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27 February 2020
Member of Lightfoot Drug Trafficking Organization Pleads Guilty to Distributing Large Quantities of CocaineRead the Press Release
PITTSBURGH – A former resident of Donora, PA, pleaded guilty yesterday to federal narcotics charges, United States Attorney Scott W. Brady announced today.
Edward Alford II, 32, pleaded guilty to one count of conspiracy to possess with the intent to distribute and distribute 500 grams or more of cocaine in front of United States District Court Judge Mark R. Hornak.
According to information presented to the court, from January 2015 to November 2017, Alford conspired with others to import large quantities of cocaine and marijuana into Western Pennsylvania. Once the narcotics were in Western Pennsylvania, Alford would then resell large quantities of cocaine to customers in Allegheny, Westmoreland and Washington Counties.
The law provides for a mandatory minimum sentence of not less than 10 years in prison and a maximum of life and/or a fine of not more than $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Timothy M. Lanni and Shaun Sweeney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the Indictment in this case.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
May 27 Sentencing Hearing Set in Atchison Clean Air Act CaseRead the Press Release
TOPEKA, KAN. – A federal judge has set a May 27, 2020, hearing for the sentencing of Harcros Chemicals, Inc., and MGP Ingredients Inc., for violating the federal Clean Air Act when a cloud of toxic chlorine gas formed over Atchison, Kan., in 2016, U.S. Attorney Stephen McAllister said.
The hearing is set for 1:30 p.m. in room 403 of the Frank Carlson Federal Building at 444 S.E. Quincy St. in Topeka before U.S. District Judge Daniel D. Crabtree.
“Many people were affected by the release of the gas in Atchison,” said U.S. Attorney Stephen McAllister. “We know that 140 individuals including members of the public, first responders, employees of MGP Ingredients and Harcros Chemicals sought medical attention at the time of the incident.”
“I want everyone to be aware that the sentencing hearing will be open to the public,” McAllister continued.
Both companies have pleaded guilty to violating the Clean Air Act and each has agreed to pay a $1 million fine.
McAllister said that he wants to assure that anyone impacted by the incident is afforded the right to be reasonably heard and not to be excluded from court. Due to time constraints, it may be impractical for each victim to speak at the sentencing hearing. However, anyone who would like to submit a written victim impact statement for the court’s consideration, please email those statements to [email protected] .
For updates and resources on this case, please visit our website: https://www.justice.gov/usao-ks/us-v-mgp-ingredients-inc-et-al
Man Sentenced to Prison for Failing to Register as a Sex OffenderRead the Press Release
A man who failed to register as a sex offender was sentenced on February 26, 2020, to more than four years in federal prison.
Marquette Lamont Lawson, age 48, from Chicago, Illinois, received the prison term after a September 26, 2019 guilty plea to failure to register as a sex offender.
At the guilty plea, Lawson admitted that from May 2017 to February 12, 2018, he knowingly failed to register or update his registration as required by the Sex Offender Registration and Notification Act while he was residing and working in Iowa. Lawson is required to register as a sex offender due to his prior conviction for aggravated criminal sexual abuse, on January 11, 1989, in Cook County, Illinois.
Lawson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Lawson was sentenced to 51 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Lawson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the United States Marshals Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-0071.
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Madison Man Sentenced for 2nd Conviction for Passing Counterfeit CurrencyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Cornelius Stewart, 25, Madison, Wisconsin, was sentenced today by U.S. District Judge William Conley to 36 months in federal prison for conspiring with others to pass counterfeit U.S. currency at numerous merchants in Wisconsin in early 2019. Stewart pleaded guilty to the conspiracy charge on December 13, 2019.
In addition to the prison time for this new conviction, Stewart also received an additional 12-month sentence based upon the revocation of his federal supervision for a prior conviction for passing counterfeit currency. The 12-month sentence will be served consecutive to the 36-month sentence. In February 2017, Stewart and four other co-defendants were convicted of passing counterfeit $100 bills in southern Wisconsin during 2016. Stewart served two years in prison as a result of that conviction, and was released to federal supervision in early 2019.
From March through May 2019, while he was on federal supervision, Stewart again supplied counterfeit currency to four new associates. They passed the counterfeit $100 bills at nearly 80 restaurants and merchants from Hudson, Wisconsin to Beaver Dam, Wisconsin. The group would make small-dollar purchases for which they would present the fake $100 bills in order to receive a large amount of change in legitimate currency from the merchants. His co-conspirators would bring legitimate currency back to Stewart in exchange for more counterfeit bills to pass.
Judge Conley, who had sentenced Stewart for the prior offense, expressed frustration with Stewart’s choice to commit the exact same crime and to do so while on supervised release for his original conviction. In addition to the total sentence of four years, Judge Conley ordered Stewart to pay restitution of $8,294.33 to the victims of his scheme.
The charges in this case were the result of an investigation conducted by the Stoughton, Hudson, Madison, Middleton, and Beaver Dam Police Departments in coordination with the U.S. Secret Service, with the assistance of other police departments and sheriffs’ offices in Wisconsin. The prosecution of the case has been handled by Assistant U.S. Attorney Robert A. Anderson.
Long-Haul Trucker Indicted for Kidnapping and Child Pornography CrimesRead the Press Release
NASHVILLE, Tenn. – February 27, 2020 – Roy Nellsch, 63, of Logan, Alabama, was indicted yesterday by a federal grand jury in Nashville, and charged with kidnapping, possession of child pornography and transportation of child pornography, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Nellsch was transferred from the Montgomery County, Tennessee jail to federal custody earlier today and will make an initial appearance before a U.S. Magistrate Judge later this afternoon.
According to the indictment and documents filed with the Court, on May 22, 2019, Nellsch, a long-haul trucker for more than 40 years, encountered a woman with car trouble on I-24, near Fort Campbell, Kentucky. The woman’s car was out of gas and Nellsch offered to give her a ride to the next exit, which was Exit 1 in Tennessee. The woman accepted the ride and got into the truck and Nellsch proceeded to drive eastbound on I-24. When Nellsch continued past Exit 1 and Exit 4, the woman became scared and started screaming.
Nellsch then pulled over on the exit ramp at Exit 8 and pointed a handgun at the woman and told her he was kidnapping her and was going to rape her. Nellsch ordered the woman into the sleeper part of the cab where he began assaulting her and ripped her dress. During the struggle, the woman was able to turn the gun toward Nellsch and pull the trigger but it did not fire. Nellsch produced another handgun and struck the woman in the head. He then handcuffed the woman, placed a blanket over her, and continued driving along Interstate 24.
As Nellsch was driving, the woman was able to slip one hand out of the handcuffs. She then placed the blanket over Nellsch’s head and placed one arm around his throat while she attempted to steer the truck and honk the horn with the other hand and screamed for him to pull over. Nellsch pulled the truck to the side of road, took the remaining handcuff off the woman and she got out of the truck and flagged down oncoming motorists for help. Nellsch drove away from the scene and was stopped and arrested a short time later in Springfield, Tennessee.
A subsequent search of the truck by law enforcement produced, among other items, two handguns; a stun gun; handcuffs; bags containing numerous pairs of women’s underwear and bras and numerous electronic devices, including a digital camera, laptop computers, cell phones, and media storage devices. A subsequent examination of the electronic devices found over 10,000 images and videos of child pornography, including videos depicting violence against small children and a ledger with lists of names, ages, locations and descriptions of women and children.
If convicted, Nellsch faces up to life in prison.
Agencies participating in this investigation include the FBI; the Department of Homeland Security-Immigration & Customs Enforcement; the Tennessee Bureau of Investigation; and the Clarksville Police Department; with valuable assistance from the Coopertown Police Department and the Springfield Police Department. Assistant U.S Attorney Brooke K. Schiferle is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Local Man Sentenced for Role in West End Drug CaseRead the Press Release
PITTSBURGH - A Pittsburgh man has been sentenced in federal court to three years’ probation with 90 days’ home detention on his conviction of conspiracy to distribute crack cocaine, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Robert Moore, age 36, of Oakhurst Street. Pittsburgh, Pa.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Robert Moore conspired to distribute quantities of crack cocaine.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration jointly with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, for the investigation leading to the successful prosecution of Moore.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Lewiston Man Sentenced to Federal Prison for Multiple OffensesRead the Press Release
COEUR D’ALENE - James Howard Gallaher, 34, of Lewiston, Idaho, was sentenced in U.S. District Court to prison in two separate cases for conspiracy to distribute controlled substances and possession of a stolen firearm, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill sentenced Gallaher in each case to 120 months in federal prison to run concurrently with each other. Upon completion of his prison time, Gallaher was ordered to serve an additional three years of supervised release.
According to court records, Gallaher was arrested in July 2018, after he was found passed out in a stolen vehicle and in possession of a stolen firearm. After his arrest, officers discovered that Gallaher had also been involved in a conspiracy to steal and distribute prescription-controlled substances from the Owl Southway Pharmacy in Lewiston. During that conspiracy, thousands of pills were stolen by a co-conspirator from the pharmacy and then distributed by Gallaher and others to individuals in Lewiston and on the Nez Perce Indian Reservation.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Nez Perce County Sheriff’s Office, Lewiston Police Department, and Nez Perce Tribal Police.
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Last of Three Defendants Involved in Two Armed Robberies Sentenced to More than 17 Years in PrisonRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced the getaway driver in two armed robberies in Tuscaloosa, announced U.S. Attorney Jay E. Town and Bureau of Alcohol Tobacco and Firearms Special Agent in Charge Marcus Watson.
U.S. District Judge L. Scott Coogler sentenced Jemarkus Vonsha Thompson, 25, of York, to 214 months in prison for Hobbs Act Robbery and carrying and brandishing a firearm during and in relation to a violent crime. Thompson was convicted by a federal jury in October 2019.
“Thompson’s involvement in this robbery as the “get-away driver” is treated no differently under our laws than those who placed innocent citizens at gunpoint,” Town said. “Thompson shares responsibility in this crime and he will share a cell in a federal penitentiary for 214 months as a result.”
“ATF’s Crime Gun Intelligence partnerships with the Tuscaloosa Police Department as part of Project Guardian, continue to focus on reducing violent crime by those individuals who commit armed robberies,” Watson said.
“The Tuscaloosa Police Department’s investigators, ATF’s agents, and the U.S. Attorney’s Office all worked very hard on this case,” said Captain Brad Mason, Tuscaloosa Police Department. “I am happy that we are able to bring this to a resolution where a violent criminal will be off of the streets for a long time. We would like to thank the ATF and the U.S. Attorney’s Office for their work on this case. We look forward to working together in the future.”
According to evidence at trial, Thompson was the driver of the suspect vehicle used to rob the Quick Stop Tobacco and Snack and Subway on Old Greensboro Road in Tuscaloosa. Watson and Rodgers robbed the two stores at gun point using an assault style rifle, while Thompson remained in the vehicle. Cell phone tower information placed Thompson at the scene of both crimes. Watson, Rodgers, and Thompson were stopped by Tuscaloosa police minutes after the robberies, where evidence of both crimes were found in their possession, including money, receipts, and the firearms.
Quartaius Deandrew Rodgers, 24, Cuba, Ala., pled guilty in July 2019. In November 2019, U.S. District Court L. Scott Coogler sentenced Rodgers to 95 months in prison for Hobbs Act Robbery and carrying and brandishing a firearm during and in relation to a violent crime.
Ladarius Maurice Watson, 23, Tuscaloosa, pled guilty in July 2019. In January, U.S. District Court Judge L. Scott Coogler sentenced Watson to 180 months in prison for Hobbs Act Robbery and carrying and brandishing a firearm during and in relation to a violent crime.
ATF investigated the case along with the Tuscaloosa Police Department, which Assistant U.S Attorney Brad Felton and Allison Garnett prosecuted.
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.
