Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 3 February 2020
Rapid City Man Indicted in Kidnapping of JuvenileRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Kidnapping of a Minor by a Registered Sex Offender and Transportation of a Minor with Intent to Engage in Criminal Sexual Activity by a Registered Sex Offender.
Christopher Bald Eagle, age 65, was charged on January 7, 2020. Bald Eagle appeared before U.S. Magistrate Judge Daneta Wollmann on January 29, 2020, and pleaded not guilty to the charges. The penalty upon conviction is a mandatory minimum of 35 years up to a maximum of life in federal prison and/or a $250,000 fine, a mandatory minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Bald Eagle, a previously registered sex offender, transporting a minor female from Pine Ridge, South Dakota, to Denver, Colorado, against her will in December 2019 and sexually assaulting her. The charges are merely an accusation and Bald Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by Federal Bureau of Investigation and the Denver Police Department. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Bald Eagle was detained pending trial. A trial date has not been set.
Rap Artist “Chad Focus” Pleads Guilty to Federal Wire Fraud ConspiracyRead the Press Release
Baltimore, Maryland – Chad Arrington, a/k/a “Chad Focus,” age 32, of Randallstown, Maryland, pleaded guilty today to a federal wire fraud conspiracy in connection with a scheme to use a company credit card to make over $4.1 million in unauthorized purchases.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, Arrington was employed by Company 1 as a Search Engine Optimization (“SEO”) Specialist from approximately 2011 to August 2018. As an SEO Specialist, Arrington was responsible for promoting and marketing Company 1’s products and services online. Company 1 assigned Arrington an American Express company credit card (the “credit card”) after Arrington signed an agreement in which he agreed to use the credit card only for business expenses related to Company 1.
Arrington admitted that from at least January 2015 through August 2018, Arrington and four co-conspirators used the credit card for fraudulent purchases, including to promote his hip-hop artist alter-ego, Chad Focus and Focus Music Entertainment and to make unauthorized purchases that benefitted them each personally. The co-conspirators were from Owings Mills, Maryland; York, Pennsylvania; Alexandria, Virginia; and Sarasota, Florida, respectively. According to the plea agreement, Arrington used the credit card to make over $1.5 million in unauthorized purchases from entities and accounts controlled by Co-Conspirator 2 and Co-Conspirator 3, and then Co-Conspirator 2 and Co-Conspirator 3, in turn, kicked back hundreds of thousands of dollars to Arrington by funneling cash payments to Arrington and to accounts controlled by Arrington.
For example, Arrington admitted that he used the credit card to purchase sound equipment, studio kits, instruments, and music technology, which he then used to create an artist alter-ego “Chad Focus,” and produce a number of hip-hop songs through the company he formed, Focus Music Entertainment LLC. Arrington then used the credit card to make additional unauthorized purchases: from online streaming platforms that offered services for artists to pay to have the platforms artificially increase Arrington’s song play counts on other music platforms; to purchase “likes,” “followers,” “tags,” and “views” across social media and viewing platforms; to purchase services from a company that promoted mixtape videos and singles, his image, and music; and to make unauthorized payments to multiple billboard companies to display images of Arrington and his website throughout the United States and to promote Chad Focus and Focus Music Entertainment LLC. From January 2015 through August 2018, Arrington charged the credit card over $300,000 for unauthorized international and national travel expenses, hotels, airfares, night life and other miscellaneous expenses for himself and for Co-Conspirators 1 and 2. In addition, Arrington made over $100,000 in unauthorized purchases of clothing and accessories, including hats that displayed his artist name “Focus,” and other apparel, which he provided to his associates free of charge. Arrington also admitted that he utilized the credit card to make more than $275,000 in purchases related to a bike-sharing business, including electric bikes, hover boards, and scooters. Arrington also admitted that he used the credit card for concert tickets, various unauthorized international and national travel expenses, including hotels, airfare, restaurant bills, luxury vehicle rentals, and nightlife expenses, and for travel expenses and airline tickets for the benefit of Co-Conspirators 1 and 2.
In order to conceal the scheme, Arrington asked Co-Conspirator 1 and Co-Conspirator 4 to use computer software to make false entries on the credit card billing statements in order to conceal the recipient of the payments from Arrington’s supervisor and Company 1. In addition, Arrington forged the signature of his supervisor on his credit card billing statements to make it appear as though he had received approval for certain purchases when, in fact, he had not. Arrington then sent those false payment authorizations to other employees who relied on the authorizations to ultimately pay off the outstanding balance of the credit card.
As detailed in his plea agreement, Arrington will be required to pay restitution in the full amount of the victim’s losses, $4,142,435.31.
Arrington faces a maximum sentence of 20 years in prison for the wire fraud conspiracy. U.S. District Judge Richard D. Bennett has scheduled sentencing for May 14, 2020 at 3:00 p.m.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Derek E. Hines and Mary W. Setzer, who are prosecuting the case.
# # #
Pelham- And Bronx-Based Tax Preparer Pleads Guilty in White Plains Federal Court to Preparing and Filing False Income Tax ReturnsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that MICHAEL MAGNALDI, a former Pelham resident and an owner and operator of a Bronx-based tax preparation business, pled guilty to one count of aiding and assisting in the filing of false tax returns for tax years 2014 to 2017 and one count of subscribing to a false tax return for tax year 2016. MAGNALDI pled guilty before U.S. Magistrate Judge Paul E. Davison.
U.S. Attorney Geoffrey S. Berman said: “After serving in the New York City Department of Finance for 15 years, Michael Magnaldi betrayed the public’s trust by engaging in a years-long pattern of preparing false returns for clients and falsely understating his own income the same year he bought a $705,000 home in Pelham. Magnaldi’s fraudulent conduct undermined the government’s ability to fund its mandates and cost the government $476,184 in tax revenue. As we enter tax filing season, Magnaldi now stands convicted of two counts of criminal tax charges and awaits sentencing for his crimes.”
IRS-CI Special Agent-in-Charge Jonathan D. Larsen said: “As the tax season heats up, this is an important reminder to taxpayers to beware of unscrupulous tax return preparers. Fraudulent tax return preparers harm taxpayers, legitimate businesses, and the American public. IRS-CI is steadfast in its commitment to ending such tax fraud and today’s guilty plea shows the serious consequences for violating this nation’s tax laws.”
According to the allegations contained in the Information to which MAGNALDI pled guilty, MAGNALDI’s plea agreement, and statements made in court:
MAGNALDI has years of audit experience in the New York City Department of Finance. Since at least 2014, MAGNALDI owned and operated MGM Tax Solutions, a tax preparation business located in the Bronx, New York.
As charged in Count One of the Information, for the 2014 through 2017 tax years, MAGNALDI prepared for clients 37 false Forms 1040 containing, among other false information, false Schedule D capital losses, false Individual Retirement Account (“IRA”) contribution deductions, and false Education Tax credits. MAGNALDI unsuccessfully attempted to conceal his role in preparing these fraudulent tax returns by not listing his or any name as the return preparer, to make it seem as if the returns were self-prepared. In response to IRS correspondence audits, MAGNALDI caused additional false forms to be sent to the IRS, in an attempt to substantiate the false losses, deductions, and credits claimed on the tax returns. The total tax loss for the 37 false individual income tax returns of MAGNALDI’s clients is $232,767.
As charged in Count Two of the Information, in addition to the false filings prepared on behalf of his clients, MAGNALDI also falsely understated his own and his business’s income on their 2016 tax returns, the same year he bought a roughly $705,000 home in Pelham. Specifically, MAGNALDI falsely understated income on MGM Tax Solutions’ 2016 Form 1120S, which understated flow-through income on MAGNALDI’s 2016 Form 1040. The tax loss for MAGNALDI’s understatement of flow-through income is $243,417.
The total tax loss resulting from both schemes is $476,184.
* * *
MAGNALDI, 54, formerly of Pelham, New York, and currently living in St. Augustine, Florida, pled guilty to one count of aiding and assisting in the filing of false tax returns for tax years 2014 to 2017 and one count of subscribing to a false tax return for tax year 2016, each of which carries a maximum sentence of three years in prison. As part of the plea agreement, MAGNALDI has agreed to pay restitution to the IRS in the amount of at least $476,184 plus interest and penalties. Sentencing is scheduled for May 8, 2020, at 10:00 a.m., before U.S. District Judge Vincent L. Briccetti.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney David R. Felton is in charge of the prosecution.
Pawtucket Man Admits Robbing Two Banks Within WeeksRead the Press Release
PROVIDENCE – A Pawtucket man today admitted to robbing two banks within a span of four-weeks in mid-summer 2019, by presenting tellers with threatening notes.
Christopher S. Oladapo, 29, admitted that he robbed a Providence branch of Citizens Bank on July 27, 2019, of $3,268, and that he robbed a Citizens Bank branch in Pawtucket on August 31, 2019, of $2,031.
Oladapo admitted that in the first robbery he handed a note to a teller that read “Don’t be a hero there’s two of us in here Give me all the money in your draw Call police 15 mins after I walk out Your being watched keep your hands where I can see.”
In the second robbery he passed a note to a teller that read, “act normal give me all the money you have, you are being watched. Give me the note back and don’t call the police for 20 minutes.”
Appearing today before U.S. District Court Judge William E. Smith, Oladapo pleaded guilty to two counts of bank robbery, announced United States Attorney Aaron L. Weisman, Providence Police Chief Colonel Hugh T. Clements, Jr., Pawtucket Police Chief Tina Goncalves, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
Oladapo is scheduled to be sentenced on May 8, 2020.
The case is being prosecuted by Assistant U.S. Attorneys Christine D. Lowell and Sandra R. Hebert.
The robberies were investigated by the Providence and Pawtucket Police Departments, with the assistance of the FBI.
###
Pawn Shop Owner Pleads Guilty to Tax EvasionRead the Press Release
LAS VEGAS, Nev. – Barbara Doutt Forbes, 58, of Las Vegas, pleaded guilty today to one count of tax evasion, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.
According to court documents, from 1997 to 2017, Forbes owned six pawn shops in North Dakota and South Dakota. From 2009 to 2012, she directed employees to delete gold jewelry from the stores’ electronic inventory and send that jewelry to her in Las Vegas. Forbes then sold the gold jewelry to a refining company in Philadelphia. In exchange, the refining company wired a total of $855,116 to Forbes’ personal bank accounts. Forbes failed to report this income on her tax returns. During an IRS audit of her tax returns, Forbes created and provided to the IRS false bank statements that omitted the wire transfers. As a result, Forbes owed $281,388 in income taxes to the United States. As part of her plea agreement, Forbes agreed to pay the full amount of owed income taxes back to the IRS.
This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Jamie Mickelson is prosecuting the case.
Forbes is scheduled to be sentenced by U.S. District Judge Jennifer A. Dorsey on May 11, 2020. Forbes faces a maximum statutory penalty of five years in years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
###
Owsley County Man Pleads Guilty to Methamphetamine Trafficking and Possession of Firearm in Furtherance of Drug TraffickingRead the Press Release
LONDON, Ky.- James Everett Smith, 51, of Booneville, Kentucky, admitted in federal court Monday, before U.S. District Judge Robert Wier, that he possessed with intent to distribute 500 grams of more of methamphetamine and possessed a firearm in furtherance of drug trafficking.
Smith admitted that on September 23, 2018, law enforcement officers responded to a report of shots fired near his residence. Officers approached Smith as he attempted to get in his van and found him in possession of 19 grams of methamphetamine and two pistols. Smith gave officers permission to search his residence, where they found approximately 685 grams of methamphetamine, two additional pistols, two shotguns, $1,170, and digital scales. In his plea agreement, Smith acknowledged possessing the methamphetamine with the intent to distribute it, and to possessing the firearms in furtherance of drug trafficking.
According to the plea agreement, Smith was prohibited from possessing firearms because of multiple prior felony convictions, including two 2006 Manufacturing Methamphetamine convictions from Owsley County.
Smith was indicted in June 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge for the Louisville Division of ATF; and Commissioner Rodney Brewer, Kentucky State Police; jointly announced the guilty plea.
The investigation was conducted by KSP and ATF. The United States was represented by Assistant U.S. Attorney Jason Parman.
