Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
17 March 2020
Federal Court Finds Tampa Tax Preparer in Contempt for Violating the Court’s Preliminary and Permanent InjunctionsRead the Press Release
On March 17, 2020, a federal court in Tampa, Florida, found that Jasen Harvey and Harveys Tax Service violated preliminary and permanent injunctions that barred them from preparing, filing, or assisting in the preparation or filing of federal tax returns for others.
For that violation, the court held Jasen Harvey and Harveys Tax Service in contempt and ordered them to pay $19,550 to the United States, representing the fees Jasen Harvey and Harvey’s Tax Service received for 92 tax returns they prepared or filed in violation of the court’s injunctions. In addition, the court ordered those defendants to reimburse the government for $631.04 in travel costs the United States incurred to attend the contempt hearing held on March 13, 2020.
The United States filed a complaint against Catharine Harvey, Jasen Harvey, and Harveys Tax Service on Jan. 9, 2020. According to the complaint, the defendants prepared returns for customers seeking millions of dollars in refunds of tax purportedly withheld on fictitious income reported on fabricated Forms 1099-MISC and on bank deposits reported on fabricated Forms 1099-A. On Feb. 18, 2020, the court issued a preliminary injunction that barred the defendants from preparing returns for customers, finding that the United States offered sufficient evidence to show that defendants had a history of filing fraudulent refund claims, and were likely to continue to file fraudulent returns absent a court order to stop. The court issued a permanent ban on Feb. 24, 2020, finding the defendants “unfit” to prepare tax returns.
The court found that the United States demonstrated by clear and convincing evidence that the defendants willfully violated these court orders, which unambiguously barred the defendants from preparing returns for others. In addition to the monetary sanctions, the court ordered that it will sentence Mr. Harvey for his willful contempt at a hearing on July 9, 2020.
“This contempt action is further evidence that the IRS and the Tax Division will use all available tools to hold dishonest return preparers accountable and protect the U.S. Treasury from damage,” said Principal Deputy Assistant Attorney General Richard Zuckerman.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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.
Doctor Who Pleaded Guilty to Health Care Fraud for “Goodie Bags” Agrees to Resolve Civil Fraud and Controlled Substance Liability for $2.8 MillionRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that the United States filed a civil lawsuit against Andrew M. Berkowitz, M.D., of Huntington Valley, PA, for engaging in healthcare fraud and improperly distributing and dispensing controlled substances. The civil complaint relates to criminal charges that were previously filed against Berkowitz and for which he has pleaded guilty. At the same time the new civil suit was filed, the United States also filed a proposed civil judgment, in which Berkowitz has agreed to pay a total of $2.8 million in civil damages and penalties under the False Claims Act, Controlled Substances Act, and in civil forfeiture, committed to never obtaining another controlled substance registration, and consented to a 20-year exclusion from Medicare and Medicaid. The consent judgment remains subject to court approval.
The civil lawsuit alleges that Berkowitz, through his healthcare practice and employees, developed a scheme where his business dispensed prescription drugs, including controlled substances, to patients in what the staff referred to as “goodie bags.” Berkowitz allegedly dispensed the drugs to every patient whose insurance would cover the drugs he had in stock. The suit alleges that Berkowitz dispensed the drugs for profit without any meaningful assessment of medical necessity or whether the drugs had a legitimate medical purpose. For each “goodie bag” dispensed, Berkowitz allegedly submitted claims for reimbursement falsely asserting that the drugs were medically necessary for the patient. Berkowitz also allegedly prescribed oxycodone to “pill-seeking” patients in exchange for submitting excessive claims to patients’ insurance, including Medicare, for medically unnecessary prescription drugs and for services not rendered. The complaint notes that Berkowitz pleaded guilty to criminal charges on January 24, 2020 and admitted to these facts in court.
Berkowitz agreed to resolve this civil liability under terms outlined in the proposed consent judgment if accepted by the court. Among other things, Berkowitz would pay $2.8 million in civil damages and penalties under the False Claims Act, Controlled Substances Act, and in civil forfeiture, in addition to the $3.5 million he has already agreed to pay in criminal restitution. The proposed resolution would also permanently prevent Berkowitz from prescribing, distributing, or dispensing any controlled substances in the future and prevents Berkowitz from ever seeking another controlled substance registration from the Drug Enforcement Administration. The resolution would also impose a 20-year exclusion on Berkowitz from Medicare and Medicaid.
The civil complaint relates to the criminal charges that were previously filed against Berkowitz. On June 25, 2019, a federal grand jury returned an indictment charging Berkowitz with Health Care Fraud and Distribution of Controlled Substances outside the usual course of professional practice and without a legitimate medical purpose. On January 24, 2020, Berkowitz pleaded guilty to all charges before the Honorable Paul S. Diamond. Describing Berkowitz as a “drug dealer” who committed “prolonged and outrageous dishonesty and fraud,” Judge Diamond revoked bail and remanded him to the custody of the United States Marshal pending sentencing.
“This civil lawsuit and proposed consent judgment are critical components of ensuring that justice is done in this case,” said U.S. Attorney McSwain. “In addition to criminal charges, this civil resolution makes clear to doctors who dare engage in healthcare fraud and drug diversion that they will be held financially accountable for their illegal conduct. Our office will continue to root out healthcare fraud and drug diversion in the Eastern District of Pennsylvania in all its forms.”
“Andrew Berkowitz pushed unnecessary pills on his patients and doled out opioids to addicts,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “All the while, he was billing Medicare and insurance companies for it and making multiple millions. It’s a gross violation of both medical ethics and federal law. Alongside the criminal case, these civil actions should help hammer home to the medical community that health care fraud is a crime that truly doesn’t pay.”
“Ensuring the integrity of the Medicare and Medicaid program is a top priority,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “This settlement holds Berkowitz accountable for his misconduct and will bar him for participating in Medicare and Medicaid programs for 20 years. HHS-OIG and our law enforcement partners will continue to investigate and hold accountable those providers who chose to engage in healthcare fraud and drug diversion.”
The case was investigated by the Federal Bureau of Investigation; the Philadelphia Police Department; the U.S. Department of Health and Human Services – Office of Inspector General; the U.S. Office of Personnel Management – Office of Inspector General; and the U.S. Department of Labor – Office of Inspector General. The civil investigation, litigation, and resolution are being handled by Assistant United States Attorneys Anthony D. Scicchitano and Sarah Grieb. The related criminal charges are being prosecuted by Assistant United States Attorney M. Beth Leahy.
The amended complaint contains allegations only; except for what has been admitted in the criminal proceeding, there has been no admissions. The proposed consent judgment would resolve any alleged civil liability.
Cleveland man charged with meth and cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Clarence Maceo Carter, Jr., of Cleveland, Ohio, was indicted today on drug charges, U.S. Attorney Bill Powell announced.
Carter, also known as “Moe,” age 33, is charged with one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Possession with Intent to Distribute Cocaine Base.” Carter is accused of having methamphetamine and cocaine case, also known as “crack,” in Ohio County in February 2020.
Carter faces up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Wheeling Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Cleveland man charged with cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Michael Anthony Toler, of Cleveland, Ohio, was indicted today on a drug charge, U.S. Attorney Bill Powell announced.
Toler, age 34, is charged with one count of “Possession with Intent to Distribute Cocaine Base.” Toler is accused of having cocaine case, also known as “crack,” in Ohio County in February 2020.
Toler faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Wheeling Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Berkeley County man charged with failure to appearRead the Press Release
MARTINSBURG, WEST VIRGINIA – Walter Lee Evans, of Hedgesville, West Virginia, was indicted today on a court violation charge, U.S. Attorney Bill Powell announced.
Evans, age 49, is charged with one count of “Failure to Appear after Pre-trial Release.” In February 2020, Evans pled guilty to a heroin distribution charge. Evans was on pre-trial release in connection with that case. Evans was scheduled to appear for a hearing before Chief U.S. District Judge Gina M. Groh on March 2, 2020, but failed to appear as required.
Evans faces up to 10 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The U.S. Marshal Service investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
More about the original case and plea can be found here: https://www.justice.gov/usao-ndwv/pr/berkeley-county-man-admits-drug-possession
Appleton Man Sentenced on Methamphetamine and Ammunition ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on March 16, 2020, Kou Lee (age: 30) of Appleton, Wisconsin was sentenced to 15 years in federal prison by Senior U.S. District Judge William C. Griesbach. Kou Lee pled guilty to possessing in excess of 50 grams of methamphetamine with the intent to distribute the controlled substance and also possessed ammunition as a convicted felon, contrary to Title 21, United States Code, Sections 841(a), (b)(1)(A) and Title 18 United States Code, Section 922(g).
Judge Griesbach noted Lee’s previous criminal convictions involving methamphetamine at both the state and federal level, as well as Lee’s role “distributing poison” in the Fox Valley area in order to make “easy money.” Following his prison sentence, Lee will spend ten years on supervised release.
This case was prosecuted under the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
This case was investigated by the Lake Winnebago Area MEG Unit and the United States Probation Office for the Eastern District of Wisconsin. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
# # # #
Airman from KirtlandAir Force Base arrested for alleged illegal possession of firearm silencerRead the Press Release
ALBUQUERQUE, N.M. – Charles Brent Justice, 27, a military member assigned to Kirtland Air Force Base, New Mexico made an initial appearance in federal court in Albuquerque today on a charge of possession of a firearm silencer in violation of federal law.
According to a criminal complaint, Justice allegedly purchased the firearm silencer over the internet from China. Agents from U.S. Customs and Border Protection intercepted the device while in transit through the mail. Justice allegedly did not have the required tax stamp or proper authority to possess and transport weapons under the National Firearms Act. According to the criminal complaint, Justice also previously received shipments of other illegal devices from China. Justice allegedly received a “butt-stock” designed to convert a pistol into a short-barreled rifle and an “auto-sear” designed to allow a pistol to function as a machine gun.
Justice is currently in custody awaiting a detention hearing scheduled for Mar. 18. He faces up to 10 years in prison if convicted of the charged offense. A criminal complaint is only an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case with the Department of the Air Force, Office of Special Investigations. Assistant U.S. Attorney Jon K. Stanford is prosecuting the case.
16 March 2020
Whitesville Man on Supervised Release Pleads Guilty to Second Child Pornography ChargeRead the Press Release
CHARLESTON, W.Va. – A Whitesville man has pled guilty to possession of child pornography, announced United States Attorney Mike Stuart. Daniel Runion, 34, pled guilty in May 2019 to one count of possessing child pornography.
“Egregious. Runion has now been convicted of a second federal child pornography offense, as well as being a felon in possession of a firearm,” said United States Attorney Mike Stuart. “I commend the law enforcement agencies involved and my team for protecting West Virginia children from Runion by securing these convictions.”
Runion admitted that he possessed child pornography on his smart phone while in Marmet, Kanawha County. The images showed a minor female performing oral sex on an adult male. In connection with that activity, Runion also admitted that he sent a video of child pornography over Facebook to another user of the social media website. At the time of the offense, Runion had been recently released from prison after serving a 97 month sentence and was currently serving his 15 year term of supervised release resulting from a 2012 federal conviction for receiving child pornography.
Today, the Court found Runion to be in violation of his supervised release and revoked his release. Runion faces up to 20 years in prison when sentenced on June 22, 2020. In a separate case, Runion pled guilty to being a felon in possession of a firearm on October 29, 2019. He is awaiting sentencing on that charge, for which he faces up to 10 years in prison.
