Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
5 March 2020
Man Sentenced to Ten Years in Prison for Attempted Sexual Enticement of MinorsRead the Press Release
HONOLULU, Hawaii – Michael David Kirk, 31, a former Navy sailor, was sentenced today in federal court by Chief United States District Judge J. Michael Seabright to 120 months in prison and 15 years of supervised release for attempted sexual enticement of three minor females on a social media application. As part of his sentence, he will also pay a $5,000 special assessment under the Justice for Victims of Trafficking Act of 2015. Kirk will also be required to register as a sex offender. He pled guilty to this crime on November 13, 2019.
U.S. Attorney for the District of Hawaii Kenji M. Price announced that, according to court documents and information presented in court, in March 2019, Kirk corresponded on a social media application with an individual whom he believed was a woman, and arranged a meeting so that he could engage in sexual activity with her three young children, ages 6, 9, and 11 years old. Kirk was later identified and arrested.
The case was investigated by the Federal Bureau of Investigation and Attorney General’s Internet Crimes Against Children Task Force. It was prosecuted by Assistant U.S. Attorney Morgan Early.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and 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.justice.gov/psc.
Man Sentenced to 71 Months for Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – On March 3, 2020, United States District Judge Greg Guidry sentenced WAYNE ELFER, JR., to seventy-one months in the Bureau of Prisons for being a felon in possession of a firearm, in violation of the Federal Gun Control Act, announced U.S. Attorney Peter G. Strasser.
ELFER was charged on May 23, 2019 in a one-count indictment with possessing a Ruger, Model P94, .40 caliber semi-automatic handgun, bearing serial number 341-63469; a Rossi, Model 38 Special, .38 caliber revolver, with an obliterated serial number; and twenty-two .38 Special ammunitions while being a convicted felon. ELFER will serve (71) months in prison to be followed by (3) years of supervised release and a $100.00 special assessment.
This case was brought as part of Project Safe Neighborhoods (PSN), which 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.
U. S. Attorney Peter Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Assistant United States Attorney Melissa Bücher.
Man Indicted for Producing Images of Child Sexual AbuseRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Bluemont man with producing and distributing child pornography.
According to the indictment, Kevin Hewlett, 35, allegedly filmed himself engaging in sex acts with a minor female whom he met when working as a farrier for her horses. Court documents further allege that Hewlett later sent that video to the minor over a social media application.
Hewlett is charged with production of child pornography and distributing or attempting to distribute child pornography. If convicted, he faces a mandatory minimum penalty of 15 years in prison. 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and Michael L. Chapman, Loudoun County Sheriff made the announcement. Assistant U.S. Attorney Nathaniel Smith, III, and Special Assistant U.S. Attorney Gwendelynn Bills are prosecuting the case.
This matter was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is charged with identifying and investigating child predators and those individuals and criminal enterprises engaged in Human Trafficking.
FBI encourages anyone who believes they have any additional information relating to this defendant to contact the FBI at 1-800-CALL-FBI or https://www.fbi.gov/tips.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-64.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Man from India with Student Visa Pleads Guilty to Sexual Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Sachin Aji Bhaskar, 23, of India, pleaded guilty before Senior U.S. District Judge William M. Skretny to sexual enticement of a minor. The charge carries a minimum penalty of 10 years in prison, a maximum penalty of life in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that the defendant communicated by text and email with an 11 year old girl for the purpose of engaging in sexual activity. Through those communications, Bhaskar enticed the victim to engage in sexual activity with him on August 11, 2018.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski.
Sentencing is scheduled for June 17, 2020, at 1:00 p.m. before Judge Skretny.
# # # #
Los Angeles, California Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Edward Shontel Beattie, age 47, of Los Angeles, California, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment alleged that on or about August 5, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Jarrod Leaman represented the United States.
Lodge Pole man sentenced for assaulting girlfriendRead the Press Release
GREAT FALLS—A Lodge Pole man convicted at trial for assaulting his girlfriend on the Fort Belknap Indian Reservation was sentenced today to 21 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
A jury found Jeremy Davis Wing, 40, guilty of domestic abuse by habitual offender.
U.S. District Judge Brian M. Morris presided.
During a trial in November, the prosecution presented evidence that Wing physically assaulted his girlfriend on May 19, 2018 and into the next day. Wing and the victim were living together at the time of the assault. The two were drinking alcohol with another man and woman when the couple argued. Wing became violent with the victim and also told the woman to beat up on the victim. Both Wing and the woman assaulted the victim. At trial, the parties stipulated that Wing had at least two prior separate domestic assault convictions.
Assistant U.S. Attorneys Jared Cobell and Kalah Paisley prosecuted the case, which was investigated by the FBI and Fort Belknap Law Enforcement Services.
XXX
Local Businessman Sentenced to 17 Months for Bribery Scheme Involving Former St. Louis County Executive Steve StengerRead the Press Release
St. Louis, MO –John Rallo, 54, formerly of St. Louis County, was sentenced to 17 months in prison for his involvement in a bribery scheme with Former St. Louis County Executive Steve Stenger. Rallo appeared in federal court this morning before U.S. District Judge E. Richard Webber.
According to court documents, beginning in October 2014 and continuing through December 31, 2018, former St. Louis County Executive Steve Stenger schemed to defraud and deprive the citizens of St. Louis County of their right to his honest and faithful services, and the honest and faithful services of former CEO of the St. Louis Economic Development Partnership, Sheila Sweeney, through a pay to play bribery scheme. The purpose of the scheme was for Stenger to secretly use his official position to enrich himself through soliciting and accepting campaign contributions from businessman John Rallo and other individuals in exchange for favorable official action in the awarding of contracts and grants through St. Louis County and the St. Louis Economic Development Partnership.
Stenger, in exchange for campaign donations and several fundraising events hosted by John Rallo, took official action to insure that Rallo and his company, Cardinal Insurance, obtained insurance contracts through St. Louis County during 2015 and 2016. Further, Stenger took official action to insure that John Rallo and his company, Cardinal Creative Consulting, obtained a sham 2016 consulting contract in the amount of $130,000 through the St. Louis County Port Authority. Additionally, Stenger took official action to insure that John Rallo and his company, Wellston Holdings, LLC, obtained land contracts for two industrial properties in Wellston, Missouri which were held by the Land Clearance for Redevelopment Authority of St. Louis County during 2016 and 2017. Rallo, Stenger, and Sweeney took steps to hide, conceal and cover up the illegal bribery scheme, including making false public statements.
Rallo pled guilty in July 2019 to three counts of Honest Services Mail Fraud/Bribery.
The Federal Bureau of Investigation and the Postal Inspection Service investigated this case with the assistance of the Internal Revenue Service Criminal Investigations. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Lexington Man Sentenced to 68 Months for Trafficking Crack CocaineRead the Press Release
FRANKFORT, Ky. - A Lexington, Kentucky man, Devaun Laquis Robertson, 27, was sentenced in federal court on Wednesday, to 68 months in prison, by U.S. District Judge Greg VanTatenhove, for possession with intent to distribute crack cocaine.
According to his plea agreement, at the time of the offense, Robertson was on probation for Trafficking in a Controlled Substance First Degree. As part of his parole conditions, Robertson was subject to home visits from law enforcement. Robertson admitted that on March 20, 2019, Lexington Police, and officers from the State Probation and Parole, were conducting a home visit and found 39.4 grams of crack cocaine and a digital scale with residue.
Under federal law, Robertson must serve 85 percent of his prison sentence 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; James Robert Brown, Special Agent in Charge for FBI, Louisville Field Division; Commissioner Kathleen Keeney, Kentucky Department of Corrections; and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement.
The investigation was directed by the Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
— END —
Levittown Man Convicted at Trial of Firearm and Narcotics OffensesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Dennis D. Davis, 34, of Levittown, PA was convicted today at trial of one count of possession of a firearm by a convicted felon and one count of possession with intent to distribute a controlled substance. The trial took place before United States District Judge Mitchell S. Goldberg.
Davis was arrested after a dramatic car chase in July 2017. The defendant refused to pull over for Middletown Township Police, and a pursuit ensued. Davis continued to flee at a high speed and caused a crash at a busy intersection near the border of Middletown and Bristol Townships. He pulled his damaged vehicle into a parking lot and fled on foot. As he fled from police officers, Davis discarded a purse containing a firearm, drug paraphernalia, and crack cocaine. Police officers eventually caught Davis and took him into custody. The officers recovered the purse and its contents and also found over $1,000 in cash in the defendant’s car.
The government presented evidence at trial that included the physical evidence recovered at the scene, fingerprints from the gun, civilian eyewitnesses, and several law enforcement witnesses who participated in the chase and the defendant’s arrest.
“Firearms and drugs in the hands of convicted felons like Davis undeniably pose a serious threat to our community” said U.S. Attorney McSwain. “Davis further endangered the community by refusing to comply with officers’ lawful commands and causing an unnecessary high speed chase and subsequent crash. Luckily, no innocent civilians were hurt or killed and Davis has now been held accountable for his criminal conduct. We remain steadfast in our commitment to working with our federal partners to clear the streets of illegal firearms and drugs and to protect the public.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Michael J. Rinaldi and Melanie Babb Wilmoth.
Kirbyville Man Sentenced to 24 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Kirbyville, Missouri, man was sentenced in federal court today for his role in a conspiracy to distribute large quantities of methamphetamine in southwest Missouri.
Brent A. Tribble, 30, was sentenced by U.S. District Judge Roseann Ketchmark to 24 years in federal prison without parole.
On Sept. 16, 2019, Tribble pleaded guilty to participating in a conspiracy to distribute methamphetamine in southwest Missouri and in the Lebanon, Missouri, area from March 1, 2018, to Jan. 22, 2019. According to court documents, Neal A. Norles, 30, of Blue Springs, Missouri, supplied methamphetamine to Stephan D. Samons, 30, of Camdenton, Missouri, who in turn, supplied methamphetamine to both Tribble and April E. Luke, 31, of Springfield, Missouri.
Tribble was a passenger in a vehicle driven by Luke, which was stopped by a Missouri State Highway Patrol trooper on June 24, 2018. The trooper searched the vehicle and found a zippered bag that contained 469.9 grams of 98 percent pure methamphetamine. Inside a black backpack, the trooper found a Taurus 9mm semi-automatic pistol, an SCCY 9mm semi-automatic pistol, a Connecticut Valley Arms .50-caliber black-powder rifle (without a serial number, shortened and converted to use either a .410-gauge shotgun cartridge or a .44-caliber pistol cartridge), ammunition, Tribble’s debit card, and 3.5 grams of methamphetamine. Tribble admitted that the methamphetamine and firearms were his.
During the course of the investigation, troopers seized nearly 2.4 kilograms of methamphetamine from a Dodge Charger in which Norles was a passenger during a traffic stop on Interstate 44 in Newton County, Missouri, on Jan. 22, 2019, while Norles was returning from a trip to Los Angeles, California.
Tribble is the first defendant sentenced in this case. Co-defendants Norles, Samons, and Luke have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Katy, Texas Man Indicted for Trafficking Drugs Through BeaumontRead the Press Release
BEAUMONT, Texas – A 38-year-old Katy, Texas man has been indicted for federal drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Paul Andrew Cabiro was indicted by a federal grand jury on March 4, 2020 and charged with possession with intent to distribute LSD, methamphetamine, cocaine, heroin, and fentanyl and possession of a firearm in furtherance of a drug trafficking offense.
