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4 March 2020
Former American Airlines Mechanic Sentenced to Prison for Attempting to Destroy an AircraftRead the Press Release
MIAMI−Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office announced that Abdul-Majeed Marouf Ahmed Alani, 60, of Tracy, California was sentenced today by U.S. District Judge Marcia G. Cooke to 37 months in prison, after previously pleading guilty to the federal charge of attempted destruction of an aircraft.
According to the court record, including the facts admitted at the change of plea hearing, on or about July 17, 2019, Alani, a mechanic then employed by American Airlines at Miami International Airport (MIA), tampered with the air data module (ADM) system of an aircraft that was scheduled to depart MIA for Nassau, Bahamas.
On or about July 17, 2019, approximately two hours after its arrival into MIA, the aircraft pulled out for its scheduled departure to the Bahamas. Passengers and crew members were aboard the aircraft. While on the departure runway, the flight crew increased power to the aircraft engines in preparation for take-off. This resulted in an error reading by the aircraft’s computer related to the ADM system and the take-off was aborted.
Prior to the aircraft’s scheduled take-off from MIA, it was discovered that Alani had inserted a foam substance into the ADM system and used super glue to hold the substance in place.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s South Florida Joint Terrorism Task Force (JTTF). She thanked the U.S. Federal Air Marshal Service, Miami-Dade Police Department’s Airport Division, U.S. Department of Homeland Security Transportation and Security Administration (TSA), U.S. Customs and Border Protection, Miami-Dade County Aviation Authority and Federal Aviation Administration (FAA) for their invaluable assistance. The case was prosecuted by Assistant U.S. Attorneys Randy A. Hummel and Maria K. Medetis.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Florida man admits to unlawfully downloading tax return transcripts from IRSRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ludrick Joseph, of Miami, Florida, has admitted to downloading taxpayer transcripts by unlawfully accessing Internal Revenue Service computers, U.S. Attorney Bill Powell announced.
Joseph, age 38, pled guilty this week to a one-count information charging him with “Accessing a Computer and Obtaining Information.” Joseph admitted to fraudulently accessing the Internal Revenue Service (IRS) eAuthentication online taxpayer system, which has servers located in Berkeley County, in April 2015. In order to pass IRS security protocols, Joseph unlawfully obtained the Electronic Filing Pin (EFP) for a taxpayer which allowed him access into the eAuthentication system. Once in the IRS eAuthentication system, Joseph fraudulently gained access to eight different tax return transcripts of an individual taxpayer. The tax return transcripts contained the taxpayer’s date of birth, social security number, and gross income, among other sensitive information.
Joseph faces up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Treasury Inspector General for Tax Administration Cybercrime Investigations Division investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Felon Pleads Guilty to Hampton Roads Cocaine ConspiracyRead the Press Release
NORFOLK, Va. – A Norfolk man with a previous federal drug-trafficking conviction pleaded guilty today to conspiring to traffic wholesale amounts of cocaine in and around Hampton Roads and to possessing several guns to protect his drug trade.
According to court documents, in 2014, Daryl Keith Sills, 56, completed a nine-year federal sentence for conspiring to distribute multiple kilograms of cocaine. Two years later, he started up his drug trafficking operation again, distributing at least one kilogram of powder cocaine a month until his October 2019 arrest on the charges in this case.
In 2018, DEA conducted three controlled buys from Sills, totaling 140 grams of cocaine. In 2019, informants observed Sills receive and store in his residence more than 10 kilograms of cocaine. At Sills’ arrest, law enforcement searched his Norfolk and Virginia Beach drug premises, recovering a total of nine firearms, hundreds of rounds of ammunition, 713 grams of cocaine, and 74 grams of marijuana. Sills admitted to his years-long conspiracy and attributed 20 kilograms of historical cocaine weight to himself.
Sills pleaded guilty to one count of conspiring to distribute and possess with intent to distribute 500 grams or more of cocaine, and two counts of possessing firearms in furtherance of drug-trafficking crimes. He faces a mandatory minimum of 15 years in prison and a maximum of life when sentenced on June 8. 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 is 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; James A. Cervera, Chief of Virginia Beach Police; and Larry D. Boone, Chief of Norfolk Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney William B. Jackson is prosecuting the case.
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. 2:20-cr-002.
Federal Jury in New Mexico convicts man from Minnesota of falsely impersonating Border Patrol agent at Southwest borderRead the Press Release
ALBUQUERQUE, N.M. – A federal jury in Las Cruces, New Mexico returned a guilty verdict on Mar. 3 convicting James Christopher Benvie, 45, of Albany, Minnesota, of two counts of false personation of a Border Patrol agent.
According to public court records and evidence at trial, Benvie was a leader and spokesperson for a group of vigilantes who established a “camp” at the Southwest border in Doña Ana County, New Mexico. Many members of the group wore badges, camouflage and other military-style clothing, often covered their faces with masks, and carried pistols and assault rifles. Benvie misrepresented himself as a Border Patrol Agent when stopping immigrants he suspected of crossing into the United States illegally.
“The jury’s verdict in this case affirms the principle that we are a nation of laws and do not tolerate vigilantes who take the law into their own hands by falsely impersonating Border Patrol agents,” said John C. Anderson, U.S. Attorney for the District of New Mexico.
“The men and women who earned the right to wear the badge of a Border Patrol agent put their lives on the line every day,” said James C. Langenberg, Special Agent in Charge of the FBI’s Albuquerque Division. “The FBI is proud to have worked on this case with these brave agents and will never let their honor be stolen by pretenders who scoff at the rule of law.”
The evidence at trial showed Benvie and other group members stopped six women and children from El Salvador on Apr. 15, 2019, without any legitimate law enforcement authority. Benvie misrepresented himself as a Border Patrol agent and interrogated the immigrants before turning them over to actual Border Patrol agents. On Apr. 17, 2019, Benvie stopped four adults and three children shortly after they crossed the border. Benvie ordered these immigrants to “stop” while misrepresenting himself as “Border Patrol.” Benvie later directed these immigrants to move toward the truck of another member of the group for further interrogation before eventually turning them over to Border Patrol.
Benvie is currently out of custody awaiting sentencing. He faces up to three years in prison for each offense.
The FBI and U.S. Border Patrol investigated this case. Assistant U.S. Attorneys from the Las Cruces Branch Office are prosecuting the case.
Federal Jury Convicts Man of Wire and Mail Fraud in Connection with Fraudulent Mortgage Debt Reduction SchemeRead the Press Release
HONOLULU, Hawaii – A federal jury yesterday found Anthony T. Williams, 48, of Nashville, Tennessee guilty of 32 counts of wire and mail fraud. The verdict followed a four-week trial before United States District Judge Leslie E. Kobayashi. Sentencing is scheduled for June 24, 2020
According to the evidence presented at trial, Williams marketed a fraudulent mortgage debt reduction scheme to distressed homeowners, who were mostly non-native English speakers in the Filipino immigrant community in Hawaii. Williams created two companies, Mortgage Enterprise Investments (MEI) and Common Law Office of America (CLOA), neither of which was licensed to service or modify mortgages. Through MEI, Williams made conflicting promises to clients that he could eliminate their existing mortgage obligations to their lenders, or reduce their mortgage obligations by half. Through CLOA, Williams promised legal representation in mortgage-related litigation and foreclosure proceedings. To give himself the appearance of credibility, Williams told prospective clients he was a “private attorney general” and brandished an official-looking law enforcement badge and credentials, despite not having a law license or any affiliation with law enforcement.
The evidence at trial demonstrated that Williams falsely promised victims that he could eliminate their existing home mortgage obligations by filing bogus documents with the Hawaii Bureau of Conveyances. These documents included new MEI mortgages and notes obligating homeowners to make monthly payments to MEI. Williams then advised homeowners to stop making their mortgage payments to their lenders and to pay him instead.
The government presented evidence that between 2012 and 2015,Williams enlisted 112 victims in Hawaii into his MEI program and fraudulently obtained over $218,000. Furthermore, several victims testified at trial that they relied upon Williams’s representations and went into foreclosure as a result of the MEI program and lost their homes.
The investigation was led by the Federal Bureau of Investigation. Assistant U.S. Attorneys Kenneth M. Sorenson and Gregg Paris Yates handled the prosecution.
Engineering Grad Sentenced for Lying to FBIRead the Press Release
Aaron Fein concealed using and trying to make mass casualty weapons
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced that Aaron William Fein, 25 years old, of Grand Rapids, was sentenced today to 27 months’ imprisonment by U.S. District Judge Paul L. Maloney. Fein pled guilty in July to lying to FBI agents about renting and training with an AR-15. Upon his release, Fein will be confined to his home and closely supervised by the U.S. Probation Office for 3 years. Both in custody and after his release, Fein will receive mental health treatment and counseling. As a result of his conviction, he is barred from possessing firearms in the future.
Task Force Agents first became aware of Fein in August, 2018, when he attempted to cross into Canada without proper documentation. When he returned, U.S. Customs and Border Protection agents found documents and materials in his car relating to bomb making and jihadism. Fein admitted having bomb-making materials at his home, and told agents he was interested in mass shootings. During the following months, Task Force Agents kept close tabs on Fein, including encouraging him to seek counseling.
On several occasions last year, Fein obtained and attempted to obtain firearms and ammunition, but agents interceded. Agents eventually filed a petition for mental health treatment, and the Kent County Probate Court ordered Fein not to possess any firearms. In April, 2019, agents learned Fein had rented an AR-15 style semiautomatic assault rifle and trained with it at a firearms range in eastern Michigan. When they apprehended him soon after, he falsely stated he had not touched any guns. Video recordings from the range clearly showed him shooting the rifle. After additional investigation, agents learned Fein had bought metalworking tools. They arrested him at his residence, and found unassembled parts for multiple AR-15 rifles, as well as radio transmitters and electrical components for an improvised explosive device. Fein has a college degree in engineering.
District Judge Maloney imposed an enhanced sentence in this case based on several factors, including obstructing justice by asking a fellow inmate to help him dispose of evidence. Judge Maloney concluded a substantial term of incarceration was necessary because “Mr. Fein is a significant risk to the public.”
Aaron Fein's behavior dictated that law enforcement get involved so that he would not continue to pose a danger to our communities," said FBI Special Agent in Charge Steven M. D'Antuono. "Today's sentence reflects a balance of the need to protect the public - by preventing Mr. Fein from purchasing weapons - with the recognition that he should be afforded the opportunity to receive the mental health services he needs.
This investigation was a joint effort of the Federal Bureau of Investigation, Homeland Security Investigations, U.S. Customs and Border Protection, the Kent County Sheriff’s Office and the Michigan State Police.
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El Salvador citizen who helped local MS-13 members in jail sentenced to prison for reentering United States illegallyRead the Press Release
COLUMBUS, Ohio – A man who was in frequent communication with imprisoned members of the Columbus clique of MS-13 was sentenced in U.S. District Court today for reentering the United States illegally for the third time.
Fabian Posadas-Mejia, 44, was sentenced to 10 months in prison and one year of supervised release, and is subject to deportation following his prison sentence.
Posadas-Mejia was convicted by a jury following a one-day trial in October 2019.
According to court documents, Posadas-Mejia is a citizen of El Salvador with no legal status in the United States. Immigration officials initially encountered him nearly 25 years ago. Posadas-Mejia was first ordered to be removed from the United States in 1995. He was deported twice in 2014 and once in 2017.
Most recently, law enforcement officials encountered Posadas-Mejia as part of the prosecution of numerous members and associates of MS-13 in Columbus.
In the days and weeks following an August 2017 takedown of the transnational gang, investigators monitoring phone calls that MS-13 members were making from jail learned that multiple inmates were in frequent communication with Posadas-Mejia.
The defendant was depositing money in the gang members’ jail accounts, helping them retrieve and dispose of personal property and checking on inmates’ families.
In addition to being removed from the United States three times and being linked to the government’s ongoing prosecution of MS-13, Posadas-Mejia has a previous domestic violence conviction, among other state convictions.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations, announced the sentence imposed by U.S. District Court Judge Edmund A. Sargus, Jr. Deputy Criminal Chief Brian J. Martinez is representing the United States in this case.
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Dunedin Woman Pleads Guilty to Distributing Heroin and Fentanyl, Causing DeathRead the Press Release
Tampa, Florida – Heidi Kalous (39, Dunedin) today pleaded guilty to conspiring and distributing a substance that contained a mixture of heroin, fentanyl, and acetyl fentanyl, causing the death of an individual. She faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, beginning no later than June 5, 2019, and continuing through June 28, 2019, Kalous conspired with other individuals to possess and distribute heroin, fentanyl, and acetyl fentanyl throughout Pinellas County.
On June 5, 2019, Kalous distributed two bags —which contained a substance composed of a mixture of heroin, and fentanyl—to an individual. The individual injected himself with the substance from the bags and died. A medical autopsy revealed that the cause of death was an accidental overdose caused by fentanyl toxicity.
Between June 5 and June 27, 2019, after the individual’s death, Kalous continued to distribute narcotics, including crack cocaine, fentanyl, acetyl fentanyl and heroin, out of a motel in Dunedin.
