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Friday 17 January 2020
Sex Offender Sentenced to 25 Years in Federal Prison for Abusive Sexual Contact with Two ChildrenRead the Press Release
Greenbelt, Maryland - U.S. District Judge George J. Hazel today sentenced Justin Paul Keener, age 31, of Patuxent River, Maryland, to 25 years in federal prison, followed by lifetime supervised release, on each of two counts of abusive sexual contact with a child, to be served concurrently. Judge Hazel also ordered that, upon his release from prison, Keener must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
“The sexual abuse of a child devastates the victim and their family,” said U.S. Attorney Robert K. Hur. “Justin Keener will now have 25 years in federal prison, where there is no parole—ever—to think about the suffering he has inflicted on these innocent children. This office will continue to prioritize child exploitation cases in order to protect our children from predators like Keener.”
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Salazar of the Naval Criminal Investigative Service, Washington Field Office; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, in November 2017, while residing at Naval Air Station Patuxent River, Keener sexually abused a victim who was under the age of 12. In and before November 2017, Keener sexually abused another victim, also under the age of 12, on multiple occasions.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the NCIS and the FBI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the federal case.
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ResMed Corp. to Pay the United States $37.5 Million to Settle Allegations Under the False Claims ActRead the Press Release
Columbia, South Carolina --- Acting United States Attorney A. Lance Crick announced today that ResMed Corp., a manufacturer of durable medical equipment (DME) for sleep apnea and other sleep-related disorders, has agreed to pay more than $37.5 million to resolve allegations under the False Claims Act for paying kickbacks to DME suppliers, sleep labs, and other health care providers.
The settlement resolves allegations that ResMed used various sales and promotional schemes to unlawfully induce the sales of ResMed equipment. The schemes included providing free call center services and free and below cost masks and machines.
“Health care decisions should be based on what is in the best interest of the patient, and not on financial incentives and related schemes,” said Acting U.S. Attorney Crick. “This settlement represents another example of our district’s commitment to prosecuting schemes that undermine the integrity of our nation’s health care system.”
The settlement resolves five lawsuits originally brought by whistleblowers under the False Claims Act. The False Claims Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in the recovery. The whistleblowers will collectively receive a roughly $6.2 million share of the settlement.
This settlement was the result of a coordinated effort by the Civil Division of the United States Department of Justice; the U.S. Attorney’s Offices for the District of South Carolina, the Southern District of California, the Northern District of Iowa, and the Eastern District of New York; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; the Defense Health Agency Office of General Counsel; the Federal Bureau of Investigation, and the National Association of Medicaid Fraud Control Units.
Former Assistant United States Attorney Jennifer Aldrich investigated this case on behalf of the District of South Carolina. Assistant United States Attorneys Tina Cundari and James Leventis assisted on the case.
The claims resolved are allegations only. There has been no determination of liability.
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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.
Readout of U.S. Attorney General William P. Barr’s Visit to Mexico: January 15-17Read the Press Release
Today, U.S. Attorney General William P. Barr concluded his second trip to Mexico City. The Attorney General participated in high-level meetings regarding joint counter-narcotic efforts as well as efforts to combat transnational criminal organizations (TCOs) and the trafficking of arms and drugs.
The Attorney General reiterated the United States’ commitment to protecting U.S. and Mexican citizens and leaders from both countries reaffirmed their commitment to bilateral law enforcement cooperation.
To that end, leaders from both countries agreed to a joint meeting in February between key U.S. Attorneys' offices and their Mexican counterparts.
Together with U.S. Ambassador Christopher Landau, the Attorney General met with Mexico’s Attorney General Alejandro Gertz, Mexico’s Secretary of Foreign Relations, Marcelo Ebrard Casaubon, Secretary of Public Security and Citizen Protection, Alfonso Durazo Montaño, Defense Secretary General Luis Crescencio Sandoval, Navy Secretary Admiral José Rafael Ojeda Duran, and Security Undersecretrary Ricardo Mejía Berdeja.
Prior City Clerk Sentenced to Prison and Ordered to Pay More than $216,000 in Restitution to the Town of ColdwaterRead the Press Release
GREENVILLE, Miss. – A man hired as the City Clerk for the Town of Coldwater was sentenced to 21 months in federal prison on Wednesday for Wire Fraud. U.S. District Judge Debra M. Brown sentenced George Nangah to serve the 21-month prison term consecutive to any state court term of imprisonment imposed in the Tate County Circuit Court and to pay $216,401.28 in restitution to the Town of Coldwater.
Nangah was hired to be the Town of Coldwater, Mississippi City Clerk, and over the course of three years, from 2014 to 2017, Nangah utilized an unauthorized Town of Coldwater debit card to purchase gift cards for airline tickets, hotels, and retail stores, none of which were used for the benefit of the Town of Coldwater. Nangah also used a charge account in the Town of Coldwater’s name at Best Buy, where Nangah purchased electronic equipment and gift cards not used or meant for use by the Town of Coldwater. Nangah made unauthorized payments to himself as well as one other person on the Town of Coldwater’s Clearing and General Fund bank accounts. Overall, $216,401.28 of loss was attributed to Nangah.
U.S. Attorney William C. Lamar noted that this prosecution was important for citizens throughout the State of Mississippi. “The citizens of Mississippi put a great deal of trust in our government employees and elected officials to utilize resources in a way that benefits the State and its residents. When city officials like Mr. Nangah take those resources and use them for their own personal gain, it is a betrayal of our State and every resident that they pledged to serve when they accepted their positions. Our office will continue to work alongside our federal, state and local partners to hold accountable those individuals who betray the public trust, steal our resources and embarrass our State” Lamar remarked.
This case was investigated by both the State of Mississippi Office of the State Auditor and the FBI. Following the sentencing, State Auditor Shad White also expressed the commitment of his office to holding accountable those individuals who betray the citizens that they were hired to serve. "It's good to see Mr. Nangah sentenced in this case that started as a joint investigation between the Auditor's office and federal agencies. Mr. Nangah embezzled hundreds of thousands of dollars from a small Mississippi town and engaged in multiple fraudulent schemes that hurt taxpayers who could not afford to see their money wasted."
FBI Jackson Division Special Agent in Charge Michelle A. Sutphin also noted the importance of this prosecution. “Government officials are held to a higher standard and are expected to be good stewards of taxpayer money. When criminals use their position to line their own pockets, it erodes the public’s trust in government. Investigating public corruption in Mississippi continues to be a top priority for the FBI,” commented Sutphin.
The federal case was prosecuted by AUSA Parker S. Kline.
Political Consultant Sentenced for Fraud Involving Scam PACsRead the Press Release
WASHINGTON – A Maryland political consultant was sentenced to three years in prison today followed by three years of supervised release for fraudulently soliciting hundreds of thousands of dollars in political contributions through several scam political action committees (PACs) that he founded and advertised as supporting candidates for office and other political causes.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Kelley Rogers, 56, of Annapolis, Maryland, previously pleaded guilty to one count of wire fraud before U.S. District Judge Liam O’Grady of the Eastern District of Virginia. In addition to the prison sentence, Rogers was ordered to pay $491,299 in restitution and to forfeit at least $208,954 in proceeds obtained from his offense.
According to admissions Rogers made in connection with his guilty plea, from August 2012 through 2018, in the Eastern District of Virginia and elsewhere, the defendant operated multiple PACs, including Conservative StrikeForce (CSF), Conservative Majority Fund and Tea Party Majority Fund. In that role, the defendant engaged vendors to send e-mail solicitations and make telemarketing phone calls to prospective donors seeking political contributions to his PACs. Rogers approved the text and other content of all solicitations, and determined how CSF spent the contributions individual donors gave in response to the solicitations.
During the course of his scheme, Rogers solicited contributions from the general public for his PACs based on materially false and fraudulent pretenses, representations and promises. For example, in or around 2013, Rogers, working with an email vendor, represented through CSF that money contributed by donors would be used to support the campaigns of a candidate for governor and a candidate for attorney general of Virginia through, among other things, get-out-the-vote efforts and the hiring of attorneys to ensure the integrity of the elections. In or around 2014, Rogers represented that donations to the PAC would be spent on assistance and support for military veterans. In truth and in fact, the defendant never intended to spend, and never actually spent, any of the money raised by Rogers’s PACs on get-out-the-vote efforts or lawyers to protect the integrity of the 2013 Virginia and Attorney General elections, or on assistance and support for military veterans. Instead, the defendant spent nearly all of the money raised from donors to benefit himself, his associates, and his PACs, including by pouring the majority of donor money into the solicitation of more donations.
In addition to the misrepresentations that Rogers made to donors, Rogers and others fraudulently billed his PACs for services that were not performed, thereby misappropriating donor money that had been contributed to the PACs by individuals across the country. Rogers and his associates also made false statements to the Federal Election Commission about how they were spending PAC money.
Finally, Rogers admitted that he and several others also participated in a scheme to use conduits (straw donors) to make contributions to a candidate running to represent a district in the United States House of Representatives that exceeded the limits placed on individual campaign contributions under federal law.
The FBI’s Washington Field Office is investigating the case. Trial Attorneys Bill Gullotta and John Taddei of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Kimberly Pedersen of the Eastern District of Virginia are prosecuting the case. Former PIN attorney Molly Gaston provided significant assistance in the case.
Pleasant Hill Resident Charged with Production and Possession of Child PornographyRead the Press Release
OAKLAND - A federal grand jury indicted Daniel Joseph Feliciano charging him with producing and possessing child pornography, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) San Francisco Special Agent in Charge Ryan L. Spradlin.
According to the indictment, Feliciano, 29, of Pleasant Hill, Calif., is alleged to have coerced a minor to engage in sexually explicit conduct in order to produce a visual depiction of the conduct. Feliciano is also alleged to have knowingly possessed child pornography.
According to a criminal complaint filed December 12, 2019, in connection with this case, this investigation began with a series of tips sent in October and December 2019 to the CyberTipline maintained by the National Center for Missing and Exploited Children (NCMEC). The tips, referred to as CyberTips by the NCMEC, contained reports from internet service providers to NCMEC as well as the actual files from the accounts being reported. Investigators from the Silicon Valley Internet Crimes Against Children Task Force traced the files, that included depictions of minors engaged in sexually explicit conduct, to an email account and an IP address in defendant’s name.
According to the complaint, the first CyberTip came from Dropbox in October 2019. It contained a report and approximately 182 files, including three videos of prepubescent girls engaged in sexually explicit conduct. Investigators discovered that the last IP address used to access the account could be traced to Feliciano.
In December 2019, several CyberTips alerted NCMEC regarding child pornography stored in a Google account. The files included two videos of a 9-10 year old child engaged in sexually explicit conduct. Investigators traced the Google account and the videos to Feliciano.
The indictment charges Feliciano with one count of production of child pornography, in violation of 18 U.S.C. § 2251(a), and one count of possession of child pornography, in violation of 18 U.S.C. § 2251(a)(4)(B) and (b)(2).
Feliciano is next scheduled to appear on February 18, 2020, at 1 p.m. before the Hon. Jeffrey S. White, U.S. District Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted on the production of child pornography charge, the defendant faces a maximum sentence of 30 years imprisonment, a minimum sentence of 15 years, five years to a life term supervised release, a fine of $250,000, a special assessment of $5,100, criminal forfeiture, and restitution. If convicted on the possession of child pornography charge, the defendant faces a maximum sentence of 20 years imprisonment, five years to a life term supervised release, a fine of $250,000, a special assessment of $5,100, criminal forfeiture, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Suspected child sexual exploitation may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678. Indeed, a NCMEC tip led to the investigation in this case.
Assistant U.S. Attorney Jonathan Lee is prosecuting the case with the assistance of Kay Konopaske and Kathleen Turner. The prosecution is the result of an investigation by the HSI, the Silicon Valley Internet Crimes Against Children Task Force, and the Pleasant Hill Police Department.
Operation Dodgeball Dismantle Gang that was Terrorizing WilmingtonRead the Press Release
WILMINGTON – United States Attorney Robert J. Higdon, Jr. announced that over the course of the last several months in federal court fourteen defendants have been sentenced in a large-scale heroin trafficking organization.
The investigation was part of an Organized Crime Enforcement Task Force (OCDETF) investigation entitled Operation Dodgeball, which was named in part because of the organizations ability to dodge lengthy prisons sentences and sustained ability to wreak havoc in Wilmington. An OCDETF investigation 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.
This case is a classic example of the combining of an OCDETF operation with our Take Back North Carolina Initiative. Wilmington Police Task Force Officers were able to identify members and associates of this violent drug gang and then partner with the FBI and the United States Attorney’s Office to develop a strategy to dismantle this organization. After being armed with this local intelligence, law enforcement was able to utilize the substantial resources and tools of the federal government to help break the back of this group which had been terrorizing Wilmington. The success of this case would not have been possible without these partnerships.
The defendants’ convictions and sentencings were the culmination of an investigation that started in early 2018 focusing on associates of the United Blood Nation who were trafficking heroin and the violence associated with this group in and around Wilmington, North Carolina. GARRY HINES occupied a significant leadership role in the organization.
As part of the investigation, federal and local law enforcement conducted multiple controlled purchases of heroin and a heroin/fentanyl mixture from organization members between April 2018 and August 2018. They also conducted surveillance and performed several traffic stops.
The FBI obtained authorization for a federal wiretap of a cellular phone associated with HINES in August 2018. As a result, agents intercepted calls concerning heroin/fentanyl distribution, firearms and gang violence. Based on the intercepted calls and other information law enforcement obtained a federal search warrant for a residence on North 5th Street that was used a stash house for heroin and firearms. HINES and ANTWINE LUCAS were arrested following the search.
Law enforcement continued to make controlled purchases from other members of the organization at various location in Wilmington and conducted additional traffic stops recovering more firearms and drugs up to and including December 2018.
Nineteen defendants have plead in federal court and fourteen have been sentenced. According to law enforcement, the organization was responsible for the importation and distribution of more than 5 kilograms of heroin and heroin/fentanyl mixture. A total of 11 firearms have been seized. Ballistic testing has determined that some of the firearms recovered during this Operation had previously been used in crimes of violence.
The defendants include:
- GARRY HINES, aka “Rachet,” 26, of Wilmington, NC. HINES pled guilty to three counts of distribution of a quantity of heroin. HINES was sentenced to 276 months’ imprisonment.