Kentucky Correctional Officers Sentenced for Beating Handcuffed Detainee and Attempting to Cover up the AssaultRead the Press Release
The Hon. Rebecca Grady Jennings of the U.S. District Court for the Western District of Kentucky sentenced David M. Schwartz, 48, and Donna K. Gentry, 55, former correctional officers at the Louisville Metro Department of Corrections (LMDC), on charges of violating the civil rights of a pretrial detainee, writing false reports, and obstructing justice, for their roles in the assault of an inmate at LMDC and the subsequent attempt to cover up the misconduct.
Schwartz was sentenced to 24 months of incarceration and Gentry was scheduled to eight months of home confinement. Schwartz and Gentry previously pleaded guilty on Oct. 31, 2019. A third officer, Devan Edwards, previously pleaded guilty to assaulting the detainee and failing to intervene to prevent Schwartz from assaulting him.
“These officers violated their oath to defend the laws of our nation,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will vigorously seek to uphold the constitutional rights of inmates and will hold our correctional officers accountable for their actions.”
“The rule of law requires holding everyone to this same standard regardless of position of authority,” said U.S. Attorney Russell Coleman for the Western District of Kentucky. “The conduct here is an aberration among our city’s fine public safety professionals and I am grateful for the KY Public Corruption Civil Rights Task Force and our career federal prosecutors who achieved justice in the result.”
“Corrections officers have extremely difficult jobs; however, our community demands these officers conduct themselves professionally. Through the Kentucky Public Corruption Civil Rights Task Force, FBI Louisville will continue to aggressively investigate any public official that abuses those they have been sworn to protect,” said Special Agent in Charge Robert Brown, FBI Louisville Field Office.
According to documents filed in connection with the guilty pleas, on April 18, 2018, Schwartz, while on duty as a correctional officer, punched a pretrial detainee, T.W., in the face while T.W. had his hands cuffed behind his back, and while he was pleading with Schwartz and posing no threat. Schwartz then wrote a false and misleading report, in which he intentionally omitted the fact that he had used force against T.W., and wrote a citation charging T.W. with felony third-degree assault, in which he knowingly included false information about T.W.’s conduct.
On the same date, Gentry, who was then a sergeant, learned that Schwartz and Edwards had assaulted the detainee and that Edwards had accidentally turned on his body camera and recorded part of that assault. Gentry wrote and filed a false report, in which she included false statements and made material omissions about the excessive force used by Schwartz and Edwards. She then directed Edwards to review her report and provide the same false account in his own report, changing the wording so that it would not be obvious that he had copied from her report.
Edwards will be sentenced on March 5, 2020.
This case was investigated by the Kentucky Public Corruption Civil Rights Task Force which consists of the FBI, Louisville Metro Police Department, the Kentucky office of the Attorney General, and the Kentucky State Police. The case was prosecuted by Assistant U.S. Attorney Amanda Gregory of the Western District of Kentucky and Special Litigation Counsel Christopher J. Perras of the Department of Justice’s Civil Rights Division.
Kansas Clinic Agrees to Pay $775,000 to Resolve False Claims Act AllegationsRead the Press Release
KANSAS CITY, KAN. - Trina Health–Wichita NW, LLC, located in Wichita, Kan., and Jack West of Dallas, Texas, one of the company’s principals, agreed to pay the United States $775,000 to resolve allegations that they violated the False Claims Act by submitting false claims to Medicare and TRICARE.
The company submitted claims to the federal programs for what the company called “artificial pancreas treatment” for diabetes. The United States alleged that from September 2015 through May 2017, Trina and West violated the False Claims Act because the claims were actually for an outpatient insulin infusion regimen that was not medically reasonable or necessary and specifically not covered by the federal programs.
Medicare is a federal health insurance program for people 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease. TRICARE, formerly known as CHAMPUS, is a federal health care system administered through the Department of Defense for uniformed service members, retirees, and their families.
“This office is committed to civil health care fraud enforcement as a key component of the mission of our office,” said United States Attorney Stephen McAllister. “Medicare beneficiaries rightly expect medically appropriate treatment. We will continue working with our law enforcement partners to hold accountable those who defraud federal programs and taxpayers.”
“Medicare enrollees, as well as taxpayers, deserve nothing less than appropriate medical treatments,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Those claiming government health program funds for medically unnecessary services should expect aggressive investigation and legal action.”
“I applaud the Department of Justice and the U.S. Attorney for the District of Kansas for their continued efforts to hold health care providers accountable to the American taxpayer,” said Army Lt. Gen. Ronald Place, director of the Defense Health Agency. “The efforts of the Department of Justice to safeguard the health care benefit for our service members, veterans and their families is commendable. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
The investigation was conducted by the United States Department of Health and Human Services, Office of Inspector General, Office of Investigations, the United States Attorney’s Office for the District of Kansas, and the Defense Criminal Investigative Service. The matter was handled by Assistant United States Attorney Jon Fleenor.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Justice Department Sues Caroline County, Virginia Commissioner of the Revenue for Disability DiscriminationRead the Press Release
The Justice Department filed a lawsuit today alleging that the Caroline County Commissioner of the Revenue in Bowling Green, Virginia, fired a former Master Deputy Commissioner of the Revenue on the basis of her disability, a respiratory impairment, in violation of Title I of the Americans with Disabilities Act (ADA).
The Commissioner of the Revenue allegedly also failed to provide reasonable accommodations for this qualified employee with a disability, as required by Title I of the ADA. According to the complaint, the employee, who had worked for the Commissioner of the Revenue since 1991, needed reasonable accommodations because of her physical impairments, which cause shortness of breath and hoarseness. The lawsuit alleges that instead of providing these reasonable accommodations, the Commissioner of the Revenue terminated the employee.
Title I of the ADA prohibits employers from discriminating against individuals on the basis of disability in employment. These prohibitions include failing to provide reasonable accommodations if the accommodation does not pose an undue hardship to the employer. Reasonable accommodations include acquiring equipment or devices, among other things.
“The Justice Department is committed to enforcing the rights of qualified individuals with disabilities to earn a living and serve their communities,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Nearly 30 years after the ADA was signed into law, every qualified individual with a disability who wants to work should be able to do so without fear of discrimination. It is past time for every covered employer to comply with the law by providing reasonable accommodations for qualified applicants and employees with disabilities if the accommodation wouldn’t pose an undue hardship.”
This matter was based on a referral from the Equal Employment Opportunity Commission’s Norfolk Local Office, which completed the initial investigation of the facts. Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
NOTE: The complaint can be found here.
Jefferson County man admits to cocaine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Cedric Eugene Galloway, of Charles Town, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Galloway, age 50, pled guilty to one count of “Possess with Intent to Distribute Cocaine Base.” Galloway admitted to distributing cocaine base, or “crack,” in May 2019 in Jefferson County.
Galloway faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Ranson Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Jackson Man Sentenced to Almost Five Years in Prison under Project EJECT for Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Travis Cortez Lewis, 30, of Jackson, was sentenced by U.S. District Judge Carlton W. Reeves to 57 months in federal prison, followed by three years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Lewis was also ordered to pay a $1,000 fine.
On May 13, 2018, officers with the Jackson Police Department arrested Travis Cortez Lewis on a pending warrant and found him in possession of a firearm. Upon questioning, Lewis admitted to purchasing the firearm and to being a convicted felon. Lewis has prior convictions in Hinds County for cocaine possession and robbery.
Lewis was charged in a federal criminal indictment with being a felon in possession of a firearm. He pled guilty before Judge Reeves on November 12, 2019.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Lynn Murray.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Two TimesRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to eight months in federal prison.
Jose Cruz-Medio, age 48, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after a December 4, 2019, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Cruz-Medio admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Cruz-Medio was deported in September 2009 and November 2013.
Cruz-Medio’s second deportation was subsequent to a September 2013 conviction in the United States District Court for the Northern District of Iowa for illegal reentry of a deported alien, a felony. Cruz-Medio also has a prior conviction in Wright County, Iowa, in 2009 for operating a motor vehicle while intoxicated. Cruz-Medio most recently came to the attention of immigration agents in September 2019 following his arrest in Allamakee County, Iowa, for operating a motor vehicle while intoxicated. This case is still pending.
Cruz-Medio was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Cruz-Medio was sentenced to eight months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Cruz-Medio is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney 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-123.
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Gettysburg Man Charged with Receipt and Distribution of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Craig M. Killmeyer, age 54, of Gettysburg, Pennsylvania, was charged on February 24, 2020, in a criminal information with exploitation of minors.
According to United States Attorney David J. Freed, Killmeyer is alleged to have received and distributed child pornography between December 2017 and December 9, 2018. The one-count information also includes a notice of the Government’s intent to forfeit all images of child pornography and the electronic devices associated with those images.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Georgia Woman Pleads Guilty to Providing Local Gang Members with Illegal GunsRead 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 Brittany Hutcherson, 28, of Lawrenceville, GA, pleaded guilty before U.S. District Judge John L. Sinatra Jr. to transfer of firearms to an out of state resident. The charge carries a maximum penalty of five years in prison and a fine of $250,000.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that on April 22, 2016, the defendant, a Georgia resident, purchased four firearms from Deaton’s Gun Shop, Inc. in Loganville, Georgia. Between April 22 and July 17, 2016, Hutcherson gave two of the firearms to an individual living in New York State who was a member of the BFL/CBL gang. The defendant knew the individual was a member of the gang and knew it would be unlawful for that individual to possess a firearm in New York State.
On July 17, 2016, Cheektowaga Police Officers conducted a traffic stop of the car Larell Watkins was driving. In the trunk of that vehicle was one of the firearms purchased by Hutcherson on April 22, 2016. Watkins was subsequently convicted for his role in the criminal activities of the BFL/CBL Gang.
On July 29, 2016, another one of the firearms purchased by the defendant was recovered by Buffalo Police Officers from Maurice Rice, another convicted CBL/BFL gang member.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for June 23, 2020, at 2:00 p.m. before Judge Sinatra.
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Former Senior Iraqi Military Officer During the Saddam Hussein Regime has Been Sentenced and DenaturalizedRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama, announces that Colonel Saad Taha Ahmed Yousif al-Qaysy was sentenced to three years of probation and stripped of his United States citizenship after being convicted of lying to obtain his citizenship.
Ahmed was born in Baghdad, Iraq in 1958. He earned a degree in electrical engineering in the early 1980s, and then was conscripted into the Iraqi Army in 1983 during the Iran-Iraq War. After his mandatory service was complete in 1985, Ahmed joined the Iraqi Army as a First Lieutenant in the al-Quds Reconnaissance Brigade. Thereafter, the Army sent Ahmed to a university in Yugoslavia to gain Serbian and Russian language skills.
After returning to Iraq, Ahmed rose up the ranks as an Iraqi Army officer. He served as a Captain in the 10th Armored Division during the Invasion of Kuwait and the Gulf War, and as a Colonel during the 2003 Iraq War. Ahmed’s twenty-year military career ended when Coalition Forces disbanded the Iraqi Army on May 23, 2003. During his final two years in the Iraqi Army, Ahmed was assigned to two public hospitals as a senior military officer. This is significant because the Saddam Hussein regime used public hospitals at this time for dual purposes — treatment centers for the sick and injured, and torture sites for political prisoners and military deserters.
Following the dissolution of the Iraqi Army, Ahmed claimed that he worked for an American military contractor in Abu Ghraib, Iraq. However, the military contractor has no record of Ahmed. Furthermore, a letter of recommendation purportedly from Ahmed’s direct supervisor at the military contractor, which was later submitted to U.S. Citizenship & Immigration Services, had been forged.
After Ahmed’s brother and nephew were killed in sectarian violence in 2006, Ahmed fled from the Baghdad region to northern Iraq and then to Giza, Egypt. While in Egypt, Ahmed and other former senior Iraqi military officers discussed the need to hide the true nature and extent of their military careers in order to be admitted as refugees into the United States.
