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Monday 6 January 2020
Charleston Drug Trafficker Sentenced to Fifteen Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced to federal prison for a drug crime, announced United States Attorney Mike Stuart. Robert Thomas, also known as “Zombie,” was sentenced to 15 years in prison for possession with intent to distribute methamphetamine. He was also ordered to serve a term of five years on supervised release.
“Thomas had a significant amount of meth and an arsenal of firearms,” said United States Attorney Mike Stuart. “And now he’ll be serving many years – 15 years – in federal prison. I am forever appreciative of the work our law enforcement partners do to remove dangerous drug dealers like Thomas from our streets. As a result of their work, we can sleep more soundly at night.”
“Drug dealers with guns are violent criminals who pose an increased threat to the safety of our communities,” stated ATF Acting Special Agent in Charge Tommy Estevan of the Louisville Field Division. “Our ongoing partnerships with local, state, and federal law enforcement not only are a wise use of resources, but are getting measurable results for the citizens of West Virginia.”
Thomas previously admitted that on January 17, 2017, law enforcement officers executed a search warrant at his residence on Joseph Street in Charleston. Detectives located 989 grams of methamphetamine and the following firearms: Masterpiece Arms, 9mm caliber pistol; Kimber, model micro carry, .380 caliber pistol; Russian, model SKS, 7.62 caliber rifle; and, Springfield Armory, model SOCOM 16, .308 caliber rifle. Thomas admitted to possessing the firearms to protect himself and the drugs. He further admitted to possessing the methamphetamine with the intention of distributing it.
The Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Ryan A. Saunders handled the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
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Champaign Man Sentenced to 13 Years in Prison for Trafficking Millions of Counterfeit Xanax Pills on Darknet, Money LaunderingRead the Press Release
URBANA, Ill. – U.S. District Judge Michael M. Mihm today sentenced a Champaign, Ill., man, Stephan Caamano, to 13 years in federal prison for trafficking at least 4.3 million counterfeit Xanax pills throughout the country and laundering the proceeds. Caamano has been ordered to pay more than $2.1 million he gained in profits through this scheme. Caamano was ordered to serve a term of three years supervised release upon completion of his prison sentence.
On April 29, 2019, Caamano, 24, pleaded guilty to using darknet markets and cryptocurrency to traffic pills containing alprazolam, marked as ‘Xanax,’ from March 2017 through May 2018. Caamano purchased controlled substances from abroad to make the counterfeit pills in his unsanitary garage. The pills were manufactured to make them identical in appearance to prescription Xanax, so that unsuspecting individuals could easily have believed they were, in fact true Xanax. Caamano then shipped the pills nationwide in quantities ranging from 1,000 pills per package up to one million.
“This defendant made millions of dollars while putting thousands of people at risk from counterfeit medication that was manufactured in his garage,” said U.S. Attorney John Milhiser. “In addition, this scheme infringed on the ‘Xanax’ trademark to undercut legal marketing of the drug. Thanks to the diligent work of law enforcement, this dangerous scheme ended and this defendant is behind bars.”
According to court documents, Caamano took significant steps to avoid detection by law enforcement including creation of a limited liability company to hide his purchase of the house he used as a base of operations. In addition, Caamano used the darknet and cryptocurrency and built significant security measures into his home computer.
Caamano has remained in the custody of the U.S. Marshals Service since his arrest in May 2018, when he was charged in a criminal complaint. According to the affidavit filed in support of the criminal complaint, the investigation began when Customs and Border Protection agents contacted DEA agents after seizing items, including pill press machines, machine parts and alprazolam that were destined for delivery to Caamano at various addresses in California and in the Champaign, Ill., area.
The investigation was conducted by the Drug Enforcement Administration, Springfield Resident Office; U.S. Customs and Border Protection, Homeland Security Investigations; the U.S. Postal Inspection Service; Champaign Police Department Street Crimes Unit and the Champaign County Sheriff’s Office. Assistant U.S. Attorney Rachel E. Ritzer prosecuted the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois.
Cass County Resident Sentenced to Prison for Oxycodone and Health Care Fraud OffensesRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on January 3, 2020, Rebecca Canfield, age 46, was sentenced to 30 months in prison by United States District Court Chief Judge John A. Jarvey for conspiracy to distribute oxycodone and health care fraud. Canfield will serve 48 months of supervised release following her release from prison.
In August of 2015, the Drug Enforcement Agency (DEA) received information regarding the illegal distribution of prescription drugs in and around Cass County, Iowa. An investigation revealed Mary Mayo and Rebecca Canfield obtained prescriptions for oxycodone from medical professionals through false representations of injury or illness and related pain management. Canfield used her Medicare/Medicaid benefits to obtain oxycodone from local pharmacies. Once the prescription drugs were obtained, Canfield provided the oxycodone to co-defendant Mary Mayo for resale. During the course of the investigation it was determined Canfield also received Social Security benefits to which she was not entitled. As part of her sentence, Canfield was ordered to pay restitution to Medicare/Medicaid, and the Social Security Administration.
Previously sentenced were: Mary Mayo, sentenced to 24 months imprisonment followed by 48 months of supervised release; Tony Martin May, sentenced to 12 months of imprisonment followed by 36 months of supervised release; Jessica Lynn Gross, sentenced to time served and 60 months of supervised release; and Alex Lee Pleis, sentenced to time served and 36 months of supervised release.
This case was investigated by the DEA; Department of Health and Human Services-Office of the Inspector General; Iowa Department of Inspections and Appeals, Medicaid Fraud Control Unit; Social Security Administration-Office of the Inspector General; Cass County Sheriff’s Office; Iowa Division of Narcotics Enforcement and Southwest Iowa Narcotics Task Force. This matter was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Bristol Man Pleads Guilty to Methamphetamine and Firearms ChargesRead the Press Release
Abingdon, VIRGINIA – United States Attorney Thomas T. Cullen announced today that a Bristol, Virginia man pleaded guilty last week in U.S. District Court in Abingdon to charges related to the distribution of methamphetamine and firearms.
David Benjamin Shaffer, 43, pleaded guilty to one count of possession with the intent to distribute 50 grams or more of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking offense.
According to evidence presented at last week’s guilty plea hearing by Assistant United States Attorney Zachary T. Lee, on September 18, 2019, agents with the Drug Enforcement Administration, Washington County Sheriff’s Office, and the Abingdon Police Department conducted a traffic stop of a vehicle being operated by Shaffer and executed a search warrant. Officers located approximately seventy grams of methamphetamine in the vehicle and a loaded .40 caliber handgun in Shaffer’s waistband. Following his arrest, Shaffer admitted to his involvement in the distribution of methamphetamine when he was interviewed by agents with the Drug Enforcement Administration.
Shaffer will be sentenced on March 24, 2020. He faces a ten-year mandatory minimum term of imprisonment and a potential sentence of up to life in prison and/or $8,250,000 in fines.
The investigation of the case was conducted the Abingdon Police Department, Washington County Sheriff’s Office, and the Drug Enforcement Administration. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Bowie Man Pleads Guilty to Federal Charges for False Use of a PassportRead the Press Release
Greenbelt, Maryland – Arinze Michael Ozor, age 36, of Bowie, Maryland, a dual citizen of the United States and Nigeria, pleaded guilty on January 3, 2020, to federal charges of forgery or false use of a passport, in connection with his use of false passports to open “drop accounts” for a money laundering conspiracy.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Edwin Guard of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service (DSS).
According to his plea agreement, Ozor, a dual citizen of Nigeria and the United States, used at least two fraudulent passports as part of a money laundering conspiracy to open eight “drop accounts” to receive the proceeds from fraud schemes, including business e-mail compromise schemes and romance fraud schemes. The funds deposited to the accounts were largely disseminated to other entities as part of the conspiracy by Ozor and others.
Specifically, Ozor admitted that he used a Ghanaian passport in the name of Kelvin Green to open accounts at five banks between December 2017 and January 2018. Although the passport contained purported identifiers for Green, it contained Ozor’s photograph. When one of the banks froze the account due to suspicion of fraudulent activity, Ozor met with a banker to discuss regaining access to the account and presented the same Ghanaian passport in support of his request.
Ozor further admitted that from March 23, 2018 through May 1, 2018, he used a purported Beninese passport in the name of Jacob Hessou to open accounts at three additional banks. As with the Ghanaian passport, the Beninese passport contained purported identifiers for Hessou, but contained Ozor’s photograph.
The investigation found that Ozor does not have a validly issued passport from Ghana or Benin. In addition, the Kelvin Green Ghanaian passport number and the Jacob Hessou Beninese passport number were actually issued to other individuals by the respective governments and not to Green or Hessou.
More than $976,000 was involved in the money laundering conspiracy from the eight accounts opened by Ozor using the fraudulent passports.
Ozor faces a maximum sentence of 10 years in federal prison. 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. U.S. District Judge George J. Hazel has scheduled sentencing for May 7, 2020 at 10:00 a.m.
United States Attorney Robert K. Hur commended the FBI and the DSS for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.
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Baltimore County Man Sentenced to 23 Years in Federal Prison for Production of Child PornographyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced Kevin Daniel Mongold, Jr., age 22, of Halethorpe, Maryland, to 23 years in federal prison, followed by lifetime supervised release, for production of child pornography. Chief Judge Bredar also ordered that, upon his release from prison, Mongold must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, on October 18, 2018, Dropbox made a report to the National Center for Missing and Exploited Children (NCMEC) that a user, later identified as Mongold, uploaded numerous images of an unknown prepubescent child who was being sexually exploited in the photos. Investigators worked to identify and locate the unknown child. After finding the child, law enforcement executed a search at Mongold’s residence and seized his iPhone and laptop computer. A forensic analysis of Mongold’s electronic devices revealed that Mongold had repeatedly sexually abused the five-year-old child for nearly a year, between September 2017 and September 2018, in order to produce visual depictions documenting the abuse.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and the Baltimore County Police Department for their work in the investigation, and thanked the Baltimore County State’s Attorney’s Office for its assistance. Mr. Hur thanked Assistant U.S. Attorney Christine Duey, who prosecuted the federal case.
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Attempt to Cover up Firearms Offense Leads to Incarceration for Man and Woman from Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that two individuals, Aaron C. Smith (Age: 27), formerly of Keshena, Wisconsin and Keanna R. King (Age: 26), of Keshena, Wisconsin received sentences after convictions related to a firearms offense on the Menominee Indian Reservation:
The sentences, imposed on December 30, 2019, and January 3, 2020, by United States District Judge William C. Griesbach, were the result of guilty pleas entered by the defendants on September 26, 2019. Smith pleaded guilty to Felon in Possession of a Firearm in violation of Title 18, United States Code, Section 922(g) and Tampering with a Witness in violation of Title 18, United States Code, Section 1512(b)(1). King pleaded guilty to Perjury before a Grand Jury in violation of Title 18, United States Code, Section 1623(a). Judge Griesbach sentenced the defendants as follows:
Defendant
Months of Confinement
Months of Supervised Release
Aaron C. Smith
Total of 48 months
36 months
Keanna R. King
8 months
36 months
The investigation revealed that on April 21, 2019, Smith possessed a small-caliber semiautomatic handgun while at a bar on the Menominee Indian Reservation. Officers with the Menominee Tribal Police Department entered the bar in order to arrest Smith, who had a warrant for his arrest through Wisconsin Department of Corrections. Smith passed the handgun to King, who concealed it in her vehicle. Officers later interviewed King, and she admitted she received the handgun from Smith. King then allowed officers to take it from her vehicle.
