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6 March 2020
Minot, ND, Man Indicted for Possession of Ammunition by a Convicted FelonRead the Press Release
Bismarck – United States Attorney Drew H. Wrigley announced that on March 5, 2020, Noah Jarvis Abraham appeared in Federal Court at an initial appearance and arraignment hearing. The United States District Court for the District of North Dakota unsealed an Indictment revealing that a federal grand jury indicted Abraham on the charge of Possession of Ammunition by a Convicted Felon. Specifically, the Grand Jury alleges that on January 21, 2020, Abraham stole 9mm ammunition from Scheels Sporting Goods store in Minot, ND. Abraham is a convicted felon for the offense of Terrorizing and is prohibited from possessing firearms or ammunition. An Indictment is an accusation and notice of charges, and the defendant is presumed innocent until proven guilty.
This case is being investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Minot Police Department.
Assistant United States Attorney Jeremy A. Ensrud is prosecuting the case.
Metairie Man Pleads Guilty to Bank RobberyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that LEVI HERMAN (HERMAN), age 33, pleaded guilty on March 5, 2020 before Judge Carl Barbier to a one-count Indictment for bank robbery in violation of Title 18, United States Code, Section 2113(a).
According to court documents, HERMAN robbed the Capital One Bank located in New Orleans, Louisiana on December 4, 2019. HERMAN escaped with approximately $1,900 dollars in U.S. currency. HERMAN faces a maximum term of imprisonment of twenty years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. Judge Barbier set sentencing for June 25, 2020.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, Jefferson Parish Sheriff’s Office and the New Orleans Police Department in investigating this matter.
Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Marietta doctor convicted of illegally distributing opioid pain meds, health care fraudRead the Press Release
COLUMBUS, Ohio – A federal jury has convicted a Southeast Ohio doctor of illegally prescribing controlled substances and defrauding health care programs.
The verdict was announced yesterday evening following a trial that began on Feb. 24 before Chief U.S. District Judge Algenon L. Marbley.
Specifically, a federal jury found Roger D. Anderson, 65, of Marietta, guilty of one count of conspiring to distribute controlled substances, eight counts of illegal dispensing of controlled substances and one count of committing health care fraud.
Anderson owned and operated Marietta Medical, which was located on Putnam Street in Marietta.
According to court documents and trial testimony, between January 2012 and March 2016, Anderson conspired with others to distribute opioids like oxycodone and hydrocodone outside the scope of medical practice and without a legitimate medical purpose.
Anderson pre-signed prescriptions for staff to complete and distribute to patients in his absence. Prescriptions were given to patients on days that Anderson did not examine them and by staff who were not legally qualified to give prescriptions. Further, the drugs would be distributed at a kiosk after hours inside the office complex Putnam Commons.
Anderson prescribed dangerous combinations of controlled substances, including those known as “Holy Trinity” (an opioid, a benzodiazepine and a muscle relaxant) and “Speedballs” (a stimulant and an opioid).
One patient received four prescriptions issued in the same day for 10 Fentanyl patches, 120 Xanax pills, 180 Oxycodone pills and 180 pills of the acetaminophen-hydrocodone mix Norco. On that same date, the patient already had two other overlapping prescriptions for Fentanyl issued by Anderson.
Additionally, Anderson conspired to and committed health care fraud, defrauding the Ohio Medicaid and Medicare programs. Anderson caused the submission of claims for controlled substance that were prescribed in violation of Federal law.
“Anderson ignored blatant red flags that his patients were abusing and diverting the opioids he prescribed,” U.S. Attorney David M. DeVillers said. “He prescribed opioids and benzodiazepines to a pregnant patient and was banned by pharmacies. This trial is another example that if you act like a drug dealer, we will prosecute you like one.”
“Dr. Anderson betrayed his profession and every standard of decency by cashing in on the deadly opioid epidemic that is plaguing nearly every corner of our country,” said Drug Enforcement Administration Special Agent in Charge Keith Martin, Detroit field division.
“The defendant warped his prescription pad from healing to harm, writing out warrants for addiction,” Ohio Attorney General Dave Yost said. “I am proud of our team and United States Attorney DeVillers for holding him accountable for his crimes.”
“This case is a great example of cooperation between Federal, State and Local law enforcement agencies,” said Washington County Sheriff Larry Mincks. “We started this case five or six years ago and it became so cumbersome and complex that without the help of the Federal government the case would not have survived.”
Conspiring to distribute and distributing controlled substances are federal crimes punishable by up to 20 years in prison. Committing health care fraud carry potential maximum sentences of 10 years in prison. Congress sets the minimum and maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); Ohio Attorney General Dave Yost; Anthony Groeber, Executive Director, State Medical Board of Ohio; Steven Schierholt, Executive Director, State of Ohio Board of Pharmacy; Stephanie McCloud, Administrator, Ohio Bureau of Workers Compensation; and Washington County Sheriff Larry Mincks announced the verdict. Assistant United States Attorney Kenneth F. Affeldt and Senior Litigation Counsel Douglas W. Squires are representing the United States in this case.
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Mandan, ND, Man Arrested for Failure of RegisteredRead the Press Release
Bismarck – United States Attorney Drew H. Wrigley announced that on March 6, 2020, Maurice Robert Thill made his initial appearance and was arraigned in Federal Court on the charge of Failure of Registered Sex Offender to Report International Travel. The trial has been scheduled for May 12, 2020, before Judge Daniel Traynor.
Thill is a registered sex offender based on his prior convictions in Burleigh, Morton, and McLean Counties in North Dakota for Gross Sexual Imposition in 1990, 1991 and 2004. Under Federal law, registered sex offenders must report all intended foreign travel to the registration authority 21 days in advance of any such travel and complete an international travel form with the US Marshal’s Service. It is alleged that Thill traveled outside of the United States between December 2019 and January 2020 without reporting such intended travel and/or completing the US Marshal Service international travel form.
This case was investigated by the US Marshal’s Service, Morton County Sheriff’s Department and Homeland Security Investigations.
Assistant United Sates Attorney Rick Volk is prosecuting the case
Man Traveling from the Dominican Republic Arrested after Presenting False Passport at Boston Logan AirportRead the Press Release
BOSTON – A man traveling from the Dominican Republic under an assumed identity was arrested yesterday for attempting to enter the United States using a false U.S. passport.
The defendant, whose identity has not yet been confirmed and who was charged as John Doe, was charged with misuse of a passport and is being held pending a detention hearing scheduled for March 12, 2020.
According to charging documents, the defendant arrived in Boston on a commercial flight from the Dominican Republic on March 4, 2020. While attempting to pass inspection by Customs and Border Protection at Boston Logan International Airport, he provided officers a U.S. Passport bearing his image, but the name, date of birth and social security number of a different person.
An investigation revealed that the defendant allegedly applied for the passport in November 2019 in Brighton, Massachusetts. In the application, he fraudulently listed the personal identifying information of a United States citizen from Puerto Rico. He also attached a copy of the citizen’s birth certificate in support of the application. The passport was issued to the defendant under the assumed identity of the citizen.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the Department of State’s Diplomatic Security Service, Boston Field Office made the announcement. Assistance was provided by Customs and Border Patrol and Immigration and Customs Enforcement. Assistant U.S. Attorney Fred Wyshak III of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Madison County Woman Sentenced to 151 Months for Conspiring to Distribute Methamphetamine and CocaineRead the Press Release
LEXINGTON, Ky. – A Richmond, Kentucky, woman, Jennifer G. McFarland, 43, was sentenced on Friday, to 151 months in federal prison respectively, by U.S. District Judge Danny C. Reeves, following her conviction for conspiring to distribute methamphetamine and cocaine.
According to the evidence presented at trial, on March 2, 2019, officers with the Richmond Police Department executed a search warrant on Richard C. Duerson’s apartment, McFarland’s co-defendant, in Richmond. During the search, in Duerson’s bedroom closet, officers located cocaine, more than 50 grams of methamphetamine (including 661 pills containing methamphetamine), and approximately $10,000 in cash, wrapped in a sock.
After Duerson’s arrest, officers investigated several phone calls he made to McFarland, from the Madison County Detention Center, where they discussed the removal of various items from his apartment. On March 8, 2019, officers obtained a second search warrant, for McFarland’s Richmond residence. During this search, officers located approximately 303 grams of methamphetamine, 679 grams of cocaine, several firearms, and multiple items used for mixing and preparing narcotics for sale.
McFarland and Duerson were convicted on November 27, 2019. Duerson is scheduled for sentencing on April 3, 2020.
Under federal law, McFarland must serve 85 percent of her prison sentences and will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Brett R. Pritts, Acting Special Agent in Charge, DEA; and James Ebert, Chief of Police, Richmond Police Department, jointly made the announcement.
The investigation was investigated by the DEA, Richmond Police Department, and the Madison County High Intensity Drug Trafficking Area (HIDTA) Task Force. The United States was represented by Assistant United States Attorney Francisco Villalobos II.
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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Leader of Methamphetamine Trafficking Organization Sentenced to 30 Years ImprisonmentRead the Press Release
Abingdon, VIRGINIA – United States Attorney Thomas T. Cullen announced today that Shawn Wayne Farris, 54, of Rancho Mirage, Calif., was sentenced to 30 years imprisonment today in U.S. District Court in Abingdon. Farris had previously pleaded guilty to one count of conspiring to possess with the intent to distribute 500 grams or more of methamphetamine.
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, in early 2017, Operation California Dreaming began investigating the trafficking of methamphetamine between California, Southwest Virginia and Northeast Tennessee. As a result of that investigation, 28 individuals, located in California, Georgia, Virginia and Tennessee, were charged as being members of a drug trafficking organization responsible for the distribution of large quantities of methamphetamine. Charges levied against these individuals included both drug and firearms offenses. Farris was the leader of this drug trafficking organization and was responsible for arranging the shipment and transportation of extremely pure methamphetamine from his home in California to Bristol, Virginia, Bristol, Tennessee and Abingdon, Virginia. Farris also established a large number of distributors to sell the methamphetamine to users in these communities.
In addition to Farris, to date, 26 members charged in the conspiracy have pleaded guilty or been found guilty. One defendant remains a fugitive:
- Sean Phillip Maidlow – 300 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Jair Medina Gutierrez - Fugitive
- Lacey Cheri Weir – 300 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Andrea Nichole Stickel - 210 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- James Nicholas Howington – 168 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- James Robert Johnson – 151 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Stephen A. Graham – 84 months imprisonment, conspiracy to distribute 50 grams or more of methamphetamine.
- Christopher Lee Smiley – 64 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Joshua Todd Chapman – 168 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Saleemah Lashawn Roberson – 108 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Donald Zachary Snyder – 270 months imprisonment, conspiracy to distribute 500 Grams or more of methamphetamine, distribute methamphetamine, and possess a firearm in furtherance of a drug trafficking offense.
