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Tuesday 21 January 2020
Former State Senator Pleads Guilty to Making False StatementRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that today WESLEY T. BISHOP, age 52, of New Orleans pleaded guilty to making a false statement, a crime punishable by up to five years’ imprisonment. BISHOP admitted to knowingly and willfully making a false, material statement to the United States Department of Housing and Urban Development (“HUD”) in connection with rental property that he owned. Pursuant to the plea agreement, BISHOP has agreed to pay restitution to the State of Louisiana, Division of Administration, Office of Community Development, which administers the subject Small Rental Property Program on behalf of HUD. Judge Greg Guidry scheduled sentencing for April 21, 2020, at 10:00 a.m.
U.S. Attorney Strasser praised the work of the United States Department of Housing and Urban Development Office of Inspector General and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Andre J. Lagarde is in charge of the prosecution.
Former Secretary and Treasurer of Corsica Borough Pleads Guilty in $305K Fraud SchemeRead the Press Release
PITTSBURGH – A resident of Corsica, Jefferson County, Pennsylvania, pleaded guilty in federal court to charges of wire fraud, United States Attorney Scott W. Brady announced today.
Tammy Laird, 47, pleaded guilty to 26 counts before United States Senior District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that from January 2009 through August 2017, while Laird was employed as the Secretary and Treasurer of Corsica Borough, she defrauded the borough of more than $305,000 by issuing checks from the borough’s bank accounts to her father, her husband, and herself, by extracting funds from the borough’s bank accounts to pay personal expenses and credit card bills, and by making personal purchases on the borough’s business account at Staples. To hide her activity, Laird supplied the Corsica Borough Council and state auditors with altered bank statements and other falsified financial documentation.
Judge Fischer scheduled sentencing for May 28, 2020, at 11:00 a.m. The law provides for a sentence at each count of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Laird was released on an unsecured bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Laird.
Former Saratoga Race Course Worker Pleads Guilty to Methamphetamine TraffickingRead the Press Release
BINGHAMTON, NEW YORK – Francisco Alarcon Badillo, age 28 and a citizen of Mexico, pled guilty on January 17 to selling crystal methamphetamine while employed at the Saratoga Race Course.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, New York Division, U.S. Drug Enforcement Administration (DEA); and Saratoga Springs Police Department Chief Shane Crooks.
Badillo admitted that he sold crystal methamphetamine from May 2019 to August 2019, while residing at and working on the grounds of the Saratoga Race Course in Saratoga Springs, New York. Badillo admitted to hiding the drugs in various locations within the Race Course property, including his dormitory room. He admitted to selling more than 400 grams of crystal methamphetamine.
Badillo faces at least 10 years and up to life in prison when he is sentenced on May 28, 2020 by Senior United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and its Capital District Drug Enforcement Task Force, and the Saratoga Springs Police Department, with assistance from the New York Racing Association. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Former Regional Sales Director for Insys Therapeutics Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A former Regional Sales Director for Insys Therapeutics was sentenced today in federal court in Boston for his role in conspiring to bribe practitioners to prescribe Subsys, a fentanyl-based pain medication.
Joseph A. Rowan, 45, of Panama City, Fla., was sentenced by U.S. District Court Judge Allison D. Burroughs to 27 months in prison, three years of supervised release, restitution to be determined at a later date and ordered to pay approximately $2 million in forfeiture. The government recommended a sentence of 120 months in prison.
In May 2019, Rowan was convicted by a federal jury of racketeering conspiracy along with four other Insys executives.
Subsys, a drug owned and manufactured by Insys Therapeutics, Inc., is a fentanyl-based, rapid-onset opioid approved to treat cancer patients suffering intense breakthrough pain. From May 2012 to December 2015, Rowan and his co-defendants conspired to bribe practitioners, many of whom operated pain clinics, in order to induce them to prescribe Subsys to patients. The defendants also conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the expensive drug when it was prescribed for patients without cancer. Medicare would not approve payment for the drug except to treat breakthrough cancer pain.
Beginning in 2012, Rowan joined Insys as a sales representative working exclusively with a doctor in Alabama known to write prescriptions for fentanyl products. Rowan paid the doctor speaker honoraria in exchange for Subsys prescriptions, and was so successful that it became a model within Insys. Rowan was subsequently twice promoted, ultimately becoming a Regional Sales Manager. In this role, Rowan fueled the criminal scheme by approving the use of speaker programs to bribe doctors to write more Subsys prescriptions, and to write Subsys prescriptions at increasingly higher dosages.
In addition, Rowan stressed the importance of the success of the Insys Reimbursement Center (IRC) to sales representatives. During a national sales meeting, Rowan encouraged sales employees to assist the IRC and stated, “what I am saying is this. This is how you get paid…”
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S Department of Health and Human Services, Office of the Inspector General; Judy McMeekin, Pharm.D. Acting Associate Commissioner for Regulatory Affairs of the U.S. Food and Drug; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office; Jeffrey K. Stachowiak, Acting Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General; and Thomas W. South, Deputy Assistant Inspector General for Investigations of the Office of Personnel Management made the announcement.
Assistant U.S. Attorneys K. Nathaniel Yeager, Fred M. Wyshak, and David G. Lazarus prosecuted the case for Lelling’s Health Care Fraud Unit.
Former National Sales Director of Insys Therapeutics Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – The former National Sales Director for Insys Therapeutics was sentenced today in federal court in Boston for his role in conspiring to bribe practitioners to prescribe Subsys, a fentanyl-based pain medication, often when medically unnecessary.
Richard Simon, 48, of Seal Beach, Calif., was sentenced by U.S. District Court Judge Allison D. Burroughs to 33 months in prison, three years of supervised release, restitution to be determined at a later date and ordered to pay approximately $2.3 million in forfeiture. The government recommended a sentence of 132 months in prison.
In May 2019, Simon was convicted by a federal jury of racketeering conspiracy along with four other Insys executives.
Subsys, a drug owned and manufactured by Insys Therapeutics, Inc., is a fentanyl-based, rapid-onset opioid approved to treat cancer patients suffering intense breakthrough pain. From May 2012 to December 2015, Simon and his co-defendants conspired to bribe practitioners, many of whom operated pain clinics, in order to induce them to prescribe Subsys to patients, often when medically unnecessary. The defendants also conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the expensive drug when it was prescribed for patients without cancer.
In September 2012, Simon joined Insys as a District Sales Manager and began actively recruiting high prescribing doctors and engaging in quid pro quo agreements with doctors. When Simon was promoted to National Sales Director, he directed sales managers and sales reps to bribe prescribers and to reach specific and enforceable agreements with doctors to prescribe Subsys.
Ensuring that prescriptions were paid for by insurers was equally important to Simon. So he ordered the creation of the “Charts in Progress” (CIP) Report. The CIP reports, which tracked the progress that the Insys Reimbursement Center made in obtaining payment from insurers and provided it to sales managers, was one of the tools used at Insys to track the success of the criminal scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S Department of Health and Human Services, Office of the Inspector General; Judy McMeekin, Pharm.D. Acting Associate Commissioner for Regulatory Affairs of the U.S. Food and Drug; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office; Jeffrey K. Stachowiak, Acting Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General; and Thomas W. South, Deputy Assistant Inspector General for Investigations of the Office of Personnel Management made the announcement.
Assistant U.S. Attorneys K. Nathaniel Yeager, Fred M. Wyshak, and David G. Lazarus prosecuted the case for Lelling’s Health Care Fraud Unit.
Former District of Columbia Government Employee Sentenced to 30 Months in Prison for Accepting Bribes from ConsultantRead the Press Release
WASHINGTON – Latasha Moore, 39, of Washington, D.C., was sentenced today to 30 months in prison for accepting more than $140,000 in bribes from John Woods, who was a consultant and independent contractor who did business with the D.C. government.
The announcement was made today by U.S. Attorney Jessie K. Liu, Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, and Daniel W. Lucas, District of Columbia Inspector General.
On October 11, 2018, Moore pled guilty in the U.S. District Court for the District of Columbia to one count of bribery. She was sentenced by the Honorable Dabney L. Friedrich. Following her prison term, Moore will be placed on two years of supervised release. As part of her sentence, Moore was ordered to forfeit the more than $140,000 in bribes that she received from Woods.
According to the statement of offense, Moore started working in 2002 for the D.C. Department of Human Resources (“DCHR”); in 2012, she was promoted to the position of resource allocation analyst. In that role, among other duties, she was the main point of contact for “Company A,” which was a Maryland-based company that had agreements with DCHR to provide organizational skills training courses and human resources consulting to various D.C. government agencies.
As noted in the statement of offense, Moore and Woods, who was a consultant employed by Company A, engaged in a scheme in which Moore agreed to protect the government contracts held by Company A and ensure that no complaints about its performance reached others in the District of Columbia government. The scheme began in approximately July 2014 and ran through August 2017. In return for her actions, according to the statement of offense, Moore accepted 50 checks and one PayPal money transfer from Woods totaling more than $140,000.
According to the statement of offense, Moore had suspicions about more than $1 million in invoices that Woods submitted in March 2015 through June 2017 for work that Company A purportedly performed under its contracts with DCHR. Nonetheless, in return for the money that Woods paid her, Moore advised other D.C. government officials to approve the invoices for payment. As the scheme continued, according to the statement of offense, Company A discovered that Woods was acting on his own and retaining the profits for himself. Although Moore knew of Company A’s concerns, she did not relay them to her supervisors and continued to advise other government officials to approve Woods’s invoices.
Woods, 57, of Washington, D.C., was sentenced on December 20, 2019, by Judge Friedrich to 41 months in prison on charges of bribery and wire fraud arising from this scheme. As part of his sentence Woods was ordered to pay $564,910.23 in restitution to Company A.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Dunham, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and the Office of the Inspector General of the District of Columbia. They also expressed appreciation for the work of Assistant U.S. Attorney Michael J. Marando of the U.S. Attorney’s Office for the District of Columbia, who investigated and prosecuted the matter.
Florida man pleads guilty to wire fraud for scheme to defraud investors with claims of successful commodities tradingRead the Press Release
Seattle – A Cocoa Beach, Florida, man pleaded guilty today in U.S. District Court in Seattle to wire fraud in connection with his million-dollar scheme to pose as a successful commodities trader, announced U.S. Attorney Brian T. Moran. MATTHEW WHITE, 27, accepted $1.29 million in investments from family and friends promising big gains. In truth, little was invested, and the profits were non-existent. WHITE used more than $281,000 of the invested money for his personal expenses. U.S. District Judge Robert S. Lasnik scheduled sentencing for April 10, 2020.
According to the plea agreement, between 2011 and 2018, WHITE solicited funds from investors in Florida and Washington State. WHITE represented that he would use the money to successfully trade in futures contracts first under his own name, and later under the name of his company, M.W. Global Futures LLC, of which he was the sole member. WHITE claimed to have expertise as a commodities trader, with special training. He also claimed to be a member of the Chicago Board of Trade. All of these claims were false.
WHITE provided promotional materials that claimed his trading would provide a high return on investment. In October 2017, he sent one elderly investor a brochure claiming a return on investment in excess of 16% annually. Once he got their funds, WHITE sent investors statements purporting to show substantial trading activity and profits. The statements also showed WHITE’s commissions, which were allegedly tied to the level of profits. WHITE sent some of these fictitious statements via email, constituting wire fraud. Very little of the money was actually traded in investment accounts, and the investments that were traded resulted in losses.
Of the $1.29 million, WHITE repaid approximately $425,000 as redemptions and purported profits during the scheme. In November 2018, WHITE was contacted by investigators from the Commodity Futures Trading Commission. He then repaid an additional $602,000 to two victims. Under the terms of the plea agreement, WHITE owes the remaining $281,970 in restitution to his victims.