This case is part of the Middle District of Florida’s anti-opioid strategy to combat opioid trafficking and abuse. This case was investigated by the Drug Enforcement Administration and the Pinellas County Sheriff’s Office, with assistance from the Pinellas County Medical Examiner’s Office. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
Drug Dealer Pleads Guilty in Fentanyl Overdose DeathRead the Press Release
Assistant U. S. Attorney David P. Finn (619) 546-7342
NEWS RELEASE SUMMARY – March 4, 2020
SAN DIEGO – Michael Steen pleaded guilty in federal court today, admitting that he supplied fentanyl that led to the fatal overdose of a 33-year-old Ramona woman on July 9, 2018.
According to his plea agreement, Steen sold more than 500 grams of what he knew to be fentanyl in 2018. He pleaded guilty before U.S. Magistrate Judge F. A. Gossett III to Conspiracy to Distribute Fentanyl and is scheduled to be sentenced on May 29, 2020 by U.S. District Judge Gonzalo P. Curiel.
“This case should put dealers on notice that every time we have an overdose death, we are going to come looking for you, because many lives are at stake,” said U.S. Attorney Robert Brewer. “We are using every available criminal and civil tool to combat this deadly epidemic and stop these tragic losses.”
“This case is an example of the DEA, the Sheriff’s Department and the U.S. Attorney’s office working together with one definitive goal: To put people responsible for drug deaths in jail,” said DEA Special Agent in Charge John W. Callery. “We will continue to aggressively pursue those who deal drugs and cause death in our community.”
“Sheriff's Deputies are on the front lines of combating the proliferation of illicit fentanyl,” said Sheriff’s said Captain Justin White. “There are many stories of lives stolen. In this case, the victim is a young woman from Ramona who was just starting off in life. The Sheriff's Department is dedicated to working with our federal, state and local partners in holding those accountable for the distribution, supply or manufacturing of this potent painkiller.”
The United States Attorney’s Office is working closely with the San Diego County District Attorney’s Office, the San Diego County Sheriff’s Office, the Drug Enforcement Administration and our other federal, state and local law enforcement partners to investigate and prosecute cases targeting those who supply drugs in fatal overdose cases.
U.S. Attorney Brewer praised prosecutor David Finn as well as the San Diego Sheriff’s Office and DEA agents for their hard work on the case.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANT Case Number 19-CR-0869-GPC
Michael Steen Age: 26
SUMMARY OF CHARGES
Conspiracy to Distribute Fentanyl – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Mandatory minimum 10 years in prison up to life
AGENCY
San Diego Sheriff’s Office
U.S. Drug Enforcement Administration, Narcotics Task Force
Doctor Pleads Guilty to Illegal Distribution of Adderall, OxycodoneRead the Press Release
ALEXANDRIA, Va. – A Fairfax medical doctor pleaded guilty today to illegally diverting Adderall and oxycodone to six different patients, including a patient who suffered from opioid addiction and later died of a drug overdose.
According to court documents, Dr. Gurpreet Singh Bajwa, 49, temporarily lost his medical license in 2012 following an investigation by the Virginia Department of Health Professions (DHP) into his prescription practices. After he license was reinstated, he significantly reduced the quantity of pain medications he prescribed, and switched over to stimulants, benzodiazepines, and sedatives.
Generally, at no point during any of his patients’ visits did Bajwa or any of his staff receive, review, or request prior medical files; obtain medical histories; conduct physical examinations; discuss the case of any attention disorder or what might properly address such a condition; discuss any alternatives to treatment; or obtain and analyze urine samples to ensure his patients were taking their medications as directed.
Beginning in summer 2018, two undercover law enforcement officers posed as patients and made appointments to see Bajwa. At each visit, Bajwa prescribed the undercover officers a 30-day supply of Adderall—despite the undercover officers showing up to two weeks prior to the end of the previous 30 day period. One of the officers told Bajwa that she was a fitness model and needed Adderall for her workouts, which is not a legitimate use for the substance. The undercover officer also asked Bajwa to prescribe her extra pills that she could give to a “friend” and he readily agreed.
One of the patients to whom Bajwa prescribed significant quantities of prescription drugs had a history of high blood pressure, among other health conditions. Nevertheless, Bajwa wrote her monthly prescriptions for the maximum dose of Adderall, a schedule II stimulant.
In 2016, the CDC and the FDA issued warnings cautioning against prescribing opioids and benzodiazepines (including Xanax) together because of the increased risk of fatal overdose. Nevertheless, on multiple occasions, Bajwa wrote prescriptions to patients for both oxycodone—a powerful Schedule II opioid—and Xanax.
One of Bajwa’s patients, N.J., suffered from heroin addiction. N.J.’s mother told Bajwa two or three times that N.J. was abusing drugs, and yet Bajwa continued to prescribe controlled substances to N.J. In November 2017, Bajwa prescribed both oxycodone and Xanax to N.J., despite knowing of N.J.’s drug addiction, and despite the increased danger of combining the two medications. In January 2018, N.J. was dismissed from a rehabilitation program after he was caught abusing drugs Bajwa prescribed him. N.J. died of a drug overdose a short time later.
Bajwa pleaded guilty to five counts of distribution of Adderall, and one count of distribution of oxycodone and faces a maximum penalty of 20 years in prison when sentenced on May 22. 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.
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 Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorney Katherine E. Rumbaugh is prosecuting the case.
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-060.
District Man Pleads Guilty to Armed Robbery and Armed First Degree BurglaryRead the Press Release
WASHINGTON – Denzell Moore, 26, of Washington, D.C. pled guilty to a Hobbs Act robbery and a federal firearms charge stemming from an armed robbery of a CVS near American University in the Fall of 2017, as well as an armed first degree burglary of a Howard University student’s home that occurred in the Spring of 2012, announced U.S. Attorney Timothy J. Shea, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Moore pled guilty in the U.S. District Court for the District of Columbia to one count of Interference with Interstate Commerce by Robbery and one count of Using, Carrying, Possessing, and Brandishing a Firearm during a Crime of Violence for the October 25, 2017 CVS offense, and one count of D.C. Code First Degree Burglary While Armed for the May 16, 2012 offense. He will be sentenced on May 15, 2020, by the Honorable Judge Tanya S. Chutkan and is facing between eleven and fifteen years of imprisonment.
Moore was originally arrested in connection with the May 16, 2012, burglary after he forcibly entered the residence of a college student while wearing a black ski mask and carrying a gun. During a struggle in the residence between Moore and the victims, Moore shot two of the victims in the knee and foot. Moore left behind his black ski mask, yielding a DNA match.
While on pretrial release for the 2012 burglary, Moore and two accomplices participated in the armed robbery of the CVS. At approximately 11:30 p.m. on October 25, 2017, Moore and two accomplices drove to a CVS located at 4555 Wisconsin Avenue, Northwest, Washington, D.C. near American University. Moore and one of his accomplices entered the store, brandished firearms, and ordered store employees to provide access to the store’s safe, obtaining approximately $4,300 in cash before escaping in their accomplice’s getaway car. Within minutes, MPD officers who had responded to the 911 call from the store, observed the getaway car and attempted to pull it over. The vehicle fled at a high rate of speed, before it ultimately came to a stop in Northwest, D.C. Before the car stopped, Moore jumped out and fled on foot, dropping a bag full of money and two firearms.
In announcing the plea, U.S. Attorney Shea, and MPD Chief Newsham commended the work of those law enforcement officers who investigated the cases. They also cited the efforts of those who worked on the cases from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Lauren B. Goddard, Melissa Jackson, Gregory Rosen, Jason McCullough, and William Woodruff. They also thanked Paralegal Specialists Teesha Tobias and Katie Thomas, as well as Legal Assistants Kate Abrey and Emma Atlas.
Derby Man Sentenced to Prison for Possessing Images and Videos Depicting the Sexual Abuse of ChildrenRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL VADAKIN, 29, of Derby, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 12 months and one day of imprisonment, followed by five years of supervised release, for possessing child pornography. Vadakin must serve the first four months of his supervised release in home confinement.
According to court documents and statements made in court, Vadakin was arrested on December 13, 2018, after an investigation revealed that he had used the Kik smartphone application to possess and share images and videos of children being sexually abused. Forensic analysis of a tablet seized during a search of Vadakin’s residence revealed additional images of child pornography.
The investigation also revealed that, in an attempt to hide his criminal behavior, Vadakin regularly downloaded the Kik app and deleted the app after each use. He also used fake user names and switched user names in an effort to remain anonymous on Kik and the internet.
On September 6, 2019, Vadakin pleaded guilty to one count of possession of child pornography.
Vadakin, who was released on bond, was remanded to the custody of the U.S. Marshals Service at the conclusion of today’s court proceeding.
This investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) with assistance from the Derby Police Department. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Department of Justice Launches a National Nursing Home InitiativeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart joined Attorney General William P. Barr in announcing 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.”
“West Virginia has a significant elder population and many families depend on nursing homes to provide excellent quality care to their loved ones,” said United States Attorney Mike Stuart. “We will bring all available federal resources to bear on nursing homes in the District that put greed before resident care. We are committed to protecting and ensuring justice for West Virginia seniors.”
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/.
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Department of Justice Launches A National Nursing Home InitiativeRead the Press Release
WASHINGTON – Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida joined Attorney General William P. Barr in announcing today 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.”
“Senior American need to be cherished. Unfortunately, many nursing home operators forget that. Our Office pledges its strong commitment to the national nursing home initiative announced today,” say U.S. Attorney Fajardo Orshan. “We must make certain that our seniors receive the respect and care that they deserve and that substandard nursing homes pay for their unconscionable acts of neglect.”
“The HHS Office of Inspector General (OIG) continues to pursue nursing home operators who provide potentially harmful care to residents who are often unable to protect themselves,” said Chief Counsel to the Inspector General Gregory Demske of HHS. “Creating this Initiative sends a message to those in charge of caring for these beneficiaries that grossly substandard care will not be tolerated.”
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/.
Department of Justice Charges Unprecedented Number of Elder Fraud Defendants Nationwide and Launches HotlineRead the Press Release
Seventeen Defendants Charged in the Southern District of Florida
MIAMI – United States Attorney Ariana Fajardo Orshan joined Special Agent in Charge Michael J. De Palma of the IRS Criminal Investigation Miami Field Office; Inspector in Charge Antonio J. Gomez of the United States Postal Inspection Service’s (USPIS) Miami Division; and Special Agent in Charge George L. Piro FBI Miami today in announcing the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
United States v. Adrianzen, Case No. 1:19-CR-20658: Indictment
United States v. Bindranauth, Case No. 4:19-CR-10016: Indictment
United States v. Burchell, Case No. 0:19-CR-60313: Indictment
United States v. Grossman, Case No. 0:19-CR-60300
United States v. Marchena, Case No. 1:19-CR-20622: Indictment
United States v. Perez, Case No. 1:19-CR-20850: Indictment
United States v. Shapiro, Case No. 1:19-CR-20178: Indictment
United States v. Turk , Case No. 9:19-CR-80148: Information
“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.”
“Fraudsters who brazenly prey on our seniors will pay for their crimes. Protecting our seniors is top priority of our Office,” said U.S. Attorney Fajardo Orshan. “We will not cease in our efforts, both criminal and civil, to prevent the pernicious crimes and punish the perpetrators.”
“Elder abuse is a serious crime and IRS Criminal Investigation is committed to investigate individuals who perpetrate schemes against the elderly community and those exhibiting vulnerability in our society. IRS-CI will not stop its efforts as demonstrated in the United States v. Shapiro case until the fraudsters of such cold and calculated crimes are captured and sentenced” said Special Agent in Charge Michael J. De Palma. “With the support and assistance from the U.S. Attorney’s Office in the Southern District of Florida, IRS-CI will continue to enforce the law and foster public trust as an active agency in the Transnational Elder Fraud Strike Force.”
“The U.S. Postal Inspection Service has a long tradition of protecting the American consumer from these types of predatory schemes and bringing those responsible to justice particularly when they target the elderly,” said Inspector in Charge Antonio J. Gomez. “Every day we protect our postal customers and the general public from falling victim to these scams.”
“The greed of fraudsters who target senior citizens knows no bounds. Using a variety of tactics such as false romance and law enforcement impersonation, these scam artists bilk hard earned money from their aging marks – leaving many so financially devastated that they cannot recover because of their stage of life,” said Special Agent in Charge George L. Piro. “The FBI is doing everything we can to be sure our elder fellow citizens are protected and not defrauded.”
This interactive map provides state by state information on the elder fraud cases and education and prevention community outreach efforts 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).
Watch USA Fajardo Orshan’s related public service announcement here:
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Transnational Elder Fraud Strike Force
The Transnational Elder Fraud Strike Force prosecuted more than one quarter of the defendants charged as part of the announced sweep. Established in June 2019, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Prosecutors in Strike Force districts brought cases against more than 140 sweep defendants. FBI and the Postal Inspection Service served as lead agencies in the Strike Force and committed substantial investigative resources to pursuing elder fraud cases as part of Strike Force efforts. The Strike Force has held dozens of meetings with industry, victim groups, and law enforcement at the federal, state, and local levels to identify the most harmful schemes victimizing American seniors and to bolster preventive measures against further losses.