- James Skyler Sebastian – To Be Sentenced
- Larry Levi Bennett – 235 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Terry Melvin Dalton – 120 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine and distribute methamphetamine.
- Heather Ashley Davis – 120 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Brianna Nicole Woodby – 60 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Donald Shane Hawthorne – 144 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Gary Lee McFarlane – 135 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine and distribute methamphetamine
- Elizabeth Pauline Eaton – 168 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Matthew Todd Mullins – 188 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine, distribute methamphetamine, and manufacture counterfeit United States currency.
- Anthony Chadwick Harless -108 months imprisonment, conspiracy to distribute 50 grams or more of methamphetamine.
- Kimberly Ann Drake – 210 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Brandon Heath Whitt – 108 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Melissa Darlene Barrett – 168 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine and distribute methamphetamine.
- Susan Nicole Payne – 87 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine and distribute methamphetamine
- Bradley Scott Williams – 204 months imprisonment, conspiracy to distribute 500 grams or more of methamphetamine.
- Devon Scott Coleman – 211 months imprisonment, conspiracy to distribute 50 grams or more of methamphetamine, possess 50 grams or more of methamphetamine with the intent to distribute, and possess a firearm in furtherance of a drug trafficking offense.
The investigation of the case was conducted the Abingdon Police Department, Virginia State Police, Washington County Sheriff’s Office, Bristol, Tennessee Police Department, Bristol, Virginia Police Department, the Sullivan County, Tennessee Second Judicial Drug Task Force, Sullivan County Sheriff’s Department, Commerce, Georgia Police Department, New Jersey State Police, United States Postal Inspection Service, United States Marshals Service, United States Secret Service, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Washington County Commonwealth’s Attorney’s Office, Bristol, Virginia Commonwealth’s Attorney’s Office, and the Sullivan County, District Attorney’s Office have assisted in the investigation. Assistant United States Attorneys Zachary T. Lee and Cagle Juhan prosecuted the case for the United States.
Lawrence Man Sentenced to 40 Months for Participating in a Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Jared Gil, 25, of Lawrence, Massachusetts, was sentenced in federal court to 40 months for participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in February and March of 2019, Gil conspired with co-defendant Yadoris Arias to distribute fentanyl. On February 13, 2019, Gil and Arias drove from Massachusetts to Manchester and sold approximately 20 grams of fentanyl for $600. On March 25, 2019, Gil and Arias again drove to Manchester and were arrested with more than 80 grams of fentanyl concealed in the air vent of their vehicle.
Gil previously pleaded guilty on August 1, 2019. Arias pleaded guilty September 12, 2019 and is scheduled to be sentenced on March 31, 2020.
“Interstate fentanyl trafficking is causing tremendous damage to public health and safety in New Hampshire,” said U.S. Attorney Murray. “In order to protect our community, we will continue to work closely with our law enforcement partners to identify, prosecute, and incarcerate those who bring this deadly drug into the Granite State.”
“Illegal drug distribution ravages the very foundations of our families and communities here in New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Let this sentences be a warning to those traffickers who are coming from out of state to distribute this poison, that DEA and its local, state and federal partners will do everything in our power to bring you to justice.”
This matter was investigated by the Drug Enforcement Administration and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for illegally possessing a firearm.
Chris D. Page, 55, was sentenced by U.S. District Judge Greg Kays to 15 years in federal prison without parole. Page was sentenced as an armed career criminal due to his prior felony convictions.
On Sept. 11, 2019, Page pleaded guilty to being a felon in possession of a firearm.
Page was a passenger in a vehicle that was stopped by Kansas City police officers on Nov. 7, 2016. Page was carrying a Colt .38-caliber revolver in his pocket. He also had a baggie that contained crack cocaine in another pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Page has prior felony convictions for murder, armed criminal action, and possessing illegal drugs, and two prior felony convictions for distributing heroin.
This case was prosecuted by Special Assistant U.S. Attorney Sean T. Foley. It was investigated by the Kansas City, Mo., Police Department.
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.Justice Department Concludes Historic Arbitration of a Merger DisputeRead the Press Release
The Department of Justice this week concluded an arbitration that will resolve a civil antitrust lawsuit challenging Novelis Inc.’s proposed acquisition of Aleris Corporation.
The lawsuit seeks to preserve competition in the North American market for rolled aluminum sheet for automotive applications, commonly referred to as aluminum auto body sheet. This marks 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.
“This first-of-its-kind arbitration has allowed us to resolve the dispositive issue in this case efficiently, saving taxpayer and private resources, while providing critical time-certainty,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The Antitrust Division looks forward to the arbitrator’s opinion, and will study this matter both to assess the circumstances in which arbitration may be appropriate and to identify possibilities for further streamlining the process. We will continue to examine ways to enforce our competition laws in a manner that maximizes the Division’s scarce enforcement resources to protect American consumers.”
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 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.
As described in Plaintiff United States’ Explanation of Plan to Refer this Matter to Arbitration, filed on the district court’s docket, fact discovery proceeded under the supervision of the district court. Following the close of fact discovery, the matter was referred to binding arbitration to resolve a single issue: whether aluminum auto body sheet constitutes a relevant product market under the antitrust laws.
The arbitration procedure allowed for a flexible and efficient proceeding presided over by an arbitrator with extensive expertise in antitrust law and economics. Former Federal Trade Commission Director of the Bureau of Competition and experienced antitrust lawyer, Kevin Arquit, was selected as the arbitrator. The hearing was held over ten days (including some partial days) in the Antitrust Division’s Anne K. Bingaman Auditorium and Lecture Hall in the Liberty Square Building in Washington, D.C. Eleven fact witnesses and three expert witnesses testified in the proceedings. The parties agreed to dispense with certain evidentiary requirements to allow for a more flexible and efficient hearing. The parties also dispensed with the need for post-trial briefing and agreed that the arbitrator will render a short decision of no more than five pages by March 13.
If the United States prevails, the United States will then file a proposed final judgment that requires Novelis to divest certain agreed-upon assets to preserve competition in the relevant market. If the defendants prevail, the United States will seek to voluntarily dismiss the complaint. Novelis has held separate the agreed-upon divestiture assets pursuant to a hold separate stipulation and order entered by the district court, and defendants are permitted to close the transaction pursuant to this order.
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.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Charles Jones, 27, of Jackson, pled guilty yesterday before U.S. District Judge Henry T. Wingate to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
On April 27, 2019, officers with the Jackson Police Department stopped Jones after he caused a disturbance at a residence. Officers recovered a firearm from him during a search incident to his arrest. It is illegal for Jones to possess a firearm as he has convictions in Hinds County for armed robbery and vehicle burglary in 2011 and for another vehicle burglary in 2012.
Jones will be sentenced by Judge Wingate on June 3, 2020, and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lynn Murray.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on March 6 was:
Billy Dean Smith, 55, of Big Arm, on charges of sexual exploitation of a child, distribution of child pornography and possession of child pornography. If convicted of the most serious crime, Smith faces a minimum 15 years to 30 years in prison, a $250,000 fine and five years to life of supervised release. Smith was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 20-16.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on March 2 was:
Douglas Floyd Main, 33, of Harlem, on charges of strangulation and domestic abuse by habitual offender. If convicted of the most serious crime, Main faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Main was detained pending further proceedings. The FBI and Fort Belknap Law Enforcement investigated the case. Pacer case reference. 20-14.
Appearing on March 5 was:
Billie Jo Myo, 40, of Great Falls, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Myo faces a minimum mandatory five years to 40 years in prison, a $5 million fine and three years of supervised release. Myo was detained pending further proceedings. The Drug Enforcement Administration and Great Falls Police Department investigated the case. Pacer case reference. 20-08.
Robert Matthew Paul Mitchell, Sr., 44, of Box Elder, on charges of failure to register. If convicted of the most serious crime, Mitchell faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Mitchell was detained pending further proceedings. The U.S. Marshals Service investigated the case. Pacer case reference. 20-07.
Clayton Gary Bailey, 48, and Brigitte Ann Bailey, 43, both of Big Sandy, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, the Baileys face a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Both defendants were detained pending further proceedings. The FBI, Tri-Agency Task Force and Chippewa Cree Law Enforcement Services investigated the case. Pacer case reference. 20-04.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on March 5 was:
Charles Allen Wallette, 58, of Billings, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and prohibited person in possession of a firearm. If convicted of the most serious crime, Wallette faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. Wallette was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration investigated the case. Pacer case reference. 20-12.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Illegal Alien Sentenced to Federal Prison for Unlawful Reentry into the United States After DeportationRead the Press Release
Memphis, TN – Jose Nelson Orellana-Callejas, 41, of El Salvador, was sentenced to 46 months in federal prison for illegally reentering the United States after removal. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to the facts revealed during the plea hearing and at sentencing, on August 26, 2019, Immigration and Customs Enforcement agents received information that Orellana-Callejas was at the Greyhound Bus Station in Memphis, Tennessee. Agents determined that Orellana-Callejas was a citizen of El Salvador and had previously been removed from the United States after being convicted of multiple felony offenses. Specifically, it was determined that Orellana-Callejas had the following history:
• October 07, 1998, Orellana-Callejas was ordered removed from the United States to El Salvador by an immigration judge in San Antonio, Texas.
• In 2007, Orellana-Callejas was convicted of two felonies for possession of cocaine in Georgia.
• November 10, 2011, he was removed from the United States pursuant to the original immigration removal order.
• August 8, 2016, Orellana-Callejas was again taken into immigration custody after serving a sentence for identity theft in Virginia.
• September 2, 2016, he was again removed to El Salvador.
• October 2016, Orellana-Callejas was arrested by Border Patrol agents in Texas and was subsequently convicted of felony illegal reentry.
• September 14, 2017, he was again removed to El Salvador. Orellana-Callejas has never obtained the consent or permission from immigration officials to reenter into the United States.
On March 5, 2020, U.S. District Judge John T. Fowlkes, Jr. sentenced Orellana-Callejas to 46 months imprisonment. He also faces possible deportation after completion of his sentence of confinement.
U.S. Attorney D. Michael Dunavant said, "Criminal aliens not only threaten the sovereignty of our nation, but also threaten the safety of our communities. The U.S. Attorney’s Office has prioritized and renewed our commitment to immigration enforcement, and this case demonstrates our focus on those criminal aliens who continue to illegally reenter and violate our laws after deportation. We will aggressively and unapologetically enforce U.S. immigration laws and seek stiff penalties against those who violate them."
The United States Department of Homeland Security- Immigration and Customs Enforcement investigated this case.
Assistant U.S. Attorney Stephen Hall prosecuted this case on behalf of the government.
Houston man convicted of sex trafficking minorsRead the Press Release
HOUSTON – A federal jury sitting in Houston has convicted a 24-year-old after hearing how he threatened two young girls and required them to engage in commercial sex, announced U.S. Attorney Ryan K. Patrick.
