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Thursday 23 January 2020
New York Pharmacist Charged with Narcotics and Tax Fraud OffensesRead the Press Release
A 12-count indictment was unsealed today in federal court in Brooklyn charging Daniel E. Russo, a pharmacist, with conspiracy to distribute and possess with intent to distribute oxycodone, distribution and possession of oxycodone, distribution of oxycodone by a pharmacist without legitimate prescription and filing false tax returns. Russo was arrested this morning by federal agents and arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak. The defendant was released on a $1.5 million bond.
Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration (DEA), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation (IRS-CI), announced the charges.
According to the indictment, Russo owned and operated Russo’s Pharmacy Inc., a drug store located in Far Rockaway, New York. From March 2011 through June 2014, Russo allegedly conspired with others including medical professionals and employees of a physician, to fill fraudulent prescriptions for oxycodone and dispense thousands of oxycodone pills in return for hundreds of thousands of dollars in cash. The indictment also alleges that for the years 2013 through 2016, Russo filed with the Internal Revenue Service (IRS) false tax returns on behalf of Russo’s Pharmacy that omitted cash received from the illegal oxycodone distribution scheme. The indictment further charges that during those years, Russo underreported income on his own personal returns. In total, Russo is charged with failing to report over $1 million in cash, most of it generated from his oxycodone distribution scheme.
More than a dozen physicians for whom Russo filled prescriptions have since been convicted of crimes related to the distribution of oxycodone.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Russo faces a statutory maximum sentence of 20 years in prison for each of the conspiracy and possession with intent to distribute counts, and three years in prison for each count of filing a false tax return. The defendant also faces a period of supervised release, restitution and monetary penalties, as well as forfeiture.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Donoghue commended special agents of the Drug Enforcement Administration and IRS-Criminal Investigation, who are investigating the case, and Assistant U.S. Attorney Nomi D. Berenson and Trial Attorney Michael C. Vasiliadis of the Tax Division, who are prosecuting the case.
New Jersey Man Indicted for Possessing Firearms in Furtherance of Drug Trafficking OffenseRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jamir M. Ceruti, age 22, of Burlington, New Jersey, was indicted on January 23, 2020, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Ceruti possessed with the intent to distribute multiple bags of cocaine and marihuana in Williamsport, Pennsylvania on March 23, 2018. The indictment also alleges that Ceruti possessed a Glock semi-automatic pistol, loaded with a 30-round magazine, and a stolen, and loaded, Ruger semi-automatic pistol in furtherance of his drug trafficking activities. Ceruti also allegedly possessed magazines and 58 loose cartridges, in addition to the two pistols.
The case was investigated by the Williamsport Bureau of Police, the Lycoming County District Attorney’s Office, and the Federal Bureau of Investigation. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NCIS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Myrtle Beach Man Sentenced to 12 Years in Federal Prison on Drug ChargeRead the Press Release
Florence, South Carolina --- Acting United States Attorney A. Lance Crick announced today that Shawntavius Ramone Johnson, 26, of Myrtle Beach, was sentenced to 12 years in federal prison after pleading guilty to possession of controlled substances with the intent to distribute.
Evidence presented to the court showed that on September 26, 2018, officers with the Horry County Police Department were dispatched to a location in Surfside Beach in reference to a tip that Johnson was at a residence and had an outstanding warrant for his arrest. The tip also indicated Johnson had drugs at the location. When officers arrived, Johnson was taken into custody. A search of the location revealed cocaine, cocaine base (“crack” cocaine), and methamphetamine, as well as body armor, .40 caliber Glock magazines, ammunition, a scale, and a clown mask.
United States District Judge Donald C. Coggins, Jr., of Spartanburg, sentenced Johnson to 145 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Myrtle Beach Police Department, and the Horry County Police Department.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Mustafa al-Imam Sentenced to 236 Months in Prison for September 2012 Terrorist Attack in Benghazi, LibyaRead the Press Release
WASHINGTON - Mustafa al-Imam, a 47-year-old Libyan national, was sentenced today to 236 months in prison on federal terrorism charges stemming from the Sept. 11, 2012, terrorist attack on the U.S. Special Mission and CIA Annex in Benghazi, Libya. Ambassador J. Christopher Stevens and U.S. government personnel Sean Smith, Tyrone Woods, and Glen Doherty died in the attack.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Columbia Jessie K. Liu, Jay Tabb, Executive Assistant Director of the FBI’s National Security Branch, and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office.
“Today’s sentence demonstrates the United States’ continuing commitment to pursue justice against those who commit terrorist acts against the United States no matter how far we must go or how long it takes. Mustafa al-Imam played an important role in the terrorist attack that destroyed the U.S. Mission and the CIA Annex in Benghazi,” said U.S. Attorney Liu. “We will continue to work with our law enforcement partners to pursue justice against all those who murdered these four American heroes and who seriously injured our personnel defending these U.S. facilities overseas.”
“The tragic loss of four American lives in the Benghazi attacks will never be forgotten and today’s sentencing of Mustafa al-Imam is an important reminder of that,” said Jay Tabb, Executive Assistant Director of the FBI’s National Security Branch. “The FBI is committed to investigate and bring to justice all individuals involved in acts of terrorism against U.S. facilities or citizens and will use the full range of our resources to pursue such cases.”
“We have not rested in our efforts to bring to justice those involved in the terrorist attacks on our facilities in Benghazi, which led to the death of four courageous Americans – Tyrone Woods, Sean Smith, Glen Doherty, and Ambassador Christopher Stevens – and we never will,” said Assistant Attorney General Demers. “Those responsible for these crimes must be held accountable. I want to thank the agents, analysts, and prosecutors – and all of their partners in the U.S. government – who are responsible for this important investigation.”
“Mustafa al-Imam played a significant role in the 2012 Benghazi attack, one that ultimately claimed American lives,” said Assistant Director William F. Sweeney, Jr. “While nothing will ever change the outcome of this horrific event, today’s sentencing is a reminder that the safety of Americans—whether at home or abroad, civilian or otherwise—will always be our top priority. If you commit an act of terrorism, we will find you and bring you to justice."
Al-Imam was captured in Libya on Oct. 29, 2017, and brought to the United States to face trial in the U.S. District Court for the District of Columbia. He was found guilty by a jury on June 13, 2019, following a six-week trial, of one count of conspiracy to provide material support or resources to terrorists and one count of maliciously destroying and injuring dwellings and property, and placing lives in jeopardy within the special maritime and territorial jurisdiction of the United States. He was sentenced by the Honorable Christopher R. Cooper.
According to the government’s evidence, on the night of Sept. 11, 2012, a group of extremists, armed with AK-47 rifles, grenades, and other weapons, swept into the U.S. Special Mission in Benghazi, setting fires and breaking into buildings. During that violence, Ambassador Stevens, Mr. Smith, and Diplomatic Security Services (DSS) Special Agent Scott Wickland valiantly tried to protect themselves when the attackers stormed into the Ambassador’s residence, sheltering in a secure area. However, when the attackers could not gain entry to the secure area, the attackers set fire to the residence. Ambassador Stevens and Mr. Smith suffocated from the thick, black smoke that enveloped the residence. Special Agent Wickland, who tried to guide them to safety, was injured and repeatedly took small arms fire while trying to rescue Ambassador Stevens and Mr. Smith.
Al-Imam arrived at the Mission during the initial stage of the attack, accompanying Ahmed Abu Khatallah, the leader of an extremist militia named Ubaydah bin Jarrah and one of the planners of the attack. During the attack on the Mission, al-Imam maintained contact with Khatallah in a series of cellphone calls, including an 18-minute phone call that took place during the height of the attack. Members of Ubaydah bin Jarrah, as well as other extremist groups, were caught on surveillance video attacking the Mission. After the American security personnel withdrew from the Mission, al-Imam, Khatallah, several UBJ members, and other extremists entered the Mission’s office and removed sensitive information, including maps and other documents related to the location of the CIA’s Annex in Benghazi.
Following the attack at the Mission, in the early hours of Sept. 12, 2012, the violence continued at the CIA Annex, first with gunfire and then with a precision mortar attack. While defending the Annex, Mr. Woods, Mr. Doherty, DSS Special Agent David Ubben, and CIA security specialist Mark Tiegen were hit by a precision mortar attack, leading to the deaths of Mr. Woods and Mr. Doherty. Special Agent Ubben and Mr. Tiegen were seriously wounded but survived.
This case was investigated by the FBI’s New York Field Office with substantial assistance from various other government agencies, including the Department of Defense and the two victim agencies, the CIA and the Department of State. The National Security Division’s Counterterrorism Section provided significant assistance.
The case was prosecuted by Assistant U.S. Attorneys John Cummings and Karen Seifert of the National Security Section of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Assistant U.S. Attorneys Nicholas Coleman and Jolie Zimmerman, Paralegal Specialist Donna Galindo, detailed Paralegal Specialist Ashley Davis, Intelligence Research Special Dustin Powell, Contract Document Management Analyst Michael Watts, Victim-Witness Advocates Yvonne Bryant, Tonya Jones, Laverne Perry and Wanda Queen, and Litigation Technology Chief Leif Hickling. Earlier stages of the prosecution were handled by Assistant U.S. Attorney Michael DiLorenzo and former Assistant U.S. Attorneys Opher Shweiki and Julieanne Himelstein.
Mustafa Al-Imam Sentenced to More than 19 Years in Prison for September 2012 Terrorist Attack in Benghazi, LibyaRead the Press Release
Mustafa al-Imam, a 47-year-old Libyan national, was sentenced today to 236 months in prison on federal terrorism charges and other offenses stemming from the Sept. 11, 2012, terrorist attack on the U.S. Special Mission and CIA Annex in Benghazi, Libya. Ambassador J. Christopher Stevens and U.S. government personnel Sean Smith, Tyrone Woods, and Glen Doherty died in the attack.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Columbia Jessie K. Liu, Jay Tabb, Executive Assistant Director of the FBI’s National Security Branch, and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office.
“We have not rested in our efforts to bring to justice those involved in the terrorist attacks on our facilities in Benghazi, which led to the death of four courageous Americans – Tyrone Woods, Sean Smith, Glen Doherty, and Ambassador Christopher Stevens – and we never will,” said Assistant Attorney General for National Security John C. Demers. “Those responsible for these crimes must be held accountable. I want to thank the agents, analysts, and prosecutors – and all of their partners in the U.S. government – who are responsible for this important investigation.”
“Today’s sentence demonstrates the United States’ continuing commitment to pursue justice against those who commit terrorist acts against the United States no matter how far we must go or how long it takes. Mustafa al-Imam played an important role in the terrorist attack that destroyed the U.S. Mission and the CIA Annex in Benghazi,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “We will continue to work with our law enforcement partners to pursue justice against all those who murdered these four American heroes and who seriously injured our personnel defending these U.S. facilities overseas.”
“The tragic loss of four American lives in the Benghazi attacks will never be forgotten and today’s sentencing of Mustafa al-Imam is an important reminder of that,” said Jay Tabb, Executive Assistant Director of the FBI’s National Security Branch. “The FBI is committed to investigate and bring to justice all individuals involved in acts of terrorism against U.S. facilities or citizens and will use the full range of our resources to pursue such cases.”
“Mustafa al-Imam played a significant role in the 2012 Benghazi attack, one that ultimately claimed American lives,” said Assistant Director William F. Sweeney, Jr. “While nothing will ever change the outcome of this horrific event, today’s sentencing is a reminder that the safety of Americans—whether at home or abroad, civilian or otherwise—will always be our top priority. If you commit an act of terrorism, we will find you and bring you to justice."
