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Newest first across public DOJ and U.S. Attorney press releases.
Thursday 30 January 2020
Delaware U.S. Attorney's Office Collects $9,560,696.85 for U.S. Taxpayers and Victims in Fiscal Year 2019Read the Press Release
WILMINGTON, Del. – United States Attorney David C. Weiss announced today that the U.S. Attorney’s Office for the District of Delaware collected $9,560,696.85 in criminal and civil actions during fiscal year 2019, which ended September 30th. Of that amount, $6,337,256.91 was collected through civil actions and $3,223,439.94 stemmed from fines and restitution ordered as part of criminal convictions.
Two cases that generated significant collection efforts include U.S. v. Zahid Aslam and U.S. v. Navimax Corp., both generating $3,070,000 and $2,000,000 respectively.
“This year’s substantial recovery is a direct result of increased collaboration and cooperation between my Office and our federal, state and local partners,” said U.S. Attorney Weiss. “As prosecutors, our work does not end with a conviction in a criminal case or a settlement or judgment in a civil case. As the numbers demonstrate, we work diligently to facilitate collection of civil debts and thereby ensure financial justice for crime victims.”
The U.S. Attorneys’ Offices, along with the U.S. Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
FY 2019 collections include recovery of government money lost to criminal fraud, environmental crimes, and other misconduct and recovery of money lost by victims as a result of individual and corporate misconduct. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Internal Revenue Service, and the Department of Education.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the District of Delaware.
Defendants sentenced for arranging and participating in fraudulent marriages to deceive immigration officialsRead the Press Release
ATLANTA - Yuly Cesar Perez-Sale is the last of 31 defendants to be sentenced in connection with four-related indictments alleging marriage fraud and other immigration offenses concerning fraudulent marriages between Cuban nationals and United States citizens, and undocumented aliens from the countries of Honduras, Mexico, Uruguay, Brazil, Peru, and Venezuela.
“These defendants attempted to thwart the immigration laws of the United States by operating and participating in a fraudulent marriage factory,” said U.S. Attorney Byung J. “BJay” Pak. “Some of the defendants abused the law that allowed them as Cuban nationals to remain legally in this country. Thanks to the diligence and multi-state investigation of Homeland Security Investigation special agents, these defendants have been successfully prosecuted and, where applicable, deported.”
“Marriage fraud undermines the integrity of this nation’s immigration system”, said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama. “This multi-year investigation, led by HSI Atlanta’s Document and Benefit Fraud Task Force, is a testament to the tenacity of the task force who worked for years to see through the house of lies these “couples” built through fraud and illegal payments.”
According to U.S. Attorney Pak, the charges and other information presented in court: In November 2013, U.S. States Citizenship and Immigration Services (USCIS) and Homeland Security Investigations (HSI) in Atlanta, Georgia, began investigating a marriage fraud scheme involving undocumented aliens entering into fraudulent marriages with Cuban nationals, and U.S. citizens, to illegally gain immigration status in the United States.
Beginning in February 2001, and continuing through December 2016, the primary organizers of the scheme, Carolina Chow, Betiluz Suarez, Teodoro Gonzalez-Bonora, Marzuella Hernandez, and Jorge Morales-Amador, recruited and paid Cuban nationals and U.S. citizens to marry the illegal aliens. The illegal aliens then agreed to pay either Chow, Suarez, Gonzalez-Bonora, Marzuella Hernandez, or Morales-Amador as much as $20,000 to find and arrange a marriage with a Cuban national or U.S. citizen.
Once the fraudulent marriage was arranged, these defendants scheduled meetings between the aliens and their purported spouses. During the meetings, the aliens were informed about the price for the marriage, the date of payment, and how to answer questions posed to them by immigration officials.
In the course of investigating this large-scale criminal operation, the lead HSI case agents traveled all over the U.S., locating targets of the investigation and developing evidence to support these prosecutions. In all, the four indictments returned by a grand jury resulted in guilty pleas by and convictions for the following defendants on the dates below:
Case I – United States v. Carolina Chow et. al. –
- Alfredo Romero-Hernandez, 56, of Atlanta, Georgia, Conspiracy to Defraud the United States. Convicted April 10, 2019;
- Lidia Pico-Guzman, 47, of Beaumont, Texas., Immigration Document Fraud. Convicted April 9, 2019;
- Isandra Perez-Batista, 49, of Amarillo, Texas, Immigration Document Fraud. Convicted October 18, 2018;
- Carolina Chow, 47, of Atlanta, Georgia, Conspiracy to Defraud the United States and Improper Entry by Alien. Convicted September 19, 2018;
- Juan Del Toro Peligrino, 51, of Houston, Texas, Alien Harboring and Immigration Document Fraud. Convicted May 15, 2018.
- Margida Reyna Ruiz, 59, of Houston, Texas, Conspiracy to Defraud the United States. Convicted April 24, 2018;
- Yoanka Matos, 34, of Jacksonville, Florida, Alien Harboring. Convicted April 24, 2018;
- Josvany Perez-Lopez, 44, of Houston, Texas, Alien harboring and Immigration Document Fraud. Convicted November 15, 2017;
- Dagnay Rivera Nunez, 42, of Miami, Florida, Harboring Aliens. Convicted November 13, 2017;
- Nuria Chabeco-Mustelier, 51, of Houston, Texas, Conspiracy to Defraud the United States, Alien Harboring, and Immigration Document Fraud. Convicted November 13, 2017;
- Francisco Castellano-Arjona, 42, of Miami, Florida, Immigration Document Fraud. Convicted November 2, 2017;
- Teodoro Gonzalez Bonora, a/k/a Teo, 49, of Atlanta, Georgia, Alien Harboring and Immigration Document Fraud. Convicted August 9, 2017; and
- Anibal Valdes, 28, of Houston, Texas, Alien Harboring and Immigration Document Fraud. Convicted June 27, 2017.
Case II – United States v. Jorge Morales-Amador et. al. –
- Lourdes Guerra-Mendez, 49, of Atlanta, Georgia, Marriage Fraud. Convicted April 2, 2018;
- Jorge Morales-Amador, 50, of Ft. Pierce, Florida, Conspiracy to Defraud the United States and Marriage Fraud. Convicted March 13, 2018;
- Janelle Berry, 25, of Atlanta, Georgia, Marriage Fraud. Convicted October 24, 2017;
- Lamesha Sheppard, 28, of Atlanta, Georgia, Conspiracy to Defraud the United States and Marriage Fraud. Convicted September 28, 2017; and
- Susset De La Torres, 40, of Atlanta, Georgia, - Marriage Fraud and Alien Harboring. Convicted May 3, 2017.
Case III – United States v. Betiluz Suarez et. al. –- Alexander Alayo, 47, of Miami, Florida, Conspiracy to Defraud the United States. Convicted January 4, 2018;
- Betiluz Suarez, 51, of Atlanta, Georgia, Alien Harboring. Convicted December 20, 2017; and
- Jose F. Polanco, 40, of Atlanta, Georgia, Alien Harboring. Convicted December 18, 2017.
Case IV: United States v. Maruzella Hernandez et. al. –- Miriam Martinez-Pol, 53, of Houston, Texas, Conspiracy to Defraud the United States. Convicted March 21, 2018;
- Lazaro Machin, 54, of San Antonio, Texas, Alien Harboring and Immigration Document Fraud. Convicted February 20, 2018;
- Ofelia Astiazarain-Cabrera, 55, of Houston, Texas, Alien Harboring. Convicted February 20, 2018;
- Mercedes Acevedo-Alonso, 35, of Tampa, Florida, Alien Harboring and Immigration Document Fraud. Convicted February 15, 2018;
- Maruzella Hernandez, 51, of Atlanta, Georgia, Conspiracy to Defraud the United States and Alien Harboring. Convicted February 14, 2018;
- Yosvany Mendoza-Gonzalez, 49, of Austin, Texas, Alien Harboring. Convicted November 28, 2017;
- Jose Antonio Polanco-Penalver, 49, of Atlanta, Georgia, Conspiracy to Defraud the United States and Alien Harboring. Convicted September 27, 2017; and
- Mayelis Hernandez-Almenares, 41, of Atlanta, Georgia, Alien Harboring and Immigration Document Fraud. Convicted September 6, 2017.
Yuly Cesar Perez-Sale, 52, of Miami, Florida, was sentenced by U.S. District Judge Eleanor L. Ross. Perez-Sale pleaded guilty on October 16, 2019, to the offenses of Conspiracy to Defraud the United States and Alien Harboring.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated these cases.Assistant U.S. Attorneys Stephanie Gabay-Smith, Mary Webb, and Richard S. Moultrie, Jr., Chief of the Violent Crime & National Security Section, prosecuted the cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.Dallas Charter School CEO Convicted in Kickback Scheme Sentenced to 7+ YearsRead the Press Release
A Dallas charter school CEO was sentenced Thursday to more than seven years in federal prison for her role in a corruption scandal following an investigation by the FBI Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In October, a federal jury deliberated for just four hours before finding Nova Academy CEO Donna H. Woods, 65, guilty of one count of conspiracy to commit mail and wire fraud, and three individual counts of wire fraud.
U.S. District Judge Sidney A. Fitzwater sentenced her Thursday morning to 87 months in federal prison and ordered her to pay $337,951.06 in restitution to the Federal Communications Commission.
Woods’s co-conspirator, Donatus Anyanwu, 61, pleaded guilty to conspiracy in July. Judge Fitzwater sentenced him to 30 months in prison and declared him jointly and severally liable for the restitution owed to the FCC Thursday.
According to evidence presented at trial, Ms. Woods approved the granting of a federal telecommunications E-rate contract, worth approximately $337,951, to ADI Engineering, a company owned by Dr. Anyanwu. In return for the E-rate contract, Anyanwu paid Woods $50,000 in kickbacks.
When the charter school initially selected another contractor for E-rate, prosecutors explained, Ms. Woods filed a falsified E-rate application re-directing the contract to ADI – despite the company’s shoddy record. To ensure that ADI’s bid was accepted by E-rate program managers, Ms. Woods also allowed Dr. Anyanwu to copy portions of the original winning bid and pass off the work as his own.
Then, when, ADI botched the E-rate job, Ms. Woods falsely certified that it had completed the work when it had not.
The Federal Bureau of Investigation’s Dallas Field Office and Federal Communications Commission Office of Inspector General conducted the investigation. U.S. Attorneys Russ Fusco and Nick Bunch prosecuted the case. Senior U.S. District Judge Sidney A. Fitzwater presided over the trial.
Creating a Philadelphia That’s Ready for Tomorrow: Remarks by U.S. Attorney McSwain to the Philadelphia Chamber of CommerceRead the Press Release
PHILADELPHIA – On December 19, 2019, United States Attorney William M. McSwain addressed the Board Meeting of the Philadelphia Chamber of Commerce. He discussed the priorities that he has set for the U.S. Attorney’s Office during his tenure, including those with a direct impact on the Philadelphia business community, such as anti-corruption and anti-violent crime efforts. He also detailed some of his corresponding outreach to different communities in the Eastern District of Pennsylvania. Finally, he shared his hopes for the City’s future. U.S. Attorney McSwain was introduced by the Chamber President, Independence Blue Cross CEO Daniel J. Hilferty. U.S. Attorney McSwain’s remarks as prepared for delivery are below.
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Thank you, Dan, for that kind introduction and for the invitation to be here today. I would also like to thank Rob Wonderling for extending the invitation. There are two senior members of my executive team here this morning that I wanted to acknowledge – Clare Putnam Pozos and Alison Kehner. Thank you both for your outstanding leadership and for joining me today.
First, I wanted to give you a bit of background. The United States Attorney’s Office for the Eastern District of Pennsylvania is one of 94 field offices of the United States Department of Justice. Each field office has a presidentially appointed United States Attorney who serves as the chief federal law enforcement officer for the District. I was nominated by the President in December 2017, confirmed by the Senate in March 2018, and sworn into office on April 6, 2018. My Office is one of the largest U.S. Attorney’s Offices in the country, with about 140 Assistant U.S. Attorneys (100+ in Criminal Division, 30+ in Civil Division). We serve a population of over 5 million and cover a geographic area of roughly 4,700 square miles across nine counties in southeastern Pennsylvania – Berks, Bucks, Chester, Delaware, Lancaster, Lehigh, Montgomery, Northampton, and Philadelphia counties.
When I first became U.S. Attorney, I set two strategic goals for the Office: (1) to increase productivity within the Office and (2) to increase transparency with the community. Over the previous decade, productivity had been in a steady decline in terms of the number of criminal prosecutions pursued and the number of defendants charged. I pledged to reverse that trend and to aggressively prosecute those who violate federal law in this District, no matter who those offenders are. I am pleased to announce that our efforts have been successful: our Criminal Division logged 669 prosecutions in fiscal year 2019 (ending on September 30, 2019), up from 478 in the previous fiscal year. That is a 40 percent increase in the number of criminal cases filed in this District and represents the highest number of cases charged by the Office in the last nine years. Similarly, the number of defendants indicted in fiscal 2019 – another measure of Office productivity and case complexity – has seen a significant increase. We charged 894 defendants this past year, up from only 599 in fiscal year 2018, which is a 49 percent increase.
Similarly, the Civil Division’s productivity is the highest it has been in years, and the number of civil cases the Office is proactively pursuing is on the rise. In the past year, our Office recovered over $123 million in civil settlements in 50 cases against companies accused of committing fraud, waste, or abuse against the government. And we have the most new case openings and affirmative civil enforcement investigations in our pipeline in the Office’s history.
We have also had success in increasing transparency with the community. I created a new unit, the Office of Public Affairs and External Engagement (OPAEE). The mission of that unit is to promote transparency and information-sharing with the community, foster relationships with law enforcement stakeholders and the public, and work with community groups on deterrence initiatives and crime prevention. Why was this so important to me? It is my firm belief that the citizens of this District have a right to know about the types of cases we bring and how our resources are allocated. One of my core values is accountability, and it is reflected in our increased transparency.
I also want it to be more difficult for criminals to commit crimes. I want to educate the community about how residents can best work with law enforcement and protect themselves. If we prosecute a case and no one ever hears about it, it will only directly affect the defendants and their loved ones, the victims and their loves ones, and those involved in the judicial process. But if prosecuting that same case could serve as a deterrent to others thinking about engaging in similar conduct, or educate law-abiding citizens about best practices, it is all the better to get the message out there.
As federal prosecutors, we spend a lot of time in the office, with defense counsel, and in the courtroom. But I wanted to expand our reach. I see a lot of familiar faces in the room, and there is a good reason for that. As many of you know, my Senior Advisor Clare Pozos and I have visited dozens of organizations over the past six months. We have traveled not only all over Philadelphia, but throughout the nine counties of the Eastern District, to businesses in Allentown and Reading and Malvern, and everywhere in between. We wanted to introduce ourselves to the community and explain our priorities. We wanted to highlight the good work that our Office is doing every day. And, importantly, we wanted to hear what was on your mind. What were your biggest concerns when it comes to the Department of Justice, to law enforcement, and to the safety of both your employees and your organization as a whole? In short, what keeps you up at night?
One such issue is cybersecurity. Everyone we’ve met with has mentioned it as one of their top priorities and concerns. But the response to cybersecurity fears and even incidents seemed to vary. Some individuals mentioned that they were not sure they’d ever want to call the FBI or the U.S Attorney’s Office about a hack or a ransomware attack because they would never want to go through a public trial, or perhaps they were worried that 50 FBI agents would suddenly show up on their company doorstep in riot gear. When we explained that the overwhelming majority of investigations and cases never go to trial, and that we can work with you to keep things as quiet as possible, many people were ready to reevaluate. Meanwhile, others mentioned that they have always been open to reaching out to us, but were unclear about whom to call, when to call, and what to reasonably expect from the call.
As a result, we acted right away. We want to make it as clear and as easy as possible for you to work on cybersecurity issues with the federal government. Thus, in November, we partnered with the FBI to hold a Federal CyberSecurity Conference at the National Constitution Center and invited everyone we met during our outreach, plus many more. We had over 150 attendees from the greater Philadelphia area, and we were able to explain to people – including employees from your organizations – how we work with individuals and corporations on keeping their data and their computer systems safe from harm. Our hope is that with outreach such as this, we are empowering the community with the knowledge and information to be safer and more secure.
It was satisfying to be able to provide that kind of service and support when we saw a need. But of course cybersecurity was not the only issue that came up during our meetings. Two additional issues were continually raised at our meetings with Philadelphia-based organizations: (1) the prevalence of violent crime on our City streets, and (2) the continued existence and pervasiveness of public corruption. I would like to address both of these issues.
I am going to tell you something that many of you already know: Philadelphia is not safe. The federal government is working hard to keep you, your families, and your employees safe from harm. But in my view, not everyone in local Philadelphia government shares this goal. In 2018, which was District Attorney Larry Krasner’s first year in office, Philadelphia endured 351 homicides, the most in over a decade, and an 11% increase as compared to 2017. There were 1,365 shooting victims in the City in 2018, the most since 2011, also an 11% increase as compared to 2017. And although this year is not quite over, the situation is no less grim. According to Philadelphia Police Department statistics, as of December 11, 2019, there have been 338 homicides this year to date, which is a 3% increase as compared to the total homicide rate on that same date last year. The Philadelphia Inquirer recently wrote about the murder of a 16-year old girl, Ceani Smalls, who was simply getting off the bus in North Philadelphia earlier this month, noting that she was the 106th child to be shot in Philadelphia in 2019 alone.
