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19 February 2020
Guardian Elder Care Holdings and Related Entities Agree to Pay $15.4 Million to Resolve False Claims Act Allegations for Billing for Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
Guardian Elder Care Holdings Inc., and related companies Guardian LTC Management Inc., Guardian Elder Care Management Inc., Guardian Elder Care Management I Inc., and Guardian Rehabilitation Services Inc., (Guardian) agreed to pay $15,466,278 to resolve False Claims Act allegations that they knowingly overbilled Medicare and the Federal Employees Health Benefits Program for medically unnecessary rehabilitation therapy services, the Department of Justice announced today. Guardian operates more than 50 nursing facilities throughout Pennsylvania, as well as in Ohio and West Virginia.
“Seniors rely on the Medicare program to provide them with appropriate care, and to ensure that they are treated with dignity and respect,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The department will not tolerate nursing home operators that put their own economic gain ahead of the needs of their residents, and will continue to hold accountable those operators who bill Medicare for unnecessary rehabilitation services.”
The settlement announced today resolve claims by the United States that from Jan. 1, 2011, through Dec. 31, 2017, Guardian caused certain facilities in Pennsylvania, West Virginia, and Ohio to bill for patients at the highest level of Medicare reimbursement, when services at that level were not medically necessary and were influenced by financial considerations rather than resident needs. These allegations were originally brought by two former Guardian employees, Phillipa Krause and Julie White, under the whistleblower, or qui tam, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to share in any recovery. The whistleblowers in this case will receive approximately $2.8 million.
The settlement also resolves allegations voluntarily disclosed by Guardian that it had employed two people who were excluded from federal healthcare programs. As a result of its employment of these two excluded individuals, Guardian inappropriately received payment for ineligible services.
“Too much rehabilitation therapy can actually harm patients, just like giving them too many pills or too much medicine,” said U.S. Attorney William McSwain of the Eastern District of Pennsylvania. “And of course it harms taxpayers who foot the bill for unnecessary treatment. We thank Ms. Krauss and Ms. White for their role in bringing this alleged scheme to light. We also commend Guardian Elder Care for telling us about its employment of the excluded providers. It is in their best interest for companies to make voluntary disclosures and emphasize compliance going forward, as my office will take this sort of cooperation into consideration when determining an appropriate resolution.”
“Billing federal healthcare programs for medically unnecessary rehabilitation services not only depletes these programs’ funds but also exploits our most vulnerable citizens,” said U.S. Attorney Scott W. Brady of the Western District of Pennsylvania. “Our office will continue to aggressively pursue providers who take advantage of our seniors by putting financial gain ahead of patient care.”
“Protecting our beneficiaries from unnecessary services is a priority and we will not tolerate companies putting financial gain ahead of quality of care,” said Maureen R. Dixon, Special Agent in Charge, Office of the Inspector General-U.S. Department of Health and Human Services (HHS-OIG). “HHS-OIG will continue to work with our partners at the Department of Justice and OPM-OIG to root out fraud, waste and abuse in the Medicare and Medicaid programs.”
“Subjecting vulnerable patients to unnecessary treatments for financial gain is unconscionable," said Deputy Assistant Inspector General for Investigations Thomas W. South, Office of the Inspector General-U.S. Office of Personnel Management (OPM-OIG). "First and foremost, OPM-OIG prioritizes protecting Federal employees and their dependents from patient harm. I am proud that we were able to work with our law enforcement partners to hold Guardian Elder Care accountable for their unscrupulous behavior.”
Contemporaneous with the civil settlement, Guardian agreed to enter into a chain-wide Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General. Such agreements promote compliance and protect vulnerable nursing home residents.
This case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Eastern District of Pennsylvania and for the Western District of Pennsylvania; HHS-OIG; and OPM-OIG. This case was supported by the Department of Justice’s Elder Justice and Nursing Home Initiative, which coordinates the department’s activities combating elder abuse, neglect, and financial exploitation, especially as they impact beneficiaries of Medicare, Medicaid, and other federal health care programs. This case was also a product of the Elder Justice Task Force of the U.S. Attorney’s Office for the Eastern District of Pennsylvania that launched four years ago. For more information about the Department’s Elder Justice Initiative and the Elder Justice Task Force, see https://www.justice.gov/elderjustice/.
The case is docketed as United States ex rel. Krauss v. Guardian Elder Care Holdings, Inc., et al., Civil Action No. 3:15-cv-6850 (E.D. Pa.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
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.
Greece Man Arrested and Charged with Threatening to Kill Senator Charles Schumer and Congressman Adam SchiffRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Salvatore Lippa II, 57, of Greece, NY, was arrested and charged by criminal complaint with threating to assault and murder a federal official on account of the performance of their official duties, and interstate communication of a threat. The charges carry a maximum penalty of 10 years in prison, a $250,000 fine, or both.
According to Assistant U.S. Attorney Sean C. Eldridge, the criminal complaint alleges that on January 23, 2020, the Washington D.C. office of California Congressman Adam Schiff received a threatening voice mail that included a death threat to the Congressman.
On February 4, 2020, the Albany, NY, office of New York Senator Charles Schumer received a threatening voice mail that also contained a death threat to the Senator.
The threats were reported to the United States Capitol Police, Threat Assessment Section, which began an investigation. The telephone number that both the calls originated from was traced back to the defendant. When questioned by Special Agents from the United States Capitol Police, Lippa admitted to making the threatening calls to Congressman Schiff and Senator Schumer because he was upset about the impeachment proceedings.
“The rights secured in our Constitution carry with them certain responsibilities,” stated U.S. Attorney Kennedy. “When it comes to the First Amendment, that responsibility includes the obligation not to threaten to kill others. This Office will remain vigilant in our effort to uphold the rule of law and to reinforce the ideal that in America the entire concept of self-governance is fundamentally predicated on the responsibility that each of us has to control and govern our own behaviors.”
The defendant is scheduled to make an initial appearance this afternoon at 3:45 p.m. before U.S. Magistrate Judge Mark W. Pedersen.
The criminal complaint is the result of an investigation by the United States Capitol Police, under the direction of Chief Steven A. Sund, with assistance from the Greece Police Department, under the direction of Chief Patrick D. Phelan, and the United States Marshals Service, under the direction of Marshal Charles Salina.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Gonzales Man Sentenced to 180 Months in Federal Prison for Coersion and Enticement of a MinorRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Court Judge John W. deGravelles sentenced Gerald Joseph Braud, Jr., age 46, of Gonzales, Louisiana, to serve 180 months in federal prison following his conviction for coercion and enticement of a minor. Braud will also be required to serve five years of supervised release and register as a convicted sex offender upon his release from prison.
According to admissions Braud made during his plea, on or about April 23, 2018, Braud, at his home in Gonzales, Louisiana, used Instagram to communicate with Minor Victim 1. Braud used the Instagram name “cornelious12345.” Minor Victim 1 identified herself as a 14-year old who lived in North Carolina, and Braud falsely told her that he was 16, almost 17 years old, when in truth, he was 44 years old. Braud then asked her to “talk dirty” with him. During their sexually explicit chat on Instagram, Braud sent Minor Victim 1 sexually explicit images of himself and repeatedly requested to see sexually explicit images and videos of Minor Victim 1. Minor Victim 1 complied with several of these requests and sent Braud sexually explicit images.
Additionally, between February and May 2018, Braud contacted at least four other minor victims over Instagram who identified themselves to Braud as minors. Similar to Minor Victim 1, Braud engaged these minor victims in sex talk, lied about his age, made promises of love, sent sexually explicit images of himself, and requested that these minor victims send him sexually explicit images and videos of themselves to Braud. Four of them responded with sexually explicit images. Braud later admitted to law enforcement that he asked at least 15 minor girls for nude pictures or videos.
U.S. Attorney Fremin stated, “This conviction and sentence once again demonstrates that our office, along with our law enforcement partners, will fight aggressively to protect our communities from child predators, such as Gerald Braud. We will continue to work tirelessly to bring justice to those individuals who exploit or harm our children. I commend our prosecutor and the agents of the Federal Bureau of Investigation for their excellent work in this matter.”
Bryan A. Vorndran, FBI New Orleans Special Agent in Charge, stated, “Minor children and teenagers are innocent and naive to the surreptitious ways of individuals like Gerald Braud who attempt to exploit our children for financial gain and/or sexual gratification. The FBI New Orleans Field Office’s Child Exploitation Task Force, in collaboration with our federal, state, and local law enforcement partners will continue to investigate and fight for those who can't defend themselves.”
This case is part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Elizabeth White.
Fourteen-year sentence for Middletown man who laundered money for Sinaloa drug cartelRead the Press Release
CINCINNATI – Raul Trejo, 54, of Middletown, was sentenced to 168 months in prison for laundering money as part of a Middletown drug conspiracy tied to the Sinaloa Drug Cartel in Mexico.
Trejo was one of 12 individuals charged by a federal grand jury in Cincinnati in a narcotics and money laundering conspiracy. Members of the group distributed fentanyl from Mexico in Middletown and sent proceeds back to Mexico. Trejo’s role was to collect and package cash he received from ringleader Donte Holdbrook, who was in charge of selling the fentanyl, and see that it was taken back to Mexico to buy more fentanyl. Investigators documented multiple transactions including one involving three shoeboxes containing nearly $200,000 in cash during a transaction in November 2016.
Holdbrook, the Middletown ringleader, pleaded guilty in October 2018 and is awaiting sentencing. He faces at least 10 years and up to life in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, Police Chief Eliot K. Isaac, Middletown Police Chief Rodney Muterspaw, Preble County Prosecuting Attorney Martin P. Votel and Ohio State Highway Patrol Superintendent Col. Paul A. Pride announced the sentence handed down by U.S. District Judge Timothy S. Black. District Criminal Chief Karl Kadon and Assistant U.S. Attorney Kenneth L. Parker are representing the United States in this case.
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Four Charged in Conspiracy to Import and Distribute Steroids, Launder ProceedsRead the Press Release
PROVIDENCE – Four individuals have been arrested, four locations searched, and several motor vehicles and bank accounts seized today during a series of early morning law enforcement actions in Rhode Island and Massachusetts, as part of an on-going multi-agency investigation led by Homeland Security Investigations (HSI) into the illegal importation, preparation, rebranding, and distribution of steroids throughout the United States, and the laundering of proceeds from the sale of the illegal drugs.
It is alleged in court documents that the leader of the conspiracy, David M. Esser, 46, of North Attleboro, arranged for the importation of large quantities of raw steroids from international suppliers, primarily based in Hong Kong. A significant number of orders placed by Esser for raw steroids were for multiple kilograms of product.
According to court documents, it is alleged that Esser arranged to have the raw steroids shipped directly to locations within the United States where, at his direction, individuals “cooked” the raw steroid product into liquid form, packaged the liquid in plastic vials, and shipped the finished products to a stash house he operated in North Attleboro. Esser provided the middle-men with the supplies required for the preparation and packaging of the steroids. Shipments to the middle-men also included cash payments to them for performing these tasks.
It is alleged that after the packaged steroids arrived at Esser’s stash house, Esser, and others working at his direction, prepared customers’ orders for steroids. Members of the conspiracy shipped the packages to customers throughout the United States, utilizing several U.S. Post Offices, including Providence’s main post office from which a significant number of packages were mailed.
It is alleged that in an effort to disguise the proceeds from the illegal sales of steroids, members of the conspiracy often times moved the proceeds from bank account to bank account, and used some of the proceeds to purchase, among other things, raw steroid products, steroid trafficking supplies, vehicles, and properties.
Proceeds from some sales of steroids were paid to the members of the conspiracy in cash. Other payments were made by cryptocurrency.