- ANTWINE LUCAS, aka “Big World,” 37, of Wilmington, NC. LUCAS pled guilty to conspiracy to possession with intent to distribute and distribute a quantity of heroin and distribution of a quantity of heroin. LUCAS was sentenced to 188 months’ imprisonment.
- ANTONIO FOSTER, 30, of Wilmington, NC. FOSTER pled guilty to distribution of heroin and possession with intent to distribute heroin. FOSTER was sentenced to 156 months’ imprisonment.
- SAVON HARDAWAY, 24, of Wilmington, NC. HARDAWAY pled guilty to three counts of distribution of a quantity of heroin and possession of a firearm by felon. HARDAWAY was sentenced to 151 months’ imprisonment.
- ANDRE HALL, 32, of Wilmington, NC. HALL pled guilty to possession with intent to distribute a quantity of heroin. HALL was sentenced to 151 months’ imprisonment.
- JOSHUA WRIGHT, 26, of Wilmington, NC. WRIGHT pled guilty to distribution of a quantity of heroin. WRIGHT was sentenced to 151 months’ imprisonment.
- JAQUARIES WASHINGTON, 20, of Wilmington NC. WASHINGTON pled guilty to possession with intent to distribute a quantity of heroin. WASHINGTON was sentenced to 132 months’ imprisonment.
- TAVEON NIXON, 21, of Wilmington, NC. NIXON pled guilty to three counts of distribution of a quantity of heroin and possession with intent to a quantity of heroin and crack cocaine. NIXON was sentenced to 120 months’ imprisonment.
- JACQUEZ HILL, 21 of Wilmington NC. HILL pled guilty to conspiracy to distribution of a quantity of heroin, distribution of heroin and possession with intent to distribute heroin. HILL was sentenced to 120 months imprisonment.
- MARCUS BERRY, 29, of Wilmington, NC. BERRY pled guilty to conspiracy to distribute and possess with the intent to distribute a quantity of heroin, distribution of a quantity of heroin and possession with the intent to distribute a quantity of heroin. BERRY was sentenced to 48 months’ imprisonment.
- RAQUEL ADAMS, 22, of Wilmington, NC. ADAMS pled guilty to possess with the intent to distribute a quantity of heroin. ADAMS was sentenced to 37 months’ imprisonment
- ALICIA JOHNSON, 22, of Wilmington, NC. JOHNSON pled guilty to distribution of a quantity of heroin. JOHNSON was sentenced to 72 months’ imprisonment
- KEVIN FREEMAN, aka “Glocky,” 24, of Wilmington, NC. FREEMAN pled guilty to conspiracy to distribute and possess with the intent to distribute a quantity of heroin and distribution of a quantity of heroin. FREEMAN was sentenced to 33 months’ imprisonment.
- BARRY PIERCE, 23, of Wilmington, NC. PIERCE pled guilty to possession of a firearm by a convicted felon. PIERCE was sentenced to 24 months’ imprisonment.
The remaining defendants are scheduled to be sentenced over the course of the next few months.
The Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Wilmington Department, New Hanover County Sheriff’s Office, and the North Carolina State Bureau of Investigation conducted the investigation of this case. Assistant United States Attorney Timothy Severo prosecuted this case on behalf of the government.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Oak Creek Man Arrested for Conspiracy to Violate Citizens’ Rights in Connection with Racine Synagogue VandalismRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced on January 17, 2020, that Yousef O. Barasneh (age: 22) of Oak Creek, Wisconsin, was charged by criminal complaint with conspiring to violate citizens’ rights to use property free from threats and intimidation, in violation of 18 U.S.C. § 241.
The complaint alleges that Barasneh is a member of “The Base,” a neo-Nazi, racially motivated extremist group, and that between September 15, 2019, and September 23, 2019, he conspired with other Base members to vandalize minority-owned property, including property used by Jewish citizens. As part of this conspiracy, Barasneh vandalized the Beth Israeli Sinai Congregation in Racine, Wisconsin, by spray-painting swastikas, the symbol for The Base, and anti-Semitic words on the exterior of the synagogue. If convicted of the charge, Barasneh faces up to ten years in prison and up to $250,000 in fines.
“The United States is committed to vigorous enforcement of civil rights statutes against individuals motivated by extremist ideologies,” stated United States Attorney Krueger.
FBI Special Agent in Charge Robert E. Hughes stated: “This demonstrates the FBI’s vigilance in investigating individuals who attempt to dismiss and violate others’ Constitutional rights. Through the great coordination and investigation of multiple national JTTFs, FBI Milwaukee was able to participate and affect our portion of the investigation”
This case was investigated by the Milwaukee Federal Bureau of Investigation and Joint Terrorism Task Force (JTTF). The case is being prosecuted by Assistant United States Attorney Benjamin Proctor.
A criminal complaint is only a charging document and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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North Carolina Man Charged for Bringing Weapons, Including Machine Gun, into Federal FacilityRead the Press Release
CAMDEN, N.J. – A North Carolina man was arrested today on charges that he brought a loaded handgun and machine gun into a federal facility, and illegally transported the machine gun into New Jersey, U.S. Attorney Craig Carpenito announced.
Dustin Peters, 25, a former Marine, was arrested in Cape May County, New Jersey, and is charged by complaint with one count of unlawful possession of a firearm in a federal facility and one count of unlawful interstate transport of a machine gun. Peters is scheduled to have an initial appearance on Jan. 21, 2020, before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to documents filed in this case:
On Jan. 9, 2020, Peters attempted to enter the U.S. Coast Guard Training Center Cape May. During a routine security search of his vehicle, Coast Guard personnel recovered a modified, fully automatic AK-47 rifle, a loaded 9mm Century Arms handgun, multiple large capacity magazines, ammunition, a ballistic vest, gas mask and canister, three boxes of ammunition, a nylon chest rig, and other items. Peters told law enforcement agents that he purchased the AK-47 in Virginia, but modified it on his own to become fully automatic.
The counts of possession of a firearm on a federal facility carries a maximum penalty of one year in prison and a $100,000 fine. The unlawful interstate transport of a machine gun carries a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, Atlantic City Resident Agency’s Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; members of the U.S. Coast Guard Investigative Service, under the direction of Resident Agent in Charge Rodney E. Newcomer; the Cape May Police Department under the direction of Chief Anthony G. Marino Jr.; and the Cape May County Prosecutor’s Office, under the direction of Prosecutor Jeffrey H. Sutherland, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Alisa Shver of the U.S. Attorney’s Office Criminal Division in Camden.
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. For more information about Project Guardian, please see http://www.justice.gov/projectguardian
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New York DEA Diversion Investigator Charged with Attempting to Produce Child Pornography and Enticing A Minor to Have SexRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), Keith A. Bonanno, Special Agent in Charge of the Department of Justice Office of the Inspector General (“DOJ OIG”) Cyber Investigations Office, and Guido Modano, Special Agent in Charge of the DOJ OIG New York Field Office, announced today the arrest and filing of charges against FREDERICK L. SCHEININ. The Complaint charges that between October 2019 and January 2020, SCHEININ attempted to produce child pornography and entice a minor to have sex. SCHEININ was arrested yesterday and will be presented later today before U.S. Magistrate Judge Katharine H. Parker in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “As a diversion investigator at the DEA, Frederick Scheinin’s foremost responsibility was to protect the public from illegally diverted drugs. Instead of fulfilling this worthy mission, Scheinin allegedly spent months attempting to prey on a 14-year-old boy. This arrest exemplifies that no one is above the law. Our law enforcement partners will continue to bring all necessary tools to bear to apprehend individuals who wish to do harm to young children, no matter who they are.”
NYPD Commissioner Dermot Shea said: “I want to commend the U.S. Attorney and our federal partners who, together with our NYPD investigators, work every day to protect the innocent against such alleged reprehensible predators. I am proud of the undercover work in this case, which has now led to criminal charges against a law enforcement officer who allegedly betrayed his sacred oath.”
DOJ OIG Cyber Investigations Office Special Agent in Charge Keith A. Bonanno said: “The OIG and our law enforcement partners will thoroughly investigate allegations of abuse or exploitation of children by DOJ employees. Those who are found guilty of this type of criminal behavior will be brought to justice.”
Up until the time of his arrest, SCHEININ was a diversion investigator in the New York Field Office of the Drug Enforcement Administration (“DEA”). According to the allegations in the Complaint filed in Manhattan federal court today[1]:
Between October 2019 and January 2020, SCHEININ used a multimedia messaging application on his cellphone to communicate with an undercover law enforcement officer (“UC‑1”) who was posing as a 14-year-old boy. SCHEININ repeatedly sent sexually explicit images and videos to UC-1 in an attempt to persuade UC-1 to transmit sexually explicit images, photos, and live visual depictions of UC-1 to SCHEININ. In particular, SCHEININ repeatedly asked UC-1 to transmit images and videos of UC-1’s penis. The Complaint further alleges that SCHEININ attempted to arrange a meeting with UC-1 at which SCHEININ planned to have sex with UC-1. Law enforcement arrested SCHEININ yesterday in New York, New York, at a location where SCHEININ said he would meet UC-1. SCHEININ was in possession of condoms and lubricant at the time of his arrest.
SCHEININ, 29, of Sunnyside, New York, is charged with one count of attempted production of child pornography, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison, and one count of attempted enticement of a minor, which carries a mandatory minimum sentence of 10 years in prison and maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The charges in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
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Mr. Berman praised the outstanding investigative work of the NYPD and the DOJ OIG New York Field Office and Cyber Investigations Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Nicholas Chiuchiolo is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Nashville Man Sentenced to 45 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
NASHVILLE, Tenn. – January 17, 2020 – Cecil Clint Woodard, 42, of Nashville, Tennessee, was sentenced yesterday by U.S. District Court Judge Eli J. Richardson to 45 years in federal prison for child pornography offenses, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Woodard was charged in a 22-count indictment in August 2017 and pleaded guilty in January 2019 to 14 counts of production of child pornography; 6 counts of transportation of child pornography and 1 count of possession of child pornography.
According to court documents, during April through June 2016, Woodard subjected a 3-year-old child to multiple acts of sexual abuse, including rape. While committing these acts, at his Nashville home on 14 separate occasions, Woodard recorded over 300 sexually explicit images and produced more than 20 videos of this child and distributed it on the internet on numerous occasions.
Woodward was arrested on June 11, 2016, by officers with the Metropolitan Nashville Police Department and was in possession of other images and videos that he collected from the Internet that depicted other minors engaged in sexually explicit conduct. Court records also illustrate that Woodard had previously sexually molested another child while she was between nine and 12 years of age and on other occasions he pretended to be a 15-16 year-old male while online, in an attempt to secure more sexually explicit images of children.
This case was investigated by the Metropolitan Nashville Police Department and the FBI. Assistant U.S. Attorney S. Carran Daughtrey prosecuted the case.
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Muscatine Woman Sentenced to 18 Months in Prison for FraudRead the Press Release
DAVENPORT, Iowa – On January 16, 2020, United States Chief District Judge John A. Jarvey sentenced Ashley Erin Murphy Schneider, age 37, of Muscatine, Iowa, to 18 months in prison for wire and mail fraud, announced United States Attorney Marc Krickbaum. Schneider was ordered to serve a term of three years of supervised release following her imprisonment, pay a $700 special assessment to the Crime Victims’ Fund, and pay $197,603.45 in restitution to American Family Life Assurance Company of Columbus (AFLAC).
On September 17, 2019, Schneider pleaded guilty to five counts of wire fraud and two counts of mail fraud. Schneider became a licensed insurance producer in the state of Iowa in 2010 and in 2012 became an insurance agent appointed with AFLAC. On September 24, 2015, investigators completed an AFLAC internal investigative report. According to the report, Schneider allowed unqualified businesses to receive payroll rates (businesses that did not have the required number of employees) and established fraudulent insurance policies for businesses that did not exist. AFLAC suffered a loss of $5,170.12 in advanced commissions and $650 in claims filed as a result of Schneider’s actions. Schneider was terminated for creation of the fraudulent insurance group policies effective November 30, 2015.
Further investigation revealed that prior to Schneider’s termination, she set up a supplemental cancer policy through AFLAC for a minor child. AFLAC’s claim and explanation of benefits reflected the child was diagnosed with malignant neoplasm of the right lung on November 24, 2015. Between November 25, 2015, and January 9, 2017, 180 unique benefit claims were made on 54 claim numbers by Schneider. The investigation revealed that the minor child did not have cancer and AFLAC had paid out $192,408.33 to Schneider based on the fraudulent claims she submitted.
This matter was investigated by United States Postal Inspection Service and the Iowa Insurance Fraud Bureau. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Mt. Sterling Man Sentenced to 360 Months for Production of Child PornographyRead the Press Release
LEXINGTON, Ky. – A Mt. Sterling, Kentucky, man, James E. Woosley, 49, who previously admitted to coercing a minor to engage in sexually explicit conduct for the purpose of producing child pornography, was sentenced Friday to 360 months in prison by Chief U.S. District Court Judge Danny C. Reeves.
Woosley previously admitted that, in May 2018, he produced images of child pornography, and he admitted that he used KIK and Drop Box to receive and distribute child pornography images, including some images that he produced of a minor relative. According to his plea agreement, Woosley used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct, and he knew or had reason to know that the visual depiction would be transmitted using any means or facility of interstate commerce.
Woosley pleaded guilty in May 2019.
Under federal law, Woosley must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 15 years after his release from prison.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security-Homeland Security Investigations Nashville; and Rodney Brewer, Commissioner, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by HSI and the Kentucky State Police Electronic Crimes Branch. The United States was represented by Assistant U.S. Attorney David A. Marye.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Meridian Man Sentenced to More Than Five Years in Prison for Distributing MethamphetamineRead the Press Release
BOISE - Alexandr Stricharskiy, 40, of Meridian, was sentenced in U.S. District Court to 63 months in prison for distributing fifty grams or more of pure methamphetamine, U.S. Attorney Bart M. Davis announced today. Senior U.S. District Judge Edward J. Lodge also ordered Stricharskiy to pay a $2,500 fine and serve five years of supervised release following his prison sentence. Stricharskiy pleaded guilty to the charge on April 18, 2019.
According to court records, Stricharskiy sold methamphetamine to an undercover law enforcement officer on three occasions. Also as part of his crimes, Stricharskiy agreed to make a hidden compartment in a vehicle so others could secretly transport drugs. Stricharskiy was the owner and operator of an auto body shop located at 2701 West Idaho Street, Boise, Idaho. As part of his plea agreement, he agreed that this property facilitated his drug trafficking and was subject to forfeiture. The sale of the property netted $100,000 to be forfeited to the United States as equivalent to unrecovered drug proceeds.
