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27 February 2020
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.
# # #
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.
Aurora Man Sentenced for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – An Aurora, Missouri, man has been sentenced in federal court for receiving and distributing child pornography.
Michael Steven Copfer, 38, was sentenced by U.S. District Judge Brian C. Wimes on Monday, Feb. 24, to 12 years and seven months in federal prison without parole. The court also sentenced Copfer to 15 years of supervised release following incarceration. Copfer will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On Sept. 9, 2019, Copfer pleaded guilty to one count of receiving and distributing child pornography. Copfer was identified by law enforcement after Google discovered files containing images of child pornography stored in Copfer’s Google Photos account.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
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."Apex Entrepreneur Pleads Guilty to Defrauding Water Remediation Investors and to Aggravated Identity TheftRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, CHARLES GILBERT MURPHY, 63, of Apex, NC, pleaded guilty to Counts 10 and 13 of an indictment charging him with, among other things, Wire Fraud and Aggravated Identity Theft.
The Indictment alleges that MURPHY was subject to collection efforts by the United States Government arising from a prior federal conviction for Wire Fraud in June of 1999 in this same District. As such, the Indictment alleges that MURPHY caused family members to open bank accounts for him in the name of various companies he controlled, referred to in the Indictment as the “Murphy Entities.” These entities were Toxic Solutions LLC (“Toxic Solutions”), Biological Marine Remediation LLC (“Bio-Remediation”), Bio Marine Remediation LLC (“Bio-Marine”), Bio Separation Systems, LLC (“Bio-Separation”), On-Site Solutions LLC (“On-Site Solutions”), and On-Site Technologies LLC (“On-Site Technologies”).
The Indictment further alleges that MURPHY used the Murphy Entities to obtain money from individuals and entities under false and fraudulent pretenses. According to the Indictment, MURPHY represented that the Murphy Entities performed environmental cleanup activities, such as water remediation. MURPHY purported to offer to various entrepreneurial victims the opportunity to purchase exclusive rights to perform environmental cleanup services in a given geographic area. MURPHY also purported to sell the equipment necessary to perform the cleanup services. In furtherance of the scheme, MURPHY frequently presented false documents to the entrepreneurs to make it appear that funds had been allocated for services to be performed in the geographic area where the victims had purchased the exclusive rights. In reality, the documents justifying the exclusive rights purchase were falsified, and MURPHY took the money without providing all of the equipment purchased.
In furtherance of the scheme, the Indictment further alleges that MURPHY utilized the identities of others to make it appear that his companies were good investments by creating false documents and correspondence in the names of the victims.
Mr. Higdon stated, “This case arose from our Office’s continuing efforts to obtain restitution for victims of the defendant’s prior federal conviction. In the process of doing that, we learned that the defendant was at it again, deceiving a new set of victims with the same old tricks. The defendant will now have to answer to his victims, and to the court, for his actions.”
The maximum punishment for Wire Fraud (18 U.S.C. § 1343) is up to 20 years in prison. The maximum punishment for Aggravated Identity Theft (18 U.S.C. § 1028A) is not less than, nor more than 2 years in prison consecutive to any other term of imprisonment imposed. The sentencing is tentatively scheduled for June, 2020 term of court.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant United States Attorney William M. Gilmore represents the United States.
168 Dogs Rescued in Georgia Pursuant to Federal Search Warrants Related to Suspected Violations of the Animal Welfare ActRead the Press Release
MACON, Ga. — Eleven federal search warrants were executed Wednesday morning related to suspected violations of the federal Animal Welfare Act (AWA) and drug trafficking, resulting in the rescue of 168 canines, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. The United States Department of Agriculture, Office of the Inspector General (USDA-OIG), the Drug Enforcement Administration (DEA) and the U.S. Attorney’s Office for the Middle District of Georgia are leading the investigation, with the assistance of the following agencies:
- U.S. Marshals Service
- The Department of Justice, Environment and Natural Resources Division (ENRD)
- Georgia Bureau of Investigation (GBI)
- Bibb County Sheriff’s Office
- Crawford County Sheriff’s Office
- Houston County Sheriff’s Office
- Merriweather County Sheriff’s Office
- Peach County Sheriff’s Office
- Taylor County Sheriff’s Office
- Webster County Sheriff’s Office
- Byron Police Department
- Fort Valley Police Department
This is an ongoing investigation and any individuals who may be arrested in this investigation are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of competent jurisdiction.
Eleven federal search warrants were executed at the following locations on Wednesday, February 26, 2020:
- 323 Ruby Street, Macon, Bibb County, Georgia
- 16 Spruce Lane, Roberta, Crawford County, Georgia
- 99 Calloway Drive, Roberta, Crawford County, Georgia
- 107 Stanton Circle, Warner Robins, Houston County, Georgia
- 407 Vienna Street, Fort Valley, Peach County, Georgia
- 718 Green Street, Apt. A101, Fort Valley, Peach County, Georgia
- 223 Buckrun Road, Talbotton, Talbot County, Georgia
- 293 Chapman Road, Shiloh, Talbot County, Georgia
- 838 Jeff Hendricks Road, Woodland, Talbot County, Georgia
- 65 Turner Estates Road, Reynolds, Taylor County, Georgia
- 369 Millard Kennedy Road, Preston, Webster County, Georgia
The 168 rescued animals are now in the care of the U.S. Marshals Service. Many of the animals are malnourished with scarring, and some are severely injured and require surgery or other medical intervention. For example, one animal, a female pit bull, was discovered chained with broken legs, malnourished and overbred. An emergency veterinarian was on hand to administer care to the pit bull. At least two dogs had emergency surgery to treat their injuries. For the safety of the animals, the location of their care and housing will not be made public.
“I am incredibly grateful to the law enforcement teams who came together from all over the region to rescue these abused animals as we continue to investigate this alleged dog fighting ring,” said U.S. Attorney Charlie Peeler. “Illegal dog fighting is a barbaric activity. Those who choose to violate the Animal Welfare Act face serious consequences, including federal prison time, where there is no parole.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms, and gambling,” said Special Agent in Charge Jason Williams of the U.S. Department of Agriculture-Office of Inspector General (USDA-OIG). “Animal fighting is an investigative priority for USDA-OIG, and together with the Department of Justice, we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“These search warrants are part of a multi-month, multi-agency investigation into allegations of illegal dog fighting and drug trafficking,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Because of the dedication between all law enforcement agencies involved, the citizens of Middle Georgia are safer and innocent animals have been rescued.”
The federal Animal Welfare Act (AWA) defines “animal fighting venture” as “any event, in or affecting interstate or foreign commerce, that involves a fight conducted or to be conducted between at least two animals for purposes of sport, wagering, or entertainment.” It is illegal to sponsor or exhibit an animal in, attend or cause an individual who has not attained the age of 16 to attend an animal fighting venture. It is illegal to possess, train, sell, buy, transport, deliver or receive an animal for purposes of having the animal participate in an animal fighting venture. It is unlawful to use an instrumentality of interstate commerce for commercial speech for purposes of advertising an animal for use in an animal fighting venture, or for promoting or furthering an animal fighting venture. All of these offenses are felonies punishable by up to five years in prison.
USDA Animal Care, a unit within the Animal and Plant Health Inspection Service, administers the AWA. This federal law establishes requirements concerning the transportation, sale and handling of certain animals and includes restrictions on the importation of live dogs for purposes of resale, prohibitions on animal fighting ventures and provisions intended to prevent the theft of personal pets. Regulations established under the AWA set standards for the humane care and treatment for certain animals that are exhibited to the public, sold for use as pets, used in research or transported commercially. Facilities using regulated animals for regulated purposes must provide their animals with adequate housing, sanitation, nutrition, water and veterinary care, and they must protect their animals from extreme weather and temperatures. The regulations also establish specific requirements that must be met prior to the importation of dogs for resale purposes.
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Julia Bowen Mize is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362. The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at https://www.justice.gov/history.
