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2 March 2020
Wisconsin Falconer Sentenced for Bartering Migratory Bird Taken from the WildRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that James Kitzman, 69, Oak Creek, Wisconsin, was sentenced today by U.S. Magistrate Judge Stephen L. Crocker for engaging in a conspiracy to violate the Lacey Act with Edward Taylor, who was a falconer from Michigan. Kitzman pleaded guilty to the charge on December 30, 2019.
Magistrate Judge Crocker ordered that Kitzman not engage in the sport of falconry for three years beginning today, and advised Kitzman that if he violated the three-year ban, he risked being charged with a felony and held in contempt of a court order. The magistrate judge also imposed a fine of $15,000 payable to the Lacey Act Reward Fund, which Kitzman paid immediately. Finally, the magistrate judge ordered that Kitzman forfeit to the government his Toyota pickup truck that he used to transport the illegally bartered goshawk.
Kitzman and his co-conspirator, Edward Taylor, arranged to barter a northern goshawk taken from the wild in Vilas County, Wisconsin in exchange for a captive-bred Finnish goshawk. It was part of the conspiracy that they covered up the receipt and transport of the northern goshawk from Wisconsin to Michigan, in violation of the Migratory Bird Treaty Act (MBTA) and the Lacey Act. It is illegal to sell or barter northern goshawks because they are migratory birds and protected by the MBTA.
Specifically, on May 26, 2017, Kitzman took from the wild a female northern goshawk from a nest located on state land in Vilas County. Kitzman traded the northern goshawk for a Finnish goshawk from Taylor. Both Taylor and Kitzman filled out false reports with the Michigan DNR and Wisconsin DNR to cover up their actions. Kitzman told his associates to “keep it hush-hush and not tell anybody” that he was giving the female northern goshawk to Taylor. Kitzman also told Taylor to use a cover story if ever asked by authorities about how the northern goshawk was taken and transferred.
At today’s sentencing, Magistrate Judge Crocker observed that Kitzman appeared to be an exceptional falconer that somehow went off the beaten path which, while tragic, was entirely avoidable. The magistrate judge noted, “The public need to know that the Lacey Act matters; the falconry rules matter. These laws are in place to protect the falconry birds, and the public needs to know this message -- the U.S. Fish and Wildlife Service, and the government -- has their back.” The magistrate judge added, “If you break these rules, you will be punished, no matter how good a falconer you are.”
Edward Taylor was sentenced on February 25, 2020. He received a fine of $10,000 and was ordered to transfer the illegally taken northern goshawk to the government so that it could be placed with a wildlife rehabilitator for its eventual release back into the wild.
The charges against Taylor and Kitzman were the result of an investigation conducted by law enforcement agents with the U.S. Fish & Wildlife Service, Wisconsin Department of Natural Resources Bureau of Law Enforcement, and the Michigan Department of Natural Resources. The prosecution of this case has been handled by Assistant U.S. Attorney Daniel J. Graber.
Webster County Man Sentenced to Federal Prison for Drug and Gun ConvictionsRead the Press Release
A man who distributed cocaine and possessed a firearm during and in furtherance of drug trafficking was sentenced to more than 5 years in federal prison.
Quinn Schleimer, 22, from Fort Dodge, Iowa, pled guilty on October 22, 2019, to two counts of distribution of cocaine and one count of possession of a firearm during a drug trafficking crime.
At the plea hearing, Schleimer admitted that on three occasions in 2017 he distributed 1/8 ounce of powder cocaine to an individual cooperating with law enforcement. Schleimer also admitted to selling about 4 ½ ounces of cocaine and 10 pounds of marijuana in 2017. During a search of Schleimer’s residence, officers seized two loaded shotguns, one of which had its barrel sawed off.
Schleimer was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Schleimer was sentenced to 61 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Schleimer is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Fort Dodge Police Department, Iowa Division of Criminalistics Laboratory, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3051. Follow us on Twitter @USAO_NDIA.
USC Agrees to Comply with Federal Law by Expanding the USC Hotel’s Accessibility for Individuals with Mobility DisabilitiesRead the Press Release
LOS ANGELES – The University of Southern California has agreed to resolve allegations that it violated the Americans with Disabilities Act (ADA) at its USC Hotel adjacent to its campus by failing to provide a wheelchair-accessible room to a customer who needed one.
An individual who uses a wheelchair because of his disability initiated this federal complaint. The man required an accessible room with a roll-in shower, according to the settlement agreement. The complainant alleged that he used an online reservation system to book a room at the 240-room hotel, then known as the Radisson Hotel Los Angeles Midtown at USC or USC Radisson, anticipating that an accessible room would be available. He also alleged that when he arrived, he was unable to stay at the hotel because the hotel’s only wheelchair accessible room with a roll-in shower was occupied.
The United States investigated this case and determined that as of March 2018, the hotel had an insufficient number of accessible guest rooms with mobility features as defined by federal law.
The settlement agreement ensures that individuals with mobility disabilities who wish to stay at the USC Hotel can book accessible guest rooms. USC has agreed to renovate the hotel to add nine accessible guest rooms as well as an accessible registration counter. USC also agreed to ensure that the hotel’s website contains sufficient information to allow individuals with disabilities to make informed decisions when booking accessible rooms.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Assistant United States Attorney Acrivi Coromelas of the Civil Division’s Civil Rights Section handled this matter.
For more information on the ADA or this settlement agreement, please call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0308 (TDD), or access the ADA website at http://www.ada.gov.
This year marks the ADA’s 30th anniversary. The Department of Justice – including the U.S. Attorney’s Office – plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against people with disabilities.
U.S. Attorney’s Office Announces Project EJECT, Project Safe Neighborhoods and Project Guardian Grant Funding for the Southern District of MississippiRead the Press Release
Jackson, Miss. – United States Attorney Mike Hurst announced today the U.S. Attorney’s Office and the U.S. Department of Justice has awarded over $130,000 in grant funding to three recipients in the Southern District of Mississippi under Project EJECT, Project Safe Neighborhoods, and Project Guardian. The goal of these various U.S. Attorney’s Office and DOJ programs is to fight and reduce violent crime in communities throughout our country.
“Today’s grant awards will further the shared goal among our office, the Department of Justice, and local law enforcement agencies in fighting and reducing violent crime throughout our communities. Gangs and their members continue to have an outsize influence on the crime we see around our state, and my hope is that this funding will help to turn the tide against these criminal organizations that are wreaking havoc on our fellow citizens and our neighbors. We are putting our money where our mouth is, and continuing this fight alongside our local partners against evildoers throughout our state,” said U.S. Attorney Hurst.
The City of Jackson received $70,649 in grant funding to fight gangs and combat violent crime in the Capital City. According to the City’s application, the Southern District’s “largest gang presence is focused in Jackson[,]” and “[s]treet gangs are a signficiant part of the crime problem in Jackson. These gangs are actively involved in drug distribution, weapons, and a wide range of violent activity.” The Jackson Police Department (“JPD”) will use this grant funding to “cut off the flow of young people to Jackson’s street gangs.” JPD will also utilize this grant funding to purchase software, equipment and technology to ”improve [their] knowledge of the gang structure in our community and target the 'worst of the worst’ gang members in Jackson.”
The Long Beach Police Department received $7,302 to implement a campaign they are calling “Lock It or Lose It” which will promote the locking of vehicles and homes to deter burglaries, violent crime and murders. As Long Beach Police Department noted in their applications, numerous guns have been stolen from Long Beach and used in violent crime throughout the Southeast. “Within the last year, one firearm was stolen from a vehicle in the City of Long Beach and used in a murder in Jackson, Alabama, of which the offender was from Moss Point, MS. Another was used in a drive by shooting in Moss Point, MS. Most recently, a stolen firearm was recovered in a narcotics raid in Harrison County. All three firearms were stolen from unlocked vehicles in Long Beach. The most recent string of auto burglaries was committed by gang members from Hattiesburg, MS, who traveled to Long Beach for the purpose of burglarizing unlocked automobiles.” This innovative and creative strategy has the potential to help reduce burglaries and theft of firearms, and concomitantly shrink violent crime.
Finally, the Copiah County Board of Supervisors, under a program to be administered by the District Attorney’s Office for the 22nd Circuit Court, received $55,070 in grant funding to combat violent crime and gangs. According to their application, “within the 22nd Circuit Court District, incidents of violent crime and gang related activities continue to impact a large segment of our communities . . . Through interviews with witnesses, victims and criminal defendants, the District Attorney’s Office has observed that many violent crimes involved gang members or affiliate gang members.” Using this grant money, the District Attorney’s Office intends to form a Task Force of local law enforcement and the Youth Court to identify, monitor and increase prosecution of violent crime and gang activities, and intervene, educate and train juveniles not to join gangs or engage in violent crime. This grant funding will be used to hire personnel to collect and analyze the data statistical information on violent crime and gang activities within the district, as well as train law enforcement on these topics with the goal of reducing violent crime in the 22nd Circuit Court District.
The United States Attorney’s Office for the Southern District of Mississippi remains committed to supporting our state, local and tribal law enforcement, community organizations, faith-based groups, and our fellow citizens in order to reduce violent crime throughout our district. These funds distributed through the Project Safe Neighborhoods will give communities the resources they need to implement local, comprehensive, and collaborative responses to violence. The Mississippi Department of Public Safety is the Fiscal Agent of this grant process.
Project EJECT is 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.
Two Former Church Members Admit Forced Labor ConspiracyRead the Press Release
Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413
NEWS RELEASE SUMMARY – February 27, 2020
SAN DIEGO – Jose Gaytan and Sonia Murillo, defendants affiliated with Imperial Valley Ministries, pleaded guilty to labor trafficking charges in federal court today, admitting that they participated in a forced labor conspiracy.
Gaytan and Murillo were previously indicted with ten other defendants on charges they held program participants against their will, coerced participants to surrender welfare benefits, and compelled participants to panhandle for the financial benefit of the church leaders.
Both Gaytan and Murillo admitted to conspiring with the other defendants to benefit financially from the forced labor conspiracy. In particular, both Gaytan and Murillo admitted defendant Victor Gonzalez, the former pastor of IVM, instructed all directors in charge of IVM properties to screw or nail windows shut and keep doors locked from the inside in order to prevent IVM participants from leaving. Gaytan added that Gonzalez and another IVM leader told him it was necessary to continue recruiting participants into IVM and prevent participants from leaving in order to increase fundraising proceeds for the benefit of IVM.
Murillo implicated additional defendants who punished her for allowing IVM participants to leave. Both Gaytan and Murillo added that various co-defendants had directed them to falsely instruct female participants that Child Protective Services would take their children, or fail to return them, if they left IVM.
IVM operated a non-denominational church headquartered in El Centro, and had opened approximately 30 affiliate churches throughout the United States and Mexico, including Los Angeles, Santa Ana and San Jose, California; Las Vegas, Nevada; Phoenix, Arizona; and Brownsville, Texas. IVM’s express purpose is to “restore” drug addicts at faith-based rehabilitation group homes and raise money to open churches in other cities to do the same.
In addition to their church and main office, IVM owns and operates two women’s group homes and a men’s group home in the El Centro area. IVM also operated homes in Calexico and Chula Vista. Many participants were recruited from outside of El Centro, including San Diego, and as far away as Texas. IVM members allegedly induced participants to accompany them to receive free food and shelter with the false promise that they would be provided resources to return home. Many participants, including those who did not require rehabilitation services, claimed they were later held at IVM properties against their will.
The indictment alleges that all of the defendants confiscated identification documents in order to prevent IVM participants from leaving IVM and to maintain their labor. IVM leaders checked in participants at the IVM group homes, where they were required to sign agreements to adhere to rules, including never leaving the house unaccompanied, and turning over all identifications and personal items.
Both Gaytan and Murillo admitted they helped enforce the IVM rules by checking in new IVM participants, obtaining and using their Electronic Benefits Transaction cards obtained through the Supplemental Nutrition Assistance Program (SNAP), and requiring participants to panhandle on behalf of IVM. Gaytan and Murillo also pleaded guilty to a separate offense of Benefits Fraud based upon their unauthorized acquisition of SNAP benefits from others, in violation of Food Stamp Regulations.
Gaytan entered his guilty plea before U.S. Magistrate Judge Linda Lopez and Murillo entered her guilty plea before U.S. Magistrate Judge F.A. Gossett. Both are scheduled to be sentenced by U.S. District Judge Barry Ted Moskowitz on May 5, 2020.
“The most vulnerable among us are entitled to the protection of the law,” said U.S. Attorney Robert Brewer. “We encourage everyone to help identify forced labor victims in all locations or situations where exploitation is possible.” Mr. Brewer added that his office would be hosting a forum on forced labor on April 23, 2020, to bring together law enforcement agencies, non-governmental organizations, and community organizations that may encounter potential victims of forced labor, all in an effort to increase the identification of victims and prosecute those who exploit them.
Brewer praised FBI agents and prosecutor Chris Tenorio for excellent work on this important case.
DEFENDANTS Case Number 19CR3255-BTM
Jose Gaytan Age: 47 El Centro, CA
Sonia Murillo Age: 51 El Centro, CA
SUMMARY OF CHARGES
Conspiracy to Commit Forced Labor and Benefits Fraud – Title 18, U.S.C., Section 371
Maximum penalty: five years’ imprisonment and $250,000 fine
Food Stamp Act (Benefits Fraud) – Title 7, U.S.C., Section 2024(b)
Maximum penalty: 20 years’ imprisonment and $250,000 fine (If the benefits were $5,000 or more)
AGENCY
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
*This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, by U.S. Attorney Robert Brewer, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
Two Connecticut Physicians Pay over $4.9 Million to Settle False Claims Act AllegationsRead the Press Release
U.S. Attorney John H. Durham, Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Brian C. Turner of the New Haven Division of the Federal Bureau of Investigation, and Connecticut Attorney General William Tong today announced that DR. CRISPIN ABARIENTOS and his wife, DR. ANTONIETA ABARIENTOS, have entered into a civil settlement agreement with the federal and state governments in which they will pay $4,927,903 to resolve allegations that they violated the federal and state False Claims Acts.