United States Attorney Aaron L. Weisman, Homeland Security Investigations Acting Special Agent in Charge Jason Molina, North Attleboro Police Chief John J. Reilly, and Mansfield Police Chief Ronald Sellon announce the arrest of David M. Esser, 46, James McLaughlin, 34, and Alison Esser, aka Alison Shephard, 41, of North Attleboro, and Mason A. Nieves, 27, of Providence, on federal criminal complaints charging them with intent to distribute Schedule III and IV Controlled Substances; conspiracy to distribute, possess with intent to distribute and conspiracy to import Schedule III and IV Controlled Substances; manufacturing and distributing Schedule III and IV Controlled Substances; importation of Controlled Substances into the United States; trafficking in counterfeit goods and services; smuggling goods into the United States; as well as wire fraud and money laundering.
The defendants were arraigned in U.S. District Court and released on unsecured bond.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Gerard B. Sullivan.
United States Attorney Aaron L. Weisman and Homeland Security Investigations Acting Special Agent in Charge Jason Molina acknowledge and thank the United States Postal Service, United States Postal Inspection Service, Alamance County North Carolina Narcotics Enforcement Team, U.S. Food and Drug Administration, Internal Revenue Service, and HSI Special Agents in the Houston and Winston-Salem Field Offices for their assistance in the investigation of this matter.
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Fort Wayne Man Sentenced to 7 ½ YearsRead the Press Release
FORT WAYNE – Glen Burton, age 35, formerly of Benton Harbor, Michigan was sentenced before U.S. District Court Judge Holly A. Brady upon his guilty plea to distribution of a controlled substance, announced U.S. Attorney Kirsch.
Burton was sentenced to 90 months in prison followed by 4 years of supervised release.
According to documents in this case, beginning in November 2017, the Fort Wayne Police Department began receiving anonymous tips regarding drug trafficking activity in Fort Wayne, Indiana by Burton and others associated with Burton. On March 6, 2018, a confidential informant made a recorded telephone call to one of Burton’s known associates to arrange for the purchase of $650.00 of methamphetamine. The associate told the confidential informant he would meet the confidential informant at a nearby grocery store. Shortly thereafter, officers in the area observed Burton’s associate arrive at the store and meet with the confidential informant. Over the confidential informant’s recorder, Burton’s associate was heard saying that he did not have as much methamphetamine as the confidential informant wanted and would have to contact “Glen” to get that much. The confidential informant was then heard engaging in a video call with Burton regarding the purchase of methamphetamine. Burton told the confidential informant that he would “take care of” the confidential informant shortly.
Sometime later that day, the confidential informant was directed to a gas station in Fort Wayne. Burton was identified as arriving at the gas station and then seen meeting with the confidential informant. After the meeting, the confidential informant turned over to law enforcement just under one ounce of methamphetamine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fort Wayne Police Department Vice & Narcotics Unit. The case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Fort Wayne Man Sentenced to 10 YearsRead the Press Release
FORT WAYNE – Gregory Huddleston, age 39, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his guilty plea to distribution of a controlled substance, announced U.S. Attorney Kirsch.
Huddleston was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents in the case, beginning in November 2017, the Fort Wayne Police Department began receiving anonymous tips regarding drug trafficking activity by Huddleston and others associated with Huddleston at a particular address in Fort Wayne. On July 11, 2018, a confidential informant made a recorded telephone call to Huddleston to arrange for the purchase of one ounce of methamphetamine and a quantity of heroin. During this recorded call, Huddleston instructed the confidential informant to go to a nearby store and wait and someone would be there soon with the drugs.
A short time later, surveillance officers in the area of that store observed a known associate of Huddleston arrive at the store and met with the confidential informant. That associate gave the confidential informant one ounce of methamphetamine and a small amount of heroin. These were the same amounts of the same drugs agreed upon earlier by the confidential informant and Huddleston.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fort Wayne Police Department Vice & Narcotics Unit. The case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Former Senior UAW Official Sentenced to 28 Months for Taking over $1.5 Million in Bribes and KickbacksRead the Press Release
Michael Grimes, a former high-level official in the UAW’s General Motors Department, was sentenced to 28 months in federal prison today for conspiring with other UAW officials to engage in honest services fraud by taking over $1.5 million in bribes and kickbacks from UAW vendors and contractors and for conspiring to launder the proceeds of the scheme, announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
In September, Michael Grimes, 66, of Ft. Myers, Florida, who is a native of Grand Blanc, Michigan, pleaded guilty to conspiring with two other high-level UAW officials—Joseph Ashton and Jeffrey Pietrzyk—to take millions of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources (CHR). Ashton, 71, of Ocean View, New Jersey, and Pietrzyk, 78, of Grand Island, New York, have since pleaded guilty. This “pay to play” scheme which began in 2006, and lasted over twelve years, reaped Grimes over $1.5 million which he spent on property, houses, cosmetic surgery for a relative, and a host of other items which never benefited the UAW membership.
The CHR is supposed to be a center for training UAW workers employed by GM. But Grimes, Pietrzyk, and Ahston, each of whom served on the Executive Board for the CHR, abused the power they had to approve contracts with vendors for watches, jackets, backpacks, and UAW stores at GM manufacturing facilities, and demanded kickbacks for their own financial gain. For example, in 2011, Grimes, Ashton and Pietrzyk demanded that a vendor give them a $300,000 kickback on a $6 million contract to purchase 50,000 jackets emblazoned with “Team UAW-GM.” Grimes collected the $300,000 kickback and delivered the proceeds to Ashton and Pietrzyk. Grimes demanded an additional kickback of $525,000 from the same vendor for the same jacket contract.
In another scheme to defraud, Grimes, Ashton and Pietrzyk demanded kickbacks on a $3.9 million contract for the CHR to buy 58,000 watches for all UAW members employed by GM. The UAW officials demanded over $300,000 in kickbacks on the watch contract to be distributed between 2013 through 2016. Some of the kickbacks were distributed in the form of checks disguised as tens of thousands of dollars in payments for “antique furniture.” The majority of the kickbacks were distributed as cash. In 2014, the UAW-GM CHR received the 58,000 watches from the vendor. However, the watches were never distributed to UAW members. Instead, the watches have been sitting in storage in a warehouse for over five years.
Grimes also conspired to launder the proceeds of the kickback scheme by using a series of complicated schemes, including funneling the money through a sham consulting company run by a relative, to conceal and disguise the bribes and kickbacks.
As part of this investigation, the government has forfeited money and real property from Grimes totaling over $1.5 million.
Grimes is one of many to plead guilty and be sentenced in connection with the ongoing criminal investigation into corruption within the UAW. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), and former UAW Vice President Norwood Jewell (15 months in prison). Most recently, former UAW Region 5 Director Vance Pearson pleaded guilty last week.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“It is imperative that the UAW leadership continues to be held accountable to their fiduciary duties and responsibilities,” said United States Attorney Matthew Schneider. “Today’s sentence represents another step forward in our efforts to target and prosecute corrupt UAW leaders who place their drive for personal enrichment ahead of the mission of the union.”
“Michael Grimes engaged in a fraudulent scheme to deprive the International United Auto Workers Union of his honest services by demanding and accepting over $1.5 million in bribes and kickbacks from vendors. Grimes' criminal actions were an effort to enrich himself at the expense of dues-paying UAW members. We will continue to work with our law enforcement partners to investigate those who facilitate illegal payments to union officials entrusted to negotiate on behalf of union members,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“The trail of money has led to the truth, an ugly truth of bribery, kickbacks and sham corporations, ultimately netting Michael Grimes $1.5 million dollars at the expense of UAW workers. Today’s sentence brings the UAW one step closer to removing the greedy and corrupt leadership that once embodied UAW officials across the country,” said Sarah Kull, Special Agent in Charge of Detroit’s IRS Criminal Investigation.
“Michael Grimes failed his fiduciary duties as a UAW official and betrayed the trust of the UAW membership when he used his union position to demand bribes and kickbacks from vendors in excess of $1.5 million so that he could enrich himself and other UAW officials,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “Today's conviction leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of their fellow union members.”
The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson and Eaton Brown.
Former NYPD Officer and 4 Others Charged in White Plains Federal Court with Distributing Methamphetamine and GBLRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), and Thomas Gleason, Commissioner of the Westchester County Police (“WCP”), announced the unsealing of an Indictment yesterday charging five defendants, including former New York City Police Department (“NYPD”) officer JOHN CICERO, with narcotics distribution offenses in and around Westchester County and New York City.
Three of the defendants, MARCO CASO, ERIC BAKER, and MATHEW MATTEO, a/k/a “Matthew Mateo,” were arrested yesterday and presented in White Plains federal court before United States Magistrate Judge Lisa Margaret Smith. CICERO has not been arrested and remains at large. The fifth defendant, IRMA MATERASSO, is in state custody on other charges and will be transferred to federal custody at a later date. The case has been assigned to United States District Judge Kenneth M. Karas.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants trafficked large quantities of methamphetamine and GBL – a liquid date-rape drug – throughout Westchester and New York City. Methamphetamine devastates communities and GBL spreads danger all over the Southern District of New York, which is why the defendants face serious federal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “As a former police officer, sworn to protect others, Mr. Cicero has seen firsthand the harm these drugs do to our society which makes the charges announced today even more egregious. He now faces the same grim reality criminals he once locked up did - a long prison sentence, this time in a federal jail cell.”
Westchester County Police Commissioner Thomas Gleason said: “We are pleased that our partnership with the FBI and other federal, state and local law enforcement agencies continues to support our efforts to stem the flow of illegal drugs into Westchester County.”
As alleged in the Indictment unsealed yesterday in White Plains federal court[[1]]:
From at least 2017 through February 2020, MARCO CASO, JOHN CICERO, IRMA MATERASSO, ERIC BAKER, and MATHEW MATTEO, a/k/a “Matthew Mateo,” conspired to distribute 500 grams and more of methamphetamine. In addition, from at least 2017 through February 2020, MARCO CASO, JOHN CICERO, IRMA MATERASSO, and MATHEW MATTEO, a/k/a “Matthew Mateo,” conspired to distribute gamma-butyrolactone (known as “GBL”), which is a liquid date-rape drug.
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CASO, 48, of New York, New York, CICERO, 38, of Bronxville, New York, MATERASSO, 36, of New Rochelle, New York, BAKER, 37, of Somerset, New Jersey, and MATTEO, 22, of the Bronx, New York, are each charged with conspiring to distribute 500 grams and more of methamphetamine, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. CASO, CICERO, MATERASSO, and MATTEO are also charged with conspiring to distribute GBL, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force and the Westchester County Police Department. The Westchester County Safe Streets Task Force comprises Special Agents and Task Force Officers from the FBI, U.S. Probation, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York State Police, Westchester County Police Department, Westchester County DA’s Office, NYPD, Yonkers Police Department, Mount Vernon Police Department, Peekskill Police Department, Greenburgh Police Department, and New Rochelle Police Department. He also thanked the New York State Department of Corrections Office of Special Investigations, Drug Enforcement Administration, and U.S. Customs and Border Protection for their assistance.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys David R. Felton and Daniel G. Nessim are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Indictment, and the description of the Imndictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Fredonia City Administrator Sentenced to 7+Years for Child PornographyRead the Press Release
WICHITA, KAN. – A former city administrator of Fredonia was sentenced today to 90 months in federal prison for child pornography, U.S. Attorney Stephen McAllister said.
