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10 March 2020
Former Olney Police Chief Sentenced to 10 Years for Threatening Man at GunpointRead the Press Release
The former Acting Police Chief of Olney, Texas was sentenced today to 10 years in federal prison for threatening an individual at gunpoint, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Former Acting Chief Robert Michael Cross, 35, pleaded guilty in October to deprivation of rights under color of law following an investigation by the FBI’s Dallas Field Office.
“The city of Olney deserves police officers with respect for the rule of law,” said U.S. Attorney Nealy Cox. “Instead, this defendant abused his power, stripping citizens of their dignity for his own perverse ends. We are gratified he has been held to account for his despicable behavior.”
“Law enforcement officers are responsible for upholding the law and protecting their communities from harm. The defendant used his position of authority to prey on vulnerable individuals and exploit them for his personal gain,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The FBI is committed to preserving trust in law enforcement. We will criminally pursue any officer that violates the law and abuses their oath to protect and serve.”
In plea papers and in other information provided in court, Mr. Cross admitted that shortly after arresting two individuals for aggravated robbery offenses, he coerced them into engaging in conduct for his own personal benefit, promising to have the criminal cases against them dismissed if they complied with his demands.
About a month after the arrest, on Dec. 20, 2017, he took them out in his vehicle to eat dinner and catch a movie. That evening, he brandished a pistol, threatening one victim with bodily injury and coercing the victim to engage in sex acts with another individual, thereby willfully depriving the victim of the Constitutional right to be free from unreasonable force by a law enforcement officer.
The Federal Bureau of Investigation’s Dallas Field Office and the Texas Rangers conducted the investigation. Assistant U.S. Attorney Robert Boudreau is prosecuting the case. U.S. District Judge Reed C. O’Connor handed down the sentence.
Federal customs and border protection officer charged with smuggling 17 kilograms of cocaineRead the Press Release
ATLANTA - Ivan Van Beverhoudt has been arraigned on federal charges relating to importation of cocaine, possession with the intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking.
“This officer allegedly abused his office to engage in criminal conduct,” said U.S. Attorney Byung J. “BJay” Pak. “Federal law enforcement officers take an oath to uphold the law. When an officer violates that oath, he or she will be investigated and prosecuted to the fullest extent of the law.”
“A badge and a gun should be used for protecting the public, not for bypassing security to enable criminal activity,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Inspection (HSI) operations in Georgia and Alabama. “Corruption in law enforcement undermines the public’s trust and makes all of our jobs harder.”
“CBP officers take an Oath of Office, a solemn pledge that conveys great responsibility and one that should be carried out at all times with the utmost professionalism,” stated Todd Bellew, Area Port Director in Charlotte Amalie, St. Thomas, U.S. Virgin Islands. “Inappropriate behavior or misconduct is not tolerated, and does not reflect our values of vigilance, integrity and professionalism.”
“Van Beverhoudt allegedly abused his position as U.S. Customs and Border Protection Officer to smuggle drugs through the world’s busiest airport,” said DHS OIG’s Acting Special Agent in Charge Ronnie Tippett. “The public deserves better – they deserve officers who obey the laws that they are entrusted to enforce.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In January 2020, Ivan Van Beverhoudt was a sworn officer with the Department of Homeland Security Customs & Border Protection (“CBP”), stationed in the U.S. Virgin Islands. Part of Van Beverhoudt’s duties was the inspection of flights to prevent the importation of controlled substances on airplanes.
On January 10, 2020, Van Beverhoudt traveled on a flight from St. Thomas, U.S. Virgin Islands, through Atlanta, on his way to Baltimore, Maryland. At the time, Van Beverhoudt was carrying his U.S. Government-issued weapon that allowed him to bypass normal airport screening because he was a law enforcement officer “flying while armed.” When the flight arrived in Atlanta, Atlanta-based CPB officers at Hartsfield-Jackson Atlanta International Airport inspected the passengers on the flight with a K-9 handler and dog. As Van Beverhoudt passed by the K-9 handler and the dog, the dog alerted to his two carry-on bags.
CBP officers escorted Van Beverhoudt to an interview room where Van Beverhoudt claimed to be coming through Atlanta to see a doctor in Baltimore, although he could not identify the doctor or explain how the doctor would see him on the weekend and without a medical appointment. After the drug dog again alerted to his bags, CBP officers opened both bags and discovered 14 packages in one bag, and two additional packages in the other bag, containing a substance that field-tested positive for cocaine and weighed a total of 17.8 kilograms.
Ivan Van Beverhoudt, 40, of Saint Thomas, Virgin Islands, was arraigned before U.S. Magistrate Judge Regina D. Cannon. Van Beverhoudt was indicted by a federal grand jury on February 4, 2020. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
Homeland Security Investigations (HSI) and the Department of Homeland Security Office of Inspector General are jointly investigating this case.
Assistant U.S. Attorney Laurel R. Boatright is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.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.
Federal Prisoner Sentenced to 18 Months for Synthetic Cannabinoid Distribution SchemeRead the Press Release
PITTSBURGH – Terrell Williams pleaded guilty and was sentenced to 18 months in prison for conspiring to distribute Schedule I synthetic cannabinoid controlled substances between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Williams, age 41 of Pittsburgh, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan also ordered Williams to serve six years of supervised release following his prison term. Williams was serving a prior federal prison sentence when he committed the crime to which he pled guilty and for which he was sentenced.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
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.
Erie Man Charged with Producing Child Pornography VideosRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Dana Lindstrom, 38, as the sole defendant.
According to the Indictment presented to the court, in August 2019, Lindstrom produced child pornography by recording videos of a minor female in a bathroom without her permission.
"The U.S. Attorney’s office is participating in NO MORE week, March 8-14, 2020, a week dedicated to ending domestic violence and sexual assault by increasing awareness and inspiring everyone to become part of the solution," said U.S. Attorney Brady. "Today’s indictment demonstrates our steadfast commitment to safeguarding our children and bringing to justice individuals who commit child exploitation crimes."
The law provides for a maximum total sentence of 60 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Erie Police Department and the Erie County Detectives Bureau conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Man Charged with Possessing Fentanyl and Distributing CocaineRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal drug laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Jamie Darnell Pullium, 38, as the sole defendant.
According to the Indictment presented to the court, on or about February 3 and February 11, 2020, Pullium distributed cocaine in Erie, Pennsylvanian and on or about February 20, 2020, he possessed fentanyl with the intent to distribute.
The law provides for a maximum total sentence of 60 years in prison, a fine of $3,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Erie County Drug Taskforce, Erie County Detective Bureau, Millcreek Police Department, Erie Police Department, and Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This case is being prosecuted as part of Operation S.O.S. (Synthetic Opioid Surge), a Department of Justice enforcement initiative designed to dismantle deadly fentanyl distribution networks through cooperation with local, state and federal law enforcement, as well as local and state prosecutors. The Western District of Pennsylvania as one of 10 districts from across the country to implement the S.O.S. program.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eighteen South Jersey Residents Charged with Trafficking Prescription DrugsRead the Press Release
CAMDEN, N.J. – Eighteen alleged members of two drug trafficking operations based in Gloucester City and Camden have been charged in connection with their roles in distributing drugs, including high-dosage oxycodone pills, U.S. Attorney Craig Carpenito announced today.
The defendants were charged with conspiring to possess and distribute drugs in two complaints unsealed today. Sixteen of the defendants were arrested today and are scheduled to appear this afternoon before U.S. Magistrate Judges Joel Schneider and Karen M. Williams in Camden federal court. Two defendants remain at large. (See table below)
According to documents filed in this case and statements made in court:
The charges and arrests are the result of a wiretap investigation led by the FBI into drug distribution operations that dealt in, among other drugs, high-dose, 60- and 80-mg oxycodone pills. The operations’ leaders – Rocco DePoder for the Gloucester City operation and Erick Bell and Alfred Kee Jr. for the Camden operation – and the other suppliers, resellers and associates charged in the complaints generally employed the following means to facilitate the pill trafficking: Bell, Kee and DePoder would solicit the suppliers, including certain defendants named in the complaints, and others, primarily over the telephone, to supply them with quantities of oxycodone, Adderall and Xanax for DePoder, and oxycodone for Bell and Kee. After receiving substantial quantities of pills at Bell’s home in Camden, DePoder’s home in Gloucester City, and other locations in southern New Jersey (including Lindenwold and Woodbury), Bell and DePoder would take orders for pills over the telephone from others. Bell, Kee and DePoder would provide purchasers with these pills. The defendants employed coded language and used multiple phones to conceal their activities.
The conspiracies charged in the complaints carry a maximum prison term of 20 years and a maximum fine of $1 million.
U.S. Attorney Carpenito credited special agents of FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Acting Special Agent in Charge Tara McMahon; U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Joseph Wysocki; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to the charges.
He also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the Office’s Camden branch, and Sara F. Merin and Mark J. McCarren of the Newark Office.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
*denotes at large
East Hartford Man Sentenced to 87 Months in Prison for Trafficking Heroin Cut with Horse TranquilizerRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALEXANDER PENA, 28, of East Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 87 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in October 2016, the Drug Enforcement Administration’s Hartford Task Force began an investigation of an organization that was trafficking large quantities of heroin, fentanyl and other narcotics in Connecticut and western Massachusetts. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that members of the organization were receiving bulk quantities of heroin and fentanyl from out-of-state suppliers. They then stored, processed and packaged the heroin/fentanyl in multiple locations, including apartments located at 280 Collins Street in Hartford where some members of the organization also resided, and then distributed the drug in the Hartford area, and also the Springfield and Holyoke, Massachusetts area. A significant amount of drug trafficking activity occurred at the Neighborhood Supermarket, located at 316 Farmington Avenue in Hartford.
Investigators made multiple controlled purchases of heroin and fentanyl from Pena and other members of the drug trafficking organization in and around the Neighborhood Supermarket. The heroin/fentanyl was cut with xylazine, which is a horse tranquilizer.
During the investigation, law enforcement executed 12 search warrants in Connecticut and Massachusetts and seized approximately 10 kilograms of heroin and fentanyl, much of which was packaged for resale in hundreds of thousands of bags. Investigators also seized numerous vials of xylazine. Seven firearms also were seized.
Pena has been detained since his arrest on June 29, 2017. On that date, a search of Pena’s East Hartford residence revealed quantities of heroin and cocaine and approximately $10,000 in cash.
On December 9, 2019, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin.
Fourteen individuals have been charged with various narcotics, firearms and immigration offenses as a result of this investigation.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the Federal Bureau of Investigation, U.S. Postal Inspection Service, U.S. Marshals Service and Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Dominican National Pleads Guilty to Identity Theft ChargesRead the Press Release
BOSTON – A Dominican national pleaded guilty today in connection with using the identity of a U.S. citizen.
Yohnny Peguero Villalona, 33, a Dominican national who formerly resided in Lynn, pleaded guilty to one count of false representation of a Social Security number, one count of aggravated identity theft and one count of making a false statement relating to a health care benefit program. Sentencing is scheduled for July 8, 2020. Peguero Villalona was arrested in December 2019 and has been detained since that time.
Peguero Villalona used the name and identifiers of a U.S. citizen for at least 13 years, including to obtain a Massachusetts driver’s license and to apply for MassHealth benefits. When he was arrested on unrelated charges, Peguero Villalona used the identity of this U.S. citizen. Fingerprints taken during the booking process following the prior arrest of Peguero Villalona matched fingerprints showing him to be a citizen of the Dominican Republic. During a search of Peguero Villalona’s residence, a Massachusetts driver’s license and a MassHealth card under the name of the U.S. citizen whose identity Peguero Villalona had fraudulently assumed, were recovered.
The charges of false representation of a Social Security number and false statement relating to a health care benefit program provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a two-year sentence to be served consecutively to any other sentence, as well as up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General, made the announcement today. Valuable assistance was provided by the Social Security Administration, Office of Inspector General, Office of Investigations; U.S. Postal Inspection Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; U.S. Department of State, Diplomatic Security Service; U.S. Department of Housing and Urban Development, Office of Inspector General; U.S. Department of Labor, Office of Inspector General; and the Lynn Police Department. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
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Doctor Pays Civil Penalties for Violating the Controlled Substances ActRead the Press Release
ALEXANDRIA, Va. – A Richmond physician agreed to pay $24,000 in civil penalties for forging prescriptions for controlled substances for her own use in violation of the Controlled Substances Act.