In 2009, Ahmed applied for refugee status via the United States Refugee Admissions Program. In his application, Ahmed falsely claimed that he only served in the Iraqi Army for a brief period in the 1980s as a conscript during the Iran-Iraq War. Ahmed’s refugee application was approved in January 2010, and he was admitted into the United States as a refugee fleeing the war in Iraq. Thereafter, Ahmed was approved for refugee resettlement and placed in Mobile, Alabama.
In 2011, Ahmed adjusted his status from refugee to legal permanent resident. Once again, Ahmed lied about the nature and extent of his military service, and falsely claimed that he was merely an electrical engineer working on a base in Baghdad from 1987 to 1991. Ahmed further claimed that his military service ended just prior to the Invasion of Kuwait, when, in fact, he was a Captain in the 10th Armored Division during the invasion.Finally, in April 2015, Ahmed applied for United States citizenship. In his citizenship application, Ahmed perpetuated the false narrative that he was simply an electrical engineer forced to join the Iraqi Army during the Iran-Iraq War. Ahmed was officially sworn in as a United States citizen on July 20, 2015 in Atlanta, Georgia.
In November 2019, Ahmed pleaded guilty in the Southern District of Alabama to knowingly and intentionally procuring United States citizenship through fraudulent means, in violation of 18 U.S.C. § 1425(a). By statute, being convicted of this offense results in the denaturalization of the defendant at the time of sentencing.
Following his sentencing and denaturalization on February 21, 2020, Ahmed was taken into custody by immigration officials. An Immigration Judge will now determine whether Ahmed will lose his status as a legal permanent resident, and whether he will be deported to Iraq.
This matter was investigated by FBI-Mobile’s Joint Terrorism Task Force, and was prosecuted by Assistant United States Attorney Christopher Bodnar.
Former Prisoner Transport Officer Charged for Abusing Detainees in His Care and Threatening Them with Retaliation if They Reported His AbuseRead the Press Release
A federal grand jury in Albuquerque, New Mexico, has indicted former prison transport officer Anthony Buntyn, 53, for abusing detainees who were in his care and for threatening the detainees with retaliation if they reported his abuse.
According to the indictment, at the time of his alleged crimes, Buntyn was a prisoner transport officer employed by Prisoner Transportation Services of America (PTS), a company that was hired by local jails and prisons throughout the country to transport people who had been arrested pursuant to out-of-state warrants and needed to be transported back to the states that had issued the warrants. Buntyn was in charge of a PTS transport in March 2017 that stopped in New Mexico during a cross-country trip.
Count One of the indictment charges Buntyn with willfully depriving a detainee of the constitutional right to be free from unreasonable force, in violation of Title 18, United States Code, Section 242. Count Two charges Buntyn with willfully depriving multiple detainees of the constitutional right not to be subjected to conditions of confinement on the transport vehicle that posed a substantial risk of serious harm to the detainees’ health or safety, and resulted in bodily injury to some of them, in violation of Title 18, United States Code, Section 242. Count Three charges Buntyn with knowingly using intimidation and threats against multiple detainees to prevent communication to a federal law enforcement officer of truthful information relating to the commission of a federal crime, in violation of Title 18, United States Code, Section 1512(b)(3).
The indictment alleges that, during the stop in New Mexico, Buntyn repeatedly used a Taser on a handcuffed detainee without legal justification. It further alleges that, while in New Mexico, Buntyn transported the detainees in the PTS van in conditions of confinement that posed a substantial risk of serious harm to their health or safety, and resulted in injury to at least four detainees. Finally, the indictment alleges that Buntyn threatened the detainees who were being transported in the PTS van with retaliation if they reported any of his alleged crimes.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty. If convicted, Buntyn faces a maximum sentence of 10 years of imprisonment on each of the first two charges and a maximum sentence of 20 years on the third charge.
The case was investigated by the FBI Kansas City Field Office and is being prosecuted by Assistant U.S. Attorney Kimberly A. Brawley of the District of New Mexico and Trial Attorneys Zachary Dembo and Laura Gilson of the Justice Department’s Civil Rights Division.
Former Pittsburgh Woman Sentenced to Prison for Heroin ConspiracyRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, PA, was sentenced to federal prison on federal narcotics charges, United States Attorney Scott W. Brady announced today.
Brittany Zietak, 28, previously pleaded guilty to one count of conspiring to possess with the intent to distribute and distribute heroin in front of United States District Court Judge Marilyn S. Horan. Today, Judge Horan sentenced Zietak to a term of 30 months in prison followed by a term of six years’ supervised release.
According to information presented to the court, Zietak conspired with co-defendants Daniel Espy and Vincent Daniele to acquire and distribute large quantities of heroin in Allegheny County. Zietak assisted Espy in acquiring and selling the heroin while Vincent Daniele ran and protected a drug stash house for the conspiracy where the heroin and a firearm were stored. Vincent Daniele was previously sentenced to 66 months in prison for his role in this offense. Daniel Espy has pleaded guilty and is scheduled to be sentenced on June 22, 2020.
Assistant United States Attorneys Timothy M. Lanni is prosecuting this case on behalf of the government.
The Drug Enforcement Agency and the Pittsburgh Bureau of Police Narcotics and Vice Division with assistance from the South Park Police Department, conducted the investigation that led to the Indictment in this case.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Former Kivalina Teacher Arrested and Charged for Child Exploitation CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Jayson Knox, a/k/a “Birdie,” 21, a former substitute teacher at the McQueen School in Kivalina, Alaska, has been charged with attempted sexual exploitation of a child, transfer of obscene material to a minor, and attempted coercion and enticement of a minor. Knox was arrested yesterday, and is currently awaiting his initial court appearance.
According to court documents, Knox became the subject of a federal investigation earlier this month when the Alaska State Troopers contacted the FBI concerning allegations that Knox had engaged in inappropriate conduct with minors in Kivalina. The complaint alleges that Knox used text messages and social media to communicate with 10 minors in Kivalina to send and request sexually explicit images. The complaint also alleges that Knox used text messages and social media to make attempts to set up meetings with some of the minors to engage in sexually explicit conduct.
If the public has any further information regarding Knox’s activities,
please contact Anchorage FBI at (907) 276-4441.
If convicted, Knox faces a mandatory minimum sentence of 10 years to life in federal prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The FBI’s Child Exploitation Task Force and the Alaska State Troopers (AST) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Daniel Doty of the U.S. Attorney’s Office for the District of Alaska.
This case is part of the Rural Alaska Anti-Violence Enforcement Network (RAAVEN) Working Group’s ongoing efforts to increase engagement, coordination, and action on public safety in Alaska Native communities.
The investigation is also part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The charges in the criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Indian Health Services doctor charged with conflict of interestRead the Press Release
GREAT FALLS – A former doctor with Indian Health Services in Browning was indicted on charges of conflict of interest for allegedly using his job to prescribe a diabetes drug from a pharmacy in exchange for kickbacks, U.S. Attorney Kurt Alme said.
An indictment filed on Feb. 26 charges Dr. Arnold Scott Devous, 67, of Billings, with federal medical officer with conflict of interest. If convicted of the most serious crime, Devous faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
An arraignment is set for March 26 in Great Falls before U.S. Magistrate Judge John T. Johnston.
The indictment is merely an accusation. Devous remains innocent until proven guilty.
The indictment alleges Devous used his position as a medical officer for Indian Health Services in Browning to prescribe Farxiga, a Type 2 diabetes medication. Farxiga was not on the IHS formulary and could not be obtained at the facility.
The indictment further alleges that from about December 2015 to June 2016 in Teton and Glacier counties, Devous prescribed Farxiga to patients and entered into a business arrangement with a pharmacy in Choteau in which he, his wife and a person with whom he had been negotiating a prospective job would receive 80 percent of the profits of the sale of Farxiga from the pharmacy. The arrangement resulted in the receipt of about $45,590.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the Office of Inspector General, Office of Investigations, U.S. Department of Health & Human Services.
Pacer case reference. 20-18.
If the above case is of interest to your media organization and the community it serves, we encourage you to monitor its progress 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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Former Harrisburg Businessman Sentenced to 37 Months’ Imprisonment for Defrauding College Faculty UnionRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former owner/operator of a Harrisburg based dental and vision claims processing business, Michael Timothy Buchanan, age 69, currently a resident of Fishers, Indiana, was sentenced to 37 months’ imprisonment followed by three years of supervised release on February 26, 2020, by Senior U.S. District Court Judge Sylvia H. Rambo, for defrauding a trust fund established by the Association of Pennsylvania State College and University Faculties (APSCUF) out of $1,493,629.
According to United States Attorney David J. Freed, Buchanan pleaded guilty in May 2019 to a criminal information charging him with one count of health care fraud. Buchanan executed a scheme to defraud the Pennsylvania Faculty Health and Welfare Fund (The Fund) between 2007 and 2017 by his submission of false, inflated invoices for the services his company, Actuaries, Consultants and Administrators, Inc. (ACA), provided The Fund in connection with the processing of dental and vision claims submitted by members of the APSCUF Union.
The Fund paid ACA $5.20 for each vision claim it processed and $8.10 for each dental claim it processed. Buchanan routinely and artificially inflated the number of claims it allegedly processed for The Fund between 2007 and 2017 that resulted in a $1,493,629 overpayment to ACA.
“Citizens have a right to expect that the hard-earned dollars they contribute towards ever increasing health care costs will be protected by the stewards of those funds,” said U.S. Attorney Freed. “When such funds are misappropriated via fraud, we in federal law enforcement will step in to hold the fraudsters accountable. We are pleased that Judge Rambo’s sentence recognized the serious nature of the defendant’s conduct, and that he has been ordered to pay back what he stole.”
“For a decade, Buchanan orchestrated the overbilling of the faculty union,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division.” “His company deliberately and repeatedly submitted one false claim after the next, resulting in the theft of nearly $1.5 million. With this sentence, he’ll begin to answer for such brazen fraud.”
“In an effort to personally enrich himself, Michael Buchanan stole more than $500,000 from union members’ health benefits through his scheme of submitting inflated invoices to the union trust fund,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General. “We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,”
Judge Rambo ordered Buchanan to pay $1,493,629 in restitution to the Fund, to forfeit his interest in $1,493,629 in U.S. currency, and six Fidelity Brokerage Services retirement accounts. Judge Rambo also ordered Buchanan to commence service of his sentence on April 20, 2020.
The case was investigated by the Harrisburg Office of the FBI and the U.S. Department of Labor, Office of Inspector General. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
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Former CFO of Naugatuck Company Charged with Fraud OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven returned a six-count indictment yesterday charging JOSEPH NADER, 53, of Torrington, with fraud offenses.
As alleged in the indictment, Nader was the Chief Financial Officer (“CFO”) of a company located in Naugatuck. From approximately 2013 to February 2017, Nader defrauded the company by making false representations to the company’s owners concerning the company’s financial position. He also created a false bank statement depicting a balance of over $185,000 in a company account, when the balance was significantly less, and then provided that false bank statement to an outside accounting firm for preparation of the company’s year-end financial statements. Because Nader misrepresented the company’s financial position, the company issued bonuses to him and other employees in amounts they would not otherwise have received had the true financial position of the company been known.
In addition, the indictment alleges that Nader sent false invoices and pack lists to a customer of the company to reflect products purportedly purchased by the customer, causing the customer to pay more than $100,000 for products that had not been purchased or shipped.
It is also alleged that Nader manipulated the company’s payroll system to cause the company to make excessive payments to him.
The indictment charges Nader with six counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count.
This matter has been assigned to U.S. District Judge Michael P. Shea in Hartford. An arraignment date is not scheduled.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Jennifer Laraia and Michael McGarry.