Michael P. Ohrt, 40, Fredonia, Kan., pleaded guilty to one count of transporting child pornography. In his plea, he admitted using his Yahoo email account to establish a Dropbox storage account and then uploading videos of child pornography. Dropbox identified the material as child pornography and reported the user’s information to authorities. Investigators traced the IP address to Ohrt’s work and home in Fredonia.
McAllister commended Homeland Security Investigations (HSI), the Kansas Internet Crimes Against Children Task Force and Assistant U.S. Attorney Jason Hart for their work on the case.
Former Dunbar Armored Supervisor Sentenced to 2 Years in Prison for Stealing Almost $300,000 from Company’s Cash Storage VaultRead the Press Release
LOS ANGELES – A former Dunbar Armored Inc. employee was sentenced today to 24 months in federal prison for orchestrating the theft of nearly $300,000 in cash out of Dunbar’s storage facility in Vernon.
Eric Miranda, 39, of East Los Angeles, was sentenced by United States District Judge Dolly M. Gee, who also ordered him to pay $279,369 in restitution.
Miranda pleaded guilty in March 2019 to one count of conspiracy to commit bank theft and three counts of bank theft.
At the time of the theft, Miranda was a Dunbar Armored supervisor with access privilege to company vaults. He stole cash from the Dunbar vault by using “dummy” stacks of $100 bills that he switched out for real stacks of $100,000. First, Miranda created “dummy” stacks of $100,000 by taking hundreds of $1 bills and sandwiching them between $100 bills – in order to make them appear to be stacks of $100 bills totaling $100,000.
He then smuggled the “dummy” stacks into the Dunbar vault, where he and his co-conspirator, Monique Castruita, 36, of Maywood, switched them for real stacks of $100,000. Miranda and Castruita then marked the dummy stacks to ensure they were not placed into circulation.
Finally, Miranda smuggled the real stacks of money out of the vault room by hiding it in a postal box. On three occasions between October 2017 and January 2018, Miranda smuggled a total of approximately $300,000 out of the Dunbar facility.
In March 2018, defendant’s scheme was finally exposed when a Dunbar employee discovered 19 empty money straps in the trash can of a women’s restroom. Ultimately, the loss to Dunbar totaled $279,369.
Castruita pleaded guilty in November 2018 to one count of conspiracy to commit bank theft and three counts of bank theft. Her sentencing hearing is scheduled for April 29.
“Collectively, (Miranda’s) actions reflect a blatant and deliberate abuse of his position, disregard for the integrity of financial institutions, and disrespect for the rule of law,” prosecutors wrote in their sentencing memorandum.
The FBI investigated this matter and received substantial assistance from the Vernon Police Department.
This case was prosecuted by Assistant United States Attorneys Jeffrey M. Chemerinsky and Joseph D. Axelrad of the Violent and Organized Crime Section.
Former Chief Economist for the Center for the Advancement of Science in Space Pleads GuiltyRead the Press Release
Tampa, Florida – Charles R. Resnick (69, Charlotte, NC, formerly from Florida) has pleaded guilty to one count of filing a false income tax return. He faces a maximum penalty of three years in federal prison. Resnick also agreed to make restitution to the Center for the Advancement of Science in Space (“CASIS”). A sentencing date has not yet been set.
According to the
plea agreement , on October 15, 2013, Resnick filed a 2012 Individual Income Tax Return (IRS Form 1040), which he signed under penalty of perjury. On the return, Resnick attested that his total income for tax year 2012 was $225,947, when he knew that his income was substantially greater. Resnick understated his total income by approximately $209,916 and failed to report approximately $158,000 in gross receipts that he had earned from consulting clients. In addition, he improperly deducted business expenses in the approximate amount of $51,500, despite the facts that (1) he had been reimbursed for the expenses and (2) some of the deducted expenses were not ordinary and necessary business expenses.For sentencing purposes, Resnick is responsible for the total tax loss for tax years 2010 through and including 2013. That amount will be determined at sentencing.
This case was investigated by the National Aeronautics and Space Administration, Office of Inspector General and the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Five Men Arrested on Cocaine and Money Laundering Charges in Coordinated TakedownRead the Press Release
BOSTON – Five men were arrested and charged in federal court in Boston last week on wide-ranging cocaine distribution and money laundering charges.
- Fabio Quijano, 55, of Winthrop, was indicted on money laundering conspiracy, money laundering, conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine, and possession with intent to distribute 500 grams or more of cocaine. According to court documents, Quijano laundered/attempted to launder over $335,000 in cocaine proceeds in 2018 and 2019;
- Jairo Agudelo, 33, of Revere, was indicted on one count each of money laundering conspiracy and money laundering involving approximately $200,000 in cocaine proceeds in February 2019;
- Juan Restrepo-Madrid, 39, a Colombian national residing in Everett, and Sebastian Arbelaez-Perez, 34, a Colombian national residing in Revere, were indicted for conspiracy to distribute and distributing cocaine in East Boston from August to September 2019; and
- Jesus Arley Munera-Gomez, 33, a Colombian national residing in Revere, was charged with attempting to possess with intent to distribute and to distribute 5 kilograms or more of cocaine. According to court documents, on Feb. 13, 2020, Munera-Gomez provided approximately $200,000 to undercover agents in exchange for 20 kilograms of sham cocaine.
This operation, dubbed “Operation Týr,” was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The charges of conspiracy/attempt to possess with intent to distribute and to distribute five kilograms or more of cocaine (applicable to Quijano and Munera-Gomez) provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of possession with intent to distribute and to distribute 500 grams or more of cocaine (applicable to Quijano) provides for a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of up to $5 million. The charges of conspiracy to possess with intent to distribute and to distribute cocaine, and distribution of cocaine (applicable to Restrepo-Madrid and Arbelaez-Perez) provide for a sentence of up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of up to $1 million. The charges of money laundering and money laundering conspiracy (applicable to Quijano and Agudelo) provide for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000, or twice the value of the property involved in the transaction, 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Kristina O’Connell, Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistance with the investigation was provided by Boston Police Department, Massachusetts State Police, Revere Police Department, Winthrop Police Department, Massachusetts National Guard, U.S. Marshals Service for the District of Massachusetts and Immigration and Customs Enforcement – Enforcement Removal Operations.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Five Facing Charges Relating to the Hustlas Don’t Sleep Drug Trafficking OrganizationRead the Press Release
PITTSBURGH – United States Attorney Scott W. Brady announced today that a federal grand jury in Pittsburgh has returned five separate, but related, indictments charging five Western Pennsylvania residents with drug and/or gun charges relating to an investigation into a group of drug traffickers identifying themselves as "Hustlas Don’t Sleep" (HDS), who sold a variety of controlled substances, including fentanyl, fentanyl analogues, crack cocaine and heroin, primarily out of the McKeesport, Turtle Creek, Wilkinsburg and Monroeville areas of Allegheny County.
The first indictment charges Kristoffer Carlino, 25, of Export, PA with violating federal narcotics laws. According to the one-count Indictment, from on or about July 31, 2019 to on or about November 19, 2019, Carlino conspired to possess with the intent to distribute and distribute 40 grams or more of fentanyl. The law provides for a maximum total sentence of not less than five years and not more than 40 years in prison, a fine of not more than $5,000,000 or both.
The second indictment charges Charles Curry, 29, of Pittsburgh, PA with violating federal narcotics laws. According to the one-count Indictment, in July 2019 to November 19, 2019, Curry conspired with persons known and unknown to possess with the intent to distribute and did distribute 10 grams or more of acetyl fentanyl and quantities of heroin, a Schedule I controlled substance, Schedule I controlled substances, and quantities of fentanyl and cocaine base, Schedule II controlled substances. The law provides for a maximum total sentence of not less than five years to not more than 40 years in prison, a fine not to exceed $5,000,000 or both.
The third indictment charges David Loveings, 66, of Pittsburgh, PA with violating federal narcotics laws. According to the Indictment, from July 2019 through October 2019, Loveings conspired to possess with intent to distribute and distribute 28 grams or more of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack, a Schedule II controlled substance. The law provides for a maximum total sentence of not less than five years to not more than 40 years in prison, a fine of $5,000,000 or both.
The fourth indictment charges Jason Malos, 36, of North Versailles, PA with violating federal narcotics and firearms laws. According to the two-count Indictment, from on or about July 31, 2019 to on or about November 19, 2019, Malos conspired to possess with the intent to distribute and distribute 40 grams or more of fentanyl. The Indictment also alleges that on or about November 19, 2019, Malos, a convicted felon, possessed a firearm and ammunition. Federal law prohibits a convicted felon from possessing a firearm or ammunition. For the narcotics charge, the law provides for a maximum total sentence of not less than five years and not more than 40 years in prison, a fine of not more than $5,000,000 or both. For the firearm charges, a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000, or both.
The final indictment charges Andrew Welty, 28, of Everson, PA with violating federal narcotics laws. According to the one-count Indictment, from July 24, 2019 to November 19, 2019, Welty conspired with persons both known and unknown to possess with intent to distribute and did distribute quantities of fentanyl, a Schedule II controlled substance and heroin, a Schedule I controlled substance. The law provides for a maximum total sentence of not less than five years to not more than 40 years in prison, a fine not to exceed $5,000,000 or both.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant(s).
Assistant United States Attorneys Brendan T. Conway and Brian M. Czarnecki are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Monroeville Police Department, the Attorney General’s Office, the Drug Enforcement Agency’s Maryland Officer, and the Allegheny County Police Department conducted the investigation leading to the Indictment in this case.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Four Oaks Man of Possession of a Firearm by a Convicted FelonRead the Press Release
RALEIGH — United States Attorney Robert J. Higdon, Jr., announced that yesterday in federal court, LAMONT TURRENTINE, 40, a resident of Four Oaks, North Carolina, was convicted in a one-day jury trial before Chief United States District Judge Terrence W. Boyle. The jury found TURRENTINE guilty of each of Possession of a Firearm by a Convicted Felon.
The evidence showed that TURRENTINE, who is a multi-convicted felon and has previously been, convicted of felon in possession of a firearm along with multiple felony convictions for the sale of cocaine. During the trial, the government presented evidence showing TURRENTINE engaged in a shoot-out with Wayne County Deputies who attempted to arrest him following an attempted burglary. During a chase, TURRENTINE fired his weapon at Officers and the Officers returned fire. TURRENTINE was arrested a short time later. Officers retraced the path where TURRENTINE fled and found a firearm. A ballistics expert matched the firearm found on the path to the casings that were found where the shoot-out took place.
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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Wayne County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant United States Attorney Donald R. Pender represented the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Criminal Complaint Filed Against Gregory Keith Robinson and Jaquan BrayRead the Press Release
In El Paso today, federal authorities filed a criminal complaint against 27-year-old Gregory Keith Robinson, and 26-year-old Jaquan Bray for conspiring to possess with intent to distribute marijuana, announced U.S. Attorney John F. Bash, Drug Enforcement Administration Special Agent in Charge Kyle W. Williamson, El Paso Division, and U.S. Border Patrol Chief Patrol Agent Matthew J. Hudak, Big Bend Sector.
The criminal complaint charges the defendants with conspiracy to possess with intent to distribute marijuana and possession with intent to distribute marijuana. According to the federal criminal complaint, on Monday evening, the defendants approached the Sierra Blanca Checkpoint Station, where a U.S. Border Patrol canine unit alerted on their vehicle. Agents asked the driver (Bray) to park the vehicle in the secondary inspection area for further investigation. A subsequent inspection of the vehicle by agents revealed the presence of approximately 157 pounds of marijuana inside several large duffle bags in the rear cargo area.