26 February 2020
Washington woman sentenced for role in meth trafficking ringRead the Press Release
BILLINGS—A Washington woman who admitted trafficking methamphetamine as part of a large drug distribution ring was sentenced today to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Sadie Allen Hackett, 29, of Glenwood, WA, pleaded guilty in October to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the prosecution said Hackett was an active member of a meth trafficking ring led by Joshua Clause. Clause pleaded guilty to drug trafficking and firearms crimes and was sentenced last year to 15 years in prison. In July 2018, a Billings Police officer made a traffic stop in which Hackett was a front seat passenger. The officer became suspicious and eventually deployed a K-9 dog, which indicated for the presence of narcotics. Law enforcement impounded the vehicle and got a warrant to search the car.
Law enforcement found a half-pound of meth and a large amount of cash in the front glove box. Hackett’s purse was found and it contained more meth. The driver said he saw Hackett place items in the glove box, including the money.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the FBI, Billings Police Department, Eastern Montana High Intensity Drug Trafficking Area Task Force and the Montana Highway Patrol.
This case is part of Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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U.S. Attorney’s Office credited with over $169 million collected in civil and criminal actions in fiscal year 2019Read the Press Release
ATLANTA - U.S. Attorney Byung J. “BJay” Pak announced today that the Northern District of Georgia was directly and jointly responsible for over $169 million in criminal and civil collections for Fiscal Year 2019. Included in this amount were funds paid directly to the Northern District of Georgia of $23,963,457.52. Of this amount, $9,510,094.82 was collected in criminal actions and $14,453,362.70 was collected in civil actions. Additionally, the Northern District of Georgia was credited with recovery of an additional $145,287,404.95 for joint investigations worked with other U.S. Attorney’s Offices and components of the Department of Justice.
“Collecting restitution owed to victims of crime and recovering funds stolen from the federal government are among our highest priorities,” said U.S. Attorney Byung J. “BJay” Pak. “We understand that deterring crime and fraudulent conduct requires that we create disincentives through aggressive collection efforts. Here in the Northern District of Georgia, crime doesn’t pay but persons who violate our laws do.”
The largest collection of over $108 million in criminal penalties and civil settlements was the result of a joint investigation by criminal prosecutors and civil attorneys from Northern District of Georgia, along with attorneys at the Department of Justice and the Northern District of Ohio, and law enforcement partners at the Office of Inspector General of the Department of Health and Human Services, the Federal Bureau of Investigations and other federal agencies. Working together, these federal agencies held accountable Avanir Pharmaceuticals, a California-based company. Avanir was alleged to have violated the Anti-Kickback Statute and the False Claims Act by, among other things, paying doctors to become high prescribers of Nuedexta, a drug treating pseudobulbar affect (PBA), to beneficiaries of federal healthcare programs. The government alleged that Avanir implemented a strategy to market Nuedexta in long-term care (LTC) facilities for uses other than PBA that had not been approved by the FDA and were not medically accepted indications as defined by the statutes and regulations governing the Federal health care programs. Under a deferred prosecution agreement, Avanir agreed to pay a monetary penalty in the amount of $7,800,000, and a forfeiture in the amount of $5,074,895. It also agreed to pay $95,972,017 to the United States to resolve allegations under the False Claims Act related to its marketing of Nuedexta.
In another affirmative civil enforcement action, the Northern District of Georgia recovered $750,000 for violations of the False Claims Act from DeKalb County and Worksource DeKalb. This settlement resolved allegations that they failed to ensure federal grant funds were used to benefit those who qualified for the Department of Labor's On-the-Job Training (OJT) Programs and not used to subsidize the wages of County employees who were ineligible for the OJT Programs.
The U.S. Attorney’s Offices, along with the department’s litigating divisions, are also responsible for enforcing and collecting criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. Highlights among the thousands of criminal collections on behalf of victims recovered in 2019 are a full pre-sentence payment of approximately $191,088 in the case of U.S. v. Morgan, an insurance fraud case, and a collection of $116,249 in U.S. v. Howle, a tax fraud case.
Additionally, the Northern District of Georgia, working with partner agencies and divisions, collected $10,603,801.00 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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.
Two Los Angeles Pharmacy Owners Sentenced for Multimillion-Dollar Scheme that Billed Medicare, Cigna $11.8 Million in Fraudulent Medication ClaimsRead the Press Release
Two owners and operators of a Los Angeles pharmacy were both sentenced today to 144 months in prison for their roles in a health care fraud scheme where Medicare and CIGNA were billed more than $11.8 million in fraudulent claims for prescription drugs.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Regional Office, Assistant Director in Charge Paul Delacourt of the FBI’s Los Angeles Field Office, Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation’s (IRS-CI) Los Angeles Field Office and Special Agent in Charge Kris Lyle of the California Department of Justice made the announcement.
Aleksandr Suris, 51, of Sherman Oaks, California, was sentenced to 144 months in prison by U.S. District Judge S. James Otero of the Central District of California, who also ordered Suris to pay restitution of $11,826,444.65 to Medicare and $17,109.39 to CIGNA. The court ordered Suris to make an immediate partial restitution payment of $500,000. Maxim Sverdlov, 45, also of Sherman Oaks, was sentenced to 144 months in prison by Judge Otero, who ordered him to pay $11,826,444.65 in restitution to Medicare. The court ordered Sverdlov to make an immediate partial restitution payment of $500,000.
On Aug. 20, 2019, after an 11-day trial, a jury found Suris guilty of two counts of conspiracy to commit health care fraud, six counts of health care fraud, and one count of conspiracy to commit money laundering. The jury found Sverdlov guilty of one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering.
Suris and Sverdlov were the co-owners and co-operators of Royal Care Pharmacy (Royal Care) in Hollywood. According to the evidence presented at trial, from 2012 to 2015, Suris and Sverdlov fraudulently billed Medicare and CIGNA for prescription medications that Royal Care did not actually purchase or dispense to beneficiaries. In order to hide the fraud, Suris and Sverdlov obtained fake drug invoices from co-conspirators to make it appear as if Royal Care had purchased the medicines for which it had billed Medicare and CIGNA, when it actually had not. Suris and Sverdlov also used these fake invoices to launder the proceeds of the fraud through a co-conspirator. In total, Suris and Sverdlov submitted more than $11.8 million in bogus claims to Medicare for prescription drugs that they never purchased or dispensed to patients.
This case was investigated by HHS-OIG, the FBI, IRS-CI and the California Department of Justice, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. Trial Attorney Robyn N. Pullio and Assistant Chief Daniel J. Griffin of the Fraud Section prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Twenty-Four People in Milwaukee Charged with Heroin and Cocaine Trafficking and Firearms OffensesRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today federal charges against 24 defendants associated with a violent drug trafficking organization in Milwaukee known as the Buffum Meinecke Boys.
The defendants charged in this law enforcement action all reside in Milwaukee and are:
Name
Age
Ramone LOCKE
33
Jesus PUENTES
33
Michael SMITH
37
Victor GONZALEZ
34
Garrell HUGHES
33
Lamar JOHNSON
32
Rico SMITH
29
Michael WILSON
34
Amir LOCKE
34
Joey VAZQUEZ
34
Coury AGEE
33
Louis BATES
31
Tyrone BRYANT
28
Dennis KING
35
Derrell TAYLOR
31
Luis LORENZO
34
Nicholas WELDON
29
Deon BUTTS
38
Maureno BRIGGS
29
Dawan TURNER
18
Jasmaine LINTON
38
Alfonso GREER
20
Juiquin PINKARD
35
Charles MCCOLLUM
32
A federal grand jury returned an indictment charging fifteen of the defendants with conspiring to distribute 1 kilogram or more of heroin, at least five kilograms or more of powder cocaine, at least 280 grams or more of “crack” cocaine, and greater than 50 kilograms of marijuana. If convicted of this conspiracy charge, those 15 defendants face a mandatory minimum term of 10 years in prison. One of the co-conspirators, Victor Gonzalez, was also charged with unlawful possession of 37 firearms. Nine other defendants were charged with distribution of heroin or cocaine or illegally possessing firearms.
On February 25, 2020, federal, state, and local law enforcement officers arrested 17 of these defendants in a coordinated enforcement operation. Throughout the course of the investigation, officers recovered over 900 grams of heroin, over 150 grams of a mixture containing fentanyl, 1.5 kilograms of cocaine, 20 kilograms of marijuana, almost $300,000 in U.S. currency, and 53 firearms.