The West Virginia State Police and Homeland Security Investigations (HSI) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Kristin F. Scott is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Waterloo Man Sentenced to Federal Prison after He Was Found with Loaded Gun, Ecstasy, and Marijuana in CarRead the Press Release
A Waterloo man who unlawfully possessed a gun while a drug user was sentenced today to over three years in prison.
Anthony Torres, age 19, from Waterloo, Iowa, received the prison sentence after a November 21, 2019 guilty plea to possession of a firearm by a drug user.
Information disclosed at sentencing and at his plea hearing showed that on June 23, 2019, Waterloo police officers tried to stop the car Torres was driving. Torres failed to stop for officers and ran a stop sign in the process. Eventually, Torres got out of his car and attempted to walk away quickly. Officers took Torres into custody for driving with a suspended license. Officers could smell marijuana in his car. Officers searched the car and located a loaded .40 caliber Smith & Wesson and ammunition in the glove box. In the trunk, officers located 402 grams of marijuana and 19 ecstasy pills. Torres admitted he intended to distribute the marijuana. Torres has a criminal history which includes five controlled substance convictions. He also robbed a local store at gunpoint when he was 15 years old.
Torres was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Torres was sentenced to 40 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Waterloo Police Department, the Federal Bureau of Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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. The United States Attorney’s Office has prosecuted this case with support from its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 19-CR-2052.
Follow us on Twitter @USAO_NDIA.
Waterloo Felon with 25 Adult Criminal Convictions Sentenced to over Eight Years in Prison for Illegally Possessing GunsRead the Press Release
A convicted felon who unlawfully possessed guns he stole was sentenced today to over eight years in federal prison.
Jack Good, age 47, from Waterloo, Iowa, received the prison term after a November 25, 2019 guilty plea to one count of being a felon in possession of a firearm.
Information at sentencing showed that in November 2018, Good broke into a home in which he used to reside. Good stole two handguns and some credit cards from the home. Three days later, he was arrested at a hotel with one of the guns. That same day, the other gun, which was loaded, was found by a passerby along the railroad tracks in Cedar Rapids, Iowa.
Prior to this federal conviction, Good had 25 adult criminal convictions. In 1995, Good was convicted of assault with intent to commit sexual abuse. That same year, he was convicted of attempted murder. Good’s other convictions include multiple convictions for theft, burglary, and failure to register as a sex offender. In 2019, Good absconded from work release in Black Hawk County. While escaped from custody, Good burglarized a church, stealing multiple credit cards from the church, which were then used in multiple cities in Iowa.
Good was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Good was sentenced to 100 months in prison. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Good is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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 /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-2063.
Follow us on Twitter @USAO_NDIA.
Two Illegal Aliens Sentenced to Federal Prison for Firearms ViolationsRead the Press Release
NASHVILLE, Tenn. – March 16, 2020 – Two illegal aliens have each been sentenced to 10 years in federal prison for possession of firearms in furtherance of drug trafficking crimes, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Brian Paredes, 22, of San Pedro Sula, Honduras, was sentenced Friday and Jose Calderon, 20, of Jalisco, Mexico, was sentenced in December, by U.S. District Judge Eli J. Richardson. Both will be removed from the United States at the conclusion of their sentence.
Paredes and Calderon were indicted in May 2019 on firearms and drug distribution charges after an investigation, which began in June 2018.
According to court records, on July 28, 2018, agents were conducting an investigation into illegal drug trafficking at a bar on Murfreesboro Pike in Nashville. At approximately 3:00 a.m., agents saw Paredes exit the bar and get into the back seat of a vehicle, which left at a high rate of speed. Agents followed the car to an apartment complex on Glengarry Drive and watched as the vehicle backed into a parking space and turned off the lights. As agents approached, the vehicle made an evasive maneuver and vaulted from a concrete ledge to escape. Though the vehicle was damaged, it continued erratically on Murfreesboro Pike without lights, until stopping at an apartment complex on West End Avenue. The occupants then fled on foot. Paredes was found hiding under a parked car a short distance away and was taken into custody by the Metropolitan Nashville Police Department (MNPD). Agents later determined that the car belonged to Paredes and recovered from it a Ruger AR-15 rifle, two loaded handguns, 22 bags of cocaine, and numerous bags of marijuana packaged for resale. Paredes was released on bond and the following week, he and Calderon were arrested by MNPD for possessing 27 bags of cocaine and another loaded .45-caliber handgun.
Both pleaded guilty in August 2019 to two counts of possessing firearms during and in relation to a drug trafficking crime.
This case was investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Department of Homeland Security Investigations-Immigration & Customs Enforcement; and the Metropolitan Nashville Police Department. The case was prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah and Trial Attorneys Matthew Hoff and Kristen Taylor with the Organized Crime and Gang Section of the Department of Justice.
# # # # #
Torrington Man Charged with Threatening to Kill California CongressmanRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that ROBERT M. PHELPS, 62, of Torrington, has been charged by federal criminal complaint with threatening to murder U.S. Representative Adam Schiff of California.
Phelps was arrested on March 13. Following his arrest, he appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $25,000 bond.
As alleged in court documents and statements made in court, on November 12, 2019, the office of U.S. Representative Adam Schiff received a threatening communication through a Meeting Request entry form on Congressman Schiff’s official website. The meeting request included the statement “…I want to kill you with my bare hands and smash your…face in.” In addition, in response to the preferred days of the week for the meeting request, Phelps wrote “Measure your Coffin day.”
It is further alleged that, on December 4, 2019, investigators interviewed Phelps at his Torrington residence and confirmed that Phelps sent the threatening communication.
The complaint charges Phelps with threatening to assault and murder a U.S. official, which carries a maximum term of imprisonment of 10 years, and with making interstate threats, which carries a maximum term of imprisonment of five years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Statement of U.S. Attorney William M. McSwain Regarding the Murder of Philadelphia Police Corporal James O’ConnorRead the Press Release
PHILADELPHIA – Last Friday, Philadelphia Police Corporal and SWAT team member, James O’Connor, a proud 23-year veteran of the Department from a family of police officers, was gunned down in the City’s Frankford section while trying to arrest Hassan Elliott, who was wanted for murder. Elliott was on the street for one reason: because of District Attorney Krasner’s pro-violent defendant policies. Those policies – which include permissive bail conditions for violent offenders, failing to pursue serious probation and parole violations by violent criminals, offering lenient plea deals for violent offenses, and outright withdrawing cases against violent felons – put dangerous criminals like Elliott on the street.
All Philadelphians have been living with the negative, and often tragic, consequences of these policies for the 2+ years that the City has had to endure the Krasner regime. But now those consequences could not be clearer. Corporal O’Connor’s widow, his children, his brothers and sisters in law enforcement, and the entire City deserve to know why he died.
Here are the facts:
Hassan Elliott is a 21 year-old man from the Frankford section of Northeast Philadelphia. He is known by law enforcement because of his longtime involvement with a violent gang called “1700” that blights the area of 1700 Brill Street and 1700 Scattergood Street. This gang is alleged to be responsible for many shootings in the area and is brazen about their access to firearms. For a taste of what this gang is all about, visit YouTube and look at the video entitled “Frankford Purge,” which depicts Elliott at the 1:29 mark, partially masked, brandishing a firearm.[1]
On June 8, 2017, Elliott was arrested on firearms charges, stemming from an incident in which he threatened a neighborhood resident with a gun. On January 24, 2018, he entered into a negotiated plea: Krasner’s office offered, and Elliott accepted, a below-guidelines sentence of 9 to 23 months’ incarceration, followed by 3 years of reporting probation. Elliott was paroled on January 25, 2018, the day after his plea; he spent a total of 7 months and 16 days incarcerated for this offense.
Following his release, the Philadelphia Probation and Parole Department categorized Elliott as a “high risk” offender, and placed him under the supervision of the Anti-Violence High Risk Unit. Protocol in this unit requires weekly visits and regular urinalyses. Elliott violated his parole almost immediately by failing numerous drug tests, and also by repeatedly failing to report to his parole officer. Eventually, the court scheduled a violation hearing for February 6, 2019.
Prior to that hearing, however, on January 29, 2019, Elliott was arrested and charged with possession of cocaine. After a foot pursuit by police, 15 packets of cocaine were found in Elliott’s pockets. This arrest was in direct violation of Elliott’s parole, but the District Attorney’s Office did not pursue a detainer against him or make any attempt to have Elliott taken into custody for this serious violation. The office allowed Elliott to be released on his own recognizance – no bail was set. This is stunning, considering that Elliott was on parole for his 2018 firearms conviction. Here, there was an arrest and multiple parole violations and the Krasner regime did nothing.
In February 2019, soon after his cocaine arrest, the Philadelphia Police Department identified Elliott as an “Operation Pinpoint” target offender. Operation Pinpoint is a data-driven crime fighting strategy that targets the worst violent offenders in the City. Even with Elliott now identified as one of the City’s worst violent offenders, Krasner’s office still did nothing in response to Elliott’s violation of his parole through his cocaine arrest.
On March 1, 2019, Elliott attended a pre-trial status listing for his cocaine case, where he received and signed a subpoena for the trial, which was scheduled for March 27, 2019. It turns out that March 1 was a busy day for Elliott: after leaving his pre-trial status listing, he allegedly murdered Tyree Tyrone on the 5300 block of Duffield Street. Elliott and another man, both armed with handguns, approached Tyrone, who was sitting in his car, and allegedly opened fire at close range. Video showed Elliott fleeing the scene and his fingerprints were found on one of the alleged murder weapons.
On March 26, 2019, the District Attorney’s Office procured a warrant for Elliott’s arrest for the Tyrone murder. The next day, March 27, Elliott was scheduled to go on trial in the cocaine case.
On that day, March 27, which was the first trial listing in the case, Elliott failed to appear. Despite his absence, and the outstanding murder warrant, the District Attorney’s Office withdrew the cocaine case against Elliott, citing prosecutorial discretion. Elliott then remained at-large until the murder of Corporal O’Connor.
These facts paint a damning picture of a prosecutor’s office that prioritizes “decarceration” of violent offenders over public safety.
First, it is inexcusable that the District Attorney’s Office made no attempt to take Elliott into custody after his cocaine arrest. Had he been detained after his January 29, 2019 arrest – which was a direct violation of his parole on the earlier gun conviction – he certainly would have been in prison on March 1, 2019, when he allegedly murdered Tyree Tyrone. And if that were the case, Corporal O’Connor would not have been trying to arrest Elliott for that murder last Friday. Instead, Corporal O’Connor would be alive today, as would Mr. Tyrone.
Krasner’s office had many opportunities and avenues to detain Elliott after his drug arrest, but failed to utilize any of them. The District Attorney’s Office can always contact probation and ask that a detainer be lodged based on a new arrest, or the District Attorney’s Office could have petitioned Elliott’s supervising judge and requested that a detainer be issued. The office did neither. And even if all that had failed, the office could have requested high bail to ensure that Elliott was held pending trial on his new drug case. Again, the office did nothing.
The District Attorney’s Office had an additional opportunity to ask that Elliott be held on February 6, 2019. On that date, Elliott was listed for a violation of parole hearing based on the new cocaine arrest, as well as Elliott’s issues with repeated drug use and his repeated failure to report to his parole officer. But the docket states that the “detainer [was] to remain lifted” – meaning that no detainer had been or would be lodged – and therefore the violation hearing was continued pending the resolution of the cocaine case. Yet another opportunity wasted.
Second, it is inexcusable that Krasner’s office dropped the cocaine case against Elliott. No responsible prosecutor’s office would ever voluntarily withdraw a case against a violent defendant who doesn’t show up for his first trial date. And here, the defendant had been identified by the Philadelphia Police Department as one of the worst violent offenders in the City. He was a gang-banger wanted for murder.
