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Thursday 13 February 2020
Chinese Telecommunications Conglomerate Huawei and Subsidiaries Charged in Racketeering Conspiracy and Conspiracy to Steal Trade SecretsRead the Press Release
WASHINGTON – A superseding indictment was returned yesterday in federal court in Brooklyn, New York, charging Huawei Technologies Co., Ltd. (Huawei), the world’s largest telecommunications equipment manufacturer, and two U.S. subsidiaries with conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO).
The 16-count superseding indictment also adds a charge of conspiracy to steal trade secrets stemming from the China-based company’s alleged long-running practice of using fraud and deception to misappropriate sophisticated technology from U.S. counterparts.
The indicted defendants include Huawei and four official and unofficial subsidiaries — Huawei Device Co., Ltd. (Huawei Device), Huawei Device USA Inc. (Huawei USA), Futurewei Technologies, Inc. (Futurewei) and Skycom Tech Co. Ltd. (Skycom) — as well as Huawei’s Chief Financial Officer (CFO) Wanzhou Meng (Meng).[1] The new superseding indictment also contains the charges from the prior superseding indictment, which was unsealed in January 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; John C. Demers, Assistant Attorney General of the Justice Department’s National Security Division; and Christopher A. Wray, Director, Federal Bureau of Investigation (FBI), announced the charges.
Mr. Donoghue thanked the FBI, Homeland Security Investigations (HSI), U.S. Department of Commerce Office of Export Enforcement (OEE) and the Defense Criminal Investigative Service (DCIS) agents who are investigating this case for their tireless work and dedication.
As revealed by the government’s independent investigation and review of court filings, the new charges in this case relate to the alleged decades-long efforts by Huawei, and several of its subsidiaries, both in the U.S. and in the People’s Republic of China, to misappropriate intellectual property, including from six U.S. technology companies, in an effort to grow and operate Huawei’s business. The misappropriated intellectual property included trade secret information and copyrighted works, such as source code and user manuals for internet routers, antenna technology and robot testing technology. Huawei, Huawei USA and Futurewei agreed to reinvest the proceeds of this alleged racketeering activity in Huawei’s worldwide business, including in the United States.
The means and methods of the alleged misappropriation included entering into confidentiality agreements with the owners of the intellectual property and then violating the terms of the agreements by misappropriating the intellectual property for the defendants’ own commercial use, recruiting employees of other companies and directing them to misappropriate their former employers’ intellectual property, and using proxies such as professors working at research institutions to obtain and provide the technology to the defendants. As part of the scheme, Huawei allegedly launched a policy instituting a bonus program to reward employees who obtained confidential information from competitors. The policy made clear that employees who provided valuable information were to be financially rewarded.
Huawei’s efforts to steal trade secrets and other sophisticated U.S. technology were successful. Through the methods of deception described above, the defendants obtained nonpublic intellectual property relating to internet router source code, cellular antenna technology and robotics. As a consequence of its campaign to steal this technology and intellectual property, Huawei was able to drastically cut its research and development costs and associated delays, giving the company a significant and unfair competitive advantage.
When confronted with evidence of wrongdoing, the defendants allegedly made repeated misstatements to U.S. officials, including FBI agents and representatives from the U.S. House Permanent Select Committee on Intelligence, regarding their efforts to misappropriate trade secrets. Similarly, the defendants engaged in obstructive conduct to minimize litigation risk and the potential for criminal investigations, including the very investigation that led to this prosecution.
The superseding indictment also includes new allegations about Huawei and its subsidiaries’ involvement in business and technology projects in countries subject to U.S., E.U. and/or U.N. sanctions, such as Iran and North Korea – as well as the company’s efforts to conceal the full scope of that involvement. The defendants’ activities, which included arranging for shipment of Huawei goods and services to end users in sanctioned countries, were typically conducted through local affiliates in the sanctioned countries. Reflecting the inherent sensitivity of conducting business in jurisdictions subject to sanctions, internal Huawei documents allegedly referred to such jurisdictions with code names. For example, the code “A2” referred to Iran, and “A9” referred to North Korea.
Huawei employees also allegedly lied about Huawei’s relationship to Skycom, falsely asserting it was not a subsidiary of Huawei. The company further claimed that Huawei had only limited operations in Iran and that Huawei did not violate U.S. or other laws or regulations related to Iran. In fact, the indictment alleges Skycom was Huawei’s unofficial subsidiary that, among other services, assisted the Government of Iran in performing domestic surveillance, including during the demonstrations in Tehran in 2009.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The government’s investigation is ongoing. Individuals with knowledge of misconduct by Huawei, its subsidiaries, employees or agents should contact the FBI’s New York Field Office at 1-800-CALL-FBI.
The investigation is being jointly conducted by the FBI’s New York Field Office, HSI’s New York Field Office, OEE’s New York Field Office and DCIS’s Southwest and Northeast Field Offices. Agents from the FBI, HSI and OEE offices in Dallas provided significant support and assistance. The government’s case is being handled by the U.S. Attorney’s Office for the Eastern District of New York, the Justice Department Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and the Justice Department National Security Division’s Counterintelligence and Export Control Section (CES).
Assistant U.S. Attorneys Alexander A. Solomon, Julia Nestor, David K. Kessler and Sarah Evans, MLARS Trial Attorneys Laura Billings and Christian Nauvel and CES Trial Attorneys Thea D. R. Kendler and David Lim are in charge of the prosecution, with assistance provided by Assistant U.S. Attorney Brendan G. King of the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York and Trial Attorneys Margaret O’Malley and John Riesenberg of DOJ’s Office of International Affairs. Additional Criminal Division and National Security Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Northern District of Texas, the Northern District of Illinois, the Eastern District of Texas, the Western District of Washington and the Northern District of California have provided valuable assistance with various aspects of this investigation.
The Defendants:
Huawei Technologies Co. Ltd.
Huawei Device Co., Ltd.
Huawei Device USA Inc.
Futurewei Technologies, Inc.
Skycom Tech Co. Ltd.
E.D.N.Y. Docket No. 18-CR-457 (AMD)
[1] The superseding indictment charges other individuals who have not yet been apprehended and whose names will not be publicly released at this time.
Centre County Man Sentenced to 18 Months’ Imprisonment for Income Tax EvasionRead the Press Release
WILLIAMSPORT—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeremy Snyder, age 43, of State College, Pennsylvania, was sentenced on February 10, 2020, by U.S. District Court Judge Matthew W. Brann to 18 months’ imprisonment followed by two years on supervised release, for income tax evasion.
According to United States Attorney David J. Freed, as an employee of Number One Cycle Centre, in Centre County, Snyder embezzled over $800,000 from the business between 2009 and 2016. Snyder failed to pay income tax on the funds he embezzled, resulting in a tax loss of approximately $211,000 and a total of $222,000 in additional penalties and interest due the IRS.
The case was investigated by the Internal Revenue Service. Assistant U.S. Attorney Scott R. Ford prosecuted the case.
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Cedar Rapids Man Involved in Large-Scale Heroin Ring Found Guilty After Jury TrialRead the Press Release
A federal jury found a man who conspired with other people to sell heroin in Cedar Rapids guilty on February 12, 2020, after a jury trial.
Devontae Horton, age 25, from Cedar Rapids, Iowa, was found guilty after a three day jury trial. The jury found Horton guilty of conspiring to distribute 100 grams or more of heroin and distribution of heroin.
Evidence at trial showed that between approximately June 2015 and April 2019, Horton, and up to twelve others, conspired to distribute heroin in the Cedar Rapids area. The group was known as the “Ferrari” group. The members used one phone number, known as the “Ferrari phone,” to arrange and conduct heroin transactions. At times, ten to twenty people a day called the phone for the sole purpose of purchasing heroin. In October 2018, Cedar Rapids police officers attempted to stop a vehicle occupied by Horton and another member of the Ferrari group, Jarel Williams. Horton and Williams attempted to get away from police, eventually running on foot. Police caught up with both men and located over $3,000 in cash in Horton’s front pocket. The cash was drug proceeds. In November 2018, investigators utilized a confidential source to arrange a purchase of heroin. The source contacted Jarel Williams at what was believed to be the “Ferrari phone.” Williams agreed to sell the source a half gram of heroin. Horton arrived instead and provided the confidential source approximately a half gram of heroin for $80. Evidence showed that Horton and Williams had operated like this on at least five other occasions. Multiple witnesses testified that Horton had provided them heroin in the past.
The case was prosecuted by Assistant United States Attorneys Ashley Corkery and Elizabeth Dupuich and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration, the Iowa Division of Narcotics Enforcement, Cedar Rapids Police Department, Marion Police Department, and the Linn County Sheriff’s Office.
Horton is being held in the United States Marshal’s custody until he can be sentenced. A sentencing date has not yet been set. Jarel Williams previously pled guilty to conspiring to distribute 1,000 grams or more of heroin and distribution of heroin. Williams will also be sentenced at a later date. Six other members of the group were also charged for their involvement. All six previously pled guilty and are awaiting sentencing.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-45.
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Burglary and Firearm Theft Leads to Prison Sentences for Three Members of Menominee Indian Tribe of WisconsinRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that three members of the Menominee Indian Tribe of Wisconsin received sentences for their roles in the theft of a firearm from a residence on the Menominee Indian Reservation. The sentences, imposed by Senior United States District Judge William C. Griesbach, were the result of guilty pleas to the following charges:
Defendant
Charge of Conviction
Sentencing date
Months of Prison
Months of Supervised Release
Brett L. O’Kimosh (age: 42), of Keshena, WI
Possession of a Firearm by a Felon
02/13/2020
36
36
Anthony Boyd (age: 23), formerly of Green Bay, WI
Aiding or Abetting a Burglary
08/26/2019
18
36
Mary Ann Dodge (age: 33), of Shawano, WI
Aiding or Abetting a Burglary
08/26/2019
18
36
According to court filings, the defendants agreed to burglarize the Keshena residence of a relative. The three then drove to the residence. Once there, Boyd assisted O’Kimosh, who stole a rifle from inside the house. A resident inside the home chased the three away before they could steal more property, and Dodge drove the other two away. The three traveled to a home in Neopit, where they traded the rifle for drugs.
When imposing sentence, Judge Griesbach noted the serious nature of the conduct, the abuse of trust involved in taking advantage of a family member, and the need to deter others who would consider similar conduct.
The case was investigated by the Menominee Tribal Police Department and Federal Bureau of Investigation. Assistant United States Attorney Andrew J. Maier prosecuted the case.
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Bronx, New York, Man Admits Role in Conspiracy to Distribute Heroin and Fentanyl from Drug Mill in the BronxRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, U.S. Attorney Craig Carpenito announced.
Daury Contreras Ulerio, 35, a/k/a “Majimbou,” pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Dilson Vazquez Genao, 23, Eddie Urena Rodriguez, 35, Francisco Mercedes Gil, 31, and Jose Antonio Vazquez Pena, a/k/a “Tono,” 47, also of the Bronx, New York, all have pleaded guilty before Judge Salas to the same charges previously.
Two other individuals – Jhan Carlos Capellan Maldonado, 31, and Reimon Genao Rosario, 23 – were indicted on the same charge as Ulerio in August 2019. Their cases are pending.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned that Maldonado used an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, but all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
Each defendant faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing for Ulerio is scheduled for May 27, 2020.
U.S. Attorney Craig Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Health Care Fraud Unit in Newark.
The charge and allegations contained in the indictment against Maldonado and Rosario are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Bristol Man Sentenced to 4 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JAYSON BRUNO, 36, of Bristol, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 48 months of imprisonment, followed by four years of supervised release, for gun and drug offenses.
According to court documents and statements made in court, law enforcement identified Bruno as a significant cocaine trafficker in Bristol. On April 17, 2019, investigators arrested Bruno after a court-authorized search of his Colony Street residence revealed a 9mm semi-automatic pistol, a stolen .45 caliber semi-automatic pistol, approximately 55 grams of cocaine, approximately 30 grams of crack cocaine, and items used to process and package narcotics for distribution.