“Every Milwaukee resident deserves to live in a secure neighborhood, free from groups who wield guns and pedal dangerous drugs,” said United States Attorney Krueger. “This joint law enforcement action is another example of our unwavering commitment to fight gun violence and drug trafficking. I commend the excellent law enforcement cooperation, led by the FBI, to build this case.”
FBI Special Agent in Charge Robert E. Hughes stated “The FBI, with its partners, stand committed to reducing the negative impact of gangs responsible for gun violence, illegal drugs and homicides. Working together, we are dedicated to making Milwaukee a safe place to live, work, and enjoy all our city has to offer.”
“The Milwaukee law enforcement agencies continue to show our resolve by working together to investigate and prosecute violent drug organizations like the Buffum Meinecke Boys. The residents of Milwaukee deserve to live in neighborhoods free of drug related violence, and this investigation is another step to provide that freedom,” said DEA Milwaukee District Office Assistant Special Agent in Charge Paul E. Maxwell, Jr.
The defendants were charged based on joint investigation by law enforcement officers from the Federal Bureau of Investigation’s Southeastern Wisconsin Gang Task Force, the Milwaukee Police Department (MPD), the Milwaukee County Sheriff’s Office, the IRS-Criminal Investigations, and the Drug Enforcement Administration. This case is being prosecuted by Assistant United States Attorneys Laura S. Kwaterski and Kevin C. Knight.
Multiple law enforcement agencies participated in the arrests and execution of search warrants yesterday, including Federal Bureau of Investigation, FBI’s Southeastern Wisconsin Regional Gang Task Force, Milwaukee Police Department, Milwaukee County Sheriff’s Office, Racine Police Department, Racine County Sheriff’s Office, Mt. Pleasant Police Department, FBI’s Central Wisconsin Narcotics Task Force, Marathon County Sheriff’s Office, Lincoln County Sheriff’s Office, Wausau Police Department, Wisconsin Division of Criminal Investigation, FBI’s South Central Wisconsin Regional Gang Task Force, Madison Police Department, Dane County Sheriff’s Office, FBI Chicago Field Office, FBI Minneapolis Field Office, FBI’s Critical Incident Response Group – HRT
Drug Enforcement Administration, Internal Revenue Service, United States Marshal’s Service, St. Francis Police Department, Cudahy Police Department, West Allis Police Department, Wisconsin Division of Criminal Investigation, Bureau of Alcohol Tobacco, Firearms, and Explosives, Department of Homeland Security, North Central HIDTA
This case is being prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
The public is cautioned that an indictment or criminal complaint is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Tomato Plant Corporation and Local Restaurant Owner Plead Guilty in O’Neill Harboring CaseRead the Press Release
United States Attorney Joe Kelly announced that O’Neill Ventures, Inc., a tomato greenhouse and packing plant located in O’Neill, Nebraska, entered a felony plea of guilty in federal court today to conspiracy to harbor undocumented aliens. The plea was entered before United States Magistrate Judge Cheryl R. Zwart. The conspiracy to harbor aliens relates to the earlier prosecution of Juan Pablo Sanchez-Delgado. The plea agreement requires O’Neill Ventures to pay a fine of $400,000 at sentencing. In addition, the corporation must allow Homeland Security Investigations to conduct reviews and inspections of their labor practices and hiring processes during a probationary term as outlined in the agreement. The maximum fine authorized by law for this offense is $500,000.
The corporation admits through the plea agreement to being in a conspiracy to employ and harbor undocumented aliens with Juan Pablo Sanchez-Delgado since at least 2014. At Sanchez-Delgado’s sentencing hearing on November 27, 2019, Chief United States District Judge John M. Gerrard described Sanchez-Delgado’s financial exploitation of the workers at the tomato plant and other agricultural work sites as one of the “most egregious financial crimes,” that the judge had ever seen and proceeded to sentence Sanchez-Delgado to the maximum imprisonment time authorized by law, 120 months in federal prison. Restitution for those workers will be determined by Chief Judge Gerrard at a future date in time.
On August 8, 2018, agents and officers with Immigration and Customs Enforcement executed a search warrant at O’Neill Ventures, Inc., and found that undocumented alien workers comprised approximately 70% of the company’s work force on that date.
United States Attorney Joe Kelly further announced that John Charles Good, car salesman and owner of the La Herradura restaurant in O’Neill, entered a plea of guilty to aiding and abetting Sanchez-Delgado in his pattern and practice of unlawfully employing undocumented aliens, and particularly for employing Magdalena Castro-Benitez, Sanchez-Delgado’s wife, at the La Herradura restaurant. Castro-Benitez, previously deported from the United States to Mexico, returned to the United States illegally before joining her husband’s conspiracy to harbor illegal aliens. The charge carries a possible penalty of up to six months of incarceration, a fine of $3,000 per alien, and a term of supervised release of up to one year that could follow any term of incarceration.
Sentencing for O’Neill Ventures, Inc. and Good is set for May 29, 2020 before Chief Judge Gerrard.
This case was investigated by Immigration and Customs Enforcement and Homeland Security Investigations.
Three Bloomington Men Indicted on Charges of Child Sex Trafficking, Child PornographyRead the Press Release
PEORIA, Ill. – Trial dates in April 2020 have been scheduled for three Bloomington area men who have been indicted in separate cases on charges of child sex trafficking. A federal grand jury returned the indictments on Feb. 19, 2020, and the cases were unsealed as each made their respective initial appearances in federal court.
Teon Williams, 20, of the 800 block of E. Washington St., Bloomington, Ill., is charged with three counts of child sex trafficking for offenses from 2017 through 2019. The case was unsealed on Feb. 25, when Williams was arraigned in federal court. Williams waived detention hearing and was ordered to remain in the custody of the U.S. Marshals Service.
Jahquan Howard, 26, of the 1700 block of Linda Lane, Normal, Ill., is charged with one count of child sex trafficking and one count of production of child pornography for offenses from 2018 through 2019. Howard was also arraigned on Feb. 25. Howard remains in law enforcement custody pending a detention hearing scheduled on Feb. 27.
Andrew Wheeler, 24, of the 500 block of Bradley Lane, Normal, Ill., is charged with three counts of child sex trafficking and one count of child sex trafficking conspiracy for offenses alleged to have occurred in 2019. Wheeler, arraigned on Feb. 21, waived detention hearing and was ordered to remain in the custody of the U.S. Marshals Service.
The indictments are the result of a long-term investigation by the Bloomington Police Department's Criminal Investigation Division into child sex trafficking in central Illinois. As the investigation progressed, assistance was provided by the Federal Bureau of Investigation.
Assistant U.S. Attorney Adam W. Ghrist is representing the government in the prosecution in coordination with the McLean County State’s Attorney’s Office.
If convicted, the statutory penalty for each count of child sex trafficking is 10 years to life in prison; for child pornography, the penalty is 15 to 30 years in prison; and, for child sex trafficking conspiracy, the penalty is five years to life in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
The cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The Department of Justice Creates Section Dedicated to Denaturalization CasesRead the Press Release
The Department of Justice today announced the creation of a section dedicated to investigating and litigating revocation of naturalization. The Denaturalization Section will join the existing sections within the Civil Division’s Office of Immigration Litigation—the District Court Section and the Appellate Section. This move underscores the Department’s commitment to bring justice to terrorists, war criminals, sex offenders, and other fraudsters who illegally obtained naturalization.
While the Office of Immigration Litigation already has achieved great success in the denaturalization cases it has brought, winning 95 percent of the time, the growing number of referrals anticipated from law enforcement agencies motivated the creation of a standalone section dedicated to this important work.
“When a terrorist or sex offender becomes a U.S. citizen under false pretenses, it is an affront to our system—and it is especially offensive to those who fall victim to these criminals,” said Assistant Attorney General Jody Hunt. “The Denaturalization Section will further the Department’s efforts to pursue those who unlawfully obtained citizenship status and ensure that they are held accountable for their fraudulent conduct.”
Denaturalization cases require the government to show that a defendant’s naturalization was “illegally procured” or “procured by concealment of a material fact or by willful misrepresentation . . . .” 8 U.S.C. § 1451. Civil denaturalization cases have no statute of limitations, and the Department has successfully denaturalized numerous categories of individuals who have illegally obtained citizenship, including terrorists and other national security threats, war criminals, human rights violators, sex offenders, and other fraudsters.