Moreover, the drug case against Elliott was strong: he had been caught red-handed with multiple packets of cocaine in his pockets. A conviction in the drug case would have surely resulted in prison time, as it would have been a direct violation of his parole for the earlier firearms conviction.
Just as importantly, the drug case should not have been dropped because it could have – and should have – been used as a means to get Elliott into custody and off the street on the murder warrant. If Elliott had shown up for court, he would have been arrested for murder. He didn’t know that there was an existing murder warrant, so there was certainly a chance that he would eventually show up for the drug trial if the case had not been withdrawn (he had, in fact, already shown up for it once, on March 1). But that possibility was eliminated when Krasner’s office eagerly withdrew the case. Instead, Corporal O’Connor and his fellow SWAT officers were left to try to hunt Elliott down, with tragic consequences.
How could any rational human being possibly decide to withdraw the cocaine case against Elliott in these circumstances? Krasner might try to say that his office had to drop the case because one of the police officers involved in it could not testify (due to a potential problem with this officer’s credibility in a separate, unrelated case that the U.S. Attorney’s Office investigated and declined to prosecute). If Krasner tries to deflect blame and says this, it is a lie.
That issue had nothing to do with Krasner’s office dropping Elliott’s drug case, which is why the assigned Assistant District Attorney said nothing about it in court on March 27 when withdrawing the case. Moreover, even if Krasner had been aware of the possible credibility problem when his office dropped the drug case, that issue was irrelevant because the primary officer who had recovered the drugs in Elliott’s pockets had no credibility problems and easily could have testified to all aspects of the case. The other officer was not needed at trial.
The bottom line is that there is no excuse for dropping the cocaine case against Elliott. The case was dropped for the same reason that Krasner’s office ignored the many opportunities to purse the serious parole violation in the first place – because this District Attorney’s priorities always lie with violent offenders, consequences be damned.
This destructive ideology has earned Krasner the enmity of the Philadelphia Police Department. The Department’s disdain was on full display at Temple Hospital on Friday morning, where officers formed a line to block Krasner’s entrance into the hospital when he tried to visit Corporal O’Connor and his family, who wanted nothing to do with him.
Krasner has much to answer for at this moment in our City’s history. He should be asked tough questions and not allowed to fall back on his lazy, irrelevant and all-purpose reply to any legitimate criticism that I level against his policies – that the U.S. Attorney is a Trump appointee. This is not about the President. And it is not about me. It is about two entirely preventable tragedies that have claimed the life of a Philadelphia Police Officer and another young life.
Krasner has infected the District Attorney’s Office with a sickness that has deadly consequences for the entire City. Enough is enough. This madness must stop.
[1] https://www.youtube.com/watch?v=qFgZj01XsvU
Serial Rapist Convicted for 2007 Home Invasion Sexual Assault of Woman in Northwest DCRead the Press Release
WASHINGTON – Ronald Perry Berton, 45, of the District of Columbia, was convicted by a jury on March 10, 2020, for sexually assaulting a 27-year-old woman in October 2007, announced U.S. Attorney Timothy J. Shea and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Berton was convicted after a jury trial in the Superior Court of the District of Columbia on charges of kidnapping and first degree sexual abuse with aggravating circumstances.
Sentencing is scheduled for July 10, 2020. The defendant faces a maximum term of life in prison and lifetime sex offender registration. The defendant will also stand trial on October 8, 2020, for another home invasion sexual assault that occurred in June, 2010, in the District of Columbia. The defendant was previously convicted of a home invasion rape that occurred in Arlington County, Virginia.
According to the government’s evidence presented at trial, on October 6, 2007, at approximately 4:45 a.m., the victim was asleep in her ground-level apartment in Northwest Washington D.C. She woke up to find the defendant in her bedroom. The defendant sexually assaulted the victim, stole her cell phone and then fled. The victim obtained a rape kit and reported the offense to police. Berton was developed as a suspect in this offense by the Cold Case Sexual Assault Unit of the Metropolitan Police Department. The defendant is linked to the case based on a DNA match to the forensic evidence in the rape kit.
In announcing the conviction, U.S. Attorney Shea and Chief Newsham commended the work of those investigating the case from the Metropolitan Police Department (MPD). They also thanked regional law enforcement partners from the Arlington County Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tijuana McPhail, Tiffany Fogle, Michelle Wicker, and Lynda Randolph; Victim Witness Unit specialists Tonya Jones, La June Thames, Katina Adams-Washington, and Yvonne Bryant; Forensic Operations Program Specialist Elizabeth Marrero; and Assistant U.S. Attorneys Lauren Bates, Nick Coleman, James Ewing, David Goodhand, Chrisellen Kolb, and Special Counsel for Forensics Michael Ambrosino. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Stuart Allen, Kathleen Kern, and Amy Zubrensky, who prosecuted the case.
Serial Non-Filer Pleads Guilty to Tax EvasionRead the Press Release
A man who did not file tax returns for several years in a row pleaded guilty Friday, March 13, 2020, to evading his income taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, from 2009 through 2016, Daryl Brown received taxable income, but did not file tax returns reporting his income or pay the taxes he owed. To evade his taxes, Brown opened bank accounts and lines of credit in nominee names and used credit and debit cards from those accounts to pay for personal expenses. He also bought money orders with cash, directed others to buy money orders for him, and structured his purchase of money orders–sometimes from several locations on the same day–to avoid triggering reporting requirements that would have flagged his activity to the Internal Revenue Service (IRS). Brown’s conduct caused a tax loss of more than $250,000 to the IRS.
U.S. District Judge Timothy Black scheduled sentencing for Aug. 5, 2020. At sentencing, Brown faces a maximum sentence of five years in prison. He also faces a period of supervised release and monetary penalties. As part of his plea agreement, Brown will pay restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sarah Ranney and William Guappone of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
San Francisco Acupuncturist Sentenced to 12 Months in Prison for Health Care FraudRead the Press Release
SAN FRANCISCO – Haichao Huang was sentenced to 12 months in prison for committing health care fraud and making false statements relating to health care matters, announced United States Attorney David L. Anderson, Office of Personnel Management Office of the Inspector General Deputy Assistant Inspector General for Investigations Thomas W. South, and U.S. Department of Labor Office of Inspector General Special Agent-in-Charge Quentin Heiden. The Honorable Susan Illston, United States District Judge, handed down the sentence.
Huang, 46, of San Francisco, Calif., pleaded guilty on December 6, 2019, to health care fraud and making false statement relating to health care matters.
According to the plea agreement, Huang was a health care provider who offered acupuncture, physical therapy, massage, and other services to patients in and around San Francisco, Calif. Beginning no later than February 2013 and continuing through at least June 2018, Huang knowingly and willfully executed a scheme to defraud healthcare benefit programs. Huang submitted and caused to be submitted false claims for reimbursement from health care benefit programs that he knew were not properly payable, including from programs provided through federal government and labor union healthcare plans. Huang included false and inaccurate billing codes that artificially inflated both the type of service the patient received and the time he spent with the patient. The plea agreement gives examples of the ways in which Huang submitted false and inaccurate billings for reimbursement. Huang submitted requests for reimbursement for acupuncture treatment when, in fact, the patient had received much shorter periods of treatment, no acupuncture treatment, or no care of any kind at all. Huang also submitted claims for services rendered on days when patients had not been seen by him at all—including days when Huang was not in California. Further, after a patient reached the limit of acupuncture sessions allowed by the relevant insurance program or plan, Huang falsely and inaccurately billed for other types of treatments and services that were not provided, or billed under a patient’s family member’s health plan who never received treatment through his practice, in order to continue receiving improper reimbursements.
In addition to the prison term, Judge Illston ordered Huang to serve two years of supervised release to begin after his prison term has concluded and to pay restitution of $807,785.38 and a $10,000 fine.
Huang had been released on a $100,000 bond, which remains in place until he surrenders to begin serving his prison term on or before May 29, 2020.
Assistant U.S. Attorneys Lina Peng and Ross Weingarten prosecuted the case with the assistance of Marina Ponomarchuk and Morgan Bryne. This prosecution is the result of investigations by the Office of Personnel Management Office of Inspector General and the Department of Labor Office of Inspector General, with assistance from the San Mateo County District Attorney’s Office-Bureau of Investigation.
San Antonio Man Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
In San Antonio today, a federal judge sentenced a San Antonio man to 108 months in federal prison for possessing over 2,500 images and 112 videos depicting child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that 44-year-old Jeffrey Clinton Michalik pay $68,000 in restitution to eight known victims, pay a $5,000 assessment under the Justice for Victims of Trafficking Act and be placed on supervised release for a period of ten years after completing his prison term.
“As this sentence makes clear, those who exploit innocent children will face serious consequences,” stated HSI Special Agent in Charge Folden. “Targeting these crimes against children is a top priority for HSI. We will continue to dedicate law enforcement resources to identify and bring to justice child predators who traumatize and victimize children.”
On September 4, 2019, a jury convicted Michalik on one count of possession of child pornography. Evidence presented at trial revealed that five images of child pornography were downloaded from a website in Switzerland using the defendant’s secure IP address assigned to his house. HSI agents executed a federal search warrant for child pornography at the defendant’s house. The defendant admitted viewing child pornography on a laptop computer and provided agents with consent to search that computer. The laptop computer contained over 2,500 images and 112 videos depicting children engaged in sexually explicit conduct. The majority of the child pornography files depicted children under the age of 12, including children as young as three.
HSI agents investigated this case. Assistant U.S. Attorney Tracy Thompson prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
#####
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.
Rockford Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ROCKFORD — A Rockford man pleaded guilty Friday before U.S. District Judge Philip G. Reinhard to charges of transportation of child pornography via the internet and possession of child pornography.
DONOVAN HEIDENREICH, 25, admitted in a written plea agreement that on Sept. 25, 2017, he used a computer to send a video file over the internet to another user of the KIK messaging application. The image depicted an actual male child under the age of 18 engaged in sexually explicit conduct. Heidenreich also admitted that on Nov. 28, 2017, he possessed a laptop computer that contained more than 600 images of children engaged in sexually explicit conduct. Heidenreich further admitted he traded images of children engaged in sexually explicit conduct with other persons in return for his receipt of images of children engaged in sexually explicit conduct.
Sentencing for Heidenreich is set for June 8, 2020, at 9:00 a.m. For transporting child pornography, HEIDENREICH faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years. For possession of child pornography, the maximum is 20 years’ imprisonment. The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorney Michael D. Love.
Quapaw Man Convicted of Sexually Abusing a Child Under 12Read the Press Release
A federal judge found a Quapaw man guilty Monday of sexually abusing a child under 12 years of age in Indian Country, announced U.S. Attorney Trent Shores.
Wilkie Bill Burtrum, 60, was convicted of aggravated sexual abuse of a minor under 12 in Indian Country and with abusive sexual contact with a child under 12 in Indian Country.
“Wilkie Burtrum was a very real danger to children. Today he was convicted of child sex abuse for the second time in his life. He previously spent 14 years in prison for sexually abusing two children, and my office will be asking that he now spend the rest of his life in prison,” said U.S. Attorney Trent Shores. “No child should ever suffer at the hands of a pedophile nor endure abuse in silence. Along with the Quapaw Tribal Marshals Service and Miami Police Department, the U.S. Attorney’s Office commends this young victim for his courage to come forward to report these horrific crimes.”
Burtrum abused the victim between August 2018 and October 2019. The prosecution contended that the defendant paid extra attention to the victim and offered him special privileges in order to gain the child’s trust. During the time the defendant and victim were together, Burtrum purposefully touched the victim sexually both over his pants and under his clothing. The child eventually confided in a relative then his father. The father immediately reported the crimes to authorities.
