, Kwasi and Kakra Gyambibi engaged in a scheme to defraud the State of Connecticut Pharmacy Benefit Plan, TRICARE and other health care programs by submitting prescriptions for compound pharmacy medications prepared and dispensed by Advantage Pharmacy. Although the prescriptions sent to Advantage Pharmacy contained Kakra Gyambibi’s signature, Kakra Gyambibi did not treat, examine, or even meet with the patients for whom the prescriptions were written. Based on these false and misleading claims, the victim health care programs paid Advantage Pharmacy for the compound prescription drugs. Advantage Pharmacy, in tum, paid commissions of between 15 percent to 35 percent to sales representatives, including Kwasi Gyambibi’s close cousin, whom Kwasi Gyambibi considered his brother.
It is alleged that Kwasi and Kakra Gyambibi also induced the victim health care programs to pay Advantage Pharmacy more than $292,000 for their own compound prescription drugs.
The investigation has revealed that this scheme resulted in more than $1.6 million in losses to the victim health care programs.
Kwasi Gyambibi was arrested on an indictment on June 28, 2018. On January 9, 2019, a grand jury in New Haven returned a 19-count superseding indictment. On February 22, 2019, Kwasi Gyambibi was found guilty of two counts of health care fraud related to fraudulent prescriptions for compound drugs that were submitted to Advantage Pharmacy in March 2015, and found him not guilty of seven counts of health care fraud. The jury could not reach a verdict on the other 10 counts in the indictment.
Kwasi Gyambibi, who is released on a $100,000 bond, is required to report to prison on March 20, 2020.
On January 18, 2019, Kakra Gyambibi pleaded guilty to one count of conspiracy to commit healthcare fraud. On June 12, 2019, she was sentenced to three months of imprisonment.
Judge Meyer will issue a restitution order at a later date. The government is seeking $1,650,332.35 in restitution.
This investigation was conducted by the New Haven Division of the FBI. U.S. Attorney Durham thanked the Office of the Attorney General of the State of Connecticut, the U.S. Attorney’s Office for the Southern District of Mississippi, the U.S. Department of Justice’s Fraud Section, and the Jackson, Mississippi Division of the FBI for their assistance with the investigation.
This case was prosecuted by Assistant U.S. Attorneys David J. Sheldon and Christopher W. Schmeisser.
Nanticoke Man Sentenced to Seven Months’ Imprisonment for Export OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mark Komoroski, age 57, of Nanticoke, Pennsylvania, was sentenced on February 14, 2020, to seven months’ imprisonment to be followed by two years’ supervised release, by United States District Court Judge Malachy E. Mannion, for violating federal export laws.
According to United States Attorney David J. Freed, Komoroski previously pleaded guilty to violating the International Emergency Economic Powers Act and related regulations. Komoroski admitted that in early 2016, he attempted to export two riflescopes to an individual in Russia even though he knew that the export licenses required by federal law had not been obtained.
This case was investigated by Homeland Security Investigations and the Department of Commerce. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
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Moss Point Man Pleads Guilty to Hobbs Act RobberyRead the Press Release
Gulfport, Miss. – Antwone Malik Coleman Booker, 19, of Moss Point, pled guilty on February 19, 2020, before U.S. District Judge Halil S. Ozerden to “Hobbs Act” armed robbery, and using a firearm during a crime of violence, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
In the early hours of August 15, 2019, in Moss Point, Antwone Malik Coleman Booker entered a Waffle House restaurant in Moss Point and pointed a black handgun at the cashier and demanded money. While the waitress was opening the cash register, Booker shot one round of ammunition from the firearm into the ceiling of the restaurant; and, after the waitress handed the money to Booker, he shot one additional round into the ceiling. Booker then fled the restaurant, but was arrested shortly thereafter.
Booker will be sentenced by Judge Ozerden on May 21, 2020, at 9:30 a.m., in Gulfport. He faces a maximum penalty of 20 years in prison for the robbery with at least 7 years added consecutively for use of a firearm in relation to a crime of violence.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Moss Point, Ellisville, and Pascagoula Police Departments. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
Montreal Man Sentenced for Attempting to Smuggle Firearms Parts into CanadaRead the Press Release
ALBANY, NEW YORK – Luc Emond, age 60, of Montreal, Canada, was sentenced today to 10 months in prison, and to pay a $3,000 fine, for attempting to smuggle pistol kits into Canada. The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
In pleading guilty, Emond admitted to hiding the pistol kits in his car and attempting to smuggle them into Canada without first obtaining export licenses and completing other paperwork. Emond ordered the two pistol kits over the internet and had them delivered to him at a motel in Lake George, New York, to which he traveled from Canada in order to pick up the firearms kits and transport them to Canada.
This case was investigated by HSI, the Warren County Sheriff’s Office, and the Albany County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Emily C. Powers.
Montgomery County “Pill Mill” Doctor Sentenced to Four Years in Prison for Illegal Opioid DistributionRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Dr. Spiro Y. Kassis, 66, of Plymouth Township, PA was sentenced to 48 months’ incarceration, two years’ supervised release and a $25,000 fine by United States District Judge Gene E. K. Pratter after pleading guilty to 14 counts of distributing controlled substances outside the course of professional practice and without a legitimate medical purpose. Separately, in a related civil case which reached settlement in November 2019, the defendant agreed to pay $1.4 million to resolve similar allegations.
The defendant, who represented himself as a specialist in psychiatry and addiction medicine, operated medical offices in East Norriton Township, PA and Scranton, PA. He used those offices to operate a “prescription pill mill” whereby he sold medically unnecessary prescriptions for opioid drugs such as oxycodone and burprenorphine, as well as other controlled substances. Kassis sold prescriptions for dangerous and addictive drugs for approximately $200 cash. At the East Norriton office, Kassis saw approximately 45 patients per day, who lined up outside a back room where Kassis sat behind a desk. As each patient filed in, Kassis collected $200 cash, counted the money and placed it in a safe -- and then issued the requested prescriptions electronically to the patient’s pharmacy. Often, the defendant issued dangerous cocktails that included oxycodone, methadone, and buprenorphine, all to the same patient.
“My Office is committed to stopping drug dealing doctors like Kassis,” said U.S. Attorney McSwain. “As a physician, he was well aware of the inherently dangerous nature of the drugs he cavalierly handed out. Nevertheless, he took advantage of vulnerable people struggling with addiction, all the while sitting comfortably behind a desk, watching the money pile up.”
The case was investigated by the Drug Enforcement Agency; Federal Bureau of Investigation; Health and Human Services – Office of Inspector General; and Montgomery County Detective Bureau’s Narcotics Enforcement Team. It is being prosecuted by Assistant United States Attorney M. Beth Leahy, and Special Assistant United States Attorney James Price, who was cross-designated by the Montgomery County District Attorney for this prosecution. The related civil action is being handled by Assistant United States Attorney Anthony Scicchitano.
Mexican national sentenced to 120 months in federal prison for methamphetamine trafficking conspiracyRead the Press Release
ALBUQUERQUE, N.M. – Efrain Espinoza-Pena, 47, a Mexican national, was sentenced in federal court in Albuquerque yesterday to 120 months in prison for conspiracy, distribution, and possession with intent to distribute more than 33 pounds of methamphetamine.
Espinoza-Pena pleaded guilty to these offenses on July 3, 2018. According to public court records, he conspired with three other defendants to distribute methamphetamine in New Mexico from Oct. 9, 2016, to Feb. 9, 2017. Espinoza-Pena, and his wife and co-defendant, Cordelia Louisa Espinosa, 47, delivered about one pound of methamphetamine to an undercover federal agent at a casino on Dec. 7, 2016. The conspiracy also involved a sale of 31 pounds of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime on Feb. 9, 2017.