After his arrest, Smith called King from a jail phone numerous times in an effort to get her to change her story. King provided false testimony before a Federal Grand Jury in Milwaukee on May 29, 2019 when she denied Smith handed her the gun.
In sentencing the defendants, Judge Griesbach noted the seriousness of the crimes the defendants committed. Judge Griesbach also remarked upon the need to deter those would might consider similar actions.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which Assistant United States Attorney Andrew J. Maier prosecuted.
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Public Information Officer Kenneth Gales 414-297-1700
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Armed Drug Trafficker Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Lazaro Aguilar, 20, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci. Jr. to possession with intent to distribute heroin and fentanyl, and possession of a firearm in furtherance of a drug trafficking crime. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, and a fine of $1,000,000, or both.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that Aguilar was arrested on February 16, 2018, after officers from the Rochester Police Department, who were patrolling the area of Murray Street and Lyell Avenue, saw the defendant driving a vehicle with excessively tinted windows in violation the New York State Vehicle and Traffic Law. After officers pulled the vehicle over, they identified Aguilar as the driver but he did not have a valid driver’s license. After ordering the defendant to exit the vehicle, officers searched Aguilar and found 32 small bags containing a mixture of heroin and fentanyl in his pocket. Officers also recovered a loaded pistol from the defendant’s pocket. Aguilar stated that he had the handgun for his protection, and that he had been shot at earlier.
Aguilar was again arrested on September 30, 2019, with 23 additional bags of fentanyl, and over $5,000 in United States currency.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Office.
Sentencing is scheduled for April 10, 2020, at 10:00 a.m. before Judge Geraci.
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Armed Drug Dealer Sentenced to Nearly 22 Years in Federal Prison After Federal Jury TrialRead the Press Release
Florence, South Carolina --- Acting United States Attorney A. Lance Crick announced today that Gregory Bernard Gibson, 44, of Florence, was sentenced to nearly 22 years in federal prison after being convicted of being a felon in possession of a firearm and ammunition and possession with intent to distribute controlled substances following a 2-day jury trial. The case arose from a traffic stop conducted by deputies with the Florence County Sheriff’s Office’s (FCSO) Proactive Community Enforcement (PACE) Team.
Evidence presented at trial showed that on July 27, 2018, the PACE Team was patrolling a high-crime area on the east side of Florence when Gibson’s vehicle pulled out in front of a deputy’s unmarked vehicle, failing to yield the right-of-way. The deputy initiated a traffic stop on Gibson’s car based on the traffic violation. When he approached the car, the deputy immediately smelled the odor of marijuana, and Gibson stated that he had a small, personal-use quantity of the substance in his vehicle.
Based on the odor of marijuana, deputies searched the car. Once inside, they found what amounted to a mobile drug distribution center. There was a loaded, .45 caliber Glock semi-automatic pistol in the center console. Federal law prohibits Gibson from possessing a firearm based on several prior federal and state convictions for drugs and other offenses. Directly behind the center console and in front of a child car seat, deputies found a backpack containing distribution quantities of powder cocaine, crack cocaine, and marijuana; a bottle of a “cutting agent” drug dealers mix with drugs before they are sold to increase the amount the user thinks he is buying; multiple plastic baggies used to package drugs for sale; and a digital scale containing cocaine and marijuana residue.
Hidden inside a void underneath the cup holder area, deputies found a large piece of crack cocaine and 300 tablets of methamphetamine. After assimilating the large quantity of drugs and firearm evidence, the PACE team partnered with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to bring the case to federal court for prosecution.
United States District Judge Mary G. Lewis of Columbia sentenced Gibson to 262 months in federal prison, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
“Across South Carolina, the U.S. Attorney’s Office is partnering with local law enforcement agencies to focus on the career criminals, like Mr. Gibson, who pose the greatest threat to our safety,” said Acting U.S. Attorney Crick. “We are grateful to Sheriff Barnes, the Florence County Sheriff’s Office PACE Team, and ATF for their continued efforts to reduce violent crime in our community.”
“This agency has a long and proud history of cooperation with our state and federal law enforcement partners to protect our communities from the scourge of illegal narcotics,” Sheriff Billy Barnes stated. “We deeply appreciate the splendid efforts of the ATF and the U.S. Attorney’s Office to help us remove dangerous criminals from our streets.”
The PACE team is a specially trained group of deputies that operates under the umbrella of the Special Operations division of the FCSO. PACE team deputies are tasked with patrolling high-crime areas of Florence County and engaging with individuals who present a higher-than-normal risk to the community, such as drug dealers and violent criminals. PACE team members also work alongside federal partners to bring cases to federal court when they involve career criminals or especially significant crimes. Through dedicating resources to specialized groups such as the PACE Team, the FCSO is able to be an effective partner with federal agencies.
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.
Assistant United States Attorneys Lauren Hummel and Everett McMillian of the Florence office prosecuted the case.
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Arizona Man Sentenced to Federal Prison for Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – An Apache Junction, Arizona man was sentenced to federal prison for a drug crime, announced United States Attorney Mike Stuart. Clint Gentile, 39, was sentenced to 90 months in prison for possession with intent to distribute methamphetamine and heroin.
“The work of the West Virginia State Police and other law enforcement agencies that patrol our highways is critical to our drug enforcement efforts,” said United States Attorney Mike Stuart. “These law enforcement officers are often the first to identify and apprehend drug dealers like Gentile and seize the poisons they intend to peddle.”
Gentile previously admitted that he was traveling on I-64 in Cabell County when the vehicle he was in was pulled over by the West Virginia State Police. Troopers searched the vehicle and found 552 grams of methamphetamine and 11 grams of black tar heroin. Gentile admitted that he intended to sell the drugs.
The West Virginia State Police Task Force West conducted the investigation. They were assisted by the Potomac Highlands Drug & Violent Crimes Task Force in the Northern District of West Virginia. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor handled the prosecution.
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Friday 3 January 2020
Worcester Food Market Settles Allegations of Food Safety Law ViolationsRead the Press Release
BOSTON – Makola Market, a retail food store in Worcester, has entered into a consent decree with the government to resolve allegations that it continually violated the Federal Meat Inspection Act (FMIA) by selling and offering for sale non-federally inspected meat products.
Under the consent decree, Makola Market and its owner and manager, Comfort Russell, face significant penalties if violations of the FMIA continue. The consent decree also permanently enjoins Makola Market and Ms. Russell from further violating the FMIA and provides investigators with broad access for inspection of the premises and business records in the future.
“Consumers should be able to trust that the food they buy is produced and sold under safe and sanitary conditions,” said United States Attorney Andrew E. Lelling. “This consent decree establishes procedures to prevent this business and its owner from further jeopardizing the health of consumers.”
“Our inspection personnel are on the job daily, verifying that establishments are providing consumers with safe, wholesome, and properly labeled meat products,” said Carmen Rottenberg, FSIS Administrator. “The consent decree agreed to by Makola Market provides our investigators with broad access to the premises and business records so that we can be confident in the safety of their meat products.”
The government filed its complaint after investigators with the Food Safety and Inspection Service (FSIS) of the U.S. Department of Agriculture (USDA) repeatedly issued written warnings to Makola Market and Ms. Russell to stop purchasing, offering for sale, and selling misbranded meat food products that were not inspected by the USDA. In addition, FSIS investigators cited Makola Market for failing to maintain the required business records of the purchase and sale of these meat food products. During the latest USDA inspection, investigators observed Makola Market offering for sale federally uninspected uncooked beef heads to retail customers and failed to maintain the necessary business records documenting the origin of these beef heads.
The government filed the proposed consent decree, which is subject to judicial approval.
U.S. Attorney Lelling and FSIS Administrator Rottenberg made the announcement today. Assistant U.S. Attorney Anita Johnson of Lelling’s Civil Division handled the case.
U.S. Attorney awards winning high school for drug-free PSA contestRead the Press Release
WHEELING, WEST VIRGINIA – U.S. Attorney Bill Powell has named Wheeling Central Catholic High School as the winner of the drug-free public service announcement contest launched at the beginning of the school year.
The contest encouraged high school students from across the Northern District of West Virginia to spread the message of the dangers of drugs by holding a public service announcement contest.
“I was very honored to judge the videos we received. If we are to win the opioid battle, education and prevention at the high school level is incredibly important. The students who worked so hard on their submissions and are to be commended. Their messages were inspiring. The dedication of these students demonstrated a real understanding of the issues, and I know the PSA will help in the ongoing education and prevention efforts,” said Powell.
The contest, which was open to all high schools in the 32 counties in the Northern District of West Virginia, gave students the chance to write, act, and produce in their own television PSA, promoting a drug-free high school. Eight high schools participated.
All videos were watched and judged by a panel of law enforcement partners. The judges were U.S. Attorney Bill Powell; Catherine Polichicchio with the FBI in Pittsburgh; and Stephanie Collins with ATF in Louisville, Kentucky. The winner was announced at the Cancer Research Classic basketball tournament January 3, 2020 at WesBanco Arena in Wheeling. The winner received an award from the U.S. Attorney’s Office, and the PSA will be shared with media outlets across the district for airing. All videos submitted to the contest were showcased at the tournament.
Students were encouraged to join the Drug Free Club of America at their school to gain free admission to the event.
Two Philadelphia Men Charged in Series of Robberies of Pharmaceutical Delivery TrucksRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Darryl Goodman, 55, and Nieem Cann, 26, both of Philadelphia, PA, were arrested and charged by Indictment for a series of violent robberies across the Delaware Valley over a four month period early last year. The ten-count Indictment charges Goodman and Cann with various offenses including conspiracy, Hobbs Act robbery, brandishing a firearm, carjacking, and possession of fentanyl with intent to deliver.
Between February and May 2019, the defendants are alleged to have perpetrated a string of violent robberies and attempted robberies of delivery workers and drivers for a pharmaceutical supplies company, TXX Services. The defendants’ alleged attacks on TXX drivers spanned a large geographic area that includes the City of Philadelphia, Montgomery County, Delaware County and into New Jersey. For each robbery, the defendants—working with other co-conspirators—would travel to TXX Services’ warehouse in Cherry Hill, NJ in the early morning hours and then follow a delivery van along its route. Goodman and Cann would then assault the driver in the course of a delivery, carjack the delivery van and abduct the victim, and drive the van to another location in order to raid its supplies and resell them on the street. In one of the incidents alleged in the Indictment, the robbery of a TXX delivery worker at Mercy Fitzgerald Hospital in March 2019, the defendants managed to steal over $140,000 worth of controlled substances and hospital supplies, including numerous vials of fentanyl citrate, a highly addictive opioid pain medicine.
“The allegations here are appalling, as the defendants ruthlessly stalked their victims before violently assaulting them,” said U.S. Attorney McSwain. “The TXX employees were simply doing their jobs, delivering much-needed medicine and supplies to healthcare centers, and of course should not have had to worry about having a gun pointed at them. It takes a special kind of depravity to steal medicine and hospital supplies in this manner. We will continue to work relentlessly to hold dangerous criminals accountable and get them off of the streets.”
“Not only did these defendants allegedly commit a string of brazen, violent carjack robberies, they did so in order to steal and sell controlled pharmaceuticals, including fentanyl, on the street,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Know that the Philadelphia Violent Crimes Task Force is working each and every day to stop dangerous criminals who have decided to make their money preying on the public.”