According to the indictment, Feb. 21, 2020, Cabiro was stopped for a traffic violation on Interstate-10in Beaumont. During the stop, a narcotics canine alerted on the vehicle. Inside the vehicle, officers discovered 480 dosage units of LSD, approximately 48.2 grams of methamphetamine., approximately 48 grams of cocaine, approximately 53.2 grams of “China White” heroin, and approximately 68.4 grams of “tar” heroin, two firearms and over $10,000 cash.
If convicted, Cabiro faces up to life in federal prison.
This case is being investigated by the U.S. Drug Enforcement Administration and the Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Christopher T. Rapp.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kalispell woman sentenced for meth dealingRead the Press Release
MISSOULA—A Kalispell woman who admitted bringing methamphetamine from Washington to distribute in Montana was sentenced today to one year and one day in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Carly Deann Halcro, 36, pleaded guilty in November to possession with intent to distribute meth.
U.S. District Judge Donald W. Molloy presided.
In court records filed in the case, the prosecution said law enforcement received information in April 2018 that Halcro was traveling to Washington to get multiple pounds of meth for redistribution. Halcro traveled to Spokane in June 2018. Law enforcement got a search warrant for Halcro’s vehicle, conducted a traffic stop when she returned to Montana and found about one pound of pure meth in the vehicle. One pound of meth is the equivalent of about 3,624 doses.
Halcro admitted in an interview that she had been receiving pound quantities of meth from a source of supply.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Lincoln County Sheriff’s Office.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Justice Department Settles Lawsuit Alleging Disability-Based Discrimination by Developer and Franchisor of 32 Condominium Properties in OhioRead the Press Release
The Justice Department announced today that an Ohio developer and a franchisor of multifamily properties have agreed to settle a federal lawsuit alleging that they violated the Fair Housing Act (FHA) by designing and constructing 32 multifamily properties in Ohio that are inaccessible to persons with disabilities.
“For more than a quarter century, federal law has required multifamily housing complexes to be built with accessible features,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “This lawsuit is part of the Department of Justice’s continuing efforts to ensure that those who actively participate in the development of multifamily housing fulfill their responsibilities to ensure that the properties are accessible for persons with disabilities as required by the Fair Housing Act.”
“The purpose of the Fair Housing Act is to advance equal opportunity in housing and end discrimination,” said U.S. Attorney David DeViller for the Southern District of Ohio. “This office is committed to vigorously enforcing the Act. Developers in the Southern District of Ohio will either live up to their obligations under the law, or we will go to court to require that they do so.”
Today’s settlement, pending court approval, resolves a lawsuit the Department filed in October 2019 in the Southern District of Ohio. It alleges that Ohio developer Epcon Communities, LLP and its related entity, Epcon Communities Franchising, Inc., violated the FHA when they designed and constructed the 32 condominium properties in Ohio with steps and other features that made them inaccessible to persons with disabilities.
This matter originated with a complaint filed with the Department of Housing and Urban Development (HUD) by the Fair Housing Advocates Association, a fair housing organization in Akron, Ohio. HUD then initiated its own complaint and, after completing an investigation, determined that the Defendants had violated the FHA and referred the matter to the Department of Justice.
“When architects and developers fail to design and construct housing consistent with Fair Housing Act requirements, it’s the same as the property having a sign that reads, ‘no wheelchairs allowed,’” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue working with the Justice Department to take appropriate action to ensure that persons with disabilities, some of our most vulnerable citizens, have the type of housing that meets their needs.”
Under the terms of the settlement, Epcon Communities, Inc. and Epcon Communities Franchising, Inc. must pay up to $2,200,000 to correct inaccessible features in the common areas of the properties and within the individual units. The corrections that defendants must make to the common areas include: removing steps; replacing steeply-sloped walkways; adding accessible routes from units to amenities such as the clubhouse and swimming pool; and providing accessible parking. The defendants must also offer to pay current owners to correct certain inaccessible features within condominium units, including those found in bathrooms and kitchens. Additionally, they must establish a $300,000 settlement fund for people who suffered harm due to the lack of accessible features at the 32 Ohio properties, pay a civil penalty of $51,303 to the United States, and ensure that any future housing they design or construct complies with the FHA. Defendants also must pay $40,000 in damages to the Fair Housing Advocates Association, which filed the discrimination complaint with HUD that initiated this case.
Persons who lived at or sought to live at one of the properties listed below who were denied housing or otherwise harmed because the complex was not accessible may be entitled to monetary compensation through today’s settlement. Such persons can contact the Justice Department toll-free at 1-800-896-7743 mailbox #994 or by email at [email protected].
The properties at issue are:
- Cobblestone at the Preserve, New Albany, Ohio
- Courtyards at Seldom Seen, Powell, Ohio
- Fountainview at Parkway, Grove City, Ohio
- Village at North Falls, Delaware, Ohio
- Villas at Canterbury Woods, Westerville, Ohio
- Villas at Glenealy, 6315 Donegan Way, Dublin, Ohio
- Villas at Maple Creek, Westerville, Ohio
- Villas at Woodcutter, Powell, Ohio
- Windsor Bridge at the Preserve, New Albany, Ohio
- Woods at Hayden Run, Hilliard, Ohio
- Woods at Sugar Run, New Albany, Ohio
- Ballymeade Village, Beavercreek, Ohio
- Bridgewater, Mansfield, Ohio
- Fairway Villas at Catawba Island Club, Port Clinton, Ohio
- Fairways at Boulder Creek, Streetsboro, Ohio
- Quarry Lakes at Amherst, Ohio
- Reddington Village, Newark, Ohio
- Sanctuary at Plum Brook, Huron, Ohio
- Springfield Ridge, Poland, Ohio
- Village of Colonial Woods, Mount Vernon, Ohio
- Village at Riverwalk, Lima, Ohio
- Villages of River Oaks, Heath, Ohio
- Villas at Beavercreek, Beavercreek, Ohio
- Villas at Benchrock, Tipp City, Ohio
- Villas at Charleston Lake, Canal Winchester, Ohio
- Villas at Foor Farms, Pataskala, Ohio
- Villas in Hamilton West, Hamilton, Ohio
- Villas at Milnor Crossing, Pickerington, Ohio
- Villas at Park Place, West Chester, Ohio
- Wellington Place, Zanesville, Ohio
- Woodland Run, Columbiana, Ohio
- Woods on Wilkens, Mason, Ohio
The Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 12, 1991, to have basic accessibility features, including accessible routes without steps to all ground-floor units.
More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination may call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp/online-complaint.
Jefferson County Men Indicted for Beaumont CarjackingRead the Press Release
BEAUMONT, Texas – Two Beaumont men have been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Thaddiaus Joseph Thomas, 34, and Tremaurice Arthur Randall, 24, were indicted by a federal grand jury on March 4, 2020 and charged with conspiracy to commit carjacking, carjacking, possession of a firearm during a crime of violence, and possession of a firearm by a prohibited person.
According to the indictment, on Dec. 21, 2019, Thomas and Randall traveled to the Excellent Carwash located at 5010 Haden Road in Beaumont, Texas, wearing masks, where they approached a man who was sitting in the driver’s seat of his 2003 Dodge Ram pickup truck. Thomas pointed a pistol at the man and Randall ordered him to “give it up” before Randall and Thomas then pulled the man out of his truck and threw him on the ground. Thomas then hit the man's head with the pistol and fired one shot toward his feet. Randall and Thomas then entered the pickup truck and drove away.
If convicted, Thomas and Randall each face up to 20 years in federal prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John B. Ross.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Insurance Company Owner Sentenced to Prison for Tax EvasionRead the Press Release
PITTSBURGH, Pa - A resident of Pittsburgh has been sentenced in federal court to two-and-a-half years (30 months) in prison and fined $10,000 on his conviction of tax evasion, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Robert Rionda, Jr., of Pittsburgh, Pennsylvania.
According to information presented to the court, Rionda solely owned and operated Arms Insurance Group, Inc. (Arms Inc.), a subchapter S corporation, from 2002 through May 2014. In October 2011, the Collection Division of the Internal Revenue Service opened a case on Mr. Rionda for unpaid income taxes for the 2009, 2010 and 2011 tax years. In May 2012, after several attempts to receive payments from Mr. Rionda, the IRS levied his personal bank accounts for the unpaid 2009 and 2010 taxes. The defendant responded to the levies by directing the controller/bookkeeper of Arms Inc. to do several things:
• Stop issuing salary checks to Mr. Rionda and his wife;
• Stop using his personal checking accounts altogether; and
• Start paying all of his personal bills from the company's bank accounts rather than from his personal bank accounts (note – some personal bills were being paid out of the company accounts prior to the levies).
Over the next several years, Rionda continued to file apparently accurate corporate returns on behalf of Arms Inc., as well as personal income tax returns, but he only made minimal payments to the IRS for the personal income taxes he owed, and he took the actions described above to evade collection of his taxes.
Rionda sold Arms Inc. to his son over time, starting in May 2014, and he stayed on as a part owner of the son’s new business, Arms Insurance Group, LLC (Arms LLC), through May 20, 2017. After the sale of the business on May 22, 2014, Arms LLC began making payments by check to Rionda that represented monthly payments on a promissory note, rent payments, and owner draw payments to Rionda. From July 25, 2014 to December 28, 2015, Rionda deposited some of these checks to two bank accounts at PNC Bank and an account at Citizens Bank, all of which were maintained in the name of Arms Inc. his old business which was no longer active, rather than depositing them to a personal account in his own name.
Despite receiving very large distributions from Arms Inc. and Arms LLC, Rionda chose not to make substantial payments towards his taxes. Rionda did, however, make payments towards his personal mortgage, a mortgage on a business property, his credit cards, and his utility bills. In addition, Rionda also transferred millions of dollars - at least $2.7 million of his own funds - to an associate, Joseph Duva, as a purported investment.
The parties stipulate that the total criminal tax loss, including assessed interest and penalties, is $1,539,117.00.
Prior to imposing sentence, Judge Bissoon stated that Rionda engaged in "a sophisticated scheme to direct monies elsewhere and evade collection" of his taxes by the IRS.
Assistant United States Attorneys Stephen R. Kaufman and Mary M. Houghton prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service – Criminal Investigation for the investigation leading to the successful prosecution of Rionda.
Indictments Returned in Local Investigations of Crop Insurance FraudRead the Press Release
LEXINGTON, Ky. – In two separate indictments, a former Kentucky-based tobacco warehouse owner and two tobacco producers were indicted Thursday, and charged with engaging in a variety of crop insurance fraud and money laundering schemes.
Roger Wilson, former owner of Clay’s Tobacco Warehouse and Ag Wood, Inc., both in Mt. Sterling, Kentucky, was indicted Thursday with one count of conspiracy to defraud the United States by committing crop insurance fraud and one count of conspiracy to commit money laundering.
As charged in his indictment, Wilson agreed with others to assist numerous producers in the Central Kentucky area to conceal their tobacco production, for the purpose of filing false crop insurance claims. Wilson allegedly assisted farmers in obtaining fake tobacco purchase documentation and fake tobacco grade sheets, which the farmers would use to submit false claims of loss on their tobacco insurance policies. Wilson is also alleged to have assisted these farmers in laundering the proceeds from the crop sales they hid, using the fake documentation he helped to provide.