As many of you in this room may remember, Philadelphia in the 1970s and 1980s was not safe. For example, leaders of organized crime families including Nicodermo “Little Nicky” Scarfo, Giovanni Stanfa, and Joseph “Skinny Joey” Merlino had a penchant for violence, taking over parts of the City block by block with extortion, racketeering, narcotics trafficking, and murder. Manufacturing was collapsing and the population was falling. Many were moving out of the City to the suburbs and beyond. Crime spiked. Abandoned buildings, empty lots, and graffiti proliferated. You could not walk down the street without being confronted with trash-strewn sidewalks. As I was growing up in Chester County, Philadelphia sometimes seemed to me less like a destination and more like a place to avoid if you could.
The Philadelphia of today looks different from that, thanks in part to strong leadership from the Mayor’s Office during the 1990s and early 2000s. From 1992 until 2000, Ed Rendell, to his credit, changed the future of the City, with The New York Times labeling his work “the most stunning turnaround in recent urban history.” Mayors Street and Nutter oversaw Philadelphia in its new prime. By 2011, census data revealed that Philadelphia had achieved its first confirmed population growth in 60 years. And growth continues. Developers are breaking ground on skyscrapers, and economic development is something that is a reality instead of a pipedream. National retailers, restaurants, and other businesses have populated streets that used to be overrun by crime. People are flocking to our world class institutions of higher learning – Penn, Temple, Drexel, and more – and importantly, they are choosing to stay here, find jobs, and raise a family. This is the Philadelphia of tomorrow that we want to create: one of economic growth and prosperity, safe from violence and corruption.
This change did not happen overnight, and it did not happen by accident. The success of this City is powered by individuals like you and by successful and growing businesses. And Philadelphia will be a world-class city only if everyone in it has an opportunity to thrive. But that kind of growth and success is not possible if our streets are not safe. It is not possible if the City is subjected to the worst excesses of a District Attorney who in fact knows very little about law enforcement – and what’s worse, does not care to know. Here is the clear-eyed truth: the only way to effectively deter homicide and other violent crime is to put fear into the hearts of those who would commit such atrocities – fear of the law enforcement consequences. The Philadelphia District Attorney’s Office isn’t putting fear into the hearts of anybody who is contemplating a life of violent crime.
Ceani Smalls should never have been in danger of being shot and killed while getting off a bus. She should have been given the opportunity to grow up in an environment that enabled her to flourish and reach her full potential. Every child in Philadelphia should have the opportunity to grow up in a safe neighborhood. I do not believe that that opportunity is being provided under the current City leadership, nor is it a priority. It certainly is not a priority of the District Attorney.
My Office, however, is doing everything that we can to pick up the slack. The Violent Crime unit in my Office charged the largest number of cases last year of all the units in the Office. Of the 669 total cases charged this past year, the Violent Crime unit charged nearly 1/3 of them. It charged a whopping 208 cases as compared to 136 in fiscal year 2018. That is a 53% increase in just one year.
And as part of the U.S. Justice Department’s national reinvigoration of its Project Safe Neighborhoods program, we have put additional resources into the Violent Crime unit to step up enforcement efforts in our PSN target districts, many of which are in Philadelphia. In fiscal year 2019, of the 208 violent crime cases charged, 143 are from PSN districts. And we intend to continue this upward trend in the upcoming year because Philadelphia is counting on us.
Given the circumstances, it must also be part of our strategy that if we believe that the DA’s Office has badly mishandled a major case, we will consider stepping in and righting the wrong if we have federal jurisdiction. For example, when Jovaun Patterson shot Philadelphia shop owner, Li (“Mike”) Poeng, with an assault rifle during an attempted robbery of Mr. Poeng’s convenience store in South Philly on May 5, 2018, the Philadelphia District Attorney’s Office originally charged Patterson with multiple crimes, including attempted murder and aggravated assault, but then dropped the attempted murder charges and agreed to an overly lenient plea deal of 3 ½ to 10 years imprisonment. As a result of this shooting, Mr. Poeng is confined to a wheelchair, and the District Attorney’s Office did not even have the decency (a decency which, by the way, is mandated by state law) to notify Mr. Poeng when they made this outrageously low offer.
This was a case that we could take, and so we did. In February, my Office charged Patterson with one count of attempted robbery which interferes with interstate commerce, and one count of using, carrying and discharging a firearm during and in relation to a crime of violence. On the gun charge alone, Patterson faces a statutory maximum of life imprisonment and a statutory minimum of 10 years’ imprisonment, which must run consecutively to any other sentence imposed on the attempted robbery count. This week, in federal court, Patterson pleaded guilty to all charges and currently is awaiting sentencing in the custody of federal prison.
We will continue to prosecute these kinds of cases whenever possible in order to preserve the promise of Philadelphia’s future. I do not want the Philadelphia of tomorrow to backslide into the Philadelphia of the 1980s, or the Baltimore, MD or Newark, NJ of today. Philadelphia should be a city where an educated workforce want to remain, where businesses open their doors, and where families want to stay and raise their children.
Safe streets alone, however, are not enough for Philadelphia to prosper. Safety from violent crime goes hand-in-hand with ethical and law-abiding public servants leading the City. Citizens will be more likely to live here and start a family if they do not have to worry about their children getting shot on their way to school. But businesses won’t open if, at every turn, the owner has to pay a bribe to get a permit or make a donation to some public official’s phony charity. There should be no corruption tax to live and work in the City of Philadelphia. But too often, there is. Too often in this City, our public officials lack a sense of shame – they believe that their positions exist to enrich themselves rather than to serve the public.
The examples of corruption are, sadly, all around us. Just this month, West Philadelphia State Representative Movita Johnson-Harrell, who was the former head of the Victim Witness Services Unit for District Attorney Krasner, was charged with stealing more than half a million dollars from a nonprofit to fund a lavish lifestyle, including fur coats, family vacations, and designer clothes. Johnson-Harrell, who has now resigned in disgrace, was only elected on March 12th of this year in a special election. And why was there a special election? It was to replace former State Representative Vanessa Lowery Brown, who also had to resign in disgrace after being convicted of accepting $4,000 in cash bribes from an FBI informant. It makes you wonder how long West Philadelphia will have to wait to be represented by someone who is not corrupt.
These problems are not limited to one neighborhood, however; they are citywide. Former District Attorney Seth Williams pleaded guilty in the middle of his federal public corruption trial and received a five year prison sentence. Former Congressman Chaka Fattah is also in federal prison, after being convicted at trial in June 2016 for racketeering, bribery, bank fraud, mail fraud, money laundering, and falsifying records. He will be in federal prison until October 2025. Mr. Fattah is held at the same prison as his son, Chaka Fattah Jr., who was also prosecuted by my Office for a multitude of fraudulent schemes.
Renee Tartaglione is currently serving her federal sentence for operating a fraudulent addiction and mental health nonprofit from which she skimmed more than $2 million to enrich herself. Let’s not forget former State Senator Vince Fumo, who finished his four years in federal prison after having been convicted of a staggering 137 counts of corruption, conspiracy, and fraud.
Then there’s former Philadelphia Sheriff John Green, the City’s longest-serving sheriff, who is serving a five year prison sentence for accepting hundreds of thousands of dollars in bribes for awarding millions of dollars of city work to a friend.
And then there is the biggest case of them all. Earlier this year, my Office charged union leader John Dougherty, current Philadelphia City Councilman and Democratic Majority Leader Robert Henon, and six other individuals in a 116-count Indictment involving a multitude of federal crimes, including embezzlement, wire fraud, and public corruption. As a reminder, an indictment is only an accusation, and every defendant is presumed innocent unless and until proven guilty. But the allegations here are stunning. The Indictment alleges that Dougherty and others used many thousands of Local 98 dollars that were recorded as scholarships and charity donations meant for many, and instead spent that money on providing a lavish lifestyle for a select few. For example, according to the Indictment, thousands of dollars in Boyd’s gift cards were falsely reported to the union as a purchase for “Gift cards for Scholarship Banquet.” Thousands of dollars spent on meals for Dougherty and his friends and family became attributed instead to things like a “rehabilitative Local 98 member assistance program” and “Toys and Turkeys (for food baskets).” Dougherty allegedly placed family members on the payroll and paid them thousands of dollars for union work, even when these family members were in fact on vacation, attending school full-time, or otherwise not engaged in work for Local 98.
The Indictment goes on to allege that Dougherty and Councilman Henon had an illegal quid pro quo relationship, with Henon stating to Dougherty at one point that “I don’t give a f*** about anybody, all right, but f***ing you and us, and you know that.” Yes, those are the words of your City Council majority leader. The case is set for trial in September 2020. If you haven’t read the Indictment, I invite you to check it out, assuming you have a strong stomach.
It should go without saying, but I want to say it, anyway, because unfortunately we need to be reminded of this: not every major American City is like this. Most cities do not have their leaders – their Congressmen, their district attorneys, their sheriffs, their council members, their state reps, their union leaders and more – indicted and convicted of corruption, bribery, and embezzlement. And certainly if it happens elsewhere, it does not happen to a degree of this magnitude.
When I became the U.S. Attorney, public corruption was one of my top priorities and will remain so. No one should have to pay a corruption tax to do business in the City of Philadelphia. I deliberately talk about the time that these former public officials are serving in federal prison because it is our job at the U.S. Attorney’s Office to make sure that our public officials understand that there will be severe consequences if they cross the line. And we are going to be loud about it because we want our public officials to come nowhere near the line, but instead focus on serving the public interest. Public service, after all, is what they signed up for and what they were elected to do. And if they do what they are supposed to do because I do what I’m supposed to do, then you will all have the freedom and the opportunity to help your employees, your families, and the rest of our community better prepare for the Philadelphia of tomorrow – one with a bright and optimistic future.
The year 2019 marked tremendous accomplishments by the men and women in my Office. I am very proud to serve in an Office comprised of individuals who have chosen to dedicate their lives to the cause of justice. I look forward to what lies ahead in 2020 knowing that together, with everyone in this room, we will continue to enhance the lives of the people of Philadelphia.
I very much appreciate the opportunity to be with you today. God Bless you, and God Bless our wonderful City. Thank you.
Congress Must Ban Fentanyl AnaloguesRead the Press Release
In 2017, nearly 50,000 Americans died from an opioid overdose. In 2018, synthetic opioids accounted for over 28,000 overdose fatalities across the United States. Hundreds of those victims died here, in the Carolinas. They were our friends, our colleagues, our neighbors. And while we are encouraged by a recent decline in the reported death toll, the untimely loss of any life to this drug scourge is too great of a tragedy. As law enforcement leaders, this epidemic requires our continued and sustained attention.
One of the deadliest synthetic opioids is fentanyl, a drug 50 times more potent than heroin, and 100 times more powerful than morphine. Incredibly small quantities – measured like the grains of salt – can kill the average person.
Illegal fentanyl is manufactured in high-volume labs in China and Mexico, and its chemical structure is easily altered to create new drugs, called fentanyl analogues. Analogues can be created simply by altering just a single molecule.
Prior to 2018 drug traffickers were able to run sophisticated operations and evade law enforcement and prosecution by altering the chemical composition of fentanyl just enough to skirt the law. Even more frightening, the compounding done in illicit labs varies so much that no one can be sure of the amount they are ingesting.
To address this problem, in 2018, the Drug Enforcement Administration (DEA) used its authority to temporarily ban all fentanyl-related substances and closed a loophole used by drug traffickers to exploit our laws and profit off our people.
At the same time, it is important to note that the Trump Administration was able to persuade the Chinese government to prohibit fentanyl analogues as well.
However, the DEA’s order expires on February 6, 2020, and, unless Congress acts, many fentanyl analogues will become legal. Congress’s inaction will deliver a serious blow to our efforts to prosecute drug organizations and dealers who traffic in fentanyl. Further, it will make it more difficult to put behind bars those responsible for the deaths of our loved ones.
The United States Senate recently approved a temporary extension of the DEA’s temporary order. That is a good start. But, in order to stem this deadly epidemic, we need Congress to act decisively and permanently declare all fentanyl analogues illegal. Congress’ action will permanently arm law enforcement with the tools necessary to protect our communities from these deadly illicit drugs.
Critics of a permanent ban argue that the bill does not include a public health approach to the overdose crisis. We wholeheartedly agree that only a comprehensive approach will stem the tide of this public health crisis. Indeed, each of our U.S. Attorney’s offices collaborates with health care professionals, social services providers, and a wide range of community groups to implement comprehensive solutions to address this problem. But, strong criminal laws are a critical component of the Nation’s response to this crisis, and time is short. Mexican and Chinese drug traffickers eagerly await the expiration of the DEA’s temporary order to flood our communities with their increasingly deadly analogue poisons.
We join U.S. Attorney General William Barr and our fellow United States Attorneys across the country in calling upon Congress to permanently ban all fentanyl-related drugs. The lives of countless Carolinians depend upon swift and decisive action.
Messrs. Higdon, Martin and Murray are the United States Attorneys for the Eastern, Middle and Western Districts of North Carolina, respectively. Mr. Crick is the Acting United States Attorney for the District of South Carolina.
Cohoes Man Arrested for Transportation of Child PornographyRead the Press Release
ALBANY, NEW YORK – Paul Turnbull, age 53, of Cohoes, New York, was arrested on January 27 on charges of transporting child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty. Turnbull appeared in court on January 29 before United States Magistrate Judge Daniel J. Stewart. Following a detention hearing held yesterday, Turnbull was detained pending trial.
If convicted, Turnbull faces at least 15 years and up to 40 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Additionally, if convicted, Turnbull would be required to register as a sex offender.
Anyone with information relevant to this investigation may call HSI’s Albany office at (518) 220-2129.
The case is being investigated by HSI with assistance from the New York State Police Computer Crimes Unit and the Cohoes Police Department, and is being prosecuted by Assistant U.S. Attorney Robert A. Sharpe.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Chicago, Illinois Man Sentenced to 20 Years in PrisonRead the Press Release
SOUTH BEND – David Gibson, 48, of Chicago, Illinois was sentenced before South Bend District Court Judge Jon E. DeGuilio for conspiracy to distribute more than one kilogram of heroin, announced U.S. Attorney Kirsch.
Mr. Gibson was sentenced to 240 months in prison (to be served consecutively to a 12 year federal sentence in Wyoming) followed by 10 years of supervised release.
On September 20, 2019, Mr. Gibson and his co-defendant, Mr Harris were found guilty of conspiracy to distribute over a kilogram of heroin after a 4-day jury trial. According to evidence presented at trial, Mr. Gibson conspired with others to sell heroin in and around South Bend. The conspirators shared a cellphone that customers called to arrange purchases of heroin. The evidence showed that undercover law enforcement officers purchased heroin from members of the conspiracy on 28 separate occasions between March and October of 2017. Phone records showed that the shared cellphones had over 80,000 contacts during the time of the conspiracy. Mr. Gibson directed the sales conducted by those who sold heroin to the undercover officers.
This case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance from several local police agencies including the St. Joseph County Drug Investigation Unit, Indiana State Police, South Bend Police Department, Mishawaka Police Department, the Elkhart Police Department, the Interdiction and Covert Enforcement (ICE) Unit consisting of Elkhart County and Goshen Officers , the St. Joseph County Police Department and the St. Joseph County Prosecutor’s Office. The case was handled by Assistant U.S. Attorneys Joel Gabrielse and Molly Donnelly.
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Cheswick Man Sentenced to Prison for Stamp Theft Scheme Perpetrated to Pay a Drug DebtRead the Press Release
PITTSBURGH, PA - A former resident of Cheswick, Pennsylvania, has been sentenced in federal court to 18 months’ imprisonment and a three-year term of supervised release, and was ordered to pay $37,590 in restitution to the United States Postal Service, on his conviction of conspiracy, theft of government property and uttering and possessing false securities, United States Attorney Scott W. Brady announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on John Martell, 39.
According to information presented to the Court, between approximately April 23, 2018 and June 11, 2018, Martell and his codefendant, Holly Lovasik, who was a former employee of the United States Postal Service, engaged in a stamp theft scheme in order to pay a debt they owed to their drug dealer. The coconspirators purchased $34,800 in stamps from approximately 28 different Post Offices in the Western District of Pennsylvania, using checks that were written on closed accounts and checks that belonged to two deceased doctors that were falsely altered, completed and signed. Martell and Lovasik then re-sold the stamps for cash, predominantly at a pawn shop in Tarentum, PA. The court was further informed that, in addition to the stamp theft, the United States Post Office incurred $2,790 in check surcharges, for a total loss of $37,590.
Assistant United States Attorney Christy C. Wiegand prosecuted this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the successful prosecution of Martell.
Charlotte Woman Is Sentenced to More Than Two Years for Stealing over $458,000 from Retirees' AccountsRead the Press Release
CHARLOTTE, N.C. – Cynthia Williams-Singleton, 42, of Charlotte, was sentenced today to 27 months in prison and two years of supervised release for stealing more than $458,000 from the accounts of retirees, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Robert J. Conrad Jr. also ordered Williams-Singleton to pay $462,265.40 as restitution.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from December 2016 to June 2018, Williams-Singleton was a customer service representative with a call center located in Charlotte, for a company identified in court documents as “Company 1.” As a call center representative, Williams-Singleton worked on accounts associated with “Client A,” and had access to Company 1’s data systems that contained, among other things, retirement fund records for Client A’s benefit plan participants and their beneficiaries, including the participants’ personally identifiable information (PII).