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 Antitrust Division Announces Agenda and Panelists for Workshop on Proposed Vertical Merger GuidelinesRead the Press Release
The Department of Justice has released the agenda and list of participants for its March 11, 2020, public workshop to solicit public dialogue on the proposed vertical merger guidelines. The workshop will be the first in a two-part series hosted together with the Federal Trade Commission. The two half-day workshops will allow for a dynamic discussion about the proposed guidelines to complement the written public comments about the proposed guidelines that were submitted to the agencies.
The proposed guidelines describe how the federal antitrust agencies review vertical mergers to evaluate whether they violate antitrust law. Vertical mergers combine two or more companies that operate at different levels of the supply chain. The proposed guidelines outline the agencies’ principal analytical techniques, practices, and enforcement policy for vertical mergers. The Department of Justice and the FTC cooperated closely in preparing the proposed guidelines, which reflect the agencies’ significant experience in analyzing vertical mergers. The guidelines are intended to assist the business community and antitrust practitioners by providing transparency about the agencies’ antitrust enforcement practices with respect to vertical mergers.
The agencies will consider both public comments and workshop discussions before issuing final vertical merger guidelines. A copy of the public comments received by the agencies are available here.
The agenda for the workshop includes a session from 9:00 a.m. to 1:00 p.m. EDT. Details are as follows:
Welcome Address
- Makan Delrahim, Assistant Attorney General for Antitrust, U.S. Department of Justice
Opening Remarks
- Christine Wilson, Commissioner, Federal Trade Commission
Panel 1: Former Enforcer and Practitioner Perspectives
- Moderators: David Shaw, Counsel to the Assistant Attorney General for Antitrust, U.S. Department of Justice & Heather Johnson, Senior Counsel to the Director, Bureau of Competition, Federal Trade Commission
- Renata Hesse, Partner, Sullivan & Cromwell, former Acting Assistant Attorney General for Antitrust, U.S. Department of Justice
- Jonathan Jacobson, Partner, Wilson Sonsini
- Robert Majure, Ph.D., Vice President, Cornerstone Research, former Director of Economics for the Antitrust Division of the U.S. Department of Justice
- Jonathan Sallet, Senior Fellow, Benton Institute for Broadband & Society, former Deputy Assistant Attorney General for Antitrust, U.S. Department of Justice
- Craig Waldman, Partner, Jones Day
Panel 2: Public Interest and Academic Perspectives
- Moderators: David Lawrence, Chief, Competition Policy & Advocacy Section, Antitrust Division, U.S. Department of Justice & Andrew Sweeting, Director, Bureau of Economics, Federal Trade Commission
- Avery Gardiner, Senior Fellow for Competition, Data, and Power, Center for Democracy & Technology, former Counsel to the Assistant Attorney General for Antitrust, U.S. Department of Justice
- Aviv Nevo, Ph.D., Professor, University of Pennsylvania, former Deputy Assistant Attorney General for Economic Analysis, Antitrust Division, U.S. Department of Justice
- Steven Salop, Ph.D., Professor, Georgetown Law Center, former Associate Director for Special Projects, Bureau of Economics, Federal Trade Commission
- Charlotte Slaiman, Competition Policy Director, Public Knowledge
- Christopher Yoo, Professor, University of Pennsylvania Carey Law School
The workshop is free and open to the public. The March 11, 2020 workshop will take place at the Robert F. Kennedy Department of Justice Building, 950 Pennsylvania Avenue, NW, Washington, D.C., from 9:00 a.m. to 1:00 p.m. EDT. A recording of the workshop will be available on the Division’s website. Registration information, an agenda, directions to the event, and a list of speakers will be available prior to each workshop on the event webpage. Attendees are encouraged, but not required, to register in advance for the workshop. Registration for the workshop may be completed on Eventbrite. Members of the press should also copy [email protected] on their registration email. Seating will be on a first-come, first-served basis. Attendees should bring a valid government-issued photo ID (government badge, license, passport, etc.) and arrive in time to go through security.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact the Antitrust Division at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.
The second workshop will be hosted on March 18, 2020, by the Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, D.C., from 1 p.m. to 5 p.m. EDT. The Federal Trade Commission will announce the agenda for the second workshop at www.ftc.gov.
Department of Justice Launches A National Nursing Home InitiativeRead the Press Release
TALLAHASSEE, FLORIDA – Lawrence Keefe, United States Attorney for the Northern District of Florida, joined Attorney General William P. Barr in announcing today 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 30 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."
"With the largest per-capita population of seniors in the country, Florida puts a premium on caring for nursing homes residents," U.S. Attorney Keefe said. "This state has some of the finest nursing homes in the country, but the Department of Justice is targeting those operators whose disregard for the health and well-being of their residents puts our most vulnerable citizens at risk."
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 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 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 are found living in residents’ rooms. These are some of the actions and the inactions 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 https://www.justice.gov/elderjustice .
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Department of Justice Charges Unprecedented Number of Elder Fraud Defendants Nationwide and Launches HotlineRead the Press Release
Four Defendants Charged in Northern District of Florida
TALLAHASSEE, FLORIDA – Lawrence Keefe, United States Attorney for the Northern District of Florida, joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today in announcing the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
In the Northern District of Florida, four individuals were charged with criminal offenses. All were prosecuted as part of the Department’s Elder Fraud sweep.
"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 its large elder population, Florida experiences far too many instances of fraud against unsuspecting, vulnerable seniors," U.S. Attorney Keefe said. "This nationwide sweep against the predators who perpetrate such fraud will send a loud signal across the Northern District of Florida that we will pursue then, we will prosecute them, and we will punish them to the fullest extent of the law."
This 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 districts 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.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Defense Department Linguist Charged with EspionageRead the Press Release
Mariam Taha Thompson, 61, formerly of Rochester, Minnesota, was charged today in the District of Columbia with transmitting highly sensitive classified national defense information to a foreign national with apparent connections to Hizballah, a foreign terrorist organization that has been so designated by the Secretary of State. According to the affidavit filed in support of a criminal complaint, the information Thompson gathered and transmitted included classified national defense information regarding active human assets, including their true names. By compromising the identities of these human assets, Thompson placed the lives of the human assets and U.S. military personnel in grave danger.
The announcement was made by John C. Demers, the Assistant Attorney General for National Security; Timothy J. Shea, the United States Attorney for the District of Columbia; Robert Wells, Acting Assistant Director of the FBI's Counterintelligence Division; and Timothy R. Slater, the Assistant Director in Charge of the Washington Field Office.
“While in a war zone, the defendant allegedly gave sensitive national defense information, including the names of individuals helping the United States, to a Lebanese national located overseas,” said Assistant Attorney General for National Security John C. Demers. “If true, this conduct is a disgrace, especially for someone serving as a contractor with the United States military. This betrayal of country and colleagues will be punished.”
“The conduct alleged in this complaint is a grave threat to national security, placed lives at risk, and represents a betrayal of our armed forces. The charges we’ve filed today should serve as a warning to anyone who would consider disclosing classified national defense information to a terrorist organization,” said U.S. Attorney Timothy J. Shea for the District of Columbia.
"This case shows the value of cooperation across the U.S. Government. Working closely with the Department of Defense, the FBI was able to investigate this willful disregard for keeping national defense information safe and partnered to bring the defendant to the United States to face justice," said Acting Assistant Director of the FBI's Counterintelligence Division Robert Wells.
“Today's announcement is a testament to the U.S. government's commitment to protecting the U.S. from the unauthorized disclosure of classified information that can put our country at serious risk of damage - damage to people and damage to our country's capabilities,” said Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office. “Human assets are the core of the U.S. government's intelligence, and they have our assurance that we will go above and beyond to protect them. I want to thank the men and women at the FBI and our partners here and abroad who answered the call to assist on this fast-moving investigation. The FBI is charged with protecting our nation's security and information for a safe and secure tomorrow for all Americans - we take this duty seriously and will not stand by while supposedly trusted individuals violate that trust in such an egregious way.”
Thompson was arrested by FBI Special Agents on February 27, 2020, at an overseas U.S. military facility, where she worked as a contract linguist and held a Top Secret government security clearance.
The investigation leading to this arrest revealed that starting on or about December 30, 2019, a day after U.S. airstrikes against Iranian-backed forces in Iraq, and the same day protesters stormed the U.S. embassy in Iraq to protest those strikes, audit logs show a notable shift in Thompson’s network activity on United States Department of Defense classified systems, including repeated access to classified information she had no need to access. Specifically, during a six-week period between December 30, 2019, and February 10, 2020, Thompson accessed dozens of files concerning human intelligence sources, including true names, personal identification data, background information, and photographs of the human assets, as well as operational cables detailing information the assets provided to the United States government.
A court-authorized search of Thompson’s living quarters on February 19, 2020, led to the discovery of a handwritten note in Arabic concealed under Thompson’s mattress. The note contained classified information from Department of Defense computer systems, identifying human assets by name, and warning a Department of Defense target who is affiliated with a designated foreign terrorist organization with ties to Hizballah. The note also instructed that the human assets’ phones should be monitored.
Thompson transmitted the classified information in the handwritten note to a co-conspirator, in whom she had a romantic interest. The FBI’s investigation revealed that Thompson knew the co-conspirator was a foreign national whose relative worked for the Lebanese government. The investigation also revealed that the co-conspirator has apparent connections to Hizballah. Further investigation revealed that, in a separate communication, Thompson also provided information to her co-conspirator identifying another human asset and the information the asset had provided to the United States, as well as providing information regarding the techniques the human assets were using to gather information on behalf of the United States.
In today’s Criminal Complaint, Thompson was charged with Delivering Defense Information to Aid a Foreign Government in violation of 18 U.S.C. § 794(a) and conspiring to do so in violation of 18 U.S.C. § 794(c).
Thompson is scheduled to make her initial appearance before United States Magistrate Judge Robin M. Meriweather later this afternoon. A Criminal Complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty. If convicted, Thompson faces a maximum sentence of life in prison for violating § 794. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only. If convicted of any offense, the sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Trial Attorneys Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section, Jennifer Levy of the Counterterrorism Section, and Assistant United States Attorney for the District of Columbia John Cummings are prosecuting the case.
Defense Department Linguist Charged with EspionageRead the Press Release
WASHINGTON – Mariam Taha Thompson, 61, formerly of Rochester, Minnesota, was charged today in the District of Columbia with transmitting highly sensitive classified national defense information to a foreign national with apparent connections to Hizballah, a foreign terrorist organization that has been so designated by the Secretary of State. According to the affidavit filed in support of a criminal complaint, the information Thompson gathered and transmitted included classified national defense information regarding active human assets, including their true names. By compromising the identities of these human assets, Thompson placed the lives of the human assets and U.S. military personnel in grave danger.
The announcement was made by John C. Demers, the Assistant Attorney General for National Security; Timothy J. Shea, the United States Attorney for the District of Columbia; Robert Wells, Acting Assistant Director of the FBI's Counterintelligence Division; and Timothy R. Slater, the Assistant Director in Charge of the Washington Field Office.
“While in a war zone, the defendant allegedly gave sensitive national defense information, including the names of individuals helping the United States, to a Lebanese national located overseas,” said Assistant Attorney General for National Security John C. Demers. “If true, this conduct is a disgrace, especially for someone serving as a contractor with the United States military. This betrayal of country and colleagues will be punished.”
“The conduct alleged in this complaint is a grave threat to national security, placed lives at risk, and represents a betrayal of our armed forces. The charges we’ve filed today should serve as a warning to anyone who would consider disclosing classified national defense information to a terrorist organization,” said U.S. Attorney Timothy J. Shea for the District of Columbia.
"This case shows the value of cooperation across the U.S. Government. Working closely with the Department of Defense, the FBI was able to investigate this willful disregard for keeping national defense information safe and partnered to bring the defendant to the United States to face justice," said Acting Assistant Director of the FBI's Counterintelligence Division Robert Wells.
“Today's announcement is a testament to the U.S. government's commitment to protecting the U.S. from the unauthorized disclosure of classified information that can put our country at serious risk of damage - damage to people and damage to our country's capabilities,” said Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office. “Human assets are the core of the U.S. government's intelligence, and they have our assurance that we will go above and beyond to protect them. I want to thank the men and women at the FBI and our partners here and abroad who answered the call to assist on this fast-moving investigation. The FBI is charged with protecting our nation's security and information for a safe and secure tomorrow for all Americans - we take this duty seriously and will not stand by while supposedly trusted individuals violate that trust in such an egregious way.”
Thompson was arrested by FBI Special Agents on February 27, 2020, at an overseas U.S. military facility, where she worked as a contract linguist and held a Top Secret government security clearance.
The investigation leading to this arrest revealed that starting on or about December 30, 2019, a day after U.S. airstrikes against Iranian-backed forces in Iraq, and the same day protesters stormed the U.S. embassy in Iraq to protest those strikes, audit logs show a notable shift in Thompson’s network activity on United States Department of Defense classified systems, including repeated access to classified information she had no need to access. Specifically, during a six-week period between December 30, 2019, and February 10, 2020, Thompson accessed dozens of files concerning human intelligence sources, including true names, personal identification data, background information, and photographs of the human assets, as well as operational cables detailing information the assets provided to the United States government.
A court-authorized search of Thompson’s living quarters on February 19, 2020, led to the discovery of a handwritten note in Arabic concealed under Thompson’s mattress. The note contained classified information from Department of Defense computer systems, identifying human assets by name, and warning a Department of Defense target who is affiliated with a designated foreign terrorist organization with ties to Hizballah. The note also instructed that the human assets’ phones should be monitored.