Wire fraud is punishable by up to 20 years in prison. The ultimate sentence will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI and the Division of Enforcement of the Commodity Futures Trading Commission.
The case is being prosecuted by Special Assistant United States Attorney Benjamin Diggs.
Felon Sentenced to Federal Prison for Illegally Possessing FirearmsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Iosia Nelson Fiso, 25, of Anchorage, was sentenced on Friday, Jan. 17, 2020, by Chief U.S. District Judge Timothy M. Burgess, to serve four years in federal prison, followed by three years of supervised release, after pleading guilty to illegally possessing a firearm as a convicted felon.
According to court documents, while investigating a shooting that occurred on Jan. 9, 2019, in midtown Anchorage, APD officers uncovered a scope on an American Spirit ASA 15 rifle bearing Fiso’s fingerprint. The day after the shooting, APD contacted Fiso who was found to be in possession of three additional firearms that were in his girlfriend’s vehicle.
Fiso has two previous felony convictions with the State of Alaska for crimes involving misconduct involving weapons and hindering prosecution, and was therefore prohibited from possessing firearms. Fiso is also currently facing unrelated murder and kidnapping charges with the State of Alaska.
The Anchorage Police Department (APD), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Alaska Department of Public Safety conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Allison O’Leary.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Federal and Local Agencies Team up to Combat Human Trafficking in the District of ColumbiaRead the Press Release
WASHINGTON – U.S. Attorney for the District of Columbia Jessie K. Liu and D.C. Attorney General Karl Racine announced today that the D.C. Human Trafficking Task Force now will be jointly chaired by representatives of the U.S. Attorney’s Office for the District of Columbia and the Office of the Attorney General for the District of Columbia. The move recognizes the important work of both agencies toward eradicating human trafficking in the District and the complementary skills of the federal and local agencies. “The U.S. Attorney’s Office aggressively investigates and prosecutes human traffickers. As the Chair of the D.C. Human Trafficking Task Force for the last 15 years, our Office has worked tirelessly to improve the public health and safety of some of the most vulnerable members of our community: sex trafficking survivors. Our prosecutors and advocates have shown unparalleled dedication to this important issue, which deserves our continued and expanded efforts. The joint leadership of the Task Force will enable us to tackle the challenges ahead with even greater vigor. We are pleased to have yet another opportunity for partnership with the Office of the Attorney General for the District of Columbia,” said U.S. Attorney Liu.
Since its formation in 2004, the D.C. Human Trafficking Task Force has been chaired by the U.S. Attorney’s Office for the District of Columbia with the goal of increasing the prosecution of traffickers while identifying and serving the victims-survivors of this horrific crime. The four main goals of the Task Force are:
- To facilitate a more coordinated anti-trafficking effort in the D.C. area through protocol development, extensive community outreach, proactive investigations, law enforcement training, intelligence sharing, and more formalized partnerships between law enforcement organizations and non-governmental organizations (NGOs).
- To identify citizen, resident, and transnational victims of both sex and labor trafficking.
- To provide comprehensive services to trafficking victims.
- To increase the prosecution of traffickers.
Since its creation, the Task Force has served as a forum for disparate organizations—local and federal government agencies, NGOs, and local and federal law enforcement—to come together around one table for information sharing, internal and external training, and relationship building. The Task Force consists of a large number of law enforcement, NGOs, and government agencies, as well as component subcommittees. The current subcommittees are: Direct Services, Labor, Training and Outreach, Law Enforcement, and a Policy Working Group.
Through the information-sharing work of the Task Force and the efforts of a reconfigured Child Exploitation and Human Trafficking Taskforce (CEHTTF) at the U.S. Attorney’s Office, the Office has seen a significant increase in prosecutions of juvenile sex trafficking cases, as well as an increase in the number of child exploitation cases brought in federal court.
In recent years, the Office of the Attorney General for the District of Columbia has also expanded its anti-human trafficking efforts, recognizing that children that are at risk for trafficking and those who are victims-survivors of trafficking present unique challenges that require trauma-informed staff and court personnel. One such initiative was its successful launch, along with the D.C. Superior Court, of Hope Court, a diversion program for youth that appear at risk of trafficking or who represent confirmed cases of trafficking.
For more information, please contact External Affairs Specialist Melanie Howard at 202-252-6930.
Federal Jury Finds Colombian National Guilty of Conspiracy and Transporting 593 Kilograms of Marijuana on Board a Go-Fast BoatRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Cristian Valencia Mendoza was convicted of Conspiracy to Possess With Intent to Distribute a Controlled Substance and Possession of a Controlled Substance with Intent to Distribute While on Board a Vessel Subject to the Jurisdiction of the United States, following a jury trial in St. Thomas U.S. District Court.
According to court documents and evidence presented at trial, on October 18, 2019, the defendant was located on board a go-fast style vessel that was intercepted by a United States Coast Guard (USCG) cutter on routine patrol in the Eastern Pacific. USCG crewmembers first sighted the go-fast vessel in international waters, approximately 45 nautical miles north of Malpelo Island, Colombia. The vessel did not display any indicia of nationality and the co-conspirator, the captain of the vessel, told members of the USCG Boarding Team that the vessel was without nationality.
Twenty one (21) bales of marijuana, consisting of 593 kilograms, were located on board the vessel and seized by USCG crewmembers. The defendant waived his rights and gave a statement to DEA Agents detailing his involvement in the drug smuggling operation. He confessed that that he was hired to transport the marijuana from Colombia to Costa Rica. He stated that his role in the crime was to change fuel lines during the trip and to look out for law enforcement aircraft. He acknowledged that he was to be paid a total of 40 million pesos, approximately twenty three thousand ($23,000) dollars for his work onboard the vessel.
The defendant will remain in custody, and the court scheduled the defendant’s sentencing for April 28, 2020.
This case was investigated by the United States Coast Guard and the Virgin Islands Drug Enforcement Agency. It is being prosecuted by Assistant United States Attorneys Donna Rainwater and Adam Sleeper.
Federal Inmates Indicted for AssaultingWest Tennessee Detention Facility Correctional OfficersRead the Press Release
Memphis, TN – Davonte Gary, 21, and Johnathan Johnson, 26, have been indicted for assaulting correctional officers. D. Michael Dunavant, U.S. Attorney announced the indictments today.
According to the indictments, on October 16, 2019, Gary, an inmate at West Tennessee Detention Facility, assaulted a correctional officer by placing him in a headlock. The correctional officer was engaged in official duties when attacked. Gary was in custody pending trial for a Hobbs Acts Robbery.
On September 9, 2019, Johnson, also an inmate at West Tennessee Detention Facility, struck two correctional officers in the head and face with a closed fist. Two months prior to this incident, Johnson had been sentenced in Federal District Court to 84 months imprisonment on federal drug charges.
U.S. Attorney D. Michael Dunavant said: "No other group of Americans has a more difficult or less publicly visible job than the dedicated men and women who work in our correctional facilities. Assaulting any federal correctional officer who is engaged in the performance of their official duties is a serious violation of federal law, and will not be tolerated. This office takes very seriously our duty to protect the safety of correctional employees and the security of federal detention facilities, and these indictments demonstrate that commitment to promote institutional safety and control by strict enforcement of the rule of law."
Pete Bludworth, Warden, West Tennessee Detention Facility, said: "Our top priority is the safety of our staff and those entrusted to our care. We appreciate all the efforts of the U.S. Marshals Service and the U.S. Attorney's Office for the Western District of Tennessee in this case, and share their commitment to keeping our communities safe."
"The U.S. Marshals Service is committed to ensuring the safety of the employees of our correctional detention partners. Persons being held in detention by the Marshals Service must understand there will be consequences for their actions," said Jeffrey Holt, U.S. Marshal.
If convicted, each defendant faces up to eight years imprisonment followed by three years of supervised release.
The West Tennessee Detention Facility investigated these cases.
Assistant U.S. Attorney Scott Smith is prosecuting these cases on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Fayetteville Man Sentenced to 97 Months for Cocaine DistributionRead the Press Release
RALEIGH – United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that United States District Judge James C. Dever III sentenced WILMER LUIS MEJIAS, 44, of Fayetteville, NC, today. MEJIAS was sentenced to 97 months imprisonment followed by 3 years of supervised release.
MEJIAS was named in a 12-count Indictment filed on December 12, 2017. On February 5, 2018, he pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine from 2015 to December 12, 2017.
In 2015, the Fayetteville Police Department, the Sampson County Sheriff’s Office, and the Federal Bureau of Investigation identified members of a Puerto Rican drug trafficking organization (DTO) operating in Cumberland and Sampson counties. Surveillance, wire intercepts and confidential sources of information (CSIs) were used to identify multiple drug traffickers working in connection with the DTO. Specifically, the investigation identified MEJIAS as one of the members of the DTO who helped traffic cocaine into the Eastern District of North Carolina.
Agents began receiving information about the DTO from CSI #1. Specifically, CSI #1 stated that MEJIAS and others, including co-conspirator Luis Joel Robles Latorres, sentenced on June 18, 2019 to 162 months of imprisonment, would arrange large cocaine shipments from Puerto Rico. MEJIAS was also responsible for collecting drug proceeds and sending them back to the DTO in Puerto Rico.
On November 3, 2017, agents intercepted multiple calls in which Lattores arranged the purchase of 1.5 kilograms of cocaine. Surveillance units followed the source to Latorres’s residence in Fayetteville and then to a restaurant parking lot. Agents subsequently stopped the vehicle driven by an individual affiliated with the drug trafficking organization and seized a black bag containing $45,000 in U.S. currency.
The investigation established that between November 2014 and November 2017, MEJIAS was personally involved in the distribution of more than 30 kilograms of cocaine.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF) named Operation La Vida Loca. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
That effort has been implemented through the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Federal Bureau of Investigation, Fayetteville Police Department, Sampson County Sheriffs’ Office and the Wilmington Police Department investigated this case. Assistant United States Attorney Scott A. Lemmon prosecuted this case for the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Eagle Butte Man Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Calvin Edwards, Jr., age 41, was indicted on January 14, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 21, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in prison and/or a $1,000,000 fine, at least 3 years, up to a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that on or about July 1, 2019, Edwards knowingly and intentionally possessed with the intent to distribute methamphetamine, a schedule II controlled substance
The charge is merely an accusation and Edwards is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Edwards was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that am Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Silas Condon, age 24, was indicted on January 14, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 16, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that December 6, 2019, Condon forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a federal officer while the officer was in the performance of his official duties and said contact did involve physical contact with the officer.
The charge is merely an accusation and Condon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Condon was released on bond pending trial. A trial date has not been set.
Dominican National Charged with Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national was charged today in federal court in Boston with aggravated identify theft.
Moices Santilit, 63, of Lawrence, was charged on one count of aggravated identity theft. Santilit is currently in state custody and will appear in federal court in Boston at a later date.
According to the charging document, Santilit used the Social Security number of a U.S. citizen in order to fraudulently obtain a valid Massachusetts Asbestos Worker Identification card under the victim’s name.
The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Files Brief in Support of the Constitutionality of Ohio Law Prohibiting Abortion Providers from Performing an Abortion They Know Is Sought Because of Down SyndromeRead the Press Release
The Department of Justice today filed a friend-of-the-court brief with the full United States Court of Appeals for the Sixth Circuit, in support of the constitutionality of an Ohio law prohibiting abortion providers from performing an abortion they know is sought because of Down syndrome.
“Ohio’s Antidiscrimination Law affirms that people with Down syndrome have lives worth living and protecting. The Law also protects the medical profession from harm to its integrity and protects women from abortion providers who may seek to pressure them into obtaining an abortion because of Down syndrome,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The federal government has an interest in the equal dignity of those who live with disabilities. Nothing in the Constitution requires Ohio to authorize abortion providers to participate in abortions the providers know are based on Down syndrome.”