This case was investigated by Federal Bureau of Investigation and Boise Police Department.
This indictment is the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
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Maryland Man Sentenced to Prison for Fraudulent Scheme to Solicit Hundreds of Thousands of Dollars in Contributions to Scam-PacsRead the Press Release
A Maryland political consultant was sentenced to three years in prison today followed by three years of supervised release for fraudulently soliciting hundreds of thousands of dollars in political contributions through several scam political action committees (PACs) that he founded and advertised as supporting candidates for office and other political causes.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Kelley Rogers, 56, of Annapolis, Maryland, previously pleaded guilty to one count of wire fraud before U.S. District Judge Liam O’Grady of the Eastern District of Virginia. In addition to the prison sentence, Rogers was ordered to pay $491,299 in restitution and to forfeit at least $208,954 in proceeds obtained from his offense.
According to admissions Rogers made in connection with his guilty plea, from August 2012 through 2018, in the Eastern District of Virginia and elsewhere, the defendant operated multiple PACs, including Conservative StrikeForce (CSF), Conservative Majority Fund and Tea Party Majority Fund. In that role, the defendant engaged vendors to send e-mail solicitations and make telemarketing phone calls to prospective donors seeking political contributions to his PACs. Rogers approved the text and other content of all solicitations, and determined how CSF spent the contributions individual donors gave in response to the solicitations.
During the course of his scheme, Rogers solicited contributions from the general public for his PACs based on materially false and fraudulent pretenses, representations and promises. For example, in or around 2013, Rogers, working with an email vendor, represented through CSF that money contributed by donors would be used to support the campaigns of a candidate for governor and a candidate for attorney general of Virginia through, among other things, get-out-the-vote efforts and the hiring of attorneys to ensure the integrity of the elections. In or around 2014, Rogers represented that donations to the PAC would be spent on assistance and support for military veterans. In truth and in fact, the defendant never intended to spend, and never actually spent, any of the money raised by Rogers’s PACs on get-out-the-vote efforts or lawyers to protect the integrity of the 2013 Virginia and Attorney General elections, or on assistance and support for military veterans. Instead, the defendant spent nearly all of the money raised from donors to benefit himself, his associates, and his PACs, including by pouring the majority of donor money into the solicitation of more donations.
In addition to the misrepresentations that Rogers made to donors, Rogers and others fraudulently billed his PACs for services that were not performed, thereby misappropriating donor money that had been contributed to the PACs by individuals across the country. Rogers and his associates also made false statements to the Federal Election Commission about how they were spending PAC money.
Finally, Rogers admitted that he and several others also participated in a scheme to use conduits (straw donors) to make contributions to a candidate running to represent a district in the United States House of Representatives that exceeded the limits placed on individual campaign contributions under federal law.
The FBI’s Washington Field Office is investigating the case. Trial Attorneys Bill Gullotta and John Taddei of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Kimberly Pedersen of the Eastern District of Virginia are prosecuting the case. Former PIN attorney Molly Gaston provided significant assistance in the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Maryland Man Sentenced to 36-Month Prison Term for Fatal Crash in Northwest WashingtonRead the Press Release
WASHINGTON – Tyler S. Hurley, 22, of Port Republic, Maryland, was sentenced yesterday to a prison term of 36 months (3 years) for Voluntary Manslaughter, stemming from a traffic collision where he ran a red light and collided with another vehicle, killing the driver, announced U.S. Attorney Jessie K. Liu and Gregory Monahan, Acting Chief of the United States Park Police (USPP).
Hurley pled guilty to Voluntary Manslaughter on August 12, 2019, in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for an agreed upon sentence totaling 36 months. The Honorable Craig Iscoe accepted the plea and sentenced the defendant accordingly. Following his prison term, Hurley will be placed on 5 five years of supervised release.
The fatal traffic collision occurred on Sunday, December 23, 2018, at approximately 12:27 a.m., at the intersection of Constitution Avenue and 19th Street, NW, in Washington, DC. The investigation by U.S. Park Police found that Hurley, who had come to Washington with a group of family and friends, was returning to Southern Maryland, when he was driving a 2014 Honda Civic southbound on 19th Street approaching the intersection with Constitution Avenue, where 19th Street dead ends. Hurley ran the red light at the intersection with Constitution Avenue, and struck an eastbound 2012 Honda Accord being driven by Kunal Talwar. Mr. Talwar’s Accord was crushed between Hurley’s striking Civic and a tree. Mr. Talwar later died from his injuries at George Washington University Hospital.
When officers arrived, a companion of Hurley falsely claimed to be the driver of the striking vehicle. Later, when told that the crash resulted in the death of Mr. Talwar, that person recanted and told officers that Hurley was the driver. Hurley was taken to MedStar Washington Hospital Center, along with other occupants of his Civic, for injuries. Hurley was asked about the crash and admitted to being the driver of the striking Civic. Hurley displayed some signs of impairment, but officers were unable to determine if he was intoxicated. Approximately 4 hours after the crash, Hurley’s blood was drawn and his blood alcohol concentration was 0.04 g/ml, which is less than the 0.08 g/ml concentration that is definitive evidence of driving under the influence in the District of Columbia. A download of the black box of Hurley’s Civic later showed that he was driving at 73 miles per hour in the 25-mile-per-hour zone, when he ran the red light and struck Mr. Talwar’s Accord. Hurley was later arrested and charged with causing Mr. Talwar’s death.
In announcing the sentence, U.S. Attorney Liu and Acting Chief Monahan commended the work of the officers and detectives who investigated the case from the United States Park Police, as well as officers and detectives from the Metropolitan Police Department’s Major Crash Investigations Unit. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Investigative Analyst Zachary McMenamin, Paralegal Specialist Stephanie Siegerist, and Victim/Witness Advocate Jennifer Clark.
Finally, they commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the case.
Manteca Resident Indicted for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment Thursday against Mario Gonzalez, 37, of Manteca, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Dec. 16, 2019, the Manteca Police Department found Gonzalez to be in possession of a loaded .45-caliber Ruger New Vaquero revolver. Gonzalez has six prior felony convictions, three of which are related to domestic violence.
This case is the product of an investigation by the Manteca Police Department, the San Joaquin District Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael W. Redding is prosecuting the case.
If convicted, Gonzalez faces a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov.
Manchester Felon Sentenced to Five Years in Prison for Possessing Methamphetamine near Central ParkRead the Press Release
A woman who illegally possessed ice methamphetamine with the intent to distribute near a park was sentenced to five years in federal prison.
Robin Kinney, age 59, from Manchester, Iowa received the prison term after a September 25, 2019 guilty plea to possession with intent to distribute a controlled substance near a protected location. Kinney was found near Central Park in Manchester, Iowa, with a purse containing over 18 grams of pure methamphetamine, a glass pipe, spoon, syringes and plastic baggies. Her cell phone reflected incoming and outgoing text messages related to the purchase, sale and distribution of methamphetamine. She had previously been convicted of multiple narcotics related offenses.
Kinney was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Kinney was sentenced to 60 months’ imprisonment. She must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system.
Kinney is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Elizabeth Dupuich and was investigated by the Manchester Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-2050-LTS.
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Man Involved in 2009 Kidnapping and Murder Sentenced to Life in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HAROLD COOK, also known as “Oink,” 42, of Bloomfield, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to life in prison for his role in the kidnapping, robbery and the execution-style murder of Charles Teasley, 35, of West Hartford, in January 2009.
According to evidence presented during trial, on January 12, 2009, Hartford Police responded to Colebrook Street in response to a 911 call concerning a dead body being found in the back seat of a vehicle parked on the street. Upon arrival, Charles Teasley was found dead in the back seat of his own vehicle, a 1999 Acura TL. He had suffered multiple gunshot wounds to his head and face, and his hands were zip-tied behind his back.
The investigation revealed that Cook, Gerund Mickens, Terrell Hunter and Jesus Ashanti were involved in committing armed robberies of persons they believed to be drug dealers operating in the greater Hartford area. On January 9, 2009, an individual advised Cook that he had arranged to conduct a cocaine transaction with Teasley. The individual provided the particulars of the planned transaction to Cook so that Teasley could be kidnapped and robbed of drugs and money. After Teasley arrived at the arranged location, Cook, Mickens, Hunter and Ashanti kidnapped Teasley by using zip-ties to bind his hands and forcing him back into the rear seat of his own vehicle. In the vehicle, they threatened Teasley at gunpoint, assaulted him and forced him to make a telephone call directing his girlfriend to bring to Cook, Mickens, Hunter and Ashanti a safe that Teasley had kept at his and his girlfriend’s West Hartford residence. They drove to the residence and acquired the safe. Cook, Mickens and Hunter then drove Teasley to the Colebrook Street area of Hartford, and Ashanti followed them in a separate car. On the way, Cook and Hunter shot Teasley in the head causing his death. After arriving on Colebrook Street, Cook, Mickens and Hunter left the Acura and Teasley’s body, and then fled the area in the car driven by Ashanti.
Cook, Mickens and Hunter have been detained since their arrests on April 4, 2017. On August 21, 2018, a jury found them guilty of one count of kidnapping resulting in death, one count of using a firearm during a kidnapping and causing a death, and one count of using a firearm during a Hobbs Act robbery and causing a death.
On January 13, 2020, Judge Underhill sentenced Mickens to life in prison. Hunter awaits sentencing and also faces a mandatory term of life imprisonment.
Ashanti pleaded guilty to related charges on July 16, 2018, and also awaits sentencing.
This investigation has been conducted by the FBI’s Northern Connecticut Violent Crimes Gang Task Force, Hartford Police Department and the Cold Case Homicide Unit of the Office of the Chief State’s Attorney. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by U.S. Attorney Durham, Assistant U.S. Attorneys Jocelyn C. Kaoutzanis and Peter D. Markle, and Assistant State’s Attorney Andrew Reed Durham, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Longview Ambulance Operator Sentenced for Health Care FraudRead the Press Release
TYLER, Texas – A 57-year-old Longview, Texas man has been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Joseph Valdie Kimble pleaded guilty on Sep. 11, 2019, to health care fraud and was sentenced to 30 months in federal prison today by U.S. District Judge Jeremy D. Kernodle. Kimble was also ordered to pay restitution in the amount of $751,986.30 to Medicare and Medicaid and was ordered not to seek or retain employment in the health care fraud industry while serving three years of supervised release.
According to information presented in court, Kimble operated Tiger EMS, a business providing non-emergency ambulance transport, mostly between skilled nursing centers and hospitals and dialysis centers. Ambulance providers may bill for ambulance services only if there is a demonstrated medical need, which requires that either a beneficiary be bed-confined and it is documented that other methods of transportation are contraindicated; or the beneficiary's medical condition is such that transportation by ambulance is medically required. Kimble disregarded medical necessity requirements and billed Medicare and Medicaid for ambulance services provided to patients for whom ambulance transport was not medically necessary.
This case was investigated by U.S. Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit and prosecuted by Assistant U.S. Attorneys Alan R. Jackson and Frank Coan.
Long Island Man Sentenced to 10 Years in Prison for Conspiring to Distribute Crack Cocaine in Riverhead AreaRead the Press Release
Earlier today, in federal court in Central Islip, Tramaine Brown was sentenced by United States District Judge Joanna Seybert to 10 years’ imprisonment for conspiring to distribute and possess with intent to distribute crack cocaine and powder cocaine. Brown pleaded guilty in June 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
“The Riverhead area is safer with Tramaine Brown sent to prison for running an armed and dangerous drug trafficking operation that endangered residents, including Brown’s own family members,” stated United States Attorney Donoghue. “We will continue to work tirelessly with our federal and local law enforcement partners to take drugs and drug traffickers off our streets.” Mr. Donoghue also extended his grateful thanks to the Suffolk County East End Drug Task Force, which partnered with the FBI in the investigation.
In January 2018, the FBI and the Suffolk County East End Drug Task Force began an investigation into narcotics trafficking and gang activity on the East End of Long Island, including the Riverhead area. As part of that investigation, agents and officers purchased more than 300 grams of crack cocaine from Brown at his home in Jamesport, where he resided with his wife and his children. During one purchase, Brown was captured on video “cooking” powder cocaine into crack in his kitchen, while a child was present. A backpack containing fentanyl, an extremely dangerous opioid, was in close proximity to the child. On November 14, 2018, a search warrant was executed at Brown’s residence, and large quantities of narcotics, cash and a .223 caliber assault rifle, a .308 caliber rifle and a .45 caliber pistol were seized. In total, during the investigation of Brown’s drug trafficking operation, law enforcement recovered quantities of crack cocaine, powder cocaine, fentanyl, marijuana, narcotics packaging materials, a kilogram press, eight cellular telephones and over $10,000 in cash.
This case was investigated as part of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Michael Maffei and Nicole Boeckmann are in charge of the prosecution.
The Defendant:
TRAMAINE BROWN
Age: 30
Jamesport, New YorkE.D.N.Y. Docket No. 18-CR-604 (JS)
Justice Department Settles Sexual Harassment Lawsuit Against Owners and Manager of Wichita Rental PropertiersRead the Press Release
WASHINGTON – The Department of Justice announced today that Thong Cao and his wife, Mai Cao, will be obligated to pay $160,000 in damages and civil penalties to resolve a Fair Housing Act lawsuit alleging that Thong Cao sexually harassed numerous female tenants since at least 2009 at residential properties he owned or operated in Wichita, Kansas. Mai Cao is named as a defendant in this lawsuit because she owned or co-owned certain rental properties at which harassment took place.
Under the consent order in United States of America v. Thong Cao, et al., which was entered today by the U.S. District Court for the District of Kansas, defendants are required to pay a total of $160,000, which includes $155,000 in monetary damages to eleven former tenants who were harmed as a result of the sexual harassment, and a $5,000 civil penalty. The consent order also bars the defendants from participating in the rental or management of residential properties in the future.
“Sexual harassment of women in their homes is indecent, destructive, and illegal,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Fair Housing Act protects the right of women and their families to live in peace and security and without the fear that deviant people will intimidate and bully them for sexual favors. This department will continue tirelessly to pursue landlords and others who abuse their authority by preying upon vulnerable women.”
“Access to fair housing is every person’s right,” said U.S. Attorney Stephen R. McAllister for the District of Kansas. “Landlords, property managers and their employees are legally prohibited from making sexual favors a condition of obtaining or maintaining a place to live.”