They deliberated for approximately two and a half hours before convicting Romello Lee, 24, Houston, following less than two days of trial. He was convicted on one count of trafficking a minor for commercial sex and one count of trafficking a minor by force for commercial sex.
During trial, the jury heard that Lee used Backpage.com, a defunct solicitation website, to advertise the sexual services of two minor victims, ages 14 and 16.
From July 2017 to March 2018, Lee harbored, advertised and profited from commercial sex acts of the 16-year-old minor victim. He required her to earn a quota of up to $500 per night and would threaten and beat her if she disobeyed him.
A second victim was held against her will and required to engage in sexual acts by threats of violence and coercion.
Jurors heard from the second victim as well as another adult victim he managed. They testified as to the consequences if they were to escape and how they were expected to be branded with a tattoo of his name or rap label.
The jury also saw numerous Backpage ads Lee posted as well as Instagram posts and text messages between him and the minor victim, detailing his control of her dates, her nightly quota and her beatings.
Law enforcement ultimately arrested Lee in a sting operation with one of the minors at a hotel in northwest Houston.
U.S. District David Hittner presided over the trial and set sentencing for May 29. At that time, Lee faces a mandatory minimum of 10 years and up to life in prison for the sex trafficking of a minor as well as at least 15 years and up to life for the trafficking of minor by force.
He has been and will remain in custody pending that hearing.
The Texas Department of Public Safety, Houston Police Department and FBI conducted the investigation as part of the Human Trafficking Rescue Alliance (HTRA).
HTRA law enforcement includes members of the Houston Police Department, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Richard D. Hanes and Heather Winter are prosecuting the case.
Houston Nurse Guilty in East Texas Health Care Kickback SchemeRead the Press Release
TYLER, Texas – A 54-year-old Houston Registered Nurse has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Beryl-Anne Tufon Lobe pleaded guilty to conspiracy to pay for patient referrals in violation of the Anti-Kickback Statute today before U.S. Magistrate Judge John D. Love.
According to information presented in court, Lobe, a registered nurse, was the sole owner of Axion Healthcare Services, LLC. Based in Missouri City, Texas, Axion provided home health services to Medicare beneficiaries in the Eastern District of Texas and elsewhere. From approximately May-August 2015, Lobe engaged in a conspiracy to pay for patient referrals, in violation of the Anti-Kickback Statute. To find eligible Medicare beneficiaries, Lobe made illegal kickback payments to community liaisons – also known as “recruiters” or “marketers” – who recruited and referred Medicare beneficiaries to Axion. Kickbacks were also paid to Medicare beneficiaries for the purpose of arranging for home health services. Axion then billed Medicare more than $225,000 for home health services purportedly provided to those beneficiaries who had been obtained through these kickback arrangements.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federally-funded programs, including Medicare, TRICARE, and Medicaid. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
Under federal statutes, Lobe faces up to 5 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the State of Texas Medicaid Fraud Control Unit. This case is being prosecuted by Assistant U.S. Attorney L. Frank Coan, Jr.
Highland Woman Indicted After Falsely Claiming to Have Breast Cancer and Muscular DystrophyRead the Press Release
A federal grand jury for the Southern District of Illinois has returned an eight-count indictment charging Sarah A. Delashmit, 35, of Highland, Illinois, with wire fraud, mail fraud, and aggravated identity theft. Delashmit is accused of falsely claiming she had breast cancer and genetic disorders to receive financial assistance and other benefits.
According to the indictment, Delashmit falsely claimed she was diagnosed with muscular dystrophy and spinal muscular atrophy (SMA) to attend Camp Summit, a nonprofit camp serving individuals with disabilities located in Texas. The indictment further alleges that while at Camp Summit, Delashmit impersonated an individual with disabilities by confining herself to a wheelchair and pretending to need assistance with most daily activities, such as getting dressed and bathing, despite being fully able to walk and care for herself.
In addition, the indictment alleges that Delashmit falsely claimed she was a breast cancer survivor to go on a trip and receive donated items through the Young Survival Coalition (YSC), a nonprofit organization serving young adults who have been diagnosed with cancer based in New York. Delashmit is also accused of making false statements to a credit card company and an internet retailer to obtain a triathlon bicycle valued at $4,499.00 without paying for it.
Delashmit is due in federal court for her initial appearance on March 24, 2020, at 10:00am. A trial date has not been set. If convicted, Delashmit faces up to 20 years in prison on each of the mail fraud and wire fraud charges. The aggravated identity theft charges each carry a mandatory sentence of two years imprisonment.
An indictment merely is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by the FBI and Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Luke J. Weissler.
Helena man sentenced for illegal firearms possessionRead the Press Release
BILLINGS—A Helena man convicted at trial of illegally possessing firearms was sentenced today to 87 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
A jury in October found Brandon Best Gordon, 32, of Helena, guilty of felon in possession of a firearm after a two-day trial.
U.S. District Judge Scott W. Skavdahl, of Wyoming, presided.
At trial, the prosecution presented evidence that Gordon, a convicted felon, possessed two firearms in Park and Sweet Grass counties on July 17, 2018. The firearms had been stolen earlier in two separate break-ins in Great Falls. The firearms were identified as a 9mm semi-automatic pistol and a .40 caliber semi-automatic pistol.
The firearms were in a backpack Gordon was carrying when he left a suspected drug house in Livingston and got into a vehicle that was being followed by Park County Sheriff’s Office detectives. A Montana Highway Patrol trooper, who was familiar with the vehicle and its driver from previous drug activity information, stopped the vehicle for traffic violations. Gordon was a passenger. Law enforcement served a state search warrant on the vehicle and found the backpack with the firearms. Gordon was convicted in 2012 of felony crimes in Montana.
Assistant U.S. Attorney Paulette Stewart prosecuted the case which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Highway Patrol.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person
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Harrisburg Man Indicted on Drug Trafficking and Firearm ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mikal Jones, age 22, of Harrisburg, Pennsylvania, was indicted on March 4, 2020, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Jones possessed marijuana with the intent to distribute on April 11, 2019, in Harrisburg City. The indictment further states that he possessed a firearm during and in relation to his drug trafficking activities.
The case was investigated by the Harrisburg Police Bureau and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Johnny Baer is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is a term of life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Fresno Man Sentenced to 6 ½ Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Raul Adrian Torres, 22, of Fresno, was sentenced today to 6 ½ years in prison for being a felon in possession a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on March 15, 2018, Torres was found to be in possession of a 9 mm hand gun with an obliterated serial number. Torres had two previous felony convictions for domestic violence in 2016 and 2017 and is prohibited from possessing a firearm. On Jan. 23, Torres pleaded guilty to the offense.
This case was the product of an investigation by Homeland Security Investigations, the Multi-Agency Gang Enforcement Consortium (MAGEC), and the Fresno Police Department. Assistant U.S. Attorneys Kirk E. Sherriff and Jessica A. Massey prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Four Bureau of Prisons Correctional Officers Indicted by Federal Grand JuryRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announces that a federal grand jury sitting in Raleigh indicted four correctional officers employed by the Federal Bureau of Prisons (BOP) for making false statements surrounding three unrelated inmate deaths that occurred at the Federal Correctional Complex in Butner, North Carolina in 2019.
TYLER ROBISON, 41, ADAM COCKERHAM, 31, LONNIE FAIRLCOTH, 54, all of Creedmoor, and ERIC STEPHENSON, 37, of Angier, were each indicted on one count of making a false statement. The respective indictments allege that ROBISON, COCKERHAM, and STEPHENSON, in unrelated incidents involving the death of an inmate, made false entries on government forms documenting that they had completed rounds in an inmate housing unit when they had not. FAIRCLOTH is alleged to have made a false statement to an Office of Inspector General Special Agent during the course of the investigation. If convicted, they each face up to five years imprisonment and five years of supervised release.
The charges and allegations contained in the Indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The Department of Justice’s Office of Inspector General (OIG) conducted the investigation in this matter.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Former teacher gets 10 years for two child pornography-related convictionsRead the Press Release
HOUSTON – A 49-year-old former charter school teacher has been ordered to federal prison following his convictions for coercion and enticement of a child and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Christopher Emerson, Katy, pleaded guilty Oct. 23, 2019.
Today, U.S. District Judge Sim Lake ordered Emerson to serve a 120 months for each of the convictions. The sentences will run concurrently. He will also serve 10 years on supervised released following completion of his prison term, during which he will have to comply with numerous requirements designed to restrict his access to children and the internet. He has also been ordered to register as a sex offender.
On or about June 7, 2018, authorities were conducting an undercover investigation of ongoing child exploitative crimes on the internet through the use of peer-to-peer software. The investigation led them to an IP address making child pornography available for sharing.
They downloaded 14 videos with file names that included toddlers, 4-year-old and 9-year olds from that IP address depicting child pornography. In several of the videos, minors under the age of 8 and 12 are caused to engage in sexually-explicit conduct including oral penetration of a minor male by an adult male’s penis.
The IP address returned back to Emerson at an address in Katy.
On June 22, 2018, law enforcement executed a search warrant at his home where they learned he was living with a minor female relative and his wife. They also seized a laptop and interviewed the child. At that time, she indicated Emerson had caused her to touch his penis was she was 6 or 7 years old.
Authorities further learned of a video of the young female, naked, in her bedroom after exiting the shower that available on Emerson’s computer media. Emerson collected and filed this video along with other child pornography videos on his computer.
He attempted to rationalize his creation of the video by claiming he set up his cell phone in the minor’s bedroom to catch her taking nude photos of herself. He claimed she was sending them to others, but the investigation revealed she had not done so.
At the time of the search, law enforcement also seized the laptop. Forensic analysis revealed he possessed one image and 34 videos of child pornography. One particular video included a minor female under the age of 5.
Emerson has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page
Former Social Security Employee Sentenced to Federal Prison for Stealing More than $70,000 from Social Security BeneficiariesRead the Press Release
Florence, South Carolina --- Acting United States Attorney A. Lance Crick announced today that Kianna Parrot, 31, of Florence, was sentenced to more than a year in federal prison after pleading guilty to accessing a protected computer for purposes of stealing benefits from disabled social security beneficiaries.
Evidence presented at the change of plea hearing showed that from September 27, 2017, to June 29, 2018, Parrot – who then worked as a claims specialist for the Social Security Administration in Florence – used her government computer to defraud beneficiaries out of their Supplemental Security Insurance payments. The SSI program protects the most vulnerable members of society by paying benefits to disabled adults and children who have limited income and resources.