“This Ohio law prevents discrimination against individuals with Down syndrome,” said Justin E. Herdman, U.S. Attorney for the Northern District of Ohio. “Accordingly, the state of Ohio’s interests in this matter are fully aligned with those of the United States and we are not only entitled, but compelled, to weigh in as a friend of the Court.”
In 2017, Ohio’s General Assembly passed, and Ohio Governor John Kasich signed, legislation (the Antidiscrimination Law) directing that an abortion provider cannot “purposely perform or induce or attempt to perform or induce an abortion on a pregnant woman if” the provider “has knowledge that the pregnant woman is seeking the abortion” because of Down syndrome. The law expressly shields women who seek such abortions from any and all liability.
Plaintiffs challenged the Antidiscrimination Law in court before the law took effect. The district court enjoined enforcement of the Antidiscrimination Law and on appeal, that decision was upheld in a split decision by a three-judge panel of the Sixth Circuit. The dissenting judge would have upheld the Antidiscrimination Law as constitutional because there was “no evidence” that the law created a substantial obstacle to obtaining an abortion. The Sixth Circuit then voted to rehear the case before the full or “en banc” court.
The government’s friend-of-the-court brief to the full Sixth Circuit explains that the district court and divided panel were wrong to hold Ohio’s Antidiscrimination Law unconstitutional under the Supreme Court’s abortion decisions. The brief outlines that the Antidiscrimination Law serves several important purposes. It protects individuals with disabilities from prejudice and indifference and the medical profession from harm to its integrity and reputation. The law also wards against the slippery slope to medical involvement in race- or sex-based abortions. And it protects women themselves by separating them from potentially coercive abortion providers who may seek to pressure them into obtaining an abortion because of Down syndrome.
Given Congress’s abortion legislation, the United States has an interest in the application of the law in that area, and has often participated in cases involving state abortion laws. The federal government enforces civil rights laws that outlaw various forms of disability discrimination, including the Rehabilitation Act, the Americans with Disabilities Act, and the Individuals with Disabilities Education Act. It also enforces the Genetic Information Nondiscrimination Act, which protects against discrimination as to health insurance and employment on the basis of genetic information, including “of any fetus carried by [a] pregnant woman.”
Delaware County Doctor Pleads Guilty to Unlawfully Distributing Oxycodone to Patients in “Pill Mill” CaseRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced that Timothy Shawl, M.D., 60, of Garnet Valley, PA entered a plea of guilty before United States District Court Judge R. Barclay Surrick on five counts of unlawful distribution of controlled substances.
The defendant was charged by Indictment in September 2019 as part of a coordinated healthcare fraud enforcement action across seven federal districts, involving more than $800 million in loss and more than 3.25 million opioid pills distributed in “pill mill” clinics. During his guilty plea today, Shawl admitted that he wrote oxycodone prescriptions that were not for a legitimate medical purpose, and which were in fact issued without Shawl treating, examining, or even seeing the patients who received the prescriptions. Shawl further admitted that, with regard to one patient, he had not conducted a physical examination on the patient for at least five years, despite regularly prescribing controlled substances to the patient. This patient died on Jan. 7, 2019, just three days after Shawl last prescribed oxycodone for her, and the cause of death was drug intoxication.
“Today’s guilty plea from Dr. Shawl is the tangible result of the Healthcare Fraud Strike Force delivering on its mission to stop fraud, waste, and abuse within our federal health care programs and to stem the tide of illegal opioid distribution,” said First Assistant U.S. Attorney Williams. “Our Strike Force acts as a force multiplier, bringing together health care fraud prosecutors, civil enforcement attorneys, data analysts, and law enforcement agencies to do this important work. Today’s guilty plea should serve as a warning to any medical professional engaged in this type of illegal behavior.”
This case was investigated by the FBI with assistance from task force officers from the Philadelphia Police Department and Pennsylvania Office of the Attorney General. Trial Attorney Debra Jaroslawicz of the Criminal Division’s Fraud Section is prosecuting the case.
Decatur Man Sentenced for Concealing Assets from Bankruptcy CourtRead the Press Release
SPRINGFIELD, Ill. -- A Decatur, Ill., man, Daniel C. Miner, Jr., 53, has been sentenced for bankruptcy fraud. On Jan.16, 2020, U.S. District Judge Sue E. Myerscough ordered Miner to serve weekends in jail for six months of a three-year term of supervised release. Miner was also ordered to pay a fine of $5,500 and to pay $5,242 in restitution.
On May 31, 2019, Miner pleaded guilty to concealing from the bankruptcy court his transfer of real estate in the 400 block of East Douglas, Bloomington, Ill. The property belonged to the bankruptcy estate at the time and was under the control of the bankruptcy trustee.
Miner’s restitution order includes $900.00 to the U.S. Bankruptcy Court representing lost rental payments to the bankruptcy estate, and $4,342 to the Bankruptcy Trustee to pay the fees and expenses incurred by the trustee as a result of the concealment and transfer of the property.
The charge resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney for the Central District of Illinois. The charges were investigated by the Federal Bureau of Investigation in collaboration with the Central Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. Assistant U.S. Attorney Gregory K. Harris prosecuted the case.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
David Clay Fowlkes to Serve as Acting United States Attorney for the Western District of ArkansasRead the Press Release
Fort Smith, Arkansas – David Clay Fowlkes will serve as Acting United States Attorney for the Western District of Arkansas.
Mr. Fowlkes previously served the Office in the position of the First Assistant United States Attorney, and supervised the Criminal and Civil Divisions. He has been an Assistant United States Attorney (AUSA) since December of 2007.
During his time in the United States Attorney’s Office, Mr. Fowlkes also previously served as the Coordinator for the Organized Crime and Drug Enforcement Task Force (OCDETF) Unit of the USAO, and has prosecuted a variety of criminal cases. He has also held the positions of Criminal Chief and Senior Litigation Counsel. Mr. Fowlkes received the Executive Office of the United States Attorney Director’s Award for Outstanding Litigation Team in 2011 (Recognized for his work on the U.S. v. Bernie Hoffman, aka Tony Alamo jury trial) and the Executive Office of the United States Attorney Director’s Award for Outstanding Performance by an Assistant United States Attorney in the Criminal Division in 2014 (Recognized for his work on the “Operation Great Scott” and “Operation Pantera Negra” OCDETF cases).
Prior to coming to the USAO, Mr. Fowlkes was a Deputy Prosecuting Attorney for Benton County, Arkansas, from September 2003 to December 2007.
Born in Harrison, Arkansas, Mr. Fowlkes is a graduate of Arkansas State University and University of Arkansas School of Law.
Mr. Fowlkes succeeds DAK Kees, who served as U.S. Attorney until resigning, January 17, 2020.
Department of Justice Files Brief in Support of the Constitutionality of Ohio Law Prohibiting Abortion Providers from Performing an Abortion They Know Is Sought Because of Down SyndromeRead the Press Release
WASHINGTON – The Department of Justice today filed a friend-of-the-court brief with the full United States Court of Appeals for the Sixth Circuit, in support of the constitutionality of an Ohio law prohibiting abortion providers from performing an abortion they know is sought because of Down syndrome.
“Ohio’s Antidiscrimination Law affirms that people with Down syndrome have lives worth living and protecting. The Law also protects the medical profession from harm to its integrity and protects women from abortion providers who may seek to pressure them into obtaining an abortion because of Down syndrome,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The federal government has an interest in the equal dignity of those who live with disabilities. Nothing in the Constitution requires Ohio to authorize abortion providers to participate in abortions the providers know are based on Down syndrome.”
“This Ohio law prevents discrimination against individuals with Down syndrome,” said Justin E. Herdman, U.S. Attorney for the Northern District of Ohio. “Accordingly, the state of Ohio’s interests in this matter are fully aligned with those of the United States and we are not only entitled, but compelled, to weigh in as a friend of the Court.”
In 2017, Ohio’s General Assembly passed, and Ohio Governor John Kasich signed, legislation (the Antidiscrimination Law) directing that an abortion provider cannot “purposely perform or induce or attempt to perform or induce an abortion on a pregnant woman if” the provider “has knowledge that the pregnant woman is seeking the abortion” because of Down syndrome. The law expressly shields women who seek such abortions from any and all liability.
Plaintiffs challenged the Antidiscrimination Law in court before the law took effect. The district court enjoined enforcement of the Antidiscrimination Law and on appeal, that decision was upheld in a split decision by a three-judge panel of the Sixth Circuit. The dissenting judge would have upheld the Antidiscrimination Law as constitutional because there was “no evidence” that the law created a substantial obstacle to obtaining an abortion. The Sixth Circuit then voted to rehear the case before the full or “en banc” court.
The government’s friend-of-the-court brief to the full Sixth Circuit explains that the district court and divided panel were wrong to hold Ohio’s Antidiscrimination Law unconstitutional under the Supreme Court’s abortion decisions. The brief outlines that the Antidiscrimination Law serves several important purposes. It protects individuals with disabilities from prejudice and indifference and the medical profession from harm to its integrity and reputation. The law also wards against the slippery slope to medical involvement in race- or sex-based abortions. And it protects women themselves by separating them from potentially coercive abortion providers who may seek to pressure them into obtaining an abortion because of Down syndrome.
Given Congress’s abortion legislation, the United States has an interest in the application of the law in that area, and has often participated in cases involving state abortion laws. The federal government enforces civil rights laws that outlaw various forms of disability discrimination, including the Rehabilitation Act, the Americans with Disabilities Act, and the Individuals with Disabilities Education Act. It also enforces the Genetic Information Nondiscrimination Act, which protects against discrimination as to health insurance and employment on the basis of genetic information, including “of any fetus carried by [a] pregnant woman.”
Couple who smuggled cocaine with kids in the car ordered to prisonRead the Press Release
LAREDO, Texas – A husband and wife from Monterrey, Mexico, have been ordered to federal prison following their convictions of conspiracy and importing nearly $1 million in cocaine into the country, announced U.S. Attorney Ryan K. Patrick.
Mario Ramirez-Gomez, 49, and his wife, Maria Gonzalez-Esparza, 42, pleaded guilty Oct. 1, 2019.
Today, U.S. District Judge Diana Saldaña, who presided over the sentencing, ordered Ramirez-Gomez and Gonzalez-Esparza to serve 63 and 24 months in prison, respectively. Not U.S. citizens, they are both expected to face removal proceedings following their incarceration. At the hearing, the court heard that they had agreed to smuggle the drugs because they had both lost their jobs and were in debt.
On Aug. 3, 2019, the couple attempted to enter the United States at the Juarez–Lincoln International Bridge in Laredo. After an X-ray of their vehicle revealed anomalies, law enforcement officers searched the car and found 30 cocaine bundles hidden in secret compartments within the vehicle’s seats.
The cocaine weighed a total of 30 kilograms and had a street value of approximately $960,000.
The couple’s two minor children were riding in the car with them during the smuggling attempt.
Ramirez-Gomez and Gonzalez-Esparza both have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney David Fawcett prosecuted the case.
Costa Rican National Pleads Guilty to Transporting 593 Kilograms of Marijuana on Board a Go-Fast Boat Near Malpelo Island, ColombiaRead the Press Release
St. Thomas, USVI – Hansel Andres Centeno Arriola pled guilty on Friday to Possession of a Controlled Substance with Intent to Distribute on Board a Vessel Subject to the Jurisdiction of the United States, United States Attorney Gretchen C.F. Shappert announced.