Smith is scheduled to be sentenced on May 19, 2020. He faces a mandatory minimum 20 years in prison, up to life in prison, and a maximum fine of $20 million. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This is a case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
— END —
Owners of Underground, International Financial Institutions Plead Guilty to Operating Unlicensed Money Transmitting BusinessRead the Press Release
SAN DIEGO – Bing Han and Lei Zhang pleaded guilty in federal court today for operating unlicensed money transmitting businesses. Their guilty pleas are believed to be the first in the United States for a developing form of unlawful underground financial institution that transfers money between the United States and China, thereby circumventing domestic and foreign laws regarding monetary transfers and reporting, including United States anti-money laundering scrutiny and Chinese capital flight controls.
Special Agents from Homeland Security Investigations, IRS Criminal Investigation Las Vegas Financial Crimes Task Force, and the Drug Enforcement Administration led the investigation into Han’s and Zhang’s financial operations. As admitted in the plea agreements entered today before U.S. Magistrate Judge William V. Gallo, Han and Zhang would collect U.S. dollars (in cash) from various third-parties in the United States and deliver that cash to a customer, typically a gambler from China who could not readily access cash in the United States due to capital controls that limit the amount of Chinese yuan an individual can convert to foreign currency at $50,000 per year. Upon receipt of the U.S. dollars, the customer (i.e., the gambler) would transfer the equivalent value of yuan (using banking apps on their cell phones in the United States) from the customer’s Chinese bank account to a Chinese bank account designated by defendant Han or Zhang. For facilitating these transactions, Zhang and Han were paid a commission based on the monetary value illegally transferred.
U.S. Attorney Robert S. Brewer, Jr. said, “The United States stands vigilant against the constantly evolving ways in which individuals and organizations seek to operate outside the conventional financial system. Violating United States anti-money laundering laws not only endangers the integrity of the global financial system, but doing so hinders the ability of law enforcement officers to confront criminal conduct including money laundering and narcotics trafficking.”
Han and Zhang further admitted today that they were regularly introduced to customers by casino hosts, who sought to increase the gambling play of the casino’s customers. By connecting cash-starved gamblers in the United States with illicit money transmitting businesses, like those operated by Han and Zhang, the casinos increased the domestic cash play of their China-based customers. All a gambler needed was a mobile device that had remote access a China-based bank account. As a result, Han and Zhang managed to transmit and convert electronic funds in China into hard currency in the United States; all while circumventing the obstacles imposed both by China’s capital controls, and the anti-money laundering scrutiny imposed on all United States financial institutions. For their efforts, the casino hosts often received a cut of Han’s or Zhang’s commission.
“This case demonstrates that those who attempt to use underground or unregulated money transfer systems cannot evade detection and punishment,” said Cardell T. Morant, acting Special Agent in Charge for HSI San Diego. “HSI and our domestic and foreign partners will continue to work together aggressively to investigate and prosecute those who seek to hide their involvement in transnational crime by employing such international money laundering schemes.”
“Criminals keep trying to find ways to circumvent our financial system by laundering money,” said Tara Sullivan, Special Agent in Charge of IRS Criminal Investigation Las Vegas. “Unfortunately for Han and Zhang, the IRS Criminal Investigation Las Vegas Financial Crimes Task Force was relentless in seeking out and disrupting their underground banking network and will continue to work with our law enforcement partners to uphold anti-money laundering laws”.
“Although Mr. Han and Mr. Zhang did not admit to transacting narcotics proceeds in their unlicensed money transmitting businesses, we know that drug trafficking organizations are willing to use a variety of businesses to launder proceeds from the sales of drugs,” said DEA Special Agent in Charge John W. Callery. “DEA and our outstanding partners will continue to investigate illicit financial transactions and anyone who may operate businesses that stand to profit from illegal drug sales.”
U.S. Attorney Brewer commended the diligence and dedication of Assistant U.S. Attorneys Daniel Silva and Mark W. Pletcher, the prosecutors on this case. Sentencing for Mr. Han is scheduled to occur on May 1, 2020 before Hon. Janis L. Sammartino. Sentencing for Mr. Zhang is scheduled to occur on May 4, 2020 before Hon. William Q. Hayes. Han and Zhang both face a maximum of 5 years in prison.
DEFENDANTS Case Numbers 20-CR-369-JLS (Han)
Case Number 20-CR-370-WQH (Zhang)
Bing Han Las Vegas, NV Age: 44
Lei Zhang Las Vegas, NV Age: 40
SUMMARY OF CHARGES*
Operation of Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Homeland Security Investigations
IRS Criminal Investigation Las Vegas Financial Crimes Task Force
Drug Enforcement Administration
*The charges and allegations contained in an indictment or information are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Omaha Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Joe Kelly announced that Michael Stine, 33, of Omaha, Nebraska, was sentenced today to 46 months in prison by Senior United States District Judge Laurie Smith Camp for being a felon in possession of a firearm. There is no parole in the federal system. Following his release from prison, Stine will serve 3 years of supervised release.
On February 22, 2019, officers observed a 2008 Jetta parked in a handicapped stall at America’s Best Hotel parking lot. Officers ran a data check on the plates and determined that the plates belonged to another vehicle. Officers made contact with the vehicle and observed four occupants. The officer ran a data check and learned that Stine was a convicted sex offender who had a warrant out for his arrest out of Kansas. The officers attempted to remove Stine from the vehicle and he resisted. A Taser was utilized and he fell out of the vehicle, dropping a short shotgun. Stine has a prior felony conviction and is prohibited from possessing a firearm.
This case was investigated by the Omaha Police Department.
New Bedford "Middle-Man" in Crack Cocaine Sales Pleads GuiltyRead the Press Release
PROVIDENCE – A New Bedford man appeared in U.S. District Court in Providence today and admitted that on at least four occasions he served as a middle-man in the sale and delivery of crack cocaine to an individual in Rhode Island.
Jordan Fernandes, 30, admitted that between February 12, 2018, and August 9, 2018, he participated in the sale and delivery of between 13.9 and 33.08 grams of crack cocaine for between $850 and $2,550.
The sale price included a delivery fee Fernandes established for each transaction.
Appearing today before U.S. District Court Judge William E. Smith, Fernandes pleaded guilty to two counts of conspiracy to possess with intent to distribute cocaine base and four counts of possession with intent to distribute and distribution of cocaine base.
Fernandes is scheduled to be sentenced on May 8, 2020.
Fernandes’ guilty plea is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Providence Police Chief Colonel Hugh T. Clements, Jr.
The case is being prosecuted by Assistant United States Attorney Terrence P. Donnelly.
###
Minnetonka Personal Injury Attorney Pleads Guilty to Health Care Fraud ConspiracyRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of WILLIAM KYLE SUTOR III, 37, to conspiracy to commit health care fraud. SUTOR, who was charged by felony Information on December 30, 2019, entered his plea today before Judge Nancy E. Brasel in U.S. District Court in St. Paul, Minnesota. SUTOR will be sentenced at a later date.
United States Attorney Erica H. MacDonald stated, “This defendant, a personal injury attorney, participated in an all too common healthcare fraud scheme involving a network of chiropractors and runners. The #1 goal of the scheme was to steal money from insurance providers, resulting in higher premiums for Minnesota consumers. This is unacceptable. I applaud the diligent investigators and prosecutor who continue to pursue these cases.”
“The conduct perpetrated by Mr. Sutor makes it harder for the legitimate lawyers and health care providers to help Minnesotans who really are injured,” said Minnesota Department of Commerce Commissioner Steve Kelley. “The agents at the Minnesota Commerce Fraud Bureau will continue to investigate individuals who think they are above the law.”
“As demand for health benefits goes up, so do the losses from health care fraud like this,” said FBI Minneapolis Special Agent in Charge, Jill Sanborn. “Our special agents in partnership with Minnesota Commerce Fraud Bureau used every tool we have to dissect this scheme and stop this defendant before he could do more damage,” Sanborn said.
According to the defendant’s guilty plea and documents filed in court, between 2015 and 2016, SUTOR, a licensed personal injury attorney, engaged in a scheme to defraud providers of automobile insurance policies. SUTOR began working with chiropractors and patient recruiters, referred to as “runners.” As part of the scheme, the chiropractor would pay the runner a fee, typically between $1,000 and $1,500, for every individual that the runner brought to the chiropractor’s clinic to become a patient. In addition, SUTOR would pay the runner a fee, typically $300, for every individual that became a client of SUTOR’s. SUTOR, the chiropractors, and the runners took steps to conceal their scheme, including making kickback payments in cash or by checks written out to appear that they were payments for legitimate legal services.
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the FBI.
Assistant U.S. Attorney David J. MacLaughlin is prosecuting the case.
Defendant Information:
WILLIAM KYLE SUTOR III, 37
Minnetonka, Minn.
Convicted:
- Conspiracy to commit health care fraud, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mexican man admits to smuggling tons of marijuanaRead the Press Release
LAREDO, Texas – A 34-year-old citizen of Mexico has pleaded guilty to importing a large quantity of marijuana into the United States, announced U.S. Attorney Ryan K. Patrick.
On Nov. 30, 2019, Juan Antonio Hernandez-Zapata attempted to enter into the United States in a commercial tractor trailer at the World Trade Bridge in Laredo. There, a K-9 alerted to the possible presence of narcotics. Following a subsequent x-ray examination, authorities located 214 bundles in his trailer which tested positive for marijuana.
The drugs weighed approximately 5,360 pounds (approximately 2.5 tons) and have a street value of over $1 million.
Sentencing will be set before U.S. District Judge Diana Saldana at a later date. At that time, Hernandez-Zapata faces up to life in federal prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Jennifer Day is prosecuting the case.
Methamphetamine Dealer Sentenced to Ten Years in PrisonRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Darell Leon Hardin was sentenced to 10 years imprisonment on January 14, 2020 for his participation in a methamphetamine distribution conspiracy. Hardin pled guilty to the charge in August of 2018.
United States District Court Judge William H. Steele imposed the 10-year sentence. The judge ordered that when Hardin is released from imprisonment, he will serve five years of supervised release. Court records established that on December 7, 2017 the Drug Enforcement Administration (DEA) made a controlled buy of 223.36 grams of methamphetamine from Hardin. Hardin, from California, was seen by law enforcement agents when he got off a bus in Mobile the previous day. Further surveillance showed the defendant arrive at the buy location and get into and exit the confidential informant’s vehicle at the location of the buy. There were also numerous recorded telephone calls to the defendant setting up the controlled buy. Hardin delivered the 223.36 grams of methamphetamine to the informant. Hardin was later arrested in California and he had a kilogram of methamphetamine in his home during the arrest and search of his home.
The case was investigated by the Drug Enforcement Administration and the City of Mobile Police Department, Narcotics Unit. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney George May.
Methamphetamine Dealer Sentenced to More Than Seven Years in PrisonRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Wayne Maurice Lafitte was sentenced to 85 months imprisonment on January 15, 2020 for his participation in a methamphetamine distribution conspiracy. Lafitte pled guilty to the charge in June of 2018.
United States District Court Judge Callie V.S. Granade imposed the 85 month sentence. The judge ordered that when Lafitte is released from imprisonment, he will serve ten years of supervised release. Court records established that Mobile County Sheriff’s Office narcotics officers executed a search warrant at a storage facility where Lafitte stored methamphetamine and recovered approximately 584 grams of methamphetamine.
In addition, on June 13, 2017 a Mobile County Street Enforcement Narcotics Team (MCSENT) confidential informant (CI) ordered methamphetamine from Lafitte. Lafitte sent Exaviera Deagnes Maxie to deliver the methamphetamine and Maxie delivered approximately 7.3 grams of methamphetamine from Lafitte to the CI. On June 26, 2017, MCSENT officers executed a search warrant at Maxie’s home in Mobile County and recovered approximately 24.6 grams of methamphetamine from Maxie’s purse. The methamphetamine was packaged for resale. Maxie obtained the methamphetamine from Lafitte.The case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Mobile County Sheriff’s Office and the Mobile County Street Enforcement Narcotics Team. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney George May.
Member of Violent Baltimore “Trained to Go” Gang Pleads Guilty to Federal Racketeering and Drug ConspiraciesRead the Press Release
Baltimore, Maryland – Roger Taylor, a/k/a Milk, age 28, of Baltimore, pleaded guilty today to the federal charges of conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG), and to conspiracy to possess with intent to distribute controlled substances. Taylor, a fugitive since July 2017, was arrested on June 30, 2019. The racketeering activities to which Taylor pleaded guilty are: narcotics distribution and robberies of other individuals, including rival drug dealers and gang members in TTG territory.