Separately, John D. and Kevin C. Watkins, farmers in Nicholas County and elsewhere, were charged with one count of conspiracy to defraud the United States by committing crop insurance fraud on their federal tobacco insurance policies, one count of conspiracy to commit mail and wire fraud connected to their claims of loss on their private Crop-Hail tobacco insurance policies, and one count of conspiracy to commit money laundering. John D. Watkins was also charged with four counts of crop insurance fraud, for policies in Crop Years 2011, 2012, 2013, and 2014.
As charged in this indictment, John D. Watkins underreported the amount of tobacco he produced over these four years, when he claimed damage to his tobacco crop in claims of loss on his federal tobacco insurance policies. The indictment further alleges that John. D. and Kevin C. Watkins conspired together to do the same for tobacco insurance policies in Kevin Watkins’s name. The indictment also alleges that John D. and Kevin C. Watkins presented false documentation in support of claims of loss on the private Crop Hail policies in their individual names as well as the policy in their business’s name, High Point Farms. Finally, the indictment charges that John D. and Kevin C. Watkins conspired together to launder the proceeds of their crop insurance scheme, through Clay’s Tobacco Warehouse.
John D. Watkins, and Kevin C. Watkins are set to appear for their initial appearances and arraignments on March 17 at 2 p.m. Wilson's first appearance and arraignment will be on March 17 at 2:30 p.m. All three face up to 5 years imprisonment for each count of conspiracy to defraud and up to 20 years for each count of money laundering conspiracy and wire fraud conspiracy. Additionally, John D. Watkins faces up to 30 years for each count of crop insurance fraud. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Jason M. Williams, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Willie Skeens, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly made the announcement.
The investigations were conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance. The United States is represented by Assistant United States Attorneys Erin Roth and Kathryn Anderson.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
-END-
Houston Man Sentenced in Beaumont Gas Pump Skimming SchemeRead the Press Release
BEAUMONT, Texas –A 36-year-old Houston man has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Carlos Garcia pleaded guilty on July 11, 2019, to conspiracy to commit access device (credit card) fraud and was sentenced to 18 months in federal prison by U.S. District Judge Thad Heartfield on March 5, 2020.
According to information presented in court, on Nov. 10, 2017, law enforcement officers responded to a suspicious activity call at the Gator’s convenience store located at 2890 Dowlen Road in Beaumont, Texas. Upon arrival, the officers located Garcia and Alfredo Angel Almaguer-Almira, along with a red Dodge truck next to a gas pump at the store. The door of the truck was open revealing a credit card skimming device consisting of a computer chip and two connector wires. There was wet caulk around the door frame and on the floorboard of the truck was a caulk gun and a screwdriver. A search of Garcia revealed he had a set of universal gas pump keys in his pocket. Forensic analysis of the skimming device found 258 credit card account numbers had been recorded without authorization, many of the numbers identified as belonging to Beaumont residents and businesses who frequently used the gasoline pumps. Bank records showed that the available credit on the 258 accounts totaled approximately $1.2 million.
Garcia and Almaguer-Almira were indicted by a federal grand jury on Oct. 3, 2019. Almaguer-Almira pleaded guilty and was sentenced to 10 months in federal prison on Jan. 9, 2020.
This case was investigated by the U.S. Secret Service and the Beaumont Police Department and prosecuted by the Assistant U.S. Attorney Robert L. Rawls.
Grand Jury Indicts Kansas Man Who Fled from TroopersRead the Press Release
TOPEKA, KAN. – A federal grand jury indicted an Olathe man Wednesday on charges of drug trafficking, U.S. Attorney Stephen McAllister said.
Dustin Schultz-Bergin, 40, Olathe, Kan., is charged with one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm by a felon.
According to documents filed in federal court, on Jan. 23, 2020, Kansas Highway Patrol troopers attempted to arrest Schultz-Bergin at Matfield Green service area on the Kansas Turnpike. He fled in a Nissan Altima and troopers stopped the car about 10 miles north of the service area. Schultz-Bergin was armed and troopers shot at him after he got out of the car and ran into a field. Troopers stopped him with the help of a police dog.
The Drug Enforcement Administration recovered more than 7 pounds of methamphetamine from the car and a .380-caliber handgun.
If convicted, he could face not less than 10 years in federal prison and a fine up to $10 million on the methamphetamine charge and up to 10 years and a fine up to $250,000 on the firearm charge. The Drug Enforcement Administration and the Kansas Highway Patrol investigated. Special U.S. Assistant U.S. Attorney Michelle McFarlane is prosecuting
OTHER INDICTMENTS
Matthew Joseph Gammill, 41, Lawrence, Kan., is charged with one count of possession of child pornography. The crime is alleged to have occurred Feb. 24, 2020, in Lawrence.
If convicted, he could face up to 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Stephen Hunting is prosecuting.
Carlos Alberto Pesina-Velasquez, who is not a U.S. citizen and who has been living in Greenleaf, Kan., is charged with one count of visa fraud and one count of unlawful possession of a firearm. The crimes are alleged to have occurred Feb. 1, 2020, in Greenleaf.
If convicted, he could face a penalty of up to 10 years and a fine up to $250,000 on each count. The Department of Homeland Security investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Grand Jury Indicts Illegal Alien Felon on Charge of Illegal Re-entryRead the Press Release
SPRINGFIELD, Ill. – The federal grand jury has returned an indictment that charges Javier Alva-Cuella, 37, of Mexico, with illegal re-entry to the United States after prior deportations. As alleged in the indictment, Alva-Cuella was deported following conviction in Muscogee County, Ga., for aggravated assault, home invasion, and possession of a firearm during the commission of a crime.
According to the indictment, Alva-Cuella, aka Javier Cuellar, was previously deported and removed from the U.S. on Sept. 23, 2019, and again on Dec. 30, 2019.
Alva-Cuella was arrested in Morgan County, Ill., on Feb. 10, 2020, and remains in the custody of the U.S. Marshals Service.
If convicted, Alva-Cuella faces a maximum statutory penalty of up to 20 years in prison for illegal re-entry following deportation with a prior qualifying conviction.
Assistant U.S. Attorney Tanner K. Jacobs is representing the government in the prosecution. U.S. Immigration and Customs Enforcement Homeland Security Investigations conducted the investigation.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Grand Jury Charges Decatur Man with Child Sex CrimesRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury has indicted Courtney Williams, 30, of Decatur, Ill., on charges of child sexual exploitation. Specifically, the indictment charges Williams with enticement of a minor, attempted sexual exploitation of children, and sex trafficking of children, specifically a child under the age of 14, to engage in a commercial sex act.
Williams was arrested on Feb. 7, 2020, and charged by criminal complaint. Williams made his initial appearance in federal court in Urbana on Feb. 10, and was ordered detained in the custody of the U.S. Marshals Service.
The indictment alleges that for the time period between Jan. 17 and Jan. 25, 2020, Williams used the internet and a cell phone to entice the minor to engage in sexual activity for which a person can be charged with a criminal offense, aggravated criminal sexual abuse.
According to the affidavit filed in support of the criminal complaint, Williams portrayed himself as a 17-year-old male while communicating online with the minor girl by Snapchat and text, including the TextNow application. During these communications, Williams solicited the girl to send him sexually explicit photos and to meet him to engage in sexual activity.
The affidavit alleges that Williams picked up the minor in his vehicle on the evening of Jan. 24, 2020, and took her to his residence where he gave her drugs which caused her to lose consciousness. While the minor girl was unconscious, Williams sexually assaulted her.
If convicted, for enticement of a minor, the penalty is 10 years to life in prison; for attempted sexual exploitation of a child, the penalty is 15 to 30 years in prison; and, for sex trafficking of children, Williams faces a penalty of 15 years to life in prison.
The government is represented by Assistant U.S. Attorney Elly M. Peirson in the prosecution. The charges are the result of investigation by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Decatur Police Department.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
This case is prosecuted as part of Project Safe Childhood, a nationwide Department of Justice initiative to combat child sexual exploitation and abuse. 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.
Four Indicted for Attempting to Rob Capital One ATMRead the Press Release
NEW ORLEANS, LOUISIANA – THEODORE KEYS, age 40, a resident of New Orleans; TYRIK SCOTT, age 20, a resident of Chalmette; JUSTIN PIERCE, age 22, a resident of Slidell; and BRISHUN GARY, age 18, a resident of New Orleans, were indicted for conspiracy to commit bank larceny, announced U.S. Attorney Peter G. Strasser.
According to the indictment, on or about February 5, 2020, KEYS, SCOTT, PIERCE, and GARY attempted to break into an ATM located in the drive-through of a Capital One Bank using sledgehammers, crowbars, chains, and a truck. If convicted, the defendants face a maximum sentence of 5 years imprisonment, a $250,000 fine, one year of supervised release, and a $100 special assessment.
United States Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor of the General Crimes Unit.
Founder of Russian Bank Charged with Tax FraudRead the Press Release
The founder of a Russian bank was arrested last week in London in connection with an indictment charging him with filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney David L. Anderson for the Northern District of California, and Internal Revenue Service (IRS) Criminal Investigation, Special Agent in Charge Kareem Carter. The Sept. 26, 2019, indictment was unsealed today.
According to the indictment, Oleg Tinkov was the indirect majority shareholder of a branchless online bank that provided its customers with financial and bank services. The indictment alleges as a result of an initial public offering (IPO) on the London Stock Exchange in 2013, Tinkov beneficially owned more than $1 billion worth of the bank’s shares. The indictment further alleges that three days after the IPO, Tinkov renounced his U.S. citizenship – a taxable event requiring Tinkov to report to the IRS the constructive sale of his worldwide assets, report the gain on the constructive sale of those assets to the IRS, and pay tax on such gain to the IRS. Although Tinkov allegedly beneficially owned more than $1 billion of TCS shares at the time of his expatriation through a British Virgin Island structure, the indictment charges that Tinkov filed a false 2013 tax return with the IRS that reported income of less than $206,000, and a false 2013 Initial and Annual Expatriation Statement reporting that his net worth was $300,000.
If convicted, Tinkov faces a maximum sentence of three years in prison on each count. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Trial Attorney Christopher S. Strauss of the Tax Division and Assistant U.S. Attorneys Michelle J. Kane and Katherine Lloyd-Lovett , are prosecuting the case with the assistance of Katie Turner and Rebecca Shelton. The prosecution is the result of an investigation by IRS–Criminal Investigation. The Criminal Division’s Office of International Affairs of the Justice Department is assisting with the extradition.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Founder of Russian Bank Charged with Tax FraudRead the Press Release
OAKLAND – Oleg Tinkov, the founder of a Russian bank, was arrested in London in connection with an indictment charging him with filing false tax returns, announced U.S. Attorney David L. Anderson, Principle Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and Internal Revenue Service (IRS) Criminal Investigation, Special Agent in Charge Kareem Carter. The indictment issued Sept. 26, 2019, by a federal grand jury, was unsealed following yesterday’s arrest.
