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24 February 2020
Lowcountry Men Plead Guilty in Federal Court to Distributing Heroin and Fentanyl Causing DeathRead the Press Release
Charleston, South Carolina ---- Acting United States Attorney A. Lance Crick announced today that Carlos Ravenel, 37, of North Charleston, and Gordon William Brock, 49, of Mount Pleasant, have each pleaded guilty in federal court to Distribution of Heroin and Fentanyl Resulting in Death.
Evidence presented to the court showed that on November 20, 2018, EMS, Mount Pleasant Police Department, and members of the Charleston DEA Task Force responded to a 911 call regarding an opioid overdose in Mount Pleasant. When EMS arrived, they discovered the male victim had already died. Toxicology and autopsy reports showed that heroin and fentanyl toxicity caused his death.
While officers were at the home, they were notified that a woman had also overdosed from opioids and was at a nearby hospital. Law enforcement met with the woman, who was recovering from an overdose from the same drugs. A swift investigation ensued to find both the dealer and the deadly batch of drugs.
The evidence led law enforcement to conduct a search at the home of Gordon William Brock, where officers found heroin and fentanyl. Further investigation revealed that the day before the two overdoses, Carlos Ravenel sold a heroin-fentanyl mix to one of his sub-distributors. The sub-distributor then sold the drugs to Brock. The following day, Brock distributed the lethal drugs to the male victim, who was with the female victim at the time.
United States District Judge Richard M. Gergel of Charleston accepted the guilty pleas and will impose sentences after he has received and reviewed sentencing reports prepared by the United States Probation Office. The maximum penalty for Distribution of Heroin and Fentanyl Resulting in Death is imprisonment for Life and/or a fine of $1,000,000.
The case was investigated by agents of the Mount Pleasant Police Department and the Charleston DEA Task Force, with assistance provided by Charleston Police Department, North Charleston Police Department, and Charleston County Sheriff’s Office. Assistant United States Attorney Jamie Lea Schoen of the Charleston is prosecuting the case.
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In 2018, Charleston County had the second highest number of opioid-involved deaths in the state. Fentanyl can be 50 times more potent than heroin, significantly increasing the risk for overdose, and a person who obtains drugs illegally may not know the substance contains fentanyl. If you or a loved one are struggling with substance misuse, you can find treatment options in your area at http://www.daodas.sc.gov/treatment/local-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.
Local man sentenced to 60 years in prison for sexually abusing toddlers while registered as a sex offenderRead the Press Release
DAYTON – A Dayton registered sex offender was sentenced in U.S. District Court today to 720 months in prison and a lifetime of supervised release for producing child pornography through the sexual abuse of two toddlers.
Tyler Ulm, 25, created child pornography by sexually abusing a 2-year-old boy and a 3-year-old boy over the course of a year. He abused the two-year-old on at least five occasions at various locations in the Dayton area and the three-year-old at least twice at Ulm’s Dayton residence.
Ulm produced at least seven videos and 58 pictures of the sexual abuse.
“Ulm raped a 2 year old on five occasions and a 3 year old on two occasions,” said U.S. Attorney David M. DeVillers. “Even worse, he recorded the assaults with his phone and then freely distributed videos and images of the acts of torture. Every day he spends in prison is a safer day for our children.”
The defendant pleaded guilty on Oct. 28, 2019.
The plea was a global resolution that also involved state charges arising out of Montgomery County Common Pleas Court.
Federally, Ulm pleaded guilty to two counts of producing and one count of distributing child pornography, as well as committing a felony offense involving a minor while being required to register as a sex offender. He also accepted responsibility for his state charges, including two counts of rape of a person under 10 years of age, two counts of rape of a person under 10 years of age by force and two counts of gross sexual imposition of a person under 13 years of age.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Dayton Police Chief Richard S. Biehl; and Montgomery County Prosecutor Mathias H. Heck, Jr. announced the sentence imposed today by U.S. District Judge Walter H. Rice.
Assistant Deputy Criminal Chief Laura I. Clemmens is representing the United States in the federal case and Montgomery County Assistant Prosecuting Attorneys Kelly D. Madzey and Jonathan W. Sauline are handling the state charges.
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Local Man Sentenced to 15 Years for Multiple Business Robberies; Two Co-Defendants also SentencedRead the Press Release
Memphis, TN –Artavius Burnett, 21, has been sentenced to 180 months in federal prison for the armed robbery of two businesses, theft from a Federal Firearms Licensee, the disposing and selling of stolen firearms, and brandishing a firearm during and in relation to a crime of violence. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on November 20, 2017, Artavius Burnett, together with a juvenile accomplice, robbed the Pawn Plus on 5851 Winchester, which is a Federal Firearms Licensee (FFL). Both Burnett and his accomplice wore hoodies and red bandannas over their faces. Burnett pointed a pistol at the two employees and demanded they put handguns in his backpack while the juvenile stood as a lookout. The employees complied and Burnett took 17 handguns from the store, and then fled.
On November 27, 2017, Artavius Burnett, again together with a juvenile accomplice, robbed the Family Dollar at 9109 Highway 64. This robbery followed the same pattern as the first robbery, with Burnett pointing a pistol at multiple employees and the juvenile standing at the door as a lookout. One of the store clerks gave Burnett $1,783 and they fled the store.
Burnett was developed as a suspect based upon a Crime Stoppers tip. He later admitted to law enforcement to being a member of the Vice Lords gang, to robbing both businesses, and to selling some of the stolen firearms "on the street."
On November 25, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Jasmine Meabon, a co-defendant who served as the getaway driver during both robberies and who also sold and distributed some of the stolen firearms, to 168 months in federal prison followed by 3 years supervised release.
On August 1, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Breanna Shields, a co-defendant who assisted Meabon by hiding and disposing some of the stolen firearms and later threatened a potential witness, to 24 months in federal prison followed by 3 years supervised release.
On February 21, 2020, U.S. District Court Judge Sheryl H. Lipman sentenced Artavius Burnett to 180 months in federal prison followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Armed business robbery that threatens and harms store owners must be dealt with swiftly and certainly. Likewise, the theft of multiple firearms is especially dangerous, and threatens the lives of countless citizens when stolen guns hit the streets. Any robbery of a FFL will be met with aggressive federal prosecution in order to protect public safety, and these sentences are just punishment that will incapacitate these violent offenders."
The Memphis Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI’s Safe Street Task Force investigated this case.
Assistant U.S. Attorney J. William Crow prosecuted this case on behalf of the government.
Lebanon Man Sentenced to 15 Years for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Lebanon, Missouri, man was sentenced in federal court today for producing child pornography.
Michael Brannon, 32, was sentenced by U.S. District Judge Brian C. Wimes to 15 years in federal prison without parole.
On Aug. 5, 2019, Brannon pleaded guilty to producing child pornography.
According to court documents, Facebook submitted a CyberTipline report to law enforcement in June 2018 regarding an online conversation between Brannon and the 16-year-old victim, identified in court documents as “Jane Doe #1.” During the course of the chat, which was sexual in nature, Jane Doe #1 transmitted pornographic images to Brannon at his request.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Lebanon, Mo., Police Department, and the Lake Area 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."Leader of Guatemalan Drug Trafficking Organization Sentenced to 23 Years in PrisonRead the Press Release
A leader of a Guatemalan drug trafficking organization was sentenced today to 23 years in prison for his participation in an international drug trafficking conspiracy, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Wendy Woolcock of the U.S. Drug Enforcement Administration (DEA) Special Operations Division.
Waldemar Lorenzana-Lima was sentenced by U.S. District Judge Colleen Kollar-Kotelly in the District of Columbia following an Aug. 18, 2014, guilty plea to his participation in an international drug trafficking conspiracy. The court also ordered Lorenzana-Lima to forfeit $50,949,000.
As Lorenzana-Lima admitted in connection with his guilty plea, from March 1996 to November 2007, Lorenzana-Lima was a member of a drug trafficking organization that would receive, inventory, and store large quantities of cocaine from Colombia at Lorenzana-Lima’s properties in Guatemala, for eventual importation into Mexico and the United States. The court concluded at sentencing that Lorenzana-Lima’s conduct qualified him as an “organizer or leader” of the drug trafficking organization within the meaning of the applicable sentencing guidelines.
On April 27, 2010, the Department of Treasury’s Office of Foreign Asset Control designated Lorenzana-Lima and his sons, Eliu Lorenzana-Cordon and Waldemar Lorenzana-Cordon, as specially designated narcotics traffickers. Pursuant to the Foreign Narcotics Kingpin Designation Act, this designation applied as a result of their significant roles in international narcotics trafficking, their significant ties to the Sinaloa Cartel, and their use of family business and agricultural holdings in Guatemala as a front to aid in the northbound movement of illegal drugs through Central America.
The DEA Special Operations Division’s Bilateral Investigations Unit and Guatemala City Country Office led the investigation, which was supported by the Organized Crime Drug Enforcement Task Force program and the Criminal Division’s Office of International Affairs. In particular, the Justice Department wishes to convey its gratitude to the government of Guatemala for its steadfast commitment, collaboration, and assistance in the investigation, extradition, and prosecution of this case.
Trial Attorneys Brett Reynolds and Anthony Aminoff of the Criminal Division’s Narcotic and Dangerous Drug Section and Trial Attorney Emily Cohen of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Leader of Nine Trey Gangsta Bloods Sentenced to 17 Years in PrisonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ALJERMIAH MACK, a/k/a “Nuke,” was sentenced to 204 months in prison in connection with his participation in the Nine Trey Gangsta Bloods (“Nine Trey”) and the distribution of narcotics, including heroin and fentanyl. MACK was convicted following a three-week jury trial in October 2019 before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Aljermiah Mack was a leader of the Nine Trey Gangsta Bloods, a violent gang that wreaked havoc across New York City. Now, thanks to the outstanding work of our partners at the NYPD, HSI, and ATF, he will spend the next 17 years in federal prison.”
According to court documents and the evidence presented at the trial of MACK and co-defendant Anthony Ellison:
Nine Trey was a criminal enterprise involved in committing numerous acts of violence, including shootings, robberies, and assaults in and around Manhattan and Brooklyn. Members and associates of Nine Trey engaged in violence to retaliate against rival gangs, to promote the standing and reputation of Nine Trey, and to protect the gang’s narcotics business. Members and associates of Nine Trey enriched themselves by committing robberies and selling drugs, such as heroin, fentanyl, furanyl fentanyl, MDMA, dibutylone, and marijuana.
The leadership structure of Nine Trey is divided into two parts: the Prison Lineup, which consists of incarcerated members, and the Street Lineup, which consists of members who are not incarcerated. MACK was one of the highest-ranking members of the Street Lineup.
MACK was found guilty after trial of racketeering conspiracy for his participation in the Nine Trey enterprise and conspiracy to distribute and possess with intent to distribute one kilogram and more of mixtures and substances containing heroin.
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In addition to the prison term, MACK, 34, of Brooklyn, New York, was sentenced to five years of supervised release.
Mr. Berman praised the outstanding investigative work of the New York City Police Department, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Mr. Berman also praised the New York City Department of Correction, Correction Intelligence Bureau, and the Kings County District Attorney’s Office for their assistance in the investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Michael Longyear, Jacob Warren, and Jonathan Rebold are in charge of the prosecution.
Kaiser Permanente Agrees to Settle Americans with Disabilities Act Claims and to Improve Access for Deaf or Hard of Hearing PatientsRead the Press Release
LOS ANGELES – Southern California Permanente Medical Group and Kaiser Foundation Hospitals have agreed to resolve allegations that they violated the Americans with Disabilities Act (ADA) by failing to provide a qualified sign language interpreter or other appropriate form of assistance to a deaf patient. Separately, a Riverside County doctor has agreed to settle similar claims involving a deaf patient.
The Kaiser settlement agreement ensures that individuals with disabilities at its West Los Angeles Medical Center receive appropriate auxiliary aids and services necessary for effective communication. Southern California Permanente Medical Group and Kaiser Foundation Hospitals have agreed to provide equipment and services free of charge to ensure that people who are deaf or hard of hearing have full and equal access to medical appointments, treatments, and emergency visits at this medical center. The complainant alleged he was not provided effective communication on a regular basis during visits to this medical center from 2012 through 2016.
The entities, which fully cooperated with the government’s investigation, have agreed to:
- Provide appropriate auxiliary aids and services, including qualified interpreters, when necessary to ensure effective communication with patients who are deaf or hard of hearing and their companions;
- Advertise the availability of auxiliary aids and services;
- Designate a diversity coordinator to ensure access to appropriate auxiliary aids and services necessary for effective communication;
- Provide training on auxiliary aids and services, including qualified interpreters, for the diversity coordinator, Medical Center personnel, and telephone operators; and
- Pay compensation to the complainant and civil penalties to the United States.
In a separate matter, Dr. Javier Rios, a Lake Elsinore-based physician, also agreed to comply with the ADA by providing appropriate auxiliary aids and services free of charge so people who are deaf or hard of hearing have full and equal access to appointments and treatment at his office. The settlement resolves allegations that Rios, during more than a dozen appointments from 2016 to 2018, failed to provide such services for a patient who is deaf, telling her instead that she or her insurance company should provide them. The ADA requires providers, not patients, to ensure effective communication for people who are deaf or hard of hearing. Rios fully cooperated with the government’s investigation.
“Communicating with medical professionals not only is a right under federal law, it also can be a matter of life and death,” said United States Attorney Nick Hanna. “My office will take the necessary measures to ensure that health care providers comply with the ADA and provide equal treatment for the deaf and hard of hearing.”
Assistant United States Attorney Acrivi Coromelas of the Civil Division’s Civil Rights Section handled the Kaiser matter. Assistant United States Attorney Matthew Nickell, also of the Civil Division’s Civil Rights Section, handled the Rios matter.
Copies of the settlement agreements can be found here and here. For more information on the ADA, please call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD) or access the ADA website at http://www.ada.gov.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
This year marks the ADA’s 30th anniversary. The Department of Justice – including the U.S. Attorney’s Office – plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against people with disabilities.
Jacksonville Man Arrested and Charged with Attempting to Entice and Meet A 12-Year-Old Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Wayne Dale Epps, Jr. (35, Jacksonville) has been arrested and charged with using the internet to attempt to entice a 12-year-old child to engage in sexual activity. Epps faces a mandatory minimum penalty of 10 years, and up to life, in federal prison. Epps is currently in federal custody and has been ordered detained pending trial.