In a related case, on January 31, 2020, John Lewis Harrison, a/k/a Binky, age 29 and Taurus Tillman, age 30, a/k/a Tosh, both of Baltimore, Maryland, pleaded guilty to the federal charge of assaulting employees of the U.S. Marshals Service (USMS) while they were detained and being transported to and from the courtroom during their trial.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; U.S. Marshal Johnny Hughes; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby.
“Roger Taylor and his fellow gang members brought violence and misery to West Baltimore, in the form of murders, armed robberies, and drug dealing. After his capture as a fugitive from justice, Taylor will now likely spend over a decade in federal prison,” said U.S. Attorney Robert K. Hur. “Criminals who are terrorizing our neighborhoods should be deterred by the reality of years spent in a federal prison far from home—where there is no parole. Ever.”
According to his plea agreement, Taylor was associated with a drug trafficking organization that operated in the Sandtown neighborhood of West Baltimore. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity. Taylor was self-identified member of a group, known as the “Young Go Getters” (YGG), which assisted members and associates of the criminal enterprise in their activities. As of 2014, the organization became known as “Trained To Go” or “TTG.”
As detailed in his plea agreement, Taylor, who referred to himself as YGG Milk, along with other members of YGG, provided support to TTG in the form of money, drugs, and other assistance. For example, on January 22, 2016, law enforcement learned that two members of TTG were looking for several individuals that had robbed a member of TTG of a small quantity of narcotics. The two members of TTG were spotted by law enforcement driving in the area of the 2500 block of West Lafayette Avenue in west Baltimore. In an effort to escape the police, the occupants of the car fled after crashing into a snow bank. Investigation revealed the car had been provided to them by Taylor.
On August 10, 2015, Postal Inspectors interdicted four packages addressed to a fictitious addressee in Windsor Mill, Maryland. Because the address was also a false address, the packages could not be delivered. Taylor, in an effort to obtain the packages, contacted the post office and requested the packages be re-delivered to a different address in Windsor Mill. Additional investigation revealed that the four packages contained 9.9 kilograms of cocaine.
During the course of the conspiracy, the quantity of cocaine within the scope of Taylor’s agreement with his co-conspirators and reasonably foreseeable as to Taylor was equivalent to between 15 and 50 kilograms of cocaine.
Taylor and the government have agreed that, if the Court accepts the plea agreement, Taylor will be sentenced to between 11 and 14 years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for April 1, 2020.
The leader of the gang, Montana Barronette, a/k/a Tana, and Tanner, age 23, and his brother, Terrell Sivells, a/k/a Rell, age 27, both of Baltimore, were each sentenced to life in prison on February 15 and April 26, 2019, respectively. Co-defendants Brandon Wilson, a/k/a Ali, age 24, and Taurus Tillman, a/k/a Tash, age 30, both of Baltimore, were each sentenced to 25 years in prison on March 1 and May 21, 2019, respectively. Two other co-defendants, John Harrison, a/k/a Binkie, age 28, and Linton Broughton, a/k/a Marty, age 25, both from Baltimore, were sentenced to life in prison and to 30 years in prison, respectively, on March 15, 2019. Three other TTG members previously pleaded guilty and were sentenced to between five and 25 years in prison.
As detailed in the plea agreements of Harrison and Tillman, from September 17, 2018 through October 31, 2018, a criminal trial was held in U.S. District Court in Baltimore, in the matter of United States v. Barronette, et al. Harrison and Tillman were both defendants in the case and were detained before and during the trial. During the trial, members of the U.S. Marshals Service were responsible for transporting the defendants, including Harrison and Tillman, to and from the courtroom.
Harrison and Tillman admitted that on September 21, 2018, they assaulted two Deputy U.S. Marshals and a U.S. District Court Security Officer as they were being escorted from the courtroom during a break in the trial.
Tillman was immediately sentenced to one year in federal prison, consecutive to the 25 years he is already serving for the racketeering conspiracy. U.S. District Judge Catherine C. Blake has scheduled sentencing for Harrison on April 29, 2020.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments. FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
This case was further assisted by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI, the Baltimore Police Department, U.S. Marshals Service, the U.S. Postal Inspection Service, the ATF, the DEA, the Anne Arundel County Police Department, and the Office of the State’s Attorney for Baltimore City for their work in these investigations. Mr. Hur thanked Assistant U.S. Attorneys Christopher J. Romano, Daniel C. Gardner, and Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section, who prosecuted this Organized Crime Drug Enforcement Task Force case.
# # #
Martinsburg man sentenced for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Benjamin Campbell, of Martinsburg, West Virginia, was sentenced today to five years probation for possessing child pornography, U.S. Attorney Bill Powell announced.
Campbell, age 21, pled guilty to one count of “Possession of Child Pornography” in April 2019. Campbell admitted to having child pornography in his possession between February 2017 and May 2018 in Berkeley County.
Campbell faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The West Virginia State Police investigated.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Chief U.S. District Judge Gina M. Groh presided.
Man Sentenced to 15 Years in Prison for Multiple Bank Robberies and Carjacking After Escaping from A Correctional FacilityRead the Press Release
LAS VEGAS, Nev. — A Las Vegas resident who admitted to committing nine bank robberies after escaping from a correctional facility was sentenced today to 15 years in prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
William Etheridge, 57, pleaded guilty in October 2019, to 11 counts of bank robbery, carjacking, and escape. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Etheridge to three years of supervised release and ordered him to pay $18,397.90 in restitution.
According to court documents, on May 18, 2017, Etheridge escaped from the Northwest Regional Reentry Center, a contracted correctional facility of the Federal Bureau of Prisons in Oregon, where he was in custody for a federal bank robbery conviction. Shortly after his escape, between June 2, 2017 and July 19, 2017, Etheridge robbed nine banks in Oregon and Washington, and attempted to rob another bank in Oregon.
On July 25, 2017, Etheridge, who was armed, stole $18,120 from a credit union in Las Vegas. He demanded that one of the tellers leave the credit union with him, then carjacked a vehicle with two victims inside. At Etheridge’s request, the victims dropped him off at a motorcycle dealership to purchase a motorcycle for use as a getaway vehicle. Law enforcement arrested Etheridge while he was at the dealership.
This case was the product of an investigation by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Nicholas Dickinson prosecuted the case.
Etheridge was investigated in three federal jurisdictions for his crimes: the District of Nevada, the Western District of Washington, and the District of Oregon.
###
Man Extradited for 2006 Manhattan MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a superseding federal indictment charging EDWIN CORTORREAL, a/k/a “Crazy Ed,” with the October 27, 2006, murder of Kelly Diaz in the Washington Heights neighborhood of New York, and other crimes. CORTORREAL, 33, was extradited to the United States from the Dominican Republic to face the charges in the superseding indictment. CORTORREAL was presented and arraigned today before U.S. District Judge Valerie E. Caproni, to whom the case is assigned.
U.S. Attorney Geoffrey Berman said: “As alleged, the defendant shot and killed Kelly Diaz in his home. We thank the FBI and the NYPD for their outstanding work investigating this terrible murder. We will continue our efforts with our law enforcement partners to prosecute such senseless acts of violence.”
NYPD Commissioner Dermot Shea said: “Edwin Cortorreal was brought to justice as a result of unrelenting investigative work by NYPD officers and FBI agents in partnership with our law enforcement colleagues here and overseas and the outstanding team of prosecutors assembled by U.S. Attorney Berman. I applaud the efforts to bring justice in this case.”
According to the superseding indictment and statements made in related court filings and proceedings[1]:
The Hot Boys were a crew of professional home invaders active in Washington Heights and elsewhere from at least 2006 through 2017. On October 27, 2006, CORTORREAL and four others used a hydraulic pump to silently force open the door of Diaz’s apartment. CORTORREAL and two others then burst into Diaz’s home, subdued Diaz and his wife, and forced Diaz onto the ground. CORTORREAL, armed with a gun, stood over Diaz while the rest of the crew ransacked the apartment. As the crew began to leave, CORTORREAL shot and killed Diaz.
* * *
CORTORREAL is charged with conspiring to commit racketeering through the commission of various criminal acts, including murder, in violation of Title 18, United States Code, Section 1962(d); murder in aid of racketeering, in violation of Title 18, United States Code, Section 1959(a)(1); conspiracy to distribute narcotics, in violation of Title 21, United States Code, Section 846; use of a firearm, resulting in death, during a drug-trafficking crime, in violation of Title 18, United States Code, Section 924(j); and other uses of firearms during a drug-trafficking crime, in violation of Title 18, United States Code, Section 924(c). Each of these crimes carries a maximum term of life in prison, and murder in aid of racketeering carries a mandatory minimum term of life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI and the NYPD. Mr. Berman also thanked the Dominican authorities, the Office of International Affairs of the Justice Department’s Criminal Division, and the United States Marshals Service for their assistance in the extradition.
The prosecution of this case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Hagan Scotten and David W. Denton Jr. are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Last of four sentences handed down in Trumbull County explosives and firearms caseRead the Press Release
Four Trumbull County men convicted in an ATF investigation have been sentenced in federal court.
Donald Paul Phillips, age 28 of Mineral Ridge, was sentenced to 24 months in prison for two counts relating to the illegal manufacture and distribution of explosives, and one count of possessing firearms after a domestic violence conviction.
Andrew Syacsure, age 31 of Niles, was sentenced to 4 months of home detention and 3 years of probation for one count of conspiring to manufacture and distribute explosives.
Zachary Booth, age 30 of Warren, was sentenced to 3 years of supervised probation for one count of distributing explosives without an ATF license.
And Donald Roger Phillips, age 50 of Mineral Ridge, was sentenced to 5 months of home detention, 3 years of probation, and a $1,000 fine for one count of possessing a firearm after a domestic violence conviction. All four defendants pled guilty.
According to court records:
In early 2019, ATF agents learned that Zachary Booth was offering to sell homemade explosive devices. ATF agents began an undercover operation and purchased 11 homemade explosive devices from Booth. The devices appeared similar to large M-80 fireworks, but contained hundreds of times more flash powder than consumer ground fireworks.
After further investigation, the ATF learned that Booth had obtained the explosive devices from Donald Paul Phillips. ATF agents then used an undercover agent to make multiple purchases of the devices from Donald Paul Phillips outside his workplace in Niles.
On May 2, 2019, ATF agents arrested Donald Paul Phillips at his workplace in Niles and found a handgun in his toolbox. Phillips was prohibited from possessing a firearm or ammunition due to two prior convictions for domestic violence.
Law enforcement also executed a search warrant at Donald Paul Phillips' residence in Mineral Ridge, where he lived with his father (Donald Roger Phillips) and step-mother. During the search warrant, law enforcement found another handgun under Donald Paul Phillips' bed, and over a dozen firearms in a gun storage room immediately adjacent to his bedroom. The firearms discovered in the gun storage room included multiple high-capacity magazines and a device that was later determined to be a silencer. Law enforcement also found more than 500 homemade explosive devices in the breezeway of the home, and a loaded shotgun in Donald Roger Phillips's bedroom closet. Donald Roger Phillips was also prohibited from possessing a firearm or ammunition due to a prior domestic violence conviction.
ATF agents then conducted a search of Syacsure's home in Niles, and found evidence of explosives manufacturing in Syacsure's basement, which included workbenches, tubs of ingredients used to make flash powder, and empty cardboard fuses and tubes.
In total, the ATF seized over 900 homemade explosive devices and over a dozen illegally possessed firearms during the investigation.
The case was investigated by the ATF, with assistance from the Niles Police Department, the Weathersfield Police Department, and members of the Youngstown Bomb Squad. The case was prosecuted by Assistant U.S. Attorney James Lewis.
Laredoan admits to smuggling 27 in tractor trailerRead the Press Release
LAREDO, Texas – A 32-year-old Laredo man has entered a guilty plea to conspiring to transport undocumented aliens, announced U.S. Attorney Ryan K. Patrick.
On Nov. 12, 2019, Roy Andy Olivares arrived at the Border Patrol Checkpoint located on U.S. Highway 83 north of Laredo. There, a K-9 alerted to the possible presence of concealed humans in the trailer. Authorities conducted a search and found 27 undocumented aliens, three of whom were minors.
At a hearing today before U.S. Magistrate Judge Diana Song Quiroga, Olivares admitted he knowingly attempted to smuggle the undocumented aliens past the checkpoint.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Olivares faces a possible 10-year prison term as well as a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Michael Makens is prosecuting the case.
