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18 February 2020
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.
Orlando Man Sentenced to Twenty Years for Distributing Fentanyl That Resulted in Overdose DeathRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Jonathan Bohn (35, Orlando), a/k/a “Jonah,” to 20 years in federal prison for distributing a controlled substance that resulted in death.
A federal jury had found Bohn guilty on December 4, 2019.
According to testimony and evidence presented at trial, on December 15, 2017, Bohn sold a 45-year-old Orlando resident a controlled substance that contained cocaine laced with fentanyl and heroin. After the victim ingested the narcotic, the victim’s daughter found her dead in their residence the next day. The Orange County Medical Examiner’s office subsequently determined that the victim’s cause of death was fentanyl and cocaine intoxication.
“As law enforcement we see firsthand the deadly devastation these drugs bring to our community. This case demonstrates how law enforcement, medical professionals, and our partners at the U.S. Attorney’s Office for the Middle District of Florida are working together to find and prosecute those who knowingly distribute these lethal drugs,” said Sheriff John Mina. “It is our hope that this case sends a clear message to drug dealers throughout Orange County that we are investigating and we will do everything in our power to hold them accountable for their actions.”
“In Orange County and across the state, FDLE and our criminal justice partners continue to fight against proliferators of illegal drugs and the lives they ruin,” said FDLE Orlando Special Agent in Charge Lee Massie. “While no sentence can reclaim a victim’s family’s loss, this case should put drug dealers on notice that they cannot escape the destructive consequences of their crimes.”
This case was investigated by the U.S. Drug Enforcement Administration, the Orange County Sheriff’s Office, and the Florida Department of Law Enforcement. Substantial assistance was provided by the District Nine Office of the Medical Examiner located in Orlando, Florida. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
Ona Man Pleads Guilty in Connection with Fraud SchemeRead the Press Release
Wrote Nearly $500,000 in Checks on Church Account for Personal Benefit
HUNTINGTON, W.Va. – An Ona man pled guilty today to a federal fraud crime, announced United States Attorney Mike Stuart. Robert Dale Adkins, age 75, pled guilty to a mail fraud scheme.
“Adkins defrauded his church of almost half of a million dollars,” said United States Attorney Mike Stuart. “You’re supposed to fill - not empty - the offering plate. Stealing from a place of worship for personal benefit - BAD IDEA.”
From at least 2012 until approximately December of 2018, Adkins was the treasurer for a church near Ona, Cabell County, West Virginia. As treasurer, Adkins had access to the church’s checking account and was authorized to sign checks from that account on behalf of the church.
Between 2012 and December of 2018, Adkins wrote and signed checks on the church’s account for his own benefit. Those checks went to pay personal creditors. Adkins wrote the checks without the church membership’s knowledge or approval, and without the knowledge or approval of any church board member. Adkins would then mail the checks to pay his personal creditors. Adkins wrote approximately $487,488.92 in unauthorized checks on the church’s account for his personal use.
Adkins faces up to 20 years imprisonment and a $250,000 fine when he is sentenced on May 18, 2020. He also will be required to pay restitution in the amount of $487,488.92 to the church, and is subject to forfeiture of an equal amount to the United States.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Greg McVey is handling the prosecution.
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Okmulgee Man Pleads Guilty to Two Counts of Abusive Sexual ContactRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Mandrell Ray Roberts, a/k/a "TUFFY", age 68, of Okmulgee, Oklahoma, entered a guilty plea to two counts of Abusive Sexual Contact In Indian Country, in violation of Title 18, United States Code, Sections 1153, 2244(a)(5), and 2246(3), punishable by not more than life imprisonment, a fine up to $250,000.00, or both for each count.
The Indictment alleged in two separate counts that beginning in or about July 2018, and continuing until on or about July 31, 2019, in the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, knowingly engaged in sexual contact with two people who had not attained the age of 12 years, with an intent to arouse or gratify the sexual desire of any person.
The charges arose from an investigation by the Muscogee Creek Nation Lighthorse 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.
Ohio County woman admits to fentanyl distributionRead the Press Release
WHEELING, WEST VIRGINIA – Paula Blake, of Wheeling, West Virginia, has admitted to drug distribution, U.S. Attorney Bill Powell announced.
Blake, age 43, pled guilty to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances” and one count of “Distribution of Fentanyl within 1000 feet of a Protected Location.” Blake admitted to working with others to distribute cocaine base or “crack,” heroin, and fentanyl from September 2018 to June 2019 in Ohio County and elsewhere. She also admitted to selling fentanyl near Luau Manor in June 2019.
Blake faces up to 20 years incarceration and a fine of up to $1,000,000 for the conspiracy count, and faces at least one and up to 40 years incarceration and a fine of up to $2,000,000 for the distribution count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
New York Man Sentenced to 77 Months on Drug and Gun ChargesRead the Press Release
Bangor, Maine: Rochester, New York man was sentenced today in Bangor for conspiracy to distribute and possess with the intent to distribute cocaine base (“crack”) and heroin and conspiracy to violate federal firearms laws, U.S. Attorney Halsey B. Frank announced.
U.S. District Court Judge Judge John A. Woodcock, Jr sentenced Rashaad McKinney, a/k/a “Dawson,” a/k/a “D,” 28, to 77 months in prison and a three years of supervised release on the drug charge and a concurrent five year term in prison and three years of supervised release on the gun charge.
According to court records, between November 2016 and September 2017, McKinney conspired with others from Rochester and Central Maine to distribute and possess with the intent to distribute crack and heroin. The drugs were acquired in Rochester and sold in Central Maine. In addition, some of the people to whom McKinney sold drugs conspired with him to illegally obtain firearms from Augusta area firearms dealers. McKinney recruited straw-purchasers, gave them instructions on which firearms to purchase, and then paid them in cash or drugs to make the purchases using money that he provided. The firearms were then taken back to Rochester.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Drug Enforcement Administration; and the Maine Drug Enforcement Agency. The case was prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Jersey Man Charged with Robbery and Illegal Possession of Firearm to Appear in New Jersey Federal CourtRead the Press Release
CAMDEN, N.J. – A New Jersey man was arrested today for allegedly robbing a Camden barbershop and for possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Benjamin Daye, 33, is charged by complaint with one count of Hobbs Act robbery and one count of unlawful possession of a firearm by a convicted felon. Daye is scheduled to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
“This case is prime example of the renewed focus on prosecuting gun crimes that was announced by the Department of Justice last fall,” U.S. Attorney Carpenito said. “We are working with our partners at Alcohol, Tobacco, Firearms and Explosives and local law enforcement to investigate gun crimes and bring offenders to justice swiftly. Today’s complaint describes a defendant who not only was prohibited from possessing a gun, but who allegedly was all too quick to use one in furtherance of a violent crime.”
“The arrest today and development of this investigation is a great example of collaboration at its best,” ATF Special Agent in Charge Charlie J. Patterson said. “ATF is proud to partner with the U.S. Attorney’s Office and the Camden County Police Department to stop the City’s most violent offenders, especially those who use firearms to commit senseless acts of crime. ATF will continue to be on the front line alongside our partners to ensure our communities remain safe places to live, work, and play.”
“Eliminating illegal firearms, and the carnage they create, in our community is my number priority,” Camden County Police Chief Joseph Wysocki said. “The violent crime tied to these guns has a destabilizing impact on our neighborhoods and residents. Furthermore, crimes committed with these weapons and the individuals that carry them will have our agency’s undivided attention. I want to thank all of our partners, local, state and federal, for their assistance in this arrest and forthcoming prosecution.”
According to documents filed in this case and statements made in court:
On Nov. 23, 2019, Daye entered a barbershop in Camden armed with a loaded handgun. He grabbed a juvenile customer, pointed the gun at the customer’s head, and demanded cash and belongings from employees and customers. Daye was apprehended shortly thereafter next to a bag containing the handgun and the stolen items. Daye previously was convicted of three crimes, each punishable by imprisonment for a term exceeding one year.
The Hobbs Act charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of being a felon in possession of a firearm carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian
U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge Patterson; the Camden County Police Department, under the direction of Chief Wysocki; and the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer, with the investigation leading to today’s charges. This investigation was a joint efforts of the ATF Camden Field Office and the Camden County Police Department (CCPD) Shooting Response Team (SRT). ATF and CCPD have formulated a partnership composed of special agents, detectives, and intelligence analysts that investigate shooting incidents in real time.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
New Jersey Man Charged with Coercing and Enticing Commercial Sex WorkersRead the Press Release
NEWARK, N.J. – A New Jersey man who allegedly lured commercial sex workers to travel from out of state to engage in prostitution and other sexual acts by use of force, violence and threats in and around Middlesex County, New Jersey, will appear in court today, U.S. Attorney Craig Carpenito announced.
Jose Torres, 42, is charged by complaint with two counts of coercion and enticement. The defendant is scheduled to appear this afternoon before U.S. Magistrate Judge M. Page Kelly in Boston federal court. Torres was arrested on Feb. 14, 2020, in Boston.
According to documents filed in this case and statements made in court:
From May 2015 to October 2019, Torres persuaded, induced and enticed commercial sex workers to travel from various out of state locations, including Canada and New York, in order to engage in prostitution. Torres lured commercial sex workers to New Jersey with promises of large payments. When the commercial sex workers asked for payment, Torres became aggressive, often assaulting and raping them. Torres never paid the sex workers.
The coercion and enticement charges each carries a maximum term of 20 years’ imprisonment and a potential $250,000 fine.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Emma Spiro of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; the Middlesex County, New Jersey, Prosecutor’s Office, under the direction of Acting Prosecutor Christopher L. C. Kuberiet; and the Peabody, Massachusetts, Police Department, under the direction of Chief Thomas Griffin, with the investigation leading to the charges.
The charges and allegation in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Nashua Man Pleads Guilty to Participating in Drug Trafficking Conspiracy in Nashua AreaRead the Press Release
CONCORD – Marvin Morrison, 37, of Nashua, pleaded guilty in federal court to participating in a conspiracy to distribute crack cocaine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Morrison was a member of a drug trafficking organization that distributed crack cocaine and other drugs to various customers in the Nashua area.
Morrison is scheduled to be sentenced on May 13, 2020.
In addition to Morrison, six defendants in this case have pleaded guilty and are awaiting sentencing. Another defendant, Donald Johnson, was sentenced to 42 months in prison. Three other defendants are awaiting trial.
“Drug trafficking destroys lives and damages the quality of life in Nashua and communities throughout New Hampshire,” said U.S. Attorney Murray. “Stopping the distribution of crack cocaine and other illegal drugs requires the close cooperation of law enforcement at all levels. Working together, we can break up the networks that funnel these dangerous substances into our state. I commend the FBI Safe Streets Task Force and Nashua Police Department for their excellent work.”
“Marvin Morrison’s guilty plea, and those of his co-conspirators, should show others pushing drugs for ruthless organizations that they, too, will fall when the FBI and our law enforcement partners dismantle their trafficking trade,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The citizens of Nashua deserve to be safe, healthy, and free of criminals making a living by putting them at risk of addiction and in some cases, death.”
This matter was investigated by the Federal Bureau of Investigation and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorneys Georgiana Konesky and Anna Krasinski.
This case was supported by the Organized Crime 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 involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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NDTX Round-Up February 18Read the Press Release
GUILTY PLEA – ROBERT ELMER KERR
On February 4, Robert Elmer Kerr, 49, pled guilty to receipt of child pornography. A Special Agent was able to locate the received files at an IP address in Irving. When local law enforcement conducted the warranted search, they found Kerr with a powered-on laptop that had recently accessed child pornography. Kerr faces up to 20 years for his crimes. This case was investigated by the Federal Bureau of Investigation and the Irving Police Department and prosecuted by AUSA Camille Sparks.