Al-Imam was captured in Libya on Oct. 29, 2017, and brought to the United States to face trial in the U.S. District Court for the District of Columbia. He was found guilty by a jury on June 13, 2019, following a six-week trial, of one count of conspiracy to provide material support or resources to terrorists and one count of maliciously destroying and injuring dwellings and property, and placing lives in jeopardy within the special maritime and territorial jurisdiction of the United States. He was sentenced by the Honorable Christopher R. Cooper.
According to the government’s evidence, on the night of Sept. 11, 2012, a group of extremists, armed with AK-47 rifles, grenades, and other weapons, swept into the U.S. Special Mission in Benghazi, setting fires and breaking into buildings. During that violence, Ambassador Stevens, Mr. Smith, and Diplomatic Security Service (DSS) Special Agent Scott Wickland valiantly tried to protect themselves when the attackers stormed into the Ambassador’s residence, sheltering in a secure area. However, when the attackers could not gain entry to the secure area, the attackers set fire to the residence. Ambassador Stevens and Mr. Smith suffocated from the thick, black smoke that enveloped the residence. Special Agent Wickland, who tried to guide them to safety, was injured and repeatedly took small arms fire while trying to rescue Ambassador Stevens and Mr. Smith.
Al-Imam arrived at the Mission shortly after the attack began, accompanying Ahmed Abu Khatallah, the leader of an extremist militia named Ubaydah bin Jarrah and one of the planners of the attack. During the attack on the Mission, al-Imam maintained contact with Khatallah in a series of cellphone calls, including an 18-minute phone call that took place during the height of the attack. Members of Ubaydah bin Jarrah, as well as other extremist groups, were caught on surveillance video attacking the Mission. After the American security personnel withdrew from the Mission, al-Imam, Khatallah, several UBJ members, and other extremists entered the Mission’s office and removed sensitive information, including maps and other documents related to the location of the CIA’s Annex in Benghazi.
Following the attack at the Mission, in the early hours of Sept. 12, 2012, the violence continued at the CIA Annex, first with gunfire and then with a precision mortar attack. While defending the Annex, Mr. Woods, Mr. Doherty, DSS Special Agent David Ubben, and CIA security specialist Mark Tiegen were hit by a precision mortar attack, leading to the deaths of Mr. Woods and Mr. Doherty. Special Agent Ubben and Mr. Tiegen were seriously wounded but survived.
This case was investigated by the FBI’s New York Field Office with substantial assistance from various other government agencies, including the Department of Defense and the two victim agencies, the CIA and the U.S. Department of State's Diplomatic Security Service. The National Security Division’s Counterterrorism Section and the Criminal Division’s Office of International Affairs provided assistance.
The case was prosecuted by Assistant U.S. Attorneys John Cummings and Karen Seifert of the National Security Section of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Assistant U.S. Attorneys Nicholas Coleman and Jolie Zimmerman, Paralegal Specialist Donna Galindo, detailed Paralegal Specialist Ashley Davis, Intelligence Research Special Dustin Powell, contract Document Management Analyst Michael Watts, Victim-Witness Advocates Yvonne Bryant, Tonya Jones, Laverne Perry and Wanda Queen, and Litigation Technology Chief Leif Hickling. Earlier stages of the prosecution were handled by Assistant U.S. Attorney Michael DiLorenzo and former Assistant U.S. Attorneys Opher Shweiki and Julieanne Himelstein.
Multiple Bay Area Residents Convicted and Sentenced for Forced Refund Fraud SchemeRead the Press Release
SAN JOSE– Monica Mason, the lead defendant in a seven-defendant bank fraud conspiracy, was sentenced to 106 months prison and ordered to pay over $3 million in restitution for a wide ranging refund fraud conspiracy, announced United States Attorney David L. Anderson and FBI Special Agent in Charge, John F. Bennett. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge.
Mason, 40, of Oakland, pleaded guilty to the charges on August 14, 2019. According to her plea agreement, Mason admitted that she, along with Brandon Bodine, Jennifer Prince, Katherine Baldridge, Raymundo Ramos, Lakhinder Singh, and Armida Ruelas, participated in a refund fraud scheme that is thought to have originated in the Bay Area around 2014 and has since spread to neighboring areas. Pursuant to the scheme, fraudsters exploit the credit card refund process by using stolen or reprogrammed electronic point of sale (“POS”) terminals to “force” refunds from merchant bank accounts for products or services that were never actually purchased from the victim merchant. The fraudulent refunds then are loaded to credit and debit cards controlled by the fraudsters, who spend the illicit funds via credit card charges, wire transfers, and ATM withdrawals from affiliated bank accounts. These refund fraud schemes have caused significant disruption to banks and payment processors servicing the targeted merchants, who must divert resources and funds to investigate and remediate the financial losses suffered by their merchant clients. The victims collectively report a total loss of over $20 million since authorities began to track this type of fraud in 2014.
In this case, Mason admitted in her plea agreement that in early 2016, she and her codefendants used a stolen POS terminal to launch refund attacks against several businesses and franchises located throughout the nation. Mason further admitted that the defendants loaded fraudulently obtained refunds onto debit and credit cards under their control. The defendants registered some of the credit and debit cards in their own names and registered many cards in the names of other people using stolen identity information. The defendants attempted to force over $525,000 in fraudulent refunds from various merchant bank accounts using one POS terminal alone. Sixteen additional POS terminals were later recovered from a storage locker associated with Mason and Ruelas.
In addition, Mason, Bodine, Baldridge, and Ruelas acknowledged in their publicly filed plea agreements that they were involved in a second refund fraud scheme that took place from mid-2017 to early 2018. According to the plea agreements, Mason, Bodine, Baldridge, Ruelas and others caused over $3.5 million in fraud loss to a payment processor pursuant to this scheme. They have all accepted responsibility for their conduct during the 2017-2018 time period and agreed to be sentenced based on the combined loss suffered by victims in both cases.
On February 8, 2018, a federal grand jury indicted Mason, Bodine, Prince, Baldridge, Ramos, Singh, and Ruelas, charging them for their respective roles in the conspiracy. Mason was charged with conspiracy, nine substantive counts of bank fraud, unlawful possession of personal identification information, and aggravated identity theft. Mason pleaded guilty to the conspiracy charge and the remaining charges were dismissed.
As of January 22, 2020, all seven defendants have been convicted of conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349. The following five defendants have now been sentenced by the Judge Koh:
Defendant
Place of Birth
Date of Sentencing
Sentence Imposed
Monica Mason
Oakland, CA
January 22, 2020
- 106 months in prison;
- Over $3.3 million in restitution to victims;
- 3 years supervised release;
- $100 Special Assessment Fee;
- Forfeiture.
Brandon Bodine
Hayward, CA
November 27, 2019
- 94 months in prison;
- Over $3.9 million in restitution to victims;
- 3 years supervised release;
- $100 Special Assessment Fee;
- Forfeiture.
Katherine Baldridge
Berkeley, CA
October 11, 2019
- 87 months in prison;
- Over $3.6 million in restitution to victims;
- 3 years supervised release;
- $100 Special Assessment Fee;
- Forfeiture.
Armida Ruelas
Hayward, CA
November 27, 2019
- 84 months in prison;
- Over $4.3 million in restitution to victims;
- 3 years supervised release;
- $100 Special Assessment Fee;
- Forfeiture.
Raymundo Ramos
San Leandro, CA
December 4, 2019
- 30 months in prison;
- Over $270,000 in restitution to victims;
- 3 years supervised release;
- $100 Special Assessment Fee;
- Forfeiture.
Prince and Singh have not yet been sentenced.
Assistant U.S. Attorney Marissa Harris is prosecuting the case with the assistance of Susan Kreider, Nina Burney-Williams, and Jessica Leung. The prosecution is the result of an investigation by the R.E.A.C.T. Taskforce, a joint federal and state taskforce targeting identity theft crimes in the Bay Area that includes the Santa Clara County District Attorney’s Office and Berkeley Police Department. Special Agents from the Federal Bureau of Investigation and the U.S. Secret Service also assisted the investigation.
Montgomery County Man Pleads Guilty to Federal Firearm and Drug ChargesRead the Press Release
LEXINGTON, Ky. - A Jeffersonville, Kentucky man, Ryan Keith Herndon, 29, admitted in federal court on Thursday, before U.S. District Judge Karen Caldwell, that he sold a firearm to a convicted felon, possessed a firearm as a convicted felon, and distributed a mixture of various controlled substances.
In his plea agreement, Herndon admitted that, on May 9, 2019,he sold a Walther .40 caliber pistol to a confidential informant working on behalf of the Appalachian High Intensity Drug Trafficking Area (AHIDTA) Gateway Drug Task Force and ATF. Then, on May 10, 2019, Herndon sold the confidential informant another firearm, a Century Arms 7.62 x 39 rifle. Herndon was a convicted felon and was prohibited from lawfully possessing or selling firearms. At the time Herndon sold the firearms, he knew or had reasonable cause to believe that the confidential informant was a convicted felon.
Additionally, on May 21, 2019, Herndon sold a substance containing the drugs heroin, valerylfentanyl, fentanyl, and methamphetamine to a confidential informant working for the Mt. Sterling Police Department. Then, on May 22, 2019, Herndon sold a quantity of methamphetamine to a confidential informant.
Herndon was indicted in June 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge, ATF Louisville Field Division; and Chief Wayne Green, Mt. Sterling Police Department, jointly announced the guilty plea.
The investigation was conducted by the AHIDTA Gateway Drug Task Force, ATF and the Mt. Sterling Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Francisco Villalobos II.
Herndon is scheduled to be sentenced on May 21, 2020. He faces up to 30 years in prison and a maximum fine of $2.5 million. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Mineral County man admits to role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Levi Doman, of Keyser, West Virginia, has admitted to his involvement in a drug distribution conspiracy, U.S. Attorney Bill Powell announced.
Doman, age 32, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Doman admitted to distributing methamphetamine in August 2017 in Mineral County.
Doman faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Miami-Based Businessman Pleads Guilty to FCPA and Money Laundering Violations in Scheme Involving PetroEcuador OfficialsRead the Press Release
An Ecuadorian businessman living in Miami, Florida, pleaded guilty today in connection with a $4.4 million bribery and money laundering scheme that funneled bribes to public officials of Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador), the state-owned and state-controlled oil company of Ecuador, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office.
Armengol Alfonso Cevallos Diaz (Cevallos), 57, pleaded guilty before U.S. District Judge Rodney Smith of the Southern District of Florida to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of conspiracy to commit money laundering. Sentencing is scheduled for April 2, 2020.
Cevallos admitted at the plea hearing that, from 2012 through 2015, he conspired with others to pay bribes of $4.4 million to PetroEcuador officials by using the mails and means and instrumentalities of interstate commerce, including U.S.-based companies and U.S.-based bank accounts, in order to obtain and retain business. Cevallos also admitted that he conspired with others to conceal and promote the bribe scheme by laundering funds through Miami-based shell companies and bank accounts and by purchasing properties in the Miami area for the benefit of certain PetroEcuador officials. Specifically, as alleged in the indictment, Cevallos admitted that he solicited and intermediated bribe payments from an oil services company for the benefit of PetroEcuador officials, and that he helped launder those bribes and others he had paid to PetroEcuador officials on behalf of Ecuadorian contractors and his own companies.
Today’s plea follows 12 public charges and guilty pleas against other individuals in the department’s ongoing investigation into bribery and money laundering involving PetroEcuador. The individuals who have been charged to date for their roles in the bribery and money laundering schemes include former PetroEcuador officials who received and concealed the bribe payments, businessmen and contractors who paid the bribes to obtain lucrative oil services contracts from PetroEcuador, and financial advisors and other intermediaries who enabled and facilitated the bribery through the use of U.S. and offshore companies and bank accounts.