According to information provided in court and in court documents, on October 18, 2019, the defendant was on board a go-fast style vessel that was intercepted by a United States Coast Guard (USCG) cutter while on routine patrol. USCG crew members first sighted the go-fast vessel in international waters at approximately 45 nautical miles north of Malpelo Island, Colombia. The vessel did not have any display indicating its nationality and the defendant, the captain of the vessel, told members of the USCG Boarding Team that the vessel was without nationality. Twenty one (21) bales of marijuana, consisting of approximately 593 kilograms, were located on board the vessel and seized. The defendant confessed to his involvement and told agents that he was hired as a boat captain to transport the marijuana from Colombia to Costa Rica. He stated that he was to be paid a total of sixty thousand ($60,000) dollars for his work.
The defendant will be sentenced at a later date.
This case is being investigated by the United States Coast Guard and the Virgin Islands Drug Enforcement Agency. It is being prosecuted by Assistant United States Attorneys Adam Sleeper and Donna Rainwater.
Connecticut U.S. Attorney’s Office Collects More Than $22 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2019Read the Press Release
New Haven – U.S. Attorney John H. Durham today announced that the U.S. Attorney’s Office for the District of Connecticut collected $22,755,127.63 in criminal and civil actions in Fiscal Year 2019. $6,357,454.91 was collected in criminal actions and $16,397,672.72 was collected in civil actions.
Overall, the Justice Department collected a total of just over $9.3 billion in civil and criminal actions in the fiscal year ending September 30, 2019.
“This past fiscal year, the talented men and women of our Connecticut office helped to recover more than $22 million for victims of crime and to help us fund important federal, state and local law enforcement efforts,” said U.S. Attorney Durham. “We are committed to seeking justice for victims, taking back ill-gotten gains from lawbreakers, and protecting the integrity of important government programs.”
The largest civil collections in the District of Connecticut were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts owed to several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education, were collected by the U.S. Attorney’s Office from debtors located in Connecticut.
All of the U.S. Attorney’s Office’s criminal recoveries in fiscal year 2019 were the result of successful enforcement against criminal defendants who committed various types of crime, with the largest recoveries in cases involving wire and securities fraud.
Nationally, the U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and victims of federal crimes. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are also collected by the U.S. Attorneys’ Offices and paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the District of Connecticut, working with partner agencies and divisions, collected $3,776,349 in asset forfeiture actions in FY 2019. Of this amount $1,606,053 was collected in civil cases and $1,841,763 was collected criminal cases. $328,533 was collected administratively. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 68 Assistant U.S. Attorneys and approximately 54 staff members at offices in New Haven, Hartford and Bridgeport.
Cherry Creek Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Chery Creek, South Dakota, woman has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Kate Doreen Condon, age 44, was indicted on January 14, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 16, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in prison and/or a $1,000,000 fine, at least 3 years, up to a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that on or about July 1, 2019, Condon knowingly and intentionally possessed with the intent to distribute methamphetamine, a schedule II controlled substance
The charge is merely an accusation and Condon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Condon was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Charlotte Man Is Sentenced to More Than 19 Years for Armed Robbery of Two Fast Food RestaurantsRead the Press Release
CHARLOTTE, N.C. – Elijah Stevarus Hallman, 30, of Charlotte, was sentenced today to 231 months in prison in connection with the armed robberies of two fast food restaurants, announced U.S. Attorney Andrew Murray. Hallman was also ordered to serve three years under supervised release after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department, join U.S. Attorney Murray in making today’s announcement.
According to filed court documents, trial evidence, and statements made in court, Elijah Hallman recruited his cousin and co-defendant, Cameron Hallman, to commit the robberies. Trial evidence established that, over the course of the armed robberies, Cameron Hallman operated as the getaway driver, and Elijah Hallman acted as the gunman.
According to court records, around 2:00 a.m. on April 11, 2018, the two men drove to a Wendy’s restaurant located at 7900 Arrowridge Blvd in Charlotte, where Cameron Hallman placed a drive-through order while Elijah Hallman concealed himself nearby. When Cameron Hallman pulled up to the window, Elijah Hallman walked up and stuck a pistol through the drive-through window, pointed it at the cashier, and demanded money. Cameron Hallman then pulled off as though he was not associated with Elijah Hallman, and a short while later the pair met up across the street.
Trial evidence established that the Wendy’s robbery was largely unsuccessful, as the cashier threw five dollars at Elijah Hallman and ran away to another part of the restaurant. As a result, the co-conspirators decided to commit a second armed robbery. About 30 minutes after the Wendy’s robbery, Elijah and Cameron Hallman stopped at a McDonald’s restaurant located at 4440 S. Tryon Street in Charlotte. They executed the same plan in the same manner, however, in this robbery, Elijah Hallman ripped out the entire cash drawer and carried it off. The robbery netted the pair approximately $360. According to trial evidence, while leaving the McDonald’s parking lot to meet up with Cameron Hallman, Elijah Hallman dropped some loose change from the cash drawer and a cell phone. At trial, evidence established that the recovered cell phone belonged to Elijah Hallman, who had used it to communicate with Cameron Hallman, and that the cell phone was in the vicinity of the restaurants during both robberies.
In April 2019, a federal jury convicted Elijah Hallman of Hobbs Act robbery, which is the robbery of a business engaged in interstate commerce; conspiracy to commit robbery; and possession of a firearm in furtherance of the robbery. Cameron Hallman previously pleaded guilty for his role in the robberies and was sentenced to 180 months in prison and three years of supervised release.
Elijah Hallman is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI and CMPD handled the investigation. Assistant U.S. Attorneys David Kelly and Cortney Randall, of the U.S. Attorney’s Office in Charlotte, prosecuted Elijah Hallman’s case. Assistant U.S. Attorney Steven Kaufman handled Cameron Hallman’s prosecution.
Cedar Rapids Man Pleads Guilty to Drug Trafficking and Possessing Machineguns and a Pipe BombRead the Press Release
A man who sold cocaine and possessed twenty firearms, including machineguns and a pipe bomb, in downtown Cedar Rapids, pled guilty January 17, 2020, in federal court in Cedar Rapids.
Raven Damien Meader Burkhow, age 25, from Cedar Rapids, Iowa, pled guilty to conspiracy to distribute a controlled substance, two counts of use and possession of a firearm during and in furtherance of a drug trafficking crime, possession of a sawed-off shotgun in furtherance of a drug trafficking crime, possession of machineguns, and possession of an unregistered pipe bomb.
Evidence at a previous hearing in this case showed that Burkhow sold cocaine on five occasions. Burkhow also sold a gun without a serial number, known as a “ghost gun,” with a silencer and a machinegun. Burkhow sold the cocaine and guns from the doorway of his apartment building in downtown Cedar Rapids. Law enforcement later searched his apartment. Officers seized twenty firearms, including machineguns, a sawed-off shotgun, and a pipe bomb; cocaine; silencers; and thousands of rounds of ammunition in late April and early May 2019. As part of his plea, Burkhow also agreed to forfeit items named in the indictment, including $177,720 in cash, six gold bars valued at approximately $5,522.50, firearms, and ammunition, which were seized in connection with the case.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Burkhow remains in custody of the United States Marshal pending sentencing. Burkhow faces a mandatory minimum sentence of 25 years’ imprisonment and a possible maximum sentence of life imprisonment, a $6,010,000 fine, and up to a lifetime term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Kyndra Lundquist and Richard Murphy and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Iowa Division of Narcotics Enforcement.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing 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 /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-59.
Follow us on Twitter @USAO_NDIA.
California Man Pleads Guilty to Misbranding and Smuggling Conspiracy Involving Online Sale and Distribution of Unapproved Drugs Obtained from OverseasRead the Press Release
PITTSBURGH, Pa. – A resident of Murrieta, California, pleaded guilty in federal court to one count of conspiracy to smuggle misbranded drugs into the United States and introduce them into interstate commerce, United States Attorney Scott W. Brady announced today.
Justin Ash, 36, pleaded guilty before United States District Judge Arthur J. Schwab on January 16, 2020.
During his plea hearing, Ash admitted that between January 2016 and May 8, 2018, he engaged in a conspiracy to obtain unapproved drugs in bulk quantities from overseas suppliers, including suppliers in China, for the purpose of pressing the drugs into pills and distributing them to customers throughout the United States via his internet-based business Domestic RCS. Ash’s website, www.domesticrcs.com, advertised multiple unapproved or "misbranded" drugs—clonazolam, diclazepam, flubromazolam, and etizolam—each of which was a non-prescription benzodiazepine or substance with a similar chemical composition. As Ash further acknowledged, these substances carried risks of dependency, toxicity, and even fatal overdose, particularly when combined with other central nervous system depressants. Although his website and the packaging contained in his shipments indicated that the substances were for "research purposes only," Ash admitted that he was aware that the vast majority of his customers purchased the drugs for individual consumption. Indeed, Ash or others acting at his direction communicated directly with individual customers about, among other things, the effects of the drugs when used for personal consumption. In an effort to evade detection by United States federal authorities, including the United States Food and Drug Administration, United States Postal Inspection Service, and United States Customs and Border Protection, Ash also admitted that he caused his overseas suppliers to ship drugs to multiple addresses under his control and in smaller quantities that would draw less government scrutiny.
As part of a written plea agreement, Ash acknowledged causing a loss of more than $550,000 but not more than $1,500,000. He further agreed to forfeit approximately $230,000 in currency seized from his home and a bank account under his control. Ash also agreed to the entry of an additional forfeiture money judgment in the amount of $550,000.
The defendant faces a maximum sentence of five years in prison, a fine of not more than the greater of (i) $250,000 or (ii) an alternative fine in an amount not more than the greater of twice the gross pecuniary gain to any person or twice, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The United States Food and Drug Administration – Office of Criminal Investigations and Homeland Security Investigations conducted the investigation leading to the charge in this case.
Bronx, New York, Man Admits Role in Conspiracy to Distribute Heroin and Fentanyl from A Drug Mill in the BronxRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, U.S. Attorney Craig Carpenito announced.
Jose Antonio Vasquez Pena, a/k/a “Tono,” 47, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Dilson Vazquez Genao, 23, Eddie Urena Rodriguez, 35, and Francisco Mercedes Gil, 31, also of the Bronx, New York, pleaded guilty before Judge Salas to the same charges in September 2019.
Three other individuals – Jhan Carlos Capellan Maldonado, 31, Daury Contreras Ulerio, 34, and Reimon Genao Rosario, 23 – were indicted on the same charge as Pena in August 2019. Their cases are pending.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned that Maldonado used an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time—including Rodriguez, Ulerio, Rosario, Gil, and Genao—to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, but all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
Each defendant faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing is scheduled for April 27, 2020.
U.S. Attorney Craig Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Health Care Fraud Unit in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, Newark
Boston Man Admits to Conspiracy to Defraud Seniors in Phony Bail Money SchemeRead the Press Release
PROVIDENCE – A Boston man today admitted to participating in a scheme to defraud senior citizens across the country by persuading them to send significant cash payments to various addresses in Rhode Island to secure the release of a relative from jail, purportedly arrested after being involved in a motor vehicle accident.
Julio Feliciano, 32, admitted that between April and October 2019, members of the conspiracy contacted senior citizens in at least four states, North Carolina, Delaware, Illinois, and Tennessee, and told them that cash payments ranging from $7,000 to $9,500 were required to secure the release of a relative, typically a grandson or nephew, from jail. The claims were not true.
In each instance, a member of the conspiracy, using various fictitious names, instructed a senior citizen to mail packages containing cash to locations in Rhode Island, including private residences, UPS stores, and a pharmacy. Feliciano admitted to the Court that he traveled to the various locations to retrieve the packages.
Feliciano was arrested on November 22, 2019, on a federal criminal complaint as the result of a still on-going investigation by Rhode Island State Police and Homeland Security Investigations.
Appearing today before U.S. District Court Judge Mary S. McElroy, Julio Feliciano pleaded guilty to conspiracy to commit mail fraud, announced United States Attorney Aaron L. Weisman, Rhode Island State Police Superintendent James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
Feliciano is scheduled to be sentenced on April 20, 2020.