According to court documents, Williams-Singleton carried out the fraud by accessing a participant’s account when the participant contacted the call center. After speaking with the participant and discovering that the participant was unsure or unaware of his or her account balance, Williams-Singleton informed the participant that the participant’s account was either empty, or had less funds than it did. She then added herself, her relatives and others, as beneficiaries of that participant’s account. Using her access to customers’ PII and retirement fund records, Williams-Singleton made unauthorized transfers of funds from Client A’s plan participants’ retirement accounts into bank accounts in her own name or under her control. During the course of the scheme, Williams-Singleton fraudulently withdrew approximately $458,772.88 in participant and beneficiary funds from approximately eight participant accounts without authorization. Generally, the holders of the participant accounts victimized by Williams-Singleton were persons over the age of 70.
Williams-Singleton pleaded guilty to wire fraud in June 2019. She will be ordered to report to the federal Bureau of Prisons to begin serving her sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the U.S. Secret Service. Assistant U.S. Attorney Jenny Sugar, with the U.S. Attorney’s Office in Charlotte, prosecuted the case.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative
Captured: Final Wanted "Operation Benchwarmers" Defendant Taken into Custody in TexasRead the Press Release
Macon, Ga. — The final defendant wanted in “Operation Benchwarmers” was taken into custody by FBI agents in Dallas, Texas on Wednesday afternoon, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. Andrew Bravo Jimenez, aka “Droopy,” 25, of Athens and Texas, was captured by FBI-Dallas agents, with assistance from FBI-Atlanta. Jimenez is charged with one count conspiracy to possess with intent to distribute methamphetamine, heroin and crack cocaine, which carries a maximum life prison sentence, along with one count possession with intent to distribute heroin. Federal indictments were unsealed last week in “Operation Benchwarmers,” charging 17 defendants wanted on federal gun and drug charges. More than 300 law enforcement members from 24 agencies and task forces participated in “Operation Benchwarmers” on Tuesday, January 21, 2020 in the Athens-Clarke County region, arresting 16 charged defendants that day. According to the Athens-Clarke County Police Department (ACCPD), “Operation Benchwarmers” is the largest law enforcement operation in the department’s history, netting an estimated street value of $955,986 in illegal narcotics, including heroin and methamphetamine, along with 43 firearms and assault rifles, plus $84,013 in cash.
“I want to commend the dedication of the FBI in pursuing and capturing this wanted defendant, found hundreds of miles away attempting to evade arrest,” said U.S. Attorney Charlie Peeler. “All 17 defendants charged in ‘Operation Benchwarmers’ have now been taken into custody, thanks to the excellent work of two dozen law enforcement agencies and more than 300 people. This operation was a success because of their relentless commitment to keeping Georgia communities safe.”
“We would like to thank our FBI Dallas field office for their assistance in making this final arrest in ‘Operation Benchwarmers,’” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “They are one of two dozen federal, state and local law enforcement agencies, integral in our effort to protect the law abiding citizens in the Athens area, making those citizens’ communities safer today.”
“The capture of the final defendant in this case brings closure, not only for the dedicated men and women of law enforcement who worked tirelessly to make this investigation a success, but also for the citizens of Athens, Georgia who deserve a safe community free from dangerous and deadly substances that wreak havoc on society,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division.
“ACCPD is pleased to learn that the final violent felon in this operation is off the streets and will be brought back to Georgia to face charges,” said ACCPD Chief Cleveland Spruill. “It further illustrates that local, state, and federal agencies can and will work together to bring violent criminals to justice.”
The investigation was conducted by the FBI Middle Georgia Safe Streets Gang Task Force, the Northeast Georgia Regional Drug Task Force, the Athens-Clarke County Police Department (ACCPD), the Drug Enforcement Administration (DEA) and the United States Attorney’s Office for the Middle District of Georgia, with the assistance of the following agencies:
- Athens-Clarke Fire Department
- Banks County Sheriff’s Office
- Clarke County Sheriff’s Office
- DeKalb County Police Department
- FBI
- FBI-Dallas
- Georgia Bureau of Investigation
- Georgia Department of Community Supervision
- Georgia Department of Corrections
- Georgia State Patrol
- Greene County Sheriff’s Office
- Gwinnett County Police Department
- Homeland Security Investigations
- Madison County Sheriff’s Office
- Oconee County Sheriff’s Office
- City of Statham Police Department
- United States Marshals Service
- United States Probation Office
- Walton County Sheriff’s Office
Federal indictments charging 17 individuals have been unsealed. An indictment is only an allegation of criminal conduct, and all of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt. The following individuals are charged and have been taken into custody, unless otherwise noted:
The following 16 subjects are charged with conspiracy to possess with intent to distribute methamphetamine, heroin and crack cocaine. The penalty is a mandatory minimum ten years in prison up to a maximum life term in prison, a $10 million dollar fine and five years supervised release:
Rickshun Willigham, aka “Teddy,” 32, of Athens
Jaquavious T. Turner, aka “Take One”
Jamian Huff, aka “Dunk,” 34, of Athens
Andrew Bravo Jimenez, aka “Droopy”
Manuel Gonzalez Romero, of Athens and Mexico
Steven Ricole Scott, aka “Black,” aka “Unc,” 43, of Athens
Antonio M. Mitchell, aka “Tonio,” 30, of Athens
Marques Ward, aka “YG,” 31, of Athens
Ttajia Forney, 19, of Athens
Christopher Sanders, aka “Chris,” 33, of Athens
Bernard Barnett, aka “Nard,” 22, of Athens
Maquila Jones, aka “Qui,” 20, of Athens
Nicholas Jackson, aka “Nick Bean,” 26, of Athens
Terrell Bush, aka “T-Rock,” 45, of Athens
Shaddrick Cox, aka “Shad,” 24, of Athens
Robert Bolton, Jr., aka “Rob,” 31, of Athens
The following ten subjects are charged with distribution of cocaine base/crack cocaine. The penalties range from a maximum 20 years in prison to a maximum 40 years in prison:
Rickshun Willigham, aka “Teddy,” 32, of Athens (15 counts)
Jaquavious T. Turner, aka “Take One” (9 counts)
Jamian Huff, aka “Dunk,” 34, of Athens
Bernard Barnett, aka “Nard,” 22, of Athens (2 counts)
Shaddrick Cox, aka “Shad,” 24, of Athens
Steven Ricole Scott, aka “Black,” aka “Unc,” 43, of Athens (3 counts)
Christopher Sanders, aka “Chris,” 33, of Athens
Robert Bolton, Jr., aka “Rob,” 31, of Athens
Antonio M. Mitchell, aka “Tonio,” 30, of Athens
Maquila Jones, aka “Qui,” 20, of Athens
The following eight subjects are charged with possession of a firearm in furtherance of a drug trafficking crime. The penalty is a mandatory minimum five years in prison up to a maximum life term in prison:
Rickshun Willigham, aka “Teddy,” 32, of Athens (12 counts)
Jaquavious T. Turner, aka “Take One” (7 counts)
Bernard Barnett, aka “Nard,” 22, of Athens (3 counts)
Christopher Sanders, aka “Chris,” 33, of Athens
Antonio M. Mitchell, aka “Tonio,” 30, of Athens
Marques Ward, aka “YG,” 31, of Athens
Ttajia Forney, 19, of Athens
Shaddrick Cox, aka “Shad,” 24, of Athens
The following three subjects are charged with distribution of heroin. The penalty is a maximum 20 years in prison:
Rickshun Willigham, aka “Teddy,” 32, of Athens (5 counts)
Jaquavious T. Turner, aka “Take One” (3 counts)
Bernard Barnett, aka “Nard,” 22, of Athens (2 counts)
The following six subjects are charged with possession with intent to distribute heroin. The penalties range from a maximum 20 years in prison to a maximum 40 years in prison:
Marques Ward, aka “YG,” 31, of Athens
Ttajia Forney, 19, of Athens
Terrell Bush, aka “T-Rock,” 45, of Athens
Nicholas Jackson, aka “Nick Bean,” 26, of Athens
Manuel Gonzalez Romero, of Athens and Mexico
Andrew Bravo Jimenez, aka “Droopy”
The following two subjects are charged with distribution of methamphetamine. The penalty is a maximum 20 years in prison:
Rickshun Willigham, aka “Teddy,” 32, of Athens
Bernard Barnett, aka “Nard,” 22, of Athens
The following two subjects are charged with possession with intent to distribute methamphetamine. The penalty is a maximum 20 years in prison:
Marques Ward, aka “YG,” 31, of Athens
Ttajia Forney, 19, of Athens
The following subject is charged with possession of a firearm by a convicted felon. The penalty is a maximum ten years in prison:
Armand Payne, 39, of Athens
The following subjects were taken into custody during “Operation Benchwarmers” on state charges:
Luis Besave-Lagunas (Charged in Madison County with Trafficking Heroin, Trafficking Methamphetamine and Possession of a Firearm during the Commission of a Felony)
Zenon Carrera-Ferrer (Charged in Athens-Clarke County with Trafficking Methamphetamine, Trafficking Heroin and Possession of Cocaine)
Dwight Moreland (Probation Violation)
Andreas Lane (Charged in Madison County with Possession with Intent to Distribute Heroin, Possession of a Firearm by a Convicted Felon and Probation Violation)
Adian Mapp (Charged in Madison County with Possession with Intent to Distribute Heroin and Possession of a Firearm by a Convicted Felon)
Leonard Jackson (Charged in Athens-Clarke County with Possession of a Firearm by a Convicted Felon)
The following firearms, cash and illegal drugs were seized:
- 43 firearms seized (including 8 assault rifles)
- $84,013 U.S. Currency seized
- 8.34 kilograms of heroin (Street Value: $667,200)
- 4.3 pounds of crystal methamphetamine (Street Value: $195,400)
- 26.1 ounces of crack cocaine (Street Value: $78,200)
- 2.4 pounds of marijuana (Street Value: $4,376)
- 3.31 ounces of power cocaine (Street Value: $9,400)
- 94 controlled pharmaceuticals (Street Value: $940)
- 40 grams of oxycodone (Street Value: $470)
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Brooklyn Man Sentenced to More Than 9 Years in Prison for Multimillion-Dollar Identity Theft and Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JAMAL SIMON was sentenced today by United States District Judge Paul A. Crotty to 115 months in prison for his participation in an identity theft scheme. SIMON previously pled guilty before Judge Crotty to one count of conspiracy to commit wire fraud, one count of aggravated identity theft, and one count of wrongfully obtaining individually identifiable health information.
U.S. Attorney Geoffrey S. Berman said: “Jamal Simon and his co-conspirators developed a sophisticated scheme to steal from financial institutions and their customers. Through brazen identity theft and fraud, Simon stole millions of dollars from credit card companies and banks. Thanks to the skilled investigative work of the FBI, the defendants’ crime spree has been brought to a halt.”
According to the allegations in the Indictment, other documents filed in the case, and statements made in court, including during SIMON’s guilty plea:
From March 2017 through at least July 2017, SIMON and his co-conspirators carried out a wide-ranging fraud scheme that involved unlawfully obtaining individually identifiable information of other individuals (including names, addresses, phone numbers, email addresses, birthdates, bank account numbers, credit and debit card numbers, and cellphone service provider account numbers); impersonating those individuals in order to obtain unauthorized access to their bank accounts, credit and debit card accounts, and cellphone service provider accounts; and then using such access to, among other things, facilitate the fraudulent transfer of funds to bank accounts controlled by members of the conspiracy and the unauthorized purchasing of merchandise and gift cards at retail stores. In some cases, SIMON transferred victims’ telephone numbers to a cellphone controlled by SIMON so that he and his co-conspirators could circumvent credit card companies’ standard security measures that confirm suspicious transactions through text message or email to the consumer.
The scheme perpetrated by SIMON and his co-conspirators defrauded financial institutions and individual victims of more than $3.5 million.
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In addition to the prison term, SIMON, 31, was also sentenced to three years of supervised release, ordered to pay $2,430,771.05 in restitution, and ordered to forfeit $500,000.
Mr. Berman praised the outstanding investigating work of the Federal Bureau of Investigation.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
The prosecution is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Nicholas W. Chiuchiolo and Robert B. Sobelman are in charge of the prosecution.
Bronx Man Pleads Guilty to Conspiracy to Commit Bank Fraud and Identity TheftRead the Press Release
CONCORD - Albert Paulin, 43, of Bronx, New York, pleaded guilty in federal court to conspiracy to commit bank fraud and aggravated identity theft, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, from approximately August of 2017, to approximately January of 2018, Paulin conspired with others to withdraw money from other person’s bank accounts. Specifically, Paulin drove runners to a number of bank branches and provided them with false driver’s licenses that contained bank customers’ personal identifying information and the runners’ photographs. Paulin also provided the runners with the account holders’ bank account number. The runners then entered the bank branches and withdrew funds from bank accounts with the information provided by Paulin.
In total, Paulin’s runners successfully withdrew over $109,900 and attempted to withdraw an additional $43,700 from over 19 victims’ bank accounts.
Paulin is scheduled to be sentenced on May 14, 2020.
“Bank fraud and identify theft offenses cause great harm to victims and undermine confidence in our financial institutions,” said U.S. Attorney Murray. “The damage is increased when organized criminal conspiracies are involved. Fraudsters who come to New Hampshire to commit crimes should know that our law enforcement community is working hard to protect our citizens. Those who seek to profit from fraud will be caught and they will be prosecuted.”
This matter was investigated by the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Matthew Hunter.
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Blacksburg Doctor Convicted of 60 Federal Offenses Including Health Care Fraud, Distribution of a Controlled Substance, Obstruction of JusticeRead the Press Release
Roanoke, VIRGINIA – The former owner of the Virginia Vein Institute, who illegally distributed controlled substances, conspired to commit health care fraud, committed health care fraud, and then obstructed justice to hinder the investigation, was convicted yesterday at the conclusion of a seven-day jury trial in U.S. District Court in Roanoke. United States Attorney Thomas T. Cullen, Virginia Attorney General Mark Herring, and Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services made the announcement today.
The jury, after deliberating for an hour and a half, found Frank Purpera Jr., 44, of Blacksburg, Va., guilty of all 60 counts for which he was charged. Those charges included 56 counts of illegal distribution of a controlled substance, two counts of obstruction of justice, one count of health care fraud, and one count of conspiracy to commit health care fraud.
Evidence presented at trial established that Purpera, for a period of approximately five years, wrote numerous prescriptions for Percocet, and Adderall, both Schedule II controlled substances, in the name of his wife, who had a different last name, on multiple occasions. The prescriptions were not for legitimate medical purposes and were outside the scope of Purpera’s medical practice. The defendant also falsified his medical records in an effort to defraud Medicare and Anthem Insurance. Medicare and Anthem paid claims to Purpera in excessive of $6 Million. After a search warrant was executed at the Virginia Vein Institution in September 2016, Purpera told his employees to say, “I don’t recall” when questioned by federal investigators. To reiterate this point, Purpera showed an employee a video clip from the popular movie, “The Wolf of Wall Street,” in which numerous employees, when interviewed by federal law enforcement, say “I don’t recall, I don’t recall.”
The investigation of the case was conducted by the Department of Health and Human Services-Office of the Inspector General, the Drug Enforcement Administration, the Virginia Attorney General’s Medicaid Fraud Control Unit, Federal Bureau of Investigation, and an Investigator with the United States Attorney’s Office. Assistant United States Attorneys Jonathan Jones and Randy Ramseyer, and Nicole Terry, a Special Assistant United States Attorney and an Assistant Attorney General assigned to the Virginia Attorney General’s Medicaid Fraud Control Unit, prosecuted the case for the United States.
Beltsville Man Convicted After Federal Jury Trial of Involuntary Manslaughter, Reckless Driving, and Related Charges in Connection with a Fatal Crash on the Baltimore-Washington ParkwayRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Christopher Andrew Smith, age 30, of Beltsville, Maryland, after a two-day trial of involuntary manslaughter, reckless driving, driving without a license, and failure to place a child in a safety seat, in connection with a fatal car crash on the Baltimore-Washington Parkway on February 5, 2018, in which a three-year-old child was killed.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Chief Gregory T. Monahan of the U.S. Park Police.
According to the evidence presented at trial, on February 5, 2018, Christopher Smith drove a 2011 Nissan Altima on the Baltimore-Washington Parkway. Smith was accompanied by an adult male and that man’s three-year-old daughter. An eyewitness reported that Smith was driving at a high rate of speed when he attempted to pass the witness’s vehicle on the right shoulder, near the exit for Route 198. Smith lost control of the vehicle on the shoulder then swerved into the left lane of the Parkway before crashing into a tree in the wooded median. Smith and the male passenger were found partially ejected from the vehicle suffering from critical injuries. The two adults were evacuated to hospitals by helicopter for treatment. The three-year-old girl, who was not secured with a car seat or seatbelt, was ejected from the vehicle and was located in the woods a few feet away. She was pronounced dead at the scene.