On at least six occasions, Dr. Tanja Zlatkovic Zanin obtained blank prescription forms from her place of employment, forged the signatures of two physicians, and wrote, for her own use, prescriptions for Adderall, a Schedule II controlled substance. Under the terms of a parallel administrative resolution, Dr. Zanin entered into a Memorandum of Agreement with the DEA under which she is not permitted to purchase or distribute controlled substances for twenty-four months. Dr. Zanin admitted to her misconduct and took full responsibility for her actions.
The Controlled Substances Act regulates individuals and companies that manufacture, distribute and dispense controlled substances. The law aims to protect the public’s health and safety from dangers posed by highly addictive or dangerous controlled substances, including the diversion or improper use of such substances, while also ensuring that patients have access to pharmaceutical controlled substances for legitimate medical purposes.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the DEA’s Richmond District Office.
Assistant U.S. Attorneys Ilene Albala and Robert P. McIntosh handled the Controlled Substances Act civil penalty matter. The administrative action was handled by John E. Beerbower of the DEA Office of Chief Counsel’s Diversion & Regulatory Litigation Section.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Department of Justice Begins First Distribution of Funds Recovered Through Asset Forfeiture to Compensate Victims of Western Union Fraud SchemeRead the Press Release
The Department of Justice announced today that the Western Union Remission Fund began its first distribution of approximately $153 million in funds forfeited to the U.S. government from the Western Union Company (Western Union) to over 109,000 victims located in the United States and abroad. These victims, many of whom were elderly victims of consumer fraud and abuse, will be recovering the full amount of their losses.
“The $153 million distribution announced today brings some measure of justice for the elderly and other victims who were financially harmed by the fraudulent schemes in this case,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department remains resolute in its efforts to not only prevent fraud from occurring in the first place, but also to find and return ill-gotten gains.”
“Money Transfer Businesses such as Western Union are particularly susceptible to misuse by scammers,” said U.S. Attorney David J. Freed for the Middle District of Pennsylvania. “In nearly every case of this nature that we have encountered in the Middle District of Pennsylvania, money transfer businesses are used to facilitate the crimes. Working together with MLARS and the skilled and dedicated investigators of the Postal Inspection Service, we have achieved outstanding results – bringing fraudsters to justice and holding businesses such as Western Union accountable. In addition to increased fraud detection and protections, an integral part of that accountability involves Western Union making victims whole. $153 Million is a good start.”
“The losses and the number of victims in this case are staggering. This initial disbursement will provide relief to more than 100,000 individuals, who lost $153 million,” said Assistant Postal Inspector in Charge John Walker of the U.S. Postal Inspection Service’s Philadelphia Division. “Some lost their life’s savings as a result of these scammers. Postal Inspectors continue to be out front when it comes to investigating these con men and in protecting American citizens from them. Today, we are happy to play a third role — returning money to those who were scammed. Delivering justice, and in this case, delivering restitution.”
“Western Union turned a blind eye to the fraudulent payments made through its money transfer system,” said Andrew Smith, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “We’re glad to be returning money to those consumers who were ripped off by fraudsters exploiting the Western Union system, and we will not tolerate Western Union or other payments companies facilitating fraud.”
In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the United States. Pursuant to the DPA, Western Union acknowledged responsibility for its criminal conduct, which included violations of the Bank Secrecy Act and aiding and abetting wire fraud, and agreed to forfeit $586 million, which has been made available to compensate victims of the international consumer fraud scheme through the remission process. Western Union simultaneously resolved a parallel civil investigation with the Federal Trade Commission.
In this case, fraudsters specifically targeted seniors through primarily three distinct scams. First, in grandparent scams, the fraudster would pose as the victim’s relative, usually a grandchild, in need of immediate money to avoid personal harm such as a payment for medical expenses or ambulatory transportation. Second, in lottery or sweepstakes scams, victims received phone calls telling them that they had won large cash prizes but had to pay fees such as taxes to claim the prize. Many of these victims were re-victimized several times, as they were told to transfer large sums of money in multiple transactions on the promise that they would receive their prizes. Third, romance scams preyed on seniors searching for love or companionship on the internet. These victims were lulled into believing that their online love interest needed funds for a visit to the United States or some other purpose.
Certain owners, operators or employees of Western Union agent locations were complicit in the schemes. Western Union aided and abetted the fraud scheme by failing to suspend or terminate complicit agents and by allowing them to continue to process fraud-induced monetary transactions. Western Union had fulfilled its obligations under the DPA and the government has filed a motion to dismiss the information, which the court granted today.
This first round of payments is one of several expected to occur in the Western Union remission. The Department of Justice sent petitions for remission to over 500,000 potential victims of the Western Union fraud and anticipates authorizing compensation for many more victims in the coming months.
The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime and acknowledges the significant assistance of the U.S. Postal Inspection Service (USPIS) Philadelphia Division’s Harrisburg, Pennsylvania Office in the Western Union remission. The victim compensation payments in the Western Union case would not have been possible without the extraordinary efforts of the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section; the U.S. Attorney’s Offices for the Middle District of Pennsylvania, the Central District of California, the Eastern District of Pennsylvania, and the Southern District of Florida; and the USPIS Philadelphia Division’s Harrisburg, Pennsylvania Office, the FBI’s Los Angeles Field Office, the Internal Revenue Service-Criminal Investigations, Homeland Security Investigations, Federal Reserve Board and the Consumer Financial Protection Bureau Office of Inspector General, and Department of the Treasury Office of Inspector General.
More information about the Western Union remission and its compensation to victims is available on the Western Union remission website at www.westernunionremission.com. Further questions may be directed to the Western Union Remission Administrator by phone at 844-319-2124 or by email at [email protected].
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.
Department of Justice Begins First Distribution of Funds Recovered Through Asset Forfeiture to Compensate Victims of Western Union Fraud SchemeRead the Press Release
HARRISBURG – U.S. Attorney David J. Freed joined Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, in announcing that the Western Union Remission Fund began its first distribution of approximately $153 million in funds forfeited to the U.S. government from the Western Union Company (Western Union) to over 109,000 victims located in the United States and abroad. These victims, many of whom included elderly victims of consumer fraud and abuse, will be recovering the full amount of their losses.
“Money Transfer Businesses such as Western Union are particularly susceptible to misuse by scammers,” said U.S. Attorney David J. Freed for the Middle District of Pennsylvania. “In nearly every case of this nature that we have encountered in the Middle District of Pennsylvania, money transfer businesses are used to facilitate the crimes. Working together with MLARS and the skilled and dedicated investigators of the Postal Inspection Service, we have achieved outstanding results – bringing fraudsters to justice and holding businesses such as Western Union accountable. In addition to increased fraud detection and protections, an integral part of that accountability involves Western Union making victims whole. $153 Million is a good start.”
“The $153 million distribution announced today brings some measure of justice for the elderly and other victims who were financially harmed by the fraudulent schemes in this case,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department remains resolute in its efforts to not only prevent fraud from occurring in the first place, but also to find and return ill-gotten gains.”
“The losses and the number of victims in this case are staggering. This initial disbursement will provide relief to more than 100,000 individuals, who lost $153 million,” said Assistant Postal Inspector in Charge John Walker of the U.S. Postal Inspection Service’s Philadelphia Division. “Some lost their life’s savings as a result of these scammers. Postal Inspectors continue to be out front when it comes to investigating these con men and in protecting American citizens from them. Today, we are happy to play a third role—returning money to those who were scammed. Delivering justice, and in this case, delivering restitution.”
“Western Union turned a blind eye to the fraudulent payments made through its money transfer system,” said Andrew Smith, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “We’re glad to be returning money to those consumers who were ripped off by fraudsters exploiting the Western Union system, and we will not tolerate Western Union or other payments companies facilitating fraud.”
In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the United States. Pursuant to the DPA, Western Union acknowledged responsibility for its criminal conduct, which included violations of the Bank Secrecy Act and aiding and abetting wire fraud, and agreed to forfeit $586 million, which has been made available to compensate victims of the international consumer fraud scheme through the remission process. Western Union simultaneously resolved a parallel civil investigation with the Federal Trade Commission.
In this case, fraudsters specifically targeted seniors through primarily three distinct scams. First, in grandparent scams, the fraudster would pose as the victim’s relative, usually a grandchild, in need of immediate money to avoid personal harm such as a payment for medical expenses or ambulatory transportation. Second, in lottery or sweepstakes scams, victims received phone calls telling them that they had won large cash prizes but had to pay fees such as taxes to claim the prize. Many of these victims were re-victimized several times, as they were told to transfer large sums of money in multiple transactions on the promise that they would receive their prizes. Third, romance scams preyed on seniors searching for love or companionship on the internet. These victims were lulled into believing that their online love interest needed funds for a visit to the United States or some other purpose.
Certain owners, operators or employees of Western Union agent locations were complicit in the schemes. Western Union aided and abetted the fraud scheme by failing to suspend or terminate complicit agents and by allowing them to continue to process fraud-induced monetary transactions. Western Union had fulfilled its obligations under the DPA and the government has filed a motion to dismiss the information, which the court granted today.
This first round of payments is one of several expected to occur in the Western Union remission. The Department of Justice sent petitions for remission to over 500,000 potential victims of the Western Union fraud and anticipates authorizing compensation for many more victims in the coming months.
The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime and acknowledges the significant assistance of the U.S. Postal Inspection Service (USPIS) Philadelphia Division’s Harrisburg, Pennsylvania Office in the Western Union remission. The victim compensation payments in the Western Union case would not have been possible without the extraordinary efforts of the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section; the U.S. Attorney’s Offices for the Middle District of Pennsylvania, the Central District of California, the Eastern District of Pennsylvania, and the Southern District of Florida; and the USPIS Philadelphia Division’s Harrisburg, Pennsylvania Office, the FBI’s Los Angeles Field Office, the Internal Revenue Service-Criminal Investigations, Homeland Security Investigations, Federal Reserve Board and the Consumer Financial Protection Bureau Office of Inspector General, and Department of the Treasury Office of Inspector General.
More information about the Western Union remission and its compensation to victims is available on the Western Union remission website at www.westernunionremission.com. Further questions may be directed to the Western Union Remission Administrator by phone at 844-319-2124 or by email at [email protected].
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Cory Ryan Day Sentenced for Enticement of a Child for Sexual Purposes and Traveling with the Intent to Illicit Sexual ConductRead the Press Release
Knoxville, Tennessee – On March 10, 2020, Cory Ryan Day, 24, currently of Huntsville, was sentenced by the Honorable Thomas A. Varlan in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of a plea agreement, Cory Ryan Day agreed to plead guilty to an information charging him with one count of enticement of a child for sexual purposes in violation of 18 U.S.C. § 2422(b) and one count of traveling with the intent to illicit sexual conduct in violation of 18 U.S.C. 2423(a). Day was sentenced to 120 months in prison, followed by 12 years of supervised release. Day will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
In September and October of 2018, in the Eastern District of Tennessee, Day contacted a 15-year-old boy through Snapchat, a social media site. Day sent the minor a video of a couple having sex. Day then offered to pay the minor $200 and buy him alcohol if he would allow Day to have sexual contact with him. The minor refused.
At the end of December of 2018, a young girl began receiving messages on Snapchat from Day, who purported to be a teenage girl and sent naked photos of a teenage girl. Day subsequently requested naked photos of the young girl. Day then arranged a meeting with her, offering money and cigarettes in exchange for allowing Day to engage in illicit sexual conduct with her. Day traveled from Scott County in the Eastern District of Tennessee to the Eastern District of Kentucky to meet the girl.
At the time of the crimes, Day was a teacher and coach with the Scott County Schools.
“This case is unfortunately representative of the calculated misuse of the Internet and social media by sexual predators,” said U.S. Attorney J. Douglas Overbey. “As parents, we need to be ever vigilant in protecting the children entrusted to our care. The U.S. Attorney’s Office will continue to prosecute to the full extent of the law those who use social media to entice and prey on children for illicit purposes.”
“Children are among the most vulnerable members of our community. They must be protected in any way we can. This investigation is a great example of the work that can be done when state and federal law enforcement agencies work together to remove those intent on harming the safety and well-being of our youth,” said FBI Special Agent in Charge Joe Carrico.