Former Baltimore Mayor Catherine Pugh Sentenced to Three Years in Federal Prison for Fraud Conspiracy and Tax ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Catherine Elizabeth Pugh, age 69, of Baltimore, Maryland, to three years in federal prison, followed by three years of supervised release, on charges of conspiracy to commit wire fraud, conspiracy to defraud the United States, and two counts of tax evasion. Judge Chasanow also ordered Pugh to pay $411,948 in restitution and to forfeit $669,688 including property on Ellamont Road in Baltimore and $17,800 from the Committee to Re-elect Catherine Pugh.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Baltimore City faces many pressing issues, and we need our leaders to place the interests of the citizens above their own,” said United States Attorney Robert K. Hur. “Catherine Pugh betrayed the public trust for her personal gain and now faces three years in federal prison, where there is no parole—ever. Law enforcement will remain vigilant to ensure that our citizens receive the honesty and professionalism they deserve from government officials and will prosecute officials who betray the public’s trust.”
“The defendant's scheme to cheat the taxpayers of Baltimore was as bold as it was brazen, and today's sentence shows that the punishment for those actions is swift and severe,” said Alfred Watson, Assistant Special Agent in Charge of the Baltimore Division of the FBI. “The public has a right to expect and demand honesty and integrity from their public servants and the FBI stands ready with our law enforcement partners to uphold those principals in our system.”
“Today, Catherine Pugh learned the consequences of her actions. When those in positions of trust conspire to defraud the government and engage in corrupt ventures, they must be held accountable,” said IRS-CI Special Agent in Charge Kelly R. Jackson. “We will continue to pursue justice against those whose actions deteriorate the confidence of the citizens that they were elected to serve.”
According to her plea agreement, from approximately 2007 through 2016 Pugh served in the Maryland State Senate, where she served on various legislative committees, including the Senate Health Committee. In 2011, Pugh ran an unsuccessful campaign to be mayor of Baltimore. In September 2015, Pugh again ran for mayor of Baltimore, and won, becoming Mayor on December 6, 2016. Pugh owned Healthy Holly, LLC, a company formed in Maryland on January 14, 2011, and used to publish and sell children’s books she had written. Pugh also owned Catherine E. Pugh and Company, Inc., a marketing and public relations consulting company organized in Maryland in 1997. The principal address for both companies was Pugh’s residence in Baltimore. Pugh was also the sole signatory on the Healthy Holly and Pugh Company bank accounts. Pugh did not maintain a personal bank account, using her business bank accounts for personal and business finances.
Between June 2011 and August 2017, four Healthy Holly books were published, with each book listing “Catherine Pugh” as author. The vast majority of books published by Healthy Holly were marketed and sold directly to non-profit organizations and foundations, many of whom did business or attempted to do business with the Maryland and Baltimore City governments.
From approximately 2011 until December 2016, Gary Brown, Jr. worked as a legislative aide to Pugh. Brown actively campaigned for Pugh’s reelection to the State Senate in 2014 and served as her campaign aide during her 2016 mayoral election campaign. Following Pugh’s election and inauguration as mayor of Baltimore City in December 2016, Brown was hired as the Deputy Director of Special Events in the mayor’s office. In December 2016, Brown was nominated by the Maryland Democratic Central Committee to fill the vacancy in the Maryland House of Delegates created by Pugh’s mayoral victory. However, the Governor withdrew Brown’s nomination after he was indicted for election law violations in January 2017.
Brown was the sole owner and operator of Stricker Abstracting, LLC, and GB Abstracting, LLC, both Maryland companies that purported to be title-abstracting businesses, and GBJ Consulting, LLC, a Maryland consulting business. Brown ran all three companies from his residences in Baltimore. Brown also freelanced as a tax return preparer. Between March 2011 until March 2019, Brown helped Pugh promote and sell the Healthy Holly books. Brown oversaw the transportation and storage of the books, drafted invoices, and corresponded with purchasers. Much of Brown’s work on Healthy Holly occurred during work hours while serving as Pugh’s legislative aide and mayoral staff member. Brown was not an employee of Healthy Holly and received no salary or compensation until approximately mid-2016 when he started to get sales commissions. None of his companies received compensation for services purportedly provided to Healthy Holly.
Wire Fraud
Pugh admitted that from November 2011 until March 2019, she conspired with Gary Brown to defraud purchasers of Healthy Holly books in order to enrich themselves, promote Pugh’s political career, and fund her campaign for mayor. Pugh and Brown admitted that they employed several methods to defraud, including: not delivering books after accepting payments for the books; accepting payments for books to be delivered to a third party on behalf of a purchaser, then converting some or all of the purchased books to their own use without the purchaser’s or third party’s knowledge; and by double-selling books without either purchaser’s knowledge or consent. Pugh stored quantities of fraudulently obtained Healthy Holly books at various locations, including Pugh’s residence, her state legislative offices, her mayoral office, the War Memorial building in Baltimore City, and a public storage locker used by Pugh’s mayoral campaign.
Specifically, Pugh admitted that she sold approximately 20,000 each of Healthy Holly books one, two, and three to the University of Maryland Medical System (UMMS) for $100,000 each. UMMS agreed to the purchase on the condition that it be on behalf of, and for distribution to, school children in the Baltimore City Public School system (BCPS), in part, to further the mission of UMMS’s community outreach program. As part of the agreement Pugh was to deliver the donated books to BCPS.
As detailed in her plea agreement, Pugh did not deliver the full 20,000 Healthy Holly books one, two, and three that UMMS purchased to BCPS, instead keeping some of the books for herself. In addition, Pugh sold to unwitting purchasers copies of Healthy Holly books one, two, and three that had already been sold to UMMS and donated to BCPS. Pugh used Associated Black Charities, a Baltimore-based public charity, to facilitate the resale and distribution of the books to new purchasers. Neither the charity nor the new purchasers knew that Pugh was double-selling the books. Pugh also accepted payment for books that were never delivered to the purchaser.
Conspiracy to Defraud the United States/Tax Evasion
Pugh further admitted that she used the proceeds of the sale of fraudulently obtained Healthy Holly books for her own purposes, including: to fund straw donations to Pugh’s mayoral election campaign; and to fund the purchase and renovation of a house in Baltimore City.
Specifically, Pugh issued Healthy Holly checks payable to Brown, for the purpose of funding straw donations to the Committee to Elect Catherine Pugh. Brown cashed the checks and used the untraceable cash to fund money orders, debit cards, and personal checks in the names of straw donors totaling approximately $35,800. The straw donations purchased with the cash were then deposited into the bank account of the Committee to Elect Catherine Pugh. Pugh wrote additional Healthy Holly checks to Brown totaling $26,300, which he cashed and gave the cash to Pugh. In total, Brown and Pugh cashed out approximately $62,100 of Healthy Holly checks during 2016, all of which went to straw donors or Pugh. To conceal the scheme, Brown and Pugh created the pretense of a legitimate business relationship between Brown and Healthy Holly. In furtherance of the pretense, Pugh and Brown signed an independent contractor agreement between Healthy Holly and GBJ Consulting, and Brown created a business ledger that misrepresented the Healthy Holly checks as payments for promotion services rendered by Brown’s company on behalf of Healthy Holly. At Pugh’s urging, Brown also created bogus GB Consulting invoices and backdated them.
On January 11, 2017, Brown was charged with, and ultimately convicted of, violating Maryland’s election laws for funneling $18,000 of the straw donations to Pugh’s campaign. The Committee to Elect Catherine Pugh issued five checks in the names of three of the straw donors, with a notation in the memo line on each check stating “returned contribution.” In fact, Pugh acknowledges that none of the straw donors received any of the returned money, and instead, at Pugh’s direction, Brown used the money to pay for his legal defense in the state election-law prosecution, a case that had legal implications for Pugh.
Pugh also admitted that she conspired to evade taxes on the income received from the sales of Healthy Holly books. To accomplish this, Pugh concealed from the IRS the fact that she created false business expenses to offset the income she received from the sale of books by issuing Healthy Holly checks to Brown for services and/or products purportedly supplied by his company. Pugh filed false income tax returns for 2015 and 2016, in which she underreported her income. For example, for tax year 2016 Pugh claimed her taxable income was $31,020 and the tax due was $4,168, when in fact, Pugh’s taxable income was $322,365, with an income tax due of approximately $102,444.
Former Baltimore City employee Gary Brown, Jr., age 38, of Baltimore, previously pleaded guilty to conspiracy to commit wire fraud, to two counts of conspiracy to defraud the United States, and to filing a false tax return. Judge Chasanow has not yet scheduled a sentencing date for Brown.
United States Attorney Robert K. Hur commended the FBI and the IRS Criminal Investigation for their work in the investigation and thanked the U.S. Department of Labor - Office of Inspector General, Office of Investigations - Labor Racketeering and Fraud, the Maryland State Prosecutor’s Office, and the Baltimore City Office of Inspector General for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Leo J. Wise, who prosecuted the case.
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Five Defendants Sentenced in South Florida to Prison Terms for Their Roles in Tricare and Medicare Fraud SchemeRead the Press Release
MIAMI – This week, U.S. District Judge Cecilia M. Altonaga sentenced five defendants, including a doctor, to federal prison terms for their roles in a scheme that defrauded Tricare and Medicare out of more than $9.6 million. The defendants tricked beneficiaries into having the federal health care programs pay for medically unnecessary compounded prescription medicines and cancer genetic tests. Their sentences are as follows:
- Dr. Mangala Ramamurthy, 64, of Texas was sentenced to 34 months for her role in the scheme: prescribing compounded pain creams and referring Genetic Cancer tests that were medically unnecessary. Dr. Ramamurthy earlier pled guilty to conspiracy to defraud the U.S. and conspiracy to receive healthcare kickbacks.
- John Scholtes, 56 of Boca Raton, Florida, was sentenced to 97 months for his role in the scheme. Scholtes earlier pled guilty to conspiracy to commit healthcare fraud, conspiracy to defraud the U.S., and conspiracy to receive healthcare kickbacks.
- Anthony Mauzy, 43, of California, was sentenced to 49 months for his role in the scheme. Mauzy earlier pled guilty to conspiracy to commit healthcare fraud.
- Thomas Sahs, 41, of California, was sentenced to 45 months for his role in the scheme. Sahs earlier pled guilty to conspiracy to commit healthcare fraud.
- Rajesh Mahbubani, 46, of Texas, was sentenced to 49 months for his role in the scheme. Mahbubani earlier pled guilty to conspiracy to commit healthcare fraud.
On January 31, 2020, a sixth co-conspirator, Senthil Kumar Ramamurthy, 38, of Texas, was sentenced to 121 months in federal prison for his role in the scheme. S.K. Ramamurthy earlier pled guilty to conspiracy to commit healthcare fraud, conspiracy to defraud the US, and conspiracy to receive healthcare kickbacks. S.K. Ramamurthy is the son of Dr. Ramamurthy.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Cynthia Bruce, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, and SAC Omar Pérez Aybar, Special Agent in Charge for Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
Tricare is the health care program for the U.S. military that pays the health care costs of active and retired military personnel and their families, including the costs of medically necessary prescription medications. Medicare is a federally-funded program that provides free or below-cost health care benefits to certain individuals, primarily the blind, elderly, and disabled.
According to court records, the co-conspirators targeted Tricare for about 10 months, starting in 2014. After making their way onto U.S. military bases, co-conspirators convinced Tricare beneficiaries to sign-up for compounded prescription medications that the beneficiaries did not need. To encourage sign-up, co-conspirators falsely told the beneficiaries that the pharmacies would custom-design their medications or that the medications were free. In fact, the medications were not custom-designed and the patients had co-payments. Compounding pharmacies paid the co-conspirators millions of dollars in kickbacks in exchange for sending the pharmacies expensive prescription orders.
In mid-2015, Tricare scaled back its reimbursements for compounded medications. The defendants turned to Medicare. They paid doctors to refer Medicare beneficiaries to a lab in Georgia for cancer genetic screening testing, even though the doctors had never examined the beneficiaries. As with the compounded medications, the cancer genetic screening tests were not medically necessary.
The owner of the Georgia lab, Minal Patel, 40, was indicted in the Southern District of Florida in September 2019. An indictment is an accusation and a defendant is innocent until proven guilty.