Crispin and Antonieta Abarientos owned and operated Middlesex Rheumatology in Middletown, a medical practice that specialized in the diagnosis and treatment of arthritis, autoimmune diseases and related conditions. Crispin Abarientos was the treating physician at the practice and Antonieta Abarientos was a part owner of the practice.
One of the medications that Crispin Abarientos prescribed to his Middlesex Rheumatology patients was Remicade, an injectable prescription medication used to treat rheumatoid arthritis. When treating Medicaid patients with Remicade, Crispin Abarientos was required to submit a claim to Connecticut Medicaid for Remicade on behalf of each member patient. Medicaid then sent payment to Caremark Massachusetts Specialty Pharmacy in Massachusetts, which delivered the quantity of Remicade contained in the claim directly to Middlesex Rheumatology for the Medicaid patient without any out-of-pocket cost to the practice.
The government alleges that Crispin and Antonieta Abarientos submitted false claims to Medicaid for the delivery to Middlesex Rheumatology of Remicade that Crispin Abarientos represented was to be provided to his Medicaid patients, when he knew that those Medicaid patients were not being treated with Remicade. Crispin Abarientos then proceeded to infuse the fraudulently obtained Remicade he had obtained for free from Medicaid, into Medicare patients and patients covered by the Connecticut State Employees Health Plan, submit claims for reimbursement for the cost of the Remicade to those insurance programs, and keep the profits for himself and the practice.
To resolve the allegations under the federal and state False Claims Acts, Crispin and Antonieta Abarientos have agreed to pay $4,927,903, which covers claims submitted to the Medicaid program from September 2013 through January 2018, and claims submitted to the Medicare program and the Connecticut State Employees Health Plan from July 2013 through June 2017.
In a related federal criminal case, Crispin Abarientos pleaded guilty to health care fraud and, on October 30, 2019, was sentenced to 37 months of imprisonment.
“Physicians who participate in the Medicare and Medicaid programs must bill their services honestly, and the failure to do so increases the cost of health care for all of us,” said U.S. Attorney Durham. “Health care providers who submit false claims to federal health care programs face serious consequences.”
“We take very seriously our responsibility to safeguard taxpayers by eliminating fraud, waste and abuse in our public health care programs, and I appreciate the continued partnership with the Connecticut U.S Attorney's Office to protect public funds," HHS-OIG Special Agent in Charge Coyne.
“We will not tolerate medical professionals stealing precious dollars from our federal health care programs,” said FBI Special Agent in Charge Turner. “Together with our state and federal law enforcement partners, we will continue to swiftly investigate these schemes, to ensure that waste, fraud and abuse in our Medicaid program is uncovered and those responsible are punished accordingly.”
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot, and by Assistant Attorney General Michael Cole of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Two Chinese Nationals Charged with Laundering over $100 Million in Cryptocurrency from Exchange HackRead the Press Release
WASHINGTON – Two Chinese nationals were charged with laundering over $100 million worth of cryptocurrency from a hack of a cryptocurrency exchange. The funds were stolen by North Korean actors in 2018, as detailed in the civil forfeiture complaint also unsealed today.
In the two-count indictment unsealed today in the District of Columbia, 田寅寅 aka Tian Yinyin, and 李家东aka Li Jiadong, were charged with money laundering conspiracy and operating an unlicensed money transmitting business.
“The hacking of virtual currency exchanges and related money laundering for the benefit of North Korean actors poses a grave threat to the security and integrity of the global financial system,” said U.S. Attorney Timothy J. Shea of the District of Columbia. “These charges should serve as a reminder that law enforcement, through its partnerships and collaboration, will uncover illegal activity here and abroad, and charge those responsible for unlawful acts and seize illicit funds even when in the form of virtual currency.”
“North Korea continues to attack the growing worldwide ecosystem of virtual currency as a means to bypass the sanctions imposed on it by the United States and the United Nations Security Council. IRS-CI is committed to combatting the means and methods used by foreign and domestic adversaries to finance operations and activities that pose a threat to U.S. national security,” said IRS-CI Chief Don Fort. “We will continue to push our agency to the forefront of complex cyber investigations and work collaboratively with our law enforcement partners to ensure these nefarious criminals are stopped and that the integrity of the United States financial system is preserved.
“The FBI will continue to actively work with our domestic and international law enforcement partners to identify and mitigate illicit movement of currency,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “Today’s indictment and sanctions send a strong message that the United States will not relent in holding accountable bad actors attempting to evade sanctions and undermine our financial system.”
“This case shows how important robust partnerships across the U.S. Government are in disrupting criminal actors,” said Acting Assistant Director Robert Wells of the FBI’s Counterintelligence Division.
“This indictment shows what can be accomplished when international law enforcement agencies work together to uncover complex cross-border crimes,” said Acting Executive Associate Director Alysa Erichs of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “HSI is committed to upholding the rule of law and investigating those that would steal cryptocurrency for their illicit purposes.”
According to the pleadings, in 2018, North Korean co-conspirators hacked into a virtual currency exchange and stole nearly $250 million worth of virtual currency. The funds were then laundered through hundreds of automated cryptocurrency transactions aimed at preventing law enforcement from tracing the funds. The North Korean co-conspirators circumvented multiple virtual currency exchanges’ know-your-customer controls by submitting doctored photographs and falsified identification documentation. A portion of the laundered funds was used to pay for infrastructure used in North Korean hacking campaigns against the financial industry.
The pleadings further allege that between December 2017 and April 2019, Yinyin and Jiadong laundered over $100 million worth of virtual currency, which primarily came from virtual currency exchange hacks. The defendants operated through independent as well as linked accounts and provided virtual currency transmission services for a fee for customers. The defendants conducted business in the United States but at no time registered with the Financial Crimes Enforcement Network (FinCEN).
The pleadings further allege that the North Korean co-conspirators are tied to the theft of approximately $48.5 million worth of virtual currency from a South Korea-based virtual currency exchange in November 2019. As with the prior campaign, the North Korean co-conspirators are alleged to have laundered the stolen funds through hundreds of automated transactions and submitted doctored photographs and falsified identification documentation. The pleadings identify how the North Korean co-conspirators used infrastructure in North Korea as part of this campaign.
The civil forfeiture complaint specifically names 113 virtual currency accounts and addresses that were used by the defendants and unnamed co-conspirators to launder funds. The forfeiture complaint seeks to recover the funds, a portion of which has already been seized.
The charges in the pleadings are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) also imposed sanctions on Yinyin, Liadong, and numerous cryptocurrency addresses related to their involvement in activities facilitating North Korean sanctions evasion based on their services and support for malicious cyber enabled activities linked to North Korean actors.
The investigation was led by the IRS-CI, the FBI, and HSI. The Korean National Police of the Republic of Korea provided assistance and coordinated with their parallel investigation.
The cases are being handled by Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney David Recker of the National Security Division’s Counterintelligence and Espionage Section, and Assistant U.S. Attorneys Zia Faruqui and Christopher B. Brown, Paralegal Specialist Elizabeth Swienc, and Legal Assistant Jessica McCormick of the U.S. Attorney’s Office for the District of Columbia. Additional assistance has been provided by former Assistant U.S. Attorney Youli Lee.
Two Chinese Nationals Charged with Laundering over $100 Million in Cryptocurrency from Exchange HackRead the Press Release
Two Chinese nationals were charged with laundering over $100 million worth of cryptocurrency from a hack of a cryptocurrency exchange. The funds were stolen by North Korean actors in 2018, as detailed in the civil forfeiture complaint also unsealed today.
In the two-count indictment unsealed today in the District of Columbia, 田寅寅 aka Tian Yinyin, and 李家东aka Li Jiadong, were charged with money laundering conspiracy and operating an unlicensed money transmitting business.
“These defendants allegedly laundered over a hundred million dollars worth of stolen cryptocurrency to obscure transactions for the benefit of actors based in North Korea,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today's actions underscore that the Department will pierce the veil of anonymity provided by cryptocurrencies to hold criminals accountable, no matter where they are located.”
“Today, we are publicly exposing a criminal network’s valuable support to North Korea’s cyber heist program and seizing the fruits of its crimes,” said Assistant Attorney General John C. Demers of the Justice Department’s National Security Division. “This case exemplifies the commitment of the United States government to work with foreign partners and the worldwide financial services industry to disrupt this blended threat.”
“The hacking of virtual currency exchanges and related money laundering for the benefit of North Korean actors poses a grave threat to the security and integrity of the global financial system,” said U.S. Attorney Timothy J. Shea of the District of Columbia. “These charges should serve as a reminder that law enforcement, through its partnerships and collaboration, will uncover illegal activity here and abroad, and charge those responsible for unlawful acts and seize illicit funds even when in the form of virtual currency.”
“North Korea continues to attack the growing worldwide ecosystem of virtual currency as a means to bypass the sanctions imposed on it by the United States and the United Nations Security Council. IRS-CI is committed to combatting the means and methods used by foreign and domestic adversaries to finance operations and activities that pose a threat to U.S. national security,” said Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Don Fort. “We will continue to push our agency to the forefront of complex cyber investigations and work collaboratively with our law enforcement partners to ensure these nefarious criminals are stopped and that the integrity of the United States financial system is preserved.”
“The FBI will continue to actively work with our domestic and international law enforcement partners to identify and mitigate illicit movement of currency,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “Today’s indictment and sanctions send a strong message that the United States will not relent in holding accountable bad actors attempting to evade sanctions and undermine our financial system.”
“This case shows how important robust partnerships across the U.S. Government are in disrupting criminal actors,” said Acting Assistant Director Robert Wells of the FBI’s Counterintelligence Division.
“This indictment shows what can be accomplished when international law enforcement agencies work together to uncover complex cross-border crimes,” said Acting Executive Associate Director Alysa Erichs of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “HSI is committed to upholding the rule of law and investigating those that would steal cryptocurrency for their illicit purposes.”
According to the pleadings, in 2018, North Korean co-conspirators hacked into a virtual currency exchange and stole nearly $250 million worth of virtual currency. The funds were then laundered through hundreds of automated cryptocurrency transactions aimed at preventing law enforcement from tracing the funds. The North Korean co-conspirators circumvented multiple virtual currency exchanges’ know-your-customer controls by submitting doctored photographs and falsified identification documentation. A portion of the laundered funds was used to pay for infrastructure used in North Korean hacking campaigns against the financial industry.
The pleadings further allege that between December 2017 and April 2019, Yinyin and Jiadong laundered over $100 million worth of virtual currency, which primarily came from virtual currency exchange hacks. The defendants operated through independent as well as linked accounts and provided virtual currency transmission services for a fee for customers. The defendants conducted business in the United States but at no time registered with the Financial Crimes Enforcement Network (FinCEN).
The pleadings further allege that the North Korean co-conspirators are tied to the theft of approximately $48.5 million worth of virtual currency from a South Korea-based virtual currency exchange in November 2019. As with the prior campaign, the North Korean co-conspirators are alleged to have laundered the stolen funds through hundreds of automated transactions and submitted doctored photographs and falsified identification documentation. The pleadings identify how the North Korean co-conspirators used infrastructure in North Korea as part of this campaign.
The civil forfeiture complaint specifically names 113 virtual currency accounts and addresses that were used by the defendants and unnamed co-conspirators to launder funds. The forfeiture complaint seeks to recover the funds, a portion of which has already been seized.
The charges in the pleadings are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) also imposed sanctions on Yinyin, Liadong, and numerous cryptocurrency addresses related to their involvement in activities facilitating North Korean sanctions evasion based on their services and support for malicious cyber enabled activities linked to North Korean actors.
The investigation was led by the IRS-CI, the FBI, and HSI. The Korean National Police of the Republic of Korea provided assistance and coordinated with their parallel investigation.
The cases are being handled by Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section, and Assistant U.S. Attorneys Zia Faruqui and Christopher B. Brown, Paralegal Specialists Brian Rickers, and Legal Assistant Jessica McCormick of the U.S. Attorney’s Office for the District of Columbia. Additional assistance has been provided by former Assistant U.S. Attorney Youli Lee.
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.
Theodore Woman Sentenced in Methamphetamine CaseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Cherish Elissa Kofonis, 35, of Theodore, was sentenced on February 18, 2020, on her guilty plea to conspiracy to possess with intent to distribute methamphetamine. She entered the guilty plea in November of 2019.
United States District Court Judge William H. Steele imposed a sentence of time served in Kofonis’ case, which amounted to a period of approximately six months behind bars. The judge placed Kofonis on supervised release for a term of four years. During that time, she will undergo testing and treatment for drug abuse. Kofonis was also ordered to pay $100 in special assessments, but no fine was imposed.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Texas Woman Pleads Guilty to Making False Statement to Obtain Social Security BenefitsRead the Press Release
CONCORD - Linda Jackson, 64, of Mabank, Texas, pleaded guilty in federal court to making false statements to obtain Social Security benefits, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Jackson received Supplemental Security Income (“SSI”) benefits for over 10 years. During the application process, Jackson did not report she was living with someone as husband and wife and that he was paying for her living expenses. They lived together in Marlborough, New Hampshire, and spent their winters in their other home in Mabank, Texas. Had Jackson honestly reported her living and financial arrangement in her application, she would have been ineligible for SSI benefits.
SSA occasionally interviewed Jackson to determine if she remained entitled to benefits. In those interviews, Jackson again misrepresented her living and financial arrangement. She also did not disclose her relationship with another individual whom she eventually married, the financial support he provided her, or her restaurant and catering business to SSA. SSA became aware of Ms. Jackson’s husband when she applied for survivor’s benefits after his death.
Jackson’s shared living arrangement and marriage, if properly reported, would have disqualified her from receiving benefits. Applicants for certain disability benefits must have limited income and resources in order to qualify for assistant. The incomes of all members of a household are considered when determining an individual’s eligibility for SSI benefits. As a result of her concealment, Jackson received over $75,000 in benefits that she was not entitled to receive.
Jackson is scheduled to be sentenced on June 8, 2020.
“Federal benefits programs provide important financial support to needy beneficiaries,” said U.S. Attorney Murray. “Those who lie in order to obtain benefits that they are not entitled to receive are stealing from Social Security and cheating everyone who pays taxes to support the programs. We will continue to work closely with our law enforcement partners to identify and prosecute those who swindle government programs for their personal financial gain.”