Kern County Man Unlawfully Manufacturing Short Barrel Rifles Pleads Guilty to Federal Gun ChargeRead the Press Release
FRESNO, Calif. — Julian Burmado, 30, of Bakersfield, pleaded guilty today to possessing firearms not registered to him in the National Firearms Registry, U.S. Attorney McGregor W. Scott announced.
According to court documents, Burmado manufactured rifles with various barrel lengths and offered the rifles for sale. On Oct. 3, 2018, Burmado was arrested in possession of five rifles of varying lengths. One barrel was longer than 16 inches as required by law, but three rifles had barrel lengths of 12 inches and one had a barrel length of 9 inches. None of the short barrel rifles were registered with the National Firearms Registry.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bakersfield Police Department. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
Burmado is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 11. Burmado faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
Justice Department and FTC Announce Workshops on Draft Vertical Merger Guidelines, Extend Comment PeriodRead the Press Release
The Department of Justice and Federal Trade Commission today announced two public workshops, on March 11, 2020 and March 18, 2020, to solicit public dialogue on the draft vertical merger guidelines released on Jan. 10, 2020. The two half-day workshops will allow for a dynamic discussion about the proposed guidelines to complement any written public comments about the draft guidelines that are submitted to the agencies. The agencies will select panelists for the workshops from those that file public comments and indicate their interest and availability to participate.
The agencies also announced today that they will extend the deadline for submitting public comments regarding the draft vertical merger guidelines. The new final deadline for submitting comments is Feb. 26, 2020.
“The Antitrust Division has benefitted greatly from public engagement in preparing the draft guidelines, and I expect that will continue through the comment and workshop process,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Afterwards, we look forward to finalizing the first update to our vertical merger guidelines in more than three decades.”
The draft guidelines describe how the federal antitrust agencies review vertical mergers to evaluate whether they violate antitrust law. Vertical mergers combine two or more companies that operate at different levels of the supply chain. The draft guidelines outline the agencies’ principal analytical techniques, practices, and enforcement policy for vertical mergers. The agencies will consider both public comments and workshop discussions before issuing final Vertical Merger Guidelines.
The Department of Justice encourages comments from the public on the draft vertical merger guidelines. Interested parties may submit public comments online now through Feb. 26, 2020, by emailing [email protected] and [email protected]. Commenters should indicate in the email if they are interested in participating in either workshop as a panelist and the date(s) they are available.
Both workshops are free and open to the public. The March 11, 2020 workshop will take place at the Robert F. Kennedy Department of Justice Building, 950 Pennsylvania Avenue, NW, Washington, D.C., from 1 p.m. Eastern Time to 5 p.m. Eastern Time and the March 18, 2020 workshop will take place at the Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, D.C., from 1 p.m. Eastern time to 5 p.m. Eastern Time. A recording of the workshop will be available on the Division’s website. Registration information, an agenda, directions to the event, and a list of speakers will be available prior to each workshop on the event webpage. Attendees are encouraged, but not required, to register in advance for the workshop. Registration for the March 11 workshop may be completed on Eventbrite. Members of the press should also copy [email protected] on their registration email. Seating will be on a first-come, first-served basis. Attendees should bring a valid government-issued photo ID (government badge, license, passport, etc.) and arrive in time to go through security.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact the Antitrust Division at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.
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.
Justice Department Settles with Child Care Providers to Protect the Rights of Children with DiabetesRead the Press Release
The Justice Department entered into two settlement agreements today to resolve allegations that two child care providers violated the Americans with Disabilities Act (ADA) by failing to reasonably modify its program to accommodate the needs of young children with Type 1 diabetes and disenrolling them on the basis of their disabilities. One agreement is with Lil’ Einstein’s Learning Academy, which operates child care facilities in Bear and Newark, Delaware and Chesapeake City and Elkton, Maryland. The second agreement is with the Community First School Corporation, which operates a child care facility in Sunnyvale, California. These settlements resolve allegations that two child care centers discriminated against children and their parents on the basis of their children’s disabilities shortly after each child was diagnosed with Type 1 diabetes.
“No child with a disability should be unlawfully denied access to a child care center on the basis of his or her disability. Simply put, no parent should have to worry that his or her child will be discriminated against in this way,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “These agreements reflect the Department’s continued commitment to ensuring that children with disabilities enjoy equal access to child care services.”
“Given the critical role that dependable child care plays in a parent’s ability to work or go to school, we are proud that this settlement will ease the struggle to find quality child care for families of children with disabilities,” said United States Attorney David C. Weiss for the District of Delaware.
“Parents who rely on child care need to know that their children will receive the care and support they need—particularly when their children have disabilities,” said United States Attorney David L. Anderson for the Northern District of California. “Child care providers need to meet their responsibilities to these kids and comply with the ADA. We appreciate the efforts of the Civil Rights Division working with our office to address these issues in our district.”
The complaint underlying the Lil’ Einstein’s Learning Academy matter alleged that a 16-month old child, who had been enrolled in the program since she was six months old, was disenrolled on the basis of her disability. Upon their daughter’s diagnosis with Type 1 diabetes, the child’s parents requested that Lil’ Einstein’s Learning Academy staff provide routine diabetes care, including supervision of her continuous glucose monitor (CGM) and insulin administration through her insulin pump. The complaint further alleged that Lil’ Einstein’s Learning Academy refused to administer insulin to their daughter through the pump, refused to permit their daughter’s personal, licensed nurse to accompany her at the day care to provide the needed diabetes care, and disenrolled their daughter on the basis of her disability.
Similarly, the complaint underlying the Community First School agreement alleged that the child care center discriminated against a child – then two years-old – and her parents on the basis of her disability. The toddler began attending Community First School before she was diagnosed with Type 1 diabetes. Upon her diagnosis, she was prescribed a CGM that provided electronic blood glucose readings on an iPhone application. The CGM comes with a remote device that picks up the CGM readings and then transmits it to any smartphone connected through an app. Her parents requested that Community First staff keep an iPhone or a small remote transmitter provided by the family near their daughter so that her CGM could transmit readings. If the CGM triggered an alarm signifying a low blood glucose level, the parents asked that a staff member provide their daughter juice. The complaint further alleged that Community First School denied the parents’ requests, and the parents had no choice but to disenroll their daughter.
In each case, the parents had to secure new child care settings for their children, resulting in great stress for both sets of parents, who depended upon the providers to properly care for their children while they worked to support their families.
Title III of the ADA prohibits discrimination on the basis of disability by public accommodations, including child care providers. Under the ADA, child care providers must make reasonable modifications to their policies, practices or procedures when necessary to provide equal access to a child with a disability unless they can demonstrate that such modifications amount to a fundamental alteration to the nature of their services.
Under the agreements, Lil’ Einstein’s Learning Academy agreed to pay $25,000 in compensatory damages to the aggrieved child and her parents and $2,500 in civil penalties, and Community First School agreed to pay $15,000 to the aggrieved child and her parents and $2,500 in civil penalties. Both child care centers also agreed to evaluate each request for reasonable modifications on an individualized basis, using objective evidence and current medical standards, and, where appropriate, to train child care staff members to assist with routine diabetes care tasks, such as monitoring a continuous glucose monitor, administering Glucagon in emergency situations, and administrating insulin by pen, syringe, or pump.
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
People interested in finding out more about the ADA or these settlement agreements can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Jacksonville Realtor Convicted of Bankruptcy FraudRead the Press Release
Orlando, Florida – A federal jury has found Tanya Firmani (47, Jacksonville) guilty of one count of conspiracy to commit bankruptcy fraud and six counts of bankruptcy fraud. Firmani faces a maximum penalty of five years’ imprisonment on each count. Her sentencing hearing is scheduled for April 21, 2020.
According to testimony and evidence presented at trial, Firmani conspired with others in a foreclosure rescue/bankruptcy fraud scheme. Firmani solicited homeowners whose mortgages were in default and offered to rescue their homes from foreclosure. To prevent the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), the Federal Housing Administration (“FHA”), and multiple financial institutions from lawfully foreclosing on homeowners’ properties, Firmani filed or caused the filing of fraudulent bankruptcy petitions in the homeowners’ names just prior to the scheduled foreclosure sale dates. The fraudulent bankruptcies triggered the Bankruptcy Code’s automatic stay provision, preventing Fannie Mae, Freddie Mac, FHA, and the financial institutions from conducting foreclosure sales and obtaining the titles to the properties. The fraudulent bankruptcy petitions enabled Firmani to collect fees and allowed her co-conspirators to obtain ill-gotten commissions for short-sales causing losses to creditors.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the U.S. Department of Housing and Urban Development – Office of Inspector General. The Office of United States Trustee for the Middle District of Florida provided substantial investigative assistance. The case is being prosecuted by Special Assistant United States Attorney Chris Poor.
Insulation Contracting Firm and Co-Owner Plead Guilty to Antitrust and Fraud ChargesRead the Press Release
Langan Insulation LLC and its co-owner pleaded guilty today in Bridgeport, Connecticut, for their roles in schemes to rig bids in violation of the antitrust laws and engage in criminal fraud on insulation contracts, bringing the total to five convictions in this ongoing investigation, the Department of Justice announced.
According to court documents, from October 2011 until March 2018, Langan Insulation LLC, located in North Haven, Connecticut, and Thomas F. Langan, of East Haven, Connecticut, conspired with other insulation contractors to rig bids and engage in fraud on contracts for installing insulation around pipes and ducts on construction projects at universities, hospitals, and other public and private entities in Connecticut. The conspirators discussed prices and agreed on bids that inflated prices to their customers by approximately 10 percent. In order to conceal their actions, the conspirators perpetrated the bid-rigging and fraud schemes using phones for which the registration masked the identity of the users and an encrypted disappearing messaging app.
“Today’s two guilty pleas, from a company and its senior executive, underscore our ongoing efforts to hold companies and individuals accountable for engaging in bid rigging and fraud,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “We will aggressively pursue and hold accountable those individuals and entities who inflict millions of dollars in harm, particularly on vulnerable institutions, such as taxpayer-funded schools and hospitals, and other businesses.”
“This collusive scheme defrauded hospitals, universities and businesses across New England of millions of dollars,” said U.S. Attorney John H. Durham for the District of Connecticut. “The guilty pleas today demonstrate that the Department of Justice will seek to hold both individuals and companies accountable for rigging bids. I thank the FBI, DCIS, and the Antitrust Division for their ongoing efforts to bring the participants in this conspiracy to justice.”
“Today is another example to show that individuals who engage in fraud schemes of any kind will not be tolerated,” said Special Agent in Charge Brian C. Turner of FBI’s New Haven Field Office. “The FBI, along with DOJ and our law enforcement partners, will remain diligent in combatting fraud and collusion so that justice is served.”
“Bid rigging and other violations of antitrust laws seriously damage the integrity of the U.S. Defense Department's procurement process,” said Special Agent in Charge Leigh-Alistair Barzey of the Department of Defense OIG’s Defense Criminal Investigative Service (DCIS), Northeast Field Office. “The guilty pleas announced today are the direct result of a joint investigative effort and demonstrate the DCIS’ ongoing commitment to work with the USAO-CT and the FBI to investigate and prosecute individuals and companies that engage in criminal conduct that undermines the competitive bidding process.”
The antitrust charge announced today carries a maximum penalty of 10 years in prison and a criminal fine of $1 million for individuals, and a criminal fine of $100 million for corporations. The fraud conspiracy charge carries a maximum penalty of 20 years in prison and a criminal fine of $250,000 for individuals, and a criminal fine of $500,000 for organizations. The fines for the antitrust and fraud conspiracy charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. In addition to their guilty pleas, Langan Insulation LLC and Thomas F. Langan have agreed to pay restitution to the victims.
The ongoing investigation is being conducted by the Antitrust Division’s New York Office, the U.S. Attorney’s Office for the District of Connecticut, the FBI’s New Haven Division, and the Defense Criminal Investigative Service. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s New York Office at 212-335-8000, or visit http://www.justice.gov/atr/contact/newcase.html.
Insulation Contracting Firm and Co-Owner Plead Guilty to Antitrust and Fraud ChargesRead the Press Release
Langan Insulation LLC and its co-owner pleaded guilty today in Bridgeport, Connecticut, for their roles in schemes to rig bids in violation of the antitrust laws and engage in criminal fraud on insulation contracts, bringing the total to five convictions in this ongoing investigation, the Department of Justice announced.