Thompson transmitted the classified information in the handwritten note to a co-conspirator, in whom she had a romantic interest. The FBI’s investigation revealed that Thompson knew the co-conspirator was a foreign national whose relative worked for the Lebanese government. The investigation also revealed that the co-conspirator has apparent connections to Hizballah. Further investigation revealed that, in a separate communication, Thompson also provided information to her co-conspirator identifying another human asset and the information the asset had provided to the United States, as well as providing information regarding the techniques the human assets were using to gather information on behalf of the United States.
In today’s Criminal Complaint, Thompson was charged with Delivering Defense Information to Aid a Foreign Government in violation of 18 U.S.C. § 794(a) and conspiring to do so in violation of 18 U.S.C. § 794(c).
Thompson is scheduled to make her initial appearance before United States Magistrate Judge Robin M. Meriweather later this afternoon. A Criminal Complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty. If convicted, Thompson faces a maximum sentence of life in prison for violating § 794. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only. If convicted of any offense, the sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Trial Attorneys Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section, Jennifer Levy of the Counterterrorism Section, and Assistant United States Attorney for the District of Columbia John Cummings are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
DeForest Man Sentenced to 18 Years for Receiving Child PornographyRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Michael Hinze, 43, DeForest, Wisconsin, was sentenced today by U.S. District Judge William Conley to 18 years in federal prison for receiving child pornography. Hinze faced a minimum of 15 years in prison for this offense because he had a prior conviction for sexual assault of a child. This term of imprisonment will be followed by 25 years of supervised release. Hinze pleaded guilty to this offense on December 16, 2019.
In the fall of 2018, Hinze began communicating on Kik with a man who was sexually assaulting a child in his care. In September, that person sent Hinze a sexually explicit image of the child.
In sentencing Hinze above the advisory guidelines and statutory minimum, Judge Conley expressed concern that Hinze’s predatory nature made him a danger to children. Judge Conley was also concerned that the defendant seemed to be living a double life in that he was portraying himself to the public as an upstanding person while grooming and attempting to gain access to children.
The charge against Hinze was the result of an investigation conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Wisconsin Department of Justice Division of Criminal Investigation – Internet Crimes Against Children Task Force, and the DeForest Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
Dallas Drug Dealer of Murdering 19-Year-Old Sentenced to Life in PrisonRead the Press Release
A local drug dealer convicted of killing a Dallas teenager was sentenced to life in federal prison Tuesday evening following an investigation by the FBI’s Dallas Violent Gangs Safe Streets Task Force, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In November, following a four-day trial, a federal jury found Freddie Gilbert, 36, guilty of being a felon in possession of a firearm, possession with intent to distribute a controlled substance, discharging a firearm during a drug trafficking crime, and murder resulting from the use of a firearm in during a drug trafficking crime.
“Far too often, drug trafficking spurs horrific acts of violence,” said U.S. Attorney Nealy Cox. “In this case, a known cocaine dealer legally barred from possessing a weapon gunned down an innocent 19-year-old, then shoved her in the trunk like a piece of trash. He will spend the rest of his life behind bars.”
"Today's sentence should send a message to other violent drug dealers," said FBI Dallas Special Agent in Charge Matthew J. DeSarno. "The FBI will work with our law enforcement partners to protect the community through aggressive investigation and prosecution of violent offenders and drug traffickers.
According to evidence presented at trial, Mr. Gilbert, an avowed cocaine dealer, shot and killed 19-year-old Jacquisha Isaac on Oct. 29, 2017.
Forensic evidence showed that Mr. Gilbert shot Ms. Isaac through the head while she was sitting in the passenger seat of his car. He likely fired the fatal shot through the window, while standing outside the vehicle, then stashed her body in the trunk and took off, prosecutors said. Hours later, Mr. Gilbert was apprehended driving more than 110 mph down I-20.
Investigators identified Ms. Isaac’s blood inside the car, as well as on the clothing Mr. Gilbert was wearing when he was apprehended and on the revolver he used to kill the young girl. They also discovered a bullet he had purchased the day before covered in Ms. Isaac’s blood on the floorboard, gun residue on Mr. Gilbert’s hands, and his palm print on the trunk of the car where he’d stashed her body.
The Federal Bureau of Investigation’s Dallas Field Office, the Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms & Explosives, Drug Enforcement Administration, and Kaufman County Sheriff’s Office investigated the case. Assistant U.S. Attorneys P.J. Meitl and Tiffany Eggers prosecuted the case. U.S. District Judge Jane Boyle handed down the sentence.
Columbia County Man Pleads Guilty to Possession of Unregistered SilencersRead the Press Release
ALBANY, NEW YORK – Thomas E. Ozga, age 31, of East Nassau, New York, pled guilty on Monday to possessing 10 homemade, unregistered silencers.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
On May 3, 2019, law enforcement officers searched Ozga’s home in East Nassau, and found 10 homemade silencers. As part of his plea, Ozga admitted that the silencers were his, he knew they were intended to diminish the sound of portable firearms, and he did not register any of the silencers with the National Firearms Registration and Transfer Record, as is required under the law.
Ozga will be sentenced on July 2 by United States District Judge Mae A. D’Agostino. Ozga faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI, and is being prosecuted by Assistant U.S. Attorney Emily C. Powers.
Central Idaho Drug Conspiracy Charged in Federal CourtRead the Press Release
COEUR D'ALENE - Ryan James Cook, 35, and Richard Gordon Bashaw, 49, both of Grangeville, Idaho, and Justina Maemarie Foster, 39, of Lewiston, Idaho, were arrested on February 27, 2020, on federal gun and drug charges, U.S. Attorney Bart M. Davis announced. The charges stem from a February 19, 2020, eight-count indictment filed in U.S. District Court by a federal grand jury sitting in Coeur d’Alene.
The indictment alleges that between May 24, 2019, and January 21, 2020, Cook, Bashaw, and Foster conspired to distribute methamphetamine. The indictment identifies five separate instances of drug distribution and alleges that recently, on January 21, 2020, Cook possessed over 50 grams of methamphetamine with intent to distribute it. Cook is also charged with felon in possession of a firearm.
Federal methamphetamine distribution charges are generally punishable by up to twenty years in prison, a fine up to $1 million, and at least three years of supervised release. Defendants charged with distributing more than five grams of pure methamphetamine face a minimum term of five years and up to forty years in prison, a fine up to $5 million, and a minimum of four years supervised release. Defendants charged with distributing more than fifty grams of pure methamphetamine face a minimum term of ten years and up to life in prison, a fine up to $10 million, and a minimum of five years supervised release.
The charge of felon in possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Cook, Bashaw, and Foster were arraigned on February 28, 2020, in Coeur d’Alene. Trial on the matter has been set for April 6, 2020, at the federal courthouse in Coeur d’Alene. All three defendants will remain in custody pending trial.
This case was investigated by the Hells Canyon Narcotics Working Group, composed of investigators with Federal Bureau of Investigation, Idaho State Police, Lewiston Police Department, Nez Perce Tribal Police, Grangeville Police Department, and Idaho County Sheriff’s Office. The United States Forest Service and Quad Cities Drug Task Force also assisted in the investigation.
This indictment was the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Buffalo Man Pleads Guilty to Gun ChargeRead 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 Lee, 27, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to possession of firearms in furtherance of drug trafficking crimes. The charge carries a mandatory minimum penalty of five years in prison, a maximum of life in prison, and a fine of $250,000.
Assistant U.S. Attorney Misha A. Coulson, who is handling the case, stated that in March 2019, the defendant sold and distributed fentanyl, cocaine and crack cocaine to others in the Buffalo area. During this time, Lee possessed various firearms in furtherance of his drug trafficking in order to protect himself, his drugs, and his drug proceeds.
On March 13, 2019, investigators executed a search warrant at the defendant’s Oakmont Avenue residence. During the search, they recovered two firearms, one stolen; ammunition; small bags of suspected crack cocaine and cocaine; a bag of suspected fentanyl; $546.00 in cash; and three digital scales.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for June 8, 2020, at 1:00 p.m. before Judge Skretny.
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Brownsville Felon Charged with Illegal Manufacturing and Possession of Explosives, FirearmsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging KENNETH RAY MILLER, 58, with illegal manufacturing, dealing, transporting, and possession of explosives and illegal possession of firearms. MILLER made his initial appearance earlier today before Magistrate Judge Hildy Bowbeer in U.S. District Court in St. Paul, Minnesota.
According to the allegations in the indictment, from 2013 through June 25, 2019, MILLER knowingly engaged in the business of importing, manufacturing, dealing, and transporting explosive materials, including smoke generating devices containing electric igniters (also known as electric matches) and a chlorate explosive mixture. MILLER was also in possession of three firearms, including a Smith & Wesson Model 19-6 revolver, a Winchester Model 1200, 12-gauge shotgun, and a Norinco SKS Sporter rifle. Because MILLER has prior felony convictions, he is prohibited from possessing explosives or firearms.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Houston County Sheriff’s Office, the St. Paul Police Department, the U.S. Environmental Protection Agency, the Minnesota Department of Natural Resources, and the Minnesota Department of Public Safety (State Fire Marshal).
Assistant U.S. Attorney Emily A. Polachek is prosecuting the case.
Defendant Information:
KENNETH RAY MILLER, 58
Brownsville, Minn.
Charges:
- Manufacturing and dealing explosive materials, 1 count
- Transporting explosive materials, 1 count
- Felon in possession of explosives, 1 count
- Felon in possession of firearms, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Berkeley County woman admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jazzlyn Rae Molloy, of Martinsburg, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Molloy, age 23, pled guilty to one count of “Possession with Intent to Distribute Cocaine.” Molly admitted to having more than 500 grams of cocaine in April 2018 in Berkeley County in September 2018.
Molloy faces at least five years and up to 40 years incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Berkeley County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – David Nathan Huntsberry, of Martinsburg, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Huntsberry, age 40, pled guilty to one count of “Distribution of Fentanyl and Heroin within 1,000 Feet of a Protected Location.” Huntsberry admitted to selling heroin and fentanyl near Bedington Elementary School in Berkeley County in September 2018.
Huntsberry faces at least one and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Beaverton Man Pleads Guilty to Distributing Child PornographyRead the Press Release
PORTLAND, Ore.—John James Shore, IV, 55, of Beaverton, Oregon, pleaded guilty today to one count of distributing child pornography.
According to court documents, the government’s investigation revealed that Shore used BitTorrent, a peer-to-peer file sharing program, to acquire and distribute child pornography. The program allowed others to freely download Shore’s child pornography from his computer. Investigators from the Benton County Sheriff’s Office identified the Internet Protocol (IP) address for Shore’s home as a source of child pornography and downloaded 350 gigabytes of data from the address between February and July 2018.
In October 2018, FBI agents and task force officers executed a search warrant on Shore’s Beaverton home and seized a personal computer. During an interview shortly after the search, Shore admitted to downloading and watching child pornography.
Shore faces a maximum sentence of 20 years in prison, a $250,000 fine and a life term of supervised release. He will be sentenced on June 8, 2020 before U.S. District Court Judge Karin J. Immergut.
The U.S. Attorney’s Office has recommended that Shore pay restitution in full to his victims as determined and ordered by the court at sentencing. Shore has agreed to forfeit the personal computer used to facilitate his crime.
This case was investigated by the FBI with assistance from the Benton County Sheriff’s Office and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember these materials depict actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children’s website at: www.missingkids.org.
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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Baltimore Man Pleads Guilty to Federal Charges for Distributing Fentanyl, Heroin, and Fentanyl Analogues and for Illegal Possession of a Stolen FirearmRead the Press Release
Baltimore, Maryland – Brian Lockett, age 48, of Baltimore, Maryland, pleaded guilty today to the federal charges of possession with intent to distribute 100 grams or more of an analogue of fentanyl, 40 grams or more of fentanyl, and 100 grams of more of heroin, and to possession of a stolen firearm. Fentanyl analogues are chemical compounds designed to have effects similar to fentanyl and can be just as deadly. Lockett was charged in federal court as part of a federal-state initiative announced in December 2018 to combat the fentanyl crisis in Maryland.
Under this new initiative, titled the “Synthetic Opioid Surge,” or “SOS” for short, every arrest involving distribution of fentanyl made by law enforcement in Baltimore is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the Drug Enforcement Administration, and the U.S. Attorney’s Office to determine whether the case will be handled in the state or federal system. The U.S. Attorney’s Office will prosecute more cases involving fentanyl as a result of this new program. The use of federal resources and statutes, which carry significant terms of imprisonment, is necessary to prosecute those individuals who pose the greatest threat to public safety in distributing lethal doses of fentanyl.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Commissioner Michael Harrison of the Baltimore Police Department; and State’s Attorney for Baltimore City Marilyn Mosby.
“Just 2 milligrams of fentanyl-which is 50-100 times stronger than morphine-can kill you,” said U.S. Attorney Robert K. Hur. “We are working with our law enforcement partners to arrest and prosecute those who peddle deadly fentanyl in our neighborhoods. We must do all we can to reduce the supply of fentanyl and related substances that are causing so many tragic overdoses.”