National Security/Terrorism
- U.S. v. al Dahab, No. 15-cv-5414 (D.D.C.). Successful civil denaturalization of individual convicted of terrorism offenses in Egypt who admitted recruiting for al Qaeda within the United States and running a communications hub in California for the Egyptian Islamic Jihad terrorist organization. The defendant was denaturalized while in Egypt, stripped of his passport, and prevented from returning to the United States.
- U.S. v. Kariye, No. 15-cv-1343 (D. Or.). Successful civil denaturalization of individual who received military training in a jihadist training camp in Afghanistan; coordinated with Osama bin Laden and other known terrorist leaders; and was associated with terrorist organizations including Makhtab Al-Khidamat, a U.S. government-designated terrorist organization and pre-cursor to al Qaeda. The Office of Immigration Litigation coordinated a settlement that facilitated the defendant’s self-deportation to Somaliland despite his presence on No Fly List.
- U.S. v. Hamed, No. 2:18-cv-0424 (W.D. Mo.). Successful civil denaturalization of an individual convicted of conspiring to illegally transfer more than $1 million to Iraq in violation of federal sanctions and of obstructing internal revenue laws with respect to tax-exempt charities. In furtherance of those crimes, the defendant regularly authorized and transferred tax-exempt funds from a non-profit organization’s accounts in the United States to an account in Jordan controlled by a Specially Designated Global Terrorist.
War Crimes & Human Rights Violators
- U.S. v. Dzeko, No. 18-cv-759 (D.D.C.). Successful civil denaturalization of an individual who was convicted in Bosnia of executing eight unarmed civilians and POWs during the Balkans conflict. Defendant was denaturalized while incarcerated in a Bosnian prison, and thereby prevented from returning to the United States upon his release.
- U.S. v. Yetisen, No. 18-cv-570 (D. Or.). Successful civil denaturalization of an individual who pled guilty in Bosnia of executing six unarmed civilians and POWs during the Balkans conflict.
Sex Offenders
- U.S. v. Omopariola (N.D. Tex.). Successful civil denaturalization of an individual engaged in sexual contact with a 7-year-old family member.
- U.S. v. Lopez, No. 18-cv-00527 (D. Md.). Successful civil denaturalization of an individual who sexually abused a minor victim for multiple years.
- U.S. v. Arizmendi, No. 4:15-cv-454 (S.D. Tex.). Successful civil denaturalization of an individual convicted of multiple sex offenses, including as to students. The defendant was denaturalized while incarcerated in a Mexican prison related to a sex offense, and thereby prevented from returning to the United States upon his release.
Fraudsters & Other Criminals
- U.S. v. Mondino, No. 18-cv-21840 (S.D. Fla.). Successful civil denaturalization of an individual convicted of conspiring to defraud the U.S. Export-Import Bank of more than $24 million, resulting in more than $12 million in unrecovered losses. Because of the denaturalization proceedings, the defendant self-deported.
- U.S. v. Warsame cases, Nos. 17-cv-5023, -5024, -5025, -5027 (D. Minn.). Successful civil denaturalizations of four individuals who fraudulently claimed to be a family to gain admission to the United States through the Diversity Immigrant Visa Program.
Texas man gets nearly 17 years after kilogram of meth found on bus passenger’s thighsRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old former resident of San Antonio has been ordered to federal prison following his conviction for conspiring to possess with the intent to distribute meth, announced U.S. Attorney Ryan K. Patrick.
U.S. District Judge Nelva Gonzales Ramos convicted Lawrence James Espree Oct. 11, 2019, following a one-day trial.
Today, Judge Ramos ordered Espree to serve a total of 200 months in federal prison to be immediately followed by five years of supervised release.
During the trial, the judge heard Espree had hired a drug courier to transport drugs from the Rio Grande Valley to San Antonio. On Feb. 21, 2017, that courier was a passenger on a commercial bus as it approached the Border Patrol checkpoint near Falfurrias. There, authorities found approximately a kilogram of meth strapped to his thighs.
After the courier was arrested, Espree fled the area and evaded arrest until 2019.
During trial, he identified Espree as the person who recruited him to transport the narcotics.
Evidence also established that Espree purchased the courier’s bus ticket using his girlfriend’s email account and his mother’s credit card.
Judge Ramos also heard Espree was leading a narcotics trafficking operation in which he directed another courier. In that incident, authorities also seized an additional kilogram of narcotics from the bus passenger at the Falfurrias checkpoint in January 2017.
Evidence presented during trial also demonstrated that Espree used numerous firearms and body armor to facilitate his narcotics trafficking.
The defense attempted to convince the court he was not involved. Judge Ramos did not believe those claims and convicted him as charged.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Both bus passengers previously pleaded guilty to their roles in the offenses.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol and U.S. Marshals Service. Assistant U.S. Attorney Robert D. Thorpe Jr. and Jeremy Carl Fugate prosecuted the case.
Tennessee Podiatrist Pleads Guilty to Unlawfully Distributing Controlled SubstancesRead the Press Release
A Tennessee podiatrist pleaded guilty today for his role in unlawfully distributing controlled substances.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran of the Middle District of Tennessee, Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration’s (DEA) Louisville Division and Director David B. Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
Timothy Abbott, D.P.M., 62, of Nashville, Tennessee, pleaded guilty to seven counts of unlawful distribution of controlled substances before Chief U.S. District Judge Waverly D. Crenshaw Jr. of the Middle District of Tennessee. Sentencing has been scheduled for Aug. 31, 2020, before Chief Judge Crenshaw.
As part of his guilty plea, Abbott admitted that, on 44 occasions between April 2013 and February 2019, he knowingly distributed to four of his patients hydrocodone, a Schedule II controlled substance, without a legitimate medical purpose and outside the usual course of professional practice.
The DEA and TBI investigated the case with the assistance of the Metropolitan Nashville Police Department. Trial Attorneys William M. Grady and Alexandra Michael of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200 defendants who have collectively billed the Medicare program for more than $15 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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.
Stanly County Man Sentenced to 75 Months in Prison for Firearm and Drug ChargesRead the Press Release
WINSTON-SALEM, N.C. – A Stanly County man was sentenced to federal prison Tuesday, for firearm and drug offenses, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
EARL CHRISTOPHER TERRY, JR., 34,also known as “E” and “E-Magic,” pleaded guilty on October 15, 2019, to one count of possession of ammunition by a previously convicted felon, one count of possession with intent to distribute heroin, and one count of possession with intent to distribute fentanyl. On February 26, 2020, TERRY was sentenced by United States District Judge Loretta C. Biggs to 75 months of imprisonment, followed by three years of supervised release.
On April 18, 2019, the Stanly County Sherriff’s Office executed a search warrant at TERRY’s Badin, N.C., residence, finding $9,212 in cash and several dozen rounds of ammunition. In the woods across from the residence, deputies found a Smith & Wesson model M&P 40, .40-caliber handgun, next to bag containing heroin and fentanyl. Analysis later showed that TERRY’s DNA was on the handgun. Because TERRY had a prior felony conviction in Stanly County for three counts of the felonious Indecent Liberties with a Child, he could not possess a firearm or ammunition under federal law. TERRY was arrested on state charges but released on bond. On May 7, 2019, the Stanly County Sheriff’s Office received additional information about TERRY and narcotics, and again executed a search warrant on his residence, finding additional heroin and fentanyl.
Judge Biggs also ordered forfeiture of the handgun and ammunition found in the woods across from TERRY’s residence.
This case was investigated by the Drug Enforcement Administration, Stanly County Sheriff's Office, Richland County (South Carolina) Sheriff's Office, and the Bureau of Alcohol, Tobacco, Firearms, & Explosives, with the assistance of the District Attorney's Office for Stanly and Montgomery Counties. The case was prosecuted by Assistant United States Attorneys Eleanor T. Morales and Craig M. Principe for the Middle District of North Carolina.
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Springfield Sex Offender Sentenced for Failing to RegisterRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for his fourth conviction of failing to register as a sex offender.