The criminal information was the result of an investigation by the Federal Bureau of Investigation and the Tennessee Bureau of Investigation. This investigation was led by FBI Special Agent Kristina Norris.
Assistant United States Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Boardman Woman Sentenced to Two Years in Prison for Identity TheftRead the Press Release
Laura J. Entrikin, age 60 of Boardman, Ohio, was sentenced today to 24 months in prison and one year of supervised release for using her deceased mother’s identity to steal social security benefits.
The announcement was made by United States Attorney Justin E. Herdman and Andrew Boockmeier, Acting Special Agent in Charge of the Social Security Administration (SSA) Office of the Inspector General, Chicago Field Office.
As part of her November 26, 2019 guilty plea, Entrikin admitted to forging her deceased mother’s name on 147 checks in order to withdraw social security retirement benefits deposited into the account after her mother died.
Entrikin was also ordered to pay $322,322 in restitution to the SSA.
This case was investigated by the SSA Office of the Inspector General and prosecuted by Special Assistant United States Attorney Jason White.
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Biddeford, Maine Man Convicted of Hate Crime AssaultsRead the Press Release
Following a three-day jury trial, Maurice Diggins, 36, of Biddeford, Maine, was convicted today of conspiring to commit hate crimes and of actually committing hate crimes by engaging in a series of racially motivated attacks against black men in Maine, announced the Department of Justice.
“Today’s conviction demonstrates that the Department of Justice will not tolerate horrific racially-motivated attacks,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The jury’s verdict reflects the sad fact that racism and violence remain linked more than 150 years after our nation abolished slavery. The Department of Justice will continue forcefully to prosecute race-based violations of our federal civil rights laws.”
“Today, a jury found Maurice Diggins guilty of committing three hate crimes,” said U.S. Attorney Halsey B. Frank of the District of Maine. “At trial, the government proved that Diggins conspired with his nephew, Dusty Leo, to brutally assault two men because they were black. In both cases, the men’s jaws required surgery to repair extensive damage. Diggins’ and Leo’s behavior was despicable. It violated America’s and Maine’s core values that all men are created equal, that they are entitled to pursue their lives without racial discrimination, and entitled to be safe from being assaulted because of the color of their skin. I am grateful to the jurors for their service, to the trial team for ably presenting the case, and to the federal defender for providing Mr. Diggins with the type of vigorous defense that our system provides to all defendants.”
According to evidence presented at trial, on April 15, 2018, defendant Diggins and his nephew, Dusty Leo (who previously pled guilty in connection with this case), committed two separate racially motivated assaults, one in Portland and one in Biddeford. In the Portland assault, which occurred just before 1:00 a.m., Diggins attacked a black Sudanese male without provocation, breaking the victim’s jaw. During that same incident, Diggins and Leo assaulted another black man who was standing nearby. Witnesses heard Diggins and Leo using racial epithets during the incidents.
In the second incident, which occurred approximately an hour later and approximately 20 miles away in Biddeford, defendant Diggins and Leo drove in Leo’s truck into the parking lot of a convenience store, where Diggins got out of the truck and approached a black man who was walking toward the store’s entrance. Diggins directed a racial slur at the man and distracted him while Leo got out of the truck and sucker-punched him in the jaw, knocking him to the ground. The unprovoked attack broke the victim’s jaw in several places.
Leo pleaded guilty on Feb. 25, admitting that he conspired to commit hate crimes and that he committed the hate crime against the victim in Biddeford.
Diggins faces up to 10 years in prison and a $250,000 fine on each of the two hate crime charges, and five years in prison and a $250,000 fine on the conspiracy charge. Leo faces the same penalties for the hate crime charge and conspiracy charge to which he pleaded guilty. They will be sentenced after the preparation of presentence investigation reports by the U.S. Probation Office.
The Biddeford Police Department and the FBI investigated the case. The case was prosecuted by Assistant U.S. Attorney Sheila Sawyer and Civil Rights Division Trial Attorney Timothy Visser.
For more information about the Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
Biddeford Man Convicted of Hate Crimes AssaultsRead the Press Release
Portland, Maine: Following a three-day jury trial, Maurice Diggins, of Biddeford, Maine, was convicted today of conspiring to commit hate crimes and of actually committing hate crimes by engaging in a series of racially motivated attacks against black men in Maine, announced Assistant Attorney General Eric Dreiband of the Civil Rights Division and U.S. Attorney Halsey B. Frank of the District of Maine.
“Today’s conviction demonstrates that the Department of Justice will not tolerate horrific racially-motivated attacks,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The jury’s verdict reflects the sad fact that racism and violence remain linked more than 150 years after our nation abolished slavery. The Department of Justice will continue forcefully to prosecute race-based violations of our federal civil rights laws.”
“Today, a jury found Maurice Diggins guilty of committing three hate crimes,” said U.S. Attorney Halsey B. Frank of the District of Maine. “At trial, the government proved that Diggins conspired with his nephew, Dusty Leo, to brutally assault two men because they were black. In both cases, the men’s jaws required surgery to repair extensive damage. Diggins’ and Leo’s behavior was despicable. It violated America’s and Maine’s core values that all men are created equal, that they are entitled to pursue their lives without racial discrimination, and entitled to be safe from being assaulted because of the color of their skin. I am grateful to the jurors for their service, to the trial team for ably presenting the case, and to the federal defender for providing Mr. Diggins with the type of vigorous defense that our system provides to all defendants.”
According to evidence presented at trial, on April 15, 2018, defendant Diggins and his nephew, Dusty Leo (who previously pled guilty in connection with this case), committed two separate racially motivated assaults, one in Portland and one in Biddeford. In the Portland assault, which occurred just before 1:00 a.m., Diggins attacked a black Sudanese male without provocation, breaking the victim’s jaw. During that same incident, Diggins and Leo assaulted another black man who was standing nearby. Witnesses heard Diggins and Leo using racial epithets during the incidents.
In the second incident, which occurred approximately an hour later and approximately 20 miles away in Biddeford, defendant Diggins and Leo drove in Leo’s truck into the parking lot of a convenience store, where Diggins got out of the truck and approached a black man who was walking toward the store’s entrance. Diggins directed a racial slur at the man and distracted him while Leo got out of the truck and sucker-punched him in the jaw, knocking him to the ground. The unprovoked attack broke the victim’s jaw in several places.
Leo pleaded guilty on February 25, admitting that he conspired to commit hate crimes and that he committed the hate crime against the victim in Biddeford.
Diggins faces up to 10 years in prison and a $250,000 fine on each of the two hate crime charges, and five years in prison and a $250,000 fine on the conspiracy charge. Leo faces the same penalties for the hate crime charge and conspiracy charge to which he pleaded guilty. They will be sentenced after the preparation of presentence investigation reports by the U.S. Probation Office.
The Biddeford Police Department and the FBI investigated the case. The case was prosecuted by Assistant U.S. Attorney Sheila Sawyer and Civil Rights Division Trial Attorney Timothy Visser.
For more information about the Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
Austin Man Sentenced to Federal Prison for Assaulting a Federal OfficerRead the Press Release
In Austin today, a federal judge sentenced 21-year-old Candido Rodriguez, III, to 92 months in federal prison for assaulting a Transportation Security Administration (TSA) security officer last year, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, U.S. District Judge Lee Yeakel ordered that Rodriguez be placed on supervised release for a period of three years after completing his prison term.
“I am pleased with the sentence in this case. We won’t tolerate violence against law-enforcement officers in Texas,” stated U.S. Attorney Bash.
On November 5, 2019, the victim was driving to work at the Austin Bergstrom International Airport and stopped at a traffic light just before the airport entrance. According to the factual basis filed in this case, to which Rodriguez admitted in court, Rodriguez approached the victim, who was behind the wheel of the vehicle with the driver’s side window open several inches. The victim was wearing an official TSA uniform with TSA insignia plainly visible. Rodriguez engaged in a brief verbal exchange with the victim, during which he referred to the victim being an “officer.” The victim responded by stating that the victim was employed as a security officer at the airport. Rodriguez then forcibly opened the driver’s side door of the vehicle and began striking, scratching and cutting the victim’s head, face and right hand with a piece of broken glass or other sharp object.
The victim ultimately escaped from Rodriguez by accelerating through the intersection and onto airport property. A number of stitches were necessary to close cuts on the victim’s face and right hand.
On December 18, 2019, Rodriguez pleaded guilty to one count of assaulting a federal officer.
The FBI conducted this investigation. Assistant U.S. Attorney Alan M. Buie prosecuted this case on behalf of the government. The U.S. Attorney’s Office appreciates the contributions of the Austin Police Department and the Travis County Sheriff’s Office.
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Athens Man Sentenced to 20 Years in Prison for Trafficking MethamphetamineRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced an Athens man for conspiracy to distribute methamphetamine, announced U.S. Attorney Jay E. Town, DEA Assistant Special Agent in Charge Clay Morris and Bureau of Alcohol Tobacco and Firearms Special Agent in Charge Marcus Watson.
U.S. District Judge Madeline H. Haikala sentenced David Matthew Pugh, to 20 years in prison for his role in a drug conspiracy in Morgan, Madison, and Lauderdale counties between January 2017 and July 2017. In August 2018, Pugh pled guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine. Pugh also pled guilty to possession with the intent to distribute 50 grams or more of methamphetamine, and to possessing multiple firearms in furtherance of a drug-trafficking crime and being a felon in possession of a firearm.
“Those individuals who engage in drug trafficking belong in federal prison,” Town said. “This sentence assures the citizens of the Northern District that yet another peddler of this poison has been removed from the community and that criminals who plague our streets with drugs and guns will continue to be targets of federal prosecution.”
“This is yet another example of DEA’s unwavering commitment to keeping drug dealers from selling poison in our communities,” Morris said. “Drugs and guns are a deadly combination that often end with violent acts. This sentence should send a resounding message to all drug dealers in Alabama. We will target you, investigate you, and ensure that you go to prison in order to make our communities safe.”
ATF Special Agent in Charge Marcus Watson stated “ATF’s crime gun intelligence partnerships focused on the prohibited individual who used firearms to facilitate violent crimes.”
The DEA and ATF investigated the case, along with the Madison-Morgan County Strategic Counter-Drug Team (STAC), which Assistant U.S. Attorney Robert J. Becher, Sr. prosecuted.
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.
Associates of Western Addition “CDP” Gang Convicted of RICO Conspiracy and AccessoryRead the Press Release
SAN FRANCISCO – Earlier today, a federal grand jury convicted Barry Gilton, a/k/a “Prell,” of participating in a racketeering conspiracy, announced United States Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The jury further found Gilton’s codefendant, Lupe Mercado, guilty of being an accessory to a murder committed by members of the San Francisco gang referred to as the Central Divisadero Players, a/k/a “Central Divis Playas” or “CDP.” The guilty verdicts follow a four-week jury trial before the Honorable William H. Orrick, U.S. District Judge, and represent the tenth and eleventh convictions in this racketeering case.
“The jury found that Gilton and Mercado participated in or assisted gang activity on San Francisco streets,” stated U.S. Attorney Anderson. “The jury’s verdict adds to nine prior convictions in the same case. Although much more work remains to be done, the verdicts are another significant step forward in dismantling a street gang that has imposed itself on San Francisco for far too long.”
“Gang members operate outside of the rule of law that allows our community to function as it should,” said FBI Special Agent in Charge Bennett. “Members of CDP showed no hesitation to use violence to further their activities, and as public servants sworn to protect our community we cannot and will not let that happen unchallenged.”
Evidence at trial showed that Gilton, 46, and Mercado, 45, both of San Francisco, Calif., associated with members of CDP. The evidence showed that CDP was a racketeering organization that worked collectively with other gangs in the Western Addition of San Francisco to preserve and protect the power, territory, reputation, and profits of the enterprise using intimidation, violence, assaults, and murder. CDP members and associates committed numerous crimes, including murder, attempted murder, pimping, robbery, firearms offenses, witness intimidation, drug trafficking, and the enticement of individuals to travel in interstate commerce for prostitution.