Another co-defendant, Hector Hugo Magana, 36, of Redwood City, California, pleaded guilty on July 20, 2018, to conspiracy and possession with intent to distribute methamphetamine. He received a sentence of 70 months in prison. Another co-defendant, Edgar Madrid-Rascon, 34, of Chihuahua, Mexico, pleaded guilty on Sept. 13, 2018, to conspiracy and distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. He is awaiting sentencing. Cordelia Espinosa previously pleaded guilty on June 14, 2018, to conspiracy and distribution of methamphetamine. She received a sentence of 36 months in prison.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. Assistant U.S. Attorneys Paul Mysliwiec and David Cowen are prosecuting the case.
Man from Navajo Nation sentenced to 71 months in federal prison for deadly drunk driving crashRead the Press Release
ALBUQUERQUE, N.M. – Tavis Washburn, 27, of Sanostee, N.M., was sentenced on Feb. 13 in federal court in Santa Fe, New Mexico to 71 months in prison for involuntary manslaughter and child abuse in Indian Country.
Washburn previously pleaded guilty to these offenses on July 12, 2019. In his plea agreement, Washburn admitted to committing the offenses on the Navajo Nation in San Juan County on Feb. 15, 2018. Washburn was speeding and driving while intoxicated with his brother and two-year-old son in the vehicle, when he crashed into another vehicle. As a result of the crash, Washburn’s brother was killed and Washburn’s son was injured.
The Farmington office of the FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Allison Jaros prosecuted the case.
Man from Navajo Nation sentenced to 33 months in prison for assault resulting in serious bodily injuryRead the Press Release
ALBUQUERQUE, N.M. – Ricky Thomas, 52, of Gallup, N.M., was sentenced on Feb. 13 in federal court in Albuquerque to 33 months in prison for assault resulting in serious bodily injury in Indian Country.
Thomas previously pleaded guilty to this offense on July 8, 2019. In his plea agreement, Thomas admitted to committing the assault on the Navajo Nation in McKinley County on September 15, 2018. Thomas pushed the victim off a porch, causing the victim to fall on his head. As a result of the assault, the victim suffered serious spinal cord injuries and is now quadriplegic.
The Gallup office of the FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Allison Jaros prosecuted the case.
Man Pleads Guilty to Federal Gun OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that BERNARD BAKER, an Orleans Parish resident, pled guilty as charged on February 18, 2020 to a one-count indictment for being a Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(1).
At sentencing, BAKER faces up to a maximum term of imprisonment of ten (10) years, a maximum fine of up to $250,000, and up to 3 years of supervised release following any term of imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Melissa Bücher of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Leader of Deadly Fentanyl Distribution Ring Sentenced to 30 YearsRead the Press Release
Demarco Tempo, the architect of a heroin, crack cocaine, and fentanyl dealing operation that went by the name “Polo” and was described by several former customers as a “McDonald’s for drugs,” was sentenced to 30 years in federal prison for drug distributions resulting in several overdoses and the death of at least one victim, announced United States Attorney Matthew Schneider. Tempo was the last of thirteen convicted defendants in this conspiracy to be sentenced.
Schneider was joined in the announcement by Special Agent in Charge Keith Martin, Drug Enforcement Administration, Detroit Division and Commissioner William Dwyer, Warren Police Department.
“The drug dealers in this case had a complete disregard for life, and the heroin and fentanyl they sold killed a Michigan resident who was struggling with addiction,” said United States Attorney Matthew Schneider. “The life-saving efforts of the local police and first responders prevented numerous other senseless deaths. Now, with the architect of this drug dealing scheme behind bars for the next 30 years, people suffering from addiction will have a better chance at recovery.”
“The success of this investigation is a testament to collaboration between federal and local law enforcement partners in targeting and dismantling heroin distribution rings in Southeastern Michigan, stated Special Agent in Charge Martin. "Communities throughout the state need not worry about Mr. Tempo and his drug business for the next quarter century.”
According to court records, from 2012 through his arrest in June 2016, Tempo led the “Polo” organization, a group of drug traffickers on the east side of Detroit who sold heroin and crack cocaine all day, every day, to hundreds, if not thousands, of customers. The phone numbers used to contact “Polo” were well known and widely used in the surrounding areas: one fifteen-month period showed 416,934 contacts on the two main numbers, an average of more than 900 per day.
Around the beginning of 2016, Tempo and his co-conspirators began selling fentanyl mixed with—and sometimes substituted altogether for—heroin to unsuspecting customers. A rash of near-fatal overdoses in nearby Warren— and one that resulted in the tragic death of a 19-year-old Warren woman—led to an investigation by the Warren Police Department and Drug Enforcement Administration. Using a wide variety of techniques during an intensive three-month investigation, including physical and electronic surveillance, undercover purchases, search warrants, and customer interviews, law enforcement ultimately identified several members of the Polo operation, arresting and charging thirteen—including Tempo, who was caught red-handed with seven cell phones, including the two main “Polo” phones—between June and September 2016.
Most of these defendants faced the most serious charges: conspiracy to distribute and possess with intent to distribute heroin, crack cocaine, fentanyl, and powder cocaine, resulting in death or serious bodily injury; distribution of heroin and fentanyl resulting in death or serious bodily injury; and possession of heroin and crack cocaine with intent to distribute, within 1,000 feet of a school. Three defendants (Randy Stewart, Darreyl Coneal, and Amacio Alexander) were not charged with overdose counts, based on their limited participation in the crimes. Eleven traffickers pleaded guilty, and two—Tempo and his half-brother, Kenneth Sadler—were convicted in March 2019 following a five-week trial. Sadler was also convicted at that trial of possession of a firearm by a convicted felon and with witness intimidation counts, for threats made to multiple witnesses while the original charges were pending.
Altogether, these defendants were sentenced to terms in federal prison totaling more than 130 years. A complete summary of the sentences follows:
Demarco Tempo, a/k/a “Polo”: sentenced on February 14, 2020, to 30 years.
Kenneth Sadler, a/k/a “KO”: sentenced on October 9, 2019, to 25 years.
Darius Gordon, a/k/a “Debo”: sentenced on September 13, 2018, to 11 years.
Haratio Heard, a/k/a “Show”: sentenced on August 28, 2018, to 10 years [(shot and killed on October 23, 2018, while pending surrender to begin serving his sentence)].
Juwan Allen, a/k/a “Juan”: sentenced on June 14, 2018, to 10 years.
Greg Howard, a/k/a “G”: sentenced on August 3, 2018, to 10 years.
Marcus Gilbert: sentenced on September 13, 2018, to 103 months.
Alvin Coates: sentenced on September 13, 2018, to 87 months.
Javon Brown, a/k/a “J”: sentenced on April 25, 2019, to 87 months.
Dennis Jones, a/k/a “Shorty”: sentenced on April 30, 2018, to 7 years.
Randy Stewart, a/k/a “Bookie”: sentenced on July 28, 2017, to 5 years.
Darreyl Coneal: sentenced on May 7, 2018, to 3 years.
Amacio Alexander: sentenced on May 1, 2019, to 1 year.
The case was prosecuted by Assistant United States Attorneys Ben Coats and Brant Cook.
Lackawanna County Bank Robber Sentenced to Nine Years’ ImprisonmentRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Ryall, Jr., age 40, of Simpson, Pennsylvania, was sentenced on February 13, 2020, by United States District Court Judge Robert D. Mariani to 108 months’ imprisonment and three years of supervised release, for an armed bank robbery.
According to United States Attorney David J. Freed, Ryall robbed the Honesdale National Bank in Scott Township, Pennsylvania, on October 20, 2017, threatening employees with a mock firearm. Ryall obtained $5,255, but was restrained by a bank customer, and taken into custody by the Scott Township Police Department shortly thereafter.
Ryall received sentencing enhancements for causing physical injury to a bank customer, and for threatening a material witness from prison, after he was arrested and charged. Judge Mariani also ordered him to pay $600 to Honesdale National Bank, for damages to the bank during Ryall’s struggle with a customer.