Bruno’s criminal history includes multiple state felony convictions related to the possession and sale of narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Bruno has been detained since his arrest. On November 13, 2019, he pleaded guilty to one count of possession of a firearm by a convicted felon, and one count of possession with intent to distribute cocaine base (“crack”) and cocaine.
This investigation was conducted by the Drug Enforcement Administration’s Hartford Task Force and the Connecticut State Police Statewide Narcotics Task Force. The DEA Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. This case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Brighton Man Convicted of Child Pornography OffensesRead the Press Release
BOSTON – A Brighton lawyer was convicted on Tuesday, Feb. 11, 2020, by a federal jury in Boston of receipt and possession of child pornography.
Hanford Chiu, 29, was convicted of one count each of receipt and possession of child pornography. Chiu was arrested and charged in August 2018.
During a search of Chiu’s residence in Brighton on Aug. 22, 2018, a forensic analysis of Chiu’s custom-built desktop computer revealed over 23,000 images and videos of child pornography. Chiu had accessed child pornography files as recently as the morning law enforcement agents executed the federal search warrant at his home.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 20 years in prison. Both charges also provide for a minimum of five years to life of supervised release, and a fine of up to $250,000 fine. 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 Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorneys Anne Paruti and Adam Deitch of Lelling’s Major Crimes Unit are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Berkeley County man admits to drug possessionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Walter Lee Evans, of Hedgesville, West Virginia, has admitted to a drug distribution charge, U.S. Attorney Bill Powell announced.
Evans, age 48, pled guilty to one count of “Possess with Intent to Distribute Heroin.” Evans admitted to having heroin in April 2019 in Berkeley County.
Evans faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Belton Man Pleads Guilty to Child Pornography After His Lost Cell Phone is Found at a Truck StopRead the Press Release
KANSAS CITY, Mo. – A Belton, Missouri, man whose lost cell phone containing child pornography was found at a truck stop, pleaded guilty in federal court today.
Christopher Lee Caven, 39, pleaded guilty before U.S. Magistrate Judge John T. Maughmer to receiving child pornography over the internet.
By pleading guilty today, Caven admitted that he used his cell phone to receive child pornography via Kik, an online sharing application.
Caven’s cell phone was found at the Flying J Truck Plaza in Peculiar, Missouri, on March 5, 2017. The person who found the cell phone was unable to locate the owner and attempted to conduct a factory reset of the phone in order to set it up for his own use. In the process, however, he discovered a large amount of child pornography in the photo folder and contacted law enforcement.
Investigators found 402 video files of child pornography and 302 images of child pornography on Caven’s cell phone. Many of the images depicted children as young as toddlers posed in sexual positions or being sexually violated by others.
Under the terms of today’s plea agreement, the government and Caven agree to recommend to the court a sentence between 15 years and 18 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Beaver County Man Sentenced to 5 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A resident of Freedom, Pennsylvania, has been sentenced in federal court to 60 months’ imprisonment and 5 years of supervised release on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Adam Hosie, age 25, of Freedom, Pennsylvania.
According to information presented to the court, on July 12, 2018, Hosie possessed images and videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, the Indiana County District Attorney’s Office, and the Western Pennsylvania Violent Crimes Against Children Task Force for the investigation leading to the successful prosecution of Hosie.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bank Insider Pleads Guilty to BriberyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the guilty plea of VICTOR PHILLIPS for conspiracy to commit bank bribery. PHILLIPS pled guilty before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, banker Victor Phillips conspired to facilitate the laundering of what he believed were the proceeds of criminal activity. Thanks to the FBI, Phillips now awaits sentencing for his crime.”
According to the allegations in the Indictment, court filings, and statements made during court proceedings:
Between at least June 2019 and September 2019, PHILLIPS, who was employed at an Atlanta-area branch of a national bank (“Bank-1”), opened bank accounts in the names of shell companies and fictitious persons in exchange for a percentage of fraud proceeds that others laundered through those accounts. PHILLIPS, in exchange for bribe payments, opened one of these laundering accounts at the behest of a codefendant, who plotted to move approximately $2 million in fraud proceeds through PHILLIPS’s corruptly established account. PHILLIPS, along with his co-conspirators, were ultimately identified and arrested in the course of a money laundering investigation overseen by the Federal Bureau of Investigation’s (“FBI”) New York Money Laundering Investigation Squad.
PHILLIPS, 39, pled guilty to one count of conspiracy against the United States, which carries a maximum punishment of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for June 4, 2020, at 2:00 p.m., before U.S. District Judge William H. Pauley III, to whom the case is assigned.
Mr. Berman praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Jonathan E. Rebold, and Andrew A. Rohrbach are in charge of the prosecution.
Bakersfield and Florida Residents Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Fayth Shamariah Jones, 22, of Bakersfield; Jonte Deon Scott Jr., 23, of Port Richey, Florida; and Donald Conferlete Carney Jr., 22, of Tarpon Springs, Florida, charging all three defendants with conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, the defendants were traveling north on State Route 99 in Merced County when law enforcement officers attempted to stop the vehicle. The driver began driving at speeds reaching up to 120 miles per hour. After approximately 10 minutes, the officers cornered the vehicle in a cul-de-sac. A search of the vehicle revealed more than 24 kilograms of methamphetamine.
This case is the product of an investigation by the California Highway Patrol, the Merced Area Gang/Narcotics Enforcement Team (MAGNET), Homeland Security Investigations, and the Merced District Attorney’s Office. Assistant U.S. Attorney Michael W. Redding is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Armed drug trafficker and convicted felon heads to prisonRead the Press Release
CORPUS CHRISTI, Texas - A 31-year-old Mathis man has been ordered to federal prison for trafficking meth and illegally possessing a firearm, announced U.S. Attorney Ryan K. Patrick.
Scott McCarty pleaded guilty Nov. 21, 2019.
Today, U.S. District Judge Nelva Gonzales Ramos handed McCarty a total 200-month sentence to be immediately followed by five years of supervised release. He also received an additional 120 months for the firearms offense which will run concurrently.
On or about July 26, through approximately Aug. 26, 2019, McCarty and Parris Olivarez were involved in a conspiracy to possess with intent to distribute meth. The couple had distributed the narcotics from their house in Mathis on two separate occasions.
Law enforcement conducted a search warrant, resulting in the discovery of meth as well as two firearms, including a .45 caliber 1911 and 9mm Smith & Wesson found in and under their bed.
McCarty has prior felony convictions in Texas for failure to register as a sex offender and burglary of a habitation and is, therefore, prohibited from possessing a firearm or ammunition per federal law.
McCarty was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Olivarez, 29, Mathis, had also pleaded guilty and was previously sentenced to 120 months in federal prison to be followed by five years of supervised release.
Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Department of Public Safety and sheriff’s offices in San Patricio and Jim Wells Counties conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Armed Fentanyl Trafficker SentencedRead 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 Lattrell Terry, 25, of Rochester, NY, who was convicted of possessing with intent to distribute fentanyl, and possession of a firearm with an altered or obliterated serial number, was sentenced to 57 months in prison by U.S. District Court Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Matthew T. McGrath, who handled the case, stated that during a routine search, members of the Monroe County Probation Department located drugs and drug packaging material in the defendant’s Rexford Street residence. As a result, probation officers reached out to Rochester Police officers who obtained a search warrant for the residence. During the search, officers recovered approximately 474 baggies of fentanyl and 92 baggies of heroin, all packaged for re-sale. Additionally, officers recovered a loaded semi-automatic pistol with a defaced serial number that had been reported stolen out of the State of Florida. Cocaine and marijuana were also located throughout the residence, as well as $3,316 in cash.
The sentencing is the result of an investigation by the Monroe County Department of Probation, under the direction of Chief Probation Officer Larry Mattle, the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Alleged Nine Trey Bloods Gang Member Indicted for Drug-Related MurderRead the Press Release
NEWPORT NEWS, Va. – A federal grand jury returned an indictment today charging an alleged Bloods gang member with January 2017 murder.
According to the indictment, Dawhan Terrell Archible, 26, formerly of Newport News, and two unnamed co-conspirators, allegedly murdered Luke Patterson Dudley in January 2017, after Archible learned Dudley had cheated him during a previous drug transaction.
Archible is charged with use of a firearm resulting in death, conspiracy to interfere with commerce by robbery, attempt to interfere with commerce by robbery, conspiracy to possess with intent to distribute cocaine, and distribution of cocaine. If convicted, he faces a maximum penalty of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Steve R. Drew, Chief of Newport News Police made the announcement. Assistant U.S. Attorneys Lisa R. McKeel and Howard J. Zlotnick are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-015.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Alien Smugglers Sentenced to Prison for Seizing an Illegal Alien in DistressRead the Press Release
TUCSON, Ariz. – On February 10, 2020, U.S. District Judge Rosemary Marquez sentenced Johnson Ortiz, 23, of Sells, to 80 months in prison and Regina Ramon, 29, of Sells, to 60 months, in prison. Both Ortiz and Ramon previously pleaded guilty on September 4, 2019, to their involvement in Harboring Illegal Aliens for Profit, with Ortiz also pleading to a statutory endangerment enhancement.
On March 18, 2019, the victim, a distressed illegal alien who was walking along the road on the Tohono O’odham Indian Reservation, in Sells, was contacted by persons driving a red SUV. They asked what he was doing on the road, and the victim said, “Help me, please. Hospital.” Using a translator app, the occupants of the red SUV agreed to take the victim to the hospital, but instead took him to Ortiz’s and Ramon’s house. Despite repeated requests for medical attention, Ortiz and Ramon kept the victim at their house and, via a translator app, asked him who in the United States would pay for his further transportation into the United States. While at the house, Ortiz robbed the victim of his wallet, cell phone, and identification at knifepoint. On March 20, 2019, the victim escaped out of a window and was found by a patrolling Tohono O’odham Police officer, who took the victim to the hospital and called Homeland Security Investigations (HSI). After meeting with the victim at the hospital, Special Agents obtained a federal search warrant for the house where the victim had been held and discovered six additional illegal aliens, one an unaccompanied minor, the victim’s belongings, and the knife used during the robbery while searching the house. Each of the illegal aliens found in the house stated that they had made arrangements to be smuggled further into the United States and were to pay upon their arrival at their final destinations.
“We commend the alert and responsive work of the Tohono O’odham Police officer and his collaboration with H.S.I. in the investigation of the case,” said United States Attorney Michael Bailey. “This case highlights the danger human smugglers present to vulnerable people.”
“This is yet another example of the dangers of illegally crossing the border. Human smugglers pray on people for the sole purpose of profit and in this case, they callously disregarded the victim’s plea for help and continued to abuse him for additional financial gain,” said Scott Brown, special agent in charge for the HSI office in Phoenix. “HSI is at the forefront of investigating these human smuggling organizations that attempt to plague the southwest border. Our message is clear, human smugglers will not find refuge in Arizona.”
The investigation in this case was conducted by Homeland Security Investigations with the assistance of the Tohono O’odham Police Department. The prosecution was handled by Serra M. Tsethlikai and Alicia Renee Robertson, Assistant U.S. Attorneys, District of Arizona, Tucson.
Wednesday 12 February 2020
Worcester Man Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – A Worcester man pleaded guilty yesterday to charges of tax evasion and failing to file tax returns.
Leonard Ngunjiri a/k/a Leonard Gitonga, 50, pleaded guilty to one count of tax evasion and five counts of failure to file a tax return. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 4, 2020. Ngunjiri was charged by indictment in September 2019.