The department’s lawsuit, filed in 2017, arose from two complaints that former tenants filed with the U.S. Department of Housing and Urban Development (HUD). The lawsuit alleged that Thong Cao sexually harassed multiple female residents at the rental properties from at least 2009 to 2014. According to the complaint, Thong Cao engaged in harassment that included, among other things, making unwelcome sexual advances and comments, engaging in unwanted sexual touching, and terminating the tenancies of women who refused to engage in sexual conduct with him.
In October 2017, the Justice Department launched a new initiative to combat sexual harassment in housing. In April 2018, the Department of Justice announced the nationwide rollout, including three major components: an outreach toolkit to leverage the department’s nationwide network of U.S. Attorney’s Offices, a public awareness campaign, including the launch of a national Public Service Announcement, and a new joint Task Force with HUD to combat sexual harassment in housing.
Since launching the initiative, the Department of Justice has filed 13 new lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 18 sexual harassment cases since January 2017, and has recovered over $2.7 million for victims of sexual harassment in housing.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp/online-complaint.
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.
Justice Department Settles Sexual Harassment Lawsuit Against Owners and Manager of Kansas Rental PropertiesRead the Press Release
The Department of Justice announced today that Thong Cao and his wife, Mai Cao, will be obligated to pay $160,000 in damages and civil penalties to resolve a Fair Housing Act lawsuit alleging that Thong Cao sexually harassed numerous female tenants since at least 2009 at residential properties he owned or operated in Wichita, Kansas. Mai Cao is named as a defendant in this lawsuit because she owned or co-owned certain rental properties at which harassment took place.
Under the consent order in United States of America v. Thong Cao, et al., which was entered today by the U.S. District Court for the District of Kansas, defendants are required to pay a total of $160,000, which includes $155,000 in monetary damages to eleven former tenants who were harmed as a result of the sexual harassment, and a $5,000 civil penalty. The consent order also bars the defendants from participating in the rental or management of residential properties in the future.
“Sexual harassment of women in their homes is indecent, destructive, and illegal,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Fair Housing Act protects the right of women and their families to live in peace and security and without the fear that deviant people will intimidate and bully them for sexual favors. This department will continue tirelessly to pursue landlords and others who abuse their authority by preying upon vulnerable women.”
“Access to fair housing is every person’s right,” said U.S. Attorney Stephen R. McAllister for the District of Kansas. “Landlords, property managers and their employees are legally prohibited from making sexual favors a condition of obtaining or maintaining a place to live.”
The department’s lawsuit, filed in 2017, arose from two complaints that former tenants filed with the U.S. Department of Housing and Urban Development (HUD). The lawsuit alleged that Thong Cao sexually harassed multiple female residents at the rental properties from at least 2009 to 2014. According to the complaint, Thong Cao engaged in harassment that included, among other things, making unwelcome sexual advances and comments, engaging in unwanted sexual touching, and terminating the tenancies of women who refused to engage in sexual conduct with him.
In October 2017, the Justice Department launched a new initiative to combat sexual harassment in housing. In April 2018, the Department of Justice announced the nationwide rollout, including three major components: an outreach toolkit to leverage the department’s nationwide network of U.S. Attorney’s Offices, a public awareness campaign, including the launch of a national Public Service Announcement, and a new joint Task Force with HUD to combat sexual harassment in housing.
Since launching the initiative, the Department of Justice has filed 13 new lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 18 sexual harassment cases since January 2017, and has recovered over $2.7 million for victims of sexual harassment in housing.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp/online-complaint.
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.
Jury convicts ex-employee of transporting stolen property and money laundering after $390,000 disappeared from armored truckRead the Press Release
HELENA – A jury on Thursday convicted a Helena man who worked for GardaWorld of multiple crimes after he was accused of taking money stolen from an armored truck and spending it gambling and shopping in Las Vegas, day trading and traveling to France, U.S. Attorney Kurt Alme said.
The jury found John Gregory Alexander Herrin, 30, of Helena, guilty of one count of interstate transportation of stolen property and eight counts of money laundering. The jury acquitted Herrin on four counts of money laundering and attempted witness tampering.
Herrin faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the interstate transportation of stolen property and money laundering crimes.
The trial began on Monday, with U.S. District Judge Sam Haddon presiding. Judge Haddon set sentencing for May 19 and ordered Herrin detained.
“Those who transport or spend stolen money or money from illegal activities will be caught and convicted in federal court. Greed doesn’t pay. I want to thank Assistant U.S. Attorneys Tim Racicot and Michael Kakuk, the FBI and the Secret Service for their work investigating and prosecuting this case,” U.S. Attorney Alme said.
In evidence presented at trial, the prosecution said that on Nov. 20, 2013, three bags containing $390,000 went missing from a GardaWorld truck. Helena employees initially loaded the money into a truck and drove to Missoula, where they met Missoula employees and transferred some currency bags to another truck for local delivery. While in Missoula, the Helena employees left their truck locked, but unattended, several times while servicing banks and ATMs before continuing to Kalispell. After arriving in Kalispell, employees discovered three bags containing $390,000 were missing.
Herrin worked for Garda from 2012 until 2014. An internal investigation by Garda was unable to definitively implicate anyone in the theft.
Not long after the theft, the prosecution said, Herrin’s financial situation drastically changed.
Herrin went to Las Vegas twice in January 2014 and again in July 2014. While in Las Vegas, Herrin stayed at a high-end casino, gambled and went shopping with a female companion. He made large cash deposits at the casino and bought a watch for $22,600 with cash. On return from his first trip, Herrin deposited a casino cashier’s check for $123,500 and $37,350 cash, for a total of $160,870, into his checking account. Prior to the deposit, Herrin’s account had a $945.65 balance. Herrin told the bank teller he went to Las Vegas with $500 and won $160,000 gambling. While the teller was counting the cash, a Garda courier came into the bank to make a pick up. Herrin walked away from the counter and sat at an online banking station until the courier left. He then returned to the counter to complete his transaction.
On his second trip to Las Vegas, Herrin’s buy in at the casino was $50,100 cash and he lost $50,000. He also used his Visa credit card to buy more than $30,000 in merchandize from luxury retail stores and transferred money from his checking account to pay down the card balance.
After the second Las Vegas trip, Herrin went to his bank with a shoe box full of $20 bills for deposit into his checking account. The day before the deposit, the account balance was $3,550. Herrin told the teller he wasn’t sure how much money was in the box but that he had “another big score” in Vegas. He thought he had about $120,000.
Herrin also told the teller he didn’t have a job but was doing some day trading. During the transaction, another Garda courier entered the bank. Herrin had already turned his back on the courier, seemingly in an effort not to be seen by the Garda employee.
In addition to the Las Vegas trips, Herrin started day trading in 2014. He opened an account with Ameritrade, deposited $111,100 and had significant losses. His losses were inconsistent with statements he made to bank employees that he was making money day trading.
In March 2014, Herrin traveled to France with a female companion and charged the trip to his Visa card. The trip cost more than $20,000.
In the spring of 2014, Herrin moved to Springfield, MO, and used his Visa card to enroll in college and for living expenses.
By the fall, Herrin’s financial situation turned dire. In January 2015, he owed $17,753 on his Visa card, and in February 2015, Ford Motor Credit repossessed his car, which he had purchased about one month before the Garda theft.
In interviews with law enforcement, all of the Garda employees denied knowledge about and involvement in the disappearance of the $390,000. A former employee, who was also a roommate of Herrin’s, indicated that Herrin had showed him a casino check for gambling proceeds purportedly won in January 2014. He also indicated Garda employees left trucks unattended from time to time against company policy and that a broom handle could be used to unlock the trucks. The former employee also told law enforcement he had seen Herrin unlock a truck using a broom handle.
Herrin’s former female companion told law enforcement she responded to his Craigslist ad seeking company for a trip to Las Vegas. Herrin gave her money, took her shopping and bought her a $5,000 Louis Vuitton bag and more than $2,000 in dresses. After the France trip, the pair had a falling out.
Assistant U.S. Attorneys Tim Racicot and Michael Kakuk prosecuted the case, which was investigated by the FBI and Secret Service.
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Jury Convicts Campbellsville Man on Child Porn ChargesRead the Press Release
BOWLING GREEN, Ky. – A Campbellsville, Kentucky, man, has been found guilty at trial for attempted receipt of child pornography and accessing the internet with intent to view child pornography, announced United States Attorney Russell Coleman. The jury convicted James S. Wolfe after deliberating for less than 30 minutes.
“Prey on our kids in the Western District of Kentucky and expect swift and aggressive federal prosecution,” said U.S. Attorney Russell Coleman. “This outcome is due to the fine work of the United States Probation Office, U.S. Secret Service, and a dedicated prosecutor.”
On July 2, 2019, a federal grand jury returned a two-count Superseding Indictment charging Wolfe with attempted receipt of child pornography and accessing with the intent to view child pornography. At the time of the charges, Wolfe was serving a 10-year term of Supervised Release imposed in Criminal Action Number 1:10CR-002 from the United States District Court for the Northern District of West Virginia. In that case, Wolfe pled guilty to one count of possessing child pornography.
On November 29, 2017, Wolfe was released from the Bureau of Prisons and his 10-year term of Supervised Release commenced. The United States Probation Office in the Western District of Kentucky agreed to accept Wolfe for supervision after changes were made to the conditions of the supervision. Wolfe moved to Campbellsville, Kentucky, where he lived with his mother and older brother. He requested permission to have access to a computer. The United States Probation Officer assigned to Wolfe’s supervision agreed to the request, but Wolfe was supposed to use the computer with internet access to seek employment and conduct routine business. And, the computer had to have monitoring software loaded on it to keep track of Wolfe’s activities. The supervising Probation Officer met with Wolfe and explained the monitoring process to him and his mother. Monitoring began on April 24, 2018.
Less than a week later, the monitoring company, RemoteCom, contacted the Probation Officer concerning Wolfe’s search activities. On May 7, 2018, the supervising Probation Officer received notification that Wolfe’s computer was not reporting back to RemoteCom’s servers. Two days after the reinstallation of the monitoring software, RemoteCom again notified the Probation Officer of concerning activity on Wolfe’s computer. The search terms clearly referred to children and sexual activity. On May 25, 2018, the supervising Probation Officer conducted an unscheduled home visit. The Probation Officer made contact with Wolfe and his mother. When confronted by the Probation Officer concerning the online activity, Wolfe stated that he didn’t think anything he had searched or viewed constituted pornography. The Probation Officer seized the computer, an unauthorized cellular telephone and numerous pages of handwritten notes (containing, among other things, lists of web sites).
A forensic examination of the computer conducted by the United States Secret Service revealed search terms indicative of child sexual exploitation as well as shadow copies of images depicting the sexual exploitation of children. The Secret Service agent prepared a report and provided it to the United States Probation Office. The United States Probation Officer submitted the information to the Court to revoke Wolfe’s Supervised Release. United States District Judge Joseph H. McKinley, Jr., revoked Wolfe’s Supervised Release. Wolfe’s conduct also led to the filing of the charges for which he was tried earlier this week in Bowling Green, Kentucky, before Chief United States District Judge Greg N. Stivers.
The defendant faces a mandatory-minimum sentence of 15 years imprisonment. There is no parole in the federal system. Wolfe is scheduled to appear before Chief Judge Stivers for sentencing on April 23, 2020, at 10:00 a.m., CDT, in Bowling Green, Kentucky. Wolfe remains in the custody of the United States Marshals Service.
The case is being prosecuted by Assistant United States Attorney Jo Lawless. The case was investigated by the United States Probation Office and the United States Secret Service.
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Jacksonville Woman Arrested for Submitting False Claim for FEMA Benefits Related to Hurricane IrmaRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Bernita Willette Carswell (36, Jacksonville) with disaster assistance fraud related to Hurricane Irma. If convicted, Carswell faces a maximum penalty of 30 years in federal prison, plus payment of restitution to the United States. Carswell made her initial appearance in federal court on January 15, 2020. Her arraignment is set for January 22, 2020.
According to the indictment, in September 2017, when submitting an application for assistance to the Federal Emergency Management Agency’s (FEMA) Individuals and Households Program for Hurricane Irma, Carswell falsified records concerning damage to her primary residence and the need to move to a rental property in Jacksonville.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General with assistance from Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] . You may also visit www.justice.gov/usao-mdfl.
Jacksonville Man Pleads Guilty to Firearms Theft ConspiracyRead the Press Release
Jacksonville, Florida – Jamarius Tillie (28, Jacksonville) today pleaded guilty to aiding and abetting the theft of firearms from federally licensed firearms dealers and conspiring to steal firearms from such dealers. He faces a maximum penalty of 10 years in federal prison for the theft charge and up to 5 years in federal prison for the conspiracy charge. A sentencing date has not yet been set.
According to the plea agreement, members of Tillie’s theft ring stole more than 10 firearms from at least 4 licensed firearms dealers in Jacksonville. While Tillie and others distracted the sales staff in these stores, another member of the ring would sneak behind the counters and steal firearms. Tillie kept some guns for himself, but sold the majority of them to a local drug dealer. For assisting Tillie, members of the theft ring were sometimes paid with crack cocaine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 13 was:
Tyler James Fleming, 37, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Fleming faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Fleming was detained pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. Pacer case reference. 20-03.
Kimberly Rosamond Fanslau, 39, of Charlotte, MI, on charges of conspiracy to possess with intent to distribute meth and heroin and possession with intent to distribute meth and heroin. If convicted of the most serious crime, Fanslau faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Fanslau was detained pending further proceedings. The Drug Enforcement Administration investigated the case. Pacer case reference. 19-121.
Anthony Shoulderblade, 32, of Lame Deer, on charges of assault with a dangerous weapon and use/discharge of a firearm during a crime of violence. If convicted of the most serious crime, Shoulderblade faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the assault charge and a consecutive minimum mandatory 10 years, $250,000 fine and five years of supervised release on the discharge of a firearm charge. Shoulderblade was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 19-53.
Appearing on Jan. 14 was:
Charles Eyre, 60, a transient, on charges of possession with intent to distribute meth. If convicted of the most serious crime, Eyre faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Eyre was released pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. Pacer case reference. 19-145.
Jolson Hubert Bearcomesout, 39, of Lame Deer, on charges of assault resulting in serious bodily injury. If convicted of the most serious crime, Bearcomesout faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Bearcomesout was detained pending further proceedings. The Bureau of Indian Affairs Investigated the case. Pacer case reference. 20-02.