To date, fraudulent compounding pharmacy schemes have caused estimated losses to Tricare in excess of $2 billion. Fraudulent genetic testing lab schemes have caused estimated losses to Medicare of approximately $2.1 billion.
U.S. Attorney Fajardo-Orshan commended the investigative efforts of DCIS and HHS-OIG. Assistant United States Attorneys Kevin J. Larsen, Anna Maria Martinez, and John C. Shipley prosecuted the case. Assistant United States Attorney Daren Grove is handling the asset forfeiture matters.
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.
- Dr. Mangala Ramamurthy, 64, of Texas was sentenced to 34 months for her role in the scheme: prescribing compounded pain creams and referring Genetic Cancer tests that were medically unnecessary. Dr. Ramamurthy earlier pled guilty to conspiracy to defraud the U.S. and conspiracy to receive healthcare kickbacks.
Federal inmate sentenced to additional prison time for using a contraband cell phone to post videos to FacebookRead the Press Release
ATLANTA – Brian J. Wilson, an inmate at the United States Penitentiary in Atlanta (“USP Atlanta”) has been sentenced to an additional three months in prison for using a contraband cell phone to post photographs and videos onto Facebook from his cell at the prison.
“Contraband cell phones are pervasive in prisons and dangerous in the hands of inmates in any prison facility,” said U.S. Attorney Byung J. “BJay” Pak. “Cell phones can, and often do, become a tool used by inmates to run illicit schemes, intimidate people outside of the facility, or as in this case, simply flaunt that they have one. The federal government will continue to combat their use through vigorous prosecutions and the imposition of consecutive prison sentences.”
“By continuing to break the law while incarcerated, Wilson has not learned from his past transgressions,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is using every resource possible to stop the proliferation of contraband cell phones in our prisons and hopefully this additional sentence will send a clear message that their use will not be tolerated.”
According to U.S. Attorney Pak, the charges, and other information presented in court; USP Atlanta is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. The Cell Phone Contraband Act of 2010 made it a crime for federal inmates to possess or use cell phones while incarcerated.
On March 24, 2015, Wilson was sentenced to ten years in prison after sustaining a conviction for possession of a stolen firearm. Since approximately May 3, 2018, Wilson has been an inmate at USP Atlanta.
As an inmate, Wilson possessed a cell phone in USP Atlanta. Between late-May and July 2019, Wilson used his cell phone to post images to and to live stream content onto the social media platform Facebook from his prison cell. In fact, Wilson posted a “selfie” photograph onto his Facebook account of himself holding a cell phone while in his prison cell. Ironically, in a live stream video, Wilson warned people that federal cases have significant prison sentences, lamenting that “federal law ain’t playing” because “the United States will lock you … up” if you are convicted of a federal crime.
Prior to his guilty plea, Wilson was scheduled to be released from custody in the fall of 2022. Under federal law, however, inmates convicted of possessing contraband in prison must receive consecutive (or additional) prison time after their original sentence is completed.
On November 21, 2019, Brian J. Wilson, 32, of Atlanta, Georgia, pleaded guilty to possessing a contraband cell phone in prison. Based on the plea, the Court sentenced Wilson to an additional three months in prison.
The FBI and the Bureau of Prisons investigated this case.
Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Assistant U.S. Attorney Carolyn Cain Burch prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Judge Sentences Asheville Man to Life in Prison for Co-Worker's MurderRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Derek Shawn Pendergraft, 22, of Asheville, has been sentenced to life in prison, for the murder of his co-worker, Sara Ellis. U.S. District Judge Martin Reidinger presided over today’s sentencing hearing.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Neal D. Labrie, Chief Ranger of the Blue Ridge Parkway; and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), join U.S. Attorney Murray in making this announcement.
“When a life is cut short at the hands of another individual, no prison sentence is ever long enough to make things right for the victim’s loved ones,” said U.S. Attorney Murray. “Today’s sentence will not bring back Sara to her family and friends who miss her and think about her every day, but it is my sincere hope that everyone impacted by this heinous crime can find solace in knowing that Sara’s killer will never walk free among us again.”
According to filed court documents and statements made in court, on July 24, 2018, Pendergraft, who worked at the Pisgah Inn, murdered his co-worker, Sara Ellis, during the perpetration of aggravated sexual abuse. The murder occurred on the Blue Ridge Parkway, within the special territorial jurisdiction of the United States, and within the Western District of North Carolina.
On August 26, 2019, Pendergraft pleaded guilty to first degree murder and two counts of aggravated sexual abuse resulting in death. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray commended the National Park Service, the FBI, and the SBI for their investigation of the case, and thanked the Transylvania County Sheriff's Office, the Haywood County Sheriff’s Office, and the Cruso Fire Department for their invaluable assistance.
Assistant U.S. Attorneys Don Gast and John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Executive Office for Immigration Review Proposes Rule on FeesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) submitted to the Federal Register for publication a notice of proposed rulemaking related to fees the agency last raised more than 30 years ago. The fees included are related to filings for appeals to the Board of Immigration Appeals (BIA), applications for suspension of deportation or cancellation of removal, and motions to reopen or reconsider before the immigration courts or the BIA.
The Office of Management and Budget, in its 1993 revision of Circular No. A-25, instructs agencies to conduct biennial reviews of fees. Federal law similarly requires each agency’s Chief Financial Officer to review agency fees biennially. Despite these instructions, it has been 33 years since EOIR last conducted a thorough review of the costs and appropriateness of its fee-based filings.
Following a comprehensive analysis, EOIR identified a need to avoid nearly $45 million dollars in taxpayer subsidization for the fee-based filings by proposing the fee increases. "The proposed fee increases are marginal in terms of inflation-adjusted dollars and would mitigate the significant taxpayer subsidization of these forms and motions. EOIR is long past due for a review of its fee-based filings, especially as its caseload and costs have increased substantially since 1986," said James McHenry, EOIR Director.
The proposed rule would not affect immigration judges’ and the BIA’s discretionary authority to waive a fee upon a showing that the filing party is unable to pay.
The rule proposes the following fee increases:
- Increase the fee for Form EOIR-26 from $110 to $975.
- Increase the fee for Form EOIR-29 from $110 to $705.
- Increase the fee for Form EOIR-40 from $100 to $305.
- Increase the fee for Form EOIR-42A from $100 to $305.
- Increase the fee for Form EOIR-42B from $100 to $360.
- Increase the fee for Form EOIR-45 from $110 to $675.
- Increase the fee for filing a motion to reopen or reconsider with the immigration court from $110 to $145.
- Increase the fee for filing a motion to reopen or reconsider with the BIA from $110 to $895.
— EOIR —
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. EOIR’s mission is to adjudicate immigration cases by fairly, expeditiously, and uniformly interpreting and administering the Nation’s immigration laws. Under delegated authority from the Attorney General, EOIR conducts immigration court proceedings, appellate reviews, and administrative hearings. EOIR is committed to ensuring fairness in all cases it adjudicates.
Dubuque Man Charged with Being a Drug User in Possession of Firearms and AmmunitionRead the Press Release
Daniel Heim, age 32, of Dubuque, Iowa, has been charged with being a drug user in possession of firearms and ammunition. The charge is contained in an Indictment unsealed on February 26, 2020, in United States District Court in Cedar Rapids.
The Indictment alleges that, in December 2019, Heim possessed 14 firearms and thousands of rounds of ammunition while being an unlawful user of marijuana and cocaine.
If convicted, Heim faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years on supervised release following any imprisonment.
Heim appeared today in federal court in Cedar Rapids and was released on bond. Heim’s next appearance for trial is set for April 27, 2020.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Dubuque Police Department, the Dubuque County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-1006.
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Dual U.S.-Mexican Citizen Arrested for Violations of the Kingpin ActRead the Press Release
A dual U.S.-Mexican citizen had her initial appearance in federal court in the District of Columbia Wednesday on charges related to her alleged involvement in five business entities designated by the Department of Treasury’s Office of Foreign Asset Control (OFAC) as providing material support to the international narcotics trafficking activities of the Mexican narcotics trafficking organization known as the Cartel de Jalisco Nueva Generacion (CJNG).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge William Bodner of the Drug Enforcement Administration’s (DEA) Los Angeles Field Division made the announcement.
Jessica Johanna Oseguera Gonzalez, known as “La Negra,” 33, who was residing in Guadalajara, Mexico, was arrested in Washington, D.C. Wednesday pursuant to a warrant stemming from a Feb. 13, 2020, indictment. The charges were unsealed earlier today and she remains in U.S. custody. Her detention hearing is on Monday before U.S. Magistrate Judge Robin M. Meriweather in the District of Columbia.
The five-count indictment alleges that Oseguera Gonzalez, engaged in transactions or dealings in property or interests in property with five business entities, which have been designated by OFAC as Specially Designated Narcotics Traffickers pursuant to the Foreign Narcotics Kingpin Designation Act. The businesses are alleged to provide financial support to, and are subject to the control of, the CJNG. As a result, U.S. persons are generally prohibited from engaging in transactions with them.
The indictment alleges that Oseguera Gonzalez continued her involvement with J&P Advertising S.A. de C.V., JJGON S.P.R. de R.L. de C.V., Las Flores Cabanas, Mizu Sushi Lounge and Operadora Los Famosas S.A. de C.V., and Onze Black, after their designations by OFAC on Sept. 17, 2015.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The DEA’s Los Angeles Field Division led the investigation in conjunction with the Department of Treasury’s Office of Foreign Asset Control. Assistant Deputy Chief Anthony Nardozzi, and Trial Attorneys Brett Reynolds, Kaitlin Sahni, and Cole Radovich of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Drug Trafficker Sentenced to 14 Years in Federal Prison Following Seizure of 90 Pounds of MethamphetamineRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Martel Chavez-Mendoza, age 40, a resident of Yakima, Washington, was sentenced after having pleaded guilty on August 21, 2019, to distributing over 500 grams of methamphetamine. United States District Judge Stanley A. Bastian sentenced Chavez-Mendoza to a fourteen-year term of imprisonment, to be followed by a five-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, law enforcement received information that Chavez-Mendoza was selling methamphetamine and using a location near Sunnyside, Washington, to convert the methamphetamine from liquid to crystal form. During its investigation, the United States Drug Enforcement Administration (“DEA”) determined Chavez-Mendoza distributed a kilogram of methamphetamine to another individual. While conducting surveillance, DEA also observed Chavez-Mendoza and another individual purchasing acetone (commonly used to crystallize methamphetamine) and transporting it to a garage near Sunnyside.
As a result, DEA obtained warrants to search Chavez-Mendoza’s residence, vehicle, and another location. Investigators seized ninety pounds (approximately 44 kilograms) of methamphetamine and two pounds of heroin from Chavez-Mendoza’s vehicle. While searching Chavez-Mendoza’s residence, DEA seized firearms, drug ledgers and over $50,000 in U.S. currency. Investigators also found the remnants of a large-scale methamphetamine crystallization operation at a third location.
United States Attorney Hyslop said, “Ninety-pounds of methamphetamine is the largest single drug seizure in Yakima County in years. Taking this much meth off the streets is a great victory. Nonetheless, illegal drugs should be of significant concern to the community as they are to all law enforcement. The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the DEA and Yakima Police Department who investigated this case. The sentence imposed by the court removes a large-scale drug trafficker from our community and sends a clear message to others who may choose to engage in such criminal activity.”
This case was investigated by the Yakima Resident Office of the U.S. Drug Enforcement Administration and the Yakima Police Department. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Dothan Man Sentenced to More Than 11 Years in Prison for Federal Drug and Gun ChargesRead the Press Release
Montgomery, Alabama – On Wednesday, February 26, 2020, Joshua Drake Howard, a 36-year-old resident of Dothan, Alabama, was sentenced to 140 months in prison for federal drug and firearms related charges, announced United States Attorney Louis V. Franklin, Sr., FBI Special Agent in Charge James Jewell, and Dothan Police Chief Steven Parrish. Following his prison sentence, Howard will be on supervised release for five years.