This matter was investigated by the Social Security Administration’s Office of the Inspector General and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Hunter.
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State Inmate Sentenced in Federal Court for Arranging a Drug Deal Behind BarsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Kevin Depaul Davidson, 46, incarcerated in Fountain Correctional Facility, was sentenced on February 27, 2020, for attempt to possess with intent to distribute methamphetamine. At the time of the offense, Davidson was serving a life sentence on a murder conviction from Jefferson County, Alabama. Court documents show that Davidson and another inmate, Michael Reshard Dread, contacted a confidential informant working with the Department of Homeland Security Investigations and the Alabama Law Enforcement Agency to assist in arranging the drug deal, which involved two ounces of methamphetamine ice. Using the informant, law enforcement agents set up surveillance at the location when the drugs were supposed to be delivered to a corrections officer, who was to bring them into the state prison to be delivered to the inmates. Wiggins Washington, Jr., was arrested after accepting delivery of the substance represented to be methamphetamine ice. He was also found in possession of a firearm during the attempt. Both Dread and Washington entered guilty pleas to the federal charges, and they await sentencing in March (Dread) and April (Washington).
United States District Court Judge Terry F. Moorer imposed a sentence of 262 months imprisonment, to be followed by a supervised release term of five years. During that period of supervision, Davidson will undergo testing and treatment for drug abuse. Davidson was also ordered to pay $100 in special assessments, but no fine was imposed.
The case was investigated by the Alabama Law Enforcement Agency, and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Spanaway man sentenced to 15 years in prison for production and distribution of images of child molestationRead the Press Release
Tacoma, Washington – A Spanaway, Washington, man who made sexually explicit images of an 11-year-old child and traded the child’s underwear for more images of child rape, was sentenced today in U.S. District Court in Tacoma to 15 years in prison announced U.S. Attorney Brian T. Moran. DONNIE BARNES, SR., 52, was convicted in October 2019 of production of child pornography, distribution of child pornography, and possession of child pornography following a two-day jury trial. At the sentencing hearing, U.S. District Judge Benjamin H. Settle said, “It is hard to describe” how serious these types of offenses are in terms “real harm.” The victims of these offenses themselves face a “life sentence” of “pain we cannot know.”
“This defendant horribly betrayed the trust of not only the child but the child’s parent and caregiver,” said U.S. Attorney Moran. “I commend the international cooperation that uncovered this crime and put an end to this predatory behavior.”
According to records filed in the case and testimony at trial in February 2018, BARNES came to the attention of law enforcement when a police detective in Queensland, Australia, noticed a suspicious file on a public photo-sharing website. The album showed close-up photos of a child’s genitals. In an undercover persona, the officer commented on the photos and received emails the next day from BARNES describing the child in sexual terms and revealing BARNES’ relationship to the child.
In early March 2018, agents with Homeland Security Investigations searched BARNES’ residence in Spanaway. When interviewed by law enforcement, BARNES admitted photographing the child while the child was asleep and uploading the images to the internet. Additionally, BARNES told officers he had traded soiled underwear from the child for additional images of child rape to someone seeking such items via Craigslist. Those images were located on an electronic storage device in BARNES’ home.
Following his prison term, BARNES will be on lifetime supervised release and will be required to register as a sex offender.
The case was investigated by Homeland Security Investigations with assistance from the Queensland Police Service (QPS).
The case is being prosecuted by Assistant United States Attorneys Matthew Hampton and Lyndsie Schmalz.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals better who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Schenectady Man Charged with Attempted Child ExploitationRead the Press Release
ALBANY, NEW YORK – Keith Mussenden, age 36, of Schenectady, New York, was arrested last week and charged by criminal complaint for attempted sexual exploitation of a child.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The complaint alleges that, on or about the dates of June 1, 2019 through January 1, 2020, in Schenectady County, Mr. Mussenden attempted to produce sexually explicit images of a child victim.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Mussenden initially appeared in court on Tuesday, February 25, before United States Magistrate Judge Daniel J. Stewart. Following a detention hearing held on February 28, Judge Stewart ordered Mussenden detained.
If convicted, Mussenden faces at least 15 years and up to 30 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Additionally, if convicted, Mussenden would be required to register as a sex offender.
The case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorneys Rachel L. Williams and Alicia G. Suarez.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Santa Fe Springs ‘Shotcaller’ and Mexican Mafia Member Sentenced to Life in Prison for RICO Offenses, Including Rival Gangster’s MurderRead the Press Release
LOS ANGELES – A Mexican Mafia member and “shotcaller” of the Santa Fe Springs and Whittier-based Canta Ranas street gang was sentenced today to life plus an additional 30 years in federal prison for leading the wide-ranging criminal enterprise and for murdering a rival gangster at a San Gabriel Valley restaurant in 2016.
Jose Loza, 41, was sentenced by United States District Judge Virginia A. Phillips, who also set a June 1 hearing to determine the amount Loza will pay as restitution to his victims.
Loza is the lead defendant in a 2016 federal grand jury indictment charging 51 Canta Ranas members and associates with racketeering and other related offenses.
After a month-long trial in August 2019, a jury found Loza guilty of 12 felonies. Specifically, the jury found Loza guilty of one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, four counts of engaging in violent crimes in aid of racketeering (VICAR), one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, three counts of using a firearm during a crime of violence, one count of being a felon in possession of a firearm, and one count of money laundering conspiracy.
Loza implemented the orders of David Gavaldon, an imprisoned senior Mexican Mafia member who was himself a long-time member of the Canta Ranas street gang and who was not charged in this case as he is serving a life-without-parole sentence in Pelican Bay State Prison. Gavaldon exerted control over Canta Ranas and other gangs in Whittier, Santa Fe Springs, Riverside, and Stockton, and he received compensation in the form of “rent” or “taxes” generated by drug trafficking and other offenses committed in gang territory.
In addition to implementing Gavaldon’s orders, Loza murdered a fellow Mexican Mafia member who was marked for death by the prison gang after he was perceived as encroaching upon the territories of other Mexican Mafia members. During the April 19, 2016 incident at a restaurant in the San Gabriel Valley community of Basset, the victim was shot six times, his bodyguard was severely wounded, and an innocent restaurant patron was shot multiple times.
Loza’s accomplice in the 2016 murder, Leonardo Antolin, 25, of Whittier, pleaded guilty to five felonies in this case and has been sentenced to 40 years in federal prison for his crimes.
Prosecutors have secured 48 convictions so far in this matter, which is the result of Operation Frog Legs. During the course of that three-year investigation, law enforcement seized 56 firearms and made several narcotics seizures, including nearly one pound of methamphetamine seized during the execution of search warrants after Loza murdered the other Mexican Mafia member.
Operation Frog Legs is the result of an investigation by the Southern California Drug Task Force, which is led by the Drug Enforcement Administration as part of the High Intensity Drug Trafficking Area (HIDTA) initiative. The Task Force members that participated in Operation Frog Legs were U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, the Whittier Police Department, the Los Angeles County Sheriff’s Department, IRS Criminal Investigation, and the California Department of Corrections and Rehabilitation, Office of Correctional Safety, Special Service Unit. This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
This matter was prosecuted by Assistant United States Attorney Carol Alexis Chen, Chief of the International Narcotics, Money Laundering, and Racketeering Section, and Assistant United States Attorneys Kathy Yu, also of the International Narcotics, Money Laundering, and Racketeering Section and Victoria A. Degtyareva of the Cyber and Intellectual Property Crimes Section.
San Diego Man Sentenced to 25 years in Federal Prison for Child Pornography OffensesRead the Press Release
Assistant U.S. Attorney Amanda Griffith (619)546-8970 and Janet Cabral 546-8715
NEWS RELEASE SUMMARY – February 26, 2020
SAN DIEGO – Carsten Igor Rosenow was sentenced in federal court today to 25 years in prison for sexually exploiting children in the Philippines.
Rosenow was found guilty by a federal jury on August 30, 2019, on charges of production of child pornography and possession of child pornography. Rosenow, a former Chief Marketing Officer for tech company Illumina, Inc., who lived in San Diego, came to the attention of law enforcement when the FBI identified him as someone who regularly traveled abroad, including to the Philippines.
“Sexual crimes against children are heinous and tragic wherever they occur, and we will not let borders keep us from protecting these vulnerable victims whenever possible,” said U.S. Attorney Robert Brewer. “The law allows us to pursue cases against U.S. citizens who victimize children around the world, and that’s what we’ve done here. This defendant is off the streets for 25 years, and that makes this a very good outcome.”
“The FBI investigates U.S. citizens who travel overseas to engage in illegal sexual conduct with children under the age of 18 as well as the production of child pornography,” stated FBI Special Agent in Charge Scott Brunner. “The seriousness of Rosenow’s crimes cannot be overstated. Preying upon children, no matter where they live, and exploiting them is extremely damaging to children and to our global society. Protecting the vulnerable is a top priority for the FBI and we stand committed to investigating and prosecuting anyone who seeks to harm children.”
The FBI also received information that Rosenow was communicating through Facebook with what appeared to be minor females living in the Philippines, using an account under the name “Carlos Senta,” and making arrangements to meet to engage in sexual activities while he was traveling there.
The FBI was alerted that Rosenow was scheduled to return to the United States from the Philippines in June of 2017, and he was arrested by FBI agents when he arrived at the airport in San Diego on June 21, 2017. Rosenow’s baggage and residence were searched pursuant to search warrants. Three devices seized from Rosenow’s luggage contained videos, produced by Rosenow while in the Philippines, showing Rosenow engaging in sexual acts with minor females, and recording those sex acts. Additional devices seized from his residence also contained visual depictions of Rosenow engaged in sexual acts with minors while in the Philippines.
Facebook records introduced into evidence at trial established that prior to meeting with one of the girls, Rosenow was told she was 12 years old. While engaged in the sexual activity with the girl, she told Rosenow she was 15. Rosenow also admitted as part of the evidence at trial that he knew that another video, which showed him engaged in sexual acts with three minor females, one of whom was a prepubescent female, was produced by him while in the Philippines. Rosenow was charged by the United States with both using a minor to engage in sexual conduct outside the United States, for the purpose of producing visual depictions of that conduct, and intending to transport it back to the United States, and with possession of child pornography.
Rosenow testified at trial and admitted that while he was abroad in the Philippines for work, he had sex with girls who he knew were minors, which is defined under federal law as anyone under the age of 18. The parties also agreed to facts which were presented to the jury, showing that the defendant produced videos of himself engaging in sexual acts, including vaginal intercourse, with minor females and one prepubescent girl under the age of 12. The jury found defendant guilty of both charges.
At sentencing, the prosecutor stressed that Rosenow engaged in sex acts with prepubescent and minor-aged children in exchange for money, cell phones, and chocolates, treating those children as a commodity. The Court agreed that the nature and circumstances of the offense were aggravated by anyone’s definition, finding the videos of defendant engaging in sex acts with the children “deeply disturbing on many levels.” The Court rejected the notion that the defendant merely engaged in commercial sexual transactions, noting the young age of the girls and that the girls “did not seem to be willingly engaging in the activity.” The Court noted the “defendant showed no sense of compassion for these kids or remorse or recognition regarding what he did” and that the defendant’s conduct “was despicable for lack of a better term.”
Following his release from federal prison, the Court sentenced the defendant to a lifetime of supervised release. The Court also ordered the defendant to pay a total fine of $100,000, and restitution to three victims of the offense.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section of the U.S. Attorney’s Office. Formed in 2019, by U.S. Attorney Robert Brewer, the VCHT Section is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights; and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Childhood, Project Safe Neighborhood, and Human Trafficking.
U.S. Attorney Brewer lauded the efforts of FBI agents and prosecutors Mandy Griffith and Janet Cabral, who work hard to seek justice for minor victims who are sexually exploited.
DEFENDANT Criminal Case No. 17cr3430-WQH
Carsten Igor Rosenow Age: 55 San Diego, CA
SUMMARY OF CHARGE
- Count 1 – Title 18, United States Code, Section 2251(c), Attempted Sexual Exploitation of a Child – Production of Child Pornography
- Count 2 – Title 18, United States Code, Section 2252(a)(4)(B), Possession of Images of Minors Engaged in Sexually Explicit Conduct
Maximum penalties:
- Count 1 - 30 years in prison, with a mandatory minimum 15 years in prison
- Count 2 – 20 years in prison
- As to all Counts, $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Antonio Man Pleads Guilty to Stealing Government PropertyRead the Press Release
In San Antonio today, 46-year-old San Antonio resident Zachary F. Walter pleaded guilty to stealing over $135,000 in spent brass from Joint Base San Antonio (JBSA), announced U.S. Attorney John F. Bash.
Appearing before Senior U.S. District Judge Royce C. Lamberth, Walter pleaded guilty to one count of embezzlement of government property. By pleading guilty, Walter admitted that from October 2015 to August 2017, he contracted with Joint Base San Antonio to take some 102,000 pounds of spent yellow brass ammunition casings and remit payment to JBSA. Walter, admittedly, sold the brass for approximately $135,164, wrote a check to JBSA, but later went to his bank and stopped payment on the check. JBSA was never paid for the spent brass.
Walter faces up to ten years in federal prison. Sentencing is scheduled for 3:30pm on May 4, 2020.
The Air Force Office of Special Investigations investigated this case. Assistant U.S. Attorney Joe Blackwell is prosecuting this case on behalf of 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.
Salvadoran National Sentenced for Money Laundering Conspiracy and Unlawful ReentryRead the Press Release
BOSTON – A Salvadoran man who was a member of the violent gang known as La Mara Salvatrucha, or MS-13, was sentenced today in federal court in Boston for unlawfully reentering the United States and conspiracy to commit money laundering.
Jose Audelino Valle Flores, a/k/a “Mecha,” 33, who previously resided in Lynn, was sentenced by U.S. District Court Judge Denise J. Casper to 33 months in federal prison and three years of supervised release.
According to court documents, Valle Flores was unlawfully in the United States until December 2016 when he was arrested by immigration authorities and deported to El Salvador. In August 2018, immigration authorities again encountered Valle Flores in the United States. He was subsequently charged in this case with unlawfully reentering the United States after his prior removal from the country.