If convicted, both defendants face a maximum possible sentence of life imprisonment.
The case was investigated by the Federal Bureau of Investigation’s Violent Crimes Task Force and is being prosecuted by Assistant United States Attorney Sara Solow.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Members of the Brooklyn-Based “Insane Crip Gangsters” Charged with Sex TraffickingRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging brothers Gladimir Thomas and Ronald Thomas, members of the Brooklyn-based “Insane Crip Gangsters,” a subset of the Crips street gang, with sex trafficking, sex trafficking conspiracy and promoting prostitution. The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Steven L. Tiscione.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, over a period of years the defendants forced a woman to prostitute herself, while they enriched themselves at her expense,” stated United States Attorney Donoghue. “This Office will continue to work with the FBI and our local law enforcement partners to put an end to the criminal acts of those who seek to profit from sexual slavery.”
As alleged in the indictment and court filings, from 2014 through 2018, the defendants used violence and threats of violence to force their victim into prostitution. As part of their coercion, they plied her with drugs and deprived her of food and sleep, and demonstrated their control over their victim by tattooing their names on her body. The defendants then brazenly promoted their criminal acts on the internet and social media.
If convicted of sex trafficking, both defendants face a mandatory minimum term of 15 years’ imprisonment, and a maximum of life in prison.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Phil Selden is in charge of the prosecution.
The Defendants:
GLADIMIR THOMAS (also known as “Sleep,” “Sleep Boss” and “Daddy”)
Age: 31
Brooklyn, New YorkRONALD THOMAS (also known as “Roco,” “Roco Da Boss” and “Daddy”)
Age: 27
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-0001 (RRM)
Sparta Sex Offender Sentenced to 19 Years for Meth Trafficking, Counterfeiting, Failing to RegisterRead the Press Release
SPRINGFIELD, Mo. – A Sparta, Missouri, man was sentenced in federal court today for drug trafficking, counterfeiting, and failing to register as a sex offender.
William W. Chamlee, 53, was sentenced by U.S. District Judge Roseann Ketchmark to 19 years and seven months in federal prison without parole. The court ordered the federal sentence to be served consecutively to any sentence Chamlee receives in separate state cases in Arkansas.
On July 1, 2019, Chamlee pleaded guilty to possessing methamphetamine with the intent to distribute, counterfeiting, and failing to register as a sex offender.
Chamlee, who had arrest warrants and was being sought by Arkansas authorities, was located inside a camper at his residence in Sparta and arrested on Nov. 4, 2016. Law enforcement officers searched the camper and found a Jennings .22-caliber semi-automatic pistol, ammunition, approximately 17 grams of pure methamphetamine, numerous counterfeit bills of various denominations totaling $2,190, and the computer and printer used by Chamlee to create the counterfeit money.
Chamlee admitted that he bought an ounce of methamphetamine each week from a source he met on Craigslist, and had been doing so for two months. Chamlee said he purchased at least eight to 10 ounces of methamphetamine from his source and he was paying $700 to $800 per ounce.
Chamlee was convicted in Arkansas of video voyeurism against a 10-year-old victim, and therefore required to register as a sex offender for the remainder of his lifetime. Chamlee admitted he knew that he was required to register as a sex offender when he moved to Missouri, but didn’t register because of the Arkansas arrest warrants.
This case was prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Patrick Carney. It was investigated by the U.S. Marshal Service, the Drug Enforcement Administration, the Secret Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Christian County, Mo., Sheriff’s Department.
Senior Manager of Global Internet Company Pleads Guilty to Wire FraudRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, and Jonathan D. Larsen, Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced today that HICHAM KABBAJ, a former senior manager in Manhattan for a global internet company (“Company-1”), pled guilty before Untied States Magistrate Judge Stewart D. Aaron to one count of wire fraud. KABBAJ will be sentenced by United States District Judge Richard M. Berman, to whom the case is assigned.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Hicham Kabbaj defrauded the company for which he worked by arranging for payment of fraudulent invoices to a shell company he created. Kabbaj now awaits sentencing for his $6 million deception.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “Today, Mr. Kabbaj pled guilty to a serious felony because he chose to misuse his position of trust as a corporate executive to steal company funds for his own personal gain. As a result of the dedicated work of IRS-CI special agents, along with our partners at the U.S. Attorney’s Office, Mr. Kabbaj will face the consequences of his crime when he is sentenced by a federal judge.”
According to allegations in the Information and other documents filed in federal court, as well as statements made in public court proceedings:
From at least August 2015 until at least May 2019, KABBAJ engaged in a scheme to defraud his employer into paying a vendor named Interactive Systems, a KABBAJ-controlled shell company, for various information technology (“IT”) products and services. As part of the scheme, KABBAJ caused Interactive Systems to send invoices to Company-1 claiming that Interactive Systems performed services and purchased firewalls and servers for Company-1. In reality, Interactive Systems did none of that work, and KABBAJ quickly transferred the money that Company-1 paid to Interactive Systems to his own personal bank accounts. In total, KABBAJ defrauded Company-1 of more than $6 million as a result of the scheme.
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KABBAJ, 48, of Floral Park, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. KABBAJ has agreed to forfeit his homes in Palm Beach Gardens, Florida, and Hewitt, New Jersey, as property traceable to the offense, among other assets, and he has agreed pay restitution in the amount of $6,051,453.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the Judge.
Mr. Berman praised the investigative work of the IRS-CI and Special Agents of the U.S. Attorney’s Office.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Ni Qian and Andrew A. Rohrbach are in charge of the prosecution.
Omaha Gang Member Sentenced for Possession of Firearm During a Drug Trafficking OffenseRead the Press Release
United States Attorney Joe Kelly announced that on January 3, 2020, Jal Chuar, 24, of Omaha, was sentenced to two months’ imprisonment for distributing marijuana and 60 months’ imprisonment consecutive for possessing a firearm during a drug trafficking offense by United States District Judge Robert F. Rossiter, Jr. There is no parole in the federal system. He will also serve five years of supervised release following his release from prison.
On November 27, 2018, a confidential informant made a controlled buy of 83 grams of marijuana and a Taurus 9mm handgun during a single transaction with Chuar, a known Trip Set gang member. The handgun was not registered to Chuar and the transaction was captured with audio-visual devices.
This case was part of a Project Safe Neighborhood initiative and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Omaha Police Department as part of a larger operation to make controlled purchases of firearms, specifically targeting members of the Trip Set and African Pride gangs.
New Haven Oxycodone Dealer is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MILTON VEREEN, also known as “M.D.,” 40, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 12 months and one day of imprisonment, followed by five years of supervised release, for distributing oxycodone.
According to court documents and statements made in court, in June 2017, the FBI’s New Haven Safe Streets/Gang Task Force initiated an investigation into a New Haven drug trafficking organization headed by Jermayne Butler. The investigation, which included physical surveillance, 13 controlled purchases of narcotics, and court-authorized wiretaps on multiple phones, revealed that members of the organization were distributing crack cocaine and oxycodone in and around New Haven. Vereen was an oxycodone distributor who sometimes redistributed oxycodone supplied to him by Butler and, at other times, supplied Butler with oxycodone.
Butler, Vereen and several other members of the organization were arrested on federal criminal complaints on February 6, 2018. On February 8, 2018, a grand jury in New Haven returned a 30-count indictment charging 19 individuals with various offenses.
On April 25, 2019, Vereen pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, oxycodone. Vereen, who is released on a $50,000 bond, is required to report to prison on March 17, 2020.
Butler pleaded guilty on August 9, 2019, and awaits sentencing.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, which includes members from the New Haven Police Department, Milford Police Department, West Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and David C. Nelson.
Morgantown man admits to firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christian Stevens, of Morgantown, West Virginia, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Stevens, age 27, pled guilty to one count of “Aiding and Abetting a False Statement During Purchase of Firearms.” Stevens admitted to conspiring with another to illegally purchase two pistols from a firearms dealer in December 2016 in Monongalia County.Stevens faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Magistrate Judge Michael John Aloi presided.
Missoula man sentenced for illegal firearm possessionRead the Press Release
MISSOULA—a Missoula man who admitted to illegally possessing two firearms was sentenced today to 22 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Scott Michael Todd, 39, pleaded guilty in September to prohibited person in possession of a firearm.
U.S. District Judge Donald M. Molloy presided.
In court document filed in the case, the prosecution said that in December 2018, Montana Probation and Parole officers conducted a check and search of Todd’s residence. The officers found two firearms, a Winchester Model 94 rifle with loaded with four rounds and a Heritage .22-caliber long rifle revolver. Todd was convicted in 2014 of felony robbery in Montana and was prohibited from possessing firearms.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Missoula Police Department and Montana Probation and Parole.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Middlesex County Man Admits Conspiring to Defraud United States Through Filing of False Tax ClaimsRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man today admitted his role in a conspiracy to defraud the United States by filing false tax claims for gambling winnings, U.S. Attorney Craig Carpenito announced.
Michael Watsey, 43, of South River, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to defraud the United States with respect to claims.
According to documents filed in this case and statements made in court:
Watsey admitted that he was involved in a conspiracy with his family members and others to file 16 fraudulent U.S. Income Tax Returns for years 2014 through 2016. He and his conspirators created false W2-G forms to report gambling winnings, showing significant winnings and federal tax withheld by casinos in Atlantic City. The 16 false tax returns falsely claimed $3.9 million in federal tax refunds. The IRS paid out $1.3 million in refunds.
Watsey admitted to creating the false forms on his home computer, preparing false documents to send the IRS after tax refunds were questioned, pretending to be a casino host by phone with an IRS representative and devising a way to have false W2-G forms filed with the IRS.
The charge to which Watsey pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for April 7, 2020.
U.S. Attorney Carpentio credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, Camden
Member of Southeastern Connecticut Drug Ring Sentenced to 71 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROYSHAWN ALLGOOD, also known as “Boy Roy,” 30, of New London, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 71 months of imprisonment, followed by five years of supervised release, for his role in a southeastern Connecticut drug trafficking ring.
This matter stems from an investigation led by the Drug Enforcement Administration, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton and Stonington Police Departments, into the distribution of narcotics and illegal possession of firearms in southeastern Connecticut. The investigation included court-authorized wiretaps and controlled purchases and seizures of heroin, cocaine and crack cocaine, and firearms. Allgood received narcotics from another member of the conspiracy and then distributed the drugs to users and other street-level distributors.
Allgood and 10 co-conspirators were arrested on February 21, 2019. On March 5, 2019, a grand jury in Hartford returned an indictment charging Allgood and 23 other individuals with various offenses. On June 4, 2019, Allgood pleaded guilty to one count of conspiracy to distribute cocaine, 100 grams or more of heroin, and 28 grams or more of cocaine base (“crack”).
Allgood, who was released on bond, was remanded to custody of the U.S. Marshals Service at the conclusion of the sentencing proceeding.
This investigation is being conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Homeland Security Investigations, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton, Stonington, Norwich, Old Saybrook and UConn Police Departments. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Maysville Man Sentenced to 199 Months for Carjacking and Brandishing a Firearm in Furtherance of a Crime of ViolenceRead the Press Release
COVINGTON, Ky. – A Maysville, Kentucky, man, Charles Wesley Bruener III, 33, who previously admitted to carjacking and threatening two individuals with a firearm in the course of the offense was sentenced Friday to 199 months in prison by U.S. District Court Judge David Bunning.