In November 2019, Howard pleaded guilty to charges of possession with intent to distribute methamphetamine, possession of a firearm in connection with a drug trafficking crime, and possession of a firearm with an obliterated serial number.
According to court records, in February 2018 the FBI and the Dothan Police Department received information that Howard would be travelling to Phenix City, Alabama to pick up methamphetamine and then return to Dothan. On February 22, 2018, officers were observing Howard during his return trip from Phenix City. As he was driving through Headland, Alabama, Howard stopped at a local fast food restaurant, ordered at the drive-through window, and parked to eat his meal. Officers approached him and asked him to get out of the vehicle. When he did, they saw a handgun in the door pocket and found crystal meth in his pants pocket. The officers then searched the truck and found a tactical bag containing more methamphetamine, a digital scale, small empty plastic bags, another handgun, and ammunition.
Just a few months later, on July 13, 2018, Dothan police officers pulled Howard over for a traffic violation and discovered he was in possession of a firearm with an obliterated serial number.
Before announcing his sentence, the judge stated that Howard had a significant criminal history that was concerning and could not be overlooked.
“Selling drugs and carrying guns is a deadly combination that puts us all in danger,” stated U.S. Attorney Franklin. “Dealers like Joshua Howard use firearms to protect their drugs and money, with no regard for the safety of our neighborhoods, our children, or anyone but themselves. My office will continue to work with all of our law enforcement partners to identify, investigate, and prosecute anyone that endangers our communities with this type of reckless, criminal behavior.”
FBI SAC James Jewell stated, “there is nothing but evil in the combination of illegal narcotics and firearms. These people have no issue selling this poison to our children and protecting their drug proceeds with firearms that are often stolen, or as in this case, have an obliterated serial number. The FBI remains committed to assist our state, local, and federal partners in this arena.”
“The Dothan Police Department appreciates the working relationship we have with our federal partners,” said Dothan Police Chief Steven Parrish. “This sentencing was possible because of the collaborative efforts of multiple agencies and shows the value of combining our resources to combat crime.”
The Federal Bureau of Investigation (FBI) and the Dothan Police Department investigated this case, with assistance from the Headland Police Department. Assistant United States Attorney Brandon Bates prosecuted this case.
District Men Found Guilty of Armed Carjacking and Armed Robbery of 18-Year-Old ManRead the Press Release
WASHINGTON – Keith Baham, 20, and David McKinney, 19, of Washington, D.C., were found guilty by a jury today of armed carjacking, armed robbery, first-degree theft, and unauthorized use of vehicle, announced U.S. Attorney Timothy J. Shea. Baham was also convicted of two counts of Possession of a Firearm During a Crime of Violence.
Baham and McKinney were found guilty following a trial in the Superior Court of the District of Columbia in front of The Honorable J. Michael Ryan. The defendants remain detained pending sentencing, which is scheduled for May 1, 2020.
According to the government’s evidence, on February 25, 2019, Baham and McKinney had the 18-year-old victim drive to the 3100 block of Apple Road, N.E. Once there, Baham took out a gun and told the victim to drop everything and to hand over his belongings. While the victim was held at gunpoint, the men took the victim’s wallet, phone, and other personal items before fleeing the scene in the victim’s car.
In announcing the verdict, U.S. Attorney Shea commended the work of those investigating the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Services Coordinator La June Thames; Paralegal Specialists Jessica Pierce, Sabrina Turner, and Debra McPherson; Victim Advocate Jennifer Clark; Supervisory IT Specialist Leif Hickling; and Investigative Analyst William Hamann.
Finally, he commended the work of Assistant U.S. Attorneys Rachel Forman and Kevin Birney, who prosecuted the case.
Department of Justice Files Statement of Interest Defending Photographer on Free Speech ClaimRead the Press Release
The Department of Justice today filed a Statement of Interest in federal court in Kentucky, explaining that a Louisville/Jefferson County Metro Government law, which requires a photographer to photograph same-sex weddings in violation of her religious objections, violates the U.S. Constitution. The United States’ brief explains that the photographer, Chelsey Nelson, is likely to succeed on her claim that requiring her to photograph weddings against her conscience constitutes government-compelled speech that violates the Free Speech Clause of the First Amendment.
“The First Amendment forbids the government from forcing someone to speak in a manner that violates individual conscience,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division. “The U.S. Department of Justice will continue to protect the right of all persons to exercise their constitutional right to speech and expression.”
The law at issue prohibits businesses from discriminating on various bases, including on sexual orientation. Ms. Nelson brought suit against the Louisville/Jefferson County Metro Government and several of its officials, and sought a preliminary injunction preventing the application of this law to require her to photograph same-sex weddings.
The United States’ brief explains that Ms. Nelson is likely to succeed on her Free Speech claim. The Free Speech Clause prohibits the government from requiring people to engage in speech supporting or promoting someone else’s expressive event, such as a wedding ceremony. The brief observes that “[w]eddings are sacred rites in the religious realm and profoundly symbolic ceremonies in the secular one” and thus are plainly “expressive activities” under the Supreme Court’s Free Speech cases. Moreover, the brief explains, photography is an expressive art form, and wedding photography in particular seeks to celebrate and honor the union being photographed. Forcing a photographer, against her conscience, to express her support for a wedding that her faith opposes violates the Constitution.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Defendant Convicted in Connection with Conspiracy to Distribute and Possess with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Travis Christopher Harvey, 41, of West Des Moines, Iowa, was convicted on February 27, 2020, following a jury trial before United States Judge Robert F. Rossiter, Jr. for conspiracy to distribute and to possess with intent to distribute five hundred grams or more of methamphetamine. Sentencing for Harvey is scheduled for May 27, 2020. Harvey is facing a term of imprisonment of at least ten years to life.
In mid-2018, a Drug Enforcement Administration led task force initiated Operation Dog Pound, which was a drug interdiction effort focused on an Omaha, Nebraska, drug trafficking organization. Harvey was identified during the investigation as a distributor in the Des Moines, Iowa, area that was receiving multi-pound shipments of methamphetamine from his Omaha supplier. Investigators utilized cellphone and text messaging intercepts, vehicle trackers, and physical surveillance to establish Harvey’s involvement in the conspiracy.
In all, Operation Dog Pound resulted in ten federal indictments with more than thirty pounds of methamphetamine and $30,000 being seized.
The Drug Enforcement Administration, Nebraska State Patrol, U.S. Customs and Border Protection, Omaha Police Department, Bellevue Police Department, and the U.S. Postal Inspection Service were the investigating agencies.
Convicted Felon Sentenced to More Than Seven Years for Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Andron McKinney (29, Tampa) to seven years and eight months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered McKinney to forfeit the firearm and ammunition used in the offense.
McKinney had pleaded guilty on November 29, 2019.
According to court documents, subsequent to a traffic stop, law enforcement officers searched the car that McKinney had been driving and found a loaded pistol underneath the driver’s seat. McKinney’s fingerprint was found on the magazine inside the pistol. At the time, McKinney had multiple prior convictions for narcotics-related felonies and domestic violence felonies and is therefore prohibited from possessing a firearm or ammunition.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Callan Albritton.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Concord, N.C. Man Pleads Guilty to Unlawful Distribution of Anabolic SteroidsRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced that Daniel John Hodges, 25, of Concord, N.C. appeared in federal court today before U.S. Magistrate Judge David C. Keesler, and pleaded guilty to unlawful distribution of anabolic steroids.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte Office, joins U.S. Attorney Murray in making today’s announcement.
According to plea documents filed in the case and today’s plea hearing, from about September 2018 to September 2019, Hodges did knowingly possess with intent to distribute anabolic steroids, including Testosterone Enanthane, Dianabol, Anavar, and Winstrol. Hodges further admitted to possessing between 20,000 and 40,000 units of anabolic steroids, and maintaining a premises for the the purpose of manufacturing or distributing a controlled substance. Over the course of the investigation, law enforcement also seized an electronic and a manual pill press/tableting machine that belonged to Hodges, often used to manufacture consumable steroid products. According to statements made in court during the plea hearing, Hodges obtained the substances unlawfully from a source of supply in China, and used, among other things, social media to advertise to and conduct transactions with customers.
Following the plea hearing, Hodges was released on bond. The charge of possession with intent to distribute an anabolic steroid carries a maximum prison term of ten years and a $500,000 fine. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney Murray thanked the DEA, the Cabarrus County Sherriff’s Office, and the Cabarrus County District Attorney’s Office for their investigation and coordination of this case.
Assistant U.S. Attorney Mark T. Odulio, of the U.S. Attorney’s Office in Charlotte, is handling the prosecution.
Chinese National Sentenced for Stealing Trade Secrets Worth $1 BillionRead the Press Release
A former associate scientist was sentenced to 24 months in federal prison in federal court today for stealing proprietary information worth more than $1 billion from his employer, a U.S. petroleum company.
In November 2019, Tan pleaded guilty to theft of a trade secret, unauthorized transmission of a trade secret, and unauthorized possession of a trade secret. From June 2017 until December 2018, Tan was employed as an associate scientist at the petroleum company and was assigned to work in a group with the goal of developing next generation battery technologies for stationary energy storage, specifically flow batteries. In his plea agreement, Tan admitted to intentionally copying and downloading the technologies’ research and development materials without authorization from his employer.
“This investigation and prosecution uncovered another instance of China’s persistent attempts to steal American intellectual property,” said Assistant Attorney General for National Security John C. Demers. “The department of justice will continue to confront this type of illicit behavior to safeguard American industry and protect American jobs.”
“American ingenuity inspires advances in science and technology and drives world markets. Nowhere is that more true than in Oklahoma’s energy industry. Unscrupulous individuals like Hongjin Tan seek to steal American trade secrets to take home to China so they can replicate our technology,” said U.S. Attorney Trent Shores for the Northern District of Oklahoma. “United States Attorneys from coast stand ready to combat China’s economic aggression that criminally threatens American industry.”
"American companies invest heavily in advanced research and cutting-edge technology. Trade secret theft is detrimental to our national security and free-market economy. It takes profits away from companies and jobs away from hard working Americans," said Melissa Godbold, Special Agent in Charge of the FBI Oklahoma City Field Office. “The sentencing of Hongjin Tan underscores the FBI’s commitment to protecting our country's industries from adversaries who attempt to steal valuable proprietary information.”
According to the plea agreement, Tan used a thumb drive to copy hundreds of files containing the proprietary information on Dec. 11, 2018. He subsequently turned in his resignation and was escorted from the premises on Dec. 12, 2018. Later that day, he returned the thumb drive, claiming that he had forgotten to do so before leaving his employer’s property. Upon examination, it was discovered that there was unallocated space on the thumb drive, indicating five documents had previously been deleted. Investigators with the FBI searched Tan’s premises and found an external hard drive. They discovered that the same five missing files from the thumb drive had been downloaded to the hard drive. Tan maintained the files on a hard drive so he could access the data at a later date. Further accessing the material would have been financially advantageous for Tan but caused significant financial damage to his Oklahoma employer.
U.S. District Judge Gregory K. Frizzell sentenced Hongjin Tan, 36, a Chinese National and U.S. legal permanent resident, to 24 months in federal prison and ordered the defendant to pay $150,000 in restitution to his former employer. Following his release from prison, Tan will spend three years on supervised release.
Tan was remanded into the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons Facility.
The FBI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted this investigation. Assistant U.S. Attorney Joel-lyn A. McCormick of the Northern District of Oklahoma and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section (CES) are prosecuting the case, with assistance from Trial Attorney Matthew R. Walczewski and Assistant Deputy Chief Brian J. Resler of the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS).
Chinese National Sentenced for Stealing Trade Secrets Worth $1 BillionRead the Press Release
TULSA, Okla. –A former associate scientist was sentenced Thursday in federal court for stealing proprietary information worth more than $1 billion from his employer, a U.S. petroleum company.