From approximately 2010 through 2016, Valle Flores was a member of the Everett Locos Salvatrucha (ELS) clique of MS-13. Members of MS-13 often pay “dues” to their cliques, which is used to further a variety of criminal activity both within and outside of the United States. For example, MS-13 members often send money to El Salvador to further MS-13 gang activity in El Salvador, to purchase weapons, and/or to support MS-13 members who are imprisoned in El Salvador.
From at least 2014 through at least 2016, Valle Flores conspired with other MS-13 members to send money from the United States to El Salvador with the intent of promoting unlawful activity by the MS-13 gang. As an example of these money transfers, for approximately a year around 2014, Valle Flores collected clique dues from ELS members and sent money to MS-13 leaders in El Salvador.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement.
Reno Doctor Pleads Guilty to Prescribing Oxycodone and Hydrocodone Not for A Legitimate Medical PurposeRead the Press Release
RENO, Nev. – Dr. Eric Math, M.D., 51, of Reno, pleaded guilty today to conspiracy to distribute hydrocodone and oxycodone, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
Dr. Math and seven other co-defendants were charged by a federal grand jury indictment unsealed on May 24, 2019, in connection with their involvement in conspiring to distribute hydrocodone and oxycodone in the Reno area between October 2018 and May 2019. According to court documents, Dr. Math would write prescriptions to his co-conspirators not for a legitimate medical purpose and not in the usual course of professional practice. The co-conspirators would then fill the prescriptions and give some of the pills to co-defendant Myron Motley for further sales. On several occasions, Dr. Math was paid in cash for writing the illegal prescriptions. He would sometimes also write prescriptions for himself and have a co-conspirator fill the prescription for him.
This case was the product of a joint investigation by the FBI; the Reno Police Department; Nevada Highway Patrol, the Nevada Department of Health and Human Services, Division of Welfare and Supportive Services; the Office of the Nevada Attorney General; the Carson City Sheriff’s Office; the Nevada Department of Corrections; the Nevada Gaming Control Board; the Sparks Police Department; the University of Nevada-Reno Police Department; and the IRS Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Peter Walkingshaw.
Dr. Math is scheduled to be sentenced by U.S. District Judge Larry R. Hicks on June 1, 2020. Dr. Math faces a maximum statutory penalty of 20 years in prison, up to a lifetime of supervised release, and a fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The defendants remaining in the case are: Myron Motley, 55, of Richmond, California; Michael Kwoka, 56, of Fair Oaks, California; Michael Slater, 42, of Reno; Joseph Jeannette, 51, of Reno; Ivy Elliott, 35, of Reno; and Alesia Sampson, 56, of Grass Valley, California. They are scheduled to appear for a jury trial on May 12, 2020. The charges against them merely are allegations and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
According to the Centers for Disease Control and Prevention, Oxycodone and Hydrocodone are among the most common drugs involved in prescription opioid overdose deaths. Oxycodone and other Schedule II drugs have a high potential for abuse that can lead to addiction, overdose, and sometimes death.
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Readout of Southwest Border U.S. Attorneys Visit to MexicoRead the Press Release
From February 24 to 28, a delegation of U.S. Attorneys led by U.S. Attorney Nick Hanna of the Central District of California, U.S. Attorney Robert Brewer of the Southern District of California, U.S. Attorney Mike Bailey of the District of Arizona, U.S. Attorney John Anderson of the District of New Mexico, U.S. Attorney Joseph Brown of the Eastern District of Texas, U.S. Attorney Ryan Patrick of the Southern District of Texas, and U.S. Attorney John Bash of the Western District of Texas along with their and the Northern District of Texas criminal chiefs and Organized Crime Drug Enforcement Task Forces (OCDETF) chiefs traveled to Mexico City to participate in a series of briefings and meetings regarding counter-narcotic efforts as well as efforts to combat transnational criminal organizations (TCOs) and the trafficking of arms and drugs.
The Justice Department’s Attaché Office in Mexico City organized the briefings and meetings. The U.S. delegation participated in a meeting with various officials from Mexico’s Attorney General’s Office (FGR) including Deputy Attorney General for International and Legal Affairs, Miguel Angel Mendez Buenos Aires; Deputy Attorney General for Organized Crime and Investigations, Alfredo Higuera Bernal; Deputy Attorney General for Criminal Proceedings and Habeus Corpus, Roberto Ochoa Romero; and Deputy Attorney General for Investigative Techniques and Methods, Felipe de Jesus Gallo Gutierrez.
The U.S. Attorney’s Offices delegations were also briefed by various U.S. law enforcement entities stationed in Mexico City. They discussed investigative strategies and their shared commitment to protecting the security and safety of our shared border and the citizens residing in both the United States and Mexico.
The U.S. law enforcement relationship with Mexico is one of our most important partnerships to combat trans-border crime. The U.S. delegation reiterated the United States’ commitment to protecting U.S. and Mexican citizens and leaders from both countries reaffirmed their commitment to bilateral law enforcement cooperation.
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.
Southwest Border U.S. Attorneys meeting with Mexico’s Attorney General’s Office (FGR)
L-R: U.S. Attorney John Bash, U.S. Attorney Joseph Brown, U.S. Attorney Robert Brewer, Deputy Attorney General Alfredo Higuera Bernal, Deputy Attorney General Roberto Ochoa Romero, Deputy Attorney General Miguel Angel Mendez Buenos Aires, U.S. Attorney Ryan Patrick, U.S. Attorney Nick Hanna, U.S. Attorney John Anderson, and U.S. Attorney Mike Bailey.Project Safe Childhood -- Two Defendants Sentenced to Federal Prison for Child Pornography OffensesRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced that two different Project Safe Childhood (PSC) defendants were sentenced to federal prison today for child pornography offenses.
“Wallace and Blake will be in federal prison for many years because of their heinous crimes,” said United States Attorney Mike Stuart. “Protecting West Virginia children is a top priority for me and my office. We continue to hold PSC defendants accountable by prosecuting them to the fullest extent of the law.”
Charles Larry Wallace, Jr., 47, of Coal City, West Virginia, was sentenced to serve 262 months (21 years, 10 months) in federal prison for producing child pornography. Upon release from prison, Wallace will be required to serve a lifetime term of supervised release and register as sex offender. Wallace previously admitted that on January 5, 2019, he took several sexually explicit images of a child under the age of 12 who was in his care at the time. Wallace distributed those images to at least one other individual.
Gordon Blake, 62, of Beckley, West Virginia, was sentenced to serve 14 years in federal prison for possession of child pornography. Upon release from prison, Blake will be required to serve a term of 20 years of supervised release and register as sex offender. Blake previously admitted that on July 21, 2018, he possessed over 600 images of child pornography, many of which depicted prepubescent minors and some of which depicted sadistic conduct. Blake also has previous Pennsylvania convictions from 1997 related to the sexual assault of two minors under the age of 12.
The investigations were conducted by the West Virginia States Police Internet Crimes Against Children Task Force and Homeland Security Investigations. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecutions. United States District Judge Frank W. Volk presided over both sentencing hearings.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Follow us on Twitter: SDWVNews and USAttyStuart
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Presidential Task Force on Missing and Murdered American Indians and Alaska Natives Announces Tribal Consultations and Listening SessionsRead the Press Release
WASHINGTON – The Presidential Task force on Missing and Murdered American Indians and Alaska Natives announced a series of field consultations and listening sessions to occur across the United States in the coming months.
American Indians and Alaska Natives experience disproportionately high rates of violence. President Trump has called the crisis of missing and murdered Native Americans “sobering and heartbreaking.” The task force, designated Operation Lady Justice, has been empowered to review Indian Country cold cases, to strengthen law enforcement protocols, and work with tribes to improve investigations, information sharing and a more seamless response to missing persons investigations.
Confirmed Dates and Locations
March 2nd, 3:00 p.m. – 4:30 p.m.
- Department of Health and Human Services, Administration for Children & Families Tribal Advisory Council Mtg. – Washington D.C. Listening Session (CLOSED PRESS)
March 12th, 10:30 a.m. – 12:30 p.m.
- Tribal Interior Budget Council Listening Session – Washington, DC (CLOSED PRESS)
March 17th, 2:00 p.m. – 5:00 p.m.
- United South & Eastern Tribes (USET), Midwest Alliance of Sovereign Tribes (MAST) Listening Session – Marriott Marquis, 901 Massachusetts Ave NW, Washington, D.C.
March 24th, 9:00 a.m. – 4:00 p.m.
- Muscogee Creek Listening Session – River Spirit Casino, 8330 Riverside Parkway, Tulsa, OK
March 31st, 10:30 am – 12:00 p.m.
- 38th Annual Protecting Our Children Conference Listening Session – Marriott Denver Tech Center- Host Hotel, Denver, CO (CLOSED PRESS)
April 15th, 9:00 a.m. – 4:00 p.m.
- Pascua Yaqui Listening Session – Casino Del Sol, 5655 W. Valencia Rd., Tucson, AZ
April 21st, 1:30 p.m. – 5:00 p.m.
- Sycuan Band, California Listening Session, 3 Kwaaypaay Court, El Cajon, CA
April 28th, 9:00 a.m. – 3:00 p.m.
- National Indian Programs Training Center - CONSULTATION – 1101 Indian School Road NW, rooms 233-234, Albuquerque, NM
May 12th, 9:00 a.m. – 4:00 p.m.
- Grand Traverse Band of Ottawa and Chippewa Listening Session – Grand Traverse Resort & Spa, 100 Grand Traverse Village Blvd, Acme Township, MI
May 21st, 9:00 a.m. – 4:00 p.m.
- Yakama Nation, Washington Listening Session – Legends Casino and Hotel, 580 Fort Road, Toppenish WA
June 7th – 11th
- Anchorage, Alaska – CONSULTATION – Date and Location TBD
June 16th, 10:00 a.m. – 4:00 p.m.
- North Dakota/South Dakota Listening Session – North Dakota Heritage Center, Bismarck, ND
June 23rd, 5:00 p.m. – 9:00 p.m.
- Women are Sacred Conference Listening Session – Intercontinental Saint Paul Riverfront Hotel, 11 E. Kellogg Boulevard, St. Paul, MN
July 7th, 9:00 a.m. – 4:00 p.m.
- Billings, Montana - CONSULTATION – Double Tree Hotel, 27 N 27th, Billings, MT
The members of the task force are:
- Katharine Sullivan, Principal Deputy Assistant Attorney General, Office of Justice Programs, designee for the Attorney General;
- Tara Sweeney, Assistant Secretary for Indian Affairs, designee for the Secretary of the Interior;
- Terry Wade, Executive Assistant Director, Criminal, Cyber, Response and Services Branch, Federal Bureau of Investigation;
- Laura Rogers, Acting Director, Office on Violence Against Women;
- Charles Addington, Deputy Bureau Director, Bureau of Indian Affairs, Office of Justice Services;
- Trent Shores, U.S. Attorney for the Northern District of Oklahoma and Chair of the Native American Issues Subcommittee of the Attorney General’s Advisory Committee; and
- Jean Hovland, Deputy Assistant Secretary for Native American Affairs and Commissioner, Administration for Native Americans, Department of Health and Human Services.
Marcia Good of the Department of Justice serves as the Executive Director of the task force. The task force will present a progress report to the President by Nov. 26, 2020, and a final report detailing its activities and accomplishments by Nov. 26, 2021.
NOTE: All sessions will be open to the public and the press unless otherwise designated. As a general rule, each consultation and listening session will include a task force media availability. Opening remarks will be open for audio and visual recording. However, the duration of the testimony by participants will be recordable by pen and pad only.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the Department of Justice at www.Justice.gov/Celebrating150Years. 2020 also marks 171st anniversary of the Department of the Interior. Learn more about the history of DOI at www.doi.gov/history/.
Presidential Task Force on Missing and Murdered American Indians and Alaska Natives Announces Tribal Consultations and Listening SessionsRead the Press Release
WASHINGTON – The Presidential Task force on Missing and Murdered American Indians and Alaska Natives announced a series of field consultations and listening sessions to occur across the United States in the coming months.
One of the consultations will be held on July 7 in Billings, Mt.
American Indians and Alaska Natives experience disproportionately high rates of violence. President Trump has called the crisis of missing and murdered Native Americans “sobering and heartbreaking.” The task force, designated Operation Lady Justice, has been empowered to review Indian Country cold cases, to strengthen law enforcement protocols, and work with tribes to improve investigations, information sharing and a more seamless response to missing persons investigations.
Confirmed Dates and Locations
March 2 Department of Health and Human Services
3:00-4:30 Administration for Children & Families Tribal Advisory Council Mtg.
Washington D.C. Listening Session (CLOSED PRESS)
March 12 Tribal Interior Budget Council Listening Session
10:30-12:30 Washington, DC (CLOSED PRESS)
March 17 United South & Eastern Tribes (USET),
2:00-5:00 Midwest Alliance of Sovereign Tribes (MAST) Listening Session
Marriott Marquis, 901 Massachusetts Ave NW
Washington, D.C.
March 24 Muscogee Creek Listening Session
9:00-4:00 River Spirit Casino
8330 Riverside Parkway, Tulsa, OK
March 31 38th Annual Protecting Our Children Conference Listening Session
10:30-noon Marriott Denver Tech Center- Host Hotel
Denver, CO (CLOSED PRESS)
April 15 Pascua Yaqui Listening Session
9:00-4:00 Casino Del Sol
5655 W. Valencia Rd., Tucson, AZ
April 21 Sycuan Band, California Listening Session
1:30-5:00 3 Kwaaypaay Court, El Cajon, CA
April 28 National Indian Programs Training Center - CONSULTATION
9:00-3:00 1101 Indian School Road NW, rooms 233-234
Albuquerque, NM
May 12 Grand Traverse Band of Ottawa and Chippewa Listening Session
9:00-4:00 Grand Traverse Resort & Spa
100 Grand Traverse Village Blvd, Acme Township, MI
May 21 Yakama Nation, Washington Listening Session
9:00-4:00 Legends Casino and Hotel
580 Fort Road, Toppenish WA
June 7 – 11 Anchorage, Alaska – CONSULTATION
Date and Location TBD
June 16 North Dakota/South Dakota Listening Session
10:00-4:00 North Dakota Heritage Center
Bismarck, ND
June 23 Women are Sacred Conference Listening Session
5:00-9:00 pm Intercontinental Saint Paul Riverfront Hotel
11 E. Kellogg Boulevard, St. Paul, MN
July 7 Billings, Montana - CONSULTATION
9:00-4:00 Double Tree Hotel, 27 N 27th, Billings, MT
The members of the task force are:
- Katharine Sullivan, Principal Deputy Assistant Attorney General, Office of Justice Programs, designee for the Attorney General;
- Tara Sweeney, Assistant Secretary for Indian Affairs, designee for the Secretary of the Interior;
- Terry Wade, Executive Assistant Director, Criminal, Cyber, Response and Services Branch, Federal Bureau of Investigation;
- Laura Rogers, Acting Director, Office on Violence Against Women;
- Charles Addington, Deputy Bureau Director, Bureau of Indian Affairs, Office of Justice Services;
- Trent Shores, U.S. Attorney for the Northern District of Oklahoma and Chair of the Native American Issues Subcommittee of the Attorney General’s Advisory Committee; and
- Jean Hovland, Deputy Assistant Secretary for Native American Affairs and Commissioner, Administration for Native Americans, Department of Health and Human Services.