The matter was investigated by the Federal Bureau of Investigation and by the Scott Township Police Department. Assistant United States Attorney Phillip J. Caraballo is prosecuting 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.
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Justice Department Requires Divestiture in Order for Liqui-Box to Proceed with Acquisition of Plastics Division of DS SmithRead the Press Release
The Department of Justice announced today that it is requiring Olympus Growth Fund VI L.P. (Olympus Fund VI), its portfolio company Liqui-Box Inc. (Liqui-Box), and DS Smith plc (DS Smith) to divest all of DS Smith’s dairy, post-mix, smoothie, and wine bag-in-box (BiB) product lines in the United States in order for Liqui-Box to proceed with its proposed acquisition of the Plastics Division of DS Smith. Without the divestiture, the proposed acquisition would eliminate competition between two of the primary suppliers of dairy, post-mix, smoothie, and wine BiBs in the United States.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed merger. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
“The merger, as originally structured, would have eliminated competition for packaging products that dairies, soft-drink manufacturers, and other food producers rely on to preserve and safely transport liquids to stores, restaurants, and other food processors,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement will ensure that purchasers of BiBs continue to benefit from vigorous competition in the development, manufacture, and sale of these products.”
BiBs, flexible packaging consisting of an engineered plastic bag and attached plastic fitment, are used to store, protect, transport, and dispense various edible liquids. According to the Justice Department’s complaint, Liqui-Box and DS Smith, under its Rapak brand, are two of only three significant U.S. suppliers of dairy, post-mix (e.g., soda syrups and other beverage concentrates), and smoothie BiBs. The companies are also two of only four U.S. suppliers of BiBs that hold and dispense the wine in boxed wines. The Justice Department’s complaint alleges that competition between Liqui-Box and DS Smith for these BiBs has resulted in lower prices, higher quality, and better service, and has fostered innovation leading to the development of new BiB products. According to the complaint, the combination of Liqui-Box and DS Smith’s Plastics Division would eliminate this competition, and likely lead to increased prices, lower quality and service, and diminished investment in research and development.
Under the terms of the proposed settlement, Liqui-Box must divest all of DS Smith’s BiB product lines that overlap with product lines offered by Liqui-Box in the United States, including those for dairy, post-mix, smoothie, and wine BiBs, as well as production facilities in Indianapolis, Indiana, and Union City, California, the Rapak brand, and other production equipment and assets, to TriMas Corporation (TriMas), or an alternate acquirer approved by the United States. TriMas, a Michigan-based manufacturer operating in the consumer products, aerospace, and industrial end markets, already sells a variety of packaging products for the health, beauty and home care, beverage, and industrial markets.
Olympus Fund VI is a Delaware limited partnership with headquarters in Stamford, Connecticut. Olympus Fund VI is a fund of Olympus Partners, which, in 2018, had approximately $8.5 billion total capital under management between its different funds, with Olympus Fund VI comprising approximately $2.3 billion of that total.
Liqui-Box, a portfolio company of Olympus Fund VI, is a Delaware corporation with headquarters in Richmond, Virginia. In 2018, Liqui-Box had total sales of $177 million, including approximately $123 million in sales in the United States.
DS Smith is a United Kingdom public limited company with headquarters in London, England. DS Smith’s Plastics Division is headquartered in Romeoville, Illinois. In 2018, DS Smith’s Plastics Division had total sales of $479 million, including approximately $137 million in sales in the United States.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Katrina Rouse, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.
John Leonard Cruz Sentenced to Federal Prison for Felon in Possession of Firearm and AmmunitionRead the Press Release
Hagatña, Guam - SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JOHN LEONARD CRUZ, age 49, from Merizo, was sentenced in the District Court of Guam to 24 months imprisonment, On August 22, 2019, Cruz entered a guilty plea to Felon in Possession of Firearm and Ammunition, in violation of Title 18, United States Code, Section 922(g)(1). The Court also ordered three years of supervised release, twenty-five hours of community service, and the payment of a mandatory $100.00 special assessment fee.
On January 22, 2004, Cruz was convicted in the Superior Court of Guam for Possession of a Schedule II Controlled Substance (As a Third Degree Felony). As a convicted felon, Cruz was prohibited from possessing a firearm and ammunition. On August 22, 2018, Cruz knowingly possessed a 12 gauge shotgun and ammunition while hunting. Cruz did not have a valid firearm license. He told Guam conservation officers that he received the shotgun from someone so that he could go hunting.
U.S. Attorney Anderson states, “Section 922(g) of Title 18 lists a variety of instances where the possession of a firearm or ammunition is prohibited. The possession of even one round of ammunition can result in a substantial term of imprisonment. Importantly, federal firearm laws do not provide an exception for felons to possess these items for sporting purposes. Prohibited persons are therefore encouraged to avoid any circumstances that put them at risk of federal prosecution.”
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The United States Attorney’s Office is also initiating similar prosecutions as part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Guam Department of Agriculture, Law Enforcement Section. This case was prosecuted by Stephen F. Leon Guerrero, Assistant United States Attorney for the District of Guam.
Jefferson County Felon Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A 27-year-old Beaumont, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Bernard James Bell pleaded guilty on July 23, 2019, to being a felon in possession of a firearm and was sentenced to 71 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on Apr. 11, 2019, law enforcement officers began investigating a homicide that occurred in Beaumont’s west end. On Apr. 14, 2019, investigators learned that Bell was provided a firearm that was used in connection with that homicide so that he could dispose of it or hide it. After speaking with Bell, investigators recovered the firearm and determined that Bell had possessed it. Further investigation revealed Bell is a convicted felon having several convictions in Jefferson County, Texas in 2011 and 2012. As a convicted felon, Bell is prohibited from owning or possessing firearms or ammunition. Bell was indicted on those charges by a federal grand jury on May 1, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Russell James.
Jacksonville Heroin Dealer Sentenced to Five Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Albert Vincent Hicks (48, Jacksonville) to five years in federal prison for distributing heroin.
Hicks had pleaded guilty on August 21, 2019.
According to court documents, on October 26, 2017, Hicks sold more than 25 grams of heroin to a confidential informant. On November 16, 2017, he sold an additional 13 grams of heroin. During the second sale, Hicks discussed the possibility of a future, larger deal with the informant. As a repeat offender, with a prior conviction for sale of cocaine, Hicks was subject to enhanced penalties under federal law.
This case was investigated by the Drug Enforcement Administration and the Fernandina Beach Police Department. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Inland Empire Man Who Used Fake IDs to Cash over $500,000 in Stolen Treasury Checks Sentenced to More Than 6 Years in PrisonRead the Press Release
LOS ANGELES – A San Bernardino County man was sentenced today to 77 months in federal prison for stealing more than half a million dollars in United States Treasury checks and then using them to defraud two major banks.
Danele Ramon Morgan, 46, of Rancho Cucamonga, was sentenced by United States District Judge Michael W. Fitzgerald, who also ordered him to pay $337,083 in restitution.
Morgan pleaded guilty in September 2019 to one count of conspiracy to commit bank fraud. He admitted in his plea agreement that he obtained stolen checks and enlisted co-conspirators to assist in opening fraudulent bank accounts in the payees’ names. Afterward, they could deposit the stolen checks and withdraw funds through cash withdrawals and debit card purchases.
In furtherance of his scheme, Morgan obtained and used fraudulent identification documents with his and his co-conspirators’ photographs, but with the payees’ personal information. Armed with these documents, Morgan and his co-conspirators personally entered banks pretending to be the payees, opened fraudulent bank accounts and deposited the stolen checks.