Officials with the Social Security Administration first noticed suspicious deposits to Parrot’s personal accounts from SSI accounts. The ensuing investigation revealed that Parrot diverted SSI underpayments intended for legitimate beneficiaries to her own account. She accomplished this theft by using her Social Security Administration computer and personal identifying number to access the social security records of individuals owed SSI underpayments. Once she accessed these records, she would initiate a payment transaction which listed the names and social security numbers of the true beneficiaries, but which listed Parrot’s banking information. Parrot ultimately stole more than $70,000.
United States District Judge Mary G. Lewis sentenced Parrot to 18 months in federal prison, to be followed by a three-year term of supervised release. There is no parole in the federal system.
The case was investigated by the Social Security Administration’s Office of the Inspector General. Assistant United States Attorney Derek A. Shoemake of the Florence office prosecuted this case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Senior Alstom Executive Sentenced to Prison for Role in Money Laundering Scheme to Promote Foreign BriberyRead the Press Release
A former senior executive with Alstom S.A. (Alstom), a French power and transportation company, was sentenced in federal court in New Haven, Connecticut, to 15 months in prison today for his role in a multi-year, multimillion-dollar money laundering scheme designed to promote violations of the Foreign Corrupt Practices Act (FCPA).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Assistant Director in Charge Paul D. Delacout of the FBI’s Los Angeles Office made the announcement.
Lawrence Hoskins, 69, was sentenced on charges of conspiracy and money laundering, following his conviction in November 2019, after a one-week jury trial before U.S. District Judge Janet Bond Arterton, who imposed today’s sentence. In addition to his prison term, Hoskins was fined $30,000.
According to the evidence presented at trial, Hoskins was a senior vice president for Alstom’s International Network, who engaged in a conspiracy to promote the payment of bribes to officials in Indonesia in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for Alstom Power Inc. of Connecticut and its consortium partner, Marubeni Corporation, to provide power-related services for the citizens of Indonesia. The officials in Indonesia included a high-ranking member of the Indonesian Parliament and the President of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia. To conceal the bribes, Hoskins and his co-conspirators retained two consultants purportedly to provide legitimate consulting services on behalf of Alstom Power Inc., in connection with the Tarahan project. The primary purpose of hiring the consultants was to conceal the bribes to Indonesian officials, the evidence showed.
The first consultant retained by Hoskins and other members of the conspiracy received hundreds of thousands of dollars in his Maryland bank account to be used to bribe the member of Parliament, the evidence showed. The consultant then transferred the bribe money to a bank account in Indonesia for the benefit of the official. According to emails admitted at trial, Hoskins and other co-conspirators discussed in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project, including referring to him as a “cashier.”
The trial evidence further showed that, in the fall of 2003, Hoskins and his co-conspirators determined that the first consultant was not effectively bribing key officials at PLN, who expressed concerns that the first consultant was just going to give them “pocket money” and “disappear” after Alstom Power Inc. won the project. As a result, the co-conspirators retained a second consultant to more effectively bribe PLN officials. Evidence revealed that Hoskins and his co-conspirators pressed Alstom Power Inc. to front-load the second consultant’s terms of payment in order to “get the right influence” due to upcoming elections. Hoskins and his co-conspirators were successful in securing the Tarahan project and subsequently made payments to the consultants for the purpose of bribing the Indonesian officials.
The FBI’s Los Angeles Field Office is investigating the case with assistance from the FBI’s Meriden, Connecticut, Resident Agency. The department appreciates the significant cooperation provided by its law enforcement colleagues in Indonesia, Switzerland's Office of the Attorney General and the United Kingdom, as well as authorities in France, Germany, Italy, Singapore and Taiwan.
Senior Deputy Chief Daniel S. Kahn and Assistant Chief Lorinda Laryea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
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.
Former Philadelphia Attorney Pleads Guilty to Stealing Estate Funds from ClientsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Harris Roy Rosen, 65, of Sag Harbor, New York, pleaded guilty before United States District Court Judge Wendy Beetlestone to fraud charges stemming from a scheme to steal funds from his clients.
The defendant, an attorney who practiced law in Philadelphia through the business Rosen and Rosen PC, was charged by Information in February 2020 with wire fraud, aggravated identity theft, and tax evasion. From approximately 2013 through 2017, he perpetrated a complex fraud scheme through which he stole settlement and estate funds from his clients to support his lavish lifestyle, including the purchase of homes in both Philadelphia and the Hamptons, NY, and a Mercedes-Benz vehicle. As part of the scheme, Rosen routinely lied to clients about the status of their funds; forged clients’ names on settlement checks to deposit them into his personal bank accounts; forged checks to steal money from a client; and created fake bank statements to lull clients into believing that their settlement or estate funds were in appropriate bank accounts waiting to be disbursed. Ultimately, many clients did not get any of the settlement or estate funds to which they were entitled. Rosen also intentionally failed to file tax returns to avoid reporting his illicit income.Through his fraud scheme, the defendant defrauded clients of approximately $796,000. Based upon his evasion of federal taxes, he has a criminal tax due and owing to the Internal Revenue Service of approximately $261,000.
“Attorneys work in positions of trust and therefore must be held to the highest standards of ethical conduct,” said U.S. Attorney McSwain. “In this case, Rosen took advantage of his clients and swindled them in order to bankroll his lifestyle. That is reprehensible. My Office will continue to protect the public against fraudsters like Rosen who abuse their positions of trust.”
“Rosen funded his lavish lifestyle with money he stole from his clients,” said Michael Montanez, Acting Special Agent in Charge of IRS-Criminal Investigation. “Rosen utilized various means to conceal his theft from his clients and evade his tax liability. At this time of year, when hard-working Americans are sitting down to prepare their tax returns, it is especially disappointing to see the overt steps some individuals will take to hide their taxable income from the government.”
“Put simply, this is a case about greed and the abuse of trust,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “For years, Harris Rosen lived extravagantly on the money he stole from his clients. While they counted on him to act in their best interests, he considered only his own. The FBI will always work to shut down fraudsters like this, bring justice for their victims, and protect the public.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigative Division, and is being prosecuted by Assistant United States Attorney Lesley S. Bonney.
Former Marion County physician admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Eugenio Menez, a former physician of Fairmont, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Menez, age 69, pled guilty to a one-count information this week charging him with “Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice.” Menez admitted to illegally distributing oxycodone in September 2015 in Marion County.
Menez was a family physician who practiced in Marion County. He distributed controlled substances outside the course of professional medical practice by writing prescriptions for several female patients in exchange for sexual favors. Even though the female patients had medical appointments, those visits involved sexual acts, and Menez did not conduct medical exams of those patients. The appointments would be scheduled either early in the morning at his office before his staff reported or at his residence. The patients believed they would have been denied their prescriptions if they did not consent to the sexual acts. The patients’ accounts were corroborated by numerous video recordings produced by Menez.
“This doctor’s actions are beyond reprehensible. His medical degree put him in a position of power and he abused it in a disgusting manner. His degree will not protect him at sentencing,” said Powell.
Menez has surrendered his medical license, as well as his DEA registration, which permitted him to write prescriptions.
Menez faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Former Acting Inspector General for the U.S. Department of Homeland Security Indicted on Theft of Government Property and Scheme to Defraud the United States GovernmentRead the Press Release
WASHINGTON, D.C. – A federal grand jury in the District of Columbia returned a sixteen-count indictment against a former Acting Inspector General for the U.S. Department of Homeland Security (“DHS”) and a former subordinate for their alleged theft of proprietary software and confidential databases from the United States government as part of a scheme to defraud the United States government.
U.S. Attorney Timothy J. Shea for the District of Columbia, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Inspector General Joseph V. Cuffari for the U.S. Department of Homeland Security, and Inspector General Tammy L. Whitcomb for the United States Postal Service made the announcement.
The indictment charges Charles K. Edwards, 59, of Sandy Spring, Maryland, and Murali Yamazula Venkata, 54, of Aldie, Virginia, with conspiracy to commit theft of government property and to defraud the United States, theft of government property, wire fraud, and aggravated identity theft. The indictment also charges Venkata with destruction of records. The indictment, which was returned on Thursday, March 5, 2020, was unsealed this morning after Edwards and Venkata were taken into custody under the charges. Both defendants will be presented for an initial appearance at 1:45 p.m. today before United States Magistrate Judge Robin M. Meriweather.
According to the allegations in the indictment, from October 2014 to April 2017, Edwards, Venkata, and others executed a scheme to defraud the United States government by stealing confidential and proprietary software from the Office of the Inspector General of DHS (DHS-OIG), along with sensitive government databases containing personal identifying information (“PII”), so that Edwards’s company, Delta Business Solutions, could later sell an enhanced version of DHS-OIG’s software to the Office of Inspector General for the U.S. Department of Agriculture (“USDA-OIG”) at a profit. Although Edwards had left DHS-OIG in December 2013, he continued to leverage his relationship with Venkata and other DHS-OIG employees to steal the software and the sensitive government databases.
The indictment further alleges that, in addition to stealing DHS-OIG’s software and the sensitive government databases, Venkata and others also assisted Edwards by reconfiguring his laptop so that he could properly upload the stolen software and databases, provided troubleshooting support whenever Edwards required it, and helped him build a testing server at his residence with the stolen software and databases, which contained PII. As further part of the alleged scheme, Edwards retained software developers in India for the purpose of developing his commercial alternative of DHS-OIG’s software. In so doing, Edwards not only shared DHS-OIG’s proprietary software with foreign nationals but also the PII of U.S. federal employees and individuals implicated (either as victims, subjects, or witnesses) in official investigations conducted by DHS-OIG as well as the Office of Inspector General for the U.S. Postal Service (“USPS-OIG”).
The indictment is the result of an ongoing investigation by DHS-OIG and USPS-OIG and is being prosecuted by Assistant United States Attorney David B. Kent of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section.
The defendants face maximum terms of imprisonment of 5 years on the conspiracy to commit theft of government property charge; 10 years on the theft of government property charge; and 20 years on the wire fraud charges. The defendants face a mandatory minimum sentence of 2 years of imprisonment on the aggravated identity theft charges. Venkata faces a maximum term of imprisonment of 20 years on the destruction of records charge. Both defendants face fines on each count of conviction of up to $250,000 or twice the pecuniary gain or loss arising from the scheme alleged in the indictment.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
Former Acting Inspector General for the U.S. Department of Homeland Security Indicted on Theft of Government Property and Scheme to Defraud the United States GovernmentRead the Press Release
A federal grand jury in the District of Columbia returned a 16-count indictment against a former Acting Inspector General for the U.S. Department of Homeland Security (DHS) and a former subordinate for their alleged theft of proprietary software and confidential databases from the U.S. government as part of a scheme to defraud the U.S. government.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Timothy J. Shea for the District of Columbia, DHS Inspector General Joseph V. Cuffari and Inspector General Tammy L. Whitcomb for the U.S. Postal Service (USPS) made the announcement.