The FBI’s International Corruption Squad in Miami is investigating the case. Assistant Chiefs David Fuhr and Lorinda Laryea and Trial Attorneys Jonathan Robell and Katherine Raut of the Criminal Division’s Fraud Section and Trial Attorneys Mary Ann McCarthy and Randall Warden of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) are prosecuting the case.
IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Marshals Service and the Criminal Division’s Office of International Affairs have provided significant assistance in this case, as have public authorities in, among other countries, Ecuador and Panama.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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.
Meth dealer sentenced to nine years in prisonRead the Press Release
Missoula—A Wyoming man convicted of trafficking large quantities of methamphetamine in the community for several years was sentenced today to nine years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Alberto Hernandez, Jr., 35, of Gillette, Wyo., pleaded guilty in October to conspiracy to distribute meth.
Chief U.S. District Judge Dana L. Christensen presided.
The prosecution said in court records that Hernandez was a major meth dealer from about 2015 to 2019. Missoula Police Department officers arrested Hernandez on April 12, 2019 on an outstanding warrant and a search of Hernandez determined he had $1,279 in U.S. currency and more than 20 grams of meth.
Confidential informants told law enforcement that Hernandez supplied them with meth. One of the informants said Hernandez would deliver one or two pounds of meth every week and that in total, Hernandez distributed an estimated 75 pounds to 100 pounds of meth in Missoula over a two-year period. One hundred pounds of meth is the equivalent of about 362,400 doses.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Montana Regional Violent Crimes Task Force and the FBI.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Meth dealer from Marion sentenced to prisonRead the Press Release
MISSOULA—Selling methamphetamine to an undercover agent in 2018 sent a Marion resident to prison today for one year and one day to be followed by three years of supervised release, U.S. Attorney Kurt Alme said.
Rene Myron Gardner, 62, pleaded guilty in October to conspiracy to distribute meth.
Chief U.S. District Judge Dana L. Christensen presided.
In court documents filed in the case, the prosecution said that in the fall of 2018, Gardner conspired with others to sell meth. An undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives bought about an ounce of meth from Gardner at his residence. The agent paid Gardner $1,000. Then in November 2018, the agent bought an ounce of meth and a sawed-off shotgun from one of Gardner’s co-conspirators. The meth deal occurred at Gardner’s residence, while the group went to the co-conspirator’s residence to complete the shotgun purchase. The agent paid $1,250 for the meth and $500 for the firearm.
Assistant U.S. Attorney Tim Racicot prosecuted the case, which was investigated by the ATF.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Meth Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Jerry Hunter Hartley, 28, of Mobile, Alabama, was sentenced on charges of possession with intent to distribute methamphetamine. Court documents showed that Hartley was caught twice by law enforcement authorities in Mobile during 2018 in possession of methamphetamine. Hartley pled guilty to the federal charge in July of 2018.
United States District Court Judge Callie V. S. Granade imposed a sentence of 120 months imprisonment in Hartley’s case, and ordered that he will serve a term of five years supervised release following the completion of his prison sentence. She also ordered that he will undergo drug and alcohol abuse treatment while in prison and as a condition of his supervision. No fine was imposed, but Hartley was ordered to pay the special mandatory assessment of $100.
The case was investigated by the Mobile County Sheriff’s Office, the Mobile Police Department and Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Mesquite Ex-Educator Sentenced to 14 Years in Child Pornography CaseRead the Press Release
A Mesquite educator was sentenced today to 14 years in federal prison for child exploitation, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
55-year-old James Earle Cude – who previously served as North Mesquite High School’s band director – pleaded guilty in August to receipt of child pornography.
In plea papers, he admitted he’d used the instant messaging app Kik to download images and videos of the sexual exploitation of minors, including a video of a young boy being raped by an adult man.
At his sentencing hearing, agents testified that Mr. Cude had used various apps to initiate chats with dozens of underage teens, requesting lewd photos and proposing sexual meetups.
Mr. Cude was arrested in February at a coffee shop, after exchanging explicit messages with an individual he believed was a 13-year-old boy. Unbeknownst to the defendant, his messages were actually sent to an undercover agent. He later admitted he’d enticed the boy there for sexual contact.
The Collin County Sheriff’s Office, Dallas Police Department, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Camille Sparks prosecuted the case. U.S. District Judge Samuel A. Lindsay handed down the sentence.
CORRECTION: An earlier version of this release contained an error regarding the defendant's tenure at North Mesquite High School:. While Mr. Cude served as a band director in North Texas for more than a decade, he served at North Mesquite High School for less than a year, from 2018 to 2019. Reporters were promptly notified of the error.
Members of $11 Million International Telemarketing Scheme Sentenced to PrisonRead the Press Release
Three individuals were sentenced to prison for their roles in an $11 million telemarketing scheme that defrauded primarily elderly victims in the United States from call centers in Costa Rica.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina, Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s Charlotte Division, Special Agent in Charge Bryant Jackson of IRS Criminal Investigation’s (CI) Cincinnati Field Office, Special Agent in Charge Matthew D. Line of IRS-CI’s Charlotte Field Office and Special Agent in Charge John Strong of the FBI’s Charlotte Field Office made the announcement.
Donald Dodt, 76, originally of Cleveland, Ohio, Thomas Sniffen, 58, originally of Peekskill, New York, and Michael Saxon, 50, originally of Ontario, Canada, were sentenced by U.S. District Judge Max O. Cogburn Jr. of the Western District of North Carolina to 90 months, 114 months and 75 months in prison, respectively. Judge Cogburn also ordered restitution in the amount of $7 million for Dodt, $11,236,857.65 for Sniffen and $2,593,574.02 for Saxon to be paid jointly and severally with their co-conspirators.
Following a five-day trial in May 2019, Dodt was found guilty of one count of conspiracy to commit wire fraud and mail fraud, two counts of mail fraud, eight counts of wire fraud, one count of conspiracy to commit international money laundering and 10 counts of international money laundering. In April 2019, Sniffen pleaded guilty to all charges in the 31-count indictment charging conspiracy to commit mail and wire fraud, substantive counts of mail fraud and wire fraud, international money laundering and conspiracy to commit international money laundering. In May 2019, Saxon pleaded guilty pursuant to a plea agreement to one count of conspiracy to commit mail and wire fraud, one count of mail fraud and one count of conspiracy to commit international money laundering.
According to the evidence presented at both Dodt’s trial and the sentencing hearings, and the factual bases in support of Sniffen’s and Saxon’s guilty pleas, Dodt, Sniffen and Saxon conspired together to commit the fraud and worked in a call center in Costa Rica. While falsely posing as federal judges, representatives of the District of Columbia Department of Consumer and Regulatory Affairs and other federal agencies, including the U.S. Federal Trade Commission, they contacted victims in the United States — primarily senior citizens — to tell them that that they had supposedly won a substantial “sweepstakes” prize. After convincing victims that they stood to receive a significant financial reward, the members of the conspiracy told victims that they needed to make a series of up-front cash payments before collecting, purportedly for items like insurance fees, taxes and import fees. The co-conspirators used a variety of means to conceal their identity, such as Voice over Internet Protocol (VoIP) services provided by Dodt that made it appear as if they were calling from Washington, D.C., and other places in the United States.
At sentencing, it was determined that Dodt, Sniffen, Saxon and their co-conspirators collectively stole more than $11 million in total from victims.
This case was investigated by the U.S. Postal Inspection Service, IRS-CI, the FBI with assistance from the Federal Trade Commission and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Department of State’s Diplomatic Security Service (DSS). The case is being prosecuted by Trial Attorneys Jennifer Farer and Philip Trout of the Criminal Division’s Fraud Section. Former Fraud Section Trial Attorney William Bowne previously prosecuted the case. The U.S. Attorney’s Office for the Western District of North Carolina provided substantial assistance with this matter.
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.
Maui burglar sentenced to 46 months of prison after pleading guilty to possession of stolen firearmsRead the Press Release
HONOLULU, Hawaii – Barret J. Paman, 32, of Maui County, was sentenced today in federal court by United States District Judge Jill A. Otake to 46 months of imprisonment, and three years of supervised release for possession of stolen firearms.
US Attorney for the District of Hawaii Kenji M. Price announced that, according to court documents and information presented in court, on March 7, 2019, Paman burglarized a residence on Waiehu Beach Road, Wailuku, Maui, stealing 19 firearms, a gun safe, and other items. The stolen firearms included a 12-gauge shotgun, three rifles, three pistols, and a rifle receiver. Paman provided these eight stolen firearms to other individuals for either methamphetamine or cash.
At sentencing, Judge Otake took into consideration the fact that Paman took the firearms from law-abiding citizens and sold or traded the stolen firearms to felons and drug dealers.
The case was investigated by the Maui Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Darren W.K. Ching.
This prosecution is part of Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the ATF and the MPD. For more information about Project Guardian, please click here.
Maryland U.S. Attorney’s Office Honors 35 Law Enforcement Officers for Their Work on Federal Violent Crime CasesRead the Press Release
Baltimore, Maryland – The Maryland U.S. Attorney’s Office today honored 35 police officers and federal agents for outstanding work in support of significant federal violent crime prosecutions. Recipients included police officers from Anne Arundel County, Baltimore City, City of Hyattsville, Montgomery County, Prince George’s County, Prince William County, Virginia, and the University Park Police Department; and federal agents from ATF, DEA, FBI, and HSI.
“We are so grateful for the exceptional work done by law enforcement officers day in and day out, without fanfare or recognition,” said U.S. Attorney Robert K. Hur. “Local, state, and federal law enforcement are working together to combat violent crime in Maryland. The hard work of these law enforcement officers led to dozens of convictions of dangerous criminals.”
The honorees participated in the investigation and prosecution of more than 10 violent crime cases involving more than 55 defendants. The defendants included armed robbers, gang members, and drug dealers. A majority of the defendants have previous felony convictions and many are career offenders and/or armed career criminals.
In addition to U.S. Attorney Robert K. Hur, agency representatives who participated in today’s awards ceremony included: Acting ATF Special Agent in Charge Toni Crosby; FBI Special Agent in Charge Jennifer C. Boone; Homeland Security Investigations Special Agent in Charge John Eisert; Anne Arundel County Major Ross Passman; City of Hyattsville Police Chief Amal Awad; Montgomery County Assistant Police Chief Ronald Smith; Prince William County Police Chief Barry Barnard; and University Park Police Chief Harry Baker.
United States Attorney Robert Hur commended all the honorees for their work on these violent crime investigations. Mr. Hur thanked the Assistant United States Attorneys who prosecuted the cases and nominated their agents and officers for these awards.
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Martinsburg man admits to role in cocaine, heroin, and fentanyl distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Shavar Payton, of Martinsburg, West Virginia, has admitted to his role in a cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Payton, age 34, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Base.” Payton admitted to distributing 28 grams or more of cocaine base in Berkeley County in January 2019.
Payton 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 Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, are prosecuting the case on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department 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.
Martinsburg man admits to firearms violationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Darnell M. Garnett, of Martinsburg, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Garnett, age 22, pled guilty to one count of “Unlawful Possession of Firearm.” Garnett, a person prohibited from having a firearm because of a prior felony conviction, admitted to having a 9mm pistol with an obliterated serial number and a 5.56x45 caliber rifle in October 2018 in Berkeley County.