According to court documents, on February 14, 2020, an undercover FBI agent who was posing online as the family member of a 12-year-old child, was contacted by the user “ksaber2040,” who was later identified as Epps. The same undercover agent had previously engaged in online conversation with Epps in October 2019. Over the next several days, Epps and the undercover agent engaged in online conversation in which Epps expressed his desire to meet the 12-year-old “child” to engage in sexual activity. Epps provided the undercover agent with details about the sexual acts that he wished to perform on the child. On the afternoon of February 18, 2020, Epps drove to a prearranged location in Jacksonville to meet the child for sex and was arrested by FBI agents.
This case was investigated by the Federal Bureau of Investigation in Jacksonville. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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.justice.gov/psc.
Jackson Man Sentenced to 10 Years in Prison for Trafficking MethemphetamineRead the Press Release
Jackson, Miss. – Kelvin Watkins, 43, of Jackson, was sentenced today by Senior U.S. District Judge David C. Bramlette III to 10 years in federal prison, followed by 5 years of supervised release, for conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration. Watkins was also ordered to pay a $1,500 fine.
From February 2017 to January 2019, Watkins was involved in a methamphetamine trafficking organization. On multiple occasions, Watkins delivered methamphetamine to a confidential source. In total, he delivered approximately 188 grams of methamphetamine, which was tested and found to be between 96-99% pure. Watkins was indicted on January 25, 2019 and pled guilty before Judge Bramlette on August 13, 2019.
This case is the result of an extensive investigation, dubbed “Drama Queen,” targeting illegal methamphetamine distribution in central Mississippi, by the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, U.S. Marshals Service, Hinds County Sheriff’s Office, Jones County Sheriff’s Office, Jackson Police Department, Pearl Police Department, Biloxi Police Department and Richland Police Department. The case is being prosecuted by Assistant United States Attorney Chris Wansley.
Horseshoe Bend Woman Sentenced to 41 Months for Wire Fraud for Defrauding Saint Alphonsus Health SystemRead the Press Release
BOISE – Lois Soito, 60, of Horseshoe Bend, was sentenced to 41 months in federal prison for wire fraud U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Soito to serve three years of supervised release following her release from prison and to pay $1,483,963.82 in restitution. Soito pleaded guilty on November 13, 2019.
According to court records, for 22 years, Soito was employed by the Saint Alphonsus Health System (SAHS) in Boise. In her job, Soito had access to money raised at the Festival of Trees. Beginning in January 2005, Soito devised a scheme to defraud SAHS to obtain money and property. Beginning in January 2005, Soito kept checks intended for SAHS instead of depositing them in the appropriate account. She then fraudulently deposited some of the checks into a bank account used to reimburse SAHS vendors. From that account, Soito wrote checks payable to herself and deposited them into a credit union account she controlled. Soito also used some of the checks that she kept to conceal her theft of funds from the Festival of Trees from 2014 through 2018. Soito used similar methods with other accounts connected to the SAHS between approximately 2014 and 2019 to embezzle additional funds.
This case was investigated by FBI and Boise Police Department.
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Guilford Hotel to Permit Service Animals and Make Architectural Changes to Comply with the ADARead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Comfort Inn in Guilford, to resolve allegations that the hotel was not in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that the Comfort Inn refused to allow him to stay at the hotel with his service animal and that the Comfort Inn was not accessible for individuals with mobility disabilities who use wheelchairs. The hotel is in the process of making the changes required by the settlement agreement, which includes the implementation of a new policy prohibiting staff members from requiring documentation or certification for service animals. The policy permits service animals in all areas of the hotel where guests and members of the public are allowed to go. The Comfort Inn will train its staff on the new policy and will post signs indicating that service animals are welcome at the hotel. Additionally, the Comfort Inn will make changes to its facility to increase accessibility, including designating accessible parking spaces, creating an accessible route to the designated accessible entrance, adding accessible seating in the hotel’s breakfast area, modifying the lobby toilet rooms, and adding accessible features to its accessible guest rooms.
Under federal law, private entities that own or operate places of “public accommodation,” including hotels and inns, are prohibited from discriminating on the basis of disability. The ADA authorizes the Justice Department to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Durham thanked the owners of the Comfort Inn for their cooperation and their willingness to improve accessibility at their hotel without the need for litigation.
This matter was handled by Assistant U.S. Attorney David C. Nelson and Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Gaithersburg Man Sentenced to 14 Years in Federal Prison for Receipt of Child Pornography and Extortion by Threat to Ruin the Reputation of AnotherRead the Press Release
Greenbelt, Maryland – On Friday, February 21, 2020, U.S. District Judge Peter J. Messitte sentenced Zhi Tian Lang, age 24, of Gaithersburg, Maryland, to 14 years in federal prison, followed by 15 years of supervised release, for receipt of child pornography and to extortion by threat to ruin the reputation of another. Judge Messitte also ordered that Lang must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). Lang is also required to pay a special assessment of $5,200. Lang admitted that he threatened to post revealing photos of his victims on social media and other Internet platforms if they did not send him sexually explicit photographs and/or videos of themselves.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, between at least January and October 2014 Lang communicated with minor female victims ranging in age from 13 to 17 years old and located throughout the United States, including South Dakota, Wisconsin, and New Jersey. Lang used an Internet messaging application and used the name “Seth” when contacting his victims. Lang would obtain pictures of minor victims from their social media accounts or through direct flirtation. The pictures often depicted the victims in their underwear. Lang would then demand that unless the victim provided him with nude pictures, he would post the initial pictures on a public Internet account or send them directly to one or more of the victim’s acquaintances.
As detailed in his plea agreement, Lang threatened at least eleven minor victims to provide him with sexually explicit photos and/or videos of themselves and only a few refused to do so. Lang admitted that he posted photographs of some of the minor victims to coerce them and sent at least one photo to another individual.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and the Montgomery County Police Department for their work in the investigation, and thanked law enforcement agencies in New Jersey and South Dakota for their assistance. Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the federal case.
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Four Men Indicted for Huntsville Jewelry Store RobberyRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury in January indicted four men in connection to an armed robbery of a local jewelry store in Huntsville, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Explosives and Firearms Special Agent in Charge Marcus Watson.
A four-count indictment filed in U.S. District Court charges Alexander Langford, 26, Huntsville, Nakeel Darrel Davis, 34, Huntsville, Tre Michael Smith, 26, Harvest, and Tyrus Rashad Ray, 26, Huntsville, of crimes under the Hobbs Act, a federal robbery statute, as well as federal firearms charges. According to the indictment, the defendants entered the Loring and Company jewelry store armed and brandishing firearms in broad daylight and stole luxury watches.
“These defendants are yet another example that my office and our district’s law enforcement community will be relentless in the pursuit of violent criminals,” Town said. “Let those considering acts of violence and any brazen disregard for the safety of our community know that we will use any and all federal tools available to us to ensure they are dealt with swiftly and justly. Our community demands this, and we will deliver.”
“Law enforcement partnerships instrumental on the arrests of this crew that endangered the community by committing an armed robbery during business hours,” ATF Special Agent in Charge Marcus Watson stated. Law enforcement resources were effective in the capture despite that the criminal element knows no geographical boundaries.”
The Hobbs Act prohibits actual or attempted robbery that affects interstate commerce and that involves the taking of property from another person by means of actual or threatened force or violence. The maximum penalty for Hobbs Act robbery is 20 years in prison. Brandishing a firearm during and in relation to a violent crime carries a mandatory seven years in prison per count, to be served consecutively to any other sentence imposed for the crime.
ATF investigated the cases along with United States Marshal Service, Madison County Sheriff’s Office and Huntsville Police Department. Assistant U.S. Attorney Kevin Sanchez is prosecuting.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former federal and local law enforcement officer sentenced to ten years in prison for stealing drugs and falsifying a police reportRead the Press Release
ATLANTA – Former Gwinnett County Sheriff’s Deputy Antione Riggins has been sentenced to ten years in federal prison following his guilty plea to drug trafficking and making a false statement to cover up his drug crimes. Riggins committed these crimes while employed as a federal and local law enforcement officer.
“Riggins put dangerous drugs back on the street after they had been seized by law enforcement,” said U.S. Attorney Byung J. “BJay” Pak. “He violated the most basic oath of officers to protect the public. His conviction and sentence is a victory for the rule of law, and it shows that there are severe consequences for abusing the public’s trust.”
“Instead of enforcing the laws he swore to uphold, Riggins abused his position by stealing drugs and falsifying evidence reports,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This case is a reminder that no officer is above the law. The FBI would like to thank our state and local law enforcement partners, as well as the US Attorney’s Office, for bringing this corrupt officer to justice.”
“Riggins’ crimes extend beyond his lies and the drugs he stole, he also stole the public’s trust when he betrayed his oath to enforce the law,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama. “Removing this corrupt officer from our midst helps restore public confidence in our strong law enforcement team. HSI Atlanta will continue to work with our great local, federal and state partners to make our communities safer.”
“This former officer violated his oath of office and the public’s trust. Corruption within the law enforcement ranks will not be tolerated. The GBI is committed to working with local and federal partners to investigate these types of crimes to ensure the public trust of officers is upheld,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Pak, the charges, and other information presented in court: in 2017, Riggins was a federally-deputized task force officer with Homeland Security Investigations (HSI), while also employed as a deputy sheriff with the Gwinnett County Sheriff's Office (GCSO). In these roles, Riggins was responsible for investigating drug trafficking cases and transporting seized drugs from HSI crime scenes to the GCSO evidence room.
On February 23, 2017, HSI seized three kilograms of cocaine following a high-speed car chase and crash on I-285. HSI identified the suspected owner of the cocaine, even though he fled from the crash and was not apprehended. HSI agents tasked Riggins with transporting the cocaine to the GCSO evidence vault. The next day, however, Riggins checked only one kilogram of cocaine into evidence, not three, and he failed to secure a warrant for the arrest of the cocaine trafficker. Riggins also made a false document to cover up his cocaine theft. In particular, Riggins created and submitted a falsified evidence form claiming that the identity of the drug trafficker was unknown, and that only one kilogram of cocaine was seized at the scene.
On July 14, 2017, HSI seized approximately six kilograms of methamphetamine from an Atlanta hotel room. An HSI agent tasked Riggins with transporting the methamphetamine to the GCSO evidence vault; however, none of the methamphetamine was subsequently checked into evidence.
Three days later, on July 17, 2017, HSI seized approximately four kilograms of heroin and 172 oxycodone pills from a metro-Atlanta stash house. Once again, Riggins was made responsible for transporting the drugs to the evidence room. Riggins stole all but 96 grams of the heroin.
Riggins’s role at HSI ended in early 2018, and his employment with the GCSO ended after these alleged actions came to the attention of law enforcement in May 2018.
Antione Riggins, 41, of Loganville, Georgia, has been sentenced to ten years in prison, to be followed by five years of supervised release. Riggins pleaded guilty to these charges on November 25, 2019.
The Federal Bureau of Investigation, the Department of Homeland Security - Office of the Inspector General, and the Georgia Bureau of Investigation investigated the case, with the assistance of the Gwinnett County District Attorney’s Office.
Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former assistant basketball coach charged with sexual exploitation of childRead the Press Release
GREAT FALLS – A former assistant basketball coach at Stonechild College on the Rocky Boy’s Indian Reservation was arraigned today on an indictment accusing him of crimes involving sexual exploitation of a child, U.S. Attorney Kurt Alme said.
Christopher Brown, 31, of Box Elder, pleaded not guilty to sexual exploitation of a child, transportation of child pornography and sexual abuse of a minor.
If convicted of the most serious crime, Brown faces a mandatory minimum 15 years to 30 years in prison, a $250,000 fine and at least five years to life of supervised release.
The indictment is merely an accusation. Brown is presumed innocent until proven guilty.
U.S. Magistrate Judge John T. Johnston presided. Brown is detained pending further proceedings.
Brown, who worked as an assistant basketball coach at Stonechild College, initially was charged by a criminal complaint with sexual abuse of a minor.
The indictment alleges that in January in Hill County and on the Rocky Boy’s Indian Reservation, Brown sexually exploited a child and used a cell phone to transport an image of a minor engaged in sexually explicit conduct. The indictment also alleges that between July 2018 and January 2020, Brown engaged in a sexual act with a minor.
Assistant U.S. Attorney Jared Cobell is prosecuting the case, which was investigated by the FBI and Rocky Boy’s Police Department.
Pacer case reference. 20-12.
If the above case is of interest to your media organization and the community it serves, we encourage you to monitor its progress through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Former University Tennis Coach Sentenced in College Admissions CaseRead the Press Release
BOSTON – The former head coach of the men’s tennis team at the University of Texas at Austin (U-Texas) was sentenced today in federal court in Boston in connection with accepting a $100,000 bribe to secure the admission of a purported student-athlete to the university.
Michael Center, 55, of Austin, Texas, was sentenced to six months in prison, one year of supervised release and ordered to forfeit $60,000.
The government recommended a sentence a six months in prison, one year of supervised release, payment of a $20,000 fine and forfeiture in the amount of $60,000. In April 2019, Center pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
Beginning in 2014, Center agreed with William “Rick” Singer and Martin Fox, the former president of a private tennis academy in Texas, to accept a $100,000 bribe in exchange for designating the child of one of Singer’s clients as a recruited student athlete at U-Texas. On Nov. 23, 2014, Singer emailed the student’s high school transcript and application essays to Fox, who forwarded them to Center. Center emailed the materials to the administrator in the U-Texas athletics department so that the student, who did not actually play tennis competitively, would be coded as a student-athlete. In March 2015, Center informed the student’s father that U-Texas would be sending the student a letter of intent for a “books” scholarship, which provides funding for a student’s textbooks, as part of the athletic recruitment process. In April 2015, the student returned a signed “letter of intent” to play tennis for U-Texas, and, at Center’s instruction, was added to the team roster and then admitted to U-Texas. The student’s father made three separate donations of stock totaling $631,564 to Singer’s sham charitable organization, the Key Worldwide Foundation (KWF). Singer paid Center $60,000 in cash and $40,000 to the U-Texas tennis program.