Conspiracy to commit mail fraud is punishable by statutory penalties of up to 20 years imprisonment, a fine of up to $250,000 or twice the pecuniary value of the gain or loss resulting from the offense, and a term of supervised release of 5 years.
The case is being prosecuted by Assistant United States Attorney Lee H. Vilker.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. If you are a victim or know a victim of elder fraud, you can call 1-877-FTC-HELP or go to ftc.gov/complaint. For downloadable Elder Abuse Prevention resources and for information about community outreach programs in Rhode Island, visit the United States Attorney’s Office’s Elder Justice Initiative web page at https://www.justice.gov/usao-ri/elder-justice
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Baton Rouge Man Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced West Clark, age 40, of Baton Rouge, Louisiana, to 54 months in federal prison following his conviction for possession of a firearm by a convicted felon. The Court further sentenced Clark to three years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.
According to admissions Clark made as part of his guilty plea, on July 2, 2014, DEA Task Force Officers executed a state search warrant for an apartment where Clark resided in Baton Rouge, Louisiana. During a search of the apartment, officers found a Taurus Model PT111 Millennium Pro, 9mm semi-automatic pistol, which was loaded with 10 cartridges, as well as 59.1 grams of heroin belonging to Clark.
Prior to possessing the firearm, Clark was convicted in East Baton Rouge Parish in 2004 for possession of cocaine, and in 2006 for attempted possession of a firearm by a convicted felon. Clark also had two prior federal convictions in the Middle District of Louisiana for possession of a firearm by a convicted felon in 2006, and illegal conversion of government property in 2007.
U.S. Attorney Fremin stated, “Sending repeat offenders to prison is another example of our commitment to fight violence and how the collaborative efforts of the federal, state, and local law enforcement can make our streets safer. I want to thank our prosecutor, ATF, DEA, and the East Baton Rouge Parish Sheriff’s Office for their efforts.”
“In our commitment to disrupt violent gun crime in our community, ATF in this joint effort, will continue to focus on convicted felons, like West Clark, who possess a firearm in conjunction with narcotics violations,” said ATF Baton Rouge Field Office Resident Agent in Charge Mary Downie. “Reducing firearm related crimes and keeping our community safe is the top priority for ATF.”
DEA Assistant Special Agent in Charge Michael R. Sader said, “The collaborative effort of federal and local law enforcement in Baton Rouge, including the U.S. Attorney’s Office, has led to the sentencing of this career criminal and ultimately safer streets within our community. DEA will continue to work tirelessly to protect our communities and hold accountable those who threaten our safety.”
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the East Baton Rouge Parish Sheriff’s Office. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana; Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration, with substantial assistance from the East Baton Rouge Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Paul Pugliese.
Baltimore Felon Sentenced to 10 Years in Federal Prison for Illegal Possession of a Stolen FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Irvin Hudson, age 31, of Baltimore, Maryland, to 10 years in federal prison, followed by five years of supervised release, for being a felon in possession of a stolen firearm. The sentence was imposed on January 17, 2020.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Toni Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Jennifer C. Boone; and Commissioner Michael Harrison of the Baltimore Police Department.
United States Attorney Robert K. Hur stated, “We are committed to working with our law enforcement partners to get guns out of the hands of convicted felons and off of our streets, in order to reduce violent crime in our neighborhoods. Irvin Hudson was a convicted felon who chose to possess a stolen firearm and was arrested after running from a vehicle that had been carjacked. This combination of facts often proves deadly on our streets. Hudson now faces 10 years in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to his guilty plea, on the afternoon of November 30, 2018, Baltimore Police Department (BPD) officers responded to an armed carjacking of a white Honda Accord. According to the victims of the carjacking, a man approached the driver, who was standing outside the vehicle at a gas station, and pointed a black handgun at him. The carjacker then told the female in the passenger seat to exit the vehicle, took the driver’s keys, and fled in the vehicle.
That evening, BPD received GPS information about the location of the carjacked vehicle. Once officers located the vehicle, it sped away. Officers in the BPD helicopter, known as “Foxtrot,” tracked and relayed the vehicle’s location to officers on the ground. The vehicle stopped, and the driver and a front passenger exited the vehicle and fled in different directions.
Officers in Foxtrot tracked the fleeing passenger, later identified as Hudson, relaying his location to ground officers. The officers in Foxtrot saw Hudson attempt to hide under a truck in an alley and saw him throw a firearm. Officers immediately went to the location and recovered the firearm—a semi-automatic pistol with a 9 mm cartridge in the chamber. The firearm’s magazine was missing, but was subsequently located next to the passenger side door of the vehicle where Hudson had exited the vehicle. The magazine was loaded with four 9mm cartridges. Hudson admitted that he knew that the firearm was stolen.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF, the FBI, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael Goldsticker and Matthew DellaBetta, who prosecuted the case.
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Asheville Man Pleads Guilty to Securities Fraud and Money Laundering for $22 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – Hal H. Brown Jr., 70, of Asheville, N.C., pleaded guilty to securities fraud and transactional money laundering in federal court today before U.S. Magistrate Judge David C. Keesler, for orchestrating a $22 million Ponzi scheme, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to admission made in plea documents and today’s plea hearing, from at least 2006 through September 2019, Brown fraudulently obtained more than $22 million from dozens of victims, some of whom were at, or near, retirement age, by engaging in an investment scheme through his company Oodles Inc. and its various affiliates (collectively, “OODLES”). Individual victims invested anywhere from a few thousand to a few million dollars in OODLES. To induce victims to invest their money, Brown falsely represented that OODLES owned hundreds of millions of dollars in intellectual property, namely family entertainment shows and movies. As part of the scheme, Brown repeatedly lied to victims about the imminent sale of those intellectual properties to various well-known media companies. To perpetuate the fraud, Brown developed marketing material seeking investments or loans for OODLES that claimed large returns on funds invested or lent to the company.
As Brown admitted in court today, to convince victims the scheme was legitimate and to appease investors who sought an explanation about delays in payouts, Brown provided victims with a number of fraudulent and misleading statements and fictitious information, including fake bank statements and falsified company agreements, among others.
Brown used a substantial part of victim money on personal expenses unrelated to purported OODLES transactions. He also used funds contributed by new investors to make payments to existing investors, commonly referred to as “Ponzi” payments.
A sentencing date for Brown has not been set. The securities fraud charge carries a maximum prison sentence of 20 years and a $5 million fine. The transactional money laundering charge carries a maximum prison term of 10 years and a fine of not more than twice the amount of criminally derived property in the transaction or $250,000.
The FBI’s Charlotte Field Office handled the investigation.
Assistant U.S. Attorneys Daniel Ryan and Mark Odulio of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative.
Accomplice to Armed Robbery of United States Postal Letter Carrier Sentenced to 9 ½ Years in Federal PrisonRead the Press Release
Memphis, TN – In October 2019, a federal jury convicted Wendy Thomas, 39. Thomas has now been sentenced to 114 months imprisonment for robbery of mail, money or other property of the United States and use of a firearm during and in relation to a crime of violence. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on November 21, 2016, at approximately 12:50 p.m., U.S. Postal Inspectors responded to the robbery of a U.S. Postal Service Letter Carrier in the area of 890 Baltic Street. The gunman approached the letter carrier and pointed a semi-automatic handgun as she was placing her mail satchel in her postal truck.
The suspect asked for cash or checks that were in the vehicle. He then went through the mail and took several envelopes and packages. As the suspect was leaving, he threatened the letter carrier and told her "to stay back, don’t move until I leave or I am going to blow your damn head off." The gunman fled in a blue 2005 Toyota Matrix. Investigators later determined that Wendy Thomas was the getaway driver and that Jamal Cherry was the gunman.
The robbery was captured by a nearby home surveillance video camera. Surveillance video footage depicts Cherry exiting the Toyota Matrix to rob the letter carrier. The video then showed Thomas slide from the passenger side of the vehicle to the driver's side to ready herself for Cherry's return. When Cherry completed the robbery, Thomas sped off from the scene in the Toyota Matrix. During an interview with U.S. Postal Inspectors, Thomas admitted to being on the scene and driving Cherry away from the robbery.
On September 15, 2017, Cherry pled guilty to the armed robberies of two U.S. Postal Service letter carriers and received a sentence of 13 years in federal prison.
On January 16, 2020, U.S. District Court Judge Thomas L. Parker sentenced Thomas to 114 months in federal prison followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said, "This office takes very seriously our duty to protect the safety of United States Postal Service employees and the sanctity and security of the U.S. Mail. Armed robberies of Postal carriers are brazen and disturbing acts of violence that attack our government institutions and terrorize our community, and must be met with significant consequences. These dangerous offenders have sown violence and greed, and as a result of these sentences, they will now reap the full measure of consequences for their criminal conduct."
"We are very pleased with this sentence, as we think it adequately reflects the serious and dangerous nature of the crime involved. A large part of the Postal Inspection Service mission is assuring the safety of postal employees. These types of crimes against postal employees are rare, but when they do occur, they are the top priority for us," said David McGinnis, Inspector-In-Charge of the Charlotte Division.
The United States Postal Inspection Service investigated this case.
Assistant U.S. Attorney Marques Young prosecuted this case on behalf of the government.
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Monday 20 January 2020
Statement from Attorney General William P. Barr on Martin Luther King Jr. DayRead the Press Release
Attorney General William P. Barr issued the following statement:
Today, we honor the life and legacy of Dr. Martin Luther King, Jr. “Injustice anywhere is a threat to justice everywhere,” Dr. King wrote in his famous letter while confined to a narrow cell in the Birmingham city jail. In the face of grave intolerance, Dr. King exemplified great moral and physical courage, playing a seminal role in the fight for civil rights and leading our nation to a better destiny. As the Department of Justice celebrates its sesquicentennial year, let us be motivated by the example of Dr. King, always seeking and striving for the fair and impartial administration of justice for all Americans.
Sunday 19 January 2020
Former Milton Mayor and Ex-Head of United Way of Santa Rosa County Sentenced to Federal Prison for Fraud and Tax EvasionRead the Press Release
PENSACOLA, FLORIDA – Guyland W. Thompson, a former mayor of Milton, Florida, and ex-executive
director of the United Way of Santa Rose County, today was sentenced to 51 months in federal prison
after pleading guilty to wire fraud and tax evasion. Thompson, 65, of Milton, was ordered to
forfeit $221,868.28 seized from his bank accounts and pay an additional money judgment of
$430,132.33. Restitution will be decided at a later hearing. The sentence was announced today by
Lawrence Keefe, United States Attorney for the Northern District of Florida.Thompson pled guilty last May to 20 counts of wire fraud and three counts of tax evasion stemming
from his embezzlement of funds from United Way of Santa Rosa County while he ran the organization.
Between at least 2011 and 2018, Thompson embezzled over $650,000 from the charity. He used his
position and access to the charity’s records and bank accounts to steal money from the charity for
years by conducting a series of complicated financial transactions to cover his tracks. He also
made false representations to board members, employees, bank tellers, and United Way Worldwide to
keep his fraud undetected for so long. Thompson then failed to report to the Internal Revenue
Service the extra income from his embezzlement scheme.“These crimes affected not only an outstanding charitable organization, but also the many
individuals who depended on multiple nonprofits to help them deal with day-to-day challenges. This
defendant violated the trust of all these innocent victims, and this sentence reflects the harm he
did to so many,” U.S. Attorney Keefe said.As a result of Thompson’s crimes, United Way of Santa Rosa County lost its charter with the
international organization and was forced to close. The restitution Thompson was ordered to pay
will be divided between United Way of Santa Rosa County and 15 local charities that previously had
been supported by it.The case was investigated by the Federal Bureau of Investigation and the Internal Revenue
Service-Criminal Investigations. The case was prosecuted by Assistant United States Attorney
Alicia H. Forbes.The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern District
of Florida, visit http://www.justice.gov/usao/fln/index.html.This marks the 150th anniversary of the Department o Justice. Learn more about the history of
our agency at www.Justice.gov/Celebrating150Years.