The complaint affidavit further states that Robinson rented the vehicle in Los Angeles on Sunday and had arranged for a third individual in the vehicle, an Uber driver he had met in 2018, to drive him and Bray to Louisiana. When the trio reached El Paso, Robinson instructed Bray to begin driving. According to the complaint, when they approached secondary inspection at the Sierra Blanca checkpoint, Robinson asked the third individual to claim the marijuana and that Robinson said he would pay the third individual to do so. The third individual refused and told Robinson he/she would not have driven him had he/she known there were drugs in the vehicle.
Upon conviction, the defendants face up to 20 years in federal prison.
The Drug Enforcement Administration and the U.S. Border Patrol are investigating this case. Assistant U.S. Attorney Michael Williams is prosecuting the case on behalf of the government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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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.
Ecuadorian and Mexican Nationals Plead Guilty to Smuggling 1,535 Kilograms of Cocaine Onboard a Semi-Submersible Vessel Interdicted by United States Coast GuardRead the Press Release
St. Thomas, USVI –– Hector Hernandez Saucedo, a Mexican National, and Calixto Tumbaco, an Ecuadorian National, pleaded guilty to Conspiracy to Possess 1,535 Kilograms of Cocaine While on Board a Vessel Subject to the Jurisdiction of the United States minutes before their jury trial was scheduled to begin before U.S. District Judge Curtis V. Gomez, United States Attorney Gretchen C.F. Shappert announced. Judge Gomez remanded both defendants pending their sentencing hearing on June 18, 2020.
According to court records, on May 10, 2019, while on patrol, a United States Coast Guard patrol aircraft sighted a self-propelled, semi-submersible vessel in international waters approximately 250 nautical miles northwest of Esmeraldas, Ecuador, navigating on a westerly course in a known drug smuggling area. The vessel was a low profile, semi-submersible with three outboard engines, displaying no indicia of nationality nor markings, and operating without any navigation lights. The Coast Guard Cutters HAMILTON and RESOLUTION, which were operating approximately 15 nautical miles away from the semi-submersible vessel, diverted in order to investigate the semi-submersible’s activities. Crew members of the Coast Guard Cutters observed that the semi-submersible was more than eighty (80%) percent under the waterline.
Upon their approach, Coast Guard Officers observed that objects were being thrown overboard by one of the semi-submersible’s occupants. After gaining control of the semi-submersible, Coast Guard Officers took Hector Hernandez Saucedo, Calixto Tumbaco, and Columbian Nationals Mariano Abregon and Freddy Montano Paz into custody. The semi-submercible vessel was later declared a stateless vessel without nationality and therefore subject to the jurisdiction of the United States. Coast Guard Officers proceeded to conduct an at-sea space accountability inspection of the vessel. They located 64 bales of suspected cocaine inside a tunnel area of the vessel. The bales contained brick shaped objects with an estimated weight of 1,535 kilograms. During interviews, one occupants admitted that the semi-submersible vessel departed Buena Ventura, Columbia approximately three days prior to the Coast Guard interdiction, and that they were destined for Mexico.
On February 11, 2020, Abregon entered a plea of guilty, and on September 12, 2019, Montano Paz also entered a plea guilty. Both pleaded guilty to Count One of the Bill of Indictment which charged conspiracy to possess 1,535 kilograms of cocaine while on board a vessel subject to the jurisdiction of the United States. For their convictions, the defendants face a mandatory minimum sentence of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000, five years of supervised release, and a special assessment of $100.
This case was investigated by Drug Enforcement Administration and the U.S. Coast Guard and is prosecuted by Assistant United States Attorney Delia Smith.
Dwight Man Sentenced for Producing and Possessing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Michael Dean McCullar, 47, of Dwight, Nebraska, was sentenced today in Lincoln, Nebraska, by Chief United States District Judge John M. Gerrard to 360 months’ imprisonment for production of child pornography and 140 months for possessing child pornography. The sentences were ordered to run consecutively. McCullar was also ordered to pay $154,136.00 in restitution and assessments of $30,200.00. He will also be required to register as a sex offender. Once released from prison, he will be on supervised release for the remainder of his life. There is no parole in the federal system.
In February, 2019, Special Agents of Homeland Security Investigations (HSI) office in Omaha received an investigative lead from agents in Boston, Massachusetts regarding the possible production of child pornography by a suspect in Dwight, Nebraska. Agents in HSI Boston had been conducting an investigation into persons utilizing various chat rooms and dark web internet sites to discuss and trade child pornography. Agents noted an individual (later identified as McCullar) who was sharing self-produced images and initiated a conversation with him. McCullar provided images to the agent.
In February, 2019, agents served a federal search warrant at McCullar’s residence and discovered McCullar was in Tampa, Florida on a business trip. Agents located McCullar in Tampa and he was transported back to Nebraska. Once interviewed, McCullar admitted to producing and sharing the images of child pornography. Upon examination of the devices seized from McCullar, more than 30,000 images and 1,500 videos of child pornography were recovered.
U.S. Attorney Kelly praised the investigative efforts of Homeland Security Investigations in locating and stopping this dangerous child predator. U.S. Attorney Kelly noted that today’s sentencing, totaling 41 years and 10 months, should send a clear message to those who prey on our children that their actions will result in the most severe of consequences.
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 United States 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.
This case was investigated by the Department of Homeland Security Investigations.
Dorchester Man Charged with Sex TraffickingRead the Press Release
BOSTON – A Dorchester man was arrested today on various sex trafficking charges.
Bruce “Arki” Brown, 41, was charged in an indictment unsealed today with four counts of sex trafficking by force, fraud, or coercion; one count of sex trafficking of a minor by force, fraud and coercion; one count of transportation of a minor for purposes of prostitution; and one count of conspiracy to commit sex trafficking. Brown was detained following an initial appearance in federal court in Boston today.
According to the indictment, over a 15 year period beginning in June 2004 through at least July 2019, Brown engaged in the sex trafficking of four victims.
The charges of sex trafficking and conspiracy to commit sex trafficking provide for a sentence of up to life in prison, five years of supervised release and a $250,000 fine. The sex trafficking statute also imposes a mandatory minimum sentence of 15 years for offenses committed by means of force, threats of force, fraud or coercion. The charge of transporting a minor for prostitution provides for a minimum sentence of 10 years and up to life in prison, five years of supervised release and a fine of up to $250,000. Each count also provides for mandatory restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Valuable assistance was provided by the Boston Police Department.
Dominican National Pleads Guilty to Illegal Reentry and Possession of a FirearmRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to illegal reentry and illegally possessing a firearm and ammunition.
Twaldo Baez, 37, a Dominican national who was previously removed from the United States after being convicted of a felony in 2007, pleaded guilty to illegal reentry and being an alien in possession of a firearm and ammunition. U.S. District Court Chief Judge F. Dennis Saylor scheduled sentencing for June 10, 2020.
On March 31, 2019, Baez was arrested in Lawrence following a high-speed motor vehicle chase. During the chase, Baez, who was originally operating the vehicle, switched from the driver’s seat to the front passenger seat. After the vehicle was stopped and the occupants were removed from the vehicle, a loaded Taurus 9mm semi-automatic pistol and 8 rounds of 9mm ammunition were recovered. During a subsequent interview with law enforcement, Baez admitted to possessing the firearm and ammunition, his alienage, and that he illegally reentered the United States after his removal in 2007.
The charge of being an alien in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison and three years of supervised release. The charge of illegal reentry provides for a sentence of up to two years in prison and one year of supervised release. Baez will face removal proceedings following his sentence. 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; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lawrence Police Chief Roy P. Vasque made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Diamond Man Indicted for Sexual Exploitation of a MinorRead the Press Release
SPRINGFIELD, Mo. – A Diamond, Missouri, man was indicted by a federal grand jury today for the sexual exploitation of a minor.
Terry Lee Miksell, 63, was charged in a two-count indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Miksell on Jan. 28, 2020.
Miksell is charged with one count of producing child pornography and one count of using the internet and a cell phone to attempt to induce a minor to engage in sexual activity.
According to an affidavit filed in support of the original criminal complaint, Facebook initiated two CyberTips in September 2019 after locating sexually explicit messages and images between Miksell and a 16-year-old victim, identified in court documents as Jane Doe. Miksell allegedly asked Jane Doe in Facebook Messenger chats to send him sexually explicit images and videos. She told investigators she sent those images and videos at his request.
Officers executed a search warrant at Miksell’s residence on Jan. 16, 2020, and seized several devices, including a cell phone. According to the affidavit, the cell phone contained a pornographic video of the child victim.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Customs and Border Protection Officer Admits Using Unreasonable Force at Port of EntryRead the Press Release
Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413
NEWS RELEASE SUMMARY – February 19, 2020
SAN DIEGO – U.S. Customs and Border Protection Officer Esaul Bello pleaded guilty in federal court today, admitting that he used unreasonable force on an individual who had applied for admission to the U.S. at the Calexico, California Port of Entry.
According to his plea agreement, Bello was on duty at a Primary Vehicle Lane booth at the Calexico Port of Entry on November 26, 2018, when he encountered the individual in question. During the course of the inspection, Bello placed two hands around the neck of the individual, who was not offering any physical resistance. Bello then shook the individual, in violation of the individual’s Fourth Amendment right to be free from unreasonable seizure and the unreasonable use of force. As a condition of his plea, Bello agreed to voluntarily resign his employment with the U.S. government and terminate his security clearance.
“This is a rare and troubling situation,” said U.S. Attorney Robert Brewer. “We will always move swiftly to protect the public from officers who use their power to violate another person's Constitutional rights.”
“The DHS OIG takes any and all allegations of abuse of authority seriously and intends to hold accountable those who try to use their official position to take advantage of others,” said Angie Cuevas-Mason, Assistant Special Agent in Charge, Department of Homeland Security, Office of Inspector General, El Centro, California. “The DHS OIG will continue to use its investigative resources to stop those who use their official authority to violate the rights of others.”
Bello is scheduled to be sentenced on June 2, 2020 by U.S. Magistrate Judge Karen S. Crawford.
This case is being prosecuted by Assistant U. S. Attorney Christopher P. Tenorio and Civil Rights Division Trial Attorney DW Tunnage.
DEFENDANT Case Number 20cr0015-KSC
Esaul Bello Age: 53 San Diego, CA
SUMMARY OF CHARGES
Deprivation of Rights under Color of Law – Title 18, U.S.C., Section 242 (misdemeanor)
Maximum penalty: One year of imprisonment and $100,000 fine
AGENCY
Department of Homeland Security, Office of the Inspector General
*This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, by U.S. Attorney Robert Brewer, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
Corporate President of Kronsys, Inc., Cygtec, Inc., and Arkstek, Inc. Sentenced for Conspiracy to Commit Visa FraudRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina announces that sairam yeruva, age 45, a resident of Cary, North Carolina, and a naturalized United States citizen from India, was sentenced today in federal court to 12 months and 1 day imprisonment, along with 1 year supervised release and a $50,000 fine.
On January 7, 2019, YERUVA pled guilty to conspiracy to commit visa fraud as charged in a Criminal Information. As part of the plea, YERUVA agreed to forfeit $2,600,000 of the criminal proceeds to the U.S. government.
The Criminal Information alleges that YERUVA, and others, conspired to submit false and misleading information to United States Citizenship and Immigration Services in support of at least one hundred eighty-three (183) initial H-1B petitions and at least one-hundred (100) H-1B extension petitions that were filed on behalf of KRONSYS, INC., CYGTEC, INC., and ARKSTEK, INC. During the course of the conspiracy, YERUVA served as the corporate president of each of these three companies.