In November 2019, Fox pleaded guilty and is scheduled to be sentenced on May 14, 2020.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Regions Bank Employee Sentenced for Theft of Funds from Elderly CustomerRead the Press Release
Montgomery, Alabama – On Friday, February 21, 2020, a former Regions Bank employee was sentenced to 37 months in prison for theft of funds, announced Louis V. Franklin, Sr., U.S. Attorney for the Middle District of Alabama. After completing his prison sentence, he will be on supervised release for three years.
Montreal Holley, 28, from Montgomery, Alabama, pleaded guilty to theft of funds by a bank employee in November of 2019. According to court documents, Holley became the manager of a Regions Bank branch in Montgomery in May of 2018. Around December of 2018, Regions discovered he had wired $188,000.00 from an elderly customer’s account to his own account at another bank. Regions began to investigate, with the assistance of the United States Secret Service. The elderly customer passed away shortly after the investigation began.
Regions Bank and the Secret Service discovered that Holley had convinced the elderly customer that she could trust only him to handle her money and he took a total of $313,448.83 from the customer’s account over a matter of months. He issued cashier’s checks, made wire transfers, and even issued a debit card on one of her accounts and used it to make ATM withdrawals. According to statements made during his sentencing hearing, Holley paid off loans for himself, his wife, his girlfriend, and other family members. In one example, he transferred $23,266.00 from the customer’s account to pay off a car loan. He initially told investigators that the elderly victim directed him to make the transaction, but the investigation revealed that the loan paid off a car driven by Holley’s girlfriend.
After he was caught, Holley returned $188,000.00 of the stolen funds. At his sentencing hearing on Friday he was also ordered to pay the remaining $125,448.83 in restitution to Regions Bank, who had previously credited the stolen funds back into the victim’s account.
“This case is upsetting in many ways, and it serves as a reminder that criminals are targeting some of the most vulnerable people in our society,” stated U.S. Attorney Franklin. “Holley selected his victim because of her advanced age and illness. He thought he would get away with stealing her money because no one would notice. Fortunately, Regions Bank discovered the suspicious activity in her account. We must all be vigilant and take action when necessary to protect our senior family members and friends from being exploited.”
“Montreal Holley, working in his position of trust and authority as a Branch Manager for Regions Bank, took advantage of an elderly client to steal over $300,000 from her,” said Patrick Davis, Special Agent in Charge with the United States Secret Service, Birmingham Field Office. “Regions Bank investigators should be commended in this case. Their investigators quickly identified suspicious account transactions and brought it to the attention of the U.S. Secret Service Montgomery Resident Office. Their quick response and thorough investigative support stopped this defendant from further financially exploiting the elderly victim in this case.”
Don White, head of Corporate Security for Regions, said the bank has a continuous focus on detecting and preventing elder financial abuse. “While we remain heartbroken for the family affected by this crime, we are grateful to the investigators and prosecutors who worked tirelessly with us in pursuing justice,” White said. “Regions Bank is steadfastly committed to protecting the people we serve, and this case reflects our determination to identify and combat any instance of elder financial exploitation. We appreciate the teams that worked together to thoroughly investigate this matter and take appropriate action.”
White stated that Regions consistently trains its associates on ways to detect, prevent and stop elder financial abuse. He said the bank also shares prevention information with the public through its website.
U.S. Attorney Louis V. Franklin, Sr. would like to thank the United States Secret Service and Regions Bank Corporate Security for investigating this case, and the U.S. Department of Education’s Office of Inspector General for their assistance. Assistant United States Attorney Megan Kirkpatrick prosecuted this case.
Former Newark Police Officer Found Guilty of Conspiracy to Defraud Newark Watershed Conservation and Development Corporation, Mail Fraud, and Extortion ConspiracyRead the Press Release
NEWARK, N.J. – A former Newark police officer was found guilty by a federal jury today of conspiring to defraud the Newark Watershed Conservation and Development Corporation (NWCDC) and giving kickbacks to its former executive director, U.S. Attorney Craig Carpenito announced.
Janell Robinson, 42, of Newark, was found guilty of one count of conspiracy to defraud the NWCDC facilitated by use of mails and wire transmissions, two counts of mail fraud, and one count of conspiracy to commit extortion under color of official right affecting interstate commerce following a 10-day trial before U.S. District Judge Susan D. Wigenton.
According to documents filed in this case and the evidence at trial:
Between March 2010 and May 2013, while Robinson was a Newark police officer, she controlled Protected and Secured Services LLC (P&S), a company that purported to provide security consulting services to its only client, the NWCDC. Robinson conspired with Linda Watkins Brashear of West Orange, New Jersey, the former executive director of the NWCDC, to pay Brashear a stream of concealed and undisclosed kickbacks from the proceeds that P&S received from the NWCDC. In exchange for Brashear’s assistance in securing P&S a contract with the NWCDC and approving completely fraudulent or inflated invoices that Robinson submitted, Robinson paid Brashear cash kickbacks from the proceeds of the fraud.
In total, the NWCDC paid P&S approximately $289,000 during the scheme, approximately $50,000 of which was used by Robinson to pay Brashear kickbacks.
The wire and mail fraud conspiracy, mail fraud, and conspiracy to commit extortion under color of official right charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is set for June 8, 2020.
Brashear pleaded guilty to her role in the scheme and was sentenced Sept. 21, 2017, to 102 months in prison.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s conviction.
The government is represented by Senior Trial Counsel Leslie F. Schwartz and Assistant U.S. Attorney Jacques S. Pierre of the U.S. Attorney’s Office Special Prosecutions Division.
Former Holyoke Teacher Pleads Guilty to Possession of Child PornographyRead the Press Release
BOSTON – A former Holyoke kindergarten teacher pleaded guilty on Friday, February 21st in federal court in Worcester to possession of child pornography.
Gregory Lisby, 40, of Worcester, pleaded guilty to one count of possession of child pornography. Lisby was arrested and charged on Sept. 13, 2019, and resigned the day before from his position as a kindergarten teacher for the Holyoke Public Schools.
Law enforcement discovered an image depicting child pornography that had been uploaded to a Microsoft OneDrive account that was determined to belong to Lisby. Approximately 180 images and 15 videos of child pornography were identified on the OneDrive. On Sept. 11, 2019, a search was executed at Lisby’s home where Lisby’s iPad and cellphone were recovered. On those devices, investigators found login credentials for the OneDrive account used to store the child pornography.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Worcester, Holyoke, Northboro and Southboro Police Departments, along with the Massachusetts State Police provided assistance with the investigation. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Florida Department of Corrections Officer Convicted of Civil Rights Conspiracy to Assault Youthful OffendersRead the Press Release
Former Florida Department of Corrections officer, Terrance Reynolds, 30, was convicted Friday following a 14-day trial for conspiring to assault youthful offender inmates, announced the Department of Justice. The jury acquitted Reynolds of two counts of depriving the youthful offender inmates of their civil rights.
Evidence presented at trial established that on March 27, 2017, Reynolds and former Sergeant Brendan Butler, 30, conspired to physically assault and intimidate youthful offender inmates for being disruptive and disrespectful earlier that morning. Reynolds and Butler then instructed three of the inmates to exit their housing unit and took them into a mop closet. Once inside the mop closet, Reynolds and Butler assaulted one of the inmates with a stick, causing him bodily injury, while the other two inmates stood nearby. The following day, Reynolds and Butler assaulted one of the other inmates to punish him for being disrespectful. Inmates may be classified as youthful offenders by a court or the Department of Corrections, and are generally 24 years old or younger. Butler previously pleaded guilty to conspiring to violate the inmates’ civil rights.
“Corrections officers who use unjustified force against inmates in their custody violate the Constitution,” said Acting Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously investigating and prosecuting officers who break the public trust in this way.”
“In the Southern District of Florida, abuse by corrections officers will not be tolerated. Let this be a message to them: If you are an officer who violates the civil rights of those entrusted to your protection, my Office will prosecute you,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida.
“Former corrections officer Terrance Reynolds was found guilty of conspiring to assault youthful offender inmates. Such conduct violates the public’s trust in our institutions and officials,” said George L. Piro, Special Agent in Charge, FBI Miami. “I commend the professionalism and hard work of the Florida Department of Corrections Office of the Inspector General and the FBI’s Miami Area Corruption Task Force with this investigation.”
Reynolds faces a statutory maximum sentence of 10 years in prison.
This case was being investigated by the FBI’s Miami Area Corruption Task Force and the Florida Department of Corrections Office of the Inspector General. It was prosecuted by Assistant U.S. Attorneys Robert Senior and Brian Dobbins of the Southern District of Florida and Special Litigation Counsel Samantha Trepel of the Civil Rights Division.
Former Florida Department of Corrections Officer Convicted of Civil Rights Conspiracy to Assault Youthful OffendersRead the Press Release
MIAMI, Florida — Today, following a 14-day trial, a federal jury found former Florida Department of Corrections Officer Terrance Reynolds, 30, guilty of conspiring to assault youthful offender inmates, announced Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Eric S. Dreiband, Assistant Attorney General of the Justice Department’s Civil Rights Division, and George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Division. The jury acquitted Reynolds of two counts of depriving the youthful offender inmates of their civil rights.
According to the evidence presented at trial, on March 27, 2017, Reynolds and former Sergeant Brendan Butler, 30, conspired to physically assault and intimidate youthful offender inmates for being disruptive and disrespectful earlier that morning. Reynolds and Butler instructed three of the inmates to exit their housing unit and took them into a mop closet. Once inside the mop closet, Reynolds and Butler assaulted one of the inmates with a stick, causing him bodily injury, while the other two inmates stood nearby. The following day, Reynolds and Butler assaulted one of the other inmates to punish him for being disrespectful. Inmates may be classified as youthful offenders by a court or the Department of Corrections, and are generally twenty-four years old or younger. Butler previously pleaded guilty to conspiring to violate the inmates’ civil rights.
“In the Southern District of Florida, abuse by corrections officers will not be tolerated. If you are an officer who violates the civil rights of those entrusted to your protection, know this: My Office will prosecute you,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida.
“Corrections officers who use unjustified force against inmates in their custody violate the Constitution,” said Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously investigating and prosecuting officers who break the public trust in this way.”
“Former corrections officer Terrance Reynolds was found guilty of conspiring to assault youthful offender inmates. Such conduct violates the public’s trust in our institutions and officials,” said George L. Piro, Special Agent in Charge, FBI Miami. “I commend the professionalism and hard work of the Florida Department of Corrections Office of the Inspector General and the FBI’s Miami Area Corruption Task Force with this investigation.”
U.S. Attorney Fajardo Orshan and Acting Assistant Attorney General Gore also commended the investigative efforts of the FBI’s Miami Area Corruption Task Force and the Florida Department of Corrections, Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorneys Robert Senior and Brian Dobbins, of the Southern District of Florida, and Special Litigation Counsel Samantha Trepel, of the Justice Department’s Civil Rights Division.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov
Former First Asst. McCracken Co. Commonwealth's Attorney Joins Paducah Branch United States Attorney's Office Full-TimeRead the Press Release
PADUCAH, Ky. – United States Attorney Russell Coleman announced today the full-time addition of Raymond Dykie McGee as an Assistant United States Attorney in the U.S. Attorney’s Paducah Branch Office.
“Adding a prosecutor of Dykie McGee’s quality to the Paducah Office shows that our commitment to the Purchase is not mere happy talk; instead backed up with action” said U.S. Attorney Russell Coleman “The feds will continue to collaborate with our state and local partners to better protect Western Kentucky families from drug trafficking, violent crime, and those that would prey on our kids and elderly Kentuckians.”
Mr. McGee joins two full-time Assistant United States Attorneys, a paralegal, and a legal assistant in the Paducah branch office, keeping U.S. Attorney Russell Coleman’s commitment of service to the Purchase and Pennyrile Regions. The addition of Mr. McGee will continue to strengthen working relationships with state prosecutors and local law enforcement agencies in the region. McGee previously served the office in a joint capacity as a Special Assistant United States Attorney while he prosecuted felony cases in state court as First Assistant Commonwealth’s Attorney for the 2nd Judicial Circuit (McCracken County).
“Dykie has been an invaluable asset to the Commonwealth’s Attorney’s Office, and while we’re sad to see him go we know he will also be a tremendous asset to the United States Attorney’s Office,” said Commonwealth’s Attorney Dan Boaz.
The allocation of prosecutorial resources in the Paducah Branch Office is closely-tied to a robust full-time federal law enforcement presence which includes the Bureau of Alcohol, Tobacco, and Firearms (ATF), the Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI). The welcome addition of Federal Bureau of Investigation (FBI) resources in the coming months will round out the federal law enforcement presence in the region.
McGee joins Assistant United States Attorney Seth Hancock, Branch Chief of the Paducah Office, and Assistant United States Attorney Leigh Ann Dycus in prosecuting federal cases in United States District Courts located in Paducah and Owensboro.
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Former DMV Program Manager Admits to Bribery ConspiracyRead the Press Release
RICHMOND, Va. – A former Virginia Department of Motor Vehicles (DMV) employee pleaded guilty today to his role in a seven-year bribery conspiracy involving the DMV’s Virginia Rider Training Program (VRTP).
According to court documents, Bruce A. Biondo, 63, of Mechanicsville, was the former Program Manager of the VRTP, and worked for the DMV from 1988 until 2018.
Beginning in at least 2011 and continuing to March 2018, Biondo admitted he accepted bribes from outside contractors, including a $15,000 payment from the sham sale of a motorcycle in 2011, additional cash payments totaling over $74,000 between February 2014 and February 2018, and the use of a Ford F-450 pick-up truck for personal purposes. In exchange, Biondo agreed to perform and performed official actions to benefit the preferred VRTP contractors who provided the bribes.
Biondo pleaded guilty to conspiracy to commit honest services wire fraud through bribery and faces a maximum penalty of five years in prison when sentenced on July 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; Michael C. Westfall, Virginia State Inspector General; Colonel Gary T. Settle, Virginia State Police Superintendent; and Joseph Hill, DMV Assistant Commissioner for the Office of Enforcement and Compliance made the announcement after U.S. District Judge David J. Novak accepted the plea. Assistant U.S. Attorney David T. Maguire is prosecuting the case.
This case stems from a complaint received by Virginia DMV. The DMV’s Internal Audit Office and Law Enforcement Division conducted an investigation and found sufficient cause to refer the case to the Office of the State Inspector General and federal authorities.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-18.