Smith faces a maximum sentence of eight years in federal prison for involuntary manslaughter; and a maximum of six months in federal prison each for reckless driving, driving without a license, and failure to place a child in a safety seat. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Paul W. Grimm has not set a date for Smith’s sentencing.
United States Attorney Robert K. Hur commended the U.S. Park Police for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Hollis Raphael Weisman and Dwight Draughon, who are prosecuting the case.
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Bank Robber Pleads Guilty Mid-TrialRead the Press Release
Memphis, TN – After demanding and starting a federal jury trial, Arnold Eden, 52, has pleaded guilty to bank robbery before the completion of proof in the case. U.S. Attorney D. Michael Dunavant announced the guilty plea today.
According to information presented in court, on July 3, 2017, at approximately 1:17 p.m., the Hope Federal Credit Union located at 2923 Ridgeway Road, was robbed by threatened force and coercion. Hope Credit Union is federally insured by the National Credit Union Administration. A male entered the credit union, approached the teller, and provided a note demanding money. The teller recalled the note stating, "I have a gun. I have nothing to lose. I want two stacks of hundreds." The teller complied and provided $2,602 in cash. The suspect then fled the scene.
The robber was described on video surveillance wearing a black "Kangol" hat; a white t-shirt turned inside out, black shorts, and tennis shoes. The robber was described as being 6’2", weighing 160-170lbs, 55-60 years of age, with a gray beard.
While exiting the credit union, video depicts the robber touching the interior glass door. Officers with the Memphis Police Department lifted latent fingerprints which were identified as belonging to the defendant.
Sentencing is scheduled for May 8, 2020, before U.S. District Court Judge Mark S. Norris, where Eden faces up to 20 years in federal prison followed by 3 years supervised release.
United States Attorney D. Michael Dunavant said: "Bank robbery is a violent crime that threatens the very fabric of our financial institutions that provide commercial services to citizens and the community. These disturbing and brazen acts of violence will not be tolerated, and will be met with firm resolve, quick investigative action, and aggressive federal prosecution. By collaborating with our federal, state and local partners, we will use every available resource to ensure the safety of our citizens and security of our banking institutions."
This case was investigated by the Memphis Police Department and the FBI’s Safe Streets Task Force.
Assistant U.S. Attorney Marques Young and Special Assistant U.S. Attorney Samuel D. Winnig are prosecuting this case on behalf of the government. Winnig is currently assigned from the Shelby County District Attorney General‘s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Attorney General William P. Barr Appoints Timothy Shea Interim U.S. Attorney for the District of ColumbiaRead the Press Release
Attorney General William P. Barr announced today the appointment of Timothy Shea as Interim U.S. Attorney for the District of Columbia, pursuant to 28 U.S.C. § 546, effective February 3. The Office is the largest U.S. Attorney’s Office in the country, serving as both the local and the federal prosecutor for the nation’s capital, with over 300 attorneys responsible for litigation before over 100 judges in federal and local courts.
“I am pleased to appoint Tim Shea as Interim U.S. Attorney for the District of Columbia. Tim brings to this role extensive knowledge and expertise in law enforcement matters as well as an unwavering dedication to public service, reflected in his long and distinguished career in state and federal government,” said Attorney General William P. Barr. “His reputation as a fair prosecutor, skillful litigator, and excellent manager is second-to-none, and his commitment to fighting violent crime and the drug epidemic will greatly benefit the city of Washington. I would also like to express my gratitude to Jessie Liu, who has served with distinction as U.S. Attorney for the District of Columbia since 2017, and has been nominated to a new role at the Department of the Treasury.”
Shea served as Associate Deputy Attorney General from 1990-1992 and as Counselor to the Attorney General since 2019. In both roles, he advised the Attorney General on law enforcement operations, criminal justice policy, and management issues affecting the Department. He recently spearheaded the Department’s Operation Relentless Pursuit, a crackdown targeting violent crime in seven U.S. cities.
From 1992-1997, Shea served as an Assistant U.S. Attorney in the Eastern District of Virginia where he prosecuted federal criminal cases, including violent crimes, drug trafficking, fraud cases, perjury and obstruction of justice investigations, federal tax fraud and evasion cases, civil rights matters, and public corruption cases. He headed the Task Force responsible for investigating and prosecuting crimes at the District of Columbia correctional facilities at Lorton, supervising AUSAs and D.C. government attorneys. He was also the coordinator for matters related to the Criminal Enforcement Child Support.
In state government, Shea served as the Chief of Public Protection Bureau in the Massachusetts Attorney General’s office where he managed several divisions staffed by attorneys and investigators. In that position, he was responsible for the enforcement of state law related to consumer protection, civil rights, antitrust, regulated industries, insurance rate setting, telecommunications, energy, environment, public charities, and elder protection. Shea also served in Congressional roles, including as Chief Counsel and Staff Director of the U.S. Senate Permanent Subcommittee on Investigations under the chairmanship of Senator Susan Collins and on the U.S. House Appropriations Committee professional staff under Ranking Republican Member Silvio O. Conte. During his 20 years of private practice, Shea served as Of Counsel for Bingham McCutchen and Morgan Lewis, handling complex civil litigation.
Shea earned his J.D. degree magna cum laude in 1991 from the Georgetown University Law Center where he was elected to the Order of the Coif. He was also a senior staff member of the America Criminal Law Review. He received his B.A. degree magna cum laude from Boston College in 1982 where he received the Kenealy Award for Academic Excellence.
Albany Man Sentenced to Probation for Conspiracy to Commit Bank FraudRead the Press Release
ALBANY, NEW YORK – Peter D. Amato, age 66, of Albany, was sentenced today to 1 year of probation and to pay a $15,000 fine for conspiracy to commit bank fraud.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Amato admitted that from July 2015 through January 2017, he and a co-conspirator submitted inflated project budgets to M&T Bank as part of loan applications for apartment construction projects in the Towns of Brunswick and Stillwater, New York. They then used the additional funds that the bank loaned to them for purposes not authorized by the loan agreements. Amato further admitted that, as part of the scheme, he and his co-conspirator submitted false subcontractor agreements to M&T Bank that substantially overstated the amount of money for which subcontractors had agreed to do work on the projects, but that were consistent with the inflated project budgets Amato and his co-conspirator had provided to the bank.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Richard D. Belliss.
11 Bronx Gang Members Charged in Manhattan Federal Court with Racketeering, Firearms, and Narcotics OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Dermot F. Shea, Commissioner of the New York City Police Department (“NYPD”), Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of an Indictment charging NYSHIEM SPENCER, a/k/a “Willy,” LAFONE ELEY, a/k/a “Fon Fon,” STEFVON ELEY, a/k/a “Balla,” SHALIK JENKINS, a/k/a “Sha Money,” a/k/a “Double O,” MALIK TUNSTALL, a/k/a “Leaky,” PRICE TUNSTALL, a/k/a “P-Black,” NASIR VINCENT, ALLAN GONZALEZ, a/k/a “Bobby,” JONELL DANFORTH, a/k/a “JD,” ELIJAH BURT, a/k/a “Dizzy,” and ASHANAE MCLAUGHLIN with participating in a racketeering conspiracy as members and associates of the Monroe Houses Crew, which operates principally in the James Monroe Houses in the Soundview neighborhood of the Bronx.
As part of the racketeering conspiracy, SPENCER is charged with the October 31, 2017, murder of Luis Vargas. LAFONE ELEY is charged with shooting at a rival gang member on June 25, 2017. STEFVON ELEY is charged with shooting a disfavored member of the Monroe Houses Crew on June 30, 2017, and with shooting at rival gang members on May 30, 2018. VINCENT, DANFORTH, and BURT are charged with slashing a rival gang member on September 14, 2019. SPENCER, JENKINS, MALIK TUNSTALL, PRICE TUNSTALL, VINCENT, GONZALEZ, and DANFORTH are charged with participating in a narcotics conspiracy. MCLAUGHLIN is charged with bank fraud conspiracy and aggravated identify theft. Seven defendants were arrested today and will be presented this afternoon before United States Magistrate Judge James L. Cott. Three defendants are in state custody on other charges and will be transferred to federal custody at a later date. The case has been assigned to United States District Judge Analisa Torres.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, the defendants in this case were members of a violent crew operating in the James Monroe Houses in the Bronx. The violence perpetrated by Monroe Houses Crew members is exemplified by the murder, slashing, and three shootings alleged in today’s indictment. Thanks to the efforts of our partners at the NYPD, HSI, and DOI, the defendants now face federal charges for their crimes.”
NYPD Commissioner Dermot F. Shea said: “Violence in the streets of New York City will not be tolerated. The stellar investigative efforts of our NYPD detectives, working together with our law enforcement partners and federal prosecutors, has shut down a violent crew to maintain safety for all.”
HSI Special Agent-in Charge Peter C. Fitzhugh said: “As alleged in the indictment, the Monroe Houses crew was responsible for multiple acts of violence and other forms of mayhem. The defendants are charged with participating in shootings, a slashing, narcotics distribution, and bank fraud. HSI is allied with our law enforcement partners to hold crew members accountable for the havoc they wreak on our communities, and together we will ensure there are consequences for their actions.”
DOI Commissioner Margaret Garnett said: “DOI is committed to ensuring that New York City public housing remains free from violent gang activity that invades our communities and erodes the safety of residents. We are proud to have partnered with the U.S. Attorney for the Southern District of New York, New York City Police Department, and the New York Field Office of Homeland Security Investigations to secure today’s indictment and protect the residents of the James Monroe Houses.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:
NYSHIEM SPENCER, a/k/a “Willy,” LAFONE ELEY, a/k/a “Fon Fon,” STEFVON ELEY, a/k/a “Balla,” SHALIK JENKINS, a/k/a “Sha Money,” a/k/a “Double O,” MALIK TUNSTALL, a/k/a “Leaky,” PRICE TUNSTALL, a/k/a “P-Black,” NASIR VINCENT, ALLAN GONZALEZ, a/k/a “Bobby,” JONELL DANFORTH, a/k/a “JD,” ELIJAH BURT, a/k/a “Dizzy,” and ASHANAE MCLAUGHLIN,” are members and associates of the Monroe Houses Crew, a racketeering enterprise that operates principally in the James Monroe Houses. In order to enrich the enterprise, preserve and protect the power of the enterprise, and enhance its criminal operations, Monroe Houses Crew members and associates committed, conspired, attempted, and threatened to commit acts of violence, including murder; distributed and possessed with intent to distribute narcotics; committed robberies; engaged in fraud; and obtained, possessed, and used firearms.
On or about October 31, 2017, SPENCER and others planned and helped carry out a shooting that resulted in the death of Luis Vargas in the vicinity of 1715 Randall Avenue in the Bronx, New York.
On or about June 25, 2017, LAFONE ELEY and others shot at a rival gang member in the vicinity of the James Monroe Houses in the Bronx, New York.
On or about June 30, 2017, STEFVON ELEY shot and injured a member of the Monroe Houses Crew who had fallen out of favor with other members of the Monroe Houses Crew, in the vicinity of the James Monroe Houses in the Bronx, New York.
On or about May 30, 2018, STEFVON ELEY shot at rival gang members in the vicinity of Rosedale Avenue and Randall Avenue in the Bronx, New York.
On or about September 14, 2019, VINCENT, DANFORTH, BURT, and others slashed a rival gang member in the vicinity of 670 Castle Hill Avenue in the Bronx, New York.
* * *
A chart containing the names, charges, and maximum and minimum penalties for the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD, HSI, and DOI.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan and Justin V. Rodriguez are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTY
Count One
Racketeering conspiracy
18 U.S.C. § 1962(d)
NYSHEIM SPENCER
Life imprisonment
LAFONE ELEY
STEFVON ELEY
SHALIK JENKINS
MALIK TUNSTALL
PRICE TUNSTALL
NASIR VINCENT
ALLAN GONZALEZ JONELL DANFORTH ELIJAH BURT
ASHANAE MCLAUGHLIN20 years’ imprisonment
Count Two
Violent crime in aid of racketeering
18 U.S.C. §§ 1959 and 2
LAFONE ELEY
20 years’ imprisonment
Count Three
Firearms offense
18 U.S.C. §§ 924(c) and 2
LAFONE ELEY
Life imprisonment
Mandatory minimum of ten years’ imprisonment
Court Four
Violent crime in aid of racketeering
18 U.S.C. §§ 1959 and 2
STEFVON ELEY
20 years’ imprisonment
Count Five
Firearms offense
18 U.S.C. §§ 924(c) and 2
STEFVON ELEY
Life imprisonment
Mandatory minimum of ten years’ imprisonment
Count Six
Violent crime in aid of racketeering
18 U.S.C. §§ 1959 and 2
STEFVON ELEY
20 years’ imprisonment
Count Seven
Firearms offense
18 U.S.C. §§ 924(c) and 2
STEFVON ELEY
Life imprisonment
Mandatory minimum of ten years’ imprisonment
Count Eight
Violent crime in aid of racketeering
18 U.S.C. §§ 1959 and 2
NASIR VINCENT
JONELL DANFORTH ELIJAH BURT20 years’ imprisonment
Count Nine
Narcotics conspiracy
21 U.S.C. § 846
NYSHEIM SPENCER
SHALIK JENKINS
MALIK TUNSTALL
PRICE TUNSTALL
NASIR VINCENT
ALLAN GONZALEZ JONELL DANFORTHLife imprisonment
Mandatory minimum of ten years’ imprisonment
Count Ten
Bank fraud conspiracy
18 U.S.C. § 1349
ASHANAE MCLAUGHLIN
30 years’ imprisonment
Count Eleven
Aggravated identity theft
18 U.S.C. § 1028A and 2
ASHANAE MCLAUGHLIN
Mandatory two years’ imprisonment
As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Wednesday 29 January 2020
Wausau Man Indicted for Illegal Firearm Possession and Drug Trafficking OffenseRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on January 28, 2020, a federal grand jury returned a three-count indictment against Matthew J. Hornung (age: 36), formerly of Wausau . The indictment charges Hornung as follows:
COUNT
CHARGE
PENALTY
One
Possession with Intent to Distribute Methamphetamine, 21 USC § 841(a)(1)
Mandatory minimum 5 years in prison, up to 40 years in prison.
Two
Possession of a Firearm in Furtherance of a Drug Trafficking Crime, 18 USC § 924(c)
Mandatory minimum 5 consecutive years in prison, up to life in prison.
Three
Felon in Possession of a Firearm, 18 USC §§ 922(g)(1) and 924(a)(2)
Up to 10 years in prison.
If convicted, Hornung faces the imposition of fines and a term of supervised release in addition to the imprisonment listed above.
According to the indictment, on or about October 16, 2019, Hornung possessed more than 5 grams of methamphetamine with the intent to distribute the substance. Hornung also possessed a 9mm semiautomatic handgun in furtherance of drug trafficking, despite knowing he could not legally possess firearms.
This case is being prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
This case 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://go.usa.gov/xpBrs
The Central Wisconsin Narcotics Task Force and Federal Bureau of Investigation investigated the case, with assistance from the Drug Enforcement Administration and Shawano County Sheriff’s Office. Assistant United States Attorney Andrew J. Maier will prosecute the case.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Upshur County woman admits to drug and counterfeit chargesRead the Press Release
ELKINS, WEST VIRGINIA –Johnna Dee Courtney, of Buckhannon, West Virginia, has admitted to methamphetamine and counterfeit charges, U.S. Attorney Bill Powell announced.
Courtney, age 39, pled guilty to one count of “Possession with Intent to Distribute 50 grams or more of Methamphetamine” and one count of “Possession of Counterfeit Obligations.” Courtney admitted to distributing more than fifty grams of “crystal” methamphetamine, also known as “ice,” in May 2019 in Upshur County. She also admitted to having 95 counterfeit $100 bills in her possession.
Courtney faces at least five years and up to 40 years incarceration and a fine of up to $5,000,000 for the drug count, and faces up to 20 years incarceration and a fine of up to $250,000 for the counterfeit 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 Brandon S. Flower is prosecuting the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force and the United States Secret Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
U.S. Attorney’s Office Settles Claims Against Brookline Landlord for Violating Rights of Active Duty Military OfficerRead the Press Release
BOSTON – A Brookline landlord has entered into a settlement with the U.S. Attorney’s Office to resolve allegations that she refused to fully refund a servicemember who had to terminate his lease because he was relocated by the U.S. Army.
Deborah Levenson resolved allegations that she violated the Servicemembers Civil Relief Act (SCRA) by refusing to refund overpaid rent and delaying returning the security deposit to a servicemember who received orders from the U.S. Army to relocate to another state. Under the terms of the settlement, which must be approved by the U.S. District Court in Massachusetts, Levenson must pay her former tenant $3,000 in damages, pay a civil penalty of $500 to the United States, and is prohibited from violating the SCRA in the future.
The purpose of the SCRA is to provide servicemembers with protections against certain civil proceedings that could adversely affect their legal rights while they are in military service. When servicemembers receive military orders requiring them to relocate, including orders to deploy overseas, the SCRA permits them to terminate residential leases and requires their landlords to return overpayments in rent and security deposits.
“Men and women in uniform risk their lives for our country, and Congress enacted the Servicemembers Civil Relief Act to protect their rights when they are called away to serve our nation,” said United States Attorney Andrew E. Lelling. “We will aggressively enforce the SCRA. Our military members deserve no less.”