SENTENCING – OMAR HAMMOOD
On February 10, Omar Hammood, 38, was sentenced to 3 years and 9 months in federal custody and $330,000+ in restitution for the crime of preparing false tax returns. Hammood prepared and presented a false Income Tax Return on behalf of another person. In fact, Hammood made a business of submitting false tax returns and concealed the receipts of this business from the IRS. Additionally, Hammood booked a trip to the Middle East after being indicted and hearing his conditions for pre-trial release, in violation of the Court’s order. This case was investigated by the Internal Revenue Service and prosecuted by AUSA Ryan Raybould.
GUILTY PLEA – OMA MICHEL UNGU
On February 12, Oma Michel Ungu, 61, pled guilty to preparation of false tax returns. Ungu owned and operated an income tax preparation business known as Super Professional Tax Service. He faces up to 5 years in federal custody. The tax return prepared by Ungu on behalf of his coconspirator falsely claimed unreimbursed business expenses for 23,000 miles. Ungu was aware that the mileage claimed was false and fraudulent, nevertheless he willfully included this statement on the return to decrease his coconspirator’s tax liability. This case was investigated by the Internal Revenue Service, Criminal Investigation and prosecuted by AUSA Douglas Allen.
GUILTY PLEA - LONG VO
On February 11, Long Vo, 41, pled guilty to conspiracy to use a facility of interstate commerce in aid of a racketeering enterprise. Vo oversaw the operation of Relax2013, a studio that was maintained to provide commercial sex to men. He posted online advertisements, scheduled appointments, ensured both customers and workers were not law enforcement, and collected $1 million in cash these enterprises. Vo additionally “tested out” these sex workers before hiring. He faces up to 5 years in federal custody for his crimes. This case was investigated by Homeland Security Investigations, Texas Department of Public Safety, and the Office of the Attorney General of Texas and prosecuted by AUSA Ryan Raybould.
SENTENCING – ALEJANDRO PIERDO-BUSTOS
On February 10, Alejandro Pierda-Bustos, 44, was sentenced to 22 years and 4 months in federal custody for possession with the intent to distribute methamphetamine. Piedra-Bustos was found to have distributed and received methamphetamine. He ensured the coconspirators paid for their requested drugs in a timely manner. On one occasion, law enforcement officers stopped his coconspirator shortly after receiving two kilograms of methamphetamine from Piedra-Bustos and found the drugs under the driver’s seat. Law enforcement also intercepted a courier who had crossed the US-Mexico border with the intention of delivering 60+ kilograms of methamphetamine to Piedra-Bustos in Dallas. This case was investigated by Group One of the North Texas Strike Force and prosecuted by AUSA John Kull.
SENTENCING – CESAR NOEL RUBI-ROJAS
On February 10, Cesar Noel Rubi-Rojas, 31, was sentencing to 17 years and 5 months in federal custody for intent to distribute methamphetamine. Intercepted calls revealed that Rubi-Rojas was planning to purchase more drugs from a coconspirator. After completing the drug deal, police officers stopped the Expedition that Rubi-Rojas was driving and seized two kilograms of methamphetamine, two firearms, and $3,700+ in drug proceeds. Rubi-Rojas admitted to frequently acting as a driver in these situations. This case was investigated by Group One of the North Texas Strike Force and prosecuted by AUSA John Kull.
Montgomery County Man Indicted for Traveling to the Philippines to Have Sex with ChildrenRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Craig Alex Levin, 64, of King of Prussia, PA was charged by Indictment with child exploitation offenses related to his travel to the Philippines. The Indictment was filed in December 2019 and unsealed today. The defendant is currently in custody in the Philippines and awaiting deportation back to the United States.
Levin was originally charged through a Criminal Complaint and Warrant in July 2019. The Indictment unsealed today alleges that the defendant used the internet to persuade, induce, entice and coerce a child into sex trafficking (count one), and that he travelled internationally from the United States to the Philippines for the purposes of engaging in illicit sexual conduct with minor children (count two).
“As alleged in the Indictment, the defendant is a dangerous predator who targeted vulnerable children in a foreign country. This is reprehensible,” said U.S. Attorney McSwain. “Indeed, at the time of the defendant’s arrest last year in the Philippines, he was escorting a 15 year-old girl to his hotel room. Holding child sexual offenders accountable, no matter where they prey on children, will continue to be a top priority of my Office and the entire Department of Justice.”
“Craig Levin felt safe in the Philippines. He traveled there repeatedly, stayed for months at a time, and sexually exploited numerous underage girls, as alleged,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “If Mr. Levin thought no one in the U.S. would know or care about the abuse because it took place on the other side of the world, he was badly mistaken. Child sexual exploitation is abhorrent anywhere, and the FBI won’t hesitate to go after these offenders wherever we find them. Protecting vulnerable underage victims and aggressively investigating predators who prey on them continues to be one of the FBI’s highest priorities.”
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.
If convicted, the defendant faces a maximum possible sentence of lifetime imprisonment with a mandatory minimum of ten years, lifetime supervised release, a $500,000 fine, and an additional $10,000 mandatory special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Daniel Velez.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Michigan man sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Gerald Kyler, of Eastpointe, Michigan, was sentenced today to 12 months and one day incarceration for selling heroin, U.S. Attorney Bill Powell announced.
Kyler, also known as “Dave,” age 38, pled guilty to one count of “Aiding and Abetting Distribution of Heroin in Proximity to a Protected Location” in September 2019. Kyler admitted to selling heroin near West Virginia University in July 2018 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. District Judge Thomas S. Kleeh presided.
Michigan Business Owner Pleads Guilty to Tax Evasion and Conspiring to Steal Reports from City Police DepartmentRead the Press Release
A Metamora, Michigan, business owner pleaded guilty today to tax evasion and conspiring to steal from an organization receiving federal funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court documents and statements made in court, Anthony Sereno co-owned and operated several businesses in Michigan, including USA Direct LLC (USA Direct), which advertised on behalf of health care providers and solicited individuals for medical and personal injury legal services. During 2013, Sereno diverted funds from USA Direct’s business account for his personal use, but did not include those funds on his individual tax return. He also did not report on that return more than $280,000 in income he directly received from USA Direct.
In 2013, Sereno directed funds from USA Direct’s business account to an intermediary, who used the funds to purchase Michigan traffic crash reports stolen from the Flint Police Department. From 2014 through 2017, Sereno also conspired with Carol Almeranti and Karen Miller to obtain stolen police reports from the Detroit Police Department. Almeranti and Miller previously pleaded guilty to conspiracy charges, and are awaiting sentencing.
U.S. District Court Judge Stephanie Dawkins Davis scheduled Sereno’s sentencing for Aug. 18, 2020. At sentencing, Sereno faces a maximum of five years in prison for each offense. He also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation and the FBI, who conducted the investigation, and Tax Division Trial Attorneys Mark McDonald and William Guappone of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Two TimesRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to eight months in federal prison.
Jose Luis Francisco-Gonzalez, age 37, a citizen of Mexico illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a November 7, 2019, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Francisco-Gonzalez admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Francisco-Gonzalez was deported in April 2017 following a February 2017 felony conviction in Rock Island County, Illinois for possession of marijuana with intent to deliver. The marijuana conviction arose out of a Rock Island traffic stop where Francisco-Gonzalez bought marijuana in Cedar Rapids to sell in Illinois. On May 31, 2019, Francisco-Gonzalez was deported a second time after illegally reentering the United States in Arizona. On August 27, 2019, Francisco-Gonzalez was arrested by immigration officers after they learned Francisco-Gonzalez had illegally returned to the United States and was living in Cedar Rapids.
Francisco-Gonzalez was sentenced in Cedar Rapids by United States District Judge C.J. Williams. Francisco-Gonzalez was sentenced to eight months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Francisco-Gonzalez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-93.
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Media Advisory – Federal and Local Law Enforcement Officials to Hold Press Conference to Present $154,000 Forfeiture Award to Richland and Kennewick Police Departments as a Result of Seizure of Assets from a Convicted Child Pornography CriminalRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that there will be a press conference at 2:30 p.m. on Tuesday, February 18, 2020, in the lobby of the U.S. District Courthouse & Federal Building in Richland, Washington, to make a significant asset forfeiture presentation.
WHO:
United States Attorney William D. Hyslop
Richland Police Department, Chief of Police John Bruce
Richland Police Department, Captain Jeff Taylor
Richland Police Department, Detective Sergeant Darryl Judge
Kennewick Police Department, Chief of Police Ken Hohenburg
Assistant United States Attorney Alison L. Gregoire
Assistant United States Attorney Brian M. Donovan
United States Federal Bureau of Investigation Resident-Agent-In-Charge Christian L. Parker
WHERE:
Richland U.S. Courthouse & Federal Building
825 Jadwin Avenue, Lobby
Richland, WA 99352
OPEN PRESS
NOTE: All media representatives must present government-issued photo I.D. (i.e., driver’s license) as well as valid media credentials. Media representatives may begin to arrive at 2:00 p.m. Credentialed media are invited to use camera and audio equipment during the press conference.
Inquiries regarding logistics should be directed to Lisa Dinwoodie, Assistant to George J.C. Jacobs, III, Public Information Officer, United States Attorney’s Office for the Eastern District of Washington, at 509-353-2767.
Maxton Woman Sentenced for Gun ChargeRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced CRYSTAL LYNN CLARK, 41, of Maxton, North Carolina to 36 months’ imprisonment, followed by 3 years’ of supervised release.
CLARK was named in an Indictment filed on July 10, 2019, charging her with possession of a firearm by a convicted felon. On November 15, 2019, CLARK pled guilty to that charge.
According to the investigation, on December 8, 2018, CLARK pawned a 9mm rifle at Universal Pawn in Maxton, North Carolina. On December 12, 2018, CLARK returned to the pawnshop and attempted to retrieve the firearm. However, she was unable to retrieve the firearm because of her status as a convicted felon. The National Instant Background Check Service (NICS) denial triggered an Alcohol, Tobacco, Firearms, and Explosives investigation which led to her arrest and prosecution.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
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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.
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) conducted investigation of this case. Assistant United States Attorney Chad Rhoades handled the prosecution of this case for the government.
Massachusetts State Representative Charged with Embezzling Campaign Funds, Bank Fraud and Tax FraudRead the Press Release
BOSTON – Massachusetts State Representative David M. Nangle was arrested today and charged in federal court in Boston with illegally using campaign funds to pay for his personal expenses, defrauding a bank to secure loans to repay debts, and collecting income that he failed to report to the IRS.
Nangle, 59, of Lowell, was indicted on 10 counts of wire fraud, four counts of bank fraud, nine counts of making false statements to a bank and five counts of filing false tax returns. Nangle was arrested this morning and will appear in federal court in Boston this afternoon.
Nangle has been the elected member of the Massachusetts House of Representatives for the 17th Middlesex District since 1999. It is alleged that Nangle, a former House Ethics Committee Chairman, used his campaign committee’s debit card to make personal purchases, including thousands of dollars in gift cards for his personal use, among other things.
It is further alleged that Nangle, who was heavily in debt, gambled extensively at area casinos and online, and then used thousands of dollars in campaign funds to pay for various personal expenses such as dues at a local golf club, rental cars to travel to casinos, flowers for his girlfriend, gas, hotels, and restaurants. According to court documents, Nangle knew that using campaign funds for personal use was prohibited and subject to oversight by an independent state agency, and concealed his theft by filing false reports that disguised the personal nature of the spending.
From at least 2014, Nangle devised a scheme to obtain loans from a bank in order to fund his gambling activities and to repay his personal debts. Nangle allegedly did so by making false statements on loan applications, misstating his income and understating his debt.
According to the indictment, Nangle filed false tax returns for tax years 2014 to 2018 by reporting fictitious business deductions for purported “consulting” work that he did for a Billerica company. Nangle allegedly double dipped on deductible expenses arising from his work as a state legislator, fraudulently claiming thousands of dollars in false deductions for alleged charitable donations, and misleading his tax preparer.