Ngunjiri attempted to evade paying taxes for tax years 2006-2008 and 2011 by concealing his assets, directing his paychecks into bank accounts held in the names of others and using accounts in other individuals’ names for business and personal expenses. In addition, Ngunjiri did not file federal income tax returns from 2013 through 2017 despite making income in excess of the minimum filing requirements.
The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release and a fine of $100,000. The charge of failure to file tax returns provides for a sentence of up to one year in prison, one year of supervised release and a fine of $25,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
Wetzel County man admits to distributing heroinRead the Press Release
WHEELING, WEST VIRGINIA – Caleb McCune, of New Martinsville, West Virginia, has admitted to selling heroin, U.S. Attorney Bill Powell announced.
McCune, age 24, pled guilty to one count of “Aiding and Abetting the Distribution of Heroin in Proximity to a Protected Location.” McCune admitted to working with another to sell heroin near Bruce Park in Wetzel County in April 2019.
McCune faces up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Wagoner Man Sentenced to 39 Months for ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Robert Leroy Dennington, age 36, of Wagoner, Oklahoma, was sentenced to 39 months’ imprisonment, and 3 years of supervised release for Conspiracy, in violation of Title 18, United States Code, Section 371. The charges arose from an investigation by the Wagoner Police Department and the United States Secret Service.
The Indictment alleged that beginning on or about April 12, 2019, and continuing until April 13, 2019, in the Eastern District of Oklahoma, the defendant knowingly and intentionally conspired and agreed with others both known and unknown to the grand jury, to commit offenses against the United States in violation of Title 18, United States Code, Section 472, namely, Uttering Counterfeit Obligations of the United States.
United States Attorney Brian J. Kuester said, “Counterfeiters can very quickly do a lot of harm to a community by injecting worthless currency into unsuspecting local businesses. Fortunately for the City of Wagoner and the surrounding areas an alert business owner and a prompt and thorough investigation by the Wagoner Police, with the assistance of the United States Secret Service, this scheme came to an abrupt halt.”
United States Secret Service Special Agent in Charge Glenn M. Dennis said, “The US Secret Service relies on our close partnership with state and local agencies like the Wagoner Police Department in the ongoing effort to suppress counterfeit currency. Counterfeiting affects all levels of commerce both locally and internationally but can be especially devastating to small business where a significant loss can cripple an operating budget. Effective law enforcement partnerships leading to successful prosecution sends a strong message that our community will not tolerate these type of criminal offenses.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Clay Compton represented the United States.
Utica Man Sentenced to 60 Months for Receipt and Possession of Child PornographyRead the Press Release
UTICA, NEW YORK – James Caruso, age 57, of Utica, was sentenced today to 60 months in prison for receiving and possessing child pornography. 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).
As part of his guilty plea, Caruso admitted that he purchased and received images and videos of child pornography from a foreign website. A search of Caruso’s laptop computer revealed that he possessed 131 videos and 32 images depicting child pornography.
United States District Judge David. N. Hurd also imposed a 10-year term of supervised release, which will start after Caruso is released from prison. As a result of his conviction, Caruso will be required to register as a sex offender upon his release from prison.
Caruso’s case was investigated by HSI and the New York State Police. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
United States Reaches Settlement with Utah State University to Address Sexual Harassment and Sexual Assault of StudentsRead the Press Release
Today the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of Utah announced a settlement agreement with Utah State University (“USU” or the “University”) to ensure the University responds adequately to sexual harassment, including sexual assault, of students in its education programs and activities.
“Sexual harassment and violence have no place on college campuses, and too often deny students their right to an equal education. No student should feel unsafe because of a school’s failure to address sexual violence and its devastating impacts,” said Assistant Attorney General Eric Dreiband. “We look forward to working with USU to implement this agreement and to ensure that students can learn in a safe and healthy environment.”
“Utah schools should be free of discrimination, including sexual harassment and sexual assault. When such misconduct occurs, schools must know how to respond appropriately,” said John W. Huber, U.S. Attorney for the District of Utah. “We are pleased that USU has joined with us as a partner in these efforts.”
The settlement, when fully implemented, will resolve the Department’s compliance review of USU under Title IX of the Education Amendments of 1972 (Title IX), which prohibits sex discrimination in education programs and activities receiving federal financial assistance. The Department initiated the review in 2017 based on allegations that the University failed to respond to numerous reports of serious student-on-student sexual assault. USU is a recipient of financial assistance from the Department.
The Department reviewed USU’s policies, procedures, and responses to sexual harassment complaints over a more than four-year period and concluded that the University did not comply with Title IX. The agreement announced today details specific steps USU has agreed to take to improve its investigation and resolution of sexual harassment complaints, help students, faculty, and staff understand their reporting options, duties, and obligations with respect to sexual harassment, and ensure that members of the campus community know where to go for resources and support.
Under the agreement, USU will:
- revise its notice of nondiscrimination and all other relevant sexual harassment policies, procedures, and practices;
- respond promptly, equitably, and adequately to known sexual harassment that has created a hostile environment;
- train students and employees on University policies and federal laws pertaining to sexual harassment, how and to whom they can report allegations of sexual harassment and retaliation, details on the resources available and how to access them, and the University’s Title IX grievance procedures and potential outcomes;
- conduct climate surveys to collect information on students’ understanding of USU’s reporting procedures, the effectiveness of the University’s outreach, education, and prevention efforts, and the incidence of sexual harassment and related retaliation; and
- ensure the individuals designated to administer and coordinate Title IX efforts receive adequate training, resources, and support necessary to coordinate these efforts effectively.
The Department will monitor compliance with the terms of the agreement, which will be in effect through the 2022-2023 academic year.
Combating sex discrimination in education is a top priority of the Department of Justice’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
United States Reaches Settlement with Utah State University to Address Sexual Harassment and Sexual Assault of StudentsRead the Press Release
SALT LAKE CITY – Today the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of Utah announced a settlement agreement with Utah State University (“USU” or the “University”) to ensure the University responds adequately to sexual harassment, including sexual assault, of students in its education programs and activities.
“Sexual harassment and violence have no place on college campuses, and too often deny students their right to an equal education. No student should feel unsafe because of a school’s failure to address sexual violence and its devastating impacts,” said Assistant Attorney General Eric Dreiband. “We look forward to working with USU to implement this agreement and to ensure that students can learn in a safe and healthy environment.”
“Utah schools should be free of discrimination, including sexual harassment and sexual assault. When such misconduct occurs, schools must know how to respond appropriately,” said John W. Huber, U.S. Attorney for the District of Utah. “We are pleased that USU has joined with us as a partner in these efforts.”
The settlement, when fully implemented, will resolve the Department’s compliance review of USU under Title IX of the Education Amendments of 1972 (Title IX), which prohibits sex discrimination in education programs and activities receiving federal financial assistance. The Department initiated the review in 2017 based on allegations that the University failed to respond to numerous reports of serious student-on-student sexual assault. USU is a recipient of financial assistance from the Department.
The Department reviewed USU’s policies, procedures, and responses to sexual harassment complaints over a more than four-year period and concluded that the University did not comply with Title IX. The agreement announced today details specific steps USU has agreed to take to improve its investigation and resolution of sexual harassment complaints, help students, faculty, and staff understand their reporting options, duties, and obligations with respect to sexual harassment, and ensure that members of the campus community know where to go for resources and support.
Under the agreement, USU will:
- revise its notice of nondiscrimination and all other relevant sexual harassment policies, procedures, and practices;
- respond promptly, equitably, and adequately to known sexual harassment that has created a hostile environment;
- train students and employees on University policies and federal laws pertaining to sexual harassment, how and to whom they can report allegations of sexual harassment and retaliation, details on the resources available and how to access them, and the University’s Title IX grievance procedures and potential outcomes;
- conduct climate surveys to collect information on students’ understanding of USU’s reporting procedures, the effectiveness of the University’s outreach, education, and prevention efforts, and the incidence of sexual harassment and related retaliation; and
- ensure the individuals designated to administer and coordinate Title IX efforts receive adequate training, resources, and support necessary to coordinate these efforts effectively.
The Department will monitor compliance with the terms of the agreement, which will be in effect through the 2022-2023 academic year.
Combating sex discrimination in education is a top priority of the Department of Justice’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
U.S. Attorney: Deadly Fentanyl Causing Overdoses in KansasRead the Press Release
WICHITA, KAN. - A new round of drugs laced with deadly fentanyl is causing overdoses in Kansas, U.S. Attorney Stephen McAllister said.
Wichita police have reported multiple overdoses in the past few days. They suspect the problem is caused by victims consuming what look like oxycodone pills. In fact, the pills are laced with fentanyl.
“I want to add my voice to those who are sounding a warning,” McAllister said. “Buying drugs on the street is gambling with your life.”
McAllister said his office has prosecuted multiple cases in Kansas of fentanyl disguised as other drugs, including heroin and oxycodone. Users face a higher risk of overdose because fentanyl is far more powerful and dangerous than the drugs they thought they were buying. He said often dealers themselves do not what is in the drugs they are selling.
“The problem is showing up right now in Wichita,” McAllister said. “The entire state should take notice, though. This is not a problem confined to one city.”
McAllister said fentanyl is being produced in large quantities in Mexico and distributed throughout Kansas and the rest of the nation. In an op-ed Oct. 3, 2019, in the Kansas City Star, McAllister cited a case in which the Kansas Highway Patrol stopped a vehicle in Russell County, Kan., carrying more than 60 pounds of fentanyl, potentially enough to kill millions of people. See https://www.kansascity.com/opinion/readers-opinion/guest-commentary/article235719492.html
Under federal law, distributing controlled substances resulting in the death or serious bodily injury of a user can lead to federal charges with a penalty of not less than 20 years and up to life in prison.
U.S. Attorney's Office Settles ADA Case with Progressive Casualty Insurance CompanyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the government has reached a settlement agreement under the Americans with Disabilities Act of 1990 (“ADA”) with Progressive Casualty Insurance Company (“Progressive”) to ensure equal access for individuals with disabilities at all Progressive Casualty Insurance Company locations across the country.
Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public. Among other things, the ADA requires insurance agencies, financial institutions, accountants, lawyers, doctors and other businesses to provide accessible formats that are necessary for effective communication for individuals who are blind or have low vision.
This matter stems from an ADA complaint filed by an individual who is blind who alleged that Progressive failed to provide account information in an accessible format. The complainant alleges that, as a result of Progressive’s failure to provide the account information in an accessible format, his insurance with Progressive was cancelled. In resolving the complaint, Progressive has agreed to provide effective communication, including appropriate auxiliary aids and services, at all of its insurance agency locations in the U.S., and to amend its policies, practices and training to ensure the removal of barriers to access at its locations. Progressive also will compensate the complainant in the amount of $1,000.
“Individuals who have disabilities must not be denied equal access to the services offered by insurance companies simply because of their disability,” said U.S. Attorney Durham. “Since the commencement of this investigation, Progressive has worked cooperatively to develop and amend its policies and practices to comply with the ADA and the Justice Department’s implementing regulations. This settlement reflects Progressive’s commitment to equal access and effective communication with its customers who have disabilities.”
This matter was handled by Assistant U.S. Attorney Ndidi N. Moses of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Any member of the public who wishes to file a complaint alleging that a business that serves the public, or a public entity, in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
Two SCDC Inmates Sentenced to Decades in Federal Prison for Roles in Separate Drug Trafficking RingsRead the Press Release
Columbia, South Carolina --- Acting United States Attorney A. Lance Crick announced today that Glenn Quanta Pernell, 41, and Joseph Umphlett, Sr., 39, both inmates in the South Carolina Department of Corrections (SCDC), have been sentenced in federal court for their roles in separate major drug trafficking rings run from inside prison walls using contraband cell phones.
“Because of uncontrolled access to contraband cell phones, inmates already serving lengthy state sentences for serious drug convictions were able to continue bringing deadly, addictive drugs into our communities,” said Acting U.S. Attorney Crick. “The U.S. Attorney’s Office is proud to lock arms with the Department of Corrections and our local, state, and federal law enforcement partners to protect both the general public and the prison population from the public safety threat caused by contraband phones.”