The eleven-defendant, 22-count second superseding indictment filed on August 14, 2014, in this case charged Gilton and Mercado with murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(1); use, possession, brandishing, or discharge of a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A); and use or possession of a firearm in a murder, in violation of 18 U.S.C. § 924(j). Gilton was also charged with racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); and Mercado was also charged as an accessory after the fact, in violation of 18 U.S.C. § 3. The jury convicted Gilton of the racketeering conspiracy and Mercado of being an accessory after the fact of a murder.
Judge Orrick has not yet scheduled Gilton’s and Mercado’s sentencing.
Gilton and Mercado face maximum statutory penalties of life in prison and 15 years, respectively. 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.
The other nine defendants in this case have already been convicted and sentenced. Charles Heard (a/k/a “Cheese”) was sentenced to four life sentences; Jaquain Young (a/k/a “Loc”) was sentenced to four life sentences, plus additional terms of years; Adrian Gordon (a/k/a “Tit”) was sentenced to 27 years in prison; Alfonzo Williams (a/k/a “Fonz” or “Relly”) was sentenced to 25 years in prison; Antonio Gilton (a/k/a “TG” or “Tone”) was sentenced to 22 years in prison; Reginald Elmore (a/k/a “Fat Reg”) was sentenced to 22 years in prison; Esau Ferdinand (a/k/a “Sauce”) was sentenced to 20 years in prison; Monzell Harding, Jr. was sentenced to 12 years in prison; and Paul Robeson (a/k/a “P World”) was sentenced to six years in prison.
The U.S. Attorney’s Office’s Organized Crime Strike Force is prosecuting the case. The prosecution is the result of joint investigation by the FBI; the San Francisco Police Department’s Gang Task Force, Homicide Detail, Robbery Detail, Special Victims Unit, and the Northern, Park, and Bayview Stations; the San Francisco District Attorney’s Office; and the San Pablo Police Department.
Arizona Man Pleads Guilty to Drug ChargeRead the Press Release
PITTSBURGH – Krystian Zarate pleaded guilty to conspiring to distribute five kilograms or more of cocaine, United States Attorney Scott W. Brady announced today.
Zarate, age 28, previously resided in Santa Cruz, Arizona. He pled guilty before United States District Judge J. Nicholas Ranjan. Judge Ranjan scheduled sentencing to occur on July 16, 2020, at 2:00 p.m.
The law provides for a maximum sentence of at least 10 years and up to life in prison and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
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.
Alden Man Arrested, Charged with Possession and Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that Brandon Kidder, 35, of Alden, NY, was arrested and charged by complaint with possession and receipt of child pornography. The charges carry a mandatory minimum penalty of five years in prison, and a maximum of 20 years.
Assistant U.S. Attorney Caitlin M. Higgins, who is handling the case, stated that according to the complaint, in August 2019, the FBI received information that a local IP address was accessing Tor, a computer network available to Internet users designed specifically to facilitate anonymous communication over the Internet to access child pornography. The IP address was subsequently traced to the defendant.
On January 28, 2020, the FBI executed a search warrant at Kidder’s Sandridge Road Apartment in Alden. Investigators seized two Samsung smartphones, a Thermaltake desktop computer, a Dell laptop computer, and two thumb drives. The two computers were submitted to the Western New York Regional Computer Forensics Laboratory (RCFL) for a full forensic exam. An initial search of the Samsung phones and thumb drives recovered videos and images of child pornography, some including infants and depictions of violence.
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on March 10, 2020.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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9 March 2020
Washington County Man Pleads Guilty to Cocaine and Methamphetamine Distribution ChargesRead the Press Release
ALBANY, NEW YORK – Nestor Cordero-Hernandez, age 43, of Fort Ann, New York, pled guilty on Friday to conspiring to distribute more than 500 grams of cocaine and more than 50 grams of methamphetamine. The announcement was made by United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Cordero-Hernandez admitted that between September 2018 and November 2019, he agreed with others to participate in a drug trafficking conspiracy that distributed cocaine and methamphetamine. In furtherance of this drug trafficking conspiracy, he distributed over 600 grams of methamphetamine and 450 grams of cocaine in Fort Ann and elsewhere.
Sentencing is scheduled for July 2, 2020, at which time Cordero-Hernandez faces at least 10 years and up to life in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
U.S. Attorney Davis Announces New Criminal ChiefRead the Press Release
BOISE – Assistant U.S. Attorney Justin D. Whatcott will be the new Criminal Chief for the U.S. Attorney’s Office for the District of Idaho, announced U.S. Attorney Bart M. Davis. He succeeds Assistant U.S. Attorney Aaron Lucoff as the Criminal Chief. Mr. Lucoff was the Criminal Chief for over nine years. At Mr. Lucoff’s request, U.S. Attorney Davis allowed him to step down as Criminal Chief so that he could pursue other opportunities within the Department of Justice. Mr. Whatcott will become the Criminal Chief on March 15, 2020.
Mr. Whatcott is a graduate of the University of Idaho College of Law. There, he served as an intern at the Latah County Prosecutor’s Office and was a dean’s list student. After graduating law school in 2001, he joined the Blaine County Prosecuting Attorney’s Office, where he handled a number of major felony cases. In September 2005, Mr. Whatcott joined the Ada County Prosecutor’s Office. In December 2005, he joined the Idaho Attorney General’s Office, serving as Lead Deputy Attorney General in the Special Prosecutions unit. In February 2009, he became the second Gang Special AUSA to work for the U.S. Attorney’s Office for the District of Idaho. In September 2010, he took the oath of office to become an Assistant United States Attorney. He served as the District of Idaho’s Immigration Coordinator, Project Safe Childhood Coordinator, and Computer Hacking and Intellectual Property Coordinator. Mr. Whatcott has also been an active criminal litigator throughout his tenure with the office, and will continue to litigate cases in addition to filling the role of Criminal Chief.
“It has been a privilege to have Aaron guide our criminal division for nearly a decade. His service to our District was remarkable and I will always be grateful for the contributions he has made to better our office,” said U.S. Attorney Davis. “I am excited about this new opportunity for Justin to lead our criminal division. He is a natural leader and is well respected within the office. I look forward to working alongside him.”
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U.S. Attorney Attends Department of Justice 2020 National Opioid SummitRead the Press Release
U.S. Attorney Ron Parsons, DEA Acting Administrator Uttam Dhillon and AUSA Jennifer MammengaWASHINGTON D.C. – United States Attorney Ron Parsons attended the Department of Justice’s National 2020 Opioid Summit held on March 4-6, 2020, at the Robert F. Kennedy Building in Washington D.C. The summit brought together U.S. Attorneys, prosecutors, law enforcement officials, health professionals, and other experts from across the country to discuss strategies for confronting and solving the opioid crisis. Featured speakers included U.S. Attorney General William Barr, Deputy Attorney General Jeffrey Rosen, First Lady Melania Trump, Uttam Dhillon (Acting Administrator of the Drug Enforcement Administration), and Sam Quinones (Journalist and Author of Dreamland). Assistant U.S. Attorney Jennifer Mammenga, Opioid Coordinator for the District of South Dakota, was also in attendance at the summit.
Two Men Indicted for Vandalizing Archaeological ResourceRead the Press Release
LAS VEGAS, Nev. – A federal grand jury indicted two Elko residents for allegedly conspiring to vandalize U.S. government property, including an archaeological site, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Bureau of Land Management (BLM)-Nevada State Director Jon Raby.
Daniel Plata, 25, and Jonathan Pavon, 25, were each charged with one count of conspiracy, one count of destruction of government property, and one count of unauthorized damage, alteration or defacement of archaeological resources. The defendants made their initial court appearance on March 6, before U.S. Magistrate Judge Carla Baldwin in Reno.
“This case reinforces the importance of law enforcement working together to maintain Nevada’s landscape, natural resources, and cultural artifacts for everyone to enjoy,” said U.S. Attorney Trutanich.
"I would like to thank all of our inter-agency partners for their continued efforts to protect the archaeological resources on public lands that are so critically important to our tribal nations and the American public, including the efforts to prosecute those who vandalize and destroy these important sites," said State Director Raby.
According to allegations contained in the indictment, on September 19, 2019, Pavon posted a video on his Instagram page showing Plata vandalizing: (a) property near the Schelbourne rest stop in White Pine County, Nevada; (b) property in McGill and Lund, Nevada; and (c) rock formations within the White River Narrows Archeological District in the Basin and Range National Monument. The indictment alleges that Pavon acted as a lookout while Plata spray-painted on rock formations that contained petroglyphs.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is a product of an investigation by the BLM. Special Assistant U.S. Attorney Rachel Kent is prosecuting the case.
To report natural resources crimes on BLM-managed public lands, please call the BLM tip line at (833) 660-5771 or email [email protected].
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Two Lynn Men Plead Guilty to Drug and Firearm PossessionRead the Press Release
BOSTON – Two Lynn men pleaded guilty today in federal court in Boston in connection with drug and firearm charges.
Carlos Lopez, aka “C-Lo,” 31, pleaded guilty to one count of possession with intent to distribute heroin and marijuana, one count of being a felon in possession of firearms and ammunition and one count of possession of firearms in furtherance of drug trafficking crimes. Dionis Lopez, aka “Kuku,” 29, pleaded guilty to one count of possession with intent to distribute fentanyl, cocaine and marijuana, one count of possession of a firearm with an obliterated serial number and one count of possession of firearms in furtherance of drug trafficking crimes. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for July 13, 2020. The defendants were arrested and charged in September 2018.
On Nov. 14, 2017, Carlos Lopez possessed and intended to distribute heroin and marijuana while in possession of a Bersa, Model Thunder 380, .380 caliber pistol and a Beretta, Model Px4, 9mm pistol with various rounds of 9mm ammunition. Due to a previous conviction for a crime punishable by more than one year in prison, Carlos Lopez was prohibited from possessing a firearm or ammunition. Dionis Lopez possessed and intended to distribute fentanyl, cocaine and marijuana while in possession of a Glock, Model 27, .40 caliber pistol with an obliterated serial number and a Glock, Model 19, 9 mm pistol.
The charge of possession with intent to distribute heroin and marijuana provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of $1 million. The charge of being a felon in possession of firearms and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession of firearms in furtherance of drug trafficking crimes provides for a mandatory sentence of five years in prison to be served consecutive to any other term imposed and up to three years of supervised release. The charge of possession of a firearm with an obliterated serial number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lynn Police Chief Michael Mageary made the announcement today. Assistant U.S. Attorney Timothy Moran, Deputy Chief of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Two Commercial Flooring Executives Plead Guilty to Rigging Bids in Violation of Federal Antitrust LawsRead the Press Release
Two commercial flooring executives, Robert A. Patrey Jr. and Kenneth R. Smith, pleaded guilty for their role in an antitrust conspiracy to rig bids and fix prices for commercial flooring services and products sold in the United States, the Department of Justice announced. The defendants are cooperating with the Justice Department’s ongoing investigation.
According to plea agreements filed in U.S. District Court in Chicago, Illinois, from at least as early as 2009 until at least June 22, 2017, the defendants engaged in a conspiracy to suppress and eliminate competition in the commercial flooring market by agreeing with other individuals and companies to submit “comp,” or complementary, bids so that the designated company would win the bidding. Smith’s plea today is the fifth plea in the investigation. Patrey entered a guilty plea on Feb. 27, 2020.
“The recent guilty pleas are the latest in the government’s investigation, and they won’t be the last,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “This scheme among commercial flooring contractors in the Chicago area victimized American taxpayers by targeting public institutions, including vulnerable public schools operating in a resource-constrained environment. The Antitrust Division and its law enforcement partners are committed to protecting taxpayer dollars and bringing to justice executives involved in these harmful bid-rigging cartels.”
“These defendants illegally manipulated the bidding process, victimizing American taxpayers and vulnerable institutions in the process,” said Special Agent in Charge Emmerson Buie, Jr. of the Federal Bureau of Investigation’s Chicago Field Office. “The FBI and its partners will continue to protect our communities by holding companies and their executives responsible for bid-rigging schemes.”
Individual violations of the Sherman Act carry maximum penalties of 10 years in prison and a $1 million criminal fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The guilty pleas are the result of an ongoing federal antitrust investigation into bid rigging, price fixing, and other anticompetitive conduct in the commercial flooring industry, conducted by the Antitrust Division’s Chicago Office and the FBI’s Chicago Field Office. Last week, in a case arising out of this investigation, Carter Brett, an account executive for a large flooring manufacturer, pleaded guilty to two counts related to a bid-rotation conspiracy and a money-laundering conspiracy.