Terry Lee Holmes, 66, was sentenced by U.S. Chief District Judge Beth Phillips to two years and nine months in federal prison without parole. Holmes will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On Oct. 10, 2019, Holmes pleaded guilty to failing to register as a sex offender. According to court documents, Holmes has failed to register and follow the registration laws since his release from state prison in Illinois, where he served 20 years for aggravated criminal sexual assault. For more than 14 years, he has disregarded his registration requirements. Holmes failed to register even after he was repeatedly convicted for failing to register as a sex offender.
Holmes was located by a deputy marshal, who learned he was living near an elementary school playground. He has never registered in the state of Missouri as a sex offender.
Holmes has prior felony convictions for the aggravated sexual assaults of two victims, a 3-year-old and a 7-year-old child, and three prior felony convictions (in Illinois and Arkansas) for failing to register as a sex offender.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the U.S. Marshals Service.
Springdale Man Sentenced to 20 Years in Federal Prison for Bank RobberyRead the Press Release
Fort Smith, AR – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Jaime Leonel Reinosa-Salguero, of Springdale, Arkansas, was sentenced to 240 months in federal prison on one count of Bank Robbery and one count of Use of a Firearm During and in Relation to a Crime of Violence. The Honorable P.K. Holmes III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, Reinosa-Salguero entered the Arvest Bank in Alma at approximately 10:38 a.m. on May 29, 2019. He approached the teller and demanded money while brandishing a firearm. The teller placed a large amount of currency into Reinosa-Salguero’s backpack. Reinosa-Salguero then fired one round from his handgun directly over the teller’s head and the bullet impacted the north wall near the ceiling. Reinosa-Salguero then fled the bank. A short time later, Reinosa-Salguero was located traveling northbound on Interstate 49. When Arkansas State Police initiated a traffic stop and ordered him to exit the vehicle, Reinosa-Salguero refused and fled, reaching speeds in excess of 100 m.p.h. During the pursuit, Reinosa-Salguero fired multiple rounds at the trooper who returned fire and struck Reinosa-Salguero. At approximately 11:12 a.m., the trooper performed a pursuit intervention technique causing Reinosa-Salguero’s vehicle to crash near the 55 mile marker. A subsequent search of the vehicle and surrounding area revealed the firearm used in the robbery, the money taken from the bank, and 15 rounds of ammunition. Arvest Bank’s deposits were insured by the Federal Deposit Insurance Corporation.
Reinosa-Salguero was indicted by a federal grand jury in June of 2019 and entered a guilty plea in October of 2019.
The investigation was conducted by the Alma Police Department, Arkansas State Police and FBI. Assistant United States Attorney David Harris is prosecuting the case for the United States.
Singaporean Shipping Company Convicted for Concealing Illegal Discharges of Oily WaterRead the Press Release
Unix Line PTE Ltd., a Singapore-based shipping company, pleaded guilty in federal court today to a violation of the Act to Prevent Pollution from Ships.
Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney David L. Anderson of the Northern District of California and U.S. Coast Guard Investigative Service Special Agent in Charge Kelly S. Hoyle made the announcement.
In pleading guilty, Unix Line admitted that its crew members onboard the Zao Galaxy, a 16,408 gross-ton, ocean-going motor tanker, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water without the use of required pollution-prevention equipment, during the vessel’s voyage from the Philippines to Richmond, California.
According to the plea agreement, Unix Line is the operator of the Zao Galaxy, which set sail from the Philippines on Jan. 21, 2019, heading toward Richmond, California, carrying a cargo of palm oil. On Feb. 11, 2019, the Zao Galaxy arrived in Richmond, where it underwent a U.S. Coast Guard inspection and examination. Examiners discovered that during the voyage, a Unix Line-affiliated ship officer directed crew members to discharge oily bilge water overboard, using a configuration of drums, flexible pipes, and flanges to bypass the vessel’s oil water separator. The discharges were knowingly not recorded in the Zao Galaxy’s oil record book.
Unix Line’s sentencing hearing is scheduled for March 20 before U.S. District Court Judge Jon S. Tigar in Oakland, California.
Senior Trial Attorney Kenneth Nelson of the Environmental Crimes Section, with the assistance of Kay Konopaske and Katie Turner, Assistant U.S. Attorney Katherine Lloyd-Lovett and Special Assistant U.S. Attorney Andrew Briggs of the Northern District of California are prosecuting the case. The prosecution is the result of a year-long investigation by the Coast Guard Investigative Service and the Investigations Division of Coast Guard Sector San Francisco.
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.
Singapore Shipping Company Pleads Guilty to Concealing Discharge of Oily WasteRead the Press Release
OAKLAND – Unix Line PTE, Ltd., a Singapore-based shipping company, pleaded guilty in federal court today to a violation of the Act to Prevent Pollution from Ships. The plea was received by the Honorable Jon S. Tigar, U.S. District Judge.
United States Attorney David L. Anderson, Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division, and U.S. Coast Guard Investigative Service Special Agent in Charge Kelly S. Hoyle made the announcement.
In pleading guilty, Unix Line admitted that its crew members onboard the Zao Galaxy, a 16,408 gross-ton, ocean-going motor tanker, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water without the use of required pollution-prevention equipment, during the vessel’s voyage from the Philippines to Richmond, Calif.
According to the plea agreement, Unix Line is the operator of the Zao Galaxy, which set sail from the Philippines on January 21, 2019, heading toward Richmond, carrying a cargo of palm oil. On February 11, 2019, the Zao Galaxy arrived in Richmond, where it underwent a U.S. Coast Guard inspection and examination. Examiners discovered that during the voyage, a Unix Line-affiliated ship officer directed crew members to discharge oily bilge water overboard, using a configuration of drums, flexible pipes, and flanges to bypass the vessel’s oil water separator. The discharges were knowingly not recorded in the Zao Galaxy’s oil record book.
On October 24, 2019, a federal grand jury indicted Unix Line. On February 19, 2020, Unix Line was charged by superseding information with one count of violating the Act to Prevent Pollution from Ships, 33 U.S.C. § 1908(a). Under the plea agreement, Unix Line pled guilty to violating the Act to Prevent Pollution from Ships.
Judge Tigar scheduled Unix Line’s sentencing hearing for March 20, 2020, at 9:30 a.m. in Oakland. The maximum statutory penalty for a violation of the Act to Prevent Pollution from Ships is six years’ imprisonment and a fine of twice the gross gain or loss derived from the offense. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is being handled by Assistant United States Attorney Katherine Lloyd-Lovett and Special Assistant United States Attorney Andrew Briggs of the Northern District of California and Senior Trial Attorney Kenneth Nelson of the Environmental Crimes Section, with the assistance of Kay Konopaske and Katie Turner. The prosecution is the result of a year-long investigation by the Coast Guard Investigative Service and the Investigations Division of Coast Guard Sector San Francisco.
Rawlins Doctor Pleads Guilty to Unlawful Distribution of Prescription Pain PillsRead the Press Release
Dr. DAVID RAY CESKO, 66, of Rawlins, Wyoming pleaded guilty on February 26, 2020 in U.S. District Court in Cheyenne to multiple charges that, as a physician, he unlawfully distributed controlled substances, primarily opiates and benzodiazepines, to his patients.
Cesko was charged by a Wyoming federal grand jury in March of 2019 in a thirty count indictment following a lengthy, collaborative investigation by the Wyoming Division of Criminal Investigation and the Drug Enforcement Administration. The charges alleged that Cesko had, without a legitimate medical purpose and outside the course of professional practice, unlawfully prescribed pain killers and other controlled substances to multiple patients. At the hearing today, pursuant to a plea agreement, Cesko pleaded guilty to twenty of the original charges, including charges that he unlawfully prescribed codeine cough syrup and opiates to minor, female patients, and, on several occasions, that he unlawfully prescribed opiates to a pregnant minor.
Cesko is scheduled to be sentenced on May 13th in U.S. District Court. He faces the possibility of decades in prison. As part of the plea agreement Cesko also agreed to forever relinquish his medical license and prescription authority. Judge Scott W. Skavdahl presided over the change of plea proceedings and Assistant United States Attorney Stuart S. Healy III represents the government.