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at https://legalassistance.law.af.mil/.
Assistant U.S. Attorney Torey B. Cummings of Lelling’s Civil Rights Unit handled the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
U.S. Attorney’s Office Reaches ADA Settlement with North Dakota State University Regarding the Sanford Health Athletic ComplexRead the Press Release
FARGO - United States Attorney Drew H. Wrigley announced today that the U.S. Attorney’s Office for the District of North Dakota completed its investigation and entered into a settlement agreement with North Dakota State University to resolve allegations that the Sanford Health Athletic Complex violated the Americans with Disabilities Act of 1990 ("ADA"). The Sanford Health Athletic Complex opened in 2016, and the facility is a multipurpose 5,685-seat arena used for basketball, wrestling, and training.
The settlement agreement resolves an ADA complaint alleging that the Sanford Health Athletic Complex was not fully accessible to individuals with disabilities. During its investigation, the U.S. Attorney’s Office found that the Sanford Health Athletic Complex did not provide sufficient wheelchair seating, seating for companions to users of wheelchairs, accessible aisle seating, and further, that the accessible seating provided was not integrated and dispersed throughout the facility. The U.S. Attorney’s Office also found that the Sanford Health Athletic Complex did not provide adequate accessible parking, and the toilet rooms, signage, concession stands, ramps, drinking fountains, and assistive listening devices did not comply with the ADA’s requirements. Under the settlement agreement, NDSU will provide adequate, integrated, and dispersed wheelchair and companion seating, provide proper accessible parking, and cure all other noted violations of the ADA.
Under federal law, discrimination on the basis of a disability in the services, programs, or activities of a public entity such as North Dakota State University is prohibited. Newly constructed buildings, like the Sanford Health Athletic Complex, are required to comply with the
ADA’s program accessibility requirements and be readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs.
"Protecting access for individuals with disabilities will continue to be a priority for the District of North Dakota," said U.S. Attorney Wrigley. "North Dakota State University cooperated throughout this investigation and I commend its commitment to take swift remedial action to address all ADA violations when these barriers to accessibility were brought to its attention," adding that "the SHAC is a marvelous venue, and this settlement will help ensure access for all to enjoy the hosted events in comfort."
This matter was handled by Assistant U.S. Attorneys Melissa H. Burkland and Tara Vavrosky Iversen of the District of North Dakota.
2020 marks the 30th Anniversary of the ADA. 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 discrimination against individuals with disabilities. Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in North Dakota is not accessible to persons with disabilities may file a complaint online at ada.gov or contact the U.S. Attorney’s Office at 701-297-7400.
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U.S. Attorney’s Office Promotes Elder Justice Initiative with Live Interactive Telephone Town HallRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania is promoting the Department of Justice’s Elder Justice Initiative throughout the Middle District, announced U.S. Attorney David J. Freed. On January 28, 2020, the Middle District partnered with the FBI and AARP to raise awareness and to educate older adults about the latest scams so they do not fall victim. Over 9,500 seniors in Pennsylvania participated in an interactive telephone town hall as part of the Department of Justice’s Elder Justice Initiative. U.S. Attorney Freed and representatives from FBI and AARP conducted the town hall.
Scammers are targeting seniors at an alarming rate. Statistics collected by the FBI’s Internet Crime Complaint Center show that victims of all ages lost over $2.7 billion dollars to fraud in 2018, with victims over the age of 60 accounting for $649,227,724 of those losses. According to the same statistics, in Pennsylvania, over 10,500 people lost more than $62 million dollars, putting Pennsylvania in the top ten states by number of victims.
The DOJ Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educating older adults on how to identify scams and avoid getting ripped off by scammers; and promoting greater coordination with law enforcement partners.
Some examples of financial frauds targeting seniors discussed during the town hall were:
- Social Security impostor schemes: defraud victims by posing as Social Security Administration agent and claiming that there is an issue with the victims’ account;
- IRS impostor schemes: defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- Lottery phone scams: callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- Romance scams: lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- Grandparent scams: convince seniors that their grandchildren have been arrested and need bail money;
- Tech support scams: scammers offer assistance with viruses or malware they claim were detected on the victim’s computer; and
- Grant scams: scammers congratulate you on your eligibility to receive a free grant to pay for education costs, home repairs, unpaid bills, etc., then ask for your checking account information so they can deposit your grant directly into your account or cover a one-time processing fee.
Below are some tips shared with participants during the town hall on how to avoid falling victim to a financial scam:
- Don’t share personal information with anyone you don’t know.
- Don’t pay a fee for a prize or lottery winning.
- Don’t click on pop-up ads or messages.
- Don’t send gift cards, checks, money orders, wire money, or give your bank account information to a stranger.
- Don’t fall for a high-pressure sales pitch or a lucrative business deal.
- Delete phishing emails and ignore harassing phone calls.
- If a scammer approaches you, take the time to talk to a friend or family member.
- Keep in mind that if you send money once, you’ll be a target for life.
- Remember, it’s not rude to say, “NO.”
- A good rule of thumb is, if it sounds too good to be true, it’s likely a scam.
Attacking exploitation and fighting fraud are two priorities of the Middle District, and the U.S. Attorney’s office is committed to aggressively pursuing individuals who engage in such acts. Some recent prosecutions include:
The Middle District of Pennsylvania charged Omoefe Okoro, a citizen of Canada, and others for allegedly engaging in an attorney “collection scam” in Ontario, Canada, and the United States. In particular, Okoro and his co-conspirators are alleged to have conducted a scheme in which they contacted businesses and individuals, including elderly victims, and requested, among other things, to collect an outstanding debt. The suspects, posing as the third party, then sent a counterfeit check to the victim for deposit and requested that the victim wire funds to an account overseas, typically in Japan, South Korea, or China. Canada surrendered Okoro to the United States and he is currently scheduled for trial on March 2, 2020.
The Middle District also prosecuted Jenmariey Burchell, a 26-year-old Jamaican citizen for her part in a scheme to defraud senior citizens that were falsely told they had won multi-million dollar international sweepstakes prizes. The purported winners were directed to send Western Union and MoneyGram money transfers, money orders and checks to persons known as “money mules,” ostensibly to pre-pay taxes and other fictitious expenses, in order to collect the non-existent cash prizes. Burchell enlisted the “money mules” to receive and transfer the fraud proceeds to him and other conspirators in Jamaica. Burchell ultimately received a sentence of 51 months’ imprisonment on November 12, 2019.
The Department of Justice announced first-of-its-kind steps yesterday, to stop hundreds of millions of predatory robocalls every month from entering the United States to perpetrate costly imposter scams against Americans, including many older victims. The civil actions are aimed at shutting down firms in Long Island, New York, and Scottsdale, Arizona, that provide internet services and act as “gateway carriers” for calls from overseas, mostly from India. The actions come after Americans in 2019 endured a record-shattering 58.5 billion robocalls, of which 25.9 billion were scams.
Elder abuse includes physical abuse, caregiver neglect, financial exploitation, psychological abuse, sexual abuse, and abandonment. For help, you can contact the Victim Connect Hotline between 9am-6pm, Monday through Friday, at: 1-855-4VICTIM (1-855-484-2846) or contact the FBI Internet Complaint Center at www.ic3.gov or 1-800-Call FBI. Elder fraud complaints may be filed with the FTC at www.ftc.gov or at 877-FTC-HELP. You may also contact the AARP Fraud Watch Network free helpline at 1-877-908-3360 to report a scam.
For more information about the Elder Justice Initiative, please visit: https://www.justice.gov/elderjustice. To get tips to avoid scams and fraud text FWN to 50757 to receive biweekly alerts from the AARP Fraud Watch Network.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
# # #
U.S. Attorney Trutanich's Statement on the Expiration of Fentanyl SchedulingRead the Press Release
U.S. Attorney Nicholas A. Trutanich issued the following statement:
"Fentanyl is a powerful synthetic opioid that is 40 to 60 times more potent than heroin. A small amount can cause a fatal overdose. The scheduling of fentanyl (and fentanyl-related substances) has assisted U.S. Attorney’s Offices nationwide with prosecuting drug traffickers who poison our streets and neighborhoods. Traffickers line their pockets at the expense of our mothers, fathers, sisters, brothers, friends, and neighbors. In Nevada, for example, a drug trafficker was brought to justice after she sold a prescription pill laced with fentanyl to an individual who died from an overdose.
"The U.S. Attorney’s Office for the District of Nevada will continue to work closely with our law enforcement partners to stem the opioid crisis. Law enforcement needs all the resources and tools available to combat this deadly drug epidemic. But without appropriate legislation before the DEA’s temporary scheduling of fentanyl analogues expires on February 6, 2020, prosecutors and law enforcement would lack a critical legal tool to attack the opioid crisis. The proposed Stopping Overdoses of Fentanyl Analogues legislation can help save thousands of American lives."
U.S. Attorney Scott Brady Statement on Expiration of Fentanyl Analogue Emergency SchedulingRead the Press Release
Every year thousands of Americans overdose on fentanyl, a laboratory-created opioid that is 50 times stronger than heroin. Fentanyl is often smuggled into the United States from China and Mexico, and because fentanyl is made in a lab, chemists can change its structure to create what are known as “fentanyl analogues.” These analogues, which can be thousands of times more potent than heroin, benefit drug traffickers looking to profit from addicts always in search of a stronger product.
Before 2018, fentanyl analogues could only be prosecuted under the Controlled Substances Analogue Enforcement Act, which was a cumbersome process that typically required extensive expert testimony and analysis to prove that the chemical structure of the analogue was “substantially similar” to a controlled substance. This provided an advantage to drug traffickers: each new formula—even ones with a single molecular change— required substantial extra resources to prove it was illegal.
In 2018, in an effort to remove this hurdle, the Drug Enforcement Administration (DEA) temporarily classified all fentanyl analogues as Schedule I drugs. The emergency scheduling – limited to a two-year period -- also made the fentanyl analogues subject to stiff statutory mandatory minimum sentences. This classification provided U.S. Attorneys and law enforcement with the ability to keep pace with the drug traffickers flooding our communities with deadly analogues.
But without Congressional action, the DEA’s temporary classification will expire on February 6, 2020. Two weeks ago, the United States Senate unanimously passed a 15-month extension of the classification. Later this week, the House of Representatives will consider legislation extending the temporary order as well. The House should vote to enact this critical legislation.
If the House fails to enact the law, the whack-a-mole game will resume. Drug traffickers will develop fresh formulas of deadly drugs, and by the time a new formula is identified and criminalized, the traffickers will move on to the next one. The cartels will profit, and our communities will suffer.
Two recent cases in the Western District of Pennsylvania illustrate the danger of the analogues. In August 2017, Pittsburgh Police and SWAT officers searched a Pittsburgh residence they suspected of being a stash house for fentanyl and other drugs. During the search, a table with powdered drugs, including a fentanyl analogue called cyclopropyl, was accidentally overturned, sending large amounts of drugs into the air. From just that exposure, several police officers were taken to UPMC Mercy Hospital as a precautionary measure. Fortunately, no one suffered serious injuries from that incident.
But not all encounters with fentanyl analogues in the District have been so fortunate. For example, in September 2019, eight people at a party on the South Side of Pittsburgh overdosed on drugs that contained cocaine and acetyl fentanyl, another analogue. Three people died before emergency responders arrived, and several others were hospitalized due to exposure to the drugs.
In both of these cases, the ban of analogues helped to protect our community by providing a legal basis to prosecute these drug traffickers. Without the ban, holding individuals and organizations that distribute fentanyl analogues accountable would be difficult, if not impossible. The cartels know this, and if the temporary scheduling lapses, we can expect a flood of new, legal formulas of fentanyl.
Of course, not everyone in the community supports the legislation to extend the temporary ban. Some advocacy groups see the ban as falling short of addressing the underlying causes of substance abuse in the first place. To these groups, extending the temporary ban is simply not enough to address the crisis.
There’s no doubt that a coordinated, cross-community effort is needed to combat the opioid crisis. Although criminalizing fentanyl analogues is only one component in this fight, it is an important one. And, if the House fails to act now in the hopes of reaching a comprehensive solution to the crisis, it will be effectively legalizing new fentanyl analogues. Such a move will only serve to harm our communities, which deserve protection today. For that reason, members of the House of Representatives should join their Senate colleagues in unanimously passing this legislation.
U.S. Attorney Ron Parsons Statement on Pending Expiration of Emergency Prohibition of Fentanyl AnaloguesRead the Press Release
“There is no legitimate reason for anyone to possess or distribute fentanyl analogues. They are weapons of mass destruction, capable of killing a human being almost immediately upon ingestion or contact in extremely minute amounts.”
The opioid crisis has impacted almost every community in South Dakota. In an effort to combat this deadly drug epidemic, the Drug Enforcement Administration used its statutory authority in February 2018 to issue a temporary emergency two-year order that made all fentanyl-related substances illegal. Working hand-in-hand with federal, state, local, and tribal law enforcement here in South Dakota, this office has vigorously prosecuted anyone caught trafficking in fentanyl or fentanyl-related substances. Nationally, as well as locally, we have seen a substantial supply impact from DEA’s temporary scheduling of fentanyl-related substances during the past two years, with a 50 percent decrease in fentanyl-related substances encountered across the United States.
However, the DEA’s emergency prohibition of fentanyl analogues expires at midnight on February 6, 2020, unless Congress acts to extend it. This is a looming catastrophe. Fentanyl and its analogues are responsible for dozens of overdoses and multiple deaths in South Dakota. Without action by Congress, law enforcement will not have all of the tools needed to protect South Dakotans from the onslaught of these extraordinarily dangerous substances.
Fentanyl and its chemical analogues are illegally distributed in the United States through two primary methods. Many are designed and manufactured in China, ordered over the Dark Web by drug dealers, and then shipped to them using the U.S. mail and private delivery companies. Increasingly, however, the Mexican cartels responsible for making most of the methamphetamine and heroin smuggled across our southern border and sold in the U.S. have begun making fentanyl and related substances themselves and selling them through their distribution networks.
There is no legitimate reason for anyone to possess or distribute fentanyl analogues. They are weapons of mass destruction, capable of killing almost immediately upon ingestion or contact in extremely minute amounts.
On behalf of the United States Department of Justice, I am urging Congress to give us the tools we need to continue our efforts against the distribution of fentanyl analogues here in South Dakota. This fight is far from over. We need every tool we have to target these fatally dangerous drugs. Congress must take action immediately to extend the scheduling of these dangerous substances.
U.S. Attorney Peter E. Deegan, Jr., Statement on Pending Expiration of Emergency Regulation of Fentanyl AnaloguesRead the Press Release
“In their continual display of greed without remorse, drug cartels have exploited the American opioid crisis for profit. In the past five years, cartels have expanded from producing heroin to even more potent substances like fentanyl. And then to fentanyl-like substances. Fentanyl is 30 to 50 times more potent than heroin. These fentanyl-like substances are often even more potent than fentanyl and are usually cheaper or easier to manufacture than fentanyl and heroin.
“A significant tool in the fight against cartel greed and violence is set to expire February 6, 2020, unless Congress acts soon. This tool is a federal regulation that made all fentanyl-related substances controlled substances. The fatal consequences of these regulated substances and cartel greed are not only felt in border-states or major cities. These substances have been involved in dozens of overdose deaths in Iowa since 2015. The existence of a clear, direct regulation of fentanyl-related substances has no doubt slowed their production and proliferation. Allowing the regulation to expire risks emboldening cartels to expand production of these substances.
“My office has been aggressive in prosecuting cases involving fentanyl-related substances. We have prosecuted over a dozen such cases since 2016 and many more involving heroin and fentanyl. Several of those cases have involved overdose deaths from people using mere crumbs of these deadly substances. We firmly believe that recovery is possible for those struggling with opioid addiction. Sadly, these fentanyl-related substances have cut short the opportunity for recovery for too many Iowans.
“Law enforcement needs effective tools to combat this evolving and deadly challenge. The soon-expiring regulation removes critical roadblocks to prosecuting those who distribute these fentanyl‑related substances. Now is not the time to give profit-seeking cartels additional incentive to produce even more addictive and deadly drugs to sell to Americans. Congress must take action immediately to extend the ban on these deadly drugs. I strongly urge Congress to do so before a new wave of more addictive and even deadlier drugs hits the American streets.”
U.S. Attorney Kurt G. Alme Statement on Pending Expiration of Emergency Prohibition of Fentanyl AnaloguesRead the Press Release
“The emergency prohibition of fentanyl analogues expires on Feb. 6 without congressional action. Fentanyl and its analogues are responsible for at least 31 overdose deaths since 2015 in Montana. Unless Congress acts, law enforcement will not have the tools it needs to protect Montana families from the onslaught of these extraordinarily dangerous substances.
“We are seeing a transition in the source of fentanyl finding its way into Montana communities. Instead of fentanyl from China in relatively small amounts, law enforcement officials are now intercepting loads of Mexican cartel-produced fentanyl. The cartels are using their established and prolific distribution networks to deliver fentanyl – a substance that is exponentially more dangerous than heroin. We continue to be very aggressive in prosecuting these cases.