Morgan and his co-conspirators deposited approximately $571,681 in stolen treasury checks between June 2016 and January 2017, causing actual losses of $337,084 to Bank of America and Wells Fargo. The conspirators opened fraudulent accounts or used fraudulently obtained ATM cards were opened at Bank of America branches in Pasadena, Atascadero, Paso Robles,Castro Valley and Pleasanton, and at a Wells Fargo branch in Los Banos.
The United States Postal Service’s Office of Inspector General, the United States Treasury Inspector General for Tax Administration, and the United States Postal Inspection Service investigated this matter.
This matter was prosecuted by Special Assistant United States Attorney Patrick Castañeda of the General Crimes Section.
House Painting Company that Illegally Removed Lead Paint is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Tyler C. Amon, Special Agent in Charge of EPA’s Criminal Investigation Division in New England, announced that COLLEGIATE ENTREPRENEURS, INC., a Massachusetts-based house painting company, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford for violating the Toxic Substances Control Act and subsequently falsifying records.
According to court documents and statements made in court, Collegiate Entrepreneurs, Inc., LLC, of Braintree, Massachusetts, provides house-painting services in Connecticut and other New England states. Some of the houses painted by Collegiate Entrepreneurs in 2015 contained lead-based paint. For those jobs, the company was subject to the lead-based paint requirements of the Toxic Substances Control Act and the Environmental Protection Agency’s (EPA) Renovation, Repair and Painting (RRP) Rule.
Under the RRP Rule, Collegiate Entrepreneurs was required to ensure that its certified renovators complied with provisions governing training and supervision of painters, post-renovation cleaning, physical presence on-site, and preparation of required records. The company was also responsible for ensuring that all renovation activities were performed in compliance with RRP Rule work practice standards governing occupant protection, containment of the work area, prohibited and restricted practices, waste from renovations, cleanup of the work area, and post-renovation cleaning verification. Collegiate Entrepreneurs knowingly failed to ensure such compliance by its renovators during the 2015 painting season.
On October 13, 2015, in response to a federal grand jury subpoena, an employee of Collegiate Entrepreneurs produced records for 12 painting jobs in Connecticut that involved lead-based paint. Included in the production were records that appeared to have been prepared and signed by certified renovators to document that RRP Rule work practice standards and training requirements had been met at each lead paint job. Records for at least 10 of the 12 jobs were false. The signatures of the certified renovators were forged and the records falsely represented that the jobs were performed in compliance with the RRP Rule.
On November 19, 2019, Collegiate Entrepreneurs pleaded guilty to one count of falsification of records and one count of violating the Toxic Substances Control Act.
Judge Chatigny today ordered Collegiate Entrepreneurs to serve five years of probation and pay a fine of $50,000.
While on probation, Collegiate Entrepreneurs is prohibited from engaging in projects that involve the remediation of lead paint and are subject to the RRP Rule.
Collegiate Entrepreneurs also will pay $30,000 in restitution to a victim homeowner in West Hartford, Connecticut.
“Collegiate Entrepreneurs purposely violated the requirements of safely removing lead from homes and in doing risked the health of families whose houses were being renovated,” said EPA-CID Special Agent in Charge Amon. “EPA remains focused on holding accountable companies and individuals that cut corners and fail to put public health and safety first.”
This investigation was conducted by the U.S. Environmental Protection Agency, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Holiday Island Sex Offender Sentenced to Life in Federal Prison in Child Exploitation CaseRead the Press Release
Fort Smith, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Lucas Montagne, age 33, of Holiday Island, Arkansas, was sentenced yesterday to life in federal prison followed by five years of supervised release on one count of Sexual Exploitation of a Minor via the Production of Child Pornography and a sentencing enhancement for having a prior sex conviction in which the victim was a minor. The Honorable P. K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, in April 2019 Homeland Security Investigations received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding media files that contained what was believed to be images of child pornography being uploaded onto Google. The CyberTip noted that metadata from one of the image files indicated it may have been taken in February 2019 near Holiday Island, Arkansas.
Further investigation led Investigators to Montagne’s residence in Holiday Island. A federal search warrant was sought and obtained and was executed on the residence in May 2019. During execution of the search warrant, Montagne and two minors were located inside the home.
A forensic analysis of electronics seized from the residence revealed multiple images of child pornography depicting two separate minors under the age of ten.
Montagne was a registered sex offender having been convicted in 2013 in Montgomery County, Texas for Sexual Assault of a Child and in 2014 out of Harris County, Texas for Sexual Assault of a Child.
Montagne was indicted in June of 2019 and entered a guilty plea in October of 2019.
This case was investigated by the Department of Homeland Security, the Internet Crimes Against Children (ICAC) Task Force, Eureka Springs Police Department, Arkansas State Police and Carroll County Probation and Parole. Assistant United States Attorney Carly Marshall prosecuted the case for the United States.
Harlan County Man Sentenced to 200 Months for Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky. - Dylan Brewer, 23, of Harlan County, was sentenced Wednesday to 200 months in federal prison by United States District Judge Robert Wier for possession with the intent to distribute over 500 grams of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to the plea agreement, law enforcement stopped Brewer’s vehicle in Bell County, Kentucky, on July 13, 2019, and found nearly two kilograms of methamphetamine and a loaded firearm hidden in a speaker box in the back seat. During the investigation, law enforcement learned that Brewer had been obtaining methamphetamine in Georgia and traveling to Harlan County to distribute it in the area.
Under federal law, Brewer must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office following his release.
“Methamphetamine trafficking goes hand in hand with violent crime,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Our Office is committed to holding accountable drug dealers who distribute this poison, particularly those who do so while unlawfully possessing a firearm. This prosecution should serve as a stern warning for those who peddle dangerous drugs into Eastern Kentucky- when you are convicted you will serve significant prison time for your crime.”
U.S. Attorney Duncan; Dan Dodds, Acting Special Agent in Charge of the DEA Louisville Field Division; Rodney Brewer, Commissioner of Kentucky State Police; Chief Kyle Dunn, Pineville Police Department; Sheriff Mitch Williams, Bell County Sheriff’s Department; and Sheriff Mike Smith, Knox County Sheriff’s Department, jointly announced the guilty plea.
The investigation was conducted by DEA, KSP, Pineville Police Department, Bell County Sheriff’s Department, and Knox County Sheriff’s Department. The United States was represented by Assistant U.S. Attorney Andrew H. Trimble.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Guardian Elder Care Holdings and Related Entities Agree to Pay $15.4 Million to Resolve False Claims Act Allegations for Billing for Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
Guardian Elder Care Holdings Inc., and related companies Guardian LTC Management Inc., Guardian Elder Care Management Inc., Guardian Elder Care Management I Inc., and Guardian Rehabilitation Services Inc., (Guardian) agreed to pay $15,466,278 to resolve False Claims Act allegations that they knowingly overbilled Medicare and the Federal Employees Health Benefits Program for medically unnecessary rehabilitation therapy services, the Department of Justice announced today. Guardian operates more than 50 nursing facilities throughout Pennsylvania, as well as in Ohio and West Virginia.
“Seniors rely on the Medicare program to provide them with appropriate care, and to ensure that they are treated with dignity and respect,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The department will not tolerate nursing home operators that put their own economic gain ahead of the needs of their residents, and will continue to hold accountable those operators who bill Medicare for unnecessary rehabilitation services.”
The settlement announced today resolve claims by the United States that from Jan. 1, 2011, through Dec. 31, 2017, Guardian caused certain facilities in Pennsylvania, West Virginia, and Ohio to bill for patients at the highest level of Medicare reimbursement, when services at that level were not medically necessary and were influenced by financial considerations rather than resident needs. These allegations were originally brought by two former Guardian employees, Phillipa Krause and Julie White, under the whistleblower, or qui tam, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to share in any recovery. The whistleblowers in this case will receive approximately $2.8 million.