The indictment charges Charles K. Edwards, 59, of Sandy Spring, Maryland, and Murali Yamazula Venkata, 54, of Aldie, Virginia, with conspiracy to commit theft of government property and to defraud the United States, theft of government property, wire fraud, and aggravated identity theft. The indictment also charges Venkata with destruction of records.
According to the allegations in the indictment, from October 2014 to April 2017, Edwards, Venkata, and others executed a scheme to defraud the U.S. government by stealing confidential and proprietary software from DHS Office of Inspector General (OIG), along with sensitive government databases containing personal identifying information (PII) of DHS and USPS employees, so that Edwards’s company, Delta Business Solutions, could later sell an enhanced version of DHS-OIG’s software to the Office of Inspector General for the U.S. Department of Agriculture at a profit. Although Edwards had left DHS-OIG in December 2013, he continued to leverage his relationship with Venkata and other DHS-OIG employees to steal the software and the sensitive government databases.
The indictment further alleges that, in addition to stealing DHS-OIG’s software and the sensitive government databases, Venkata and others also assisted Edwards by reconfiguring his laptop so that he could properly upload the stolen software and databases, provided troubleshooting support whenever Edwards required it, and helped him build a testing server at his residence with the stolen software and databases, which contained PII. As further part of the alleged scheme, Edwards retained software developers in India for the purpose of developing his commercial alternative of DHS-OIG’s software.
The indictment is the result of an ongoing investigation by DHS-OIG and USPS-OIG and is being prosecuted by Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney David B. Kent of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
Foreign currency trader pleads guilty to fraudRead the Press Release
ATLANTA – Kevin Perry has pleaded guilty to defrauding investors in a foreign currency trading scam that began when he was a teenager.
“Clients that invested with Perry’s company were assured they were secure from loss,” said U.S. Attorney Byung J. Pak. “Actually, Perry was enriching himself and paying off other investors. We encourage citizens to be cautious with investments, and to remember that if it sounds too good to be true, it probably is.”
“This guilty plea will be little solace to the victims who lost their savings because of Perry’s personal greed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is determined to root out and prosecute anyone who undermines investor confidence at the expense of innocent victims.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Perry led investors to believe that his investment company, Lucrative Pips, was successfully earning substantial profits by investing in the foreign currency (or “forex”) market. Perry induced investors into sending money by signing agreements that claimed the investors’ initial investments were secure from loss. In actuality, Lucrative Pips was never registered as a commodity pool operator with the Commodity Futures Trading Commission.
Also, Perry had never generated the historical returns represented to investors, and he was using investor money to enrich himself or to pay off other investors, with the goal of enticing others to invest with him. Even after the Commodity Futures Trading Commission filed a civil complaint against Perry, he continued to make fraudulent investment pitches to potential investors, which included falsely promising an undercover agent that an investment of $10,000 would return a profit of $19,000 to $25,000 per month.
Kevin Perry, 22, of Cartersville, Georgia pleaded guilty before U.S. District Judge William M. Ray, II.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Thomas J. Krepp and Assistant U.S. Attorney Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crime Section, are prosecuting the case. The Commodities and Futures Trading Commission provided invaluable assistance throughout the course of the investigation.
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 Grand Jury Indicts Birmingham Man for CarjackingRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury recently indicted a Birmingham man for an armed carjacking, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
A two-count indictment filed in U.S. District Court charges Tadarrius Lawaun Smith, 21, with the carjacking and carrying and brandishing a firearm during and relation to a violent crime on December 4, 2019.
“Carjacking is one of the most terrifying crimes that we prosecute,” Town said. “We will not sit idly by and allow criminals to intimidate our citizens with such violence. We will find you and we will prosecute you. We are thankful that this victim survived and for the assistance of the citizens who provided information to the Birmingham Police Department.”
“Removing the criminal element that uses a firearm to facilitate violent crimes such as a carjacking is a priority of ATF,” Watson said.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Explosives and Firearms. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The maximum penalty for carjacking is 10 years in prison. The maximum penalty for brandishing a firearm during and in relation to a violent crime carries a mandatory seven years in prison per count, to be served consecutively to any other sentence imposed for the crime.
The ATF investigated the case, along with the Birmingham Police Department. Assistant U.S. Attorney Alan Baty is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury Indictments AnnouncedRead the Press Release
TULSA, Okla. –United States Attorney Trent Shores announced today the results of the March Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Johnny Fay Armer and William Norman Moore. Possession of Methamphetamine With the Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Armer, 36, and Moore, 42, both of Green Forest, Arkansas, are charged with knowingly possessing with intent to distribute and to distribute 500 grams or more of methamphetamine. They are further charged with possessing a firearm in furtherance of their drug trafficking crime. The Bixby Police Department, Drug Enforcement Administration, and Bureau of Indian Affairs are the investigative agencies.
Demonte Bell. Threatening to Murder a Member of the Immediate Family of a Federal Law Enforcement Officer; Threatening to Murder a Federal Law Enforcement Officer. Bell, 35, of Tulsa, is charged with threatening to murder the children of two Deputy U.S. Marshals when the deputies were engaged in official duties. Bell is further charged with threatening to murder the two Deputy U.S. Marshals while they were engaged in official duties. The threats were allegedly made on Dec. 27, 2019. The U.S. Marshals Service is the investigative agency.
William Joseph Booth III. Failure to Register as a Sex Offender. Booth III, 35, of Tulsa, is charged with knowingly failing to register as a sex offender. The Tulsa Police Department and U.S. Marshals Service are the investigative agencies.
Jamie Campa-Quinones. Unlawful Reentry of a Removed Alien. Campa-Quinones, 44, of Tulsa, is charged with reentry of a removed alien, having returned to the United States unlawfully after being deported Feb. 25, 2016, at or near Del Rio, Texas. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) and Enforcement and Removal Operations (ICE-ERO) are the investigative agencies.
David Ellis Fisher. Willfully Making and Subscribing a False Income Tax Return. Fisher, 63, of Bristow, is charged with filing false tax returns. According to the indictment, Fisher owned and operated A-1 Power Tongs and Casing Crews, LLC, a business that provided equipment and services to oil and gas extraction companies. From 2013 through 2015, Fisher allegedly willfully underreported his income on his tax returns by depositing a portion of the payments to his business into a bank account that Fisher did not disclose to his bookkeeper or tax return preparer. The IRS-Criminal Investigation Division is the investigative agency.
Antonio Gonzalez and Paul James Lankford. Felon in Possession of Firearms and Ammunition. Gonzalez, 34, of Tulsa, is charged with being a felon in possession of a Smith & Wesson 9 mm semi-automatic pistol and 31 rounds of associated ammunition. Lankford, 32, of Broken Arrow, is charged with being a felon in possession of a Smith & Wesson 9mm semi-automatic pistol, a Smith and Wesson Airweight .38 caliber revolver and 56 rounds of associated ammunition. The Tulsa Police Department, FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Jacob Wayne Little. Felon in Possession of Firearm and Ammunition. (superseding indictment) Little, 26, of Kellyville, is charged with being a felon in possession of a Smith & Wesson .380 caliber semi-automatic pistol and associated ammunition when he was arrested on Nov. 4, 2019. Little is further charged with being a felon in possession of a Taurus .380 ACP caliber pistol and associated ammunition during a separate incident on Feb. 10, 2020. The Tulsa Police Department, U.S. Marshals Service and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Ryan David Miller. Sexual Exploitation of a Child by a Parent or Guardian; Advertising Child Pornography; Distribution of Child Pornography; Receipt of Child Pornography; Possession of Child Pornography; Tampering with a Victim. Miller, 33, of Sapulpa, is charged in Count 1 with producing child pornography of his minor children. In Count 2, he is charged with knowingly using electronic means to advertise the child pornography. In Count 3, he is charged with knowingly distributing the child pornography through electronic means. In Count 4, Miller is charged with knowingly receiving child pornography. In count 5, Miller is charged with knowingly possessing and accessing child pornography that involved the use of two minors below the age of 12. In Count 6, Miller is charged with tampering with, or intimidating, a victim. The FBI, Broken Arrow Police Department, and Tulsa Police Department are the investigative agencies.
Dallas Gray Morton. Felon in Possession of Firearm and Ammunition (superseding indictment) Morton, 26, of Tulsa, is charged with being a felon in possession of a Smith & Wesson .40 S&W caliber semi-automatic pistol and associated ammunition on Oct. 1, 2019. He is further charged with being a felon in possession of a Glock GMBH 9x19 caliber semi-automatic pistol and ammunition on Feb. 24, 2020. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Brian James Susi. Felon in Possession of Firearm and Ammunition). Susi, 32, of Broken Arrow, is charged with being a felon in possession of a Smith & Wesson .380 ACP caliber semi-automatic pistol and associated ammunition on Dec. 30, 2019. He is further charged with being a felon in possession of a Glock GMBH 9x19 caliber semi-automatic pistol and associated ammunition on Jan. 15, 2020. The Owasso Police Department, Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Vernard Earl Tucker. Failure to Register as a Sex Offender. Tucker, 50, of Wyandotte, is charged with knowingly failing to register as a sex offender. The U.S. Marshals Service is the investigative agency.
Evans man indicted for production, possession of child pornographyRead the Press Release
AUGUSTA, GA: An Evans man has been indicted by a federal grand jury for production and possession of child pornography.
Michael Peyton Gunn, 35, was indicted by a grand jury in U.S. District Court on four counts of Production of Child Pornography and one count of Possession of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charges carry a penalty of up to 30 years in prison per count for production of child pornography, along with substantial fines, asset forfeiture and restitution, with a period of supervised release after completion of the prison term.
There is no parole in the federal system.
“When a lead from an investigation in another state was received, our local FBI partners jumped into action to track down and apprehend those who exploit the most vulnerable among us,” said U.S. Attorney Christine. “There will be no place for predators to hide: We will find them and bring them to justice – and halt the victimization of children.”
According to court documents and testimony, an FBI investigation in another state led agents to Gunn as a source of child pornography, resulting in the discovery of child pornography on electronic devices in his home.
“The FBI is committed to protecting every citizen, and no one more than innocent children who are preyed on by adults,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “These charges are particularly troubling and a reason the FBI is committed to identifying and apprehending predators accused of these atrocious acts.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated under the Department of Justice Project Safe Childhood by the FBI and prosecuted for the United States by Assistant U.S. Attorney Tara M. Lyons.
Estherville, Iowa Man Off to Federal Prison for Meth and Gun ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine while illegally possessing guns was sentenced March 4, 2020, to 11 years in federal prison.
Dustin Julich, 35, from Estherville, Iowa, pled guilty on September 20, 2019, to conspiracy to distribute methamphetamine and illegal possession of a firearm. Julich was previously convicted of theft second degree and burglary third degree which prohibits him from possessing firearms in Iowa.
At the plea hearing, Julich admitted that for about three years he and others distributed over 1 kilogram of methamphetamine in the Estherville, Iowa area. During a search warrant of Julich’s truck and trailer, law enforcement seized approximately ½ pound of methamphetamine along with two guns.