Bruener previously admitted that, on March 2, 2018, he fled from police in Falmouth, Kentucky, in a Ford Taurus. According to his plea agreement, officers pursued Bruener, and he eventually crashed the vehicle, breaking the hip of his girlfriend, Tiffany Thompson, who was a passenger in the Taurus. Bruener admitted that following the crash, he approached a nearby home, entered without permission, and waved a firearm at the home’s two occupants in order to steal their GMC truck and continue his flight from police. According to his plea agreement, Bruener admitted that when one of the victims in the home initially refused to comply, Bruener struck her, causing minor injuries. Bruener then pointed the gun to threaten a second occupant of the home and obtained the keys to the truck. Bruener and Thompson fled in the stolen truck and crashed it during a second police pursuit, further injuring Thompson’s broken hip. After Bruener and Thompson were arrested, officers recovered two stolen firearms and methamphetamine from the crime scenes.
Bruner pleaded guilty in September 2019. According to documents filed in the case, Bruener has previously been convicted of felony offenses, including receiving stolen property and robbery.
Under federal law, Bruener must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 5 years after his release from prison. The court ordered that the federal sentence run consecutively to the 17 year Kentucky prison term that Bruener is presently serving for other state charges.
Thompson pleaded guilty in October of 2018 to being a convicted felon in possession of a firearm. According to court documents, Thompson has prior convictions for felony drug trafficking and drug possession. She was sentenced in February 2019 to 78 months in prison and 3 years of supervised release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Tommy Estevan, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Pendleton County Sheriff Craig Peoples, jointly announced the sentence.
The investigation was conducted by Pendleton County Sheriff’s Office and ATF. The United States was represented by Assistant U.S. Attorney Tony Bracke.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/ag/about-project-guardian.
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Lincoln Woman Sentenced on Drug and Gun ChargesRead the Press Release
United States Attorney Joe Kelly announced that on January 3, 2020, Anna J. Chernyy, 24, of Lincoln, was sentenced by Chief United States District Judge John M. Gerrard to a total of 15 years in prison for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug crime. Chernyy was sentenced to 10 years on the drug charge and a consecutive five years on the gun charge. There is no parole in the federal system. Following the prison terms, she will serve five years on supervised release.
Chernyy was held responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of a mixture or substance containing methamphetamine and at least 10 grams of heroin between January 30, 2019, and April 2, 2019, in the Lincoln area. Between January 30, 2019, and March 25, 2019, an undercover officer made 12 purchases of methamphetamine and/or heroin from Chernyy in Lincoln. During one of those purchases, on March 13, 2019, the officer saw Chernyy in possession of a Taurus 9mm handgun. During that time, Chernyy provided the officer with information leading to the identification of her source as her co-defendant, Jeremiah Burkhart. On March 31, 2019, Chernyy told the officer her source had gone to Colorado to bring back more drugs.
On April 2, 2019, officers stopped Burkhart in Grand Island on his way back to Lincoln from Colorado. During a search of his car, officers found methamphetamine and a Taurus 9mm handgun, believed to be the same handgun seen earlier in Chernyy’s residence. A search warrant was executed at Chernyy’s residence. During that search, a safe was found containing additional methamphetamine and heroin.
The total amount of methamphetamine purchased by the undercover officer and found during the searches of Burkhart’s car and Chernyy’s residence was more than 1.5 kilograms, and the total amount of heroin purchased or found during the search of Chernyy’s residence was more than10 grams.
Burkhart received 18 years in prison in December of 2019 after pleading guilty to the conspiracy charge.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Kansas Man Sentenced to 11 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Baxter Springs, Kansas, man whose previous sentence was commuted by then-President Barack Obama was sentenced in federal court today for committing another drug-trafficking violation soon after his release from prison.
Carroll J. Flowers, 69, was sentenced by U.S. District Judge Roseann Ketchmark to 11 years and three months in federal prison without parole.
In an earlier unrelated case, Flowers was sentenced on June 19, 2002, to 20 years in federal prison following his conviction in the District of Kansas for conspiring to distribute 3.2 kilograms of pure methamphetamine. President Obama commuted Flowers’ sentence and he was released on May 19, 2017, to a term of supervised release. Approximately six months later, while still on supervised release, Flowers committed this offense.
Flowers pleaded guilty on May 28, 2019, to participating in a conspiracy to distribute methamphetamine from Dec. 6 to Dec. 13, 2017. When Flowers was arrested, he was carrying 83.1 grams of pure methamphetamine and $2,731.
Flowers was arrested with co-defendant Melissa A. Lowry, 44, of Joplin, Missouri. Lowry pleaded guilty to the same charge on Sept. 30, 2019, and awaits sentencing. She admitted to selling methamphetamine to a confidential law enforcement informant. When officers searched her residence at the time of her arrest with Flowers, they found a black-zipped pouch inside a compartment of a bedroom dresser that contained approximately 14 grams of methamphetamine, a digital scale, and unused baggies.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the FBI and the Ozarks Drug Enforcement Team.
Kalispell woman sentenced in opioid distribution caseRead the Press Release
MISSOULA—A Kalispell woman who admitted selling oxycodone pills to an undercover agent was sentenced today to 37 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Judith Johanna Cossette, 67, pleaded guilty in September to possession and attempted possession of oxycodone with intent to distribute.
U.S. District Judge Donald M. Molloy presided.
The prosecution said in court documents filed in the case that Cossette met with an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives in March 2019 and sold the agent several pills, including 19 oxycodone tablets. Cossette told the agent she would be receiving 112 oxycodone tablets the following week and agreed to provide the agent with a steady supply of oxycodone for six months. The agent told Cossette he wanted the tablets to make some money.
Assistant U.S. Attorney Tim Racicot prosecuted the case, which was investigated by the ATF.
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Inmate at USP Sentenced for Conspiring to Distribute Suboxone, Possess Suboxone, and Making False StatementsRead the Press Release
Abingdon, VIRGINIA – Victor Lebron, an inmate at USP Lee in Jonesville, Virginia, was sentenced yesterday to 180 months in prison for conspiring to illegally possess and distribute buprenorphine, also known as Suboxone, while incarcerated and lying to investigators about it, United States Attorney Thomas T. Cullen announced today.
Following a jury trial in December 2018, Victor Lebron, 43, was convicted of conspiracy to defraud the United States, conspiracy to distribute Suboxone, distributing Suboxone, and making false statements. Christy Santiago, who was also convicted following the December 2018 trial, was previously sentenced to 18 months in prison.
According to evidence presented at the trial, Santiago, who was Lebron’s girlfriend at the time, transferred several balloons full of Suboxone to Lebron during a visit to USP Lee. Lebron swallowed the balloons, which were later defecated by the defendant while he was held in a dry cell for suspicion of possession of narcotics. When questioned, Lebron denied getting the drugs from Santiago. Evidence presented at trial showed a series of discussions between the two leading up to Santiago’s visit regarding the transfer of drugs.
The investigation of the case was conducted by the Federal Bureau of Investigation and the United States Bureau of Prisons. Assistant United States Attorneys Randy Ramseyer and Kate Rumsey prosecuted the case for the United States.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Dec. 30 was:
Joshua John Welliver, 32, of Billings, on charges of possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime and prohibited person in possession of a firearm. If convicted of the most serious crime, Welliver faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Welliver was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 19-153.
Appearing on Jan. 3 was:
James Russell Gokey Jr., 38, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Gokey faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Gokey was released pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. Pacer case reference. 19-158.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Government Contractor Sentenced to 18 Months for Fraudulently Claiming to Perform Services as a Minority Business EnterpriseRead the Press Release
WASHINGTON – Keith Forney, 61, of Washington, D.C., was sentenced on Friday to 18 months in prison for fraudulently claiming to perform services as a Minority Business Enterprise on a copier contract with the State of Maryland.
The announcement was made by U.S. Attorney Jessie K. Liu, Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Kelly R. Jackson, Special Agent in Charge of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office.
On August 13, 2019, Forney pled guilty to mail fraud, money laundering, and tax fraud. The Honorable Rosemary M. Collyer sentenced Forney to 18 months of incarceration on the mail and money laundering charge to run concurrently to one another in addition to six months of incarceration for the tax fraud. She also entered a $400,000 forfeiture money judgment and ordered Forney to pay $92,000 in restitution to the IRS. Forney was also placed on three years of supervised release.
According to the statement of offense, Forney was the sole owner of Forney Enterprises, Inc. (FEI). FEI was primarily engaged in the construction business as a general contractor. Its principal office was located in the District of Columbia.
Forney participated in a scheme with John Vassos and the President of Sharp Business Systems (SBS) to obtain a contract with the Maryland Administrative Office of the Courts (Maryland AOC) for copier maintenance and repair services throughout the state’s court system. In 2009, the Maryland AOC solicited bids for the contract. The contract required that at least 20% of the work be performed by a Minority Business Enterprise (MBE). SBS bid on the contract and identified FEI as the MBE. Forney, on behalf of FEI, signed a subcontracting agreement with the President of SBS. The Maryland AOC awarded the contract to SBS, and renewed the contract in 2010 and 2011.
As detailed in the statement of offense, FEI performed no work and provided no services during the three years that the contract was in effect. Forney falsely stated in a letter to the MBE compliance manager that FEI was providing “logistic support” to SBS. Forney signed monthly work force rosters to the Maryland AOC falsely claiming that an FEI employee was working as a “Logistics/IT Support Technician” on the contract. The FEI employee was in fact a Quality Control Manager for FEI’s construction projects.
FEI submitted monthly $12,500 invoices to SBS for FEI’s purported work as an MBE. Sharp Electronics, the parent company of SBS, then issued checks to FEI. In total, FEI received $400,000 for its purported work as the MBE. Forney committed money laundering by providing the entire $400,000 to Vassos, who was an SBS consultant. Vassos pled guilty in June 2017 to one count of conspiracy to commit mail fraud, one count of tax fraud, and one count of conspiracy to commit wire fraud. He is awaiting sentencing.
In the statement of offense for the tax fraud case, Forney acknowledged that he knowingly under-reported his income from FEI on his personal federal income tax returns for the 2009 and 2010 calendar years. Forney did so by fraudulently treating certain expenses as deductible business expenses. Those expenses included: FEI payments to reimburse individuals whom Forney had directed to make contributions from their personal funds to candidates for D.C. political offices and to D.C. Council members’ Constituent Services Programs; an FEI $25,000 contribution to a mayoral campaign; an FEI payment to a law firm for its representation of a former foreign government official from a country where Forney owned investment property, in connection with the official’s trip to Washington, D.C.; FEI payments to Forney for “consulting” work; and FEI payments for his child’s college education.
In April 2019, Forney was convicted of eleven counts of campaign finance violations, three counts of fraud, two counts of perjury, and one count of corrupt election practices following a trial in the Superior Court of the District of Columbia. He was sentenced to six months in prison for the 11 illegal campaign violations and an additional 36 months, suspended, for fraud, perjury, and corrupt election practices.
In announcing the sentence, U.S. Attorney Liu praised the efforts of the FBI’s Washington Field Office and IRS. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including financial analyst, Bryan J. Snitselaar, paralegal specialists C. Rosalind Pressley and Amanda Rohde, former paralegals Toni Anne Donato, Kristy Penny, and Joshua Fein, and former U.S. Attorney’s Office investigator Juan Juarez. Finally, she expressed appreciation for the work of Assistant U.S. Attorney Anthony Saler who prosecuted the case.