According to the indictment, Tinkov was the chairman and beneficial majority shareholder of Tinkoff Credit Systems (TCS), a branchless online bank that provided its customers with financial and bank services. On October 25, 2013, TCS held its initial public offering (“IPO”) on the London Stock Exchange. TCS’s per share price opened at $17.50. The indictment states s that of TCS’s IPO, Tinkov owned, through multiple British Virgin Islands entities, more than 92 million TCS shares, making him the beneficial owner of more than $1 billion worth of TCS shares. The indictment alleges that three days later, on October 28, 2013, Tinkov, a Russian national, renounced his U.S. citizenship. Tinkov’s decision to renounce his citizenship was a taxable event requiring him to report to the IRS the constructive sale of his worldwide assets, report the gain on the constructive sale of those assets to the IRS, and pay tax on such gain to the IRS. According to the indictment, despite knowing he beneficially owned more than $1 billion of TCS shares at the time of his expatriation, Tinkov filed a 2013 U.S. Individual Income Tax Return with the IRS that reported total income of less than $206,000. In addition, Tinkov filed a 2013 Initial and Annual Expatriation Statement reporting his net worth was $300,000. The indictment charges Tinkov with two counts of tax fraud, in violation of 26 U.S.C. § 7206(1).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of three years in prison and a fine of $250,000 for each count. He also faces a period of supervised release, restitution, and monetary penalties. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. The United States is seeking Tinkov’s extradition from the United Kingdom.
Assistant U.S. Attorneys Michelle J. Kane and Katherine Lloyd-Lovett and Trial Attorney Christopher Strauss of the U.S. Department of Justice Tax Division are prosecuting the case with the assistance of Katie Turner and Rebecca Shelton. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation. The Criminal Division’s Office of International Affairs of the Justice Department is assisting with the extradition.
Former Woodson Terrace Police Officer Indicted for Causing Bodily Injury to an IndividualRead the Press Release
St. Louis – A federal grand jury returned an indictment today against a Breckenridge Hills Police Officer (formerly of the Woodson Terrace Police Department) for his conduct in connection with the arrest and assault of an individual. Officer David W. Maas, Saint Louis, was charged with one count of Deprivation of Rights Under Color of Law.
According to the indictment, on April 14, 2019, Officer Maas while with the Woodson Terrance Police Department deprived the victim of his right to be free from unreasonable force. In so doing, Maas kicked and struck the victim while he was compliant and not posing a physical threat to anyone. This offense resulted in bodily injury to this individual.
"Law enforcement officers take an oath to serve and protect the public," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "When an officer betrays that oath, and instead uses his or her position to violate a person's constitutional rights, that officer must be held accountable. Our community, and our profession, deserve no less."
The charge Deprivation of Rights Under Color of Law carries a maximum penalty of ten years in prison, a fine of $250,000, or both imprisonment and a fine.
As is always the case, the charge in an indictment is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
The Federal Bureau of Investigation investigated this case.
Former Local Doctor Pleads Guilty to Illegally Prescribing Controlled SubstancesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that James T. Keefe, 39, of Florida, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiring to possess with intent to distribute, and to distribute, oxycodone, hydrocodone, and amphetamine. The charge carries a maximum penalty of 20 years in prison, and a fine of $1,000,000.
Assistant U.S. Attorneys Timothy C. Lynch and Joshua Violanti, who are handling the case, stated that the defendant was a New York State licensed physician who was previously employed as a contracted physician at the Erie County Medical Center (ECMC), Mercy Hospital of Buffalo, and the Monsignor Carr Institute. Between January 1, 2014, and February 23, 2018, Keefe conspired to divert, and diverted, Schedule II and Schedule IV controlled substances by issuing fraudulent prescriptions to his co-workers, friends, and drug-dealing and drug-using associates, including, co-defendants Benjamin Rivera, Laura Ricotta, Takeya Rainey, and Phousavath Luangrath. These prescriptions were issued without a legitimate medical purpose and outside the usual course of professional practice.
The defendant and co-defendant Rivera have been associates for several years. For nearly five years, Rivera sold cocaine to Keefe, who was active user of cocaine, Adderall, and prescription opiates. In January 2014, the defendant began issuing prescriptions in the names of Rivera and nine of Rivera’s relatives and associates to exchange for cocaine and for a share of the prescribed drugs. Neither Rivera nor any of his relatives or associates were patients of Keefe.
In April 2015, the defendant began issuing prescriptions to Rivera’s girlfriend, co-defendant Laura Ricotta. Keefe also used the names and personal information of six relatives and associates of Ricotta to issue fraudulent prescriptions. Neither Ricotta nor any of her relatives or associates were patients of the defendant. Keefe often drove Ricotta to a pharmacy to a pharmacy to fill the prescriptions, which the two then split.
In the summer of 2017, the defendant began issuing prescriptions to co-defendant Takeya Rainey. Rainey also provided the names of her relatives and associates to Keefe, none of whom were his patients. In exchange for the controlled substances, the defendant sometimes gave Rainey gift or Visa cash cards.
Beginning in January of 2017, Keefe and co-defendant Luangrath were involved in an intimate relationship. At some point, the defendant Luangrath agreed to allow the defendant to issue prescriptions in her name.
Between January 1, 2014, and February 23, 2018, the defendant issued 179 fraudulent prescriptions in his own name and the names of others, for Schedule II and Schedule IV controlled substances.
Rivera, Rainey, and Luangrath were previously convicted. Charges remain pending against Ricotta. The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
Sentencing is scheduled for July 31, 2020, before Judge Vilardo.
# # # #
Former International UAW President Charged with Embezzlement, Racketeering, and Tax EvasionRead the Press Release
Gary Jones, the former President of the international United Auto Workers union, was charged today in a Criminal Information with conspiring with other UAW officials to embezzle over $1 million of UAW dues money, to furthering racketeering activity, and to evading taxes announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Gary Jones, 62, of Canton, Michigan, is charged with conspiring to embezzle UAW dues money and conspiring to use a facility of interstate commerce to aid racketeering crimes between 2010 and September 2019. He is also charged with conspiring to defraud the United States by evading the payment of taxes on embezzled funds and causing the UAW to file false tax returns during the same period of time.
Between June 2018 and November 2019, Jones served as the President of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”). The UAW represents over 400,000 active members and over 580,000 retired members in more than 600 local unions across the United States. Prior to serving as UAW President, Jones was the Director of UAW Region 5 and a member of the UAW’s International Executive Board from October 2012 through June 2018. The UAW’s Region 5 is headquartered in Hazelwood, Missouri, and covers the tens of thousands of UAW members in Missouri and the sixteen states to the southwest, including California and Texas.
The Criminal Information charges that Jones conspired with at least six other senior UAW officials in a multiyear conspiracy to embezzle money from the UAW for the personal benefit of Jones and other senior UAW officials. Jones and other UAW officials concealed personal expenditures in the cost of UAW Region 5 conferences held in Palm Springs, California, Coronado, California, and Missouri. Between 2010 and 2018, Jones and other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with Region 5 leadership and training conferences. In truth, however, Jones and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators.
The Information charges that Jones and other senior UAW officials used UAW money to pay for personal expenses, including golf clubs, private villas, cigars, golfing apparel, green fees at golf courses, and high-end liquor and meals costing over $750,000 in UAW funds. For example, in just one of the years of the conspiracy, Jones is charged with ordering over $13,000 in cigars for the use of high-level UAW officials.
Besides using the UAW conferences to conceal the fraudulent use of UAW money for personal expenses, Jones is charged with assisting in a conspiracy to embezzle UAW funds from the UAW’s Midwest CAP. The UAW Midwest CAP is one of the UAW’s many Community Action Programs. Jones is charged with accepting over $60,000 in cash from co-conspirator Edward Robinson who cashed over $500,000 in fraudulent UAW Midwest CAP checks and embezzled money from the UAW Labor Employment Training Corporation.
Besides conspiring with other UAW officials to embezzle UAW funds, Jones is also charged with conspiring with UAW officials to defraud the United States by impeding the Internal Revenue Service in the collection of taxes from Jones and other UAW officials. The conspirators also caused the UAW to file false tax returns with the IRS.
Based on each of the two counts of conspiracy, Jones faces a maximum of five years in prison and a fine of up to $250,000.
A Criminal Information is only a charge and is not evidence of guilt.
Jones is the fourteenth defendant to be charged in connection with the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by FCA executives. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), and former senior UAW official Michael Grimes (28 moths). In addition, the following UAW officials have pleaded guilty and are awaiting sentencing: former UAW Vice President Joseph Ashton, former senior UAW official Jeffrey “Paycheck” Pietrzyk, former UAW Region 5 Director UAW Board member Vance Pearson, and former UAW Midwest CAP President Edward “Nick” Robinson.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“The charges today demonstrate our continuing progress towards restoring honest leadership for the over 400,000 men and women of the UAW,” said United States Attorney Matthew Schneider. “The union’s leaders must be dedicated to serving their members and not serving themselves.”
“An important mission of the Office of Inspector General is to investigate allegations of labor racketeering and corruption within labor unions. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
"While union corruption is not new, each instance slowly undermines the trust members have in their organization. In order for unions to be effective, their members must trust their leadership to do what is best for the entire union and not just for themselves. In this case, that trust has been broken over and over again," said SAC D'Antuono. "While today represents a significant development in this investigation, it does not represent its end. Our work on this case will continue until we are satisfied that everyone who should answer for these crimes is brought to justice."
“Honest and hardworking UAW members are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," Internal Revenue Service – Criminal Investigation Special Agent in Charge Sarah Kull said. "IRS-CI enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others”.
“Today’s information alleges an outrageous abuse of power and misuse of former President Gary Jones’ position of trust to enrich himself and other officers within the UAW at the expense of the UAW’s hardworking members,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “This information leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of union members.”
The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.
Former Biologist Admits to Stealing Hundreds of Thousands of Dollars from San Diego ZooRead the Press Release
Assistant U.S. Attorney Robert S. Huie (619) 546-7053
NEWS RELEASE SUMMARY – March 5, 2020
SAN DIEGO – Matthew John Anderson, a former San Diego Zoo biologist, pleaded guilty in federal court today, admitting he stole hundreds of thousands of dollars from the world-renowned institution.
Anderson worked for the zoo for over 17 years, starting as a research fellow and ultimately serving as the Director of Behavioral Biology for the zoo’s Institute for Conservation Research until the zoo terminated his employment in late 2017.
In his plea agreement, Anderson admitted that over the course of approximately eight years – from December 2008 to October 2016 – he worked to create false invoices in the names of various purported vendors which were presented to the zoo for payment. The zoo paid the invoices, in some cases sending money to accounts controlled by Anderson, and in others sending payments to third parties who kicked back the bulk of the payments to Anderson. Anderson admitted to creating 35 bogus invoices and stealing over $236,000 in total.
U.S. Attorney Robert Brewer praised the work of FBI agents and prosecutor Robert Huie. “We will hold accountable those who seek to steal and defraud, including all those who selfishly steal from our cherished San Diego institutions.”
“When an employee is elevated to a position of leadership, it is a sign of that company’s trust in the integrity and honesty of that person,” said FBI Special Agent in Charge Scott Brunner. “When an employee violates that trust and abuses their position to defraud and steal money for personal benefit, the FBI stands ready to hold them accountable.”
Sentencing is scheduled for June 8, 2020 at 9 a.m. before U.S. District Judge Larry Burns.
DEFENDANT Case No. 20-CR-0812-LAB
Matthew John Anderson Ramona, California Age: 49
SUMMARY OF CHARGES*
Theft or conversion concerning programs receiving federal funds – 18 U.S.C. § 666
Maximum penalty: Ten years in prison and $250,000 fine
AGENCIES
Federal Bureau of Investigation
Federal Jury Convicts Founder and Chairman of a Multinational Investment Company and a Company Consultant of Public Corruption and Bribery ChargesRead the Press Release
A federal jury sitting in Charlotte, North Carolina, has convicted the founder and chairman of a multinational investment company and a company consultant of public corruption and bribery charges, for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions.