According to the charging document, YERUVA, and others, declared in their initial petitions that their H-1B nonimmigrant foreign workers would be employed by the companies at specific work locations in or near Raleigh, North Carolina or Aurora, Colorado for the sole purpose of developing internal, or “in-house”, information technology projects. The petitions also declared that the H-1B workers would be paid the prevailing wage throughout the entirety of their H-1B status with the companies.
Rather than developing the “in-house” projects, the H-1B workers provided IT consulting services to end clients throughout the United States, thereby earning KRONSYS, INC., CYGTEC, INC., and ARKSTEK, INC. at least $26,225,000. Many of the H-1B workers were “benched” while they waited for their initial end client assignment to begin or while they were in between end client assignments. “Benching” refers to the practice of placing H-1B foreign workers in nonproductive status without pay while they search for new end client assignments.
“The fraud and misuse of visa programs such as the H-1B program subverts the legitimate immigration process, and denies qualified and capable United States citizens and those legally in the United States from obtaining positions requiring specialized skills. I am committed to holding those that seek to circumvent the process accountable,” said United States Attorney Robert J. Higdon, Jr.
“Each year, thousands of nonimmigrants with specialized skills try to obtain H-1B visas,” said Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations Charlotte. “When criminals exploit the U.S. visa system for personal gain, no one wins. Workers are sidelined without pay, and legitimate U.S. businesses lose the opportunity to hire needed employees.”
The H-1B program is intended to assist employers who cannot otherwise obtain needed business skills and abilities from the United States workforce. The H-1B program authorizes these employers to temporarily employ foreign workers as nonimmigrants in specialty occupations. Speculative employment is not permitted under the H-1B program, as the program is not intended as a vehicle for foreign workers to engage in a job search, or for employers to bring in foreign workers to meet possible workforce needs.
A Criminal Information is a formal written accusation filed by the United States Attorney. YERUVA faces maximum penalties of five years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The Document and Benefit Fraud Task Force (DBFTF) is investigating the case. Homeland Security Investigations led the investigation with the assistance of United States Citizenship and Immigration Services.
Columbus man offers guilty plea for coercing minor girls nationwide into sending sexually explicit videos, images through various social media platformsRead the Press Release
COLUMBUS, Ohio – A Columbus man offered his guilty plea in U.S. District Court today to four crimes related to the sexual exploitation of minors. The man chatted with minor females located throughout the country on Instagram, Snapchat and other social media sites and requested that the girls send him videos of themselves engaged in sexual acts.
Specifically, Michael T. Sutherin, 21, agreed to plead guilty to two counts of coercing a minor and two counts of receiving child pornography.
Sutherin met minor females through Instagram, Snapchat, Kik and Telegram and coerced at least four 12 to 15 year olds to engage in sexual activities on video.
Forensic examination of Sutherin’s phone and laptop confirmed that Sutherin had used social media to solicit minor girls for sexually explicit videos and images of themselves. Sutherin also used social media to request and trade child pornography.
Review of Sutherin’s conversations with the girls show that he instructed the minors to call him “daddy.”
The parties involved in this case have recommended a prison sentence of 12 years.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea offered today before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorneys Heather A. Hill and S. Courter Shimeall are representing the United States in this case.
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Co-Founder of Shuttered Bucks County Addiction Rehab Center Pleads Guilty to Health Care FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Branden Coluccio, 32, of Doylestown, PA entered a guilty plea to a one-count Information, charging him with conspiracy to commit health care fraud. The charges against the defendant stem from federal and state investigations into elaborate insurance fraud schemes involving a Bucks and Montgomery County-based addiction treatment center, Liberation Way.
The investigations exposed an array of health care fraud schemes committed by individuals associated with Liberation Way, including an over-billing scheme connected with the facility’s medical director, as well as an elaborate kick-back scheme involving thousands of medically-unnecessary urine tests which were sent to Florida-based laboratories for analysis. Coluccio, a co-founder of Liberation Way, participated in yet another scheme by fraudulently purchasing premium insurance policies for prospective patients on their behalf, which then allowed Liberation Way to bill insurance companies for expensive “treatment” purportedly provided to these patients. Liberation Way represented that the patients were buying and paying for these policies themselves, when in reality Liberation Way was paying the premiums, which is illegal.
The defendant pleaded guilty before U.S. District Court Judge Wendy Beetlestone today, pursuant to a plea agreement which recommends that the Court impose a 37-month sentence. The agreement also requires payment of over $3 million in restitution, as well as additional forfeiture, by the time of sentencing. Sentencing is scheduled for May 22, 2020.
This case was investigated in conjunction with the Pennsylvania Attorney General’s Office, and is the fifth federal Information that has been filed against defendants associated with Liberation Way. The four other defendants -- Dr. Dominick Braccia, Dr. Ramesh Sarvaiya, Jesse Peters, and Jason Gerner – have all pleaded guilty. The latter three have yet to be sentenced. Dr. Braccia was sentenced by Judge Beetlestone in September 2019 to a term of 37 months in prison.
“Liberation Way was essentially a front for several multi-layered, years-long schemes that crossed state lines and victimized hundreds of people who needed help,” said U.S. Attorney McSwain. “The convictions coming out of this case send a clear message to those attempting to profit from fraud and the despair of individuals battling addiction: if you behave in this manner, you will be held accountable. We have been proud to work with the Office of the Pennsylvania Attorney General and our federal agency partners to bring all of the defendants in this case to justice.”
“The defendant took advantage of vulnerable people and their families for profit,” said Attorney General Josh Shapiro. “I’m proud of the hard work done by The U.S. Attorney’s Office and the Office of Attorney General to hold these individuals accountable.”
“Coluccio defrauded insurance programs for millions of dollars and he used vulnerable patients seeking help for their addictions to do it,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Health care fraud isn’t some quick and easy way to bulk up your bank account. It’s a costly, consequential federal crime and a high priority for the FBI.”
“Coluccio admitted to defrauding federal health care programs and compounded his crime by seizing on the plight of drug-addicted patients,” said Maureen R. Dixon, Special Agent in Charge, of the Office of the Inspector General for the U.S. Department of Health and Human Services. “We will continue to work with our State and Federal law enforcement partners to protect the integrity of all HHS Programs.”
The case was investigated by the Pennsylvania Attorney General’s Office, the Federal Bureau of Investigation, the Department of Health and Human Services, Office of Personnel Management, and the Department of Labor. It is being prosecuted by Assistant United States Attorney Nancy Beam Winter and Special Assistant United States Attorneys Kristy Christ and Robert Labar, both of the Pennsylvania Attorney General’s Office.
City of Richland Police Department and City of Kennewick Police Department Receive over $154,000 Forfeiture Award from U.S. Department of Justice as a Result of Seizure of Assets from Convicted Child Pornography CriminalRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced today and presented the City of Richland Police Department and the City of Kennewick Police Department with $154,668.21 in asset forfeiture equitable sharing funds.
The Richland Police Department is receiving $96,667.63 and the Kennewick Police Department is receiving $58,000.58 to be used for further law enforcement purposes. Richland Police Chief John Bruce accepted the funds on behalf of the Richland Police Department. Kennewick Police Chief Ken Hohenburg accepted the funds on behalf of the Kennewick Police Department. The two law enforcement agencies are members of the Southeast Regional Internet Crimes Against Children (ICAC) Task Force and share the forfeiture funds as a result.
The asset forfeiture funds are the result of the United States’ seizure of assets from Dale Gordon Black of Kennewick, Washington. On December 18, 2018, Black pleaded guilty to three counts of Production of Child Pornography. On July 16, 2019, Senior United States District Judge Edward F. Shea sentenced Black to a 30-year term of imprisonment, to be followed by a lifetime of court supervision after he is released from federal prison. The court ordered Black to forfeit $185,900 in cash and his Subaru Legacy, and to pay $19,150 in restitution and $305,000 in fines, $5,000 of which was imposed under the Justice for Victims of Trafficking Act.
According to information disclosed during court proceedings, on July 18, 2017, undercover Federal Bureau of Investigation agents downloaded a child pornography video from an Internet Protocol address that was traced to Black's residence using a peer-to-peer file sharing program.
Investigators obtained a search warrant and seized many electronic devices from Black’s residence. A forensic examination of Black’s electronic devices revealed child pornography images that he had produced. The images were of three children Black knew either as neighbors or through his work in a local youth mentoring program. Black produced the images at his house and on overnight trips he took alone with the children.
As part of the prosecution of Black, the United States seized, forfeited, and sold Black’s Subaru Legacy because he used it to transport his victims in furtherance of his child pornography production crimes. In addition, the United States forfeited $185,900 in cash from Black, which represented proceeds from the sale of the house where Black produced child pornography images. All of the forfeitures were approved and authorized by the court.
Pursuant to applicable regulations, an 80% share of the forfeiture proceeds from the forfeited cash and sale of Black’s vehicle are being shared with the Richland Police Department and Kennewick Police Department in recognition of their significant contributions to the investigation and prosecution of Dale Gordon Black. The shared asset forfeiture funds will assist these agencies in their further crime-fighting efforts.
The Department of Justice Asset Forfeiture Program is, first and foremost, a law enforcement program. It removes the tools of crime from criminal organizations, deprives wrongdoers of the proceeds of their crimes, recovers property that may be used to compensate victims, and deters crime. The Department of Justice emphasizes these law enforcement purposes with all federal, state, local, and tribal law enforcement agencies.
One of the ancillary benefits of asset forfeiture is sharing federal forfeiture proceeds with cooperating state and local law enforcement agencies through equitable sharing as is occurring here. The Department of Justice Equitable Sharing Program enhances cooperation between federal, state, local, and tribal law enforcement by providing valuable additional resources to those law enforcement agencies.
United States Attorney Hyslop said, “Sexual predation and exploitation of children are heinous crimes. That Dale Black preyed on vulnerable children through his participation in a youth mentorship program make his crimes even more egregious. The children in our community are safer now that Black has been convicted of three serious felony child pornography offenses and removed from society and the ability to hurt others. The sentence imposed in this case, and the forfeiture of Black’s assets, serves as a stern warning to offenders that you will be held accountable for your actions.”
Hyslop further said, “Prosecuting those who would produce pornographic images of vulnerable minors is a high priority of the United States Attorney’s Office for the Eastern District of Washington. The investigation resulting in Black’s conviction exemplifies the positive results that can be achieved when federal, state, local and tribal law enforcement agencies collaborate and work together. I commend the dedicated work of all the law enforcement officers who investigated this case.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Department of Justice 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and,
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The enforcement action resulting in this forfeiture was assisted by the ICAC Task Force. The ICAC Task Force is comprised of the Cities of Richland and Kennewick, Benton County, and the Department of Homeland Security Investigations, Seattle Office. The ICAC Task Force serves the public’s best interest by allowing these agencies to pool resources and knowledge to investigate, prosecute and deter the possession, production, and distribution of child pornography and the utilization of the internet to seek out children as sexual victims.
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation with assistance from the ICAC Task Force, the Richland Police Department and the Kennewick Police Department.
This case was prosecuted by Alison L. Gregoire and Brian M. Donovan, Assistant United States Attorneys for the Eastern District of Washington.
More information regarding the DOJ Equitable Sharing Program can be found here: DOJ Guide to Equitable Sharing.Charleston Woman Sentenced for Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman was sentenced to federal prison for a drug crime, announced United States Attorney Mike Stuart. Sheila Daun Jarrett, 43, was sentenced to 72 months in prison and five years of supervised release for possession with intent to distribute five grams or more of methamphetamine.
“Six years in prison,” said United States Attorney Mike Stuart. “We are putting meth dealers like Jarrett behind bars for significant terms of imprisonment.”