“These inmates were able to commit crimes while behind bars because of contraband cell phones,” said Bryan Stirling, Director of the S.C. Department of Corrections. “I am grateful to the U.S. Attorney’s office and our law enforcement partners for bringing these men to justice.”
Glenn Quanta Pernell was sentenced to life in federal prison after jury convicted him of conspiracy to possess with intent to distribute and to distribute cocaine, cocaine base, and heroin, in addition to several other drug-related charges. During an 8-day trial in August 2019, the jury heard hours of recorded conversations between Pernell and his coconspirators. According to the evidence at trial, agents of the Federal Bureau of Investigation’s Columbia Violent Gang Task Force (CVGTF) began investigating several Columbia-based drug dealers in 2016. Wiretaps on their phones revealed that the dealers were being supplied cocaine and heroin from an organization in Marion County.
The leader of that organization was Pernell, an inmate serving two 25-year consecutive state sentences for drug trafficking. Pernell employed a network of people, including his mother, Hattie Pernell, and his sister, Whitney Pernell, to purchase drugs from his Mexican drug suppliers, to deliver drugs to his customers, and to collect and store drug proceeds from the sales. Pernell ran his operation from within prison walls at Lieber Correctional Institution, using contraband cell phones to direct and oversee the daily operations of the organization.
FBI Special Agent in Charge Jody Norris stated, "Today's sentencing is the culmination of a comprehensive and coordinated drug trafficking investigation by the FBI and our dedicated partners. These law enforcement professionals proved again drug trafficking enterprises operating anywhere in South Carolina will be met with a committed cadre of Agents, Officers and Deputies that will dismantle the trafficking network and bring those behind it to account."
This case was investigated by the FBI’s CVGTF, which is comprised of law enforcement officers from the FBI, South Carolina Law Enforcement Division, Columbia Police Department, Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Lexington Police Department, Marion County Sheriff’s Department, Mullins Police Department, and the South Carolina National Guard, and with assistance from the South Carolina Department of Corrections and the Drug Enforcement Administration. Assistant United States Attorneys Jane B. Taylor, Benjamin N. Garner, and Christopher D. Taylor of the Columbia office prosecuted the case.
Joseph Umphlett, Sr., was sentenced to 20 years in federal prison after pleading guilty to conspiring to possess with intent to distribute and to distribute heroin and methamphetamine. His federal sentence will be served consecutive to a separate life sentence he is serving in SCDC.
Evidence presented in the case established that on October 1, 2015, Umphlett was sentenced in Berkeley County General Sessions Court to life without parole for trafficking methamphetamine, his third serious drug conviction in state court. While serving his life sentence in Lieber Correctional Institution, Umphlett began using contraband cell phones to lead a drug trafficking organization responsible for distributing large quantities of heroin and methamphetamine throughout Charleston, Berkeley, and Dorchester Counties. During the course of the investigation, law enforcement seized over five kilograms of methamphetamine and over three kilograms of heroin. Umphlett was indicted along with 11 co-defendants, including his mother, Valerie Collins. Collins was previously sentenced to 100 months in federal prison, to be followed by three years of supervised release, for her role in the conspiracy.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division, said, “DEA is fully committed to tirelessly pursuing criminals who sell drugs, whether they’re selling them on the streets or inside a prison. This criminal was already serving time in prison for drug trafficking. He continued to sell methamphetamine and heroin while incarcerated. His criminal activity landed him even more deserving time in prison. The spirited level of law enforcement cooperation and the subsequent prosecution by the U.S. Attorney’s Office made this investigation a success.”
The case was investigated by agents of the Drug Enforcement Administration, South Carolina Law Enforcement Division, South Carolina Department of Corrections, Dorchester County Sheriff’s Office, Summerville Police Department, Berkeley County Sheriff’s Office, and Charleston County Sheriff’s Office. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted 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.
Two Defendants Sentenced in Manhattan Federal Court for International Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MARTINS APSKALNS and IGORS PIRINS were sentenced to 108 months and 66 months in prison, respectively, for their leadership roles in a broad scheme that defrauded victims of millions of dollars. APSKALNS and PIRINS previously pled guilty to conspiracy to commit bank and wire fraud before United States District Judge Jesse M. Furman, who imposed the sentences. APSKALNS was sentenced on January 31, 2020, and PIRINS was sentenced on February 10, 2020.
U.S. Attorney Geoffrey S. Berman said: “Martins Apskalns and Igors Pirins were ringleaders in an international conspiracy that victimized people who thought they were buying classic cars on legitimate internet auction and trading sites. They admitted to bilking millions of dollars from their victims, and now they are both headed to prison for their crimes.”
According to the allegations in the Indictments, other documents filed in federal court, and statements made in public court proceedings:
From at least January 2016 through December 2018, the defendants participated in a fraudulent scheme that most commonly operated as follows: First, co-conspirators impersonated automotive dealers and collectors and claimed to be selling classic cars on various well-known internet auction and trading websites. Victims responding to the ads were in fact corresponding with a fraud scheme participant. After the victims and co-conspirators came to terms on a sale price, including down payment and shipping costs, victims were next directed to purported automotive transportation companies and were told that these companies would accept payment and transport the cars. These companies were in fact shell corporations established by the conspiracy to help perpetrate the fraud, whose corporate bank accounts were established and controlled by the defendants and co-conspirators, awaiting wired funds from the fraud’s victims. After victims had wired payment, the defendants and co-conspirators went to the banks to drain the victim’s funds, often starting the same day payment had been transmitted, withdrawing from different bank branches in numerous withdrawals on the same day, and withdrawing in denominations that were varied and often kept to an amount that they believed would prevent the financial institutions from recording and reporting the fraud. The defendants and other co-conspirators then sent the fraud proceeds outside the United States to Eastern European countries, from where the defendants and many of their co-conspirators originated. Some of the defendants maintained managerial roles, recruiting co-conspirators to participate and providing directions and victim information to scheme participants once the co-conspirators were inside the United States. Victims never received the goods they believed they had purchased, and many were unable to recover their money or were left paying loans for cars that were never truly for sale.
APSKALNS and PIRINS served as managers in this scheme, who, in addition to opening bank accounts of their own that received victim funds, directed and coordinated the activities of cells of co-conspirators in the United States. APSKALNS and PIRINS continued their criminal activity and management role when they left the United States and returned to Latvia.
APSKALNS and PIRINS were arrested in Latvia in November 2018. At the time of their arrest, evidence recovered from APSKALNS revealed that he was continuing to direct co-conspirators until the time of his arrest. This information led to the arrest of four co-conspirators in the United States as they attempted to flee the United States from John F. Kennedy airport. APSKALNS and PIRINS were extradited to the United States in December 2018.
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In addition to their prison terms, APSKALNS was also sentenced to three years of supervised release, ordered to pay $4,952,172.37 in restitution, and ordered to forfeit $164,900.04. PIRINS was also sentenced to three years of supervised release, ordered to pay $3,095,000.94 in restitution, and ordered to forfeit $166,251.94.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, Customs and Border Protection, and the New York City Police Department.
The investigation was conducted in close cooperation with the International Cooperation Department and the Criminal Investigation Department of the Central Criminal Police Department, State Police of Latvia; Prosecutor’s General Office of Latvia, International Cooperation Division; Police Department of Lithuania, Vilnius County Police Headquarters, Crimes Against Property Board; Lithuanian Criminal Police Bureau, International Liaison Board; Prosecutor General’s Office of the Republic of Lithuania; Vilnius Regional Prosecution Office; and the National Bureau of Investigation of Finland. The Department of Justice’s Criminal Division’s Office of International Affairs also provided significant assistance.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Matthew Hellman, Emily Johnson, and Daniel Nessim are in charge of the prosecution.
Three Oklahoma Residents Sentenced for Passing Counterfeit Money in South DakotaRead the Press Release
United States Attorney Ron Parsons announced that two men and a woman from Oklahoma, convicted of Passing Counterfeit U.S. Currency, have been sentenced by Judge Jeffrey L. Viken, U.S. District Court.
Michael Glenn Ogden, age 38, was sentenced on December 18, 2019, to 41 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Marcus Paul Franklin, age 46, was sentenced on January 27, 2020, to 41 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Mary Allen Autry, age 42, was sentenced on February 7, 2020, to 30 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. The amount of restitution owing has been deferred for 90 days.
The three were indicted by a federal grand jury in March 2018. The charges related to the trio using printers, paper, and chemicals to convert legitimate $10 U.S. currency bills into counterfeit $100 U.S. currency bills. Using this equipment, they manufactured and passed thousands of dollars of counterfeit U.S. $100 bills in South Dakota and other states.
This case was investigated by the Rapid City, South Dakota, Police Department and the U.S. Secret Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Ogden, Franklin, and Autry were immediately turned over to the custody of the U.S. Marshals Service after their respective sentencings.
The Honorable Douglas H. Ginsburg to Receive Justice Department's 2020 John Sherman AwardRead the Press Release
The Antitrust Division of the Department of Justice will present Judge Douglas H. Ginsburg with the John Sherman Award for his lifetime contributions to the development of antitrust law and the preservation of economic liberty. Judge Ginsburg will deliver remarks and receive the award during a ceremony on May 8, 2020, in the Great Hall of the Robert F. Kennedy Department of Justice Building.
“Judge Ginsburg’s role in the advancement of antitrust law and policy cannot be overstated,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “It is a privilege for the division to recognize his career and achievements with this award. Judge Ginsburg’s leadership in the Antitrust Division, as well as his incisive and cogent scholarship, has brought sound economic analysis to the forefront of antitrust law. His contributions have greatly improved the ability of antitrust law to protect consumer welfare and to spur economic growth.”
Created in 1994, the John Sherman Award is presented by the Justice Department's Antitrust Division to a person or persons for outstanding contributions to the field of antitrust law, the protection of American consumers, and the preservation of economic liberty.
Judge Ginsburg received his undergraduate degree from Cornell University and his J.D. from the University of Chicago. Following law school, Judge Ginsburg clerked for Judge Carl McGowan of the U.S. Court of Appeals for the D.C. Circuit and for U.S. Supreme Court Justice Thurgood Marshall. He joined the faculty at Harvard Law School from 1975 to 1983, before serving as the Deputy Assistant Attorney General for Regulatory Affairs, Antitrust Division, U.S. Department of Justice, from 1983 to 1984; Administrator, Information and Regulatory Affairs, OMB, from 1984 to 1985; and Assistant Attorney General, Antitrust Division, U.S. Department of Justice, from 1985 to 1986. Judge Ginsburg was appointed to the U.S. Court of Appeals for the District of Columbia Circuit in November 1986 and served as Chief Judge from July 2001 until February 2008. Concurrent with his service on the federal bench, Judge Ginsburg has taught at the University of Chicago Law School and the New York University School of Law. He is currently a Professor of Law at the Antonin Scalia Law School, George Mason University, and a visiting professor at the University College London, Faculty of Laws.
Judge Ginsburg’s efforts to incorporate economic analysis in antitrust enforcement is instrumental to how agencies and practitioners approach antitrust law today. Of his many notable contributions, Judge Ginsburg elevated the role of economic analysis in antitrust enforcement by expanding the Division’s economics section and by creating the position of the Deputy Assistant Attorney General for Economic Analysis during his tenure as the Assistant Attorney General of the Antitrust Division. Through his work with the Global Antitrust Institute at the Antonin Scalia Law School, Judge Ginsburg is renowned for helping international enforcers and judges apply economic insights in competition law. Judge Ginsburg’s jurisprudence and scholarship further reflect the intellectual rigor that has marked his distinguished career. He was an influential judge on the landmark United States v. Microsoft case in 2001, and the case remains foundational to understanding competition in high-tech markets. Judge Ginsburg’s scholarship is widely admired, and his academic works — ranging in topic from the application of antitrust law in a changing economy to the effects of extra-jurisdictional remedies — tackle complex questions and continue to influence students, enforcers, and practitioners alike.