Former UVA Football Player Sentenced for $10 Million FraudRead the Press Release
RICHMOND, Va. – A former University of Virginia football player was sentenced today to 40 years in prison for a $10 million investment fraud scheme and a separate loan fraud scheme.
According to court documents, Merrill Robertson Jr., 39, of Chesterfield, started Cavalier Union Investments, LLC, and Black Bull Wealth Management, LLC, with co-conspirator Sherman Carl Vaughn. From 2008-2016, Robertson and Vaughn solicited individuals to invest money in private investment funds that they managed, as well as distinct investment opportunities that they proposed. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union Military Academy, the University of Virginia, and in the National Football League, while Vaughn focused on developing investment opportunities.
Among other things, Robertson led investors to believe he was an experienced investment advisor, that his company was qualified to serve as a custodian of retirement accounts, that investor money was deposited into individual tax-deferred retirement accounts, and that investor money was secured by tangible cash-producing assets owned by his company.
As a result of this conspiracy, Robertson and Vaughn fraudulently obtained more than $10 million from over 60 investors, spending much of the money on their own personal living expenses, including mortgage and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.
By 2015, Robertson and his partner had spent most of the money they collected from investors. Robertson was then unable to raise new investor capital. So Robertson approached Cavalier investors and other friends and offered to help them get loans in exchange for a portion of the loan proceeds. Mr. Robertson and others then caused falsified loan applications to be submitted to various banks and credit unions on behalf of these individuals, which included false statements about the borrower’s personal financial status, the real purpose of the loan, and whether the loan was secured by collateral. In doing so, Robertson and others obtained nearly $250,000 through falsified loan applications to at least 5 financial institutions.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorneys Katherine Lee Martin, Stephen E Anthony, and Kenneth Simon prosecuted 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. 3:16-cr-133.
Former Tomah and Kettle Moraine High School Principal Charged with Child Enticement and Possession of Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that David A. Hay (age: 39), a resident of Brooklyn, New York, was charged via a criminal complaint following his December 29, 2019, arrest by local authorities.
According to the complaint and supporting affidavit, starting in July of 2019, Hay, a former Wisconsin resident, began corresponding on a popular dating app with “Colton” whom he believed to be a 14 year-old boy living in Neenah, Wisconsin. Hay began engaging in sexually explicit conversations with “Colton” and making plans to meet up with the minor to engage in sexual activity.
“Colton” was, in fact, a City of Neenah Police Investigator operating undercover. The complaint alleges that Hay procured a “whirlpool suite” at a Neenah area hotel for the purpose of meeting up with the child for sexual activity. Following Hay’s arrest, a search of his smart phone revealed sexually explicit images of a former Tomah High School student. Hay was the principal at that school from 2011-2014. Prior to that he was an administrator at Kettle Moraine High School for several years.
Hay faces charges of using a computer to attempt to persuade, induce, or entice a minor to engage in unlawful sexual activity, in violation of Title 18, United States Code, Section 2422(b), and possession of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(5)(B). He faces a mandatory minimum sentence of 10 years and up to a lifetime of imprisonment if convicted of the enticement charge, and up to 10 years imprisonment if convicted of the child pornography possession charge.
This case was investigated by the City of Neenah Police Department with the assistance of the Green Bay office of the Federal Bureau of Investigation and the Milwaukee County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
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Public Information Officer Kenneth Gales 414-297-1700
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Former Prince George’s County Delegate Sentenced to Federal Prison for Wire FraudRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced former Maryland State Delegate Tawanna P. Gaines, age 67, of Berwyn Heights, Maryland, to six months in federal prison, followed by two months of home detention with electronic monitoring, as part of three years of supervised release, on a federal wire fraud charge. Gaines converted more than $22,000 in campaign funds to her personal use. Judge Chuang also ordered Gaines to pay restitution and to forfeit $22,565.03, which is the loss resulting from her fraud.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“Tawanna Gaines betrayed the public trust by using her position in the Maryland House of Delegates to enrich herself, at the expense of her constituents,” said U.S. Attorney Robert K. Hur. “Our elected officials are entrusted to make decisions in the best interests of the people they represent. We will pursue and prosecute those who break that trust and bring them to justice.”
“Public corruption at any level undermines the community’s faith in their elected officials thus enabling long-term damage to government institutions,” said FBI Baltimore Special Agent in Charge Jennifer Boone. “The FBI works diligently to detect fraud and corruption and hold those who violate the public’s trust accountable. Anyone who believes they have information about public corruption is asked to contact the FBI at 410-265-8080 or tips.fbi.gov.”
According to her plea agreement, Gaines was a Maryland State Delegate from December 2001 through October 17, 2019, representing District 22, which covered portions of Prince George’s County. Over her years in the House of Delegates, Gaines held many committee assignments, including vice-chair of the Appropriations Committee and Assistant Majority Leader. The “Friends of Tawanna P. Gaines” (FTPG) candidate committee was the name of the finance entity for the Gaines campaign for Maryland State Delegate from June 2002 to the present. FTPG was a regulated state election campaign committee with a designated bank account. Separately, Gaines held exclusive control over a PayPal account used to accept electronic donations to FTPG which was not disclosed in State campaign finance filings.
Gaines admitted that from at least January 2015 through April 2018, she defrauded the campaign and its contributors of more than $22,000. Specifically, Gaines solicited campaign contributions, falsely representing to contributors that the funds would be used to facilitate her reelection and maintain her leadership positions within the Maryland General Assembly. Gaines accepted donations from campaign contributors into the FTPG PayPal account, then without authorization and in violation of Maryland campaign finance laws, utilized campaign funds from the FTPG account for her personal use. Gaines admitted that she received campaign contributions and converted them to her own use without causing the contributions to be identified on reports made to the Maryland State Board of Elections.
As detailed in her plea agreement, Gaines used the campaign funds from the FTPG PayPal account to pay for personal expenses, such as fast food, hair styling, dental work, a cover for the pool at her personal residence, an Amazon Fire TV stick, Amazon Prime membership, and payments to Amazon.com. In addition, during the course of the scheme Gaines withdrew a total of approximately $1,952.75 in cash from ATM machines and electronically transferred at least $2,061.55 from the FTPG PayPal account directly to her personal checking account. The total loss as a result of Gaines’ fraud was at least $22,565.03. As part of her plea agreement, Gaines is required to forfeit and pay restitution in that amount.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
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Former Acting Executive Director of Jersey City Employment and Training Program Charged in Embezzlement SchemeRead the Press Release
NEWARK, N.J. – The former acting executive director of the Jersey City Employment and Training Program (JCETP) has been charged with embezzling JCETP funds, U.S. Attorney Craig Carpenito announced today.
Sudhan M. Thomas, 44, of Jersey City, New Jersey, is charged by complaint with embezzling funds from an organization receiving federal funds. Thomas is expected to make his initial appearance on Jan. 9, 2020, before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the complaint:
Thomas served as JCETP’s acting executive director from January 2019 until his resignation in July 2019. JCETP is a nonprofit organization that operated to assist Jersey City residents to prepare for and enter the work force. JCETP received substantial amounts of its funding from federal grants from the U.S. Department of Labor and the U.S. Department of Housing and Urban Development.
Using his access to JCETP funds and control of JCETP’s bank accounts, from March 2019 through July 2019, Thomas embezzled more than $45,000 from JCETP. Thomas caused checks to be drawn from JCETP accounts that were made payable to others, but ultimately received by Thomas. He also embezzled JCETP funds by issuing JCETP checks made out to cash that Thomas either cashed himself or used to obtain bank checks that Thomas made payable to his entity, Next Glocal, which were deposited into a Next Glocal bank account that Thomas controlled. Thomas used the JCETP funds deposited to Next Glocal’s bank account to pay for his personal expenses, including payments to Thomas’s landlord in Jersey City and airfare and hotel expenses for a trip to Hawaii, and to fund transfers to Thomas’ family trust account.
The count of theft from an organization receiving federal funds carries a maximum potential penalty of up to 10 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Department of Labor, Office of the Inspector General (OIG), under the supervision of Special Agent in Charge Michael Mikulka; and special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney Lee M. Cortes Jr., Chief of the Health Care Fraud Unit, in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
District Man Sentenced to Seven Years for Federal Firearms Charge in Robbery of Convenience StoreRead the Press Release
WASHINGTON – Cordell Brockington, 26, of Washington, D.C., was sentenced today to 84 months’ imprisonment and five years of supervised release to a federal firearms charge stemming from an armed robbery that he committed earlier this year at a convenience store in Northwest Washington, announced U.S. Attorney Jessie K. Liu, FBI Washington Field Office Criminal Division Special Agent in Charge Timothy M. Dunham, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Brockington pled guilty in the U.S. District Court for the District of Columbia to one count of using, carrying, possessing, and brandishing a firearm during and in relation to a crime of violence on November 9, 2018. He was sentenced by the Honorable Senior Judge Rosemary M. Collyer this morning.
According to the government’s evidence, on Jan. 9, 2018, at approximately 1:10 a.m., Brockington, while masked, entered a 7-Eleven store in the 1600 block of Connecticut Avenue NW. After entering the store, he approached two store clerks who were working at the time. Brockington stated to the clerks “Give me the money” several times, during which he lifted his jacket area to expose, show, and display a firearm that was located in his waistband.
Brockington then directed one of the clerks to the area of the store where two cash registers were located and instructed the clerk to open both registers. Brockington removed a total of approximately $210 from the registers. He then fled the 7-Eleven store.
Brockington was arrested on Jan. 12, 2018, and has been in custody ever since. At the time of his arrest, Brockington was on supervised release following his release from prison eight months earlier for a different armed robbery. He now faces formal revocation of his supervised release and additional incarceration separate and apart from the sentence that he received for brandishing the loaded firearm on Jan. 9, 2018.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Dunham, and Chief Newsham commended the work of the FBI agents and MPD officers who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Ethan Carroll, Gregory Rosen, and Kaitlin Vaillancourt.