Friday 17 January 2020
Woman sent to federal prison for smuggling pure methRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Huntsville, Alabama, woman has been ordered to prison following her conviction for knowingly attempting to smuggle 20 pounds of pure meth, announced U.S. Attorney Ryan K. Patrick.
Guadalupe Inostroza-Diaz pleaded guilty Sept. 26, 2019.
Today, Senior U.S. District Judge Janis Graham Jack handed Inostroza-Diaz a 70-month sentence to be immediately followed by five years of supervised release. At the hearing, the court noted that even though Inostroza-Diaz had no prior criminal history and only played a minor role in the drug distribution scheme, a sentence of more than five years was appropriate for trafficking meth.
On June 21, 2019, Inostroza-Diaz drove a white Nissan Altima into the primary inspection area of the Border Patrol (BP) checkpoint near Falfurrias. An X-ray search of the vehicle revealed bundles of meth concealed within the walls of an ice chest located in the car’s trunk.
Laboratory analysis later confirmed the substance in the bundles was 100% pure meth totaling 12 kilograms with a street value of more than $919,000.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorney (AUSA) Robert D. Thorpe Jr. and former AUSA Julie K. Hampton prosecuted the case.
United States Attorney D. Michael Dunavant Statement 2019 Memphis Crime Data and Violent Crime Reduction Strategies and OperationsRead the Press Release
Memphis, TN -We are pleased to join together today as the leaders of federal, state, and local law-enforcement agencies in Memphis and Shelby County to announce the crime statistics for 2019 in the City of Memphis. Special thanks goes to Deputy Chief Don Crowe at the Memphis Police Department for compiling and making these crime statistics available for our use and analysis on a regular basis. As you will see from the reported numbers, we are pleased to announce that overall Part I crime decreased by 6.3% in all precincts of the city, and in most major categories. Violent crime also decreased by 8.2% in 2019, adding to a two-year total decrease of 13.1% since 2017.
While none of us can take individual credit for these positive public safety outcomes, these numbers represent the collective work, vision, collaboration, and coordination of resources, specialties, and priorities of all of the law-enforcement agencies assembled here today. These significant decreases in major violent crime categories demonstrate that our policies, initiatives, and task force models are working to target and remove the most violent and repeat offenders from our community, which in turn improves overall public safety for law abiding citizens.
Three years ago, all of these agencies committed to participation in the Public Safety Partnership, also known as PSP, where the Department of Justice provided training and technical assistance for us to develop data-driven best practices and coordinated policies to drive down violent crime. We are now starting to see the positive fruits of our labors, and these numbers are more than just tough on crime or smart on crime rhetoric. These quantitative measures represent real lives saved, real victims avoided, and better quality of life for citizens, neighborhoods, and businesses in Memphis. To quote the Mayor, Memphis has Momentum in many areas, and now that momentum includes violent and overall crime reduction in a sustained and meaningful way. The anecdotal stories of crime that we often tell are now confirmed by the statistical results of our labor.
Reducing violent crime requires comprehensive and collaborative strategies. It also takes courage from all law enforcement agencies to find solutions that work, and commitment to follow through with them with sustainable approaches and long-term investments. This group of law enforcement leaders has done just that.
When armed carjacking incidents spiked in Memphis and Shelby County over 65% in late 2017, we launched the Carjacking Initiative to coordinate investigations and prosecutions, and as a result, carjacking incidents have decreased this past year by 12.1%.
The FBI Safe Streets Task Force has gotten back to the basics of response to and investigation of armed bank and business robberies, dramatically increasing the clearance rate of those cases. As a result, the incident rate of business robberies declined by 25.8% in 2019.
In August, 2019, the U.S. Marshals Service conducted a joint initiative with all of these agencies known as "Operation Bluff City Blues", which arrested 214 fugitives, many of whom had outstanding warrants for violent crimes. That successful operation included a total of 79 identified gang members, 65 individuals for aggravated assault, 34 individuals for homicide, 69 individuals for weapons offenses, and 40 individuals for drug offenses.
Over the last 2 years, the Department of Justice has invested resources into Memphis to combat violent crime, and we are using them effectively. The ATF has established a Crime Gun Intelligence Center (CGIC) to use the technology of the National Integrated Ballistic Information Network (NIBIN) to better respond to, solve, and correlate shooting incidents. The ATF has also added new agents to the Gun Strike Force, who is working with the Multi-Agency Gang Unit (MGU) to disrupt and dismantle criminal gangs and remove violent offenders from the streets of Memphis.
Because we know that violent crime is often associated with and motivated by drug trafficking activities, we have partnered with the DEA and the Memphis Police Department Organized Crime Unit in our Heroin Initiative to identify and stop the source of supply, punish and deter heroin and fentanyl dealers, prevent new users, refer addicts to treatment, deploy Narcan to hotspots, and save lives.
Our reinvigorated Project Safe Neighborhoods (PSN) Task force is continuing their great work in coordinating and prioritizing firearms offenses for aggressive prosecutions, which take guns out of the hands of dangerous and violent offenders.
In a new approach led by the District Attorney’s Office that is already paying dividends, we have fully committed to "Operation Comeback," a focused deterrence crime-reduction strategy in which carefully selected high-risk offenders are advised of swift, severe and certain punishment for continued criminal behavior, while at the same time being offered social services such as job training, education, housing assistance, drug and alcohol treatment, counseling, life skills and anger management.
And finally, our newest initiative, "Operation Relentless Pursuit", will surge new federal resources and agents into Memphis to further reduce violent crime. As a result of federal grant funding, Memphis and Shelby County will be able to hire more officers, obtain new technology, training, vehicles, and other personnel, and assign more officers to federal task forces to effectively target violent offenders and hot spots. The first phase of the operation is being led by the U.S. Marshals Service, and the name of the operation speaks directly to its proactive nature and sustained duration.
Our return to proven law enforcement policies and our adoption of new initiatives and resources is working. Here in the U.S. Attorney’s Office, we have dramatically increased our output in the number of firearms, violent crime, drug and gang prosecutions over the last 2 years, and the welcome outcome has been improved public safety. Putting the right people in prison incapacitates the most violent offenders, upholds the rule of law, deters criminal conduct with a strong message of significant consequences, and makes us all safer.
While many persistent violent crime challenges remain and much work is still needed in these areas, we are optimistic about these downward trends in crime, and we look forward to continuing to implement effective strategies with resolve and commitment to public safety in Memphis and Shelby County.
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Two Philadelphia Firearms Traffickers Convicted at Trial of Multiple Offenses Including Gunpoint Robbery of ATF InformantRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Darrell Wylie, 27, and Namir White, 29, both of Philadelphia, PA were convicted at trial on all charges arising from their involvement in illegal gun sales and the gunpoint robbery of a cooperating government informant.
Wylie and White were both charged in December 2019 with robbery, theft of government funds, using and carrying a firearm during and in relation to a crime of violence, being a felon in possession of firearms, and aiding and abetting. Wylie was also charged at the same time with possession with the intent to distribute heroin and fentanyl, and possession of a firearm in furtherance of a drug trafficking crime. White was also charged at the same time with dealing in firearms without a license.
Between April and August 2017, White sold 11 handguns to a Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) cooperating witness in nine separate transactions. Wylie sold two additional guns to the cooperating witness in two transactions in October 2017. Neither defendant possessed a federal firearms license as necessary to lawfully engage in the business of dealing in firearms. Moreover, both defendants had been convicted of felony offenses prior to the above referenced transactions. Each of the transactions was audio and video recorded; in each case, the cooperating witness used funds provided by ATF to make the purchases.
Finally, in November 2017, the defendants jointly agreed to sell three more guns to the cooperating witness, for a total price of $3,200 cash. As in all of the prior controlled transactions, the cooperating witness was provided with government funds, in cash, to make the purchase. The witness met with White and Wylie as planned. However, instead of selling him the guns as agreed, the defendants took the cash from him and, while Wylie threatened him with a pistol, announced that they would keep the money and that he would be shot if he resisted. The cooperating witness fled and reported what had occurred to the ATF agents who were monitoring the transaction. Both defendants were soon arrested, and Wylie was found with a pistol in his waistband and approximately 20 packages of fentanyl-laced heroin.
Both defendants now face significant sentences as career offenders: as much as 360 months to lifetime incarceration.
“The conviction of Wylie and White is a victory for the citizens of Philadelphia because their lawless gun trafficking endangered everyone living and working here,” said U.S. Attorney McSwain. “So far this year, Philadelphia has already seen more than 20 homicides in half a month. We will continue to work aggressively to enforce the laws on the books and to keep guns out of the hands of those, like convicted felons, who are not permitted to possess them.”
“ATF’s top priority is combating violent crime; one of the ways we accomplish that mission is by keeping firearms out of the hands of violent offenders,” said Donald Robinson, Special Agent in Charge, ATF Philadelphia Field Division. “These convictions are a perfect example of the collaborative effort between ATF, our partners at the Philadelphia Police Department and the United States Attorney’s Office in targeting violent offenders and protecting our communities.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Joseph A. LaBar.
Two People Indicted for $30 Million Dollar Fraud Scheme Involving Blockchain Technology CompanyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman and a Canadian man were indicted today for their roles in a securities fraud scheme that induced victims to invest $30 million worth of cash and cryptocurrency based on fraudulent misrepresentations, U.S. Attorney Craig Carpenito announced.
Edith Pardo, 68, of Bloomfield, New Jersey, and Boaz Manor, 46, of Toronto, Canada, are each charged with one count of conspiring to commit wire fraud, three counts of wire fraud, and one count of securities fraud in connection with a blockchain technology company. Pardo was arrested today by special agents of the FBI and is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. Manor remains at large.
According to the indictment:
In 2003, Manor co-founded and managed a hedge fund based in Toronto, Canada. In connection with his work at that hedge fund, Manor pleaded guilty in Canada to one count of transferring monies in breach of trust and one count of disobeying a court order. He was sentenced to four years in prison.
Following his release from prison, Manor founded a business, CG Blockchain Inc., and began creating a product called ComplianceGuard, which was purportedly designed provide hedge funds with a blockchain-based auditing tool. While raising money for CG Blockchain, Manor hid his true identity and criminal past from investors and others by using a variety of aliases, including “Shaun MacDonald.” He also changed his appearance by darkening his hair and growing a beard.
Manor secured a significant portion, if not all, of the initial seed money in CG Blockchain from a close family member. In order to conceal the source of this money, Manor recruited Pardo to act as a conduit for the money. The defendants misrepresented to potential CG Blockchain investors that Pardo was an independently wealthy investor who provided millions of dollars in seed money to CG Blockchain.
The defendants also misrepresented that 20 hedge funds were using ComplianceGuard and were each paying CG Blockchain a $1 million yearly fee. In reality, none of the 20 hedge funds paid fees to CG Blockchain, and many of the hedge funds did not receive or use ComplianceGuard at all.
In 2017, CG Blockchain launched an “Initial Coin Offering” (ICO), and began marketing its new product – “Blockchain Terminal” – to potential investors. CG Blockchain described Blockchain Terminal as a computer terminal that allowed hedge funds and financial institutions to trade and manage cryptocurrency. Manor actively marketed the token to investors, while failing to disclose his true identity or his role at CG Blockchain. The defendants also misrepresented to ICO investors that the Blockchain Terminal had “Actual Clients” and was “installed at 20 hedge funds.”