According to court documents, from October 2011 until March 2018, Langan Insulation LLC, located in North Haven, Connecticut, and Thomas F. Langan, of East Haven, Connecticut, conspired with other insulation contractors to rig bids and engage in fraud on contracts for installing insulation around pipes and ducts on construction projects at universities, hospitals, and other public and private entities in Connecticut. The conspirators discussed prices and agreed on bids that inflated prices to their customers by approximately 10 percent. In order to conceal their actions, the conspirators perpetrated the bid-rigging and fraud schemes using phones for which the registration masked the identity of the users and an encrypted disappearing messaging app.
“Today’s two guilty pleas, from a company and its senior executive, underscore our ongoing efforts to hold companies and individuals accountable for engaging in bid rigging and fraud,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “We will aggressively pursue and hold accountable those individuals and entities who inflict millions of dollars in harm, particularly on vulnerable institutions, such as taxpayer-funded schools and hospitals, and other businesses.”
“This collusive scheme defrauded hospitals, universities and businesses across New England of millions of dollars,” said U.S. Attorney John H. Durham for the District of Connecticut. “The guilty pleas today demonstrate that the Department of Justice will seek to hold both individuals and companies accountable for rigging bids. I thank the FBI, DCIS, and the Antitrust Division for their ongoing efforts to bring the participants in this conspiracy to justice.”
“Today is another example to show that individuals who engage in fraud schemes of any kind will not be tolerated,” said Special Agent in Charge Brian C. Turner of FBI’s New Haven Field Office. “The FBI, along with DOJ and our law enforcement partners, will remain diligent in combatting fraud and collusion so that justice is served.”
“Bid rigging and other violations of antitrust laws seriously damage the integrity of the U.S. Defense Department's procurement process,” said Special Agent in Charge Leigh-Alistair Barzey of the Department of Defense OIG’s Defense Criminal Investigative Service (DCIS), Northeast Field Office. “The guilty pleas announced today are the direct result of a joint investigative effort and demonstrate the DCIS’ ongoing commitment to work with the USAO-CT and the FBI to investigate and prosecute individuals and companies that engage in criminal conduct that undermines the competitive bidding process.”
The antitrust charge announced today carries a maximum penalty of 10 years in prison and a criminal fine of $1 million for individuals, and a criminal fine of $100 million for corporations. The fraud conspiracy charge carries a maximum penalty of 20 years in prison and a criminal fine of $250,000 for individuals, and a criminal fine of $500,000 for organizations. The fines for the antitrust and fraud conspiracy charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. In addition to their guilty pleas, Langan Insulation LLC and Thomas F. Langan have agreed to pay restitution to the victims.
The ongoing investigation is being conducted by the Antitrust Division’s New York Office, the U.S. Attorney’s Office for the District of Connecticut, the FBI’s New Haven Division, and the Defense Criminal Investigative Service. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s New York Office at 212-335-8000, or visit http://www.justice.gov/atr/contact/newcase.html.
Income Tax Preparer Pleads Guilty to Preparing and Filing False Tax ReturnsRead the Press Release
FRESNO, Calif. — Chris Donell Smith, 56, of Stockton, pleaded guilty today to aiding and assisting in the preparation of false tax returns, U.S. Attorney McGregor W. Scott announced.
According to court documents, Smith owned and operated New Covenant Tax & Accounting, a tax preparation business in Modesto. Between 2012 and 2015, Smith prepared income tax returns that reported false items and dollar amounts for a number of his clients without their knowledge or consent. He falsified charitable contributions, unreimbursed employee expenses, and capital losses and wage income on some of his clients’ tax returns. For some of these clients, he prepared a correct tax return which he gave the client, but then electronically filed a fraudulent return claiming a higher refund. He directed that the payment of the refund be split, with the amount the client expected going into the client’s own bank account and the additional higher amount going into an account controlled by Smith. According to the plea agreement, Smith defrauded the IRS of approximately $63,000.
This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
Smith is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 11. Smith faces a maximum statutory penalty of three years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Immigrant Sentenced for Defrauding Hopeful ImmigrantsRead the Press Release
Catholic Diocese employee embezzled fees for immigration assistance
GRAND RAPIDS, MICHIGAN — Monica Karina Mazei, aka Karina Puig, was sentenced today to 33 months’ imprisonment by Chief U.S. District Judge Robert J. Jonker. Mazei had been employed by the Catholic Diocese of Kalamazoo’s Immigration Assistance Program, where she helped clients and their relatives apply for visas, work permits, permanent resident status, citizenship, and other relief. In October 2019, Mazei pled guilty to an indictment charging her with wire fraud. She admitted that on numerous occasions between 2015 and 2019, she collected fees from certain clients and promised to process their petitions. Instead, she embezzled their money, and did not send in their paperwork. Mazei immigrated to the United States from Ecuador herself, and became a naturalized citizen in 1999.
Mazei concealed her scheme from the Diocese by not opening files for the clients she was defrauding. In some cases she deceived clients by requesting blank checks or money orders. She wrote “U.S. Department of Homeland Security” in the payee line of the copies she provided them as proof of payment. She then wrote her own name as payee on the actual instruments, and deposited them in her personal accounts. In other cases she took cash, which she simply kept for herself. In addition to the sentence of imprisonment, Chief Judge Jonker ordered Mazei to pay $58,998 in restitution to her identifiable victims.
“Mazei was given an opportunity to live the American dream,” said U.S. Attorney Andrew Birge, “but she cashed in on the dreams of others to line her own pockets.”
This case was investigated by Homeland Security Investigations (HSI) and the Kalamazoo Department of Public Safety.
###
Illinois Man Admits Conspiring to Distribute Cocaine and HeroinRead the Press Release
NEWARK, N.J. – An Illinois man today admitted conspiring to distribute one kilogram or more of heroin and 500 grams or more of cocaine, U.S. Attorney Craig Carpenito announced.
Jesus Henoc Castaneda Soberanis, 25, of Chicago, Illinois, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine.
According to documents filed in this case and statements made in court:
On June 6, 2019, Soberanis conspired with others to distribute narcotics, agreeing to pay a conspirator approximately $1,000 to drive Soberanis, together with approximately one kilogram of cocaine and approximately two kilograms of heroin, from Illinois to the East Coast. The investigation revealed that Soberanis would have distributed at least one of these kilograms of narcotics in New Jersey, were the narcotics not interdicted by law enforcement.
The count to which Soberanis pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for May 20, 2020.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to today’s guilty plea.
The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
Defense counsel: Genesis Peduto Esq., North Bergen, New Jersey
Houstonian convicted in scheme linked to Hurricane HarveyRead the Press Release
HOUSTON ‐ A Houston area man has entered a guilty plea to money laundering in connection with his scheme to defraud the Small Business Administration (SBA), announced U.S. Attorney Ryan K. Patrick.
Robert Kaitho, 56, entered his guilty plea today before U.S. District Judge Andrew Hanen.
Kaitho applied for government assistance in reference to property damage sustained in Hurricane Harvey. In that application, he falsely represented to the SBA that he would use the disbursed funds to rehabilitate or replace the affected property.
As a result of his misrepresentations, the SBA disbursed a federally-funded disaster loan to Kaitho for $71,100, all of which was deposited into his personal bank account.
As part of his plea, Kaitho admitted he used the SBA funds to make unauthorized wire transfer payments, in the amounts of $10,000 and $15,000, to a mortgage company. Kaitho also acknowledged he used funds transferred into his account to make a $30,633.00 wire transfer payment to an individual located in Kenya, another unauthorized expenditure.
Judge Hanen accepted the plea today and set sentencing for June 1. At that time, Kaitho faces up to 10 years in federal prison and a $250,000 maximum possible fine. Kaitho was permitted to remain on bond pending that hearing.
SBA - Office of Inspector General (OIG) and the Department of Homeland Security – OIG conducted the investigation. Assistant U.S. Attorneys Michael Day and Charmaine Holder are prosecuting the case.
Havre man sentenced for domestic assault on Fort Belknap ReservationRead the Press Release
GREAT FALLS—A Havre man convicted of domestic assault after breaking his girlfriend’s nose during an argument on the Fort Belknap Indian Reservation was sentenced today to 54 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
James John Russell McConnell, 44, pleaded guilty in September to domestic assault by habitual offender.
U.S. District Judge Brian M. Morris presided and ordered the 54-month sentence be served consecutively to a seven month sentence imposed in a revocation after McConnell violated conditions while on supervised release for a previous conviction.
The prosecution said in court records that McConnell, who has three previous convictions for domestic assault, assaulted his girlfriend on June 23, 2018 in Hays by bear-hugging her to where it was painful and hard to breathe. He also verbally threatened her. The victim was treated for a broken nose at the Northern Montana Hospital.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by Fort Belknap law enforcement and the FBI.
XXX
Hartford Man Sentenced to Prison for Stealing Federal Law Enforcement Vehicle and EquipmentRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DOMINQUE PERRY, 24, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for stealing a federal law enforcement vehicle and equipment. Judge Chatigny also ordered Perry to serve four months of home confinement while on supervised release.
According to court documents and statements made in court, on January 29, 2019, Perry and another individual stole a 2016 Honda Accord from a residence in Newington. The vehicle was the property of a federal law enforcement agency, and contained fully loaded firearm magazines for multiple weapons, ammunition, handcuffs and other restraints, a ballistic vest and its component parts, and raid jackets. After stealing the vehicle, Perry drove the Accord to a location in Bloomfield where he and his associate removed the vehicle’s tires and rims. Perry and his associate subsequently sold the tires and rims, and advertised the sale of loaded firearm magazines, ammunition, ballistic vest and other items.
The vehicle and its tires and rims have been recovered, but some of the law enforcement equipment that was in the car has not been located. Judge Chatigny ordered Perry to pay $1,560 in restitution for the missing equipment.
Perry was arrested on a federal criminal complaint on February 6, 2019, and was released on bond. He has been detained in state custody on unrelated auto theft charges since August 2019.
On October 18, 2019, Perry pleaded guilty in federal court to one count of theft of government property.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Newington and Hartford Police Departments. The case is being prosecuted by U.S. Attorney Durham.
Hartford Man Sentenced to 46 Months in Federal Prison for Gun Possession and Cocaine Distribution OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LUIS NIEVES-FELICIANO, 41, of Hartford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 46 months of imprisonment, followed by three years of supervised release, for drug and firearm offenses.
According to court documents and statements made in court, on May 4, 2019, agents with the Connecticut Department of Revenue Services (“DRS”) arrived at Broad Street Liquors, located at 1949 Broad Street in Hartford, to conduct a routine permit/cigarette inspection. When they entered, Nieves-Feliciano, an employee of the store, was standing behind the counter. Nieves-Feliciano immediately concealed items, struggled with DRS agents, and eventually fled the store.
The DRS agents then contacted Hartford Police and a court-authorized search of the store revealed a loaded Kel-Tec, Model P11, 9mm semiautomatic pistol, approximately 45 grams of cocaine packaged for distribution and a quantity of marijuana packaged for distribution, all of which was located on or behind the store’s counter. A second 9mm pistol, a box of ammunition, approximately 112 grams of cocaine, approximately $13,000 in cash, and personal items and documents belonging to Nieves-Feliciano, were located in the basement of the store.
The search of the store also revealed several cigarette packs that had fraudulent tax stamps.
Nieves-Feliciano’s criminal history includes state felony convictions for narcotics, firearm, assault and robbery offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Nieves-Feliciano has been detained since May 15, 2019, when he was arrested on a federal criminal complaint. On October 21, 2019, he pleaded guilty to one count of possession with intent to distribute cocaine, and one count of possession of firearms by a previously convicted felon.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Gang Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Connecticut Department of Revenue Services provided valuable assistance to the investigation. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
HOPE Clinic Physician Pleads Guilty to Drug CrimeRead the Press Release
BECKLEY, W.Va. – A South Carolina physician pled guilty to a drug crime, announced United States Attorney Mike Stuart. William Earley, D.O., 63, pled guilty to distributing oxycodone without a legitimate medical purpose in the usual course of professional medical practice and beyond the bounds of medical practice.
“Earley is the latest drug dealer in a lab coat to plead guilty to charges brought by my office,” said United States Attorney Mike Stuart. “In fact, six medical providers have pled guilty to date as a result of the investigation into HOPE Clinic’s prescribing practices.”
Earley admitted that he worked at the Charleston HOPE Clinic, which held itself out as specializing in the treatment of chronic pain through opioid pain medication. However, Earley admitted to having no formal training in the treatment of chronic pain patients but stated he was reassured by other HOPE Clinic physicians and by a staffing company that the HOPE Clinic was set up to provide appropriate treatment to patients suffering from chronic pain. While working at the HOPE Clinic, Earley admitted that it became apparent to him that some of the patients were not being properly evaluated prior to the doctors writing them prescriptions for opioids. Earley admitted that the patients’ files were poorly kept and often had little relevant medical information in them. Many of the patients came to the HOPE Clinic from out of state and most patients paid in cash.