Post Falls Women Sentenced to Ten Years for Murder for Hire PlotRead the Press Release
COEUR D'ALENE - Katrina (Katie) Lynn Danforth, 32, of Post Falls, Idaho, was sentenced in U.S. District Court to 120 months in federal prison for use of interstate commerce facilities in commission of murder for hire, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also ordered Danforth to pay a $1,000 fine and serve three years of supervised release following her prison sentence. Danforth pleaded guilty to the charge on August 6, 2019.
According to court records, Danforth admitted that in October 2018 she agreed to pay a “hitman” to murder someone. During October and November 2018, she met in person with the hitman, called him on the phone and mailed him a thank you card with a $2,500 cash down payment. The hitman was actually an undercover police officer and Danforth was arrested. At the sentencing hearing, the United States played a recording of Danforth’s conversation with the hitman. Danforth could be heard describing how she wanted to make sure the man was dead and his body was found. Danforth has remained in custody since her arrest in December 2018.
This case was investigated by the North Idaho Violent Crime Task Force (NIVCTF). The NIVCTF is a FBI sponsored task force comprised of law enforcement from the Kootenai County Sheriff’s Office, Post Falls Police Department, Idaho Department of Correction, and Homeland Security Investigations.
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Physician Charged for Alleged Role in an over $120 Million Health Care Fraud and Money Laundering Conspiracy Involving Sponsorship of Ultimate Fighting Championship Hall of FamersRead the Press Release
A physician who from 2016 to 2017 was the top prescriber of oxycodone 30 mg in Michigan was charged in a superseding indictment unsealed today with an over $120 million health care fraud and money laundering scheme that involved the alleged medically unnecessary distribution of over 2.2 million dosage units of controlled substances and the administration of medically unnecessary injections that resulted in patient harm.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Francisco Patino, 65, of Wayne County, Michigan, was charged in the superseding indictment with one count of conspiracy to commit health care fraud and wire fraud, one count of conspiracy to commit money laundering and one count of money laundering. These charges are in addition to the two counts of health care fraud and one count of conspiracy to defraud the United States and pay and receive health care kickbacks that was charged in the initial indictment. The case is pending before U.S. District Judge Denise Page Hood of the Eastern District of Michigan. Trial has been scheduled to begin on April 7 before Judge Hood.
The superseding indictment alleges the laundering of the proceeds of the health care fraud scheme to falsely portray the defendant as a legitimate doctor through the publication of a diet book and plan described as the “next Atkins,” paid-for appearances on a nationally syndicated television show, and the sponsorship of boxers, cagefighters and prominent Ultimate Fighting Championship (UFC) world champions and hall of famers.
The superseding indictment alleges that Patino owned, controlled and operated numerous pain clinics and laboratories in Michigan – including Global Quality Inc., RenAMI, FDRS and Patino Laboratories – and was the top prescriber of Oxycodone 30 mg in Michigan from 2016 to 2017. As alleged in the superseding indictment, from 2008 until his arrest in 2018, Patino induced patients to come to his clinics by offering unnecessary prescriptions for addictive opioids, of which he ultimately prescribed over 2.2 million dosage units of medically unnecessary controlled substances, including fentanyl, oxycodone and oxymorphone. Patino prescribed these opioids to Medicare beneficiaries, some of whom were addicted to narcotics. Some of these opioids were resold on the street, the superseding indictment alleges. Fentanyl is one of the most potent opioids available for human use.
According the superseding indictment, Patino forced patients to submit to unnecessary and sometimes painful back injections and other procedures in exchange for the opioid prescriptions as part of a scheme to defraud Medicare of over $120 million. The superseding indictment alleges that Patino persisted with these unlawful practices even after Medicare informed him that the injections violated Medicare’s rules and after Patino entered into a consent order with the State of Michigan that his prescription of opioids “constitute[d] a violation of the public health code.”
Patino also ordered unnecessary urine drug testing in exchange for illegal kickbacks, the superseding indictment alleges. Patino was aware that his ownership structure and kickbacks were a violation of law and authored emails acknowledging that such ownership constituted a “violation of the Stark and Anti-Kickback laws” and attempted to conceal and disguise the ownership structure and scheme in order to keep himself “out of Federal Prison & having all our assets seized to pay a 15 million dollar fine.”
The superseding indictment alleges that Patino conspired to commit money laundering and committed money laundering in connection with the creation and promotion of the “Patino Diet” plan, which Patino described to others as the “next Atkins diet.” In order to conceal and disguise his illegal health care fraud scheme, Patino allegedly paid for the authorship and publication of a book touting the diet plan, entitled “The Age of Globesity,” and paid hundreds of thousands of dollars in order to promote the diet plan and appear as the exclusive medical expert on a nationally syndicated television show.
In addition to concealing the scheme by paying money to falsely portray himself as a media personality and a legitimate physician, the superseding indictment alleges, that Patino laundered the healthcare fraud and kickback money by entering into sham contracts or employment relationships to pay others on his behalf to sponsor boxers, mixed martial artists and Ultimate Fighting Championship (UFC) combatants, including UFC world champions and hall of famers. The superseding indictment alleges that Patino also withdrew the proceeds derived from the conspiracy to live an extravagant lifestyle and spend money on luxury clothes, real estate and international travel, including multiple trips to the Cayman Islands.
The charges against Patino are related to a broader investigation into the Tri-County Network of pain clinics in Michigan and Ohio, which involves over $300 million in alleged Medicare fraud and the alleged distribution of over 6.6 million dosage units of controlled substances. In connection with the investigation, 22 defendants, including 12 physicians, have previously pleaded guilty or been found guilty at trial.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and HHS-OIG. Assistant Chief Jacob Foster and Trial Attorney Thomas Tynan of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Philadelphia Felon Living in Butler, PA Pleads Guilty to Drug and Firearms ViolationsRead the Press Release
PITTSBURGH, PA - A former resident of Philadelphia, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Brandon Morris, 34, pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that in June 2016, Pennsylvania State Police arranged for a confidential informant (CI) to buy crack and heroin from Mark Carter. Carter arranged for Brandon Morris to meet the CI. In exchange for $2,000 in pre-recorded funds, Morris gave the CI three bricks of heroin and one-half-of-an-ounce of crack.
On June 28, 2016, troopers executed a search warrant on Morris’ residence located on E. Brady St. in Butler, PA. Carter was also staying at the residence. Troopers recovered a plastic bag containing 39.57g of raw heroin, a plastic bag containing 119.36g of crack cocaine, individual packets of heroin, $7,612.00, including pre-recorded funds, a 12-gauge shotgun and ammunition (3 shells), and various items of drug paraphernalia. Due to a prior felony conviction, Morris is prohibited from possessing a firearm or ammunition.
Mark Carter pleaded guilty on Feb. 6, 2020.
Judge Bissoon scheduled sentencing for July 15, 2020. The law provides for a maximum sentence of not less than 5 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 of the defendant.
Pending sentencing, the court continued Morris’s bond.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the prosecution of Morris.
Pennsylvania man admits to firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Lynn, of Uniontown, Pennsylvania, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Lynn, age 41, pled guilty to one count of “Possession of Stolen Firearm.” Flynn, a convicted felon, admitted to possessing a 12 gauge shotgun, a .308 caliber rifle, and a 7mm caliber rifle, all believed to be stolen, in October 2018 in Monongalia County.Lynn faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Monongalia County Sheriff’s Office, and the Pennsylvania State Police investigated.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Magistrate Judge Michael John Aloi presided.
Pascagoula Man Sentenced to over 2 Years in Federal Prison for Possession of a Firearm by an Illegal Drug UserRead the Press Release
Gulfport, Miss. – Brian Keith Blalock, Jr., 25, of Pascagoula, was sentenced today by U.S. District Judge Sul Ozerden to 30 months in federal prison, followed by 3 years of supervised release, for possession of a firearm by an unlawful user of a controlled substance, announced U.S. Attorney Mike Hurst and Special Agent-in-Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Blalock also was ordered to pay a $2,500 fine.
On March 20, 2019, the Pascagoula Police Department responded to a call about a drive-by shooting. Upon arriving at the scene, police officers spoke with residents who reported seeing a black car with dark colored windows and a missing front bumper leave the scene immediately after multiple shots were fired. A witness also reported that a man had been seen throwing something over a nearby fence. Police investigated and found a rifle, wrapped in clothing, at the location indicated by the witness. Police later determined that the description given of the man seen throwing the rifle matched the description of Blalock.