Greg E. Lindberg, 49, of Durham, North Carolina, the founder and chairman of Eli Global LLC (Eli Global) and the owner of Global Bankers Insurance Group (GBIG), and Lindberg’s consultant, John D. Gray, 69, of Chapel Hill, North Carolina, were convicted of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds after an approximately three-week trial before U.S. District Judge Max O. Cogburn Jr. A third co-defendant, Eli Global executive John V. Palermo, 64, of Pittsboro, North Carolina, was acquitted by the jury. A fourth co-defendant, Robert Cannon Hayes, 74, of Concord, North Carolina, previously pleaded guilty to making false statements to the FBI.
“Greg Lindberg and John Gray undermined public confidence in our government by promising millions of dollars in campaign contributions in exchange for government decisions to benefit Lindberg’s business interests,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department is grateful for the assistance of the law-abiding public officials who reported the attempted bribes in this case, which allowed us to use all the tools at our disposal to investigate and root out this pernicious and greedy effort to corrupt North Carolina state government.”
“The defendants devised an elaborate plan to make a hefty campaign contribution to an elected official to secure favorable action. This was not a lapse in judgment. It was a deliberate bribery attempt and a clear violation of federal law,” said U.S. Attorney Andrew Murray for the Western District of North Carolina. “Public corruption is a threat to our way of life and if left unchecked it can tear apart the very fabric of our country. My office will continue to diligently ferret out public corruption schemes to protect the public and hold bad actors like these unscrupulous defendants accountable.”
“Greg Lindberg and John Gray plowed across the line from legal political donations to felonious bribery,” said Special Agent in Charge John Strong of the FBI’s Charlotte Field Office. “These men thought they could buy changes to North Carolina Department of Insurance personnel, policies, and procedures to benefit Lindberg's businesses. The FBI will work tirelessly to root out any and all forms of public corruption.”
According to filed court documents, witness testimony and evidence presented at trial, in January 2018, the elected Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) reported concerns to the FBI about political contributions and other requests made by Lindberg and Gray, and agreed to cooperate with the federal investigation that was initiated.
The evidence established that from April 2017 to August 2018, Lindberg, Gray and Hayes engaged in a bribery scheme involving independent expenditure accounts and improper campaign contributions for the purpose of causing the Commissioner to take official action favorable to Lindberg’s company, GBIG. Trial evidence further established that Lindberg and Gray gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value, in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing regulation and the periodic examination of GBIG.
According to trial evidence, Lindberg, Gray and the Commissioner held numerous in-person meetings at different locations, including in Statesville, North Carolina, and had telephonic and other communications with each other, and with Hayes, to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously. In order to conceal the bribery scheme, at the direction of Lindberg, two corporate entities were set-up to form an independent expenditure committee with the purpose of supporting the Commissioner’s re-election campaign, and Lindberg funded the entities with $1.5 million as promised to the Commissioner. In addition, at Lindberg and Gray’s direction, Hayes caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party of which Hayes was chairman, to the Commissioner’s re-election campaign.
According to admissions Hayes made in connection with his guilty plea, on or about Aug. 28, 2018, Hayes falsely stated to FBI agents that he had never spoken with the NCDOI Commissioner about personnel or personnel problems at NCDOI, or about Lindberg or Gray. Hayes further admitted that, at the time he made the materially false statements, Hayes knew that it was unlawful to lie to the FBI, and knew that his statements were false because Hayes had in fact spoken with the NCDOI Commissioner about Lindberg and Gray, and about Lindberg’s request that the Commissioner move certain personnel within NCDOI.
The FBI’s Charlotte field office investigated the case.
Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William Stetzer and Dana Washington of the U.S. Attorney’s Office for the Western District of North Carolina are in charge of the prosecution.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Jury Convicts Founder and Chairman of A Multinational Investment Company and A Company Consultant of Public Corruption and Bribery ChargesRead the Press Release
CHARLOTTE, N.C. – A federal jury sitting in Charlotte, North Carolina, has convicted the founder and chairman of a multinational investment company and a company consultant of public corruption and bribery charges, for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions.
Greg E. Lindberg, 49, of Durham, North Carolina, the founder and chairman of Eli Global LLC (Eli Global) and the owner of Global Bankers Insurance Group (GBIG), and Lindberg’s consultant, John D. Gray, 69, of Chapel Hill, North Carolina, were convicted of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds after an approximately three-week trial before U.S. District Judge Max O. Cogburn Jr. A third co-defendant, Eli Global executive John V. Palermo, 64, of Pittsboro, North Carolina, was acquitted by the jury. A fourth co-defendant, Robert Cannon Hayes, 74, of Concord, North Carolina, previously pleaded guilty to making false statements to the FBI.
“Greg Lindberg and John Gray undermined public confidence in our government by promising millions of dollars in campaign contributions in exchange for government decisions to benefit Lindberg’s business interests,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department is grateful for the assistance of the law-abiding public officials who reported the attempted bribes in this case, which allowed us to use all the tools at our disposal to investigate and root out this pernicious and greedy effort to corrupt North Carolina state government.”
“The defendants devised an elaborate plan to make a hefty campaign contribution to an elected official to secure favorable action. This was not a lapse in judgment. It was a deliberate bribery attempt and a clear violation of federal law,” said U.S. Attorney Andrew Murray for the Western District of North Carolina. “Public corruption is a threat to our way of life and if left unchecked it can tear apart the very fabric of our country. My office will continue to diligently ferret out public corruption schemes to protect the public and hold bad actors like these unscrupulous defendants accountable.”
“Greg Lindberg and John Gray plowed across the line from legal political donations to felonious bribery,” said Special Agent in Charge John Strong of the FBI’s Charlotte Field Office. “These men thought they could buy changes to North Carolina Department of Insurance personnel, policies, and procedures to benefit Lindberg's businesses. The FBI will work tirelessly to root out any and all forms of public corruption.”
According to filed court documents, witness testimony and evidence presented at trial, in January 2018, the elected Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) reported concerns to the FBI about political contributions and other requests made by Lindberg and Gray, and agreed to cooperate with the federal investigation that was initiated.
The evidence established that from April 2017 to August 2018, Lindberg, Gray and Hayes engaged in a bribery scheme involving independent expenditure accounts and improper campaign contributions for the purpose of causing the Commissioner to take official action favorable to Lindberg’s company, GBIG. Trial evidence further established that Lindberg and Gray gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value, in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing regulation and the periodic examination of GBIG.
According to trial evidence, Lindberg, Gray and the Commissioner held numerous in-person meetings at different locations, including in Statesville, North Carolina, and had telephonic and other communications with each other, and with Hayes, to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously. In order to conceal the bribery scheme, at the direction of Lindberg, two corporate entities were set-up to form an independent expenditure committee with the purpose of supporting the Commissioner’s re-election campaign, and Lindberg funded the entities with $1.5 million as promised to the Commissioner. In addition, at Lindberg and Gray’s direction, Hayes caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party of which Hayes was chairman, to the Commissioner’s re-election campaign.
According to admissions Hayes made in connection with his guilty plea, on or about Aug. 28, 2018, Hayes falsely stated to FBI agents that he had never spoken with the NCDOI Commissioner about personnel or personnel problems at NCDOI, or about Lindberg or Gray. Hayes further admitted that, at the time he made the materially false statements, Hayes knew that it was unlawful to lie to the FBI, and knew that his statements were false because Hayes had in fact spoken with the NCDOI Commissioner about Lindberg and Gray, and about Lindberg’s request that the Commissioner move certain personnel within NCDOI.
The FBI’s Charlotte field office investigated the case.
Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William Stetzer and Dana Washington of the U.S. Attorney’s Office for the Western District of North Carolina are in charge of the prosecution.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Inmate Sentenced to 21 More Months in Prison for Conspiring to Distribute Synthetic CannabinoidsRead the Press Release
PITTSBURGH – Nicholas Giammichele pleaded guilty and was sentenced to 21 months in prison for conspiring to distribute Schedule I synthetic cannabinoid controlled substances between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Giammichele, 35, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan also ordered Giammichele to serve six years of supervised release following his prison term. Giammichele was serving a prior federal prison sentence in Otisville, NY. when he committed the crime to which he pled guilty and for which he was sentenced. His 21-month prison sentence in this case was ordered to run consecutively to his prior prison sentence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Everett, Pa. Man Pleads to Multiple Counts Relating to Firearms Stolen from Federal FacilityRead the Press Release
JOHNSTOWN, Pa. – A resident of Everett, Pa., has pleaded guilty in federal court to various counts related to firearms stolen from the National Firearms and Ammunition Destruction Branch (NFAD), United States Attorney Scott W. Brady announced today.
Richard Adam Schreiber, 38, of Everett, Pa., pleaded guilty to five counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that between August 30, 2016 and March 4, 2019, Schreiber purchased multiple stolen firearms, firearm components and ammunition from Christopher Lee Yates. Yates was an employee of Allied Security and worked at NFAD, which was a facility used by ATF and other law enforcement agencies to have firearms and ammunition destroyed. The firearms at NFAD had been seized during criminal investigations or were retired by the agencies. The investigation by ATF began in February of 2019 when a firearm was seized in Philadelphia with different serial numbers, one of which was for a "slide" or firearm component that had purportedly been destroyed at NFAD. ATF learned that Yates stole in excess of 5 machineguns, 115 pistols and/or revolvers, 3,000 slides and ammunition. The Indictment further alleged that Schreiber then sold the firearms and components over the internet from his residence in Everett, Pa. During the investigation, ATF Agents seized 9 firearms from Yates, including a machinegun stolen from NFAD and an additional 11 firearms and rifles from individuals to whom Yates had sold the stolen weapons. ATF Agents also seized 101 firearms, 1,352 slides and 123,229 rounds of ammunition from Schreiber and an additional 28 firearms, including 3 machineguns, from individuals to whom Schreiber had sold the stolen weapons. Yates was charged with similar offenses in the Northern District of West Virginia, and was sentenced to 168 months in jail.
Judge Gibson scheduled sentencing for August 13, 2020 at 10:00 a.m. The law provides for a maximum total sentence of not more than 40 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Schreiber.
Essex County Father and Son Sentenced to Prison for Roles in $3.49 Million Food Stamps SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, father and son have been sentenced to prison for their roles in exchanging $3.49 million in Supplemental Nutrition Assistance Program (SNAP) benefits for cash, U.S. Attorney Craig Carpenito announced today.
Jose Perdomo, 35, of Newark, was sentenced today to 15 months of home detention and five years of probation. He previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of SNAP fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity.
His father, Juan Perdomo, 60, of Newark, was sentenced March 3, 2020, to 38 months in prison. He previously pleaded guilty to an information charging him with one count of SNAP fraud, one count of engaging in monetary transactions in property derived from SNAP fraud, and one count of aiding in the preparation of a materially false tax return. Judge Salas imposed the sentences in Newark federal court.
According to documents filed in this case and statements made in court:
From October 2015 to September 2018, Juan Perdomo ran M&R Supermarket, a business that was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp program. SNAP is administered by the U.S. Department of Agriculture. Retail food stores approved for participation may sell food in exchange for SNAP benefits, but may not exchange SNAP benefits for cash.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, to use to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in 11 “purchases” at M&R Supermarket, where Juan and Jose Perdomo exchanged money for SNAP benefits.
The bank account of M&R Supermarket showed numerous cash withdrawals in excess of $10,000 by Juan Perdomo as well as several cashed checks in excess of $10,000 by Jose Perdomo.