Garnett faces up to 10 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Mandeville Man Pleads Guilty to Selling Misbranded Generic Versions of Cialis to BodybuildersRead the Press Release
NEW ORLEANS, La. - U.S. Attorney Peter G. Strasser announced today that LUCCAS EASTMAN, age 29, a resident of Mandeville pleaded guilty on January 22, 2020, before United States District Court Judge Sarah S. Vance to a one-count bill of information charging him with selling misbranded generic drugs in violation of 21 U.S.C. § 331.
According to court documents, from January 2017 through May 2017, EASTMAN imported mislabeled generic versions of drugs, including Tadalafil, from Chinese companies which he then sold to members of the bodybuilding community in the Slidell/Mandeville area, among other consumers. Tadalafil is a generic version of Cialis.
EASTMAN faces a maximum term of up to one year in prison and up to one year of supervised release. Sentencing before Judge Vance is scheduled for April 29, 2020.
U.S. Attorney Strasser praised the work of the Food and Drug Administration. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
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Man Pleads Guilty to Making Illegal Campaign ContributionsRead the Press Release
ALEXANDRIA, Va. – A Maryland political consultant pleaded guilty today to conspiring to funnel more than $15,000 through straw donors into a campaign for a member of the U.S. House of Representatives.
According to court documents, Charles O’Neil, 33, was the Vice President of Strategic Campaign Group, Inc., a political consulting company located in Arlington from January to October 2015.
O’Neil and his co-conspirators, including Kelley Rogers, Scott Mackenzie, and another co-conspirator, facilitated unlawful campaign contributions from a company, through eleven straw donors, to a campaign. The campaign was for a candidate running for an Indiana seat in the U.S. House of Representatives. The co-conspirator was the vice president and general counsel of a company; a gaming corporation based in Indianapolis, IN. The co-conspirator transferred funds from their company to bank accounts that were associated with Strategic Campaign Group, Inc. O’Neil and his co-conspirators used more than $15,000 of the transferred funds to reimburse straw donors who, at the direction of O’Neil, Rogers, and other conspirators, contributed more than $15,000 to the campaign.
O’Neil and his co-conspirators made these transfers to evade the restrictions of corporate contributions to campaigns, to evade the limits placed on money that individuals could contribution to a campaign, and to disguise the fact that the gaming corporation was the true source of the funds.
O’Neil pleaded guilty to one count of conspiracy to make conduit contributions and is scheduled to be sentenced on May 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Timothy M. Dunham, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Kimberly R. Pedersen and Trial Attorneys Bill Gullotta and John Taddei of the Criminal Division’s Public Integrity Section (PIN) are prosecuting the case.
Former PIN attorney Molly Gaston provided significant assistance in 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-010.
Media AdvisoryRead the Press Release
WHEN: Friday, January 24, 2020 at 10:00AM
WHERE: Duplin County Sheriff’s Office Training Center
272 Landfill Road
Rose Hill, NC 28458
Re: Operation Fall of the House of Usher
RALEIGH – The United States Attorney’s Office announces a press conference to discuss the sentencing of multiple defendants in a multi-year methamphetamine conspiracy investigation in Duplin County. These defendants were responsible for the sale of narcotics in Duplin County. We will also highlight the important partnerships between all levels of law enforcement in this and other investigations during the preceding year. The Duplin County Sheriff’s Office and New Hanover County Sheriff’s Office investigated this case, along with agents from the Drug Enforcement Administration.
In addition to United States Attorney Robert J. Higdon, Jr., Duplin County Sheriff Blake Wallace, members of the Duplin County Sheriff’s Office, New Hanover County Sheriff’s Office and other law enforcement are expected to be present at this event.
Credentialed members of the media are invited to attend. For additional information, please e-mail Don Connelly at [email protected]. Please RSVP your intentions to attend the event.
Lee County Man Sentenced to 100 Months for Methamphetamine Trafficking and Possession of Firearm by FelonRead the Press Release
FRANKFORT, Ky. - A Beattyville, Kentucky, man, Howard Kirk Hall, 57, who previously pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm by a convicted felon, was sentenced to 100 months in federal prison on Thursday, by U.S. District Judge Gregory Van Tatenhove.
In his plea agreement, Hall admitted that on January 17, 2019, law enforcement officers responded to a “shots fired” call at his residence, where he exited the residence and told officers that he was shooting at others inside. Hall advised officers he had firearms in the home. After entering the residence, officers determined that no one else was inside the home, observed drugs and weapons in plain view, and obtained a search warrant. During the execution of the search warrant, officers discovered 352 grams of methamphetamine, 20 firearms, and a substantial amount of ammunition. Hall admitted that he was knew he had been previously convicted of a felony offense and he was not allowed to possess a firearm.
Evidence from that search warrant led to a search of a second residence maintained by Hall. Officers obtained a second search warrant for this location and located a marijuana grow operation with plants in various growth stages and two pounds of processed marijuana ready for distribution.
Hall pled guilty in July 2019. Hall previously was convicted of cultivating/manufacturing marijuana in 1999 in the U.S. District Court for the Eastern District of Kentucky and received a sentence of 60 months. As part of his plea agreement, Hall agreed to forfeit his interest in the firearms and ammunition.
Under federal law, Hall must serve 85 percent of his/her prison sentence and will be under the supervision of the U.S. Probation Office for five years. Additionally, Hall will have to pay a $2,500 fine.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge, ATF Louisville Field Division; Dan Dodds, Acting Special Agent in Charge, DEA Louisville Field Division; Commissioner Rodney Brewer, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by Kentucky State Police, ATF, and DEA. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Todd Bradbury.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Keene Man Charged with Extortion and ThreateningRead the Press Release
CONCORD – Christopher C. Cantwell, 39, of Keene, was indicted by a federal grand jury and charged with making extortionate communications and sending interstate threats, United States Attorney Scott W. Murray announced today.
The indictment alleges that on June 16, 2019, Cantwell threatened to injure another person if the victim of the threat did not provide Cantwell with personal information about a third party.
Cantwell was arrested on January 23, 2020. He is being held in custody pending a detention hearing on January 28, 2020.
Cantwell’s trial has been scheduled for March 3 2020.
This case was investigated by the Federal Bureau of Investigation with assistance from the New Hampshire State Police, Keene Police Department, and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorneys John S. Davis and Anna Krasinski.
An indictment is merely an allegation and a defendant is presumed innocent unless and until proven guilty.
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Justice Department Requires ZF and WABCO to Divest WABCO's Steering Components Business to Proceed with MergerRead the Press Release
The Department of Justice announced today that it is requiring ZF Friedrichshafen AG (ZF) and WABCO Holdings Inc. (WABCO) to divest WABCO’s North American steering components business, R.H. Sheppard Co. Inc., as well as other related WABCO assets, in order for ZF to proceed with its proposed acquisition of WABCO. Without the divestiture, the proposed acquisition would eliminate competition between the only two suppliers of steering gears used on large commercial vehicles in North America, the department’s lawsuit alleges.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed merger. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
“The merger, as originally structured, would have given ZF a monopoly over an essential steering systems component used in trucks and buses that move products and people across the United States,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement, which requires the divestiture of WABCO’s entire U.S. steering systems business, will ensure that commercial vehicle manufacturers continue to benefit from competition as they design and build the trucks and buses of today and tomorrow.”
According to the Justice Department’s complaint, ZF and WABCO are the only North American suppliers of the steering gears that are an essential steering system component used in large commercial vehicles. These steering gears direct the front wheels of trucks and buses, and are also a key component of advanced driver assistance system (ADAS) steering features. ADAS steering features, such as lane-keeping assist, are already being implemented today, and are expected to be an area of continued importance as companies develop autonomous vehicle operations. The department’s complaint alleges that competition between ZF and WABCO has resulted in lower prices, higher quality, better service, and more favorable contractual terms, and has fostered innovation that has led to the development of features that are integral to the current and future development of ADAS technologies. According to the complaint, the combination of ZF and WABCO would leave manufacturers of large commercial vehicles in North America without a sufficient competitive alternative for this critical input and likely result in higher prices, less favorable contract terms, and reduced research and development efforts.
Under the terms of the proposed settlement, ZF and WABCO must divest the entirety of WABCO’s R.H. Sheppard steering systems subsidiary, including its manufacturing facilities in Hanover, Pennsylvania, and Wytheville, Virginia, as well as other WABCO assets related to steering gears.
ZF is a German company headquartered in Friedrichshafen, Germany. It has 149,000 employees in 40 countries, and had annual sales of $36.9 billion in 2018, $9.6 billion of which were in the United States.
WABCO is a Delaware corporation with a North American headquarters in Auburn Hills, Michigan, and a global headquarters in Bern, Switzerland. It has 16,000 employees in 40 countries, and had annual sales in 2018 of $3.8 billion, $850 million of which were in the United States.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to John Read, Acting Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing FirearmsRead the Press Release
Jackson, Miss. – Dallas Smith, 59, of Jackson, pled guilty yesterday before U.S. District Judge Carlton W. Reeves to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michele Sutphin with the Federal Bureau of Investigation.
On September 11, 2017, officers with the Jackson Police Department were dispatched to an apartment complex after receiving a shooting complaint. Based upon the statements of eyewitnesses, officers stopped a vehicle in which Dallas Smith was a passenger. Upon questioning, Smith admitted to possessing the pistol and rifle found in the vehicle. Smith also admitted to discharging the firearms at the apartment complex.
Smith has a forgery conviction in Madison County in 2001 and a grand larceny conviction in Rankin County in 2004, and it is illegal for him to possess a firearm. He will be sentenced by Judge Reeves on April 22, 2020.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lynn Murray.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Interstate Drug Trafficker Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Linda Lancon, 30, of Laredo, Texas, was sentenced this morning for her participation in a conspiracy to possess with intent to distribute approximately 35 kilograms of cocaine. Lancon was convicted by a jury following a trial conducted in October of 2019.
United States District Court Judge Terry F. Moorer presided over the trial and the sentencing hearing. Evidence from the trial showed that Lancon was involved in the distribution of methamphetamine, heroin and cocaine during 2016 following an investigation conducted by the Drug Enforcement Administration in Laredo. She was identified as the owner of a vehicle used to deliver drugs for distribution. Agents participating in the investigation also identified her as being present with another member of the drug distribution conspiracy in Texas when drugs were delivered. She was living with a co-conspirator in Laredo who testified that she knew about the drug conspiracy, accompanied him on drug deliveries and counted the drug money. She also knew a source of supply for the drugs in Mexico. Other evidence established that Lancon was in a truck traveling northbound on Interstate 65 in Mobile County when it was stopped by Saraland police for no license plate. During the investigation that followed, officers discovered 35 kilograms of cocaine in the cab of the truck, concealed in a paper box behind the passenger seat. Lancon was the passenger in the truck, and the driver was identified as her co-defendant Victor Estrada. She had disassembled the cell phone Estrada was using to communicate with the people in Atlanta who were to take delivery of the drugs and concealed the parts of the phone in her purse while the officers spoke to Estrada.
In the subsequent investigation conducted by the Department of Homeland Security, a tracking device was discovered in the truck which was traced to a company in Laredo. Business records showed that Lancon opened the account used to track the truck and paid a monthly fee for the service on her credit card. The records also showed several prior trips to the Atlanta area as well as other locations up the East Coast. The records also coincided with information from Lancon’s telephone placing her in the Atlanta area during some of the prior trips. In addition, photographs on Lancon’s phone showed her in possession of large amounts of United States currency being removed from or placed into Federal Express boxes. Finally, records for Lancon’s cellphone showed it had been in contact with Estrada’s phone during 2017 and 2018. Estrada’s phone was the one used to communicate with the recipients of the drugs in Atlanta and the one she disassembled during the traffic stop.