The settlement also resolves allegations voluntarily disclosed by Guardian that it had employed two people who were excluded from federal healthcare programs. As a result of its employment of these two excluded individuals, Guardian inappropriately received payment for ineligible services.
“Too much rehabilitation therapy can actually harm patients, just like giving them too many pills or too much medicine,” said U.S. Attorney William McSwain of the Eastern District of Pennsylvania. “And of course it harms taxpayers who foot the bill for unnecessary treatment. We thank Ms. Krauss and Ms. White for their role in bringing this alleged scheme to light. We also commend Guardian Elder Care for telling us about its employment of the excluded providers. It is in their best interest for companies to make voluntary disclosures and emphasize compliance going forward, as my office will take this sort of cooperation into consideration when determining an appropriate resolution.”
“Billing federal healthcare programs for medically unnecessary rehabilitation services not only depletes these programs’ funds but also exploits our most vulnerable citizens,” said U.S. Attorney Scott W. Brady of the Western District of Pennsylvania. “Our office will continue to aggressively pursue providers who take advantage of our seniors by putting financial gain ahead of patient care.”
“Protecting our beneficiaries from unnecessary services is a priority and we will not tolerate companies putting financial gain ahead of quality of care,” said Maureen R. Dixon, Special Agent in Charge, Office of the Inspector General-U.S. Department of Health and Human Services (HHS-OIG). “HHS-OIG will continue to work with our partners at the Department of Justice and OPM-OIG to root out fraud, waste and abuse in the Medicare and Medicaid programs.”
“Subjecting vulnerable patients to unnecessary treatments for financial gain is unconscionable," said Deputy Assistant Inspector General for Investigations Thomas W. South, Office of the Inspector General-U.S. Office of Personnel Management (OPM-OIG). "First and foremost, OPM-OIG prioritizes protecting Federal employees and their dependents from patient harm. I am proud that we were able to work with our law enforcement partners to hold Guardian Elder Care accountable for their unscrupulous behavior.”
Contemporaneous with the civil settlement, Guardian agreed to enter into a chain-wide Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General. Such agreements promote compliance and protect vulnerable nursing home residents.
This case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Eastern District of Pennsylvania and for the Western District of Pennsylvania; HHS-OIG; and OPM-OIG. This case was supported by the Department of Justice’s Elder Justice and Nursing Home Initiative, which coordinates the department’s activities combating elder abuse, neglect, and financial exploitation, especially as they impact beneficiaries of Medicare, Medicaid, and other federal health care programs. This case was also a product of the Elder Justice Task Force of the U.S. Attorney’s Office for the Eastern District of Pennsylvania that launched four years ago. For more information about the Department’s Elder Justice Initiative and the Elder Justice Task Force, see https://www.justice.gov/elderjustice/.
The case is docketed as United States ex rel. Krauss v. Guardian Elder Care Holdings, Inc., et al., Civil Action No. 3:15-cv-6850 (E.D. Pa.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Greece Man Arrested and Charged with Threatening to Kill Senator Charles Schumer and Congressman Adam SchiffRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Salvatore Lippa II, 57, of Greece, NY, was arrested and charged by criminal complaint with threating to assault and murder a federal official on account of the performance of their official duties, and interstate communication of a threat. The charges carry a maximum penalty of 10 years in prison, a $250,000 fine, or both.
According to Assistant U.S. Attorney Sean C. Eldridge, the criminal complaint alleges that on January 23, 2020, the Washington D.C. office of California Congressman Adam Schiff received a threatening voice mail that included a death threat to the Congressman.
On February 4, 2020, the Albany, NY, office of New York Senator Charles Schumer received a threatening voice mail that also contained a death threat to the Senator.
The threats were reported to the United States Capitol Police, Threat Assessment Section, which began an investigation. The telephone number that both the calls originated from was traced back to the defendant. When questioned by Special Agents from the United States Capitol Police, Lippa admitted to making the threatening calls to Congressman Schiff and Senator Schumer because he was upset about the impeachment proceedings.
“The rights secured in our Constitution carry with them certain responsibilities,” stated U.S. Attorney Kennedy. “When it comes to the First Amendment, that responsibility includes the obligation not to threaten to kill others. This Office will remain vigilant in our effort to uphold the rule of law and to reinforce the ideal that in America the entire concept of self-governance is fundamentally predicated on the responsibility that each of us has to control and govern our own behaviors.”
The defendant is scheduled to make an initial appearance this afternoon at 3:45 p.m. before U.S. Magistrate Judge Mark W. Pedersen.
The criminal complaint is the result of an investigation by the United States Capitol Police, under the direction of Chief Steven A. Sund, with assistance from the Greece Police Department, under the direction of Chief Patrick D. Phelan, and the United States Marshals Service, under the direction of Marshal Charles Salina.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Gonzales Man Sentenced to 180 Months in Federal Prison for Coersion and Enticement of a MinorRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Court Judge John W. deGravelles sentenced Gerald Joseph Braud, Jr., age 46, of Gonzales, Louisiana, to serve 180 months in federal prison following his conviction for coercion and enticement of a minor. Braud will also be required to serve five years of supervised release and register as a convicted sex offender upon his release from prison.
According to admissions Braud made during his plea, on or about April 23, 2018, Braud, at his home in Gonzales, Louisiana, used Instagram to communicate with Minor Victim 1. Braud used the Instagram name “cornelious12345.” Minor Victim 1 identified herself as a 14-year old who lived in North Carolina, and Braud falsely told her that he was 16, almost 17 years old, when in truth, he was 44 years old. Braud then asked her to “talk dirty” with him. During their sexually explicit chat on Instagram, Braud sent Minor Victim 1 sexually explicit images of himself and repeatedly requested to see sexually explicit images and videos of Minor Victim 1. Minor Victim 1 complied with several of these requests and sent Braud sexually explicit images.
Additionally, between February and May 2018, Braud contacted at least four other minor victims over Instagram who identified themselves to Braud as minors. Similar to Minor Victim 1, Braud engaged these minor victims in sex talk, lied about his age, made promises of love, sent sexually explicit images of himself, and requested that these minor victims send him sexually explicit images and videos of themselves to Braud. Four of them responded with sexually explicit images. Braud later admitted to law enforcement that he asked at least 15 minor girls for nude pictures or videos.
U.S. Attorney Fremin stated, “This conviction and sentence once again demonstrates that our office, along with our law enforcement partners, will fight aggressively to protect our communities from child predators, such as Gerald Braud. We will continue to work tirelessly to bring justice to those individuals who exploit or harm our children. I commend our prosecutor and the agents of the Federal Bureau of Investigation for their excellent work in this matter.”
Bryan A. Vorndran, FBI New Orleans Special Agent in Charge, stated, “Minor children and teenagers are innocent and naive to the surreptitious ways of individuals like Gerald Braud who attempt to exploit our children for financial gain and/or sexual gratification. The FBI New Orleans Field Office’s Child Exploitation Task Force, in collaboration with our federal, state, and local law enforcement partners will continue to investigate and fight for those who can't
defend themselves.”This case is part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Elizabeth White.
Fourteen-year sentence for Middletown man who laundered money for Sinaloa drug cartelRead the Press Release
CINCINNATI – Raul Trejo, 54, of Middletown, was sentenced to 168 months in prison for laundering money as part of a Middletown drug conspiracy tied to the Sinaloa Drug Cartel in Mexico.
Trejo was one of 12 individuals charged by a federal grand jury in Cincinnati in a narcotics and money laundering conspiracy. Members of the group distributed fentanyl from Mexico in Middletown and sent proceeds back to Mexico. Trejo’s role was to collect and package cash he received from ringleader Donte Holdbrook, who was in charge of selling the fentanyl, and see that it was taken back to Mexico to buy more fentanyl. Investigators documented multiple transactions including one involving three shoeboxes containing nearly $200,000 in cash during a transaction in November 2016.