In November 2019, Tan pleaded guilty to theft of a trade secret, unauthorized transmission of a trade secret, and unauthorized possession of a trade secret. From June 2017 until December 2018, Tan was employed as an associate scientist at the petroleum company and was assigned to work in a group with the goal of developing next generation battery technologies for stationary energy storage, specifically flow batteries. In his plea agreement, Tan admitted to intentionally copying and downloading the technologies’ research and development materials without authorization from his employer.
“American ingenuity inspires advances in science and technology and drives world markets. Nowhere is that more true than in Oklahoma’s energy industry. Unscrupulous individuals like Hongjin Tan seek to steal American trade secrets to take home to China so they can replicate our technology,” said U.S. Attorney Trent Shores for the Northern District of Oklahoma. “United States Attorneys from coast to coast stand ready to combat China’s economic aggression that criminally threatens American industry.”
“This investigation and prosecution uncovered another instance of China’s persistent attempts to steal American intellectual property,” said Assistant Attorney General for National Security John C. Demers. “The department of justice will continue to confront this type of illicit behavior to safeguard American industry and protect American jobs.”
According to the plea agreement, Tan used a thumb drive to copy hundreds of files containing the proprietary information on Dec. 11, 2018. He subsequently turned in his resignation and was escorted from the premises on Dec. 12, 2018. Later that day, he returned the thumb drive, claiming that he had forgotten to do so before leaving his employer’s property. Upon examination, it was discovered that there was unallocated space on the thumb drive, indicating five documents had previously been deleted. Investigators with the FBI searched Tan’s premises and found an external hard drive. They discovered that the same five missing files from the thumb drive had been downloaded to the hard drive. Tan maintained the files on a hard drive so he could access the data at a later date. Further accessing the material would have been financially advantageous for Tan but caused significant financial damage to his Oklahoma employer.
"American companies invest heavily in advanced research and cutting-edge technology. Trade secret theft is detrimental to our national security and free-market economy. It takes profits away from companies and jobs away from hard working Americans," said Melissa Godbold, Special Agent in Charge of the FBI Oklahoma City Field Office. “The sentencing of Hongjin Tan underscores the FBI’s commitment to protecting our country's industries from adversaries who attempt to steal valuable proprietary information.”
U.S. District Judge Gregory K. Frizzell sentenced Hongjin Tan, 36, a Chinese National and U.S. legal permanent resident, to 24 months in federal prison and ordered the defendant to pay $150,000 in restitution to his former employer. Following his release from prison, Tan will spend three years on supervised release.
Tan was remanded into the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The FBI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted this investigation. Assistant U.S. Attorney Joel-lyn A. McCormick of the Northern District of Oklahoma and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section (CES) are prosecuting the case, with assistance from Trial Attorney Matthew R. Walczewski and Assistant Deputy Chief Brian J. Resler of the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS).
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.
Chambersburg Man Sentenced to 10 Years’ Imprisonment for Sex and Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony “Tony” D’Ambrosio, age 37, of Chambersburg, Pennsylvania, was sentenced on February 26, 2020 by Chief United States District Court Judge Christopher C. Conner to 10 years’ imprisonment followed by five years’ supervised release for sex and drug trafficking.
According to United States Attorney David J. Freed, D’Ambrosio was convicted on December 18, 2017 following a two-week jury trial, of, conspiracy to transport an individual to engage in prostitution, transportation of an individual to engage in prostitution, conspiracy to distribute and possess with the intent to distribute oxycodone, cocaine and marijuana, and distribution and possession with the intent to distribute oxycodone.
D’Ambrosio and his co-conspirators recruited and transported girls and young women between the ages of 17 and 21 years old to engage in commercial sex acts in Pennsylvania, Maryland, Virginia, West Virginia, Florida, Rhode Island and the District of Columbia and frequently paid them in drugs.
D’Ambrosio and his co-defendants, participated in a conspiracy that began in approximately July 2012, and continued to January 2015. D’Ambrosio and the others rented motel rooms and posted “escort” advertisements and photographs on backpage.com from July 2012 through January 2015. D’Ambrosio and the others would take the majority of the money made during the course of the prostitution business, and distributed various drugs to the women, including oxycodone, cocaine and marijuana.
D’Ambrosio’s co-defendants received the following sentences:
- Albert E. “Pipo” Martinez was sentenced to 180 months’ imprisonment;
- Keanu Martinez was sentenced to 120 months’ imprisonment;
- Brandon Hill was sentenced to 37 months’ imprisonment; and
- Armando Delgado was sentenced to time served or approximately 52 months’ imprisonment.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Scott Ford prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Cedar Rapids Felon Pleads Guilty to Federal Crime After Throwing Handguns from Car During Police ChaseRead the Press Release
A man who threw guns from a car during a police chase pled guilty today in federal court in Cedar Rapids.
Jordan Lewis Holmes, age 23, from Cedar Rapids, Iowa, was convicted of one count of being a felon and unlawful drug user in possession of a firearm.
At the plea hearing, Holmes admitted that he possessed two nine millimeter handguns in March 2019, and that at the time he was an unlawful marijuana user and a felon. Court records reflect that in March 2019, The United States Marshals Service was seeking to arrest Holmes a warrant for a parole violation on a prior felony stolen weapon trafficking charge. Officers saw Holmes get into a vehicle and tried to initiate a traffic stop, at which time a chase ensued. During the chase the vehicle in which Holmes was a passenger drove into a church parking lot and two 9 millimeter handguns were thrown from the window where Holmes was seated. At the end of the vehicle chase, the vehicle in which defendant was riding pulled into an apartment complex parking lot, and, without the vehicle being coming to a stop, Holmes and the other three occupants of the vehicle fled on foot. Officers caught up to Holmes and arrested him shortly thereafter.
Officers later retrieved the handguns from the church parking lot. The serial numbers on both firearms had been defaced. Further investigation revealed that two days before the chase Holmes had posted a video of himself holding a handgun that resembled one of the handguns found in the parking lot. Evidence at a prior hearing showed that during a recorded phone call shortly after his arrest, Holmes told the other person that he had to get rid of his “size nine shoes,” indicating that Holmes had thrown the firearms from the moving vehicle.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime.
Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: [list partners here]. For more information about Project Guardian, please see /media/1122011/dl?inline.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Holmes remains in custody of the United States Marshal pending sentencing. Holmes faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case was investigated by the United States Marshals Service and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00124-CJW-MAR.
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Camden, NJ Man Pleads Guilty in Meth ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A New Jersey resident pleaded guilty in federal court on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Jamel T. Brown, 37, of Camden, NJ, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on October 25, 2018, Brown and a co-conspirator possessed with intent to distribute more than 50 grams of methamphetamine.
Judge Gibson scheduled sentencing for June 25, 2020, at 1:00 p.m. The law provides for a maximum sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Brown.
Brothers Charged with Old City Arson Indicted Separately for Tax FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Imad Dawara, 39, of Swarthmore, PA and Bahaa Dawara, 31, of Woodlyn, PA, were charged by Indictment today with conspiracy to defraud the United States by evading the assessment of their income tax liabilities from 2015-2017. This Indictment is the second Indictment charging the brothers in criminal activities. On July 18, 2019, a grand jury returned a 10-count Indictment charging both Dawara brothers with planning and causing the arson of their business at 239-241 Chestnut Street in Philadelphia on February 18, 2018 in order to receive insurance proceeds from the destruction, as well as mail and wire fraud.
Today’s Indictment alleges that the defendants co-owned and operated multiple businesses including B-Side Complex, a nightclub and hookah lounge located at 927 North Delaware Avenue, Noche, and Baba Restaurant, which generated income that they concealed from the IRS by underreporting the gross receipts of the businesses. The defendants are both currently in federal prison because of the July 2019 Indictment for arson and fraud.
“As alleged in this Indictment, the Dawara brothers were engaged in illegal financial schemes associated with the businesses they owned and operated in Philadelphia,” said U.S. Attorney McSwain. “This second Indictment demonstrates my Office’s commitment to investigating and prosecuting all types of harm perpetrated against the government and the community at large. The investigation in this case may have begun with the arson on Chestnut Street, but it didn’t end there. We will pursue every facet of this case until justice has been served.”
If convicted, each defendant faces a maximum possible sentence of five years’ imprisonment, a $250,000 fine, and three years of supervised release.
The case was investigated by Internal Revenue Service, and is being prosecuted by Assistant United States Attorneys Jeanine M. Linehan and Katherine E. Driscoll.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bronx Man Sentenced to 35 Years in Prison for Narcotics and Firearms ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that TERRELL POLK was sentenced today to 35 years in prison in connection with his participation in a crack cocaine conspiracy and related firearms charges. As the evidence at trial established, POLK committed three shootings of drug rivals in the Bronx, New York during August 2015. POLK was convicted following a trial before United States District Judge George B. Daniels, who also imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “As the jury found, Terrell Polk sold large quantities of crack cocaine and resolved disputes over drug territory with terrifying violence. As a result of the skill and determination of our law enforcement partners, Polk will now spend several decades behind bars.”
According to the evidence presented during the trial:
Terrell Polk was a member of a violent drug trafficking organization that sold large quantities of crack cocaine in the Highbridge section of the Bronx. On July 25, 2015, Polk used a .40 caliber pistol to shoot a rival drug dealer at point blank range on University Avenue in the Bronx. The victim of this shooting suffered a fractured leg.
Approximately 10 days later, on August 4, 2015, Polk used a shotgun to shoot two victims inside of a store located on Anderson Avenue in the Bronx. On that occasion, Polk was in a car when he saw one of his victims standing on the sidewalk. Polk stopped the car, jumped out of the driver’s seat with a shotgun, and chased the victim into a store. The victim and an innocent bystander in the store barricaded themselves in the back room to hide from Polk. When Polk was unable to gain access to the room, he fired a shotgun blast through the door, wounding both men. The first victim sustained shotgun wounds to his leg and hand, and the second victim sustained shotgun wounds to his elbow.
A few weeks after these shooting incidents, on August 26, 2015, New York City Police Department (“NYPD”) officers stopped a vehicle driven by Polk, and recovered a loaded gun from the back seat.
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Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and NYPD.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Michael K. Krouse, Nicholas S. Folly, and Max C. Nicholas are in charge of the prosecution.
Branford Man Pleads Guilty to Defrauding Non-Profit Employer and IndividualsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MICHAEL VERZELLA, 41, of Branford, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a fraud offense related to his theft of at least $240,000 from his non-profit employer and numerous individuals serviced by his employer.
According to court documents and statements made in court, Verzella was employed as the Supervisor of Recreation and Operations at Chapel Haven Schleifer Center (“Chapel Haven”), a private, non-profit entity that provides services and residential housing to individuals with developmental and social disabilities. As an employee of Chapel Haven, Verzella possessed a Chapel Haven credit card that was supposed to be used to pay for expenses related to Chapel Haven, including the purchasing of tickets to off-site events that students and community members of Chapel Haven could attend. These events included trips to dances, bingo nights, plays, shopping malls, and sporting events.
In pleading guilty, Verzella admitted that, between January 2012 and February 2018, he used his Chapel Haven credit card to purchase tickets for sporting and entertainment events that he attended with friends and family. He then submitted fraudulent purchase orders for these expenses to the Chapel Haven business office, representing them to be for recreational events for the students and community members of Chapel Haven. He also used the credit card to purchase gift cards for his personal use. Through this scheme, Verzella defrauded Chapel Haven of approximately $175,872.
In addition, Verzella directed Chapel Haven employees he supervised to collect cash from Chapel Haven students and community members to attend in-house events at Chapel Haven, even though the fees for attending such events were already included in the tuition for students and billed by invoice to community members. Verzella kept at least $68,000 in collected cash for himself.
Verzella has agreed to pay total restitution of $450,062.08, which includes expenses Chapel Haven incurred while investigating his criminal conduct.
Verzella pleaded guilty to one count of wire fraud, an offense that carries a maximum term of imprisonment of 20 years. Judge Dooley scheduled sentencing for May 22, 2020.