The award is named for the author of the Sherman Act of 1890, the nation's first and foremost antitrust law. John Sherman, a former congressman and senator, also served as Secretary of the Treasury from 1877 to 1881 and as Secretary of State from 1897 to 1898. Previous recipients have included Diane P. Wood (2015), James F. Rill (2012), Robert Pitofsky (2010), Herbert Hovenkamp (2008), Robert H. Bork (2005), Richard A. Posner (2003), Milton Handler (1998), Thomas Kauper and William Baxter (1996), Phillip Areeda (1995), and Howard Metzenbaum (1994).
Tennessee Man Arrested for Engaging in Multi-Year Cyberstalking and Computer Hacking CampaignRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of TRISTAN ROWE, a/k/a “Angus,” for engaging in a years-long campaign of cyberstalking, harassment, and computer intrusions against multiple New York City residents and a high school. ROWE was arrested today in Tennessee and presented before a United States Magistrate Judge in U.S. District Court for the Western District of Tennessee.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Tristan Rowe terrorized a victim from hundreds of miles away by ‘swatting’ – having police respond to a purported emergency at the victim’s residence. Rowe also allegedly sent disturbing text messages to the victim, threatening to buy an assault rifle, to kill the victim, and to bomb the victim’s school. Thanks to the NYPD, Rowe is now in custody and facing serious criminal charges.”
NYPD Commissioner Dermot Shea said: “These allegations are a reminder of the threats posed by malicious cyber activity. I commend our NYPD investigators, and federal partners, for remaining vigilant in collaborating to thwart Internet-facilitated crime.”
According to the allegations in the Complaint[1] unsealed yesterday in Manhattan federal court:
From 2015 through 2019, ROWE engaged in a persistent online stalking and harassment campaign that targeted a particular victim (referred to as “Victim-2” in the Complaint), and involved illegally accessing online accounts belonging to Victim-2 and friends and family members of Victim-2, and obtaining unauthorized access to the computer systems of Victim-2’s former high school.
Among other things, ROWE sent threatening text messages to Victim-2, including a text message containing a photograph of a large kitchen knife and text messages that stated, in sum and substance, “You don’t deserve to live.” ROWE also sent Victim-2 a map with a detailed route mapped out from Tennessee to Victim-2’s home address in the Bronx, New York.
ROWE also subjected Victim-2 and friends and family members of Victim-2 to multiple “swatting” incidents at their homes. “Swatting” refers to a harassment tactic of deceiving an emergency service into sending a police or emergency service response team to another person’s address. As a result, on multiple occasions, armed police officers responded to false reports of emergency situations at Victim-2’s home. ROWE sent text messages to Victim-2 referencing this harassment, including messages reading, in sum and substance, “u wanna get swatted,” “even better I’ll swat the nypd,” and recognized the safety risks posed by swatting, warning Victim-2 that “your choice u can wind up dead cause the armoured cops will come raid u.”
As part of this harassment campaign, ROWE also compromised the grading system and online educational platform used by Victim-2’s high school. A search of ROWE’s computer, conducted pursuant to a judicially authorized search warrant, revealed that ROWE possessed student grading information taken from Victim-2’s high school, as well as hundreds of usernames and passwords associated with the high school.
In addition, ROWE conducted a number of computer intrusions of government and private sector websites. Evidence obtained from ROWE’s computer indicated that he had launched, or was planning to launch, unauthorized intrusions of various websites, including an inmate tracking website used by federal and local law enforcement, a website for a state Department of Motor Vehicles, a police department website, and the website for a hospital in the Bronx, New York.
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ROWE is charged with one count of cyberstalking, which carries a maximum sentence of five years in prison, and one count of unauthorized access to a computer, which carries a maximum sentence of five years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD in this case.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Dina McLeod is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Tax preparer sentenced to federal prison for cheating IRS out of $2.6 millionRead the Press Release
ATLANTA – Thomas Holmes has been sentenced to federal prison for preparing and filing hundreds of fraudulent federal tax returns for his clients. Holmes was the owner of TKO Tax Pros, a tax preparation business in Austell, Georgia.
“Holmes stole $2.6 million by claiming false deductions and credits on his clients’ tax returns over a number of years,” said U.S. Attorney Byung J. “BJay” Pak. “Tax preparers who cheat the IRS and skim off the top of their clients’ tax refunds can look forward to spending tax seasons behind bars. As this tax season approaches, preparers should be warned that the government diligently finds and prosecutes this kind of fraudulent conduct.”
“With the April 15 tax deadline looming, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today,” said Andrew M. Thornton, Jr., Acting Special Agent in Charge of the Atlanta Field Office. “This sentencing of Thomas Holmes again emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system.”
According to U.S. Attorney Pak, the charges and other information presented in court: Holmes was identified by Internal Revenue Service - Criminal Investigation (IRS-CI) as potentially filing fraudulent returns through his tax business, TKO Tax Pros. The investigation revealed that between 2011 and 2019, Holmes prepared and filed thousands of federal income tax returns, and on hundreds of the returns, he listed false information, including false Schedule C business losses and false Schedule A itemized deductions, causing taxpayers to claim millions of dollars in refunds that they were not entitled to. When the IRS issued those refunds, Holmes frequently kept a portion of the fraudulent refunds for himself and paid the balance to his clients. During the investigation, the IRS revoked Holmes’ e-filing privileges, but Holmes continued to file fraudulent returns through the mail.
Thomas Holmes, 41, of Austell, Georgia, has been sentenced to three years, one month in prison, two years of supervised released, and he was ordered to pay $2,601,957 in restitution to the IRS. Holmes pleaded guilty to these charges on September 6, 2019.
The Internal Revenue Service Criminal Investigation investigated this case.
Assistant U.S. Attorney Annalise K. Peters prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
T&A Crips gang members plead guilty to murder in aid of racketeeringRead the Press Release
COLUMBUS, Ohio – Three Columbus men pleaded guilty today as part of a gang-related racketeering conspiracy. Each of the men accepted responsibility for their roles in three separate murders.
Two other defendants have also agreed to plead guilty in this case and will appear before the Court next month.
The five men are part of 19 defendants charged as members and associates of the Trevitt and Atcheson Crips gang known as T&A.
The gang derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly reside.
Beginning in June 2010, T&A members and associates conspired in a racketeering enterprise and engaged in murders, attempted murders, drug trafficking, firearms trafficking, witness tampering, robbery, assault and other crimes.
The gang controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.
Specifically, co-conspirators are charged with five murders:
the murder of Franky Tention on July 1, 2012, in the area of 431 Ellison Street;
the murder of William Moore on March 15, 2013;
the murder of Marvin Ector on December 23, 2013, on East 5th Avenue;
the murder of Quincy Story on January 24, 2015; and
the murder of Deaonte Fisher on March 4, 2016.
Terrell Hansard, 22, also known as “T Body,” pleaded guilty in U.S. District Court today to participating in a racketeering conspiracy, conspiring to traffic drugs and murder in aid of racketeering. Hansard accepted responsibility for his role in the March 2016 murder of 7-year-old Deaonte Fisher. The boy was a bystander in a shooting between rival gang members.
Hansard also distributed and possessed with the intent to distribute between 280 and 840 grams of crack cocaine as part of T&A’s West Virginia drug operation.
Brandon Martin, 27, also known as “Gunner,” pleaded guilty to participating in the racketeering conspiracy and murder in the aid of racketeering. According to his court documents, Martin shot and killed rival gang member William Moore in March 2013 on Mount Vernon Avenue. Martin was involved in another gunfight the next day, shooting at a number of other rival gang members and striking one of them.
Charles Carson, 24, also pleaded guilty today in federal court in Columbus. Carson pleaded guilty to participating in the racketeering conspiracy and took responsibility for the January 2015 murder of Quincy Story. Carson shot and killed Story on S. James Road in Columbus. Story was perceived as disrespecting a fallen associate of a T&A subgroup called Waun Gang.
Plea agreement documents have been filed on behalf of two other T&A defendants: Deswan “Dezzy” Robinson and Michael Watson.
Robinson has offered to accept responsibility for his role in the murder of William Moore in March 2013. The Court will consider his plea at a hearing on March 11.
Watson has agreed to plead guilty to participating in a racketeering conspiracy and conspiring to distribute controlled substances, including responsibility for his role in the December 2013 murder of Marvin Ector. He is scheduled to appear before the Court on March 18.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Columbus Police Chief Tom Quinlan; United States Marshal Pete Tobin and Franklin County Prosecutor Ron O’Brien announced the pleas. Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton are representing the United States in this case.
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Statement from U.S. Attorney Lelling Regarding Court’s Decision in U.S. v. Brissette and SullivanRead the Press Release
“An impartial jury, following legal instructions written by the Court, voted unanimously to convict these two men. We are disappointed by this decision and will review our options.”
Six KCMO Employees Plead Guilty to $58,000 Overtime Pay Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Six employees of the Kansas City, Missouri, public works department have pleaded guilty to their roles in a nearly three-year-long conspiracy to collect $58,000 in fraudulent overtime pay.
Prentis M. Rayford, 37, Eric McKamey, 47, and Edward Lee Ellingburg, 48, all of Kansas City, Missouri, pleaded guilty today in separate appearances before U.S. District Judge Brian C. Wimes to participating in a conspiracy to commit wire fraud. Co-defendants Paul Myers, 62, Kenneth Gethers, 34, and Julio Prospero, 49, all of Kansas City, Missouri, have also pleaded guilty to their roles in the wire fraud conspiracy.
All of the defendants were employees of the city of Kansas City, in the Public Works Sign Division. The federal indictment alleges they participated in a conspiracy from January 2013 to Nov. 30, 2016, to receive more than $58,000 in overtime pay as a result of material false and fraudulent representations.
Among their responsibilities, these city employees replaced and repaired traffic signs that were missing or damaged. Certain signs, like stop signs, yield signs, one-way signs, and do not enter signs, are considered essential signs. The public can report a problem with an essential sign by calling the traffic operations dispatch or the 311 Action Center. When those reports are made after hours or on weekends, the city’s Public Works Sign Division calls in employees who are willing to work overtime. When an employee is called back after regular working hours or on the weekend, a minimum overtime of four hours is earned, regardless of how long it takes to resolve the issue. Overtime pay is time-and-a-half of the employee’s usual pay.
The defendants admitted they called in damaged signs after hours, called in signs that were not damaged, and had friends and relatives call in reportedly damaged signs, all in order to generate callouts for themselves and other employees. Conspirators submitted timesheets and work orders for callouts stating that they went to the location of the damaged sign and fixed it, when in fact they did not. They also submitted timesheets and work orders for callouts when signs were actually damaged, but were not fixed until the following normal work day.
Four of the defendants – Rayford, McKamey, Ellingburg, and Prospero – acquired a Voice Over Internet Protocol (VoIP) phone application, which disguised their phone number when they called the 311 Action Center.
A supervisor at the Public Works Sign Division suspected in the summer of 2016 that employees were fraudulently creating and claiming overtime for callouts which were unnecessary or even false. Management arranged to be contacted when calls regarding downed signs were made to the 311 Action Center or traffic operations dispatch. Employees or their relatives often made the calls regarding downed signs themselves. Managers would go to the scene, usually before the employee, and photograph the sign. Often all the signs were up. Occasionally, a sign was down but was not repaired until the following workday. Managers tracked the GPS on work trucks, the indictment says, and often found that the trucks did not go to the location of the supposedly downed sign. Sometimes GPS indicated the trucks went to the location but either did not stop or did not stop long enough to repair a sign.