Nangle also allegedly concealed the income he received through goods and services from business owners and other sources. This included $7,000 in kitchen and bathroom work done in Nangle’s home and $7,000 in check payments from a contractor; gambling income from a Connecticut casino; and thousands of dollars that he stole from his campaign account.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charges of bank fraud and making false statements to a bank each provide for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. 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 Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Dustin Chao and Kunal Pasricha of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maryland man admits to heroin and cocaine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gary Antonio Thorton, of Baltimore has admitted to cocaine and heroin distribution, U.S. Attorney Bill Powell announced.
Thorton, age 29, pled guilty to one count of “Conspiracy to Distribute Heroin and Cocaine Base.” Thorton admitted to working with another to distribute heroin and cocaine base from February to May 2015 in Berkeley County.
Thorton faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Maryland Woman Federally Indicted for Stealing from Former EmployerRead the Press Release
WILMINGTON, Del. – A federal grand jury returned an indictment on February 13, 2020, charging a Baltimore, Maryland woman with one count of theft from a Wilmington company receiving federal funds.
According to the indictment, April Pritchett, 37, engaged in a scheme to defraud her former employer, referred to as Company A in the indictment, a property management and development company based in Wilmington, Delaware. Company A receives funding from the U.S. Department of Housing and Urban Development (“HUD”) Project-Based Section 8 Rental Assistance Program, which supports low-income individuals in paying rent for otherwise unaffordable housing units.
According to the indictment, Pritchett worked as a property manager for two of Company A’s properties from 2015 through mid-2019. Pritchett engaged in a scheme to defraud Company A by collecting tenant rent payments in the form of money orders and changing the payee field to reflect her own name. Pritchett then deposited over $95,000 of these money orders, meant for rent, into her personal bank account and used the stolen rent payments to fund international vacations, plastic surgery, and clothing purchases. Pritchett hid her fraud by making false statements to Company A’s management to explain mounting rent delinquencies and making false entries into Company A’s tenant management system.
Pritchett is charged with Theft from a Program Receiving Federal Funds. If convicted, Pritchett faces a maximum penalty of 10 years in prison and a $250,000 fine. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing guidelines and other statutory factors.
David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement and gave the following comment, “The defendant is charged with abusing the trust of her employer and the tenants who entrusted her with their rent payments by diverting those funds for her personal use. My office is committed to prosecuting those who defraud Delaware businesses, particularly when those businesses are themselves partially funded with taxpayer dollars designed to assist low-income citizens in securing housing.”
This case was investigated by the U.S. Department of Housing and Urban Development Office of the Inspector General and is being prosecuted by Assistant U.S. Attorneys Lesley F. Wolf and Ruth E. Mandelbaum.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
Mariah Ferry and Jose Torrez plead guilty to federal charges related to the kidnapping and brutal beating of two victims suspected of stealing drugs and moneyRead the Press Release
ALBUQUERQUE, N.M. – Mariah Ferry, 21, and Jose Torrez, 47, of Albuquerque pleaded guilty in federal court in Albuquerque today on charges relating to the kidnappings and and brutal assaults of two victims suspected of stealing drugs and money from the home of co-defendant, Chase Smothermon, 32, of Albuquerque. Ferry pleaded guilty to kidnapping and conspiracy to kidnap, resulting in the death of J.S. Torrez pled guilty to conspiracy to kidnap, resulting in the death of J.S. On Jan. 24, Smothermon pleaded guilty to kidnapping and conspiracy to kidnap, resulting in the death of J.S.
A grand jury previously returned a second superseding indictment on April 24, 2018, charging these three defendants with kidnapping, kidnapping resulting in death, and conspiracy to kidnap.
According to the defendants’ plea agreements, Smothermon, Ferry, Torrez, and other co-conspirators took part in a scheme to retaliate against two victims who they believed stole marijuana from Smothermon’s home where he resided with Ferry. On Aug. 8, 2017, Torrez alerted Smothermon that one of the victims, J.S. was present at Torrez’s home. Smothermon went to Torrez’s home to retaliate against J.S. and try to get his drugs and money back. Ferry drove Smothermon to Torrez’s home where Smothermon and co-conspirators brutally beat J.S. with a baseball bat and the butt of a gun.
Smothermon and co-conspirators then put J.S. in the trunk of Ferry’s car and bound J.S.’s hands, ankles, and mouth with tape. Ferry drove Smothermon and J.S. to another co-conspirator’s home where J.S. died shortly thereafter. Ferry and Smothermon then mutilated J.S.’s body in a shed.
Later the same day, Smothermon contacted M.T. under a ruse that Smothermon wanted to buy marijuana from M.T. When M.T. arrived at Smothermon’s home, Smothermon, Ferry and others bound, gagged and assaulted M.T. for hours. After several hours, two other co-conspirators escorted a bound and badly beaten M.T. out of Smothermon’s home and drove him to another location where M.T. was held overnight before M.T. was released.
On Aug. 9, 2017, Ferry drove Smothermon and another co-conspirator to a rural area in New Mexico where they buried J.S.’s body in a shallow grave.
Ferry, Torrez, and Smothermon are in custody awaiting sentencing. They face up to life in prison for each offense. However, under the terms of their plea agreements, should the sentencing court accept their plea agreements, Smothermon will receive a sentence between 40 to 60 years, Ferry will receive a sentence between 30 to 40 years, and Torrez will receive a sentence of 14 years.
The DEA and FBI investigated this case with assistance from the Albuquerque Police Department and Second Judicial District Attorney’s Office. The Narcotics section of the U.S. Attorney’s Office is prosecuting the case.
Manhattan U.S. Attorney Announces Guilty Plea of U.S. Taxpayer in Panama Papers InvestigationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York and Brian A. Benczkowski, Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced today that HARALD JOACHIM VON DER GOLTZ, a/k/a “H.J. von der Goltz,” “Johan von der Goltz,” “Jochen von der Goltz,” “Tica,” “Tika,” pled guilty today before U.S. Magistrate Judge Barbara Moses to wire fraud, tax fraud, money laundering, false statements, and other charges. VON DER GOLTZ, a former U.S. resident and taxpayer, is charged along with Ramses Owens, Dirk Brauer, and Richard Gaffey, a/k/a “Dick Gaffey,” in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (“Mossack Fonseca”), a Panamanian-based global law firm, and its related entities.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Harald Joachim von der Goltz went to extraordinary lengths to circumvent U.S. tax laws in order to maintain his wealth and hide it from the IRS. Using the specialized criminal services of global law firm Mossack Fonseca, von der Goltz set up shell companies and off-shore accounts to conceal millions of dollars. Now, after years of concealment from the United States, von der Goltz has admitted guilt in a U.S. court and awaits sentencing that could result in a term in a U.S. prison.”
AAG Brian A. Benczkowski said: “Over nearly two decades, von der Goltz conspired to keep his income hidden from U.S. tax authorities and law enforcement. Today’s guilty plea demonstrates the Department’s steadfast commitment to prosecute taxpayers who use offshore structures to obscure their wealth and evade their tax obligations.”According to the allegations contained in the Indictments[1], other filings in this case, and statements during court proceedings, including VON DER GOLTZ’s guilty plea hearing:
Since at least 2000 through 2017, VON DER GOLTZ conspired with others to conceal his assets and investments, and the income generated by those assets and investments, from the Internal Revenue Service (“IRS”) through fraudulent, deceitful, and dishonest means. During all relevant times, VON DER GOLTZ was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts. Nevertheless, VON DER GOLTZ evaded his tax reporting obligations by setting up a series of shell companies and bank accounts, and hiding his beneficial ownership of the shell companies and bank accounts from the IRS. These shell companies and bank accounts made investments totaling tens of millions of dollars. VON DER GOLTZ was assisted in this scheme through the use of Mossack Fonseca, including Ramses Owens, a Panamanian lawyer who previously worked at Mossack Fonseca, and by Richard Gaffey, a partner at a U.S.-based accounting firm. Specifically, in furtherance of VON DER GOLTZ’s efforts to conceal his assets and income from the IRS, VON DER GOLTZ engaged the services of Mossack Fonseca, including Owens, to create a sham foundation and shell companies formed under the laws of Panama and the British Virgin Islands to conceal from the IRS and others the ownership by VON DER GOLTZ of accounts established at overseas banks, as well as the income generated in those accounts. VON DER GOLTZ, Gaffey, and Owens also falsely claimed that VON DER GOLTZ’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and – unlike VON DER GOLTZ – was not a U.S. taxpayer.
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VON DER GOLTZ, 82, a citizen of Germany and Guatemala who resided in Needham, Massachusetts, and Key Biscayne, Florida, pled guilty to one count of conspiracy to commit tax evasion, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison; four counts of willful failure to file Reports of Foreign Bank and Financial Accounts, FINCEN Reports 114, each of which carries a maximum sentence of five years in prison; and two counts of false statements, each of which carries a maximum sentence of five years in prison.
VON DER GOLTZ is scheduled to appear before Judge Richard M. Berman on February 24, 2020, at 9:30 a.m., at which time it is anticipated Judge Berman will set a sentencing date.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
Gaffey is scheduled to proceed to trial on March 9, 2020, before Judge Berman.
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U.S. Attorney Berman praised the outstanding investigative work of IRS - Criminal Investigation and HSI, and thanked the Justice Department’s Tax Division and the Federal Bureau of Investigation for their significant assistance in the investigation. Mr. Berman also thanked the Criminal Division’s Office of International Affairs, which provided significant assistance in securing the defendant’s extradition from the United Kingdom. He also thanked law enforcement partners in France, the United Kingdom, Panama, and Germany for their assistance in the case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit, working in partnership with the Money Laundering and Asset Recovery Section of the Criminal Division. Assistant United States Attorneys Eun Young Choi and Thane Rehn, along with Trial Attorneys Michael Parker and Parker Tobin of the Money Laundering and Asset Recovery Section, are in charge of the prosecution.
The charges as to Owens, Brauer, and Gaffey are merely accusations, and they are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein constitute only allegations as to Owens, Brauer, and Gaffey, and every fact described should be treated as an allegation.
Manchester Man Sentenced to 12 Months and 1 Day for Trafficking Synthetic CannabinoidsRead the Press Release
CONCORD - Heath Palmer, 39, of Manchester, was sentenced in federal court to 12 months and 1 day of imprisonment for possessing an unlawful synthetic cannabinoid product with intent to distribute, United States Attorney Scott W. Murray announced today.
According to statements made in court, on April 18, 2019, Palmer was observed by police officers conducting hand-to-hand sales from a car. The Manchester Police stopped Palmer and he voluntarily turned over the product he was selling. Palmer claimed that the product did not contain illegal substances. Testing by the New Hampshire State Police Forensic Laboratory confirmed, however, that the product contained an illegal substance, 5F-MDMB-PICA.
On May 7, 2019, Palmer was informed by the Manchester Police that the substance he was selling was in fact illegal under federal law. Three days later, the Manchester Police observed Palmer continuing to make hand-to-hand sales from a car. The police stopped the car and seized the product that Palmer was selling. The product was again tested, and it contained the same illegal substance, 5F-MDMB-PICA.
Palmer previously pleaded guilty on October 10, 2019.
According to the DEA, synthetic cannabinoids, which commonly are referred to by names such as “Spice” or “K2,” are designer drugs that are made in laboratories. The chemicals often are sprayed onto plant substances and then smoked in order to obtain a high. These substances have severe adverse effects and have often led to overdoses. In addition to the dangers associated with the chemical substances themselves, the lack of manufacturing standards may lead to increased health risks.
The DEA issued a regulation on April 16, 2019, that made 5F-MDMB-PICA and several other synthetic cannabinoids Schedule I controlled substances. In its order, the DEA noted that this drug had been associated with over 47 overdoses in Connecticut and at least 244 overdoses in Washington, D.C. Further information is available at https://www.deadiversion.usdoj.gov/fed_regs/rules/2019/fr0416.htm and https://www.dea.gov/sites/default/files/sites/getsmartaboutdrugs.com/files/publications/DoA_2017Ed_Updated_6.16.17.pdf#page=88.