During the trial, the prosecution introduced into evidence a 1993 sexual abuse conviction, establishing a pattern of behavior by the defendant. In that case, Burtrum served 14 years in prison for four counts of aggravated sexual abuse in Indian Country with children under 12. An additional victim testified Monday about abuse he suffered at the hands of Burtrum approximately five years ago. He recently came forward to report the crime.
U.S. District Judge Gregory K. Frizzell presided over the trial and set sentencing for June 25, 2020.
The Quapaw Tribal Marshals Service and Miami Police Department conducted the investigation. Assistant U.S. Attorneys Shannon Cozzoni and Scott Proctor are prosecuting the case.
Operation X-Nation: Princeton Man Enters Guilty Plea to Federal Drug CrimeRead the Press Release
BLUEFIELD, W.Va. – A Princeton man pled guilty today for his participation in a drug trafficking operation in Mercer County, announced United States Attorney Mike Stuart. David Simmons, 51, of Princeton, pled guilty to conspiracy to distribute a quantity of oxymorphone and oxycodone. Simmons was charged as a result of a long-term, multi-state, investigation known as Operation X-Nation.
“Operation X-Nation demonstrates our continued efforts to hold prescription pill traffickers accountable,” said United States Attorney Mike Stuart. “Although we have made tremendous progress in that regard, we are not ‘taking our eye off the ball’.”
Simmons admitted that between August 2017, and August 31, 2019, he participated in a drug trafficking organization (DTO) operating in Mercer County, West Virginia. During this time period, Simmons worked with other members of the DTO to acquire and distribute prescription pills in and around Mercer County, within the Southern District of West Virginia. In or about the month of August, 2019, Simmons had telephone calls intercepted by law enforcement. During these calls, Simmons was discussing the distribution of oxymorphone and oxycodone with other members of the DTO. During this time period, Simmons admitted that he was responsible for conspiring to distribute approximately 210 oxymorphone pills and approximately 257 oxycodone pills. Simmons also admitted it was the plan to re-distribute the pills in and around Mercer County.
Simmons faces up to 20 years in federal prison and $1 million fine when he is sentenced on July 6, 2020.
Stuart commended the cooperative investigative efforts of the Drug Enforcement Administration (DEA), and the Southern Regional Drug and Violent Crime Task Force, which is composed of officers from the West Virginia State Police, the Mercer County Sheriff’s Department, the Princeton Police Department, and the Bluefield Police Department. Each agency provided additional and essential support throughout this investigation.
Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before Senior United States District Judge David A. Faber.
This case was brought under the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Omaha Man Convicted for Possession of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Cecil Gunnels, Jr., 36, of Omaha, Nebraska, was sentenced on March 13, 2020 in Omaha by United States District Judge Robert F. Rossiter, Jr. for possession of child pornography. Gunnels was sentenced to 97 months in prison to run concurrent to a 15- to 18-year prison sentence on a State attempted sexual assault on a child in the 1st degree. There is no parole in the federal system. After his release from prison, Gunnels will serve a five-year term of supervised release and will be required to register as a sex offender.
Gunnels was investigated by the Douglas County Sheriff’s Office and the Papillion Police Department after an allegation was made regarding Gunnels sexually assaulting a minor. That investigation lead to the search of his residence and the seizure of electronic devices, which were found to contain child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol and the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
NDTX Round-Up: March 6-12Read the Press Release
GUILTY PLEA – ROMELIO RIVERON
On March 10, Romelio Riveron, 50, pled guilty to conspiracy to launder money and monetary instruments. Riveron purchased stolen jewelry, gold, and diamonds from individuals who were involved in four major robberies in Bedford, Texas, The Village, Oklahoma, Charlotte, North Carolina, and Houston, Texas. Riveron traveled to different locations around the United States to launder the stolen jewelry, gold, and diamonds. In sum, Riveron and his co-conspirators caused total losses of $2,561,112.41. Riveron faces 20 years in federal custody. This case was investigated by the FBI and prosecuted by AUSA Ryan Raybould.
GULITY PLEA – JUAN JESUS CERVANTES-DEL TORO
On March 10, Juan Jesus Cervantes-Del Toro, 47, pled guilty to possession with the intent to distribute methamphetamine. Cervantes-Del Toro met a confidential informant at a Dallas area auto body shop and sold the informant one kilogram of methamphetamine. During his arrest, law enforcement found numerous baggies containing methamphetamine and cocaine. Cervantes-Del Toro faces 20 years in federal custody. This case was investigated by Texas Department of Public Safety and prosecuted by AUSA Linda Requenez.
SENTENCING – JOEL VILLEGAS-PATIN0
On March 11, Joel Villegas-Patio, 62, was sentenced to 188 months in federal custody for possession with intent to distribute a controlled substance. Law enforcement used confidential sources to purchase heroin from Villegas-Patino on multiple occasions. When a search warrant was executed on his residence, Villegas-Patino had 4,893 grams of heroin in his possession. In the two month period that proceeded his arrest, Villegas-Patino had received a total of eight kilograms of heroin from his supply in Mexico. This case was investigated by Drug Enforcement Agency and prosecuted by AUSA John Kull.
GUILTY PLEA – CHRISTOPER PAUL STOUT
On March 12, Christopher Paul Stout, 41, plead guilty to possession with intent to distribute methamphetamine. Stout sold 14 grams of methamphetamine to a confidential source at his place of residence in Dallas. Shortly thereafter, Stout again sold 500 pills of clandestinely produced oxycodone. He faces up to 20 years in federal custody. This case was investigated Drug Enforcement Agency and prosecuted by AUSA Rachel Jones.
Maryland man sentenced for bank robberyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven L. Silverman, of Thurmont, Maryland, was sentenced today to 46 months incarceration for bank robbery, U.S. Attorney Bill Powell announced.
Silverman, age 50, pled guilty to one count of “Bank Robbery” in November 2019. Silverman admitted to robbing the City National Bank of Berkeley Springs of $1,730 on June 4, 2019.
Silverman was also ordered to pay $1,730 to the bank in restitution.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The Morgan County Sheriff’s Office and the Berkeley Springs Police Department investigated.
Chief U.S District Judge Gina M. Groh presided.
Married Couple Indicted on Federal ChargesRead the Press Release
Montgomery, Alabama – On Friday, March 13, 2020, Richard Herbert Smith and Mellissa Stacy Ann Smith, of Wetumpka, Alabama, were arrested and made their initial appearance in court after being indicted by a federal grand jury. Mellissa Smith is listed as the owner of the Island Delight Caribbean Restaurant in Montgomery.
The indictment charges Richard Smith with conspiracy to distribute a controlled substance, possession of cocaine with intent to distribute, possessing a firearm in relation to a drug trafficking crime, and money laundering. Mellissa Smith was indicted on one count of money laundering.
If convicted of all charges, Richard Smith faces a maximum sentence of 25 years in prison, whereas Mellissa Smith is facing up to 20 years.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt. Mellissa Smith was released after her court appearance on Friday. Richard Smith is being held in the custody of the United States Marshal Service pending a detention hearing this week.
This case was investigated by the Drug Enforcement Administration (DEA) and the Montgomery Police Department, with assistance from the Prattville Police Department and the Alabama National Guard Counterdrug program. Assistant United States Attorney Curtis Ivy is prosecuting the case.
Man from Oklahoma faces federal bank robbery chargeRead the Press Release
ALBUQUERQUE, N.M. – Randy Matthew Peraza, 47, of Oklahoma City, Oklahoma appeared in federal court in Roswell, New Mexico today for an initial appearance on a criminal complaint charging him with bank robbery.
According to the criminal complaint, Peraza allegedly robbed a bank in Roswell on Mar. 13. He allegedly went inside the bank, announced the robbery, and demanded money. A teller handed over cash. Peraza allegedly left the bank, walked across the street, and sat in the grass where police arrested him a short time later. There were no injuries.
Peraza is currently in custody awaiting a detention hearing. He faces up to 20 years in prison if convicted. A criminal complaint is only an accusation. A defendant is presumed innocent until proven guilty.
The FBI investigated this case with the Roswell Police Department. Assistant U.S. Attorney Jacob Wishard is prosecuting the case.
Lexington Man Sentenced to 108 Months for Trafficking ValerylfentanylRead the Press Release
LEXINGTON, Ky. – A Lexington, Kentucky man, Michael Deshawn Glover, 33, was sentenced to 108 months on Thursday, by U.S. District Judge Karen K. Caldwell, for possession with intent to distribute 10 grams or more of a substance containing valerylfentanyl.
Glover previously admitted that on July 25, 2018, he came into contact with officers, and due to an outstanding warrant, he was arrested. Upon the intake process at the detention facility, officers discovered that Glover was concealing 58 grams of valerylfentanyl in his underwear. Glover admitted that he planned to sell the substance to other persons throughout the Eastern District of Kentucky.
Glover pleaded guilty in June 2019.
Under federal law, Glover must serve 85 percent of his prison sentence. Upon his release, Glover will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Brett R. Pritts, Acting Special Agent in Charge for the Drug Enforcement Administration, Louisville Field Office; and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement.
The investigation was conducted by DEA and Lexington Police Department. The United States was represented by Assistant U.S. Attorney David Kiebler.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
— END —
Letcher County Man Convicted of Methamphetamine Trafficking Conspiracy and Firearm OffensesRead the Press Release
PIKEVILLE, Ky. - A Mayking, Kentucky, man was convicted Friday, by a federal jury sitting in Pikeville, of conspiracy to distribute methamphetamine and firearm offenses.
After 45 minutes of deliberation, following a two-day trial, the jury convicted 64-year-old Danny Collins of trafficking more than 500 grams of methamphetamine, possession of firearm in furtherance of drug trafficking, and being a convicted felon in possession of a firearm.
According to testimony at trial, beginning in November 2017 until March 2018, Collins traveled to Louisville, on multiple occasions, to purchase pound-level quantities of methamphetamine from a source of supply. Collins would then return to Letcher County and resell the methamphetamine.
Evidence presented at trial also revealed that Collins possessed a firearm in furtherance of his drug trafficking. Collins had previously been convicted of a serious drug felony and was not permitted by law to possess a firearm.
Collins was indicted in June 2019.
Collins’ co-defendants pled guilty in February and will be sentenced as follows:
- Samantha Collins, 38, of Mayking, Ky., will be sentenced on June 1, 2020.
- Michael Slone, 43, of Red Fox, Ky., will be sentenced on June 1, 2020.
- Kevin Quillen, 44, of Kite, Ky., will be sentenced on June 17, 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge for ATF, Louisville Field Division; and Commissioner Rodney Brewer, Kentucky State Police, jointly announced the verdict.
The investigation was conducted by ATF, Kentucky State Police, and Letcher County Sheriff’s Office. The United States was represented in the case by Assistant U.S. Attorney Jenna Reed.
Collins will appear for sentencing on a date set by the Court. He faces a maximum of life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
— END —
Jury Finds Los Angeles Businessman Guilty in $1 Billion Biodiesel Tax Fraud SchemeRead the Press Release
A federal jury in Salt Lake City, Utah, convicted California businessman Lev Aslan Dermen, also known as Levon Termendzhyan, of criminal charges today relating to a $1 billion renewable fuel tax credit fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney John W. Huber for the District of Utah, Don Fort Chief of Internal Revenue Service (IRS) - Criminal Investigation, Acting Special Agent-in-Charge Lance Ehrig for the Denver Area Office of Environmental Protection Agency (EPA) - Criminal Investigation Division, and Special Agent-in-Charge Michael Mentavlos for the Denver Area Office of Defense Criminal Investigative Service.