Marcia Good of the Department of Justice serves as the Executive Director of the task force. The task force will present a progress report to the President by Nov. 26, 2020, and a final report detailing its activities and accomplishments by Nov. 26, 2021.
NOTE: All sessions will be open to the public and the press unless otherwise designated. As a general rule, each consultation and listening session will include a task force media availability. Opening remarks will be open for audio and visual recording. However, the duration of the testimony by participants will be recordable by pen and pad only.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the Department of Justice at www.justice.gov/history. 2020 also marks 171st anniversary of the Department of the Interior.
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Pleasant Prairie Man Sentenced for Mail Fraud and Filing a False Tax ReturnRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Philip D. Kuehnl (age 42) of Pleasant Prairie, Wisconsin, was sentenced in federal court for mail fraud and filing false tax returns.
U.S. District Judge Lynn Adelman sentenced Kuehnl to 14 months in prison and ordered him to pay more than $289,000 in restitution.
During the period from approximately 2005 through April 2011, Kuehnl, who has also used the names Mike Hilton, Phil Kay, and Michael Helton, devised and carried out a scheme to defraud and to obtain money by means of material false and fraudulent pretenses and representations. Using various business names, including Premium Discount Pharmaceutical Services, Scrip Saver, Script Saver, Medico, Medico Alliance, and Medione, Kuehnl illegally marketed and sold medical devices, including devices purporting to be Synvisc, Orthovisc, and Hyalagan, to physicians, medical clinics, and other related businesses in the United States.
Kuehnl falsely represented to his customers that he was associated with the manufacturers and legitimate distributions of these devices. In fact, Kuehnl acquired the devices from unknown sources in Europe and smuggled them into the United States, where he re-packaged and re-labeled the devices to appear to come from domestic sources. During his scheme, Kuehnl sold more than 100,000 devices for more than $5.6 million. At the same time, Kuehnl reported virtually none of this income and paid little or no taxes.
In December 2010, federal agents searched Kuehnl’s home in Pleasant Prairie and later interviewed Kuehnl. During that interview, Kuehnl lied repeatedly about his business and concealed the fact that he had a bank account in Hong Kong. Shortly after being interviewed, Kuehnl fled the United States and remained a fugitive until he was arrested in Thailand in 2018. He has been in custody since that time.
“Kuehnl’s greed led him to sell counterfeit medical devices, cheat on his taxes, and then flee from authorities,” said United States Attorney Krueger. “IRS-Criminal Investigation, the FDA, and the prosecutor in this case showed outstanding persistence to ensure Kuehnl faces the consequences of his corruption.”
Chicago Field Office Special Agent in Charge Kathy Enstrom stated, “Kuehnl’s sentencing demonstrates that IRS – Criminal Investigation is committed to working with our law enforcement partners in investigating and prosecuting those who line their pockets using fraudulent business practices and then victimize all taxpayers by continuing their schemes and not paying taxes on their profits.”
This matter was investigated by the Office of Criminal Investigations of the Food and Drug Administration and Criminal investigation Division of the Internal Revenue and was prosecuted by Assistant United States Attorney Matthew L. Jacobs.
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Pittsburgh Man Pleads to Drug Crime Connected to the DS44 Neighborhood GangRead the Press Release
PITTSBURGH, PA – A former resident of Pittsburgh pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Laffayette Fuller, 20, pleaded guilty to one count of conspiracy to distribute or possess with intent to distribute heroin and fentanyl, before United States District Judge William S. Stickman IV. Mr. Fuller is one of 37 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
The court was further advised that Mr. Fuller was involved in the distribution of heroin and fentanyl, including serving as a runner for co-conspirator Christopher Highsmith and facilitating drug transactions for Highsmith. He also possessed a firearm in connection with his drug trafficking activities.
Judge Stickman scheduled sentencing for August 6, 2020, at 10:30 am. The law provides for a total sentence of not more than twenty years in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of each defendant. Fuller remains detained pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
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.
Oronogo, Joplin Men Charged with Kidnapping Webb City WomanRead the Press Release
SPRINGFIELD, Mo. – Two southwest Missouri men have been charged in federal court for kidnapping a Webb City, Missouri, woman and threatening to kill her and her family unless she recanted her testimony in another criminal case.
Jeffrey Marsh, 32, of Oronogo, and Zaqouri Traves Archer, 31, of Joplin, were charged together in a criminal complaint filed in the U.S. District Court in Springfield on Friday, Feb. 28.
The federal criminal complaint alleges that Marsh and Archer kidnapped a victim identified in court documents as “Jane Doe” and transported her across states lines from Kansas to Missouri.
According to an affidavit filed in support of the federal criminal complaint, Jane Doe was staying at a friend’s residence in Crawford County, Kansas, because she was trying to hide from Marsh. Marsh was angry with her, she told investigators, because she had reported him as a suspect when her handgun was stolen. Officers with the Oronogo, Missouri, Police Department had executed a search warrant on Marsh’s residence on January 26, 2020, and located Jane Doe’s stolen firearm in Marsh’s bedroom and returned the firearm to her.
On February 2, 2020, Jane Doe watched the Super Bowl at her friend’s residence and then walked out to her car to go to work. The affidavit describes that when she opened the front passenger door and placed her purse on the seat, Marsh grabbed her and told her to get into the vehicle. She began screaming and fell to the ground in an attempt to get her firearm out of her purse. She felt the barrel of a firearm placed against the back of her head, and Marsh told her to stop screaming or he would shoot her in the head. In the meantime, the affidavit says, Archer – who, like Marsh, was dressed in all black – arrived. Archer had a Taser with him. Jane Doe was forced into the front passenger seat, with Marsh in the driver’s seat and Archer in the back passenger seat. Archer placed duct taped over Jane Doe’s eyes and face.
At one point as they were driving around and making several stops, the affidavit says, Marsh shoved the barrel of his handgun in Jane Doe’s mouth and pulled the trigger. The gun made a click, but did not fire. After the click, Marsh chambered a round and shot it outside the vehicle towards a body of water. During the kidnapping, Marsh struck Jane Doe in her left jaw and told her she was going to recant her statements to the police.
Archer eventually left, the affidavit says, and Marsh took Jane Doe to her apartment in Webb City in his vehicle. Marsh held Jane Doe at gunpoint in her apartment and she was unable to leave that night. Marsh allegedly told Jane Doe to recant her earlier statement or her, her kids, and her whole family would die. Marsh allegedly told Jane Doe that she needed to make his weapon charges go away or her kids would die.
In the morning hours of February 3, 2020, Marsh took Jane Doe back to her vehicle so she could go to the Oronogo Police Department to recant her statement. Once at the Oronogo Police Department, Jane Doe tried to recant her statement, but then disclosed her kidnapping. Later that day, the Jasper County, Missouri, Sheriff’s Office located Jane Doe’s firearm, Marsh’s firearm, and a duct tape roll from a location where they located Archer.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Jasper County, Mo., Sheriff’s Department, the Crawford County, Kan., Sheriff’s Office, and the Oronogo, Mo., Police Department.
Operation Shutdown Corner Update: Bluefield Woman Enters Guilty Plea to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Bluefield woman pled guilty today for her participation in a drug trafficking operation (DTO) in Raleigh and Mercer Counties, announced United States Attorney Mike Stuart. Marika Davis, 38, of Bluefield, pled guilty to conspiracy to distribute a quantity of methamphetamine. Davis was charged as a result of a long-term, multi-state, investigation known as Operation Shutdown Corner.
“Mercer and Raleigh counties are not immune from the drug scourge,” said United States Attorney Mike Stuart. “Operation Shutdown Corner was a critical operation that made the lives of citizens better and safer. We continue with a sense of urgency to zero in on those that sell and distribute poisons to our kids and families.”
Davis admitted that between February 2019, and August 9, 2019, she participated in a DTO operating in Raleigh County and Mercer County, West Virginia by allowing drugs to be shipped to her home address at the request of other members of the DTO. At the hearing, Davis admitted that she was paid to have packages delivered to her house. She also admitted that on August 9, 2019, that she was transporting a package that had been delivered to her house in Bluefield and was delivering it to another member of the DTO in Beckley. She further admitted that after picking up the other member of the DTO, a police officer pulled her over for a traffic violation. At that time officers found the package she was delivering and discovered that it contained approximately two pounds of methamphetamine. Through additional investigation, law enforcement officers were able to determine the package had been sent from California.
Davis faces up to twenty years in federal prison, and $1 million fine, to be followed by at least three years of supervised release when she is sentenced on July 6, 2020.
Stuart commended the cooperative investigative efforts of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), the Beckley/Raleigh County Drug and Violent Crimes Task Force, the Raleigh County Sheriff’s Office, the Beckley Police Department, and the West Virginia State Police.
Assistant United States Attorney Timothy D. Boggess is in charge of the prosecutions. The plea hearing was held before United States District Judge Frank W. Volk.
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Oklahoma City Bank Robbery Suspect ArrestedRead the Press Release
OKLAHOMA CITY – KEITH LAMAR CARTER, 38, of Oklahoma City, has been arrested and charged with robbing the Credit Union One bank, announced U.S. Attorney Timothy J. Downing.
According to an affidavit in support of a criminal complaint filed on February 13, 2020, Carter entered Credit Union One located at 3300 North Lincoln Boulevard in the morning on Monday, December 23. He allegedly handed a demand note to a teller, who provided approximately $2,260.00 to Carter. Carter then fled on a BMX style bicycle. After bank surveillance photos were published in the media and additional investigation was conducted, law enforcement received information that pointed to Carter. He was arrested in Oklahoma City on February 25 and made an initial appearance the next day. Today, after a detention hearing, U.S. Magistrate Judge Gary Purcell detained Carter pending trial.
If found guilty of bank robbery, Carter faces a maximum potential penalty of twenty years in prison, three years of supervised release, a fine of $250,000, and mandatory restitution.
This case is a result of an investigation by the Federal Bureau of Investigation—Oklahoma City Division and the Oklahoma City Police Department. Assistant U.S. Attorneys Ashley Altshuler and Stan West are prosecuting the case.
The public is reminded that this charge is merely an allegation and that Carter is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Ohio Man Sentenced for Role in Akron to Huntington Meth ConspiracyRead the Press Release
HUNTINGTON W.Va. – An Ohio man involved in the distribution of large quantities of methamphetamine which were transported from Akron and sold in West Virginia last year was sentenced to 42 months in federal prison, announced United States Attorney Mike Stuart. Marquis Allen Pritchett, 22, previously pled guilty to conspiracy to distribute 500 grams or more of methamphetamine.
“We are working with law enforcement partners in Ohio and elsewhere to shut down drug trafficking organizations responsible for bringing large quantities of deadly drugs into West Virginia,” said United States Attorney Mike Stuart. “The success of this investigation is attributable to our collaborative efforts.”
Pritchett admitted that between June and August of 2019, he participated with multiple individuals to distribute methamphetamine in the Southern District of West Virginia. During the conspiracy, Pritchett obtained large quantities of methamphetamine which were transported from Akron to be sold in multiple cities in West Virginia including Hurricane and Charleston. Pritchett admitted that he supplied methamphetamine to other West Virginia based meth dealers on a recurring basis and that he was aware the methamphetamine he sold would be re-distributed in West Virginia. As part of his plea agreement, Pritchett admitted that he was responsible for distributing up to 1.5 kilograms of methamphetamine.
This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ona Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
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New Haven Gang Member Sentenced to More than 8 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DEJUAN WARD, also known as “Hot Boi,” 23, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 97 months of imprisonment, followed by three years of supervised release, for his role in a violent street gang.
According to court documents and statements made in court, in 2016, the New Haven Police Department’s Shooting Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating numerous unsolved shootings that had occurred in New Haven and Hamden. Ballistic examination of recovered cartridge cases determined that three firearms were used in 18 shootings committed in or around New Haven in 2016. The investigation revealed that the firearms were possessed by members and associates of the Goodrich Street Boys (“GSB”), a New Haven street gang, and that GSB members also were involved in a number of other shootings in 2016, many of them retaliatory against rival gang members.
GSB members distributed heroin, cocaine and marijuana, and used social media to post pictures and videos of themselves with firearms, and used social media to threaten rivals, including individuals who might cooperate with law enforcement.
On August 3, 2017, a grand jury in New Haven returned a 13-count indictment charging Ward and five other GSB members with racketeering, attempted murder, firearm and narcotics trafficking offenses. The indictment alleged that, between September 2015 and May 2016, GSB members and associates were involved in six gang-related shootings that caused injuries to five individuals.
Ward was involved in at least one attempt to murder a rival gang member, and he regularly sent or posted pictures and videos of himself with firearms in an effort to intimidate rivals and show off for the group. On August 1, 2016, Ward posted a video of himself brandishing a revolver with an obliterated serial number. The firearm was subsequently found in a van after a triple homicide in Wallingford on December 30, 2016.