Defendants Convicted and Sentenced in Long-Term Methamphetamine Drug Trafficking ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – With the sentencing of the last of 25 defendants, federal prosecutors this
week wrapped up a large-scale methamphetamine trafficking organization operating primarily within
Taylor and Madison counties in Florida, and Colquitt County, Georgia. The final defendant, Patrick
Lemuel Bass of Taylor County, was sentenced to eight years in prison for his part in the
conspiracy. The convictions and sentences in the conspiracy were announced by Lawrence Keefe,
United States Attorney for the Northern District of Florida.During the fall of 2017, an Organized Crime Drug Enforcement Task Force began investigating the
distribution of methamphetamine — commonly referred to as “ice”— within Taylor and Madison
counties. A total of 25 defendants were charged in a series of indictments returned in 2017 and
2018. The defendants were convicted and sentenced for conspiracy to distribute and possess with
intent to distribute varying amounts of methamphetamine. The investigation also involved numerous
undercover controlled purchases by law enforcement during the trafficking conspiracy.The defendants and their sentences are:
• Robert Shane Willis, Taylor County, Florida, 108 months in prison;
• Robert Edward Lee, Madison County, Florida, 102 months in prison;
• Takayla Rene Sanders, Colquitt County, Georgia, 96 months in prison;
• Patrick Lemuel Bass, Taylor County, Florida, 96 months in prison;
• Robert Wayne Cornwell, Taylor County, Florida, 96 months in prison;
• Joseph Brian Stafford, Taylor County, Florida, 96 months in prison;
• James Antony Farrill, Taylor County, Florida, 84 months in prison;
• Keith Eric Sadowski, Taylor County, Florida, 78 months in prison;
• Christopher Keith Irvin, Taylor County, Florida, 72 months in prison;
• Jessica Rae Mauldin, Madison County, Florida, 72 month in prison;
• Kevin Wayne Knippel, Colquitt County, Georgia, 72 months in prison;
• Eric Jason Gilbreath, Taylor County, Florida, 72 months in prison;• Bryan Heath Willis, Taylor County, Florida, 66 months in prison;
• John Wayne Dixon, Taylor County, Florida, 60 months in prison;
• Christopher Castleberry, Colquitt County, Georgia, 60 months in prison;
• Marlo Howard, Madison County, Florida, 48 months in prison;
• Travis Ryan Crosby, Madison County, Florida, 48 months in prison;
• Joshua Lynn Gilbreath, Taylor County, Florida, 48 months in prison;
• Brandon Douglas Hall, Colquitt County, Georgia, 42 months in prison;
• Lisa Marie Ezell, Taylor County, Florida, 39 months in prison;
• Jerry Franklin Sapp, Madison County, Florida, 36 months in prison;
• Raymond Cody Williams, Madison County, Florida, 366 days in prison;
• Samantha Agner Crouse, Taylor County, Florida, 12 months in prison;
• Jamie Lynn Baumgardner, Taylor County, Florida, 8 years of supervised release; and
• Miranda Marie Stafford, Taylor County, Florida, 5 years of supervised release.This case resulted from an investigation by the federal Drug Enforcement Administration and Bureau
of Alcohol, Tobacco, Firearms and Explosives; the Florida Department of Law Enforcement; the Taylor
County Sheriff’s Office, Madison County Sheriff’s Office, Perry Police Department, and Monticello
Police Department in Florida; the Colquitt County Sheriff’s Office and Thomas County Sheriff’s
Office in Georgia; and the Florida Highway Patrol and Florida National Guard. Assistant United
States Attorneys Christopher J. Thielemann, Eric K. Mountin, James A. McCain, and Jason R. Coody
prosecuted the cases.The United States Attorney's Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.Cling Kaipat Sentenced to 46 Months in Prison for Possession of a Stolen Firearm Following a Residential BurglaryRead the Press Release
SAIPAN, CNMI - SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that on January 3, 2020, Cling Philip Kaipat, also known as “Gilbert Kaipat,” was sentenced in U.S. District Court to 46 months imprisonment for Possession of a Stolen Firearm, in violation of 18 U.S.C. § 922(j). Kaipat was also ordered to serve three years of supervised release following his term in prison. He must also perform 50 hours of community service, unless he is gainfully employed during his release.
On November 5, 2015, Kaipat burglarized a home on Saipan. During the course of the crime, he stole a 9mm Smith and Wesson handgun, several rounds of ammunition, and other items. C.N.M.I. Department of Public Safety (DPS) investigators obtained surveillance from a nearby grocery store. The footage depicted an individual wearing dark pants and a dark shirt walking in the direction of the residence. DPS canvassed the neighborhood asking residents whether anyone recognized the individual in the surveillance video. Ultimately, someone identified Kaipat as the perpetrator. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) then began a federal investigation.
U.S. Attorney Anderson stated, “The results of this case demonstrate the benefits of our local and federal law enforcement partners working together in addressing dangers to our communities. Federal law prohibits the possession of firearms and ammunition under a variety of circumstances, including where the gun itself is stolen. The Department of Justice will continue to focus resources on these prosecutions in an effort to prevent violent crime.”
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance and cooperation of the C.N.M.I. Department of Public Safety. The case was prosecuted by Garth R. Backe, Assistant United States Attorney for the District of the Northern Mariana Islands.
Chicago Man Sentenced to 87 Months in PrisonRead the Press Release
HAMMOND – Akeem Jackson, 29 years old, of Chicago, Illinois, was sentenced by U.S. District Court Judge Philip P. Simon after pleading guilty to Hobbs Act Robbery and Possession of a Firearm During and in Relation to a Crime of Violence, announced United States Attorney Thomas L. Kirsch II.
According to documents in the case, on April 28, 2018, Jackson and others robbed a Brinks armored car while a Brinks employee was servicing an ATM at a Chase Bank in Hammond, Indiana. During the robbery, Jackson disarmed the Brinks employee by taking his firearm. Jackson stole approximately $617,000 during the robbery.
This case was investigated by the FBI GRIT Task Force and prosecuted by Assistant United States Attorneys Jennifer Chang and Thomas McGrath.
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Caldwell University Agrees to Pay More Than $4.8 Million to Resolve Allegations of Violating False Claims ActRead the Press Release
NEWARK, N.J. – Caldwell University has agreed to pay the United States more than $4.8 million to resolve allegations that it engaged in a fraudulent scheme to defraud a federal education benefit program, U.S. Attorney Craig Carpenito announced.
“Caldwell University tried to hoodwink the Department of Veterans Affairs and, worse, veterans themselves, by claiming to offer online classes developed and provided by Caldwell that were in fact marked-up offerings by an online correspondence school,” U.S. Attorney Carpenito said. “Our veterans should never be treated this way, and we will continue to work to ensure that they receive all of the benefits that they deserve as a result of their service to the country.”
“Caldwell University’s civil settlement, along with the previous criminal convictions, sends a clear message to other educational institutions that VA OIG is dedicated to holding those accountable who would take advantage of VA programs that are intended to assist veterans and their families,” Jeffrey K. Stachowiak, Acting Special Agent in Charge, U.S. Department of Veterans Affairs Office of Inspector General, said. “Our veterans sacrificed to serve our country and they deserve to receive the full education benefits that they earned through their military service. VA OIG is committed to working closely with our fellow law enforcement partners and thanks the U.S. Attorney’s Office, District of New Jersey, for its dedication to this investigation.”
According to the settlement agreement:
From Jan. 1, 2011, through Aug. 8, 2013, Caldwell University submitted false claims for payment to the Department of Veterans Affairs (VA) in order to receive education benefits and funds pursuant to the Post-9/11 Veterans Education Assistance Act (Post 9/11 GI Bill) to which it was not entitled. The Post 9/11 GI bill was designed specifically to help veterans who served in the armed forces following the terrorist attacks on Sept. 11, 2001.Three individuals previously pleaded guilty to separate informations charging them with one count of conspiracy to commit wire fraud related to this scheme to defraud the VA. Lisa DiBisceglie, the university’s former associate dean of the Office of External Partnership; David Alvey, founder and president of Ed4Mil LLC; and Helen Sechrist, a former employee of Ed4Mil, admitted their respective roles in the conspiracy to fraudulently obtain millions of dollars in tuition assistance and other education-related benefits from the Post-9/11 GI Bill. Alvey was sentenced on June 4, 2018, to five years in prison. DiBisceglie and Sechrist were each sentenced on June 5, 2018, to three years of probation. All three defendants were also ordered to pay $24 million in restitution.
According to documents in this case and statements made in court:
Caldwell contracted with Ed4Mil to recruit and enroll eligible military veterans in non-degree fully online classes that were purportedly provided by Caldwell. DiBisceglie helped get approval from Caldwell’s administration to develop and administer a series of non-credit online courses for veterans in Caldwell’s name. In order for the courses to be eligible for education benefits under the Post-9/11 GI Bill, DiBisceglie, Alvey, and others prepared and submitted an application to the VA stating that the courses were developed, taught, and administered by Caldwell faculty and met Caldwell’s stringent educational standards. The VA approved the online courses for education benefits under the Post-9/11 GI Bill based upon the representations in Caldwell’s application.
However, Caldwell did not participate in developing or teaching the online courses. The courses were developed, taught, and administered by a sub-contractor of Ed4Mil, an online correspondence school in Pennsylvania that was not approved to receive education benefits under the Post-9/11 GI Bill.
Thousands of veterans were ultimately enrolled in the unapproved online correspondence courses without their knowledge while Caldwell and Ed4Mil profited. Even though Caldwell contributed no content or value to the courses, Caldwell charged the Post 9/11 GI Bill 10 to 30 times the prices charged by the online correspondence school for the same courses. As a result, the government paid over $24 million in tuition benefits to the university.
Allegations of fraud involving a separate government education benefit program were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The qui tam complaint alleges that Caldwell and Ed4Mil fraudulently obtained education benefits under the Department of Defense Tuition Assistance program. This settlement resolves federal allegations that Caldwell defrauded the Post-9/11 GI Bill administered by the VA, along with the qui tam action.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division, Northeast Field Office, under the direction of Acting Special Agent in Charge Stachowiak; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Special Agent in Charge Geoffrey Wood, with the investigation.
The government is represented by Assistant U.S. Attorney David M. Eskew, Chief of the U.S. Attorney’s Office’s Health Care Fraud Unit, and Assistant U.S. Attorney Nicole F. Mastropieri of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no admissions of liability.
Defense counsel: Henry E. Klingeman Esq., Newark
Relator’s counsel: Jesse Hoyer Esq., Tampa, FloridaBurgaw Man Sentenced to More than 5 Years’ Imprisonment for Possessing Gun While on Federal Supervised ReleaseRead the Press Release
NEW BERN — United States Attorney Robert J. Higdon, Jr., announced that today in federal court, United States District Judge Louise W. Flanagan, sentenced Clifton Tyrail Evans, 36, of Burgaw to 66 months’ imprisonment, followed by 3 years of supervised release. Evans was named in a single-count Indictment on January 15, 2019, charging him with possession of a firearm by a felon. On August 22, 2019, he pled guilty to a single-count Criminal Information charging the same offense.
According to the investigation, a sergeant of the Bladen County Sheriff’s Office was monitoring traffic on April 30, 2018, at the intersection of NC 11 and Natmore Road, when he spotted a car going 70 in a 55 mph zone. He stopped the car and identified the driver as the defendant. Because Evans appeared unusually nervous - so much so that he nearly burned a hole in his pants with a lit cigarette - a K-9 unit was called to investigate. After the K-9 alerted to the presence of contraband in the car, EVANS admitted he had a gun and a small amount of cocaine in the center console. Law enforcement recovered a Sig Sauer P229 9mm handgun.
This is EVANS’ second federal conviction for being a felon in possession of a firearm. The first conviction occurred in 2009, and Evans was on federal supervised release for that offense when he committed the crime for which he was sentenced today. This violation of the terms of his supervised release accounted for 18 months of the total sentence imposed. Prior to his federal conviction, EVANS also sustained two felony convictions for robbery with a dangerous weapon, a felony drug conviction, and a felony conviction for eluding with a motor vehicle.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bladen County Sheriff’s Office conducted the investigation. Assistant United States Attorney Jake D. Pugh represented the government.
Buffalo Man Going to Prison for 10 Years on Cocaine ConvictionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Eli Clark, 29, of Buffalo, NY, who was convicted of possession with intent to distribute 28 grams or more of crack cocaine, was sentenced to serve 120 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura Higgins, who handled the case, stated that on October 21, 2016, law enforcement officers executed a search warrant inside the defendant’s Crowley Avenue residence in Buffalo. Officers found two Tupperware containers on the kitchen counter, each containing a quantity of crack cocaine. When asked about the substance found in the containers, Clark stated, “Whatever you find, it's my house, you take me. At the end of the day it's my house, if you find something, take me.”