“Today’s guilty verdict brings Lev Dermen and his coconspirators to justice. They created and implemented this massive biofuel scheme to fund their greed at the expense of all taxpayers,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “The conviction should serve as clear notice that we will vigorously prosecute those criminals who engage in any form of tax fraud.”
“These guilty verdicts show that no amount of bank accounts, shell companies, burner phones, or transfers of millions of dollars to foreign countries will stop the Department of Justice, the U.S. Attorney’s Office, and our law enforcement partners from tracking down money stolen from the government and holding criminals responsible for their wrongdoing,” said U.S. Attorney John W. Huber for the District of Utah. “I also want to thank the investigators, prosecutors, and support professionals who have dedicated so much time to this important case.”
“The biofuel tax credit program was established by the government to promote a clean fuel alternative to traditional fuel options. Mr. Dermen used his company Noil Energy Group to conspire with the Kingston family to corrupt the biofuel tax credit program in an effort to steal over $1 Billion from tax payers and launder the proceeds of this fraud,” said Don Fort, Chief of IRS Criminal Investigation. “This trial was the culmination of years of investigative effort that traced money through a variety of countries and states through a complicated fraud scheme to eventually put money in the pockets of Mr. Dermen. The complicated nature of the scheme shows the determination with which the defendants had to defraud the American public for the sole purpose of lining their own pockets.”
“The defendants claimed both EPA Renewable Fuel Standard (RFS) program credits and IRS tax credits for biodiesel fuel that did not exist, defrauding taxpayers out of hundreds of millions of dollars,” said Lance Ehrig, EPA Acting Special Agent in Charge. “With this action EPA and its enforcement partners are continuing to protect both the integrity of the RFS program and the American taxpayer.”
“The Defense Criminal Investigative Service (DCIS) will investigate all allegations of financial crimes impacting the Department of Defense," stated Michael Mentavlos, Special Agent in Charge, DCIS Southwest Field Office. "DCIS, along with our investigative partners, will diligently pursue all appropriate criminal, civil and administrative actions against individuals who violate the taxpayer's trust for illicit financial gain.”
According to evidence presented at a seven-week trial, Dermen was the owner and operator of Noil Energy Group, a California-based fuel company; SBK Holdings USA, a Beverly Hills real estate investment company; and Viscon International, a Nevada fuel additive corporation. From 2010 to 2016, Dermen conspired with the owners and operators of Washakie Renewable Energy (Washakie), a Utah-based biodiesel company, including its Chief Executive Officer Jacob Kingston, his brother, Chief Financial Officer Isaiah Kingston, and others, including their mother, Rachel Kingston, and Jacob Kingston’s wife, Sally, to fraudulently claim more than $1 billion in renewable fuel tax credits from the IRS.
The IRS administers refundable federal tax credits designed to increase the amount of renewable fuel used and produced in the United States. As part of their scheme, Dermen and Jacob Kingston shipped millions of gallons of biodiesel within the U.S. and from the U.S. to foreign countries and back again to create the appearance that qualifying renewable fuel was being produced and sold. They also doctored production and transportation records to substantiate Washakie’s fraudulent claims for more than $1 billion in IRS renewable fuel tax credits and credits related to the EPA renewable fuel standard. To further create the appearance they were buying and selling qualifying fuel, the coconspirators cycled more than $3 billion through multiple bank accounts.
As a result of the fraudulent claims, the IRS paid more than $511 million to Washakie and the Kingstons that was distributed between them and Dermen. Jacob and Isaiah Kingston sent more than $21 million in fraudulent proceeds to SBK Holdings USA, Inc., Dermen’s California-based company, and sent $11 million to an associate of Dermen’s at his request. Jacob Kingston used $1.8 million of the fraud proceeds to buy Dermen a 2010 Bugatti Veyron, and they exchanged gifts including a chrome Lamborghini and a gold Ferrari.
Dermen and Jacob Kingston also laundered $3 million through Dermen’s company, Noil Energy Group, to purchase a mansion in Sandy, Utah for Jacob Kingston and his wife Sally. Dermen also laundered $3.5 million through his California company, SBK Holdings USA, Inc., to purchase a mansion in Huntington Beach, California.
Throughout the scheme, Dermen assured Jacob Kingston that he and the Kingstons would be immune from criminal prosecution because they would be protected by Dermen’s “umbrella” of corrupt law enforcement personnel. Jacob and Isaiah Kingston transferred over $134 million in fraudulent proceeds to companies in Turkey and Luxembourg at Dermen’s direction, in purported payment for protection.
The jury found Dermen guilty of conspiracy to commit mail fraud, conspiracy to commit money laundering, and money laundering concealment money laundering, and expenditure money laundering.
The Kingstons, who are all members of the Davis County Cooperative Society, also known as the “Order,” each pleaded guilty on July 19, 2019 for their role in this scheme. Jacob Kingston pleaded guilty to crimes relating to the $1 billion biofuel fraud, including conspiracy to commit mail fraud, aiding and assisting in the filing of false claims with the IRS, conspiracy to commit money laundering, and conspiracy to obstruct justice. In his plea agreement, he admitted to laundering fraudulent proceeds through Order-related entities and transferring millions in fraudulent proceeds to Order-related entities. Jacob Kingston admitted to conspiring to obstruct justice for attempting to bribe government officials, tamper with witnesses, and destroy evidence based on his agreeing with his family to hide evidence and replace computer hard drives once they learned of an impending search warrant. Under the terms of his plea agreement, Jacob Kingston faces a maximum of thirty years in prison. He also faces a period of supervised release and other monetary penalties. Sentencing has not yet been scheduled.
Isaiah Kingston pleaded guilty to his role in the scheme, including to conspiracy to commit mail fraud, aiding and assisting in filing false claims with the IRS, conspiracy to commit money laundering, and conspiracy to obstruct justice. Under the terms of his plea agreement, he faces a maximum of 20 years in prison. Rachel Kingston pleaded guilty to conspiracy to commit mail fraud, conspiracy to commit money laundering, money laundering, and obstruction of justice. In her plea agreement, she admitted to creating false invoices, backdating documents, and concealing records in advance of a federal search warrant. She faces a maximum of 15 years in prison. Sally Kingston pleaded guilty to conspiracy to commit mail fraud and conspiracy to commit money laundering; she faces a maximum of 15 years in prison. They each also face a period of supervised release. As part of their plea agreements, the Kingstons will be ordered to pay $511 million in restitution to the United States and to forfeit the proceeds of their crimes.
Jacob and Isaiah Kingston both testified at Dermen’s trial.
U.S. District Judge Jill N. Parrish will set Dermen’s sentencing at a later date. At sentencing, he faces a maximum sentence of 20 years in prison for conspiracy to commit mail fraud, conspiracy to commit money laundering, and concealment money laundering, and 10 years in prison for expenditure money laundering. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Huber commended special agents of IRS-Criminal Investigation, EPA Criminal Investigation Division, and Department of Defense DCIS who conducted the investigation. They also thanked Trial Attorneys Richard M. Rolwing, Leslie A. Goemaat, and Arthur J. Ewenczyk and Senior Litigation Counsel John E. Sullivan of the Tax Division, who are prosecuting the case.
They also thanked the U.S. Department of Justice Criminal Division’s Office of International Affairs, as well as law enforcement partners in the Grand Duchy of Luxembourg and the Republic of Malta for their assistance in the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Jury Finds Los Angeles Businessman Guilty in $1 Billion Biodiesel Tax Fraud SchemeRead the Press Release
SALT LAKE CITY – A federal jury in Salt Lake City convicted California businessman Lev Aslan Dermen, also known as Levon Termendzhyan, of criminal charges Monday afternoon relating to a $1 billion renewable fuel tax credit fraud scheme.
The convictions were announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney John W. Huber for the District of Utah, Don Fort Chief of Internal Revenue Service (IRS) - Criminal Investigation, Acting Special Agent-in-Charge Lance Ehrig of the Denver Area Office of Environmental Protection Agency (EPA) - Criminal Investigation Division, and Special Agent-in-Charge Michael Mentavlos of the Denver Area Office of Defense Criminal Investigative Service.
“Today’s guilty verdict brings Lev Dermen and his coconspirators to justice. They created and implemented this massive biofuel scheme to fund their greed at the expense of all taxpayers,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “The conviction should serve as clear notice that we will vigorously prosecute those criminals who engage in any form of tax fraud.”
“These guilty verdicts show that no amount of bank accounts, shell companies, burner phones, or transfers of millions of dollars to foreign countries will stop the Department of Justice, the U.S. Attorney’s Office, and our law enforcement partners from tracking down money stolen from the government and holding criminals responsible for their wrongdoing,” said U.S. Attorney John W. Huber for the District of Utah. “I also want to thank the investigators, prosecutors, and support professionals who have dedicated so much time to this important case.”
“The defendants claimed both EPA Renewable Fuel Standard (RFS) program credits and IRS tax credits for biodiesel fuel that did not exist, defrauding taxpayers out of hundreds of millions of dollars,” said Lance Ehrig, EPA Acting Special Agent in Charge. “With this action EPA and its enforcement partners are continuing to protect both the integrity of the RFS program and the American taxpayer.”
“The biofuel tax credit program was established by the government to promote a clean fuel alternative to traditional fuel options. Mr. Dermen used his company Noil Energy Group to conspire with the Kingston family to corrupt the biofuel tax credit program in an effort to steal over $1 Billion from tax payers and launder the proceeds of this fraud,” said Don Fort, Chief of IRS Criminal Investigation. “This trial was the culmination of years of investigative effort that traced money through a variety of countries and states through a complicated fraud scheme to eventually put money in the pockets of Mr. Dermen. The complicated nature of the scheme shows the determination with which the defendants had to defraud the American public for the sole purpose of lining their own pockets.”
“The Defense Criminal Investigative Service (DCIS) will investigate all allegations of financial crimes impacting the Department of Defense," stated Michael Mentavlos, Special Agent in Charge, DCIS Southwest Field Office. "DCIS, along with our investigative partners, will diligently pursue all appropriate criminal, civil and administrative actions against individuals who violate the taxpayer's trust for illicit financial gain.”
According to evidence presented at a seven-week trial, Dermen was the owner and operator of Noil Energy Group, a California-based fuel company; SBK Holdings USA, a Beverly Hills real estate investment company; and Viscon International, a Nevada fuel additive corporation. From 2010 to 2016, Dermen conspired with the owners and operators of Washakie Renewable Energy (Washakie), a Utah-based biodiesel company, including its Chief Executive Officer Jacob Kingston, his brother, Chief Financial Officer Isaiah Kingston, and others, including their mother, Rachel Kingston, and Jacob Kingston’s wife, Sally, to fraudulently claim more than $1 billion in renewable fuel tax credits from the IRS.
The IRS administers refundable federal tax credits designed to increase the amount of renewable fuel used and produced in the United States. As part of their scheme, Dermen and Jacob Kingston shipped millions of gallons of biodiesel within the U.S. and from the U.S. to foreign countries and back again to create the appearance that qualifying renewable fuel was being produced and sold. They also doctored production and transportation records to substantiate Washakie’s fraudulent claims for more than $1 billion in IRS renewable fuel tax credits and credits related to the EPA renewable fuel standard. To further create the appearance they were buying and selling qualifying fuel, the coconspirators cycled more than $3 billion through multiple bank accounts.