The internal investigation lasted from Aug. 23, 2016, to Nov. 13, 2016. During that time, approximately 75 percent of all callouts were found to be fraudulent. The city then reported its findings to the FBI for further investigation.
Rayford admitted he submitted work orders that falsely claimed he maintained or installed stop signs on five occasions. McKamey admitted he submitted work orders that falsely claimed he maintained or installed stop signs on 10 occasions. Ellingburg admitted he submitted work orders that falsely claimed he maintained or installed stop signs on three occasions. Myers admitted he submitted work orders that falsely claimed he maintained or installed stop signs on four occasions. Gethers admitted he submitted work orders that falsely claimed he maintained or installed stop signs on five occasions. Prospero admitted he submitted work orders that falsely claimed he maintained or installed stop signs on four occasions. Under the terms of their plea agreements, each defendant must forfeit to the government any proceeds he obtained from the conspiracy to commit wire fraud.
Under federal statutes, each of the defendants is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Kate Mahoney and Rudolph R. Rhodes IV. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Seven South Dakota Residents Sentenced in Meth Distribution ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that seven South Dakotans have been sentenced by U.S. District Judge Karen E. Schreier for their roles in a large-scale methamphetamine conspiracy.
Justin Robert Christensen (age 31) of Sioux Falls; Nicholas Scott Flier (age 26) of Valley Springs; Paris Bryn Koller (age 26) of Pierre; Brandon Alan Watters (age 25) of Sioux Falls; Kasie Mae Vogt (age 31) of Armour; Amanda Leigh Wieman (age 32) of Sioux Falls; and Tanya Jeanette Andrews (age 44) of Pierre, were indicted for conspiracy to distribute a controlled substance by a federal grand jury on May 8, 2019. Christensen was also indicted for being a felon in possession of a firearm and conspiracy to launder monetary instruments. Each defendant was charged for their role in conspiring to distribute a mixture and substance containing 500 grams or more of methamphetamine.
Flier, Koller, Watters, Vogt, Wieman, and Andrews entered guilty pleas to conspiracy to distribute a controlled substance and were each sentenced in late 2019 to 120 months in custody, followed by five years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund. Christensen pled guilty to conspiracy to distribute a controlled substance and conspiracy to launder monetary instruments in September 2019. On February 10, 2020, Christensen was sentenced to 280 months in custody, followed by 10 years of supervised release. He was also ordered to pay $200 to the Federal Crime Victims Fund.
The investigation revealed that Christensen received over ten pounds of methamphetamine in the U.S. Mail that he had ordered from the Dark Web. Christensen distributed the methamphetamine to his co-defendants and others, so they could sell the drugs to their own customers. Christensen utilized various bank accounts and Bitcoin accounts to conceal the nearly $200,000 he amassed from the sale of methamphetamine.
This case was investigated by the Homeland Security Investigations, the U.S. Postal Inspection Service, and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
All defendants have been remanded to the custody of the U.S. Marshals Service.
Seven Defendants Plead Guilty to Defrauding Federal Program That Provided Technology Funding for Rockland County SchoolsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the guilty pleas of all seven defendants previously charged with defrauding the federal “E-Rate” program, designed to provide information technology to underprivileged schools, in connection with private religious schools in Rockland County, New York. PERETZ KLEIN, SUSAN KLEIN, SIMON GOLDBRENER, MOSHE SCHWARTZ, BEN KLEIN, SHOLEM STEINBERG, and ARON MELBER, each pled guilty in White Plains federal court to one count of conspiring against the United States.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Each of these defendants has now admitted his or her role in a massive scheme that stole millions of dollars from the E-Rate program. That money should have been spent to help educate underprivileged children. Instead, it went to line the defendants’ pockets. Now they will answer for their crimes.”
According to the allegations made in the Indictment and the Informations to which the defendants pled guilty, as well as the defendants’ admissions in court:
The E-Rate program distributes funds to schools and libraries mostly serving economically disadvantaged children, so that those institutions can afford needed telecommunication services, internet access, and related equipment. Over 30,000 applications from schools and libraries seeking funds to serve economically disadvantaged children were received each year during the relevant time period; every year, requests for E-Rate funds have exceeded funds available. In order to obtain those funds, educational institutions certify that they are purchasing equipment and services from a private vendor; if approved, the program defrays the cost by up to 90%. The educational institution is supposed to enter into an open bidding process in order to select a vendor, and the educational institution and vendor submit a series of certifications that they comply with a number of requirements of the E-Rate program. A school applying for E-Rate funds may employ a consultant, but that consultant must be independent of the vendors competing to sell E-Rate funded equipment and services.
The schools at issue in this case never received millions of dollars’ worth of these items and services for which the defendants billed the E-Rate program. In other cases, the schools and the defendants requested hundreds of thousands of dollars of sophisticated technology that served no real purpose for the student population. For example, from 2009 through 2015, one day care center that served toddlers from the ages of 2 through 4 requested over $700,000 – nearly $500,000 of which was ultimately funded – for equipment and services – including video conferencing and distance learning, a “media master system,” sophisticated telecommunications systems supporting at least 23 lines, and high-speed internet – from companies controlled by certain defendants. In still other instances, the schools received equipment and services that fulfilled the functions for which the schools had requested E-Rate funds (such as providing the school with internet access), but the schools and the defendants materially overbilled the E-Rate program for the items provided, in order to enrich themselves at the expense of the underprivileged children the program was designed to serve.
The defendants also perverted the fair and open bidding process required by the E‑Rate program. Defendants who held themselves out as independent consultants working for the schools in truth worked for and were paid by other defendants who controlled vendor companies. These defendants presented the schools with forms to sign or certify, awarding E-Rate funded contracts to companies owned by several defendants. As a result of false and misleading filings, the defendants received millions of dollars in E-Rate funds for equipment and services that they did not in fact provide and which the schools did not use, and the defendants purporting to act as consultants accepted payments totaling hundreds of thousands of dollars from the vendors, despite falsely presenting themselves as independent of the vendors.
In return for their participation in the scheme to defraud the E‑Rate program, certain schools and school officials received a variety of improper benefits from certain defendants , including: a percentage of the funds fraudulently obtained from E-Rate for equipment and services that were not in fact provided to the schools; free items paid for with E-Rate funds but not authorized by the program, such as cellphones for school employees’ personal use and alarm systems and security equipment (which the E-Rate program does not authorize) installed at the schools; and free services for which the E-Rate program authorizes partial reimbursement (such as internet access) but for which the Schools did not – contrary to their statements in filings – make any payment at all.
PERETZ KLEIN, SUSAN KLEIN, BEN KLEIN, and SHOLEM STEINBERG held themselves out as vendors to schools participating in the E‑Rate program. Corporations controlled by these defendants requested over $35 million in E‑Rate funds, and received over $14 million in E‑Rate funds, from in or about 2010 to in or about 2016. Each of these defendants has now admitted that the companies they controlled did not in fact provide much of the equipment for which they billed the federal government.
SIMON GOLDBRENER and MOSHE SCHWARTZ held themselves out as consultants who worked for educational institutions, supposedly helping schools to participate in the E-Rate program by, among other things, holding a fair and open bidding process to select cost-effective vendors. GOLDBRENER and SCHWARTZ have now admitted that they were in fact paid hundreds of thousands of dollars by the vendors to complete and file false E-Rate documents that circumvented the bidding process and resulted in the payment of millions of dollars to the vendors.
ARON MELBER was an official at a private religious school in Rockland County, New York, that participated in the E-Rate program with some of the defendants. MELBER has now admitted that he filed false certifications with the E-Rate program, falsely claiming to have obtained authorized E‑Rate funded equipment and services from vendors selected through a fair and open bidding process.
Each defendant pled guilty to one count of a conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum sentence of five years in prison and a $250,000 fine. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentence for each defendant will be determined by United States District Judge Kenneth M. Karas, to whom the case is assigned.
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PERETZ KLEIN, 66, of Spring Valley, New York, pled guilty today before United States Magistrate Judge Judith McCarthy. As part of his plea agreement, PERETZ KLEIN also agreed to forfeit $1,144,288.37, and to pay restitution of the same amount. PERETZ KLEIN is scheduled to be sentenced by Judge Karas on June 17, 2020.
SUSAN KLEIN, 59, of Spring Valley, New York, also pled guilty today before Judge McCarthy. As part of her plea agreement, SUSAN KLEIN also agreed to forfeit $1,144,288.37, and to pay restitution of the same amount. SUSAN KLEIN is scheduled to be sentenced by Judge Karas on June 17, 2020.
SIMON GOLDBRENER, 57, of Monsey, New York, pled guilty on February 3, 2020, before United States Magistrate Judge Paul E. Davison. As part of his plea agreement, GOLDBRENER also agreed to forfeit $479,357.18, and to pay restitution of the same amount. GOLDBRENER is scheduled to be sentenced by Judge Karas on June 8, 2020.
MOSHE SCHWARTZ, 46, of Monsey, New York, pled guilty on February 6, 2020, before Judge Davison. As part of his plea agreement, SCHWARTZ also agreed to forfeit $275,160.00, and to pay restitution of the same amount. SCHWARTZ is scheduled to be sentenced by Judge Karas on June 8, 2020.
BEN KLEIN, 41, of Monsey, New York, pled guilty on January 24, 2020, before United States Magistrate Judge Lisa Margaret Smith. As part of his plea agreement, BEN KLEIN also agreed to forfeit $412,586.37, and to pay restitution of the same amount. BEN KLEIN is scheduled to be sentenced by Judge Karas on May 22, 2020.
SHOLEM STEINBERG, 41, of Monsey, New York, pled guilty on January 30, 2020, before Judge McCarthy. As part of his plea agreement, STEINBERG also agreed to forfeit $191,423.50, and to pay restitution of the same amount. STEINBERG is scheduled to be sentenced by Judge Karas on May 12, 2020.
ARON MELBER, 44, of Monsey, New York, pled guilty on January 30, 2020, before Judge McCarthy. As part of his plea agreement, STEINBERG also agreed to forfeit $127,654.55, and to pay restitution of the same amount. STEINBERG is scheduled to be sentenced by Judge Karas on May 8, 2020.
Mr. Berman thanked the Federal Bureau of Investigation, the Federal Communications Commission - Office of the Inspector General, and the Rockland County District Attorney’s Office for their outstanding work on the investigation. This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Michael D. Maimin, Hagan Scotten, and Vladislav Vainberg are in charge of the prosecution.
Savannah man sentenced to federal prison for attempted sex trafficking of a childRead the Press Release
SAVANNAH, GA: A Savannah man will spend a decade in prison for attempting to traffic a child for sexual exploitation.
Steven Andrew Ross, 30, of Savannah, was sentenced to 120 months in prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Attempted Sex Trafficking of a Minor, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Ross will be required to serve 10 years of supervised release after completion of his prison sentence. There is no parole in the federal system.
“Child predators continue to pollute the online atmosphere, creating a dangerous environment in what otherwise should be safe access to the information superhighway,” said U.S. Attorney Christine. “Our office and our dedicated law enforcement partners continue to be relentless in pursuit of those who would target innocent children for exploitation.”
Ross was charged in Operation Broken Heart, a nationwide Department of Justice operation conducted in April and May of 2019 by the Internet Crimes Against Children Task Force, in which nearly 1,700 suspected online child sex offenders were arrested. Also charged in the Southern District of Georgia was Benjamin Ray, 39, of Honea Path, S.C., who pled guilty and is awaiting sentencing.
Evidence presented at sentencing showed that Ross was communicating online with an undercover agent that he believed to be a 14-year-old girl. While repeatedly confirming the girl’s age, Ross expressed interest in paying the child to have sex, requested photos of the child engaging in sex with others, and sought to produce child pornography with the child.