Anyone with information on bid rigging, price fixing, or other anticompetitive conduct related to the commercial flooring industry should contact the Antitrust Division’s Chicago Office at 312-984-7200, contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Third Defendant Sentenced to Prison for Counterfeiting $100 BillsRead the Press Release
KANSAS CITY, KAN. – John Sebestyen, 51, Mission Viejo, Calif., was sentenced today to 37 months in prison for “washing” $1 bills to produce counterfeit $100 bills, U.S. Attorney Stephen McAllister said. In addition, the defendant was ordered to pay $19,900 in restitution.
Sebestyen was the third of three defendants sentenced in the case. Two co-defendants already were sentenced: Courtney Campbell, 38, Bouse, Ariz. (37 months, $18,100 restitution) and Steven Shane Escamilla, 31, Laguna Hills, Calif. (27 months, $19,900 restitution).
According to documents filed in court, an employee at a hotel in Overland Park contacted police to report that the defendants, who were staying at the hotel, were acting suspiciously. They deposited trash in containers away from their rooms that contained evidence of criminal activity.
The defendants washed the ink off $1 bills and reprinted them to look like $100 bills. They used the counterfeit bills to purchase items from retailers in the Kansas City metro area including Target and Ulta Beauty. In some cases, they returned items and received refunds in genuine currency.
McAllister commended the Overland Park Police Department, the U.S. Secret Service and Assistant U.S. Attorney Leon Patton for their work on the case.
Springfield Man Pleads Guilty to Meth, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man pleaded guilty in federal court today to illegally possessing firearms and methamphetamine to distribute.
Jacob Winterhawk Ryder, 38, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of possessing methamphetamine to distribute and one count of possessing firearms in furtherance of a drug-trafficking crime.
Springfield police officers noticed suspicious behavior and approached Ryder, the driver of a Ford Ranger that was parked beside another vehicle in a parking lot, on Jan. 21, 2016. When it appeared as if Ryder was attempting to conceal something underneath the front seat, an officer directed him to step out of his vehicle. The officer saw a live round for a 9mm handgun lying on the driver’s seat.
Police officers searched Ryder’s vehicle and found a loaded Walther .380-caliber semi-automatic pistol underneath the armrest, a loaded New England Firearms 20-gauge sawed-off shotgun under the driver’s seat, and more ammunition. Officers also found a black cloth bag with four Ziploc baggies that contained a total of 63.93 grams of pure methamphetamine, a Ziploc baggie that contained 17.8 grams of pure methamphetamine, a Rubbermaid container that contained 297.6 grams of pure methamphetamine, two LSD tabs, a Ziploc baggie containing mushrooms, a Ziploc baggie with unknown pills, and $1,175.
Under federal statutes, Ryder is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Jessica R. Keller. It was investigated by the Springfield, Mo., Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Sissonville Man Pleads Guilty to Role in Federal Meth ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Sissonville man pled guilty in federal court for his role in a conspiracy that involved large quantities of methamphetamine which were transported from Akron and sold in West Virginia, announced United States Attorney Mike Stuart. Michael Eugene Hicks, 36, pled guilty to conspiracy to distribute 50 grams or more of methamphetamine and possession with intent to distribute 500 grams or more of methamphetamine.
“Hicks is one of 21 individuals indicted for their roles in a large meth trafficking conspiracy,” said United States Attorney Mike Stuart. “My office will use every available resource to shut down the pipeline of deadly drugs coming into West Virginia, prosecute those responsible to the fullest extent of the law, and protect the people of our state.”
Hicks admitted that between the July and September of 2019, he participated in a conspiracy with multiple individuals to distribute methamphetamine in the Sissonville and Charleston areas. During the conspiracy, Hicks repeatedly obtained large quantities of methamphetamine which were transported from Akron to West Virginia. Hicks would in turn distribute the methamphetamine to various customers and admitted that he knew some of his customers intended to re-distribute the methamphetamine they were purchasing.
On August 5, 2019, Hicks traveled from West Virginia to the Canton, Ohio area to acquire additional methamphetamine. After receiving the methamphetamine in a shopping mall parking lot, Hicks was stopped by the Ohio State Highway Patrol in Canton. Hicks was found to be in possession of approximately 5 pounds of methamphetamine that he was transporting to West Virginia to sell.
As part of his plea, Hicks admitted that he was responsible for distributing up to 5 kilograms of methamphetamine during the conspiracy.
Hicks faces 10 years to life in prison when sentenced on June 29, 2020.
This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ona Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
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Savannah man claiming to be a 'sovereign citizen' convicted of illegally carrying a firearmRead the Press Release
SAVANNAH, GA: A federal jury took less than 15 minutes to find a so-called ‘sovereign citizen’ guilty of illegally carrying a gun.
Michael Levant Williams, 36, of Savannah, was found guilty after a two-day trial in U.S. District Court in Savannah, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a penalty of up to 10 years in prison, followed by a period of supervised release. There is no parole in the federal system.
“For the second time this year, a so-called ‘sovereign citizen’ has tried, and failed, to excuse his illegal actions in the Southern District by claiming to be above the law,” said U.S. Attorney Christine. “No one is above the law – especially those claiming fictitious legal status in an attempt to circumvent their guilt for repeated criminal behavior.”
Williams, who had a previous federal felony conviction for Possession with Intent to Distribute Controlled Substances, was arrested during a traffic stop by Savannah Police officers Nov. 22, 2018 on a traffic violation. A firearm was recovered during a subsequent search. As a convicted felon, he is prohibited from possessing weapons.
After his arrest, and during subsequent legal proceedings, Williams acted as his own attorney and claimed to be a “sovereign citizen” who was immune from the law. In an unrelated case in U.S. District Court in January, an Augusta man who similarly claimed “sovereign citizen” status was sentenced to 25 years in prison for fraudulent legal filings that targeted federal officials.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Joshua Bearden and Karl Knoche.
San Bernardino County Man Who Brought Rifle into Restaurant after Being Denied Alcohol Sentenced to 10 Years in Federal PrisonRead the Press Release
LOS ANGELES – A convicted felon who brought an assault rifle into a restaurant and brandished it at the manager after employees refused to serve him an alcoholic beverage was sentenced today to 120 months in federal prison.
Francisco Alvarado Felix, 33, of Hesperia, was sentenced by United States District Judge R. Gary Klausner.
Felix and a friend visited a BJ’s Restaurant and Brewhouse in Victorville during the early morning hours of December 29, 2018. He attempted to order an alcoholic drink, but BJ’s employees declined to serve him because he did not have proper identification. When restaurant employees later saw Felix sipping from his friend’s alcoholic beverage, the manager warned Felix he was not allowed to drink alcohol without identification and he would be forced to leave the restaurant if he did it again.
Felix then went to his car and returned with a concealed AR-15 rifle. He flashed the rifle at the manager and the two ended up in a fight on the ground, which resulted in one round being discharged from the rifle. No one was hit. Felix fled the scene with the rifle and hid until the next morning when officers executed a search warrant and arrested him at his house. During the search, officers recovered the AR-15 rifle, ammunition, and, on Felix’s person, 37.6 grams of methamphetamine packaged in two separate baggies.
In August 2019, Felix pleaded guilty to one count of being a felon in possession of a firearm and ammunition, and one count of possession with intent to distribute methamphetamine. Felix previously was convicted in San Bernardino County Superior Court for felony DUI in 2014 and of three separate felony methamphetamine-related charges in 2015 and 2016.
At the time of the scuffle with the manager at BJ’s Restaurant, Felix was out on bail in a state case. The state case stemmed from a December 5, 2018 incident at a Highland casino when a valet parking attendant found a semi-automatic pistol attached to the front console of Felix’s car next to the driver’s seat. Felix was subsequently charged by the United States Attorney’s Office in that matter, and he has pleaded guilty to one count of being a felon in possession of a firearm and ammunition. His next court hearing in that matter is March 16 before United States District Judge Dale S. Fischer, who may impose a sentence at that time. Felix faces a statutory maximum sentence of 10 years in federal prison in this second firearms-related case.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the San Bernardino County Sheriff’s Department investigated this case.
This matter was prosecuted by Assistant United States Attorney Jerry C. Yang of the Riverside Branch Office.
Primgar Man Sentenced to Federal Prison for Theft of 55 Guns.Read the Press Release
A convicted felon who possessed stolen guns was sentenced on March 6, 2020, to more than a year in federal prison.
Thomas Robert Ginger, Jr., age 45, from Primgar, Iowa, received the prison term after a guilty plea to one count of possession of a firearm by a felon and one count of possession of a stolen firearm. Ginger was previously convicted of felony sponsoring a gathering for use of drugs. Ginger also has four convictions for OWI.
Information provided by the United States at the arraignment, change of plea and sentencing hearings, showed that when Ginger learned of his father’s death, he left his grieving family at the hospital, drove nearly two miles to his mother’s home, and kicked in the exterior door. Once inside, Ginger then broke through another door into an interior “gun room” and stole 55 firearms that had belonged to his father’s Federal Firearm Licensee business. Ginger also took $7,700 in cash and a briefcase that contained a coin collection. He hid the guns in a car at one person’s home and hid the money underneath a sink at his home. When law enforcement confronted Ginger about the crime he initially lied about his whereabouts and involvement. Later, after the weapons were discovered, he confessed.
Ginger was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Ginger was sentenced to 18 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Ginger will self-report to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from our Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the O’Brien (Iowa) County Sheriff’s Office, and the Sanborn, Iowa Police Department. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4056.
Follow us on Twitter @USAO_NDIA.
Plainville Man Charged with Producing Child PornographyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Jason J. Molina, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), today announced that KYLE FASOLD, 49, of Plainville, was arrested on Friday and charged with child pornography offenses.
After his arrest, Fasold appeared before U.S. Magistrate Judge Thomas O. Farrish in Hartford and was ordered detained. Judge Farrish scheduled a detention hearing for tomorrow at 10:00 a.m.
As alleged in court documents and statements made in court, on March 6, 2020, HSI special agents, with the assistance of the Plainville Police Department and Connecticut State Police, executed a court-authorized search of Fasold’s residence and seized numerous electronic items, including an Apple iPhone X. Preliminary forensic analysis of the iPhone revealed multiple video files and an image file of girls changing in a locker room.
It is alleged that Fasold produced the videos and image himself.
The complaint charges Fasold with production and attempted production of child pornography, and possession of child pornography. Production of child pornography carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and possession of child pornography carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney Durham noted that this investigation is in its early stages and investigators are working to identify and notify victims.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Plainville Police Department and Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorneys Nancy V. Gifford and Sarala V. Nagala.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Pittsburgh Man on Parole Sentenced to 6+ Years for Conspiring to Distribute Heroin and a Fentanyl AnalogueRead the Press Release
PITTSBURGH – Tyrone Swan was sentenced to six years and three months (75 months) in federal prison for conspiring to distribute heroin and para-fluoroisobutyryl fentanyl in 2018, United States Attorney Scott W. Brady announced today.
Swan, age 30 of Pittsburgh, was sentenced by United States District Judge Cathy Bissoon. Judge Bissoon also sentenced Swan to serve six years of supervised release following his prison sentence. Swan was on state parole from a prior prison sentence for voluntary manslaughter and aggravated assault when he conspired to distribute heroin and para-fluoroisobutyryl fentanyl in 2018.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Jefferson Hills Police Department, the Pleasant Hills Police Department, the Allegheny County District Attorney’s Office Narcotics Enforcement Team, the Federal Bureau of Investigation, and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the conviction and sentence in this case.
Pittsburgh Man Pleads Guilty to Running a Methamphetamine Pill Pressing OperationRead the Press Release
PITTSBURGH – A resident of Pittsburgh, PA, has pleaded guilty to federal narcotics charges, United States Attorney Scott W. Brady announced today.
Zachery Hyde, age 27, pleaded guilty to one count of conspiracy to possess with the intent to distribute and distribute 50 grams or more of methamphetamine, possession with intent to distribute 50 grams or more of methamphetamine, and maintaining a drug involved premises before United States District Court Judge Nicholas Ranjan. Judge Ranjan scheduled his sentencing for June 29, 2020 at 11:00 a.m.