In 2018, CG Blockchain publicly announced that it had raised $30 million from its ICO. Following the ICO, CG Blockchain investors learned of Manor’s true identity and criminal past. When confronted by an investor, Manor admitted that he had hidden his real identity and criminal past because disclosure of that information would have resulted in “the company being destroyed.”
The conspiracy and wire fraud counts in the indictment carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Manor and Pardo today based on the same conduct.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges. He also thanked the SEC for the assistance provided by its Enforcement Division.
The government is represented by Assistant U.S. Attorneys Vijay Dewan and Catherine R. Murphy of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Immigrants, A Pastor, and an Army Sergeant Convicted for Marriage/Immigration SchemeRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that four defendants, Rajesh Ramcharan, age 45, Diann Ramcharan, age 37, Sergeant Galima Murry, age 31, and Pastor Ken Harvell, age 60, have been found guilty following a nine-day jury trial for conspiracy to commit marriage fraud and making false statements regarding that fraud to the government. The jury announced the guilty verdicts yesterday, January 16, 2020, after approximately three hours of deliberation. No sentencing date has yet been set. Homeland Security Investigations (HSI), U.S. Citizenship and Immigration Services (USCIS), and Army Criminal Investigations Division (Army CID), joined in the announcement.
According to facts established at trial, the purpose of the conspiracy was to obtain immigration benefits for Rajesh Ramcharan, Diann Ramcharan, and one of their minor children. The Ramcharans, a married couple, came to the United States from Trinidad & Tobago on visitor visas in 2007. They overstayed their visitor visas and settled in Colorado. They then devised a scheme to defeat United States immigration laws and stay in the country illegally.
The scheme had several steps. First, in 2010, the couple was married by Pastor Ken Harvell, who signed a marriage certificate for the Ramcharans. The couple then filed for a divorce. Five days after that divorce was finalized, Pastor Harvell signed a new marriage certificate for Diann Ramcharan and Sergeant Galima Murry. Sergeant Murry is a citizen of the United States and at the time was a soldier at Fort Carson. Diann Ramcharan and Sergeant Murry entered into this marriage for the purpose of evading immigration laws and enabling Diann Ramcharan to stay in the United States. In addition, Sergeant Murry separately obtained military benefits by claiming to be married to Diann Ramcharan. Several years later, in 2015, Rajesh Ramcharan entered into a marriage with Angelica Guevara, who also is a citizen of the United States. Pastor Harvell, whom the jury found knowingly and voluntarily participated in the conspiracy, also signed the marriage certificate between Guevara and Rajesh Ramcharan. During the time of both the Ramcharans’ fraudulent marriages to Murry and Guevara, the Ramcharans lived with each other and otherwise presented themselves to the world as a married couple.
“As the defendants in this case learned, marriage fraud to gain citizenship is a crime,” said U.S. Attorney Jason Dunn. “There are lawful ways for individuals to become citizens of the United States. Those who try to circumvent those laws will be held accountable.”
Each defendant was also convicted for their involvement in the submission of at least one false statement to U.S. immigration authorities as part of the Ramcharans’ attempts to gain lawful immigration status in the United States. Guevara pleaded guilty to the conspiracy and testified at trial about the marriage fraud scheme.
The trial was held before the Honorable David M. Ebel. The defendants were prosecuted by Special Assistant U.S. Attorney Daniel McIntyre and Assistant U.S. Attorney Emily Treaster. This case was investigated by Homeland Security Investigations (HSI), U.S. Citizenship and Immigration Services (USCIS), and Army Criminal Investigations Division (CID), with assistance from the El Paso County Sheriff’s Office.
Two Defendants Sentenced in Major Drug ConspiracyRead the Press Release
Abingdon, VIRGINIA – Two members of a drug distribution organization that trafficked methamphetamine, heroin, oxycodone, cocaine, and other drugs from Georgia into Southwest Virginia were recently sentenced in federal court on drug conspiracy charges, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
In a hearing this week, Roy Lee Dykes, 61, of Watkinsville, Ga., formerly of Big Stone Gap, Va., was sentenced to 325 months in federal prison. He was previously convicted at trial of one count of conspiracy to possess with the intent to distribute and distributing 50 grams or more of methamphetamine, in addition to cocaine, heroin, alprazolam, and oxycodone. Dykes was also convicted of 17 counts of distributing and possessing with intent to distribute controlled substances.
On December 19, 2019, Leila Varetta “Rita” Hector-Dykes, 57, of Watkinsville, Ga., was sentenced to 121 months’ incarceration. She was previously convicted at trial of one count of conspiracy to possess with the intent to distribute and distributing 50 grams or more of methamphetamine, in addition to cocaine, heroin, alprazolam, and oxycodone. Hector-Dykes was also convicted of one count of distributing and possessing with intent to distribute controlled substances.
The Court also ordered that $10,007 seized from the defendants be forfeited to the United States, in addition to awarding a money judgment against the defendants in the amount of $108,719.
In all, 11 individuals were charged as part of this drug trafficking conspiracy. All 11 defendants have now been convicted and sentenced.
According to evidence presented at trial, these defendants conspired to traffic a variety of controlled substances, including methamphetamine, heroin, cocaine, morphine, oxycodone, and alprazolam, from sources in Watkinsville, Georgia, into Southwest Virginia for redistribution. The organization operated primarily in Lee and Wise counties from November 2016 through March 1, 2018. Arrests on March 1, 2018, resulted in the seizure of approximately 11 ounces of crystal ice methamphetamine, in addition to heroin, cocaine, morphine, and oxycodone, with an estimated street value of $28,000. Currency totaling approximately $14,000 was also seized from the defendants on that day.
The investigation stemmed from another drug trafficking conspiracy arising out of Lee County, Virginia, involving seven defendants, all of whom have been convicted and sentenced. Another four defendants, including Dykes and Hector-Dykes’ sources of supply, were also identified and prosecuted during the course of these investigations. In total, these investigations have led to the successful prosecution of 22 defendants and removed a conservative estimate of 3.5 pounds of crystal ice methamphetamine from the supply chain in Southwest Virginia.
The investigation of this case was conducted by the Southwest Virginia Drug Task Force, Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Numerous agencies assisted with search warrant executions and arrests on March 1, 2018, to include the Drug Enforcement Administration, Big Stone Gap Police Department, Lee, Wise, and Scott County Sheriff’s Departments, City of Norton Police Department, the Wise County Commonwealth’s Attorney’s Office, and the U.S. Marshals. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Kari Munro prosecuted this case for the United States.
Tulsa Man Indicted for Possessing a Gun after a Domestic Violence ConvictionRead the Press Release
A federal grand jury returned an indictment this week charging a Tulsa man with possessing a firearm after being convicted of a misdemeanor crime of domestic violence and with lying to a firearms dealer, announced U.S. Attorney Trent Shores.
Kai Lamar Walela, 34, is charged with possessing a Rock River Arms 5.56 mm caliber rifle and 72 rounds of associated ammunition after a June 2018 misdemeanor domestic assault and battery conviction in Tulsa County District Court.
He is further charged with knowingly making a false statement to Advanced Combat LLC, a licensed firearms dealer, in July 2018, by lying on the ATF Form 4473. When he attempted to purchase a SOTA multi-caliber lower receiver, the defendant allegedly failed to acknowledge that he was previously convicted of misdemeanor domestic violence
Walela is being prosecuted as part of the Justice Department’s Project Guardian, an initiative that focuses on reducing gun violence and enforcing federal firearms laws. Individuals who have been previously convicted of crimes of domestic violence or who have a protective order issued against them are prohibited from possessing firearms.
“The presence of a gun during a crime of domestic violence means the chances are five times greater that the victim will be fatally shot. It also increases the chances that other victims, including children, will suffer the same fate. Project Guardian is a new initiative that we believe will save lives,” said U.S. Attorney Trent Shores. “Every gun related crime or tragedy prevented through Project Guardian prosecutions is a victory for our community. We will also focus our investigative efforts on those who lie on federal firearms forms and try to buy a firearm. In these “lie and try” cases, there is no better partner than the dedicated men and women of the ATF.”
In February 2019, Walela was among six “lie and try” defendants charged in separate criminal complaints. All of the defendants were prohibited from possessing firearms and allegedly lied on the AFT From 4473. U.S. Attorney Shores and ATF Special Agent in Charge Jeffrey C. Boshek II announced charges against the other five defendants at a press conference in February. At the time, Walela remained at large, but in December 2019, authorities took Walela into custody in New Mexico based on an arrest warrant associated with the complaint.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Victor A.S. Régal is prosecuting the case.
Project Guardian draws upon the Justice Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; and 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). This includes 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: https://www.justice.gov/projectguardian.
Tulare Man Convicted of Methamphetamine TraffickingRead the Press Release
FRESNO, Calif. — A federal jury returned a verdict on Thursday finding Jose Roberto Arreola-Serrato, 31, of Tulare, guilty of a conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence produced at trial, Arreola-Serrato worked with other members of a Tulare County-based conspiracy to supply methamphetamine for a large-scale drug trafficking organization, which was responsible for distributing methamphetamine, cocaine, and heroin in California and Washington.
As the result of investigation, law enforcement seized a large amount of controlled substances, including 14 kilograms of methamphetamine, 2 kilograms of cocaine, and 1 kilogram of heroin.
Ten co-defendants charged in October 2015 pleaded guilty to various drug charges and have been sentenced to the following prison terms: Olegario Trujillo, 33, of Fresno, 20 years; Edgar Valencia-Farias, of Tulare, four years; Gladys Ramos, 34, of Woodlake, four years; Carlos Tafoya-Ramos, 22, of Woodlake, six years; Marcos Diaz, 23, of Madera, 11 years; Ramiro Salas Munoz, 37, of Lindsay, time served (10 months); Arthur Allen Walker, 32, of Poplar, three years reduced to time served; Francisca Torres-Guisar, 51, of Visalia, three years; Gary Passmore, 65, of Washington state, three years and nine months in prison, and Jorge Martinez Jr., 23, of Tulare, four years.
Arrest warrants remain outstanding for Arnold Martinez Valencia, 39, of Woodlake, and Pedro Delgado-Montenegro, 36, of Porterville. The charges against them are only allegations, and they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of a Central Valley High Intensity Drug Trafficking Area (HIDTA) investigation conducted by the Central Valley Marijuana Investigation Team (CVMIT). CVMIT was composed of Homeland Security Investigations (HSI), California Department of Justice-Bureau of Investigation, California Fish and Wildlife, Tulare County Sheriff’s Office, Kings County Sheriff’s Office, and Fresno County Sheriff’s Office. Assistant U.S. Attorneys Kathleen Servatius and Mira Chernick are prosecuting the case.
Arreola-Serrato will appear in district court for sentencing on April 10. Arreola-Serrato faces a mandatory minimum statutory penalty of 10 years and up to life in prison. The actual sentence, however, will 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.
Three Defendants Appear in Federal Court for Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Three defendants appeared in federal court for gun crimes this week, announced United States Attorney Mike Stuart.
Jason Wattie Buzzard, 35, was sentenced to 18 months in prison for being a felon in possession of firearms. That term of imprisonment will be followed by three years of supervised release. On October 12, 2018, Buzzard, a convicted felon, arranged to pick up Paul William Martin, also a convicted felon, at the Sheetz gas station in order to sell him firearms. Buzzard was prohibited from possessing firearms due to his Kanawha County felony conviction of breaking and entering and a domestic battery conviction. Martin was going to buy the guns from Buzzard with a combination of cash and illegal drugs. Shortly after Martin got into Buzzard’s car, they were stopped by officers with the South Charleston Police Department. Officers were able to locate and recover a .25 semi-automatic handgun and a .22 caliber revolver. Ultimately, Buzzard pled guilty on September 23, 2019. Martin was recently found guilty after a two-day jury trial. Martin faces up to ten years in prison when sentenced on March 11, 2020. The South Charleston Police Department conducted the investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
David Walker, Jr., 45, of Huntington, pled guilty to being a felon in possession of a firearm. Walker admitted that while on parole, he possessed two firearms. Walker is prohibited from possessing firearms because he was convicted in 2018 of the felony offense of possession with intent to deliver controlled substances in Cabell County, West Virginia. Walker faces up to 10 years in prison when sentenced on April 13, 2020. The West Virginia State Police and the West Virginia Division of Corrections Probation and Parole Office conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor is handling the prosecution.