“Although fentanyl prosecutions are still a very small part of the illicit drug problem in Montana, its potency makes it a significant threat. Fentanyl is 80 to 100 times stronger than morphine, and some of its analogues are stronger yet. According to the Drug Enforcement Administration, drug dealers often add fentanyl to heroin and methamphetamine to increase the potency of those illicit drugs, which can be deadly. In 2017, two Bozeman residents died and five more overdosed after they consumed counterfeit OxyContin tablets that contained a powerful fentanyl analogue, carfentanil. These substances are a threat to Montanans and must be regulated by Congress.
“I am urging Congress to give us the tools we need to continue our efforts against the distribution of fentanyl and its analogues here in Montana. We need every tool we have to target this growing threat. Congress must take action immediately to extend the scheduling of these dangerous substances.”
Background: In an effort to combat this deadly drug epidemic, DEA issued a temporary emergency two-year order in February 2018 that made all fentanyl-related substances illegal. Our country has seen a marked supply impact from DEA’s temporary scheduling of fentanyl-related substances during the past two years, with a 50 percent decrease in fentanyl-related substances encountered across the United States. However, DEA’s emergency authority expires at midnight on Feb. 6, 2020, unless Congress acts to extend it.
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U.S. Attorney Jay E. Town Statement on Closing of Holman FacilityRead the Press Release
“The Department of Justice learned this morning that the Holman facility was to be closed and that the majority of the prisoners housed in that prison would be transferred to other facilities. I am disappointed that we were not privy to the decision to close Holman at the time such a decision was being considered. We will continue to forge ahead in our good faith negotiations.”
U.S. Attorney Appoints New Senior Leadership TeamRead the Press Release
WHEELING, WEST VIRGINIA – U.S. Attorney Bill Powell has announced some changes to his Senior Leadership Team. While some senior staff will continue to support Mr. Powell in their roles, some personnel changes have taken place in the management of the Wheeling, Martinsburg, Clarksburg, and Elkins offices.
The Senior Leadership Team are First Assistant U.S. Attorney Randolph J. Bernard, Administrative Officer Fawn E. Thomas, Civil Division Chief Sharon L. Potter, Criminal Division Chief Stephen L. Vogrin, Clarksburg Branch Office Supervisor Andrew R. Cogar, and Martinsburg Branch Office Supervisor Erin Reisenweber.
“I am excited about our new leadership team. Though all organizations lose experience when key personnel retire, the newly appointed members of the management team have all spent months preparing themselves for the jobs they have now assumed. I know that our district is in very capable hands, and I am proud to work with each and every one of them,” said Powell.
Sharon L. Potter has returned to the Northern District of West Virginia office as the Civil Division Chief. Ms. Potter is a former U.S. Attorney and Assistant U.S. Attorney for the district, handling financial fraud/tax investigations, health care fraud and violent and drug crimes. Previously, she was a partner at Spilman, Thomas, & Battle, PLLC.
Newly appointed Criminal Division Chief Stephen L. Vogrin has served as an Assistant U.S. Attorney for the past eight years in the district. In the past year and half, he served as the Criminal Division Supervisor for the Wheeling office. Mr. Vogrin has decades of prosecutorial experience, serving as a former Assistant Prosecuting Attorney in Ohio County prior to his time in the U.S. Attorney’s Office.
Assistant U.S. Attorney Andrew R. Cogar has been appointed as the new Branch Office Supervisor for the Clarksburg office. Since joining the U.S. Attorney’s Office in 2007, Mr. Cogar has prosecuted white collar crimes, drug and violent crimes, firearm offenses, and public corruption. He also co-founded and co-chairs the West Virginia Human Trafficking Task Force, and recently served as Senior Litigation Counsel in the U.S. Attorney’s Office. Mr. Cogar previously served as a trial attorney in the Civil Rights Division of the Department of Justice in Washington, D.C.
Erin K. Reisenweber will serve as the Branch Office Supervisor for the Martinsburg office. Ms. Reisenweber has served as an Assistant U.S. Attorney in the district for the past 13 years. She previously served as the Deputy in Charge of the U.S. District Clerk’s Office in Martinsburg, as well as a law clerk for the Hon. W. Craig Broadwater in the U.S. District Court for the Northern District of West Virginia.
Assistant United States Attorney Randolph J. Bernard will continue in his role as First Assistant United States Attorney. Mr. Bernard previously served as the Chief of the Criminal Division. Mr. Bernard joined the office in 2002. Mr. Bernard has also served as the District Office Security Manager. Before becoming an Assistant United States Attorney, Mr. Bernard served as a Special Agent with the Federal Bureau of Investigation in the Wheeling, West Virginia Resident Agency. Prior to the FBI, he was a litigator with Coolidge, Wall, Womsley & Lombard in Dayton, Ohio.
Fawn E. Thomas will continue in her role as Administrative Officer, serving as the Chief of the Administrative Division and as the primary advisor to the United States Attorney for planning and managing all office resources. Ms. Thomas has been with the office since 1983. Prior to her appointment as Administrative Officer, she served as the Public Affairs Specialist and the Human Resource Specialist. Ms. Thomas was previously an EEO Investigator for the Executive Office for United States Attorneys and an Evaluation and Review Staff Evaluator. Ms. Thomas also served on the Administrative Officers’ Working Group.
Two sentenced for roles in oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two people were sentenced today for their roles in a drug distribution operation, U.S. Attorney Bill Powell announced.
Michael Wesley, also known as “Black” and “Big Flea,” was sentenced today to 151 months incarceration. Wesley, age 48, pled guilty to one count of “Distribution of Oxycodone” in October 2019. Wesley admitted to selling oxycodone in January 2017 in Monongalia County.
Tiffany Edwards, of Westover, West Virginia, was sentenced to 12 months and one day incarceration. Edwards, age 38, pled guilty to one count of “Money Laundering Conspiracy” in October 2019. Edwards admitted to handling financial transactions that involved money made from the distribution of oxycodone from the summer of 2013 to June 2017 in Monongalia County and elsewhere.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration. the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Irene M. Keeley presided.
Two Mexican Drug Traffickers Charged with the Murder of A Mexican Soldier and Conspiring to Import Cocaine into the United StatesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Raymond P. Donovan, Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), announced that GERMAN GOMEZ-CASTRUITA and BENJAMIN CONTRERAS-RANGEL were charged in a criminal complaint in Manhattan federal court with conspiring to import cocaine into the United States, murdering a Mexican military officer in the course of the cocaine importation conspiracy, and related weapons offenses involving the use and possession of machineguns.
Manhattan U.S. Attorney Geoffrey S. Berman said: “German Gomez-Castruita and Benjamin Contreras-Rangel were allegedly part of a brazen attempt to land a plane full of cocaine on a remote highway in Mexico. When Mexican authorities interceded, the defendants allegedly opened fire with automatic weapons, murdering a member of the Mexican military in the process. We mourn the senseless loss of a military officer committed to justice; and I commend our law enforcement partners for their courageous efforts in bringing these two allegedly dangerous drug traffickers to face criminal charges in the U.S.”
DEA Special Agent in Charge Raymond P. Donovan said: “The murder of SEDENA Corporal Emiliano Medina-Ramirez is devastating to law enforcement worldwide and is symbolic of the risks law enforcement encounter in the line of duty. Violence follows drug trafficking to every country, city, and state. The defendants’ desperate attempts to shoot their way out of arrest failed and the fallout has led them to face the U.S. rule of law. I commend our law enforcement partners in Mexico on this significant seizure and their pursuit to dismantle drug trafficking organizations responsible for fueling countless overdose deaths. And, DEA sends our deepest condolences to Corporal Medina-Ramirez’ family and colleagues at SEDENA.”
As alleged in the Complaint unsealed in federal court[1]:
On or about January 27, 2020, DEA agents began tracking an aircraft traveling northbound from the Caribbean Coast of Venezuela. The aircraft landed on a remote highway in the Mexican State of Quintana Roo. Military Officers with Mexico’s Secretaría de la Defense Nacional (“SEDENA”) met the aircraft near its landing location. Once there, SEDENA personnel observed a large number of vehicles and individuals involved in unloading the aircraft’s cargo.
Several individuals, including GOMEZ-CASTRUITA and CONTRERAS-RANGEL, then engaged in a shootout with the SEDENA officers. In the course of the shooting, SEDENA Corporal Emiliano Medina-Ramirez was killed and three other SEDENA officers were injured. Following the shootout, GOMEZ-CASTRUITA and CONTRERAS-RANGEL and others fled into the nearby jungle. GOMEZ-CASTRUITA and CONTRERAS-RANGEL were subsequently apprehended. Law enforcement searched the vehicles near the aircraft and recovered, among other things, approximately 750 kilograms of cocaine, three assault rifles, and a large amount of ammunition.
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GOMEZ-CASTRUITA, 37, of Mexico, CONTRERAS-RANGEL, 36, of Mexico, are charged with (1) conspiring to import cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; (2) murder while engaged in a narcotics importation conspiracy, which carries a mandatory minimum sentence of 20 years and a maximum sentence of death; (3) using and carrying a firearm during and in relation to a drug trafficking crime resulting in death, which carries a maximum sentence of death; (4) using and carrying machineguns and destructive devices during, and possessing machineguns and destructive devices in furtherance of, the cocaine importation conspiracy, which carries a mandatory consecutive minimum sentence of 30 years and a maximum sentence of life in prison; and (5) conspiring to use and carry machineguns and destructive devices during, and to possess machineguns and destructive devices in furtherance of, the cocaine importation conspiracy, which carries a maximum sentence of life in prison.
Mr. Berman praised the outstanding investigative work of the DEA’s New York Field Division, DEA’s Merida Resident Office, DEA’s Bogota Country Office, and the investigative work and heroic actions of Mexico’s Secretaría de la Defense Nacional.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael K. Krouse, Stephanie Lake, Daniel G. Nessim, Benjamin W. Schrier, and Kyle A. Wirshba are in charge of the prosecution.
The charges contained in the Complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint and statements and filings in court set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the defendants charged in the Complaint.
Two Men Plead Guilty for Roles in Transnational Heroin Trafficking OperationRead the Press Release
TULSA, Okla. – Two men have pleaded guilty in January for their roles in a heroin trafficking operation with ties to Mexico’s New Generation Cartel, announced U.S. Attorney Trent Shores.
The two were among 29 individuals indicted for drug conspiracy and other crimes. U.S. Attorney Trent Shores announced the indictment at a press conference held in May 2019. The investigation was given the name Operation Smack Dragon.
“The heroin in this case was trafficked from Mexico to Oklahoma by a criminal organization with no respect for our laws or borders. They profit from American addiction. Hartzell and Adams willingly took part in the conspiracy with little regard for the communities they harmed,” said U.S. Attorney Trent Shores. “I am thankful for the collective efforts of the Drug Enforcement Administration, Homeland Security Investigations, and Assistant U.S. Attorney Joel-lyn McCormick.”
Devin Hartzell, 25, of Catoosa, pleaded guilty Jan. 15 to drug conspiracy. In his written plea, Hartzell stated that he conspired with others to possess with intent to distribute and to distribute heroin beginning in January 2018 and continuing until June 2019. During that time, he admitted to purchasing up to one kilogram of heroin multiple times a week from Jose Garcia and Edson Garcia-Velasquez. He would then redistribute the heroin to third parties who redistributed the drug to others.
Marquis Adams, 30, pleaded guilty to drug conspiracy on Jan. 29. In his written plea agreement, Adams, admitted that he conspired with others to possess with intent to distribute and to distribute heroin from January 2018 to June 2019. Adams stated that he purchased 3.5 grams of heroin roughly every day from Devin Hartzell. He then redistributed the heroin to third parties.
According to the May 2019 Indictment, the alleged transnational criminal organization’s hierarchy had clearly defined roles, as leaders from Mexico supplied heroin to the Tulsa “cell heads.” These “cell heads” were originally from Mexico but lived in Tulsa. Stille Giovanni Gutierrez Vivanco, allegedly directed, from Mexico, the overall drug trafficking operations in Tulsa by delegating responsibilities for the import and distribution of the heroin and for the movement of the proceeds from heroin sales. According to the Indictment, the criminal organization smuggled heroin into the United States and transported the drug to storage locations in Tulsa where they prepared it for distribution throughout the United States. After preparing the heroin, the coconspirators would repackage it for distribution to mid-level distributers, who would then redistribute it to street-level dealers until it eventually found its way into the hands of customers.
The Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations led the investigation in partnership with the U.S. Department of Treasury, Internal Revenue Service- Criminal Investigation; the Oklahoma State Attorney General’s Office; and Tulsa Police Department. Assistant U.S. Attorney Joel-lyn McCormick is prosecuting this case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.
You can find the May 2019 Indictment announcement here
Two Men Charged with Conspiracy to Distribute over Four Kilograms of Fentanyl PillsRead the Press Release
BOSTON – Two men were charged today in federal court in Boston in connection with selling approximately 40,000 fentanyl pills.
Jose Esmerlin Diaz, 36, of Salem, and Manuel E. Tejeda, 39, of Peabody, were charged with conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl. Both are scheduled to appear in federal court in Boston on Friday, Jan. 31, 2020.
According to charging documents, Diaz delivered an estimated 13,800 fentanyl pills (weighing approximately 1.6 kilograms) disguised as Percocet 30s to a cooperating source on Jan. 17, 2020, at a price of $6 per pill. Shortly thereafter, Tejeda and another man arrived in the vicinity of the drug transaction to deliver additional pills, and were found in possession of an estimated 27,000 fentanyl pills (weighing approximately 3.1 kilograms). A subsequent search of a storage unit used by Tejeda in Salem resulted in the discovery of approximately two kilograms of suspected fentanyl and/or heroin, $150,000 in cash and an industrial/commercial grade pill press that could be used to press powder-form opiates into pills. Keys located on Tejeda at the time of his arrest opened locks to the storage unit.
The charge of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl provides for a minimum of 10 years and up to life in prison, at least five years and up to life of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Peabody Police Chief Thomas M. Griffin; and Andover Police Chief Patrick Keefe made the announcement. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Baltimore Men Convicted After Three-Week Federal Trial for Witness Retaliation and Tampering Resulting in the Murder of a Baltimore WomanRead the Press Release
Baltimore, Maryland - A federal jury in Baltimore, today convicted Davon Carter, age 39, and Clifton Mosley, age 41, both of Baltimore, for two counts of conspiracy to murder a witness and one count each of witness retaliation murder and witness tampering murder, related to the murder of Latrina Ashburne, age 41, on May 27, 2016. Carter was also convicted of a federal narcotics conspiracy charge, two counts of using a cellular telephone to facilitate the commission of a felony, and possession with intent to distribute marijuana. Mosley was also convicted of distribution of marijuana.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Maureen Dixon of the Department of Health and Human Services Office of Inspector General; Chief Melissa R. Hyatt of the Baltimore County Police Department; Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation; and Acting Special Agent in Charge Toni Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
“Justice was done today for the senseless murder of Latrina Ashburne. We do not tolerate witness tampering, intimidation, or retaliation—period,” said U.S. Attorney Robert K. Hur. “In a tragic turn of events, Carter and Mosley’s efforts to silence a witness resulted in the death of a woman who had absolutely nothing to do with the defendants. These two defendants now face mandatory life sentences in federal prison. Let this serve as a warning to anyone who might consider making the foolish choice to murder a witness.”
“These defendants targeted a person they thought was responsible for blowing the whistle,” said FBI Special Agent in Charge Jennifer Boone. “The victim was an innocent bystander who lost her life because the defendants chose to take violent steps to protect a criminal. The FBI seeks justice for all Americans and will not stand by while people like these defendants throw morality aside to prevent witnesses from communicating with law enforcement.”
According to the evidence presented at their three-week trial, Carter and Mosley conspired to kill a witness who had provided information to law enforcement about a good friend of Carter’s, Matthew Hightower. In June 2015, Hightower was charged federally in a health care fraud scheme. While on release in the health care fraud case, the federal grand jury began investigating crimes of violence for which Hightower was implicated, including the murder of David Wutoh. In July or August 2015, Hightower learned the identity of the health care fraud whistleblower (the witness) who also had incriminating information against him relating to the Wutoh murder. Contrary to his release conditions, he began communicating with witnesses who had been in the grand jury. All the while, Carter and Mosley remained in frequent and regular contact with Hightower.
On April 19, 2016, the grand jury returned a sealed superseding indictment against Hightower charging both Hightower and Harry Crawford and with extortion and using interstate facilities for extortion resulting in the death (murder) of David Wutoh. Ten days later, the government filed a motion requesting revocation of Hightower’s release conditions based on the new charges and his prohibited contact with grand jury witnesses. The motion was granted on May 4, 2016 and Hightower was detained. Hightower was ultimately convicted of extortion resulting in Wutoh’s murder by a federal jury on September 22, 2016, after a seven-day trial and was sentenced to 380 months in federal prison.
While Hightower was detained, Carter assumed responsibility for Hightower’s marijuana distribution business, and engaged in direct communications with the source of supply. Carter also collected money and ran other errands for Hightower.
The evidence showed that on May 27, 2016, Ms. Ashburne was murdered in the early morning as she got into her car outside the home she shared with her mother in the 2900 block of Rosalind Avenue in Baltimore’s Cylburn neighborhood. The police reported that an unknown male approached and shot Ms. Ashburne in the upper body as she tried to run. She was not robbed. At the time, the police also released a video they said showed the suspect running away from the scene.