According to information presented to the court, Hyde conspired with other individuals to acquire large quantities of methamphetamine. Hyde sourced the methamphetamine in a variety of ways, including ordering quantities of methamphetamine over the internet and having it shipped to the Pittsburgh area from out of the country. Hyde then used a location in McKees Rocks to press the methamphetamine into pill form for distribution. On December 7, 2017, the Western District of Pennsylvania FBI Opioid Task Force executed a search warrant at a location in McKees Rocks when Hyde and others were present. FBI recovered approximately 447 grams of a mixture of methamphetamine, pill pressing material, drug paraphernalia, and shipping boxes. At a later date, FBI seized a large hydraulic pill press used in connection with the operation. As part of his guilty plea, Hyde agreed to forfeit the pill press.
The law provides for a mandatory minimum sentence of five years in prison and a maximum sentence of not more than 40 years in prison and/or a fine of not more than $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the conviction in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, Stowe-Rox Police Department, and Pennsylvania Attorney General’s Office. The Allegheny Office of the Medical Examiner and Stowe-Rox Police Department also assisted in the prosecution of this case.
Phony Immigration Attorney Who Filed More Than 215 Fraudulent Asylum Applications IndictedRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of a 25-count indictment charging Elvis Harold Reyes (56, Brandon) with 8 counts of mail fraud, 8 counts of making false statements in immigration documents, and 9 counts of aggravated identity theft. If convicted, Reyes faces a maximum penalty of 20 years in federal prison for each count of mail fraud, up to 15 years’ imprisonment for each false statement count, and a mandatory, consecutive term of two years’ imprisonment for the aggravated identity theft counts.
According to the
indictment , Reyes, who owned and operated EHR Ministries Inc., portrayed himself as an immigration attorney, pastor, accountant, immigration expert, former immigration official, and former federal law enforcement officer. Reyes is not and has never been a licensed attorney. Reyes targeted undocumented immigrants from Spanish-speaking countries who were seeking Florida driver licenses and work authorization. He gave false, inaccurate, and incomplete legal and immigration advice to victims in order to induce them to retain his services and those of EHR Ministries.Victims retained and paid Reyes to represent them in immigration-related matters before U.S. Citizenship and Immigration Services (USCIS) and other agencies. Reyes allegedly filed fraudulent immigration applications in the victims’ names, seeking asylum relief and withholding-of-removal protections provided for under the United Nations Convention Against Torture. In doing so, Reyes falsified answers to questions in the asylum applications—fabricating stories about threats, persecution, and the applicants’ fear of returning to their native countries. Reyes did not inform the victims of the answers that he had provided on their behalf. He also did not inform the victims about the legal, administrative, and other immigration-related consequences that might follow from filing for asylum relief or for Convention Against Torture protection.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Reyes is believed to have filed more than 215 fraudulent applications, with intended losses to victims exceeding $1 million. Any person who was, or knows of someone who may have been, a possible victim is urged to contact the Department of Homeland Security, Homeland Security Investigations, at 1-866-DHS-2ICE or http://www.ice.gov/webform/hsi-tip-form.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, the United States Citizenship and Immigration Service, and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Frank Murray.
Orlando Man Indicted for False Statements During Purchase of FirearmRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of a four-count indictment charging Wilmer Eduardo Mejia-Palacios (36, Orlando) with fraudulently making a false statement to a licensed firearm dealer. If convicted, Mejia-Palacios faces up to 5 years in federal prison for each count.
According to court documents, Mejia-Palacios attempted to purchase firearms on four separate occasions in Orlando. In connection with those attempted purchases, Mejia-Palacios completed a firearms transaction record claiming that he was a United States citizen and that he was not illegally or unlawfully in the United States. Those claims were false.
This case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Terry B. Livanos.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Nixa Man Pleads Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Nixa, Missouri, man pleaded guilty in federal court today for distributing methamphetamine he received in the mail from California.
Jerry D. Thornton, 46, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to his role in a conspiracy to distribute methamphetamine.
Thornton admitted that he received multiple pounds of methamphetamine through the mail from a source in California from Dec. 8, 2018, to Feb. 5, 2019. He then distributed the methamphetamine to others in southwest Missouri. Thornton received and distributed at least 11.34 kilograms of methamphetamine.
A confidential source told investigators that Thornton received approximately one shipment of methamphetamine each week, and each package contained about five pounds. On Feb. 5, 2019, postal inspectors intercepted a parcel being shipped to Thornton’s address, which contained 990.3 grams of methamphetamine. Inspectors conducted a controlled delivery of a duplicate package, which contained rock salt, to Thornton’s residence.
When the package was retrieved from his porch, officers executed a search warrant of the residence. During a search of Thornton’s residence, agents found a Ruger .22-caliber semi-automatic pistol in the drawer of a bedside table and a loaded Hi-Point 9mm semi-automatic rifle in the garage.
Under federal statutes, Thornton is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Jessica R. Keller. It was investigated by the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Nixa, Mo., Police Department.
Newark Man Sentenced to 20 Years in Prison for Union County CarjackingRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 240 months in prison for committing a gunpoint carjacking in Union County, New Jersey, U.S. Attorney Craig Carpenito announced.
Hasson Thomas, 30, previously pleaded guilty before U.S. District Judge John Michael Vazquez to superseding information charging him with one count of carjacking, one count of possession of a firearm by a previously convicted felon, and one count of possession of a firearm in furtherance of a crime of violence. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On the evening of Aug. 18, 2018, Thomas approached a parked vehicle occupied by two people on Chestnut Street in Roselle Park, New Jersey. Thomas entered the vehicle and pointed a firearm at the two occupants while ordering them to exit the vehicle. After ordering the victims out of the vehicle, Thomas drove from the scene. Roselle Park Police in the area attempted to pursue Thomas as he fled the scene at a high rate of speed shortly before crashing.
In addition to the prison term, Judge Vazquez sentenced Thomas to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Lyndsay V. Ruotolo; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Roselle Park Police Department, under the direction of Chief Daniel J. McCaffery, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the Organized Crime and Gangs Unit and Jamel Semper, Chief of the U.S. Attorney’s Office’s Violent Crimes Unit.
Defense counsel: Chester Keller Esq., Assistant Federal Public Defender (Newark)
Mexican National Who Ran Stash House and Laundered Money for Group Linked to Sinaloa Cartel Sentenced to over 5 Years in PrisonRead the Press Release
LOS ANGELES – A Mexican National who was charged in the first major narcotics trafficking indictment resulting from an investigation by the Los Angeles Strike Force was sentenced today to 63 months in federal prison for his role in an international narcotics network that transported 21 pounds of pure methamphetamine across the United States-Mexico border on behalf of a drug trafficking organization linked to the Sinaloa Cartel.
Edgar Limon, 39, was sentenced by United States District Judge Dale S. Fischer, who also ordered Limon to pay a $17,500 fine.
Limon pleaded guilty on July 17, 2019, to participating in a drug trafficking conspiracy and money laundering. Limon was one of 22 defendants named in a 19-count grand jury indictment that was unsealed in 2017.
The indictment outlines a scheme to import hundreds of pounds of methamphetamine, cocaine and heroin from Mexico into the United States. The narcotics were distributed throughout the country via a network of cartel associates, and the proceeds from the domestic narcotics sales were then funneled back to Mexico, according to the indictment. The drug trafficking organization stored drugs in “stash houses” in the San Gabriel Valley, one of which Limon managed.
During the two-year wiretap investigation, members of the Strike Force seized narcotics with an approximate street value in Los Angeles of more than $6 million. The seizures included approximately 290 pounds of methamphetamine, 280 pounds of cocaine, 30 pounds of heroin, and 81 pounds of marijuana.
Limon is one of nine defendants who were taken into custody pursuant to the 2017 federal grand jury indictment, and he is the last of those to be sentenced. The other eight received prison terms of up to 135 months. Several defendants charged in the indictment remain fugitives and are believed to be in Mexico.
Between June 2014 and April 2016, there was an agreement between Limon and his codefendants to distribute, and to possess with the intent to distribute, methamphetamine in the Los Angeles area. In one instance, Limon transferred more than 3 kilograms of methamphetamine in El Monte, California. Limon also maintained a stash house in Azusa that served as a distribution point for methamphetamine, heroin and cocaine.
In relation to the money laundering offense, Limon and his codefendants conducted financial transactions in the Los Angeles area and elsewhere with the intent to conceal and disguise the nature of the drug trafficking proceeds. Limon received cash that he knew to be drug proceeds, and he conducted financial transactions designed to conceal the money’s illegal origins.
Limon is the brother of Jeuri Limon Elenes, the lead defendant in the indictment who is currently a fugitive and believed to be in Mexico. Limon’s mother and cousin were also charged in the indictment, and both were sentenced to 87 months in federal prison.
The Los Angeles Strike Force investigation was led by the Federal Bureau of Investigation, in partnership with the Drug Enforcement Administration, IRS Criminal Investigation, Homeland Security Investigations, the United States Marshals Service and the Azusa Police Department.
The Los Angeles Strike Force was formed in 2014 to target Mexican drug cartels that use the Los Angeles metropolitan region as a primary hub for the distribution of narcotics across the United States. The goals of the Strike Force are to target high-level narcotics traffickers, disrupt and dismantle the cartels’ narcotics trafficking and related money laundering activities, and arrest and prosecute the cartels’ leaders and operatives.
This case is being prosecuted by Assistant United States Attorney A. Carley Palmer of the Criminal Appeals Section.
Mexican National Removed from U.S. 5 Times Sentenced for Illegal ReentryRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ARMANDO MACHORRO-ROJAS, 43, a citizen of Mexico last residing in Norwalk, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to seven months of imprisonment, time already served, for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, on two occasions in March 2007, Machorro-Rojas had encounters with U.S. Border Patrol that resulted in his voluntary to Mexico. On March 23, 2012, Machorro Rojas was arrested by Norwalk Police and charged with operating a vehicle without a license and other offenses. On April 26, 2012, he was deported from the U.S. to Mexico.
On March 29, 2015, Machorro-Rojas was encountered by U.S. Border Patrol near Bisbee, Arizona. On April 15, 2015, he was again removed to Mexico.
On June 6, 2015, Machorro-Rojas was encountered by U.S. Border Patrol near Santa Teresa, New Mexico. He was subsequently charged in the District of New Mexico with one count of reentry of a removed alien. He pleaded guilty to the offense, was sentenced to time served and, on July 10, 2015, was removed to Mexico.
On May 31, 2019, Machorro-Rojas was arrested by Norwalk Police and charged with burglary in the third degree, risk of injury, larceny in the third degree, breach of peace in the second degree, and interfering/resisting arrest. An immigration detainer that was lodged with the state authorities was not honored, and Machorro-Rojas was released on bond on July 5.
Machorro-Rojas has been detained since August 9, 2019, after he was arrested by Immigration and Customs Enforcement officers. On December 6, 2019, he pleaded guilty to illegal reentry of a removed alien.
Machorro-Rojas will again be removed to Mexico.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorneys Deborah Slater and Brendan Keefe.
Manhattan U.S. Attorney Charges 27 Defendants in Racehorse Doping RingsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), Catherine A. Hermsen, U.S. Food and Drug Administration Assistant Commissioner for Criminal Investigations (“FDA-OCI”), and Troy Miller, Director of Field Operations for U.S. Customs and Border Protection in New York (“CBP”), announced the unsealing of four indictments charging 27 individuals with offenses relating to the systematic and covert administration of illegal performance-enhancing drugs (“PEDs”) to racehorses competing across the United States and abroad. The Indictments unsealed today each allege the shipment and administration of adulterated and misbranded drugs designed to secretly and dangerously enhance the racing performance of horses beyond their natural ability, a dishonest practice that places the lives of affected animals at risk.
Of the 27 defendants, 19 – including trainers JORGE NAVARRO and JASON SERVIS – are charged in an indictment detailing four conspiracies to manufacture, distribute, and administer adulterated or misbranded drugs as set forth in United States v. Jorge Navarro, et al., 20 Cr. 160 (the “Navarro Indictment”), which has been assigned to U.S. District Judge Mary Kay Vyskocil. Of those defendants, 13 were taken into federal custody and are expected to be presented in the Southern District of New York today before U.S. Magistrate Judge Ona T. Wang. Defendant SETH FISHMAN was previously charged by complaint in United States v. Seth Fishman, 19 Mag. 10120, and arrested on October 28, 2019, in Miami, Florida, and was presented in U.S. District Court for the Southern District of Florida. The remaining defendants were arrested today outside of the Southern District of New York and adjacent districts, and will be presented today before the appropriate District Courts.