Julich was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Julich was sentenced to 132 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and was investigated by Estherville Police Department, Emmet County Sheriff’s Office, Iowa Division of Narcotics Enforcement, Iowa Great Lakes Drug Task Force, and Iowa Division of Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3010. Follow us on Twitter @USAO_NDIA.
Eight Maryland Men Indicted on Federal Charges Related to a Heroin and Fentanyl Distribution Conspiracy Operating in Washington CountyRead the Press Release
Baltimore – A federal grand jury has returned a second superseding indictment charging eight defendants with federal charges related to a conspiracy to distribute controlled substances, specifically fentanyl and/or heroin in Washington County, Maryland. The second superseding indictment, which was returned on March 4, 2020, adds two additional defendants and six counts. The following defendants are charged in the second superseding indictment:
Christopher Scott Benton, a/k/a Brisco, age 30, of Hagerstown, Maryland; Jarvis Antonio Coleman-Fuller, age 32, of Hagerstown; Eric Tyrell Johnson, a/k/a E, age 36, of Owings Mills, Maryland; Jeroam Edwin Nelson, Jr., a/k/a Boob, age 30, of Hagerstown; Thamar J. Smith, a/k/a SK and Skoal, age 46, of Hagerstown; Philander Alexander Spruill, a/k/a Buddha, age 28, of Hagerstown; Edward Melvin Ware, a/k/a Eddie, age 32, of Edgewater, Maryland; and
Tyler Lee Ware, a/k/a Bugsy, age 32, of Hagerstown.The second superseding indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Washington County Sheriff Douglas Mullendore; Chief Paul “Joey” Kifer of the Hagerstown Police Department; and Washington County Sheriff Charles P. Strong.
According to the 15-count indictment, beginning in about April 2019 and continuing to about November 2019, the defendants conspired to distribute heroin and/or fentanyl in the Washington County area. During the course of the investigation, law enforcement seized narcotics, including at least 1.2 kilograms of fentanyl, four firearms and ammunition, and at least $16,223 in cash. All of the defendants are charged with being members of the conspiracy. Tyler Ware is also charged with distribution of heroin on July 4, 2019. Smith, Johnson, Spruill, Nelson, and Coleman-Fuller are charged with possession with intent to distribute fentanyl and/or heroin; Johnson, Spruill, Nelson, and Coleman-Fuller are charged with being felons in possession of a firearm and/or ammunition; Spruill and Coleman-Fuller are charged with possession of a firearm in furtherance of a drug trafficking crime; and Coleman-Fuller is charged with possession of body armor by a violent felon.
If convicted, Benton, Nelson, and Spruill face a mandatory minimum sentence of at least 10 years in federal prison and up to life in prison for the drug charges; Coleman-Fuller, Johnson, Smith, Edward Ware, and Tyler Ware all face a mandatory minimum sentence of at least five years in federal prison and up to 40 years in prison for the drug charges; Coleman-Fuller, Nelson, and Spruill each face a maximum sentence of 10 years in federal prison for being felons in possession of firearms and/or ammunition; Johnson faces a mandatory minimum sentence of at least 15 years in federal prison and up to life in prison for being a felon in possession of a firearm; and Coleman-Fuller and Spruill face a mandatory minimum of five years in federal prison, consecutive to any other sentence, and up to life in federal prison for possession of a firearm in furtherance of a drug trafficking crime. Coleman-Fuller also faces a maximum of three years in federal prison for possession of body armor by a violent felon. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Nelson, Spruill, and Edward Ware have had an initial appearance in U.S. District Court in Baltimore and remain detained. Benton, Coleman-Fuller, and Smith are expected to have initial appearances today. Johnson and Tyler Ware are in state custody on related charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (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; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the DEA, HSI, the Washington County Narcotics Task Force, and the Washington County State’s Attorney’s Office for their work in the investigation, and thanked the Baltimore County State’s Attorney’s Office for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Christina A. Hoffman, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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East Haven Man Sentenced to 2 Years in Federal Prison for Role in Drug Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PEDRO ORTA-RIVAS, also known as “Cuba” and “El Brujo,” 51, of East Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 24 months of imprisonment, followed by three years of supervised release, for his role in a New Haven-based drug trafficking organization.
According to court documents and statements made in court, an investigation headed by the Drug Enforcement Administration New Haven Task Force and New Haven Police Department revealed that Malbin Rubiera-Herrera, also known as “Chaca,” acquired fentanyl, heroin and cocaine from sources in Connecticut and New Jersey and distributed the drugs through a network of associates in the greater New Haven area. Between October and December 2018, investigators made controlled purchases of narcotics from Rubiera-Herrera. Subsequent court-authorized wiretaps revealed a widespread narcotics trafficking conspiracy that involved the trafficking of kilogram-quantities of fentanyl, heroin and cocaine into Connecticut. Orta-Rivas helped to broker narcotics transactions, distributed drugs for the organization, and collected monies owed.
On June 5, 2019, a grand jury returned a superseding indictment charging Orta-Rivas, Rubiera-Herrera and 12 other individuals with fentanyl, heroin and cocaine trafficking offenses. On November 5, 2019, Orta-Rivas pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, heroin and cocaine.
Orta-Rivas, who is released on a $100,000 bond, is required to report to prison on April 7, 2020.
Rubiera-Herrera pleaded guilty on June 20, 2019, and awaits sentencing.
This matter is being investigated by the DEA New Haven Task Force and the New Haven Police Department, with the assistance of the Federal Bureau of Investigation, Department of Homeland Security, U.S. Marshals Service, Connecticut State Police, Connecticut Department of Correction, East Haven Police Department, Easton Police Department, Orange Police Department, and the Cape May County (N.J.) Prosecutor's Office, Gangs, Guns and Narcotics Task Force.
The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service - Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and S. Dave Vatti.
Durham Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
WINSTON-SALEM, N.C. - Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that SASHA SHABLEY JACKSON pleaded guilty to a felony charge of aiding and abetting the preparation of false tax returns.
JACKSON, age 32, of Durham, N.C., pleaded guilty before Chief United States District Judge Thomas D. Schroeder in federal court in Winston-Salem, to one count of tax fraud, in violation of 26 U.S.C. § 7206(2).
According to documents filed with the court, JACKSON owned and operated Top Notch Professional Tax Services, in Durham, North Carolina, preparing tax returns for clients from 2015 to 2019. During that time, she knowingly and willfully prepared and caused to be filed with the IRS income tax returns that were materially false. The false items including false dependents, false income, false education credits, and false fuel tax credits, all of which produced fraudulently inflated refunds. The IRS determined that the tax loss attributable to JACKSON’s misconduct is $1,196,263.
The defendant faces a maximum penalty of three years imprisonment, a fine of up to $250,000, or both, and a term of supervised release of not more than one year. She also agreed to pay restitution in the amount of $1,196,263. Sentencing will occur in Winston-Salem on June 9, 2020 at 2:00 p.m.
The case was investigated by Internal Revenue Service – Criminal Investigations. The case was prosecuted by Assistant United States Attorney Tanner Kroeger.
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Dominican National Sentenced to Five Years in Federal Prison for Fentanyl and Heroin Conspiracy and DistributionRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Worcester for distributing fentanyl and heroin.
Erotides Mendez, 50, a Dominican national previously residing in New York City, was sentenced by U.S. District Court Judge Timothy J. Hillman to five years in prison to be followed by four years of supervised release. Mendez will be deported upon completion of his sentence. In November 2019, Mendez pleaded guilty to one count of conspiring to distribute heroin and more than 40 grams of fentanyl, one count of distributing heroin and more than 40 grams of fentanyl and one count of possessing heroin and more than 40 grams of fentanyl with intent to distribute. Mendez and co-defendant Albeiro Gomez, who previously pleaded guilty and is set to be sentenced on March 20, 2020, were arrested in December 2018.
Investigators intercepted communications to and from the defendants’ phones which evidenced their drug trafficking activities. Mendez was involved in the acquisition of heroin and fentanyl in New York and the transportation of these drugs for sale in and around Worcester. Gomez was a livery driver in Worcester who used his livery vehicle to procure and distribute drugs, meet with customers and to collect cash derived from drug sales.
In November 2018, law enforcement stopped a passenger van headed from New York City to Worcester, and observed Mendez – a passenger in the van – throw a bag containing approximately 150 grams of heroin from the van. In December 2018, agents stopped a car in which Mendez was a passenger and located approximately 150 grams of heroin and 138 grams of a mixture of fentanyl and heroin.
In connection with this investigation, Freiber Betancourth, of Worcester, pleaded guilty to drug trafficking charges and was sentenced to 12 months and one day in prison. Betancourth distributed heroin and fentanyl from the parking lot of his employer. In addition, Jonathan Bobadilla Rosa pleaded guilty to drug trafficking and identity theft charges and is scheduled to be sentenced on April 23, 2020.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistance with the investigation was provided by the Massachusetts State Police and the U.S. Department of State, Diplomatic Security Service, Boston Field Office. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division are prosecuting the case.
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Department of Justice to Publish Final Rule to Comply Fully with DNA Fingerprint Act of 2005Read the Press Release
The Department of Justice today issued a final rule to implement the Attorney General’s authority provided by the bipartisan DNA Fingerprint Act of 2005 to authorize the Department of Homeland Security (DHS) to collect DNA samples from certain non-United States persons it detains. Once implemented, this rule will facilitate federal, state, and local investigative and crime reduction efforts.
“Today’s rule assists federal agencies in implementing longstanding aspects of our immigration laws as passed by bipartisan majorities of Congress,” said Deputy Attorney General Jeffrey A. Rosen. “Its implementation will help to enforce federal law with the use of science.”
As a result of this rule change, the Department of Justice will ensure that all federal agencies are in full compliance with the bipartisan DNA Fingerprint Act, which was a component of a larger legislative package that passed the House of Representatives by an overwhelming vote of 415 to four, and the Senate by unanimous consent. The DNA Fingerprint Act provided the Attorney General with the exclusive authority to draft regulations to authorize and direct any federal agency to “collect DNA samples from individuals who are arrested, facing charges, or convicted or from non-United States persons who are detained under the authority of the United States.” 24 U.S.C. § 40702(a)(1)(A).
Since Congress’ passage of the bipartisan DNA Fingerprint Act, the Federal Bureau of Investigation (FBI) built a high-throughput DNA sample processing infrastructure through its Combined DNA Index System (CODIS). The CODIS database is a vital tool for federal, state, and local law enforcement investigations. All fifty states, the District of Columbia, Puerto Rico, and federal law enforcement agencies participate in the national sharing of DNA profiles through CODIS. The FBI also has consistently reduced the operational burden for individual federal agencies to collect DNA through technological enhancements.