“Sex trafficking, enabled by the Internet, continues to be a serious threat facing our nation’s youth and Savannah is not immune from that threat,” said Acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama. “HSI will continue to collaborate with our law enforcement partners in the Georgia Internet Crimes Against Children (ICAC) Task Force to unmask these child predators who attempt to hide behind the anonymity of the Internet.”
The case was investigated by Homeland Security Investigations and the Savannah Police Department, in conjunction with the Internet Crimes Against Children Task Force, and prosecuted for the United States by Assistant U.S. Attorney Tania D. Groover.
Sand Springs Man Sentenced to 10 Years for Attempted Coercion and Enticement of a MinorRead the Press Release
TULSA, Okla. – A man who believed he was communicating online with a 13-year-old girl but in reality was messaging law enforcement officers was sentenced today in federal court, announced U.S. Attorney Trent Shores.
Chief U.S. District Judge John E. Dowdell sentenced Thomas Kyle Williams, 40, of Sand Springs, to 120 months in federal prison to be followed by five years of supervised release for attempted coercion and enticement of a minor. Williams pleaded guilty on Nov. 12, 2019.
From March 21, 2019, to June 10, 2019, Williams used his cell phone and two social media apps to attempt to coerce an individual he believed to be a minor into engaging in sex acts with him. In reality, Williams was speaking to a Tulsa Police Department Cyber Crimes Unit detective, and he was later arrested after he arranged to meet the “minor” on June 10, 2019.
“Child predators like Thomas Williams think the apparent anonymity of the Internet can hide their identity along with their perverse motives and deeds. But they are mistaken. The dedicated men and women of law enforcement are on the job and protecting our children,” said U.S. Attorney Trent Shores. “I commend Assistant U.S. Attorney Jeff Gallant, the Tulsa Police Department, and the Federal Bureau of Investigation for this child exploitation investigation and prosecution. Justice was served today.”
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Jeffrey A. Gallant prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.justice.gov/psc. Internet safety education can be found on the tab labeled "resources” on the left column of the page.
Saint Louis Man Sentenced to 17 Years for Shooting Federal OfficerRead the Press Release
Saint Louis, MO – Daryaun Wines, 27, of Saint Louis County, MO, was sentenced to 17 years in prison on one count of discharging a firearm in furtherance of assaulting a federal law enforcement officer. Wines appeared today before U.S. District Judge John A. Ross who imposed the sentence.
According to court documents, Wines and an associate, Johnzell Moorehead, were travelling inside a vehicle in the early morning hours of October 12, 2017. Wines and Moorehead were being followed by two additional associates who were in a separate vehicle. Federal Bureau of Investigation Special Federal Officer Archie Shaw was on-duty and, as part of an on-going investigation, began to follow the second of the two vehicles. Special Federal Officer Shaw was utilizing an unmarked law enforcement vehicle.
Wines and Moorehead noticed Special Federal Officer Shaw’s vehicle. Wines and Moorehead split-up from their other associates (who were being followed by Special Federal Officer Shaw). The vehicle being followed by Special Federal Officer Shaw led Special Federal Officer Shaw to the intersection of Miami and Iowa streets within the City of Saint Louis. As Special Federal Officer Shaw drove through the intersection, Wines and Moorehead shot Special Federal Officer Shaw. Wines and Moorehead traveled to that location for the purpose of committing the shooting.
Special Federal Officer Shaw’s vehicle was struck several times by the gunfire. Special Federal Officer Shaw himself was also struck by gunfire. After being shot, Special Federal Officer Shaw was able to drive himself to safety. Wines and his associates fled the area.
"We cannot lose sight of the many threats awaiting dedicated members of law enforcement every day. FBI Special Federal Officer Shaw is the paramount example of a courageous officer dedicated to his work and community. He is lucky to be alive, and we are so grateful that he is. This was an unconscionable ambush. Today’s stiff sentence makes clear that this type of conduct will never go unchecked by the Department of Justice," said Assistant United States Attorney Thomas Rea after today's proceeding.
Moorehead will be sentenced on February 13, 2020.
The Saint Louis Metropolitan Police Department, with the assistance of the Federal Bureau of Investigation, investigated this case.
Rapid City Woman Charged with Theft of Government FundsRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman has been indicted by a federal grand jury for Theft of Government Funds, False Statement, and Misuse by a Representative Payee.
Jolenta Apodaca, f/k/a Jolenta American Horse, age 42, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund for the Theft of Government Funds charge. The maximum penalty upon conviction for the other charges is 5 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Apodaca knowingly converting to her own use money of the U.S. Social Security Administration and making false statements on non-medical review forms on February 13, 2018, and February 28, 2019, as Representative Payee for her minor child’s Supplemental Security Income benefits. Apodaca stated that her minor child resided with her, when in fact the child had not resided with her since 2016. Apodaca received benefits, intended for the child, totaling approximately $26,920 from these false statements.
The charges are merely accusations and Apodaca is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of the Inspector General – Social Security Administration. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Apodaca was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for April 14, 2020.
Rapid City Man Found Guilty of Firearm and Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that Jonathan Andrew Blacksmith, a/k/a Jon Andrew Blacksmith, age 44, was found guilty of 2 counts of Possession of a Firearm by a Prohibited Person, 2 counts of Possession with Intent to Distribute a Controlled Substance, and 1 count of Possession of a Firearm in Furtherance of Drug Trafficking Crime following a federal jury trial in Rapid City, South Dakota.
Each Possession of a Firearm by a Prohibited Person charge carries a maximum sentence of 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The first Possession with Intent to Distribute a Controlled Substance charge carries a mandatory minimum sentence of 5 years to not more than 40 years in federal prison. The second charge of Possession with Intent to Distribute a Controlled Substance carries a maximum sentence of 5 years in prison. The charge of Possession of a Firearm in Furtherance of Drug Trafficking Crime carries a minimum of 5 years up to life in prison.
Evidence at trial established Blacksmith, knowing he was a convicted felon, possessed a Glock 9mm pistol in Kyle, South Dakota, on February 17, 2017, and a .40 caliber pistol in Rapid City in January 2017. Blacksmith distributed 50 grams or more of methamphetamine in Kyle in February 2017. In January 2017, Blacksmith distributed methamphetamine in Rapid City while in possession of the .40 caliber pistol.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.
This case was investigated by federal, state and local agencies, including the Bureau of Indian Affairs Division of Drug Enforcement, the Pennington County Sheriff’s Office, the Rapid City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Unified Narcotics Enforcement Team (“UNET”), which is a local drug task force comprised of various agencies. Assistant U.S. Attorney Eric Kelderman prosecuted and tried the case.
A sentencing date has been set for June 22, 2020. Blacksmith was remanded to the custody of the U.S. Marshals Service pending sentencing.
Rapid City Man Charged for Assaulting Federal Officers and Conspiring to Sell MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Assault on a Federal Officer and Conspiracy to Distribute a Controlled Substance.
Uriah Lafferty, age 34, was charged on January 22, 2020. He appeared before U.S. Magistrate Judge Daneta Wollmann on February 7, 2020, and pleaded not guilty to the charges. The penalty upon conviction is a mandatory minimum of 5 years, up to 40 years, in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Lafferty assaulting three Oglala Sioux Tribe police officers, a deputy U.S. Marshal, and a South Dakota Highway Patrol trooper by trying to run them over with his vehicle in December 2019 near Hermosa, South Dakota, while they were attempting to arrest him on a federal warrant related to another case.
Additionally, between August 2014 and December 2019, Lafferty conspired with others to distribute methamphetamine.
The charges are merely an accusation and Lafferty is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Federal Bureau of Investigation, the U.S. Marshals Service, the South Dakota Highway Patrol, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Lafferty was detained pending trial. A trial date has not been set.
Randolph Man Pleads Guilty to Firearms OffensesRead the Press Release
BOSTON – A Randolph man pleaded guilty today in federal court in Boston to two firearms offenses.
Levenson Merilus, 28, of Randolph, pleaded guilty to one count of conspiracy to deal in firearms without a license and one count of making false statements to acquire firearms from a licensed dealer. U.S. District Court Judge Denise J. Casper scheduled sentencing for Feb. 11, 2021, when Merilus is set to complete the RISE Program.
Between February and March 2019, Merilus conspired with a co-defendant to purchase firearms from a licensed dealer and re-sell them for profit to individuals in Boston. Specifically, Merilus purchased at least seven guns from a licensed dealer, falsely claiming to be purchasing them for himself.
The charge of conspiring to deal in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of making false statements to acquire firearms from a licensed dealer provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Merilus is currently enrolled in the Court-run RISE (Repair, Invest, Succeed, Emerge) Program, which is designed to aid in the rehabilitation of applicable defendants who have pleaded guilty and are under pretrial supervision prior to sentencing. Their sentence is dependent upon their completion of the program and is determined at a later time.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Christopher S. Mason, Superintendent of the Massachusetts State Police, made the announcement today.
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. PSN is 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.
Randolph County man admits to child porn chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jack Carl Rice, of Elkins, West Virginia, has admitted to a child pornography charge, U.S. Attorney Bill Powell announced.
Rice, age 62, pled guilty today to one count of “Possession of Child Pornography.” Rice admitted to having images of child pornography depicting minors under the age of 12 in January 2018 in Harrison County.
Rice faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Federal Bureau of Investigation, the West Virginia State Police, and the Bridgeport Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Ramona Man Sentenced to 20 Years in Heroin Overdose DeathRead the Press Release
Assistant U. S. Attorneys Timothy Coughlin (619) 546-6768 and Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – February 12, 2020
SAN DIEGO – Maxwell Joseph Gaffney of Ramona was sentenced today by U.S. District Judge Michael M. Anello to 20 years in prison for distributing the heroin that caused the death of his 23-year-old acquaintance, Kyle Rodriguez, on February 17, 2017.
Gaffney was convicted by a federal jury on June 24, 2019.
According to evidence presented at trial, Rodriguez had returned home after an evening spent with friends. He locked himself in the family bathroom, where he ingested heroin by heating it over tin foil and inhaling the smoke, a method known as “chasing the dragon.” According to a government expert who testified at trial, “chasing the dragon” is one of the most dangerous and lethal ways of using heroin.
The overdose death was a shock to his parents, who believed Rodriguez was well on his way to a productive and happy life after almost 10 months of being clean, being gainfully employed and having a girlfriend who cared deeply for him. That night, Rodriguez’s girlfriend and parents discovered Rodriguez in the bathroom unconscious. First responders were unable to revive Rodriguez. Sheriff’s deputies observed drug paraphernalia and heroin residue near his body.
Investigators found text messages between Rodriguez and Gaffney indicating that Gaffney supplied heroin to Rodriguez on the evening of February 16, 2017, and Rodriguez had driven to Gaffney’s residence to purchase the heroin. Gaffney, who had a felony drug conviction when he was 19, was known to law enforcement as a heroin dealer. Thereafter Gaffney was contacted by law enforcement a number of times related to his criminal conduct. The investigation also revealed that Gaffney continued to sell heroin even after learning that Rodriguez overdosed and died.
“This case is a tragedy for two families,” said U.S. Attorney Robert Brewer. “One young man who had achieved 10 months of sobriety and was well on his way to a new life, has lost it. And today, with this sentence, another young man is spending a significant portion of his in prison. And their families are left with nothing but sorrow. For this reason, we will do all that we can to save other families from this fate. We will continue to aggressively fight the grip that opioids have on our country by pursuing cases against those who distribute the drugs that are causing an overdose crisis in our community. No parent should have their child taken from them by this scourge.”
The government’s sentencing papers noted that the Rodriguez family no longer has a son and a brother and they seek justice for a life cut short so that other families will not have to experience the same tragedy and grief they have endured. In a letter to the judge, Sheila Scruggs, the mother of Rodriguez, wrote, “There is not a day that goes by I don’t think of him. I feel like I’m in a nightmare that I can never wake up from. Every time I close my eyes, I’m taken back to that moment of seeing my son on the floor of our bathroom, blue and lifeless. I can hear myself yelling his name begging him to please take a breath. As a nurse, I have saved countless lives, but that early morning of February 17, 2017, I was unable to save my own child and I will have to live with that daily.”