“Synthetic cannabinoids are extremely dangerous substances that can cause great physical harm,” said U.S. Attorney Murray. “Those who refer to these dangerous drugs as synthetic marijuana help to create confusion that can mislead users about the real hazards associated with these substances. Those who distribute synthetic cannabinoids are endangering public health and safety and breaking federal law. As this case shows, we will not hesitate to prosecute and incarcerate those who are profiting from selling these dangerous drugs.”
“There is a misconception that synthetic cannabinoids, known on the street as synthetic marijuana, K2, and Spice, are safe. Synthetic cannabinoids are anything but safe,” said DEA Special Agent in Charge Brian D. Boyle. “They are a toxic cocktail of lethal chemicals with serious health and safety risks. This investigation represents local, state and federal law enforcement’s efforts to combat this public threat.”
“I’m very pleased that we were able to see Palmer prosecuted,” says Manchester Chief Carlo Capano. "His repeated behavior involving the sales of 'Spice' will not be tolerated in the city. The Manchester Police Department has been dealing with 'Spice' for some time now and these cases can be very difficult. I’d like to acknowledge the outstanding job our investigators did in putting this together.”
The case was investigated by the Manchester Police Department and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Seth R. Aframe.
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Lothian, Maryland Man Pleads Guilty to Firearm Possession in Furtherance of Drug Trafficking CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael Wayne Jenkins, age 41, of Lothian, Maryland, entered a guilty plea to Possession Of Firearm In Furtherance Of Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c), punishable by not less than 5 years to run consecutive to any other term of imprisonment imposed, a fine up to $250,000.00, or both.
The Indictment alleged that on or about June 1, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly possess a firearm in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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 Dean Burris represented the United States.
Lexington Man Sentenced to 30 Months for Possession of a Firearm by Convicted Felon and Cocaine PossessionRead the Press Release
LEXINGTON, Ky. - A Lexington man, Tevye Jones, 21, was sentenced in federal court on Tuesday to 30 months in prison, by U.S. District Judge Karen Caldwell, for possessing a firearm as convicted felon and possession of cocaine.
On August 29, 2018, Lexington Police Department was attempting to locate a known gang fugitive. An investigatory stop was conducted of a vehicle with 4 occupants, including Jones. As officers conducted a pat-down search of Jones, they discovered a Glock pistol in his left coat pocket. He also had a plastic bag containing 3.4 grams of cocaine. Jones was on parole for a state conviction for Robbery Second Degree when the offense occurred.
Jones pleaded guilty in November 2019.
Under federal law, Jones must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge for ATF; and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement.
The investigation was directed by the ATF and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Leaders of 59 Brims Gang Among 18 Defendants Charged in Manhattan Federal Court with Racketeering OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), and Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced the unsealing of an Indictment charging 18 members of the 59 Brims gang, including the gang’s leaders, with committing various racketeering, narcotics, and firearms offenses, including murder and attempted murder.
WILLIE EVANS, a/k/a “Mills,” JAMARR SIMMONS, a/k/a “Show Off,” ALBERT SHOULDERS, a/k/a “Bundy,” RANELL SLOAN, a/k/a “Rah,” DARNELL COOPER, a/k/a “Jeez,” JOSE RODRIGUEZ, a/k/a “Meso,” SYLVESTER WINT, a/k/a “Vesta,” YONETTE RESPASS, a/k/a “Yonette Davis,” a/k/a “Star Brim,” MARKELL BOBIAN, a/k/a “Kellz,” TIMOTHY COLEMAN, a/k/a “LA,” TYRONE ERVIN, a/k/a “Shoota,” SEAN GAMBRELL, a/k/a “Kash,” DARON GOODMAN, a/k/a “Handsome,” JAVARIS JENKINS, a/k/a “JayBz,” JERLAINE LITTLE, a/k/a “Noni,” SHAMARE REID, a/k/a “Sha,” MARKQUEL SIMMONS, a/k/a “Shellz,” and TYRIQUE SNOWDEN, a/k/a “Ty,” are members of a racketeering enterprise known as the 59 Brims.
The Indictment charges WILLIE EVANS, the gang’s godfather, or highest-ranking, non-incarcerated member, and JAMARR SIMMONS, the highest-ranking member in the Bronx, with the September 28, 2019, murder of Bradford Mensah, 22, in the vicinity of Crotona Park in the Bronx, New York. JAMARR SIMMONS and DARON GOODMAN were previously charged with the January 11, 2020, murder of Jason Parris, 36, in the vicinity of East 170th Street and Webster Avenue in the Bronx, New York.
In addition to EVANS and JAMARR SIMMONS, the Indictment also charges YONETTE RESPASS, the gang’s godmother, or highest-ranking female member, with participating in the racketeering conspiracy and with ordering a slashing.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the Indictment, the defendants were responsible for brutal acts of violence – murders, attempted murders, a maiming, and robberies – in service of the 59 Brims gang. Thanks to the extraordinary work of our partners at the NYPD and HSI, the defendants, who include the leaders of the gang, now face federal charges for their crimes.”
NYPD Commissioner Dermot Shea said: “Targeting and dismantling gangs and crews, and preventing the violence so often associated with their illegal activities, continues to be one of our highest priorities. By using precision policing we are targeting the small percentage of people responsible for committing much of the violence in New York, and making the safest large city in America even safer. I’d like to thank our law enforcement partners for their efforts in helping us achieve this goal.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “The list of allegations against those arrested today includes murder, attempted murder, narcotics violations, firearms offenses, and robbery. The 59 Brims gang acts with no apparent regard for human life and today’s arrests hopefully put an end to their senseless violence. As law enforcement, we build investigations to identify not only those who carry out monstrous acts, but also to get the leaders in the organization who facilitate the horrific crimes. Today, due to the great investigative activity in this case, HSI and its partners are happy to announce that those allegedly responsible from the street level to the highest-ranking members of the 59 Brims gang are facing justice, ultimately making the community safer.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
On January 11, 2020, DARON GOODMAN and JAMARR SIMMONS shot and killed Jason Parris in the vicinity of 1441 Webster Avenue in the Bronx, and aided and abetted the same. GOODMAN and SIMMONS killed Parris in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On September 28, 2019, WILLIE EVANS and JAMARR SIMMONS shot and killed Bradford Mensah in the vicinity of Crotona Park in the Bronx, and aided and abetted the same. EVANS and SIMMONS killed Mensah in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On September 2, 2019, JAVARIS JENKINS shot at a rival gang member in the Bronx, and aided and abetted the same. JENKINS shot at the rival in part to maintain and increase his position in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On August 28, 2019, TYRIQUE SNOWDEN shot at an individual while attempting to rob the individual of narcotics and narcotics proceeds in the Bronx, and aided and abetted the same.
On August 24, 2019, SYLVESTER WINT and SHAMARE REID shot at rival gang members in the Bronx, and aided and abetted the same. WINT and REID shot at the rivals in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On August 8, 2019, JAMARR SIMMONS, ALBERT SHOULDERS, SYLVESTER WINT, YONETTE RESPASS, and SHAMARE REID maimed and assaulted an individual with a dangerous weapon, and aided and abetted the same, by slashing the individual in the face. SIMMONS, SHOULDERS, WINT, RESPASS, and REID slashed the individual in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On August 1, 2019, JAVARIS JENKINS shot at rival gang members in the Bronx, and aided and abetted the same. JENKINS shot at the rival in part to maintain and increase his position in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On May 21, 2019, JAMARR SIMMONS, TYRONE ERVIN, and SEAN GAMBRELL robbed at gunpoint individuals who were playing a dice game, and shot at the individuals while robbing them, in the vicinity of Davidson Avenue in the Bronx, and aided and abetted the same. SIMMONS, ERVIN, and GAMBRELL robbed and shot at the individuals in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On March 30, 2019, JAMARR SIMMONS and TIMOTHY COLEMAN stabbed a rival gang member in the Bronx, and aided and abetted the same. SIMMONS and COLEMAN stabbed the individual in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On December 6, 2018, JERLAINE LITTLE and others pistol-whipped an individual while robbing the individual at gunpoint in the Bronx, and aided and abetted the same. LITTLE robbed the individual in part to maintain and increase her position in the 59 Brims racketeering enterprise operating in the Southern District of New York.
On November 29, 2018, JAMARR SIMMONS, MARKELL BOBIAN, TYRONE ERVIN, SEAN GAMBRELL, JERLAINE LITTLE, and MARKQUEL SIMMONS pistol-whipped an individual while robbing the individual at gunpoint in the Bronx, and aided and abetted the same. JAMARR SIMMONS, BOBIAN, ERVIN, GAMBRELL, LITTLE, MARKQUEL SIMMONS robbed the individual in part to maintain and increase their positions in the 59 Brims racketeering enterprise operating in the Southern District of New York.
Between January 2019 and September 2019, SYLVESTER WINT made the unauthorized sale of multiple firearms that had been transported in interstate commerce, including at a location in the Bronx.
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EVANS, 28, SHOULDERS, 23, RODRIGUEZ, 26, BOBIAN, 22, ERVIN, 19, GAMBRELL, 22, JENKINS, 22, LITTLE, 28, REID, 18, and MARKQUEL SIMMONS, 23, were arrested today and will be presented before United States Magistrate Judge Barbara Moses. GOODMAN, 22, JAMARR SIMMONS, 33, and SNOWDEN, 20, were already in federal custody. COLEMAN, 32, is in New York City custody and will be transferred to federal custody at a later date. SLOAN, 27, COOPER, 28, and WINT, 21, have not been arrested and remain at large. RESPASS, 28, has not been arrested at this time. This case is assigned to United States District Judge George B. Daniels.
Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD and HSI. Mr. Berman also praised the New York City Department of Correction, Correction Intelligence Bureau, and the Bronx County District Attorney’s Office for their assistance in the investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Michael D. Longyear, Jacob Warren, and Adam S. Hobson 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.