According to his guilty plea, on May 24, 2018, law enforcement executed a search warrant at Lockett’s residence in the 1500 block of East Preston Street. Some of the agents knocked on the front door to announce their entry to execute the warrant. As they did so, Lockett and another individual were caught going out the rear door of the home in an attempt to get away.
From Lockett’s basement bedroom, law enforcement recovered approximately 1,644 gelcaps, which laboratory analysis found contained acetylfentanyl, fentanyl, or heroin, as well as smaller quantities of small ziplocks containing suspected cocaine. From under the mattress agents recovered a 9mm handgun and a magazine for that weapon, loaded with 15 9mm cartridges. Also in the basement were bottles marked quinine and several bags of white and brown powdered substances, believed to be drugs and drug cutting agents. One of the bags was found to contain approximately 182.52 grams of a mixture of acetylfentanyl, fentanyl, and heroin. Agents also recovered cash, a cellular phone, and other supplies used in the packaging for drugs for street-level sale. The gun recovered from Lockett’s bedroom was found to be stolen.
Lockett and the government have agreed that, if the Court accepts the plea agreement, Lockett will be sentenced to 12 years in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for May 28, 2020 at 10:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Jeffrey M. Hann, a cross-designated Baltimore City Assistant State’s Attorney, who is prosecuting the case.
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Armed Drug Trafficker Convicted on Federal Murder, Gun, and Drug ChargesRead the Press Release
Baltimore, Maryland – A federal jury convicted Sydni Frazier, a/k/a Sid, Junior Boss, and Perry, age 26, of Baltimore, Maryland late yesterday on a federal charge of conspiracy to distribute more than 100 grams of heroin, possession of a firearm in furtherance of a drug trafficking crime resulting in death, possession with intent to distribute heroin and fentanyl, and possession of firearms by a felon. Frazier went to trial last year with members and associates of the Murdaland Mafia Piru (MMP), a subset of the Bloods gang, but had a mistrial after his lawyer had a medical emergency.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
United States Attorney Robert K. Hur stated, “We are committed to working with our law enforcement partners to get guns out of the hands of drug dealers and off of our streets, in order to reduce violent crime in our neighborhoods. If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to the evidence presented at Frazier’s six-day trial, between at least 2014 and 2017, Frazier conspired with others, including members and associates of the MMP gang, to distribute narcotics. For many years, MMP controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County, including Forest Park, Windsor Mill, Gwynn Oak, Howard Park, and Woodlawn. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from Western Maryland and neighboring states.
The evidence presented at trial established that on August 10, 2016, Frazier and his co-conspirators kidnapped, robbed, and murdered Ricardo Johnson in order to enrich themselves and their drug trafficking conspiracy. The victim was abducted at approximately 2:30 am as he was returning home to his apartment in the 1100 block of West Lanvale Street in Baltimore. Less than four hours later, the victim’s body was discovered in the back of a stolen minivan parked next to the light rail tracks in the 2200 block of Kloman Street. Johnson had been bound by the wrists and ankles, blindfolded, and shot over twenty times. There was partially burned flammable material sticking out of the gas tank of the van, indicating that the killers had attempted to set the van on fire before departing the scene.
Less than twelve hours after Johnson’s body was found, members of the Baltimore Police Department (BPD) attempted to stop Frazier for riding an illegal dirt bike in the 2100 block of Tucker Lane. Frazier fled and was able to get away, but in the process of fleeing, he abandoned the dirt bike as well as a backpack and gloves he had been wearing. The backpack contained two cell phones belonging to Frazier and two loaded 9mm caliber handguns. Both guns were a ballistic match to the 9mm caliber casings recovered from the murder scene. In addition, the BPD DNA and Serology laboratory determined that Frazier’s DNA profile matched DNA from the insides of the gloves, and the victim’s DNA profile matched DNA from the outsides of the gloves. Frazier illegally possessed the two loaded 9mm firearms, as he was prohibited from possessing firearms or ammunition due to previous felony convictions.
Frazier faces a maximum sentence of life in prison for possession of a firearm in furtherance of drug trafficking resulting in death; a maximum of 40 years in federal prison for conspiracy to distribute 100 grams or more of heroin; a maximum of 20 years in federal prison for possession with intent to distribute heroin and fentanyl; and a maximum of 10 years in federal prison for possession of firearms by a felon. U.S. District Judge Catherine C. Blake has scheduled sentencing for May 29, 2020, at 9:30 a.m.
On February 20, 2020, co-defendant Corloyd Anderson, a/k/a Bo, age 37, of Baltimore, was sentenced to 22 years in federal prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise related to his participation in the gang activities of the MMP gang. Anderson was convicted on April 30, 2019, after a six-week trial. The evidence showed that Anderson supplied large volumes of heroin to members of MMP for distribution in MMP’s territory in the area of Windsor Mill Road and Forest Park Avenue. There was also evidence presented that Anderson disposed of a murder weapon for MMP Boss Dontray Johnson, a/k/a “Bino,” and he illegally possessed a loaded handgun after having been convicted of at least three prior felonies.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur praised the ATF, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Hur thanked Assistant United States Attorneys Christina Hoffman, Lauren E. Perry, and Christopher M. Rigali, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Another Federal Inmate Pleads Guilty to Conspiring to Launder Drug Trafficking Proceeds while IncarceratedRead the Press Release
PITTSBURGH – Christopher Threet pleaded guilty to conspiring to launder drug trafficking proceeds between 2017 and 2019, United States Attorney Scott W. Brady announced today.
Threet, age 38, pleaded guilty before United States District Judge J. Nicholas Ranjan. Judge Ranjan scheduled sentencing to occur on July 16, 2020, at 10:00 a.m. Threet was serving a prior federal prison sentence at Otisville, New York, and Milan, MI, when he committed the crime to which he pled guilty.
The law provides for a maximum sentence of up to 20 years in prison and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Alabama Man Sentenced to 10 Years for Child ExploitationRead the Press Release
KANSAS CITY, Mo. – A Madison, Alabama, man was sentenced in federal court today for enticing a 16-year-old Kansas City, Missouri, victim into engaging in illegal sexual activity.
James Reece Vance, 46, was sentenced by U.S. Chief District Judge Beth Phillips to 10 years in federal prison without parole. The court also sentenced Vance to 15 years of supervised release following incarceration. Vance will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
Vance, who pleaded guilty on Oct. 16, 2019, met the child victim through the Game of War application on her cell phone. They also communicated through email and by phone, and met on two separate occasions when Vance drove from Alabama to Kansas City in April 2017. Vance gave her a diamond ring and promised to marry her when she turned 18.
When the child victim’s father discovered the email communication between her and Vance, he reported it to law enforcement.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
3 March 2020
Westfield Woman Pleads Guilty to Stealing Thousands of Dollars from Health Care AgencyRead 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 Alicia Raynor, 42, of Westfield, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to wire fraud and filing a false tax return. The charges carry a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that the defendant was hired as a business manager for Compassion at Home, Inc. Her duties included, among other things, managing company finances and payroll. At various times during the company’s operation, payroll and other financial payments were made from different company bank accounts.
While working as a business manager for the company, Raynor opened an account with Intuit, Inc., a payroll and payment processing service located outside the state of New York. The Intuit account enabled Compassion at Home, by way of wire transfers, to direct deposit payroll into employees’ bank accounts and otherwise make other direct deposit payments related to Compassion at Home’s business expenses. The payments were made using an accounting software package known as Quickbooks, which linked to Compassion at Home’s bank account.
While employed with Compassion at Home, the defendant diverted money from Compassion at Home’s bank accounts to accounts that she controlled. In order to avoid detection, Raynor disguised Quickbook entries to make it appear that the payments were to Bank of America, Capital One, or Compassion at Home employees.
Between August 2015 and June 2016, the defendant fraudulently diverted approximately $238,871.58 from the company’s bank account. This amount includes funds to which she was not entitled for compensation or reimbursement for expenses. For example, on May 19, 2016, Raynor caused a wire transfer in the amount of $2,978.19 from Intuit’s account to a joint checking account with her husband, with an entry in Quickbooks indicating that the payment was to Bank of America.
In addition, for the tax years 2013 through 2016, the defendant received $1,214,444 in payments from Compassion at Home that she did not report as income on her tax returns for those years. The Internal Revenue Service estimates tax owed for these tax years is $370,005. On May 15, 2017, the defendant caused the filing of a U.S. Individual Income Tax Return, Form 1040, for the 2015 tax year, falsely claiming a total income of $52,290, and income from Compassion at Home in the total amount of $29,615.14.
The plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Gary Loeffert, the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent in Charge, New York Field Office, and the Westfield Police Department, under the direction of Chief Rob Genther.
Sentencing is scheduled for July 8, 2020, at 2:00 p.m. before Judge Sinatra.
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Warren County Man Sentenced to 6 Years Imprisonment on Child Pornography ChargesRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that yesterday, Chief United States District Judge Terrence W. Boyle, sentenced MICHAEL WYATT COLLIUS, 23, of Norlina, NC to 72 months’ imprisonment, followed by a five-year term of supervised release. COLLIUS was also ordered to pay more than $68,000 in restitution to known child pornography victims identified through the investigation. COLLIUS pled guilty pursuant to a plea agreement on November 13, 2019 to one count of receipt of child pornography.
In September 2016, the Federal Bureau of Investigation (FBI) in Raleigh, North Carolina, assisted the Spanish National Police Cyber Child Pornography Group II, Technology Investigation Unit, with an investigation into Dropbox users sharing child pornography. Investigators were able to determine that one of the accounts responsible for sharing child pornography belonged to COLLIUS.
Following additional investigation, a search warrant was obtained for COLLIUS’ residence. On May 3, 2018, investigators with the FBI and Warren County Sheriff’s Office executed the warrant and seized COLLIUS’ phone. A later forensic review recovered over 800 images and over 200 videos containing child pornography. COLLIUS agreed to speak with investigators at the time of the search and admitted to receiving, sharing and possessing child pornography.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
The Federal Bureau of Investigation (FBI) in Raleigh, North Carolina, conducted the investigation of this case with assistance from the Spanish National Police Cyber Child Pornography Group II, Technology Investigation Unit and the Warren County Sheriff’s Office. Assistant United States Attorney Bryan M. Stephany represented the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
United States Intervenes in False Claims Act Lawsuit against Drug Maker Mallinckrodt Alleging Company Knowingly Avoided Paying Medicaid Rebates Owed Due to Significant Price IncreasesRead the Press Release
The United States filed a complaint under the False Claims Act against Mallinckrodt ARD LLC, formerly known as Mallinckrodt ARD Inc. and previously Questcor Pharmaceuticals Inc. (collectively, Mallinckrodt), in the U.S. District Court for the District of Massachusetts, the Department of Justice announced today. The government alleges that Mallinckrodt has violated the False Claims Act by knowingly underpaying Medicaid rebates due as a result of large increases in the price of its drug H.P. Acthar Gel (Acthar).
“The Medicaid Rebate Statute provides an important check on rising drug prices,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department will not hesitate to hold accountable drug companies that attempt to skirt this important protection at the expense of the Medicaid program, which helps ensure that some of our most vulnerable citizens are able to receive medical care.”
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers must pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The mandatory rebate includes an inflationary component, which is designed to insulate the Medicaid program from drug price increases that outpace the rate of inflation. In particular, for drugs sold to Medicaid, a manufacturer must pay a rebate that is based on the drug’s price since 1990 or when it was first marketed, whichever date is later.
The government alleges that although Acthar was first marketed long before 1990, Mallinckrodt and its predecessor, Questcor, began calculating and paying rebates as if Acthar was a new drug first marketed in 2013, based on the Food and Drug Administration’s approval of a new indication for Acthar’s use in 2010. Given that Questcor had raised Acthar’s price by more than $20,000 per unit prior to 2013, the government alleges that Questcor and later Mallinckrodt avoided paying inflationary rebates on any of those pre-2013 price increases, and has thus knowingly underpaid hundreds of millions of dollars at the expense of American taxpayers.
In failing to pay these rebates, the government alleges that Mallinckrodt knowingly avoided its obligations under the Medicaid Drug Rebate Statute despite repeated government warnings. The government alleges, for example, that the Centers for Medicare and Medicaid Services (CMS), which administers the Medicaid program at the federal level, warned Mallinckrodt on multiple occasions that it could not ignore Acthar’s pre-2013 price increases when paying Medicaid rebates for the drug.
“Mallinckrodt raised the price of its drug to an extraordinary level and then allegedly cheated the Medicaid program out of hundreds of millions of dollars,” said U.S. Attorney Andrew Lelling for the District of Massachusetts. “The government will always target this kind of exploitation of a program designed to provide health care to vulnerable members of our society.”
“The Medicaid Drug Rebate Program requires drug manufacturers to pay additional rebate amounts if they increase prices beyond a certain level,” said Special Agent in Charge Phillip M Coyne, Office of the Inspector General for the U.S Department of Health and Human Services. “We take very seriously our responsibility to safeguard taxpayers by ensuring all drug manufacturers meet their obligations under the Medicaid Drug Rebate Program, and I appreciate the continued partnership with the Massachusetts U.S Attorney's Office to protect public funds.”