At the sentencing hearing today, Judge Moorer reviewed some of this evidence as support for his decision that a substantial sentence was appropriate for Lancon. The judge found that the other trips documented by the tracker in the truck established that she had participated in the distribution of other drug loads equal to that for which she had been apprehended. The judge also found that, based on the evidence from the trial, she occupied a role in the offense which far exceeded her claim that she was just her co-defendant’s girlfriend. Judge Moorer sentenced Lancon to 300 months’ imprisonment, to be followed by a term of five years supervised release. The judge did not impose a fine, but ordered that she pay the special mandatory assessment of $100. Judge Moorer sentenced Lancon’s co-defendant, Estrada, in October of 2019 to 30 years’ imprisonment following Estrada’s guilty plea to the charges.
The case was investigated by the Saraland Police Department and the Department of Homeland Security investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Humboldt County Resident Sentenced to More Than Six Years in Prison for Illegally Possessing Firearms as A Convicted FelonRead the Press Release
SAN FRANCISCO – Joshua Wentworth was sentenced to 77 months in prison for being a felon in possession of a firearm and ammunition, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge.
Wentworth, 31 of Eureka, pleaded guilty to the charge on October 16, 2019. According to the plea agreement, Wentworth admitted that on May 12, 2019, he possessed seven firearms, including two AR-15 assault rifles and one pistol with an attached Glock switch conversion device. According to documents filed by the government during sentencing, the conversion device made the pistol operate as a fully automatic firearm. In addition to the firearms, Wentworth admitted he possessed over 400 rounds of ammunition, some of which were loaded in various high-capacity magazines, including two 30-round magazines for the assault rifles and a 50-round drum magazine for a .40 caliber pistol. Wentworth also admitted that at the time he possessed the weapons and ammunition, he was a convicted felon and therefore was ineligible to possess the items.
A federal grand jury indicted Wentworth on August 20, 2019, charging him with one count of being a felon in possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1). Wentworth pleaded guilty to the charge.
At the sentencing hearing, Judge Breyer described the nature of the firearms found in the Wentworth’s possession as “scary.” In addition, the government’s sentencing memorandum highlighted text messages in which Wentworth discussed purchasing firearms, his efforts to locate a trailer with a large amount of cash in it, driving to San Francisco to find a “target,” and his need to borrow another person’s bullet proof vest.
In addition to the prison term, Judge Breyer sentenced the defendant to a 3-year period of supervised release and ordered him to pay a $100 special assessment. Wentworth is in federal custody and will begin serving his sentence immediately.
Assistant U.S. Attorney Patrick O’Brien is prosecuting the case with the assistance of Morgan Byrne. The prosecution is the result of an investigation by the FBI, the Humboldt County Sheriff’s Office, and the Humboldt County District Attorney’s Office.
Houlton Man Sentenced on Child Pornography ChargeRead the Press Release
Bangor, Maine: Houlton man was sentenced today in Bangor for possession of child pornography, U.S. Attorney Halsey B. Frank announced.
U.S. District Court Judge Jon D. Levy sentenced Larry O’Neal, 46, to 51 months in prison followed by seven years of supervised release. O’Neal was found guilty on April 26, 2019 following a four-day jury trial.
Court records and trial evidence revealed that O’Neal was found with images of child pornography on his computer in January 2018, when law enforcement executed a search warrant at his home. Agents began investigating O’Neal after his computer was observed on a peer-to-peer file sharing network as having files associated with child pornography.
The investigation was conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Department of Homeland Security’s Office of the Inspector General, the Immigration and Customs Enforcement’s Office of Professional Responsibility, the Customs and Border Protection Office of Professional Responsibility, and the Maine State Police Computer Crimes Unit.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Hope Hull Man Sentenced to Ten Years in Federal Prison for Possession of Child PornographyRead the Press Release
Montgomery, Alabama – On Wednesday, January 22, 2020, Barney Clarence Knotts, 74, who was residing in Hope Hull, Alabama at the time of his arrest, received a ten-year sentence for possession of child pornography, announced United States Attorney Louis V. Franklin, Sr. Following his prison sentence, Knotts will be subject to supervised release for the rest of his life.
According to court documents, Knotts was convicted in 1985 for production of child pornography in Mobile County, Alabama and received a 20-year sentence. In early 2017, he registered his physical address in Hope Hull, Alabama. In February of that year, the National Center for Missing and Exploited Children notified the Alabama Law Enforcement Agency (ALEA) about on-line conversations concerning potential child exploitation from that location. When ALEA agents went to his house, Knotts gave them permission to search his computers where they discovered more than 1,000 child pornography images and discussions about child exploitation. Knotts pled guilty to possession of child pornography in federal court in September 2019.
The Alabama Law Enforcement Agency investigated this case, with assistance from the National Center for Missing and Exploited Children. Assistant United States Attorneys Hollie Reed and Russell Duraski prosecuted the case.
Harvey Man Pleads Guilty to Conspiracy to Commit Bank and Wire Fraud and Aggravated Identity TheftRead the Press Release
NEW ORLEANS, La. – U.S. Attorney Peter G. Strasser announced that CHRISTOPHER WATSON, age 28, has pled guilty on January 22, 2020 to one count of conspiracy to commit bank fraud and wire fraud, and one count of aggravated identity theft, stemming from his arrest in Jefferson Parish in the summer of 2018.
According to Court documents, WATSON pled guilty to an elaborate fraud scheme which involved using stolen or fraudulent identities to obtain vehicle financing. WATSON, who previously worked as a used car salesman, submitted numerous fraudulent loan applications to financial institutions and automobile lenders, sometimes using the personal identifying information of his customers without their authorization and other times using stolen identities. Throughout the course of the conspiracy WATSON used either unauthorized or counterfeit information in order to defraud financial institutions and lenders, including USAA Financial, an FDIC-insured financial institution, Westlake Financial Services, and United Auto Credit Corporation, among other victims. In some instances, WATSON utilized the dealer license numbers and names of different legitimate car dealerships and forged their names as sellers of the vehicles on the fraudulent loan applications.
WATSON agreed that he caused a loss of between $250,000.00 and $550,000.00 based upon his own conduct and the reasonably foreseeable conduct of his co-conspirators in the common scheme to defraud. The maximum penalty that WATSON faces for the conspiracy to commit bank fraud and wire fraud, in violation of Title 18, United States Code, Section 371, is up to five years of imprisonment, followed by up to three years supervised release, and a $250,000 fine.
In addition to the conspiracy charge, WATSON also pled guilty to one count of aggravated identity theft for using the identity of a member of the military to submit a fraudulent auto loan application to USAA Financial. For the aggravated identity theft charge, WATSON faces a two year sentence to be served consecutive to any other sentence imposed, followed by one year of supervised release, and a $250,000 fine.
The Honorable Wendy B. Vitter accepted WATSON’s plea and scheduled his sentencing hearing for April 28, 2020.
U.S. Attorney Peter G. Strasser praised the work of the Jefferson Parish Sheriff’s Office and the United States Secret Service Financial Crimes Taskforce in investigating this matter. Assistant United States Attorney Shirin Hakimzadeh is in charge of the prosecution.
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Harrison County Man Sentenced for Distributing Anabolic SteroidsRead the Press Release
MARSHALL, Texas – A 31-year-old Hallsville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Mark McLean Farmer pleaded guilty on Aug. 16, 2019, to conspiracy to possess with intent to distribute and distribution of anabolic steroids and possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 72 months in federal prison by U.S. District Judge Rodney Gilstrap on Jan. 16, 2020.
According to information presented in court, beginning in August 2018, Farmer began conspiring with others to distribute at least 2,500 units of anabolic steroids. Farmer served as a distributor of the steroids, receiving the drugs from foreign suppliers and then selling them to other dealers and users by way of the internet and through the United States mail. Additionally, Farmer was found to be in possession of a pistol while he was in the process of delivering steroids.
This case was investigated by the DEA Dallas Field Division, Tyler Resident Office and the U.S. Postal Inspection Service, Fort Worth Division. This case was prosecuted by Assistant U.S. Attorneys Colleen Bloss and Jim Noble.
Grand Forks, ND, Man Sentenced to 9 Years in Federal Prison for Possession of Child Pornography.Read the Press Release
Fargo – United States Attorney Drew H. Wrigley announced that on January 23, 2020, U.S. District Court Chief Judge Peter D. Welte sentenced Nicholas Adam Bartholome, age 28, Grand Forks, ND, to serve 9 years in federal prison, followed by 10 years supervised release for Receipt and Possession of Child Pornography. Bartholome was further ordered to pay $200 in special assessments to the Crime Victims’ Fund.
"Child pornography is comprised of crime scene photos where child subjects are horrifyingly victimized every time the photo is shared," said United States Attorney Drew Wrigley, "and the motives of profit and the depravity of sharing and viewing these images fuel an industry that we aim to help eradicate, including by investigating and imprisoning perpetrators like Nicholas Adam Bartholome"
This case came to the attention of law enforcement after an agent assigned to the Internet Crimes Against Children (ICAC) Task Force began investigating individuals trading child pornography on a hidden network. Thereafter, Bartholome downloaded child pornography from computers operating in the network. The investigation revealed that between August 2017 and May 2018, Bartholome made multiple on-line requests for images and videos of known child pornography from others. On June 19, 2018, a search warrant was executed at the Bartholome’s residence in Grand Forks, ND, at which time
various electronic devices were located and seized. Bartholome was interviewed and admitted to using multiple networks to obtain child pornography.
A forensic examination of Bartholome’s electronic devices revealed over 1,100 files of violent child pornography. Bartholome’s collection of images and videos depicted the violent sexual assaults of prepubescent children as young as two years of age. Other images and videos depicted sadistic conduct involving prepubescent children.
United States Attorney Drew Wrigley complimented the outstanding investigative work of this case investigated by Homeland Security Investigation (HSI), North Dakota Bureau of Investigation and the Grand Forks Police Department, and he praised Assistant United States Attorney Jennifer Klemetsrud Puhl for her continued leadership in prosecuting child pornography and exploitation cases.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorney’s Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Gary Man Sentenced to 54 Months in PrisonRead the Press Release
HAMMOND- Brion Harris, 36, of Gary, Indiana, was sentenced before District Court Judge Philip P. Simon following his plea of guilty to possessing a firearm as a previously convicted felon, announced U.S. Attorney Kirsch.
Harris received a sentence of 54 months in prison followed by 1 year of supervised release.
According to documents filed in this case, on January 2, 2019, during a traffic stop in Gary, Indiana, Harris was arrested in possession of two loaded firearms. Harris has a prior felony conviction for possession of a sawed off shotgun.
This case was investigated by the FBI GRIT Task Force and Gary Police Department and was prosecuted by Assistant United States Attorney Caitlin M. Padula.
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Frankfort Man Sentenced to 135 Months for Trafficking AcefentanylRead the Press Release
FRANKFORT, KY- A Frankfort, Kentucky, man, Leonard Glover, 32, was sentenced to 135 months on Thursday by U.S. District Court Judge Gregory VanTatenhove, after previously admitting to possession with the intent to distribute 10 grams of more of acefentanyl.
According to the plea agreement, Glover admitted that on June 11, 2019, he sold 13 grams of acetylfentanyl to a confidential informant in Midway, Kentucky. Glover was apprehended immediately after the exchange.
Glover pleaded guilty in October 2019.
Under federal law, Glover must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge for DEA-Louisville Field Division; and Commissioner Rodney Brewer, Kentucky State Police; jointly announced the sentence.