As a result of the fraudulent claims, the IRS paid more than $511 million to Washakie and the Kingstons that was distributed between them and Dermen. Jacob and Isaiah Kingston sent more than $21 million in fraudulent proceeds to SBK Holdings USA, Inc., Dermen’s California-based company, and sent $11 million to an associate of Dermen’s at his request. Jacob Kingston used $1.8 million of the fraud proceeds to buy Dermen a 2010 Bugatti Veyron, and they exchanged gifts including a chrome Lamborghini and a gold Ferrari.
Dermen and Jacob Kingston also laundered $3 million through Dermen’s company, Noil Energy Group, to purchase a mansion in Sandy, Utah for Jacob Kingston and his wife Sally. Dermen also laundered $3.5 million through his California company, SBK Holdings USA, Inc., to purchase a mansion in Huntington Beach, California.
Throughout the scheme, Dermen assured Jacob Kingston that he and the Kingstons would be immune from criminal prosecution because they would be protected by Dermen’s “umbrella” of corrupt law enforcement personnel. Jacob and Isaiah Kingston transferred over $134 million in fraudulent proceeds to companies in Turkey and Luxembourg at Dermen’s direction, in purported payment for protection.
The jury found Dermen guilty of conspiracy to commit mail fraud, conspiracy to commit money laundering, and money laundering concealment money laundering, and expenditure money laundering.
The Kingstons, who are members of the Davis County Cooperative Society, also known as the “Order,” each pleaded guilty on July 19, 2019 for their role in this scheme. Jacob Kingston pleaded guilty to crimes relating to the $1 billion biofuel fraud, including conspiracy to commit mail fraud, aiding and assisting in the filing of false claims with the IRS, conspiracy to commit money laundering, and conspiracy to obstruct justice.
In his plea agreement, he admitted to laundering fraudulent proceeds through Order-related entities and transferring millions in fraudulent proceeds to Order-related entities. Jacob Kingston admitted to conspiring to obstruct justice for attempting to bribe government officials, tamper with witnesses, and destroy evidence based on his agreeing with his family to hide evidence and replace computer hard drives once they learned of an impending search warrant. Under the terms of his plea agreement, Jacob Kingston faces a maximum of thirty years in prison. He also faces a period of supervised release and other monetary penalties. Sentencing has not yet been scheduled.
Isaiah Kingston pleaded guilty to his role in the scheme, including to conspiracy to commit mail fraud, aiding and assisting in filing false claims with the IRS, conspiracy to commit money laundering, and conspiracy to obstruct justice. Under the terms of his plea agreement, he faces a maximum of 20 years in prison. Rachel Kingston pleaded guilty to conspiracy to commit mail fraud, conspiracy to commit money laundering, money laundering, and obstruction of justice. In her plea agreement, she admitted to creating false invoices, backdating documents, and concealing records in advance of a federal search warrant. She faces a maximum of 15 years in prison. Sally Kingston pleaded guilty to conspiracy to commit mail fraud and conspiracy to commit money laundering; she faces a maximum of 15 years in prison. They each also face a period of supervised release. As part of their plea agreements, the Kingstons will be ordered to pay $511 million in restitution to the United States and to forfeit the proceeds of their crimes.
Jacob and Isaiah Kingston both testified at Dermen’s trial.
U.S. District Judge Jill N. Parrish will set Dermen’s sentencing at a later date. At sentencing, he faces a maximum sentence of 20 years in prison for conspiracy to commit mail fraud, conspiracy to commit money laundering and concealment money laundering, and 10 years in prison for expenditure money laundering. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Huber commended special agents of IRS-Criminal Investigation, EPA Criminal Investigation Division, and Department of Defense DCIS who conducted the investigation. They also thanked Trial Attorneys Richard M. Rolwing, Leslie A. Goemaat, and Arthur J. Ewenczyk and Senior Litigation Counsel John E. Sullivan of the Tax Division, who are prosecuting the case.
They also thanked the U.S. Department of Justice Criminal Division’s Office of International Affairs, as well as law enforcement partners in the Grand Duchy of Luxembourg and the Republic of Malta for their assistance in the case.
Jefferson County woman sentenced for her role in a heroin, cocaine, and fentanyl distribution operation in Berkeley and Jefferson CountiesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Amy Little, of Harpers Ferry, West Virginia, was sentenced today to five years probation for her role in a heroin, cocaine, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Little, also known as “Amy Jackson,” age 45, pled guilty today to one count of “Unlawful Use of Communication facility” in May 2019. Little admitted to using a phone to arrange a purchase of heroin in September 2018 in Berkeley County.These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, prosecuted the case on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man sentenced for heroin and fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Enrico Fionn Hernandez, of Harpers Ferry, West Virginia, was sentenced today to five years probation for having heroin and fentanyl, U.S. Attorney Bill Powell announced.
Hernandez, also known as “Rico,” age 46, pled guilty to one count of “Possession with Intent to Distribute Heroin and Fentanyl” in November 2019. Hernandez admitted to having heroin and fentanyl to distribute tin June 2017 in Jefferson County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Chief U.S. District Judge Gina M, Groh presided.
Individual Indicted and Arrested for Bank Fraud and Money LaunderingRead the Press Release
SAN JUAN, P.R. - On March 13, FBI agents arrested Wilson Nieves-Santiago who is facing 27 counts of bank fraud and two counts of money laundering, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow.
The indictment alleges that defendant Nieves-Santiago, starting in or around the year 2015, became a caretaker of C.B.R., and elderly female, and her late husband, M.L.R., in Dorado, Puerto Rico, and Philadelphia, Pennsylvania. As part of his responsibilities, Nieves-Santiago would drive C.B.R., run errands, assist her in cleaning, paying bills, and depositing checks. The defendant had online access to C.B.R.’s bank accounts and credit cards, and would pay the victim’s expenses with them.
On or about April 29, 2015, Nieves-Santiago opened a joint bank account with C.B.R. at PNC Bank. This particular account was managed and controlled solely by the defendant. The indictment charges that Nieves-Santiago began diverting monies belonging to C.B.R. to the joint bank account in February of 2018. The defendant was entitled to salary of $2,170 every two weeks, paid from a trust account. As part of the scheme, Nieves-Santiago would sometimes transfer funds, or endorse checks for an additional $2,170 from C.B.R.’s account without her authorization, in an effort to conceal the payment and make it appear as if it were part of the defendant’s regular salary. Nieves-Santiago electronically transferred large sums of money from C.B.R.’s account into the PNC Bank account he controlled without the victim’s authorization.
Counts one through 24 include the checks that Nieves-Santiago deposited into the account he solely controlled, for a total of $170,867.63. Counts 25 and 26 are the money laundering charges that include two electronic transfers deposited into the same account for a total of $86,000.
Defendant Nieves-Santiago is facing a bank fraud and money laundering forfeiture allegation that includes $261,007.63; a two-door 2018 ford Mustang Coupe; and a white 2018 Hyundai Accent coupe.
“The egregious behavior of those who exploit our banking system or its clients for personal and criminal gain will not be tolerated,” said United States Attorney Muldrow. “We will continue to aggressively pursue criminals who victimize and financially exploit our senior citizens.”
“Bank fraud and money laundering come in many different forms. Here it came in the form of a cruel violation of the trust two elderly persons put in the defendant. The FBI is appalled by this behavior and is committed to continue in pursuit of these criminal actors in collaboration with the United States Attorney’s Office and our local state and federal law enforcement partners.” - said Rafael A. Riviere Vázquez, Special Agent in Charge of the FBI San Juan Field Office.
If convicted, Nieves-Santiago could face a maximum penalty of 30 years of imprisonment and a fine of $1,000,000 for the bank fraud charges, and a maximum penalty of up to 10 years of imprisonment for the money laundering charges. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
The prosecution of this case is assigned to Assistant U.S. Attorney Edward G. Veronda.
# # #
Illinois Man Pleads Guilty to Federal Crime for Removing Evidence from Opioid Overdose Death SceneRead the Press Release
A man who removed drug paraphernalia evidence from an opioid overdose death scene in Dubuque pled guilty March 13, 2020, in federal court in Cedar Rapids.
Mateusz D. Syryjczyk, age 29, from Rockford, Illinois, was convicted of one count of misprision of a felony.
At the plea hearing, Syryjczyk admitted that, in May 2019, he knew that the crime of distribution of controlled substances resulting in serious bodily injury had occurred. He also admitted that he failed to notify authorities that the crime had been committed and that he took affirmative steps to conceal the crime. Evidence at a prior hearing showed that Syryjczyk and his girlfriend, Jacqueline Birch, and another individual drove to a residence in Dubuque, Iowa during the late evening of May 26, 2019. Birch and the other individual went into the residence, and returned a short time later with purported heroin they had purchased inside the residence. The three then drove to a hotel in Dubuque, where they all used the purported heroin. The other individual began to overdose in the room. Birch and Syryjczyk did not immediately call 911, but, over the course of multiple hours, Birch would occasionally perform CPR on the individual to restore some breathing function, though the person never regained consciousness. Eventually, Birch and Syryjczyk decided they needed to call 911, and Syryjczyk took the remaining drug paraphernalia from the room to prevent law enforcement from finding it. Syryjczyk also made false statements to the responding police officers about the cause of the individual’s condition. That individual was pronounced dead at the scene. An autopsy later determined the cause of death was use of heroin, fentanyl, and valeryl fentanyl.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Syryjczyk is free on bond pending sentencing. Syryjczyk faces a possible maximum sentence of 3 years’ imprisonment, a $250,000 fine, and 1 year of supervised release following any imprisonment.
The case was investigated by the Dubuque Drug Task Force and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19‑CR‑1042‑CJW-‑MAR.
Follow us on Twitter @USAO_NDIA.
Four Charged with Fentanyl Trafficking and Gun SalesRead the Press Release
BOSTON – Four individuals were arrested today on charges that they distributed large quantities of fentanyl throughout southeastern Massachusetts.
Filomeno Monteiro, 30, of Brockton; Christina Collins, 18, of Brockton; Eric Marques, 29, of Brockton; and Chayia Chan, 28, of Lynn, were charged in three separate drug trafficking and firearm indictments.
Specifically, Monteiro and Collins were charged with conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl as well as three counts of distribution of fentanyl. Monteiro was also charged with being a felon in possession of a firearm. Marques and Chan were each charged with distribution of 40 grams of more of fentanyl.
The charge of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl provides for a mandatory minimum sentence of five years and a maximum term of 40 years in prison, a minimum of four years of supervised release and a fine of up to $5 million. The charge of distribution of fentanyl provides for a penalty of up to 20 years in prison, up to three years of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm and ammunition provides for a penalty of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; John Gibbons, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz, made the announcement today. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting these cases.
The details contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
###
Federal Court Permanently Bars Former Liberty Tax Service Owners from Tax Preparation BusinessRead the Press Release
A federal court in Tampa, Florida has permanently barred Steven Doletzky, formerly doing business as Liberty Tax Service, from operating a tax return preparation business and preparing federal tax returns for others, the Justice Department announced today.
The court also ordered Doletzky to disgorge $175,000 of ill-gotten gains that the United States alleges he received from filing federal tax returns that claimed improper tax refunds, understated customers’ federal tax liabilities, or otherwise included false or fraudulent claims.
Doletzky was sued along with two co-defendants, Michael Garno and Michael Bass. According to the complaint, employees at stores owned by Doletzky, Garno, and Bass prepared federal income tax returns that claimed fraudulent claims for tax credits, including for education credits and the Earned Income Tax Credit (“EITC”). For example, the complaint alleges that from 2013 to 2015, Liberty Tax Service stores owned by Doletzky or his co-defendants prepared and filed federal income tax returns that claimed over 500 false claims for education credits. The court previously entered orders of permanent injunction and disgorgement against Garno and Bass. Doletzky, Garno, and Bass agreed to entry of the permanent injunctions and disgorgement judgments without admitting to factual allegations in the complaint.