The allegations that are the subject of the government’s complaint were originally alleged in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government has done in this case, which is captioned United States of America et al. ex rel. Landolt v. Mallinckrodt Pharmaceuticals Inc., No. 18-11931-PBS (D. Mass.).
The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The claims asserted by the United States 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.
United States Files False Claims Act Complaint Against Drug Maker MallinckrodtRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that it filed a complaint under the False Claims Act against Mallinckrodt ARD LLC (formerly known as Mallinckrodt ARD, Inc. and previously Questcor Pharmaceuticals, Inc.) (collectively “Mallinckrodt”). The government alleges that Mallinckrodt has violated the False Claims Act by underpaying Medicaid rebates due as a result of large increases in the price of its drug H.P. Acthar Gel (“Acthar”).
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers must pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The mandatory rebate includes an inflationary component, which is designed to insulate the Medicaid program from drug price increases that outpace the rate of inflation. For each unit sold to Medicaid, a manufacturer must pay the difference between the drug’s current price and the price the drug would have had if its price had increased at the rate of inflation since 1990 or the date when the drug was first marketed, whichever date is later.
The government alleges that, although Acthar was first marketed long before 1990, Mallinckrodt and its predecessor, Questcor, began calculating and paying rebates as if Acthar was a new drug first marketed in 2013, based on the FDA’s approval of a new indication for Acthar’s use in 2010. Given that Questcor had raised Acthar’s price by more than $20,000 per unit prior to 2013, the government alleges that Questcor, and later Mallinckrodt, avoided paying inflationary rebates on any of those pre-2013 price increases, and has thus underpaid hundreds of millions of dollars at the expense of American taxpayers.
In failing to pay these rebates, the government alleges that Mallinckrodt avoided its obligations under the Medicaid Drug Rebate Statute despite repeated government warnings. The government alleges, for example, that the Centers for Medicare and Medicaid Services (“CMS”), which administers the Medicaid program at the federal level, warned Mallinckrodt on multiple occasions that it could not ignore Acthar’s pre-2013 price increases when paying Medicaid rebates for the drug.
“Mallinckrodt raised the price of its drug to an extraordinary level and then allegedly cheated the Medicaid program out of hundreds of millions of dollars,” said Andrew Lelling, United States Attorney for the District of Massachusetts. “The government will always target this kind of exploitation of a program designed to provide health care to vulnerable members of our society.”
“The Medicaid Rebate Statute provides an important check on rising drug prices,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department will not hesitate to hold accountable drug companies that attempt to skirt this important protection at the expense of the Medicaid program, which helps ensure that some of our most vulnerable citizens are able to receive medical care.”
“The Medicaid Drug Rebate Program requires drug manufacturers to pay additional rebate amounts if they increase prices beyond a certain level,” said Special Agent in Charge Phillip M Coyne, Office of the Inspector General for the U.S Department of Health and Human Services. “We take very seriously our responsibility to safeguard taxpayers by ensuring all drug manufacturers meet their obligations under the Medicaid Drug Rebate Program, and I appreciate the continued partnership with the Massachusetts U.S Attorney's Office to protect public funds.”
The allegations that are the subject of the government’s complaint were originally alleged in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government has done in this case, which is captioned United States of America et al. ex rel. Landolt v. Mallinckrodt Pharmaceuticals Inc., No. 18-11931-PBS (D. Mass.).
U.S. Attorney Lelling, Assistant Attorney General Joseph H. Hunt of the Department of Justice’s Civil Division, and HHS-OIG SAC Phillip Coyne made the announcement today. The matter is being handled by Assistant U.S. Attorneys Evan Panich and Gregg Shapiro of Lelling’s Affirmative Civil Enforcement Unit and Trial Attorneys Augustine Ripa and Michael Hoffman of the Department of Justice’s Civil Division.
Under DOJ Call to Action, EDVA a National Leader in Elder JusticeRead the Press Release
ALEXANDRIA, Va. – United States Attorney G. Zachary Terwilliger joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today in announcing the largest coordinated sweep of elder fraud cases in history.
This year, prosecutors across the Department of Justice 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 $1 billion.
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Barr. “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.”
“The Eastern District of Virginia is on the frontlines of combatting elder abuse and financial fraud through both criminal prosecutions and community outreach,” said Terwilliger. “With federal, state, local, and community partners, we are educating our elders to empower them to avoid the devastating financial and emotional harms that flow from these pernicious crimes. For those who have been exploited, we continue to work tirelessly to ensure that justice is done.”
This interactive map provides information on the elder fraud cases highlighted by today’s sweep announcement.
EDVA ranked fourth nationally in the number of criminal cases charged during the sweep, while also participating in important community outreach events at Alfred Street Baptist Church in Alexandria, and at St. Martin’s Episcopal Church in Williamsburg, as well as supporting local task forces in Fairfax County, Hampton Roads, and Richmond.
Here in EDVA, Elder Justice efforts are led by Assistant U.S. Attorney Kaitlin G. Cooke, who serves as the District’s Elder Justice Coordinator.
Below are case summaries of several noteworthy elder abuse cases recently prosecuted in EDVA. For more information on a particular case, please click the link for the full press release on our website.
- U.S. v. Anikkhan Yusufkhan Pathan - Pathan served as a money mule for Indian call centers that affected hundreds of elderly Americans. These call centers contacted victims by phone and, through various schemes, induced them to send money by wire transfers to various aliases. The schemes include variants of loan fraud, through which conspirators promised new loans and/or loan consolidation. Once victims provided their bank information, conspirators deposited worthless checks and directed victims to immediately withdraw the credited funds and wire them to a separate account. Conspirators also contacted victims through mass mailings and, posing as the victims' true mortgage lenders, directed victims to begin making their mortgage payments to accounts controlled by conspirators. Finally, conspirators contacted victims by phone and, posing as employees of Microsoft, advised victims that their computers contained fatal viruses that would cause irreparable harm if victims did not immediately remit payment for repair. Although the conspiracy affected hundreds of victims, Pathan is responsible for losses caused to approximately 10 victims totaling approximately $150,000. Pathan pleaded guilty in February, and is scheduled to be sentenced on May 29.
- U.S. v. Gregory J. Ziglar – Ziglar ran an extensive home improvement loan scheme from approximately 2014 through 2018 through which he victimized approximately 24 victims/households, with the vast majority of victims being in their 60s and 70s. Ziglar claimed he could facilitate obtaining home improvement loans for promised renovations and, after fraudulently obtaining loan proceeds, diverted portions of the funds and failed to complete the promised work. Ziglar fraudulently made use of the identities of various contractors in obtaining the loans, which resulted in the loss of over $521,000.
- United States v. John Michael Gatchell – Gatchell pleaded guilty on April 18 to exploiting an elderly man’s diminished mental capacity to defraud him of nearly $157,000. Gatchell facilitated a marriage between the elderly man and a woman with whom Gatchell had a long-term relationship in order to gain access to the elderly man’s money and property. Gatchell induced the elderly man to make a down payment on a Jaguar that Gatchell and a family member drove for about 10 months before it was repossessed by the lender when the loan went into default. Gatchell also induced the elderly man to obtain two mortgage loans and then diverted most of the proceeds to the benefit of himself and others. He subsequently induced the elderly man to sell the property that secured the loans and again diverted most of the proceeds to himself and others. Gatchell used these fraudulently diverted monies to purchase concert series tickets, pay delinquent bills, and make a security deposit and advance rent payments for a house he leased, among other things. Gatchell was sentenced to six years in prison in September 2019.
- United States v. Nena Kerny Kochuga - Kochuga executed a Jamaican lottery scheme that targeted elderly victims, who she and conspirators would contact by phone. Kochuga told victims that they had won the lottery and were required to pay purported taxes and fees to claim the winnings. She directed victims to mail and wire money to her residential and post office box addresses in Virginia. Kochuga then sent money to conspirators in Jamaica and Ghana via Western Union wire transfers, keeping a portion for herself. Through this conduct, Kochuga and her conspirators defrauded numerous victims of at least $50,000. According to local media coverage, Kochuga has targeted elderly victims with similar lottery scams for most of the past decade. In September 2019, Kochuga was sentenced to over two years in prison and ordered to pay over $64,000 in restitution to her victims.
- U.S. v. Sandra Payne - Payne pleaded guilty to aggravated identity theft based on her theft of over $22,000 from an elderly victim. Payne was employed by the victim to provide home health care to the victim’s spouse. Over a five-month period, Payne used the victim’s credit and debit cards to make unauthorized purchases of personal goods at various retailers. Payne was sentenced in June 2019 two years in prison.
- U.S. v. Alberto Cortes Gomez - From at least April 2011 through June 2018, Cortes was the leader of a conspiracy that stole financial information from at least 360 victims and caused losses of nearly $2 million. Cortes and his co-conspirators would steal credit cards and other identifying information from customers at retail stores across the country, then use that information to purchase electronics and other items that were then shipped for subsequent resale. Cortes would travel in rental vehicles to locations with high volumes of retail activity, often in interstate corridors such as I-95 through North Carolina and Virginia. The conspirators would then distract shoppers, mostly elderly women, steal their wallets, and then alter means of identification to then pose as those shoppers when purchasing electronics and other expensive items. In January, Cortes was sentenced to over seven years in prison and ordered to pay over $1.9 million in restitution to his victims.
- U.S. v. Leonard Cipolla – Cipolla was the founder, owner, and operator of Tate Street Trading, Inc. in Richmond. Between 2009 and 2019, Cipolla solicited more than $7 million in investment funds from more than 30 individuals located in Virginia, New York, and Washington, D.C. Cipolla convinced these individuals to provide him with their savings by assuring the investors that he was a highly experienced, highly successful trader in commodity futures and options. Cipolla promised his investors that he could guarantee them significant fixed rates of return on their investments, and that Cipolla’s management fee would be drawn only from the profits that Cipolla made over and above each investor’s promised rate of return. He also assured investors that Cipolla was qualified to manage tax-deferred retirement accounts, and that he would roll the investor’s existing Individual Retirement Account (IRA) into a Tate Street-managed, tax-deferred IRA. As time passed, Cipolla provided many of his investors with account statements that purported to show the investor’s principal was safely intact, and growing at the promised rate of return. In reality, Cipolla pooled his investors’ savings as soon as those individuals’ personal checks, IRA roll-overs, and wires were deposited into his bank accounts. Cipolla used only a fraction of those pooled investment funds to trade in the futures market, and he ultimately lost nearly the entire amount of investor funds that he actually invested. Cipolla further dissipated the remainder of his investors’ savings on unauthorized expenses, to include making payments to earlier investors, and paying his own personal expenses. Cipolla faces a maximum penalty of 20 years in prison when sentenced on April 29.
- U.S. v. William Onyebuchi Ogbonna - Between October 2016 and March 2019, Ogbonna allegedly participated in a conspiracy to defraud between 80 and 100 U.S. victims, the majority of whom were 60 years of age and older. To facilitate this scheme, conspirators contacted victims and falsely claimed that the victims were due a large inheritance or had won a foreign lottery. Conspirators told victims they would receive large sums in return for up-front payments of the associated taxes and fees. Conspirators also perpetrated business email compromise scams by compromising business emails and then contacting business clients and employees and requesting a transfer of funds. In all cases, conspirators directed victims to wire money to various bank accounts, including accounts opened by Ogbonna. After receiving these proceeds, Ogbonna transferred a portion of those proceeds via cashier’s checks and wires to conspirators in China and Nigeria.
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.
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.
U.S. Department of Justice to host Protecting Places of Worship Forum in BozemanRead the Press Release
BILLINGS—The U.S. Attorney’s Office is hosting a training program on Thursday, March 12, at Pilgrim Congregational United Church of Christ in Bozeman to share best practices for security at places of worship.
The Protecting Places of Worship Forum will be offered in two sessions. The first session will be from 1 p.m. to 4 p.m. and the second session will be from 6 p.m. to 8:30 p.m. Pilgrim Congregational Church is located at 2118 S. 3rd Ave., Bozeman, MT 59715.
The free interfaith meeting will provide faith-based leaders and community members an opportunity to discuss and learn how to prevent and respond to hate crimes against places of worship. Topics will include an overview of religious hate crimes, preventing and responding to active shooter situations, hate crimes statistics and symbols and securing places of worship.
Invited speakers include U.S. Attorney Kurt Alme and representatives from the FBI, Gallatin County Sheriff’s and County Attorney’s offices, Bozeman Police Department and area churches.
The U.S. Department of Justice’s Community Relations Service and the U.S. Attorney’s Office organized the program.
All faith-based community leaders and members are welcome to attend. Please RSVP by March 10 to Brendan McCarthy, Assistant U.S. Attorney, U.S. Attorney’s Office, 406-247-4656, [email protected] or Rosa Salamanca, Senior Conciliation Specialist, Community Relations Service, 303-844-2974, [email protected].
For more information on DOJ’s Community Relations Service, visit www.justice.gov/crs, on Twitter @DOJ_CRS or Facebook at facebook.com/DOJCRS/.