On April 24, 2014, Earley admitted to prescribing patient D.J.B. 120 Percocet 10mg/325mg pills and 60 Oxycodone 10 mg pills. Earley admitted that a review of D.J.B.’s medical chart showed that by April 24, 2014, he had four failed drug tests and had reported his medication stolen. Despite these red flags, Earley did not do a physical examination of D.J.B., or address any of his failed drug screens with him, and he did not discuss the possibility of addiction or diversion with him on April 24, 2014, before issuing him two short-acting oxycodone prescriptions. Earley admitted that the prescriptions he issued to D.J.B. were not for a legitimate medical purpose in the usual course of professional medical practice and were beyond the bounds of medical practice.
Earley faces up to 10 years in prison when sentenced on May 11, 2020.
The investigation was conducted by the U.S. Department of Health and Human Services Office of Inspector General (OIG), the Internal Revenue Service – Criminal Investigations, the Food and Drug Administration – Office of Criminal Investigations, the Federal Bureau of Investigation, the West Virginia State Police, the Kentucky State Police, the Beckley Police Department, the Virginia State Police, the Charleston Police Department, and the Drug Enforcement Administration.
United States District Judge Frank Volk presided over the hearing. Assistant United States Attorneys Monica D. Coleman and Steven I. Loew are handling the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###(Note: this guilty plea was withdrawn on August 24, 2022. On September 8, 2022, Earley pleaded guilty to aiding and abetting obtaining a controlled substance by fraud. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-168.)
Greensburg Doctor Charged with Conspiring to Receive Kickbacks for Prescribing Fentanyl, and Then Causing Insurers to Pay for the Unlawful PrescriptionsRead the Press Release
PITTSBURGH - A Westmoreland County physician has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of conspiracy to violate the Anti-Kickback Statute, conspiracy to distribute fentanyl, health care fraud, and conspiracy to distribute phentermine hydrochloride and diethylpropion, United States Attorney Scott W. Brady announced today.
The four-count Indictment, returned on January 16, and unsealed on January 30, named Thomas Whitten, 69, of Greensburg, PA, as the defendant.
According to the Indictment, from May 2013 to November 2015, in the Western District of Pennsylvania, Whitten conspired to receive kickbacks from Insys Therapeutics in exchange for prescribing fentanyl, in the form of Subsys, to his patients, and that Whitten conspired to distribute fentanyl, in the form of Subsys. The Indictment also alleges that from May 2013 to March 2017, Whitten committed health care fraud by causing insurers to pay for unlawful Subsys prescriptions. Finally, the Indictment alleges that from November 2017 through December 12, 2019, Whitten conspired to distribute phentermine hydrochloride and diethylpropion.
The law provides for a sentence of not less than five years in prison and a maximum of 40 years in prison, a fine not to exceed $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Cindy K. Chung and Karen Gal-Or are prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Federal Bureau of Investigation, Department of Health and Human Services, and the Pennsylvania State Attorney General’s Office, conducted the investigation that led to the prosecution of Thomas Whitten. An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
The investigations leading to the filing of charges in these cases were conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
Fresno County Man Pleads Guilty to Illegally Possessing a HandgunRead the Press Release
FRESNO, Calif. — Christian Uriel Garcia Andrade, 36, of Huron, pleaded guilty today to unlawfully possessing a firearm, United States Attorney McGregor W. Scott announced.
According to court documents, on Feb. 18, 2018, while in pursuit of Andrade, a police officer saw him toss an object into a cul-de-sac. The officer later returned to the cul-de-sac and found a loaded 9 mm handgun in the same area where Andrade had tossed the object. Because of his prior felony convictions, Andrade is prohibited from possessing firearms.
This case is the product of an investigation by the Department of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Huron Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
Andrade is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 11. Andrade faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
Four Sentenced to Federal Prison on Drug ChargesRead the Press Release
HUNTINGTON, W.Va. – Four defendants were sentenced to federal prison on drug charges by United States District Judge Robert C. Chambers today, announced United States Attorney Mike Stuart.
“Four drug traffickers were sentenced to federal prison today for peddling poisons,” said United States Attorney Mike Stuart. “The underlying charges involved distribution of black tar heroin, heroin, fentanyl and marijuana. Yes, marijuana. My office enforces all federal drug laws. If we find you selling illegal drugs in my district, you will be prosecuted to the fullest extent of the law.”
Mathew Byrd, 32, of Barboursville, was sentenced to 106 months in prison for selling heroin and possessing a firearm in furtherance of a drug trafficking crime. Byrd was also ordered to forfeit a 2016 Cadillac Escalade, $10,000 in U.S. Currency, and various personal property. Byrd previously admitted that on January 31, 2019, he sold seven grams of black tar heroin to a confidential informant. He also admitted to possessing a firearm in furtherance of a drug trafficking crime. The Violent Crime Drug Task Force West and the Putnam County Sheriff’s Department conducted the investigation. Assistant United States Attorney Stephanie Taylor handled the prosecution.
Tequan Montek Pratt, 24, was sentenced to 34 months in prison for distribution of marijuana. Pratt admitted that on March 30, 2018 and April 9, 2018, he sold a pound of marijuana to a confidential informant at a duplex in Nitro, Putnam County, West Virginia. Pratt also admitted that he and his associates were trafficking the marijuana from cities throughout California for several months. Estimated conservatively, Pratt admitted to trafficking at least 20 kilograms of marijuana from California. Pratt also possessed multiple firearms at another house in Putnam County. The Violent Crime and Drug Task Force West and the Putnam County Sheriff’s Department conducted the investigation. Assistant United States Attorney Ryan A. Keefe and former Assistant United States Attorney Drew O. Inman handled the prosecution.
Abdullah Myles, 25, of Michigan, was sentenced to 15 months in prison for possession with the intent to distribute heroin. Myles previously admitted that on February 7, 2019, officers with the Huntington Police Department executed a search warrant at a residence Myles was living in at 825 21st Street in Huntington. Officers recovered 13 grams of heroin from the room Myles was living in. The Huntington Police Department conducted the investigation. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
Maechelle Relf, 27, of Huntington, was sentenced to seven months in prison for conspiracy to distribute heroin and fentanyl. Relf previously admitted that between December 2018 and May 2019 she conspired with other individuals to distribute heroin and fentanyl in Huntington, West Virginia. Relf admitted that she would travel to Detroit, Michigan to obtain heroin for George Lockhart for him to sell in Huntington. Her charges were the result of Operation Free Market, a long-term drug investigation in the Huntington area. The Drug Enforcement Administration and the Violent Crime and the Drug Task Force West conducted the investigation. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Fort Dodge Man to Federal Prison for Meth and Gun ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine while possessing guns was sentenced January 31, 2020, to more than 11 years in federal prison.
Matthew Guthrie, 34, from Fort Dodge, Iowa, received the prison term after an August 15, 2019, guilty plea to one count of conspiracy to distribute methamphetamine and one count of possession of firearms in furtherance of a drug trafficking crime.
At the guilty plea, Guthrie admitted that from January 2019 through April 16, 2019 he and others distributed more than 500 grams of methamphetamine in the Fort Dodge area. On three separate occasions Guthrie distributed a total of more than 100 grams of pure methamphetamine to an individual cooperating with law enforcement. During a later search of Guthrie’s residence, law enforcement seized four guns (two of which were loaded), methamphetamine, drug paraphernalia, scales, a drug ledger, and other items indicative of drug distribution. Law enforcement later seized two more guns in a consent search.
Guthrie was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Guthrie was sentenced to 135 months’ imprisonment. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Guthrie 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. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Iowa Division of Narcotics Enforcement, Webster County Drug Task Force, Carroll County, Iowa Sheriff’s Office, and the Iowa Division of Criminalistics Laboratory. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Iowa Division of Narcotics Enforcement, Webster County Drug Task Force, Carroll County, Iowa Sheriff’s Office, and the Iowa Division of Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3019. Follow us on Twitter @USAO_NDIA.
Former Tax Lawyer Sentenced to Five Years in Federal Prison for Evading Back Taxes He Owed to Internal Revenue ServiceRead the Press Release
LOS ANGELES – A former tax and estate-planning lawyer who set up shell companies to evade the payment of more than $1.4 million he owed to the IRS was sentenced today to 60 months in federal prison.
James Roy McDaniel, 66, of Long Beach, was sentenced by United States District Judge S. James Otero, who also ordered McDaniel to pay $1.54 million in restitution.
In October 2019, McDaniel pleaded guilty to one count of tax evasion.
McDaniel was a licensed California lawyer from 1981 until he surrendered his law license in 2004, shortly before he pleaded guilty to one felony count of subscribing to a false income tax return. In 2005, McDaniel was sentenced to three years in federal prison for that crime. In that case, McDaniel’s failure to report income – $1.6 million embezzled from his law firm clients – resulted in a tax loss of $677,368 to the federal government. The IRS subsequently assessed McDaniel more than $1.4 million in taxes, interest and penalties for the tax years 1997 through 2001. The Los Angeles County District Attorney’s Office prosecuted McDaniel for grand theft in that matter and he was sentenced to two years in state prison.
Following his convictions in the previous cases, McDaniel willfully attempted to evade paying his debt to the IRS by creating two shell companies – Davis Bell Consulting LLC and James Roy Consulting LLC – where he directed payments for tax and estate planning consulting work he performed after he was released from prison. Between May 2008 and late 2018, McDaniel attempted to mislead federal tax authorities and conceal his income by directing other people to sign documents identifying themselves as the sole managing members of the shell companies. McDaniel directed them to open bank accounts where he deposited checks for his tax and estate planning work.
In his plea agreement, McDaniel admitted to owing a total of $1,584,126 in unpaid taxes for the years 2008 to 2017. He has been in federal custody since his arrest in December 2018.
“Despite his fortuitous second chance for a lucrative career, rather than properly report his income and pay taxes, defendant set up a complex web of limited liability corporations and straw bank accounts to conceal his connection to the tax consulting income,” prosecutors wrote in their sentencing memorandum. “As if defendant’s conduct was not bad enough, for years he used his unwitting girlfriend and young adult children as nominees.”
This case was investigated by IRS Criminal Investigation.
This matter was prosecuted by Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section.
Former Mayor of Gurabo Found Guilty of Public CorruptionRead the Press Release
SAN JUAN, P.R. – After a four-day jury trial, Victor M. Ortiz-Díaz, a.k.a. “Manolito”, former mayor of the municipality of Gurabo, Puerto Rico, was found guilty of one count of bribery, announced United States Attorney W. Stephen Muldrow. United States District Court Judge Jay A. Garcia-Gregory presided over the trial. The Federal Bureau of Investigation (FBI) was in charge of the investigation.
According to the indictment, on or about October 2012, the Municipality of Gurabo owed Company A payments for eight outstanding invoices for work performed in the municipality. Person A, co-owner of Company A, met with mayor Ortiz-Díaz to discuss the outstanding debt. The mayor solicited $125,000 from Person A to invest in a telecommunications antenna project. Because Company A did not have the money to pay the $125,000, the mayor told Person A that he would have the municipality make a payment to the company. With this money, Company A could be able to cover the “loan” to Ortiz-Díaz, as well as pay other debts it owed its suppliers.
On October 19, 2012, Person A issued three post-dated Company A checks payable to three different individuals, who were employees of Miguel Merced. Merced was the individual orchestrating the telecommunications investment scheme in which Ortiz-Díaz invested the three checks totaling $125,000. On that same date, the Municipality of Gurabo issued two checks totaling $196,643.26 payable to Company A for contracting work performed.
Unbeknownst to him, Ortiz-Díaz used the money he extorted from Person A in what turned out to be a Ponzi scheme run by Merced, who recently concluded a six-year prison sentence. The jury acquitted Ortiz-Díaz of the extortion charge pending against him.
This case was investigated by the FBI and HUD-OIG, and was prosecuted by Assistant United States Attorney Scott Anderson. The defendant faces a sentence of up to 10 years in prison. The sentencing is scheduled for July 2, 2020.