Jose and Juan Perdomo were each ordered to pay $4.8 million in restitution to the U.S. Department of Agriculture; Juan Perdomo was ordered to pay $400,099 in restitution to the IRS and was also sentenced to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael, and IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the sentencings.The government is represented by Assistant U.S. Attorney Samantha Fasanello of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Juan Perdomo: Brooke Barnett Esq., Newark
Jose Perdomo: John P. McGovern Esq., NewarkElizabeth City Felon Found with Handgun After Roadside Domestic Dispute SentencedRead the Press Release
RALEIGH — United States Attorney Robert J. Higdon, Jr., announced that today in federal court, United States District Judge James C. Dever, III, sentenced LEMEYON WALKER, 30, of Elizabeth City to 41 months’ imprisonment, followed by 3 years of supervised release. WALKER was named in a single-count Indictment on October 10, 2019, charging him with being a felon in possession of a firearm and ammunition. On November 15, 2019, he pled guilty to a Criminal Information that alleged the same charge.
According to the investigation, at around 2:30 a.m. on December 3, 2017, a Perquimans County Sheriff’s Office Deputy spotted a black Dodge Journey parked on the side of the highway. The car appeared to have been disabled, so the deputy stopped to conduct a welfare check.
He identified WALKER as the driver and a female passenger. WALKER stated that they had run out of gas and he was working on contacting someone to bring some more. WALKER’s hands were trembling and the deputy could smell burnt marijuana.
After a second deputy arrived, officers deployed a K-9, which alerted for the presence of drugs in the car. Deputies then conducted a search, finding a small built-in compartment on the rear passenger side floor. Inside, they found 51 rounds of Winchester .40 caliber ammunition. Elsewhere in the car, they found drug paraphernalia and a folded dollar bill that contained suspected cocaine.
When deputies asked WALKER and the passenger about who was responsible for the cocaine, WALKER stared at his passenger, seeming to suggest that she should accept responsibility. She responded angrily, yelling at him that he knew the drugs were not hers. She then blurted out, “that’s okay, he has a gun.” She told deputies the gun was either on his person or was placed under the hood when they broke down.
Within the engine bay of the car, deputies found a silver and black KAHR Firearms CW40 .40 caliber pistol, wrapped in a rag. WALKER and the passenger were arrested and transported to the station. While being processed, the passenger explained that she and WALKER had been fighting before the deputy had arrived. WALKER had struck her in the face, causing an abrasion on her left upper lip. He had then pulled out the handgun and fired a round outside the window to scare her.
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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Perquimans County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant United States Attorney Jake D. Pugh represented the government.
***
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice, Homeland Security and International Partners Announce Launch of Voluntary Principles to Counter Online Child Sexual Exploitation and AbuseRead the Press Release
The Justice Department and Homeland Security, along with government counterparts from Australia, Canada, New Zealand, and the United Kingdom, announced today the publication of Voluntary Principles to Counter Online Child Sexual Exploitation and Abuse. Developed in consultation with several leading technology companies, the 11 voluntary principles outline measures that companies in the technology industry can choose to implement to protect the children who use their platforms from sexual abuse online and to make their platforms more difficult for child sex offenders to exploit.
“Today marks a historic event,” said U.S. Attorney General William P. Barr. “For the first time, the Five Countries are collaborating with tech companies to protect children against online sexual exploitation. We hope the Voluntary Principles will spur collective action on the part of industry to stop one of the most horrendous crimes impacting some of the most vulnerable members of society.”
Online child sexual exploitation and abuse is a global crime that demands a global response. In an increasingly digital and borderless world, this crime has become easier to commit. Rapidly evolving technology and anonymizing tools allow offenders to continuously adapt and diversify their methods to conceal their activities from law enforcement. Not surprisingly, as a consequence, offenses are growing in scale and are becoming more extreme. These crimes have a devastating and lasting impact on victims and survivors.
“Nothing is of greater importance to the Trump Administration than ensuring the safety and security of Americans, especially the most vulnerable among us — our children,” said Acting Secretary for the U.S. Department of Homeland Security (DHS) Chad Wolf. “Combating online child sexual exploitation is a top priority for the department. ICE Homeland Security Investigations has one in 10 agents investigating child sexual exploitation at any given time and that is why DHS released its first Strategy to Combat Human Trafficking, the Importation of Goods Produced with Forced Labor, and Child Sexual Exploitation. I am confident the Voluntary Principles will help us move forward our goal of creating a world where children can grow up free from sexual exploitation. The Voluntary Principles set new norms across the private sector, incorporating child safety throughout a company’s operations and properly considering the needs of victim-survivors.”
“We cannot allow children to fall victim to predators who lurk in the shadows of the web,” said UK Security Minister James Brokenshire. “Through global collaboration and with enhanced action from the Five Countries, law enforcement agencies and tech companies, we will ensure that children are protected online.”
“It is imperative that we keep children safe from online sexual exploitation and abuse, and we can only accomplish that if we work together with other countries and across sectors,” said Canada’s Minister of Public Safety and Emergency Preparedness Bill Blair. “Today’s release of the Voluntary Principles represents a huge step forward and is the result of innovative cooperation between Five Eyes partners and industry stakeholders. For Canada, the principles directly align with our efforts guided by our National Strategy and continues to fulfill our commitment of protecting children from sexual exploitation of any kind.”
“When it comes to tackling child abuse committed on online platforms and services, the digital industry has a vital role to play,” said Australian Minister for Home Affairs Peter Dutton. “The Voluntary Principles will help industry optimize these efforts; they reflect Governments’ expectations of digital industry, and are scalable and practical to implement across various platforms — from search engines to gaming services to social media networking sites.”
“Those who engage in online child sexual exploitation work to get around current barriers and regulations, despite the best efforts and hard work of the digital industry,” said New Zealand Minister of Internal Affairs and Minister for Children Tracey Martin. “This is a global crime that demands a global response. Working with my colleagues from the Five Countries and the digital industry has ensured we have a set of principles that are robust, flexible, and most importantly, will create effective responses.”
At the Five Country Ministerial Digital Industry Roundtable on July 30, 2019 in London, the Five Country Ministers and senior representatives from Facebook, Google, Microsoft, Roblox, Snap and Twitter agreed “tackling [the online child sexual abuse] epidemic requires an immediate upscaling of the global response to ensure that all children across the globe are protected…and that there is no safe space online for offenders to operate.” As a result, the Five Countries developed the Voluntary Principles to Counter Online Child Sexual Exploitation and Abuse in consultation with the six companies and a broad range of experts from industry, civil society and academia.
The voluntary principles provide a common and consistent framework to guide the digital industry in its efforts to combat the proliferation of online child exploitation. The voluntary principles cover the following themes:
- Prevent child sexual abuse material;
- Target online grooming and preparatory behavior;
- Target livestreaming;
- Prevent searches of child sexual abuse material from surfacing;
- Adopt a specialized approach for children;
- Consider victim/survivor-led mechanisms; and
- Collaborate and respond to evolving threats.
These voluntary principles are built on existing industry efforts to combat these crimes. Some leading companies have dedicated significant resources to develop and deploy tools in the fight to protect children online and to detect, disrupt and identify offenders. Although significant progress has been made, there is much more to be done to strengthen existing efforts and enhance collective action.
These principles are intended to have sufficient flexibility to ensure effective implementation by industry actors. Some companies have already implemented measures similar to those outlined in these principles. Regardless of whether or not a company chooses to adopt these principles, existing laws and regulations in relevant jurisdictions continue to apply to all companies. Nothing in these principles overrides or is contrary to the need for companies to comply with the law.
The Five Country governments have partnered with the WePROTECT Global Alliance — an international body comprising government, industry and civil society members — to promote the Principles globally and drive collective industry action. The WePROTECT Global Alliance will also collate information about industry’s uptake of the Principles, connect subject matter experts to share best practices for implementation, and analyze the evolving threat environment to identify gaps in the global response. Five Country Governments will work closely with the WePROTECT Global Alliance to ensure the Principles remain fit-for-purpose for emerging trends and threats.
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
NEW ORLEANS – U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale on March 3, 2020 to announce 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.
In the Eastern District of Louisiana, six Mexican nationals were indicted on October 3, 2019 by a federal grand jury for one count of conspiracy to commit wire fraud. The indictment alleged that from at least January 1, 2016, to the present, the above defendants conspired together and with others to commit wire fraud in connection with a telemarketing scheme that targeted and victimized persons in the United States, Canada and South America. Of the U.S. victims, 40 out of 55 victims were 60 and older and the total estimated loss was at least $10,000,000.
“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.”
“With the unwavering cooperation of our investigative partners, protecting older Americans from fraud and educating them and their caregivers about fraud prevention is a priority for our department,” said U.S. Attorney Strasser. “Elder fraud schemes target elderly, disabled and other vulnerable consumers, luring them into fraudulent ventures that affected victims nationwide and generate excessive losses which have a profound effect on our nation. We will hold perpetrators of elder fraud schemes accountable wherever they are. Our office reminds seniors and their caregivers to be vigilant for fraudulent schemes and if you are aware of or believe you are the victim of a health care fraud scheme, please contact law enforcement.”
“Through elaborate schemes and the promise to help better their lives, millions of dollars are defrauded from American citizens, in particular, the elderly community,” said Bryan A. Vorndran, FBI New Orleans Special Agent in Charge. “Just like the six defendants in this case, corrupt individuals continue to take advantage of vulnerable people and steal their life savings. Well, the money trail has ended for these defendants and it has led to their indictments. The FBI New Orleans Field Office, along with the U.S. Attorney’s Office – Eastern District of Louisiana remains committed to holding those accountable who attempt to swindle money from Americans.”
“The U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud schemes for many years,” said Inspector in Charge Adrian Gonzalez. “The number and variety of schemes that target our most vulnerable populations, including the elderly and disabled, are numerous…and the effects of those schemes are devastating to the victim and their families. The Inspection Service is committed to pursuing those who utilize the U.S. Mail to perpetrate these financial fraud schemes and bring them to justice.”
This https://www.justice.gov/civil/elder-fraud-sweeps-2020 interactive map provides information on the elder fraud cases highlighted by today’s sweep announcement.
Elder Fraud Hotline
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).
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
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.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Launches a National Nursing Home InitiativeRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana joined Attorney General William P. Barr on March 3, 2020 to announce the Department of Justice’s National Nursing Home Initiative, which will coordinate and enhance civil and criminal efforts to pursue nursing homes that provide grossly substandard care to their residents.
This initiative is focusing on some of the worst nursing homes around the country and the Department has already initiated investigations into approximately thirty individual nursing facilities in nine states as part of this effort.
“Millions of seniors count on nursing homes to provide them with quality care, and to treat them with dignity and respect when they are most vulnerable,” said Attorney General William P. Barr. “Yet, all too often, we have found nursing home owners or operators who put profits over patients, leading to instances of gross abuse and neglect. This national initiative will bring to justice those owners and operators who have profited at the expense of their residents, and help to ensure residents receive the care to which they are entitled.”
“As the population of our nation ages, more and more American families rely on nursing homes to provide quality care to their loved ones,” said U.S. Attorney Peter G. Strasser. “Sadly, however, the instances of physical, psychological, or financial neglect have become more common. The implementation of The National Nursing Home Initiative provides another tool to ensure the welfare of our elderly family members that we have entrusted to the care of nursing homes. The ultimate goal of this worthy initiative is to root out those nursing homes that prey on both their elderly residents as well as the family of those residents.”