Officers searched the surrounding area and located the vehicle. When officers initiated a traffic stop, Blalock exited the vehicle and fled on foot. Officers secured the car for evidence and alerted other officers who were able to locate Blalock. Officers found sixteen 7.62 caliber ammunition shell casings in the car Blalock had been driving. It also was documented that Blalock was a habitual user of marijuana.
As part of an ATF investigation, the casings found in the car Blalock was driving, were identified as Tula 7.62 caliber ammunition casings, the same caliber as fired from the recovered rifle. Further examination by the ATF Forensic Science Laboratory in Atlanta showed the casings had been fired in the rifle recovered at the scene.
Blalock pled guilty before Judge Ozerden on November 4, 2019, to possession of a firearm by an unlawful user of a controlled substance.
U.S. Attorney Hurst commended the coordinated investigation by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and by the Pascagoula Police Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Owner of Bend-Based Microbrewery Equipment Company Indicted on Fraud ChargesRead the Press Release
EUGENE, Ore.—A federal grand jury in Eugene returned an indictment last week charging a Bend, Oregon resident with using a microbrewery equipment company to defraud customers of more than $800,000.
The seven-count indictment alleges that Matthew Mulder, 48, used his company, WeCan Brewing Systems, LLC, to solicit payments from 23 customers located throughout the U.S. Mulder’s company supplied custom-built microbrew systems, keg washers, and other industrial brewing products. Many of his customers were microbrewery owners.
According to court documents, beginning in at least 2017, Mulder began soliciting and accepting orders for microbrewery equipment he knew his company was not capable of fulfilling. When asked by various customers for order updates, Mulder falsely stated that the orders were on schedule or near completion.
Mulder would entice customers to make payments by sending emails and text messages that included photos of nearly-completed orders prepared for other customers. Mulder solicited and accepted new customer contracts requiring large down payments that he would in-turn use for personal expenses, to pay off loans, and to pay suppliers.
Mulder made his initial appearance in federal court in Eugene today. He was released pending a jury trial scheduled for April 29, 2020 before U.S. District Court Judge Michael J. McShane.
Mulder faces four counts of wire fraud and three counts of mail fraud. Wire and mail fraud are both punishable by up to 20 years in prison, a $250,000 fine, and three years’ supervised release.
This case was investigated by the FBI and the Bend Police Department and is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Newport Woman Admits to Receipt of Child PornographyRead the Press Release
PROVIDENCE – A Newport woman who admitted to soliciting and receiving materials involving the sexual exploitation of minors faces between five to twenty years in federal prison when she is sentenced in June, having pleaded guilty in U.S. District Court in Providence today to receipt of child pornography.
Karissa A. Cave, 23, admitted to the court that on December 7, 2016, while communicating with another person on Facebook messenger, she requested that the person send her a video depicting an adult engaged in sexually explicit conduct with a female toddler she knew that person possessed.
Cave admitted after receiving the video she asked, “Is there any more?” In return the person sent her an image of prepubescent girls and boys engaged in sexually explicit conduct.
Cave’s guilty plea before U.S. District Court Chief Judge John J. McConnell, Jr., to receipt of child pornography is announced by United States Attorney Aaron L. Weisman, Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
Cave is scheduled to be sentenced on June 16, 2020. At sentencing Cave faces statutory penalties of between five and twenty years imprisonment; five years to lifetime supervised release; and a mandatory $5,000 special assessment imposed as required by the Justice for Victims Trafficking Act in child sexual exploitation cases where the court makes a finding that the defendant is not indigent.
United States Attorney Aaron Weisman thanks the Woonsocket Police Department for their assistance in the investigation of this matter.
This Project Safe Childhood case is being prosecuted by Assistant United States Attorney Denise M. Barton.
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New York Man Pleads Guilty in Scheme that Used False ID Cards to Negotiate Fake Checks at East Coast CasinosRead the Press Release
PITTSBURGH, PA – A resident of New York has pleaded guilty in federal court to a charge of identity theft, United States Attorney Scott W. Brady announced today.
Anthony L. Powell, 35, of Rochester, NY, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that between January 2015 and June 2015, Powell used false identification cards to negotiate counterfeit checks totaling approximately $24,000 at casinos along the East Coast of the United States, including the Rivers Casino in Pittsburgh.
Judge Fischer scheduled the sentencing for June 25, 2020 at 11:00 a.m. The law provides for a maximum sentence of 15 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
Agents from Homeland Security Investigations and the Pennsylvania State Police conducted the investigation that led to the prosecution of Anthony Powell.
New Castle Man Sentenced to 15 Years in Federal Prison for Second Child Pornography ConvictionRead the Press Release
Wilmington, Del. – A New Castle, Delaware man was sentenced today to 15 years in prison for possessing and attempting to receive child pornography, announced David C. Weiss, U.S. Attorney for the District of Delaware.
On October 24, 2019, a federal jury for the District of Delaware found Thomas Noble, 71, guilty of one count of attempting to receive child pornography and one count of possessing child pornography after three days of trial. On February 26, 2020, Chief U.S. District Judge Leonard P. Stark sentenced Noble to serve 15 years in prison followed by 10 years of supervised release.
According to publicly filed documents and statements made in open court, while executing a search warrant at Noble’s home, law enforcement caught Noble actively downloading child pornography using peer-to-peer file sharing software. Later forensic analysis of Noble’s computer revealed 54 videos of child pornography and more than 900 hundred images of child pornography, including files depicting the sexual exploitation of prepubescent girls. Noble had previously been convicted in the State of Delaware on child pornography charges.
U.S. Attorney David C. Weiss stated as follows, "Our office is dedicated to protecting the most vulnerable among us – our children – from the abhorrent shadow industry that produces, distributes, and collects child pornography and from those who lurk in its base marketplace. Defendant’s time of preying on our children has come to an end."
“The 15-year sentence imposed on Noble sends a clear message that there are serious consequences for those possessing sexually explicit images of children,” said William S. Walker, Acting Special Agent in Charge of HSI Philadelphia. “HSI is dedicated to identifying these predators, and bring them to justice.”
“As a New Castle, Delaware man was sentenced today to 15 years in prison, everyone should know the protection of our children are a top priority for Delaware Law Enforcement. Our laser focus is to defend, guard and shield our most vulnerable for a safer Delaware. We are beholden to the prosecutors and the investigators who work tirelessly to protect our precious children from predators who seek to exploit them,” said Sergeant Richard Bratz, spokesperson for the Delaware State Police.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware State Police investigated this case. Assistant U.S. Attorneys Graham L. Robinson and Alexander P. Ibrahim of the District of Delaware prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices across the country and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals 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.
Nashville Podiatrist Pleads Guilty to Unlawfully Distributing Controlled SubstancesRead the Press Release
NASHVILLE, Tenn. – February 26, 2020 - A Nashville, Tennessee podiatrist pleaded guilty today for his role in unlawfully distributing controlled substances.
U.S. Attorney Don Cochran of the Middle District of Tennessee, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration’s (DEA) Louisville Division and Director David B. Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
Timothy Abbott, D.P.M., 62, of Nashville, Tennessee, pleaded guilty to seven counts of unlawful distribution of controlled substances before Chief U.S. District Judge Waverly D. Crenshaw Jr. of the Middle District of Tennessee. Sentencing has been scheduled for August 21, 2020, before Chief Judge Crenshaw.
As part of his guilty plea, Abbott admitted that, on 44 occasions between April 2013 and February 2019, he knowingly distributed to four of his patients hydrocodone, a Schedule II controlled substance, without a legitimate medical purpose and outside the usual course of professional practice.
The DEA and TBI investigated the case with the assistance of the Metropolitan Nashville Police Department. Trial Attorneys William M. Grady and Alexandra Michael of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200 defendants who have collectively billed the Medicare program for more than $15 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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.