The investigation was conducted by the DEA. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney David Kiebler.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Founder and Former Chairman of the Board of Insys Therapeutics Sentenced to 66 Months in PrisonRead the Press Release
BOSTON – The founder of Insys Therapeutics, John Kapoor, was sentenced today in federal court in Boston for orchestrating a scheme to bribe practitioners to prescribe Subsys, a fentanyl-based pain medication, often when medically unnecessary.
John Kapoor, 76, of Phoenix, Ariz., was sentenced by U.S. District Court Judge Allison D. Burroughs to 66 months in prison, three years of supervised release, and ordered to pay forfeiture and restitution to be determined at a later date. The government recommended a sentence of 15 years in prison.
In May 2019, Kapoor was convicted by a federal jury of racketeering conspiracy along with four other Insys executives.
As a veteran of the pharmaceutical industry, Kapoor learned that he could profit from developing a spray delivery system for a generic drug, then marketing it as a premium product. Kapoor privately funded Insys as it developed Subsys, which was eventually approved to treat cancer patients suffering intense breakthrough pain. With such significant personal financial investment, Kapoor was committed to ensuring that Insys was successful, and he did so by exercising tight control on all aspects of corporate decision making. Kapoor hired, or authorized the hiring of, several top executives who became co-conspirators in the criminal scheme to bribe practitioners, many of whom operated pain clinics, to prescribe Subsys to patients, often when medically unnecessary
In 2012, Kapoor authorized the use of “speaker programs” purportedly intended to increase brand awareness of Subsys through peer-to-peer educational lunches and dinners. However, the programs were used as a vehicle to pay bribes and kickbacks to targeted practitioners in exchange for increased Subsys prescriptions and increased dosage. Kapoor insisted that profits generated should double the amount of money spent paying doctors. In October 2012, Kapoor instructed the Vice President of Marketing to calculate the return on investment (ROI) for each speaker to determine if the speaker had a “positive ROI.” Practitioners who failed to meet satisfactory prescribing requirements were ousted from the speaker program. Kapoor approved bribing doctors that he knew abusively prescribed opioids.
Kapoor controlled and enforced the criminal scheme on a daily basis during a morning meeting, referred to as the “8:30 call,” which also involved many of his co-defendants. One of the topics discussed was the scheme to bribe doctors. Kapoor routinely discussed the suitability of additional funds, and which doctors were writing prescriptions for Subsys or a competitive drug.
Kapoor knew that the success of Insys depended on insurers approving payment for Subsys. In October 2012, Kapoor approved the creation of a pilot program, the “Insys Reimbursement Center” (IRC), which was dedicated to obtaining prior authorization for payment directly from insurers and pharmacy benefit managers. To do so, employees of the IRC posed as employees of the practitioner and used a script of false and misleading representations about patient diagnoses in order to secure approval for the drug by the insurance provider. For example, since insurers were more likely to authorize payment for Subsys if a patient was being treated for cancer-related pain, IRC employees were instructed to mislead insurers regarding the true diagnosis of the patient. Kapoor approved these tactics, and demanded a 100% success rate.
“Out of pure greed, Insys executives, from John Kapoor on down, bribed doctors to prescribe this powerful and highly addictive narcotic to people who did not need it. Despite increasing public fears of a drug epidemic fueled by pain pill prescriptions, these defendants, led by Kapoor, ploughed ahead, setting weekly quotas for doctors on their payroll, urging them to prescribe Subsys in higher and higher doses, all so they could make millions of dollars at patients’ expense. Their disregard for the public’s health and safety is nothing short of appalling. This case is not only about punishing these defendants. It is also about making the next pharmaceutical company think twice about its sales tactics and the basic corporate responsibility to not victimize the public,” said United States Attorney Andrew E. Lelling. “This was a landmark prosecution that successfully held accountable a pharmaceutical company’s top executives for their roles in the illicit marketing and prescribing of opioids.”
“John Kapoor and his loyal lieutenants minimized their actions and distanced themselves from the harm they were committing on patients whose lives they ultimately ruined, and now all of them are finally being held accountable for their criminal conduct,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Their downfall illustrates the FBI’s commitment to attacking the ongoing opioid crisis from every angle, and we will continue to identify and dismantle criminal enterprises like this one to ensure those who are responsible for patient care are taking care of patients, and not themselves.”
“These sentences undoubtedly send a clear message to health care executives relying on illegal schemes to increase profits: they will be held accountable for corporate crimes. The reckless and dangerous violation of law by these pharmaceutical executives is extremely serious, and we will not tolerate those who put profits above the well-being of patients. We will continue to attack the opioid crisis from all angles, including holding the pharmaceutical industry and its leadership accountable,” said Phillip Coyne, Special Agent in Charge of the U.S Department of Health and Human Services, Office of the Inspector General.
“The FDA continues to respond forcefully to the ongoing opioid epidemic – one of the largest public health tragedies our country has faced – by ensuring the safe and appropriate use of these powerful medications. But bribing healthcare providers to prescribe this most powerful type of opioid – an immediate release form of fentanyl – is not only unacceptable, it puts patients at serious risk of overdose and potentially death,” said Judith McMeekin, Acting Associate Commissioner for Regulatory Affairs at the U.S. Food and Drug Administration. “This conduct cannot be tolerated, and the FDA remains fully committed to working with our law enforcement partners to bring to justice those who place profits before the public’s health.”
“The reckless actions by this executive whose product included controlled medications increased the potential for diversion and addiction, which jeopardizes the public health and safety,” said Drug Enforcement Administration Special Agent in Charge Brian D. Boyle. “DEA pledges to work with our law enforcement and regulatory partners to ensure that rules and regulations are followed.”
“Ensuring the integrity of TRICARE and combating the dangers posed to military members and their dependents by improperly prescribed opioids are top priorities for the Defense Criminal Investigative Service (DCIS),” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “Today's sentencing marks the successful conclusion of this investigation and demonstrates the DCIS’ ongoing commitment to work with its law enforcement partners and the USAO-MA to identify, investigate and prosecute individuals and pharmaceutical companies that seek to fraudulently profit at the expense of patients.”
“John Kapoor and the other executives in this case criminally conspired to place profits before patients, all to drive sales of a highly potent and addictive opioid. The prosecution of these pharmaceutical executives demonstrates that healthcare fraud will not be tolerated. The Employee Benefits Security Administration will continue collaborating with our law enforcement partners in these important investigations to protect participants in private sector health plans, detect and deter health care fraud, and contribute to fighting the opioid epidemic,” said Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office.
“Today’s sentence is the result of a coordinated investigation by law enforcement agencies who are committed to ending the nation’s opioid crisis,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “Insys Therapeutics executives profited by offering bribes and kickbacks in exchange for prescriptions of a highly addictive fentanyl spray. These practices put the health of the American public at risk and jeopardized the integrity of our mail system.”
“The defendants in this investigation put the company’s bottom line before the welfare of the patients who were in need of genuine care,” said Matt M. Modafferi, Special Agent in Charge of U.S. Postal Service Office of Inspector General. “The sentences imposed on the defendants will serve as a reminder that there are severe consequences when individuals and companies use these type of tactics in order to drive up their pharmaceutical sales. I commend the U.S. Attorney’s Office and our law enforcement partners for their tireless efforts leading up to and through the successful ten week trial of the defendants.”
“These sentences not only hold the defendants accountable, they demonstrate the ongoing commitment of VA OIG to ensure the safety and integrity of VA healthcare programs. VA OIG and its law enforcement partners will continue to vigorously investigate healthcare fraud at VA and hold accountable anyone who puts the well-being of veterans, their dependents, or the public at risk,” said Acting SAC Jeff Stachowiak.
Thomas W. South, Deputy Assistant Inspector General for Investigations, OPM OIG said: “There is no doubt that the unscrupulous practices of Insys Therapeutics and its founder John Kapoor have fueled the devastating national opioid epidemic. We are incredibly proud to have been a part of this groundbreaking case and I applaud the exceptional work of our investigators and law enforcement partners. Bribing physicians across the country to overprescribe Subsys risked the lives of thousands of patients and today’s sentencing is an important step toward accountability and justice.”
Assistant U.S. Attorneys K. Nathaniel Yeager, Fred M. Wyshak and David G. Lazarus prosecuted the case for Lelling’s Health Care Fraud Unit.
Founder of Meridian Capital Asset Management Sentenced to Two Years in Prison for Stealing over $1 Million of Investor FundsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOHN GERACI was sentenced today in Manhattan federal court to 24 months in prison for conspiring to commit securities and wire fraud. GERACI participated in a scheme to defraud investors in his company, Meridian Capital Asset Management. GERACI caused two clients (“Victim-1” and “Victim-2”) to invest in a hedge fund through his company called the Meridian Matrix Long Short Fund (the “Meridian Matrix Fund”). Between in or about December 2015 and November 2016, GERACI provided fictitious account statements and updates to Victim-1 and Victim-2, telling them that their investment was worth millions when, in reality, GERACI knew that large portions of it had been stolen by the Meridian Matrix Fund’s co-founder, Nicholas Mitsakos. GERACI eventually liquidated the Meridian Matrix Fund and misappropriated significant portions of the remaining funds. Although GERACI had stolen over $1 million of Victim-1 and Victim-2’s investment for himself, GERACI falsely told them that their entire investment had been taken by Mitsakos. GERACI used the stolen money to pay his own personal and business expenses.
GERACI pled guilty on October 3, 2019, and was sentenced by United States District Judge Alison J. Nathan.
U.S. Attorney Geoffrey S. Berman said: “John Geraci lied to his clients about their investment with Nicholas Mitsakos, and later concealed that he had recovered a significant portion of their investment from Mitsakos. Now Geraci, like Mitsakos before him, is headed to prison.”
According to the Complaint, the Indictment, and other statements made in open court:
GERACI was the principal and founder of Meridian Capital Asset Management. In or about February 2015, GERACI was introduced to Nicholas Mitsakos, who purported to operate a hedge fund called Matrix Capital (“Matrix”). Mitsakos told GERACI that Matrix had tens of millions of dollars under management and had achieved annual returns between 19.4% and 66.3% from 2012 to 2014. GERACI and Mitsakos subsequently entered into an arrangement whereby GERACI would raise money for Mitsakos, Mitsakos would manage that money through a new vehicle, the Meridian Matrix Fund, and GERACI and Mitsakos would then split any fees that the Meridian Matrix Fund generated. As part of this arrangement, GERACI solicited Victim-1 and Victim-2 to invest approximately $2 million in the Meridian Matrix Fund, in large part by relying on Mitsakos’s claims about his supposed fund’s assets under management and performance returns.
By in or about December 2015, however, GERACI learned that Mitsakos had only invested approximately $1.2 million of Victim-1 and Victim-2’s investment, and had misappropriated significant portions of the remaining money. GERACI also learned that Mitsakos never had any actual assets under management, and that his performance returns were accordingly fictitious and misleading. Nonetheless, GERACI never told Victim-1 or Victim-2 that their investment was in jeopardy or had been solicited with misleading information. To the contrary, GERACI sent Victim-1 and Victim-2 updates that hid Mitsakos’s misappropriation and falsely claimed that their investment had appreciated. GERACI sent these fictitious updates even after GERACI had liquidated the Meridian Matrix Fund’s trading positions in or about June 2016. Beginning in or about November 2015, GERACI also misappropriated hundreds of thousands of dollars of Victim-1 and Victim-2’s money for himself.