“The mission of the FBI is to protect the rights of all Americans, especially those who cannot protect themselves,” said Bryan A. Vorndran, FBI New Orleans Special Agent in Charge. “People housed in nursing homes rely on the support, attention, and care of the nursing home staff to fulfill their basic needs. Too often, we hear of situations of abuse by nursing home personnel to a family member or friend residing in an assisted living facility. We urge Americans to report this abuse and mistreatment, so we can bring justice to those who seek to defraud or abuse the most vulnerable members of our community.”
The department considers a number of factors in identifying the most problematic nursing homes. For example, the department looks for nursing homes that consistently fail to provide adequate nursing staff to care for their residents, fail to adhere to basic protocols of hygiene and infection control, fail to provide their residents with enough food to eat so that they become emaciated and weak, withhold pain medication, or use physical or chemical restraints to restrain or otherwise sedate their residents. These care failures cause residents to suffer in pain and to be exposed to the great indignities. Care failures cause residents to develop pressure sores down to the bone, to lie in their own waste for hours, to starve because they cannot reach the food on their trays and to remain unwashed for weeks at a time. Nursing homes that provide grossly substandard care also force vulnerable elderly residents who cannot leave the facilities to live in filthy and dangerous conditions where there are leaks in the roofs, mold is found growing and rodents found living in residents’ rooms. These are some of the actions and the inactions that the department intends to pursue.
The National Nursing Home Initiative reflects the department’s larger strategy and commitment to protecting our nation’s seniors, coordinated by the department’s Elder Justice Initiative in conjunction with the U.S. Attorneys’ Offices. The Elder Justice Initiative and the U.S. Attorneys’ Offices are essential to the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Initiative and the U.S. Attorneys’ Offices also support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources, and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
Dallas Stripper and White Supremacist Gang Member Convicted of Obstruction of JusticeRead the Press Release
TEXARKANA, Texas – A 28-year-old Dallas, Texas, man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Collin Garrett Hayden was found guilty by a jury of obstruction of justice on March 6, 2020 following a five-day trial before U.S. District Judge Robert W. Schroeder, III. Hayden pleaded guilty to possessing a weapon in jail before the trial began.
According to information presented in court, in 2016, law enforcement began working a drug trafficking investigation into methamphetamine trafficking from Dallas into East Texas. During the investigation, Hayden and his roommate were heard on an undercover recording offering to sell drugs to another individual. Further investigation revealed Hayden had been personally selling cocaine in the Dallas strip clubs in which he performed and had been supplying methamphetamine to a Shreveport, Louisiana, buyer who was traveling through East Texas to purchase from Hayden. When Hayden became aware of his pending federal charges, he turned on his roommate and threatened to use his association with a white supremacist group to have the roommate killed. While in custody at the Titus County jail, Hayden obtained a shank-type weapon and threatened to kill any guards who entered his cell in retaliation for a guard reporting Hayden had attempted to obtain a cell phone by bribe. Hayden was indicted by a federal grand jury on April 19, 2017, and charged with federal violations.
Under federal statutes, Hayden faces up to life 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
The case was investigated by the Mount Pleasant office of the Texas Department of Public Safety, Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok and Donald Carter.
DOJ Files Suit against Spine Device Manufacturer and Executives Alleging Kickbacks to Surgeons through Sham Consulting PaymentsRead the Press Release
The Justice Department announced today that the United States intervened and filed a complaint in two whistleblower cases filed under the False Claims Act against SpineFrontier, Inc. (SpineFrontier) and related entities and executives, alleging that the defendants paid kickbacks to spine surgeons to induce use of SpineFrontier surgical devices, in violation of the Anti-Kickback Statute (AKS). According to the United States’ complaint, the defendants paid spine surgeons over $8 million in sham “consulting” payments ostensibly for product evaluations, when in fact the payments were for use of SpineFrontier devices.
“Kickbacks undermine the integrity of federal health care programs and can result in unnecessary or harmful medical care,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will pursue unlawful kickback arrangements in whatever form they occur to ensure the integrity of the medical care received by federal program beneficiaries.”
According to the United States’ complaint, Dr. Kingsley Chin is the founder and Chief Executive Officer of SpineFrontier, a spine device manufacturer headquartered in Malden, Massachusetts, which sells spinal implant devices across the United States. Dr. Chin is also the founder and principal owner of KIC Management Group Inc. and KICVentures LLC, which own and operate SpineFrontier and Impartial Medical Experts LLC (IME), a purported consulting company. Vanessa Dudley, Dr. Chin’s wife, was IME’s sole employee. Adiya Humad is the Chief Financial Officer for KICVentures and SpineFrontier, and president of SpineFrontier.
The United States’ complaint alleges that from October 2013 through December 2018, the defendants used IME as an intermediary to funnel kickbacks to spine surgeons. Defendants allegedly created IME to shield themselves and spine surgeons from government scrutiny by creating a false impression that surgeons were consulting through an independent third-party entity. The United States contends that IME in reality has served only one client — SpineFrontier — and its sole purpose was to pay spine surgeons to use SpineFrontier’s medical devices. The Defendants generally paid “consulting” spine surgeons $500 for a cervical procedure, and $1,000 for a lumbar procedure — but only if the surgeon used SpineFrontier devices. The United States alleges that consulting spine surgeons often performed little or no work beyond implanting the devices—for which they were separately paid by insurers — and that the Defendants did not systematically collect or use feedback from consultants and paid them even when they had provided no feedback at all. Surgeons allegedly could “consult” on SpineFrontier devices in this manner an unlimited number of times so long as they continued using the SpineFrontier product in surgery.
The AKS prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, TRICARE, and other federally funded programs. The AKS is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives.
“Medical device companies that pay surgeons kickbacks, directly or indirectly, corrupt the market, damage the health care system, and jeopardize patient health and safety,” said U.S. Attorney Andrew E. Lelling of the District of Massachusetts. “We will pursue aggressively any organization or individual who fails to play by the rules.”
“Bribes paid to surgeons as sham medical consultants, as alleged in this case, cheat patients and taxpayers alike,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our law enforcement partners, we will continue to investigate kickback schemes that threaten the integrity of our federal health care system, no matter how those schemes are disguised.”
The lawsuits were originally filed under the qui tam or whistleblower provisions of the False Claims Act by Charles Birchall, Jr., a former employee of a KICVentures subsidiary; John Miller, a former sales manager at SpineFrontier; and Walter Bennett, a former sales representative at SpineFrontier. Under the Act, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. The Act permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the Act, the United States may recover three times the amount of its losses plus applicable penalties.
The lawsuits are being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts. Investigative support is being provided by the Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation.
The cases are captioned United States ex rel. Birchall, Jr. v. SpineFrontier, Inc. et al., No. 15cv12877 (D. Mass.) and United States ex rel. Doe v. SpineFrontier, Inc. et al., No. 15cv12908 (D. Mass.). The claims asserted in the government’s complaint are allegations only.
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.
Court Sentences Two Drug Smugglers Caught by the United States Coast Guard in International Waters with 800 Kilograms of CocaineRead the Press Release
On March 3, 2020 United States District Court Judge William H. Steele sentenced two drug smugglers, Jeison Cambindo-Barahona and Marino Caido-Cardenas, both Columbian nationals, to one hundred and thirty five months confinement for being caught smuggling 800 kilograms of cocaine in international waters off the coast of Panama. The two men previously plead guilty to the charge in November 2019.
According to documents filed in connection with their guilty pleas, the case arose when on July 18, 2019, while on routine patrol in the Eastern Pacific Ocean, the United States Coast Guard (USCG) Cutter Seneca deployed a helicopter which visually detected a target of interest go-fast vessel approximately 50 nautical miles south of the Azuero Peninsula in Panama. Subsequently, the Seneca launched a Zodiac style “Over the Horizon” vessel to assist in intercepting the go-fast vessel. Ultimately, the helicopter and the Over the Horizon vessel arrived on scene with the suspect go-fast vessel.
As the crew aboard the go-fast vessel observed law enforcement closing in on them, they attempted to outrun the USCG. USCG personnel observed the crewmembers aboard the go-fast vessel throwing bales of suspected contraband out of their boat into the water. Ultimately, the USCG used disabling fire on the vessel which caused the go-fast vessel to become dead in the water. This allowed the USCG boarding team on the Over the Horizon to gain positive control of the targeted go-fast vessel.
USCG Cutter Seneca recovered a total of 39 bales of contraband from the water and inside the vessel with an approximate weight of 800 kilograms. The cocaine had a wholesale value of nearly $32 million in the United States.
The suspect vessel yielded no flag flown, no vessel registration documents and no other indicia of nationality. Upon boarding the vessel the smugglers were identified as the defendants, Edward John Valencia-Riascos, Marino Caido-Cardenas, and Jeison Cambindo-Barahona. Valencia-Riascos is scheduled to be sentenced on March 25, 2020.
The case was prosecuted by Assistant United States Attorney George F. May. The case was investigated by the United States Coast Guard and the Department of Homeland Security, Homeland Security Investigations.
Council Bluffs Man Sentenced to over 10 Years in Prison for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on March 4, 2020, Ellis Dale Robinson, age 34, of Council Bluffs, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Possession of Child Pornography. Robinson was sentenced to 121 months in prison to be followed by a term of supervised release of seven years.
In September 2017, a Douglas County (Nebraska) Sheriff’s Deputy was working undercover with the Internet Crimes Against Children Task Force investigating users sharing child pornography on a peer-to-peer file sharing network. Based on information derived from the investigation, a search warrant was executed on Robinson’s residence and a laptop computer was seized. The forensic exam produced numerous links to the peer-to-peer file sharing networks, videos and photos of child erotica, and child pornography.
This case was investigated by the Douglas County Sheriff’s Department, Omaha FBI Child Exploitation Task Force, and the Iowa Division of Criminal Investigation - Internet Crimes Against Children Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Council Bluffs Man Sentenced to Prison for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on March 4, 2020, Shawn Morgal, age 55, of Council Bluffs, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Prohibited Person in Possession of a Firearm. Morgal was sentenced to 27 months in prison to be followed by a term of supervised release of three years.
On May 21, 2018, the Council Bluffs Police Department received a report of a theft from a local gun store. Morgal admitted to stealing a pistol from the gun store and later trading it in exchange for controlled substances.
This case was investigated by the Council Bluffs Police Department and the Bureau of Alcohol Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Council Bluffs Man Sentenced for Distributing MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on March 4, 2020, Dalton Lee Dukes, age 30, of Council Bluffs, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Conspiracy to Distribute Methamphetamine and Carrying a Firearm in Relation to a Drug Trafficking Crime. Duke was sentenced to 151 months in prison for distribution of methamphetamine, to be followed by an additional 60 months for carrying a firearm in relation to drug trafficking. Dukes will serve five years of supervised release after his prison term.
The sentencing was the result of an investigation originating in Cass County regarding the distribution of methamphetamine delivered from Omaha, Nebraska. The investigation revealed that Dukes was distributing methamphetamine in numerous locations throughout Southwest Iowa. After a confidential informant purchased methamphetamine from Dukes, he was arrested on February 15, 2019. At the time of his arrest, Dukes was found with money from drug sales and a loaded 9mm Taurus handgun.
Prior to being sentenced in this case, Dukes was charged with First Degree Murder in Douglas County, Nebraska and he is awaiting transfer to answer those charges.