The witness lived next door to Ms. Ashburne. The witness contacted law enforcement to report the murder and that she believed she was the intended target. The investigation showed that Mosley’s phone was in the area at the time of the murder and in contact with Carter’s phone. In addition, a vehicles owned by the mother of Carter’s girlfriend and by Hightower were captured on surveillance video driving slowly through the area as if the driver were looking for someone. The evidence at trial established that Carter and Mosley each drove one of the vehicles.
Carter and Mosley each face a mandatory sentence of life in prison for each of the two conspiracy counts and for the witness retaliation and witness tampering murder charges. Carter faces a maximum penalty of ten years in prison for possession with intent to distribute marijuana, and for the narcotics conspiracy, and faces a maximum of eight years in prison for each of the two counts of using a cellular telephone to facilitate the commission of a felony. Mosley also faces a maximum of five years in prison for distribution of marijuana. U.S. District Judge George J. Hazel has scheduled sentencing for May 11, 2020 at 10 a.m. for Mosley and at 11 a.m. for Carter.
United States Attorney Robert K. Hur commended the HHS-OIG, the FBI, the Baltimore County Police Department, the Baltimore Police Department, and the ATF for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sandra Wilkinson and Kimberly Oldham, who are prosecuting the case and also thanked Assistant U.S. Attorneys Judson T. Mihok and Aaron Zelinsky, who prosecuted the Hightower case, for their assistance.
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Trump Administration Launches Presidential Task Force on Missing and Murdered American Indians and Alaska NativesRead the Press Release
The Department of Justice, the Department of the Interior and the Department of Health and Human Services today held the first meeting of a White House task force to address the incidence of missing and murdered American Indians and Alaska Natives. The task force, co-chaired by Attorney General Barr and Secretary of the Interior Bernhardt, is composed of federal officials charged with enhancing the criminal justice response, consulting with tribal governments on potential solutions, and empowering native communities with information.
“The disappearance and death of American Indian and Alaska Native people, particularly women and girls, is an especially tragic chapter in a long story of marginalization and trauma suffered by native people,” said Attorney General William P. Barr. “We are committed to addressing this challenge, to reducing the violence and protecting the vulnerable from exploitation and abuse. The task force is eager to get to work to address the issues that underlie this terrible problem, and work with our tribal partners to find solutions, raise awareness, and bring answers and justice to the grieving.”
“President Trump is committed to addressing systemic challenges in Indian Country, and this task force will develop and implement an aggressive, government-wide strategy to combat the crisis of missing and murdered American Indians and Alaska Natives,” said Secretary of the Interior David Bernhardt. “By working together and listening to impacted citizens and tribal communities, we intend to tackle these complex issues.”
“I am grateful that President Trump has made it a priority to tackle the tragic issue of missing and murdered American Indians and Alaska Natives,” said Health and Human Services Secretary Alex Azar. “Native Americans deserve safety and security in their communities, and HHS has a vital role in helping by providing culturally appropriate prevention and trauma informed services to victims and their families. I am committed to working in partnership with President Trump, Attorney General Barr, Secretary Bernhardt, and tribal leaders and members to make a positive impact on this important challenge.”
American Indians and Alaska Natives experience disproportionately high rates of violence. President Trump has called the crisis of missing and murdered Native Americans “sobering and heartbreaking.” The task force, designated Operation Lady Justice, has been empowered to review Indian Country cold cases, to strengthen law enforcement protocols, and work with tribes to improve investigations, information sharing and a more seamless response to missing persons investigations. Specifically, it will:
- Consult with tribal governments on the scope and nature of the problem; the task force will hold regional consultations and listening sessions at several locations around the country the task force will also host a listening session at the National Congress of American Indians’ Executive Council Winter Session in Washington, D.C. on Feb. 12.
- Develop model protocols and procedures for addressing both new and unsolved cases of missing and murdered persons in tribal communities;
- Establish a multi-disciplinary, multi-jurisdictional team, which will include tribal law enforcement, to review cold cases;
- Address issues related to roles, authorities and jurisdiction among tribal, local, state and federal agencies; and
- Develop and execute a public awareness, education and outreach campaign for affected communities.
The members of the task force are:
- Katharine Sullivan, Principal Deputy Assistant Attorney General, Office of Justice Programs, designee for the Attorney General;
- Tara Sweeney, Assistant Secretary for Indian Affairs, designee for the Secretary of the Interior;
- Terry Wade, Executive Assistant Director, Criminal, Cyber, Response and Services Branch, Federal Bureau of Investigation;
- Laura Rogers, Acting Director, Office on Violence Against Women;
- Charles Addington, Deputy Bureau Director, Bureau of Indian Affairs, Office of Justice Services;
- Trent Shores, U.S. Attorney for the Northern District of Oklahoma and Chair of the Native American Issues Subcommittee of the Attorney General’s Advisory Committee; and
- Jean Hovland, Deputy Assistant Secretary for Native American Affairs and Commissioner, Administration for Native Americans, Department of Health and Human Services.
In accordance with the President’s Executive Order, Attorney General Barr designated Marcia Good of the Department of Justice, to serve as Executive Director of the task force, which will present a progress report to the President by Nov. 26, 2020, and a final report detailing its activities and accomplishments by Nov. 26, 2021.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the Department of Justice at www.Justice.gov/Celebrating150Years. 2020 also marks 171st anniversary of the Department of the Interior. Learn more about the history of DOI at www.doi.gov/history/.
Truck driver sentenced to 17 years in prison for traveling to Atlanta to engage in sex acts with a childRead the Press Release
ATLANTA – Seth Weidemann has been sentenced for traveling to Atlanta to engage in sex acts with a person he believed to be an 11-year-old girl.
“Weidemann used the internet with the hope of exploiting a vulnerable child for his sexual gratification,” said U.S. Attorney Byung J. “BJay” Pak. “This case highlights a recurring problem. It is all too easy for predators to access children through various means over the internet. We encourage parents to monitor what their children are doing online and who is in contact with them.”
“The lengths predators like Weidemann are willing to go to take advantage of a young child is frightening,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “But our warning to predators is that the FBI is determined to go to greater lengths to protect our most vulnerable citizens from those who would do them harm.”
According to U.S. Attorney Pak, the charges and other information presented in court: On January 16, 2019, Seth Weidemann began communicating online with an undercover agent. Over the next month, Weidemann exchanged multiple messages with the agent in an effort to meet for sex with a person he believed to be an 11-year-old girl. At one point during the conversation, Weidemann believed he was talking directly to the 11-year-old girl. During the chats, Weidemann described the sex acts he intended to do to the child. On February 14, 2019, Weidemann traveled to the metro-Atlanta area for a planned meeting with the child. FBI agents immediately arrested him upon his arrival.
Seth Weidemann, 27, of Thorn Hill, Tennessee, was sentenced by U.S. District Judge Eleanor L. Ross to 17 years in prison to be followed by 10 years of supervised release. Weidemann had been convicted on October 16, 2019, after he pleaded guilty to one count of attempted coercion and enticement of a minor.
The FBI investigated this case.
Assistant U.S. Attorneys Jennifer Keen and Leanne Marek, and Emory Law School Extern Natalie Baber prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three Rockford-Area Residents Arrested on Drug and Conspiracy ChargesRead the Press Release
ROCKFORD — Three Rockford-area residents were arrested today by federal and local law enforcement officers on drug-trafficking charges.
ANTOWAN S. LAMBERT, also known as “Twan,” 42, of Rockton, and JESSE M. LEAVY, also known as “Lil Jesse” and “Lil Head,” 35, of Rockford, were arrested on charges of conspiracy to distribute cocaine and cocaine base, or “crack,” and multiple counts of distribution of cocaine or crack. An indictment returned last week in federal court charged both men with a conspiracy to distribute cocaine and cocaine base from June through October 2019. In a separate but related case, SAMMY R. GORDON, JR., also known as “Sosa,” 31, of Rockford, was charged by federal criminal complaint with distributing fentanyl and heroin in Rockford.
Law enforcement today also executed court-authorized search warrants at multiple locations in Rockford. During the searches, authorities recovered ten handguns, approximately $30,000, more than 100 grams of crack, approximately 90 grams of heroin, and more than 4.5 kilograms of marijuana.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent in Charge of the Chicago Office of the U.S. Drug Enforcement Administration; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Dan O’Shea, Rockford Police Chief; Gary Caruana, Winnebago County Sheriff; Brendan F. Kelly, Director of the Illinois State Police; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago Office of the IRS–Criminal Investigation Division. The government is represented by Assistant U.S. Attorneys Talia Bucci and Vincenza Tomlinson.
Lambert, Leavy, and Gordon, Jr., appeared today before U.S. Magistrate Judge Lisa A. Jensen in federal court in Rockford. They pleaded not guilty and will remain in custody pending detention hearings. The detention hearings for Leavy and Gordon, Jr. are scheduled for Feb. 3, 2020, and for Lambert on Feb. 4, 2020.
The public is reminded that a complaint or an indictment contains only charges and is not evidence of guilt. Each defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count against Lambert and Leavy carries a maximum sentence of 20 years in prison. The count against Gordon, Jr. carries a five-year mandatory minimum and a maximum of 40 years’ imprisonment. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Three Administrators of Philippine Church Arrested in Immigration Fraud Case Related to Workers Brought to U.S. to FundraiseRead the Press Release
LOS ANGELES – Federal authorities this morning arrested three top administrators of a Philippines-based church on federal charges of participating in an immigration fraud scheme that brought church members to the United States to work as fundraisers, and then arranged sham marriages and other illegal mechanisms to keep high-performing workers in the country.
A federal criminal complaint alleges that representatives of the church the Kingdom of Jesus Christ, The Name Above Every Name (KOJC) obtained visas for church members to enter the U.S. by claiming, for example, they would be performing at musical events. But, once the church members arrived in the United States, they were required to surrender their passports and work long hours as “FTWs” (full-time workers, who were also called “miracle workers”), who solicited donations for a church non-profit called the Children’s Joy Foundation USA (CJF). While the workers raised funds by telling donors their money would benefit impoverished children in the Philippines, the complaint alleges that most or all of the money raised was used to finance KOJC operations and the church leader’s lavish lifestyle.
The criminal complaint charges three defendants who are described as the main administrators of KOJC in the United States. They are:
- Guia Cabactulan, 59, the top KOJC official in the United States who maintained direct communication with KOJC leadership in the Philippines;
- Marissa Duenas, 41, who allegedly handled fraudulent immigration documents for KOJC workers and secured the passports immediately after workers entered the U.S.; and
- Amanda Estopare, 48, who allegedly handled the financial aspects of the KOJC enterprise, including enforcing fundraising quotas for KOJC workers.
Cabactulan and Duenas were arrested this morning at a KOJC compound in Van Nuys, where they lived. They are expected to make their initial court appearances this afternoon in United States District Court in Santa Ana. Estopare was arrested in Virginia.
In conjunction with this morning’s arrests, federal agents executed search warrants at the KOJC compound in Van Nuys, the CJF office in Glendale, and three other locations in the Los Angeles area. Searches were also conducted at two locations linked to KOJC in Hawaii, and agents fanned out across the United States to interview witnesses as part of a larger investigation into the organization.
The criminal complaint that led to this morning’s arrests charges the three defendants with conspiracy to commit immigration fraud. A 42-page affidavit in support of the complaint outlines a years-long scheme to bring FTWs to the United States under false pretenses and to make arrangements for productive fundraisers – known as “Assets” – to remain in the country by forcing them to marry other KOJC members who were U.S. citizens, or to obtain student visas and enroll FTWs in schools with lenient attendance policies. Over the past 20 years, according to immigration records summarized in the affidavit, there were 82 marriages involving KOJC administrators and FTWs.
The affidavit alleges that the immigration fraud scheme provided KOJC with workers to participate in widespread efforts to solicit donations with false claims that donors’ money would be used for the benefit of poor children in the Philippines. KOJC allegedly established daily cash solicitation quotas for FTWs, and if these quotas were not met, workers suffered abuse, according to victims who have fled KOJC and provided information to the FBI.
“[B]ank records show that KOJC accounts received approximately $20 million in cash deposits from 2014 through mid-2019,…[and] most of these funds appear to derive from street-level solicitation,” according to the affidavit, which notes that “little to no money solicited appears to benefit impoverished or in-need children.”
The affidavit summarizes the experiences of a series of victims who fled KOJC and provided information to the FBI over the past several years. Some of the victims described being sent across the U.S. to solicit donations, working long hours to reach their daily quotas, receiving little to no pay for their efforts, and participating in sending large sums of cash back to the Philippines on commercial and private flights.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charge of conspiracy to commit immigration fraud carries a statutory maximum penalty of five years in federal prison.
The FBI has established a toll-free phone number for potential victims or anyone with information about KOJC activities to provide information. The information line is 1-800-CALL FBI (1-800-225-5324), and it will be staffed by English- and Tagalog-speaking personnel. Individuals may also contact the FBI through its website at https://www.fbi.gov/tips.
The ongoing investigation into KOJC is being led by the FBI, which is receiving substantial assistance from Homeland Security Investigations, U.S. Citizenship and Immigration Service’s Fraud Detection and National Security Unit, the U.S. Department of State’s Diplomatic Security Service, and IRS Criminal Investigation.
This matter is being prosecuted by Assistant United States Attorneys Daniel Ahn and Jake Nare of the Santa Ana Branch Office.
Staten Island Businessman Operating in Bucks County Convicted of Tobacco SmugglingRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Ramzi Al Najar, 43, of Staten Island, New York, was convicted of tobacco smuggling after a week-long jury trial presided over by United States District Court Judge Petrese B. Tucker.
The defendant operated Capital Trade, Inc., a tobacco wholesaler based in Bristol, Pennsylvania. During the charged conduct, Al Najar and his associates transported almost $40 million worth of tobacco from Pennsylvania to New York, while failing to pay millions of dollars in New York state excise taxes on that tobacco. In order to hide his scheme, the defendant and his associates created false invoices and filed false documents with Pennsylvania and New York regulators which substantially underreported the amount of tobacco sold. Al Najar also failed to register and report as an interstate seller of smokeless tobacco as required by the Prevent All Cigarette Smuggling Act (PACT Act).
“Tobacco is a product that poses serious health risks, and therefore it is heavily regulated by the government,” said U.S. Attorney McSwain. “Here, the defendant attempted to skirt the system and cheat everyone who pays taxes on tobacco products. The defendant has to play by the rules, just like everyone else, or suffer the consequences. My Office will continue to work with our partners at the federal, state, and local levels to investigate and prosecute this type of fraud.”
“This jury verdict sends a clear message that the illegal interstate diversion of tobacco products will not be tolerated,” said William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations (HSI) Philadelphia. “Smuggling tobacco in order to evade taxes costs state and local jurisdictions millions of dollars per year. Utilizing our unique customs and law enforcement authorities, HSI is positioned to target and investigate these types of crimes. Our special agents will continue tracking down criminals like Mr. Al Najar and his co-conspirators along with our law enforcement partners so they can be held accountable for their crimes.”
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Food and Drug Administration, Office of Criminal Investigation, and the Pennsylvania Attorney General’s Office, Criminal Division, with assistance from: the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the New York State Department of Tax and Finance, Criminal Investigations Division, the Bronx, New York District Attorney's Office, and the Pennsylvania Department of Revenue, Criminal Investigation Division. The case was prosecuted by Assistant United States Attorneys Robert J. Livermore and Frank A. Weber.
Sioux City Couple to Federal Prison for Meth ConspiracyRead the Press Release
A man and woman who conspired to distribute methamphetamine were each sentenced to more than 5 years in federal prison.
Adam Holbrook, 34, and Stephanie Holbrook, 33, from Sioux City, Iowa, received the prison terms after a September 23, 2019, and October 16, 2019, guilty pleas to conspiracy to distribute methamphetamine and distribution of methamphetamine.
At their respective plea hearings, both admitted that from about September 2018 through April 2019, they and others conspired to distribute more than three pounds of methamphetamine in Woodbury County, Iowa area. On four separate occasions they distributed nearly one pound of pure methamphetamine (in total) to an individual cooperating with law enforcement. Then on April 17, 2019, after Adam Holbrook helped arrange for a half-pound pound methamphetamine transaction, Stephanie Holbrook was caught with nearly a half-pound of pure methamphetamine.
Each were sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Adam Holbrook was sentenced to 61 months’ imprisonment. Stephanie Holbrook was sentenced to 90 months’ imprisonment. They each must also serve a 3-year term of supervised release after their prison terms. There is no parole in the federal system. Both are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4029. Follow us on Twitter @USAO_NDIA.
Shreveport Man Sentenced to 10+ Years in Federal Prison for Possession of Methamphetamine with Intent to DistributeRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Jason Matthew Porterfield, 37, of Shreveport, was sentenced today, by U.S. District Judge Elizabeth E. Foote, to serve 130 months in federal prison and five years of supervised release for possession with intent to distribute methamphetamine. Porterfield pleaded guilty on May 22, 2019.
During surveillance of an ongoing narcotics investigation at a Shreveport hotel on Interstate Drive, law enforcement officers encountered Porterfield on March 18, 2019, as he was exiting the hotel. Porterfield consented to a search of his hotel room where officers found approximately 112 grams of methamphetamine packaged in various quantities, packaging materials, digital scales, a drug ledger, and $3,831 in cash. Agents also found one gram of marijuana and 249 Xanax pills, along with other drug paraphernalia.