In or about August 2016, Mitsakos was charged in this District with securities fraud and other offenses. In or about September 2016, GERACI changed course: Instead of providing fictitious account updates to Victim-1 and Victim-2, GERACI told them, in substance and in part, that their entire investment had been wiped out through Mitsakos’s fraud. GERACI did this even though he had ultimately received approximately $1.1 million of Victim-1 and Victim-2’s investment back from Mitsakos, including after liquidating the Meridian Matrix Fund’s trading positions. Rather than returning this amount to Victim-1 and Victim-2, GERACI used it to pay for his own personal and business expenses, including, for example, payments on a BMW automobile, a gym membership, gas, groceries, travel expenses, and his cellphone bill.
In addition to sending false account updates to Victim-1 and Victim-2 even after learning that Mitsakos had lied about his fund’s assets and performance and that Mitsakos had stolen significant portions of Victim-1 and Victim-2’s investment, GERACI continued to try to raise money from others for an investment related to the Meridian Matrix Fund. In attempting to do so, moreover, GERACI relied on the same representations about Matrix’s assets and performance that he knew to be false.
Mitsakos pled guilty to conspiring to commit securities fraud and wire fraud on May 25, 2017, and was sentenced on November 7, 2017, to 30 months in prison by the Honorable Denny Chin, a judge on the United States Court of Appeals for the Second Circuit who was sitting by designation in the Southern District of New York.
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In addition to the prison sentence, GERACI, 62, was sentenced to three years of supervised release. The Court further ordered GERACI to forfeit a sum of $1,098,971.38 and to pay restitution to the victims of the offense.
Mr. Berman praised the investigative work of the United States Postal Inspection Service and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Jared Lenow and Drew Skinner are in charge of the prosecution.
Fort Wayne Man Found Guilty After Three-Day TrialRead the Press Release
FORT WAYNE – Edwin Calligan, age 43, of Fort Wayne, Indiana was convicted of being a felon in possession of a firearm, importing a detectible amount of 5F-adb (synthetic cannabinoid) into the United States and attempted possession with intent to distribute 5F-adb., announced U.S. Attorney Kirsch.
U.S. District Court Judge Holly Brady presided over this three day jury trial.
According to documents presented in this case, in June of 2017, a federal search warrant was executed in Fort Wayne where several firearms were found in addition to ammunition. Calligan has a felony conviction for Attempted Murder and Criminal Reckleness which exclude him from legally possession a firearm or ammunition. Over the course of the investigation, several parcels were seized by Custom Border Protection, which contained the illegal substance, 5f-adb that been imported from China/Hong Kong.
Calligan’s sentencing will be set by separate order.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Department of Homeland Security Investigations, United States Custom and Border Protection, with the assistance of United States Postal Inspection Service, Allen County Drug Task Force, Allen County SWAT team, and the Indiana State Police. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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Fort Hall Man Sentenced in Truck Driver AssaultRead the Press Release
POCATELLO - Stormy Ray Adakai, 24, of Fort Hall, Idaho, was sentenced in U.S. District Court to 57 months in federal prison for assault resulting in serious bodily injury, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered that Adakai serve three years of supervised release following his prison sentence. Adakai pleaded guilty to the charge on October 23, 2019. Adakai served six months on the same charge in tribal jail, therefore the Court reduced the original 63-month sentence to give him credit for time served.
According to court records, in the early morning of September 2, 2018, the Fort Hall Police were notified of a truck driver who had been assaulted while inside his semi-truck parked near the TP Gas Station on Ross Fork Road, in the area of the Fort Hall Casino, on the Fort Hall Indian Reservation. The victim told police that, while he was asleep in his truck’s cab, an unknown male, later identified as Adakai, broke into the cab and assaulted him. Adakai demanded money and struck the victim repeatedly with rocks. The victim stated that during the assault he tried to scratch the assailant’s face. As a result of the assault, the victim was hospitalized overnight and suffered a broken nose, a broken orbital (eye) bone and a brain hemorrhage. The victim also had seizures as a result of the brain hemorrhage. The treating physician stated that the injuries created a substantial risk of death, extreme physical pain and a protracted and obvious disfigurement.
According to court records, video from a nearby camera showed an individual getting into the cab of the truck through the passenger-side door but the lighting and video quality were too poor to make an identification of the subject. A hat not belonging to the victim was later found in the truck. Fort Hall Police detectives and FBI agents later talked to a witness who said he knew that Adakai had committed the assault because he saw Adakai shortly after the assault occurred. Adakai was at a residence lying on the floor, breathing heavily as if he had been running, and had blood all over him and scratches on his face. He was also intoxicated. Adakai told the witness that he had beat up a trucker and had used rocks to assault the man.
Detectives and agents later interviewed Adakai at his residence. Adakai gave a full confession and admitted that he had assaulted the trucker. He said that he picked up rocks nearby and used those rocks to beat the trucker. He stated that he was intoxicated and wanted money from the victim. Adakai admitted that he was wearing the hat which was found inside the truck after the assault.
This case was investigated by Federal Bureau of Investigation and Fort Hall Police Department.
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Former Turtle Creek Resident Pleads Guilty to Narcotics TraffickingRead the Press Release
PITTSBURGH, PA -A former resident of Turtle Creek, Pennsylvania, pleaded guilty in federal court to a charge of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Jerry Coker, 28, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of a mixture of fentanyl and heroin before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on September 11, 2016, Coker’s sister and codefendant, Marleka Robinson, obtained a large quantity of fentanyl from a distributor in the Knoxville section of Pittsburgh at Coker’s request. Robinson returned the drugs to the residence she shared with Coker and their other sister, codefendant Monique Robinson. A search warrant executed at the Coker residence the following day resulted in the seizure of more than 285 grams of fentanyl and small quantities of heroin, cocaine, and marijuana. Drug packaging, weighing, and distributing materials were found strewn through the house, along with two Smith & Wesson pistols and $8,900 in cash, all of which was seized by law enforcement.
Judge Bissoon scheduled sentencing for May 18, 2020 at 2:15 p.m. The defendant will remain incarcerated pending the sentencing hearing. The law provides for a total sentence of not less than 10 years to life in prison, a fine of $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Coker has a prior conviction for a serious felony drug offense and, as such, he is subject to enhanced penalties.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Coker.
Former Insys Therapeutics Vice President of Sales Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – The former Vice President of Sales of Insys Therapeutics was sentenced today in federal court in Boston for his role in a nationwide conspiracy to bribe medical practitioners to unnecessarily prescribe a fentanyl-based pain medication and defraud healthcare insurers.
Alec Burlakoff, 46, of West Palm Beach, Fla., was sentenced by U.S. District Court Judge Allison D. Burroughs to 26 months in prison, three years of supervised release, and ordered to pay restitution and forfeiture to be determined at a later date. In November 2018, Burlakoff pleaded guilty to one count of racketeering conspiracy and agreed to cooperate with the government.
In May 2019, five top executives including the Founder of Insys, John Kapoor, were convicted by a federal jury of racketeering conspiracy.
From May 2012 to December 2015, Burlakoff and his co-conspirators used various methods to bribe medical practitioners, many of whom operated pain clinics, to prescribe Subsys to patients, often when medically unnecessary. Subsys, a drug owned and manufactured by Insys Therapeutics, Inc., is a powerful, fentanyl-based pain medication approved to treat cancer patients suffering intense breakthrough pain.
One method employed by Burlakoff and his co-conspirators was the Insys Speaker Program (ISP), which was used as a vehicle to bribe doctors and other clinicians to prescribe Subsys to their patients. Insys sales representatives targeted and promised medical professionals the opportunity to be paid as Insys speakers if they wrote prescriptions for Subsys. The more prescriptions written for Subsys – and the higher the dose – the more speaking opportunities were awarded and more money paid to the practitioners. In many instances, the programs were shams.
At trial, Burlakoff testified about the methods used at Insys to induce doctors and nurse practitioners to prescribe Subsys in exchange for bribe payments. Burlakoff also described Insys’ practice of targeting medical practices known for suspect prescribing standards, commonly referred to as “pill mills”:
“[P]ill mills for us meant dollar signs. That's what we saw, dollar signs. It was not run the other way. It was run to the pill mill.”
Burlakoff also testified about the internal tracking Insys conducted to measure the effectiveness of the bribe payments:
“‘Return on investment’ means a successful bribe, an increase in Subsys prescriptions based on the speaker money we have paid the doctor, the speaker.”
The defendants also conspired to mislead and defraud health insurance providers who were reluctant to approve payment for Subsys when it was prescribed for non-cancer patients. The defendants achieved this by setting up the “Insys Reimbursement Center,” (IRC) which was dedicated to fraudulently obtaining prior authorization for payment directly from insurers and pharmacy benefit managers.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S Department of Health and Human Services, Office of the Inspector General; Judy McMeekin, Pharm.D. Acting Associate Commissioner for Regulatory Affairs of the U.S. Food and Drug; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office; Jeffrey K. Stachowiak, Acting Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General; and Thomas W. South, Deputy Assistant Inspector General for Investigations of the Office of Personnel Management made the announcement.
Assistant U.S. Attorneys K. Nathaniel Yeager, Fred M. Wyshak and David G. Lazarus prosecuted the case for Lelling’s Health Care Fraud Unit.
Fayetteville Man Sentenced to over 15 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas; announced today that Richard Elmo Warren, age 41, was sentenced today to 188 months in federal prison followed by four years of supervised release on one count of Possession of Methamphetamine with Intent to Distribute. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing today in the United States District Court in Fayetteville.
In April of 2019, officers with the Fourth Judicial District Drug Task Force observed Warren leaving a residence in Fayetteville, AR, which is within the Western District of Arkansas. Once Warren’s identity was confirmed, a traffic stop was initiated. Prior to making contact with the officers, Warren fled on foot and was ultimately apprehended and taken into custody. Search incident to Warren’s arrest, detectives located a large amount of a methamphetamine mixture that was divided into individual baggies.
The methamphetamine was subsequently sent to the DEA Southeast Laboratory in Miami, Florida and tested positive for 222 grams of methamphetamine.
Warren was indicted by a federal grand jury in May of 2019 and entered a guilty plea in August of 2019.
This case was investigated by the Arkansas Fourth (4th) Judicial District Drug Task Force. Assistant United States Attorney David Harris prosecuted the case for the Western District of Arkansas.
Fayetteville Man Sentenced to over 11 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Adam Lee Facundo, age 26, was sentenced to 140 months in federal prison followed by five years of supervised release on one count of Distribution of More Than 50 grams of Actual Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings today in the United States District Court in Fayetteville.
In December of 2018, the Drug Enforcement Administration launched an investigation on Facundo for drug trafficking in the Western District of Arkansas. In February of 2019, detectives with the Drug Enforcement Administration conducted a controlled purchase of methamphetamine from Facundo.
The methamphetamine purchased was subsequently sent to the DEA laboratory in Miami and tested positive for 141 grams of pure methamphetamine.
Facundo was indicted by a federal grand jury in June of 2019 and entered a guilty plea in September of 2019.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney David Harris prosecuted the case for the Western District of Arkansas.
Fayetteville Man Sentenced to More Than 16 Years for Heroin DistributionRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that United States District Judge Louise W. Flanagan sentenced JOHN ELWOOD TYRONE MARTIN, 48, of Fayetteville, NC, to 198 months imprisonment followed by 5 years of supervised release.
On March 29, 2019, MARTIN was named in a one-count Criminal Information charging him with conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin. On May 3, 2019, MARTIN pled guilty to the charge.
On November 4, 2016, a task force officer (TFO) with the Federal Bureau of Investigation (FBI) in Fayetteville, North Carolina, was contacted by a confidential source (CS #1) regarding MARTIN. According to CS #1, MARTIN stated that he could supply the city of Fayetteville with heroin and boasted about selling kilograms of heroin for $75,000. MARTIN also provided CS #1 with 0.4 gram of heroin, which CS #1 turned over to investigators.