Federal Jury Convicts CBL/BFL Gang Member of Two Murders in Aid of Racketeering, and Multiple Other ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that, following a six-week trial, a federal jury has convicted CBL/BFL Gang member Dalvon Curry, 23, of Buffalo, NY, of murder in aid of racketeering; racketeering and narcotics conspiracy; possession of firearms in furtherance of a crime of violence; and possession of firearms in furtherance of a drug trafficking crime. The charges carry a mandatory penalty of life in prison, and a $10,000,000 fine.
Assistant U.S. Attorneys Paul C. Parisi and Seth T. Molisani, and Christopher O. Taylor, of the Department of Justice Organized Crime and Gang Section, who handled the prosecution of the case, stated that the defendant is a member of the CBL/BFL Gang which stands for, among other things, “Cash Been Long” and “Brothers for Life.” Identified as a “shooter” in the gang, Curry shot and killed rival gang member Jaquan Sullivan on December 5, 2015. He also shot and killed Xavier Wimes on January 1, 2017.
“Today’s verdict brings to an end the reign of terror by the CBL/BFL Gang that has tormented the residents living in the Towne Gardens Housing Complex for more than a decade,” stated U.S. Attorney Kennedy. “These residents deserve to live without the daily fear of drug deals, gunfire, and violence. Let this investigation and prosecution serve as a warning to any other group of individuals who any be thinking about picking up where this group left off, we will track you down, we will arrest you, and we will prosecute you. Period.”
“For the FBI, community impact is our measure of success -- we need to improve the quality of life for the people who live and work in Buffalo,” said FBI Buffalo Special Agent-in-Charge Gary Loeffert. “We will continue to pursue violent gangs through sustained, proactive investigations and federal prosecutions. And we will continue to stay involved with our community partners in an effort to prevent violent crimes before they happen.”
The gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009 and operates primarily in the City of Buffalo at the Towne Gardens Housing Complex. The Towne Gardens served as a central hub for the gang with many members living within the housing complex, and many housing units used to store firearms and narcotics. Parking lots and business fronts adjacent to the Towne Gardens were utilized by members of the gang to distribute street level quantities of narcotics, including heroin, fentanyl, cocaine, crack cocaine, marijuana, and other controlled substances.
The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang. An attack on a member typically resulted in retaliation by all members of the gang. Members and associates also used social media, such as Facebook and Snapchat, to display gang affiliation, brandish firearms, display quantities of currency and narcotics, and show participation in violent acts. They also produced, sang, and appeared in music videos at locations in and around the gang's territory that promoted the enterprise and its activities.
In order to enforce the authority, members and associates maintained a ready supply of firearms. Certain members and associates carried and discharged firearms. These “enforcers” or “shooters,” retaliated with deadly force against threats of encroachment and violence, both actual and perceived, from rival gangs or individuals. CBL/BFL gang members also threatened witnesses who they suspected might testify or provide information to law enforcement about the crimes committed by the gang.Twelve other CBL/BFL Gang members and associates were previously convicted in this case, they include:
• Shawn Woods, a/k/a Pif; • Michael Walker, a/k/a Yam; • Mikel Lowe, a/k/a L-O; • Aaron Mack, a/k/a Dean, a/k/a Deano; • Shameris Washington, a/k/a GB; • Maurice Rice, a/k/a Reese; • Miquise Jones, a/k/a Scaife; • Dajon Nettles, a/k/a Gucc; • Larell Watkins, a/k/a 90-Ls; • Larry Watkins, Jr.; • Larquon Watkins, a/k/a 90; and
• Rashad Rose, a/k/a Gotti.The verdict is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major James Hall; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; the U.S. Marshals Service, under the direction of Marshal Charles Salina; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
Sentencing will be scheduled at a later date before U.S. District Judge Lawrence J. Vilardo, who presided over the trial of the case.
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Fayette County Woman Sentenced to Federal Prison for Wire FraudRead the Press Release
WVDEP Employee Made Over $61,000 in Fraudulent Purchases with State Credit Card
CHARLESTON, W.Va. – A Fayette County woman was sentenced to over one year of federal incarceration for the felony offense of wire fraud, announced United States Attorney Mike Stuart. Yvonne Dozier, 50, of Boomer, West Virginia, previously pled guilty to wire fraud on November 18, 2019. She was sentenced to one year and one day of incarceration and was also ordered to pay restitution to the West Virginia Department of Environmental Protection (WVDEP) in the amount of $61,731.72. Stuart praised the work of the United States Secret Service, the West Virginia State Auditor’s Office, and the WVDEP.
“Dozier stole from the State of West Virginia for four years,” said United States Attorney Mike Stuart. “She was a trusted employee in state government who violated that trust by stealing from taxpayers. Our goal in prosecuting cases like this is not only to hold the offender accountable, but to make victims whole again through restitution. In this case, Dozier will be repaying the WVDEP in full for her fraudulent purchases.”
Dozier previously worked for the WVDEP as an accounting tech. She was assigned a West Virginia state purchasing card and was permitted to make authorized purchases on behalf of the WVDEP. These cards could not be used to make personal purchases. Dozier devised a scheme where she used the state purchasing card to make personal purchases and fraudulently wired credit card information. She then altered invoices and modified the state accounting software to adjust the purchases and make the fraudulent purchases appear as though they were legitimately made. From 2014 to 2018, Dozier made hundreds of unauthorized purchases, costing the state of West Virginia $61,753.72. Dozier gave a Mirandized statement to a Special Agent with the United States Secret Service, in which she admitted to misusing the state purchasing card to make personal purchases, alter invoices, and ultimately pass those expenses onto the State of West Virginia. The fraudulent purchases moved money in interstate commerce both from the actual purchase with the credit card and the State of West Virginia paying her Visa card expenses. Dozier used her state purchasing card to pay for personal expenses such as electric, insurance, cable, and cell phone bills, and vacation rental homes. Dozier no longer works for the State of West Virginia.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Erik S. Goes handled the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Enrolled Member of the Eastern Band of Cherokee Indians Is Charged with Dealing Fentanyl That Resulted in an Overdose DeathRead the Press Release
ASHEVILLE, N.C. – A federal grand jury sitting in Charlotte returned a criminal bill of indictment on February 20, 2020, charging Shannon White, 42, an enrolled member of the Eastern Band of Cherokee Indians and resident of the Cherokee Indian Reservation, with distributing fentanyl that resulted in an overdose death, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. White appeared in federal court this morning, following her arrest by the DEA and the Swain County Sheriff’s Office.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville District Office, and the counties encompassing the Cherokee Indian Reservation, joins U.S. Attorney Murray in making today’s announcement.
The criminal bill of indictment alleges that on January 28, 2019, White did knowingly distribute a mixture or substance containing fentanyl, a Schedule II controlled substance, which resulted in the death of a victim identified in the indictment as J.F.
White had her initial appearance today in Asheville before U.S. Magistrate Judge W. Carleton Metcalf. The offense charged carries a mandatory minimum term of twenty years imprisonment, a maximum term of life imprisonment, and a $1,000,000 fine.
The charge contained in the indictment is an allegation. The defendant is innocent until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the DEA and the Swain County Sheriff’s Office for their investigation of this case. Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, is handling the prosecution.
Last month, U.S. Attorney Murray was joined by the U.S. Attorneys for the Middle and Eastern Districts of North Carolina and the District of South Carolina, in calling on Congress to issue a permanent ban on fentanyl and its analogues. Congress passed a 15-month extension on DEA’s existing ban on all variants of fentanyl, which President Trump signed into law on February 6, 2020. The current extension expires on May 6, 2021.
“While I am thankful that Congress extended the temporary ban on fentanyl and fentanyl-like analogues, I join law enforcement and prosecutors across the nation in calling for action to permanently outlaw this deadly substance and all its derivatives. Temporary bans are the equivalent of putting a Band-Aid on a gushing wound. We need a permanent fix. Fentanyl and fentanyl analogues kill people and devastate communities. These drugs belong in same legal category as heroin and other deadly substances,” said U.S. Attorney Murray.
U.S. Attorney Murray’s joint op-ed can be accessed here. More information about fentanyl and fentanyl analogues can be found here.
Eight-Time Convicted Felon Sentenced on Firearm and Counterfeit Currency ChargesRead the Press Release
United States Attorney Joe Kelly announced that Coldy D. Hackworth, age 30, of Council Bluffs, Iowa, was sentenced today in federal court in Omaha, Nebraska, for Passing Counterfeit Currency and for being a Felon in Possession of a Firearm. Senior United States District Court Judge Laurie Smith Camp sentenced Hackworth to 77 months’ imprisonment. There is no parole in the federal system. Upon his release, Hackworth will begin a 3-year term of supervised release. Hackworth was also ordered to pay $900 in restitution and a $200 special assessment.
On May 23, 2019, Hackworth made arrangements to purchase a 1995 Chevy Tahoe K1500 from the victim via LetGo.com. Hackworth met the victim and her husband at their home in Omaha and purchased the Tahoe using nine counterfeit $100 United States Federal Reserve Notes. The seller signed the title over and Hackworth drove the Chevy Tahoe away. On May 24, 2019, Hackworth registered the Chevy Tahoe in his name in the State of Iowa and his name is listed as the purchaser on the bill of sale for the Chevy Tahoe. The Chevy Tahoe was located by the Omaha Police Department on June 23, 2019, at an apartment complex in Omaha that Hackworth was known to periodically reside.
On June 19, 2019, officers with the Omaha Police Department were called to investigate a suspicious vehicle in Omaha. Upon arrival the officers located the vehicle and made contact with the vehicle’s occupants. Hackworth was the passenger of the vehicle. The driver of the vehicle admitted to being in possession of drug paraphernalia and, as a result, a search of the vehicle was conducted. During the search of the vehicle, officers located a loaded HiPoint C9 9mm handgun in a bag under the passenger seat. Hackworth informed officers “I know I’m a felon and I knew it was in there.” Hackworth later informed officers that there was $5,600 in counterfeit currency in the vehicle. This currency was located in a hidden compartment of the same bag that the firearm had been found in. On June 19, 2019, Hackworth was an eight-time convicted felon and was out on bond in state court pending sentencing for a Second Degree Assault conviction.
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.
This case was investigated by the Omaha Police Department, the United States Secret Service, and the FBI Greater Omaha Safe Streets Task Force.
Doctor Described as ‘Candy Man’ and ‘El Chapo of Opioids’ Admits Distributing Opioids to PatientsRead the Press Release
NEWARK, N.J. – A Bergen County doctor today admitted distributing opioids without a legitimate medical reason and falsifying medical records to cover it up, U.S. Attorney Craig Carpenito announced.
Robert Delagente, 45, of Oakland, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an indictment charging him with one count of conspiracy to distribute controlled dangerous substances, three counts of distribution of controlled dangerous substances, and one count of falsifying medical records.
“This defendant knowingly prescribed for his patients some of the most dangerous and addictive drugs available, sometimes with no more contact than a text message from the patient,” U.S. Attorney Carpenito said. “Many of these patients were dealing with pain and addiction, and instead of getting help from their doctor, they were drawn deeper into the cycle of drug abuse. His admission of guilt today ensures that he will be appropriately punished for this behavior.”
“Dr. Delagente sold his ethics, his medical license, and his moral compass,” FBI-Newark Special Agent in Charge Gregory W. Ehrie said. “There is no magic elixir for the pain caused by pill mill doctors. The cure is public awareness, victims who come forward and a determined fleet of FBI investigators who will arrest these unscrupulous practitioners when they run afoul of the law.”
According to documents filed in this case and statements made in court:
Beginning in May 2014, Delagente was a doctor at a medical practice called North Jersey Family Medicine (NJFM) in Oakland, New Jersey. He allegedly described himself in conversations pertaining to his prescribing of painkillers as the “Candy Man” and the “El Chapo of Opioids.” Delagente knowingly prescribed controlled substances, such as oxycodone, Percocet, Tylenol with codeine, and various benzodiazepines (alprazolam, diazepam, clonazepam, and temazepam), outside the ordinary course of professional practice and without a legitimate medical purpose. He ignored the inherent danger and medical risk of overdose, drug abuse, and death that can accompany prescriptions of highly addictive opioids, benzodiazepines, and muscle relaxers, both on their own and in combination with one another.
Delagente prescribed controlled substances without ever seeing the purported patient for a medical visit or even discussing with the patient the medical need for the prescription. He allowed patients to ask him for controlled substances via text message and would write a prescription for patients that he would leave at the front desk, without requiring an office visit or consultation of any kind. He allowed patients to dictate the strength and dosage of the controlled substances he prescribed for them. Delagente also prescribed the dangerous drug combination known as the “Holy Trinity,” comprised of opioids (usually oxycodone), benzodiazepines (usually alprazolam) and muscle relaxers (usually carisoprodol).
Delagente failed to monitor patients for addiction and ignored drug screening tests to determine whether certain patients were taking illicit drugs. In fact, Delagente prescribed controlled substances to patients he knew were addicted to opioids or other controlled substances. In one instance, an NJFM employee texted Delagente that a patient had gotten a babysitter and driven a long distance to get to the practice, but had been unable to see a doctor. Delagente responded: “Oh well … C’est la vie! Lol … He can wait for his oral heroin another day. Lol.”
One patient texted Delagente that the patient “probably can’t stop the pk’s,” referring to painkillers. The patient told Delagente that the patient “would need a plan to stop…not cold turkey.” A few days later, when the patient was having trouble obtaining pain medication, the patient wrote to Delagente that “If I go 4 days without [painkillers] I am in huge trouble.” In response, Delagente wrote “I will leave you a short supply RX [prescription] at the front to pick up.” Delagente then wrote the patient a prescription for 120 tablets of 30-milligram oxycodone for 30 days. Delagente at one point told this patient: “I’m literally sticking my neck out and can lose my medical license or [be] arrested for what I just did.”
Delagente also was charged with altering medical records of patients who received controlled substance prescriptions from him after law enforcement officials had subpoenaed the records in late April 2019.
Delagente faces a maximum penalty of 20 years in prison and a $1 million fine on each of the distribution of controlled dangerous substances charges. Delagente faces a maximum penalty of 20 years in prison and a $250,000 fine on the charge of falsifying medical records. Sentencing for Delagente is scheduled for June 10, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jason S. Gould of the Health Care Fraud Unit and Sean M. Sherman of the Opioids Unit in Newark.