The sentencing is the result of an investigation by the Niagara County Drug Task Force, under the direction of Acting Sheriff Michael Filicetti; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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Bakersfield Resident Indicted for Illegal Possession of a Sawed-Off ShotgunRead the Press Release
FRESNO, Calif. — A federal indictment was unsealed today that charges Jesus “Shotgun” Paniagua, 37, of Bakersfield, with being a felon in possession of a firearm and failing to register a firearm in the National Firearms Registry, U.S. Attorney McGregor W. Scott announced.
On Dec. 19, 2019, a federal grand jury returned the two-count indictment. According to court documents, on Oct. 4, Paniagua, a previously convicted felon, was found in possession of an unregistered 20 gauge shotgun that was less than 26 inches long in violation of federal law.
This case is the product of an investigation by the Bakersfield Police Department. Assistant U.S. Attorney Anthony Yim is prosecuting the case.
If convicted, Paniagua faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov.
Accused Dog Abuser Pleads Guilty to Federal Gun ChargeRead the Press Release
St. Louis, MO –Paul “Paco” Garcia, 40, of Barnhart, MO, pleaded guilty to being a felon in possession of a firearm. Garrett appeared today before U.S. District Judge Catherin D. Perry who accepted his plea and set his sentencing date for April 24, 2020.
According to the plea agreement, law enforcement agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and with the Jefferson County Sheriff’s Office began investigating Garcia in August of 2018 for trafficking in methamphetamine in an around Jefferson County.
On September 14, 2018, a Jefferson County police officer stopped Defendant for speeding near Highway MM at the Old Highway 21 interchange in Jefferson County, Missouri. The officer asked Garcia to step out of the vehicle and subsequently observed Garcia appearing to reach for a baseball bat located in the car. When officers searched the area of car where Defendant was previously seen reaching, and they located a silver baseball bat and a black firearm in the glove compartment. The firearm was a black, Rock Island Armory .38 SPL revolver with wood grips. A search of the car revealed a small black bag containing metal knuckles and additional .38 caliber bullets. Garcia admitted he kept the revolver in his glove box for protection from being robbed in connection with his methamphetamine trafficking activities
Garcia faces a penalty up to 10 years imprisonment and a fine of $250,000 or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Jefferson County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Lisa Yemm is handling this case for the U.S. Attorney’s Office.
Garcia remains charged in Jefferson County by the State of Missouri with Animal Abuse in the Second Degree and Armed Criminal Action in connection with throwing a Dachshund from his car window after binding its muzzle and legs with tape in February of 2019. Those charges remain merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. That case is being investigated by the Jefferson County Sheriff’s Department and prosecuted by the Jefferson County Prosecuting Attorney’s Office.
Thursday 2 January 2020
Swiss Asset Management Firm and Its Owner Charged in Manhattan Federal Court for Orchestrating Stock Manipulation SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging BLACKLIGHT, S.A., a Swiss entity purporting to offer asset management and trustee services, and its founder and principal owner, KENNETH CIAPALA, as well as ULRIK DEBO, a/k/a “Molgaard Debo,” a/k/a “Ulrik Molgaard,” with engaging in a long-running stock manipulation scheme involving numerous United States issuers. CIAPALA and DEBO were arrested in the United Kingdom, and the United States Government will be seeking their extradition to the United States.
U.S. Attorney Geoffrey S. Berman said: “As alleged, for years the Swiss firm Blacklight, S.A., its owner, Kenneth Ciapala, and Ulrik Debo have made millions of dollars by orchestrating stock manipulation schemes of publicly traded shares of U.S.-based issuers. Today’s charges make clear that our Office, along with our law enforcement partners, will vigorously prosecute those who allegedly manipulate the stocks of U.S. issuers, including those operating abroad.”
FBI Assistant Director William F. Sweeney Jr. said: “As a major facilitator of market manipulation schemes, Blacklight, S.A, allegedly enabled numerous ‘pump and dumps’ over the course of six years. Disrupting the orchestrators of illegal financial activity is a top priority for the FBI’s securities fraud team, and we consider today’s indictment of Blacklight, its founder and principal owner Kenneth Ciapala, and co-conspirator Ulrik Debo an important step in that mission.”
As alleged in the Indictment unsealed in Manhattan federal court[1]:
BLACKLIGHT, S.A. (“BLACKLIGHT”), a Swiss entity based in Geneva, Switzerland, that purported to offer asset management and trustee services to its clients, and a founder and co-principal of BLACKLIGHT, KENNETH CIAPALA, executed a wide-ranging stock manipulation scheme that spanned from in or about 2013 through December 2019 in which they manipulated the share price and trading volume of the publicly traded shares of multiple companies, and laundered the proceeds generated by the scheme. CIAPALA, utilizing BLACKLIGHT, set up various nominee entities to help scheme participants conceal their ownership of public company shares and evade SEC reporting requirements. BLACKLIGHT opened bank accounts and brokerage accounts on behalf of these nominee entities and executed trades in accounts held by these nominee entities in furtherance of the stock manipulation scheme.
ULRIK DEBO, a Danish citizen who resided in Europe, furthered the stock manipulation scheme by, among other things, identifying suitable publicly traded shell companies that could be used in the scheme; identifying, in certain instances, suitable privately held companies to engage in “reverse merger” transactions with the shell companies; obtaining financing to purchase all or substantially all of the outstanding shares of the issuers; causing various nominee entities to obtain ownership of the issuer’s shares; identifying and paying “promoters” that issued exaggerated and, at times, false press releases about the issuers in order to raise the trading price and volume of the issuer’s shares; and identifying and paying various “trading specialists” who assisted in artificially manipulating the trading volume and price of the issuer’s shares.
Overview of the Stock Manipulation Scheme
As alleged, from at least 2013 through December 2019, CIAPALA and his firm, BLACKLIGHT, as well as others, conspired to defraud the investing public by orchestrating and facilitating the manipulation of multiple publicly traded stocks, commonly referred to as “pump and dump” schemes. The vast majority of the stocks that CIAPALA, BLACKLIGHT, DEBO, and their co-conspirators sought to manipulate were “penny” or “microcap” stocks that traded in the United States on the over-the-counter (“OTC”) market. In executing these pump and dump schemes, CIAPALA, BLACKLIGHT, DEBO, and their co-conspirators (i) secretly amassed beneficial ownership of all, or substantially all, of the stock of certain publicly traded companies; (ii) began manipulating the price and demand for these stocks through, among other means, the release of materially false information to the investing public and manipulative trading practices, thereby causing the share price of these stocks to become artificially inflated; and (iii) sold out of their secretly-amassed positions at artificially inflated values at the expense of the investing public.
CIAPALA, using his firm BLACKLIGHT, primarily furthered the stock manipulation scheme by helping other participants in the scheme to obscure their beneficial ownership and control of all or substantially all of the shares of companies whose securities they sought to manipulate. CIAPALA caused BLACKLIGHT to establish nominee entities that were registered in the names of various third parties to hold the shares that were, in reality, beneficially owned and controlled by the scheme participants. In order to obscure their ownership interests, CIAPALA, BLACKLIGHT, DEBO, and others typically caused these nominee entities’ holdings to be structured so as to ensure that no single nominee entity held more than five percent of the outstanding stock of any of the relevant companies.
CIAPALA also caused BLACKLIGHT to open bank accounts in the names of these nominee entities and to trade shares owned by these nominee entities through various brokerage accounts. Through BLACKLIGHT, CIAPALA exercised trading authority over these nominee entities’ shares, and CIAPALA directed brokers to execute trades on behalf of these nominee entities in furtherance of the stock manipulation scheme. After CIAPALA, BLACKLIGHT, DEBO, and others participating in the scheme had obtained control of all or substantially all of the shares of a company, the scheme participants manipulated the share price and trading volume of the stock of the company. This typically occurred through a promotional campaign and through certain manipulative trading practices.
With respect to the promotional campaign, CIAPALA, BLACKLIGHT, DEBO, and others participating in the scheme caused promotional materials to be distributed to the investing public that contained exaggerated and, at times, false claims about the company whose stock they sought to manipulate. The scheme participants concealed from the investing public that these promotional materials were financed and created at the direction of those who beneficially owned and controlled substantially all of the shares of the relevant company that was the subject of the promotion.
In addition, to drive investor demand and artificially inflate the share price, CIAPALA, BLACKLIGHT, DEBO, and other participants also engaged in manipulative trading activity in order to artificially increase the trading volume and share price of the issuers whose stock they sought to manipulate. This manipulative trading activity included “match” trades whereby the scheme participants caused multiple nominee entities they controlled to essentially trade with one another to create the false appearance of trading volume and demand for the stock.
Laundering of the Profits Generated by the Scheme
As a result of the stock manipulation scheme, the scheme’s participants reaped millions of dollars in illicit profits by selling the shares they beneficially owned and controlled into the market at artificially inflated prices. After these crime proceeds were generated, CIAPALA and BLACKLIGHT allegedly assisted other scheme participants in obtaining their share of the proceeds by sending these funds to them in a manner designed to conceal the source of these funds and the identity of the true recipients of the funds. With CIAPALA’s knowledge and at times at his direction, transfers of the proceeds of the stock manipulation scheme were executed in a manner intended to conceal the true source of the funds and the recipients of these funds by, for example, using fabricated invoices to justify wire transfers from accounts held in the names of nominee entities (controlled and operated by BLACKLIGHT) to other bank accounts controlled by the scheme participants.
* * *
The Indictment charges CIAPALA, 38, who resides in Switzerland, and BLACKLIGHT with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; three counts of securities fraud, each of which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; and money laundering, which carries a maximum sentence of 20 years in prison.
DEBO, 50, is charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; two counts of securities fraud, each of which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and wire fraud, which carries a maximum sentence of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Berman praised the investigative work of the FBI, and thanked authorities in the United Kingdom, the Justice Department’s Office of International Affairs of the Department’s Criminal Division, and the Securities and Exchange Commission, which initiated civil proceedings against CIAPALA, BLACKLIGHT, DEBO, and others, for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Noah Solowiejczyk and Vladislav Vainberg are in charge of the prosecution.
The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[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.
Suspect Arrested in Arson on Kickapoo LandRead the Press Release
OKLAHOMA CITY – DESMA VALDEZ, 19, of Lincoln County, has been arrested for arson in connection with a house fire in Indian country, announced U.S. Attorney Timothy J. Downing.
According to an affidavit in support of a criminal complaint filed on December 31, 2019, Valdez deliberately set fire to a trailer home on tribal land of the Kickapoo Tribe of Oklahoma. The affidavit alleges that Valdez was staying in the trailer home with two individuals whose burned bodies were found inside. An investigation into the cause of death is underway. The case is charged in federal court because the alleged crime took place in Indian country and Valdez is an Indian.
Valdez was injured as a result of the fire and was transported to a local hospital. She was arrested upon her release from the hospital on January 1 and made her initial appearance today before U.S. Magistrate Judge Gary M. Purcell.
If found guilty, Valdez faces a maximum potential penalty of life in prison, five years of supervised release, a fine of $250,000, and mandatory restitution.