Holdbrook, the Middletown ringleader, pleaded guilty in October 2018 and is awaiting sentencing. He faces at least 10 years and up to life in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, Police Chief Eliot K. Isaac, Middletown Police Chief Rodney Muterspaw, Preble County Prosecuting Attorney Martin P. Votel and Ohio State Highway Patrol Superintendent Col. Paul A. Pride announced the sentence handed down by U.S. District Judge Timothy S. Black. District Criminal Chief Karl Kadon and Assistant U.S. Attorney Kenneth L. Parker are representing the United States in this case.
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Four Charged in Conspiracy to Import and Distribute Steroids, Launder ProceedsRead the Press Release
PROVIDENCE – Four individuals have been arrested, four locations searched, and several motor vehicles and bank accounts seized today during a series of early morning law enforcement actions in Rhode Island and Massachusetts, as part of an on-going multi-agency investigation led by Homeland Security Investigations (HSI) into the illegal importation, preparation, rebranding, and distribution of steroids throughout the United States, and the laundering of proceeds from the sale of the illegal drugs.
It is alleged in court documents that the leader of the conspiracy, David M. Esser, 46, of North Attleboro, arranged for the importation of large quantities of raw steroids from international suppliers, primarily based in Hong Kong. A significant number of orders placed by Esser for raw steroids were for multiple kilograms of product.
According to court documents, it is alleged that Esser arranged to have the raw steroids shipped directly to locations within the United States where, at his direction, individuals “cooked” the raw steroid product into liquid form, packaged the liquid in plastic vials, and shipped the finished products to a stash house he operated in North Attleboro. Esser provided the middle-men with the supplies required for the preparation and packaging of the steroids. Shipments to the middle-men also included cash payments to them for performing these tasks.
It is alleged that after the packaged steroids arrived at Esser’s stash house, Esser, and others working at his direction, prepared customers’ orders for steroids. Members of the conspiracy shipped the packages to customers throughout the United States, utilizing several U.S. Post Offices, including Providence’s main post office from which a significant number of packages were mailed.
It is alleged that in an effort to disguise the proceeds from the illegal sales of steroids, members of the conspiracy often times moved the proceeds from bank account to bank account, and used some of the proceeds to purchase, among other things, raw steroid products, steroid trafficking supplies, vehicles, and properties.
Proceeds from some sales of steroids were paid to the members of the conspiracy in cash. Other payments were made by cryptocurrency.
United States Attorney Aaron L. Weisman, Homeland Security Investigations Acting Special Agent in Charge Jason Molina, North Attleboro Police Chief John J. Reilly, and Mansfield Police Chief Ronald Sellon announce the arrest of David M. Esser, 46, James McLaughlin, 34, and Alison Esser, aka Alison Shephard, 41, of North Attleboro, and Mason A. Nieves, 27, of Providence, on federal criminal complaints charging them with intent to distribute Schedule III and IV Controlled Substances; conspiracy to distribute, possess with intent to distribute and conspiracy to import Schedule III and IV Controlled Substances; manufacturing and distributing Schedule III and IV Controlled Substances; importation of Controlled Substances into the United States; trafficking in counterfeit goods and services; smuggling goods into the United States; as well as wire fraud and money laundering.
The defendants were arraigned in U.S. District Court and released on unsecured bond.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Gerard B. Sullivan.
United States Attorney Aaron L. Weisman and Homeland Security Investigations Acting Special Agent in Charge Jason Molina acknowledge and thank the United States Postal Service, United States Postal Inspection Service, Alamance County North Carolina Narcotics Enforcement Team, U.S. Food and Drug Administration, Internal Revenue Service, and HSI Special Agents in the Houston and Winston-Salem Field Offices for their assistance in the investigation of this matter.
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Fort Wayne Man Sentenced to 7 ½ YearsRead the Press Release
FORT WAYNE – Glen Burton, age 35, formerly of Benton Harbor, Michigan was sentenced before U.S. District Court Judge Holly A. Brady upon his guilty plea to distribution of a controlled substance, announced U.S. Attorney Kirsch.
Burton was sentenced to 90 months in prison followed by 4 years of supervised release.
According to documents in this case, beginning in November 2017, the Fort Wayne Police Department began receiving anonymous tips regarding drug trafficking activity in Fort Wayne, Indiana by Burton and others associated with Burton. On March 6, 2018, a confidential informant made a recorded telephone call to one of Burton’s known associates to arrange for the purchase of $650.00 of methamphetamine. The associate told the confidential informant he would meet the confidential informant at a nearby grocery store. Shortly thereafter, officers in the area observed Burton’s associate arrive at the store and meet with the confidential informant. Over the confidential informant’s recorder, Burton’s associate was heard saying that he did not have as much methamphetamine as the confidential informant wanted and would have to contact “Glen” to get that much. The confidential informant was then heard engaging in a video call with Burton regarding the purchase of methamphetamine. Burton told the confidential informant that he would “take care of” the confidential informant shortly.
Sometime later that day, the confidential informant was directed to a gas station in Fort Wayne. Burton was identified as arriving at the gas station and then seen meeting with the confidential informant. After the meeting, the confidential informant turned over to law enforcement just under one ounce of methamphetamine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fort Wayne Police Department Vice & Narcotics Unit. The case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Fort Wayne Man Sentenced to 10 YearsRead the Press Release
FORT WAYNE – Gregory Huddleston, age 39, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his guilty plea to distribution of a controlled substance, announced U.S. Attorney Kirsch.
Huddleston was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents in the case, beginning in November 2017, the Fort Wayne Police Department began receiving anonymous tips regarding drug trafficking activity by Huddleston and others associated with Huddleston at a particular address in Fort Wayne. On July 11, 2018, a confidential informant made a recorded telephone call to Huddleston to arrange for the purchase of one ounce of methamphetamine and a quantity of heroin. During this recorded call, Huddleston instructed the confidential informant to go to a nearby store and wait and someone would be there soon with the drugs.
A short time later, surveillance officers in the area of that store observed a known associate of Huddleston arrive at the store and met with the confidential informant. That associate gave the confidential informant one ounce of methamphetamine and a small amount of heroin. These were the same amounts of the same drugs agreed upon earlier by the confidential informant and Huddleston.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fort Wayne Police Department Vice & Narcotics Unit. The case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Former Senior UAW Official Sentenced to 28 Months for Taking over $1.5 Million in Bribes and KickbacksRead the Press Release
Michael Grimes, a former high-level official in the UAW’s General Motors Department, was sentenced to 28 months in federal prison today for conspiring with other UAW officials to engage in honest services fraud by taking over $1.5 million in bribes and kickbacks from UAW vendors and contractors and for conspiring to launder the proceeds of the scheme, announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
In September, Michael Grimes, 66, of Ft. Myers, Florida, who is a native of Grand Blanc, Michigan, pleaded guilty to conspiring with two other high-level UAW officials—Joseph Ashton and Jeffrey Pietrzyk—to take millions of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources (CHR). Ashton, 71, of Ocean View, New Jersey, and Pietrzyk, 78, of Grand Island, New York, have since pleaded guilty. This “pay to play” scheme which began in 2006, and lasted over twelve years, reaped Grimes over $1.5 million which he spent on property, houses, cosmetic surgery for a relative, and a host of other items which never benefited the UAW membership.
The CHR is supposed to be a center for training UAW workers employed by GM. But Grimes, Pietrzyk, and Ahston, each of whom served on the Executive Board for the CHR, abused the power they had to approve contracts with vendors for watches, jackets, backpacks, and UAW stores at GM manufacturing facilities, and demanded kickbacks for their own financial gain. For example, in 2011, Grimes, Ashton and Pietrzyk demanded that a vendor give them a $300,000 kickback on a $6 million contract to purchase 50,000 jackets emblazoned with “Team UAW-GM.” Grimes collected the $300,000 kickback and delivered the proceeds to Ashton and Pietrzyk. Grimes demanded an additional kickback of $525,000 from the same vendor for the same jacket contract.