Porterfield admitted that he had been selling methamphetamine and Xanax for about six months. He told officers that he sells methamphetamine to about eight different people and Xanax to three or four different people.
The U.S. Drug Enforcement Administration (DEA) and the Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick prosecuted the case.
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Shoplifting Leads to a Federal Prison Sentence for Illegally Possessing a GunRead the Press Release
A Vinton man was sentenced today to seven years in federal prison.
Anthony Hill, age 29, from Vinton, Iowa, received the prison term after an October 17, 2019 guilty plea to possession of a firearm by a prohibited person. Hill admitted to being a methamphetamine user and convicted felon when in possession of a gun. Hill had a prior felony conviction involving the manufacture of methamphetamine.
Information in earlier court filings showed that during September 2019, Hill was seen shoplifting at a store and hiding the items in a bag in the parking lot. Police recovered the bag and found a handgun with an obliterated serial number inside. Hill was located getting into a car and a short chase followed. After Hill’s arrest, he admitted using methamphetamine earlier in the day. Hill was previously convicted of multiple felony offenses related to manufacturing methamphetamine in a single state case in 2011. Previous court filings showed officers also had evidence to suggest Hill was also involved in the distribution of methamphetamine.
Hill was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hill was sentenced to 84 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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 its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
Hill is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-00097.
Follow us on Twitter @USAO_NDIA.
Self-Proclaimed “Professor of Pot” Sentenced to over 15 Years in Prison for Federal Marijuana-Trafficking ConvictionsRead the Press Release
Daniel Trevino manufactured and distributed marijuana throughout Michigan for years in violation of federal drug laws
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced today that Daniel Dario Trevino, 48, of Lansing, Michigan, was sentenced to serve 188 months in the Federal Bureau of Prisons for each of the following counts of conviction: conspiring to manufacture and distribute 100 kilograms of marijuana or 100 marijuana plants, maintaining a drug-involved premises (5 counts), and manufacture of 100 marijuana plants or more. Trevino was also sentenced to serve 60 months for two counts of manufacturing marijuana, and for one count of possession with intent to distribute marijuana. He will serve the prison terms concurrently. U.S. District Judge Paul L. Maloney also imposed a $10,000 fine and a 4-year period of supervised release.
In sentencing Trevino, Judge Maloney stated that despite recent legislative amendments regarding other controlled substances under federal drug laws, “the fact is: marijuana is still a schedule I controlled substance under federal law.” Judge Maloney described Trevino’s offense conduct as defiant, especially after federal law enforcement agencies executed search warrants at various locations in May 2016.
“As noted by Judge Maloney, marijuana remains illegal under federal law,” said U.S. Attorney Birge. “Trevino’s conduct not only violated federal law, but it also made a mockery of the state laws of Michigan. Trevino had ample opportunity to realize the illegal nature of his business, both under federal and state law, given the number of times his operations were searched. He would not stop,” stated Birge.
In August 2019, after a four-day trial, a jury convicted Trevino on ten federal marijuana trafficking-related charges. The federal convictions and prison term resulted from Trevino’s operation of marijuana dispensaries across the state of Michigan. Trevino was the owner of Hydro World, a marijuana dispensary that operated with storefronts in Lansing, Grand Rapids, Jackson, Mount Pleasant, and Flint between 2010 and 2017. Trevino’s Hydro World operated far outside the boundaries of not only federal law but also the Michigan Medical Marijuana Act. Trevino had prior felony drug convictions involving cocaine and marijuana. As a previously convicted drug felon, Trevino was only qualified to cultivate and possess limited amounts of marijuana under state law (but not federal law). Instead, Trevino cultivated thousands of marijuana plants and sold hundreds of kilograms of processed marijuana, generating gross sales close to $3 million.
Trevino’s Hydro World also provided a delivery service, where customers could call Hydro World in either Lansing or Jackson and have marijuana delivered to them at a place of their choosing. Trevino also leased space at his storefronts for other growers to sell marijuana, effectively creating a marijuana farmers’ market. Trevino’s storefronts and grow locations were searched by law enforcement at least sixteen times between 2010 and 2016. Despite these searches placing him on notice his conduct was illegal, Trevino always resumed his illegal operations shortly after each search and law enforcement interaction.
Trevino is the last defendant to be sentenced in this marijuana trafficking conspiracy. The Court previously sentenced co-defendants Daniel Lee Bachelder to 48 months in prison, Daniel Vernell Corbin to 44 months in prison, and Dolores Rachel Lopez to 24 months in prison after they all pleaded guilty for their respective roles in the marijuana trafficking conspiracy.
“Trevino, a serial violator of federal and state law on a significant scale, warranted the federal and state law enforcement attention he received” stated Keith Martin, Special Agent in Charge of the Drug Enforcement Administration’s Detroit Field Division. “As a convicted drug felon, Trevino was precluded from operating a marijuana dispensary of any type,” said Martin.
The case was investigated by the Drug Enforcement Administration (DEA), the Tri-County Metro Narcotics Team (TCM), the Jackson Narcotics Enforcement Team (JNET), the Kent Area Narcotics Enforcement Team (KANET), and the Bay Area Narcotics Enforcement Team (BAYANET) of the Michigan State Police, the Lansing Police Department, and the Flint Police Department. Assistant United States Attorneys Joel S. Fauson and Daniel T. McGraw prosecuted the case.
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Savannah felon admits to weeks-long, two-state robbery and carjacking spreeRead the Press Release
SAVANNAH, GA – A convicted felon faces up to life in prison after pleading guilty to planning and executing a string of armed robberies and carjackings across Georgia and South Carolina in November 2018.
Demetrius Lamar Jackson, a/k/a “Meechy,” 30, of Savannah, pled guilty today to Discharging and Brandishing a Firearm During and in Relation to Crimes of Violence, Carjacking and Attempted Carjacking, Interference with Commerce by Robbery, and Conspiracy to Use and Carry Firearms During Crimes of Violence, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. U.S. District Judge Lisa Godbey Wood accepted Jackson’s guilty plea.
Jackson faces a mandatory minimum sentence of 17 years in prison. The court retains the authority to sentence Jackson to prison for life, and there is no parole in the federal system.
“Jackson is a dangerous, violent criminal whose rampage across two states left innocent people injured and victimized – and fortunate to still be alive,” said U.S. Attorney Christine. “A law-abiding citizen with a legal firearm finally brought Jackson’s reign of terror to an end, and a substantial federal prison term will ensure the community’s safety from him for many years to come.”
According to court statements and filings, in November 2018, Jackson perpetrated a two-and-a-half-week crime spree across Georgia and South Carolina, including:
- Nov. 6, 2018: Jackson robbed an employee of a Boost Mobile store in Savannah at gunpoint while the employee was transporting cash for the store. Jackson shot the store manager in the abdomen when she came to assist, and fled the scene in a car driven by his accomplice, Nautica Morgan, 23, of Savannah.
- Nov. 12: Jackson approached a young couple who was washing a Nissan sedan at a midtown Savannah carwash. Jackson pointed a gun at them and twice pulled the trigger, but the gun malfunctioned. Jackson then sped away in the victims’ car.
- Nov. 13: Jackson robbed a Valdosta, Ga., Boost Mobile employee and his girlfriend at gunpoint. The getaway car was the one stolen at the Savannah car wash.
- Nov. 19: Morgan attempted to steal merchandise from a beauty store in Augusta, Ga. When the store manager followed Morgan, Jackson pointed a gun at the manager. Jackson and Morgan later carjacked a vehicle at gunpoint from a woman at a nearby CVS. Later that day, at a Walgreens pharmacy in Conyers, Ga., Jackson held a man at gunpoint and attempted to steal his car, then stole a purse.
- Nov. 20: Jackson robbed a Boost Mobile store in East Point, Ga. Armed with a pistol, Jackson ordered the store’s employees to empty the cash register and safe. He then demanded the employees kneel on the floor of a back room and surrender a key to the store and their personal cell phones, debit cards, and cash before he fled.
- Nov. 21: Jackson carjacked a 73-year-old woman in Athens, Ga., while she was vacuuming her SUV. Jackson threatened to shoot her and then pistol-whipped her in the head. Later that same day, Jackson walked into a Boost Mobile store in Aiken, S.C., pulled out a gun and demanded money. Before he left with the store’s cash, Jackson seized an employee’s cellphone and smashed it.
- Nov. 23: Jackson attempted to rob a Boost Mobile store in Columbia, S.C., but a store employee shot Jackson during the robbery. To drive Jackson to a nearby emergency room, Morgan used a Chevrolet Tahoe that she and Jackson had carjacked in Georgetown, S.C., a few hours earlier.
Jackson and Morgan were both arrested shortly after the shooting, and a search of the Tahoe revealed bloody clothes, the stolen .22 caliber pistol used in the crimes, and numerous stolen items.
For her role in the crime spree, Morgan was charged with federal crimes in the District of South Carolina. On Aug. 27, 2019, Morgan pled guilty to charges of Conspiracy to Use and Carry a Firearm During Crimes of Violence and Brandishing a Firearm During a Crime of Violence.
Jackson’s charges stem from two separate indictments brought by grand juries sitting in the Northern and Southern Districts of Georgia. The Northern District’s indictment was transferred to the Southern District. The U.S. Attorney’s Offices in the Middle District of Georgia and District of South Carolina were important in bringing these cases to resolution.
“Jackson committed horrible violent acts, even pointing and firing guns at men and women of various ages and backgrounds with no regard for their lives,” said U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia. “We are committed to safe neighborhoods and communities no matter where they are. This case should clarify for anyone who chooses to follow in Jackson’s footsteps that we will find you and we will prosecute you to the fullest extent of the law.”
“I want to commend the law enforcement agencies in Georgia and South Carolina who tracked down and captured a violent man bent on causing grave harm to whomever crossed his path during this terrorizing crime spree,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “We are pleased that justice will be served for the innocent victims in this matter.”
“Jackson went on a weeks-long crime spree and terrorized innocent individuals across two states. Hopefully the victims who were traumatized by him can take comfort in the fact that he has pled guilty and will now have to pay the penalty for his reign of terror,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI would like to thank our state and local law enforcement partners who helped bring this violent defendant to justice.”
This case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Savannah Police Department, the Richland County (S.C.) Sheriff’s Department, the Valdosta Police Department, the Richmond County Sheriff’s Office, the East Point Police Department, the City of Conyers Police Department, the Aiken (S.C.) Department of Public Safety, the Athens-Clarke County Police Department, and the Georgetown (S.C.) City Police Department.
Assistant U.S. Attorneys for the Southern District of Georgia and Theodore S. Hertzberg of the Northern District of Georgia prosecuted Jackson’s cases for the United States.
Rochester Contractor Sentenced for Filing False Tax ReturnsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jason Bassett, 43, of Rochester, NY, who was convicted of filing a false tax return, was sentenced to serve six months in prison and six months home confinement by U.S. District Judge Elizabeth Wolford.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that the defendant owned and operated a paving and sealing company, which provided both personal and commercial sealing and paving services in the Rochester area. After receiving payment for services provided, Bassett failed to deposit all of the business income into the business bank account. The defendant would cash some business checks but failed to place them into the banking system.
Bassett did not advise his tax return preparer that he had cashed numerous business checks. As a result, the defendant knowingly caused the preparation of false personal income tax returns. For the years 2012 through 2015, Bassett failed to report approximately $1,704,873.89 in income on his tax returns, which resulted in the defendant failing to pay approximately $378,331 in taxes to the Internal Revenue Service. The defendant has paid back that amount to the IRS, but still owes more than $400,000 in penalties and interest.
The defendant also, in the course of failing to report all of his gross income from his sealing and paving business, failed to withhold taxes from his employees’ wages, did not provide his employees with Form W-2s, and did not report this on any other return required to be filed with the Internal Revenue Service.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge.
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Randolph County woman sentenced for drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Melinda Sharon Higgins, of Elkins, West Virginia, was sentenced today to 15 months incarceration for drug distribution, United States Attorney Bill Powell announced.
Higgins, age 40, pled guilty to one count of “Distribution of Hydromorphone” in January 2019. Higgins admitted to distributing hydromorphone in Randolph County in April 2018.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge John Preston Bailey presided.
Randolph County woman admits to meth distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Janice May White, of Kerens, West Virginia, has admitted to selling methamphetamine, U.S. Attorney Bill Powell announced.
White, age 40, pled guilty to one count of “Distribution of Methamphetamine – Aiding and Abetting.” White admitted to selling methamphetamine in April 2019 in Randolph County.
White faces at least five years and up to 40 years incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Raleigh Man Sentenced to 20 Years’ Imprisonment After Pretending to be Teenage Girl to Collect Child Pornography OnlineRead the Press Release
RALEIGH — United States Attorney Robert J. Higdon, Jr., announced that today in federal court, Chief United States District Judge Terrence W. Boyle, sentenced EZEKIAL SANDOVAL, 49, of Raleigh to 240 months’ imprisonment. SANDOVAL was named in a 12-count Indictment on May 22, 2019, charging him with one count of child exploitation and manufacturing child pornography, 10 counts of receipt of child pornography, and one count of possession of child pornography. On November 13, 2019, he pled guilty to the child exploitation and manufacturing count.
According to the investigation, on September 3, 2017, a father located in Michigan, reported to local police that his 11 year old daughter had been sexually exploited online by an unknown individual. The victim had met the individual online and believed she was communicating with a teenage female named “Cindy.” Law enforcement reviewed the conversation on the victim’s phone and saw that the person going by “Cindy” encouraged the victim to self-produce multiple explicit images and videos. At “Cindy’s” request, the victim sent her the images and videos during a week-long span in late August 2017.
Law enforcement determined that the telephone number for “Cindy” was in fact registered to a then-47 year old man, the defendant EZEKIAL SANDOVAL. After further surveillance confirmed that SANDOVAL was the phone’s user, law enforcement obtained a federal search warrant for his Raleigh home and seized a phone and other digital devices.
On SANDOVAL’s phone, law enforcement located an account for the internet chat application Kik with registered name “Cindy Baker.” FBI also recovered images that matched those sent from the Michigan victim. Forensics further revealed that SANDOVAL had accessed links that contained other child pornography online, finding over 2,000 still images and 180 videos of child pornography across his various digital devices.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
The Federal Bureau of Investigation, Raleigh Police Department and the Pittsfield Township Police Department (Michigan) conducted the investigation. Assistant United States Attorney Jake D. Pugh represented the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Quebec Resident Pleads Guilty in Multi-Million Dollar Telemarketing SchemeRead the Press Release
SAN FRANCISCO – Athanasios Vouloukos pleaded guilty in federal court in San Francisco to conspiracy to commit mail fraud, announced United States Attorney David L. Anderson, U.S. Postal Inspection Service Inspector in Charge Rafael Nunez, and Internal Revenue Service, Criminal Investigation Special Agent in Charge Kareem Carter. The guilty plea was received by the Honorable Susan Illston, U.S. District Judge.
According to his plea agreement, Vouloukos, 47, of Ville St. Laurent, Quebec, Canada, admitted that he conspired with others in a telemarketing scheme to defraud small businesses in the United States. Vouloukos and others deceived thousands of small businesses into paying for a phony service to improve and enhance their online profile and presence. The phony service was variously described as, for example, “business listing optimization,” “business profile optimization,” or “online business listing optimization,” when in fact no such services were ever performed. Business were charged approximately $500 for the phony service.
As stated in the plea agreement, Vouloukos operated a calling center in Canada with his co-conspirator Nicholaos Menis. U.S. victims were cold-called from Canada and sent bogus invoices. According to the plea agreement, the telemarketing scheme involved calling businesses regarding the fraudulent invoices and falsely stating that the businesses had ordered “business listing optimization” or similar services and owed the amount on the invoice. Victims were directed to mail checks to addresses in the United States, which were actually United Parcel Service (UPS) mailboxes or virtual offices, including one mailbox at a UPS store in San Francisco. In pleading guilty, Vouloukos admitted that he and a co-conspirator used a firm called GreenGate to launder the proceeds of the fraudulent scheme.
According to the indictment, from about May 2009 to about June 2014, Vouloukos and others collected approximately $3.2 million from thousands of victims.
Menis, 47, of Dollard-des-Ormeaux, Quebec, Canada, was charged in a separate indictment and arrested on August 11, 2014. He pleaded guilty on December 5, 2014, and is awaiting sentencing.
A federal grand jury returned an indictment against Vouloukos on February 12, 2015. He was charged with one count of conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349; four counts of mail fraud, in violation of 18 U.S.C. § 1341; and one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h). Vouloukos pleaded guilty to one count of conspiracy to commit mail fraud.
Vouloukos was arrested after entering the United States on January 25, 2019, and made his initial appearance before the Honorable Sallie Kim, U.S. Magistrate Judge. He was released on a $100,000 bond.
Judge Illston scheduled Vouloukos’ sentencing for October 30, 2020. The maximum statutory penalty for a violation of 18 U.S.C. § 1349 is 20 years in prison and a fine of $250,000, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Robert S. Leach and Scott D. Joiner are prosecuting the case with the assistance of Rebecca Shelton and Kimberly Richardson. The prosecution is the result of an investigation by the United States Postal Inspection Service and IRS – Criminal Investigation.