Jarrett previously admitted that on July 6, 2019, she was driving a vehicle with expired registration on 1st Avenue, in Nitro, West Virginia. A Nitro police officer noticed the expired registration and initiated a stop. She stopped the vehicle and attempted to hide the methamphetamine in a natural void in the vehicle’s dashboard. The officer asked Jarrett if there was any methamphetamine in the vehicle. She explained that there was a methamphetamine pipe. Investigators conducted a search of the vehicle and retrieved over 20 grams of methamphetamine and drug paraphernalia. At the time, she was knowingly and intentionally transporting a quantity of methamphetamine that she intended to distribute.
The Nitro Police Department conducted the investigation. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Andrew J. Tessman is handling the prosecution.
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Biloxi Man Sentenced to Nine Years in Federal Prison for Cocaine Trafficking and Illegally Possessing FirearmRead the Press Release
Gulfport, Miss. – Darrell Donnell McDonald, 39, of Biloxi, was sentenced today by U.S. District Judge Sul Ozerden to 108 months in federal prison, followed by 3 years supervised release, for possession of cocaine with intent to distribute, and possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and by Special Agent-in-Charge Kurt Thielhorn, of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). McDonald also was ordered to pay an $8,000 fine and $200.00 in special assessments. McDonald previously pled guilty on November 1, 2019.
On May 1, 2017, the Biloxi Police Department received a citizen complaint that McDonald had been visiting his small rental storage unit 5-10 times a day and criminal activity was suspected. Biloxi police responded to the complaint and noticed a strong odor of fresh marijuana emanating from the storage unit. Police also obtained a copy of McDonald’s rental agreement and, later that same day, McDonald was caught by Biloxi Police closing the door of the storage unit (with the keys in his hand) while marijuana odor emanated from the unit. A Biloxi Police narcotics canine team arrived, and the canine alerted outside the storage unit.
Pursuant to a state search warrant, the rental unit was searched and the following items were found: approximately 316 grams of cocaine, approximately 1,758 grams of marijuana, approximately $4,563 in cash, a loaded Hi-Point 9mm handgun, and other evidence of drug trafficking activity.
McDonald had a criminal history of multiple narcotics felony convictions and one firearm related felony conviction. Included in these felony convictions was his conviction in 2008, in the Circuit Court of Harrison County, for Possession of Controlled Substance With Intent to Distribute, and Unlawful Possession of a Firearm by a Convicted Felon.
U.S. Attorney Hurst commended the coordinated investigation by the ATF and by the City of Biloxi Police Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Bakersfield Man Pleads Guilty to Conspiring to Structure FundsRead the Press Release
FRESNO, Calif. — Majed Bashir Akroush, aka Mike Akroush, aka Magic Mike, 52, of Bakersfield, pleaded guilty today to conspiring to structure at least half a million dollars in cash withdrawals from his bank accounts, U.S. Attorney McGregor W. Scott announced.
According to court documents, Akroush structured funds in amounts just under $10,000 in order to evade the currency transaction report filing requirements. As part of the plea agreement, he agreed to the forfeiture of the following assets derived from his structuring activity: real property in Bakersfield, approximately $109,555 seized from five different bank accounts, approximately $199,181 in cash seized from his residence, approximately $233,460 in cash seized from two safe deposit boxes, and a 1962 Chevrolet Impala.
According to court documents, during the time of the structured cash withdrawals, Akroush owned Magic Mans Wholesale Inc., an internet business that distributed synthetic marijuana, commonly known as spice or incense. Magic Mans Wholesale later morphed into other spice businesses known as Blue Whale Wholesale and World of Inc. Wholesale. Federal agents successfully seized and shut down these websites and forfeited the domain names.
Akroush is scheduled for sentencing on May 18, 2020 before U.S. District Judge Dale A. Drozd. Akroush faces a maximum statutory penalty of five years in prison and a fine of up to twice the gross gain obtained by him. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, and the California Highway Patrol with assistance from the U.S. Postal Inspection Service, the California Department of Motor Vehicles, Kern County Probation, Kern County Sheriff’s Office, and Bakersfield Police Department. Assistant U.S. Attorneys Karen A. Escobar and Henry Z. Carbajal III are prosecuting the case.
This case was designated an Organized Crime Drug Enforcement Task Force (OCDETF) case. The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Armored Car Employee and Two Co-Defendants Sentenced to Prison for Theft of over $500,000 on Long IslandRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Alexis Laguerra, Raymond Soto, Jr. and Raymond Soto, Sr. were sentenced by United States District Judge Sandra J. Feuerstein to 30 months, 33 months and 18 months in prison, respectively, for bank larceny in connection with the theft of over $500,000 from an armored car on November 2, 2018 in Valley Stream, New York. Laguerra was an employee of GardaWorld, the owner of the armored car. The defendants were also ordered to pay forfeiture of $300,000, and restitution of $510,000 to GardaWorld. The defendants pleaded guilty in April 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentences.
As set forth during the prior guilty plea proceedings and in court filings, Laguerra used his insider’s knowledge of GardaWorld to plot and carry out the theft. Laguerra was the assigned GardaWorld driver for the overnight shift and left the armored car unoccupied and unguarded outside a bank. Soto Jr. entered the armored car, drove a short distance from the bank, and removed three bags of cash totaling $510,000 from the vehicle. Soto Sr., driving a getaway car, picked up Soto Jr. and the cash and fled. Law enforcement authorities later recovered $130,000 of the stolen money from Soto Sr.’s residence in Queens.
“This inside job has landed the defendants inside prison where they can contemplate what a foolhardy idea this crime was,” stated United States Attorney Donoghue. “I commend the FBI and the Nassau County Police Department for quickly solving this crime and demonstrating, once again, that crime doesn’t pay.”
“Today’s sentencing of defendants Laguerra, Soto Jr and Soto Sr. is a clear example of how numerous law enforcement agencies working together brought these three defendants to justice in an expeditious manner. I would like to congratulate all of the investigators and their respective agencies for a job well done,” stated NCPD Commissioner Ryder.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendants:
ALEXIS LAGUERRA
Age: 32
Brooklyn, New YorkRAYMOND SOTO, SR. (also known as “Razor”)
Age: 49
Richmond Hill, QueensRAYMOND SOTO, JR. (also known as “Rambo”)
Age: 29
Richmond Hill, QueensE.D.N.Y. Docket No. 18-CR-678 (SJF)
78 Year Old Boise Man Sentenced to Federal Prison a Second Time for Distributing MethamphetamineRead the Press Release
BOISE – Clinton DeWitt Bays, Jr., 78, of Boise, was sentenced to 96 months in prison for distributing methamphetamine, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Bays to serve five years of supervised release following his prison sentence. Bays pleaded guilty on October 28, 2019.
According to court records, Bays was arrested and charged with drug trafficking and possession with intent to deliver methamphetamine in state court on December 31, 2017. On January 11, 2018, Bays posted a $250,000 bond and was released from state custody. While out on bond in the state case, Bays sold methamphetamine to an undercover officer on three occasions. A federal grand jury indicted Bays on one count of possession with intent to distribute methamphetamine on February 14, 2018. Bays was detained and has been in federal custody since that time. A federal grand jury returned a superseding indictment on December 12, 2018, charging Bays with selling methamphetamine to an undercover detective on December 19, 2017, January 14, 2018, January 16, 2018, and January 30, 2018. Bays admitted that on January 30, 2018, he sold four ounces of methamphetamine to an undercover detective in exchange for $1,600.
Bays had previously been sentenced to federal prison for methamphetamine and gun charges in 2009. Bays pleaded guilty to possession with intent to distribute methamphetamine and unlawful possession of a firearm, and was sentenced on March 13, 2009, to 78 months in prison and three years of supervised release. In 1992, Bays was convicted of two counts of vehicular manslaughter and aggravated driving while under the influence, ending his 26-year career as a Boise City Police Officer and Sergeant. On January 11, 2007, the State of Idaho Commission of Pardons and Parole pardoned Bays on the vehicular manslaughter and aggravated driving while under the influence.
This case was a result of a joint investigation by the Boise and Meridian Police Departments and the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Program participants include Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
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18 February 2020
Worcester Man Pleads Guilty to Gun ChargeRead the Press Release
BOSTON – A Worcester man pleaded guilty today to being a felon in possession of a firearm and ammunition.
Christopher Brown, 35, pleaded guilty to being a felon in possession of a firearm before U.S. District Court Judge Timothy S. Hillman, who scheduled sentencing for June 8, 2020. In February 2019, Brown was charged by federal criminal complaint.
On Nov. 25, 2018, Brown was arrested in Worcester for possession of a loaded Taurus .38 revolver and 4 rounds of ammunition. Brown is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison.
The charging statute provides for a sentence of up to 10 years in prison, up to 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting 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. PSN is 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.
Westmoreland County Woman Pleads Guilty to Possessing Fentanyl/Tramadol MixtureRead the Press Release
PITTSBURGH - A resident of Lower Burrell, Pennsylvania, pleaded guilty in federal court to a charge of possession with intent to distribute a mixture of fentanyl and tramadol, United States Attorney Scott W. Brady announced today.
Amber Doller-Smith, age 33, pleaded guilty to one count before United States District Judge Nicholas Ranjan.
In connection with the guilty plea, the court was advised that on September 13, 2018, officers from Lower Burrell and New Kensington Police Departments stopped Doller-Smith’s SUV for reckless and erratic driving. During the stop, the officers smelled the odor of burnt marijuana emanating from Doller-Smith’s car. A canine unit was summoned to the scene. The canine examined on the exterior and interior of the vehicle and alerted on a purse situated on the front seat. The officers searched the purse and discovered a number of pills and a bankcard bearing Doller-Smith’s name. Based on this discovery, the officers decided that a frisk of Doller-Smith’s person was warranted. Since all of the officers at the scene were males, a female officer from a neighboring jurisdiction was dispatched to conduct the frisk. While the officers and Ms. Doller-Smith were waiting for the female officer to arrive, Ms. Doller-Smith informed the canine’s handler that she had heroin concealed in her bra. After the female officer arrived, Doller-Smith surrendered the drugs to her. Laboratory analysis revealed that the substance consisted of a mixture of fentanyl and tramadol and had a net weight of 46.53 grams.
Judge Ranjan scheduled sentencing for June 9, 2020 at 10:00 am. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court took the government’s request that Doller-Smith’s be revoked under advisement.
Assistant United States Attorney Michael Leo Ivory is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Lower Burrell Police Department, and the New Kensington Police Department conducted the investigation that led to the prosecution of Doller-Smith.
Westford Man Pleads Guilty to Embezzlement and Tax CrimesRead the Press Release
BOSTON – The former CEO and co-founder of a Boston-based mobile phone music streaming service has pleaded guilty to charges of engaging in a scheme to embezzle hundreds of thousands of dollars from his employer and filing false tax returns.
David John, who recently changed his name from David Fondots, 56, pleaded guilty on Friday, Feb. 14, 2020, to one count of wire fraud and one count of filing false tax returns. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 15, 2020.
John misappropriated company funds which he used for his personal benefit. From 2014 to 2016, John caused his company to pay significant sums of money directly to himself, to a family member, and to companies controlled by a family member. John used the embezzled funds to pay personal expenses for himself and his family, including car payments, legal fees, and travel, among other things. John is also charged with failing to report the illegal income to the IRS over the period of his embezzlement scheme.
The charge of wire fraud carries a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, restitution, and forfeiture. The charge of filing false tax returns carries a sentence of up to three years in prison, one year of supervised release and a fine of $ 250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent In Charge of the Federal Bureau of Investigation, Boston Field Office; 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. Attorney Sara Miron Bloom of Lelling’s Securities & Financial Fraud Unit is prosecuting the case.