# # #
Former Major at Angola Prison Convicted of Beating a Handcuffed and Shackled InmateRead the Press Release
Daniel Davis, 44, a former major at Louisiana State Penitentiary (LSP) in Angola, Louisiana, was found guilty by a jury yesterday in federal court for his participation in the beating of an inmate who was handcuffed, shackled, and not resisting and for failing to intervene to stop his subordinates from participating in the same beating. In a previous trial in January 2018, Davis was convicted of conspiring with other officers to cover up the beating by devising a false cover story, submitting false reports documenting that cover story, tampering with witnesses, and lying under oath. Davis was also previously convicted of this beating in November 2018, but was granted a new trial based on juror misconduct.
Four other officers—former LSP Captains James Savoy, John Sanders, and Scotty Kennedy, and former Sergeant Willie Thomas—have all previously pleaded guilty for their roles in the beating and cover up. At Davis’s trial, Captains Sanders and Kennedy testified for the government and described the abuse and the extensive cover up.
After hearing testimony over the course of three days, the jury convicted Davis of willfully depriving the inmate of his right to be free from cruel and unusual punishment. The evidence showed that Davis initiated the beating by yanking the inmate’s leg chains, causing the inmate to fall face-first onto the concrete breezeway. At that point, Davis and the other officers punched, kicked, and stomped on the inmate, leaving the inmate with a dislocated shoulder, a hematoma, a collapsed lung, and broken ribs.
“The Constitution and its Bill of Rights protect all people in our nation from unlawful abuse by the government, and the Department of Justice will continue to prosecute officers who willfully violate the Constitution by abusing their power over those in custody,” said Attorney General Eric Dreiband for the Civil Rights Division. “This officer violated his oath and the law, and the Department of Justice will not tolerate this kind of criminal misconduct by correctional officers.”
U.S. Attorney Brandon Fremin stated, “Corrections officers are charged with the duty of protecting the public, not abusing those who have been lawfully incarcerated. This district contains several penal institutions, and this should serve as a warning to those who would abuse their power that federal, state, and local law enforcement agencies will relentlessly pursue those who violate the public trust. I commend all of the agencies responsible for this conviction, and want to thank them for their partnership in this important matter.”
“Correctional officers have an obligation to protect inmates serving their sentences as ordered by the court,” said Bryan A. Vorndran, FBI New Orleans Special Agent in Charge. “Daniel Davis abused his authority by inflicting physical harm upon an inmate that was restrained and non-combative. His actions are a disgrace to all correctional officers who serve ethically and continue to maintain high moral standards throughout our correctional facilities. I commend the men and women of the FBI’s Baton Rouge Resident Agency Office, Louisiana Office of the State Inspector General, and the Department of Justice Civil Rights trial attorneys for their commitment to uphold the constitution and protect all Americans.”
“This is a just verdict,” said Louisiana Inspector General Stephen Street. “We cannot and will not tolerate the abuse of the considerable power afforded corrections officers. Whenever it does occur, it is critical to hold offenders criminally accountable in order to protect the integrity of the system. The jury did exactly that with Mr. Davis, and it was worth the time and effort to obtain this result. Thanks again to our federal partners at the FBI and DOJ.”
No date has been set for Davis’s sentencing. He faces a maximum penalty of five years of imprisonment on the conspiracy and perjury counts, 10 years of imprisonment on the excessive force count, and 20 years of imprisonment on each of the remaining obstruction counts.
This case was investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. It was prosecuted by Trial Attorneys Zachary Dembo and Anita Channapti of the Civil Rights Division’s Criminal Section. Trial Attorney Christopher J. Perras of the Civil Rights Division and Assistant U.S. Attorney Frederick A. Menner Jr., of the Middle District of Louisiana also assisted in the case.
Florida man admits to scheme to defraud the IRS, using taxpayer identitiesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Juan David Moreno, of Miramar, Florida, has admitted to wire fraud and identity theft through use of a computer, U.S. Attorney Bill Powell announced.
Moreno, age 33, pled guilty today to one count of “Wire Fraud” and one count of “Aggravated Identity Theft.” Moreno admitted to fraudulently accessing the Internal Revenue Service (IRS) eAuthentication online taxpayer system, which has servers located in Berkeley County, from January 2015 to February 2017. Through his scheme to defraud, Moreno obtained personal identifying information of taxpayers without their knowledge to access the online taxpayer system to obtain income tax transcripts for those taxpayers. Moreno then filed tax returns and directed tax refunds in the amount of at least $86,525 be deposited in an account in Florida without the taxpayers’ knowledge.
Moreno faces up to 20 years incarceration and a fine of up to $250,000 for the wire fraud count, and two years incarceration for the aggravated identity theft 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 Treasury Inspector General for Tax Administration Cybercrime Investigations Division investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Florida Resident Sentenced to 21 Months' Imprisonment for Mail Theft Related to Fraud Scheme Targeting Financial InstitutionsRead the Press Release
PITTSBURGH - A resident of Pembroke Pines, Florida, has been sentenced in federal court to a term of imprisonment of 21 months to be followed by three years of supervised release on his conviction for theft of mail, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur Schwab imposed the sentence on Cassio Orville Donald Slowden, age 28.
Previously, in connection with Slowden’s guilty plea, the court was advised that in February 2019, Citizens Bank replacement debit cards and PIN reminders were fraudulently ordered for several customers in McMurray, Pennsylvania. On the afternoon of February 11, U.S. mail was delivered to the mailbox of one of the residences in McMurray. Shortly after, Slowden removed several pieces of mail from the mailbox and drove away from the residence. Slowden’s vehicle was stopped by law enforcement, and a search of the vehicle recovered stolen mail, including the Citizens Bank replacement debit card and PIN reminder taken from the mailbox of the McMurray residence.
The Court was further advised that Citizens Bank, Bank of America, and other financial institutions were victims of an ongoing multistate fraud scheme. The scheme involved one or more callers contacting banks and impersonating customers. The caller would order replacement debit cards and debit card PIN reminders to the customer’s address on file. The suspects would intercept the cards and use them to make fraudulent ATM withdrawals. Slowden is connected to at least $116,277.19 in losses related to fraudulent withdrawals from accounts of at least 12 Citizens Bank and Bank of America customers
Assistant United States Attorney David Lew prosecuted this case on behalf of the government.
The U.S. Postal Inspection Service and U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations conducted the investigation leading to the successful prosecution of Slowden.
Five Defendants Plead Guilty to Conspiracy to Rob Chase Bank in ModestoRead the Press Release
FRESNO, Calif. — Robert Zavala Jr., 24, and Moises Garcia DeLeon, 27, both of Soledad, pleaded guilty today to conspiracy to commit armed bank robbery, U.S. Attorney McGregor W. Scott announced.
On Nov. 16, 2018, six Monterey County men were arrested as they were preparing to rob a bank in Modesto. Zavala and Garcia DeLeon are the fourth and fifth defendants to plead guilty to in this case. Soledad residents Victor Bravo, 24; Enrique Lopez, 28; and Cesar Lemus, 21, all previously pleaded guilty to conspiracy to commit armed bank robbery. Charges are pending against co‑defendant Jesus Robledo.
According to court documents, a deputy sheriff noticed a Nissan Altima parked in a parking lot at an apartment complex in Modesto that had been reported stolen from Salinas. Officers set up surveillance on the stolen Nissan and watched four cars leave the apartment complex together.
The cars traveled close to each other to a shopping area in Modesto that contained a Chase Bank. Lemus, who drove one of the cars, drove back and forth past the Chase Bank, talking to his co-conspirators on the phone.
The stolen Nissan, driven by Bravo, parked in a loading area behind the shopping center next to a car driven by Lopez. Lopez got out of his car and started loading items into the stolen Nissan. The stolen Nissan then left the loading area, drove through an alley, and parked in a parking lot near Chase Bank, at which time officers stopped the car and detained all four occupants. Inside the stolen Nissan, officers found two assault rifle-style firearms, a handgun, a revolver, masks, gloves, and a large duffel bag.
This case is the product of an investigation by the Federal Bureau of Investigation, the Stanislaus County Sheriff’s Office, the Modesto Police Department, the Monterey County Sheriff’s Office, the San Mateo County Sheriff’s Office, the Tulare County Sheriff’s Office, and Fresno County Sheriff’s Office. Assistant U.S. Attorney Ross Pearson is prosecuting the case.
Jesus Robledo is scheduled for a status conference on May 11. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
All remaining defendants are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 11. The defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal Court Orders North Carolina Pharmacy and Pharmacist to Pay $600,000 and to Permanently Cease Dispensing Opioids or Other Controlled SubstancesRead the Press Release
A federal court in eastern North Carolina entered a consent judgment and permanent injunction requiring a North Carolina pharmacy, Farmville Discount Drug Inc., and its owner and pharmacist-in-charge, Robert L. Crocker, to pay $600,000 in civil penalties and to permanently cease dispensing opioids or other controlled substances, the Department of Justice announced today. Under the court’s order, Crocker will also surrender his license to practice pharmacy and never seek its renewal, and Farmville Discount Drug will permanently surrender its registration with the U.S. Drug Enforcement Administration (DEA).
The consent order resolves a complaint filed by the United States alleging that Farmville Discount Drug and Crocker repeatedly filled prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act. The United States alleged that, for years, the defendants ignored well-known “red flags” of drug diversion and drug-seeking behavior when filling prescriptions for controlled substances. These prescriptions often involved well-known, highly addictive, and highly abused painkillers such as oxycodone, hydrocodone, hydromorphone, and methadone, along with other “potentiator” drugs — drugs that heighten the euphoric effects of opioids, like diazepam (i.e., Valium), alprazolam (i.e., Xanax), and zolpidem (i.e., Ambien).
“The Department of Justice has made combating the opioid crisis one of its top priorities,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will work hand-in-hand with the DEA and other law enforcement partners to ensure that pharmacies that fail to uphold their obligation to dispense controlled substances lawfully will be held accountable.”
As alleged in the complaint, many prescriptions raised multiple red flags, but Crocker and Farmville Discount Drug failed to take the required steps to resolve those red flags and ensure the prescriptions’ legitimacy before filling them. The red flags allegedly ignored by Crocker and Farmville Discount Drug were numerous:
- Crocker and his pharmacy filled prescriptions for dangerous, highly abused prescription-drug cocktails for long-distance patients who saw a doctor an hour away and lived an hour away;
- The pharmacy filled hundreds of opioid prescriptions for multiple members of the same family;
- The pharmacy filled prescriptions for a prescriber that Crocker knew had been cut off from other pharmacies;
- The pharmacy filled controlled-substance prescriptions for patients who hopped from doctor to doctor or pharmacy to pharmacy.
The complaint also asserts that when other employees expressed concern to Crocker about Farmville Discount Drug’s practices, he dismissed them, allegedly saying that if a doctor wrote the prescription, the pharmacy would fill it.
The defendants have not admitted the allegations in the complaint, but the parties agreed to resolve the case without further litigation. The court adopted the parties’ agreement and entered a consent order ensuring, among other things, that Crocker and Farmville Discount Drug will never dispense opioids or other controlled substances again.
“Opioid addiction and abuse have devastated communities across our nation, and eastern North Carolina is no exception,” said Robert J. Higdon Jr., U.S. Attorney for the Eastern District of North Carolina. “As the last line of defense between these dangerously addictive substances and our communities, pharmacists and pharmacies play a critical role in stemming the tide of the opioid epidemic. The turn-a-blind-eye approach to pharmacy practice on display at Farmville Discount Drug did just the opposite; it made matters worse. Today’s order demonstrates our office’s unwavering commitment to hold all those who had a role to play in this crisis — from distributors, to prescribers, to the pharmacies who ultimately put the pills in patients’ hands — responsible for their actions.”
“DEA Diversion Investigators will continue to aggressively pursue the unlawful dispensing practices of healthcare providers,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “These providers should be in compliance with a set standard of rules and regulations. This civil suit and permanent injunction shows that DEA, its law enforcement partners and the U.S. Attorney’s Office are committed to making sure that healthcare providers are abiding by its mandates.”
Trial Attorney James W. Harlow of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys C. Michael Anderson and John E. Harris of the U.S. Attorney’s Office for the Eastern District of North Carolina represented the United States. The Greensboro Resident Office of the Drug Enforcement Administration investigated the case.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the Eastern District of North Carolina, visit its website at https://www.justice.gov/usao-ednc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Court Orders North Carolina Pharmacy and Pharmacist to Pay $600,000 and to Never Again Dispense Opioids or Other Controlled SubstancesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, a consent judgment and permanent injunction was entered requiring a North Carolina pharmacy, FARMVILLE DISCOUNT DRUG, INC., as well as its owner and pharmacist-in-charge, ROBERT L. CROCKER, to pay $600,000.00 in civil penalties and to never again dispense opioids or other controlled substances. Under the Court’s order, CROCKER will also surrender his license to practice pharmacy and never seek its renewal, and FARMVILLE DISCOUNT DRUG will permanently surrender its registration with the U.S. Drug Enforcement Administration (DEA).