COUNT
DEFENDANT(S)
MAX. TERM OF IMPRISONMENT
Count One: Conspiracy to Commit Racketeering (18 U.S.C. § 1962(d))
All defendants
Life imprisonment as to all defendants except Respass and Coleman, for whom the maximum term of imprisonment is 20 years
Count Two: Murder in Aid of Racketeering
(18 U.S.C. §§ 1959(a)(1) and 2)
Jamarr Simmons
Daron Goodman
Death or a Mandatory Minimum Sentence of Life Imprisonment
Count Three: Use of a Firearm to Commit Murder (18 U.S.C. § 924(j)(1))
Jamarr Simmons
Daron Goodman
Death or Life Imprisonment; Mandatory Minimum Sentence of 5 years
Count Four: Murder in Aid of Racketeering
(18 U.S.C. §§ 1959(a)(1) and 2)
Willie Evans
Jamarr Simmons
Death or a Mandatory Minimum Sentence of Life Imprisonment
Count Five: Use of a Firearm to Commit Murder (18 U.S.C. §§ 924(j)(1) and 2)
Willie Evans
Jamarr Simmons
Death or Life Imprisonment; Mandatory Minimum Sentence of 5 years
Count Six: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Javaris Jenkins
20 years’ imprisonment
Count Seven: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii) and 2)
Javaris Jenkins
Life imprisonment; Mandatory Minimum Sentence of 10 years
Count Eight: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Sylvester Wint
Shamare Reid
20 years’ imprisonment
Count Nine: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii) and 2)
Sylvester Wint
Shamare Reid
Life imprisonment; Mandatory Minimum Sentence of 10 years
Count Ten: Maiming and Assault in Aid of Racketeering (18 U.S.C. §§ 1959(a)(2), (a)(3), and 2)
Jamarr Simmons
Albert Shoulders
Sylvester Wint
Yonette Respass
Shamare Reid
30 years’ imprisonment
Count Eleven: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Javaris Jenkins
20 years’ imprisonment
Count Twelve: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii) and 2)
Javaris Jenkins
Life imprisonment; Mandatory Minimum Sentence of 10 years
Count Thirteen: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Jamarr Simmons
Tyrone Ervin
Sean Gambrell
20 years’ imprisonment
Count Fourteen: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii) and 2)
Jamarr Simmons
Tyrone Ervin
Sean Gambrell
Life imprisonment; Mandatory Minimum Sentence of 10 years
Count Fifteen: Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3), (a)(5), and 2)
Jamarr Simmons
Timothy Coleman
20 years’ imprisonment
Count Sixteen: Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3) and 2)
Jerlaine Little
20 years’ imprisonment
Count Seventeen: Brandishing a Firearm in Furtherance of a Crime of Violence (18 U.S.C. §§ 924(c)(1)(A)(i), (ii) and 2)
Jerlaine Little
Life imprisonment; Mandatory Minimum Sentence of 7 years
Count Eighteen: Assault with a Dangerous Weapon in Aid of Racketeering (18 U.S.C. §§ 1959(a)(3) and 2)
Jamarr Simmons
Markell Bobian
Tyrone Ervin
Sean Gambrell
Jerlaine Little
Markquel Simmons
20 years’ imprisonment
Count Nineteen: Brandishing a Firearm in Furtherance of a Crime of Violence (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), and 2)
Jamarr Simmons
Markell Bobian
Tyrone Ervin
Sean Gambrell
Jerlaine Little
Markquel Simmons
Life imprisonment; Mandatory Minimum Sentence of 7 years
Count Twenty: Conspiracy to Distribute Controlled Substances (21 U.S.C. § 846)
Willie Evans
Jamarr Simmons
Albert Shoulders
Ranell Sloan
Darnell Cooper
Jose Rodriguez
Sylvester Wint
Markell Bobian
Tyrone Ervin
Sean Gambrell
Javaris Jenkins
Jerlaine Little
Shamare Reid
Markquel Simmons
Tyrique Snowden
Life imprisonment; Mandatory Minimum Sentence of 10 years
Count Twenty One: Possession of a Firearm in Furtherance of a Drug Trafficking Crime (18 U.S.C. §§ 924(c)(1)(A)(i) and 2)
Willie Evans
Jamarr Simmons
Albert Shoulders
Ranell Sloan
Darnell Cooper
Jose Rodriguez
Sylvester Wint
Markell Bobian
Tyrone Ervin
Sean Gambrell
Javaris Jenkins
Jerlaine Little
Shamare Reid
Markquel Simmons
Tyrique Snowden
Life Imprisonment; Mandatory Minimum Sentence of 5 years
Count Twenty Two: Firearms Trafficking (18 U.S.C. §§ 922(a)(1)(A) and 2)
Sylvester Wint
5 years’ imprisonment
Count Twenty Three: Attempted Robbery (18 U.S.C. §§ 1951 and 2)
Tyrique Snowden
20 years’ imprisonment
Count Twenty-Four: Possession of a Firearm in Furtherance of a Crime of Violence, which Firearm was Discharged (18 U.S.C. §§ 924(c)(1)(A)(i), (ii), (iii) and 2
Tyrique Snowden
Life Imprisonment; Mandatory Minimum Sentence of 10 years
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Lead Defendant in Drug Trafficking Organization Admits Role in Heroin Distribution Conspiracy; Wife Admits Obstructing JusticeRead the Press Release
TRENTON, N.J. – A Monroe County, Pennsylvania, man today admitted that he conspired to distribute more than one kilogram of heroin as part of a conspiracy responsible for distributing significant quantities of heroin and cocaine in and around the Bayshore area of Monmouth and Middlesex counties, U.S. Attorney Craig Carpenito announced.
Guy Jackson, 47, of Effort, Pennsylvania, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin. Jackson also admitted to conspiring to distribute and possess with intent to distribute a quantity of cocaine.
Also today, Jackson’s wife, Lashawn Mealing, 48, of Manchester, New Jersey, (formerly of Effort, Pennsylvania), pleaded guilty before Judge Martinotti to an information charging her with one count of obstructing and attempting to obstruct justice with respect to the charges against Jackson and others, while Mealing was herself on federal pretrial release in the present case.
In November 2018, Jackson, Mealing, and 13 others were charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. Mealing and Jackson are the 10th and 11th defendants to plead guilty. Defendant Deberal Rogers has been indicted.
According to documents filed in this case and statements made in court:
From May 2017 to November 2018, the defendants and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Jackson regularly obtained large quantities of heroin and cocaine for further distribution from co-defendant Gregory Gillens. The complaint alleged that Mealing also engaged in the conspiracy to distribute these narcotics. Gillens previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on June 2, 2020.
Members of the conspiracy sold the narcotics to other conspirators, distributors, sub-dealers, and end-users. Some of the heroin distributed by the conspiracy contained fentanyl, a dangerous synthetic opioid.
Following the filing of the complaint in November 2018, Mealing obstructed justice and attempted to do so by orchestrating, at Jackson’s request, the break-in of a rental vehicle that had been used as part of the narcotics trafficking conspiracy and the removal of evidence of the narcotics offense from the rental vehicle.
The heroin conspiracy count to which Jackson pleaded guilty carries a statutory mandatory minimum term of imprisonment of 10 years, a maximum potential penalty of life in prison, and a maximum fine of $10 million. If accepted by the court at the time of sentencing, Jackson’s plea agreement would result in Jackson serving a stipulated total sentence between 12 and 17½ years in prison. Sentencing is scheduled for June 23, 2020.
The obstruction of justice while on federal pretrial release count to which Mealing pleaded guilty carries a maximum potential penalty of 30 years in prison, and a maximum fine of $250,000. Sentencing is scheduled for June 23, 2020.
Jackson has been in custody since his arrest on November 28, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff's Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Acting Special Agent in Charge Tara McMahon; the New Jersey State Police, under the direction of Col. Patrick J. Callahan, Superintendent; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief James K. Pigott; the Hazlet Police Department, under the direction of Chief Philip Meehan; and the Aberdeen Police Department, under the direction of Chief John T. Powers, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining four defendants are merely accusations and they are presumed innocent unless and until proven guilty.
Defense counsel: Jackson: Lorraine S. Gauli-Rufo Esq., Verona, New Jersey
Mealing: David E. Schafer Esq., Princeton, New JerseyJustice Department Settles with Staffing Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it reached a settlement with Chancery Staffing Solutions LLC (Chancery Staffing), a legal staffing company headquartered in New York, New York, also known as TransPerfect Staffing Solutions (TransPerfect Staffing). The settlement is intended to resolve the Department’s claims that the staffing company violated the Immigration and Nationality Act (INA) when, at a law firm client’s directive, it screened out work authorized non-U.S. citizens and U.S. citizens with dual citizenship from a document review project without a lawful basis.
“Although there are some circumstances where it is permissible to hire only U.S. citizens, staffing agencies may only implement a client’s request to make citizenship status restrictions in hiring if required by law,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We look forward to working with Chancery Staffing to help ensure its hiring procedures comply with the Immigration and Nationality Act’s protections against citizenship status discrimination.”
In May 2019, the Department filed a lawsuit against Chancery Staffing alleging that from at least April 4, 2017, to at least July 7, 2017, the company (operating under the TransPerfect Staffing name) restricted its recruitment and hiring of attorneys for a document review project to U.S. citizens only, and later, to U.S. citizens without dual citizenship, based on a law firm client’s directive. In a prior investigation of the law firm, the Department found that the firm’s request was based on a misunderstanding of the requirements of the International Traffic in Arms Regulations. Had Chancery Staffing independently assessed the basis for the client’s directive, this instance of citizenship status discrimination may have been avoided.
Pursuant to the settlement agreement, Chancery Staffing will pay a civil penalty of $27,000 and provide back pay to victims who are identified during the term of the settlement agreement. Additionally, Chancery Staffing will train relevant employees about the requirements of the INA’s anti-discrimination provision, and obtain supporting documentation from clients that request a citizenship status restriction when staffing a project to help ensure that any such restriction is lawful.
Under the INA, it is generally unlawful for employers to discriminate in hiring because of citizenship status unless required by a law or government contract. The Department determined that TransPerfect Staffing had no legal basis to discriminate. In light of the settlement, the parties will jointly seek to dismiss the case.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
More information on how employers can avoid unlawful citizenship status discrimination is available here. IER will also be offering a free webinar on March 3, 2020 at 3:30 p.m. Eastern time, on how employers can avoid unlawful discrimination under the INA’s anti-discrimination provision. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Inmate at Red Onion State Prison Sentenced for Mailing Threats to Federal JudgesRead the Press Release
Abingdon, VIRGINIA – Mitchell Norbert Nicholas, 41, an inmate at Red Onion State Prison serving a life sentence for murder, was sentenced last week to an additional 72 months in federal prison for his federal conviction on charges he sent threatening letters to a pair of federal judges. United States Attorney Thomas T. Cullen made the announcement.
Following a two-day jury trial in August 2019, Nicholas was convicted of two counts of mailing threats to injure another person and two counts of threatening to murder a United States Judge with the intent to impede, intimidate, or interfere with their performance of official duties, or with the intent to retaliate against such judge on the performance of their official duties.
According to evidence presented during trial, Nicholas was serving a murder sentence at Red Onion State Prison after being found guilty of first degree murder in the Virgin Islands in 2007. While incarcerated, Nicholas mailed a letter to United States Magistrate Judge Ruth Miller in the Virgin Islands, which stated, in part, “Dear Ruth, You thought that I was a nobody. Now I must manifest my dream of your death. It is more fun when the prey knows it is being hunted. I am going to kill you! Patiently submitted, signed Mitchell N. Nicholas.”
In a second letter, mailed to United States District Court Judge Curtis Gomez of the Virgin Islands, Nicholas stated, in part, “Dear Curtis, You are a disappointment and must not be allowed to live any longer. I am going to kill you! Patiently submitted, signed Mitchell N. Nicholas.”
The investigation of the case was conducted by the United States Marshals Service. Assistant United States Attorneys Lena Busscher and Randy Ramseyer prosecuted the case for the United States.
Individual Arrested for Acting Within the U.S. on Behalf of the Russian Government Without Notifying the Attorney GeneralRead the Press Release
Hector Alejandro Cabrera Fuentes, a Mexican citizen residing in Singapore, was arrested based on a Complaint charging him with acting within the United States on behalf of a foreign government (Russia), without notifying the Attorney General, and conspiracy to do the same.
John C. Demers, Assistant Attorney General for National Security; Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida; George Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Office; and Diane J. Sabatino, Director of Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, made the announcement.
According to court documents, a Russian government official recruited Fuentes in 2019 and directed Fuentes to rent a specific property in Miami-Dade County, Florida. The Russian official told Fuentes not to rent the apartment in Fuentes’s own name and not to tell his family about their meetings. Fuentes traveled to Russia and informed the Russian government official about the arrangements. The official approved and told Fuentes to see him again on his next trip to Russia.
In February 2020, Fuentes traveled to Moscow again and met with the Russian government official. At this meeting, the Russian government official provided Fuentes with a physical description of a U.S. Government source’s vehicle and told Fuentes to locate the car, obtain the source’s vehicle license plate number, and note the physical location of the source’s vehicle. The Russian official instructed Fuentes to meet the Russian official again in April or May 2020, to inform him of the results of the search for the source’s vehicle.
Furthermore, according to court documents, Fuentes traveled to Miami on Feb. 13, 2020, from Mexico City. The next day, on February 14, Fuentes’s rental car drew the attention of a security guard where the U.S. government source resided because it entered its premises by tailgating another vehicle to gain access. When a security guard approached Fuentes’s rental car, Fuentes’s travel companion, who resides and is legally married to Fuentes in Mexico, walked away from Fuentes’s rental car to the U.S. Government source’s vehicle and took a photograph of the source’s vehicle’s license plate. When security questioned Fuentes and his travel companion on the nature of their business in the building, Fuentes provided a name of an individual whom they were purportedly visiting. Security did not recognize the person as living there and told Fuentes to leave the premises.