Four additional defendants are charged in United States v. Louis Grasso, et al., 20 Cr. 163 (the “Grasso Indictment”), which has been assigned to U.S. District Judge P. Kevin Castel. Two defendants are charged in United States v. Scott Robinson and Scott Mangini, 20 Cr. 162 (the “Robinson Indictment”), assigned to U.S. District Judge J. Paul Oetken; and two defendants are charged in United States v. Sarah Izhaki and Ashley Lebowitz, 20 Cr. 161 (the “Izhaki Indictment”), assigned to U.S. District Judge Mary Kay Vyskocil.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Today’s unsealing of four indictments for widespread doping of racehorses is the largest ever of its kind from the Department of Justice. These defendants engaged in this conduct not for the love of the sport, and certainly not out of concern for the horses, but for money. And it was the racehorses that paid the price for the defendants’ greed. The care and respect due to the animals competing, as well as the integrity of racing, are matters of deep concern to the people of this District and to this Office.”
FBI Assistant Director William F. Sweeney Jr. said: “These men allegedly saw the $100 billion dollar global horse racing industry as their way to get rich at the expense of the animals that were doing all the hard work. Our investigation reveals the cruelty and inhumane treatment these horses suffered all to win a race. The FBI New York Joint Eurasian Organized Crime Task Force worked along with our law enforcement partners at the New York State Police, FDA, and DEA to stop this ring of criminals from abusing helpless animals simply so they could cheat the odds and rake in millions of dollars.”
Police Commissioner Dermot Shea said: “I want to commend our NYPD investigators, working with our federal partners, for carrying out a meticulous and important investigation. Putting the lives of horses at the center of an alleged plot to cheat professional horseracing around the world can never be accepted.”
FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen said: “The FDA is responsible for protecting not only the health of humans, but also of animals. The manufacturing and trafficking of misbranded and unapproved animal drugs, and the administering of such drugs to racehorses to enhance their performance at the track, seriously endangers the health of these animals in pursuit of financial gain. Today’s announcement should serve as a reminder of our continued focus on those individuals and companies that put profits ahead of the public health.”
CBP Director of Field Operations Troy Miller said: “U.S. Customs and Border Protection is proud to have collaborated with our fellow law enforcement partners during this investigation. We value our partnerships and the arrests today demonstrate that together, no matter how complex the case, we will do what it takes to bring those who violate the law to justice.”
According to the allegations contained in the Indictments,[1] other filings in this case, and statements during court proceedings:
The charges in these four Indictments arise from an investigation of widespread schemes by racehorse trainers, veterinarians, PED distributors, and others to manufacture, distribute, and receive adulterated and misbranded PEDs and to secretly administer those PEDs to racehorses competing at all levels of professional horseracing. By evading Food and Drug Administration (“FDA”) rules and regulations, as well as prohibitions against the use of PEDs, and by deceiving regulators and horse racing officials, participants in these schemes sought to improve race performance and obtain prize money from racetracks throughout the United States and other countries, including in New York, New Jersey, Florida, Ohio, Kentucky, and the United Arab Emirates (“UAE”), notwithstanding the detriment and risk of the health and well-being of the racehorses. Trainers who participated in the schemes stood to profit from the success of racehorses under their control by earning a share of their horses’ winnings, and by improving their horses’ racing records, thereby yielding higher trainer fees and increasing the number of racehorses under their control. Veterinarians and drug distributors simply profited from the callous sale and administration of these medically unnecessary substances.
The Navarro Indictment
The Navarro Indictment charges 19 individuals representing a cross-section of corruption throughout the Thoroughbred and Standardbred racing industries. As alleged, JORGE NAVARRO, a racehorse trainer, has participated in the doping of horses under his control using a variety of PEDs, including customized PEDs designed in part to evade normal anti-doping tests administered by racing regulators. NAVARRO operated his doping scheme covertly, using a straw man to receive certain products designed to mask the presence of PEDs, avoiding explicit discussion of PEDs during certain telephone calls, and working with others to coordinate the administration of PEDs at times that racing officials would not detect such cheating.
NAVARRO trained and doped XY Jet, a thoroughbred horse that won the 2019 Golden Shaheen race in Dubai. As alleged, NAVARRO was intercepted during telephone conversations discussing his doping practices, and administered PEDs to XY Jet. Among NAVARRO’s preferred PEDs were various “blood building” drugs, which, when administered before intense physical exertion, can lead to cardiac issues or death. NAVARRO announced XY Jet’s death, as the result of an apparent heart attack, in January of this year. Investigation of the circumstances of that death remains ongoing.
NAVARRO was assisted by many of the charged defendants in the Navarro Indictment, and also assisted others, including JASON SERVIS, in obtaining adulterated and misbranded drugs to dope racehorses.
As alleged, SERVIS doped virtually all horses under his control, including Maximum Security, the horse that crossed the finish line first in the 2019 Kentucky Derby before being disqualified for interference. Among the misbranded and adulterated PEDs used by SERVIS was the drug “SGF-1000,” marketed and sold by defendant MICHAEL KEGLEY JR., among others, and which is compounded and manufactured in unregistered facilities. SGF-1000, like many other customized PEDs, may cause racehorses to perform beyond their natural abilities, thereby increasing the risk of injuries. SERVIS and others working with him, including veterinarians KRISTIAN RHEIN and ALEXANDER CHAN, attempted to conceal SERVIS’s doping practices through the use of falsified veterinary bills and fake prescriptions. SERVIS also tipped off NAVARRO to the presence of racing officials searching for signs of illegal doping. NAVARRO expressed his relief regarding SERVIS’ “tip”: “[The track official] would’ve caught our asses fucking pumping and pumping and fuming every fucking horse [that] runs today.”
The Navarro Indictment also includes charges against veterinarian SETH FISHMAN who also created and shipped adulterated and misbranded drugs. As alleged, SETH FISHMAN, along with LISA GIANNELLI, JORDAN FISHMAN, and others, developed and distributed multiple illegal PEDs. Those included “blood building” drugs specifically designed to evade anti-doping testing regimes. On one occasion, SETH FISHMAN touted precisely this deceptive aspect of his illegal PEDs: “[D]on’t kid yourself: if you’re giving something to a horse to make it better, and you’re not supposed to do that. . . . That’s doping. You know, whether or not it’s testable, that’s a different story.”
Finally, the Navarro Indictment includes charges against trainer NICHOLAS SURICK who, among other things, distributed the adulterated and misbranded PED “red acid” (an anti-inflammatory drug) to NAVARRO. SURICK also obtained and administered other adulterated and misbranded PEDs to horses under his care, including administering the blood building drug Epogen to the racehorse Northern Virgin. SURICK and others then took extraordinary steps to physically conceal Northern Virgin from New Jersey state regulators seeking to test horses under SURICK’s control, for which SURICK is also charged with obstruction.
The Grasso Indictment
The Grasso Indictment charges four defendants, including veterinarian LOUIS GRASSO, with conspiring to violate the misbranding laws of the United States. As alleged, GRASSO manufactured, sold, and distributed adulterated and misbranded PEDs for use on racehorses. GRASSO also obtained and distributed other PEDs, including snake venom, a type of pain blocking substance. GRASSO worked with DONATO POLISENO, a Delaware-based distributor of PEDs manufactured by GRASSO and others. The Grasso Indictment also charges two horse trainers, THOMAS GUIDO III and CONOR FLYNN, with, among other things, causing the shipment of adulterated and misbranded PEDs prior to administering those drugs to horses under their control. The dangers of that practice are reflected in the death of a horse doped by GUIDO in or about October 2019, about which GRASSO commented: “I’ve seen that happen 20 times.”
The Robinson Indictment
SCOTT ROBINSON and SCOTT MANGINI are each charged with misbranding and adulteration conspiracies in the Robinson Indictment. As alleged, the two defendants previously collaborated in running online marketplaces selling adulterated and misbranded PEDs for racehorses. The drugs distributed through the defendants’ websites were manufactured in non-FDA registered facilities and carried significant risks to the animals affected through the administration of those illicit PEDs. In one instance, on January 2, 2016, ROBINSON forwarded a customer complaint to MANGINI: “I [i.e., a customer contacting ROBINSON] ordered some [PED-1] . . . starting bout 8 hours after I give the injection and for about 36 hours afterwards both my horses act like they are heavily sedated, can barely walk. Could I have a bad bottle of medicine, I’m afraid to give it anymore since this has happened three times.” Commenting on this complaint, ROBINSON wrote, “here is another one.”
The Izhaki Indictment
The fourth Indictment unsealed today, the Izhaki Indictment, charges SARAH IZKAHI and ASHLEY LEBOWITZ in connection with their distribution of an adulterated and misbranded blood builder sourced illegally from a Mexico-based pharmaceutical company. As alleged, IZHAKI has obtained this substance by smuggling the drug into the United States, where IZHAKI and LEBOWITZ distribute the drug to horse trainers in and around the New York City area.
* * *
A chart containing the names, charges, and maximum penalties for the defendants in each of the four Indictments 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 assigned to each case.
Mr. Berman praised the outstanding investigative work of the FBI and the FBI’s Integrity in Sports and Gaming Initiative. Mr. Berman also thanked the New Jersey Attorney General’s Office, the New York State Police, and the New York City Police Department for their support of this investigation, and Customs and Border Protection, the Food and Drug Administration and Drug Enforcement Administration for their assistance and expertise.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Sarah Mortazavi, Benet J. Kearney, and Andrew C. Adams are in charge of the prosecution.
The charges contained in these Indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.
The Indictments are posted on our website under the heading "Indictments in Horse Doping Case."
Navarro Indictment
Count
Charge
Defendants
Max. Penalty
Count One
Misbranding Conspiracy
18 U.S.C. § 371
JORGE NAVARRO
ERICA GARCIA
MARCOS ZULUETA
MICHAEL TANNUZZO
GREGORY SKELTON
ROSS COHEN
SETH FISHMAN
CHRISTOPHER OAKES
NICHOLAS SURICK
5 years’ imprisonment.
Count Two
Misbranding Conspiracy
18 U.S.C. § 371
SETH FISHMAN
LISA GIANNELLI
JORDAN FISHMAN
RICK DANE JR.
5 years’ imprisonment.
Count Three
Misbranding Conspiracy
18 U.S.C. § 371
JASON SERVIS
KRISTIAN RHEIN
MICHAEL KEGLEY JR.
ALEXANDER CHAN
HENRY ARGUETA
JORGE NAVARRO
5 years’ imprisonment.
Count Four
Misbranding Conspiracy
18 U.S.C. § 371
NICHOLAS SURICK
REBECCA LINKE
CHRISTOPHER MARINO
5 years’ imprisonment.
Count Five
Obstruction
18 U.S.C. §§ 1512(b)(3) & 2
NICHOLAS SURICK
20 years’ imprisonment.
Count Six
Obstruction
18 U.S.C. §§ 1512(c) & 2
NICHOLAS SURICK
20 years’ imprisonment.
Grasso Indictment
Count
Charge
Defendants
Max. Penalty
Count One
Misbranding Conspiracy
18 U.S.C. § 371
LOUIS GRASSO
DONATO POLISENO
CONOR FLYNN
THOMAS GUIDO III
5 years’ imprisonment.
Robinson Indictment
Count
Charge
Defendants
Max. Penalty
Count One
Misbranding Conspiracy
18 U.S.C. § 371
SCOTT ROBINSON
SCOTT MANGINI
5 years’ imprisonment.
Count Two
Misbranding Conspiracy
18 U.S.C. § 371
SCOTT ROBINSON
5 years’ imprisonment.
Count One
Misbranding Conspiracy
18 U.S.C. § 371
SCOTT MANGINI
5 years’ imprisonment.
Izhaki Indictment
Count
Charge
Defendants
Max. Penalty
Count One
Misbranding Conspiracy
18 U.S.C. § 371
SARAH IZHAKI
ASHLEY LEBOWITZ
5 years’ imprisonment.