This matter was investigated by the Cass County Sheriff’s Office, Southwest Iowa Narcotics Task Force, Omaha Police Department, and Iowa Division of Narcotics Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Circle K Agrees to Pay $248,000 to Resolve Alleged Violations of the Controlled Substances ActRead the Press Release
LEXINGTON, Ky. – Circle K, a Texas corporation that operates convenience stores nationwide, has agreed to resolve civil allegations that it violated the Controlled Substances Act (CSA), a federal law that requires retailers of pseudoephedrine to place the product so that customers do not have direct access to it and to keep a logbook of sales, agreeing to pay $248,000.
According to the CSA, retailers are required to place pseudoephedrine in places where the customer does not have direct access before the sale is made and to deliver the product directly into the custody of the purchaser. The CSA further requires Circle K to maintain a logbook of sales, including for each transaction: the name of the product, the quantity sold, the name and address of the purchaser, and the date and time of the transaction. The prospective purchaser must also present identification and sign the logbook to lawfully complete the transaction. Each logbook entry must be accessible and maintained for at least two years following the sale.
The United States alleged that, on November 1, 2018, Circle K Store #3253, located in London, Kentucky, knowingly or recklessly maintained “Pseudo Ephed Plus” in front of the retail sales counter; failed to deliver the product directly into the custody of a customer; failed to require a customer to present identification; and failed to require a customer to sign the logbook.
The United States further alleged that 48 Circle K stores negligently failed to maintain a logbook of “Pseudo Ephed Plus.”
The case was investigated by the Drug Enforcement Administration. Assistant United States Attorneys Mary Melton and Christine Corndorf represented the United States. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
– END –
Chinese National Residing in Fresno Charged in Illegal Marijuana Grow OperationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Yunquan Jiang, 48, a Chinese national residing in Fresno, charging him with cultivating and possessing with intent to distribute over 1,000 marijuana plants inside his residence, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Feb. 7, narcotics detectives served a search warrant at a house on East White Avenue in Fresno. The living room, kitchen, bedrooms, and garage had been retrofitted with fluorescent grow lights suspended from the ceiling, charcoal air-filtration systems, ballasts, and numerous fans. Authorities discovered a total of 1,263 marijuana plants inside the home. Jiang, the sole occupant, was arrested for cultivation of marijuana and possession of marijuana for sale.
This case is the product of an investigation by the Drug Enforcement Administration and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Jiang faces a mandatory minimum prison sentence of 10 years in prison and up to life in prison and a fine of up to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Charleston Felon Sentenced to 60 Months Imprisonment for Possessing a Firearm in Furtherance of Cocaine and Crack Cocaine TraffickingRead the Press Release
Charleston, South Carolina --- Acting United States Attorney A. Lance Crick announced today that Ramone Baldwin, 25, of Charleston, was sentenced to five years in federal prison after pleading guilty to possession of a firearm in furtherance of a drug trafficking crime.
Evidence presented at the change of plea and sentencing hearings established that on November 13, 2018, Charleston Police Department officers attempted to stop a car driven by Baldwin for traffic violations. The car fled, and the driver threw a bag out of the window. The officers retrieved the bag, which contained cocaine, crack cocaine, pills, and a loaded Springfield XD40 pistol. Other officers located the car and Baldwin. Further investigation located pictures of Baldwin with guns and showed the methods Baldwin used to advertise the sale of his drugs. Baldwin, who has been in custody since his arrest, was prohibited from possessing a firearm due to his felony record.
United States District Judge Richard M. Gergel sentenced Baldwin to 60 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Charleston Police Department and the Drug Enforcement Administration. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorney Jamie Lea Schoen of the Charleston office prosecuted this case.
#####
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Chappaqua Businessman Pleads Guilty in White Plains Federal Court to Tax EvasionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation ("IRS-CI"), announced that ANTONIO NIKC, a Chappaqua businessman, pled guilty to tax evasion for the calendar years 2010 through 2014. As part of his plea, NIKC agreed to pay $395,745 in restitution to the Internal Revenue Service (“IRS”). NIKC pled guilty on March 3 before U.S. Magistrate Judge Lisa Margaret Smith.
U.S. Attorney Geoffrey S. Berman said: “As he admitted, Antonio Nikc used family businesses to conceal his substantial income and prevent the IRS from calculating his tax due. While using the business accounts to fund his extravagant lifestyle, Nikc failed to file any personal income tax returns. Now Nikc awaits sentencing for his crime.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: "Our tax system is based on voluntary compliance and we will hold those accountable who fail to report their income out of greed. IRS-CI special agents will continue to pursue those who take advantage of our tax system."
According to the allegations contained in the Information to which NIKC pled guilty and statements made in court:
From 2010 to 2015, NIKC managed a number of family businesses that operate large rental buildings in New York and Connecticut. NIKC ran these businesses and managed his personal finances in a manner designed to conceal his sources of income and prevent the IRS from calculating or assessing his tax due. NIKC treated the business entities’ bank accounts as his own personal bank accounts, using them to pay for more than $1.5 million in personal expenses, including oceanside condominiums in Miami, marina fees for a boat docked in Miami, airline tickets, luxury car payments, college tuition and allowances for his children, and purchases at jewelry stores, clothing stores, and restaurants.
Despite earning and spending a substantial income, NIKC failed to file any personal federal income tax returns and failed to pay any taxes due and owing on the income he received. NIKC took various affirmative steps to evade the assessment of taxes on that income, including paying for personal expenses out of the family business accounts and intentionally maintaining few assets in his own name. Through this scheme, NIKC evaded $395,745 in federal income taxes.
* * *
NIKC, 58, of Chappaqua, New York, pled guilty to one count of tax evasion, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. NIKC is scheduled to be sentenced by U.S. District Judge Nelson S. Román on June 5, 2020, at 11:00 a.m.
Mr. Berman praised the outstanding work of the Internal Revenue Service, Criminal Investigation, in this case.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Jim Ligtenberg is in charge of the prosecution.
Business Manager of Local Union and Trustee of Electrical Workers’ Retirement Plan Sentenced to Fifteen Months in Prison for Embezzlement and Wire FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Melvin Fishburn, 57, of Charleston, South Carolina was sentenced to 15 months imprisonment and three years’ supervised release by United States District Judge Edward G. Smith for stealing from the International Brotherhood of Electrical Workers, AFL-CIO, Local Union #743 (“IBEW Local 743”) and National Electrical Contractors Association Penn-Del-Jersey Chapter, Reading Division Retirement Plan (the “Retirement Plan”). He was also ordered to pay restitution of $81,413 and a special assessment of $800.
On July 17, 2019, Fishburn entered a guilty plea to an indictment charging him with four counts of embezzlement and four counts of wire fraud. Fishburn was the business manager for IBEW Local 743 and a trustee of the Retirement Plan. From July 2010 until June 2014, he stole $81,413 from the Retirement Plan and plan participants through an elaborate scheme by which he submitted disbursement requests from a shell entity he created for services that were never provided to, and expenses that were never incurred by, the Retirement Plan. Fishburn, in his capacity as trustee of the Retirement Plan, authorized the illegal payment of plan assets to the shell entity and had the checks mailed to a Post Office Box under his control.
“Fishburn abused his position of trust and betrayed union members to line his own pockets,” said U.S. Attorney McSwain. “That is reprehensible. He had a fiduciary duty under ERISA to take actions that benefit the Retirement Plan, but instead, he breached that duty in order to serve his own interests. My Office will aggressively pursue criminal conduct like this and will hold accountable those who deprive workers of benefits that are rightfully theirs.”
“Melvin Fishburn created a fictitious consulting company for the sole purpose of embezzling more than $80,000 from the IBEW Retirement Plan. Fishburn abused his position as a plan trustee in order to deprive hard-working union members of money set aside for their retirement. We will continue to work with the Employee Benefit Security Administration and our other law enforcement partners to protect the integrity of labor unions and their benefit plans,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“Prosecuting those who misuse funds from employee benefit plans is a vital aspect of EBSA’s mission to protect the rights of America’s workers,” said Michael Schloss, Employee Benefit Security Administration’s (EBSA) Regional Director in Philadelphia. “EBSA will continue to aggressively investigate such crimes on behalf of workers nationwide.”
The case was investigated by the United States Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud, as well as the Employee Benefits Security Administration. It is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Brockton Man Pleads Guilty to Federal Drug OffensesRead the Press Release
BOSTON – A Brockton man pleaded guilty yesterday in federal court in Boston to distributing fentanyl and cocaine.
Rayshawn DaCruz, 24, pleaded guilty to four counts of distribution of a controlled substance. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for June 25, 2020. DaCruz was arrested in Brockton and charged in May 2019.
On April 4, 2019, DaCruz sold a bag of cocaine and a bag of fentanyl to an undercover police officer in Stoughton. Then on April 16, May 2, and May 6, 2019, DaCruz sold various amounts of fentanyl to the same undercover officer in Brockton.
Each charge of distribution of a controlled substance provides for a sentence of up to 20 years in prison, a minimum of three years and up to life of supervised release and a fine up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Emanuel Gomes made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This prosecution 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.
Billings meth dealer sentenced to prisonRead the Press Release
BILLINGS—A Billings man who admitted possessing methamphetamine for distribution was sentenced today to 48 months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Michael Alan McNulty, 55, pleaded guilty in October to possession with intent to distribute.
U.S. District Judge Susan P. Watters presided. Judge Watters also ordered McNulty to forfeit $5,895.
The prosecution said in court records that McNulty was arrested after law enforcement observed suspected drug sales occurring at several Billings residences. Officers followed a truck registered to McNulty as it left one residence and went to another residence, where McNulty and a female driver left the truck, entered the residence and left about 15 minutes later. The truck then went to another residence known to officers to be associated with illegal drug sales. McNulty entered that residence, left about five minutes later and got back into the truck, which drove away.
Officers stopped the truck after observing it make several traffic violations. McNulty consented to a search of the truck and officers found meth. McNulty also said he had a couple of ounces of meth on his person, which officers confirmed by searching him. In addition, McNulty admitted he had sold a gram of meth at the previous residence.
Assistant U.S. Attorney Karla Painter prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Berea Man Sentenced to 170 Months for Methamphetamine TraffickingRead the Press Release
LONDON, Ky. - A Berea, Kentucky man, Gary Lester Metcalf, 31, was sentenced in federal court on Thursday, to 170 months in prison, by U.S. District Court Judge Robert Wier, for conspiracy to distribute methamphetamine.
Metcalf previously admitted that between March 2018 and February 2019, he conspired with others to distribute 500 grams or more of methamphetamine in Pulaski, Laurel, Rockcastle, and Madison Counties. Metcalf admitted that he arranged the delivery of the methamphetamine from a supplier in Nevada, to a dealer in Eastern Kentucky, using the United States Postal Service. Metcalf would then arrange the collection and delivery of the proceeds from the distribution back to the Nevada-based dealer.
A local co-defendant, Billie Jean Lunceford, 50, of Eubank, Ky., pleaded guilty in December 2019 and is scheduled for sentencing on May 26, 2020.
Under federal law, Metcalf must serve 85 percent of his prison sentence 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 for DEA, Louisville Field Division; Chief Travis Davis, Broadhead Police Department; Sheriff Paul Hayes, Jackson County Sheriff’s Department; and Sheriff Greg Speck, Pulaski County Sheriff’s Department, jointly made the announcement.
The investigation was directed by the DE, Madison County Drug Task Force, Jackson County Sheriff’s Department, Pulaski County Sheriff’s Department, and Broadhead Police Department. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
— END —