On the evening of February 16, 2020, Fuentes and his travel companion arrived at Miami International Airport to leave to United States, on their way to Mexico City. U.S. Customs and Border Protection inspected the phone of Fuentes’s travel companion and found a close-up image of the license plate of the U.S. Government source’s vehicle in the “recently deleted folder” of her phone. When asked about the photo, Fuentes admitted tasking his travel companion to take the photo of the vehicle’s license plate. CBP’s review of Fuentes’s phone revealed a WhatsApp message from his travel companion sent to Fuentes with the same photograph of the vehicle license plate. Fuentes admitted to law enforcement officers that he was directed by a Russian government official to conduct this operation. According to court documents, messages on Fuentes’s phone showed that the Russian official initiated and directed the meetings.
A pretrial detention hearing is set for 10:00 a.m. on Friday, February 21, 2020. Fuentes’s arraignment is set for 10:00 a.m. on March 3, 2020. Both hearings will occur in U.S. magistrate court in Miami, Florida.
Assistant Attorney General Demers and U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and CBP.
This case is being prosecuted by Assistant U.S. Attorney Michael Thakur of the Southern District of Florida and Trial Attorneys Thea Kendler and Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section.
A criminal complaint is an accusation and defendant is presumed innocent unless and until he is found guilty beyond a reasonable doubt.
Huntington Man Pleads Guilty to Role in Federal Meth ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty today in federal court for his role in a conspiracy that involved large quantities of methamphetamine which were transported from Akron and sold in West Virginia, announced United States Attorney Mike Stuart. Aaron Thompson, 35, pled guilty to conspiracy to distribute 50 grams or more of methamphetamine.
“Thompson was part of a major drug network that was bringing large amounts of meth into West Virginia from Akron,” said United States Attorney Mike Stuart. “I commend our law enforcement partners for helping us close off this drug pipeline.”
Thompson admitted that between the May and September of 2019, he participated in a conspiracy with multiple individuals to distribute methamphetamine in the Huntington area. During the conspiracy, Thompson repeatedly obtained quantities of methamphetamine which were transported from Akron to Huntington. Thompson relied on multiple individuals from Akron to deliver the methamphetamine to him and Thompson would in turn distribute the methamphetamine to various customers in Huntington. Thompson admitted that he knew some of his customers intended to re-distribute the methamphetamine they were purchasing. Thompson also admitted that he was responsible for distributing up to 500 grams of methamphetamine during the conspiracy.
Thompson faces 5 to 40 years in prison when sentenced on June 1, 2020.
This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ona Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
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Houston man heads to prison for two child porn convictionsRead the Press Release
HOUSTON - A 31-year-old Houston man has been sentenced to prison for receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Jonathan Deshon Alexander pleaded guilty Aug. 12, 2019.
Today, Chief U.S. District Court Judge Lee H. Rosenthal ordered Alexander to serve 84 months in federal prison. In handing down the sentence, the court noted these are agonizing cases which involve real children who have been abused. Judge Rosenthal considered the number of years Alexander had been viewing child pornography, his willingness to get help and what was appropriate in this particular case.
Alexander had admitted to receiving and possessing child pornography for seven years. The court decided to assess Alexander’s punishment for the same amount of years he made these children victims once more. He will also serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender and must pay restitution to the victims.
In March 2017, law enforcement conducted an online session using a publicly available peer-to-peer file sharing network and located an IP address folder contained videos of child pornography. The IP address was associated with Alexander and his residence.
He admitted to downloading child pornography since approximately 2010. Forensic analysis found more than 326 videos of child pornography, including some of children under the age of five, bondage and acts of violence.
Previously released on bond, Alexander was permitted to voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Zahra Jivani Fenelon prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Four Men Plead Guilty to $1 Million Card-Cracking Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Four fraudsters pleaded guilty today to their respective roles in a $1 million bank fraud conspiracy.
According to court documents, Caesar Adigwe, 32, of Charlottesville, and three Maryland men, Chea Yarl, 31, of Hyattsville, Samuel Smith, 31, of Hagerstown, and Thomas Gherense, 32, of Laurel, worked together to defraud numerous financial institutions throughout Maryland, Washington, D.C., and Virginia. From 2013 to 2019, they engaged in numerous card-cracking schemes where they deposited counterfeit checks into bank accounts belonging to third parties and then made cash withdrawals or purchased money orders with debit cards associated with the accounts. During the conspiracy, the defendants produced at least 300 counterfeit checks and opened numerous business accounts using fake IDs. Total losses amounted to at least $1 million.
Yarl pleaded guilty to one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of aggravated identity theft, and faces a mandatory minimum of two years in prison and a maximum penalty of 30 years in prison when sentenced on June 12. Smith, Adigwe, and Gherense pleaded guilty to one count of conspiracy to commit bank fraud and each face a maximum penalty of 30 years in prison. Smith and Gherense are scheduled to be sentenced on June 5. Adigwe is scheduled to be sentenced on June 19. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; Colonel Gary T. Settle, Superintendent of Virginia State Police; and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Liam O'Grady accepted the pleas. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Rachael C. Tucker are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-046, Case No. 1:20-cr-047, Case No. 1:20-cr-048, and Case No. 1:20-cr-049.
Former U.S. Taxpayer Pleads Guilty in Panama Papers InvestigationRead the Press Release
A former U.S. resident and taxpayer who was charged along with three others in connection with a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (Mossack Fonseca), a Panamanian-based global law firm, and its related entities, pleaded guilty today to wire and tax fraud, money laundering, false statements and other charges.
Harald Joachim von der Goltz, aka “H.J von der Goltz,” “Johan von der Goltz,” “Jochen von der Goltz,” “Tica,” and “Tika,” 82, a citizen of Germany and Guatemala who last resided in Needham, Massachusetts, and Key Biscayne, Florida, pleaded guilty to one count of conspiracy to commit tax evasion, one count of wire fraud, one count of money laundering conspiracy, four counts of willful failure to file reports of foreign bank and financial accounts (Financial Crimes Enforcement Network Reports 114) and two counts of false statements.
“Over nearly two decades, von der Goltz conspired to keep his income hidden from U.S. tax authorities and law enforcement,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s guilty plea demonstrates the Department’s steadfast commitment to prosecute taxpayers who use offshore structures to obscure their wealth and evade their tax obligations.”
“Harald Joachim von der Goltz went to extraordinary lengths to circumvent U.S. tax laws in order to maintain his wealth and hide it from the IRS,” said U.S. Attorney Geoffrey S. Berman of the Southern District of New York. “Using the specialized criminal services of global law firm Mossack Fonseca, von der Goltz set up shell companies and off-shore accounts to conceal millions of dollars. Now, after years of concealment from the United States, von der Goltz has admitted guilt in a U.S. court and awaits sentencing that could result in a term in a U.S. prison.”
According to the allegations contained in the indictments, other filings in this case and statements during court proceedings, including von der Goltz’s guilty plea hearing, since at least 2000 through 2017, von der Goltz conspired with others to conceal his assets and investments, and the income generated by those assets and investments, from the IRS through fraudulent, deceitful and dishonest means.
During all relevant times, von der Goltz was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts. Nevertheless, von der Goltz evaded his tax reporting obligations by setting up a series of shell companies and bank accounts, and hiding his beneficial ownership of the shell companies and bank accounts from the IRS. These shell companies and bank accounts made investments totaling tens of millions of dollars. Von der Goltz was assisted in this scheme through the use of Mossack Fonseca, including Ramses Owens, a Panamanian lawyer who previously worked at the Mossack Fonseca law firm, and by Richard Gaffey, a partner at a U.S.-based accounting firm.
In furtherance of von der Goltz’s efforts to conceal his assets and income from the IRS, von der Goltz engaged the services of Mossack Fonseca, including Owens, to create a sham foundation and shell companies formed under the laws of Panama and the British Virgin Islands to conceal from the IRS and others the ownership by von der Goltz of accounts established at overseas banks, as well as the income generated in those accounts. von der Goltz, Gaffey and Owens also falsely claimed that von der Goltz’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and — unlike von der Goltz — was not a U.S. taxpayer.
Von der Goltz is scheduled to appear before U.S. District Judge Richard M. Berman on February 24, 2020.
Gaffey is scheduled to proceed to trial on March 9, 2020, before Judge Berman.
Assistant Attorney General Benczkowski praised the outstanding investigative work of IRS-Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and thanked the Justice Department’s Tax Division and the FBI for their significant assistance in the investigation. The Criminal Division’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from the United Kingdom. Assistant Attorney General Benczkowski also thanked law enforcement partners in France, the United Kingdom, and Germany for their assistance in the case.
The Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), working in partnership with the Southern District of New York’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit are handling this case. MLARS Trial Attorneys Michael Parker and Parker Tobin along with Assistant U.S. Attorneys Eun Young Choi and Thane Rehn are in charge of the prosecution.
As the introductory phrase signifies, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein constitute only allegations as to Owens, Brauer, and Gaffey, and every fact described should be treated as an allegation.
Former Michigan Health Care Consultant Pleads Guilty to Fraud and Tax EvasionRead the Press Release
A former health care consultant pleaded guilty today to mail fraud and tax evasion relating to her scheme to be employed under false pretenses as a highly paid health care consultant, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, Sonja Emery, using several aliases including “Sonja Lee Robinson,” “Sonjalee Emery-Robinson,” and “Sonjalee Emery,” resided in Georgia, New Jersey, New York, and California. From 2011 through 2018, Emery falsely represented her professional status, educational background, and work experience to secure and maintain highly paid consulting positions in the health-care industry. She falsely claimed to have a nursing diploma from a school she never attended. She also falsely claimed to be a Registered Nurse licensed in New York, Georgia, Connecticut, and California and provided employers with licensure numbers that belonged to other people. In fact she never was a Registered Nurse. Emery also falsely told employers she had a Bachelor of Science in Nursing, a Master of Health Administration, a Master in Business Administration, and a Doctor of Philosophy from Emory University and New York University, but Emery never attended those schools or received these degrees.
As a result of these lies, from 2012 through 2018, Emery secured high-level health-care positions. She worked as a Senior Vice President for an Ann Arbor, Michigan healthcare consulting firm earning an annual salary of approximately $285,000; as a consultant for a community health system in Wisconsin earning approximately $267,000; and as a health care consultant for a Massachusetts company that paid her approximately $226,000. From 2015 until her arrest in May of 2018, Emery worked as a senior executive for a county government health services agency in California that paid her a total of approximately $960,000.
During these years, Emery either did not file or late-filed tax returns, despite owing more than $400,000 in taxes. She sought to avoid being detected by providing employers with different names and false social security numbers, by falsely instructing employers that she was “exempt” from taxes, and by supplying an employer with an identification number that did not belong to her.
U.S. District Judge Linda V. Parker scheduled sentencing for June 17, 2020. At sentencing, Emery faces a statutory maximum sentence of 20 years in prison for mail fraud and five years in prison for tax evasion. Emery also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation, and Trial Attorneys Jeff McLellan and Jack Morgan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Cleveland Man Sentenced to More than 7 Years in Prison for 2017 Robbery and Burglary Spree in Western PA and OhioRead the Press Release
PITTSBURGH – A former resident of Cleveland, Ohio, was sentenced on charges of violating federal robbery and firearms laws, United States Attorney Scott W. Brady announced today.
United Stated District Court Judge Arthur J. Schwab sentenced Rayshawn Patterson, 21, to 87 months in prison on charges of Conspiracy to Commit Hobbs Act Robbery, Hobbs Act Robbery, Conspiracy to Steal Firearms from a Licensed Firearm Dealer, Theft from a Licensed Firearms Dealer, Possession of Stolen Firearms, and Interstate Transport of Stolen Firearms. Additionally, Rayshawn Patterson accepted responsibility for a separate robbery that occurred in Cleveland, Ohio. Patterson has been detained since his initial appearance in federal court.