On May 31, 2018, at the direction of members of the Fayetteville Police Department (FPD) and FBI, a second confidential source (CS #2) arranged to purchase 200 grams of heroin from MARTIN. Shortly thereafter, MARTIN arrived at CS #2’s residence where detectives with the FPD’s Violent Criminal Apprehension Unit and Narcotics Unit were waiting in undercover surveillance vehicles.
As MARTIN pulled into the driveway of the residence, agents exited their vehicles and began to approach MARTIN’S vehicle. When MARTIN observed the approaching detectives, he placed his vehicle in drive and accelerated his vehicle in the direction of the detectives, causing them to move out of the path of the vehicle. MARTIN drove toward the rear of the residence, where his flight was halted due to trees and a fence surrounding the property.
When MARTIN’s vehicle came to a stop, MARTIN opened the driver’s side door and attempted to destroy a large quantity of heroin and fentanyl by tearing open several bags and shaking out the contents creating a cloud of the powder. As a result, several of the arresting detectives were exposed to the heroin and fentanyl and subsequently transported to Cape Fear Valley Hospital to be evaluated. MARTIN was taken into custody and transported to the FPD.
CS #2 informed law enforcement agents that he had once obtained more than 1 kilogram of heroin from MARTIN during the course of approximately six transactions.
Finally, law enforcement determined that while MARTIN was on release and pending sentencing in this case, he continued to distribute controlled substances in the Fayetteville, North Carolina area.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF) named Operation La Vida Loca. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
That effort has been implemented through the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Federal Bureau of Investigation and the Fayetteville Police Department investigated this case. Assistant United States Attorney Scott A. Lemmon prosecuted this case for 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.
Extradited Former Air Cargo Executive Pleads Guilty for Participating in a Worldwide Price-Fixing ConspiracyRead the Press Release
Maria Christina “Meta” Ullings, the former senior vice president of cargo sales and marketing for Martinair N.V. (Martinair Cargo) and a Dutch national, pleaded guilty for her role in a long-running air cargo price-fixing conspiracy, the Department of Justice announced.
Ullings’ extradition is the second extradition on an antitrust charge. A fugitive for almost 10 years, Ullings was apprehended by Italian authorities in July 2019 while visiting Sicily. Ullings initially contested extradition in the Italian courts, but after the Court of Appeals of Palermo ruled that she be extradited, she waived her appeal. She arrived in Atlanta on Jan. 10, 2020, and made her initial appearance on Jan. 13 in the U.S. District Court for the Northern District of Georgia. Ullings was sentenced to 14 months in prison with credit for the time she was held in the custody of the Italian government pending her extradition. She has also been sentenced to pay a $20,000 criminal fine.
“Today’s guilty plea demonstrates the Antitrust Division’s commitment to bringing those who violate the antitrust laws – wherever located – to justice,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Antitrust Division and its partners are committed to rooting out international price-fixing cartels that cheat American consumers and producers.”
“The ultimate loser in price fixing schemes is the American consumer,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “Individuals and companies that feel like they don’t need to follow the rules should understand the FBI and our federal law enforcement partners will pursue anyone who threatens our economy and our citizens. We are committed to exposing these cases of corruption in the United States and around the world.”
Ullings pleaded guilty to conspiring with others to suppress and eliminate competition by fixing and coordinating certain surcharges, including fuel surcharges, charged to customers located in the United States and elsewhere for air cargo shipments. These air cargo shipments included heavy equipment, perishable commodities, and consumer goods destined for American consumers and shipped by American producers. Ullings participated in the conspiracy from at least as early as January 2001 until at least February 2006.
Including Ullings, a total of 22 airlines and 21 executives have been charged in the Justice Department’s investigation into price fixing in the air transportation industry. To date, more than $1.8 billion in criminal fines have been imposed and eight executives have been sentenced to serve prison time.
The investigation into the air transportation industry has been conducted by the Antitrust Division, the FBI, the Department of Transportation’s Office of the Inspector General, and the U.S. Postal Service’s Office of the Inspector General. Assistance with the extradition was provided by the Department of Justice Criminal Division’s Office of International Affairs and the U.S. Marshals Service. Anyone with information concerning price fixing or other anticompetitive conduct is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.html.
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.
Elkins business owner sentenced for tax fraudRead the Press Release
ELKINS, WEST VIRGINIA – Rocky A. Tingler, of Elkins, West Virginia, was sentenced today to six months incarceration for tax fraud, U.S. Attorney Bill Powell announced.
Tingler, age 54, owner of McWilliams Building & Construction in Elkins, pled guilty to one count of “False Statement on Personal Tax Return” and one count of “Failure to Pay Over Employment Taxes” in July 2019. Tingler admitted to understating the gross receipts or sales on his 2015 individual tax return by more than $988,000. He also admitted to collecting $790 in federal income tax from his employees at the construction business when the amount should have been $25,706 during the third quarter of 2014.
As a part of the plea agreement, Tingler stipulated to between $250,000-$550,000 in criminal tax loss. Tingler agreed to repay his tax liability to the IRS.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Internal Revenue Service Criminal Investigation investigated.
U.S. District Judge Thomas S. Kleeh presided.
DynCorp Pays $1.5M to Resolve Kickback AllegationsRead the Press Release
ALEXANDRIA, Va. – DynCorp International, LLC (DynCorp), located in McLean, has agreed to pay $1.5 million to settle civil fraud allegations involving two former DynCorp officials, Wesley Aaron Struble and Jose Rivera, who solicited and accepted kickbacks from an Iraqi subcontractor in connection with DynCorp’s lease of property for its operations in Baghdad, Iraq on behalf of the U.S. Department of State.
Struble and Rivera previously pleaded guilty in the Eastern District of Virginia to violating the Anti-Kickback Act for their role in soliciting and accepting at least $390,000 in cash kickbacks from the Al-Qarat Company in exchange for influencing DynCorp’s lease of property in Baghdad at a lease amount higher than the previous lease. The lease costs were included with services for international civilian policing that DynCorp billed under a U.S. Department of State contract in 2011 and 2012.
The settlement resolves the alleged liability of DynCorp for violation of civil penalties under the Anti-Kickback Act and the civil False Claims Act arising out of Struble’s and Rivera’s fraudulent conduct while employed by DynCorp.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Department of State Office of Inspector General, and the Federal Bureau of Investigation.
The matter was investigated by Assistant U.S. Attorney Christine Roushdy. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Dominican National Pleads Guilty to Identity Theft and Stealing MassHealth BenefitsRead the Press Release
BOSTON – A Dominican national formerly residing in Lawrence pleaded guilty on Tuesday, Jan. 21, 2020, in federal court in Boston to Social Security and benefit fraud.
Cesar Franco Lara, 37, pleaded guilty to one count of false representation of Social Security number and one count of theft of government money. Pursuant to the plea agreement, Franco Lara will receive a sentence of 20 months in prison. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for May 13, 2020.
On Aug. 5, 2016, Franco Lara applied for a Massachusetts identification card using the name, date of birth and Social Security number of a United States citizen born in Puerto Rico. On Aug. 18, 2016, he used that Massachusetts identification card to apply for and receive nearly $3,500 of MassHealth benefits in the U.S. citizen’s name. In an effort to determine the true identity of the defendant, law enforcement found a non-immigrant visitor visa application bearing the defendant’s photograph and fingerprints. This application was refused by the Department of State in 2015. When arrested on federal charges, Franco Lara had on him a MassHealth ID card in the U.S. citizen’s name. His fingerprints were found to be a match of the fingerprints on file from the refused visa application.
The charges of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000, restitution and forfeiture. The charge of theft of government funds provides for a sentence of up to 10 years in prison, three years supervised release, a fine of $250,000, restitution and forfeiture. Franco Lara will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip Coyne, Special Agent in Charge of Department of Health and Human Services, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Vital assistance was provided by the U.S. Marshals Service’s Fugitive Task Force. Assistant U.S. Attorneys Lindsey E. Weinstein and David G. Tobin of Lelling’s Major Crimes Unit are prosecuting the case.
Convicted Felon in Possession of a Firearm in School Zone Sentenced to 10 Years in Federal PrisonRead the Press Release
Memphis, TN – Herbert Graham, 32, has been sentenced to 120 months in federal prison for being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on January 30, 2018, Memphis Police Officers responded to a burglary/aggravated assault call on Kimbark Woods Drive. The residents advised they observed a family friend, Herbert Graham, steal a laptop from their back bedroom and escape through the window. The victims searched the neighborhood until they located Graham walking toward Raleigh Lagrange. They demanded Graham return the laptop; instead Graham pulled a firearm out of his pants, pointed the weapon and threatened to kill them. The victims left and notified law enforcement.
As officers made the scene, they observed Graham walking on Chiswood Street with the laptop in hand. Graham saw the officers, dropped the laptop and fled from police onto the school property of Memphis Rise Academy. Officers gave chase and observed Graham toss a magazine and a gun on the ground. A faculty member observed the firearm on school grounds and an immediate lock down of the school was put in place to ensure the safety of the students. Minutes later, Graham was apprehended on the school campus. The firearm and magazine were recovered near the gymnasium and music room.
The magazine was loaded with 15 live rounds and the gun held one live round in the chamber. The gun, a Smith and Wesson 9mm pistol was reported stolen in 2016, out of Shelby County. Graham has prior convictions for aggravated burglary and aggravated assault, as well as a prior conviction for being a convicted felon in possession of a handgun.
On January 22, 2020, U.S. District Court Judge Sheryl H. Lipman sentenced Graham to 120 months in federal prison followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger and threat to the community. Under our PSN initiative, we focus on removing firearms from the hands of prohibited persons, and removing dangerous felons from our streets. Clearly, this felon had no hesitation in committing a violent crime with a firearm and further endangering school faculty and students. He will now be rightly punished and incapacitated for 10 years for his recidivist threatening behavior with a gun.
This case was investigated by the Project Safe Neighborhoods (PSN) Task Force, which includes the U.S. Attorney’s Office; the Shelby County District Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through targeted investigations and aggressive prosecution.
Assistant U.S. Attorneys Raney Irwin and Marques Young prosecuted this case on behalf of the government.
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Convicted Felon Sentenced to Federal Prison After Attempting to Sell A Firearm to A Licensed Gun DealerRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Zane C. Brassfield (25, Tampa) to two years and four months in federal prison for being a felon in possession of a firearm.
Brassfield had pleaded guilty on October 22, 2019.
According to court documents, Brassfield brought a .50 caliber rifle to a gun store and attempted to sell the firearm to the licensed dealer. However, store employees declined to purchase the firearm from him. Upon leaving the store, Brassfield left the rifle by a trash can outside, where it was recovered. As a previous convicted felon, Brassfield is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Callan Albritton.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Columbus Man Sentenced to 5 Years for Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced Danielle W. Henke, age 47, was sentenced today in federal court in Omaha, Nebraska, for Conspiracy to Possess and Distribute Methamphetamine. United States District Court Judge Robert F. Rossiter, Jr. sentenced Henke to 60 months’ imprisonment. Henke also relinquished any right or claim he had to the money seized during the investigation. After completing his term of imprisonment, Henke will be required to complete a four-year term of supervised release.
In October of 2016, a cooperating witness working with law enforcement obtained quantities of methamphetamine from Henke inside of his Columbus residence. As a result, a search warrant was executed on Henke’s residence on October 13, 2016. Officers discovered more than 50 grams of actual methamphetamine, evidence of drug dealing, and more than $3,000 in U.S. currency.
This case was investigated by the Columbus Police Department.