In advance of this rule change, the Department of Justice and DHS have been working collaboratively to conduct a pilot program for the collection of DNA from non-U.S. persons detained by DHS. As with all other DNA samples that federal agencies collect under the authority of the bipartisan DNA Fingerprint Act, the DNA samples that DHS collects from its non-United States person detainees will be entered into the Federal Bureau of Investigation’s Combined DNA Index System (CODIS). The FBI’s laboratory has the capacity to handle the increased input from DHS, and its capabilities can be scaled up to meet additional capacity. The FBI will provide DHS with the DNA collection kits, analyze the samples, and ensure that law enforcement agencies use the results in accordance with the FBI’s stringent CODIS privacy requirements.
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 charges unprecedented number of elder fraud defendants nationwide and launches hotlineRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today in announcing the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the Department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The Department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
“When the elderly are defrauded, not only has their trust been violated, but it causes a significant financial hardship, and these losses can be devastating to them,” said Minkler. “We are committed to holding the perpetrators of elder fraud schemes accountable and ensuring our elderly citizens receive the protection they deserve.”
For further information on elder fraud cases highlighted in this sweep within the Southern District of Indiana, as well as across the country, please see the interactive map located at the following link: https://www.justice.gov/civil/elder-fraud-sweeps-2020.
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint
to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
Denver Woman Pleads Guilty to Mail Fraud and Tax Evasion After Using Company Money to Purchase $846,441 in Goods That Were Then Sold on EbayRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Kristen Martin, age 38, of Denver, pleaded guilty to mail fraud and federal tax evasion. The defendant appeared at the change of plea free on bond. Her bond was continued after the hearing. The IRS-Criminal Investigation, the Federal Bureau of Investigation (FBI) and the U.S. Postal Inspection Service joined in today’s announcement.
According to the filed Information and the stipulated facts in the plea agreement, Martin was an executive assistant with her employer from January 2013 through December 2016. As part of her duties as an executive assistant, Martin was authorized to use a company account at Staples to purchase supplies that were needed by her employer. Due to various changes in assignments within the company, over the years Martin gained access to and utilized 23 different company accounts for purposes of ordering supplies from Staples.
From 2013 through 2016, Martin used the company’s accounts at Staples to order unauthorized items which she kept for herself and resold online through Ebay and other means. According to the Information, Martin fraudulently ordered, and billed to her company, 4,790 scientific calculators, 250 Ipads/tablet computers, 440 Apple TVs, 178 Kindles, 159 headsets, and 5 cameras, causing the company a loss of $846,441.11. Martin disputes this amount but agrees that she caused a loss of more than $550,000 to her employer through her scheme. Martin resold these fraudulently obtained goods and enriched herself from the sales to the tune of $571,725.61. Further, Martin used the company’s Federal Express account to ship the fraudulently purchased items to her buyers, costing her employer an additional loss of $7,896.57.
When senior employees of the company questioned Martin about some of these irregular purchases, she lied and stated that the purchases were made for a company project in a different division of the company.
In addition to both lying to and stealing from the company, Martin also willfully hid this fraudulently earned income from the IRS by filing false federal income tax returns for the years 2013 through 2016, in which she made false statements and failed to report the hundreds of thousands of dollars that she made from her scheme.
As a result of her actions, Martin has agreed to pay restitution in an amount up to $872,337.68 to her employer and in the amount of $161,864 to the IRS. The guilty plea hearing was held before U.S. District Court Judge Christine M. Arguello.
Martin will be sentenced by Judge Arguello on June 15, 2020. She was first charged by Information on January 14, 2020.
This case was investigated by the Internal Revenue Service—Criminal Investigation, the FBI and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Pegeen D. Rhyne
Defendant Sentenced to 5 1/2 Years for Witness Tampering and Lying to the FBI in Garland Shooting InvestigationRead the Press Release
PHOENIX, Ariz. – On March 3, 2020, United States District Judge John J. Tuchi sentenced Abdul Khabir Wahid, 54, of Phoenix, to 67 months in prison for making a false statement to the FBI during an investigation involving international terrorism and tampering with a witness, in violation of 18 U.S.C. § 1001(a)(2) and 18 U.S.C. § 1512(b)(3), respectively. Wahid was sentenced to three years of supervised release to follow his prison term. Wahid’s trial was held before Judge Tuchi from February 26, 2019, to March 1, 2019, after Wahid waived a jury trial.
Evidence at trial showed that Wahid committed the offenses during the FBI investigation of the May 3, 2015, ISIS-related attack on the Muhammad Art Exhibit and Contest in Garland, Texas. Elton Simpson and Nadir Soofi drove from Arizona to Texas to conduct the attack, stopped their car near the contest location, and began firing semiautomatic rifles at security personnel and law enforcement officers. One of their bullets struck and injured a security guard. Police officers shot and killed Simpson and Soofi during the firefight. Wahid did not travel to Texas and was not involved in the attack.
On May 1, 2015, just days before the attack, Simpson instructed Wahid to deliver a key and an envelope to a third person. During a May 6, 2015, interview with FBI agents, Wahid made false statements and concealed those facts, despite having delivered the key and envelope as instructed by Simpson. Trial testimony revealed the FBI would have pursued additional avenues of investigation had Wahid truthfully disclosed the information, but was unable to do so in a timely manner. Also, between May 4 and July 8, 2015, Wahid tried to persuade Soofi’s brother not to speak with the FBI, to lie about seeing Simpson and Soofi with guns, and to lie about observing ISIS propaganda videos in Simpson and Soofi’s apartment.
“Wahid obstructed a terrorism investigation and is no friend of the United States,” said U.S. Attorney Michael Bailey. “I want to thank the FBI for the tremendous effort that went into the underlying investigation, as well as the brave law enforcement officials in Garland whose quick action during the attack prevented a much larger tragedy.”
“The FBI takes its mission of protecting the American public seriously, and we are dedicated to conducting fair and thorough investigations,” said Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office. “Wahid not only lied to the FBI but he directly interfered with an investigation. This sentencing shows that, those who participate in that type of activity will be held accountable for their actions. The FBI would like to thank the U.S. Attorney’s Office for their diligent work on this case.”
The case was investigated by the FBI, and the prosecution was handled by Assistant U.S. Attorneys Kristen Brook and Joseph Koehler of the District of Arizona.
Consultant Indicted for Allegedly Corruptly Offering Money to Illinois State SenatorRead the Press Release
CHICAGO — A Chicago consultant has been indicted in federal court for allegedly corruptly offering money to an Illinois State Senator in connection with obtaining state approval for a suburban development project.
WILLIAM A. HELM, 56, of Chicago, is charged with one count of federal program bribery. The indictment was returned Thursday in U.S. District Court in Chicago. Arraignment is set for March 10, 2020, at 2:00 p.m., before U.S. Magistrate Judge Sheila M. Finnegan.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Christopher J. Stetler and James P. Durkin.
According to the indictment, Helm and his consulting firm were retained by a construction company to assist in obtaining approval from the Illinois Department of Transportation for signalization and roadwork in connection with the company’s development project in East Dundee. The company sought approval from IDOT in 2017, the indictment states. From July 2018 to at least November 2018, Helm corruptly offered and agreed to pay money to influence and reward the senator in connection with IDOT approval of the project, the indictment states. At the time, the senator was Chairman of the Senate Transportation Committee and was in a position to assist with obtaining such approvals, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge in the indictment is punishable by up to ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Construction company owner pleads guilty in $2.5M fraud schemeRead the Press Release
McALLEN, Texas – A construction company owner has admitted guilt in connection to his participation in a financial fraud scheme, announced U.S. Attorney Ryan K. Patrick.
Today, Delfino Gaona, 47, McAllen, pleaded guilty to one count of conspiring to defraud the United States and one count of failing to file a currency transaction report by a non-financial trade or business. As part of the plea, he also agreed to a criminal forfeiture of $2,587,821.66.
Gaona was the owner of Keystone Construction, based in Mission. From Dec. 1, 2014, through Nov. 14, 2018, he accepted over $10,000 in approximately 13 separate real estate transactions. However, he failed to file an IRS Form 8300 with the Secretary of the Treasury for each of the transactions. As part of his plea, he admitted to receiving more than $2.5 million and structuring the transactions and falsifying receipts in an effort to evade the reporting requirement.
Under federal law, any non-financial trade or business that received more than $10,000 in cash in one transaction or two or more related transactions must file an IRS Form 8300.
U.S. District Judge Micaela Alvarez will impose sentencing June 24. At that time, Gaona faces up to 10 years in federal prison and a possible $500,000 maximum fine for failing to file a currency transaction report. He also faces up to five years conspiracy to defraud the United States and a possible $250,000 maximum fine.
The FBI – Complex Financial Crimes Task Force conducted the investigation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety, Texas Department of Insurance Fraud Unit, Hidalgo County Sheriff’s Office and police departments in McAllen and Pharr. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
Colorado Man Sentenced for Assaulting a CongressmanRead the Press Release
A man who assaulted U.S. Congressman Steve King was sentenced March 5, 2020, to two years’ probation.
Blake Gibbins, age 27, from Lafayette, Colorado, received the sentence after a September 23, 2019, guilty plea to one count of assaulting a member of congress.
In his plea agreement, Gibbins admitted that on March 22, 2019, at the Mineral City Mill & Grill in Fort Dodge, Iowa, he approached a table where U.S. Congressman Steve King and others were seated. He admitted he then assaulted Congressman King by intentionally throwing a full glass of water on him. He also admitted he was wrong to throw water on Congressman King.
Gibbins was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Gibbins was sentenced to 2 years’ probation, as recommended by both parties. He was also ordered to do 200 hours of community service in the first year of his probation.
The case was prosecuted by Assistant United States Attorney Timothy T. Duax and was investigated by the Federal Bureau of Investigation, the Fort Dodge Police Department, and the United States Capitol Police.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR19-3033-LTS.
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Colombian Submarine Manufacturer Pleads Guilty to Cocaine Smuggling ChargesRead the Press Release
Tampa, Florida – Alexander Giraldo Santa (48, Colombia) has pleaded guilty to conspiracy to possess with the intent to distribute five or more kilograms of cocaine while aboard a vessel subject to the jurisdiction of the United States. He faces a maximum penalty of life in federal prison, although the terms of his extradition prohibit the imposition of a life sentence.
According to the plea agreement, Giraldo Santa participated in the manufacture of numerous self-propelled semi-submersible vessels used to smuggle hundreds of kilograms of cocaine on the high seas. Two of the vessels were intercepted by the United States Coast Guard.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs
Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney James C. Preston, Jr.
Chicopee Man Sentenced to Seven Years in Federal Prison for Child Pornography OffensesRead the Press Release
BOSTON – A Chicopee man was sentenced today in federal court in Springfield for receiving child pornography.