CONSENT JUDGMENT AND PERMANENT INJUNCTIONThe consent order resolves a complaint filed by the United States alleging that FARMVILLE DISCOUNT DRUG and CROCKER repeatedly filled prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act. The United States alleged that, for years, defendants ignored well-known “red flags” of drug diversion and drug-seeking behavior when filling prescriptions for controlled substances. These prescriptions often involved well-known, highly addictive, and highly abused painkillers such as oxycodone, hydrocodone, hydromorphone, and methadone, along with other “potentiator” drugs—drugs that heighten the euphoric effects of opioids, like diazepam (i.e., Valium), alprazolam (i.e., Xanax), and zolpidem (i.e., Ambien). Those potentiators also increase the risk of abuse and overdose.
As detailed in the complaint, many prescriptions raised multiple red flags, but CROCKER and FARMVILLE DISCOUNT DRUG failed to take the required steps to resolve those red flags and ensure the prescriptions’ legitimacy before filling them. The red flags ignored by CROCKER and FARMVILLE DISCOUNT DRUG were numerous:
- CROCKER and his pharmacy filled prescriptions for dangerous, highly abused prescription-drug cocktails for long-distance patients who saw a doctor an hour away and lived an hour away;
- The pharmacy filled hundreds of opioid prescriptions for multiple members of the same family;
- The pharmacy filled prescriptions for a prescriber that CROCKER knew had been cut off from other pharmacies;
- The pharmacy filled controlled-substance prescriptions for patients who hopped from doctor to doctor or pharmacy to pharmacy.
When other employees expressed concern to CROCKER about FARMVILLE DISCOUNT DRUG’s practices, he dismissed them, saying that if a doctor wrote the prescription, the pharmacy would fill it.
For example, as set forth in the complaint, FARMVILLE DISCOUNT DRUG dispensed thousands of high-strength opioid pills to Individual A, a person who lived approximately 60 miles from FARMVILLE DISCOUNT DRUG. A doctor located approximately 53 miles from the pharmacy wrote individual A’s prescriptions. Approximately 77% of the prescriptions Individual A filled at FARMVILLE DISCOUNT DRUG were for 30-mg oxycodone tablets, the highest strength immediate-release oxycodone tablet available. At one point, FARMVILLE DISCOUNT DRUG dispensed four thirty-day supplies of 30-mg oxycodone tablets (720 tablets) for Individual A in just 66 days. And to make matters worse, FARMVILLE DISCOUNT DRUG often dispensed oxycodone to Individual A in combination with other opioids (such as 5-mg or 10-mg methadone) or muscle relaxers (such as 350-mg carisoprodol), increasing the risk of abuse or overdose. For example, although the Centers for Disease Control and Prevention urge caution when an individual receives an opioid dosage greater than 90 morphine milligram equivalents (MME) per day, at times, FARMVILLE DISCOUNT DRUG dispensed oxycodone and methadone pills to Individual A totaling more than 300 MME per day, before adding the additional depressant effects of the muscle relaxer.
During the same period, FARMVILLE DISCOUNT DRUG also filled more than thirty prescriptions for Individual B, who shared the same last name as Individual A and who resided at the same address as Individual A for at least a portion of the time they were both filling prescriptions at FARMVILLE DISCOUNT DRUG. Notably, approximately 97% of the prescriptions that FARMVILLE DISCOUNT DRUG filled for Individual B were for 30-mg oxycodone tablets—the same drug and strength that Individual A was receiving.
The claims resolved by the consent order remain allegations only, and there has been no judicial determination or admission of liability. Rather, the court adopted the parties’ agreement to resolve the case without further litigation and entered a consent order ensuring, among other things, that CROCKER and FARMVILLE DISCOUNT DRUG will never dispense opioids or other controlled substances again.
“The Department of Justice has made combating the opioid crisis one of its top priorities,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will work hand-in-hand with the DEA and other law enforcement partners to ensure that pharmacies that fail to uphold their obligation to dispense controlled substances lawfully will be held accountable.”
“Opioid addiction and abuse have devastated communities across our nation, and eastern North Carolina is no exception,” said United States Attorney Robert J. Higdon. “As the last line of defense between these dangerously addictive substances and our communities, pharmacists and pharmacies play a critical role in stemming the tide of the opioid epidemic. The turn-a-blind-eye approach to pharmacy practice on display at Farmville Discount Drug did just the opposite; it made matters worse. Today’s order demonstrates our office’s unwavering commitment to hold all those who had a role to play in this crisis—from distributors, to prescribers, to the pharmacies who ultimately put the pills in patients’ hands—responsible for their actions.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented on the case, “DEA Diversion Investigators will continue to aggressively pursue the unlawful dispensing practices of healthcare providers. These providers should be in compliance with a set standard of rules and regulations. This civil suit and permanent injunction shows that DEA, its law enforcement partners and the U.S. Attorney’s Office are committed to making sure that healthcare providers are abiding by its mandates.”
The investigation and prosecution of this case were a joint effort by the U.S. Drug Enforcement Administration, the U.S. Attorney’s Office for the Eastern District of North Carolina, and the Consumer Protection Branch of the U.S. Department of Justice. Assistant United States Attorneys C. Michael Anderson and John E. Harris and Consumer Protection Branch Trial Attorney James W. Harlow represented the government.
***
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.
Ex-Chairman of Christian Science Church in Los Angeles Pleads Guilty to Criminal Charges of Stealing $11 Million from ChurchRead the Press Release
LOS ANGELES – The former chairman of the board for the Fifth Church of Christ, Scientist, of Los Angeles pleaded guilty today to federal criminal charges that he stole more than $11 million in church money via bank accounts for phony companies and tried to cover his tracks by impersonating a real estate developer.
Charles Thomas Sebesta, 55, of Huntington Beach, pleaded guilty to one count of wire fraud affecting a financial institution and one count of bank fraud. He has been in federal custody since his arrest in August 2019.
According to his plea agreement and other court documents, Sebesta was hired in 2001 as the church’s facilities manager and joined the church in 2005, ultimately serving as its local chairman. In this capacity, he had control over the church’s financial assets and operations, including some of its bank accounts.
From at least August 2006 through December 2016, Sebesta caused the church to make checks and other payments to fictitious companies for which he had opened bank accounts that he controlled, as well as to bank accounts he held in his own name and in the names of his family members and a female companion. To further conceal these payments, Sebesta forged a church member’s signature on numerous checks drawn against the church’s bank accounts.
In the fall of 2008, Sebesta oversaw the sale of church property in Hollywood for approximately $12.8 million. He admitted that he siphoned a significant majority of the proceeds for his personal use, including purchasing a home with more than $2 million in cashier’s checks drawn from church bank accounts. The checks were falsely recorded in church records as “donations” and environmental remediation payments to a fictitious “Sky Blue Environmental” company.
In 2009 and 2010, Sebesta wired $1.86 million and $309,622 in church money to be credited to his own personal tax accounts in order to generate overpayment refunds to himself from the U.S. Treasury and the California Franchise Tax Board, respectively.
To conceal his crimes, Sebesta impersonated a real estate developer by creating an email account in the executive’s name. Posing as the developer, Sebesta sent emails to church members in which he fraudulently represented that the real estate developer was making donations to the church, including making rent payments for the church’s new location, and held Sebesta in high esteem.
Sebesta also admitted to defrauding another former employer – a private high school in Los Angeles County – out of $34,032.
He also embezzled $36,282, which had been donated to the church by the estate of a donor.
In total, Sebesta stole at least $11,438,213 of church assets, according to court documents.
United States District Judge Stephen V. Wilson has scheduled a May 18 sentencing hearing, at which time Sebesta will face a statutory maximum penalty of 60 years in federal prison.
The United States Secret Service investigated this matter.
This case is being prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section.
Convicted Felon Pleads Guilty to Illegal Re-Entry, False Representation of Social Security NumberRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of OLGA MARINA FRANCO DEL-CID, 36, to one count of illegal re-entry after removal and one count of false representation of social security account number. FRANCO DEL-CID, who was charged on December 12, 2019, entered her guilty plea earlier today before Judge Susan Richard Nelson in U.S. District Court, in St. Paul, Minnesota. A sentencing date has been set for June 11, 2020.
According to the defendant’s guilty plea and documents filed in court, FRANCO DEL-CID was previously removed from the United States on May 4, 2016, following a felony conviction on August 8, 2008, in Lyon County, for criminal vehicular homicide. On November 26, 2019, FRANCO DEL-CID was found in the United States in violation of the previous removal. FRANCO DEL-CID also admitted to falsely representing a social security number on an Employment Eligibility Verification Form I-9.
This case is the result of an investigation conducted by U.S. Immigration and Customs Enforcement.
Assistant U.S. Attorney Laura M. Provinzino is prosecuting the case.
Defendant Information:
OLGA MARINA FRANCO DEL-CID, 36
Inver Grove Heights, Minn.
Charges:
- Illegal re-entry after removal, 1 count
- False representation of social security account number, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Colusa County-based Darkweb Drug Vendor “Budgetbudsexpress” Pleads GuiltyRead the Press Release
SACRAMENTO, Calif. — Eric Friccero, 29, of Arbuckle, pleaded guilty today to possessing with intent to distribute a controlled substance, U.S. Attorney McGregor W. Scott announced.
According to court documents, Fricerro, operating under the name “BudgetBudsExpress,” distributed marijuana to customers throughout the United States through darkweb marketplaces. On Jan. 31, 2019, law enforcement officers searched Friccero’s residence and found marijuana that was offered for sale on the darkweb, along with bitcoin and cash.
This case is the product of an investigation by the Northern California Illicit Digital Economy Task Force (NCIDE), composed of agents from Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Drug Enforcement Administration, and IRS Criminal Investigation. The NCIDE Task Force is a federal task force focused on targeting all forms of darkweb and cryptocurrency activity in the Eastern District of California. Assistant U.S. Attorneys Grant B. Rabenn and Paul Hemesath are prosecuting the case.
Friccero is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Aug. 17. Friccero faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Cherokee Man Is Sentenced to More Than Four Years for Sexually Abusing A Minor on Indian ReservationRead the Press Release
ASHEVILLE, N.C. – David Paul George Sr., 56, of Cherokee, N.C., was sentenced today to 51 months in prison for the sexual abuse of a minor in Indian Country, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Max O. Cogburn Jr. also ordered George to serve 15 years under court supervision, and to register as a sex offender after he is released from prison.
Chief Doug Pheasant, of the Cherokee Indian Police Department, joins U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s sentencing hearing, between March and May 2018, George, who is an enrolled member of the Eastern Band of Cherokee Indians, sexually abused a minor female entrusted in his care. As George previously admitted in court, the defendant sexually abused the victim on multiple occasions. The sexual abuse took place in Swain County, within the boundaries of the Indian reservation.
George has been in federal custody since June 2019. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the Cherokee Indian Police Department for their investigation of this case.
Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Carjacker Sentenced to 15 Years in Federal PrisonRead the Press Release
An armed carjacker who led police on a wild chase across Northeast Dallas was sentenced today to 15 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Austin David Reed, 27, pleaded guilty in September to carjacking and brandishing a firearm during a crime of violence.
According to plea papers, Mr. Reed admitted that while armed with a pistol, he used force and violence to steal a 2006 Acura in February 2019.
Law enforcement encountered Mr. Reed, who was wearing a bullet proof vest, at a hotel room in Dallas after receiving about a domestic disturbance.
According to an indictment, Mr. Reed stated he was “not going down like this,” and fled the scene, running through a wooded area and into a nearby neighborhood, where he carjacked the Acura.
He then led police on a high-speed chase, crashing the car through a neighborhood gate in an attempt to reach the road. After wrecking the Acura on a light pole, Mr. Reed exited the vehicle and ran into a nearby home. Inside, he brandished a knife and demanded car keys. When one of the home’s occupants confronted Mr. Reed with a firearm, he fled through the garage.
The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Ryan Raybould prosecuted the case. U.S. District Judge Samuel A. Lindsay handed down the sentence.