Kyle Rodriguez’s sister, Kendra Bodkins, told the court at today’s hearing that her “social, funny and smart” brother, a motocross racer, became addicted to painkillers after his foot was crushed by an off-road vehicle. This addiction led him to heroin. “My brother never wanted to grow up to be a heroin addict. We didn’t have a broken family. We had it all and it was just a series of unfortunate events that led him down that path. But he was an amazing person, always willing to help anyone out. And he had a huge heart. This drug is constantly ruining lives and ripping families apart every single day. So I hope people can learn from our tragedy and think twice before they start using or even think about relapsing…or selling this drug.”
In July 2017, after the death of Kyle Rodriguez and others, the Sheriff's Department initiated the first overdose death response team to investigate these types of cases. Since then, a multi-agency team was created in San Diego and hosted by the Drug Enforcement Administration to investigate and prosecute overdose death cases in San Diego. The Sheriff's Department and other local law enforcement entities have delegated resources to that effort and have helped to pursue critical evidence in overdose death cases. The Sheriff's Department is working aggressively to remove these dangerous drugs from the streets and hold heroin, fentanyl and other illicit drug dealers accountable for endangering the lives of others.
“The San Diego County Sheriff's Department will continue to work with our law enforcement partners to ensure those responsible for distributing illegal drugs are held accountable,” said Lt. Michael McNeill of the Sheriff's Ramona Substation. “Today's sentencing represents a significant victory in the fight against the opioid epidemic.”
DEFENDANT Case Number 17-cr-3330-MMA
Maxwell Joseph Gaffney Age: 26 Ramona, California
SUMMARY OF CHARGE TO WHICH DEFENDANT FOUND GUILTY AFTER TRIAL
Distribution of Heroin Resulting in Death – Title 21 U.S.C. Section 841(b)(1)(C)
Maximum Penalty – Mandatory minimum 20 years to a maximum of life in prison
INVESTIGATING AGENCIES
San Diego Sheriff’s Department
San Diego Medical Examiner’s Office
Raleigh Bank Robber Sentenced to More Than 12 Years ImprisonmentRead the Press Release
GREENVILLE – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced JIMMY EARL GODFREY, 47, of Raleigh, NC, to 151 months’ imprisonment, followed by 3 years of supervised release.
GODFREY was named in an Indictment filed on July 25, 2018 charging him with three counts of Bank Robbery on February 9, 2018, February 15, 2018, and February 19, 2018. On March 11, 2019, with a written plea agreement, GODGREY pled guilty.
According to an investigation conducted by the Raleigh Police Department, on February 9, 2018, JIMMY EARL GODFREY, JR., entered Capital Bank on Six Forks Road in Raleigh, and presented a note to a teller that stated, “Give me the cash in large bills with no dye packs or trackers.” GODFREY then told the teller to, “Stay calm and do not hit the panic alarm.” The teller provided GODFREY with $1,950 in United States (U.S.) currency, which GODREY took and then fled the bank.
On February 15, 2018, GODFREY entered the BB&T Bank on Falls of Neuse Road in Raleigh, and presented a teller with a demand note that stated, “Give me the cash in large bills with no dye packs or trackers.” GODFREY advised the teller, “This is a robbery, don’t hit the alarm and don’t make it worse than it has to be, and stay calm.” The teller provided GODFREY with $2,650 in U.S. currency, and he fled the bank with the demand note.
On February 19, 2018, GODFREY entered the State Employees’ Credit Union (SECU) on Bridgeport Drive in Raleigh, and handed the teller a note that stated, “Place the money in the bag.” GODFREY set down a bank bag on the counter and stated, “No dye packs.” The teller provided GODFREY with $8,503 in U.S. currency, and GODFREY fled the bank with the note.
On March 5, 2018, GODFREY was located and arrested at a hotel in Hillsborough, NC. GODFREY confessed to committing the aforementioned bank robberies to law enforcement.
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 United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department conducted the investigation. Assistant United States Attorney Daniel William Smith represented the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Pittsburgh Woman Admits Involvement in DS44 Gang’s Drug Trafficking ActivityRead the Press Release
PITTSBURGH, PA –A resident of Pittsburgh pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
April Price, 31, pleaded guilty to one count of conspiracy to distribute or possess with intent to distribute 40 grams or more of heroin and fentanyl, before United States District Judge William S. Stickman IV. Ms. Price is one of 37 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
The court was further advised that Ms. Price was involved in the distribution of heroin and fentanyl, along with co-defendants Christopher Highsmith and Anthony Jetter.
Judge Stickman scheduled sentencing for July 14, 2020, at 10:30 am. The law provides for a total sentence of not less than five years to not more than 40 years in prison, a fine of up to $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 each defendant. Price remains detained pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office,
Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and theWilkinsburg Police Department. Other assistingagencies include the Green Tree PoliceDepartment, New YorkCityPolice Department, Mount Oliver Police Department, PennsylvaniaState Police, Yonkers Police Department,United States Marshals Fugitive Task Force, and theUnited States PostalInspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement TaskForce Program (OCDETF). The OCDETF program supplies critical federal fundingandcoordination thatallows federaland state agencies to work together to successfullyidentify,investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pittsburgh Felon Pleads Guilty to Illegally Possessing Heroin, Fentanyl and a Loaded PistolRead the Press Release
PITTSBURGH − A resident of the City of Pittsburgh pleaded guilty in federal court to violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Romello Edward Jones, age 20, pleaded guilty before United States District Judge J. Nicholas Ranjan to a two-count Indictment charging him with possessing quantities of heroin and fentanyl with the intent to distribute them, and unlawfully possessing a firearm and ammunition while knowing that he was a convicted felon. Federal law prohibits felons from possessing a firearm or ammunition.
In connection with the guilty plea, the Court was advised that on May 6, 2019, Allegheny County Probation and Parole Officers, and Pittsburgh Bureau of Police Officers, went to the Defendant’s residence to conduct a compliance check on Mr. Jones, who was on probation at that time for felony convictions relating to narcotics and firearms. While there, the officers observed the Defendant possessing a bag containing several "bricks" (approximately 400 individual dosage units) containing heroin. The officers searched the Defendant’s residence and found additional quantities of heroin and fentanyl, drug paraphernalia such as digital scales, and U.S. currency. In connection with the plea, the Defendant admitted that he possessed the quantities of heroin and fentanyl intending to distribute them. The officers also seized a loaded 9mm caliber semiautomatic pistol from the Defendant’s residence, which he admitted to possessing knowing that he had previously been convicted of a felony.
Judge Ranjan scheduled sentencing for June 10, 2020, at 10 a.m. The law provides for a total sentence of up to 30 years in prison, a fine not to exceed $2,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant. Pending sentencing, the Court ordered the continued detention of Mr. Jones.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allegheny County Adult Probation and Parole Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Mr. Jones.
Pittsburgh Felon Pleads Guilty to Illegally Possessing Heroin, Fentanyl and a Loaded PistolRead the Press Release
PITTSBURGH − A resident of the City of Pittsburgh pleaded guilty in federal court to violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Romello Edward Jones, age 20, pleaded guilty before United States District Judge J. Nicholas Ranjan to a two-count Indictment charging him with possessing quantities of heroin and fentanyl with the intent to distribute them, and unlawfully possessing a firearm and ammunition while knowing that he was a convicted felon. Federal law prohibits felons from possessing a firearm or ammunition.
In connection with the guilty plea, the Court was advised that on May 6, 2019, Allegheny County Probation and Parole Officers, and Pittsburgh Bureau of Police Officers, went to the Defendant’s residence to conduct a compliance check on Mr. Jones, who was on probation at that time for felony convictions relating to narcotics and firearms. While there, the officers observed the Defendant possessing a bag containing several "bricks" (approximately 400 individual dosage units) containing heroin. The officers searched the Defendant’s residence and found additional quantities of heroin and fentanyl, drug paraphernalia such as digital scales, and U.S. currency. In connection with the plea, the Defendant admitted that he possessed the quantities of heroin and fentanyl intending to distribute them. The officers also seized a loaded 9mm caliber semiautomatic pistol from the Defendant’s residence, which he admitted to possessing knowing that he had previously been convicted of a felony.
Judge Ranjan scheduled sentencing for June 10, 2020, at 10 a.m. The law provides for a total sentence of up to 30 years in prison, a fine not to exceed $2,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant. Pending sentencing, the Court ordered the continued detention of Mr. Jones.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allegheny County Adult Probation and Parole Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Mr. Jones.
Owner of Lewiston Counseling Agency Sentenced for Health Care FraudRead the Press Release
Portland, Maine: A Lewiston woman was sentenced today in federal court in Portland for conspiring to commit health care fraud, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Jon D. Levy sentenced Nancy Ludwig, 64, to 42 months in prison and three years of supervised release. Ludwig also was ordered to pay $660,902 in restitution to MaineCare. A jury had found Ludwig guilty of nine counts of health care fraud on June 14, 2019, after a five-day trial.
According to testimony at trial, Ludwig was the owner of Facing Change, a mental health and substance abuse counseling agency in Lewiston. Abdirashid Ahmed was a Somali interpreter. From about November 2015 until May 2018, Ludwig conspired with Ahmed and others to commit health care fraud. The evidence showed that beginning in February 2015, Ludwig agreed to pay Ahmed a kickback in return for Ahmed bringing MaineCare beneficiaries to Facing Change. Ludwig, Ahmed and other employees at Facing Change then submitted false claims to MaineCare for counseling and interpreter services. In 2016, in response to a MaineCare regulatory change, Ludwig and Ahmed conspired to change the diagnosis of many of those clients to schizophrenia so they could remain eligible to receive MaineCare reimbursement for services at Facing Change. In the fall of 2016, auditors with the MaineCare Program Integrity Unit audited Facing Change. Ludwig and many of her employees conspired to manufacture false records in an attempt to deceive the auditor. The fraud continued until May 1, 2018, when federal and state agents executed search warrants at Facing Change and Ahmed’s business.
The prosecution was the result of a three-year collaborative investigation conducted by the U.S. Department of Health and Human Services, Office of Inspector General; the FBI; and the Maine State Medicaid Fraud Control Unit. The investigation started because of the auditing work done by the MaineCare Program Integrity Unit.
Norwalk Man on Federal Supervised Release Sentenced to 7 Years in Prison for Possessing GunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SENTRELL BOOKHARDT, also known as “Scab,” 33, of Norwalk, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 84 months of imprisonment, followed by five years of supervised release, for illegally possessing a firearm and violating the conditions of his supervised release from a prior federal conviction.
According court documents and statements made in court, on January 28, 2014, Bookhardt was sentenced in Hartford federal court to 60 months of imprisonment, followed by three years of supervised release, for possessing a machine gun with an extended magazine loaded with 27 rounds of ammunition. He was released from federal prison in May 2018.
On March 29, 2019, while on federal supervised release, Bookhardt was arrested by Norwalk Police after he was found in possession of a loaded .38 caliber revolver and crack cocaine packaged for distribution. The investigation revealed that Bookhardt had been selling crack for several months prior to his arrest.
Bookhardt has been detained since his arrest. On November 20, 2019, he pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
In addition to his prior federal conviction, Bookhardt’s criminal history includes state convictions for criminal possession of a firearm, carrying a pistol without a permit, weapon in a motor vehicle, possession of narcotics, and risk of injury to a minor.
Judge Dooley sentenced Bookhardt to 60 months of imprisonment for the firearm offense, and a consecutive 24 months of imprisonment for violating the conditions of his supervised release.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Norwalk Police Department. The case was prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
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 neighborhoods safer for everyone.