Van Buren Man Sentenced to 8 Years in Federal Prison for Bank RobberyRead the Press Release
Fort Smith, AR – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Roy Dean Lamproe, age 43, of Van Buren, Arkansas, was sentenced today to 96 months in federal prison followed by three years of supervised release on one count of Bank Robbery. The Honorable P.K. Holmes III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, Lamproe entered the Arvest Bank in Van Buren at approximately 2:50 p.m., on July 2, 2019. He approached the teller line, displayed a hand gun and told the tellers he had a bomb that he would detonate unless the tellers gave him the bank’s money. A teller placed a large amount of money into a small box and Lamproe fled the bank. Lamproe’s physical description provided by bank employees as well as an image captured by the bank’s surveillance camera enabled law enforcement agents to identify Lamproe as the bank robber and located him at his last known address. A parole waiver and consent to search was granted by a relative that allowed law enforcement agents to enter Lamproe’s residence. A subsequent search of the residence revealed the proceeds of the bank robbery were inside the residence. Lamproe was arrested and taken into custody.
Lamproe was indicted by a federal grand jury in August of 2019, and entered a guilty plea in October of 2019.
The investigation was conducted by the Federal Bureau of Investigation and the Van Buren Police Department. Assistant United States Attorney Kyra Jenner prosecuted the case for the United States.
U.S. Attorney Jay E. Town to Serve as Working Group Co-Chair on the Presidential Commission on Law Enforcement and the Administration of JusticeRead the Press Release
BIRMINGHAM, Ala. – U.S. Attorney Jay E. Town will serve as a Co-Chair of the Criminal Justice System Personnel Intersection Working Group on the Presidential Commission on Law Enforcement and the Administration of Justice. The working group will examine how police, judges, prosecutors, defense attorneys, and correctional authorities intersect so that the system of criminal justice can enhance its ability to prevent and control crime and serve the victims of crime.
“I am humbled and honored to serve as working group Co-Chair on the Presidential Commission on Law Enforcement and the Administration of Justice,” Town said. “The Criminal Justice System Personnel Intersection Working Group will address a multitude of issues seeking to broaden the relationships between every layer of law enforcement, improve relations between the community and the justice system, and find innovative ways to reduce crime as a result. I look forward to joining my colleagues in this incredibly important and collective effort to help this Administration identify effective and systemic criminal justice reforms that will reduce and prevent crime in America.”
On October 28, 2019, President Donald J. Trump signed Executive Order No. 13896, authorizing and designating the Attorney General to create such a Commission that would explore modern issues affecting law enforcement that most impact the ability of American policing to reduce crime. Attorney General William P. Barr announced the establishment of the Commission on January 22, 2020.
The Executive Order instructs the Commission to conduct its study by focusing on the law enforcement officers who are tasked with reducing crime on a daily basis. It also directs the Commission to research “important current issues facing law enforcement and the criminal justice system,” and recommends a variety of subjects for study, such as, but not limited to:
- The challenges to law enforcement associated with mental illness, homelessness, substance abuse, and other social factors that influence crime and strain criminal justice resources;
- The recruitment, hiring, training, and retention of law enforcement officers, including in rural and tribal communities;
- Refusals by State and local prosecutors to enforce laws or prosecute categories of crimes;
- The need to promote public confidence and respect for the law and law enforcement officers; and
- The effects of technological innovations on law enforcement and the criminal justice system, including the challenges and opportunities presented by such innovations.
In studying these issues, the Commission will be assisted by “working groups.” These working groups will consist of subject matter experts across the federal and state government and have a particularized focus on distinct issues the Commission will review (e.g. “Technology”). They will assist and facilitate the Commission’s study of these issues, and provide advice and counsel on their specific subject. The working groups, which will include our federal partners from the Departments of Homeland Security, Health and Human Services, Interior, Agriculture, Housing and Urban Development, and other federal agencies, will provide much needed expertise and insight on the important issues affecting law enforcement. This Commission requires a team effort. Such a rich variety of federal and state government participation is essential to the work at hand. Once the Commission completes its study, it will recommend the best measures to empower American law enforcement to combat the criminal threats of our time, and to restore the utmost public confidence in our law enforcement to protect and serve.
In forming the Commission, the Department of Justice has marshaled together the expertise and experiences of all sectors of the law enforcement community—urban police departments, county sheriffs, state attorneys general and prosecutors, elected officials, United States Attorneys, and federal law enforcement agencies. They come from distinct states, cities, counties, and towns across the country but share a common mission of safeguarding their respective communities from a variety of threats.
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.
Two Muskogee Individuals Plead Guilty to Stealing Firearm from Federal DealerRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jakeyvious Dune Lee Key, age 19, and Damarea Wayne Bell, age 19, both residents of Muskogee, Oklahoma, entered guilty pleas to one count each of Stealing a Firearm From a Federal Firearms Licensed Dealer, in violation of Title 18, United States Code, Sections 924(m) and 2, punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that from on or about July 24, 2019, within the Eastern District of Oklahoma, the defendants, did knowingly steal, from a federal firearms licensed dealer, a firearm, to-wit: one (1) Ruger .357 caliber revolver.
The charges arose from an investigation by the Muskogee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the pleas and ordered the completion of the presentence investigation reports.
Assistant United States Attorney Ryan Conway represented the United States.
Texas Man Admits Conspiring to Distribute 21 Kilograms of Illegal DrugsRead the Press Release
TRENTON, N.J. – A Texas man today admitted conspiring to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and five grams or more of methamphetamine, U.S. Attorney Craig Carpenito announced.
Juan Macias Prieto, 53, of El Paso, Texas, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and five grams or more of methamphetamine, and one count of possession with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and five grams or more of methamphetamine.
According to documents filed in this case and statements made in court:
On Sept. 17, 2019, Macias Prieto conspired with others to distribute narcotics. Macias Prieto, a commercial truck driver, transported approximately 21 kilograms of narcotics into New Jersey with the intent to distribute the narcotics to conspirators.
The counts to which Macias Prieto pleaded guilty each carry a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for May 26, 2020.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
St. Clair County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
James K. Young, 66, of Dupo, Illinois, has pleaded guilty to two counts of receiving child pornography, U.S. Attorney Steven D. Weinhoeft announced today. Young is also charged with five counts of distributing child pornography, but the United States has agreed to dismiss those charges at the sentencing hearing, which is scheduled for May 13, 2020, in East St. Louis, Illinois.
Young was discovered by law enforcement during an online, undercover investigation. On May 3, 2018, a federal search warrant was executed at Young’s home. His desktop computer was seized and found to contain 2,441 images of child pornography. As part of his plea, Young admitted that he knowingly received child pornography on Nov. 7, 2017, and April 29, 2018.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Angela
Scott. The 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.”
South Palm Beach Man Sentenced to More Than Eight Years in Prison for Possessing Child PornographyRead the Press Release
WEST PALM BEACH−U.S. District Judge Rodney Smith sentenced Gary Roger Kolligian, 65, of South Palm Beach, Florida, to 97 months in prison for possessing child pornography, some of which depicted children under age 12. The judge also sentenced Kolligian to 15 years of supervised release following his prison term.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
Kolligian pled guilty to possessing child pornography on November 19, 2019.
According to court records, Kolligian posted sexual abuse images of minors on Twitter. Twitter reported the activity to the National Center of Missing and Exploited Children. Once law enforcement learned about the activity, they located and spoke with Kolligian. Kolligian admitted to officers that he possessed child pornography, that he chatted with people on-line about child pornography, and that he downloaded child pornography from an on-line chat group. Kolligian saved his collection of child pornography on different devices including a laptop computer, hard drives, and CD/DVDs. In total, he possessed over 300 images and videos of child pornography. Some of the saved material went back 20 years. The child pornography that Kolligian collected on these devices included pictures and videos of children who appeared to be as young as seven or eight-years-old posing sexually or engaging in sexually explicit acts.
U.S. Attorney Ariana Fajardo Orshan commended the investigation efforts of HSI, the South Palm Beach Police Department, and the Lantana Police Department. Assistant U.S. Attorney Gregory Schiller prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the 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.
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.
Significant sentences imposed in large synthetic drug conspiracyRead the Press Release
CORPUS CHRISTI, Texas – Eight Corpus Christi residents have been ordered to federal prison following their convictions for conspiracy to possess with intent to distribute synthetic cannabinoids, announced U.S. Attorney Ryan K. Patrick.
James Roye Bryan Townzen, 30, Victoria Martinez, 24, Michael Llamas, 29, Benjamin Llamas, 35, Raymond Reyes, 38, John Perez, 28, Raymond Shane Townzen, 29, and Joe McNabb, 30, pleaded guilty April 16, 2019, while Charles Warren Callis, 42, entered his plea Aug. 19, 2019.
Today, Senior U.S. District Judge John D. Rainey sentenced Callis to serve 226 months in federal prison for his involvement with the synthetic cannabinoid offense. He also pleaded guilty to an unrelated possession with intent to distribute cocaine charge, but proceeded to trial on a related possession of a firearm in furtherance of cocaine trafficking. A jury convicted him of that charge July 30, 2019. He received a sentence of 166 months for the cocaine trafficking to be served consecutively to another 60 months for the firearm. That total sentence will be served concurrently to the 166-month sentence imposed in the synthetic cannabinoids case for a total 226-month sentence.
In December 2019, James Townzen received a sentence of 222 months in prison. Raymond Townzen was sentenced to 150 months, while Reyes, Perez and McNabb were ordered to serve respective terms of 84, 72 and 156 months in federal prison. Martinez and Michael Llamas received 160 and 200 months, respectively, for the drug charge in addition to another 60 months for possessing a firearm which must be served consecutively. Their total 220 and 260-month-terms of imprisonment will also be immediately followed by three years of supervised release.
Callis was ordered to serve five years of supervised release while the remaining defendants will serve three-year-terms following their respective sentences.
The final defendant - Benjamin Llamas - will be sentenced next month.
At the sentencing hearings, the court heard from an expert witness from the Drug Enforcement Administration (DEA) who provided testimony about how the DEA handles newly emerging synthetic narcotics, their adverse effects and the imminent hazard they present to the public safety. A special agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) also testified as to the impact synthetic cannabinoids have on the local community.
In handing down the sentences, the court acknowledged the significant danger of synthetic cannabinoids as well as the large scale of the operation, specifically the steps taken to import the chemicals and produce such a large quantity of product that was distributed within the community.
In January 2018, officials intercepted an international package from China sent to Corpus Christi that contained a kilogram of the synthetic cannabinoid 5F-MDMB-PINACA, a Schedule I controlled substance.
The investigation determined James Townzen was ordering illegal chemicals from overseas and using them to manufacture synthetic marijuana, or Kush, inside a room at Callis’ business Done Right AC. The finished product was then provided to Michael Llamas and others who would advertise and sell the illegal substance through online social media platforms, such as Facebook.
Further, authorities discovered that after James Townzen was taken into custody for unrelated state violations, he continued to run and direct the operation. While in custody, he provided detailed instructions to Martinez who continued to order the chemicals, manufacture the products inside Done Right AC and distribute them through Llamas. Other members of the conspiracy were responsible for picking up the international packages or purchasing the material and equipment needed to complete the process.
Law enforcement officials estimate the organization produced and sold more than 300 pounds of the illegal substance.
Synthetic cannabinoids are chemical compounds that mimic the psychoactive ingredient in marijuana. These chemical compounds can be applied to carrier mediums such as plant material and ingested using rolling papers, pipes, vaporizers or otherwise taken orally. Synthetic cannabinoids are usually sold in small, foil or plastic bags containing dried leaves (resembling potpourri) and is marketed as incense that can be smoked. It is commonly sold and known on the street as synthetic marijuana, fake weed, legal and by its popular brand names such as Spice, K2, Kush, Klimaxx and many others.