DEA Announces Launch of Operation Crystal ShieldRead the Press Release
Attorney General William P. Barr and Drug Enforcement Administration Acting Administrator Uttam Dhillon announced on February 20, 2020, that the DEA will direct enforcement resources to methamphetamine “transportation hubs” — areas where methamphetamine is often trafficked in bulk and then distributed across the country. While continuing to focus on stopping drugs being smuggled across the border, DEA’s Operation Crystal Shield will ramp up enforcement to block their further distribution into America’s neighborhoods.
DEA has identified eight major methamphetamine transportation hubs where these efforts will be concentrated: Atlanta, Dallas, El Paso, Houston, Los Angeles, New Orleans, Phoenix, and St. Louis. Together, these DEA Field Divisions accounted for more than 75 percent of methamphetamine seized in the U.S. in 2019.
“While meth is not a new drug, it has seen a troubling resurgence over the past few years,” said Attorney General William P. Barr. “Manufactured mostly in Mexican labs and smuggled into the United States across the southwest border, meth is a drug that is both cheap and potent, creating a deadly combination. Just as the Trump Administration has acted swiftly to stem the tide of opioid fatalities, it will use every weapon in its arsenal – such as the DEA’s Operation Crystal Shield - to stop dangerous methamphetamine from reaching American neighborhoods and harming American families.”
“Illegal drugs are wreaking havoc on our communities. Finding and prosecuting those who sell this poison is a priority of my office,” said David C. Joseph, U.S. Attorney for the Western District of Louisiana. “We will continue to work with our law enforcement partners each day to disrupt drug trafficking networks, imprison their participants, and forfeit any proceeds to the United States. Make no mistake, crystal methamphetamine is a grave threat to the well-being of our citizens.”
Operation Crystal Shield builds on existing DEA initiatives that target major drug trafficking networks, including the Mexican cartels that are responsible for the overwhelming majority of methamphetamine trafficked into and within the United States. From FY 2017 to FY 2019, DEA domestic seizures of methamphetamine increased 127 percent from 49,507 pounds to 112,146 pounds. During the same time frame, the number of DEA arrests related to methamphetamine rose nearly twenty percent.
“For decades, methamphetamine has been a leading cause of violence and addiction – a drug threat that has never gone away,” said Acting Administrator Dhillon. “With a 22 percent increase in methamphetamine-related overdose deaths, now is the time to act, and DEA is leading the way with a surge of interdiction efforts and resources, targeting regional transportation hubs throughout the United States. By reducing the supply of meth, we reduce the violence, addiction, and death it spreads.”
DEA New Orleans Field Division Special Agent in Charge Brad L. Byerley said, “Methamphetamine destroys lives and is one of the primary drivers of violence across the nation, including here in our four-state region. Operation Crystal Shield will build on DEA’s ongoing efforts to hold meth dealers accountable. We will continue to seize their profits, shut down their distribution networks, and put dealers where they belong – behind bars. By continuing to target local distribution networks in this transportation hub, DEA and our federal, state and local law enforcement partners are working to reduce violent crime and improve the quality of life for the citizens in our area and beyond.”
The DEA New Orleans Field Division, which covers Louisiana, Mississippi, Alabama, and Arkansas, is seeing a significant increase in the amount of methamphetamine seized, up 58 percent in the last year.
Virtually all methamphetamine in the United States comes through major ports of entry along the Southwest Border and is transported by tractor trailers and personal vehicles along the nation’s highways to major transfer centers around the country. It is often found in poly-drug loads, alongside cocaine, heroin, and fentanyl.
Parents and children are encouraged to educate themselves about the dangers of drugs by visiting DEA’s interactive websites at www.JustThinkTwice.com, www.GetSmartAboutDrugs.com, and www.dea.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Creston Man Sentenced to 188 Months in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Des Moines, Iowa—On February 24, 2020, Brandon Robert Fry, age 39, of Creston, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to 188 months in prison for Possession with Intent to Distribute Methamphetamine. Fry was ordered to serve five years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Fund.
Fry pleaded guilty to this offense on October 11, 2019. He admitted that he knowingly possessed over 500 grams of methamphetamine on June 4, 2019, which was found by law enforcement in a white Mercedes, in Creston. Fry admitted that he had intended to distribute the methamphetamine. At the time of this offense, Fry was on federal supervised release for a prior conviction of Felon in Possession of a Firearm.
This matter was investigated by the United States Probation Office, Des Moines Police Department, Iowa Division of Narcotics Enforcement, Creston Police Department, and the Mid-Iowa Narcotics Enforcement Task force. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
Career Offender Sentenced for Trafficking Crack CocaineRead the Press Release
PROVIDENCE – One of two men charged with delivering crack cocaine at the direction of an ACI inmate who ran a drug trafficking conspiracy from inside the state prison was sentenced today to five years in federal prison, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives Kelly D. Brady.
Gerald Price, 34, previously admitted to the court that, at the direction of ACI inmate James Gomes, 30, he delivered crack cocaine to a customer of Gomes who was not incarcerated. The drug deal was established during a telephone conference call between Gomes and Price, allegedly coordinated by Gomes’ mother, Lisa Ellis, 51, of Pawtucket.
According to information presented to the court, on June 22, 2018, Gomes telephoned his mother, who then allegedly conferenced Price into the call. During the 3-way conference call, Gomes advised Price that he had a buyer who wanted to buy crack cocaine. Price agreed to deliver the drugs on Gomes’ behalf and, at Gomes’ direction, provide the proceeds from the sale to Gomes’ mother.
Later that day, Price arranged with the buyer, an undercover officer, to meet at a location in Providence on June 26. The two men met as planned. Price provided the individual with more than 30 grams of crack cocaine in exchange for $1,920. Some of the proceeds from the sale of the drugs were allegedly provided to Ellis, who, after allegedly taking her share, deposited the remainder of the money in Gomes’ prison account.
Subsequently, Gomes asked Price to sell the same buyer a gun, and Price, after initially agreeing to make the sale, ultimately objected because he suspected that the buyer was an undercover police officer.
Price, previously convicted and incarcerated on several occasions on drug and firearm charges, pleaded guilty in U.S. District Court on November 8, 2019, to conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base, and distribution of 28 grams or more of cocaine base.
At sentencing today, U.S. District Court Chief Judge John J. McConnell, Jr., sentenced Price to 60 months in federal prison to be followed by four years’ supervised release.
Gomes, who pleaded guilty in federal court on October 15, 2019, to one count each of conspiracy to distribute 28 grams or more of cocaine base and distribution of 28 grams or more of cocaine base, and to three counts of distribution of cocaine base, is scheduled to be sentenced on March 19, 2020.
A second individual who admitted to delivering crack cocaine to customers of Gomes at Gomes’ request, Joshua Moore, 29, formerly of Pawtucket, was sentenced on November 21, 2019, to 60 months in federal prison to be followed by four years’ supervised release. Moore pleaded guilty on September 4, 2019, to conspiracy to distribute and possess with intent to distribute cocaine base, and to four counts of distribution of cocaine base.
Lisa Ellis, charged by way of indictment with one count of conspiracy to distribute and possess with intent to distribute cocaine base, and four counts of distribution of cocaine base, is awaiting trial in U.S. District Court.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF and the Rhode Island ATF Task Force.
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Cambridge Woman Indicted for Stealing Social Security and Snap BenefitsRead the Press Release
BOSTON – A Cambridge woman was arrested on Friday, February 21st for stealing Social Security and Supplemental Nutrition Assistance Program benefits.
Phaedra M. Sheets, 45, was charged in an indictment with two counts of theft of public funds. Sheets pleaded not guilty before U.S. District Court Magistrate Judge M. Page Kelley.
According to the indictment, Sheets stole approximately $71,636 in Social Security benefits from December 2009 through September 2018. Sheets also stole approximately $13,923 in Supplemental Nutrition Assistance Program benefits, formerly known as food stamps.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent until and proven guilty beyond a reasonable doubt in a court of law.
Buckfield Man Sentenced to over Eight Years for Cocaine Trafficking OffenseRead the Press Release
Portland, Maine: A Buckfield man was sentenced today in federal court in Portland for possession with intent to distribute more than 500 grams of cocaine, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Nancy Torresen sentenced Joshua Morin, 33, to 100 months in prison and three years of supervised release. Morin pleaded guilty on June 24, 2019.
According to court records, on January 2, 2019, after a police pursuit, Morin crashed his car and then continued to flee officers on foot. After officers apprehended him, they recovered a large amount of cocaine from his person and from just outside the car he had been driving. Police also recovered $20,000 cash at the scene of the crash. The cocaine weighed approximately 1.6 kilograms, or about 3.5 pounds. Morin told the police that he distributed the cocaine in ounce and half-ounce quantities.
The Maine Drug Enforcement Agency, the Oxford County Sheriff’s Office, the Androscoggin County Sheriff’s Office, the Maine State Police, the Lewiston Police Department and the FBI investigated the case.
Bridgeport Man Sentenced to More Than 21 Years in Federal Prison for Violent Armed RobberiesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JACHIM BROWN, also known as “Ameer Edwards,” 29, of Bridgeport, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 260 months of imprisonment, followed by five years of supervised release, for committing several violent armed robberies in 2017 during which he shot and wounded two individuals.
According to court documents and statements made in court:
On September 27, 2017, Brown, wearing a mask and pointing a gun, entered Nikita’s Bar, located on Iranistan Avenue in Bridgeport, and pointed a gun at the only employee who was working at the time. Brown directed the employee to location behind the bar to retrieve a key to a safe. After the employee complied, Brown opened the safe and stole approximately $2,450. During this robbery, the car of Brown’s half-brother, Eric Chambers, can be seen on surveillance video driving past the entrance to the bar. Chambers had previously worked security at the bar.
In the early morning hours of November 9, 2017, Brown, again brandishing a gun, robbed an employee of Avenue Restaurant who was couriering approximately $2,000 in cash to Bishop’s Corner Café on Boston Avenue in Bridgeport. Surveillance video outside Bishop’s Corner again revealed Chambers’ car in close vicinity to the robbery. On November 13, 2017, the same employee, who had delegated his money courier responsibilities to another security guard after the November 9 robbery, was again confronted by Brown. When Brown realized that the employee did not have the cash, he shot the employee in the thigh.
On November 14, 2017, Brown, wearing a mask and brandishing a gun, entered the Bar Restaurant, located on Main Street in Stratford, and walked directly to a bin near the cash register that typically contained approximately 80 envelopes with cash payments for employees of the Bar Restaurant and other establishments. Brown grabbed the bin, pointed his gun at one employee’s head, and turned and fired at a second employee who had his hands raised, hitting the second employee in his stomach. Surveillance video revealed that Brown had been dropped off behind the restaurant by Chambers.
On November 16, 2017, at about 9:35 a.m., Bridgeport Police responded to a call of an armed robbery in progress at EbLens, located on Pequonnock Street in Bridgeport. After Brown exited the store, a Bridgeport Police officer chased him on foot. As Brown attempted to get into Chambers’ car, he turned and fired at the police officer. The officer returned fire, tackled Brown and placed him under arrest.
At the time of his arrest, Brown possessed a Raven P25 .25 ACP caliber handgun. Forensic analysis of the firearm revealed that it had also been used in the shootings of the two individuals on November 13 and 14.
Brown has been detained since his arrest. On May 29, 2019, he pleaded guilty to four counts of Hobbs Act robbery and one count of discharging a firearm during and in relation to a crime of violence.
On March 19, 2019, a jury found Chambers, 36, of Bridgeport, guilty of four counts of aiding and abetting in Hobbs Act robbery. He awaits sentencing.
This matter was investigated by the Federal Bureau of Investigation, Bridgeport Police Department and Stratford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale, Jocelyn Kaoutzanis and Peter Markle.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Boca Raton Man Arrested for Producing and Distributing Child PornographyRead the Press Release
West Palm Beach, Florida – Robert Solove, 28, of Boca Raton, Florida, was arrested and charged by federal criminal complaint with production, distribution, and possession of child pornography.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
According to court records, KiK username rsolove99 was observed posting images in an internet chat room of a young girl engaged in sexually explicit acts. The girl in the images appeared to be a female toddler. During a chat, rsolove99 said that he had taken the images of the female toddler. Investigation of the username led law enforcement to Solove and his residence. While executing a search warrant at Solove’s home on February 18, 2020, law enforcement officers observed a female toddler. The officers determined that the toddler needed medical attention and called for an ambulance to transport her to the hospital. Solove had two cellular telephones that contained videos of children who appeared to be under 12 engaged in sexually explicit acts. Federal agents arrested Solove for production, distribution, and possession of child pornography.
Solove’s pretrial detention hearing is set for 10:00 a.m. on March 26, 2020, in federal magistrate court in West Palm Beach, Florida.
U.S. Attorney Ariana Fajardo Orshan commended the investigation efforts of HSI and the Palm Beach County Sheriffs Office. Assistant U.S. Attorney Gregory Schiller is prosecuting this case. Anyone with information about this matter should contact Homeland Security Investigations by telephone at (866) 347-2423 (HSI Tipline Number) or on-line at www.ice.gov/webform/hsi-tip-form.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
A criminal complaint is an accusation and defendant is presumed innocent unless and until he is found guilty beyond a reasonable doubt.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Baltimore Felon Sentenced to More Than 12 Years in Federal Prison for Two Armed RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Benjamin Fowlkes, age 35, of Baltimore, Maryland, to 150 months in federal prison, followed by three years of supervised release, for the armed robbery of a convenience store and the armed robbery of a bank. Judge Hollander also ordered Fowlkes to pay restitution of $13, 294.92.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, on November 26, 2018, shortly before 11 p.m., Fowlkes robbed a convenience store located in the 2700 block of West Franklin Street in Baltimore, displaying what appeared to be a silver semiautomatic handgun, but was in fact an air gun. Fowlkes ordered the store employees to open the cash register and give him the cash, which they did. Fowlkes then fled.
The next day, Fowlkes robbed a bank located in the 3600 block of Boston Street in Baltimore. Shortly after the bank opened, Fowlkes entered the bank and asked to open an account. Fowlkes was directed to a customer service employee in another part of the bank. Fowlkes pulled a yellow folder from a white mesh laundry bag, asked for a pen, and then wrote a note demanding money, which he passed to the employee. The employee advised that there was no money in the customer service area. Fowlkes took the note back, stated that he had a gun, and drew what appeared to be a silver semiautomatic handgun—but that was in fact an air gun—from the white mesh laundry bag. Fowlkes told the employee, who was on crutches, to get up slowly. The victim employee complied and walked to the teller area of the bank, where two other employees were working, to get the money Fowlkes demanded. Fowlkes followed her there. While in the teller area, Fowlkes again displayed the silver air gun and demanded money, and also demanded one of the tellers’ car keys. One employee handed over the keys to his car—a Hyundai Sonata—and another employee handed Fowlkes the cash from the teller drawers, which Fowlkes placed in the white mesh laundry bag. Fowlkes then escaped in the stolen Hyundai Sonata.