Appearing on Jan. 16 was:
Justice Price Stiltner, 21, of Billings, on charges of felon in possession of a firearm. If convicted of the most serious crime, Stiltner faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Stiltner was detained pending further proceedings. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 20-05.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Jan. 14 was:
Eric Shawn Roasting Stick, 37, of Box Elder, on charges of assault with a dangerous weapon and domestic abuse by habitual offender. If convicted of the most serious crime, Roasting Stick faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Roasting Stick was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 20-01.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illegal Alien Who Used Another Person’s Name and Social Security Number Sentenced to PrisonRead the Press Release
A man who used another person’s name and Social Security number to get a job was sentenced today to over two months in federal prison.
Jose Hernandez-Benitez, age 32, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a December 5, 2019, guilty plea to one count of misuse of a social security number.
In a plea agreement, Hernandez-Benitez admitted that on March 25, 2018, he used someone else’s name and social security number on employment forms and state and federal tax forms when applying for work in Waterloo, Iowa. Hernandez-Benitez worked under that person’s name until he was arrested by immigration officials on October 22, 2019, after they stopped a vehicle leaving the business believed to contain individuals in the United States illegally. Hernandez-Benitez admitted to being in the United States illegally.
Hernandez-Benitez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hernandez-Benitez was sentenced to 72 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hernandez-Benitez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2071.
Follow us on Twitter @USAO_NDIA.
High Point Man Convicted of Drug and Firearm OffensesRead the Press Release
GREENSBORO, N.C. - On Thursday, January 16, 2020, following a three-day trial in Greensboro, a jury in federal court found a High Point resident guilty on four felony charges, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
The jury found JABRELL CRAIG SMITH, age 27, guilty of possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, knowingly possessing a firearm after previously being convicted of a felony offense, and knowingly possessing an unregistered firearm.
Evidence presented at trial showed that on May 29, 2017, at approximately 2:00 a.m., officers from the Greensboro Police Department’s Street Crimes Unit followed and approached a black Chevrolet Malibu in the parking lot of a gas station located at 3302 South Holden Road in Greensboro. Police found an Intratec, Tec-9, 9mm Luger firearm sticking out from under the front passenger seat where SMITH had been seated. When officers recovered the weapon, they noticed that a red dot sighting system situated on top of the weapon was turned on and that a round of live ammunition had been chambered, making the Tec-9 ready to fire. The magazine contained twenty-six additional rounds of live ammunition. In the door pocket of the front passenger seat, officers recovered a plastic baggie containing 3.32 grams of heroin. At trial, the government presented text messages, videos, and photographs that established that SMITH possessed the heroin for the purpose of distribution and that he was previously familiar with, and had access to, the Tec-9. The Tec-9 had a modification, a forward grip attached to the frame of the weapon, which made it subject to additional regulation and registration in the National Firearms Registration and Transfer Record.
Sentencing is scheduled for May 11, 2020, at 9:30 a.m., in Greensboro, before United States District Judge William L. Osteen, Jr. With regard to the drug offense, SMITH faces a maximum sentence of 20 years in prison, a fine of up to $250,000, or both, and a term of not less than three years of supervised release. For possessing a firearm in furtherance of a drug crime, SMITH faces a mandatory minimum sentence of five years, and up to life, consecutive to any other sentence, a fine of up to $250,000, or both, and not more than five years of supervised release. For being a felon in knowing possession of a firearm, SMITH faces a maximum sentence of ten years in prison, a fine of up to $250,000, or both, and not more than three years of supervised release. For possessing the weapon subject to regulation under the National Firearms Act, SMITH faces a maximum sentence of ten years in prison, a fine of up to $10,000, or both, and not more than three years of supervised release.
The case was investigated by the Greensboro Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorney John M. Alsup.
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Hartford Man Who Sold Fentanyl and Other Drugs Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JEREMY RODRIGUEZ, 22, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 121 months of imprisonment, followed by four years of supervised release, for trafficking fentanyl and other drugs.
According to court documents and statements made in court, in August 2017, the Drug Enforcement Administration’s Hartford Task Force launched an investigation into a drug trafficking organization that was selling large amounts of heroin, fentanyl, cocaine and crack cocaine in Hartford. Julio Oliveras, also known as “Cuzzo Jay,” was identified as the leader of the organization. The investigation, which included approximately six months of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that Oliveras supplied wholesale quantities of narcotics to Rodriguez and other Hartford-area drug dealers, and used multiple locations in Hartford to process, store and distribute narcotics.
Rodriguez stashed and sold narcotics at his Spring Street residence and a Bedford Street location.
Oliveras, Rodriguez and other members of the organization were arrested on July 19, 2018. On that date, investigators executed 10 search warrants and seized approximately 2.7 kilograms of fentanyl, one kilogram of heroin, approximately 500 grams of crack cocaine, 100 grams of cocaine, eight firearms, more than 1,000 rounds of ammunition, cash, and other evidence of narcotics trafficking activity.
Rodriguez was arrested at his Spring Street residence. A search of his home at the time of his arrest revealed approximately 115 grams of unpackaged fentanyl, approximately 1,500 bags of fentanyl with a net weight of 23 grams, and a .45 caliber pistol with an obliterated serial number. A search of the Bedford Street location revealed a .357 caliber revolver.
On August 2, 2018, a grand jury in Hartford returned an indictment charging Oliveras, Rodriguez and 14 co-defendants with various offenses.
Rodriguez has been detained since his arrest. On October 23, 2019, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin, fentanyl, cocaine base (“crack”) and cocaine.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut Department of Correction, and the East Hartford, New Britain, Newington and West Hartford Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Hamburg Doctor Pleads Guilty to Illegally Importing Heroin and CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Torin Finver, 55, of Hamburg, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to importation of a controlled substance. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that on November 21, 2018, Customs and Border Protection officers examined a parcel at the Chicago, Illinois, post office addressed to “T Finver,” with a residence in Hamburg, NY. The parcel was from Germany and the sender information was fictitious. The package field tested positive for cocaine.
Subsequently, two similar packages addressed to the defendant sent from California were located by U.S. Postal Inspection Service Inspectors in Rochester. One of the packages field tested positive for heroin, the other contained cocaine.
On December 15, 2018, during review of incoming mail in Hamburg, Postal Inspectors located a fourth parcel addressed to “T Finver.” On December 17, 2018, Special Agents with Homeland Security Investigations arranged for a controlled delivery of the parcel. A U.S. Postal Inspector acting in an undercover capacity delivered the parcel and other mail addressed to “Torin FINVER.” After knocking on the front door, the Postal Inspector encountered the defendant and handed over the parcel and the mail. Finver was arrested at the scene.
During an interview with investigators, the defendant stated that he ordered “dark web” packages of heroin and cocaine from the Dream Market marketplace, seven times over two months. Finver used Bitcoin to pay for the narcotics.
“While Dr. Finver’s situation sadly illustrates just how powerful the disease of addiction can be,” stated U.S. Attorney Kennedy, “this prosecution is in furtherance of the national consensus—expressed in the federal law—which recognizes that the importation of illegal drugs is wrong and that their use is something that is also wrong and deeply destructive (as opposed to a choice like any other). While we fully support the continued expansion of treatment and prevention efforts, this Office will steadfastly uphold the rule of law, and in so doing, we will continue to seek to instill a sense of optimism which rejects the inevitability of addiction.”
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin. Additional assistance was provided by U.S. Customs and Border Protection in Chicago, Illinois.
Sentencing is scheduled for May 20, 2020, before Judge Vilardo.
# # # #Greenville Lab Director Sentenced to Prison for Falsifying Lab Results Concerning Water QualityRead the Press Release
OXFORD, Miss.— A Greenville lab operator hired to test water samples to help insure water quality for dozens of towns throughout the Mississippi Delta was sentenced to 18 months in prison on Thursday for submitting false statements and lab results to the Mississippi Department of Environmental Quality. William C. Lamar, U.S. Attorney for the Northern District of Mississippi, together with Charles Carfagno, Acting Special Agent in Charge of the Environmental Protection Agency’s criminal enforcement program in the Southeast, announced the sentence.
John H. Couey, 44, of Greenville was sentenced by Senior U.S. District Judge Glen Davidson, in Oxford following a guilty plea to five felony counts of knowingly making false material statements in documents required to be maintained under the Clean Water Act.
Couey is the owner and lab director of Davis Research, Inc., an environmental analytical laboratory located in Avon, Mississippi. Davis Research performed analytical testing services for more than 100 cities, towns, state and federal agencies, and businesses in the Mississippi Delta. Couey, as lab director, falsified over 1000 laboratory reports that were submitted to the Mississippi Department of Environmental Quality to demonstrate compliance under the Clean Water Act.
Judge Davidson sentenced Couey to 18 months incarceration on each of the five counts of conviction, to run concurrently. Upon release from prison, Couey will be placed on supervised release for a term of one year. Couey is scheduled to report to prison on March 16, 2020.
William C. Lamar, U.S. Attorney for the Northern District of Mississippi, said, “One of our top priorities is to protect the environment from those who would disregard our environmental regulations and laws, placing in jeopardy the well-being of our citizens.”
“The defendant in this case is alleged to have falsified thousands of water test results, including results used to confirm the safety of drinking water,” said Charles Carfagno, acting Special Agent in Charge of EPA’s criminal enforcement program in Mississippi. “This case demonstrates that EPA will hold accountable those who violate laws designed to protect the health and safety of our communities.”
This case was investigated by the Environmental Protection Agency, Criminal Investigation Division, and the Mississippi Department of Environmental Quality. The case was prosecuted by AUSA Robert Mims.
Gerod Woodberry Arrested for Bank RobberyRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Gerod Woodberry with the robbery of a Chase Bank in downtown Brooklyn on January 10, 2020. Woodberry was arrested today, and will make his initial appearance at the United States Courthouse for the Eastern District of New York on Sunday morning.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest. United States Attorney Donoghue issued a statement today noting some of the facts of the case.
As detailed in court filings, at approximately 5:35 p.m., Woodberry, wearing a baseball cap with a Chicago Bulls logo, entered a Chase Bank branch at 20 Flatbush Avenue and presented a hand-written note to a teller, stating in red ink, “THIS IS A ROBBERY BIG BILLS ONLY NO DYE PACKS.” The teller handed Woodberry approximately $1,000 in U.S. currency, and the defendant fled the bank. In a detention memorandum filed with the court today seeking a Permanent Order of Detention, prosecutors indicated that 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. The memorandum further noted that Woodberry was arrested by the NYPD hours after the January 8, 2020 robbery, but that he was released on January 10, 2020 because the crime charged did not qualify for pre-trial detention under New York State law. The memorandum also reported that the January 10, 2020 robbery in Brooklyn was committed less than four hours after his release on the January 8, 2020 arrest.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Woodberry faces up to 20 years in federal prison.
The government’s case is being prosecuted by Assistant United States Attorney Jack Dennehy, Senior Litigation Counsel and Director of the Rapid Approach to Strategic Prosecutions in the Office’s Criminal Division.
The Defendant:
GEROD WOODBERRY
Age: 42
Walterboro, South CarolinaE.D.N.Y. Docket No. 20-MJ-52
Georgia man found guilty of drug distribution resulting in deathRead the Press Release
CLARKSBURG, WEST VIRGINIA – After a nine-day trial, a federal jury found Terrick Robinson, of Cartersville, Georgia, guilty of drug distribution resulting in death and a myriad of other charges, U.S. Attorney Bill Powell announced.
After three hours of deliberation, the jury found Robinson, age 35, guilty of one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances,” one count of “Distribution of Methamphetamine,” one count of “Possession with the Intent to Distribute Methamphetamine – Aiding and Abetting,” one count of “Possession with the Intent to Distribute Cocaine Hydrochloride – Aiding and Abetting,” one count of “Possession with the Intent to Distribute Fentanyl – Aiding and Abetting,” one count of “Use of a Firearm During and in relation to a Drug Trafficking Crime – Aiding and Abetting,” one count of “Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime,” and one count of “Distribution of Fentanyl Resulting in Serious Bodily Injury or Death.”During the trial, the jury heard testimony that Robinson distributed trafficked and distributed more than 4.5 kilograms of methamphetamine, as well as cocaine hydrochloride and fentanyl, in Marion County and elsewhere from May 2018 to September 2018. He would travel from Georgia to West Virginia, trafficking the drugs from different motel and hotel rooms and other locations. Robinson and his conspirators carried at least three firearms during the drug trafficking crimes.
At one of the motels in Lewis County on August 9, 2018, Robinson distributed fentanyl to Courtney Dubois of Fairmont, West Virginia. That drug, according to her autopsy, was an independent sufficient cause of Courtney Dubois’ death. The jury heard testimony and saw evidence that Robinson took the body of the victim to Georgia, where he dismembered the body and disposed of it at the Bartow County Landfill.
“This was a horrific crime, involving drugs, guns and death. Though the verdict will not bring back Ms. Dubois, we hope her family gets some closure by the result of this trial and prior guilty pleas in this investigation. The verdict is the result of many hours of excellent work by the prosecution and law enforcement teams. I also want to thank the Georgia authorities who assisted in bringing this defendant to justice,” said Powell.
Robinson faces the following:
Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances – at least 10 years and up to life incarceration and a fine of up to $10,000,000
Distribution of Methamphetamine - at least 10 and up to life incarceration and a fine of up to $10,000,000
Possession with the Intent to Distribute Methamphetamine – Aiding and Abetting - at least 10 years and up to life incarceration and a fine of up to $10,000,000
Possession with the Intent to Distribute Cocaine Hydrochloride – Aiding and Abetting – up to 20 years incarceration and a fine of up to $1,000,000
Possession with the Intent to Distribute Fentanyl – Aiding and Abetting – at least five years and up to 40 years incarceration and a fine of up to $5,000,000
Use of a Firearm During and in relation to a Drug Trafficking Crime – Aiding and Abetting – at least five years and up to life incarceration and a fine of up to $250,000
Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime – at least five years and up to life incarceration and up to a $250,000 fine
Distribution of Fentanyl Resulting in Serious Bodily Injury or Death – at least 20 years and up to life incarceration and a fine of up to $1,000,000Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Two of the co-conspirators in this case have pled guilty. William Gregory Chappell, age 33, of Cartersville, Georgia, pled guilty to one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances” and one count of “Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime” in February 2019. Joel Jimenez, age 37, also of Cartersville, Georgia, pled guilty to one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances” in October 2019. Both men were a part of the drug distribution operation from Georgia to West Virginia.