All defendants have been and will remain in custody.
HSI led the year-long investigation known as Operation Done Wrong with the assistance of DEA. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Sallisaw Man Pleads Guilty to Conspiracy, Possession of Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Christopher Don Jackson, age 44, of Sallisaw, Oklahoma, entered a guilty plea to Conspiracy, in violation of Title 18, United States Code, Section 474, punishable by not more than 5 years imprisonment, a fine up to $250,000.00 or both; and to Possession of Counterfeit Obligation of the United States, in violation of Title 18, United States Code, Sections 474(a) and 2, punishable by not more than 25 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that beginning in or about July 2018, and continuing until on or about the 7th day of January, 2019, in the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally conspire, confederate and agree with others, others both known and unknown to the grand jury, to commit offenses against the United States in violation of Title 18, United States Code, Section 474, namely, Possession of Counterfeit Obligations of the United States.
The Indictment further alleged that on or about October 9, 2018, in the Eastern District of Oklahoma, the Defendant, did knowingly have in his possession and custody, with intent to sell or otherwise use, a falsely made and counterfeited one (1) fifty-dollar Federal Reserve Note, made after the similitude of obligations issued under the authority of the United States, in violation of Title 18, United States Code, Sections 474(a) and 2.
The charges arose from an investigation by the Sallisaw Police Department and the United States Secret Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Ringleader of Crew that Committed 13 Robberies of Verizon Stores in Two States Sentenced to More Than 22 Years in Federal PrisonRead the Press Release
SANTA ANA, California – A Long Beach man was sentenced today to 272 months in federal prison for leading a crew that committed 13 robberies of Verizon stores across Southern California and Arizona, netting approximately $340,000 worth of smartphones and other merchandise.
Zachary David Wade, 42, was sentenced by United States District Judge David O. Carter, who ordered him to pay $360,236 in restitution. Wade pleaded guilty in March 2019 to conspiracy to interfering with commerce by robbery, attempted interference with commerce by robbery, and brandishing a firearm in furtherance of a crime of violence.
Between July 2017 and February 2018, Wade planned, organized and supervised the armed robberies of Verizon stores in Tarzana, Torrance, Fullerton, Long Beach, Corona, San Pedro, Corona del Mar, and the Arizona cities of Tucson and Glendale.
Wade selected which Verizon stores would be robbed and instructed his co-conspirators on how the robberies should occur, including identifying entrance and exit routes. He also provided equipment such as duffle bags and loaded firearms, which his co-defendants used during the robberies.
Wade also exclusively determined how much each robbery participant would get paid. The typical robbery netted tens of thousands of dollars’ worth of smartphones and other merchandise, which Wade later sold to a buyer in Glendale, California.
On January 31, 2018, Wade planned and organized the robbery of a Verizon retailer in Tucson, Arizona. He was arrested the next day in Glendale, California while attempting to sell the stolen smartphones and other merchandise for cash.
Eight of Wade’s co-defendants have pleaded guilty to felony conspiracy, robbery, and firearms charges. They are: Daniel Joseph Smith, 31, of Long Beach; Sean Keith Rivers, Jr., 26, of Long Beach; Marques Alphonse Petty-Wright, 32, of Long Beach; Randall Lee Tate, Jr., 31, of Long Beach; Andre Dierre Stovall II, 25, of Long Beach; Drae Tamar Wright, 28, of Long Beach; Sylvester Edwards, Jr., 30, of Lancaster; and Jeffrey Kevin Duran, 51, of Bellflower.
Tate was sentenced in September 2018 to 51 months in federal prison. In September 2019, Petty-Wright was given a two-year federal prison sentence. The other defendants are expected to be sentenced in the coming weeks.
Francisco Javier Neri, 32, of Van Nuys, a former employee of an authorized Verizon retailer in Tarzana, pleaded guilty to a federal robbery charge in December 2019. Neri admitted in his plea agreement that he conspired with Wade to rob his former employer, Verizon Tarzana. Neri is scheduled to be sentenced on April 6.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was prosecuted by Assistant United States Attorneys Scott D. Tenley and Daniel S. Lim of the Santa Ana Branch Office.
Reno Man Sentenced to Prison for Possession of Nearly 2,200 Images and Videos of Child PornographyRead the Press Release
RENO, Nev. – A Reno resident who used a peer-to-peer file sharing network to download child pornography was sentenced today to three years in prison to be followed by lifetime supervised release, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Randall Linscheid, 31, of Reno, pleaded guilty on October 3, 2019, to one count of possession of child pornography. Chief U.S. District Judge Miranda M. Du presided over the sentencing hearing today. In addition to the term of imprisonment followed by lifetime supervised release, Linscheid must register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
According to court documents, between December 2018 and January 2019, law enforcement discovered that Linscheid had downloaded child pornography via a peer-to-peer file-sharing network. On March 26, 2019, HSI Special Agents and Northern Nevada Cyber Center Investigators executed a search warrant at Linscheid’s residence. Of the electronic devices seized by law enforcement, three contained images and videos of child pornography. All of these devices belonged to Linscheid. During an interview with law enforcement, Linscheid admitted that he had been downloading child pornography images for approximately 16 years and that he would save the images to an external hard drive. A forensic analysis of the three devices that were seized revealed 2,143 images and 39 videos of child pornography.
The case is a product of an investigation by the U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Assistant U.S. Attorney Randy St. Clair prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
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Real Estate Developer Sentenced for Bank FraudRead the Press Release
Orlando, FL – United States District Judge Roy B. Dalton, Jr. has sentenced Marek Harrison (56, Plant City) to 20 months in federal prison for his role in a bank fraud scheme. The court also ordered Harrison to pay $2,753,495.79 in restitution to the victim financial institutions.
Harrison had pleaded guilty on November 27, 2019.
According to court documents, between September 2007 and December 2008,
Harrison created and executed a mortgage fraud scheme involving Saratoga Resort Villas, a condominium conversion of a former hotel located in Kissimmee. Harrison’s scheme to defraud financial institutions involved kickbacks of mortgage proceeds to buyers and co-conspirators, as well as misrepresentations regarding the source of down payment funds for the transactions. None of the incentives and kickbacks were disclosed to the mortgage lenders. Harrison also recruited otherwise unqualified buyers, and he provided down payment money for the buyers.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Chris Poor.
Project Parkersburg Update: Parkersburg Man Pleads to Role in Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pled guilty to a federal drug charge, announced United States Attorney Mike Stuart. Michael Rhodes, 40, of Parkersburg, pled guilty to conspiracy to distribute more than 500 grams of methamphetamine. Rhodes admitted that between February and October 2018, he received multiple pound quantities of methamphetamine at a time from various sources including his co-defendant, Terrance McGuirk. Rhodes further admitted to distributing the methamphetamine by the ounce and half-ounce to street level dealers in Parkersburg including his co-defendants, Nicholas Easton, Theodore “T.J.” Gibson, Michael Holley, Marshall Polan and Amy Rake.
“The results of the Project Parkersburg takedown were both historical and remarkable,” said United States Attorney Mike Stuart. “The long-term, collaborative investigation led to the seizure of an historical quantity of meth and was remarkably successful in shuttering a significant, multi-state drug trafficking organization.”
Rhodes is being prosecuted as part of Project Parkersburg – a major takedown and dismantling of a multi-state drug trafficking organization (DTO) responsible for distributing methamphetamine and heroin. Stuart commended the investigative efforts of the FBI, the Parkersburg Police Department, the Dayton Ohio Police Department, and the Parkersburg Narcotics and Violent Crime Task Force. The long-term, joint investigation resulted in at least 29 individuals being charged in federal and state court, the seizure of 121 pounds of ICE methamphetamine, six kilograms of cocaine, 217 grams of heroin, and 290 grams of fentanyl.
Trial for five other Project Parkersburg defendants, Aurelius Edmonds, Antoin Terry, Terrence McGuirk, Roderick Payne, and Amanda Atkinson is scheduled to begin on February 24, 2020 before United States District Judge Irene C. Berger. Assistant United States Attorneys Joshua Hanks and Jeremy Wolfe are handling the prosecution.
Rhodes faces a mandatory ten years in federal prison when he is sentenced on June 3, 2020.
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Port Townsend, Washington, man pleads guilty to molesting young child while on Canadian vacationRead the Press Release
Tacoma, WA – A 62-year-old Port Townsend, Washington, man pleaded guilty today in U.S. District Court in Tacoma to a federal felony for molesting a 6-year-old child while on a vacation in Canada. JOHN TIMOTHY WHICHER faces a maximum prison term of 30 years in prison when sentenced by U.S. District Judge Benjamin H. Settle on May 18, 2020. As part of the agreement, the parties have agreed to recommend a sentence of 8-12 years in prison.
According to records filed in the case and the plea agreement, in August 2017, WHICHER took the 6-year-old child to Canada to stay at a family cabin in Ontario. When the child returned from the trip, the child disclosed to a parent the sexual molestation, saying WHICHER said to keep it a secret. The parent confronted WHICHER and reported the conduct to the Port Townsend Police.
According to the plea agreement, WHICHER will be required to register as a sex offender following his release from prison. He is also responsible for an undetermined amount of restitution to the victim for the damages the victim suffered.
The case is being investigated by Homeland Security Investigations (HSI). The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Plano, Texas Man Pleads Guilty to Threatening CommunicationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stanley Colin Moldenhauer, age 39, of Plano, Texas, entered a guilty plea to Transmitting a Threatening Communication in Interstate Commerce, in violation of Title 18, United States Code, Section 875(c), punishable by not more than 5 years imprisonment, a fine up to $100,000.00, or both.
The Indictment alleged that on or about May 4, 2019, in the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and willfully transmit in interstate commerce, communications containing a threat to injure a person.
The charges arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.
Pittsburgh Man Will Spend Nearly 8 Years in Prison for Drug Case and Violating His Supervised Release TermsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to 70 months’ imprisonment on his convictions of conspiracy to distribute and possession with intent to distribute cocaine, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Marvin Younger, age 38.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Marvin Younger conspired to distribute over 500 grams of cocaine and on May 21, 2018, possessed with intent to distribute a quantity cocaine.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Senior Judge Schwab also revoked Younger’s terms of supervised release in two prior federal cases and sentenced him to 24 months’ imprisonment in each case (these will run concurrently), with the 24 months’ imprisonment for the supervised release violations to run consecutive to the 70-month sentence imposed.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration jointly with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, for the investigation leading to the successful prosecution of Younger.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
PA Man on Parole Following a Murder Conviction is Sentenced to 6+ Years in Prison for Drug TraffickingRead the Press Release
PITTSBURGH, PA – Stephen Barnes was sentenced to 75 months in federal prison for heroin and crack cocaine trafficking, United States Attorney Scott W. Brady announced today.
Barnes, age 51, previously resided in the Pittsburgh area and in Philadelphia. United States District Judge Nora Barry Fischer imposed the sentence. Judge Fischer also ordered Barnes to serve four years of supervised release upon his release from prison.
From March 2018 to May 2018, while Barnes was on state parole following a prior murder conviction, he distributed large quantities of fentanyl, crack cocaine, and heroin in Western Pennsylvania. Barnes’s drug distribution came to an end in May 2018 when he got caught while driving 296 bricks of heroin to Western Pennsylvania. He intended to distribute the heroin in Western Pennsylvania.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Office of the Pennsylvania Attorney General, and the Pennsylvania State Police conducted the investigation leading to the conviction and sentence in this case.