According to information presented to the court, in December of 2017, Rayshawn and other conspirators from the Cleveland, Ohio area conspired to travel to rural areas of Western Pennsylvania to burglarize Federal Firearms Licensees (FFLs) and transport the stolen firearms back to Cleveland, Ohio. On December 22, 2017, Rayshawn traveled to Clarion County, Pennsylvania to attempt to locate and burglarize a gun store. However, he and his co-conspirators were unsuccessful in doing so. Prior to returning to Cleveland, Rayshawn and his co-conspirators observed a gas station with only one employee working late at night. The individuals then devised a plan to rob that gas station. Rayshawn participated in a robbery of the gas station in which the employee was threatened with violence, physically restrained and brought to another area of the store. The conspirators netted only approximately $300 dollars from the robbery before returning to Cleveland.
The next day on December 23, 2017, Rayshawn and co-conspirators returned to Western Pennsylvania and burglarized DSD Sports in Brookville, PA by smashing the front door and windows with a sledgehammer and other tools. Once inside the store, Rayshawn and co-conspirators stole approximately sixteen firearms including fourteen handguns and two assault rifles. The co-conspirators then transported the firearms back to Cleveland, Ohio. On December 29, 2017, Cleveland Police recovered two of the stolen handguns from DSD outside the home of Rayshawn and his co-conspirators. Later on January 10, 2018, agents from the Pittsburgh and Cleveland division of Bureau of Alcohol, Tobacco, Firearms and Explosives executed search warrants in Cleveland, Ohio at residences connected to Rayshawn and his co-conspirators. Agents recovered the suspected sledgehammer and other tools believed to be used in the burglary.
Co-defendant Reginald Patterson was convicted after a jury trial in October of 2019 and is pending sentencing. No sentencing date has been set by the Court.
Assistant United States Attorneys Timothy M. Lanni, Douglas Maloney and Brendan Conway are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Brookville Police Department, the Pennsylvania State Police, the Cleveland Police Department and the Cuyahoga Sheriff’s Department conducted the investigation leading to the guilty plea in this case.
The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Alstom Executives and Marubeni Executive Charged with Bribing Indonesian OfficialsRead the Press Release
Two former executives of the Indonesian subsidiary of the French power and transportation company Alstom S.A. and a former executive of the Japanese trading company Marubeni Corporation have been charged in a superseding indictment unsealed today for their alleged participation in a scheme to pay bribes to foreign government officials in Indonesia.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Assistant Director in Charge Paul D. Delacout of the FBI’s Los Angeles Office made the announcement.
Reza Moenaf, 63, the former president of Alstom’s subsidiary in Indonesia; Eko Sulianto, 63, the former director of sales of Alstom’s subsidiary in Indonesia; and Junji Kusunoki, 57, the former deputy general manager of Marubeni’s Overseas Power Project Department, were each charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and conspiracy to commit money laundering. Kusunoki was charged with six counts of violating the FCPA and four counts of money laundering, and Sulianto and Moenaf were each charged with two counts of violating the FCPA and one count of money laundering.
According to the indictment, the defendants, together with others, paid bribes to officials in Indonesia – including, among others, a high-ranking member of the Indonesian Parliament and the president of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia – in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for Alstom’s subsidiaries in Connecticut and Indonesia and for Marubeni to provide power-related services for the citizens of Indonesia. To conceal the bribes, the defendants allegedly retained two so-called “consultants” purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project. The indictment, however, alleges that the primary purpose for hiring the consultants was to use the consultants to pay bribes to Indonesian officials.
The first consultant retained by the defendants allegedly received hundreds of thousands of dollars in his Maryland bank account to be used to bribe the member of Parliament. The consultant then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official. According to court documents, emails between the defendants and their co-conspirators discussed in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project.
The superseding indictment alleges that in the fall of 2003, the defendants and their co-conspirators determined that the first consultant was not effectively bribing key officials at PLN. One email between Moenaf, Sulianto and their co-conspirators described PLN officials’ “concern that if we have won the job, whether their rewards will still be satisfactory or this agent only give them pocket money and disappear.” In another email, Moenaf asserted that the consultant “has no grip on the PLN Tender team at all” and “is more or less similar to [a] cashier which I feel we pay too much.” As a result, the co-conspirators allegedly retained a second consultant to more effectively bribe PLN officials. The defendants and their co-conspirators were successful in securing the Tarahan project and subsequently made payments to the consultants for the alleged purpose of bribing the Indonesian officials, the indictment alleges.
An indictment is merely an accusation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The charges against Moenaf, Sulianto, and Kusunoki are part of a wide-ranging investigation into alleged corrupt practices by employees of Alstom and Marubeni. Five other individuals, as well as Alstom and Marubeni, have pleaded guilty in the case so far, and Lawrence Hoskins, a former senior vice president at Alstom, was found guilty on Nov. 6, 2019, following a jury trial, of 11 counts of conspiracy, violating the FCPA, and money laundering.
The FBI’s Los Angeles Field Office is investigating the case with assistance from the FBI’s Meriden, Connecticut, Resident Agency. The Criminal Division’s Office of International Affairs assisted in the investigation. Senior Deputy Chief Daniel S. Kahn and Assistant Chief Lorinda Laryea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut are prosecuting the case.
The department appreciates the significant cooperation provided by its law enforcement colleagues in Indonesia, Switzerland's Office of the Attorney General, as well as authorities in the United Kingdom, France, Germany, Italy, Singapore and Taiwan.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Alstom Executives and Marubeni Executive Charged with Bribing Indonesian OfficialsRead the Press Release
WASHINGTON – Two former executives of the Indonesian subsidiary of the French power and transportation company Alstom S.A. and a former executive of the Japanese trading company Marubeni Corporation have been charged in a superseding indictment unsealed today for their alleged participation in a scheme to pay bribes to foreign government officials in Indonesia.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Assistant Director in Charge Paul D. Delacout of the FBI’s Los Angeles Office made the announcement.
Reza Moenaf, 63, the former president of Alstom’s subsidiary in Indonesia; Eko Sulianto, 63, the former director of sales of Alstom’s subsidiary in Indonesia; and Junji Kusunoki, 57, the former deputy general manager of Marubeni’s Overseas Power Project Department, were each charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and conspiracy to commit money laundering. Kusunoki was charged with six counts of violating the FCPA and four counts of money laundering, and Sulianto and Moenaf were each charged with two counts of violating the FCPA and one count of money laundering.
According to the indictment, the defendants, together with others, paid bribes to officials in Indonesia – including, among others, a high-ranking member of the Indonesian Parliament and the president of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia – in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for Alstom’s subsidiaries in Connecticut and Indonesia and for Marubeni to provide power-related services for the citizens of Indonesia. To conceal the bribes, the defendants allegedly retained two so-called “consultants” purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project. The indictment, however, alleges that the primary purpose for hiring the consultants was to use the consultants to pay bribes to Indonesian officials.
The first consultant retained by the defendants allegedly received hundreds of thousands of dollars in his Maryland bank account to be used to bribe the member of Parliament. The consultant then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official. According to court documents, emails between the defendants and their co-conspirators discussed in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project.
The superseding indictment alleges that in the fall of 2003, the defendants and their co-conspirators determined that the first consultant was not effectively bribing key officials at PLN. One email between Moenaf, Sulianto and their co-conspirators described PLN officials’ “concern that if we have won the job, whether their rewards will still be satisfactory or this agent only give them pocket money and disappear.” In another email, Moenaf asserted that the consultant “has no grip on the PLN Tender team at all” and “is more or less similar to [a] cashier which I feel we pay too much.” As a result, the co-conspirators allegedly retained a second consultant to more effectively bribe PLN officials. The defendants and their co-conspirators were successful in securing the Tarahan project and subsequently made payments to the consultants for the alleged purpose of bribing the Indonesian officials, the indictment alleges.
An indictment is merely an accusation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The charges against Moenaf, Sulianto, and Kusunoki are part of a wide-ranging investigation into alleged corrupt practices by employees of Alstom and Marubeni. Five other individuals, as well as Alstom and Marubeni, have pleaded guilty in the case so far, and Lawrence Hoskins, a former senior vice president at Alstom, was found guilty on Nov. 6, 2019, following a jury trial, of 11 counts of conspiracy, violating the FCPA, and money laundering.
The FBI’s Los Angeles Field Office is investigating the case with assistance from the FBI’s Meriden, Connecticut, Resident Agency. The Criminal Division’s Office of International Affairs assisted in the investigation. Senior Deputy Chief Daniel S. Kahn and Assistant Chief Lorinda Laryea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut are prosecuting the case.
The department appreciates the significant cooperation provided by its law enforcement colleagues in Indonesia, Switzerland's Office of the Attorney General, as well as authorities in the United Kingdom, France, Germany, Italy, Singapore and Taiwan.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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.
Felon Sentenced in Robbery that Took Place During a Law Enforcement Gun BuyRead the Press Release
United States Attorney Joe Kelly announced that Dajuan Sharron, 43, of Omaha, was sentenced today by United States District Judge Robert F. Rossiter, Jr. to 96 months’ imprisonment for Robbery of Personal Property of the United States. He will also be required to pay $1,500 in restitution to the Bureau of Alcohol, Tobacco, Firearms and Explosives and will serve 3 years of supervised release following his release from prison. There is no parole in the federal system.
The Bureau of Alcohol, Tobacco, Firearms and Explosives was using a Confidential Informant (CI) to make controlled purchases of firearms and narcotics as part of a larger operation specifically targeting members of the Trip Set and African Pride gangs. On August 7, 2018, during one of these buys, Sharron entered the CI’s vehicle and robbed the CI by concealing his hand in a bag and mimicking having a firearm. Sharron threatened to shoot the CI if he didn’t give him the money he had with him, $1,500 in ATF buy money. In addition to $1,500, Sharron took the cell phones of two suspected drug dealers who were also in the vehicle before fleeing the area on foot. The event took place in a law enforcement vehicle that was equipped with an audio and video recording system, which captured the robbery and threats made by Sharron. He was later arrested along with the other two individuals in the car on that day.
On August 28, 2019, a jury found Sharron guilty of the offense. He has prior convictions for Felon in Possession of a Firearm, 2nd Degree Assault, Felon in Possession of a Deadly Weapon, and Domestic Assault.
This case was part of a Project Safe Neighborhood initiative and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Omaha Police Department.
Federal Inmate Sentenced for Beaumont Prison EscapeRead the Press Release
BEAUMONT, Texas – A federal inmate has been sentenced for escaping from a Bureau of Prisons facility in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Victor Luis Pescador, 57, of Laredo, pleaded guilty on Nov. 21, 2019, to escape and was sentenced to 24 months in federal prison today by U.S. District Judge Marcia Crone. This sentence will be added to the remainder of the federal sentence Pescador was serving as a result of his 2007 conviction on federal drug trafficking charges at the time of his escape from federal custody earlier this year.
According to information presented in court, on July 12, 2019, Pescador and another inmate were discovered missing from the Bureau of Prison Camp Facility in west Jefferson County. Pescador was subsequently arrested near Roma, Texas on Aug. 29, 2019.
“This is one of several inmates who have walked away in recent months from the prison camp, which is a minimum security facility for low risk inmates, usually serving the final portion of their sentences,” said United States Attorney Joseph D. Brown. “Regardless of the circumstances, they escaped from a prison facility and anyone who does so will be prosecuted, along with anyone on the outside who helps the escape.”
Pescador was sentenced to 20 years in federal prison in 2007 for possession with intent to distribute over 1000 pounds of marijuana in the Southern District of Texas.
This case was investigated by the Federal Bureau of Prisons and the United States Marshals Service and prosecuted by Assistant U.S. Attorney Joe Batte.