“Fraudulent tax return preparers too often seek to take advantage of their customers and the U.S. Treasury, which undermines our tax system,” said Principal Deputy Assistant Attorney General for the Tax Division Richard Zuckerman. “The Justice Department will pursue those who would abuse our nation’s tax laws.”
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on their website about things taxpayers should remember when searching for a tax preparer and has a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Dentist Pleads Guilty to Oxycodone DiversionRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Christopher Kania, 40, Portage, Wisconsin, pleaded guilty on Thursday, March 12, in U.S. District Court in Madison to obtaining oxycodone by use of misrepresentation, fraud, and deception.
This charge carries a maximum penalty of four years in federal prison. Chief U.S. District Judge James D. Peterson scheduled Kania’s sentencing for May 26, 2020.
During the plea hearing, Kania admitted that on August 22, 2017, while working as a dentist in Mauston, Wisconsin, he wrote a prescription to his dental hygienist for oxycodone pills and asked her to fill the prescription and return the pills to him for his own use. His hygienist, who cooperated with the investigation, complied with his request, filled the prescription, and provided Kania with all of the oxycodone. Kania compensated her for the insurance co-pay.
“Professionals who divert opioids fuel deadly addictions and undermine the public’s confidence in the medical community,” said U.S. Attorney Blader. “My office will continue to work with our law enforcement partners to prosecute opioid diversion cases to the fullest extent of the law.”
“Dentists and their employees are trusted to handle pharmaceutical medications responsibly. When these practitioners divert potent pain medications for illegitimate purposes, they sabotage the public’s trust and safety within our communities. The DEA, partnered with local law enforcement and the U.S. Attorney’s Office, will continue to investigate and prosecute unscrupulous medical professionals,” remarked Milwaukee Drug Enforcement Administration Assistant Special Agent in Charge Paul E. Maxwell.
The charge against Kania was the result of an investigation conducted by the Drug Enforcement Administration-Madison Office. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Corsica Man Indicted for Fraud and Money Laundering in Multi-Million-Dollar Cattle Ponzi SchemeRead the Press Release
United States Attorney Ron Parsons announced that a Corsica, South Dakota, man has been indicted by a federal grand jury for nine counts of Wire Fraud, six counts of Mail Fraud, and seventeen counts of Money Laundering.
Robert Blom, age 58, was indicted on March 3, 2020. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 16, 2020, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison, and/or a $250,000 fine for wire fraud and $500,000 fine for money laundering, 3 years of supervised release, and up to $3,200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning on or about January 2014 and continuing through February 2019, Blom devised a scheme to defraud investors.
Blom operated a custom cattle-feeding business in the Corsica area. As part of his business, Blom solicited investors for groups of cattle. He purchased groups of cattle from various livestock companies and the cattle were raised on feedlots owned or used by him. Blom raised the cattle to maturity and then sold them to processing plants. After the groups of cattle were sold, Blom paid the profits to the investors in the groups.
It is alleged, however, that Blom sold the same groups of cattle to multiple different investors. Each invoice should have been used for just one group of investors, but Blom knew that he did not have and could not purchase as many head of cattle as he represented to investors. Sometimes Blom altered the cattle purchase invoices in an effort to conceal that he sold the same group of cattle to multiple different investors.
Also as part of the scheme and artifice, Blom falsely and fraudulently represented to investors that he would use their money to purchase groups of cattle and to care for those cattle. Instead, he routinely used money from new investors to pay back old investors.
On multiple occasions, Blom mailed invoices and other investment-related documents to investors and several investors mailed their investment payments to him. Also on multiple occasions, Blom received payments from investors, often by check and Blom also paid old investors, often by check.
The estimated loss amount at this time is approximately $20 million.
The charges are merely accusations and Blom is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation Division, and the U.S. Attorney’s Office. Assistance has also been provided by the South Dakota Division of Criminal Investigation, South Dakota Attorney General’s Office, Douglas County States Attorney, Douglas County Sheriff, South Dakota Brand Board, North Dakota Brand Board, and the Montana Brand Board. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Blom was released on bond pending trial. A trial date has not been set.
Colorado Resident and Insurance Company Agree to Pay $500,000 for Costs Incurred in Responding to Escaped Camp FireRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Grange Insurance Association and Dale Owens of Craig, Colorado, have paid the United States $500,000 to resolve their liability for a wildland fire in June of 2017 near Rangely, Colorado.
On June 11, 2017, Mr. Owens created a campfire to roast hotdogs for his family on federal land administered by the Bureau of Land Management near Rangely. The United States alleges that Mr. Owens did not build a fire ring around the entirety of the fire and that he stepped away from the fire to gather additional firewood. While he was away, there was a shift in the wind, and the fire escaped the fire ring. Mr. Owens was able to get his family to safety and to call 911. He also stayed on the scene and attempted to extinguish the fire. Despite the efforts of Mr. Owens and of first responders, the fire—which later became known as the Dead Dog Fire—was not immediately contained and became an uncontrolled wildfire. The Bureau of Land Management and United States Forest Service incurred significant fire suppression costs in fighting the Dead Dog Fire.
Mr. Owens had a home insurance policy in place with Grange Insurance Association at the time of the Dead Dog Fire. Both Mr. Owens and Grange Insurance have been fully cooperative with the United States, allowing the parties to reach a full resolution of Mr. Owens’ liability for the Dead Dog Fire without litigation.
“Wildfires are a constant danger in Colorado, and taxpayers often foot the bill for putting them out. The Dead Dog Fire is an example of how not following best practices around campfires can lead to a wildfire,” said U.S. Attorney Jason Dunn. “The United States appreciates that this fire was reported immediately, which allowed federal resources to be deployed quickly to combat it. We also appreciate that this matter was resolved cooperatively and enables the United States to be reimbursed for many of the costs incurred in fighting the fire.”
“We strive to educate the public and prevent any human-caused fires. In this case, the BLM appreciates that Mr. Owens stayed on scene and cooperated with fire investigators providing important information that was used for the case. Part of being an educated and responsible public land user is knowing what to do in a situation like the Dead Dog Fire,” said BLM Colorado State Director Jamie Connell. “We would also like to thank the United States Attorney's Office for their assistance in settling this case.”
The United States was represented in this matter by Assistant United States Attorney Andrea Wang.
Charleston Woman Pleads Guilty to Federal Meth and Gun ChargesRead the Press Release
HUNTINGTON, W.Va. – A Charleston woman caught with multiple pounds of methamphetamine and a firearm last year pled guilty to drug and gun charges today in federal court, announced United States Attorney Mike Stuart. Krista Lynn Morris, 34, pled guilty to possession with intent to distribute 500 grams or more of methamphetamine and unlawful possession of a firearm by a drug user.
“Morris was peddling significant quantities of meth,” said United States Attorney Mike Stuart. “Our law enforcement partners are working tirelessly to identify and investigate meth traffickers like Morris and, as a result, we are prosecuting scores of meth dealers.”
On April 2, 2019, agents contacted Morris in Teays Valley after learning that she was suspected of selling methamphetamine. Agents seized approximately an ounce of methamphetamine from Morris and learned that she had rented a hotel room at the Holiday Inn in South Charleston. Agents subsequently conducted a search of the room and seized approximately eight pounds of methamphetamine which Morris possessed. Morris admitted to agents that she was involved in distributing methamphetamine to multiple customers.
On August 28, 2019, agents arrested Morris and conducted a search of her residence in Charleston. During the search, agents recovered a Smith & Wesson .380 caliber pistol which Morris admitted she possessed. Morris also admitted that she was a methamphetamine user and thus, she was prohibited from possessing a firearm under federal law.
Morris faces 10 years to life in prison when sentenced on June 15, 2020.
This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ona Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Berkeley County woman sentenced to more than 12 years for role in cocaine, heroin, and fentanyl distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brandy Netz, of Martinsburg, West Virginia, was sentenced today to 151 months incarceration for her role in a cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Netz, age 35, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Hydrochloride” in September 2019. Netz admitted to working with someone to distribute cocaine in Berkeley County in January 2019.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, prosecuted the case on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for heroin and fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA –Trey Cardale Campbell, of Martinsburg, West Virginia, was sentenced today to 180 months incarceration for drug distribution, U.S. Attorney Bill Powell announced.
After a December 2019 trial, the jury found Campbell, age 27, guilty of one count of “Possession with Intent to Distribute Furanyl Fentanyl, Heroin, and Fentanyl.” Campbell distributed heroin, furanyl fentanyl and fentanyl in May 2017 in Berkeley County.The jury found Campbell not guilty of one count of “Distribution of Heroin.”
Assistant U.S. Attorneys Lara Omps-Botteicher and Timothy D. Helman prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County couple sentenced for fraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jimmie and Thanikwa Thompson, of Martinsburg, West Virginia, were sentenced today for to wire fraud, U.S. Attorney Bill Powell announced.
Jimmie, age 27, was sentenced to 37 months incarceration. Thanikwa, age 25, was sentenced to 37 months incarceration. Each pled guilty to one count of “Conspiracy to Commit Wire Fraud” in December 2019. The Thompsons secured a renter’s insurance policy from Allstate Insurance Company for $85,000 in February 2018. Later that month, the Thompsons purchased a space heater from a retailer and positioned it against an inflatable air mattress in their apartment on Winchester Avenue in Martinsburg. The couple then left the apartment with their dog to allow the space heater time to catch the apartment on fire. They then filed a fraudulent claim with Allstate to recover $50,000 of losses from the fire, and to secure a hotel room for several months of temporary housing.
The Thompsons were ordered to pay $54,891.28 in restitution.
Assistant U.S. Attorneys Lara Omps-Botteicher and Jarod J. Douglas prosecuted the cases on behalf of the government. The West Virginia State Fire Marshal and Allstate Insurance Company investigated.
Chief U.S. District Judge Gina M. Groh presided.
Arsonists Sentenced to 12 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Raymy Escoto (24, Bradenton) and Phillip Uscanga (25, Bradenton) each to 12 years in federal prison for arson. Escoto and Uscanga had pleaded guilty on September 25, 2019.
According to court documents, Escoto and Uscanga were part of an ongoing criminal enterprise in Manatee County through which they and others conspired to control a geographic territory around 11th Street East in Oneco; specifically with a heavily-armed trap house that doubled as a gang headquarters and prostitute and narcotics market.
On January 1, 2016, Uscanga and a co-conspirator drove a red Mustang by the home of Julio Tellez, and the co-conspirator shot at the home but did not hit anyone. Another co-conspirator, Jordan Rodriguez, followed in another vehicle, stopped, shot again at the home, and killed Tellez. Rodriguez also shot another man in the head, but that individual survived. Shortly thereafter, Uscanga and Escoto set fire to the red Mustang. They considered the car as evidence of the shooting and sought to destroy it.
Rodriguez was sentenced to three terms of life imprisonment for his role in this case.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Manatee County Sheriff’s Office, and the State Attorney’s Office (Twelfth Judicial Circuit). It was prosecuted by Assistant United States Attorneys Natalie Hirt Adams and Christopher F. Murray.
Armed Career Criminal Sentenced to 262 Months in Prison for Illegal Possession of A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of NORRIS DESHON ANDREWS, 34, to 262 months in prison for illegally possessing a firearm. ANDREWS, who was convicted by a federal jury on October 4, 2019, was sentenced earlier today before Judge Susan Richard Nelson in U.S. District Court in St. Paul, Minnesota.