Ronald Lucas, 36, of Craigsville, pled guilty to being a felon in possession of a firearm. Lucas admitted that on May 10, 2019, law enforcement officers with the Nicholas County Sheriff’s Department were serving an arrest warrant at his home in Craigsville for failure to pay child support. Lucas answered the door wearing an empty nylon holster. When the officers asked where the gun was located, he indicated that it was inside the residence close to where officers could see another individual laying on a bed. When an officer went inside the residence to secure it, a loaded 9 millimeter pistol was located and seized. Lucas faces up to 10 years in prison when sentenced on May 4, 2020. The Nicholas County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Goodwin presided over the hearing. Assistant United States Attorney Andrew Tessman is handling the prosecution.
The Walker case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
These cases are 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. The United States Attorney’s Office has prosecuted this case with support from Project Guardian partners as mentioned above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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Statement by United States Attorney Richard P. DonoghueRead the Press Release
For the last four days, Special Agents of the Federal Bureau of Investigation (FBI) and detectives of the New York City Police Department (NYPD) have sought to arrest Gerod Woodberry pursuant to a federal arrest warrant charging him with bank robbery.[1] That effort was necessary because, as set forth in the federal Complaint and related documents filed in court today, Woodberry was released after his January 8, 2020 state arrest following four bank robberies he allegedly committed between December 30, 2019 and January 8, 2020. Earlier this afternoon, Woodberry surrendered.
As alleged in court documents, Gerod Woodberry robbed or attempted to rob six New York City banks in 16 days. Those robberies and attempted robberies were committed on December 30, 2019, January 3, 2020, January 6, 2020, January 8, 2020, January 10, 2020 and January 14, 2020. This robbery spree is unprecedented and it is made all the more so by the fact that he was actually arrested and released in the midst of his crimes. The January 10, 2020 robbery in Brooklyn was committed less than four hours after his release on the January 8, 2020 arrest, a release required under recently-enacted bail reform legislation.
No sound, rational and fair criminal justice system requires the pre-trial release of criminal defendants who demonstrate such determination to continuously commit serious crimes. Prior to the recently-enacted reforms, New York judges weighing pre-trial release could consider the flight risk, but not the dangerousness, posed by a charged defendant. The recent reforms have made a bad situation worse by entirely excluding classes of purportedly “non-violent” felonies – like the bank robberies here – from pre-trial confinement eligibility. Preventing judges from considering the danger a charged defendant poses to the public when making a pre-trial confinement decision defies common sense and endangers all New Yorkers.
The recently-enacted bail reforms have dramatically altered the New York criminal justice system and even more dramatic criminal justice proposals are under consideration in New York and across the country. While we must ensure that all criminal justice systems are open to scrutiny and reform, we must also guard against the outright dismantling of criminal justice systems masquerading as criminal justice reform.
I thank and commend the FBI and the NYPD for the exemplary work they do every day to keep the people of New York City safe.
[1] The charges in the complaint are allegations, the defendant is presumed innocent unless and until proven guilty.
Spokane Man Convicted of Attempted Robbery on Coeur d'Alene Indian ReservationRead the Press Release
COEUR D'ALENE - Isiah James Harrington, 19, of Spokane, was sentenced in the U.S. District Court in Coeur d’Alene to 41 months in prison for attempted robbery, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Harrington to serve three years of supervised release following his prison sentence. Harrington pleaded guilty to the charge on September 4, 2019.
According to court records, on January 8, 2019, Harrington followed a man from Spokane Valley, Washington, to the Coeur d’Alene Indian Reservation, in Idaho, to rob him. When the man exited his car, Harrington approached, pointed a firearm, and demanded money. Before he could take the man’s money, Harrington fled when he saw people coming to help from a nearby residence.
This case was prosecuted in federal court because the crime occurred within the boundaries of the Coeur d’Alene Indian Reservation.
This case was investigated by Federal Bureau of Investigation, Coeur d’Alene Tribal Police Department, and Plummer Police Department.
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Slidell Woman Indicted for FEMA FraudRead the Press Release
NEW ORLEANS, LOUISIANA – SCHSHINETIA ANDERSON, age 42, a resident of Slidell, Louisiana, was indicted for filing false claims against the government, announced U.S. Attorney Peter G. Strasser. If convicted, ANDERSON faces a maximum term of 5 years imprisonment, 3 years supervised release, $250k fine and a $100 special assessment.
According to court documents, on or about August 18, 2016, ANDERSON filed a fraudulent request, totaling approximately $22,104.00, for financial assistance due to a natural disaster related to the alleged loss of her primary residence.
United States Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Office of Inspector General for the Department of Homeland Security in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor of the General Crimes Unit.
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Skagit County business owner sentenced to prison for laundering money for drug cartel that trafficked heroin and fentanylRead the Press Release
Tacoma – A Skagit County resident who operated businesses in Burlington and Sedro Woolley, Washington was sentenced today in U.S. District Court in Tacoma to 18 months in prison for his role in knowingly laundering cash drug proceeds for a drug cartel, announced U.S. Attorney Brian T. Moran. ORLANDO BARAJAS, 41, owns and operates ‘Tacos El Antojito’ in Burlington. An extensive wiretap investigation revealed that BARAJAS was laundering the drug proceeds by transmitting the funds to Mexico using the money remittance services offered at his store. At the sentencing hearing Judge Ronald B. Leighton noted that money laundering “is a vital component of the cycle, which incentivizes the predatory practices of the cartel to produce, hide, transport, and ply their particular toxin to a waiting community.”
“Stopping the flow of cash to the cartels in Mexico is a key component in battling the flow of these dangerous drugs into our community,” said U.S. Attorney Moran. “This cartel-connected trafficking organization brought heroin and fentanyl into our communities. We will do all we can to stop the deadly toll of those drugs.”
According to records filed in the case, BARAJAS conspired with the drug traffickers to send tens of thousands of dollars to Mexico in amounts structured to avoid any reporting requirements. BARAJAS created phony names to send the money, and passed along the passwords needed so that conspirators in Mexico could access the cash. In one three-week period he transmitted more than $27,000. BARAJAS transmitted cash for the conspiracy for most of 2018.
In early December 2018, law enforcement moved in on the organization after an 18-month investigation. The coconspirators distributed heroin, fentanyl, cocaine and methamphetamine in Washington State, New York, Arizona, Oregon, California, Tennessee, and Utah. In Western Washington, the group distributed these drugs in Pierce, Kitsap, King, Skagit and Snohomish Counties. Over the course of the investigation law enforcement seized thousands of counterfeit oxycodone pills laced with fentanyl, a powerful and potentially deadly opioid.
Over the past few months leaders of the distribution conspiracy have pleaded guilty and been sentenced to prison terms ranging from four years to ten years in prison.
This investigation was conducted by the DEA Tacoma Resident Office and the Bremerton Police Department, with significant assistance from the Tahoma Narcotics Enforcement Team (TNET), Special Operations Division, Chantilly, Virginia and Northwest High Intensity Drug Trafficking Area (HIDTA).
The cases are being prosecuted by Assistant United States Attorneys Marci Ellsworth, Karyn Johnson, and Angelica Williams.
Shelbyville Resident Sentenced to 50 Years for Sexual Exploitation of A Child and Possession of Child PornographyRead the Press Release
Chattanooga, Tenn. – On January 15, 2020, Brad Anthony Majors, 37, of Shelbyville, was sentenced by the Honorable Curtis L. Collier in the United States District Court for the Eastern District of Tennessee at Chattanooga.
In May 2019, Majors agreed to plead guilty to an indictment, charging him with one count of exploitation of a child in violation of 18 U.S.C. § 2251(a); and one count of possession of child pornography in violation of 18 U.S.C. 2252A(a)(5)(B) and 2252A(b)(2). On January 15, 2020, Majors was sentenced to 600 months in prison, followed by 15 years’ supervised release. Majors will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
In November 2018, after receiving a report of abuse from the mother of Majors’ 8-year-old biological child, authorities investigated and determined that Majors was sexually abusing his child. During questioning, Majors admitted to recording sexually explicit acts between himself and the child, and that he had taken approximately 40 sexually explicit videos and images of such conduct. A search of Majors phone revealed four sexually explicit videos of Majors and the child, including numerous saved images of child pornography depicting known and unknown victims throughout the world that Majors obtained from online sources. Majors also admitted to trading at least one of these images online with an unknown person in exchange for images of child pornography.
“It is evident that offenders are finding new and increasingly disturbing ways to victimize and exploit vulnerable child victims. Cases such as this, however, demonstrate the Department of Justice’s dedication to protecting these vulnerable children and punishing those that seek to cause them harm. No matter who the offenders are, they will be met with significant consequences. With the combined effort of the Project Safe Childhood Initiative and our federal, state, and local law enforcement partnerships, we will find these criminals and hold them accountable for their crimes against children,” said U. S. Attorney J. Douglas Overbey.
"The sexual exploitation of children is an especially heinous crime. Unfortunately, victimization of children is a growing issue in our country and one the FBI will not tolerate. The dedicated teamwork between our agents and the Shelbyville Police Department ensured there is one less predator on the street victimizing the most innocent and venerable members of our community,” said Joseph E. Carrico, Special Agent in Charge of the Knoxville Division of the Federal Bureau of Investigation.
The criminal indictment resulted from an investigation led by the U. S. Attorney’s Offices, the Criminal Division’s Child Exploitation and Obscenity Section, the U. S. Marshal’s Office, Shelbyville Police Department and Special Agent Matthew Acker with Federal Bureau of Investigation (FBI).
Assistant United States Attorney James T. Brooks represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U. S. Attorney’s Offices, the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshal’s federal, state, and local agencies. All resources will locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, visit www.justice.gov/psc. Information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Sheboygan Man Sentenced on Methamphetamine and Firearm ChargesRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 13, 2020, Ey Lao (age: 34) of Sheboygan, Wisconsin, was sentenced to 15 years in federal prison. Lao was found guilty following a jury trial last October of possession with the intent to distribute methamphetamine in violation of Title 21, United States Code, Sections 841(a) and 841(b)(1)(A) and of being a felon in possession of a firearm contrary to Title 18, United States Code, Section 922(g)(1).
The evidence at trial revealed that Lao and his girlfriend, Lola Yang a/k/a “Lola Chang,” slid off an Interstate 43 exit ramp where their vehicle became stuck during a March 1, 2019 blizzard. A Brown County Sheriff’s lieutenant made contact with the couple and became suspicious when his efforts to assist Lao and Yang out of their predicament were rebuffed. Further investigation revealed that the duo were in possession of 73.01 grams of actual (“crystal”) methamphetamine, a digital scale, and drug paraphernalia located inside a locked safe. Following the couple’s arrest, the vehicle was more closely searched and a loaded 9mm Kel-Tec firearm was located in the glove box.
Yang (age: 33), also of Sheboygan, pled guilty prior to trial and received a 10 year sentence on the methamphetamine charge.
Senior District Judge William C. Griesbach noted the serious nature of Lao’s crimes and his prior convictions for similar offenses in state court as support for the lengthy prison sentence. Lao will also be required to spend 10 years on supervised release following his prison sentence.
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