In another scheme to defraud, Grimes, Ashton and Pietrzyk demanded kickbacks on a $3.9 million contract for the CHR to buy 58,000 watches for all UAW members employed by GM. The UAW officials demanded over $300,000 in kickbacks on the watch contract to be distributed between 2013 through 2016. Some of the kickbacks were distributed in the form of checks disguised as tens of thousands of dollars in payments for “antique furniture.” The majority of the kickbacks were distributed as cash. In 2014, the UAW-GM CHR received the 58,000 watches from the vendor. However, the watches were never distributed to UAW members. Instead, the watches have been sitting in storage in a warehouse for over five years.
Grimes also conspired to launder the proceeds of the kickback scheme by using a series of complicated schemes, including funneling the money through a sham consulting company run by a relative, to conceal and disguise the bribes and kickbacks.
As part of this investigation, the government has forfeited money and real property from Grimes totaling over $1.5 million.
Grimes is one of many to plead guilty and be sentenced in connection with the ongoing criminal investigation into corruption within the UAW. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), and former UAW Vice President Norwood Jewell (15 months in prison). Most recently, former UAW Region 5 Director Vance Pearson pleaded guilty last week.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“It is imperative that the UAW leadership continues to be held accountable to their fiduciary duties and responsibilities,” said United States Attorney Matthew Schneider. “Today’s sentence represents another step forward in our efforts to target and prosecute corrupt UAW leaders who place their drive for personal enrichment ahead of the mission of the union.”
“Michael Grimes engaged in a fraudulent scheme to deprive the International United Auto Workers Union of his honest services by demanding and accepting over $1.5 million in bribes and kickbacks from vendors. Grimes' criminal actions were an effort to enrich himself at the expense of dues-paying UAW members. We will continue to work with our law enforcement partners to investigate those who facilitate illegal payments to union officials entrusted to negotiate on behalf of union members,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“The trail of money has led to the truth, an ugly truth of bribery, kickbacks and sham corporations, ultimately netting Michael Grimes $1.5 million dollars at the expense of UAW workers. Today’s sentence brings the UAW one step closer to removing the greedy and corrupt leadership that once embodied UAW officials across the country,” said Sarah Kull, Special Agent in Charge of Detroit’s IRS Criminal Investigation.
“Michael Grimes failed his fiduciary duties as a UAW official and betrayed the trust of the UAW membership when he used his union position to demand bribes and kickbacks from vendors in excess of $1.5 million so that he could enrich himself and other UAW officials,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “Today's conviction leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of their fellow union members.”
The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson and Eaton Brown.
Former NYPD Officer and 4 Others Charged in White Plains Federal Court with Distributing Methamphetamine and GBLRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), and Thomas Gleason, Commissioner of the Westchester County Police (“WCP”), announced the unsealing of an Indictment yesterday charging five defendants, including former New York City Police Department (“NYPD”) officer JOHN CICERO, with narcotics distribution offenses in and around Westchester County and New York City.
Three of the defendants, MARCO CASO, ERIC BAKER, and MATHEW MATTEO, a/k/a “Matthew Mateo,” were arrested yesterday and presented in White Plains federal court before United States Magistrate Judge Lisa Margaret Smith. CICERO has not been arrested and remains at large. The fifth defendant, IRMA MATERASSO, is in state custody on other charges and will be transferred to federal custody at a later date. The case has been assigned to United States District Judge Kenneth M. Karas.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants trafficked large quantities of methamphetamine and GBL – a liquid date-rape drug – throughout Westchester and New York City. Methamphetamine devastates communities and GBL spreads danger all over the Southern District of New York, which is why the defendants face serious federal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “As a former police officer, sworn to protect others, Mr. Cicero has seen firsthand the harm these drugs do to our society which makes the charges announced today even more egregious. He now faces the same grim reality criminals he once locked up did - a long prison sentence, this time in a federal jail cell.”
Westchester County Police Commissioner Thomas Gleason said: “We are pleased that our partnership with the FBI and other federal, state and local law enforcement agencies continues to support our efforts to stem the flow of illegal drugs into Westchester County.”
As alleged in the Indictment unsealed yesterday in White Plains federal court[[1]]:
From at least 2017 through February 2020, MARCO CASO, JOHN CICERO, IRMA MATERASSO, ERIC BAKER, and MATHEW MATTEO, a/k/a “Matthew Mateo,” conspired to distribute 500 grams and more of methamphetamine. In addition, from at least 2017 through February 2020, MARCO CASO, JOHN CICERO, IRMA MATERASSO, and MATHEW MATTEO, a/k/a “Matthew Mateo,” conspired to distribute gamma-butyrolactone (known as “GBL”), which is a liquid date-rape drug.
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CASO, 48, of New York, New York, CICERO, 38, of Bronxville, New York, MATERASSO, 36, of New Rochelle, New York, BAKER, 37, of Somerset, New Jersey, and MATTEO, 22, of the Bronx, New York, are each charged with conspiring to distribute 500 grams and more of methamphetamine, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. CASO, CICERO, MATERASSO, and MATTEO are also charged with conspiring to distribute GBL, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force and the Westchester County Police Department. The Westchester County Safe Streets Task Force comprises Special Agents and Task Force Officers from the FBI, U.S. Probation, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York State Police, Westchester County Police Department, Westchester County DA’s Office, NYPD, Yonkers Police Department, Mount Vernon Police Department, Peekskill Police Department, Greenburgh Police Department, and New Rochelle Police Department. He also thanked the New York State Department of Corrections Office of Special Investigations, Drug Enforcement Administration, and U.S. Customs and Border Protection for their assistance.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys David R. Felton and Daniel G. Nessim are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Indictment, and the description of the Imndictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Fredonia City Administrator Sentenced to 7+Years for Child PornographyRead the Press Release
WICHITA, KAN. – A former city administrator of Fredonia was sentenced today to 90 months in federal prison for child pornography, U.S. Attorney Stephen McAllister said.
Michael P. Ohrt, 40, Fredonia, Kan., pleaded guilty to one count of transporting child pornography. In his plea, he admitted using his Yahoo email account to establish a Dropbox storage account and then uploading videos of child pornography. Dropbox identified the material as child pornography and reported the user’s information to authorities. Investigators traced the IP address to Ohrt’s work and home in Fredonia.
McAllister commended Homeland Security Investigations (HSI), the Kansas Internet Crimes Against Children Task Force and Assistant U.S. Attorney Jason Hart for their work on the case.
Former Dunbar Armored Supervisor Sentenced to 2 Years in Prison for Stealing Almost $300,000 from Company’s Cash Storage VaultRead the Press Release
LOS ANGELES – A former Dunbar Armored Inc. employee was sentenced today to 24 months in federal prison for orchestrating the theft of nearly $300,000 in cash out of Dunbar’s storage facility in Vernon.
Eric Miranda, 39, of East Los Angeles, was sentenced by United States District Judge Dolly M. Gee, who also ordered him to pay $279,369 in restitution.
Miranda pleaded guilty in March 2019 to one count of conspiracy to commit bank theft and three counts of bank theft.
At the time of the theft, Miranda was a Dunbar Armored supervisor with access privilege to company vaults. He stole cash from the Dunbar vault by using “dummy” stacks of $100 bills that he switched out for real stacks of $100,000. First, Miranda created “dummy” stacks of $100,000 by taking hundreds of $1 bills and sandwiching them between $100 bills – in order to make them appear to be stacks of $100 bills totaling $100,000.
He then smuggled the “dummy” stacks into the Dunbar vault, where he and his co-conspirator, Monique Castruita, 36, of Maywood, switched them for real stacks of $100,000. Miranda and Castruita then marked the dummy stacks to ensure they were not placed into circulation.