Count Two
Smuggling
18 U.S.C. §§ 545 & 2
SARAH IZHAKI
20 years’ imprisonment.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein constitute only allegations and every fact described should be treated as an allegation.
Man Pleads Guilty to Transporting an Illegal Alien in His Vehicle to the St. John Ferry TerminalRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Courtney Matthias pleaded guilty to transporting an illegal alien. Matthias will be sentenced at a later date.
According to court documents filed in the case, on October 1, 2019, Matthias transported an illegal alien in his vehicle to the ferry terminal in St. John. In addition, Matthias purchased a ferry ticket for the alien and traveled to St. Thomas with the alien.
This case is being investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Adam Sleeper.
Lee's Summit Man Sentenced for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Lee’s Summit, Missouri, man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Joshua Hardin, 29, was sentenced by U.S. District Judge Howard F. Sachs to 10 years in federal prison without parole.
On Nov. 25, 2019, Hardin pleaded guilty to participating in a conspiracy to distribute methamphetamine from Oct. 16, 2018, to June 3, 2019.
Hardin was the passenger in a vehicle that was stopped by Kansas City police officers on Oct. 30, 2018. Officers seized a bag that contained 371.38 grams of methamphetamine from the vehicle’s driver and a stolen Glock handgun from the floorboard directly behind the driver’s seat. Hardin had 6.8 grams of methamphetamine and 5.22 grams of marijuana in his pockets.
Officers had earlier seized a bag from Hardin that contained54.86 grams of methamphetamine. Officers were called by a homeowner on Oct. 16, 2018, who reported that he saw Hardin, whom he did not know, walk out from behind a shed on his property. The homeowner’s wife then found the bag of methamphetamine behind the shed, and the homeowner contacted the police. Hardin admitted the methamphetamine belonged to him.
This case is being prosecuted by Special Assistant U.S. Attorney Mary Kate Butterfield. It was investigated by the Kansas City, Mo., Police Department.
Leader of Armed Home Invasion Robbery Crew Convicted of RICO Conspiracy and Other Violent CrimesRead the Press Release
A federal jury in Detroit, Michigan, found a Colombian man guilty of all charges in a nine-count indictment charging him with Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy and other violent crimes, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field Office.
Juan Olaya, 39, of Buenaventura, Colombia, was a leader of an armed robbery crew that traveled the United States committing armed home invasions. Evidence at trial established that the defendant and his crew exclusively targeted families of Indian and Asian descent for their crimes.
Following a two-week trial, Olaya was convicted of one count of RICO conspiracy, four counts of assault with a dangerous weapon in aid of racketeering and four counts of use of a firearm during and in relation to a crime of violence. Sentencing is scheduled for July 23, 2020, before U.S. District Court Judge Laurie J. Michelson of the Eastern District of Michigan, who presided over the trial.
According to evidence presented at trial, Olaya and his robbery crew committed a string of home invasions in Georgia, New York, Michigan and Texas in 2014. The organizer of the crew, Chaka Castro, ran the enterprise from 2011 through 2014. Castro generated lists of robbery targets in various states around the county, specifically families of Asian and Indian ancestry, and assigned crews to carry out the armed robberies of these families within their homes. Olaya was the road boss of one such crew, who recruited other members and assigned roles to those members. Olaya and crew members traveled to certain locations, conducted surveillance and executed the robberies.
The crew utilized a particular modus operandi in each of the robberies. Members disguised their appearance with clothing and bandanas so that victims would have difficulty identifying them. They openly carried and brandished firearms to gain control of the victims and then immediately corralled the victims, including children, into one location in the home. At least one crew member then restrained the victims using duct tape and threats of violence, as another ransacked the home in search of cash, jewelry and electronics to steal. The crew organized their trips to involve multiple home invasion robberies over a series of days.
The FBI’s Ann Arbor Office investigated the case with the assistance of federal agencies including U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations, U.S. Secret Service and local law enforcement agencies in Michigan, including Washtenaw County Sherriff’s Office, Ann Arbor Police Department and Canton Police Department; local law enforcement agencies in Ohio, including Beachwood Police Department; local law enforcement agencies in Georgia, including the Cobb County District Attorney’s Office, Cobb County Police Department, Gwinnett County Police Department, Duluth Police Department and Milton Police Department; local law enforcement agencies in New York, including Nassau County Police Department; the Tennessee Highway Patrol and local law enforcement agencies in Texas including Allen Police Department, Coppell Police Department, Flower Mound Police Department, Carrollton Police Department, Lewisville Police Department and Southlake Police Department.
Trial Attorneys Conor Mulroe and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Justice Department Wins Historic Arbitration of a Merger DisputeRead the Press Release
The Department of Justice prevailed in a first-of-a-kind arbitration, which will resolve a civil antitrust lawsuit challenging Novelis’s proposed merger with Aleris Corporation. As a result, Novelis must divest Aleris’s entire aluminum auto body sheet operations in North America, which will fully preserve competition in this important industry. In addition, under the terms of the arbitration agreement between defendants and the Department, Novelis must reimburse the Department for its fees and costs incurred in connection with the arbitration.
“Today’s decision is a victory for automakers and American consumers and taxpayers and will preserve competition in the market for aluminum auto body sheet,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “This first-of-its-kind arbitration proved to be an effective procedure for the streamlined adjudication of a dispositive issue in a merger challenge. As demonstrated in this case, arbitration has the potential to be a powerful dispute resolution tool in the right circumstances and I look forward to applying the learning from this case to future matters. I am very proud of the Division’s talented and dedicated team of lawyers, paralegals, and economists who pioneered this ground-breaking arbitration, representing the Division exceedingly well throughout these proceedings.”
On Sept. 4, 2019, the Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the Northern District of Ohio seeking to block Novelis Inc.’s proposed acquisition of Aleris Corporation. Prior to filing the complaint, the Justice Department’s Antitrust Division reached an agreement with defendants to refer the matter to binding arbitration if the parties were unable to resolve the United States’ competitive concerns with the defendants’ transaction within a certain period of time. Fact discovery proceeded under the supervision of the district court. Pursuant to the arbitration agreement, following the close of fact discovery, the matter was referred to binding arbitration to resolve the issue of product market definition. A ten-day arbitration hearing concluded last week, marking the first time the Antitrust Division has used its authority under the Administrative Dispute Resolution Act of 1996 (5 U.S.C. § 571 et seq.) to resolve a matter.
Today, the arbitrator ruled for the United States, holding that aluminum auto body sheet constitutes a relevant product market, as the United States had alleged. Because the Department prevailed, the United States will file a proposed final judgment with the U.S. District Court for the Northern District of Ohio that requires Novelis to divest Aleris’s entire aluminum ABS operations in North America to preserve competition in the relevant market. This arbitration procedure provided certainty and allowed the defendants to close their transaction subject to foreign regulatory review.
The Department thanks Kevin Arquit, a highly-respected and experienced antitrust lawyer and former Director of the Federal Trade Commission’s Bureau of Competition, for serving as the arbitrator in this matter. The Department also thanks defendants’ legal team from Latham & Watkins, LLP and Fried Frank, and in particular, Dan Wall and the litigating team from Latham & Watkins, for their highly-skilled advocacy and professionalism.
Novelis is a Canadian corporation headquartered in Atlanta, Georgia. It offers flat-rolled aluminum products in three segments: automotive, beverage can, and specialty products. In the fiscal year ending March 31, 2019, Novelis’s revenues were approximately $12.3 billion. Novelis is a wholly-owned subsidiary of Hindalco Industries Ltd., an Indian company headquartered in Mumbai, India.
Aleris is a Delaware corporation headquartered in Cleveland, Ohio. It offers flat-rolled aluminum products to the automotive, aerospace, and building and construction industries, among others. In 2018, Aleris’s revenues were approximately $3.4 billion.
Justice Department Cautions Business Community Against Violating Antitrust Laws in the Manufacturing, Distribution, and Sale of Public Health ProductsRead the Press Release
The Department of Justice today announced its intention to hold accountable anyone who violates the antitrust laws of the United States in connection with the manufacturing, distribution, or sale of public health products such as face masks, respirators, and diagnostics. The department’s announcement is part of a broader administration effort to ensure that federal, state, and local health authorities, the private healthcare sector, and the public at large are in the strongest possible position to respond to the outbreak of the respiratory disease named coronavirus disease 2019 (COVID-19).
“The Department of Justice stands ready to make sure that bad actors do not take advantage of emergency response efforts, healthcare providers, or the American people during this crucial time,” said Attorney General William P. Barr. “I am committed to ensuring that the department’s resources are available to combat any wrongdoing and protect the public.”
Individuals or companies that fix prices or rig bids for personal health protection equipment such as sterile gloves and face masks could face criminal prosecution. Competitors who agree to allocate among themselves consumers of public health products could also be prosecuted. The department’s recently announced Procurement Collusion Strike Force will also be on high alert for collusive practices in the sale of such products to federal, state, and local agencies.
Anyone with information on price fixing, bid-rigging, market allocation schemes, or other anticompetitive conduct should call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Jury Convicts Belleville Woman for Mail Fraud in Worker's Compensation SchemeRead the Press Release
SPRINGFIELD, Ill. – A jury deliberated for approximately one hour on Friday, March 6, 2020, before returning guilty verdicts against a Belleville, Ill. woman, Paula Klaustermeier, 53, charged with three counts of mail fraud. U.S. District Judge Sue E. Myerscough presided over the trial which began March 3. Sentencing is scheduled on July 10, 2020.
After sustaining a workplace injury in 1998 as a seasonal federal employee, Klaustermeier collected wage replacement benefits and medical benefits through the Department of Labor, Officer of Worker’s Compensation Program. At trial, the government presented evidence to show that, starting in approximately 2005, Klaustermeier began fraudulently altering medical documentation, or wholly creating fraudulent medical documents, in an effort to support her claim of ongoing disability. Starting in at least 2008 and continuing into 2013, she submitted travel reimbursement requests, claiming she traveled between 30 and 80 miles, almost daily, in order to engage in a therapy treatment at a variety of health club facilities. The evidence showed that Klaustermeier did not, in fact, have valid health club memberships during the time frame in question; it also showed that one of the health club facilities she claimed to travel to for therapy treatments was actually the private residence of her parents. Through these fraudulent travel reimbursements, Klaustermeier received more than $53,000 in benefits.
The Department of Labor, Office of Inspector General, and the U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorneys Victor B. Yanz and Tanner K. Jacobs represented the government at trial.
At sentencing, the offense of mail fraud carries a maximum statutory penalty of 20 years in prison.
Inland Empire Man Who Stole Doctors’ Identities to Obtain Medication Later Sold on Dark-net Sentenced to 10 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Riverside County man was sentenced today to 120 months in federal prison for running a narcotics distribution outfit that, in part, stole at least nine doctors’ DEA numbers and dates of birth that he used to obtain oxycodone and other prescription medications that he later sold on the dark-net.
Christopher Lazenby, 29, of Homeland, was sentenced by United States District Judge Stephen V. Wilson.
Lazenby pleaded guilty in September 2019 to a two-count criminal information charging him with possessing with intent to distribute methamphetamine and oxycodone.
Lazenby perpetrated his scheme by stealing the identities of at least nine doctors and one physician’s assistant. He then used the Drug Enforcement Administration’s online registration system to change the addresses of eight doctors to mailboxes he had rented in South Los Angeles and Carson. Lazenby changed the address of a ninth doctor to show his medical office was a room at a Motel 6 in Inglewood, according to court documents.
With official records showing new addresses for the doctors, Lazenby forged the doctors’ signatures on counterfeit prescriptions and ordered oxycodone, hydrocodone and Adderall to be sent to the addresses he controlled, he admitted in a plea agreement. After he received the narcotics, Lazenby used the dark web and Craigslist to advertise the drugs for sale.
Lazenby was arrested on October 3, 2018 at his hotel room in Torrance, which he had rented using an alias. During searches of his hotel room and car, law enforcement seized narcotics, including 196 grams of methamphetamine, oxycodone pills, prescription pads in the names of the identity theft victims, and rubber stamps in the names of the victim doctors.
The Drug Enforcement Administration investigated this case.
This case was prosecuted by Assistant United States Attorney Benjamin R. Barron, Chief of the Santa Ana Branch Office.
- Indictments in Horse Doping Case