Fowlkes was arrested on November 29, 2018, after a Baltimore Police Officer in the Southwestern District determined that the tags on a Hyundai Sonata driven by Fowlkes had been stolen. When Fowlkes was pulled over, he was wearing the same zip-up hoodie worn during the robberies, and he had $2,021 in cash on him, which was stolen from the bank. A subsequent search warrant executed at his residence resulted in law enforcement recovering the white mesh laundry bag, yellow folder, and demand note used at the bank robbery, mail addressed to the owner of the Hyundai Sonata, which Fowlkes had taken from the stolen car, and the silver air gun used in connection with both robberies.
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. Attorney Paul A. Riley, who prosecuted the case.
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Attorney charged with making false statement related to bribery caseRead the Press Release
BROWNSVILLE, Texas – A McAllen woman has been taken into custody following the return of an indictment alleging she made a false statement to authorities in a bribery investigation involving alien detainee roster lists, announced U.S. Attorney Ryan K. Patrick.
The grand jury returned the indictment under seal Feb. 18 against Cynthia Alanis, 27. She is expected to make her initial appearance before U.S. Magistrate Judge Ignacio Torteya III at 2 p.m. today.
The charge stems from a bribery investigation involving Benito Barrientez, 42, Lyford; Exy Adelaida Gomez, 42, Los Fresnos; and Damian Ortiz, 30, and her brother - McAllen attorney Roel Alanis, 39, both of Weslaco. They were charged with conspiracy to commit bribery and bribery in relation to obtaining alien detainee roster lists.
The indictment against Cynthia Alanis alleges she falsely stated she did not receive nor know of any alien detainee roster lists given to the Alanis law firm. However, the charges allege she had previously received detainee roster lists and also knew of such lists given to the law firm.
Barrientez and Ortiz were employed at the Willacy County Regional Detention Center as a classification clerk and a senior program director, respectively. Gomez was a corrections officer at the El Valle Detention Center. Both facilities are located in Raymondville.
The indictment alleges Barrientes, Ortiz and Gomez obtained alien detainee roster lists from the El Valle Detention Center and the Port Isabel Detention Center-Los Fresnos while employed in their respective capacities.
The lists were then allegedly provided to Roel Alanis, an attorney with a practice in in the Rio Grande Valley. Roel Alanis then allegedly paid money to the employees in return for receiving the lists which contained names, dates of birth, country of origin and A-numbers of alien detainees. The charges allege Roel Alanis would visit the illegal aliens for the purpose of hiring his law firm as their attorney in immigration proceedings. Alternatively, he would instruct his sister or others to do so, according to the charges.
If convicted, Cynthia Alanis faces up to five years in federal prison and a possible $250,000 maximum fine.
Barrientez and Ortiz have pleaded guilty and are set for sentencing April 29.
Immigration and Customs Enforcement (ICE) - Office of Professional Responsibility conducted the investigation with assistance from the Department of Homeland Security - Office of the Inspector General and ICE's Homeland Security Investigations. Assistant U.S. Attorney Oscar Ponce is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.|
A defendant is presumed innocent unless convicted through due process of law.Ansonia Man Sentenced to More Than 3 Years in Federal Prison for Distributing Fentanyl and CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KENTWAN ROBINSON, also known as Thomas Robinson, 27, of Ansonia, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 37 months of imprisonment, followed by three years of supervised release, for distributing fentanyl and crack cocaine.
According to court documents and statements made in court, in November 2018, the Drug Enforcement Administration received information that Robinson was distributing fentanyl in the Bridgeport area. On three occasions between November 2018 and January 2019, investigators conducted controlled purchases of fentanyl from Robinson at various locations. During one of the transactions, Robinson also sold a quantity of crack cocaine.
Robinson was arrested at his Ansonia residence on February 6, 2019. At the time of his arrest, he possessed approximately 10 grams of fentanyl that he intended to distribute and approximately $1,800 in cash.
Robinson has been detained since his arrest. On July 31, 2019, he pleaded guilty to two counts of distribution of fentanyl, one count of distribution of fentanyl and cocaine base (“crack”), and one count of possession with intent to distribute fentanyl.
Robinson’s criminal history includes convictions for drug, larceny and weapons offenses. He also has charges pending in Ohio after it is alleged that, on December 28, 2018, he drove his car from Ohio State Police at a high rate of speed. After the car crashed, Robinson attempted to flee on foot before he was apprehended. A search of the car revealed a loaded 9mm handgun with an extended magazine and a “selector switch,” a device used to convert a semi-automatic pistol to a rapid-fire automatic weapon.
This matter was investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Bridgeport Police Department. The Task Force includes personnel from the DEA, Connecticut State Police and Norwalk, Stamford, Stratford, Milford, Bridgeport and Trumbull Police Departments. The case was prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Aiken County Man Sentenced to 24 Years in Federal Prison for Drug ConspiracyRead the Press Release
Columbia, South Carolina ---- Acting United States Attorney A. Lance Crick announced today that Brian William Rose of Aiken County was sentenced in federal court for his involvement in a methamphetamine and heroin conspiracy and being a felon in possession of a firearm.
United States District Judge J. Michelle Childs of Columbia sentenced Rose to 24 years in federal prison followed by 5 years of supervised release on the drug conspiracy and a concurrent 10 years in prison followed by 3 years of supervised release for possessing a firearm as a felon. There is no parole in the federal system.
Co-defendants Ricardo Dunbar, James Clinton Gunter, Jr., Joseph Price Langford, and Scott Dylan Green, also of Aiken County, were previously sentenced for their involvement in the conspiracy.
Evidence presented to the court when Rose pleaded guilty established that the Drug Enforcement Administration initiated an investigation into the narcotics distribution activities of co-defendants Kenneth Evans and Eddie Brockington. Evans is an inmate in the South Carolina Department of Corrections and Brockington is an inmate in the Georgia Department of Corrections. Through controlled purchases and other investigative techniques, agents learned that members of the conspiracy purchased and distributed large amounts of methamphetamine and/or heroin for Evans and Brockington. Some of the individuals charged were responsible for transporting multi-kilogram amounts of methamphetamine and heroin into South Carolina and then distributing the drugs throughout the state. Brockington and Evans have pleaded guilty to the conspiracy charge against them and are awaiting sentencing.
The case was investigated by agents of the Drug Enforcement Administration and the Aiken County Sheriff's Office. Assistant United States Attorney William K. Witherspoon of the Columbia office prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Accounts Payable Clerk Indicted for FraudRead the Press Release
PROVIDENCE – An accounts payable clerk employed by a Providence small business that sells gifts and home décor items was arraigned in U.S. District Court in Providence today on charges he allegedly misappropriated approximately $302,000 of company funds for his own personal use and for use by an acquaintance.
Grant Devillez, 35, of Dayville, Conn., was arraigned on an indictment charging him with ten counts of wire fraud, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
It is alleged that for nearly three years beginning in October 2015, Devillez was responsible for preparing lists of proposed vendor payments, and after receiving approval from the company’s owner to make the payments, he was provided a bank access code by the owner to make those payments by electronic wire transfers.
It is alleged that Devillez made a partial payment or no payment at all to some vendors, transferring the balance of approved funds from his employer’s business bank account to his own bank accounts or to an account owned by another person. It is alleged that after making the unauthorized transfers, Devillez falsified records to reflect that full payment had been made to the vendors.
It is alleged that Devillez misappropriated approximately $302,000.
Devillez, arrested today by FBI agents who investigated the matter, was arraigned before U.S. District Court Magistrate Judge Patricia A. Sullivan and released on unsecured bond and GPS monitoring.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Wire fraud is punishable by statutory maximum penalties of 20 years imprisonment, a fine of twice the gross/gain loss, and 3 years’ supervised release.
The case is being prosecuted by Assistant United States Attorney Denise M. Barton.
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21 February 2020
York Man Sentenced to 230 Months’ Imprisonment for Robbery and Firearms ConvictionsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Johnson, age 52, of York, Pennsylvania, was sentenced on February 20, 2020, by Senior U.S. District Court Judge Sylvia H. Rambo to 230 months’ imprisonment for his convictions on Hobbs Act robbery and firearms convictions.
According to U.S. Attorney David J. Freed, Johnson and his co-conspirator robbed and shot the victim in the head on Girard Avenue, York, on January 9, 2016. During the investigation, law enforcement officers recovered the gun used to shoot the victim, a stolen Smith and Wesson 9mm caliber semiautomatic pistol, from Johnson’s co-conspirator during her arrest on January 13, 2016. Johnson was convicted on all charges after a two-day jury trial in May 2019.
Testimony established that the victim remained in a comatose state for at least four months following the shooting. The victim required three brain surgeries and other life-saving medical interventions to repair the damage caused by Johnson and his co-conspirator.
Based on Johnson’s conviction for discharging a firearm during a crime of violence, Johnson was sentenced to an enhanced penalty requiring a mandatory minimum of 10 years’ imprisonment, which was ordered to be served consecutively to the 110 month sentence imposed for the Hobbs Act robbery conviction. Judge Rambo ordered that the federal sentence will be served after any other sentence imposed by the York County Court of Common Pleas on several charges against Johnson that are still pending there.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant United States Attorney William A. Behe prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Woonsocket Man Admits to Possessing 50,000 Images of Child PornographyRead the Press Release
PROVIDENCE – A Woonsocket man arrested by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) task force in February 2019, today admitted in federal court to having been in possession of more than 50,000 images and 200 videos of child pornography at the time of his arrest.
Appearing today before U.S. District Court Judge Mary S. McElroy, Jason Muschiano, 39, pled guilty to possession of child pornography, announced United States Attorney Aaron L. Weisman, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
According to information presented to the court, during the month of November 2018, members of the ICAC task force conducted an online child exploitation investigation involving the use of peer-to-peer networks. Detectives observed an IP address they later determined belonged to Muschiano sharing files of suspected child pornography.
On February 14, 2019, members of the ICAC task force executed a court-authorized search of Muschiano’s residence. During the search, Muschiano admitted to law enforcement that he had downloaded and viewed child pornography depicting toddlers ages three, four, and five years old.
A full forensic review of digital storage devices seized from Muschiano’s residence revealed over 50,000 images and 200 videos depicting child pornography.
Muschiano is scheduled to be sentenced on May 22, 2020.
Possession of child pornography is punishable by statutory penalties of up to 20 years imprisonment; a term of supervised release of life; and a $5,000 special assessment.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Wisconsin Resident Admits Role in Schemes that Defrauded Illinois Company of More Than $9 MillionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEVEN C. GOLD, 47, of Pleasant Prairie, Wisconsin, pleaded guilty today in Bridgeport federal court to fraud and conspiracy offenses stemming from his participation in two separate scheme that defrauded his Illinois-based company of more than $9 million.
According to court documents and statements made in court, Gold and John T. Finkle III were employed by JST, a supplier of electronic components based in Waukegan, Illinois. Finkle, of East Haven, was primarily employed in sales for JST and Gold operated the accounting and billing systems for the company. Between approximately February 2015 and December 2018, Finkle conspired with Kenneth Pedroli, and Gold, to defraud JST through a scheme involving purchases of electronic components that Pedroli made from JST for a business he operated in Islandia, New York. As part of the scheme, Finkle instructed Pedroli to place his orders and list prices at a fraction of JST’s published prices. After Pedroli’s orders were submitted to JST at the discounted prices, the products were shipped from JST to Pedroli. Finkle instructed Pedroli to pay only a portion of the invoiced price and to make the payments directly to Finkle, which Pedroli did. Finkle deposited the payments into his personal checking account, and provided a portion of the funds to Gold, who manipulated the accounting records of JST to make it appear that Pedroli had paid JST for the products he received.
JST was defrauded of $3,359,058.69 through this scheme.
During the investigation of the scheme involving Finkle and Pedroli, investigators uncovered an additional $6,060,151 that Gold had stolen from JST by accessing and manipulating JSTs accounting system. Gold used the stolen funds to pay for personal expenses that included vacations, online gambling, home improvement costs, furniture, clothes, restaurants, college tuition, and car payments. He also unlawfully transferred hundreds of thousands of dollars in JST funds to his wife’s company.
Gold pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of wire fraud. Both offenses carry a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Janet C. Hall on May 20, 2020.
Gold is released on a $500,000 bond pending sentencing.
Finkle and Pedroli previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. On November 22, 2019, Finkle was sentenced to 24 months of imprisonment and, on December 12, 2019, Pedroli was sentenced to three years of probation.
This investigation has been conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ray Miller of the District of Connecticut, and Assistant U.S. Attorney Jacqueline Stern of the Northern District of Illinois.
Wheeling woman sentenced for role in cocaine and heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Tiffany Sells, of Wheeling, West Virginia, was sentenced today to 21 months incarceration for her role in a cocaine and heroin distribution operation, U.S. Attorney Bill Powell announced.
Sells, age 38, pled guilty to one count of “Distribution of Cocaine Base within 1,000 feet of a Protected Location” in July 2019. Sells admitted to selling cocaine near Jensen Playground on Wheeling Island in July 2018.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The investigation was led by the Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative. The task force is comprised of the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department. Those assisting in the arrests are the United States Marshal Service; Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Martins Ferry, Ohio Police Department; and the Columbus, Ohio Police Department.
U.S. District Judge John Preston Bailey presided.
West Tennessee Psychiatrist Found Guilty of Unlawfully Distributing OpioidsRead the Press Release
First Trial Guilty Verdict for ARPO Strike Force
Memphis, TN – A federal jury found a west Tennessee doctor guilty today for unlawfully distributing opioids to purported patients and to others who were never his patients. The defendant was charged in an April 2019 indictment as part of the first Appalachian Regional Prescription Opioid (ARPO) Strike Force Takedown, and this was the first trial guilty verdict for the ARPO Strike Force.