Another defendant in this case, Seddrick Damond Banks, age 27, of Cartersville, Georgia, is set to go to trial on March 23, 2020. He is accused of being a part of the drug distribution operation, as well as being an accessory after the fact in Dubois’s death.
Assistant U.S. Attorneys Traci M. Cook and Brandon S. Flower prosecuted the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Three Rivers Drug & Violent Crimes Task Force; the West Virginia State Police; The Bartow County, Georgia, Sheriff’s Office; the FBI in Rome, Georgia; and the Georgia Bureau of Investigation investigated.
U.S. District Judge Thomas S. Kleeh presided.
Franklin man sentenced to 15 years in federal prison for charges involving child pornographyRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Gary Ryan Dismore, 42, of Franklin, Ind., was sentenced in federal court, by U.S. District Judge Sarah Evans Barker, to 15 years’ in federal prison, after having previously pleaded guilty to charges of advertising, distributing, receiving, and possessing child pornography.
“Individuals who choose to sexually exploit and prey on innocent children will be prosecuted to the full extent under federal law,” said Minkler. “The U.S. Attorney’s Office is committed to safeguarding children against child predators, like Dismore.”
In Nov. of 2017, the Indiana State Police received a Cyber Tip from the National Center for Missing and Exploited Children (NCMEC) concerning alleged illegal activities of an unidentified subject. According to the Cyber Tip, a user uploaded 157 videos to a Drobox account. The files uploaded to the Dropbox account contained videos of child pornography. In response to a search warrant executed by law enforcement, Dropbox provided a USB Drive, which contained child pornography files. The email address associated with the Dropbox account was later linked to Dismore.
On July 23, 2018, a search warrant was executed at the Franklin residence of Dismore. During the search, officers seized a Samsung cell phone, three USB thumb drives, three laptops, and an iPod. Dismore admitted that the devices were used solely by him. During a forensic examination of the digital media devices, officers discovered digital files depicting children under the age of 12, in addition to images of children over the age of 12, but under 18, that constitute child pornography. Forensic examiners noted there were two videos and 100 pictures of child pornography including images of toddlers on the Memorex 2GB Thumb Drive. Forensic examiners noted approximately 200 images of child pornography, including images or videos depicting acts of bondage and victims as young as toddler age on the PNY Attaché 512 MB Thumb Drive. Forensic examiners noted that there were approximately 30 child pornography videos located on the black HP laptop. Forensic examiners noted approximately 70 child pornography images located on the iPod. Forensic examiners noted 10,165 files and 172 folders, the majority of which contained child pornography on the Memorex USB. Forensic examiners noted approximately 1650 images and videos, of primarily child pornography, were contained on the Samsung Galaxy S6.
Dismore was also discovered to be an owner, administrator, and member of several private chat groups, using a popular online application. Dismore’s chat groups were dedicated to the trafficking of child pornography and related discussions. Examiners discovered that Dismore used his Samsung cell phone to exchange child pornography and to provide links to his Dropbox and Mega Cloud storage accounts to other users, which contained large collections of child pornography. Dismore tailored links to his child pornography collections based on each group member’s specific sexual interest. Dismore has been sharing his large volumes of child pornography since at least 2007.
This case was investigated by the Federal Bureau of Investigation and the Indiana State Police.
“The message here is clear - you may think sitting behind a computer in your home will provide anonymity and heinous activity such as this won’t be detected - but the FBI and our law enforcement partners will use every technique and tool at our disposal to identify you and put a stop to this deplorable activity,” said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. “Protecting the most innocent of Hoosier victims – our children - is a top priority, and you will be held accountable.”
“Indiana State Police investigators work diligently every day, all across Indiana, and in close collaboration with its law enforcement partners, to bring to justice those who seek to capitalize on the victimization of children,” said Indiana State Police Superintendent Douglas G. Carter.
According to Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case for the government, Dismore will serve 10 years’ supervised release following his prison sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1.
Former VA Pharmacist Found Guilty of Stealing Controlled Drugs from Veterans' PrescriptionsRead the Press Release
SHREVEPORT, La. – A licensed pharmacist, who was formerly employed with the Overton Brooks VA Medical Center (VAMC) in Shreveport, was found guilty today by a federal jury for stealing controlled substances from mail-out prescriptions, announced United States Attorney David C. Joseph.
Following a one-week trial and four hours of deliberations, Melissa W. Richardson, 44, of Shreveport, was found guilty of 15 counts of acquiring a controlled substance by fraud.
According to evidence presented at trial, on June 9, 2017, Richardson, a licensed pharmacist employed at the VAMC, stole various quantities of Hydrocodone out of individual prescription bottles as she verified mail-out prescriptions meant for veterans. The prescriptions at issue had been prepared by a pharmacy technician and were awaiting a second count and verification from Richardson. Video surveillance from inside the VAMC controlled substances vault showed Richardson slipping the pills into her pocket as she counted the prescriptions. In multiple instances, she slipped pills into her pocket before the pills were counted. Video footage showed her then verify that the prescription was correct in the VAMC’s computer system, seal the bottle, place it in a sealed envelope, and drop it in a bin for mail-out. When federal agents confronted Richardson, she had 236 loose pills in her pocket.
The U.S. Department of Veterans Affairs, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan and Supervisory Assistant U.S. Attorney Allison D. Bushnell are prosecuting the case.
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Former Spa Owner Charged for Payment and Shipment of Prescription Drugs Received from Unauthorized SourcesRead the Press Release
A woman who operated a Tulsa spa was indicted this week on charges related to the use of prescription drugs purchased from unauthorized sources from November 2012 to April 2018, announced U.S. Attorney Trent Shores.
A federal grand jury returned the indictment charging Elisa Kaye Sanders, 60, of Tulsa, with two counts of mail fraud and 13 counts of wire fraud.
Sanders was a majority owner and operator of L’Chaim Medical Spa, previously known as Enhance Skin and Body Medical Spa. Sanders participated in and oversaw the spa’s purchase, receipt, holding, and administration of drugs and devices used for the treatment of clients, including Botox and Juvederm.
According to the indictment, Sanders defrauded clients seeking treatment from her spa; her staff; and state and federal regulatory agencies responsible for the oversight of the spa. Sanders is alleged to have obtained Botox and Juvederm Ultra 3 and 4 from unauthorized sources who diverted it from the legitimate prescription drug supply chain. The indictment alleges the defendant failed to advise her clients of the sources of the prescription drugs and devices used at the spa.
“A federal grand jury indicted Ms. Sanders for her alleged criminal actions associated with the administration of drugs, like Botox and Juvederm,” said U.S. Attorney Trent Shores. “This United States Attorney’s Office will continue to pursue cases against healthcare providers who skirt FDA regulations developed to ensure the safety of individuals receiving prescription drug treatments.”
In September 2016, Sanders was advised by Food and Drug Administration representatives that purchasing prescription drugs and devices from unauthorized sources was illegal, but soon after, she continued to purchase the prescription drugs from unauthorized sources. From October 2016 to May 2018, Sanders sold approximately 30,000 units of Botox. Approximately 3,000 of those units were purchased from the unauthorized sources.
In count one of the indictment, Sanders is charged with mail fraud. She is alleged to have purchased Botox in 2015 from an unauthorized source in Mumbai, India, which was then shipped to Tulsa. When purchasing the drug, Sanders claimed it was for her own use. The indictment alleges that Sanders actually used the drug on spa clients.
In count two, Sanders is also charged with mail fraud for sending altered medical records to a client’s physician. The records were altered to show that Juvederm Ultra Plus XC had been administered to the client when, in fact, Juvederm Ultra 4 was administered. Juvederm Ultra 3 and 4 are not approved by the Food and Drug Administration for use in the United States.
In counts three through ten of the indictment, Sanders is charged with wire fraud related to eight payments made by customers for the Botox and Juvederm received from unauthorized sources.
Finally, in counts eleven through fifteen, Sanders is charged with wire fraud related to five payments made to Global Health for the purchase of Botox from unauthorized sources. Shortly after the Food and Drug Administration representative’s warning in 2016, Sanders allegedly directed an individual to purchase the Botox from unauthorized sources and have the drug mailed to the individual’s business. Sanders would later pick up the drug and reimburse the individual with cash.
Sanders faces a maximum of twenty years in prison, a $250,000 fine, and a maximum of three years of supervised release for each count of mail fraud and wire fraud.
The Food and Drug Administration, Office of Criminal Investigations conducted the investigation. Assistant U.S. Attorneys Shannon Cozzoni and Scott Proctor are prosecuting the case.
Former San Angelo Police Chief Indicted for BriberyRead the Press Release
A federal grand jury has indicted San Angelo’s former Chief of Police for public corruption following an investigation by the FBI Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Timothy Ray Vasquez, 49, was charged Wednesday with one count of receipt of a bribe by an agent of an organization receiving federal funds and three counts of honest services mail fraud.
“We must insist that law enforcement leaders personify integrity,” said U.S. Attorney Nealy Cox. “Former Chief Vasquez abused his office for personal financial gain. We are determined to root out corruption wherever we find it. Public officials cannot be allowed to violate their sacred trusts.”
“The defendant manipulated a government procurement process to personally profit for years. This abuse of power affected a system that is supposed to be fair and unbiased,” said FBI Special Agent in Charge of the Dallas Field Office Matthew J. DeSarno. “Public corruption is one of the FBI’s top investigative priorities. We will continue to hold elected officials accountable for violating the trust of their constituents.”
Mr. Vasquez – who was elected Chief of Police in 2004, then reelected in 2008 and 2012 – made his initial appearance in federal court Friday afternoon.
According to the indictment, Mr. Vasquez allegedly used his official position to help a radio system vendor land two government contracts worth more than $11 million. In return, the vendor and its affiliates allegedly funneled him and his band, “Funky Munky,” more than $130,000.
Per the indictment, in February 2007, the City of San Angelo solicited bids for a new radio system for first responders, including the police department. Three vendors submitted bids.
Mr. Vasquez allegedly asked one of the vendors for a vacation trip, but was rebuffed.
In April, Mr. Vasquez recommended the city award the $5.6 million contract to a different vendor, identified in the indictment as “Vendor 1,” who was eventually selected for the contract.
Three months later, in July, Juniper Valley, L.P., an affiliate of Vendor 1, cut a $10,000 check to “Funky Munky Band.” Mr. Vasquez deposited the funds into his personal checking account.
For the next eight years, Mr. Vasquez received yearly payments of approximately $8,000 from Vendor 1 and its affiliates, Juniper Valley and Trixie & Fini, either made out to Mr. Vasquez or his band.
By 2015, Mr. Vasquez and Funky Money had collected more than $84,000, including $38,200 the defendant deposited directly into his personal bank account and $29,800 he withdrew in cash.
However, seven years after the original contract was awarded, the radio technology provided by Vendor 1 was “phased out.” In an email with city employees, Mr. Vasquez indicated he wanted to “use the same vendor” for the new equipment, and urged the City Manager to support Vendor 1. In another email with a city employee, he discussed an exemption from the competitive bidding process that would allow San Angelo to award the contract to Vendor 1.
Following a presentation made by then-Chief Vasquez and another employee, San Angelo awarded a new $5.7 million contract to Vendor 1 in June 2015.
Six months later, Vendor 1 wrote a check to “Funky Munky,” noting “Timothy R. Vasquez” in the check’s memo section. A few days later, Mr. Vasquez endorsed the $50,000 check and deposited the entire amount into his personal bank account.
In total, Mr. Vasquez and Funky Munky received at least $134,000 from Vendor 1 and its affiliates, including at least $88,200 he deposited into his personal bank account and $29,800 he withdrew in cash.
Funky Munky’s typical fee to play at an event runs from $1,000 - $3,000.
An indictment is a formal accusation of criminal conduct, not evidence, and the defendant is presumed innocent until proven guilty in a court of law.
If convicted, Mr. Vasquez faces up to 70 years in federal person.
The Federal Bureau of Investigation and the Texas Rangers, with the full cooperation of the San Angelo Police Department and the City of San Angelo, conducted the investigation. Assistant U.S. Attorneys Jeff Haag and Chad Meacham are prosecuting the case.
Former Mississippi Corrections Officer Sentenced to Prison for Excessive ForceRead the Press Release
Shelley Griffith, 29, a former Mississippi Department of Corrections (MDOC) officer, was sentenced today in Jackson, Mississippi, by Chief U.S. District Judge Daniel P. Jordan II of the Southern District of Mississippi to serve 70 months in prison for her role in assaulting an inmate at the Central Mississippi Correctional Facility (CMCF) in Rankin County, Mississippi.
Griffith pled guilty on Dec. 14, 2017, to violating the civil rights of an inmate by using excessive force against him.
“This type of behavior is unacceptable and will not be tolerated by the Department of Justice,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division is committed to prosecuting those who violate the civil rights of others.”
“Violating a person’s civil rights, whether the person is incarcerated or not, is a serious offense and only damages the already delicate relationship between corrections officers and inmates,” said Special Agent in Charge Michelle A. Sutphin of the FBI’s Jackson Division. “The FBI will continue working with our partner agencies to investigate violations of civil rights within Mississippi prisons.”
According to the Criminal Information, on May 25, 2016, Griffith assaulted the inmate, identified as “L.H.,” by kicking, punching, and stomping on him. Griffith’s assault resulted in bodily injury to “L.H.” and involved the use of a dangerous weapon. At the time of the incident, Griffith was working as a corrections officer at CMCF in Rankin County, Mississippi.
Two other former MDOC officers, Reginald Brown and Sharalyn McClain, have pled guilty to violating the civil rights of “L.H.” based on their own conduct during the assault. Brown was sentenced to a term of imprisonment of 60 months. McClain will be sentenced on March 20, 2020.
This case was investigated by the FBI’s Jackson, Mississippi, Field Office. Special Litigation Counsel Julia Gegenheimer and Trial Attorneys Cameron Bell and Mary J. Hahn of the Department of Justice Civil Rights Division and Assistant U.S. Attorney Glenda Haynes of Southern District of Mississippi prosecuted the case.