Federal Court in Hammond, Indiana, Enters Permanent Injunction Barring Tax Preparer from Preparing Federal Tax Returns for OthersRead the Press Release
The U.S. District Court for the Northern District of Indiana has issued an order permanently barring Daniel Bewley, a former Hobart and Lake Station, Indiana, tax preparer, from preparing federal tax returns for others, the Justice Department announced today. Bewley consented to the civil injunction order.
According to the complaint, Bewley operated a business that provided tax return preparation services under the names Bewley’s Tax Service and Forward Motion Tax Service. The complaint alleges that Bewley prepared returns that falsely understated the tax due by including false Schedules C that understated the amount of the customer’s income and false Schedules A that contained inflated deductions. The complaint further alleges that Bewley prepared approximately 1,602 tax returns for tax years 2011 through 2014, and that an IRS examination of 208 of those returns determined that 75 percent of the returns falsely understated the amount of tax due.
As set out in the complaint, on Aug. 11, 2017, Bewley pleaded guilty to one count of wire fraud and one count of filing a false tax return in connection with his tax preparation activities, for which he was sentenced to 33 months of imprisonment, and was ordered to serve three years of supervised release and to pay approximately $331,000 in restitution to the United States.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2019. Taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Court Bars Florida Tax Return Preparer and His Business from Preparing Tax ReturnsRead the Press Release
On Feb. 14, 2020, a federal court in Ocala, Florida, entered a permanent injunction against Philip Mott Harris II and his business, 24/7 Tax Services LLC, barring them from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department announced today. The court also ordered that Harris and 24/7 Tax Services LLC disgorge $544,874.56, representing the ill-gotten gains that they received for the preparation of tax returns. The order was signed by Judge James S. Moody of the U.S. District Court for the Middle District of Florida.
The government alleged that the defendants prepared tax returns on which the defendants fabricated businesses and related business income and expenses, claimed improper filing status, and reported false household help income. In the report and recommendation, adopted by Judge Moody, the court found that “over the course of several years, Harris and his other tax return preparers have continually filed returns misrepresenting their customers’ income, deductions, and income tax liability–and have continued to do so even after the United States filed its complaint in this action.” The court further concluded “that injunctive relief is appropriate, and that a more limited injunction will not suffice to prevent the substantial harm that Defendants would likely continue to cause if not permanently enjoined.”
“The Tax Division will use all available enforcement tools to shut down return preparers who claim improper or illegal deductions and credits for their customers,” said Principal Deputy Assistant Attorney General Richard Zuckerman.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fayetteville Gang Member Sentenced for Gun ChargeRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced DESMOND EDWARDS, 21, of Fayetteville, North Carolina to 120 months’ imprisonment, followed by 3 years’ of supervised release.
EDWARDS was named in a Criminal Information filed on October 25, 2019, charging him with possession of a stolen firearm and ammunition. On November 15, 2019, EDWARDS pled guilty to that charge.
According to the investigation, on May 1, 2018, the Fayetteville Police Department conducted a traffic stop on a vehicle with a broken windshield suspected of being involved in an earlier reported accident. When the officer approached the driver’s side of the vehicle, he made contact with EDWARDS. The officer could smell the odor of marijuana coming from within the vehicle, and removed the occupants. The officer then deployed his K-9 around the vehicle, and the dog alerted for the presence of contraband. Officers searched the vehicle and recovered a loaded, .25 caliber handgun underneath the driver’s seat and .25 caliber ammunition in the rear pocket of the passenger seat. EDWARDS later admitted to possessing the firearm and ammunition and that he had reason to believe the firearm and ammunition were stolen. EDWARDS is a validated member of the Nine-Trey Bloods street gang.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Fayetteville Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Chad Rhoades handled the prosecution of this case for the government.
Employee at Mortgage Company Sentenced to 46 Months in Prison for Illegally Accessing Computer to Steal $2 MillionRead the Press Release
CAMDEN, N.J. – A Camden woman was sentenced today to 46 months in prison for accessing a protected computer without authorization, stealing money from her employer and then laundering the proceeds of her theft, U.S Attorney Craig Carpenito announced.
Dilcia Mercedes, 38, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging her with one count of unauthorized access of a computer with intent to defraud and one count of money laundering. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From April 2014 to May 2017, Mercedes worked for a mortgage lender as a payment processor and had access to the company’s computer system. She discovered that some escrow checks were returned to the company as undeliverable. Mercedes admitted that she would monitor those funds by checking monthly reports to see if the funds were ever claimed. If the money was not claimed, Mercedes recruited various family members and friends to allow her to use their bank accounts. With that information, Mercedes used her family members’ and friends’ identities to open reloadable debit/credit accounts. She accessed the company’s computer system and made it appear as if the customer requested that the money be sent via wire transfer into the fraudulent accounts. After creating the request, Mercedes then accessed the company’s computer and approved the transfer using a co-worker’s login and password.
Mercedes caused approximately 580 fraudulent wire transfers, totaling more than $2 million, from her company’s bank account to bank accounts and reloadable debit/credit accounts controlled by Mercedes’ relatives, friends or associates. She then used the money to pay personal expenses.
In addition to the prison term, Judge Bumb sentenced Mercedes to three years of supervised release and ordered her to pay $2,087,697 in restitution.
U.S. Attorney Carpenito credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Wyatt Achord, and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Carroll, with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Michael Kahn Esq., Cherry Hill, New Jersey
Eastern District of New York U.S. Attorney’s Office Collects over $1.1 Billion in Criminal and Civil Actions in Fiscal Year 2019Read the Press Release
United States Attorney Richard P. Donoghue announced today that the Eastern District of New York collected over $1.1 billion in criminal and civil actions in fiscal year 2019. Of this amount, $24,687,372 was collected in criminal actions, and $1,093,836,145 was collected in civil actions handled solely by the Eastern District. Additionally, $1,012,187 resulted from cases handled in conjunction with other U.S. Attorney’s Offices and litigating divisions of the Department of Justice, including the forfeiture of $215,491,403 in assets tainted by crime.
“The Eastern District’s recoveries in fiscal year 2019 are notable for having achieved economic justice on behalf of those who were harmed by individuals and corporate entities that put profits ahead of individuals and their well-being,” stated United States Attorney Donoghue. “This Office is committed to vigorously pursuing civil and criminal penalties from wrongdoers.”
FY 2019 Collections Highlights
In October 2018, the Eastern District of New York recovered $480 million in civil penalties from Nomura Holding America Inc. and several of its affiliates to resolve claims that Nomura misled investors in connection with the marketing, sale and issuance of residential mortgage-backed securities between 2006 and 2007.
Also in October 2018, AmerisourceBergen Corporation, one of the nation’s largest wholesale drug companies, and its subsidiaries AmerisourceBergen Specialty Group, AmerisourceBergen Drug Corporation, Oncology Supply Company and Medical Initiatives, Inc. (collectively “ABC”), entered into a settlement agreement with the United States in which ABC agreed to pay $625 million to resolve civil liability under the False Claims Act. The claims against ABC arose from its repackaging and distributing of pre-filled syringes that were not approved for sale or use by the U.S. Food and Drug Administration. The drugs involved in the scheme were supportive drugs for cancer patients undergoing chemotherapy treatment.
Collections Overview
The U.S. Attorneys’ Offices, along with the Department of Justice litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victims, criminal fines and felony assessments are paid to the Department of Justice Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund, and are used to restore funds to crime victims and for a variety of law enforcement purposes.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Detroit Man Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – A Detroit man pled guilty to federal drug and gun crimes, announced United States Attorney Mike Stuart. Antonio Maurice Davis, 28, pled guilty to possession with intent to distribute a mixture of heroin and fentanyl and to possession of a firearm in furtherance of drug trafficking.
“Just plain deadly – heroin, fentanyl and guns,” said United States Attorney Mike Stuart. “We are steadfast in our commitment to hold violent, out-of-state drug dealers accountable for the chaos and despair they have caused in our communities.”
On May 15, 2019, officers with the Huntington Police Department were conducting surveillance in the south side area of Huntington when they saw Davis wearing a bright blue jacket and black pants. Davis came out of an apartment building carrying several bags and placed the bags in the backseat area of a minivan, behind the driver, and then got into the front passenger seat of the minivan. The minivan backed out of the driveway and travelled east on 12th Avenue to 12th Street. Huntington Police Officers conducted a traffic stop of the vehicle in the 1400 block of Charleston Avenue after learning the driver had a suspended license. Immediately following the stop, officers approached the minivan. The officers smelled an odor of marijuana coming from the minivan. Both the driver and Davis were removed from the vehicle. Davis initially identified himself as Jonathon Maurice Mason. Officers later learned that his real name was Antonio Maurice Davis. A K9 unit that was called to the scene positively indicated on the vehicle for the presence of drugs.
Officers then searched the minivan. During the search, they located a High-Point 9mm rifle on the back floorboard behind the drivers’ seat. The jacket that Davis was seen wearing was located in between the driver’s seat and the front passenger seat. Inside the jacket officers found a large amount of a white powdery substance in a plastic baggy. They also found a second plastic baggy that contained a white chunky substance. Other suspected narcotics were also located in the jacket. Officers also located a gym bag behind the drivers’ seat of the vehicle. Inside the gym bag, officers located 3 handguns, digital scales, multiple cellular telephones, ammunition and other evidentiary items of value. The powdery substance was analyzed and found to be approximately 38 grams of a mixture of heroin and fentanyl.
Davis faces up to 20 years imprisonment and a $1,000,000 fine on the drug charge and mandatory 5 years to life on the gun charge, which must run consecutively to the drug charge. Davis is scheduled to be sentenced on June 1, 2020.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Greg McVey is handling the prosecution.
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Defendant who conspired to steal aircraft secrets sentenced to 70 months in federal prisonRead the Press Release
SAVANNAH, GA: A North Carolina man who took part in a conspiracy to steal design information from aircraft companies to speed up approval of competing airplane technology has been sentenced to nearly six years in federal prison.
Craig German, 59, of Kernersville, N.C., was sentenced to 70 months in federal prison by Senior U.S. District Court Judge William T. Moore Jr., said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. German, who pled guilty to Conspiracy to Steal Trade Secrets in September 2019, also was ordered to pay a fine of $2,000 and serve three years of supervised release after completion of his prison sentence. There is no parole in the federal system.
“Theft is theft, pure and simple. Any company’s intellectual property has value – not only in dollars, but in the amount of time and effort put into its creation,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “By stealing the trade secrets of his employer, German attempted a shortcut to his own enrichment and instead will take a long ride to prison.”
According to court documents and testimony, German agreed with his co-conspirators to steal trade secrets from aircraft companies in order to assist a competitor company in developing their own anti-ice aircraft technology. Without authorization, German copied anti-ice trade secret documents from the aircraft company for which he worked, and then emailed those documents to his co-conspirators.
“German chose to steal the secrets of a U.S. company rather than do the hard work necessary to succeed in the free market, and now he is paying the price,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are pleased by this sentence, and the FBI will continue to aggressively protect America’s economic security and intellectual property from foreign adversaries.”
The case was investigated by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee.
Davenport Man sentenced to Prison for Tax CrimesRead the Press Release
DAVENPORT, Iowa – On February 13, 2020, Jonathan Folker, age 39, of Davenport, was sentenced by United States District Court Chief Judge John A. Jarvey to 15 months in prison on each of two counts of Tax Evasion and Making and Subscribing a False Tax Return, those terms to run concurrent. Folker was ordered to serve three years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund. Folker was also ordered to pay restitution in the amount of $256,783, with interest.
On June 5, 2019, the United States Attorney’s Office filed a two-count Information charging Folker with Tax Evasion and Making and Subscribing a false tax return. A plea agreement was entered on August 20, 2019, and Folker admitted he failed to file income tax returns for several years and had a total tax liability of $256,783. Folker also admitted he made and subscribed a false Form 1040 for the tax year 2012.
This case was investigated by Internal Revenue Service- Criminal Investigations and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.