GSB members shot two individuals on April 3, 2016, on the belief that one of the shooting victims had been cooperating with police after a GSB shooting in 2014. In addition, GSB members shot at rival gang members and other individuals on February 6, 2016, in a densely populated residential area; March 13, 2016, during a heavily attended St. Patrick’s Day parade in downtown New Haven; May 27, 2016, during which one individual was shot in the stomach and head and another was shot in the hand; and July 21, 2016, during which an innocent bystander was shot in the chest through her bedroom window.
Ward has been detained since January 2017. He previously pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity and one count of possession of a firearm in furtherance of a drug trafficking crime.
Ward is the last of six GSB members to be sentenced. On October 24, 2019, Michael Via, also known as “Mike Live,” was sentenced to 78 months in prison; on October 30, 2019, Michael Belle, also known as “MB,” was sentenced to 87 months in prison; on October 31, 2019, Milton Westley, also known as “Reese,” was sentenced to 156 months in prison; on November 4, 2019, Clifford Brodie, also known as “Cliff G,” was sentenced to 168 months in prison, and on January 13, 2020, Sedale Pervis, also known as “Scope,” was sentenced to 144 months in prison.
U.S. Attorney Durham noted that federal prisoners are required to serve at least 85 percent of their prison term and are not eligible for parole.
U.S. Attorney Durham further noted that federal law prohibits any retaliation against a federal witness. If persons retaliate against a federal witness “because of attendance at or testimony in a criminal case, the maximum term of imprisonment which may be imposed for the offense under this section shall be the higher of that otherwise provided by law or the maximum term that could have been imposed for any offense charged in that case.” Because the maximum term charged in the case was life imprisonment, anyone who tampers with a federal witness in this case faces life imprisonment.
This prosecution was part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
This investigation was conducted by ATF and the New Haven Police Department. The FBI, Hamden Police Department and New Haven State’s Attorney’s Office provided critical assistance in the investigation.
An instrumental component of this investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter was prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter D. Markle, Rahul Kale and Jocelyn Courtney Kaoutzanis.
Monongalia County men sentenced for firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – DeRon Parrish and Andre Parrish, both of Morgantown, West Virginia, were sentenced today for firearms charges, U.S. Attorney Bill Powell announced.
DeRon, age 31, was sentenced to 46 months incarceration. He pled guilty to one count of “Unlawful Possession of Firearm as Convicted Felon” in October 2019. DeRon, a convicted felon, admitted to having three shotguns in November 2018 in Monongalia County.
Andre, age 28, was sentenced to 12 months and one day incarceration. He pled guilty to one count of “Unlawful Possession of a Firearm as Drug User” in October 2019. Andre, who is prohibited from having a firearm, admitted to having three 12-guage shotguns and a pistol in Monongalia County in November 2018.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Morgantown Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Miami, Florida Man Sentenced to Time Served for Conspiracy to Commit Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Yanexy Ricardo Garcia, age 33, of Miami, Florida, was sentenced to time served and 4 years of supervised release for Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 1343. The charges arose from an investigation by the Chickasaw Lighthorse Police Department and the United States Secret Service.
The Superseding Indictment alleged in Count One that from November 2017 to March 27, 2018, in the Eastern District of Oklahoma and elsewhere, the defendant knowingly and willfully conspired and agreed with other persons, known and unknown to the Grand Jury, to commit an offense of Wire Fraud. The conspiracy involved a scheme whereby the defendant and others used gas skimming devices to obtain bank account information, which included individual credit or debit card numbers, names of account holders assigned to those numbers, and personal identification numbers.
“The use of skimming devices to steal credit card information is not a new trend, but the devices used today are more difficult to detect. There are precautions we should all take to protect our credit and bank card information from thieves using skimming devices. For example, before using a gas pump, make sure the panel is closed and doesn’t show signs of tampering. Many pumps now have a security seal. If the seal is broken, don’t use that pump,” United States Attorney Brian J. Kuester said. “Awareness that thieves are using this technology and exercising caution before using your credit card at the pump or at ATM’s are important to help us avoid being victims of this type of criminal scheme.”
Glenn Dennis, United States Secret Service Special Agent in Charge Oklahoma City Field Office said, “The use of emerging technology to steal personal identification and credit card data from gas pumps and other points of sale is an ongoing threat to commerce and presents a unique challenge for law enforcement. Key partnerships between police agencies like the Chickasaw Nation Lighthorse Police Department and the US Secret Service result in the successful pursuit and prosecution of criminal organizations engaging in these types of complex cyber enabled financial frauds that affect Oklahoma’s citizens and visitors alike.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Shannon Henson represented the United States.
Member of Navajo Nation pleads guilty to federal charge of assault causing serious bodily injury in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Frank Howe Jr., 24, of Rock Springs, New Mexico pleaded guilty on Feb. 28 in federal court in Albuquerque to assault resulting in serious bodily injury.
According to public court documents, a grand jury indicted Howe, Jr. on Dec. 4, 2018. According to his plea agreement, Howe, an enrolled member of the Navajo Nation, admitted to physically assaulting his girlfriend in Indian Country on May 7, 2018. He was driving his vehicle when he got into an argument with the victim. Howe pulled his vehicle over and assaulted the victim causing serious bodily injury.
Howe is currently in custody awaiting sentencing. He faces up to 10 years in prison.
The Navajo Nation Police Department and the Navajo Nation Division of Public Safety-Criminal Investigations services investigated this case with the assistance from the McKinley County Sheriff’s Office. Assistant U.S. Attorney David P. Cowen is prosecuting the case.
McFarland Man Sentenced for Distributing Methamphetamine and Possessing a FirearmRead the Press Release
FRESNO, Calif. — Edgar Hernandez, aka Dopey, 34, of McFarland, was sentenced today to 16 years and six months in prison for possessing with the intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney McGregor W. Scott announced.
According to court documents, on January 17, February 28, and March 6, 2019, Hernandez sold methamphetamine in the McFarland area. Hernandez was arrested on March 6, 2019, and agents seized a .45-caliber handgun and methamphetamine. This is Hernandez’s eighth felony conviction within a 16-year span.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the McFarland Police Department. Assistant United States Attorney Thomas Newman is prosecuting the case.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case was also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Manchester Man Pleads Guilty to Threatening Federal AgentRead the Press Release
Bangor, Maine: A Manchester, Maine man pleaded guilty today in federal court in Bangor to threatening a federal agent, U.S. Attorney Halsey B. Frank announced.
Cody Lyon, 24, pleaded guilty to three counts of transmitting threatening interstate communications.
According to court records, in May and June 2019, agents with the Food and Drug Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) were investigating shipments of illicit goods to a residence in Maine. Lyon’s name came up during the investigation as a person of interest. After learning of the investigation, on June 15, 2019, Lyon left a series of threatening voicemail messages on the cellular phone of one of the FDA agents involved in the investigation.
Lyon faces a maximum penalty on each charge of up to five years in prison and a fine of up to $250,000.
“As FDA’s criminal law enforcement arm, the Office of Criminal Investigations protects the American public by investigating illegal activities involving FDA-regulated products,” said Jeffrey J. Ebersole, Special Agent in Charge, FDA Office of Criminal Investigations’ New York Field office. “Threatening any individual involved in the criminal investigation process will not be tolerated. We commend the efforts of the Department of Justice and our fellow federal and state law enforcement agencies for vigorously pursuing the prosecution of this matter.”
HSI and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, with assistance provided by the Maine State Police.
Man Who Cyberstalked and Threatened Families of Parkland Victims Sentenced to PrisonRead the Press Release
MIAMI –Brandon Michael Fleury, 22, of Santa Ana, California, was sentenced to 66 months in federal prison today for cyberstalking and sending a kidnapping threat to families of victims of a mass shooting in Parkland, Florida, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office.
According to evidence introduced during the South Florida jury trial, Fleury used thirteen different Instagram accounts, using aliases including alleged Parkland shooter Nikolas Cruz, notorious serial killer Ted Bundy, and others, to target families and friends of Parkland shooting victims with messages over the course of three weeks between Dec. 22, 2018 and Jan. 11, 2019. Many of the messages, including ones written under usernames referring to Cruz and containing Cruz’s profile picture, taunted the message recipients about the deaths of loved ones in the Parkland shooting. On Dec. 25, 2018, Fleury, sent a message stating, “I’m your abductor I’m kidnapping you fool.” On Jan. 9, 10, and 11, 2019, Fleury continued to harass, intimidate, and threaten the message recipients from multiple Instagram accounts. These included messages sent under the username “the.douglas.shooter,” and using a profile picture of Nikolas Cruz. These messages included statements like, “With the power of my AR-15, you all die,” and “With the power of my AR-15, I take your loved ones away from you PERMANENTLY.”
After examining Fleury’s tablets, law enforcement found thousands of saved images of Ted Bundy, images of the targeted victims, and saved screenshots of the messages that he had sent the victims.
Fleury was convicted of interstate transmission of a threat to kidnap, in violation of Title 18, United States Code, Section 875(c), and interstate cyberstalking, in violation of Title 18, United States Code, Section 2261A (Case No. 19cr60056). He was sentenced by U.S. District Judge Rudolfo A. Ruiz II to 60 months as to Counts 1-3 to run concurrently and 6 months as to Count 4, to run consecutive to Counts 1-3.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI’s South Florida Violent Crime Fugitive Task Force and Broward Sheriff’s Office in this matter. U.S. Attorney Fajardo Orshan also thanked the FBI’s Los Angeles Field Office and task force members. This case was prosecuted by Assistant U.S. Attorney Ajay Alexander.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Man Arrested for Bomb Threats Against Collins Aerospace in WilsonRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that KiDARRYL T. PHILLIPS faces federal charges for Threatened Use of a Weapon of Mass Destruction.
According to publicly filed documents in federal court, PHILLIPS is alleged to have made six bomb threats targeting Collins Aerospace in Wilson, North Carolina. Phillips is a contract employee of Collins Aerospace and had his initial appearance today in front of United States Magistrate Judge James E. Gates.
If convicted, PHILLIPS would face up to a maximum term of life imprisonment, a $250,000 fine as to each count, and a term of up to five years supervised release following any term of imprisonment.
The charges and allegations contained in the criminal complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The Wilson Police Department and the Federal Bureau of Investigation are conducting the investigation of this case. Assistant United States Attorney Gabriel Diaz is prosecuting 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.
Major Generic Pharmaceutical Company Admits to Antitrust CrimesRead the Press Release
Sandoz Inc., a generic pharmaceutical company headquartered in New Jersey, was charged for conspiring to allocate customers, rig bids, and fix prices for generic drugs, the Department of Justice announced. A four-count felony charge was filed today in the United States District Court for the Eastern District of Pennsylvania in Philadelphia, charging Sandoz with participating in four criminal antitrust conspiracies, each with a competing manufacturer of generic drugs and various individuals. This represents the third pharmaceutical company to admit to criminal antitrust charges in the Antitrust Division’s ongoing investigation. The charged conspiracies took place between 2013 and 2015.
The Antitrust Division also announced a deferred prosecution agreement resolving the charges against Sandoz, under which the company agreed to pay a $195 million criminal penalty and admitted that its sales affected by the charged conspiracies exceeded $500 million. Under the deferred prosecution agreement, Sandoz has agreed to cooperate fully with the Antitrust Division’s ongoing criminal investigation. As part of the agreement, the parties will file a joint motion, which is subject to approval by the Court, to defer for the term of the DPA any prosecution and trial of the charges filed against the defendant.
“Today’s resolution, with one of the largest manufacturers of generic drugs, is a significant step toward ensuring that prices for generic drugs are set by competition, not collusion, and rooting out antitrust crimes that cheated American purchasers of vital medicines,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Sandoz conspired for years with other manufacturers and their executives to raise prices for critical medications, and the Antitrust Division will continue its ongoing investigation to hold both individuals and corporations accountable for these crimes.”
“This significant resolution is a critical step toward ensuring a free and open marketplace for the competitive pricing of generic drugs,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General. “The outstanding work by the legal and investigative teams effectively quashed an environment of bid rigging, market allocation and price fixing within the generics industry. Along with our partners at the Department of Justice’s Antitrust Division and the Federal Bureau of Investigation, the U.S. Postal Service Office of Inspector General will continue to aggressively investigate this type of detrimental behavior.”
“This resolution demonstrates the continued dedication of the FBI and our partners to root out collusion and dishonest business practices within the pharmaceutical industry, on behalf of the American people,” said Timothy M. Dunham, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division. “We will not turn a blind eye while companies and executives pad their pocketbooks. The FBI will continue to fight for the public to have access to a competitive marketplace of medications that Americans count on.”
“When a pharmaceutical company participates in bid-rigging and price-fixing, the entire community suffers,” said U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania. “My Office will continue to work with the Department of Justice and all of our law enforcement partners to ensure that prices for medicine are set legally, and not through illegal means to benefit pure greed.”
In the deferred prosecution agreement, Sandoz admitted that it participated in the charged antitrust conspiracies, as follows:
- Count One charges Sandoz for its role in a conspiracy with a generic drug company based in New York and other individuals. Sandoz admitted that drugs affected by this conspiracy included clobetasol (cream, emollient cream, gel, ointment, and solution), desonide ointment, and nystatin triamcinolone cream.
- Count Two charges Sandoz for its role in a conspiracy with Kavod Pharmaceuticals LLC (formerly known as Rising Pharmaceuticals) to allocate customers and fix prices of benazepril HCTZ. Rising was charged and entered into a deferred prosecution agreement in December 2019 for its participation in the same conspiracy.
- Count Three charges Sandoz for its role in a conspiracy with a generic drug company based in Michigan. Sandoz admitted that drugs affected by this conspiracy included desonide ointment.
- Count Four charges Sandoz for its role in a conspiracy with a generic drug company based in Pennsylvania. Sandoz admitted that drugs affected by this conspiracy included tobramycin inhalation solution.
Today’s case is the seventh to be filed in the Antitrust Division’s ongoing investigation into the generic pharmaceutical industry. Sandoz is the third company to be charged; the previous two companies also entered into deferred prosecution agreements. Four individual charges have been filed in the investigation. Three executives have pleaded guilty, including former Sandoz executive Hector Armando Kellum. Ara Aprahamian, a former executive of a company based in New York, was indicted in February 2020 and is awaiting trial.
The charged offense carries a statutory maximum penalty of a $100 million fine per count for corporations, which may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $100 million.
This charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the generic pharmaceutical industry, which is being conducted by the Antitrust Division with the assistance of the United States Postal Service Office of Inspector General, the FBI’s Washington Field Office, the FBI’s Philadelphia Field Office, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to the generic pharmaceutical industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Los Angeles Area Man Pleads Guilty to Smuggling Restricted PesticidesRead the Press Release
Assistant U. S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – February 27, 2020
SAN DIEGO – Luis Alberto Vargas pleaded guilty in federal court today, admitting that he illegally smuggled pesticides into the U.S. from Mexico.
In his plea agreement, Vargas admitted that on September 9, 2019, he entered the United States at the Otay Mesa Port of Entry as a passenger in a black Toyota Camry. He and the other occupants of the vehicle twice advised the primary inspector they were not bringing anything from Mexico. The primary inspector found three large suitcases in the trunk and referred the vehicle for secondary inspection.
Vargas acknowledged that the secondary inspector discovered two bottles of the Mexican pesticide Agroclor Clorpirifos Etil (1 liter each) and one 250 ml bottle of the Mexican pesticide Minartrin M Abamectina, concealed in a large suitcase in the trunk of the vehicle. Vargas admitted that he purchased the pesticides in Culiacan, Mexico, and smuggled the pesticides into the United States.
The pesticides imported by Vargas were labeled in Spanish and did not bear any EPA registration number, as required by law for pesticides intended for use in the United States. Pesticides with the active ingredients of those imported by Vargas are restricted use pesticides in the United States, and may be purchased and applied only by certified pesticide applicators. Vargas admitted that he holds no such certificate. Moreover, the lawful importation of pesticides requires a Notice of Arrival to be provided to U.S. Customs pursuant to 19 CFR § 12.112. Vargas further admitted that he provided no such Notice of Arrival for the pesticides in question.
“Laws regulating pesticides are meant to protect the public and the environment,” said U.S. Attorney Robert Brewer. “We are aggressively prosecuting violators who don’t respect these important regulations.”
“The defendant knowingly smuggled unregistered pesticides into the country violating environmental regulations established to protect human health and the environment,” said Acting Special Agent-in-Charge Scot Adair of EPA’s Criminal Investigation Division in California. “Today’s guilty plea demonstrates that individuals who intentionally violate those laws will be held responsible for their crimes.”
“The smuggling and use of hazardous unregulated pesticide products is illegal and puts people's health, particularly young children, at risk,” said Cardell T. Morant, Acting Special Agent in Charge for Homeland Security Investigations (HSI) San Diego. “HSI will continue to work with Customs and Border Protection, the Environmental Protection Agency, the U.S. Attorney’s Office, and other partners to prosecute those who threaten the health and safety of our communities for their own personal gain.”
Sentencing for Vargas is set for June 5, 2020 at 9:00 a.m. before U.S. District Judge Dana M. Sabraw.
DEFENDANT Case Number 19cr4279-DMS
Luis Alberto Vargas Age: 29 Bellflower, CA
SUMMARY OF CHARGES
Smuggling – Title 18, U.S.C., Section 545
Maximum penalty: Twenty years’ imprisonment and $250,000 fine
AGENCY
Homeland Security Investigations; U.S. Environmental Protection Agency, Criminal Investigation Division
Local Firm Pleads Guilty to Hazardous Waste ViolationsRead the Press Release
Assistant U. S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – February 27, 2020
SAN DIEGO – Curtis Technology, Inc., a San Diego firm that makes specialized coatings, pleaded guilty in federal court yesterday, admitting that the company illegally transported hazardous waste from its facility without a manifest. In pleading guilty, Curtis Technology admitted that it conducted metal finishing operations at its location on Sorrento Valley Road, which generated various wastes, including ferric chloride, alkaline, waste filter cake, solvents and other chemicals.
The company admitted that between December 12, 2015 and August 22, 2019, CTI owner Alex Jvirblis (deceased) and a maintenance employee transported chemicals, including waste ferric chloride, waste filter cake, waste alkaline, waste solvents and other chemical wastes, from the CTI location on Sorrento Valley Road to three residences in San Diego owned by Jvirblis located on Wrelton Drive, Corte Morea, and Bourgeois Way. The chemicals were not accompanied by a hazardous waste manifest at the time of transportation.
The waste ferric chloride and waste alkaline are federally-regulated hazardous wastes having the characteristic of corrosivity. The waste solvents are federally-regulated hazardous wastes having the characteristic of ignitability. The waste filter cake is a federally-regulated listed hazardous waste, assigned waste code F006 for wastewater treatment sludges from electroplating operations. All of these wastes are required by regulation to be transported with a uniform hazardous waste manifest. The firm admitted that Alex Jvirblish acted knowingly, that is with knowledge that the chemicals transported to the three sites were not accompanied by a hazardous waste manifest and with knowledge that the chemicals were waste that had the potential or substantial potential to be harmful to others or to the environment.
Federal search warrants were conducted at the three sites in November, 2019, and the chemicals were recovered. At one of the residences, chemicals were discovered which were too unstable to safely transport for disposal. The area was evacuated, and the chemicals were detonated on site by the Sheriff’s Department Bomb Squad.
“These kind of violations have the potential to jeopardize public health and damage the environment,” said U.S. Attorney Robert Brewer. “We will hold companies accountable when they take short cuts that put people and our environment at risk.”
San Diego FBI Special Agent in Charge Scott Brunner stated, “Today's plea was made possible by extraordinary investigative effort expended in a compressed time frame by the San Diego Environmental Crimes Task Force. The FBI is grateful for the integral support of the San Diego Fire Department, San Diego Police Department, San Diego County Department of Environmental Health (HAZMAT) and the Environmental Protection Agency, in expeditiously locating and neutralizing these dangerous chemicals."
“The law protects our communities and the environment by requiring proper storage, transportation, and disposal of hazardous waste,” said Acting Special Agent-in-Charge Scot Adair of EPA’s Criminal Investigation Division in California. “This case demonstrates that EPA and its law enforcement partners are committed to holding knowing violators of those requirements accountable for their actions."
Sentencing is set before U.S. District Judge John A. Houston on March 16, 2020, at 11:00 am.
DEFENDANT Case Number 20cr0715-JAH
Curtis Technology, Inc. Incorporated: 1981 San Diego, CA
SUMMARY OF CHARGES
Transportation of Hazardous Waste Without a Manifest – Title 42, U.S.C., Section 6928(d)(5)
Maximum penalty for corporation: Five years of probation and a fine of the greater of $500,000 or $50,000 per day of violation and a minimum fine of $5,000 per day of violation
AGENCIES
U.S. Environmental Protection Agency, Criminal Investigation Division
Federal Bureau of Investigation
Kaktovik Man Sentenced to Federal Prison for Wasting Polar BearRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Christopher L. Gordon, 36, of Kaktovik, Alaska, was sentenced today by U.S. District Judge Ralph R. Beistline to serve three months in federal prison, to be followed by a one-year term of supervised release, after pleading guilty to knowingly shooting and killing a polar bear and leaving the harvestable remains to waste, in violation of the Marine Mammal Protection Act. Gordon was also ordered to pay a $4,500 fine.
According to the court documents, on Dec. 20, 2018, in the village of Kaktovik, Gordon, who is a Whaling Captain, had a large quantity of Bowhead whale meat stored in the front yard of his residence. Although bear resistant food storage lockers were available in Kaktovik, Gordon elected not to utilize them. The whale meat attracted a polar bear. Gordon then shot and killed the polar bear because it was trying to eat the butchered whale meat that Gordon left in his yard. Gordon admitted that he did not shoot the polar bear in self-defense.
Gordon is an Alaskan Native who is permitted under the Marine Mammal Protection Act to hunt or kill polar bears and other marine mammals for subsistence purposes or for the purpose of creating and selling authentic native articles of handicrafts and clothing, however this cannot be done in a wasteful manner. According to the court documents, between Dec. 20, 2018, and May 22, 2019, Gordon left the polar bear carcass in his front yard without salvaging any portion or parts of the polar bear and allowing it to become covered with snow. Approximately three weeks after Gordon shot the polar bear, a snow removal vehicle moved the polar bear carcass, ripping off one of its legs. Although portions of the polar bear carcass were still salvageable after this event, Gordon made no effort at any time to salvage any part of the polar bear, including the pelt, claws or teeth. Five months later, on May 22, 2019, Gordon had the polar bear carcass discarded and burned in the Kaktovik dump without ever using or salvaging any of its parts.
At the sentencing hearing, Judge Beistline noted that Gordon, as an Alaskan Native, had the legal right to harvest the polar bear, however he had numerous opportunities to properly salvage the polar bear for subsistence or other purposes, however he did not do so. Judge Beistline also noted the importance of deterring future similar conduct in fashioning the sentence. During his one-year period of supervised release Gordon is not permitted to hunt marine mammals with the exception of Bowhead whales.
The U.S. Fish and Wildlife Service conducted the investigation leading to the charges in this case. This case was prosecuted by Assistant U.S. Attorney Ryan D. Tansey.
Joint Statement from DOJ, DOS, DOD, DHS, ODNI, FBI, NSA, and CISA on Preparations for Super TuesdayRead the Press Release
U.S. Attorney General William P. Barr, Secretary of State Mike Pompeo, Secretary of Defense Mark Esper, Acting Secretary of Homeland Security Chad Wolf, Acting Director of National Intelligence Richard Grenell, Federal Bureau of Investigation Director Christopher Wray, U.S. Cyber Command Commander and National Security Agency Director Gen. Paul Nakasone, and Cybersecurity and Infrastructure Security Agency Director Christopher Krebs today released the following joint statement:
“Tomorrow, millions of voters in more than a dozen states and territories will cast their votes in presidential primaries. ‘Super Tuesday’ will see more Americans head to the polls than any other day of the primary season. We continue to work with all 50 states, U.S. territories, local officials, political parties and private sector partners to keep elections free from foreign interference.
“Americans must also remain aware that foreign actors continue to try to influence public sentiment and shape voter perceptions. They spread false information and propaganda about political processes and candidates on social media in hopes to cause confusion and create doubt in our system. We remain alert and ready to respond to any efforts to disrupt the 2020 elections. We continue to make it clear to foreign actors that any effort to undermine our democratic processes will be met with sharp consequences.
“The level of coordination and communication between the federal government and state, local and private sector partners is stronger than it’s ever been. Our Departments and Agencies are working together in an unprecedented level of commitment and effort to protect our elections and to counter malign foreign influence, but voters have a role to play too.
“We encourage all voters going to the polls to check your voter registration and know ahead of time when to vote, where to vote, what’s on your ballot, and whether your state requires identification. Your state or local election official’s office is the most trusted source for election material. A well-informed and vigilant republic is the best defense against disinformation.”
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.
Jefferson County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Wayne Samuel Ellis Clyburn, Of Ranson, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Clyburn, age 51, pled guilty to one count of “Unlawful Use of Communication Facility.” He admitted to using a phone to further a drug deal in December 2018 in Jefferson County.
Clyburn faces up to four 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 and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, are prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, 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.
Jackson Man Pleads Guilty under Project EJECT to Trafficking MethamphetamineRead the Press Release
Jackson, Miss – Corey Deonte Collins, 29, of Jackson, pled guilty today before U.S. District Court Judge Carlton W. Reeves to possessing with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
In February and March 2019, an individual made two purchases of methamphetamine from Collins. An analysis conducted by the Drug Enforcement Agency revealed the methamphetamine was 99% pure. On July 24, 2019, Collins was charged in a federal indictment with two counts of possessing with intent to distribute methamphetamine.
Thompson will be sentenced on June 2, 2020, by Judge Reeves, and faces a statutory maximum penalty of 40 years in prison and a $5 million fine.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Bert Carraway.
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.
Illegal Alien Sentenced for Unlawful Reentry After RemovalRead the Press Release
Gulfport, Miss. – Alejandro Santacruz-Villanueva, 40, an illegal alien from Mexico, was sentenced Friday by U.S. District Judge Sul Ozerden, to “time served” (3 months and 16 days) as well as to one year of supervised release for unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, and Gregory Bovino, Chief Patrol Agent of the Border Patrol, New Orleans Sector. Additionally, Santacruz-Villanueva will face Department of Homeland Security removal proceedings to remove him from the United States back to his home nation of Mexico.
On November 12, 2019, the U.S. Border Patrol responded to a call for assistance from a fellow law enforcement officer who had conducted a traffic stop on Interstate 10 in Jackson County. The driver was identified as Alejandro Santacruz-Villanueva, a Mexican national, without appropriate documents, who was illegally present in the United States.
A records search revealed that Santacruz-Villanueva had been previously removed from the United States to Mexico on January 17, 2014.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Border Patrol, the South Mississippi Metro Enforcement Team, the Jackson County Sheriff’s Department, and the City of Gautier Police Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Huntington Man Sentenced in Marijuana Conspiracy Involving United States Postal ServiceRead the Press Release
HUNTINGTON W.Va. – A formal postal employee who participated in a scheme to distribute marijuana mailed from California to Huntington over a period of several years was sentenced to federal prison, announced United States Attorney Mike Stuart. Michael Mason Morton, 55, was sentenced to six months in federal prison after previously entering a guilty plea to distribution of marijuana.
“Morton abused his position as a letter carrier with the United States Postal Service,” said United States Attorney Mike Stuart. “He was a drug dealer in a postal uniform with a delivery route. The team of law enforcement personnel that worked this case did an outstanding job and put an end to this marijuana distribution scheme.”
On March 15, 2018, agents located two parcels at the Huntington Post Office which had been mailed from the State of California to Huntington and were found to contain marijuana. Agents conducting surveillance observed Morton, a letter carrier with the United State Postal Service at the time, load the parcels into a postal delivery truck and drive to the Dollar General store located in the 800 block of Norway Avenue in Huntington. At that location, Morton provided the marijuana to another individual who arrived in a separate vehicle. A trooper with the West Virginia State Police subsequently conducted a traffic stop of the vehicle and recovered the parcels which contained approximately 16 pounds of marijuana.