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U.S. Attorney’s Office for the Middle District of Pennsylvania Takes Part in Largest Coordinated Nationwide Elder Fraud SweepRead the Press Release
HARRISBURG – U.S. Attorney David J. Freed joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale in announcing the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
Law Enforcement Actions in the Middle District:
- Omoefe Okoro, age 48, a citizen of Canada, and others are alleged to have engaged in an attorney “collection scam” in Ontario, Canada, and elsewhere. In particular, Okoro and his co-conspirators are alleged to have conducted a scheme in which they contacted businesses and individuals, including elderly victims, and requested, among other things, to collect an outstanding debt. The suspects, posing as the third party, then sent a counterfeit check to the victim for deposit and requested that the victim wire funds to an account overseas, typically in Japan, South Korea, or China. Okoro is currently scheduled for trial on April 6, 2020.
- Anthony W. Redd, age 63, of Allentown, Pennsylvania, was allegedly a “Money Mule” and participated in a scheme to defraud individuals out of money by making them believe they were eligible for cash and other prizes. As part of the scheme, Redd is alleged to have caused the mailing of legitimate postal money orders from Mechanicsburg to his address in Allentown, Pennsylvania, and to have converted the known proceeds of the scheme to cash or to have sent the proceeds through Western Union or MoneyGram to Costa Rica. Redd is currently scheduled to appear in court on March 31, 2020.
“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.”
“Every day across the Middle District of Pennsylvania - and across the country - fraudsters are out to prey on our most vulnerable citizens, our seniors,” said U.S. Attorney Freed. “Whether it is a collection scam, a lottery scam, posing as a representative of the IRS or Social Security Administration or falsely calling on behalf of a grandchild, these scammers are using technology to steal massive amounts of money from citizens who have spent a lifetime building their nest egg. We are constantly on alert for these scams, and are fighting back along with our federal partners like the FBI and United States Postal Inspection Service. We urge everyone who has been victimized to make a report so that we can continue this battle.”
“Postal Inspectors have long prioritized the sinister schemes that often victimize elder Americans,” said Assistant Inspector in Charge John Walker of the Philadelphia Division. “These arrests should put an exclamation point on the fact that if you use the mail or Postal products to defraud any American, Postal Inspectors will work diligently to bring you to justice. Along with our partners in the Post Office, the Federal Bureau of Investigation the Department of Justice, and quite frankly all law enforcement, stopping the outward flow of money and victimization due to these schemes has been, and will continue to be, a priority for the Postal Inspection Service.”
“Elder fraud and abuse are deplorable acts,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI's Philadelphia Division. “Specifically going after older folks because you consider them easy targets isn’t just cowardly, it’s cruel. If you're being victimized or know of someone who is, please reach out to the FBI. We’ll never stop working to protect the elderly from criminals who would take advantage of them.”
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.
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Two Individuals Indicted and Arrested for Conspiracy to Commit Wire Fraud and Misuse of Social Security NumberRead the Press Release
SAN JUAN, P.R. – On February 27, 2020, a federal grand jury in the District of Puerto Rico returned an indictment against Gilberto J. Meléndez-Colón and Ángel M. Pagán-Vélez, charging them with conspiracy to commit wire fraud, and misuse of Social Security Number. Meléndez-Colón is also facing 11 counts of money laundering, announced United States Attorney W. Stephen Muldrow. The Social Security Administration, Office of the Inspector General (“SSA-OIG”) and Homeland Security Investigations (“HSI”) are in charge of the investigation.
The indictment charges that from on or about January 4, 2012, and continuing through on or about July 24, 2017, the defendants and other co-conspirators did knowingly and willfully conspire and agree to devise a scheme and artifice to defraud Unique Builders, Inc., a family business engaged in short and long-term construction and improvement projects. For purposes of executing the scheme and artifice to defraud, the defendants and co-conspirators caused to be transmitted by means of wire communications in interstate commerce certain signals and sounds contrary to Title 18, United States Code, Section 1343.
During the time covered by the indictment, Meléndez-Colón was the Accounting Officer in charge of Unique Builders’ payroll. The company’s payroll accounting system is operated, in part, by the Web Cash Manager of Banco Popular of Puerto Rico (hereinafter “Web Cash Manager Program”). The Web Cash Manager Program is an accounting system used by Unique Builders in part to make direct deposits to employees. Pagán-Vélez was a friend of Meléndez-Colón, and he never worked at Unique Builders.
The indictment alleges that Meléndez-Colón created profiles or accounts for two fictitious employees in the Web Cash Manager Program. As part of the fraud scheme, Pagán-Vélez disclosed his social security number to Meléndez-Colón. Meléndez-Colón would use Pagán-Vélez’ name and social security number to create a fictitious employee profile in Unique Builders’ Web Cash Manager Program. Meléndez-Colón would also use the name and social security number assigned to J.A.A. to create another fictitious employee profile in Unique Builders’ Web Cash Manager Program. In total, Meléndez-Colón created two fictitious employee profiles in Unique Builders’ Web Cash Program, using the identities of Pagán-Vélez and J.A.A.
While creating the fictitious employee profile for Pagán-Vélez in the Web Cash Manager Program, Meléndez-Colón listed his own Banco Popular of Puerto Rico account number to receive direct deposits. As part of the fictitious employee profile for J.A.A. in the Web Cash Manager Program, Meléndez-Colón listed his own Cooperativa San José account number to receive direct deposits.
The indictment also alleges that Meléndez-Colón altered Unique Builders’ payroll information by, among others, fictitiously increasing the hours worked by regular employees. Meléndez-Colón would then submit the altered and fraudulent payroll information to management for approval. Once Meléndez-Colón got approval to process the payroll, he would divert monies through the Web Cash Manager Program to the bank accounts assigned to the two fictitious employees. From January 2012 through July 2017, Meléndez-Colón diverted approximately $1,223,654.21 as part of the unlawful conspiracy.
As part of the conspiracy, Unique Builders would generate Forms W-2, Withholding Statements for the payments made to the fictitious employees. For the years 2012 through 2016, Pagán-Vélez would use his social security number to file Income Tax Returns, attaching the W-2’s, Withholding Statements, generated as part of the fraud scheme. Defendant Meléndez-Colón is also facing one count of aggravated identity theft and a forfeiture allegation of $1,223,654.21.
The case is being prosecuted by Special Assistant United States Attorney for the Social Security Administration Vanessa D. Bonano-Rodríguez. If convicted, the defendants could face a maximum penalty of 20 years of imprisonment and a fine of not more than $250,000.00 for the conspiracy, and up to 5 years for the misuse of Social Security number. In addition to those possible sentences, Meléndez-Colón is facing up to 20 years of imprisonment and a fine of not more than $500,000.00 or twice the value of the property involved in the transactions, whichever is greater, for the money laundering counts, and two mandatory consecutive years of imprisonment for the aggravated identity theft count.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Twin Falls Man Sentenced to 25 Years in Federal Prison for Drug and Gun CrimesRead the Press Release
BOISE – David Paul Roberts, 60, of Twin Falls, was sentenced to 300 months in federal prison for possession with the intent to distribute methamphetamine and a concurrent sentence of 120 months in prison for the theft of firearms, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also ordered Roberts to serve five years of supervised release following his prison sentence. Roberts pleaded guilty to both charges on October 1, 2019.
According to court records, Roberts and others conspired to distribute over 15 kilograms of methamphetamine into the Twin Falls area. He also recruited others to help him steal over 100 firearms, ammunition, and other property from a ranch in Gooding, Idaho. Investigators conducted an extensive investigation of Roberts and his co-conspirators, including using a wiretap to intercept phone calls and text messages between Roberts and others. On December 10, 2018, investigators arrested Roberts as he returned to Idaho from California in possession of over 12 pounds of methamphetamine. Investigators worked hard to recover the stolen firearms. To date, however, only 20 of the guns have been recovered. Roberts has a lengthy criminal history including felony convictions for burglary, aggravated assault, and delivery of methamphetamine.
This case was the result of a long-term investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives, Idaho State Police, Twin Falls Police Department, Twin Falls County Sheriff’s Office, and Gooding County Sheriff’s Office.
This indictment was the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
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Twenty additional defendants charged with trafficking heroin, fentanyl and cocaineRead the Press Release
A federal grand jury sitting in Cleveland, Ohio, returned a superseding indictment charging twenty defendants for their roles in an international drug distribution conspiracy, which includes the illegal sales of heroin, fentanyl and cocaine.
Julian Aguirre-Aguirre, also known as “El Chocolate,” led a Drug Trafficking Organization from Mexico that supplied hundreds of kilograms of cocaine, heroin, and fentanyl, to members of the Drug Trafficking Organization in the United States. A coordinated investigation by Drug Enforcement Administration offices in Tucson, Arizona, New Orleans, Louisiana, Atlanta, Georgia, Cleveland, Ohio and Akron, Ohio was able to expose the path and process by which these dangerous drugs entered the United States, traveled across the country, and made their way to Ohio communities.
In January of 2020, Arizona residents Delmer Perpuly, Ulises Perpuly and Cesar Perpuly were charged for their roles in delivering fifteen kilograms of cocaine to Eastlake, Ohio at the direction of “El Chocolate.” The superseding indictment charges “El Chocolate” as the head of the Drug Trafficking Organization in Mexico, Delmer Perpuly, Ulises Perpuly and Cesar Perpuly for their roles as drug distributors operating out of Arizona, Herman L. Fletcher and Nelson L. Becton for their roles as drug distributors operating in Ohio, as well as fourteen others in Ohio for their roles in this drug distribution conspiracy.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including each defendant’s prior criminal record, if any, the defendants’ roles in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation was conducted by the Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol Tobacco Firearms & Explosives, Department of Homeland Security, Ohio State Highway Patrol, Summit County Drug Unit, Akron Police Department Narcotics, Lake County Narcotics Agency, and the Cleveland Heights Police Department, with operational assistance from the U.S. Marshal’s Service. This case is being prosecuted by Assistant United States Attorneys Margaret A. Sweeney and Christopher J. Joyce.
Three Defendants Plead Guilty in Federal Court to Sex Offenses Involving MinorsRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced that three different defendants appeared in federal court during the past week to plead guilty to sex offenses involving minors.
“No child should ever have to endure these acts of human depravity. These are the most despicable of crimes because they are committed against the very people we are supposed to protect and nurture - our kids,” said United States Attorney Mike Stuart. “My prosecutors work tirelessly with federal, state and local law enforcement agencies throughout the District to track down child predators and hold them accountable.”
On February 28, 2020, Joshua T. Haynes, 41, of Virginia, pled guilty to attempted sex trafficking of a minor. Haynes admitted that between October 31 and November 2, 2019, he communicated with a man who stated he could provide a 14 or 15-year-old female to Haynes. Haynes agreed to pay the man money in exchange for sexual activity with the purported minor female. On November 2, 2019, Haynes met with the man in Sam Black Church, West Virginia, and paid him the agreed upon sum in order to have sex with the minor, at which time Haynes was placed under arrest. Haynes faces at least 10 years and up to life in federal prison when he is sentenced on July 20, 2020.
Also on February 28, 2020, Matthew David Lambert, 26, of Renick, West Virginia, pled guilty to attempting to receive child pornography. Lambert admitted that from on October 31 to November 1, 2019, he communicated via a social messaging application with a minor he believed to be a 14-year-old girl he understood to be located in Lewisburg, West Virginia. Despite knowing her age, Lambert repeatedly asked her to send him sexually explicit photographs of herself. When the purported minor refused, they agreed that they would meet at a hotel in Lewisburg, West Virginia, to engage in sexual activity, and Lambert would record this sexual activity on his cell phone. On November 1, 2019, Lambert traveled to a hotel in Lewisburg in order to engage in sexual intercourse with the purported 14-year-old girl. Lambert faces at least 5 and up to 20 years in federal prison when he is sentenced on July 10, 2020.
On March 2, 2020, Joshua Kevin Laxton, 29, of Lashmeet, West Virginia, pled guilty to traveling in interstate commerce in order to engage in illicit sexual activity with a minor. Laxton admitted that on September 14, 2019, he began communicating via text messages with a minor he believed to be a 14-year-old girl located in Lewisburg, West Virginia. Despite knowing her age, Laxton discussed meeting the minor to engage in sexual intercourse. On November 1, 2019, Laxton drove through Virginia to meet the purported minor at an arranged meeting location in Lewisburg in order to engage in sexual intercourse. Laxton faces up to 30 years in federal prison when he is sentenced on July 6, 2020.
Upon release from prison, all three defendants will be required to serve a term of supervised release of at least five years and up to life. They will also be required to register as sex offenders. The investigations were all conducted by the Federal Bureau of Investigation’s West Virginia Child Exploitation and Human Trafficking Task Force, which included task force officers from the West Virginia State Police, the Kanawha County Sheriff’s Department, and the Ashland (Kentucky) Police Department, with additional assistance from the Greenbrier County Sheriff’s Department. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecutions. United States District Judge Frank W. Volk presided over the plea hearings.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Texas Man Charged with Defrauding Cisco Systems, the Neat Company, iRobot Corporation, Amazon.com, and Others Out of More Than $1.9 million in MerchandiseRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Reece A. Line, 23, of Pearland, Texas, was charged today by Information with 22 counts of mail fraud, eight counts of wire fraud, and three counts of tax evasion.