Following an eight-day trial, Richard Farmer, M.D., 83, of Memphis, Tennessee, a licensed psychiatrist, was found guilty of three counts of distribution of controlled substances outside the scope of professional practice and without a legitimate medical purpose. Sentencing is scheduled for May 22 by U.S. District Judge Thomas L. Parker of the Western District of Tennessee, who presided over the trial.
"The Department of Justice will not relent in its pursuit of those responsible for fueling the opioid epidemic in the Appalachian region," said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. "Today’s verdict, which shows that our efforts are yielding tangible results, is a credit to the hard work of the Criminal Division’s ARPO Strike Force and our U.S. Attorney’s Office and law enforcement partners."
"Opioid misuse and abuse is an insidious epidemic, created in large part by the over-prescribing and diversion of potent opioids," said U.S. Attorney D. Michael Dunavant of the Western District of Tennessee. "This guilty verdict demonstrates our resolve to aggressively prosecute medical personnel who misuse their positions of trust to exploit the very people coming to them for help."
"Doctors who take advantage of patients suffering from addiction are no different than street corner drug dealers," said Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration’s (DEA) Louisville Division Office. "I am proud of the dedicated men and women of DEA who worked tirelessly to bring Dr. Farmer to justice."
According to the evidence presented at trial, Farmer prescribed opioids to three sisters with whom he had ongoing sexual contact during the time he was prescribing. The evidence showed that between July 2016 and January 2019, Farmer prescribed over 1,200 pills, even though the three sisters showed clear signs of addiction. The evidence further showed that he kept almost no patient files on these women, and that he also wrote opioid prescriptions for the women’s friends and neighbors without any office visits.
The DEA, along with the Shelby County Sheriff’s Office and the Jackson Police Department, investigated the case.
Trial Attorney Jillian Willis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee are prosecuting the case.
The Fraud Section leads the 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. There have thus far been 24 guilty pleas as a result of the ARPO Strike Force’s efforts.
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.
West Tennessee Psychiatrist Found Guilty of Unlawfully Distributing OpioidsRead the Press Release
A federal jury found a west Tennessee doctor guilty today for unlawfully distributing opioids to purported patients and to others who were never his patients. The defendant was charged in an April 2019 indictment as part of the first Appalachian Regional Prescription Opioid (ARPO) Strike Force Takedown, and this was the first trial guilty verdict for the ARPO Strike Force.
Following an eight-day trial, Richard Farmer, M.D., 83, of Memphis, Tennessee, a licensed psychiatrist, was found guilty of three counts of distribution of controlled substances outside the scope of professional practice and without a legitimate medical purpose. Sentencing is scheduled for May 22 by U.S. District Judge Thomas L. Parker of the Western District of Tennessee, who presided over the trial.
“The Department of Justice will not relent in its pursuit of those responsible for fueling the opioid epidemic in the Appalachian region,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s verdict, which shows that our efforts are yielding tangible results, is a credit to the hard work of the Criminal Division’s ARPO Strike Force and our U.S. Attorney’s Office and law enforcement partners.”
“Opioid misuse and abuse is an insidious epidemic, created in large part by the over-prescribing and diversion of potent opioids,” said U.S. Attorney D. Michael Dunavant of the Western District of Tennessee. “This guilty verdict demonstrates our resolve to aggressively prosecute medical personnel who misuse their positions of trust to exploit the very people coming to them for help.”
“Doctors who take advantage of patients suffering from addiction are no different than street corner drug dealers,” said Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration’s (DEA) Louisville Division Office. “I am proud of the dedicated men and women of DEA who worked tirelessly to bring Dr. Farmer to justice.”
According to the evidence presented at trial, Farmer prescribed opioids to three sisters with whom he had ongoing sexual contact during the time he was prescribing. The evidence showed that between July 2016 and January 2019, Farmer prescribed over 1,200 pills, even though the three sisters showed clear signs of addiction. The evidence further showed that he kept almost no patient files on these women, and that he also wrote opioid prescriptions for the women’s friends and neighbors without any office visits.
The DEA, along with the Shelby County Sheriff’s Office and the Jackson Police Department, investigated the case.
Trial Attorney Jillian Willis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee are prosecuting the case.
The Fraud Section leads the 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. There have thus far been 24 guilty pleas as a result of the ARPO Strike Force’s efforts.
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.
Wells Fargo Agrees to Pay $3 Billion to Resolve Criminal and Civil Investigations into Sales Practices Involving the Opening of Millions of Accounts without Customer AuthorizationRead the Press Release
Wells Fargo & Company and its subsidiary, Wells Fargo Bank, N.A., have agreed to pay $3 billion to resolve their potential criminal and civil liability stemming from a practice between 2002 and 2016 of pressuring employees to meet unrealistic sales goals that led thousands of employees to provide millions of accounts or products to customers under false pretenses or without consent, often by creating false records or misusing customers’ identities, the Department of Justice announced today.
As part of the agreements with the United States Attorney’s Offices for the Central District of California and the Western District of North Carolina, the Commercial Litigation Branch of the Civil Division, and the Securities and Exchange Commission, Wells Fargo admitted that it collected millions of dollars in fees and interest to which the Company was not entitled, harmed the credit ratings of certain customers, and unlawfully misused customers’ sensitive personal information, including customers’ means of identification.
“When companies cheat to compete, they harm customers and other competitors,” said Deputy Assistant Attorney General Michael D. Granston of the Department of Justice’s Civil Division. “This settlement holds Wells Fargo accountable for tolerating fraudulent conduct that is remarkable both for its duration and scope, and for its blatant disregard of customer’s private information. The Civil Division will continue to use all available tools to protect the American public from fraud and abuse, including misconduct by or against their financial institutions.”
“Our settlement with Wells Fargo, and the $3 billion monetary penalty imposed on the bank, go far beyond ‘the cost of doing business.’ They are appropriate given the staggering size, scope and duration of Wells Fargo’s illicit conduct, which spanned well over a decade,” said U.S. Attorney Andrew Murray for the Western District of North Carolina. “When a reputable institution like Wells Fargo caves to the pernicious forces of greed, and puts its own interests ahead of those of the customers it claims to serve, my office will not sit idle. Today’s announcement should serve as a stark reminder that no institution is too big, too powerful, or too well-known to be held accountable and face enforcement action for its wrongdoings.”
“This case illustrates a complete failure of leadership at multiple levels within the Bank. Simply put, Wells Fargo traded its hard-earned reputation for short-term profits, and harmed untold numbers of customers along the way,” said U.S. Attorney Nick Hanna for the Central District of California. “We are hopeful that this $3 billion penalty, along with the personnel and structural changes at the Bank, will ensure that such conduct will not reoccur.”
“Our office is committed to bringing to justice those who deliberately falsify and fabricate bank records in order to deceive regulators and the public,” said Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection. “I commend our agent and our law enforcement partners for their hard work and persistence that led to today’s announcement.”
“Today’s multi-billion-dollar penalty holds Wells Fargo accountable for its unlawful sales practices and pressure tactics in which it deceived millions of clients, thus causing substantial hardship for the very individuals who placed their trust in the institution,” said Inspector General Jay N. Lerner Federal Deposit Insurance Corporation. “The FDIC Office of Inspector General is committed to working with our law enforcement partners in order to investigate such financial crimes that harm customers and investors, and undermine the integrity of the banking sector.”
The criminal investigation into false bank records and identity theft is being resolved with a deferred prosecution agreement in which Wells Fargo will not be prosecuted during the three-year term of the agreement if it abides by certain conditions, including continuing to cooperate with further government investigations. Wells Fargo also entered a civil settlement agreement under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) based on Wells Fargo’s creation of false bank records. FIRREA authorizes the federal government to seek civil penalties against financial institutions that violate various predicate criminal offenses, including false bank records. Wells Fargo also agreed to the SEC instituting a cease-and-desist proceeding finding violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The $3 billion payment resolves all three matters, and includes a $500 million civil penalty to be distributed by the SEC to investors.
The 16-page statement of facts accompanying the deferred prosecution agreement and civil settlement agreement outlines a course of conduct over 15 years at Well Fargo’s Community Bank, which was then the largest operating segment of Wells Fargo, consistently generating more than half of the company’s revenue. The statement of facts outlines top Community Bank leaders’ knowledge of the conduct. As part of the statement of facts, Wells Fargo admitted the following:
Beginning in 1998, Wells Fargo increased its focus on sales volume and reliance on annual sales growth. A core part of this sales model was the “cross-sell strategy” to sell existing customers additional financial products. It was “the foundation of our business model,” according to Wells Fargo. In its 2012 Vision and Values statement, Wells Fargo stated: “We start with what the customer needs – not with what we want to sell them.”
But, in contrast to Wells Fargo’s public statements and disclosures about needs-based selling, the Community Bank implemented a volume-based sales model in which employees were directed and pressured to sell large volumes of products to existing customers, often with little regard to actual customer need or expected use. The Community Bank’s onerous sales goals and accompanying management pressure led thousands of its employees to engage in unlawful conduct – including fraud, identity theft and the falsification of bank records – and unethical practices to sell product of no or little value to the customer.
Many of these practices were referred to within Wells Fargo as “gaming.” Gaming strategies varied widely, but included using existing customers’ identities – without their consent – to open checking and savings, debit card, credit card, bill pay and global remittance accounts. From 2002 to 2016, gaming practices included forging customer signatures to open accounts without authorization, creating PINs to activate unauthorized debit cards, moving money from millions of customer accounts to unauthorized accounts in a practice known internally as “simulated funding,” opening credit cards and bill pay products without authorization, altering customers’ true contact information to prevent customers from learning of unauthorized accounts and prevent Wells Fargo employees from reaching customers to conduct customer satisfaction surveys, and encouraging customers to open accounts they neither wanted or needed.
The top managers of the Community Bank were aware of the unlawful and unethical gaming practices as early as 2002, and they knew that the conduct was increasing due to onerous sales goals and pressure from management to meet these goals. One internal investigator in 2004 called the problem a “growing plague.” The following year, another internal investigator said the problem was “spiraling out of control.” Even after senior managers in the Community Bank directly called into question the implementation of the cross-sell strategy, Community Bank senior leadership refused to alter the sales model, which contained unrealistic sales goals and a focus on low-quality secondary accounts.
Despite knowledge of the illegal sales practices, Community Bank senior leadership failed to take sufficient action to prevent and reduce the incidence of such practices. Senior leadership of the Community Bank minimized the problems to Wells Fargo management and its board of directors, by casting the problem as driven by individual misconduct instead of the sales model itself. Community Bank senior leadership viewed negative sales quality and integrity as a necessary byproduct of the increased sales and as merely the cost of doing business.
* * *
The government’s decision to enter into the deferred prosecution agreement and civil settlement took into account a number of factors, including Wells Fargo’s extensive cooperation and substantial assistance with the government’s investigations; Wells Fargo’s admission of wrongdoing; its continued cooperation in the investigations; its prior settlements in a series of regulatory and civil actions; and remedial actions, including significant changes in Wells Fargo’s management and its board of directors, an enhanced compliance program, and significant work to identify and compensate customers who may have been victims. The deferred prosecution agreement will be in effect for three years.
The global settlement also reflects coordination between the Department of Justice and the SEC to ensure a resolution that appropriately addresses the severity of the defendants’ conduct while avoiding the imposition of fines and penalties that are unnecessarily duplicative.
The deferred prosecution agreement was handled by the United States Attorney’s Offices in Los Angeles and Charlotte, with investigative support from the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation - Office of Inspector General, the Federal Housing Finance Agency - Office of Inspector General, the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, and the United States Postal Inspection Service.
The civil settlement agreement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office in Los Angeles.
Wells Fargo Agrees to Pay $3 Billion to Resolve Criminal and Civil Investigations into Sales Practices Involving the Opening of Millions of Accounts Without Customer AuthorizationRead the Press Release
CIVIL SETTLEMENT AGREEMENT DEFERRED PROSECUTION AGREEMENTLOS ANGELES – Wells Fargo & Co. and its subsidiary, Wells Fargo Bank, N.A., have agreed to pay $3 billion to resolve three separate matters stemming from a years-long practice of pressuring employees to meet unrealistic sales goals – which led thousands of employees to provide millions of accounts or products to customers under false pretenses or without consent, often by creating false records or misusing customers’ identities, the Department of Justice announced today.
As part of the agreements with the United States Attorney’s Offices for the Central District of California and the Western District of North Carolina, the Justice Department’s Civil Division, and the Securities and Exchange Commission, Wells Fargo admitted that it collected millions of dollars in fees and interest to which the company was not entitled, harmed the credit ratings of certain customers, and unlawfully misused customers’ sensitive personal information.
“This case illustrates a complete failure of leadership at multiple levels within the bank. Simply put, Wells Fargo traded its hard-earned reputation for short-term profits, and harmed untold numbers of customers along the way,” said United States Attorney Nick Hanna. “We are hopeful that this $3 billion penalty, along with the personnel and structural changes at the bank, will ensure that such conduct will not reoccur.”
The criminal investigation into false bank records and identity theft is being resolved with a deferred prosecution agreement in which Wells Fargo will not be prosecuted during the three-year term of the agreement if it abides by certain conditions, including continuing to cooperate with ongoing investigations. Wells Fargo also entered a civil settlement agreement under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) based on Wells Fargo’s creation of false bank records. Wells Fargo also agreed to the SEC instituting a cease-and-desist proceeding finding violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The $3 billion payment resolves all three matters, and includes a $500 million civil penalty to be distributed by the SEC to investors.
“When companies cheat to compete, they harm customers and other competitors,” said Deputy Assistant Attorney General Michael D. Granston of the Department of Justice’s Civil Division. “This settlement holds Wells Fargo accountable for tolerating fraudulent conduct that is remarkable both for its duration and scope, and for its blatant disregard of customers’ private information. The Civil Division will continue to use all available tools to protect the American public from fraud and abuse, including misconduct by or against their financial institutions.”
“Our settlement with Wells Fargo, and the $3 billion monetary penalty imposed on the bank, go far beyond ‘the cost of doing business.’ They are appropriate given the staggering size, scope and duration of Wells Fargo’s illicit conduct, which spanned well over a decade,” said Andrew Murray, the United States Attorney for the Western District of North Carolina. “When a reputable institution like Wells Fargo caves to the pernicious forces of greed, and puts its own interests ahead of those of the customers it claims to serve, my office will not sit idle. Today’s announcement should serve as a stark reminder that no institution is too big, too powerful, or too well known to be held accountable and face enforcement action for its wrongdoings.”