Morton further admitted that, between 2015 and March of 2018, he conspired with others to distribute marijuana in the Huntington area. During the conspiracy, marijuana was frequently shipped through the United States mail from California to Huntington. Once the parcels containing marijuana arrived in Huntington, Morton delivered the parcels on his assigned delivery route. Morton admitted that he was paid money for his participation in the conspiracy and that he was responsible for the distribution of up to 80 kilograms of marijuana.
The United States Postal Service Office of Inspector General, the United States Postal Inspection Service, the West Virginia State Police – Violent Crime and Drug Task Force West, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Barboursville Police Department, conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
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Hartford Man Sentenced to 7 Years in Federal Prison for Heroin Distribution and Firearm Possession OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on February 28, RAFAEL ARROYO, 35, of Hartford, was sentenced by U.S. District Judge Alvin W. Thompson in Hartford to 84 months of imprisonment, followed by three years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, on July 26, 2018, a court-authorized search of Arroyo’s Broad Street apartment revealed approximately 400 bags of packaged heroin, a distribution quantity of cocaine, a Star S.A. 9mm semiautomatic pistol, an H&R “Sportsman” .22 caliber long rifle revolver, a Group Industries 9mm firearm, assorted ammunition, and three bulletproof vests.
Arroyo has been detained since his arrest. On September 23, 2019, he pleaded guilty to one count of possession with intent to distribute heroin and cocaine, and one count possession of firearms in furtherance of a drug trafficking crime.
Arroyo’s criminal history includes state felony convictions for drug and firearm offenses.
This matter was investigated by the Hartford Police Department and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Gang Task Force. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Fresno Man Sentenced to over 20 Years in Prison for Illegal Firearms Possession and Drug TraffickingRead the Press Release
FRESNO, Calif. — Darien Hatcher, 29, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to 20 years and six months in prison for two counts of being a felon in possession of a firearm and one count of conspiracy to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
On Oct. 22, 2015, Hatcher was arrested in Fresno for possession of a loaded Ruger 9 mm pistol that was not registered in his name and had been reported stolen. Hatcher was a previously convicted felon and prohibited from possessing a firearm. On July 18, 2016, Hatcher pleaded guilty to the charge. While out on bond and awaiting sentencing for this conviction, Hatcher conspired with others to distribute methamphetamine in Fresno. On Nov. 22, 2016, Hatcher was arrested and again found to be in possession of a firearm. He was charged with trafficking methamphetamine and being a felon in possession of a firearm.
According to court documents, on Nov. 18, 2019, Hatcher pleaded guilty to conspiracy to distribute methamphetamine and being a felon in possession of a firearm.
This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fresno Police Department, the California Department of Justice, the California Highway Patrol Special Operations Unit, and MAGEC. Assistant U.S. Attorney Kimberly A. Sanchez prosecuted the cases.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Former supervisor in DeKalb County’s Tax Commissioner’s Office charged with bribery and blackmailRead the Press Release
ATLANTA - Gerald D. Harris, a former supervisor in DeKalb County’s Tax Commissioner’s Office, allegedly accepted bribe payments from customers to register unlawfully vehicles and then tried to blackmail a bribe payer by threatening to inform on her to the FBI.
“Harris traded his integrity for money and betrayed the trust of the citizens of DeKalb County by allegedly accepting bribe payments,” said U.S. Attorney Byung J. “BJay” Pak. “Then, in an audacious display of bravado, Harris attempted to blackmail one of those bribe payers.”
“The FBI stands firm with its partners in law enforcement to expose public officials who choose their own financial interest over the taxpayers they serve,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The crimes Harris is charged with erode the public’s trust in government and we will continue to vigorously pursue any public official who chooses to violate that trust.”
“Gerald Harris not only abused his position of public trust for his own gain, but also attempted to extort another involved in the scheme. Such actions by a public official will not be tolerated. The DeKalb County District Attorney’s Office will continue to support its law enforcement partners, as well as the DeKalb County Tax Commissioner’s Office, in ensuring Harris is held fully accountable for these crimes,” said DeKalb County District Attorney Sherry Boston.
“Taking bribes to illegally register vehicles is an egregious crime that compromises the public’s trust of public servants throughout all levels of government,” stated Department of Revenue Commissioner David Curry. “Bad actors such as Mr. Harris have no place in public service.”
“I am pleased to see that charges have been brought in this case. Since our staff uncovered this illegal activity, we’ve continued to work closely with the authorities for months to assist in the investigation of Mr. Harris. Protecting the integrity of our operation and the interest of DeKalb taxpayers is our top priority. We remain committed to reviewing our procedures and training our staff to detect fraudulent activity and improper behavior. On behalf of DeKalb taxpayers, we thank law enforcement for working quickly and collaboratively to bring this case to justice,” said DeKalb County Tax Commissioner Irvin J. Johnson.
According to U.S. Attorney Pak, the charges, and other information presented in court: The DeKalb County Tax Commissioner’s Office was an agency of DeKalb County, Georgia responsible for the billing and collection of property taxes, processing of homestead exemptions, and collecting delinquent taxes. In addition, the Motor Vehicle Division of the DeKalb County Tax Commissioner’s Office handled all aspects of motor vehicle registrations, including: (a) managing the collection of motor vehicle taxes, (b) issuing vehicle tags and titles, and (c) processing vehicle registration renewals for citizens and businesses located in DeKalb County.
From July 2017 to November 2019, Harris served as the Supervisor of Tax Tag Clerks for the DeKalb County Tax Commissioner’s Office. In that position, Harris oversaw the Tax Commissioner’s North Office’s clerks who processed motor vehicle registrations and renewals for customers.
From approximately mid-2018 to November 2019, Harris accepted bribe payments from customers to unlawfully register vehicles or renew vehicle registrations. For example, Harris accepted bribe payments:
- To register vehicles to individuals who did not have Georgia driver’s licenses or identification cards as required, typically in exchange for $200 per vehicle;
- To register vehicles that did not have the required accompanying documentation (such as: titles or Forms MV-1 title/tag application), typically in exchange for $500 to $1,000 per vehicle; and
- To renew vehicles that had not passed emissions tests by falsely entering that the vehicles had emissions exemptions, typically in exchange for $100 per vehicle.
In total, Harris accepted at least $30,000 in bribe payments.
In addition to accepting bribe payments, Harris also attempted to blackmail one of the individuals who had been paying him bribe money. On November 18, 2019, DeKalb County Tax Commissioner’s Office fired Harris for accepting bribe payments (as fully detailed above). On the same date, Harris admitted to the FBI that he had accepted more than $30,000 in bribe payments in exchange for illegally registering/renewing vehicles for several people, including a person identified as Individual-1.
On December 12, 2019, Harris met with Individual-1 at an Atlanta, Georgia, gas station. During the meeting, Individual-1 (who did not know that Harris had been fired) gave Harris registration documentation so that Harris could register four vehicles. Indvidual-1 gave Harris checks and cash to cover the costs of the required fees and taxes for each vehicle. Given that Harris no longer worked for the DeKalb County Tax Commissioner’s Office, Harris obviously could not register the four vehicles for Individual-1. Nevertheless, Harris accepted and kept the money from Individual-1.
Then on December 17, 2019, Individual-1 sent a series of text messages to Harris requesting that Harris return the registration documentation and money. On December 17 and 18, 2019, Harris sent a series of text messages to Individual-1 where Harris stated that: (a) he was under investigation by the FBI, (b) the FBI has a video of Harris and Individual-1 meeting, (c) “[a]ll of us can be in trouble,” (d) Harris needed to know “how much” money will he be paid not to give information to the FBI, and (e) Harris is “not going to prison empty handed. It’s that simple.”
Based on the conduct set forth above, the U.S. Attorney charged Gerald D. Harris, 51, of Fulton County, Georgia, in a criminal information with one count each of federal program bribery and blackmail. Notably, defendants who are charged via a criminal information, typically plead guilty shortly after being arraigned.
The FBI, DeKalb County District Attorney’s Office, Georgia Department of Revenue, and DeKalb County Tax Commissioner’s Office are investigating this case.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Assistant U.S. Attorney Nicholas Hartigan are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former UAW Midwest CAP President Pleads Guilty to Embezzling UAW Funds and Evading TaxesRead the Press Release
Edward “Nick” Robinson, the former President of the United Auto Workers Midwest CAP and the former Director of the UAW Labor and Employment Training Corporation, pleaded guilty today to conspiring with other UAW officials to embezzle over $1 million of UAW dues money and to defraud the United States by evading the payment of taxes announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Edward “Nick” Robinson, 72, of Kirkwood, Missouri, pleaded guilty to conspiring to embezzle UAW dues money between 2010 and September 2019. Between at least 2010 and September 2019, Robinson served as the President of the UAW’s Midwest CAP of Region 5 of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”). The UAW Midwest CAP is one of the UAW’s Community Action Program Councils which are supported through UAW dues money. The UAW’s Region 5 is headquartered in Hazelwood, Missouri, and covers the tens of thousands of UAW members in Missouri and the sixteen states to the southwest, including California and Texas. Robinson also served as the Assistant to the President of the UAW Labor and Employment Training Corporation headquartered in Hazelwood, Missouri. The UAW-LETC was supposed to provide workforce training and development programs.
During the plea hearing, Robinson admitted that he conspired with at least six other senior UAW officials in a multiyear conspiracy to embezzle money from the UAW for the personal benefit of Robinson and other senior UAW officials. Robinson and other UAW officials concealed personal expenditures in the cost of UAW Region 5 conferences held in Palm Springs, California, Coronado, California, and Missouri. Between 2010 and 2018, other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with Region 5 leadership and training conferences. In truth, however, Robinson and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators.
For example, Robinson and other senior UAW officials used UAW money to buy sets of golf clubs, individual clubs, and other golf equipment that cost thousands of dollars. They spent over $100,000 to purchase golf clothing, shirts, hats, sunglasses, golf balls, jackets, and fashion shorts from various pro shops at golf courses in California and Missouri. And they spent tens of thousands of dollars in UAW funds at the Indian Canyons golf course in Palm Springs on green fees for golfing outside of the time of the UAW conferences.
As part of the conspiracy, Robinson and his co-conspirators embezzled over $60,000 in UAW funds for the purchase of boxes of cigars, humidors, cigar cutting equipment, and lighters from 2014 to 2018. The costs of the cigars were hidden within the expenses for the Region 5 conferences. Pearson caused the UAW to file false reports with the Department of Labor wherein the various embezzlement activity was concealed.
During search warrants executed by federal law enforcement in August 2019 in connection with the investigation, agents recovered dozens of cigars, humidors, and other tobacco-related items in the personal residences of UAW officials. In addition, agents seized hundreds of high-end bottles of liquor, hundreds of golf shirts, multiple sets of golf clubs, and over thirty thousand dollars in cash. Agents seized sets of golf clubs from the homes and offices of UAW officials which were paid for with embezzled UAW funds.
Besides using the UAW conferences to conceal the fraudulent use of UAW money for personal expenses, Robinson also wrote over $500,000 in fraudulent checks from the UAW Midwest CAP account. Robinson then turned these checks into cash and kept some of the money for himself, shared some with other UAW officials, or spent the money on personal expenses to benefit himself and other high-level UAW officials.
Besides conspiring with other UAW officials to embezzle UAW funds, Robinson also conspired with other UAW officials to defraud the United States by impeding the Internal Revenue Service in the collection of taxes from Robinson and other UAW officials.
Based on each of his embezzlement and tax fraud conspiracy convictions, Robinson faces a maximum of five years in prison and a fine of up to $250,000.
As part of his guilty plea, Robinson agreed to pay $42,000 in restitution to the Internal Revenue Service owed on his own personal taxes. In addition, the court will determine additional restitution at the time of sentencing based on the embezzlement of UAW funds.
Robinson is the thirteenth defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), and former senior UAW official Michael Grimes (28 moths). In addition, the following UAW officials have pleaded guilty and are awaiting sentencing: former UAW Vice President Joseph Ashton and former senior UAW official Jeffrey “Paycheck” Pietrzyk.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“Our office will never tolerate the abuse of union funds for the benefit of corrupt union officials,” said United States Attorney Matthew Schneider. “We will continue our work until the men and women of the UAW have confidence that their union leadership is serving and advancing their interests — instead of the personal interests of union bosses.”
“Robinson conspired with senior UAW officials to embezzle more than $1,000,000 in order to personally enrich himself at the expense of the hard-working men and women of the UAW. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations," stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“It is hard to discuss the criminal behavior of these UAW executives without acknowledging the damage it has done to the faith union members have in their leadership,” said Steven M. D’Antuono, Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI stands committed to these types of investigations in order to restore the union to its core purpose of negotiating for and protecting the rights of its hard-working members who put their trust in their union officials.”
“Robinson not only defrauded his union members for ten years, he also defrauded the American people by causing false tax returns to be filed and not paying his fair share.” stated Special Agent in Charge, Sarah Kull of the Internal Revenue Service – Criminal Investigation. “Today’s guilty plea shows a tremendous lack of ethical character and greed.”
“Instead of serving the interests of his fellow UAW members, Edward Robinson executed elaborate schemes to embezzle hundreds of thousands of dollars from the UAW, including dues paid by hard working union members, to fund an extravagant lifestyle for him and other high-ranking UAW officers,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “OLMS will continue to work with its fellow law enforcement partners and the U.S. Attorney’s Office to remove corrupt union officers and other officials within the UAW International Union.”
The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.
Former Tax Preparer Sentenced for Tax FraudRead the Press Release
BOSTON – A former tax preparer operating under the business “Skylimits Tax Service and Consulting” was sentenced today in federal court in Worcester for filing false income tax returns.
Sebastian Adzadi, 45, was sentenced by U.S. District Court Judge Timothy S. Hillman to time served, one year of supervised release and ordered to pay restitution in the amount of $131,077. In October 2019, Adzadi pleaded guilty to one count of aiding and assisting in the preparation and presentation of false income tax returns.
Adzadi operated “Skylimits Tax Service and Consulting” in Worcester. For tax years 2013 through 2016, Adzadi prepared hundreds of tax returns for numerous clients that included false Schedule A “Itemized Deductions” including medical expenses, charitable contributions and unreimbursed business expenses. The IRS estimates that Adzadi’s fraud caused a total loss of approximately $829,000.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Lucy Sun of Lelling’s Worcester Branch Office prosecuted the case.