The Information alleges that the defendant perpetrated a scheme to defraud Cisco Systems Inc. (“Cisco”), the Neat Company (“Neat”), iRobot Corporation (“iRobot”), APC by Schneider Electric (“APC”), Amazon.com (“Amazon”), and other companies by engaging in a sophisticated warranty fraud scheme. The charges state that the defendant and his co-schemers obtained serial numbers to products sold or manufactured by Cisco, Neat, iRobot, and APC. They allegedly proceeded to register false domain names, obtain false email addresses, and submit false warranty claims, pretending to own products sold or manufactured by these companies that they claimed were not working. The Information alleges that the defendant provided customer service representatives with descriptions of the non-existent defects that he knew they could not solve by troubleshooting and would require replacement with new products. Cisco, Neat, iRobot, and APC then shipped the replacement products to the defendant and his co-schemers, which they promptly sold via eBay, on Amazon, or through computer resellers.
The Information further alleges that the defendant and his co-schemers defrauded Amazon by using false identities, domain names, email addresses, and mailing addresses to order products that they falsely claimed never arrived or arrived broken, thereby inducing Amazon to repeatedly send replacement products. The Information alleges that the defendant and his co-schemers then sold the products obtained in this manner via eBay.
All told, the defendant and his co-schemers successfully obtained at least $1,950,000 worth of products from the victim companies through their alleged fraud. The Information also alleges that the defendant evaded the payment of any income tax on the income he earned from his fraud for tax years 2014 through 2016 by, among other things, failing to file returns, storing his fraud proceeds in bank accounts and PayPal accounts in the names of co-schemers, storing cash at his residence, paying his personal living expenses with cash, and using false email addresses, false domain names, prepaid gift cards, and false identities to conceal his involvement in the fraud scheme.
“As alleged, the defendant engaged in a sophisticated fraud scheme that netted almost $2 million worth of products,” said U.S. Attorney McSwain. “Retail fraud, whether in brick-and-mortar stores or online, is a serious crime that must be punished and deterred. I would like to thank both the FBI and the IRS for their dedication and partnership in this matter.”
“Taxpayers are required to cooperate with the tax system by filing honest and accurate returns and paying their fair share,” said Michael Montanez, Acting Special Agent in Charge of IRS-Criminal Investigation. “The Special Agents of IRS-CI will continue to investigate and bring charges against those who intentionally violate our tax system.”
The defendant faces a maximum sentence of 825 years’ incarceration, a five-year period of supervised release, and a fine of $8,250,000.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tennessee Man Pleads Guilty to Smuggling Goods from the United States to IranRead the Press Release
CONCORD - Aiden Davidson, a/k/a Hamed Aliabadi, 32, of Tennessee, pleaded guilty on Monday in federal court to smuggling goods from the United States to Iran, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Davidson, is a citizen of Iran and a naturalized citizen and resident of the United States. Davidson was the manager/member and registered agent of a New Hampshire limited liability company, Golden Gate International, LLC (“Golden Gate”). Babazedeh Trading Co., a/k/a “Babazadeh Hydraulic Trading Group” (“Babazadeh”) was an Iranian company that operated an online resale business based in Tehran, Iran. Stare Lojistik Enerji Sanayi Ticaret (“Stare”) was a Turkish freight forwarding company with a location in Igdir, Turkey.
Between December 2016 and February 2017, Davidson and Golden Gate smuggled goods from Savannah, Georgia, to Babazadeh in Iran. The goods included motors, pumps, valves, and other items that were valued at more than $100,000. Documents related to the shipments falsely identified the Ultimate Consignee of the shipments as Stare in Turkey. In causing the unlicensed exportation of these goods, Davidson and Golden Gate willfully evaded national security controls related to transactions with Iran.
Again, between April 2017 and August 2017, Davidson and Golden Gate knowingly smuggled goods from Savannah, Georgia, to Babazadeh in Iran. The goods included displacement pumps that were valued at approximately $13,000. Documents related to these shipments falsely identified the Ultimate Consignee of the shipments as Ariyanis Group in Turkey. In causing the unlicensed exportation of these goods, Davidson and Golden Gate willfully evaded national security controls related to transactions with Iran.
The defendant is scheduled to be sentenced on June 17, 2020.
“Export controls are important legal restrictions that are intended to prevent certain items from being used to jeopardize our national security,” said U.S. Attorney Murray. “By smuggling these goods from the United States to Iran, the defendant violated federal law. In order to maintain our national security and protect the people of the United States, we will not hesitate to bring federal criminal charges against those who seek to evade the law by smuggling goods to Iran.”
“We will fully and aggressively enforce our nation’s restrictions on exports to Iran,” said Special Agent in Charge William Higgins of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office. “The controls on exports to Iran help apply maximum pressure on Iran to end its promotion of instability and terrorism worldwide. The Office of Export Enforcement will continue to work with our Law Enforcement partners to stem illicit trade that threatens U.S. national security and undermines U.S. foreign policy.”
“Homeland Security Investigations remains committed to enforcing export controls on Iran,” stated Special Agent in Charge Jason Molina of the Department of Homeland Security’s Homeland Security Investigations. “These efforts are exemplified in the investigation of Golden Gate International and Aidan Davidson’s illegal export of restricted materials. HSI will continue to work with our law enforcement partners to monitor and investigate export violations committed by Iran or her proxies.”
This matter was investigated by the Department of Commerce's Office of Export Enforcement and the Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorneys John Davis and Cam Le.
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St. Thomas Man Sentenced to 4 Years in Prison on Drug ChargesRead the Press Release
St. Croix, USVI – Alvin Henry, age 41, of St. Thomas, was sentenced in the St. Croix District Court after a jury trial conviction on one count of Conspiracy to Possess a Controlled Substance With Intent to Distribute and one count of Possession of a Controlled Substance With Intent to Distribute, United States Attorney Gretchen C.F. Shappert announced. The jury trial concluded on March 5, 2019.
Chief Judge Wilma A. Lewis sentenced Henry to a federal prison term of 48 months, followed by 3 years of supervised release, 200 hours of community service, a $2,500 fine, and a $200 total special assessment.
According to trial testimony, on November 2, 2016, a Customs and Border Protection K-9 officer entered the pre-departure area at the Henry E. Rohlsen Airport on St. Croix to randomly inspect departing passengers. When the K-9 officer approached, Henry nervously stood up and took his bag off the floor. When they noticed this suspicious behavior, CBP officers asked if they could look into his bags. Henry consented and officers located 10 duct-taped bricks of cocaine powder in Henry’s bags. Further investigation revealed that Henry was part of a scheme to transport cocaine from St. Croix to Florida, and had met with an airport employee in the bathroom of the departure area. The airport employee delivered the cocaine bricks to Henry in the bathroom. Henry had planned to board the American Airlines flight to Miami with the cocaine in his carry-on luggage. Laboratory analysis confirmed the substance was cocaine hydrochloride (cocaine powder) with a net weight of 5,132.4 grams, or over 5 kilograms.
The case was investigated by Customs and Boarder Protection and Homeland Security Investigations. The Drug Enforcement Administration (DEA) Southeast Laboratory in Miami analyzed the cocaine. Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
St. Charles County Man Pleads Guilty to Scheming to Defraud NFL PlayerRead the Press Release
St. Louis, MO – Abayomi Martin, 43, of Lake St. Louis, MO, pled guilty to one count of wire fraud relative to a scheme to defraud and obtain money from Baltimore Ravens player Brandon Carr. Martin appeared today before U.S. District Judge Catherine Perry who accepted his plea and set sentencing for June 3, 2020.
According to the plea agreement and statements made in Court, Martin owned and operated a company known as NUCO Group Holdings. Martin solicited an investment from Brandon Carr and Carr’s business manager for a purported part ownership in a separate clothing company known as Famous Nobodys. Martin falsely represented to Carr and his business manager that Martin had an ownership interest in Famous Nobodys, and that Carr’s investment in NUCO Group Holdings would provide Carr a 17.5% ownership interest in NUCO, which would own and operate Famous Nobodys. On September 12, 2016, after Martin presented him with what appeared to be a legitimate operating agreement setting out Carr’s purported ownership interest and NUCO’s interest in Famous Nobodys, Carr wired $250,000 to Martin for the purpose of owning as an equity holder and operating Famous Nobodys. However, the true owner of Famous Nobodys never knew of this purported agreement by Martin, never received any of Carr’s investment money, and never agreed to turn over any ownership interest in Famous Nobodys to Martin or NUCO. Instead, Martin used the investment funds provided by Brandon Carr for his own personal use and expenses, including cash withdrawals and personal credit card payments. Martin also used a portion of Brandon Carr’s funds to pay for the expenses and training costs of several professional boxers in Las Vegas, Nevada, all without the knowledge and authority of Carr. Martin continued the fraud by sending Carr and Carr’s business manager false and fraudulent email communications and text messages purporting to update them on Carr’s purported investment in Famous Nobodys. Brandon Carr had intended to use any profits from his investment in Famous Nobodys to fund his broad based charitable foundation, Carr Cares. Instead, Carr never received any funds back from Martin, who fraudulently used Carr’s entire investment for personal expenses and uses unrelated to any true investment in NUCO or Famous Nobodys.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the United States Attorney’s Office.
Springfield Man Sentenced to 12 Years for Heroin Trafficking, Numerous Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for illegally possessing heroin to distribute and illegally possessing 10 firearms.
William C. Merriweather, 37, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years in federal prison without parole.
On Sept. 4, 2019, Merriweather pleaded guilty to one count of participating in a conspiracy to distribute heroin in Greene County, Missouri, from July 14 to Dec. 14, 2017, and to one count of possessing firearms in furtherance of a drug-trafficking crime.
On Dec. 14, 2017, Springfield police officers executed a search warrant at Merriweather’s residence. Merriweather admitted that he flushed several grams of heroin down the toilet while officers were attempting to enter. Officers found 7.39 grams of heroin inside a purse hanging in the bedroom closet. On the floor of the closet, officers found a loaded Armi Fratelli Tanfoglio 9mm semi-automatic pistol.
Also inside the bedroom, leaning against a bedroom wall, officers found a Mossberg 12-gauge shotgun, a Walther .22-caliber semi-automatic rifle, and a Mossberg .22-caliber semi-automatic rifle. On the left side of the bed near the headboard, officers found a loaded Taurus .45-caliber semi-automatic pistol, a loaded Hi-Point .40-caliber semi-automatic pistol, a loaded (and stolen) Glock 9mm semi-automatic pistol, a loaded Kel-Tec 9mm semi-automatic pistol, and two loaded Taurus .25-caliber semi-automatic pistols with defaced serial numbers.
Merriweather admitted to officers that he had been making one or two trips per week to buy 20 to 24 grams of heroin on each trip, for the last four to five months. He purchased the heroin for $100 per gram and sold it for $150 per gram.
Merriweather has five prior felony convictions for possessing cocaine, two prior felony convictions for possessing heroin, and a prior felony conviction for burglary.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Springfield, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.San Mateo Doctor Charged with Unlawful Distribution of Opioids and Health Care FraudRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Timothy Mulligan for the unlawful distribution of opioids, including fentanyl, outside the scope of professional practice and health care fraud, announced United States Attorney David L. Anderson and Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux.
According to the indictment, Mulligan, 67, of Santa Clara, Calif., is a licensed physician practicing in San Mateo County. A substantial part of Mulligan’s medical practice involved providing prescriptions for controlled substances—primarily opioids. As alleged in the indictment, Mulligan issued an unusually high volume of prescriptions for potent opioids, including fentanyl. For example, according to a state government database, from about August 2014 through June 2018, Mulligan issued more than 9,000 prescriptions for opioids (totaling over 700,000 dosage units) to more than 250 patients. Overall, Mulligan predominantly prescribed the strongest strength dosages when prescribing fentanyl, oxycodone, and hydrocodone. In certain instances, Mulligan issued opioid prescriptions in quantities that significantly exceeded generally accepted daily quantities for the drug. The indictment states that because of the unusual pattern and volume of prescriptions issued by Mulligan and other warning signs, certain pharmacies declined to fill prescriptions issued by Mulligan or restricted the types of Mulligan’s prescriptions that they would fill.
As further alleged in the indictment, some individuals who obtained medically unnecessary prescriptions from Mulligan used private insurance or Medi-Cal to cover their office visits or pay for the drugs; others paid with cash. As alleged in the indictment, the insurance companies and Medi-Cal would not have paid for the office visits or paid out the pharmacy claims had they known the prescriptions were not medically necessary or were over-prescribed.
The Honorable Charles R. Breyer, Senior District Judge, scheduled Mulligan’s next appearance for April 29, 2020, at 1:30 p.m.
The indictment filed on February 27, 2020, charges Mulligan with three counts of distributing controlled substances outside the scope of professional practice, in violation of 21 U.S.C. §§ 84l(a)(l) & 841(b)(l)(C); and two counts of health care fraud, in violation of 18 U.S.C. § 1347.
The indictment merely alleges that crimes have been committed, and the defendant must be presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years in prison, a $1,000,000 fine, and a life term of supervised release for each count of distributing controlled substances; and 10 years in prison, a $250,000 fine, and a three-year term of supervised release for each count of health care fraud. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Ross Weingarten is prosecuting this case with the assistance of Linda Love. This prosecution is the result of an investigation by the DEA with assistance from the San Mateo District Attorney’s Office and the California Department of Health Care Services.
Anyone, including pharmacists and medical professionals, with information about prescriptions issued without a legitimate medical purpose is urged to contact the FBI Tip Line at (415) 553-7400.