The 16-page statement of facts accompanying the deferred prosecution agreement and civil settlement agreement outlines a course of conduct over 15 years at Well Fargo’s Community Bank, which was then the largest operating segment of Wells Fargo, consistently generating more than half of the company’s revenue. The statement of facts outlines top Community Bank leaders’ knowledge of the conduct. As part of the statement of facts, Wells Fargo admitted the following:
Beginning in 1998, Wells Fargo increased its focus on sales volume and reliance on annual sales growth. A core part of this sales model was the “cross-sell strategy” to sell existing customers additional financial products. It was “the foundation of our business model,” according to Wells Fargo. In its 2012 Vision and Values statement, Wells Fargo stated: “We start with what the customer needs – not with what we want to sell them.”
But, in contrast to Wells Fargo’s public statements and disclosures about needs-based selling, the Community Bank implemented a volume-based sales model in which employees were directed and pressured to sell large volumes of products to existing customers, often with little regard to actual customer need or expected use. The Community Bank’s onerous sales goals and accompanying management pressure led thousands of its employees to engage in unlawful conduct – including fraud, identity theft and the falsification of bank records – and unethical practices to sell products of no or little value to the customer.
Many of these practices were referred to within Wells Fargo as “gaming.” Gaming strategies varied widely, but included using existing customers’ identities – without their consent – to open checking and savings, debit card, credit card, bill pay and global remittance accounts. From 2002 to 2016, gaming practices included forging customer signatures to open accounts without authorization, creating PINs to activate unauthorized debit cards, moving money from millions of customer accounts to unauthorized accounts in a practice known internally as “simulated funding,” opening credit cards and bill pay products without authorization, altering customers’ true contact information to prevent customers from learning of unauthorized accounts and prevent Wells Fargo employees from reaching customers to conduct customer satisfaction surveys, and encouraging customers to open accounts they neither wanted or needed.
The top managers of the Community Bank were aware of the unlawful and unethical gaming practices as early as 2002, and they knew that the conduct was increasing due to onerous sales goals and pressure from management to meet these goals. One internal investigator in 2004 called the problem a “growing plague.” The following year, another internal investigator said the problem was “spiraling out of control.” Even after senior managers in the Community Bank directly called into question the implementation of the cross-sell strategy, Community Bank senior leadership refused to alter the sales model, which contained unrealistic sales goals and a focus on low-quality secondary accounts.
Despite knowledge of the illegal sales practices, Community Bank senior leadership failed to take sufficient action to prevent and reduce the incidence of such practices. Senior leadership of the Community Bank minimized the problems to Wells Fargo management and its board of directors, by casting the problem as driven by individual misconduct instead of the sales model itself. Community Bank senior leadership viewed negative sales quality and integrity as a necessary byproduct of the increased sales and as merely the cost of doing business.
“Our office is committed to bringing to justice those who deliberately falsify and fabricate bank records in order to deceive regulators and the public,” said Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection. “I commend our agent and our law enforcement partners for their hard work and persistence that led to today’s announcement.”
“Today’s multi-billion-dollar penalty holds Wells Fargo accountable for its unlawful sales practices and pressure tactics in which it deceived millions of clients, thus causing substantial hardship for the very individuals who placed their trust in the institution,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation. “The FDIC Office of Inspector General is committed to working with our law enforcement partners in order to investigate such financial crimes that harm customers and investors, and undermine the integrity of the banking sector.”
“Since 2016, FBI San Francisco has prioritized our criminal investigation into the unlawful practices by Wells Fargo. Trust in our banks and financial institutions is fundamental to the security and stability of the U.S. economy,” said FBI San Francisco Special Agent in Charge John F. Bennett. “The FBI has dedicated significant resources to uncovering the truth and ensuring the protection of American consumers.”
“The United States Postal Inspection Service has a long history of successfully investigating complex fraud cases,” stated San Francisco Division Inspector in Charge Rafael E. Nuñez. “Anyone or any organization engaging in deceptive practices should know they will not go undetected and will be held accountable. The collaborative investigative work on this case conducted by Postal Inspectors, our law enforcement partners, and the United States Attorney’s Offices illustrates our efforts to protect consumers.”
The government’s decision to enter into the deferred prosecution agreement and civil settlement took into account a number of factors, including Wells Fargo’s extensive cooperation and substantial assistance with the government’s investigations; Wells Fargo’s admission of wrongdoing; its continued cooperation with investigators; its prior settlements in a series of regulatory and civil actions; and remedial actions, including significant changes in Wells Fargo’s management and its board of directors, an enhanced compliance program, and significant work to identify and compensate customers who may have been victims. The deferred prosecution agreement will be in effect for three years.
The global settlement also reflects coordination between the Department of Justice and the SEC to ensure a resolution that appropriately addresses the severity of the defendants’ conduct while avoiding the imposition of fines and penalties that are unnecessarily duplicative.
The deferred prosecution agreement was handled by the United States Attorney’s Offices in Los Angeles and Charlotte, with investigative support from the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation - Office of Inspector General, the Federal Housing Finance Agency - Office of Inspector General, the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, and the United States Postal Inspection Service.
This matter was prosecuted by Assistant United States Attorneys Alexander B. Schwab and Carolyn S. Small of the Major Frauds Section, along with Special Assistant United States Attorneys Benjamin S. Kingsley and Thomas D. Stout, and Assistant United States Attorney Daniel S. Ryan of the Western District of North Carolina.
The civil settlement agreement was the result of a coordinated effort between the U.S. Attorney’s Offices in Los Angeles and Charlotte, and the Commercial Litigation Branch in the Civil Division of the Department of Justice. Special Assistant United States Attorney Ellen M. London and Assistant United States Attorneys Abraham C. Meltzer of the Civil Fraud Section and David M. Harris, chief of the Civil Division, along with DOJ Senior Litigation Counsel Jamie Yavelberg and DOJ Trial Attorney Mary Chris Dobbie represented the United States in the civil matter.
Wells Fargo Agrees to Pay $3 Billion to Resolve Criminal and Civil Investigations into Sales Practices Involving the Opening of Millions of Accounts Without Customer AuthorizationRead the Press Release
CHARLOTTE, N.C. - Wells Fargo & Company and its subsidiary, Wells Fargo Bank, N.A., have agreed to pay $3 billion to resolve their potential criminal and civil liability stemming from a practice between 2002 and 2016 of pressuring employees to meet unrealistic sales goals that led thousands of employees to provide millions of accounts or products to customers under false pretenses or without consent, often by creating false records or misusing customers’ identities, the Department of Justice announced today.
As part of the agreements with the United States Attorney’s Offices for the Western District of North Carolina and the Central District of California, the Commercial Litigation Branch of the Civil Division, and the Securities and Exchange Commission, Wells Fargo admitted that it collected millions of dollars in fees and interest to which the Company was not entitled, harmed the credit ratings of certain customers, and unlawfully misused customers’ sensitive personal information, including customers’ means of identification.
"When companies cheat to compete, they harm customers and other competitors," said Deputy Assistant Attorney General Michael D. Granston of the Department of Justice’s Civil Division. "This settlement holds Wells Fargo accountable for tolerating fraudulent conduct that is remarkable both for its duration and scope, and for its blatant disregard of customer’s private information. The Civil Division will continue to use all available tools to protect the American public from fraud and abuse, including misconduct by or against their financial institutions."
"Our settlement with Wells Fargo, and the $3 billion monetary penalty imposed on the bank, go far beyond ‘the cost of doing business.’ They are appropriate given the staggering size, scope and duration of Wells Fargo’s illicit conduct, which spanned well over a decade," said U.S. Attorney Andrew Murray for the Western District of North Carolina. "When a reputable institution like Wells Fargo caves to the pernicious forces of greed, and puts its own interests ahead of those of the customers it claims to serve, my office will not sit idle. Today’s
announcement should serve as a stark reminder that no institution is too big, too powerful, or too well-known to be held accountable and face enforcement action for its wrongdoings."
"This case illustrates a complete failure of leadership at multiple levels within the Bank. Simply put, Wells Fargo traded its hard-earned reputation for short-term profits, and harmed untold numbers of customers along the way," said U.S. Attorney Nick Hanna for the Central District of California. "We are hopeful that this $3 billion penalty, along with the personnel and structural changes at the Bank, will ensure that such conduct will not reoccur."
"Our office is committed to bringing to justice those who deliberately falsify and fabricate bank records in order to deceive regulators and the public," said Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection. "I commend our agent and our law enforcement partners for their hard work and persistence that led to today’s announcement."
"Today’s multi-billion-dollar penalty holds Wells Fargo accountable for its unlawful sales practices and pressure tactics in which it deceived millions of clients, thus causing substantial hardship for the very individuals who placed their trust in the institution," said Inspector General Jay N. Lerner Federal Deposit Insurance Corporation. "The FDIC Office of Inspector General is committed to working with our law enforcement partners in order to investigate such financial crimes that harm customers and investors, and undermine the integrity of the banking sector."
The criminal investigation into false bank records and identity theft is being resolved with a deferred prosecution agreement in which Wells Fargo will not be prosecuted during the three-year term of the agreement if it abides by certain conditions, including continuing to cooperate with further government investigations. Wells Fargo also entered a civil settlement agreement under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) based on Wells Fargo’s creation of false bank records. FIRREA authorizes the federal government to seek civil penalties against financial institutions that violate various predicate criminal offenses, including false bank records. Wells Fargo also agreed to the SEC instituting a cease-and-desist proceeding finding violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The $3 billion payment resolves all three matters, and includes a $500 million civil penalty to be distributed by the SEC to investors.
The 16-page statement of facts accompanying the deferred prosecution agreement and civil settlement agreement outlines a course of conduct over 15 years at Well Fargo’s Community Bank, which was then the largest operating segment of Wells Fargo, consistently generating more than half of the company’s revenue. The statement of facts outlines top Community Bank leaders’ knowledge of the conduct. As part of the statement of facts, Wells Fargo admitted the following:
Beginning in 1998, Wells Fargo increased its focus on sales volume and reliance on annual sales growth. A core part of this sales model was the "cross-sell strategy" to sell existing customers additional financial products. It was "the foundation of our business model," according to Wells Fargo. In its 2012 Vision and Values statement, Wells Fargo stated: "We start with what the customer needs – not with what we want to sell them."
But, in contrast to Wells Fargo’s public statements and disclosures about needs-based selling, the Community Bank implemented a volume-based sales model in which employees were directed and pressured to sell large volumes of products to existing customers, often with little regard to actual customer need or expected use. The Community Bank’s onerous sales goals and accompanying management pressure led thousands of its employees to engage in unlawful conduct – including fraud, identity theft and the falsification of bank records – and unethical practices to sell product of no or little value to the customer.
Many of these practices were referred to within Wells Fargo as "gaming." Gaming strategies varied widely, but included using existing customers’ identities – without their consent – to open checking and savings, debit card, credit card, bill pay and global remittance accounts. From 2002 to 2016, gaming practices included forging customer signatures to open accounts without authorization, creating PINs to activate unauthorized debit cards, moving money from millions of customer accounts to unauthorized accounts in a practice known internally as "simulated funding," opening credit cards and bill pay products without authorization, altering customers’ true contact information to prevent customers from learning of unauthorized accounts and prevent Wells Fargo employees from reaching customers to conduct customer satisfaction surveys, and encouraging customers to open accounts they neither wanted or needed.
The top managers of the Community Bank were aware of the unlawful and unethical gaming practices as early as 2002, and they knew that the conduct was increasing due to onerous sales goals and pressure from management to meet these goals. One internal investigator in 2004 called the problem a "growing plague." The following year, another internal investigator said the problem was "spiraling out of control." Even after senior managers in the Community Bank directly called into question the implementation of the cross-sell strategy, Community Bank senior leadership refused to alter the sales model, which contained unrealistic sales goals and a focus on low-quality secondary accounts.
Despite knowledge of the illegal sales practices, Community Bank senior leadership failed to take sufficient action to prevent and reduce the incidence of such practices. Senior leadership of the Community Bank minimized the problems to Wells Fargo management and its board of directors, by casting the problem as driven by individual misconduct instead of the sales model itself. Community Bank senior leadership viewed negative sales quality and integrity as a necessary byproduct of the increased sales and as merely the cost of doing business.
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The government’s decision to enter into the deferred prosecution agreement and civil settlement took into account a number of factors, including Wells Fargo’s extensive cooperation and substantial assistance with the government’s investigations; Wells Fargo’s admission of wrongdoing; its continued cooperation in the investigations; its prior settlements in a series of regulatory and civil actions; and remedial actions, including significant changes in Wells Fargo’s management and its board of directors, an enhanced compliance program, and significant work to identify and compensate customers who may have been victims. The deferred prosecution agreement will be in effect for three years.
The global settlement also reflects coordination between the Department of Justice and the SEC to ensure a resolution that appropriately addresses the severity of the defendants’ conduct while avoiding the imposition of fines and penalties that are unnecessarily duplicative.
The deferred prosecution agreement was handled by the United States Attorney’s Offices in Charlotte and Los Angeles, with investigative support from the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation - Office of Inspector General, the Federal Housing Finance Agency - Office of Inspector General, the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, and the United States Postal Inspection Service.
The civil settlement agreement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office in Los Angeles.
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Versailles Man Sentenced to 120 Months for Armed Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky. – A Versailles, Kentucky man, Danny Wayne Bedwell, 29, was sentenced to 120 months in federal prison on Friday, by Chief United States District Judge Danny C. Reeves, after previously pleading guilty to trafficking methamphetamine and possession of a firearm in furtherance of drug trafficking.
Bedwell previously admitted that on March 7, 2018, he trafficked crystal methamphetamine, to a cooperating witness for law enforcement. According to the plea agreement, Bedwell admitted that on April 27, 2018, law enforcement found heroin, methamphetamine, and a loaded .380 pistol. Bedwell further admitted to law enforcement that he had been distributing methamphetamine and the drugs from his house.
Bedwell pleaded guilty in November 2019.
Under federal law, Bedwell must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Louisville Field Division; Tommy Estevan, Acting Special Agent in Charge, Alcohol, Tobacco, Firearms, and Explosives (ATF), Louisville Field Division, jointly made the announcement.
The investigation was conducted by ATF and DEA. The United States was represented by Assistant U.S. Attorney Roger West.
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 Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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