Former Mississippi Corrections Officer Sentenced to Prison for Excessive ForceRead the Press Release
Shelley Griffith, 29, a former Mississippi Department of Corrections (MDOC) officer, was sentenced today in Jackson, Mississippi, by Chief U.S. District Judge Daniel P. Jordan II of the Southern District of Mississippi to serve 70 months in prison for her role in assaulting an inmate at the Central Mississippi Correctional Facility (CMCF) in Rankin County, Mississippi.
Griffith pled guilty on Dec. 14, 2017, to violating the civil rights of an inmate by using excessive force against him.
“This type of behavior is unacceptable and will not be tolerated by the Department of Justice,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division is committed to prosecuting those who violate the civil rights of others.”
“Violating a person’s civil rights, whether the person is incarcerated or not, is a serious offense and only damages the already delicate relationship between corrections officers and inmates,” said Special Agent in Charge Michelle A. Sutphin of the FBI’s Jackson Division. “The FBI will continue working with our partner agencies to investigate violations of civil rights within Mississippi prisons.”
According to the Criminal Information, on May 25, 2016, Griffith assaulted the inmate, identified as “L.H.,” by kicking, punching, and stomping on him. Griffith’s assault resulted in bodily injury to “L.H.” and involved the use of a dangerous weapon. At the time of the incident, Griffith was working as a corrections officer at CMCF in Rankin County, Mississippi.
Two other former MDOC officers, Reginald Brown and Sharalyn McClain, have pled guilty to violating the civil rights of “L.H.” based on their own conduct during the assault. Brown was sentenced to a term of imprisonment of 60 months. McClain will be sentenced on March 20, 2020.
This case was investigated by the FBI’s Jackson, Mississippi, Field Office. Special Litigation Counsel Julia Gegenheimer and Trial Attorneys Cameron Bell and Mary J. Hahn of the Department of Justice Civil Rights Division and Assistant U.S. Attorney Glenda Haynes of Southern District of Mississippi prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Executive Director of Non-Profit Sentenced for EmbezzlementRead the Press Release
Donna Carman, 60, of Indiantown, Florida, was sentenced today for embezzling federal funds for her own personal profit.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Teri Donaldson, Inspector General, U.S. Department of Energy, Office of the Inspector General (DOE-OIG), Tyrone Hardy, Acting Special Agent in Charge of the Southeast Caribbean Region, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), and Scott McInerney, Director, Florida Department of Law Enforcement (FDLE) made the announcement.
According to the court record, beginning as early as August 21, 2014, Carman began siphoning funds from Indiantown Nonprofit Housing, Inc. (“Indiantown”), a Florida not-for-profit corporation, for her own personal use, including repairs and upgrades made to a rental property she owned in Martin County, and unauthorized purchases on Indiantown’s American Express credit card. Indiantown provides affordable housing and community, social, and economic development opportunities for low and moderate income residents in Martin County. Indiantown applied for and received funds through various federal programs. Carman was the Executive Director for Indiantown in 2013, 2014, and 2015. As the Executive Director, Carman was authorized to use an American Express credit card bearing her name and issued to Indiantown for business-related purchases. Carman used the Indiantown American Express credit card on several occasions to purchases goods and services for herself and others unrelated to Indiantown’s mission. In total, Carman embezzled and converted to her own use at least $50,000.00 from Indiantown between January 2013 and September 2015.
After having previously pled guilty to committing a theft from an organization receiving federal funds, Carman was sentenced by U.S. District Judge Jose E. Martinez to 5 years of probation (to include 360 days of home confinement) (Case No. 19-CR-14039). She was also ordered to pay $50,000 in restitution and a $10,000 fine.
U.S. Attorney Fajardo Orshan commended the investigative efforts of DOE-OIG, HUD-OIG, and FDLE in this matter. This case was prosecuted by Assistant U.S. Attorney Michael D. Porter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Congressman Christopher Collins Sentenced for Insider Trading Scheme and Lying to Federal Law Enforcement AgentsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that CHRISTOPHER COLLINS, who represented the 27th District of New York as a member of the U.S. House of Representatives, was sentenced to 26 months in prison today by U.S. District Judge Vernon S. Broderick for participating in a scheme to commit insider trading and for making false statements to federal law enforcement agents when interviewed about his conduct.
U.S. Attorney Geoffrey S. Berman said: “Former New York Congressman and Innate board member Christopher Collins received confidential, nonpublic information that one of Innate’s drugs in development had just failed a clinical trial. Moments later, from the White House lawn, Collins notified his son Cameron, so that he could trade the stock ahead of the public announcement and avoid taking a substantial loss on the stock. He then lied to the FBI when asked about his conduct. Collins’s greed and disregard for the law have now led to a criminal conviction for insider trading and lying to the FBI, his resignation from Congress, and over two years in federal prison. Lawmakers bear the profound privilege and responsibility of writing and passing laws, but equally as important, the absolute obligation of following them. Collins’s hubris is a stark reminder that the people of New York can and should demand more from their elected officials, and that no matter how powerful, no lawmaker is above the law.”
The following facts are based on the allegations contained in the Superseding Indictment and statements made in related court filings and proceedings:
The Insider Trading Scheme
The Scheme
In or about June 2017, CHRISTOPHER COLLINS, who, in addition to serving on the board of directors of Innate Immunotherapeutics (“Innate”), an Australian biotechnology company, was also one of Innate’s largest shareholders, participated in a scheme to commit insider trading. Specifically, on or about June 22, 2017, CHRISTOPHER COLLINS learned that MIS416 – a multiple sclerosis drug that Innate was developing – had failed a critical drug trial that was meant to determine the drug’s clinical efficacy (the “Drug Trial”). The negative Drug Trial results were highly confidential, and, as an insider who owed duties of trust and confidence to Innate, CHRISTOPHER COLLINS was obligated to keep the Drug Trial results secret until Innate publicly released them. Instead, in breach of those duties, CHRISTOPHER COLLINS tipped his son, Cameron Collins, who was also a substantial Innate shareholder, so that Cameron Collins could make timely trades and tip others before Innate publicly released the Drug Trial results. Cameron Collins traded on the inside information and passed it to Stephen Zarsky, the father of his fiancée, as well as to three individuals not named in the Superseding Indictment (“Individual-1,” “Individual-2,” and “Individual-6”), so that they could utilize the information for the same purpose. Zarsky, in turn, traded on the information and used it to tip three more individuals not named in the Superseding Indictment (“Individual-3,” “Individual-4,” and “Individual-5,”) so that they too could engage in timely trades in Innate stock. All of the trades preceded the public release of the negative Drug Trial results.
In total, these trades allowed Cameron Collins and Zarsky, and Individual-1 through Individual-6, to avoid over $768,000 in losses that they would have otherwise incurred if they had sold their stock in Innate after the Drug Trial results became public.
The Drug Trial Results
In or about October 2014, Innate initiated a Phase 2B clinical trial of its primary drug, MIS416. Successful completion of the Drug Trial was a necessary prerequisite to the commercialization of MIS416. Because Innate had no other significant products in development, its stock price was tied to the success of MIS416.
The Drug Trial was widely expected to be completed around the summer of 2017. For example, on or about June 9, 2017, Innate’s chief executive officer (“CEO”) sent various individuals, including CHRISTOPHER COLLINS, an email stating that “the delivery date for [the] review and ‘verdict’” of the Drug Trial “will [] occur at COB on US Thursday June 22nd.” As the summer progressed, individuals within Innate remained optimistic that MIS416’s Drug Trial results would be positive. The initial Drug Trial results were made available by trial administrators to Innate’s CEO on June 22, 2017. These results established that MIS416 lacked therapeutic value in the treatment of multiple sclerosis. The results were not publicly released at that time. Instead, they were released publicly on June 26, 2017, after the U.S. markets had closed (the “Public Announcement”). Innate’s stock price subsequently crashed, dropping 92% on the first trading day following the Public Announcement.
Dissemination of the Drug Trial Results
On or about June 22, 2017, at approximately 6:55 p.m., Innate’s CEO sent an email describing the Drug Trial results to the company’s board of directors, including CHRISTOPHER COLLINS. The email explained to Innate’s board of directors for the first time that the Drug Trial had been a failure. The email began, in part, “I have bad news to report,” and continued to explain that “the top line analysis of the ‘intent to treat’ patient population (ie every subject who was successfully enrolled in the study) would pretty clearly indicate[s] ‘clinical failure.’” The email continued, “Top-line 12-month data . . . show no clinically meaningful or statistically significant differences in [outcomes] between MIS416 and placebo,” and concluded by stating, “No doubt we will want to consider this extremely bad news . . . .”
At the time CHRISTOPHER COLLINS received this email, he was attending the Congressional Picnic at the White House. At 7:10 p.m., CHRISTOPHER COLLINS replied to the email, stating, in part, “Wow. Makes no sense. How are these results even possible???” After responding to the Innate CEO’s email, CHRISTOPHER COLLINS called his son, Cameron Collins. They traded six missed calls between 7:11 p.m. and 7:15 p.m. At 7:16 p.m., CHRISTOPHER COLLINS and Cameron Collins spoke for more than six minutes. During that six-minute phone call, CHRISTOPHER COLLINS told Cameron Collins, in sum and substance, that MIS416 had failed the Drug Trial.
Trading and Tipping by CAMERON COLLINS and ZARSKY
Cameron Collins began placing orders to sell his Innate shares the morning after he received inside information from CHRISTOPHER COLLINS. Between the morning of Friday, June 23, 2017, and the close of the market on Monday, June 26, 2017, Cameron Collins sold approximately 1,391,500 shares of Innate stock. These sales allowed Cameron Collins to avoid approximately $570,900 in losses.
Furthermore, after learning the Drug Trial results from CHRISTOPHER COLLINS, on or about the night of June 22, 2017, Cameron Collins provided the Drug Trial results to at least the following three sets of individuals so that they could trade in advance of the Public Announcement: (1) his fiancée, Individual-1; (2) Zarsky and Zarsky’s wife, Individual-2; and (3) Cameron Collins’s friend, Individual-6. Collectively, these individuals avoided approximately $186,620 in losses as a result of their trading on inside information.
On or about the morning of June 23, 2017, Zarsky provided the negative Drug Trial results that he had learned from Cameron Collins and Individual-1 to at least the following individuals, among others, or otherwise caused them to trade or attempt to trade in advance of the Public Announcement: (1) his brother, Individual-3; (2) his sister, Individual-4; and (3) his longstanding friend, Individual-5. Collectively, these individuals avoided approximately $10,900 in losses as a result of their trading on inside information.
False Statements to the FBI
On or about April 25, 2018, special agents from the Federal Bureau of Investigation (“FBI”) separately interviewed CHRISTOPHER COLLINS, Cameron Collins and Zarsky. During these interviews, and as detailed in the Superseding Indictment, CHRISTOPHER COLLINS, Cameron Collins and Zarsky made false statements to the FBI to cover up their participation in the insider trading scheme.
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In addition to the prison term, CHRISTOPHER COLLINS was sentenced to one year of supervised release and ordered to pay a fine of $200,000.
Mr. Berman praised the outstanding work of the FBI and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Scott Hartman, Max Nicholas, and Damian Williams are in charge of the prosecution.
Former Commander of Naval Station Guantanamo Bay Convicted of Obstructing Justice in Connection with Civilian DeathRead the Press Release
A former Commander of Naval Station Guantanamo Bay (GTMO) was convicted by a federal jury today of obstructing justice and making false statements, among other charges, in connection with the death of a civilian at the naval base.
John Nettleton, 54, of Jacksonville, Florida, was convicted of obstructing justice, concealing information, falsifying records and making false statements, all related to his actions during the Navy’s investigation of the death of Christopher M. Tur, the Loss Prevention Safety Manager at GTMO’s Naval Exchange. A sentencing date has not been scheduled.
“Captain Nettleton dishonored his oath and impeded the investigation into a civilian's tragic death, preventing much needed closure for the family and friends of the deceased," said Assistant Attorney General Brian A. Benczkowski of the Justice Department's Criminal Division. “Today's verdict demonstrates the department's steadfast commitment to holding accountable those who abuse their positions of public trust and obstruct justice.”
“By deliberately misleading NCIS during the investigation into the tragic death of Mr. Tur, Captain Nettleton delayed justice and wasted valuable Department of the Navy resources,” said Special Agent in Charge Matthew Lascell of the Naval Criminal Investigative Service’s (NCIS) Southeast Field Office. “NCIS is dedicated to holding those who unlawfully impede investigations accountable for their actions.”
Tur, 42, was found drowned in the waters of Guantanamo Bay on Jan. 11, 2015. An autopsy revealed that Tur had suffered injuries prior to his drowning. At the time of Tur’s death, Nettleton was the Commanding Officer of GTMO. Nettleton was indicted in January 2019.
According to the evidence at trial, Tur confronted Nettleton at a party at the GTMO Officers’ Club on Jan. 9, 2015, with allegations that Nettleton and Tur’s spouse had engaged in an extramarital affair. Later that same evening, Tur went to Nettleton’s residence and a physical altercation ensued that left Tur injured. Tur was reported missing on Jan. 10, 2015, by other residents of GTMO. Nettleton also did not report that Tur had accused him of the extramarital affair, that Nettleton and Tur had engaged in a physical altercation at Nettleton’s residence, or that Tur had been injured. Nettleton persisted in concealment and false statements as the search for Tur continued and then during the investigation into the circumstances of his death.
The Naval Criminal Investigative Service investigated the case. Deputy Chief Todd Gee and Trial Attorney Peter M. Nothstein of the Criminal Division’s Public Integrity Section prosecuted the case. Former Public Integrity Section Trial Attorney Mark Cipolletti also assisted in the investigation.
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.
Former Bank Employee and Two Others Arrested for Involvement in Procurement Kickback SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal complaint charging RICHARD WONG, GABRIELA BRATKOVICS, and EVAN BROWN with honest services wire fraud, bank fraud, bribery of a financial institution employee, and conspiracy, for their role in a kickback scheme designed to compensate WONG, an employee of a large financial institution, for ensuring that his employer continued to utilize the services of the information technology staffing company controlled by BRATKOVICS and BROWN. WONG was arrested yesterday and presented before United States Magistrate Judge Katharine H. Parker. BRATKOVICS and BROWN were arrested today and are expected to be presented before Magistrate Judge Parker this afternoon.