Nashville Man Facing Federal Carjacking and Firearms ChargesRead the Press Release
NASHVILLE, Tenn. – February 26, 2020 – Devan Javon Thompson, 31, of Madison, Tennessee, was charged yesterday in a criminal complaint, with carjacking; brandishing a firearm during and in relation to a crime of violence; and being a convicted felon in possession of a firearm, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to the complaint, on November 20, 2019, a woman and her 11 year-old child were shopping at Kroger on Old Hickory Boulevard in Hermitage, Tennessee when she became suspicious of a man, later identified as Thompson, following her in the store. Thompson subsequently approached the woman and asked her what kind of car she had. After refusing to tell him, Thompson displayed a handgun in the pocket of his hooded sweatshirt and demanded the keys to her vehicle. The child was holding the keys and gave them to Thompson. Thompson then held the gun to the child’s back and pushed him out of the store and into the parking lot. He demanded the woman start her car and drive over the median while he dragged the child through the parking lot. Thompson then entered the car and drove away.
An off-duty Metropolitan Nashville Police officer, who was in the Kroger parking lot and witnessed the incident, followed Thompson and notified the police department. Thompson continued to flee and crashed the vehicle in a ravine near Lebanon Pike and Munn Road, where he was taken into custody after resisting and injuring an officer and a police K-9.
If convicted, Thompson faces up to 15 years in prison on the carjacking offense; up to 10 years in prison on the gun possession charge; plus an additional mandatory minimum of seven years for brandishing the firearm.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Rachel M. Stephens is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Multiple Illegal Aliens Sentenced, Plead Guilty to Illegally Reentering the United States After RemovalRead the Press Release
Gulfport, Miss. – Two illegal aliens were sentenced and one pled guilty in federal court today to illegally reentering the United States after removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of Immigration & Customs Enforcement, Homeland Security Investigations in New Orleans, and Gregory Bovino, Chief Patrol Agent of the Border Patrol, New Orleans Sector.
Yesenia Flores-Ortega, 27, an illegal alien from Mexico, was sentenced by Senior U.S. District Judge Louis Guirola Jr. to 9 months in federal prison and one year of supervised release for unlawful reentry by an alien after removal. She also faces Department of Homeland Security removal proceedings. Flores-Ortega was arrested on September 12, 2019 following a traffic stop in Harrison County. She pled guilty on November 26, 2019 before Judge Guirola.
Teodulio Ramos Ramos, 30, an illegal alien from Guatemala, was sentenced by U.S. District Judge Sul Ozerden, to “time served” (3 months and 16 days) and one year of supervised release for unlawful reentry by an alien after removal. He also faces Department of Homeland Security removal proceedings. Ramos Ramos was arrested on November 11, 2019 following a traffic stop in Harrison County. He pled guilty on December 17, 2019 before Judge Ozerden.
Elias Delgado-Ortiz, 33, an illegal alien from Mexico, pled guilty yesterday before Senior U.S. District Judge Louis Guirola, Jr., to unlawful return of an alien after removal. He will be sentenced by Judge Guirola on May 27, 2020, at 10:00 a.m. Delgado-Ortiz was arrested following a traffic stop in Jackson County on December 4, 2019.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Border Patrol, Homeland Security Investigations, and the Harrison County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor for these cases.
Mortgage Short Sale Negotiator Sentenced for Defrauding Mortgage LendersRead the Press Release
BOSTON – The principal and co-founder of a North Andover mortgage short sale assistance company was sentenced yesterday in connection with defrauding mortgage lenders and investors out of nearly $500,000 in proceeds from about 90 short sale transactions.
Jaime L. Mulvihill, 40, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to six months in prison, two years of supervised release, and ordered to pay restitution in the amount of $478,458 and forfeiture of $239,229. In November 2019, Mulvihill pleaded guilty to conspiracy to commit wire fraud.
Mulvihill and her co-defendant Gabriel T. Tavarez founded and operated Loss Mitigation Services, LLC. The charges arise out of the defendants’ scheme to steal undisclosed and improper fees from mortgage lenders in connection with short sales of homes. A short sale occurs where the mortgage debt on the home is greater than the sale price, and the mortgage lender agrees to take a loss on the transaction.
Loss Mitigation Services, purportedly acting on behalf of underwater homeowners, negotiated with mortgage lenders for approval of short sales in lieu of foreclosure. Mortgage lenders typically forbid short sale negotiators, such as Loss Mitigation Services, from receiving any proceeds of a short sale.
From 2014 to 2017, Mulvihill and, allegedly, Tavarez, directly or through their employees, falsely claimed to homeowners, real estate agents and closing attorneys that mortgage lenders had agreed to pay Loss Mitigation Services fees known as “seller paid closing costs” or “seller concessions” from the proceeds of the short sales. In reality, the mortgage lenders had never approved Loss Mitigation Services to receive those fees. When the short sales closed, at the instruction of Mulvihill, or others working with her and Tavarez, settlement agents paid Loss Mitigation Services the fees, which typically were 3% of the short sale price above and beyond any fees to real estate agents, closing attorneys and others involved in the transaction. To deceive mortgage lenders about the true nature of the fees, Mulvihill or Tavarez filed, or caused others to file, false short sale transaction documents with mortgage lenders, including altered settlement statements and fabricated contracts and mortgage loan preapproval letters. Mulvihill and, allegedly, Tavarez, fabricated the transaction documents, or caused them to be fabricated, in order to justify the additional fees and conceal that they were being paid to Loss Mitigation Services.
The defendants defrauded the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the U.S. Department of Housing and Urban Development.
Tavarez has pleaded not guilty and is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Robert Manchak, Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General, Northeast Region; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Brian M. LaMacchia of Lelling’s Office are prosecuting the case.
Maryland Man Pleads Guilty to CarjackingRead the Press Release
Greenbelt, Maryland – Dante Tyler-El, age 54, of Landover, Maryland, pleaded guilty carjacking and to using, carrying and brandishing a firearm during and in relation to a crime of violence. Tyler-El entered his guilty plea yesterday.
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; Chief Marcus Jones of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Calvert County Sheriff Mike Evans; and Chief Peter Newsham of the Metropolitan Police Department.
According to his guilty plea, on June 5, 2019, Tyler-El perpetrated three armed robberies, as well as the carjacking to which he is pleading guilty. As detailed in his plea agreement, at 5:30 a.m. Tyler-El assaulted a victim who was pumping gas at a gas station in Prince Frederick, Maryland, putting a gun in the victim’s face, stealing the victim’s wallets and credit cards, and then placing the victim in handcuffs.
Tyler-El admitted that at 5:00 p.m., he approached a victim who was sitting in her vehicle in a parking lot in Gaithersburg, Maryland, waiting for her daughter to finish a dance class. Tyler-El, dressed in a neon construction vest and hard hat, approached the victim holding a Walther PK380 pistol, which he put to the victim’s head and demanded money. Tyler-El then handcuffed the victim and forced her into the back seat of the vehicle, where he restrained her while he rummaged through the vehicle. When the victim screamed, Tyler-El struck her with the pistol, causing severe bruising on the victim’s face. After finding the victim’s credit cards, Tyler-El got into the driver’s seat and drove away with the victim still in the back seat. After driving for some distance, Tyler-El got out of the vehicle and fled.
According to his plea agreement, at 7:00 p.m. Tyler-El, brandishing the pistol and wearing the same neon construction vest and hard hat, robbed a victim outside his apartment building in Hyattsville, Maryland, stealing $150 in cash. Approximately one hour later, Tyler-El robbed three pedestrians at gunpoint as they walked along Eastern Avenue in Washington, D.C., just across the Maryland border. Tyler-El admitted that during the robbery he fired the pistol into the air as a show of force to compel the victims’ compliance. Tyler-El stole credit cards and $6 in cash from the victims.
Tyler-El was stopped by law enforcement early the next morning after crossing the Bay Bridge into Queen Anne’s County, Maryland. A search of the vehicle recover some of the victims’ credit cards, as well as the loaded Walther PK 380 used during the robberies and carjacking.
Tyler-El and the government have agreed that, if the Court accepts the plea agreement, Tyler-El will be sentenced to 150 months in federal prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for May 12, 2020 at 2:30 p.m.
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.
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; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
United States Attorney Robert K. Hur commended the FBI, the Montgomery County Police Department, the Prince George’s County Police Department, the Calvert County Sheriff’s Office, and the Metropolitan Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Burden H. Walker, who is prosecuting the case.
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