This case is a result of an investigation by the Federal Bureau of Investigation—Oklahoma City Division; the Kickapoo Tribal Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Bureau of Indian Affairs. Assistant U.S. Attorneys Mark Stoneman and Thomas B. Snyder are prosecuting the case.
The public is reminded that this charge is merely an allegation and that Valdez is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
St. Joseph Man Sentenced for $6 Million Synthetic Cannabinoid ConspiracyRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Missouri, man was sentenced in federal court today for his role in a conspiracy to distribute nearly $6 million of synthetic cannabinoid products, also known as K2.
Shakeel Khan, 42, was sentenced by U.S. District Judge Roseann Ketchmark to three years in federal prison without parole. The court also ordered Khan to forfeit to the government $2,005,239 that was seized by law enforcement during the investigation and to pay a money judgment of $4,750,000, which accounts for all K2-related deposits associated with his bank accounts.
Co-defendants Mohammed Saleem, 46, of Diamond Back, California, and Asif Saddiq, 61, of Fullerton, California, each were sentenced in December 2019 to four years in federal prison without parole. The court also ordered both Saleem and Saddiq to pay a money judgment for which they are jointly and severally liable with Khan.
Khan, Saleem, and Saddiq each pleaded guilty to participating in a conspiracy to distribute misbranded drugs across state lines from March 1, 2011, to April 30, 2014. They also each pleaded guilty to participating in a money-laundering conspiracy that involved payments totaling nearly $500,000 to bank accounts in Pakistan.
Khan, Saleem, and Saddiq admitted that they distributed synthetic cannabinoid products, a controlled substance analogue. The synthetic cannabinoid products had false and misleading labeling in that they were labeled in a manner indicating they were not fit for human consumption when, in fact, the synthetic marijuana products were intended for human consumption. This labeling caused the synthetic marijuana products to be misbranded in violation of federal law.
Saleem began producing synthetic cannabinoids in Kansas City, Missouri, in 2009, where he met Khan. Saleem’s company was MNZ WHOLESALE AND DISTRIBUTION. The following year Saleem moved to Texas to continue producing synthetic cannabinoids, while Khan continued to assist him with his operation in Kansas City. Saleem met Siddiq at a trade show in Las Vegas, Nevada, in 2011, after which he moved his operation to Los Angeles, California, and partnered with him. They ran a company called S&S Memon, Inc., DBA LA BLAZE. An affiliated company of LA BLAZE was S&S MEMON DBA LAWORLD SPICE. Another affiliated company was called LA PARADISE and MNZ WORLD SPICE. They were producing synthetic cannabinoids and during this time were producing 50,000 bags of K-2 six days a week.
In the fall of 2011, Khan traveled to Los Angeles to operate a K-2 business and opened K BROTHERS IMPORTS, INC. Saleem then put his business MNZ WHOLESALE AND DISTRIBUTION in Khan’s name.
Saleem travelled to China to purchase the chemicals needed to produce the synthetic cannabinoids. Court documents cite 16 wire transfers, totaling $1,725,250, to purchase chemicals from individuals in China from November 2011 to March 2012. Some of the chemicals that were used in the production of synthetic cannabinoid products constituted analogues to banned chemicals and were thus illegal to distribute or sell by the defendants.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Drug Enforcement Administration and IRS-Criminal Investigation.
Special Circumstances Murder, Conspiracy to Commit Murder, and Attempted Murder Charges Filed Against Gang Members in Fresno County Superior Court and in the United States District Court for Killings at a Football Watch Party in NovemberRead the Press Release
Criminal charges have been filed against multiple Mongolian Boys Society gang members in both the Fresno County Superior Court and in the United States District Court related to the murders of four (4) victims and the attempted murders of twelve (12) victims at a Sunday Night football watch party on the evening of November 17, 2019, the Fresno County District Attorney’s Office and the United States Attorney’s Office have announced.
The Federal Felony Complaint filed in U.S. District Court today alleges that Fresno residents Pao Vang, 30; Jhovanny Delgado, 19; and Johnny Xiong, 25, conspired to commit murder in aid of racketeering, in violation of Title 18, United States Code, Section 1959(a)(5).
According to the criminal complaint, on Nov. 17, 2019, members and associates of the Mongolian Boys Society conspired to commit murder. At a meeting, the defendants and others selected a target residence, chose shooters, provided them with guns, and drove to the target location. Vang, Delgado, and Xiong attended the meeting outlining the planned retaliation and understood that the objective was to murder individuals at the designated target residence. They were designated as lookouts and positioned themselves on street corners near the target residence to report the presence of law enforcement.
The partnership of federal agencies with local law enforcement is critical in the fight against violent crime. Federal agencies investigating this case are the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the U.S. Marshals Service.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court.
The Felony Complaint filed in Superior Court alleges that Ger Lee (27, of Fresno), Anthony Montes (27, of Fresno), Porge Kue (26, of Fresno), and Billy Xiong (25, of Fresno) committed the crimes of:
- Four Counts of Murder [P.C. § 187(a)];
- One Count of Conspiracy to Commit Murder [P.C. § 182/187(a)]; and
- Twelve Counts of Attempted Murder [P.C. § 664/187(a)].
The murder charges also include two (2) special circumstances as to the four named defendants pursuant to Penal Code section 190.2 that allege:
1.) The defendants committed multiple murders [P.C. § 190.2(a)(3)]; and
2.) The murders were committed for the benefit of a criminal street gang [P.C. § 190.2(a)(22)].
That Complaint also contains the additional allegations that the four named defendants committed the crimes for the benefit of, at the direction of, or in association with a criminal street gang [P.C. § 186.22(b)], that they personally and intentionally discharged a firearm that caused great bodily injury or death [P.C. § 12022.53(d)], and that they personally and intentionally discharged a firearm [P.C. § 12022.53(c)].
If convicted of these charges in State Court, these defendants face a sentence of either Death or Life in Prison. The District Attorney’s Office is currently conducting a necessary investigation, and will make a determination and announcement regarding the death penalty at a later date.
The Media may email [email protected] with questions.
The charges are allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sioux Falls Man Sentenced to 20 Years for Distribution of Fentanyl Resulting in Serious Bodily Injury and Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of one count of distribution of a controlled substance resulting in serious bodily injury and one count of conspiracy to distribute a controlled substance was sentenced on December 30, 2019, by U.S. District Judge Karen E. Schreier.
Michael Wayne Cooper, age 58, was sentenced to 240 months of federal imprisonment on each count, to be served concurrently, and 3 years of supervised release on each count, to be served concurrently. He was also ordered to pay $200 to the Federal Crime Victims Fund.
According to the court documents, Cooper knowingly and intentionally distributed a controlled substance, namely fentanyl, resulting in the serious bodily injury of a victim in Sioux Falls, who overdosed on the fentanyl sold to him. The overdose victim was revived by first responders with two doses of Naloxone, commonly known as Narcan, which prevented his death.
The evidence at trial further demonstrated that Cooper had been involved in an ongoing conspiracy in Sioux Falls to illegally distribute hydromorphone (commonly known as Dilaudid), a Schedule II controlled substance, from about the beginning of 2015 through August 2018.
This case was investigated by the Drug Enforcement Administration, Sioux Falls Police Department, and the Sioux Falls Area Drug Task Force. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Cooper was immediately turned over to the custody of the U.S. Marshals Service.
San Diego Eye Doctors Pay $950,000 to Settle Medicare Billing Fraud AllegationsRead the Press Release
Assistant U.S. Attorney Joseph P. Price, Jr. (619) 546-7642
NEWS RELEASE SUMMARY – January 2, 2020
SAN DIEGO – Mark D. Smith and Fane Robinson, two San Diego-area physicians, have paid the United States $948,768.18 to resolve allegations that they violated the federal False Claims Act by knowingly submitting false claims to Medicare.
Dr. Smith and Dr. Robinson are medical doctors specializing in ophthalmology. They maintain a medical practice in San Diego known as San Diego Retina Associates and are participating providers in federally-funded health care programs including Medicare.
The United States alleged that Drs. Smith and Robinson violated the False Claims Act by submitting false claims to Medicare for care that was provided by a San Diego Retina Associates physician who was not properly credentialed at the time to render care to Medicare patients.
The United States also alleged that Drs. Smith and Robinson improperly received Medicare payments when another San Diego Retina Associates physician provided care to Medicare patients but Drs. Smith and Robinson submitted claims that misidentified the treating physician.
The settlement concludes a lawsuit originally filed in the United States District Court for the Southern District of California by Atul Jain, M.D., an ophthalmologist and former partner at San Diego Retina Associates. Dr. Jain sued under the qui tam, or whistleblower, provisions of the False Claims Act, which permits a private citizen to initiate a lawsuit on behalf of the United States for false claims and to share in the recovery. Dr. Jain will receive $170,778.27 of the proceeds from the United States’ settlement with Drs. Smith and Robinson.
“Falsely billing in order to circumvent Medicare’s oversight of physicians negatively impacts taxpayers and puts at risk patients’ health,” said U.S. Attorney Robert Brewer. “This settlement reflects our commitment to maintain the integrity of the Medicare program. As this settlement also reflects, we continue to vigorously investigate cases brought to our attention by whistleblowers. We commend the whistleblower in this case, Dr. Jain, for coming forward and for working with investigators.”
“Federal health care beneficiaries can clearly see federal health programs’ need to pay only for the services of properly credentialed eye doctors and other medical professionals. To do otherwise could harm both patients and taxpayers,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working closely with our law enforcement partners to protect government healthcare programs and enrolled beneficiaries.”
The investigation was conducted by the U.S. Attorney’s Office for the Southern District of California and the U.S. Department of Health and Human Services’ Office of Inspector General. This case is captioned United States, et al. ex rel. Jain v. Dr. Mark D. Smith, M.D., et al., Case No. 18-cv-1213-AJB (WVG), and the matter was handled by Assistant U.S. Attorney Joseph P. Price, Jr. of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office. U.S. Attorney Brewer commended the prosecutors and investigators for working hard to bring the case to a successful conclusion.
Sales Employee Sentenced to Prison for Defrauding National Tool Grinding in Erie, PARead the Press Release
ERIE, Pa. - A resident of Fairview, Pennsylvania, has been sentenced in federal court to 22 months in jail and ordered to pay $200,000 in restitution on her conviction of wire fraud, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Elizabeth McMahan, 51.
According to information presented to the court, McMahan was a commission sales employee at National Tool Grinding in Erie. From June 2010 to August 2014, she was selling products for a thirty to ninety percent discount without authorization from her employer, which resulted in greater commissions for her. In addition, McMahan falsified commission reports by submitting false sales that never occurred and increasing purchase prices.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Erie Police Department for the investigation leading to the successful prosecution of McMahan.
Rosebud Man Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on January 2, 2020, by U.S. District Judge Roberto A. Lange.
Alvin Running Horse, Jr., age 41, was sentenced to 9 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Running Horse was indicted by a federal grand jury on July 26, 2019. He pled guilty on September 25, 2019.
The conviction stemmed from an incident that occurred on April 23, 2019. On that date, Running Horse got into a confrontation with his wife at his residence in Rosebud. Rosebud Sioux Tribe Law Enforcement Services (RSTLES) officers responded to a call for service at the residence. Running Horse’s wife reported that Running Horse left with a firearm. Running Horse was subsequently stopped by RSTLES officers and the firearm was found in his possession.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Running Horse was immediately turned over to the custody of the U.S. Marshals Service.