According to the allegations in the Complaint[1] unsealed yesterday in Manhattan federal court:
From 2011 through July 2018, WONG worked for a large financial institution (“Bank-1”) in procurement and was responsible for, among other things, managing relationships with certain vendors, negotiating contracts, reviewing requests for proposals, and requesting quotes for services. Beginning in 2013, WONG was responsible for supervising Bank-1’s relationship with a company that provides temporary information technology staffing to corporate clients (“Company-1”). BRATKOVICS and BROWN are the co-founders of Company-1; BRATKOVICS is the chief executive officer of Company-1, and BROWN is the chief financial officer of Company-1.
Between in or about July 2013 and in or about December 2018, Bank-1 paid Company-1 in excess of $8.4 million for IT staffing services. Between in or about January 2014 and in or about December 2018, BRATKOVICS and BROWN, acting on behalf of Company-1, caused approximately $891,000 to be transferred to WONG, in the form of cash, checks, and wire transfers; these payments were kickbacks, designed to compensate WONG for assisting Company-1 in securing Bank-1’s business and providing Company-1 with information about Bank-1’s procurement process. Indeed, the total amount of each kickback payment was tied to the number of hours of Company-1’s services Bank-1 utilized during a particular time period, typically each month.
WONG, BRATKOVICS, and BROWN began discussing possible kickbacks approximately three months after Company-1 began providing services to Bank-1. On or about October 8, 2013, WONG sent an email to BROWN, writing, in substance and in part, “Send me your spreadsheet on the 5 resources I gotten for you. . . . And your proposal. . . . Let’s get on the same page[.]” Approximately two months later, on or about December 9, 2013, WONG emailed BROWN, copying BRATKOVICS, writing, in substance and in part, “Can you guys send me what you have so I can see the data . . . not saying I will want the money now . . . but want to see how it looks likes [sic][.]”
On multiple occasions, beginning in or about January 2014, BRATKOVICS, BROWN, and WONG exchanged emails discussing spreadsheets that appear to detail the names and hours worked by Company-1 staffers at Bank 1 for specified time periods. At the bottom of the spreadsheets was a calculation that appears to determine how much Company-1 is to pay WONG in kickbacks for that period. Throughout the period in which WONG was receiving kickbacks from Bank-1, Company-1 not only continued to provide services to Bank-1, but WONG also repeatedly provided BRATKOVICS and BROWN with information about Bank-1’s internal discussions regarding use of Company-1’s services by blind carbon copying them on emails.
On or about April 30, 2018, WONG was notified by Bank-1 that his position had been eliminated. Bank-1 continued to employ the services of Company-1 until in or about December 2018. WONG continued to receive payments from accounts controlled by BRATKOVICS and Company-1 even after his employment was terminated, until in or about December 2018.
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A chart containing the names, charges, and maximum and minimum penalties for the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI in this case.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Katherine Reilly and Dina McLeod are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Florence Resident Sentenced to Federal Prison for Committing Tax Fraud While Operating a Tax Preparer BusinessRead the Press Release
Florence, South Carolina ---- Acting United States Attorney A. Lance Crick announced today that Donna Faye Shird, 41, of Florence, was sentenced to federal prison after pleading guilty to conspiracy to aid in the preparation and filing of false federal income tax returns.
The evidence presented at the guilty plea hearing established that Donna, and her codefendant Felicia Shird, operated a business known as Donna’s Income Tax Service, which provided tax preparation and filing services for customers. During the period from 2012 and 2017, both Donna and Felicia began routinely adding fictitious information to the personal tax returns of customers in order to artificially increase the amount of tax refund the customers would receive from the IRS. Investigators discovered that customers of Donna’s Income Tax Service provided correct tax related information to the Shirds with the expectation that they would accurately prepare and file the returns for the customers. Instead, the Shirds would create returns which falsely claimed deductions, credits, exemptions and other tax benefits to which the taxpayers were not entitled. Falsely claimed items included child and dependent care credits, business profits and losses, education credits, residential energy credits, and earned income credits. As a result, customers received fraudulently inflated tax refunds and Donna’s Income Tax Service attracted more customers based on their reputation for producing such large refunds. The illegal operations of Donna’s Income Tax Service, and the fraudulent conduct by the Shirds, resulted in a significant loss of tax revenue for the United States Government.
Chief United States District Judge R. Bryan Harwell sentenced Shird to 18 months in federal prison, to be followed by three years of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the Internal Revenue Service. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Judge Sentences Six Individuals for Marijuana ConspiracyRead the Press Release
Jacksonville, FL – U.S. District Judge Marcia Morales Howard has sentenced six individuals in connection with a conspiracy to distribute marijuana and, with respect to four of the defendants, conspiracy to commit money laundering. Bao The Khuong (47, San Jose, CA) was sentenced to 5 years in federal prison, Hai Phi Tran (28, Jacksonville) was sentenced to 3 years in federal prison, Tantai Vo (30, Jacksonville) was sentenced to 26 months in federal prison, Phuc Nguyen Hoang (28, Jacksonville) was sentenced to 23 months in federal prison, Ray Thomas Balintucas (31, Jacksonville) was sentenced to 20 months in federal prison, and Hoi Nguyen (38, Orlando) was sentenced to 16 months in federal prison. Tantai Vo was also sentenced for the unlawful possession of a firearm and was ordered to forfeit his firearm and ammunition. In addition, Khuong was ordered to forfeit at least $1 million in proceeds, and Tran was ordered to forfeit assets of up to $500,000, all of which are traceable to proceeds of the offenses.
All of the defendants had previously pleaded guilty.
According to court documents, beginning as early as April 2014, Khuong served as the source of supply for marijuana from California to Jacksonville. He received approximately $30,000 in marijuana proceeds from Tran, and Tran’s associates in Jacksonville, several times a week for at least 18 months. Hoang assisted Khuong and Tran in moving marijuana and marijuana proceeds between California and Jacksonville, and with packaging marijuana in California for shipment to Tran in Jacksonville. Khuong also supplied Vo with marijuana from California, which he sent to Vo in Jacksonville. Nguyen served as a secondary source of supply of marijuana to Vo. Vo sold at least 700 pounds of marijuana to Balintucas during the course of the conspiracy. At the time of Vo’s arrest, he was delivering 4 pounds of marijuana to Balintucas, and was carrying a loaded 9mm semi-automatic pistol.
“This sentencing is another example of how strong law enforcement partnerships impacted both violence and drug trafficking in our continued efforts to protect the public,” said ATF Special Agent in Charge Daryl McCrary. “Being one of the cornerstones of our Project Safe Neighborhoods Initiative, our strong law enforcement partnerships continue to mitigate nefarious individuals from committing further acts of drug trafficking and violence in communities.”
“Dismantling this organization is a big win for the people of Northern Florida,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation’s Tampa Field Office. “This case took drugs, guns, and dirty money off our streets and out of the hands of criminals. We take our commitment to fighting narcotics and related financial crimes seriously, and we will continue to work with our law enforcement partners to track down and prosecute offenders.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the U.S. Marshals Service, Homeland Security Investigations, and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Kelly S. Karase and Bonnie Glober.
Federal Grand Jury Indicts Man for Attempted Bank Robbery and Bank RobberyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that BERNELL BREAUX, age 57, a resident of New Orleans, Louisiana, was charged in a two-count indictment by a Federal Grand Jury for attempted bank robbery of a Gulf Coast Bank and Trust Company branch and for bank robbery at a Capital One Bank branch.
According to court documents, on or about January 2, 2020, in the Eastern District of Louisiana, BREAUX attempted to rob a Gulf Coast Bank and Trust Company branch in violation of Title 18, United States Code, Section 2113(a). Additionally, on or about January 2, 2020, in the Eastern District of Louisiana BREAUX robbed a Capital One Bank branch of approximately $302.00 in violation of Title 18, United States Code, Section 2113(a).
If convicted, BREAUX faces a maximum term of imprisonment of twenty (20) years, a (3) year period of supervised release and a maximum fine of $250,000 for each count.
U. S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force. Assistant U.S. Attorney Jesse Eshkol is in charge of the prosecution.
Federal Grand Jury Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the January Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Rodney Lavvone Burton. Felon in Possession of Firearm and Ammunition (Superseding Indictment). Burton, 44, of Broken Arrow, is charged with two counts of being a felon in possession of a Colt .357 revolver and 26 rounds of associated ammunition. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Christopher Scott Cole. Aggravated Assault of Federal Officer Resulting in Bodily Injury; Assault Within Territorial Jurisdiction Resulting in Serious Bodily Injury. Cole, 41, of Pryor, is charged with assaulting a federal officer and causing bodily harm. The crime took place at Claremore Indian Hospital. The FBI is the investigative agency.
Luis Eduardo Garcia and Gustavo Garcia. Possession of Methamphetamine With Intent to Distribute. Luis Garcia, 30, and Gustavo Garcia, 22, both of Tahlequah, are charged with possessing with the intent to distribute 500 grams or more a methamphetamine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency.
Regina Faye Holmes. Carjacking. Holmes, 38, of Miami, is charged with taking a 2001 Ford F-150 through the use of force, violence and intimidation with the intent to cause death and serious bodily harm. The Quapaw Marshals and Wyandotte Nation Police are the investigative agencies.
Zaccheaus Ramone Jackson. Theft of Mail by United States Postal Service Employee; Obtaining Mail by Fraud and Deception. Jackson, 26, of Tulsa, is charged with the theft of two monetary bank deposits from a local business that were mailed to the business’ bank in first class mail packages. Count One alleges that on Nov. 25, 2019, when he was employed as a U.S. Postal Service city carrier assistant at the Chimney Hills Annex Post Office, Jackson stole a bank deposit package that had been collected from the business by another U.S. Postal Service carrier. The defendant resigned from his position on Dec. 6, 2019. Jackson is charged in Count Two with obtaining mail by fraud and deception. The second count alleges that on Dec. 9, 2019, Jackson impersonated a city carrier assistant by wearing his old U. S. Postal Service uniform to deceive the employees at the business and steal the monetary bank deposit package. The Office of the Inspector General of the U.S. Postal Service and the Tulsa Police Department are the investigative agencies.
Cory Wayne Kilgore. Distribution and Receipt of a Visual Depiction of a Minor Engaged in Sexually Explicit Conduct. Kilgore, 41, of Owasso, is charged with knowingly receiving and distributing child pornography through electronic means. Kilgore was also convicted of possession and attempted possession of child pornography in the Northern District of Oklahoma in April 2010. The Tulsa Police Department and Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies.
Anthony John Michalski. False Information About Bombs at Airport. Michalski, 64, of Tulsa, is charged with conveying false and misleading information about explosives. On Dec. 24, 2019, Michalski allegedly made a phone call to the Tulsa Police Department Dispatch, stating that a suitcase nuclear bomb would be left in a vehicle at the Tulsa International Airport within the next three hours. Upon investigation, law enforcement found no credible threat. The Tulsa Airport Police Department, Tulsa Police Department, FBI, and Transportation Security Administration are the investigative agencies.
Darren Patrick Reames. Failure to Register as a Sex Offender. Reames, 45, of Tulsa, is charged with failing to register as a sex offender. The Tulsa Police Department and U.S. Marshals Service are the investigative agencies.
Elisa Kaye Sanders. Mail Fraud (2 Counts); Wire Fraud (13 Counts). Sanders, 60, of Tulsa, was a majority owner of the spa named Enhance Skin and Body Medical Spa which was later renamed L’Chaim in 2017. Sanders participated in and oversaw the spa’s purchase, receipt, holding, and administration of drugs and treatment articles used for the treatment of clients, including prescription drugs and devices such as Botox and Juvederm. In count one of the indictment, Sanders is charged with mail fraud. She is alleged to have purchased Botox in 2015 from an unauthorized source in Mumbai, India, which was then shipped to Tulsa. When purchasing the drug, Sanders claimed it was for her own use. The indictment alleges that Sanders actually used the drug on spa clients. In count two, Sanders is also charged with mail fraud for sending altered medical records to a client’s physician. The records were altered to show that Juvederm Ultra Plus XC had been administered to the client when in fact Juvederm Ultra 4 was administered. Juvederm Ultra 3 and 4 are not approved by the Food and Drug Administration for use in the United States. In counts three through ten of the indictment, Sanders is charged with wire fraud related to eight payments made by customers for the Botox and Juvederm received from unauthorized sources. Finally, in counts eleven through fifteen, Sanders is charged with wire fraud related to five payments made to Global Health, for the purchase of Botox from unauthorized sources. Soon after the Food and Drug Administration representative’s warning in 2016, Sanders allegedly directed an individual to purchase the Botox from unauthorized sources and have the drug mailed to the individual’s business. Sanders would later pick up the drug and reimburse the individual with cash. The Food and Drug Administration, Office of Criminal Investigations is the investigative agency.
Kai Lamar Walela. Possession of a Firearm and Ammunition After Conviction of a Misdemeanor Crime of Domestic Violence; False Statement to a Firearms Dealer. Walela, 34, of Tulsa, is charged with possessing a Rock River Arms 5.56 mm caliber rifle and 72 rounds of associated ammunition after a 2018 misdemeanor domestic assault and battery conviction in Tulsa County District Court. Walela was also charged with knowingly making a false statement to Advanced Combat LLC, a licensed firearms dealer, by lying on the ATF Form 4473. On the form, Walela knowingly did not acknowledge that he was previously convicted of misdemeanor domestic violence. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Federal Correctional Officer Pleads Guilty to Bribery IndictmentRead the Press Release
MIAMI, FL - Victor Manuel DeJesus, 47, of Miami-Dade County, a correctional officer at the Federal Correctional Institution (FCI) in Miami, pled guilty today to a 14-count indictment which included charges of conspiracy to defraud the United States and commit bribery, bribery, and other offenses in connection with a scheme to provide contraband items to inmates at the federal prison.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
According to the court record, including the federal indictment, DeJesus and others were charged with conspiring to bribe and bribing DeJesus with money in exchange for providing contraband to inmates within FCI-Miami. From at least as early as December 2018 through September 2019, inmates and those acting on their behalf supplied DeJesus with bribe payments. DeJesus then deposited these monies in his personal bank account. In exchange for these bribe payments, DeJesus used his official position to bring in prohibited items into the prison. DeJesus had inmate co-conspirators distribute the contraband in FCI-Miami.
DeJesus is scheduled to be sentenced by U.S. District Judge Robert N. Scola, Jr. on April 1, 2020 (Case No. 19cr20660).
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI, U.S. Postal Inspection Service, and FCI-Miami in this matter. She thanked the U.S. Department of Justice, Office of the Inspector General for their invaluable assistance. This case is being prosecuted by Assistant U.S. Attorney Alejandra L. López.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.