As proven at trial, on May 15, 2018, police officers responded to a report of shots fired in the area of 25th and Girard Avenue North in Minneapolis. Witnesses described the shooter’s vehicle as an older model blue Chevrolet Tahoe. Officers recovered 13 discharged bullet casings from the scene. At trial, an eyewitness identified ANDREWS as the shooter.
As proven at trial, a little over an hour later, two individuals were shot and wounded in a parking lot near Plymouth Avenue North. Surveillance footage from a nearby security camera showed the shooter, who was later identified as ANDREWS, driving up to the scene in a blue Tahoe. ANDREWS and another individual got out of the vehicle and had a verbal altercation with several individuals standing on the sidewalk before ANDREWS pulled out a semi-automatic pistol and fired four shots, hitting two victims. ANDREWS then got back in the blue Tahoe and fired two more shots as he fled the scene. Hours later, officers located ANDREWS and took him into custody.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Minneapolis Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Assistant U.S. Attorneys Jeffrey S. Paulsen and Samantha H. Bates prosecuted the case.
Defendant Information:
NORRIS DESHON ANDREWS, 34
City of residence unknown
Convicted:
- Felon in possession of a firearm - armed career criminal, 1 count
Sentenced:
- 262 months in prison
- Five years of supervised release
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Armed Career Criminal Sentenced to 15 Years for Illegally Possessing FirearmRead the Press Release
Jacksonville, FL – U.S. District Judge Marcia Morales Howard today sentenced Timothy Tijwan Doctor (42, Jacksonville) to 15 years in federal prison for possessing a firearms as a convicted felon. Due to his extensive felony criminal history, Doctor qualified as an Armed Career Criminal and faced an enhanced penalty.
According to court documents, on August 11, 2018, multiple officers from the Jacksonville Sheriff’s Office responded to a call at a home in Jacksonville. As officers arrived, they observed a crowd in front of the residence, with persons yelling, and what appeared to be a confrontation. As officers separated the individuals in the crowd, Doctor was identified as having a firearm. Officers made contact with Doctor and removed a loaded Ruger .9mm pistol from his waistband. Further investigation determined that Doctor is a multi-time convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Jacksonville Field Office and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Arizona Man Pleads Guilty to Taney County Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – An Arizona man has pleaded guilty in federal court to distributing large quantities of methamphetamine in Taney County, Missouri.
Darcell M. Mills, 41, pleaded guilty before U.S. Magistrate Judge David P. Rush on Friday, March 13, to one count of conspiracy to distribute methamphetamine.
On Jan. 14, 2019, law enforcement received information that Mills had arrived in Branson, Missouri, with approximately five pounds of methamphetamine to sell. Officers searched a hotel room and a truck associated with Mills and found 303 grams of methamphetamine in the hotel room and 500 grams of methamphetamine hidden in the truck. Officers followed Mills to a residence in Lampe, Missouri, where he was arrested. After Mills was arrested, he admitted that he brought methamphetamine from Tucson to sell in Branson for $500 per ounce.
Mills also admitted that during a four-month stay in Branson in 2018, he was selling approximately 15.5 pounds of methamphetamine every week and a half. Mills sold approximately 165 pounds of methamphetamine while he was in Missouri. Mills said he left Branson in October 2018, after two loads of methamphetamine were seized by law enforcement.
Under federal statutes, Mills is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life 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. 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 Abram McGull II. It was investigated by the Drug Enforcement Administration, the Branson, Mo., Police Department, Homeland Security Investigations, the Christian County, Mo., Sheriff’s Department, the Ozark, Mo., Police Department, and the Missouri State Highway Patrol.
14 March 2020
U.S. Attorney’s Office Hosts Tribal Officers for Special Law Enforcement Commission TrainingRead the Press Release
The U.S. Attorney’s Office for the Northern District of Oklahoma in coordination with the Bureau of Indian Affairs (BIA) hosted tribal partners this week for Special Law Enforcement Commission training. The course was provided to officers who will be cross commissioned to work with the BIA.
“I am proud to partner with the Bureau of Indian Affairs to host tribal officers for Special Law Enforcement Commission training. Successful completion of this course allows tribal officers to enforce federal law in Indian country,” said U.S. Attorney Trent Shores. “This collaboration is critical to fight violent crime in Indian Country and to help better provide justice to victims and their families.”
Tribal Officers from Chickasaw, Muscogee (Creek), Choctaw, and Sac and Fox Nations attended the training. Assistant U.S. Attorneys taught sessions covering Indian Country jurisdiction, report writing and testifying, court amendment issues and discovery obligations.
On day one of the training, Tribal Liaison Shannon Cozzoni, discussed Indian Country Jurisdiction and elements of federal crimes, including homicide, assault, and assault on federal officers. She further addressed domestic abuse, sex crimes and child abuse. Deputy Criminal Chief Timothy Faerber reviewed key participants and procedural tools available to federal investigators, procedural steps in a federal prosecution, and procedural requirements that protect the rights of the accused.
On day two of the training, Victim Specialist Gayla Stewart provided an overview of the Crime Victims’ Rights Act and how to comply with the law. The law specifically outlines victims’ rights during the prosecution process. The Victim Specialist communicates with a victim about his or her case progression through the federal judicial system, helping to ensure the law is fulfilled and the victim receives needed support.
Also on day two, Criminal Chief Allen Litchfield discussed important legal considerations for comprehensive report writing. He further discussed courtroom testimony and the importance of accurately describing evidence and its relevance to the case. Appellate Chief Leena Alam instructed officers about practical applications of the Fourth Amendment. Her session was designed to help law enforcement officers ensure that they conduct traffic stops, searches, and seizures consistent with the Constitution. Assistant U.S. Attorney Ryan Roberts exposed the officers to the ethical, procedural, and Constitutional requirements concerning the criminal discovery process. Finally, Assistant U.S. Attorney Jeffrey Gallant ended the day with a session on civil liability, litigation, and the Federal Torts Claim Act process, which involves the legal principles concerning civil liability for law enforcement agents.
Tribal officers finished training on day three with a review and qualifying exam.
Five Defendants Convicted of Sex Trafficking, Alien Smuggling and Money LaunderingRead the Press Release
Following two weeks of trial, a federal jury in Brooklyn last night returned guilty verdicts convicting Jose Miguel Melendez-Rojas, Francisco Melendez-Perez, Abel Romero-Melendez, Jose Osvaldo Melendez-Rojas and Rosalio Melendez-Rojas, all members of the Melendez-Rojas Organization, of sex trafficking, sex trafficking conspiracy, sex trafficking of minors, interstate prostitution, alien smuggling and money laundering conspiracy. When sentenced by United States District Judge Allyne R. Ross, the defendants each face a maximum sentence of life imprisonment on the most serious charge. A sixth co-defendant, Fabian Reyes-Rojas, pleaded guilty to sex trafficking conspiracy and sex trafficking on December 27, 2019. Jose Osvaldo Melendez-Rojas and Rosalio Melendez-Rojas were extradited to the United States from Mexico in October 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the verdicts.
Between 2006 and July 2017, the defendants transported women and girls, including minors, to the United States and coerced them to work in prostitution. The defendants used false promises of love, marriage and a better life to lure their victims into romantic and sexual relationships, and then isolated them from their families by bringing them to live with the defendants in Tenancingo, Mexico. Upon arrival in the United States, the defendants resorted to brutal beatings, threats of violence, forced abortions and psychological manipulation to compel their victims to work in prostitution in New York City, Long Island, New Jersey, Connecticut and Delaware. The defendants took the proceeds generated from the victims’ prostitution, and laundered it to conceal its source.
At the trial, a victim identified as “Delia” testified that she was forced into prostitution by Melendez-Perez and his uncle Rosalio Melendez-Rojas when she was only 14 years old. When she refused to work, Melendez-Perez beat her, and when he thought she might be pregnant, he tried to force her to have a miscarriage. During their six to seven-hour working shifts, the victims were typically forced to have sex with 15 to 20 men. The defendants confirmed the number of customers by counting the number of unused condoms returned at the end of the victims’ shifts.
“The crimes committed by the members of the Melendez-Rojas Trafficking Organization were horrific,” stated United States Attorney Donoghue. “It is my hope that today’s verdicts bring some measure of closure to the young women who bravely testified during the trial and who suffered greatly while under the control of the defendants. We will not tolerate the sexual exploitation of women and girls by brutal criminals like these defendants.”
“The atrocities this organization committed against young women, robbing them of their youth and forcing them to work as prostitutes, are disgraceful,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI and our partners work tirelessly to gain the trust of those who are forced into this reprehensible crime, ensuring these victims and their families are given an opportunity once they are rescued from sex traffickers. This conviction does not just point to the outstanding work of the investigative team, it serves as a testament to the will and courage of those victims to tell their stories.”
The investigation, prosecution, bilateral enforcement action and extradition of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in the bilateral initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of more than 170 defendants in multiple cases in Georgia, New York, Florida and Texas, in addition to numerous federal and state prosecutions of associated sex traffickers in Mexico. The extraditions in this case are the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 80 defendants for sex trafficking; assisted more than 150 victims, including over 40 minors; reunited 19 victims’ children with their mothers; and secured restitution orders of over $4 million on behalf of trafficking victims.
The government’s case is being prosecuted by Assistant United States Attorneys Tanya Hajjar, Erin Argo and Gillian Kassner.
The Defendants:
JOSE MIGUEL MELENDEZ-ROJAS
Age: 43
MexicoFRANCISCO MELENDEZ-PEREZ (also known as “Paco” and “El Mojarra”)
Age: 25
Queens, New YorkABEL ROMERO-MELENDEZ (also known as “La Borrega” and “Borrego”)
Age: 33
Queens, New YorkJOSE OSVALDO MELENDEZ-ROJAS
Age: 43
MexicoROSALIO MELENDEZ-ROJAS (also known as “Leonel, “Wacho” and “El Guacho”)
Age: 38
MexicoCo-Defendant Who Previously Pleaded Guilty:
FABIAN REYES-ROJAS
Age: 40
MexicoE.D.N.Y. Docket No. 17-CR-434 (ARR)
Columbus Man Sentenced to 144 Months for Receiving Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Christopher Longo, 38, was sentenced today in federal court in Omaha for receipt of child pornography and possession of child pornography. United States District Judge Robert F. Rossiter, Jr. sentenced Longo to 144 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Longo will serve a 10-year term of supervised release and will be required to register as a sex offender.
In May 2018 officers with the Columbus Police Department received a Cyber Tipline Report stating that an IP address associated with a Columbus resident had uploaded child pornography to an online account. Officers executed a search warrant at Longo’s residence in November 2018. Longo initially admitted to downloading child pornography and later, after failing a polygraph examination, admitted to multiple instances of sexual contact with minors. Officers searched a computer and cell phone seized from Longo’s residence and located at least 682 images of child pornography on those devices.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Columbus Police Department.
13 March 2020
Wisconsin Man Charged with Making a False Statement in the Attempted Acquisition of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Milwaukee, Wisconsin, man has been indicted by a federal grand jury for two counts of Making a False Statement in the Attempted Acquisition of a Firearm.
William Eugene Baehring, age 67, was indicted on February 4, 2020. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 12, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 30, 2019, and January 4, 2020, Baehring twice attempted to purchase firearms from licensed dealers of firearms. Baehring knowingly made false and fictitious written statements in an attempt to deceive the licensed dealers.
The charges are merely accusations and Baehring is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Minnehaha County Sheriff’s Office. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Baehring was released on bond pending trial which has not been set yet.