Verzella was arrested on a criminal complaint on December 20, 2018. He is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan and Maria del Pilar Gonzalez.
Bowling Green Attorney Pleads Guilty to Laundering over $700,000 of Illegal ProceedsRead the Press Release
LOUISVILLE, Ky. – Bowling Green real estate attorney H. Harris Pepper, Jr. entered a guilty plea to money laundering, announced United States Attorney Russell Coleman.
“The rule of law means that everyone is held to the same standard, to include attorneys and influential members of communities like Bowling Green,” said U.S. Attorney Russell Coleman. “This result is the product of a diligent career federal prosecutor and strong investigative work by the IRS.”
“Legal professionals are held to high ethical standards. Harris Pepper, Jr., a trusted real estate attorney, went to great lengths to conceal the true ownership of several real estate investments,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The IRS will take every step to ferret out those who conspire to launder the proceeds earned from illegal sports gambling.”
Pepper was initially charged with the single count in a felony information on February 14, 2020.
According to a plea agreement, from 2008 through 2016, Pepper conspired with Douglas Booth to conceal proceeds of Booth’s illegal sports-gambling operation in Bowling Green, Kentucky. Pepper conspired with Booth to launder proceeds of the illegal gambling operation into real estate investments.
During the course of the conspiracy, Booth purchased a percentage ownership of Hard Six, LLC, by providing $125,000 in cash to Pepper. Hard Six owned real estate and buildings that it leased to Dollar General Store, Inc. Both Pepper and Booth knew the investment from Booth were proceeds from unlawful activity.
In 2010, Booth attempted to purchase a percentage ownership of an apartment complex on Louisville Road in Bowling Green, Kentucky, by providing $90,000 in cash to Pepper. Both men knew portions of the proceeds invested were from illegal activity. Pepper did not document or record Booth as an owner in the apartment complex in order to conceal Booth’s involvement in the transaction.
From 2009 through 2016, Booth purchased and maintained a percentage of ownership of HAAM Investments, LLC, by providing approximately $250,000 in cash to Pepper. HAAM Investments was created for use and purchase of an apartment complex in Russellville, Kentucky. Both Pepper and Booth knew portions of proceeds invested were from unlawful activity. Pepper transferred his ownership of HAAM Investments in July 2009. Pepper did not document or record Booth as an owner in HAAM Investments in order to conceal Booth’s investment in the transaction.
From in or about 2010 through 2016, Booth purchased and maintained an ownership interest in MYP Properties by providing approximately $200,000 in cash and relief from gambling debt to Pepper. MYP Properties was used and created to own and operate apartment complexes. Both Pepper and Booth knew portions of the proceeds invested were proceeds of unlawful criminal activity. Again, Pepper did not document Booth as an owner of MYP Properties in order to conceal his involvement in the transaction.
According to the plea agreement, the United States will seek a sentence of imprisonment which should not exceed 12 months and 1 day of imprisonment. The defendant is free to argue for any sentence, including probation. Sentencing is scheduled for June 11 at 10am in Louisville.
The case is being prosecuted by Assistant United States Attorney Bryan Calhoun. The case was investigated by the Internal Revenue Service, Criminal Investigations, and the Federal Bureau of Investigation.
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Berks County Accountant Pleads Guilty to Orchestrating One of the Largest Pennsylvania-Based Ponzi Schemes in HistoryRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Philip Elvin Riehl, 68, of Bethel Township, Berks County, PA, pleaded guilty to conspiracy and fraud charges related to a Ponzi scheme he operated worth approximately $60 million. The fraud targeted members of the Mennonite and Amish religious communities in Pennsylvania and elsewhere, of which the defendant is a member.
The defendant was charged in January 2020 with one count each of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, and one count of wire fraud. Riehl, a Berks County–based accountant, fraudulently solicited tens of millions of dollars in investments, from his accounting clients and others who are mostly Mennonite or Amish, into an investment program that he operated.
Riehl then diverted funds from the program to Trickling Springs Creamery, LLC, a Franklin County–based creamery of which he was the majority owner. Riehl also fraudulently solicited direct investments in Trickling Springs Creamery. The defendant made material misrepresentations about the safety and security of these investments in his program and about the performance of the program, as well as misrepresentations and omissions about the creamery’s business and financial condition. Trickling Springs Creamery announced it was ceasing operations in September 2019 and filed a bankruptcy petition in December 2019. Investor losses are estimated to be around $60 million, making this one of the largest Pennsylvania-based Ponzi schemes ever.
The entire scheme is what is commonly referred to as “affinity fraud,” which typically involves investment scams that prey upon members of identifiable groups, such as religious or ethnic communities. These types of scams exploit the trust and friendship that exist in groups of people who share common interests or beliefs.
“Riehl’s victims trusted him to handle their investments with honesty and integrity. Instead, he took advantage of their trust based on their mutual religious affiliation,” said U.S. Attorney McSwain. “In some cases, the defendant swindled individuals out of millions of dollars. It is only natural for members of a tightly knit community to want to take care of one another, but Riehl wasn’t concerned with taking care of anyone but himself and he doesn’t deserve the loyalty of his victims now. These types of devastating crimes must be reported, and the guilty parties must be held accountable under the law.”
“Investment fraud can be devastating for its victims, with nest eggs or even life savings lost in a flash,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “When criminals are willing to exploit trusting members of their own church or community in such a way, it adds significant insult to that financial injury. Philip Riehl repeatedly misled his investors, drawing them into a giant Ponzi scheme that swallowed up some $60 million of their money. The FBI is gratified to help hold him accountable for his crimes and bring some measure of justice for his victims.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi. The U.S. Attorney’s Office appreciates the assistance of the Pennsylvania Department of Banking and Securities, and the U.S. Securities and Exchange Commission.
Berkeley County man admits to wire fraud involving Hearts2Heros organizationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Christopher T. Engle, of Bunker Hill, West Virginia, has admitted to wire fraud, U.S. Attorney Bill Powell announced.
Engle, age 30, was the co-owner of Hearts2Heros, a for-profit entity that allegedly was meant to support the military by creating and sending care packages to deployed service members. Hearts2Heros employees solicited contributions and misrepresented that the organization was a charity.
Engle pled guilty today to a one-count information, charging him with “Wire Fraud.” Engle admitted that he defrauded donors in the Northern District of West Virginia, taking their donations for Hearts2Heros and using it for personal use. The fraud included thousands of donors from West Virginia, Pennsylvania, Maryland, and Virginia. The total loss is $286,959.95.
“Using our brave military personnel who are deployed overseas as a prop for a fraud scheme is deplorable conduct. Such conduct also is detrimental to the work of many wonderful community organizations who genuinely support our military. Thanks to the work of the FBI and our prosecution team, the defendant’s greed will now be appropriately dealt with by the court at sentencing,” said Powell.
Engle faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Baltimore Drug Dealer Pleads Guilty to Discharging a Firearm in Furtherance of Drug Trafficking, Resulting in DeathRead the Press Release
Baltimore, Maryland – Cortez Weaver, a/k/a Corty and Tez, age 28, of Baltimore, Maryland, pleaded guilty today to possessing, brandishing, and discharging a firearm in furtherance of a drug trafficking crime, resulting in death of Maurice Finney.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Weaver’s guilty plea, beginning in at least July 2017 Weaver was a member of a drug conspiracy that distributed heroin and crack cocaine in the Abington Avenue area of Baltimore. Christopher Hockaday was also a member of the Abington Avenue drug trafficking organization (DTO). Hockaday became involved in a dispute with a rival DTO over who could sell drugs at a gas station at the intersection of Baltimore Street and Hilton Avenue. As a result of the dispute, on July 14, 2017, a member of the rival drug organization shot and killed Hockaday.
As detailed in his plea agreement, on July 17, 2017, Weaver and another member of the Abington Avenue DTO went to the gas station to retaliate against members of the rival drug organization and encountered Maurice Finney, a/k/a Mitch. Weaver murdered Finney, shooting him in the head at close range with a .40-caliber handgun. Weaver also attempted to murder Victim 2, chasing him across Hilton Avenue while firing multiple shots at him. Meanwhile, Weaver’s co-conspirator attempted to murder Victim 3, shooting him multiple times with a 9mm handgun and causing life-threatening injuries. The shootings were captured on surveillance cameras at the gas station. Afterward, Weaver sent his co-conspirator a text message directing him to “burn them clothes.”
On November 12, 2018, a confidential informant (CI) placed a call to Weaver that was monitored by law enforcement. During the call, the CI made plans to meet Weaver to discuss the potential robbery of a drug stash house. During the conversation, Weaver confessed that he had killed Maurice Finney and described the murder using specific details that were consistent with the surveillance footage and other physical evidence recovered during the investigation. Weaver agreed to carry out the robbery, stating that it was what he had been doing with another member of the Abington Avenue DTO. Weaver showed the CI a .45-caliber firearm and talked about owning other firearms, including a “357” and a “40.”
Unbeknownst to Weaver, the robbery opportunity was a fiction and the drug stash house did not exist. On January 25, 2019, the CI introduced Weaver to an undercover Baltimore Police Officer (the UC), posing as a drug dealer who wanted to rob his source of supply. Weaver had several meetings with the UC to discuss the robbery, including distributing the heroin they planned to steal. In every meeting, Weaver confirmed his desire to commit the robbery and stated that he intended to kill everyone who was guarding the stash location. Weaver brought co-conspirators to two of the meetings who also agreed to assist with the robbery.
On March 7, 2019, Weaver and three co-conspirators met the UC to commit the robbery. Weaver and the co-conspirators were arrested. A search of Weaver recovered a loaded .357 revolver, 11 pin-top vials of suspected cocaine, and a mask. A pair of black gloves was also recovered from the area of the car where Weaver had been sitting. Law enforcement also recovered black masks from the co-conspirators, and from their vehicle they recovered a 9mm handgun loaded with 10 rounds of ammunition, including a round in the chamber, and two pairs of black woolen gloves.
Weaver admitted that from at least July 2017 through March 7, 2019, he conspired to distribute heroin and crack cocaine in Baltimore, and that it was foreseeable to Weaver that the members of the conspiracy would distribute between three and eight kilograms of heroin.
Weaver and the government have agreed that, if the Court accepts the plea agreement, Weaver will be sentenced to between 300 and 360 months in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for May 21, 2020 at 3:00 p.m.
Co-defendants Jamal Jackson, age 20; Kevin Brooks, age 29; and Jermaine Sumpter, age 43, all of Baltimore, previously pleaded guilty to their roles in the robbery conspiracy. Sumpter was sentenced to 37 months in federal prison. Jackson and Brooks are awaiting sentencing.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christina A. Hoffman and Peter J. Martinez, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Bakersfield Attorney Indicted for Scheme to Defraud Her ClientsRead the Press Release
FRESNO, Calif. — On Feb. 20, a federal grand jury returned an eight-count indictment against Heather Christiansen Stanley, 47, of Bakersfield, charging her with five counts of wire fraud, two counts of mail fraud, and one count of attempt to evade and defeat assessment of a tax, U.S. Attorney McGregor W. Scott announced.
The indictment was unsealed following Stanley’s arraignment on Wednesday.
According to court documents, Stanley, a divorce attorney in Bakersfield, represented to her clients that she could hold funds for them in a bank account for safekeeping during the pendency of their divorce proceedings. These monies were her clients’ funds and were not owed to Stanley for legal fees or otherwise. Instead of maintaining and protecting these funds, Stanley would use the funds for her own personal gain. Stanley often would not return the funds or would not return the full amount to her clients. In some instances, when Stanley returned the funds to her clients, she used other clients’ funds to make these payments.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Angela Scott is prosecuting the case.
If convicted, Stanley faces a maximum statutory penalty of up to 20 years in prison and a fine of up to $250,000 for the wire and mail fraud counts and up to five years in prison and a $100,000 fine on the tax evasion charge. 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.