Finally, Miranda smuggled the real stacks of money out of the vault room by hiding it in a postal box. On three occasions between October 2017 and January 2018, Miranda smuggled a total of approximately $300,000 out of the Dunbar facility.
In March 2018, defendant’s scheme was finally exposed when a Dunbar employee discovered 19 empty money straps in the trash can of a women’s restroom. Ultimately, the loss to Dunbar totaled $279,369.
Castruita pleaded guilty in November 2018 to one count of conspiracy to commit bank theft and three counts of bank theft. Her sentencing hearing is scheduled for April 29.
“Collectively, (Miranda’s) actions reflect a blatant and deliberate abuse of his position, disregard for the integrity of financial institutions, and disrespect for the rule of law,” prosecutors wrote in their sentencing memorandum.
The FBI investigated this matter and received substantial assistance from the Vernon Police Department.
This case was prosecuted by Assistant United States Attorneys Jeffrey M. Chemerinsky and Joseph D. Axelrad of the Violent and Organized Crime Section.
Former Chief Economist for the Center for the Advancement of Science in Space Pleads GuiltyRead the Press Release
Tampa, Florida – Charles R. Resnick (69, Charlotte, NC, formerly from Florida) has pleaded guilty to one count of filing a false income tax return. He faces a maximum penalty of three years in federal prison. Resnick also agreed to make restitution to the Center for the Advancement of Science in Space (“CASIS”). A sentencing date has not yet been set.
According to the
plea agreement , on October 15, 2013, Resnick filed a 2012 Individual Income Tax Return (IRS Form 1040), which he signed under penalty of perjury. On the return, Resnick attested that his total income for tax year 2012 was $225,947, when he knew that his income was substantially greater. Resnick understated his total income by approximately $209,916 and failed to report approximately $158,000 in gross receipts that he had earned from consulting clients. In addition, he improperly deducted business expenses in the approximate amount of $51,500, despite the facts that (1) he had been reimbursed for the expenses and (2) some of the deducted expenses were not ordinary and necessary business expenses.For sentencing purposes, Resnick is responsible for the total tax loss for tax years 2010 through and including 2013. That amount will be determined at sentencing.
This case was investigated by the National Aeronautics and Space Administration, Office of Inspector General and the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Five Men Arrested on Cocaine and Money Laundering Charges in Coordinated TakedownRead the Press Release
BOSTON – Five men were arrested and charged in federal court in Boston last week on wide-ranging cocaine distribution and money laundering charges.
- Fabio Quijano, 55, of Winthrop, was indicted on money laundering conspiracy, money laundering, conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine, and possession with intent to distribute 500 grams or more of cocaine. According to court documents, Quijano laundered/attempted to launder over $335,000 in cocaine proceeds in 2018 and 2019;
- Jairo Agudelo, 33, of Revere, was indicted on one count each of money laundering conspiracy and money laundering involving approximately $200,000 in cocaine proceeds in February 2019;
- Juan Restrepo-Madrid, 39, a Colombian national residing in Everett, and Sebastian Arbelaez-Perez, 34, a Colombian national residing in Revere, were indicted for conspiracy to distribute and distributing cocaine in East Boston from August to September 2019; and
- Jesus Arley Munera-Gomez, 33, a Colombian national residing in Revere, was charged with attempting to possess with intent to distribute and to distribute 5 kilograms or more of cocaine. According to court documents, on Feb. 13, 2020, Munera-Gomez provided approximately $200,000 to undercover agents in exchange for 20 kilograms of sham cocaine.
This operation, dubbed “Operation Týr,” was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. 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. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The charges of conspiracy/attempt to possess with intent to distribute and to distribute five kilograms or more of cocaine (applicable to Quijano and Munera-Gomez) provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of possession with intent to distribute and to distribute 500 grams or more of cocaine (applicable to Quijano) provides for a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of up to $5 million. The charges of conspiracy to possess with intent to distribute and to distribute cocaine, and distribution of cocaine (applicable to Restrepo-Madrid and Arbelaez-Perez) provide for a sentence of up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of up to $1 million. The charges of money laundering and money laundering conspiracy (applicable to Quijano and Agudelo) provide for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000, or twice the value of the property involved in the transaction, 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Kristina O’Connell, Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistance with the investigation was provided by Boston Police Department, Massachusetts State Police, Revere Police Department, Winthrop Police Department, Massachusetts National Guard, U.S. Marshals Service for the District of Massachusetts and Immigration and Customs Enforcement – Enforcement Removal Operations.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Five Facing Charges Relating to the Hustlas Don’t Sleep Drug Trafficking OrganizationRead the Press Release
PITTSBURGH – United States Attorney Scott W. Brady announced today that a federal grand jury in Pittsburgh has returned five separate, but related, indictments charging five Western Pennsylvania residents with drug and/or gun charges relating to an investigation into a group of drug traffickers identifying themselves as "Hustlas Don’t Sleep" (HDS), who sold a variety of controlled substances, including fentanyl, fentanyl analogues, crack cocaine and heroin, primarily out of the McKeesport, Turtle Creek, Wilkinsburg and Monroeville areas of Allegheny County.
The first indictment charges Kristoffer Carlino, 25, of Export, PA with violating federal narcotics laws. According to the one-count Indictment, from on or about July 31, 2019 to on or about November 19, 2019, Carlino conspired to possess with the intent to distribute and distribute 40 grams or more of fentanyl. The law provides for a maximum total sentence of not less than five years and not more than 40 years in prison, a fine of not more than $5,000,000 or both.
The second indictment charges Charles Curry, 29, of Pittsburgh, PA with violating federal narcotics laws. According to the one-count Indictment, in July 2019 to November 19, 2019, Curry conspired with persons known and unknown to possess with the intent to distribute and did distribute 10 grams or more of acetyl fentanyl and quantities of heroin, a Schedule I controlled substance, Schedule I controlled substances, and quantities of fentanyl and cocaine base, Schedule II controlled substances. The law provides for a maximum total sentence of not less than five years to not more than 40 years in prison, a fine not to exceed $5,000,000 or both.
The third indictment charges David Loveings, 66, of Pittsburgh, PA with violating federal narcotics laws. According to the Indictment, from July 2019 through October 2019, Loveings conspired to possess with intent to distribute and distribute 28 grams or more of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack, a Schedule II controlled substance. The law provides for a maximum total sentence of not less than five years to not more than 40 years in prison, a fine of $5,000,000 or both.
The fourth indictment charges Jason Malos, 36, of North Versailles, PA with violating federal narcotics and firearms laws. According to the two-count Indictment, from on or about July 31, 2019 to on or about November 19, 2019, Malos conspired to possess with the intent to distribute and distribute 40 grams or more of fentanyl. The Indictment also alleges that on or about November 19, 2019, Malos, a convicted felon, possessed a firearm and ammunition. Federal law prohibits a convicted felon from possessing a firearm or ammunition. For the narcotics charge, the law provides for a maximum total sentence of not less than five years and not more than 40 years in prison, a fine of not more than $5,000,000 or both. For the firearm charges, a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000, or both.
The final indictment charges Andrew Welty, 28, of Everson, PA with violating federal narcotics laws. According to the one-count Indictment, from July 24, 2019 to November 19, 2019, Welty conspired with persons both known and unknown to possess with intent to distribute and did distribute quantities of fentanyl, a Schedule II controlled substance and heroin, a Schedule I controlled substance. The law provides for a maximum total sentence of not less than five years to not more than 40 years in prison, a fine not to exceed $5,000,000 or both.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant(s).
Assistant United States Attorneys Brendan T. Conway and Brian M. Czarnecki are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Monroeville Police Department, the Attorney General’s Office, the Drug Enforcement Agency’s Maryland Officer, and the Allegheny County Police Department conducted the investigation leading to the Indictment in this case.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.