Victor Stepus, 51, was sentenced by U.S. District Court Judge Mark G. Mastroianni to seven years in prison and 10 years of supervised release. In November 2019, Stepus pleaded guilty to three counts of receipt of child pornography and one count of possession of child pornography. Stepus has been in custody since his arrest in August 2015.
The investigation that led to the charges against Stepus began with the discovery of Playpen, a secret child pornography bulletin board and website dedicated to the advertisement and distribution of child pornography and the discussion of matters involving the sexual abuse of children. Playpen existed on the “dark web,” and enabled allowed users, on an anonymous basis, to access the site. When investigators obtained logs from the Playpen site, they found that Stepus had been an active user during a six-month period during 2014 and 2015.
A search of Stepus’s residence resulted in the seizure of a personal computer that contained over 8,000 images and 33 videos of child pornography. These included images depicting the sexual abuse, including bondage, of girls as young as eight years old. Stepus admitted that for the past several years he used his home computer to access and download child pornography two to three times per week.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Chicopee Police Chief William R. Jebb made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
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Chicago Man Pleads Guilty to Engaging in Internet-Based Child Exploitation Enterprise and Child Pornography ConspiracyRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Marqueal Bonds, 22, of Chicago, IL, pleaded guilty to engaging in a nationwide child exploitation enterprise and conspiracy to advertise child pornography. Bonds entered a guilty plea mid-trial before Senior United States District Judge Harvey Bartle, III.
Using Discord, an electronic communications service that allows users to share files and communicate via text chat messages, Bonds and his co-conspirators participated in two separate collections of chat rooms to discuss and share files containing child pornography. Shortly after federal agents executed a search warrant of Discord’s servers in October 2018, revealing messages about child pornography, the defendant confessed to his participation in this child exploitation enterprise. Subsequent forensic analysis of his digital devices confirmed his confession.
“Bonds was part of a deplorable group of sexual predators who exploited thousands of young girls on Discord, a web-based chatroom application,” said U.S. Attorney McSwain. “Bonds and his co-conspirators employed a familiar ruse to lure their victims: they trolled the Internet on legitimate sites like Snapchat, Periscope, and Live.me for vulnerable victims, tricked them into believing they were chatting with boys or girls their own ages, and then obtained video and naked photos of them to share on Discord. Bonds’ guilty plea ensures that he will be held accountable for this exploitation, and my Office will continue to aggressively prosecute child predators in all their noxious forms.”
“Marqueal Bonds not only manipulated underage girls into providing him explicit images of themselves, he shared them online, perpetuating the sexual exploitation of these children,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “We’re pleased that Bonds finally recognized how much damning digital evidence the FBI’s investigation turned up and decided, mid-trial, it was in his best interests to change his plea to guilty. The FBI is working aggressively every day to put predators like this behind bars and prevent them from targeting additional victims.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Kevin Jayne and Department of Justice Trial Attorney Kaylynn Foulon, of the Child Exploitation and Obscenity Section.
Chelsea Landlord Agrees to Settle False Claims Act AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today a $7,000 settlement with 44 Hawthorne, LLC and its owner, Alek Vienneau, to resolve allegations that they submitted false claims to the federal government after receiving impermissible excess rent payments from a low income tenant while participating in a federal housing subsidy program.
The Department of Housing and Urban Development provides federal funding through the Federal Housing Choice Voucher program, commonly referred to as “Section 8,” to assist low income individuals in securing safe housing. The funding is provided through vouchers that are administered by local public housing agencies. The housing subsidy, which may cover all or a portion of a tenant’s monthly rent, is paid directly to the landlord. As a condition for receiving the housing subsidy, the landlord contractually agrees not to charge the Section 8 tenant rent in excess of the amount set by the public housing agency.
Despite this restriction, 44 Hawthorne, LLC and its owner, Alek Vienneau, allegedly collected excess rent from a Section 8 tenant for five months between June and November 2017. Denise Komnenus, the Section 8 tenant, first raised this allegation in a lawsuit filed against the defendants under the qui tam, or whistleblower, provisions of the False Claims Act.
“The Section 8 program provides crucial funding for low income individuals to afford safe housing,” said United States Attorney Andrew E. Lelling. “We will hold accountable landlords who benefit from the program and then take advantage of their tenants.”
“This settlement is the latest example of our continued commitment to hold landlords accountable for actions that seek to enrich themselves at the expense of our poorest neighbors,” said Special Agent in Charge Christina Scaringi, U.S. Department of Housing and Urban Development, Office of Inspector General.
The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The settlement agreement requires the defendants to pay $7,000 to the United States. Ms. Komnenus will receive approximately $1,540 of the recovery in this case.
U.S. Attorney Lelling and HUD OIG SAC Scaringi made the announcement today. This case was handled by Assistant U.S. Attorneys Steven Sharobem and Elianna Nuzum of Lelling’s Office with the assistance of the United States Department of Housing and Urban Development’s Office of Inspector General.
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Catskill Physician Receives 54 Months in Prison for Distribution of Opioids, Health Care Fraud, Aggravated Identity Theft, and Obstruction of JusticeRead the Press Release
ALBANY, NEW YORK – Myra Mabry, age 50, of Catskill, New York, was sentenced today to 54 months in prison for unlawfully distributing opioids, for impersonating her patients and defrauding insurance companies as part of the opioids distribution scheme, and for attempting to obstruct the investigation into her criminal activities.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division.
As part of her August 5, 2019 guilty plea, Mabry, an obstetrician-gynecologist, admitted that between 2015 and 2017, she wrote prescriptions for oxycodone, morphine and hydromorphone to third parties, for no legitimate medical purpose, and then instructed a co-conspirator, Sarah Brown, to fill those prescriptions by impersonating the named recipients at pharmacies, knowing that the patients’ health care benefit programs would pay the costs.
United States Attorney Grant C. Jaquith stated: “Myra Mabry’s disgraceful conduct demonstrates that she has no business practicing medicine. She betrayed her patients, violated her Hippocratic Oath, and orchestrated an elaborate scheme to avoid accountability for her crimes by bribing someone else to take the fall for her. I commend the DEA for its excellent work in this case. The message here is clear: those who criminally violate their professional oaths will be arrested, prosecuted, and imprisoned.”
DEA Special Agent in Charge Ray Donovan stated: “This investigation ends with Myra Mabry’s sentence of over four years in prison, but clearly reinforces law enforcement’s commitment to weeding out opioid traffickers no matter what their profession. I applaud our partners at the U.S. Attorney’s Office for the Northern District of New York, the DEA’s Albany District Office’s Tactical Diversion Squad, and the New York Bureau of Narcotic Enforcement for their diligent work.”
In pleading guilty, Mabry also admitted that she attempted to obstruct a federal investigation into her activities by instructing Brown to testify before a federal grand jury, falsely, that Mabry was the subject of an extortionate scheme. In fact, Mabry was not the subject of an extortionate scheme, was complicit in the scheme to distribute opioids for no medical purpose, and agreed to pay Brown for false testimony in the hope of minimizing her criminal exposure and preserving her medical license.
Mabry surrendered her New York medical license after pleading guilty in August 2019, and has been unable to prescribe controlled substances since October 2017.
United States District Judge Mae A. D’Agostino also sentenced Mabry to 3 years of supervised release, to be served following her release from prison. In sentencing Mabry, Judge D’Agostino described Mabry’s conduct as “horrendous” and a “massive conspiracy in terms of the drugs” involved.
Brown, age 42, of Akra, New York, pled guilty on September 4, 2019 to conspiring to distribute controlled substances, health care fraud, aggravated identity theft, and obstruction of justice. Her sentencing is scheduled for March 11.
This case was investigated by the DEA, with assistance from the New York Bureau of Narcotic Enforcement, and was prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Brooklyn Tax Preparer Sentenced to Prison for Preparing Fraudulent ReturnsRead the Press Release
A Brooklyn, New York, tax return preparer was sentenced to 15 months in prison today for preparing false returns for his clients and himself, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Richard P. Donoghue for the Eastern District of New York.
According to court documents and statements made in court, Emerson Gamory owned and operated Emerson Gamory Income Tax Services Inc. (Gamory Tax), a tax preparation business in Brooklyn. From 2013 through 2017, Gamory falsified client returns by fraudulent claiming deductions for gifts to charity, unreimbursed employee expenses, and education expenses in order to inflate his clients’ refunds. Gamory also prepared false returns for Gamory Tax that underreported its gross receipts and returns for himself that underreported net profits. In total, Gamory caused a tax loss of more than $550,000 to the United States.
On June 25, 2019, Gamory pleaded guilty to aiding and assisting in the preparation of false tax returns and filing a false return for himself.
In addition to the term of imprisonment, U.S. District Judge Carol Bagley Amon ordered Gamory to serve one year of supervised release and to pay $574,565 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Donoghue commended special agents of IRS-CI, who investigated the case, and Assistant Chief Jorge Almonte and Trial Attorney Christopher P. O’Donnell of the Tax Division, and Assistant U.S. Attorney John Vagelatos, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Brooklyn Man Pleads Guilty to Money Laundering ConspiracyRead the Press Release
Earlier today, before United States District Court Judge Dora L. Irizarry in Brooklyn, Andrew Tepfer pleaded guilty to participating in a money laundering conspiracy designed to avoid paying a multi-million dollar court-ordered restitution judgment compensating victims of a securities fraud scheme. When sentenced, Tepfer faces up to 20 years in prison and a fine in an amount to be determined by the court.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the guilty plea.
“With today’s guilty plea, Tepfer has been held responsible for his participation in a money laundering scheme to hide funds derived from a brazen shakedown,” stated United States Attorney Donoghue. “This Office will vigorously prosecute those who flout court orders and exploit victims.” Mr. Donoghue thanked the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation for their assistance with the investigation.
According to court filings, in 2011 and 2012, Tepfer and another individual (“John Doe”) pleaded guilty in federal court in Brooklyn to securities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering. At their sentencing proceedings in 2014, they were ordered to pay approximately $12.7 million in restitution to the victims of the scheme. Thereafter, in February 2017, Tepfer’s co-conspirator Mark Weissman told John Doe that incriminating information about him would be provided to law enforcement unless he paid $6 million to Tepfer. Weissman and his co-conspirators then planned how to have John Doe make the payment in a manner that would prevent it from being seized by law enforcement authorities seeking to enforce the court’s restitution order. In June 2019, Weissman pleaded guilty to conspiring to obstruct an official proceeding and was sentenced in January 2020 to four years’ probation, 300 hours of community service and a $45,000 fine.
At his guilty plea proceeding today, Tepfer admitted that he conspired with others to conduct international financial transactions designed both to funnel funds that he believed were the proceeds of the earlier securities fraud back to himself, and to conceal the source of those funds.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Nathan Reilly is in charge of the prosecution.
The Defendant:
ANDREW TEPFER (also known as "Avi Tepfer")
Age: 56
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-524 (DLI)